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HomeMy WebLinkAboutR34- Economic Development r_ CITY OF SAN BERNARDINO ORIGINAL ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzullo SUBJECT: California Housing Foundation, Inc., a non- Interim Executive Director profit 501(c)(3)Organization-Amendment No.2 to the 2008 Low and Moderate Income Housing Funds Loan and Grant Property Acquisition DATE: March 10,2011 Agreement Synopsis of Previous Commission/Council/Committee Action(s): On January 27, 2011, Redevelopment Committee Members Johnson, Marquez and Brinker unanimously voted to recommend that the Community Development Commission consider this action for approval. -—----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute Amendment No. 2 to the 2008 Low and Moderate Income Housing Funds Loan and Grant Property Acquisition Agreement by and between the Agency and California Housing Foundation,Inc. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Musibau Arogundade Phone: (909)663-1044 Project Area(s): N/A Ward(s): 5th Supporting Data Attached: 0 Staff Report 0 Resolution(s)El Agreement(s)/Contract(s) ❑Map(s)❑Letter(s) FUNDING REQUIREMENTS: Amount: $ 150,000 Source: Agency's Housing Set-Aside Fund Budget Authority: 2010 Agency Budget fe �� Signature: Fiscal Review: Emil arzu ter' xecutive Director Lori Panzino- it ry, Chief Financial Officer --------------------------------------------------------------------- - -------------------------- --------------------------------------------------------------------------------------------------- Commission/Council Notes: QvrO Lllie- ----------------------------------------—---------------------------------------------------------------------------------------—------------------------------------------------------ P:\Agendas\Comm Dev Commission\CDC 2011\03-21-11 California Housing Foundation Project-Amendment No.2 SR.doc COMMISSION MEETING AGENDA Meeting Date: 03/21/2011 Agenda Item Number: P--3q N ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ---------------------------------------—------------------------------------------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA HOUSING FOUNDATION,INC.,A NON-PROFIT 501(C)(3) ORGANIZATION- AMENDMENT NO. 2 TO THE 2008 LOW AND MODERATE INCOME HOUSING FUNDS LOAN AND GRANT PROPERTY ACQUISITION AGREEMENT BACKGROUND: California Housing Foundation, Inc. (the "Project Sponsor"),was established in 1998. The Project Sponsor is a California non-profit, public benefit corporation with a 501(c)(3) tax exemption affiliated with the Inland Regional Center ("IRC") located in San Bernardino on Waterman Avenue. The Project Sponsor is located in Redlands, and their mission is to acquire, develop and/or rehabilitate single-family homes for the benefit of developmentally disabled adults who are presently living in substandard housing or with family members who struggle with meeting the daily needs of these individuals. Not counting its recently acquired San Bernardino properties, the Project Sponsor currently owns and leases 14 homes in the cities of Redlands, Palm Desert, Beaumont, Hemet, Perris and Apple Valley. Based on a review of photographs and discussions with representatives of the IRC, all appear to be operating appropriately and are very well maintained. On November 3, 2008, the Community Development Commission of the City of San Bernardino ("Commission") approved the 2008 Low and Moderate Income Housing Funds Loan and Grant Property Acquisition Agreement ("Agreement") for the 2 properties located at 6728 North Ofelia Drive and 6495 North Jordan Lane in the City of San Bernardino ("City"). Since the approval of the Agreement, the Project Sponsor has closed escrow and acquired the properties located at 6728 North Ofelia Drive, 6495 North Jordan Lane and 3333 West Elisabeth Avenue. All properties have been rehabilitated and currently occupied by a total of twelve (12)developmentally disabled adults. The Redevelopment Agency of the City of San Bernardino's ("Agency") 55-year Covenant Conditions and Restrictions (CC&R) and Deeds of Trust securing Agency loans are recorded on each property. All three (3) properties have been added to the Agency affordable housing inventory to address the housing needs identified in the approved Housing Implementation Plan and the General Plan housing element. On July 26, 2010, the Agency received a request for financial assistance from the Project Sponsor for the acquisition of another property. Specifically, the request was for funding support to acquire the property at 3003 Muir Mountain Way in the City's 5t' Ward (See Attachment 1). Once acquired, the home will be refurbished, landscaped and equipped with furniture to provide permanent housing for developmentally disabled adults (the "Project"). The Project Sponsor has a Certificate of Exemption from the City Business License for each property as owned an exempt non-profit(See Attachment 2). CURRENT ISSUE: Based on a review of the profonna for the 3003 Muir Mountain Way property, the Project Sponsor submitted an offer to acquire the property for the appraised value of $305,000 which is well below the original March 22, 2007 purchase price of $528,000 paid by the current owner. An additional $75,000 would be used to refurbish, landscape, install new furniture, create a maintenance reserve and to pay for escrow expenses. This will result in a total project cost of $380,000. With private capital provided by ----------------------------------------------- --------------------- --------------------------------------------------------------------------------------------------------- P:\Agendas\CommDevConimission\CDC 2011\03-21-11 California Housing Foundation Project-Amendment No.2 SR.doc COMMISSION MEETING AGENDA Meeting Date: 03/21/2011 Agenda Item Number: Economic Development Agency Staff Report California Housing Foundation Project—Amendment No. 2 Page 2 Guild Mortgage in the amount of $230,000, a gap of $150,000 exists which the Project Sponsor is requesting the Agency to fill. The Project Sponsor will be applying for and receiving a Certificate of Exemption from the City Business License as an exempt non-profit on this property also. At the January 27, 2011, Redevelopment Committee meeting, Committee members requested Agency staff (i) to provide certain information on previously approved similar projects of the Project Sponsor; confirm that the residents of the units are from the City; (ii) provide project opportunity cost options as what other alterative housing projects could have been undertaken with the same dollar amounts; and (iii) request a representative of CHF to attend the Commission meeting. The table below and Attachment 3, shows previously approved similar projects undertaken by the Project Sponsor with Agency assistance and the proposed project at 3003 Muir Mountain Way that is the subject of this current request: Date Address Unit Project Cost CHF/Private Agency Size Funds Gap Funds Nov. 3, 2008 6728 N. Ofelia Drive 4 $525,000 $325,000 $200,000 Nov. 3, 2008 6495 Jordan Lane 4 $535,000 $335,000 $200,000 Mar. 15, 2010 3333 E. Elisabeth Avenue 4 $398,500 $248,500 $150,000 Jan. 17,2011 3003 Muir Mt. Way 4 $380,000 $230,000 $150,000 According to CHF representative, Mr. Steve Von Rajcs, all residents are from the City of San Bernardino. As to the project opportunity cost issue and a comparison of the use of Agency funds for this project of the Project Sponsor and the currently requested Agency assistance of$150,000, the Project Sponsor is able to provide housing assistance to 4 residents at a cost of$37,000 per resident with Agency funds as compared to what would be a cost of$65,000 per person for a one bedroom unit in an apartment complex. Mr. Steve Von Rajcs, CHF President/CEO will attend the meeting and answer Commission member's questions. ENVIRONMENTAL IMPACT: The property acquisition and rehabilitation request is exempt under the California Environmental Quality Act ("CEQA") per Public Resource Code 21080.14, because the action is related to the use of low income housing unit in an urban area. FISCAL IMPACT: An amount up to $150,000 would be used from the Agency's Housing Set-Aside Fund to finance the Project. Agency funds will be secured by a Deed of Trust and a Promissory Note and a 55-year affordability covenant will be recorded on the property. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. ZA-4 __1 Emil A.Marzullo,I teri Executive Director --------------------- --------------------- - ---- ---------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2011\03-21-11 California Housing Foundation Project-Amendment No.2 SR.doc COMMISSION MEETING AGENDA Meeting Date: 03/y2�1/20011 Agenda Item Number: /L3 Ll ATTACHMENT 1 U ���lllw U .O zN C O O c o C (6 Q o «a OU ■ N gyp'..; LLQ O 0 N0 � c0 . N � .E Q ` Q o ■ Q M p L CM co ® N d UO CL L no i rte` .-.mac" Q ■` E m c a � m o L h a C, U O C 7 m a U 1 c L m � � E m o O U5 m D-a Q o x S £ $ o� a-i �� x co v �� �v g mo 10 � xa N p Q q7 M �g c E r 0 02 [l O m m L fs• yp C a 3 O'O m C m U 0 f6 ATTACHMENT 2 1 R • NARD�.yb CITY OF SAN BERNARDINO CERTIFICATE OF EXEMPTION LADED 1 I hereby acknowledge that the application was made before me on the 10 day of AUGUST, 2010, by CALIFORNIA HOUSING FOUNDATION. to be exempt from payment of Business Registration Tax and that all necessary documents were provided to the City Clerk's Office of the City of San Bernardino to complete the exemption. This organization, therefore, is now exempt from payment of Business Registration Tax pursuant to San Bernardino Municipal Code § 5.04.630 with the following provisions: Said exemption is approved for the business or activity of COMMERCIAL PROPERTY RENTAL Located at: 1365 N WATERMAN AVE. For the Period: 08/01/2010 TO 7/31/2011 It shall be unlawful for the holder of the above exemption or their representative(s) to conduct an activity in the City of San Bernardino, which violates any Municipal Code Provision. An example of illegal activity includes, but is not limited to, the sale of or accepting donations for any tangible item(s) when this operation is carried on from street corners, vacant lots, public rights-of-ways or from any unenclosed temporary structures. This Exemption Certificate must be available to any law enforcement personnel or member of the general public to observe at the site(s) where the activity is performed. This document is valid only if the San Bernardino City Seal is embossed over the City Clerk's Signature. Photocopies are not valid. Dated: 08/10/2010 Ci ty Clerk U U Account Number: 935036 form#EX000209 CITY OF SAN BERNARDINO CERTIFICATE OF EXEMPTION I hereby acknowledge that the application was made before me on the 10 day of AUGUST, 2010, by CALIFORNIA ROUSING FOUNDATION. to be exempt from payment of Business Registration Tax and that all necessary documents were provided to the City Clerk's Office of the City of San Bernardino to complete the exemption. This organization, therefore, is now exempt from payment of Business Registration Tax pursuant to San Bernardino Municipal Code § 5.04.630 with the following provisions: Said exemption is approved for the business or activity of: RESIDENTIAL RENTAL PROPERTY Located at: 3333 ELISABETH AVE For the Period: 08/01/2010 TO 7/31/2011 It shall be unlawful for the holder of the above exemption or their representative(s) to conduct an activity in the City of San Bernardino, which violates any Municipal Code Provision. An example of illegal activity includes, but is not limited to, the sale of or accepting donations for any tangible items) when this operation is carried on from street corners, vacant lots, public rights-of-ways or from any unenclosed temporary structures. This Exemption Certificate must be available to any law enforcement personnel or member of the general public to observe at the site(s) where the activity is performed. This document is valid only if the San Bernardino City Seal is embossed over the City Clerk's Signature. Photocopies are not valid. Dated: 08/10/2010 City Clerk J Account Number: 935035 form k EX000209 CITY OF SAN BERNARDINO CERTIFICATE OF EXEMPTION 'QFD I hereby acknowledge that the application was made before me on the 10 day of AUGUST, 2010, by CALIFORNIA HOUSING FOUNDATION. to be exempt from payment of Business Registration Tax and that all necessary documents were provided to the City Clerk's Office of the City of San Bernardino to complete the exemption. This organization, therefore, is now exempt from payment of Business Registration Tax pursuant to San Bernardino Municipal Code § 5.04.630 with the following provisions: Said exemption is approved for the business or activity of- RESIDENTIAL RENTAL PROPERTY Located at: 6495 N JORDAN LN For the Period: 08/01/2010 TO 7/31/2011 It shall be unlawful for the holder of the above exemption or their representative(s) to conduct an activity in the City of San Bernardino, which violates any Municipal Code Provision. An example of illegal activity includes, but is not limited to, the sale of or accepting donations for any tangible items) when this operation is carried on from street corners, vacant lots, public rights-of-ways or from any unenclosed temporary structures. This Exemption Certificate must be available to any law enforcement personnel or member of the general public to observe at the site(s) where the activity is performed. This document is valid only if the San Bernardino City Seal is embossed over the City Clerk's Signature. Photocopies are not valid. Dated: 08/10/2010 City Clem C Account Number: 935034 form#EX000209 o - CITY OF SAN BERNARDINO CERTIFICATE OF EXEMPTION HD£b IN I hereby acknowledge that the application was made before me on the 10 day of AUGUST 2010 by CALIFORNIA HOUSING FOUNDATION. to be exempt from payment of Business Registration Tax and that all necessary documents were provided to the City Clerk's Office of the City of San Bernardino to complete the exemption. This organization, therefore, is now exempt from payment of Business Registration Tax pursuant to San Bernardino Municipal Code § 5.04.630 with the following provisions: Said exemption is approved for the business or activity of: RESIDENTIAL RENTAL PROPERTY Located at: 6728 N OFELIA DR For the Period: 08/01/2010 TO 7/31/2011 It shall be unlawful for the holder of the above exemption or their representative(s) to conduct an activity in the City of San Bernardino, which violates any Municipal Code Provision. An example of illegal activity includes, but is not limited to, the sale of or accepting donations for any tangible item(s) when this operation is carried on from street corners, vacant lots, public rights-of-ways or from any unenclosed temporary structures. This Exemption Certificate must be available to any law enforcement personnel or member of the general public to observe at the site(s) where the activity is performed. This document is valid only if the San Bernardino City Seal is embossed over the City Clerk's Signature. Photocopies are not valid. Dated: 08/09/2010 City dle'rk v �� rQrm a Ex000209 Account Number: 935033 1 RESOLUTION NO. Q ® 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE 3 INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY 4 OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT NO. 2 TO THE 2008 LOW AND MODERATE INCOME 5 HOUSING FUNDS LOAN AND GRANT PROPERTY ACQUISITION AGREEMENT BY AND BETWEEN THE AGENCY AND CALIFORNIA 6 HOUSING FOUNDATION, INC. 7 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 8 public body, corporate and politic, organized and existing under California Community 9 Redevelopment Law(the "CRL"), as found at Health and Safety Code section 33000, et seq.; and 10 WHEREAS, the Community Development Commission of the City of San Bernardino (the 11 "Commission") is the governing board of the Agency; and 12 WHEREAS, California Housing Foundation, Inc. ("CHF"), was formed in 1998 and �- 13 incorporated within the State of California as a non-profit organization with the mission of acquiring 14 and leasing residential properties to licensed operators of facilities that house and care for 15 developmentally disabled adults; and 16 WHEREAS, on November 3, 2008, the Commission approved the 2008 Low and Moderate 17 Income Housing Funds Loan and Grant Property Acquisition Agreement ("2008 Agreement") for 18 the acquisition of the properties located at 6538 and 6495 North Jordan Lane residences; and 19 WHEREAS, on March 15, 2010, the Commission approved Amendment No. 1 to the 2008 20 Agreement for the acquisition of the property located at 3333 West Elisabeth Avenue, within the 21 City of San Bernardino; and 22 WHEREAS, CHF has rehabilitated the above referenced properties and are fully occupied 23 by four disabled individuals per property for a total of twelve disabled individuals; and 24 WHEREAS, on July 26, 2010, the Agency received a request for financial assistance from 25 CHF to acquire the property located at 3003 Muir Mountain Way(the "Property"); and 26 WHEREAS, the property is appraised for $305,000, CHF will rehabilitate the property with 27 $75,000 of private funds for total project cost of$380,000 and CHF has secured a private loan in 28 1 PAAo d,e\R nenlntinn a\R aenlnr:nneNnl I r.Gi..d.U­­;­r­­A­;­ A---A---.—o—n,..,..A,..... 1 the amount of$230,000 from Guild Mortgage towards the property acquisition leaving a financial 2 gap of$150,000 (the "Project"); and 3 WHEREAS, the Agency desires to assist CHF with an amount not to exceed $150,000 in 4 Low and Moderate Income Housing Funds loan and grant towards the acquisition of the Property 5 in order to further the CHF's mission of providing housing opportunities to developmentally 6 disabled adults; and 7 WHEREAS, the Agency grant and loan financial assistance will be secured with a Deed of "s 8 Trust and a 55-year Covenant, Conditions and Restrictions recorded on the Property; and i 3 9 WHEREAS, the Project is exempt under the California Environmental Quality Act d 10 ("CEQA") per Public Resource Code 21080.14, because the action is related to the use of low income j 11 housing unit in an urban area; and i i2 WHEREAS, it is appropriate for the Commission to take action with respect to approving 13 and entering into Amendment No. 2 to the 2008 Agreement with CHF in the form as attached 14 hereto. 15 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE l 16 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 17 FOLLOWS: 18 Section 1. The Commission hereby approves the Agreement with CHF for the purpose 19 of acquiring and rehabilitating the property located at 3003 Muir Mountain Way in the City of San 20 Bernardino and hereby authorizes the Interim Executive Director of the Agency to execute 21 Amendment No. 2 to the 2008 Agreement on behalf of the Agency together with such technical and 22 conforming changes as may be recommended by the Interim Executive Director of the Agency and 23 approved by the Agency Counsel and the City Attorney. 24 Section 2. This Resolution shall take effect from and after its date of adoption by this 25 Commission. 26 27 28 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 1 THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE 2 INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE 3 AMENDMENT NO. 2 TO THE 2008 LOW AND MODERATE INCOME HOUSING FUNDS LOAN AND GRANT PROPERTY ACQUISITION 4 AGREEMENT BY AND BETWEEN THE AGENCY AND CALIFORNIA 5 HOUSING FOUNDATION, INC. 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 7 Development Commission of the City of San Bernardino at a meeting 8 thereof, held on the day of , 2011, by the following vote to wit: 9 Commission Members: Ayes Nays Abstain Absent 10 MARQUEZ VACANT 11 BRINKER 12 DERRY 13 14 KELLEY 15 JOHNSON MC CAMMACK 16 17 18 Secretary 19 20 The foregoing Resolution is hereby approved this day of 2011. 21 Patrick J. Morris, Chairperson 22 Community Development Commission 23 of the City of San Bernardino 24 Approved as to Form: 25 By: �7�- OL 26 Agency C sel 27 28 3 AMENDMENT NO. 2 TO THE 2008 LOW AND MODERATE INCOME HOUSING FUNDS LOAN AND GRANT PROPERTY ACQUISITION AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND CALIFORNIA HOUSING FOUNDATION, INC. This Amendment No. 2 to the 2008 Low and Moderate Income Housing Funds Loan and Grant Property Acquisition Agreement (this "Amendment No. 1") is entered into on March 21, 2011, by and between the Redevelopment Agency of the City of San Bernardino (the "Agency"), a public body, corporate and politic, and California Housing Foundation, a California non-profit public benefit corporation (the "Developer"), and is entered into in consideration of the facts set forth in the following Recital paragraphs: -RECITALS- A. The Developer and the Agency have previously entered into an agreement entitled "2008 Low and Moderate Income Housing Funds Loan and Grant Property Acquisition Agreement", dated November 3, 2008 (the"2008 Agreement"). B. Under the 2008 Agreement, the Developer acquired and rehabilitated properties located at 6728 North Ofelia Drive and 6495 North Jordan Lane and the property located at 3333 West Elisabeth Avenue under Amendment No. 1 dated March 15, 2010, within the City of San Bernardino for the benefit of individuals with developmental disabilities. C. The Developer is desirous to acquire and rehabilitate the property located at 3003 Muir Mountain Way, and seeking Agency assistance in providing One Hundred Fifty Thousand Dollars ($150,000) as gap financing towards the property acquisition(the"Project"). D. The Agency is desirous of assisting the Developer in the acquisition of the Project and provides an amount not to exceed One Hundred Fifty Thousand Dollars ($150, 000) in Low and Moderate Income Housing Funds under this Amendment No. 2 for the Project. F. The Agency has determined that the acquisition of the property pursuant to the 2008 Agreement and this Amendment No. 1 and the fulfillment generally of the purposes of the 2008 Agreement are in the vital and best interests of the City and the Agency. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS FOLLOWS: 1 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2011\03-21-11 California Housing Foundation-Amendment No.2.docx Section 1. References to the 2008 Agreement; Defined Terms. (a) Unless the context of the usage of a term or phrase in this Amendment No. 2 may otherwise require, the meaning of words and phrases as contained in this Amendment No. 2, which are indicated by an initially capitalized letter, shall be the same as set forth in the 2008 Agreement. (b) The information contained in the Recitals as set forth in this Amendment No. 2 is true and correct in all respects. Section 2. Specific Amendments to the 2008 Agreement. (a) The 2008 Agreement is hereby amended by this Amendment No. 2 in the manner as indicated in this Section 2 and which changes and amendments shall be effective from and after the date of approval of this Amendment No. 2 by the Developer and the Agency and execution hereof by the parties. (b) Section 102 of the 2008 Agreement is hereby amended by adding the 3003 Muir Mountain Way property to said Section 102 together with the appropriate update to the "Legal Description of Sites"attached as Exhibit"A"to the 2008 Agreement. (c) Section 402 of the 2008 Agreement is hereby amended by substituting the following chart in place of that as is presently provided in the 2008 Agreement: Acquisition Financing for the Sites: Developer's Contribution $1, 138, 500 Amount of Agency Loan/Grant $ 700, 000 Total Estimated Cost $ 1, 838, 500 (d) The term "Agency Grant" as defined and as used in the 2008 Agreement shall be in an amount equal to Seven Hundred Thousand Dollars ($700,000)pursuant to this Amendment No. 2. Section 3. Effect of Amendment No. 2. Except as modified or amended by this Amendment No. 2, all of the provisions of the 2008 Agreement shall remain in full force and effect following the effective date of this Amendment No. 2. 2 P:4Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2011\03-21-11 California Housing Foundation-Amendment No.2.docx IN WITNESS WHEREOF, the parties hereto have accepted and executed this Amendment No. 1 upon the terms and conditions and with the provisions as set forth above and as of the date first written above. AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Date: By: Emil A. Marzullo, Interim Executive Director Approved as to Form and Legal Content: By: Agency bdunol DEVELOPER California Housing Foundation, a California non-profit public benefit corporation Date: By: Title: 3 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2011\03-21-11 Califomia Housing Foundation-Amendment No.2.docx EXHIBIT "A" LEGAL DESCRIPTIONS OF SITE 1) 6795 NORTH JORDAN LANE, SAN BERNARDINO, CALIFORNIA 92407 LOT 82 OF TRACT NO. 16443, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 300 OF MAPS, AT PAGE 67 THROUGH 72 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ONE-HALF OF ALL OIL CONTAINED IN OR WHICH MAY BE DEVELOPED ON THE PROPERTY HEREIN CONVEYED, AS RESERVED BY HERMAN J. MEYER AND CLARA M. MEYER, IN DEED RECORDED MAY 15, 1953, IN BOOK 3169, PAGE 133 OF THE OFFICIAL RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA. ALSO EXCEPTING THEREFROM ALL OIL, GAS AND KINDRED SUBSTANCES LYING BELOW A DEPTH OF 500 FEET, BUT WITHOUT THE RIGHT OF SURFACE ENTRY, AS GRANTED IN THE DEED FROM RURAL LAND CO., TO NATIONAL RESOURCES EQUITIES CORPORATION, A CALIFORNIA CORPORATION, RECORDED OCTOBER 20, 1969, IN BOOK 7323 PAGE 356 OF OFFICIAL RECORDS. APN: 0261-661-46-0000 2) 6728 NORTH OFELIA DRIVE, SAN BERNARDINO, CALIFORNIA 92407 LOT 32 OF TRACT NO. 16792, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 315 PAGES 43 THROUGH 45 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 0261-701-15-0000 3) 3333 WEST ELISABETH AVENUE, SAN BERNARDINO, CALIFORNIA 92407 LOT 16 OF TRACT NO. 16443, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 300 OF MAPS, AT PAGE 67 THROUGH 72 INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ONE-HALF OF ALL OIL CONTAINED IN OR WHICH MAY BE DEVELOPED ON THE PROPERTY HEREIN CONVEYED, AS RESERVED BY HERMAN J. MEYER AND CLARA M. MEYER, IN DEED RECORDED MAY 15, 1953, IN BOOK 3169, PAGE 133 OF THE OFFICIAL RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA. 4 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2011\03-21-11 Califomia Housing Foundation-Amendment No.2.docx ALSO EXCEPTING THEREFROM ALL OIL, GAS AND KINDRED SUBSTANCES LYING BELOW A DEPTH OF 500 FEET, BUT WITHOUT THE RIGHT OF SURFACE ENTRY, AS GRANTED IN THE DEED FROM RURAL LAND CO., TO NATIONAL RESOURCES EQUITIES CORPORATION, A CALIFORNIA CORPORATION, RECORDED OCTOBER 20, 1969, IN BOOK 7323 PAGE 356 OF OFFICIAL RECORDS. APN: 0261-661-16-0000 4) 3003 MUIR MOUNTAIN WAY, SAN BERNARDINO, CALIFORNIA 92407 ALL THAT CERATIN REAL PROPERTY SITUATED IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBD AS FOLLOWS: LOT 25 OF TRACT NO. 16457, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS SHOW BY A MAP FILE IN BOOK 308, PAGES 19 TO 22, INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAN BERNARDINO COUNTY, STATE OF CALIFORNIA. EXCEPTING THEREFROM ONTO THE GRANTOR, ALL ANY REMAINING OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN, GEOTHERMAL STEAM AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR UNDER THE PROPERTY HEREINABOVE DESCRIBED, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM SAID PROPERTY OR ANY OTHER PROPERTY, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM PROPERTIES OTHER THAN THOSE HERMNABOVE DESCRIBED, OIL OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SURFACE OF THE PROPERTY HEREINABOVE DISCRIBED, AND TO BOTTOM SUCH WHIPLOCK OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOUND THE EXTERIOR LIMITS THEREFOR, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES WITHOUT, HOWEVER, THE RIGHT TO DRILL, MINE, STORE, EXPLORE, OR OPERATE THROUGH THE SURFACE OR UNDER 500 FEET OF THE SUBSURFACE OF THE PROPERTY HEREINABOVE DESCRIBED. FURTHER EXCEPTING THEREFROM UNTO THE GRANTOR, THE RIGHT TO ENTER THE "REALTY" (DEFINED BELOW) FOR A TERM OF TWENTY- FOUR (24) MONTHS FOLLOWING THE RECORDATION DATE OF THIS GRANT DEED, TO COMPLETE AND REPAIR ANY IMPROVEMENTS OR LANDSCAPING LOCATED THEREON AS DETERMINED NESSARY BY GRANTOR, IN ITS SOLE DISCRETION, IN ORDER TO COMPLY WITH REQUIREMENTS FOR THE RECORDATION OF THE MAP, THE GRADING OF THE REALTY, AND TO COMPLY WITH THE REQUIREMENTS OF APPLICABLE GOVERNMENTAL AGENCIES, THE REALTY IS ALSO SUBJECT TO A RIGHT OF ENTRY BY GRANTOR AND ITS AGENTS UNTIL THE EXPIRATION OF 5 P:\Agendas\Agenda Attachments\Agenda Attachments\Agnmts-Amend 2011\03-21-11 California Housing Foundation-Amendment No.2.docx f ALL APPLICABLE STATUES OF LIMITATION FOR THE FILING OF A COMPLAINT OR SUIT OR OTHER LEGAL REMEDIES AGAINST GRANTOR IN ANY WAY RELATING TO OR ARISING OUT OF THE DEVELOPMENT, CONSTRUCTION, SALE AND/OR TRANSFER OF THE REALTY BY GRANTOR. SUCH ENTRY BY GRANTOR SHALL BE PRECEDED BY RESONABLE NOTICE TO GRANTEE. IF THIS RESERVATION OF RIGHT OF ENTRY IS NOT COMPLIED WITH BY GRANTEE, GRANTOR MAY ENFORCE THIS RIGHT OF ENTRY IN A COURT OF LAW. GRANTEE SHALL BE RESPONSIBLE FOR ALL DAMAGES ARISING OUT OF SAID BREACH (E.G., REFUSING TO ALLOW SUCH ENTRY INCLUDING ATTORNEY'S FEES, COSTS AND EXPENSES). ALSO EXCEPTING THEREFROM,NONEXCLUSIVE EASEMENTS FOR USE, INGRESS, EGRESS, ACCESS, ENCROACHMENTS, LANDSCAPE, MAINTENANCE, REPAIR, DRAINAGE, SUPPORT AND FOR OTHER PURPOSES, AS DESCRIBED AND/OR DEPICTED IN THE "DECLARATION" (DEFINED BELOW) PARCEL 2: NONEXCLUSIVE EASEMENTS FOR USE, INGRESS, EGRESS, ACCESS, MAINTENANCE, LANDSCAPE, REPAIR, DRAINAGE, ENCROACHMENTS, OR OTHER PURPOSES, ALL AS DESCRIBED AND/OR DEPICTED IN THE "DECLARATION OF COVENANTS, CONDITIONS AND RESERVATIONS, AND RESERVATION OF EASEMENT FOR HILLTOP" (TRACTS 15940 AND 16457) RECORDED MARCH 15, 2006, AS INSTRUMENT NO. 2006-0176269, IN THE OFFICIAL RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA, AS SAME MAY BE AMENDED, MODIFIED AND/OR RE-RECORDED (COLLECTIVELY REFERRED TO HEREIN AS "DECLARATION"). APN: 0261-691-25-0-0000 6 P:\Agendas\Agenda Attachments\Agenda Attachments\Agrmts-Amend 2011\03-21-11 California Housing Foundation-Amendment No.2.docx