HomeMy WebLinkAbout03- Community Development D E V E L O P M E N T D E P A R T M E N T
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: HABITAT FOR HUMANITY
Executive Director
Date: January 13, 1993
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Synopsis of Previous Commission/Council/Committee Action(s):
On October 27, 1992 the Community Development Commission approved the
budget allocation for this project.
On November 23, 1992 the Housing Committee recommended to the
Community Development Commission approval of the proposed project.
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Recommended Motion(s):
(Community Development Commission)
MOTION: That the Community Development Commission authorize the Chairman
E and the Executive Director to execute an Owner Participation
Agreement (OPA) between the Redevelopment Agency Habitat for
Humanity for financial assistance to acquire a parcel of land
(not to exceed $25,000) for the construction of a single-family
4 detached dwelling unit.
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AdmirUtrator KENNETH J. HE RSON
Executive Dire for
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Contact Person(s) : Kenneth Henderson/Ed-Flores Phone: 5081
Project Area(s) : Central City Project Ward(s) : One (1)
Supporting Data Attached: Staff Report
FUNDING REQUIREMENTS: Amount: $ 25,000 Source: 20% Set-Aside
Budget Authority: Approved October 27, 1992
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Commission/Council Notes:
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KJH:DRE:ELF:paw:0182c COMMISSION MEETING AGENDA
Meeting Date: 2/1/1993
Agenda Item No.. a
DEVELOPMENT DEPARTMENT
STAFF REPORT
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HABITAT FOR HUMANITY
On October 27, 1992, the Community Development Commission approved a
modified FY 1992-93 Low/Mod Housing Fund (Set-Aside) budget. This
budget included funds for a Habitat for Humanity Housing project in
amount not to exceed $25,000. Staff agreed, however, to provide
additional information regarding the project when obtained from Habitat
for Humanity.
Habitat for Humanity for the San Bernardino Area (HFHSBA) is an
affiliate of Habitat for Humanity International (HFHI) and shares the
national organization's mission and philosophy of providing affordable,
decent, safe and sanitary housing for families in need. HFHSBA is
requesting financial assistance in the amount of $19,000 dollars to
acquire an undeveloped lot, located at 238 South Allen Street. The
parcel is Zoned RS 7200 Single Family Detached and consists of 7,500
square feet with all necessary off-site improvements currently in place.
Very low income families targeted for assistance must form a
partnership with HFHI and commit to the following:
* Contributing 500 hours of "sweat equity" by participating in
actual construction of their home and other HFHI projects;
* Provide a 1% down payment;
* Pay approximately $350 per month for combined mortgage, tax, and
insurance. Figures are based on a zero percent interest loan over
20 years on an estimated $60,000 mortgage loan amount;
* Complete 75 hours of education on home maintenance, management,
and budgeting before receiving a home;
* Share their story with others through the local media.
Money received from mortgage payments goes directly into a revolving
account to pay obligations and finance the next housing project.
HFHSBA will be the funding source for the partner family and will
provide a twenty (20) year interest-free loan. Transfer of title will
be by grant deed and HFHSBA will take back a first trust deed. A
primary covenant running with the land will be that HFHSBA retains a
right of first refusal, by which it will have a prior right of purchase
for fifteen (15) years after the initial transfer date.
The purchase price during the 15-year period shall be the initial sales
price adjusted by the San Bernardino Area Real Estate Price Index.
Should this right be exercised by HFHSBA, the property will be sold to
another low income family which has completed all the requirements for
selection. The property will be re-sold at the purchase price, plus
any fees or costs incurred in the process.
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KJH:DRE:ELF:paw:0182c COMMISSION MEETING AGENDA
Meeting Date: 2/1/1993
Agenda Item No:
DEVELOPMENT DEPARTMENT STAFF REPORT
Habitat for Humanity
January 13, 1993
Page Number - 2 -
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It is important to note that Habitat for Humanity prides itself on the
fact that none of its partner families has ever defaulted on its
mortgage loan.
Costs of building Habitat homes are greatly reduced by using volunteers
to do the construction work, acquiring gifts of land, materials, and
money, obtaining discounted materials and in-kind donations from
contractors and building supply stores and receiving support of city
and county governments. Only through financing of this kind will very
low income families be able to afford homeownership opportunities.
Building plans submitted to the Agency clearly demonstrate the
development of a quality home in compliance with the applicable zoning
and land use requirements of the City. The house is to be stick built _
with 1,100 square feet of livable space not including the garage. The
double car garage, apron and walkways adds another 500 square feet.
The exterior of the house will include landscaping with automatic
sprinklers.
On November 23, 1992, the Housing Committee considered this matter and
recommended approval to the Community Development Commission.
a
Staff recommends adoption of the form motion.
^' L4t�,
KENNETH J. HE RSON, Executive Director
Development De artment
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KJH:DRE:ELF:paw:0182c COMMISSION MEETING AGENDA
Meeting Date: 2/1/1993
Agenda Item No: '5
ATTACHMENT NO. 2
PROMISSORY NOTE SECURED BY DEED OF TRUST
$ 2s .nnn Place: Redevelopment Agency
201. North "E" Street
Third Floor
San Bernardino, CA 92401
Date: Febuary 1, 1993
FOR VALUE RECEIVED, the undersigned promises to pay to
the Redevelopment Agency of the City of San Bernardino (the
"Agency") or its successors, the sum of Twenty Five Thousand
Dollars ($25, 000) . Payment of principal shall be made as follows:
1. This Note shall become due and payable two (2) years
from the date of the Agreement.
2. A failure to pay any sum provided for in this Note
when due or a material breach of this Note, the Agreement which is
the subject of this Note or the Deed of Trust, shall constitute a
breach hereof and shall entitle the Agency to declare all sums due
hereunder immediately due and payable and to pursue all remedies
available under this Note, the Agreement or the Deed of Trust.
All payments due under this Note shall be made in lawful
money of the United States at the principal office of the Agency,
201 North "E" Street, City Hall Annex, San Bernardino, CA 92401-
1507, or at such other place as may from time to time be designated
by the Agency in writing.
Notwithstanding any language herein to the contrary, this
Note shall become immediately due and payable in the amount of all
unpaid principal, with interest, upon any transfer in violation of
the Agreement of title of the property described in the Deed of
Trust to any person, firm or corporation other than the undersigned
and except as provided in said Deed of Trust, whether such transfer
of title be voluntary, involuntary, or by operation of law.
The undersigned reserves the right to prepay at any time
all or any part of the principal amount of this Note without the
payment of penalties or premiums. All payments on this Note shall
be applied first to the interest due on the Note and then to the
principal due on the Note, and the remaining balance shall be
applied to late charges, if any.
IN THE EVENT the undersigned shall fail to pay the
payments when due, and if such failure be subsisting thirty (30)
days thereafter, the unpaid principal amount of this Note, together
with accrued interest and late charges, shall become due and
payable, at the option of the Agency, without notice to the
undersigned. Failure of the Agency to exercise such option shall
ATT. 2 - Page 1
not constitute a waiver of such default. If the payments on this
Note are not paid within ten (10) days of the due date, the
undersigned shall pay to the Agency a late charge of 4% on the
amount past due and remaining paid. If this Note be reduced to
judgment, such judgment shall bear the statutory interest rate on
judgments.
In no event shall the interest and late charge payable
hereunder exceed the maximum amount of interest permitted under the
usury laws of the State of California.
If suit is instituted by the Agency to recover on this
Note, the undersigned agrees to pay all costs of such collection
including reasonable attorney's fees and court costs.
THIS NOTE is secured by a Deed of Trust of even date,
duly filed for record in the office of the County Recorder of the
County of San Bernardino, State of California.
DEMAND, protest and notice of demand and protest are
hereby waived and the undersigned hereby waives, to the extent
authorized by law, any and all homestead and other exemption rights
which otherwise would apply to the debt evidenced by this Note.
C
ATT. 2 - Page 2
IN WITNESS WHEREOF, THIS NOTE has been duly executed by
the undersigned, as of its date.
HABITAT FOR HUMANITY
a California non-profit
corporat'on
By:
r (� r%7
Title:
ATT. 2 - Page 3
ATTACHMENT NO. 3
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
(Space Above for Recorder's Use)
DEED OF TRUST WITH ASSIGNMENT OF RENTS
Deed of trust made on February 1, , 1z09 3 , by HABITAT
FOR HUMANITY, hereinafter called "Trustor, " whose address is
35131 Yucaipa Blvd. , to Redevelopment Aaencv ,
hereinafter referred to as "Trustee", whose business address is
201 North "E" Street , California 92401 , in favor of the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, hereinafter
referred to as "Beneficiary", whose business address is 201 North
"E" Street, Third Floor, San Bernardino, California 92401.
Trustor irrevocably grants, transfers, and assigns to
Trustee in trust, with power of sale, all that property, including
all easements and rights of way used in connection therewith or as
a means of access thereto, in the City of San Bernardino, County of
San Bernardino, State of California, described as follows:
That certain property located in the City of
San Bernardino, County of San Bernardino, State of California, more
particularly described as:
SEE ATTACHMENT NO. 1
together with the rents, issues and profits thereof, subject
however to the right reserved by Trustor in Paragraph B-16 hereof
to collect and apply such rents, issues and profits, prior to any
default hereunder; for the purpose of securing performance in a
timely manner of all of Trustor's obligations under that certain
Owner Participation Agreement and payment of the indebtedness
evidenced by a Promissory Note executed by Trustor in the principal
sum of Twenty Five Thousand Dollars ($ 25,000) , payable to
Beneficiary or order and each extension thereof, both executed in
connection with this Deed of Trust; and performance of each
agreement to Trustor incorporated herein by reference or contained
herein.
A. To protect the security of this Deed of Trust, Trustor agrees:
ATT. 3 - Page 1 3
1. To maintain the property in good condition and
repair; not to remove or demolish any building or improvement
thereon; to complete promptly in workmanlike manner any improvement
hereafter constructed thereon and to restore promptly in
workmanlike manner any improvement thereon that is damaged or
destroyed, and to pay when due all costs incurred therefor or in
connection therewith; to comply with all laws, ordinances,
regulations, covenants, conditions and restrictions affecting the
property; not to commit or permit any waste thereof or any act upon
the property in violation of law or of covenants, conditions or
restrictions affecting the property.
2 . To appear in and defend any action or proceeding
purporting to affect the security hereof or the rights or powers of
Beneficiary or Trustee; and also, if at any time Beneficiary or
Trustee is a party to or appears in any such action or proceeding,
or in any action or proceeding to enforce any obligation hereby
secured, to pay all cost and expenses paid or incurred by them or
either of them in connection therewith, including, but not limited
to, cost of evidence of title and attorneys ' fees in a reasonable
SUM.
3 . To pay (a) at least ten (10) days before
delinquency, all taxes and assessments affecting the property, all
assessment upon water company stock, and all rents, assessments and
charges for water appurtenant to or used in connection with the
property; (b) when due, all encumbrances, charges and liens, with
interest, on the property or any part thereof, which appear to be
prior or superior hereto; and (c) all costs, fees and expenses of
this trust.
4. If Trustor fails to make any payment or to do any
act as herein provided, then Beneficiary or Trustee (but without
obligation so to do, and with or without notice to or demand upon
Trustor, and without releasing Trustor from any obligation hereof)
may (a) make or do the same in such manner and to such extent as
either deems necessary to protect the security hereof, Beneficiary
or Trustee being authorized to enter upon the property for such
purpose; (b) appear in or commence any action or proceeding
purporting to affect the security hereof or the rights or powers of
Beneficiary or Trustee; (c) pay, purchase, contest, or compromise
any encumbrance, charge or lien that, in the judgment of either,
appears to be superior hereto; and in exercising any such power,
Beneficiary or Trustee may incur necessary expenses, including
reasonable attorneys' fees.
5. To pay immediately and without demand all sums
expended hereunder by Beneficiary or Trustee, with interest from
date of expenditure at the annual rate of two percentage points
over Bank of America's published prime rate.
ATT. 3 - Page 2
B. It is mutually agreed that:
1. Any award of damages made in connection with the
condemnation for public use of or injury to the property or any
part thereof is hereby assigned and shall be paid to Beneficiary,
who may apply or release such moneys received therefor upon any
indebtedness secured hereby in such order as Beneficiary
determines, or at the option of Beneficiary the entire amount so
received or any part thereof may be released to Trustor. Such
application or release shall not cure or waive any default or
notice of default hereunder or invalidate any act done pursuant to
such notice.
2. The acceptance by Beneficiary of any payment less
than the amount then due shall be deemed an acceptance on account
only and shall not constitute a waiver of the obligation of Trustor
to pay the entire sum then due or of Beneficiary's right either to
require prompt payment of all sums then due or to declare default.
The acceptance of payment of any sum secured hereby after its due _
date will not waive the right of Beneficiary either to require
prompt payment when due of all other sums so secured or to declare
default for failure so to pay. No waiver of any default shall be
a waiver of any preceding or succeeding default of any kind.
3. At any time or from time to time, without liability
therefor and with or without notice, upon written request of
Beneficiary and presentation of this deed and the secured note for
endorsement, and without effecting the personal liability of any
person for payment of the indebtedness secured hereby or the effect
of this deed upon the remainder of the property, Trustee may
reconvey any part of the property, consent to the making of any map
or plat thereof, join in granting any easement or join in any
extension agreement or any agreement subordinating the lien or
charge thereof.
4. Upon written request of Beneficiary stating that all
sums secured hereby have been paid, surrender of this deed and the
note to Trustee for cancellation and retention, and payment of its
fees, Trustee shall reconvey, without warranty the property then
held hereunder. The recitals in such reconveyance shall be
conclusive proof of the truthfulness thereof. The grantee may be
designated in such reconveyance as "the person or persons legally
entitled thereto. "
5. Trustor may give such notice to Beneficiary at any
time before there is a Trustee's sale of the property. At any time
Trustor is in default in payments to be made to Beneficiary
hereunder, any amounts paid to and received by Beneficiary for
execution of releases pursuant to the terms of this paragraph after
notice of default and election to sell has been recorded shall not,
unless the requirements of Section 2924c of the Civil Code are
fully met by or on behalf of Trustor, waive the right of
Beneficiary to continue its plans to have the property sold, nor
shall they have any effect on the exercise by Beneficiary of the
acceleration privilege contained herein, except to entitle the
ATT. 3 - Page 3
3
person effecting such payment to the release of the property for
which the release amount was paid, and insofar as Beneficiary is
concerned, to constitute a credit against the secured debt.
O
6. If Trustor or any subsequent owner of the property
covered hereby shall occupy the property, or any part thereof,
after any default in payment of any amount secured by this deed of
trust, Trustor or such owner shall pay to Beneficiary in advance on
the first day of each month a reasonable rental for the premises so
occupied. On failure to pay such reasonable rental, Trustor or
such owner may be removed from the premises by summary
dispossession proceedings or by any other appropriate action of
proceeding.
7. If default is made in payment of any indebtedness or
in performance of any agreement hereby secured, then Beneficiary,
with or without notice to Trustor, may declare all sums secured
hereby immediately due and payable by instituting suit for the
recovery thereof or for the foreclosure of this deed, or by
delivering to Trustee a written declaration of default and demand
for sale, as well as a written notice of default and of election to
cause the property to be sold, which notice Trustee shall cause to
be filed for record. If such declaration is delivered to Trustee,
Beneficiary shall also deposit with Trustee this deed, the secured
note, and all documents evidencing expenditures secured hereby.
8. Should Trustor, without the consent in writing of
Beneficiary, voluntarily sell, transfer or convey his interest in
the property or any part thereof, or if by operation of law, it be
sold, transferred or conveyed, then Beneficiary may, at its option,
declare all sums secured hereby immediately due and payable.
Consent to one such transaction shall not be deemed to be a waiver
of the right to require such consent to future or successive
transactions.
9. After the time then required by law has elapsed
after recordation of such notice of default, and notice of sale
having been given as then required by law, Trustee, with or without
demand on Trustor, shall sell the property at the time and place
fixed in the notice of sale, either as a whole or in separate
parcels and in such order as Trustee determines, at public auction,
to the highest bidder, for cash in lawful money of the United
States, payable at the time of sale. Trustee may postpone from
time to time sale of all or any portion of the property by public
announcement at the time and place of sale originally fixed or at
the last preceding postponed time. Trustee shall deliver to the
purchaser its deed conveying the property 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. Trustor, Trustee, Beneficiary or any other
person may purchase at the sale.
10. After deducting all costs, fees and expenses of
Trustee and of this trust, including cost of evidence of title and
reasonable attorneys' fees in connection with sale, Trustee shall
ATT. 3 - Page 4 3
apply the proceeds of sale to payment of (a) all sums expended
under the terms hereof and not theretofore repaid, with accrued
interest at two percentage points over Bank of America's published
prime rate per annum, and (b) all other sums then secured hereby in
such order as Beneficiary, in the exercise of its sole discretion,
directs. The remainder, if any, shall be paid to the person or
persons legally entitled thereto.
11. Before Trustee's sale, Beneficiary may rescind such
notices of default and of election to cause the property to be sold
by delivering to Trustee a written notice of rescission, which
notice, when recorded, shall cancel any prior declaration of
default, demand for sale and acceleration of maturity. The
exercise of such a right of rescission shall not constitute a
waiver of any default then existing or subsequently occurring, or
impair the right of Beneficiary to deliver to Trustee other
declarations of default and demands for sale or notices of default
and of election to cause the property to be sold, or otherwise
affect any provision of the secured note or of this deed or any of
the rights, obligations or remedies of Beneficiary or Trustee
hereunder.
12. Beneficiary may, from time to time as provided by
statute, or by a writing signed and acknowledged by him and
recorded in the office of the county recorder of the county in
which the land or such party thereof as is then affected by this
deed of trust is situated, appoint another trustee in stead and of
Trustee herein named; and thereupon, the Trustee herein named shall
be discharged, and the trustee so appointed shall be substituted as
Trustee hereunder with the same effect as if originally named
Trustee herein.
13. If two or more persons are designated as Trustee
herein, any or all powers granted herein to Trustee may be
exercised by any of such persons if the other person or persons is
unable, for any reason, to act. Any recital of such inability in
any instrument executed by any of such persons shall be conclusive
against Trustor, his heirs and assigns.
14. All leases nor or hereafter affecting the property
are hereby assigned and transferred to Beneficiary by Trustor.
Trustor hereby covenants that none of such leases will be modified
or terminated without the written consent of Beneficiary.
15. When requested to do so, Trustor shall give such
further written assignments of rents, royalties, issues and
profits; of all security for the performance of leases; and of all
money payable under any option to purchase, and shall give executed
originals of all leases, now or hereafter on or affecting the
property.
16. Trustor reserves the right, prior to any default in
payment of any indebtedness or performance of any obligation
secured hereby, to collect all such rents, royalties, issues and
profits, as but not before they become due. Upon any such default,
ATT. 3 - Page 5 3
Trustor's right to collect such moneys shall cease, not only as to
amounts accruing thereafter, but also as to amounts then accrued
and unpaid. In the event of default, Beneficiary, with or without
notice and without regard to the adequacy of security for the
indebtedness hereby secured, either in person or by agent, or by a
receiver to be appointed by the court, (a) may enter upon and take
possession of the property at any time and manage and control it in
Beneficiary's discretion, and (b) with or without taking
Possession, may sue for or otherwise collect the rents, issues and
profits thereof, whether past due or coming due thereafter, and
apply the same, less costs and expenses of operation and
collection, including reasonable attorneys' fees, upon any
obligation secured hereby and in such order as Beneficiary
determines. None of the aforesaid acts shall cure or waive any
default hereunder or invalidate any act done pursuant to such
notice. Beneficiary shall not be required to act diligently in the
care or management of the property or in collecting any rents,
royalties or other profits that it is hereby authorized to collect,
and shall be accountable only for sums actually received. -
17. Without affecting the liability of Trustor or of any
other party now or hereafter bound by the terms hereof, from time
to time and with or without notice, may release any person now or
hereafter liable for performance of such obligation, and may extend
the time for payment or performance, accept additional security,
and alter, substitute or release any security.
18. In any judicial action brought to foreclose this
deed or to enforce any right of Beneficiary or of Trustee
hereunder, Trustor shall pay to Beneficiary and to Trustee
attorneys' fees in a reasonable sum, to be fixed by the court.
19. No remedy hereby given to Beneficiary or Trustee is
exclusive of any other remedy hereunder or under any present or
future law.
20. The pleading of any statute of limitations as a
defense to any and all obligations secured by this deed is hereby
waived, to the full extent permissible by law.
21. In the event of default in the payment of any
indebtedness secured hereby, and if such indebtedness is secured at
any time by any other instrument, Beneficiary shall not be
obligated to resort to any security in any particular order; and
the exercise by Beneficiary of any right or remedy with respect to
any security shall not be a waiver of or limitation on the right of
Beneficiary to exercise, at any time or from time to time
thereafter, any right or remedy with respect to this deed.
22. Trustor shall, upon request made by Beneficiary,
furnish the Beneficiary with annual statements covering the
operations of the property.
23. Beneficiary may collect a "late charge" not to
exceed an amount equal to four percent (4%) on the amount past due
ATT. 3 - Page 6 3
OF
and remaining unpaid on any installment that is not paid within ten
(10) days from the due date thereof, to cover the extra expense
involved in handling delinquent payments.
24. This deed applies to, inures to the benefit of and
binds all parties hereto, their heirs, legatees, devisees,
administrators, executors, successors, successors in interest, and
assigns. The term "Beneficiary" means the owner and holder,
including pledgees, of the note secured hereby, whether or not
named as Beneficiary herein. In this deed, whenever the context so
requires, the masculine gender includes the feminine and neuter,
and the singular number includes the plural, and all obligations of
each Trustor hereunder are joint and several.
25. Trustee accepts this trust when this deed, duly
executed and acknowledged, is made a public record as provided by
law. Trustee is not obligated to notify any party hereto of
pending sale under any other deed of trust or of any action or
proceeding in which Trustor, Beneficiary or Trustee is a party
unless brought by Trustee.
Trustor requests that a copy of notice of default and of
any notice of sale hereunder shall be mailed to him at the address
set out opposite his name, immediately below.
MAILING ADDRESSES FOR NOTICES:
HABITAT FOR HUMANITY,
a California non-profit corporation
as Trustor:
35131 Yucaipa Boulevard, Yucaipa, CA 92399
ATT. 3 - Page 7
3
0
Executed at San Bernardino, California, on the date first
above written.
HABITAT FOR HUMANITY,
a California non-profit
corporation
as Trustor
By:
Title:
i
ATT. 3 - Page 8
3
STATE OF CALIFORNIA )
a ss.
COUNTY OF
On �-f-C604vW 1 1193 before me, IqK- -E ✓
personally appeared ✓b1 (Cfl'4 Et
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies) , and that by his/her/their signature(s) on the
instrument the person(s) , or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal. (Seal)
-•
OFFICIAL
Signature ���4, v JANIS P. BAXTER
NOTARY PUBLIC•CAL1F
SAN BERNARDINO COUNTY
YY C�scTEapha.'Aug.L 1995
ATT. 3 - Page 9
ZRZ00001-55/DOC/642
1/25/93 9:30
RECORDING REQUESTED DY:
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND WHEN RECORDED RETURN TO:
SABO & GREEN,
a Professional Corporation
Suite 400
6320 Canoga Avenue
Woodland Bills, California 91367
(Space Above for Recorder's Use)
REDEVELOPMENT AGENCY OF THS CITY OF SAN BSMUM=p
OWNER PARTIgZRATICM ROLM MM
(HABITAT FOR __ ANITV RAN gjW&gpjNQ QE&, INC.)
By and Between
REDEVELOPMENT AGENCY OF
THE CITY OF SAN BBRNARDINO
and
HABITAT FOR HUMANITY
a California non-profit corporation
3
TABLE OF CONTENTS
a e
I. [100] SUBJECT OF AGREEMENT
A. [101] Purpose of Agreement . . . . . . . . 1
B. [102] The Redevelopment Plan . . . . . . . . . . 2
C. (103) The Site . . . . . , . , , 2
D. [104] Parties to the Agreement . . . . . . . . 2
1. [105] The Agency . . . . . . . . . . . o . 2
2, [106] The Participant . . . . • 3
3. [107] Prohibition Against Change in
Ownership, Management and
Control of the Participant . . . . . . 3
4. [108] Benefit to Project Area . . . . . . . 5
II. (200) AGENCY ASSISTANCE
A. [201] Improvement of the Site . . .
6
(202) Second Trust Deeds . 6
(203) Promissory Note and Deed of Trust 7
III. [300] IMPROVEMENT OF THE SITE
A. [301] Improvement by Participant . . . . . . . . 8
1. [302] Scope of Development . . . . . . . . . 8
2 . (303) Cost of Construction . . . . . . 8
3. (304) Construction Schedule . . 8
4. [305] Bodily Injury and
Property Damage Insurance 0 9
5. [306] City and Other Governmental
Agency Permits . . . . . . . 10
•
6. [307] Rights of Access . . . . . .
11
7. (308) Local, State and Federal Laws . . . 11
8. [309] Antidiscrimination During
Construction . . . . . . . . . . . . 12
B. (310) Taxes, Assessments, Encumbrances
and Liens . . . . . . . . . 12
C. [311] Prohibition Against Transfer of
the Site, the Buildings or
Structures Thereon and Assignment
of Agreement . . . . . . . . . . . . . . 12
(i)
3
D. [312] Mortgage, Deed of Trust, Sale
and Lease-Back Financing;
Rights of Holders . . . . . . . . . . . . 13
1. [313] No Encumbrances Except Mortgages,
Deeds of Trust or Sale
and Lease-Back for Development 13
2. [314] Holder Not Obligated to
Construct Improvements . . . . . . . 14
3 . [315] Notice of Default to Mortgagee
or Deed of Trust Holders;
Right to Cure . . . 15
4. [316] Failure of Holder to
Complete Improvements . . . . . . .
16
5. [317] Right of Agency to Cure Mortgage
or Deed of Trust Default . . . . . . 17
F. [318] Right of Agency to Satisfy Other
Liens On The Site . . . . . . . . . . . . 17 -
IV. [400] USES OF SITE; AFFORDABILITY COVENANTS
A. [401] Uses - Covenants Running With the Land 19
B. [402] Maintenance of the Site . . . 23
C. [403] Effect of Violation of the Terms
and Provisions of this Agreement
After Completion of Construction . . . . 23
V. [500] GENERAL PROVISIONS
A. [501] Notices, Demands and Communications
Between the Parties . 25
B. [502] Conflicts of Interest; •Nonliability 25
C. [503] Enforced Delay; Extension of
Times of Performance . . . . . 26
D. [504] Inspection of Books and Records . 27
VI. [600] DEFAULTS AND REMEDIES
A. [601] Defaults - - General 28
B. [602] Legal Actions . . . . . . . . . . . . . . 28
1. [603] Institution of Legal Actions . . 28
2 . [604] Applicable Law . . . . 29
3. [605] Acceptance of Service of Process . . 29
C. [606] Rights and Remedies are Cumulative 29
D. [607] Inaction Not a Waiver of Default . . .
29
E. [608] Remedies . . . . . . . . . . . . . . . . 30
1. [609] Damages . . . . . . . . . . . . . . 30
(ii)
3
VII. [700] SPECIAL PROVISIONS
A. [701] Submission of Documents to
Agency for Approval 31
B. [702] Successors in Interest . . . . . . . . . 31
VIII. [800] ENTIRE AGREEMENT, WAIVERS . . . . . . . . . . 32
IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
A. [901] Time for Acceptance . . . . . . . . . . . 33
ATTACHMENT NO. 1 - LEGAL DESCRIPTION
ATTACHMENT NO. 2 - PROMISSORY NOTE
ATTACHMENT NO. 3 - DEED OF TRUST
ATTACHMENT NO. 4 - SCOPE OF DEVELOPMENT
ATTACHMENT NO. 5 - SCHEDULE OF PERFORMANCE
(iii)
JAN 25 '93 09:47AM P.3
23200001-53/D0C/642/df
1/25/93 9130
AGR EE=
THIS AGREEMENT IS ENTERED INTO this 1st day of February,
1993, by and between the REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO (the "AgencyN) and HABITAT FOR HUMANITY
SAN BERNARDINO AREA, INC. , a California non-profit corporation (the
"Participant") . Agency and Participant hereby agree as follows:
I. [100] SUBJECT OF AGREEMENT
A. [101) Purpose of Acragaen -
The purpose of this Agreement is to effectuate the
Redevelopment Plan for the Central City Redevelopment Project (the
"Redevelopment Plan") by providing for Agency assistance to
Participant for the development of the Site, which is located
within and will benefit the Central City Redevelopment Project Area
(the "Project Area") or the Redevelopment Plan. The development of
the Site pursuant to this Agreement is in the vital and best
interests of the City of San Bernardino, California (the "City")
and the health, safety and welfare of its residents, and in accord
with the public purposes and provisions of applicable state and
local laws and requirements under which the Redevelopment Plan has
been undertaken. The Community Development Commission, acting on
behalf of the Agency, has determined that the uses contemplated by
this Agreement will benefit the low- and moderate-income housing
needs of the City and the Redevelopment Plan, and has authorized
3
the use of funds from the Agency's Low- and Moderate-Income Housing
Fund.
B. [102] The Redevelopment Plan
The Redevelopment Plan was approved by ordinance of the
Common Council of the City of San Bernardino; said ordinance and
the Redevelopment Plan as so approved are incorporated herein by
reference.
C. [103] The Site
The Site is that certain real property generally located
at 238 South Allen Street in the City of San Bernardino and is more
fully described in the "Legal Description of the Site", which is
attached hereto as Attachment No. 1 and is incorporated herein by
this reference. Prior to the performance of any of the obligations
set forth in this Agreement, the Site may be changed to such other
mutually acceptable site as may be agreed to by the Parties in
writing whereupon the provisions of this Agreement shall thereafter
be applicable to such other mutually agreed upon site.
D. [104] Parties to the Agreement
1. [105] The Agency
The Agency is a public body, corporate and politic,
exercising governmental functions and powers and organized and
existing under Chapter 2 of the Community Redevelopment Law of the
State of California (Health and Safety Code Section 33020, et sea. )
The principal office of the Agency is located at 201 North "E"
Street, San Bernardino, California 92401.
- 2 - 3
"Agency", as used in this Agreement, includes the
tL Community Development Commission of the City of San Bernardino, the
Economic Development Agency of the City of San Bernardino, the
Redevelopment Agency of the City of San Bernardino, and any
assignee of or successor to their rights, powers and
responsibilities.
2. [106] The Participant
The principal office and mailing address of the
Participant for purposes of this Agreement is 35131 Yucaipa
Boulevard, Yucaipa, CA 92399, Attn: Michael Arnold.
The Participant qualifies as an owner participant
pursuant to the Redevelopment Plan and rules promulgated pursuant
thereto pertaining to owner participation.
3 . [107] Prohibition Against Change-Ain ownership
Management and Control of the Participant
The qualifications and identity of the Participant are of
particular concern to the Agency. It is because of those
qualifications and identity that the Agency has entered into this
Agreement with the Participant. No voluntary or involuntary
successor in interest of the Participant shall acquire any rights
or powers under this Agreement except as expressly set forth
herein.
- 3 -
The Participant shall not assign all or any part of this
Agreement or any rights hereunder without the prior written
approval of the Agency, which approval the Agency may grant,
withhold or deny at its discretion. In the event of such transfer
or assignment: (1) the assignee shall expressly assume the
obligations of the Participant pursuant to this Agreement in
writing satisfactory to the Agency; (2) the original Participant
shall remain fully responsible for the performance and liable for
the obligations of the Participant pursuant to this Agreement; and
(3) any guarantees provided to assure the performance of the
Participant's obligations under this Agreement shall remain in full
force and effect.
In the absence of specific written agreement by the
Agency, no such transfer, assignment or approval by the Agency
shall be deemed to relieve the Participant or any other party from
any obligation under this Agreement.
All of the terms, covenants and conditions of this
Agreement shall be binding upon and shall inure to the benefit of
the Participant and the permitted successors and assigns of the
Participant. Whenever the term "Participant" is used herein, such
term shall include any other permitted successors and assigns as
herein provided.
The restrictions of this Section 107 shall terminate and
be of no further force and effect upon completion of the Project as
evidenced by a Certificate of Completion. Nothing in this Section
4 - S
107 shall act to restrict the sale of the completed residential
ta unit developed on the Site to a qualified purchaser if said sale is
otherwise in compliance with the terms of this Agreement.
4. [108] Benefit to Project Area
Agency has determined that the development of the Site in
accordance with this Agreement will eliminate blight and provide
needed low- and moderate-income housing to the Project Area which
is needed due to the insufficiency of such housing within the
Project Area.
AWN
5 -
II. [200] AGENCY ASSISTANCE
A. [201] The Project
The Participant shall develop the Site by acquiring the
Site and causing the construction thereon of a single family
residential unit to be occupied by low and moderate income
households (the "Project") .
B. [202] The Assistance
In order to assist in the development of the Project, the
Agency agrees to provide financial assistance in an amount not to
exceed Twenty Five Thousand Dollars ($25, 000) (the "Agency
Assistance") of which Nineteen Thousand Dollars ($19, 000) is to be
applied to acquisition costs and the remaining Six Thousand Dollars
($6, 000) shall be used for construction, engineering and related
costs. The Agency Assistance shall be deposited by the Agency into
the escrow established for the transfer of the Site ten (10) days
prior to the close of the Escrow. The purpose of the Agency
Assistance will be to provide for the acquisition of the Site and
construction of the Project thereon and subsequent disposition to
low- and moderate-income purchasers who comply with certain
requirements so that the unit will be purchased at affordable
costs. The Agency shall provide to the Participant the parameters
of such program including the income limits, adjusted for family
size, that shall apply to the residential unit to be built on the
Site. The Participant agrees to be bound by all limitations to be
established by the Agency and/or any Conditions and Covenants and
Restrictions as may be imposed by the Agency applicable to the
6 -
Site, as to income limits and maximum sales price limits for the
residence on the Site.
C. (2037 Promissory Note and Deed of Trust
The Agency Assistance shall be reflected in a Promissory
Note executed by the Participant in favor of the Agency in the
amount of Twenty Five Thousand Dollars ($25,000) substantially in
the form of Attachment No. 2 attached hereto and incorporated
herein by this reference and shall be secured by a Deed of Trust
substantially in the form of Attachment No.. 3 attached hereto and
incorporated herein by this reference.
The Promissory Note shall bear no interest and shall be
for a term of Two (2) Years from its date of execution. To the
extent the Participant completes the Project in accordance with the
Schedule of Performance as hereinafter defined, the Promissory Note
shall be forgiven in its entirety upon the filing of a Certificate
Of Completion for the Project. To the extent the Participant does
not complete the Project, the Promissory Note shall be due and
payable in full upon the expiration of its term.
0
III. [300] IMPROVEMENT OF THE SITE
A. (301) Improvement by Participant
Participant and Agency agree that the central purpose of
this Agreement is to provide for the construction on the Site of a
detached single family residence in a manner consistent with the
Redevelopment Plan to be occupied by low- and moderate-income
households. The residential unit will be of high quality and will
be constructed with a full range of amenities, all as described
more fully in the Scope of Development (see Section 302) .
1. [302] Scope of Development
The Site shall be developed by Participant as strictly
provided in the "Scope of Development", which is attached hereto as
Attachment No. 4 and is incorporated herein. Any deviation from
the Scope of Development will constitute a Default of this
Agreement by the Participant. Any changes in the Scope of
Development must first be approved by the Agency in writing.
2. [303] Cost of Construction
The cost of constructing the Project shall be borne
solely by Participant. The Agency shall have no obligations, other
than as expressly set forth herein, with respect to the funding of
the Project.
3. [304] Construction Schedule
Upon execution of this Agreement, Participant will
promptly begin and diligently prosecute to completion the
construction of the Project. Participant shall begin and complete
8
all construction and development of the Project within the times
specified in the "Schedule of Performance" which is attached hereto
as Attachment No. 5 and incorporated herein. Participant shall
strictly conform to all time requirements and limitations set forth
in this Agreement.
4 . [305) Bodily Injury and Property Damage
Insurance
Participant shall defend, assume all responsibility for
and hold the Agency, the City and their respective officers, agents
and employees, harmless from all claims or suits for, and damages
to, property and injuries to persons, including accidental death
(including attorneys' fees and costs) , which may be caused by any
of Participant's activities under this Agreement, whether such
activities or performance thereof be by the Participant or anyone
directly or indirectly employed or contracted with by Participant
and whether such damage shall accrue or be discovered before or
after termination of this Agreement. Participant shall take out
and maintain a comprehensive liability and property damage policy
in the amount of One Million Dollars ($1, 000, 000) combined single
limit policy, including contractual public liability, as shall
protect Participant, City and Agency from claims for such damages
until two (2) years after the completion of the Project.
Participant shall furnish a certificate of insurance
countersigned by an authorized agent of the insurance carrier on a
form of the insurance carrier setting forth the general provisions
of the insurance coverage. This countersigned certificate shall
- 9 - 3
name the City and Agency and their respective cove officers, agents, and
employees as additional insureds under the policy. The certificate
by the insurance carrier shall contain a statement of obligation on
the part of the carrier to notify City and the Agency of any
material change, cancellation or termination of the coverage at
least thirty (30) days in advance of the effective date of any such
material change, cancellation or termination. Coverage provided
hereunder by Participant shall be primary insurance and not
contributing with any insurance maintained by Agency or City, and
the policy shall contain such an endorsement. The insurance policy
or the certificate of insurance shall contain a waiver of
subrogation for the benefit of the City and Agency.
Participant shall furnish or cause to be furnished to
Agency evidence satisfactory to Agency that any contractor with
whom it has contracted for the performance of work on the Site or
other wise pursuant to this Agreement carries workers'compensation
insurance as required by law.
5. (306) City and Other Governmental Agency Permits
Before commencement of the Project or other construction
or development of any buildings, structures or other works of
improvement upon the Site, Participant shall, at its own expense,
secure or cause to be secured any and all permits for all necessary
off-site improvements which may be required by the City or any
other governmental agency having jurisdiction over such
construction, development or work.
- 10 -
Nothing contained in this Agreement shall be deemed to be
an approval by the City of any application or permit required to be
obtained by Participant from the City.
6. [307] Rights of Access
For the purpose of assuring compliance with this
Agreement, representatives of Agency and the City shall have the
right of access to the Site, without charges or fees, at normal
construction hours during the period of work for the purposes of
this Agreement, including, but not limited to, the inspection of
the work being performed in constructing the improvements, so long
as they comply with all safety rules. Such representatives of
Agency or of the City shall be those who are so identified in
writing by the Executive Director of Agency. Agency shall hold the
Participant harmless from any bodily injury or related damages
arising out of the activities of Agency and the City as referred to
in this Section 307 and resulting from the gross negligence or
willful misconduct of the City or Agency. This Section 307 shall
not be deemed to diminish or limit any rights which the City or
Agency may have by operation of law irrespective of the Agreement.
7. [308] Local. State and Federal Laws
Participant shall carry out the construction of the
Project and all related activities on the Site in conformity with
all applicable laws, including all applicable federal and state
labor standards; provided, however, Participant and its
contractors, successors, assigns, transferees, and lessees are not
- 11 -
i
waiving their rights to contest any such laws, rules or standards.
8. [309] Antidiscrimination During Construction
Participant, for itself and successors and assigns,
agrees that in the construction of the improvements provided for in
this Agreement, Participant shall not discriminate against any
employee or applicant for employment because of race, color, creed,
religion, age, sex, marital status, handicap, national origin or
ancestry.
B. [310] Taxes, --Asses ments Encumbrances and Liens
Prior to the issuance of a Certificate of Occupancy for
the residence developed on the Site, Participant shall not place or
allow to be placed on the Site or any part thereof any mortgage,
trust deed, encumbrance or lien other than as expressly allowed by
Section 315 or any other provisions of this Agreement. Participant
shall remove or have removed any levy or attachment made on any of
the Site or any part thereof, or assure the satisfaction thereof
within a reasonable time but in any event prior to a sale
thereunder.
C. [311] Prohibition Against Transfer of the Site the
Buildings or Structures thereon and Assignment
of Agreement
1. Prior to the issuance by the Agency of a Certificate
Of Completion as to the Site, Participant shall not, except as
permitted by this Agreement, without the prior written approval of
Agency, make any total or partial sale, transfer, conveyance,
- 12 - 3
assignment or lease of whole or any part of the Site or of the
buildings or structures on the Site. This prohibition shall not be
deemed to prevent a transfer expressly permitted pursuant to
Section 107 of this Agreement, or the granting of temporary or
permanent easements or permits to facilitate the development of the
Site.
2. Upon obtaining a Certificate of Occupancy from the
City of San Bernardino for the Site, the Participant shall use best
efforts to sell such unit in accordance with and subject to the -
restrictions set forth in this Agreement.
3. The deed to any purchasers of the residential unit
shall require that the unit be owner occupied by persons living in
the unit as their principal residence and shall further require
that the units shall remain available at affordable housing costs
to the families of low- and moderate-income for a period of not
less than twenty (20) years subject to any exceptions as may be
provided by the Agency.
D. [312] Mortgage Deed of Trust Sale and Lease Back
nancin • Ri hts of Holders
1. [313] No Encumbrances Except Mortgages. Deeds
of Trust or Sale and Lease Back for
Development
Mortgages, deeds of trust and sales and lease-back are to be
permitted before completion of the construction of the
improvements, but only for the purpose of securing loans of funds
- 13 -
t
to be used for financing the acquisition of the Site, the
construction of improvements on the Site, and any other purposes
necessary and appropriate in connection with development under this
Agreement, and only if the instrument effecting such mortgages,
deeds of trust and sales and lease-backs contain the provisions of
Sections 318 and 319 of this Agreement. Participant shall not
enter into any other conveyance or lien for financing without the
prior written approval of Agency, which approval Agency agrees to
give if any such conveyance or lien for financing is given to a
bank, savings and loan association,oci
ation, or other similar
lending
institution and the terms of said financing are reasonably
acceptable to Agency. The form of approval by Agency shall be in
writing which references this Section 313, executed by the
Executive Director of the Agency. In the event that the Agency
fails to accept or reject such lender in writing within fifteen
(15) days after written notice thereof is received by the Agency,
such lender shall be deemed approved.
2. [314] Holder Not Obligated to Construct
Improvements
The holder of any mortgage or deed of trust authorized by
this Agreement shall not be obligated by the provisions of this
Agreement to construct or complete the Project or to guarantee such
construction or completion. Nothing in this Agreement shall be
deemed to construe, permit or authorize any such holder to devote
the Site to any uses or to construct any improvements thereon,
other than those uses provided for or authorized by this Agreement.
14 - �5
3 . [315] Notice of Default to Mortgagee or Deed of
Trust Holders: Right to Cure
With respect to any mortgage or deed of trust granted by
Participant as provided herein, whenever Agency shall deliver any
notice or demand to Participant with respect to any breach or
default by Participant in completion of the construction of the
Project, Agency shall at the same time deliver to each holder of
record of any mortgage or deed of trust authorized by this
Agreement a copy of such notice or demand. Each such holder shall
(insofar as the rights of Agency are concerned) have the right, at
its option, within thirty (30) days after the receipt of this
notice, to cure or remedy or commence to cure or remedy any such
default and to add the cost thereof to the mortgage debt and the
lien of its mortgage. Nothing contained in this Agreement shall be
deemed to permit or authorize such holder to undertake or continue
the construction or completion of the Project (beyond the extent
necessary to conserve or protect the Project or construction
already made) without first having expressly assumed the
Participant's obligations to Agency by written agreement
satisfactory to Agency. The holder, in that event, must agree to
complete, in the manner provided in this Agreement, the Project to
which the lien or title of such holder relates, and submit evidence
satisfactory to Agency that it has the qualifications and financial
responsibility necessary to perform such obligations.
- 15 -
4. (316) Failure of Molder to Complete
Improvements
In any case where, thirty (30) days after default by the
Participant in completion of construction of Project under this
Agreement, the holder of any mortgage or deed of trust creating a
lien or encumbrance upon the Site or any part thereof has not
exercised the option to construct or if it has exercised the option
and has not proceeded diligently with construction, Agency may
purchase the mortgage or deed of trust by payment to the holder of
the amount of the unpaid mortgage or deed of trust debt, including
principal and interest and all other sums secured by the mortgage
or deed of trust. If the ownership of the Site or any part thereof
has vested in the holder, Agency, if it so desires, shall be
entitled to a conveyance from the holder to Agency upon payment to
the holder of an amount equal to the sum of the following:
a. The unpaid mortgage or deed of trust debt at the
time title became vested in the holder (less all appropriate
credits, including those resulting from collection and application
of rentals and other income received during foreclosure
proceedings) ;
b. All expenses with respect to foreclosure;
C. The net expense, if any (exclusive of general
overhead) , incurred by the holder as a direct result of the
subsequent management of the Site or part thereof;
- 16 -
d. The costs of any portion of the Project incurred by
such holder; and
e. An amount equivalent to the interest that would have
accrued on the aggregate of such amounts had all such amounts
become part of the mortgage or deed of trust debt and such debt had
continued in existence to the date of payment by Agency; less
f. Any income derived by the lender from operations
conducted on the Site (the receipt of principal and interest -
payments in the ordinary course of business shall not constitute
income for the purposes of this subsection f) .
5. (317) Right of Agency to Cure Mortgage or Deed
of Trust Default
In the event of a mortgage or deed of trust default or
breach by Participant prior to the completion of any part thereof
and the holder of any mortgage or deed of trust has not exercised
its option to complete construction, Agency may cure the default.
In such event, Agency shall be entitled to reimbursement from
Participant of all proper costs and expenses incurred by Agency in
curing such default.
F. (318) Right of Aaencv to Satisfy Other Liens On The
Site
Prior to the completion of the Project, and after
Participant has had written notice and has failed after a
reasonable time, but in any event not less than fifteen (15) days,
- 17 -
to challenge, cure, adequately bond against, or satisfy any liens
or encumbrances on the Site which are not otherwise permitted under
this Agreement, Agency shall have the right but not the obligation
to satisfy any such liens or encumbrances.
18 -
IV. [400] USES OF SITE; AFFORDABILITY COVENANTS
A. [401] Uses - Covenants Running With the Land
Participant covenants and agrees for itself, its
successors, its assigns, and every successor in interest to the
Site or any part thereof, that for a period of twenty (20) years
commencing on the date of the issuance by City of the Certificate
of Occupancy, the single family residence to be constructed on the
Site will be devoted to and available for sale solely to persons or
families with an income which are low and moderate to very low, as
those terms are defined in Health and Safety Code Sections 50093
(low and moderate income) and 50105 (very low income) , with sales
costs of each residential unit to be at an affordable housing cost
(as such term is defined in Health and Safety Code
Section 50052.5) .
The foregoing covenant shall run with the land for twenty
(20) years commencing on the date that the City issues the
Certificate of Occupancy on the Site.
The Agency shall, after the date of this Agreement,
consider and adopt guidelines and restrictions as it deems
necessary for compliance with the provisions contained in the
California Community Redevelopment Law and in particular, those
Sections thereof that permit the use of the Agency's Low- and
Moderate-Income Housing Fund. The Participant acknowledges that
the source of funds to be utilized to fulfill the Agency's
financial commitments under this Agreement shall be tax increment
revenues on deposit in the Agency's Low- and Moderate-Income
- 19 - S
Housing Fund. The Community Redevelopment :Law, and in particular,
Health and Safety Code Section 33334.3, requires the Agency to
impose certain limitations on the income of prospective purchasers
of the unit and the maximum sales price of the unit, based upon
affordability as may be determined by the Agency. The Participant
agrees to include within the content of the grant deed and any
other appropriate disclosure documents as may be reasonably
necessary to implement this Agreement, such provisions as are
necessary in furtherance of the guidelines and restrictions to be
adopted by the Agency pursuant to this section as a means of _
complying with the intent of said Health and Safety Code
Section 33334.3 .
The Participant further covenants and warrants that
Participant shall develop improvements on the Site in accordance
with the Scope of Development. Participant covenants to develop
the Site in conformity with all applicable laws including all
relevant federal and State labor standards and procedures. The
covenants of this paragraph shall run with the land.
Participant covenants by and for itself and any
successors in interest that there shall be no discrimination
against or segregation of any person or group of persons on account
of race, color, creed, religion, sex, marital status , age,
handicap, national origin or ancestry in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of the Site, nor
shall Participant itself or any person claiming under or through it
establish or permit any such practice or practices of
- 20 - 3
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees of the Site. The foregoing covenants shall
run with the land.
All deeds, leases or contracts pertaining to the Site
shall contain or be subject to substantially the following
nondiscrimination or non-segregation clauses:
1. In deeds: "The grantee herein covenants by and for
himself or herself, his or her heirs, executors, administrators and
assigns, and all persons claiming under or through them, that there
shall be no discrimination against or segregation of, any person or
group of persons on account of race, color, creed, religion, sex,
marital status, age, handicap, national origin or ancestry in the
sale, lease, sublease, transfer, use, occupancy, tenure or
enjoyment of the land herein conveyed, nor shall the grantee
himself or herself or any person claiming under or through him or
her, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees in the land herein conveyed. The foregoing
covenants shall run with the land. "
2. In leases: "The lessee herein covenants by and for
himself or herself, his or her heirs, executors, administrators and
assigns, and all persons claiming under or through him or her, that
this lease is made and accepted upon and subject to the following
21 - 3
conditions: "There shall be no discrimination against or
segregation of any person or group of persons on account of race,
color, creed, religion, sex, marital status, handicap, age,
ancestry or national origin in the leasing, subleasing,
transferring, use, occupancy, tenure or enjoyment sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the
premises herein leased nor shall the lessee himself or herself, or
any person claiming under or through him or her, establish or
permit any such practices or practices of discrimination or
segregation with reference to the selection, location, number, use
or occupancy of tenants, lessees, sublessees, subtenants or vendees
in the premises herein leased. "
3. In contracts: "There shall be no discrimination
against or segregation of, any person, or group of persons on
account of race, color, creed, religion, sex, marital status, age,
handicap, ancestry or national origin, in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the
premises, nor shall the transferee himself or herself or any person
claiming under or through him or her, establish or permit any such
practice or practices of discrimination or segregation with
reference to the selection, location, number use or occupancy of
tenants, lessees, subtenants, sublessees or vendees of the
premises. "
22 -
B. (402) Maintenance of the Site
Participant shall maintain the Project and all other
improvements on the Site and shall keep the Site free from any
accumulation of debris or waste materials.
Participant further agrees to maintain the Site in a neat
and attractive manner until construction of the improvements
described in this Agreement is complete so as not to, in the
reasonable determination of an appropriate officer of the City, be
a public nuisance, or be detrimental to the health, safety and
welfare of the public, or impair value of property within one
thousand (1, 000) feet of the Site, and agrees that in the event
Participant fails to do so, Agency may enter upon the Site for the
purposes of performing necessary and desirable maintenance, that
Participant will be responsible for the cost of any such
maintenance undertaken by Agency, which shall be paid within thirty
(30) days after receipt by Participant of written demand therefor.
C. (403) Effect of Violation of the Terms and
Provisions of this Agreement After Completion
of Construction
The covenants established in this Agreement shall,
without regard to technical classification and designation, be
binding for the benefit and in favor of Agency, its successors and
assigns, as to those covenants which are for its benefit. The
covenants contained in this Agreement shall remain in effect until
the termination date of the Redevelopment Plan unless an earlier
- 23 - S
date is specified. The covenants against racial discrimination
shall remain in perpetuity.
Agency is deemed the beneficiary of the terms and
provisions of this Agreement and of the covenants running with the
land, for and in its own rights and for the purposes of protecting
the interests of the community and other parties, public or
private, in whose favor and for whose benefit this Agreement and
the covenants running with the land have been provided. The
Agreement and the covenants shall run in favor of the Agency,
without regard to whether Agency has been, remains or is an owner
of any land or interest therein in the Site or in the Project Area.
Agency shall have the right, if the Agreement or covenants are
breached, to exercise all rights and remedies, and to maintain any
actions or suits at law or in equity or other proper proceedings to
enforce the curing of such breaches to which it or any other
beneficiaries of this Agreement and covenants may be entitled.
- 24 -
V. (500] GENERAL PROVISIONS
A. [501] Notices, Demands and Communications Between
the Parties
Written notices, demands and communications between
Agency and Participant shall be sufficiently given if delivered by
hand (and a receipt therefor is obtained or is refused to be given)
or dispatched by registered or certified mail, postage prepaid,
return receipt requested, to the principal offices of Agency and
Participant. Such written notices, demands and communications may
be sent in the same manner to such other addresses as such party
may from time to time designate by mail as provided in this
Section 501.
Any written notice, demand or communication shall be
deemed received immediately if delivered by hand and shall be
deemed received on the tenth day from the date it is postmarked if
delivered by registered or certified mail.
B. [502] Conflicts of Interest• Nonliability
No member, official or employee of Agency or the City
shall have any personal interest, direct or indirect, in this
Agreement. No member, official or employee shall participate in
any decision relating to the Agreement which affects his personal
interests or the interests of any corporation, partnership or
association in which he is directly or indirectly interested. No
member, official or employee of Agency or the City shall be
personally liable to Participant, or any successor in interest, in
the event of any default or breach by Agency or Participant, or for
- 25 -
any amount which may become due to Participant or its successor or
on any obligations under the terms of this Agreement.
The Participant represents and warrants that none of its
principals, officers or employees has any conflicts of interest
with respect to the Agency and/or City in connection with the
undertaking or performance of any of the obligations under
this
Agreement.
Participant further represents and warrants that it has
not paid or given, and shall not pay or give, any third party any
money or other consideration for obtaining this Agreement.
C. [503] Enforced Delav: Extension of Times of
Performance
In addition to specific provisions of this Agreement,
performance by either party hereunder shall not be deemed to be in
default, and all performance and other dates specified in this
Agreement shall be extended, where delays or defaults are due to:
war; insurrections; floods; earthquakes; fires; casualties; acts of
God; acts of the public enemy; freight embargoes; governmental
restrictions or priority; litigation; unusually severe weather;
acts or omissions of another party; acts or failures to act of the
City or any other public or governmental agency or entity (other
than the acts or failures to act of Agency which shall not excuse
performance by Agency) ; or any other causes beyond the control or
without the fault of the party claiming an extension of time to
perform. Notwithstanding anything to the contrary in this
- 26 -
ow
Agreement, an extension of time for any such cause shall be for the
period of the enforced delay and shall commence to run from the
time of the commencement of the cause, if notice by the party
claiming such extension is sent to the other party within thirty
(30) days of the commencement of the cause. Times of performance
under this Agreement may also be extended in writing by the mutual
agreement of Agency and Participant.
Participant is not entitled pursuant to this Section 503
to an extension of time to perform because of past, present, or
future difficulty in obtaining suitable temporary or permanent
financing for the Site.
D. [504) Inspection of Books and Records
Agency has the right at all reasonable times to inspect
the books and records of Participant pertaining to the Site as
pertinent to the purposes of this Agreement. Participant has the
right at all reasonable times to inspect the public records of
Agency pertaining to the Site as pertinent to the purposes of the
Agreement.
- 27 -
VI. [600] DEFAULTS AND REMEDIES
A. [601] Defaults - - General
Subject to the extensions of time set forth in
Section 503, failure or delay by any party to perform any term or
provision of this Agreement constitutes a default under this
Agreement. The party who so fails or delays must immediately
commence to cure, correct, or remedy such failure or delay, and
shall complete such cure, correction or remedy with diligence.
The injured party shall give written notice of default to
the party in default, specifying the default complained of by the
injured party. Except as required to protect against further
damages, and except for Sections 317 and 319 of this Agreement, the
injured party may not institute proceedings against the party in
default until thirty (30) days after giving such notice. Failure
or delay in giving such notice shall not constitute a waiver of any
default, nor shall it change the time of default.
B. [602] Legal Actions
1. [603] Institution of Legal Actions
Upon the occurrence of a default, the Agency may declare
the Promissory Note immediately due and payable in full and may
exercise all of its rights and remedies under the Deed of Trust.
In addition to any other rights or remedies hereunder, Agency or
Participant may institute legal action to cure, correct or remedy
any default, to recover damages for any default, or to obtain any
other remedy consistent with the purpose of this Agreement. Any
legal actions initiated pursuant to this Agreement or otherwise
- 28 -
with respect to this subject matter must be instituted in the
Superior Court of the County of San Bernardino, State of
California, or in an appropriate municipal court in that county.
2. [604] Applicable Law
The laws of the State of California shall govern the
interpretation and enforcement of this Agreement.
3 . [605] Acceptance of Service of Process
In the event that any legal action is commenced by any
party against another party, service of process on such party shall
be made by personal service upon such party or in such other manner
as may be provided by law, and shall be valid whether made within
or without the State of California.
C. [606] Rights and Remedies are Cumulative
Except as otherwise expressly stated in this Agreement,
the rights and remedies of the parties are cumulative, and the
exercise by any 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 any other party.
D. [607] Inaction Not a Waiver of Default
Any failures or delays by any party in asserting any of
its right and remedies as to any default shall not operate as a
waiver of any default or of any such rights or remedies, or deprive
any party of its right to institute and maintain any actions or
- 29 -
proceedings which it may deem necessary to protect, assert or
enforce any such rights or remedies.
E. [608] Remedies
1. [609] Damages
Prior to completion of the Project, if either Participant
or Agency defaults with regard to any of the provisions of this
Agreement, the non-defaulting party shall serve written notice of
such default upon the defaulting party. If the default is not
cured or if a cure has not been commenced and is being diligently
pursued to completion by the defaulting party within thirty (30)
days after service of the notice of default, the defaulting party
shall be liable to the other for any damages caused by such
default, and the non-defaulting party shall have the right to seek
specific performance and such other remedies as are available in
law or equity.
30 -
V
VII. (700) SPECIAL PROVISIONS
A. (701) Submission of Documents to Agency for Approval
Whenever this Agreement requires Participant to submit
any document to Agency for approval, which shall be deemed approved
if not acted on by Agency within the specified time, said document
shall be accompanied by a letter stating that it is being submitted
and will be deemed approved unless rejected by Agency within the
stated time. If there is not a time specified herein for such
Agency action, Participant may submit a letter requiring Agency
approval or rejection of documents within thirty (30) days after
submission to Agency or such documents shall be deemed approved.
B. [702) Successors in Interest
The terms, covenants, conditions and restrictions of this
Agreement shall extend to and shall be binding upon and inure to
the benefit of the heirs, executors, administrators, successors and
assigns of Participant.
- 31 -
VIII. (800] ENTIRE AGREEMENT, WAIVERS
This Agreement is executed in four (4) duplicate
originals, each of which is deemed to be an original. This
Agreement includes Attachments 1 through 5, which together with
this Agreement constitute the entire understanding and agreement of
the parties.
No private entity shall be deemed to be a third party
beneficiary with respect to any provisions of this Agreement.
This Agreement integrates all of the terms and conditions
mentioned herein or incidental hereto, and supersedes all
negotiations or previous agreements among the parties or their
predecessors in interest with respect to all or any part of the
subject matter hereof.
All waivers of the provisions of this Agreement must be
in writing by the appropriate authorities of the Agency and
Participant, and all amendments hereto must be in writing by the
appropriate authorities of Agency and Participant, except that the
Executive Director of Agency may agree to non-substantive changes
hereto with concurrence by Agency Counsel.
Each individual signing below represents and warrants
that he has the authority to execute this Agreement on behalf of
and bind the party he purports to represent.
- 32 - S
IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
A. [901] Time for Acceptance
This Agreement, when executed by Participant and
delivered to Agency, must be authorized, executed and delivered by
Agency on or before thirty (30) days after signing and delivery of
this Agreement by Participant or this Agreement shall be void,
except to the extent that Participant shall consent in writing to
a further extension of time for the authorization, execution and
delivery of this Agreement. The date of this Agreement shall be
the date when it shall have been signed by the Agency as evidenced
by the date first above shown.
33 -
IN WITNESS WHEREOF, Agency and Participant have executed
this Agreement on the day and date first above shown.
"Agency"
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
By:
W.R. Holcomb
Chairman
APPROVED AS TO FORM AND By:
LEGAL CONTENT: Kenneth J. Henderson
Secretary
By:
Special Agency Counsel
"Participant"
HABITAT FOR HUMANITY
a California non-profit
corporation
By:
By:
Title:
SBEO\0001-55IDOC%42
34 -
STATE OF CALIFORNIA )
COUNTY OF _SAj �C�rJpp„�1� ) ss.
On f 19q3 before me, 'J_4tijts
personally appeare -_E'1j I& �E_L_ e?nb c_n
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies) , and that by his/her/their signature(s) on the
instrument the person(s) , or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
FFICIAL SEAL
JANIS P. BAXTER
Signat re ,_ ” NOTARY PUBLIC-CALIF
• SAN BERNARDINO COUNTY
Q / ! 9 r ...•
MY Canmbnbn E s Aug.S,1966
mown-
�Qi1ti.1 kl4.J 16 `fc ,e J
ATT. 3 - Page 9
ATTACHMENT NO. 1
LEGAL DESCRIPTION OF THE SITS
Assessor Parcel No. 136-241-12.
Lot 19, B100k BI Shays Ralf-Acres No. 2 in the City of
San Bernardino, as per plat recorded in Block 23 of Maps, Page 60,
Records of San Bernardino County.
ATT. i - Page 1
ATTACHMENT 110. 1
LEGAL DESCRIPTION OF THE SITE
Asseeeor Parcel No. 136-241-12.
Lot 19, Block B; Shays Half-Acres No. 2 in the City of
San Bernardino, as per plat recorded in Block 23 of Maps, Page 40,
Records of San Bernardino County.
ATT. 1 - Page 1
COWN
ATTACHMENT NO. 2
PROMISSORY NOTE SECURED BY DEED OF TRUST
$ Place: Redevelopment Agency
201 North "E" Street
Third Floor
San Bernardino, CA 92401
Date:
FOR VALUE RECEIVED, the undersigned promises to pay to
the Redevelopment Agency of the City of San Bernardino (the
"Agency") or its successors, the sum of Twenty Five Thousand
Dollars ($25, 000) . Payment of principal shall be made as follows:
1. This Note shall become due and payable two (2) years
from the date of the Agreement.
2 . A failure to pay any sum provided for in this Note
when due or a material breach of this Note, the Agreement which is
the subject of this Note or the Deed of Trust, shall constitute a
breach hereof and shall entitle the Agency to declare all sums due
hereunder immediately due and payable and to pursue all remedies
available under this Note, the Agreement or the Deed of Trust.
All payments due under this Note shall be made in lawful
money of the United States at the principal office of the Agency,
201 North "E" Street, City Hall Annex, San Bernardino, CA 92401-
1507, or at such other place as may from time to time be designated
by the Agency in writing.
Notwithstanding any language herein to the contrary, this
Note shall become immediately due and payable in the amount of all
unpaid principal, with interest, upon any transfer in violation of
the Agreement of title of the property described in the Deed of
Trust to any person, firm or corporation other than the undersigned
and except as provided in said Deed of Trust, whether such transfer
of title be voluntary, involuntary, or by operation of law.
The undersigned reserves the right to prepay at any time
all or any part of the principal amount of this Note without the
payment of penalties or premiums. All payments on this Note shall
be applied first to the interest due on the Note and then to the
principal due on the Note, and the remaining balance shall be
applied to late charges, if any.
IN THE EVENT the undersigned shall fail to pay the
payments when due, and if such failure be subsisting thirty (30)
days thereafter, the unpaid principal amount of this Note, together
with accrued interest and late charges, shall become due and
payable, at the option of the Agency, without notice to the
undersigned. Failure of the Agency to exercise such option shall
ATT. 2 - Page 1
not constitute a waiver of such default. If the payments on this
Note are not paid within ten (10) days of the due date, the
undersigned shall pay to the Agency a late charge of 4% on the
amount past due and remaining paid. If this Note be reduced to
Judgment, such judgment shall bear the statutory interest rate on
judgments.
In no event shall the interest and late charge payable
hereunder exceed the maximum amount of interest permitted under the
usury laws of the State of California.
If suit is instituted by the Agency to recover on this
Note, the undersigned agrees to pay all costs of such collection
including reasonable attorney's fees and court costs.
THIS NOTE is secured by a Deed of Trust of even date,
duly filed for record in the office of the County Recorder of the
County of San Bernardino, State of California.
DEMAND, protest and notice of demand and protest are
hereby waived and the undersigned hereby waives, to the extent
authorized by law, any and all homestead and other exemption rights
which otherwise would apply to the debt evidenced by this Note.
ATT. 2 - Page 2
IN WITNESS WHEREOF, THIS NOTE has been duly executed by
the undersigned, as of its date.
HABITAT FOR HUMANITY
a California non-profit
corporation
By:
Title:
ATT. 2 - Page 3
ATTACHMENT NO. 3
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
)
(Space Above for Recorder's Use)
DEED OF TRUST WITH ASSIGNMENT OF RENTS
Deed of trust made on , 1992, by HABITAT
FOR HUMANITY, hereinafter called "Trustor, " whose address is
to
hereinafter referred to as "Trustee", whose business address is
California , in favor of the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, hereinafter
referred to as "Beneficiary", whose business address is 201 North
"E" Street, Third Floor, San Bernardino, California 92401.
Trustor irrevocably grants, transfers, and assigns to
Trustee in trust, with power of sale, all that property, including
all easements and rights of way used in connection therewith or as
a means of access thereto, in the City of San Bernardino, County of
San Bernardino, State of California, described as follows:
That certain property located in the City of
San Bernardino, County of San Bernardino, State of California, more
particularly described as:
SEE ATTACHMENT NO. 1
together with the rents, issues and profits thereof, subject
however to the right reserved by Trustor in Paragraph B-16 hereof
to collect and apply such rents, issues and profits, prior to any
default hereunder; for the purpose of securing performance in a
timely manner of all of Trustor's obligations under that certain
Owner Participation Agreement and payment of the indebtedness
evidenced by a Promissory Note executed by Trustor in the principal
sum of Twenty Five Thousand Dollars ($ 25, 000) , payable to
Beneficiary or order and each extension thereof, both executed in
connection with this Deed of Trust; and performance of each
agreement to Trustor incorporated herein by reference or contained
herein.
A. To protect the security of this Deed of Trust, Trustor agrees:
ATT. 3 - Page 1
1. To maintain the property in good condition and
repair; not to remove or demolish any building or improvement
thereon; to complete promptly in workmanlike manner any improvement
hereafter constructed thereon and to restore promptly in
workmanlike manner any improvement thereon that is damaged or
destroyed, and to pay when due all costs incurred therefor or in
connection therewith; to comply with all laws, ordinances,
regulations, covenants, conditions and restrictions affecting the
property; not to commit or permit any waste thereof or any act upon
the property in violation of law or of covenants, conditions or
restrictions affecting the property.
2 . To appear in and defend any action or proceeding
purporting to affect the security hereof or the rights or powers of
Beneficiary or Trustee; and also, if at any time Beneficiary or
Trustee is a party to or appears in any such action or proceeding,
or in any action or proceeding to enforce any obligation hereby
secured, to pay all cost and expenses paid or incurred by them or
either of them in connection therewith, including, but not limited
to, cost of evidence of title and attorneys' fees in a reasonable
SUM.
3. To pay (a) at least ten (10) days before
delinquency, all taxes and assessments affecting the property, all
assessment upon water company stock, and all rents, assessments and
charges for water appurtenant to or used in connection with the
property; (b) when due, all encumbrances, charges and liens, with
interest, on the property or any part thereof, which appear to be
prior or superior hereto; and (c) all costs, fees and expenses of
this trust.
4 . If Trustor fails to make any payment or to do any
act as herein provided, then Beneficiary or Trustee (but without
obligation so to do, and with or without notice to or demand upon
Trustor, and without releasing Trustor from any obligation hereof)
may (a) make or do the same in such manner and to such extent as
either deems necessary to protect the security hereof, Beneficiary
or Trustee being authorized to enter upon the property for such
purpose; (b) appear in or commence any action or proceeding
purporting to affect the security hereof or the rights or powers of
Beneficiary or Trustee; (c) pay, purchase, contest, or compromise
any encumbrance, charge or lien that, in the judgment of either,
appears to be superior hereto; and in exercising any such power,
Beneficiary or Trustee may incur necessary expenses, including
reasonable attorneys' fees.
S. To pay immediately and without demand all sums
expended hereunder by Beneficiary or Trustee, with interest from
date of expenditure at the annual rate of two percentage points
over Bank of America's published prime rate.
ATT. 3 - Page 2
B. It is mutually agreed that:
1. Any award of damages made in connection with the
condemnation for public use of or injury to the property or any
part thereof is hereby assigned and shall be paid to Beneficiary,
who may apply or release such moneys received therefor upon any
indebtedness secured hereby in such order as Beneficiary
determines, or at the option of Beneficiary the entire amount so
received or any part thereof may be released to Trustor. Such
application or release shall not cure or waive any default or
notice of default hereunder or invalidate any act done pursuant to
such notice.
2. The acceptance by Beneficiary of any payment less
than the amount then due shall be deemed an acceptance on account
only and shall not constitute a waiver of the obligation of Trustor
to pay the entire sum then due or of Beneficiary's right either to
require prompt payment of all sums then due or to declare default.
The acceptance of payment of any sum secured hereby after its due
date will not waive the right of Beneficiary either to require
prompt payment when due of all other sums so secured or to declare
default for failure so to pay. No waiver of any default shall be
a waiver of any preceding or succeeding default of any kind.
3 . At any time or from time to time, without liability
therefor and with or without notice, upon written request of
Beneficiary and presentation of this deed and the secured note for
endorsement, and without effecting the personal liability of any
person for payment of the indebtedness secured hereby or the effect
of this deed upon the remainder of the property, Trustee may
reconvey any part of the property, consent to the making of any map
or plat thereof, join in granting any easement or join in any
extension agreement or any agreement subordinating the lien or
charge thereof.
4. Upon written request of Beneficiary stating that all
sums secured hereby have been paid, surrender of this deed and the
note to Trustee for cancellation and retention, and payment of its
fees, Trustee shall reconvey, without warranty the property then
held hereunder. The recitals in such reconveyance shall be
conclusive proof of the truthfulness thereof. The grantee may be
designated in such reconveyance as "the person or persons legally
entitled thereto. "
5. Trustor may give such notice to Beneficiary at any
time before there is a Trustee's sale of the property. At any time
Trustor is in default in payments to be made to Beneficiary
hereunder, any amounts paid to and received by Beneficiary for
execution of releases pursuant to the terms of this paragraph after
notice of default and election to sell has been recorded shall not,
unless the requirements of Section 2924c of the Civil Code are
fully met by or on behalf of Trustor, waive the right of
Beneficiary to continue its plans to have the property sold, nor
shall they have any effect on the exercise by Beneficiary of the
acceleration privilege contained herein, except to entitle the
ATT. 3 - Page 3
person effecting such payment to the release of the property for
which the release amount was paid, and insofar as Beneficiary is
concerned, to constitute a credit against the secured debt.
6. If Trustor or any subsequent owner of the property
covered hereby shall occupy the property, or any part thereof,
after any default in payment of any amount secured by this deed of
trust, Trustor or such owner shall pay to Beneficiary in advance on
the first day of each month a reasonable rental for the premises so
occupied. On failure to pay such reasonable rental, Trustor or
such owner may be removed from the premises by summary
dispossession proceedings or by any other appropriate action of
proceeding.
7. If default is made in payment of any indebtedness or
in performance of any agreement hereby secured, then Beneficiary,
with or without notice to Trustor, may declare all sums secured
hereby immediately due and payable by instituting suit for the
recovery thereof or for the foreclosure of this deed, or by
delivering to Trustee a written declaration of default and demand
for sale, as well as a written notice of default and of election to
cause the property to be sold, which notice Trustee shall cause to
be filed for record. If such declaration is delivered to Trustee,
Beneficiary shall also deposit with Trustee this deed, the secured
note, and all documents evidencing expenditures secured hereby.
8. Should Trustor, without the consent in writing of
Beneficiary, voluntarily sell, transfer or convey his interest in
the property or any part thereof, or if by operation of law, it be
sold, transferred or conveyed, then Beneficiary may, at its option,
declare all sums secured hereby immediately due and payable.
Consent to one such transaction shall not be deemed to be a waiver
of the right to require such consent to future or successive
transactions.
9. After the time then required by law has elapsed
after recordation of such notice of default, and notice of sale
having been given as then required by law, Trustee, with or without
demand on Trustor, shall sell the property at the time and place
fixed in the notice of sale, either as a whole or in separate
parcels and in such order as Trustee determines, at public auction,
to the highest bidder, for cash in lawful money of the United
States, payable at the time of sale. Trustee may postpone from
time to time sale of all or any portion of the property by public
announcement at the time and place of sale originally fixed or at
the last preceding postponed time. Trustee shall deliver to the
purchaser its deed conveying the property 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. Trustor, Trustee, Beneficiary or any other
person may purchase at the sale.
10. After deducting all costs, fees and expenses of
Trustee and of this trust, including cost of evidence of title and
reasonable attorneys' fees in connection with sale, Trustee shall
ATT. 3 - Page 4
apply the proceeds of sale to payment of (a) all sums expended
under the terms hereof and not theretofore repaid, with accrued
interest at two percentage points over Bank of America's published
prime rate per annum, and (b) all other sums then secured hereby in
such order as Beneficiary, in the exercise of its sole discretion,
directs. The remainder, if any, shall be paid to the person or
persons legally entitled thereto.
11. Before Trustee's sale, Beneficiary may rescind such
notices of default and of election to cause the property to be sold
by delivering to Trustee a written notice of rescission, which
notice, when recorded, shall cancel any prior declaration of
default, demand for sale and acceleration of maturity. The
exercise of such a right of rescission shall not constitute a
waiver of any default then existing or subsequently occurring, or
impair the right of Beneficiary to deliver to Trustee other
declarations of default and demands for sale or notices of default
and of election to cause the property to be sold, or otherwise
affect any provision of the secured note or of this deed or any of
the rights, obligations or remedies of Beneficiary or Trustee
hereunder.
12. Beneficiary may, from time to time as provided by
statute, or by a writing signed and acknowledged by him and
recorded in the office of the county recorder of the county in
which the land or such party thereof as is then affected by this
deed of trust is situated, appoint another trustee in stead and of
Trustee herein named; and thereupon, the Trustee herein named shall
be discharged, and the trustee so appointed shall be substituted as
Trustee hereunder with the same effect as if originally named
Trustee herein.
13. If two or more persons are designated as Trustee
herein, any or all powers granted herein to Trustee may be
exercised by any of such persons if the other person or persons is
unable, for any reason, to act. Any recital of such inability in
any instrument executed by any of such persons shall be conclusive
against Trustor, his heirs and assigns.
14. All leases nor or hereafter affecting the property
are hereby assigned and transferred to Beneficiary by Trustor.
Trustor hereby covenants that none of such leases will be modified
or terminated without the written consent of Beneficiary.
15. When requested to do so, Trustor shall give such
further written assignments of rents, royalties, issues and
profits; of all security for the performance of leases; and of all
money payable under any option to purchase, and shall give executed
originals of all leases, now or hereafter on or affecting the
property.
16. Trustor reserves the right, prior to any default in
payment of any indebtedness or performance of any obligation
secured hereby, to collect all such rents, royalties, issues and
profits, as but not before they become due. Upon any such default,
ATT. 3 - Page 5
-low 1W 09MUMOM
Trustor's right to collect such moneys shall cease, not only as to
amounts accruing thereafter, but also as to amounts then accrued
and unpaid. In the event of default, Beneficiary, with or without
notice and without regard to the adequacy of security for the
indebtedness hereby secured, either in person or by agent, or by a
receiver to be appointed by the court, (a) may enter upon and take
Possession of the property at any time and manage and control it in
Beneficiary's discretion, and (b) with or without taking
Possession, may sue for or otherwise collect the rents, issues and
profits thereof, whether past due or coming due thereafter, and
apply the same, less costs and expenses of operation and
collection, including reasonable attorneys' fees, upon any
obligation secured hereby and in such order as Beneficiary
determines. None of the aforesaid acts shall cure or waive any
default hereunder or invalidate any act done pursuant to such
notice. Beneficiary shall not be required to act diligently in the
care or management of the property or in collecting any rents,
royalties or other profits that it is hereby authorized to collect,
and shall be accountable only for sums actually received.
17. Without affecting the liability of Trustor or of any
other party now or hereafter bound by the terms hereof, from time
to time and with or without notice, may release any person now or
hereafter liable for performance of such obligation, and may extend
the time for payment or performance, accept additional security,
and alter, substitute or release any security.
18. In any judicial action brought to foreclose this
deed or to enforce any right of Beneficiary or of Trustee
hereunder, Trustor shall pay to Beneficiary and to Trustee
attorneys ' fees in a reasonable sum, to be fixed by the court.
19. No remedy hereby given to Beneficiary or Trustee is
exclusive of any other remedy hereunder or under any present or
future law.
20. The pleading of any statute of limitations as a
defense to any and all obligations secured by this deed is hereby
waived, to the full extent permissible by law.
21. In the event of default in the payment of any
indebtedness secured hereby, and if such indebtedness is secured at
any time by any other instrument, Beneficiary shall not be
obligated to resort to any security in any particular order; and
the exercise by Beneficiary of any right or remedy with respect to
any security shall not be a waiver of or limitation on the right of
Beneficiary to exercise, at any time or from time to time
thereafter, any right or remedy with respect to this deed.
22. Trustor shall, upon request made by Beneficiary,
furnish the Beneficiary with annual statements covering the
operations of the property.
"late 23. Beneficiary may collect a
exceed an amount eq al to four percent (0) onthe amo amount past due
ATT. 3 - Page 6
and remaining unpaid on any installment that is not paid within ten
(10) days from the due date thereof, to cover the extra expense
involved in handling delinquent payments.
24. This deed applies to, inures to the benefit of and
binds all parties hereto, their heirs, legatees, devisees,
administrators, executors, successors, successors in interest, and
assigns. The term "Beneficiary" means the owner and holder,
including pledgees, of the note secured hereby, whether or not
named as Beneficiary herein. In this deed, whenever the context so
requires, the masculine gender includes the feminine and neuter,
and the singular number includes the plural, and all obligations of
each Trustor hereunder are joint and several.
25. Trustee accepts this trust when this deed, duly
executed and acknowledged, is made a public record as provided by
law. Trustee is not obligated to notify any party hereto of
pending sale under any other deed of trust or of any action or
proceeding in which Trustor, Beneficiary or Trustee is a party
unless brought by Trustee.
Trustor requests that a copy of notice of default and of
any notice of sale hereunder shall be mailed to him at the address
set out opposite his name, immediately below.
MAILING ADDRESSES FOR NOTICES:
HABITAT FOR HUMANITY,
a California non-profit corporation
as Trustor:
35131 Yucaipa Boulevard, Yucaipa, CA 92399
ATT. 3 - Page 7
Executed at San Bernardino, California, on the date first
above written.
HABITAT FOR HUMANITY,
a California non-profit
corporation
as Trustor
By:
Title:
ATT. 3 - page 8
STATE OF CALIFORNIA )
COUNTY OF ) ss.
On before me,
personally appeared
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the persons) whose names) is/are
subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies) , and that by his/her/their signature(s) on the
instrument the person(s) , or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal. (Seal)
Signature
x
ATT. 3 - Page 9
ATTACHMENT NO 4
SCOPE OZ► DEVIlTnyMxwa.y.
Z. �EL`[E88L DEBCRrpmrn*r
The Site is specifically described in the Legal
Description (Attachment No. i)
Agreement. pursuant to Section 103 of this
II.
Participant is to construct a 1,147 ■
car garage, tingle-family detached uars toot, double
one-half baths which specifically follows the tC three
homes Housing
Plan No. 1 of the Cinurron Ranch 1 Century Homes Project, Tract No.
14303.
The home shall have full amenities and shall include the following:
-- Concrete Tile Goof
�- Caranie Counter Tops
-• Two (2) oar garage
Front Yard Landscaping
Front Yard Sprinkl'ars
Side and Rear Yard Fencing
-- Fireplace To Be Bxoluded From Construction plans
on the Site
lconstitute pthe en°his to be provided by the participant
Project.
The Participant shall commence and complete the Project
by the respective times established therefor in the Schedule of
Performance (Attachment No. 3) .
ZII. DynLOP RnG
The Project shall be developed in accordance with
applicable building and safety codes.
rV• DEM07.TTION I�ND 3OTT Q
Participant assumes all responsibility for surface and
subsurface conditions at the Site, and the suitabili
ror the Project. If the surface and subsurface ions the
esnot
entirely suitable for such development and use, Participant shall
At its cost take all actions necessary to render the Site entirely
suitable for such development. Participant has undertaken all
Investigation of the Site it has deemed necessary and has not
received or relied upon any representations of Agency, the City,
their respective officers, agents and employees. Participant shall
undertake at its cost all demolition required in connection with
the development of the Project.
ATT. 4 - Page 1
ATTACHMENT NO. 5
SCHEDULE OF PERFORMANCE
1.
Executi0n—Q�L Agreement by Not later than thirty (30) days
Agency. Agency shall approve after the date of execution and
and execute this Agreement, and submission of two (2) copies of
shall deliver one (1) copy this Agreement to Agency by
thereof to Participant. Participant.
2. Approval of Plans . Not later than March 1, 1993.
Approval of Construction Plans
and Landscaping Plans by the
Agency required prior to
submitting said plans to the
appropriate department of the
City.
3. Processing of Plans and Not later than March 1, 1993.
Mans. Participant shall cause
all necessary filing of plans
and maps with the appropriate
department of the City.
4. C o m m e n c e m e n t o f Not later than March 31, 1993 .
Construction. Participant shall
commence construction of the
Project.
Not later than December 31,
5. Complete Construction. 1993.
Participant shall complete
construction of the Project and
obtain a Certificate of
Occupancy.
I A
ATT. 5 - Page 1