HomeMy WebLinkAboutR44- Economic Development ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Maggie Pacheco,Director SUBJECT: FIRST AMENDMENT TO THE
Housing and Community Development NEIGHBORHOOD HOUSING
DATE: July 18,2000 ORI�� iiVAL INC.,(NHS)AGREEMENT INLAND EMPIRE,
YOUTHBUILD PROGRAM
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Synopsis of Previous Commission/Council/Committee Action(s):
On June 22,2000,the Redevelopment Committee recommended that this item be sent to the Community Development
Commission for approval.
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Recommended Motion(s):
(Community Development Commission)
MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
APPROVING THE FIRST AMENDMENT TO THE AGREEMENT BETWEEN
THE REDEVELOPMENT AGENCY AND NEIGHBORHOOD HOUSING
SERVICES OF THE INLAND EMPIRE, INC., REGARDING 1149 WEST RIALTO
AVENUE RELATED TO THE YOUTHBUILD PROGRAM
Contact Person(s): Gary Van Osdel/M.Pacheco Phone: 663-1044
Project Area(s) Ward(s):
Supporting Data Attached: 2 Staff Report Z Resolution(s) 0 Agreement(s)/Contract(s) ❑Map(s) ❑Letter/Memo
FUNDING REQUIREMENTS Amount: $ 0 Source: N/A
Budget Authority:
SIGNATURE: �f
ary Osdel,Execu ' e Director Maggie acheco,Director
Eco omic Developme t Agency Housing and Community Development
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Commission/Council Notes:
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GVO:MP:lag:07-24-00 Youthbuild Amendment COMMISSION MEETING AGENDA
Meeting Date: 07/24/2000
Agenda Item Number: -,"q
1
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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First Amendment To The Neighborhood Housing Services Of The Inland Empire,Inc.,
(NHS) Agreement-Youthbuild Program
BACKGROUND
On September 7, 1999, the Community Development Commission approved an Agreement
between the Redevelopment Agency and Neighborhood Housing Services of the Inland Empire,
Inc., (NHS) wherein the Agency would convey a residential parcel located at 571 Magnolia
Street and provide a grant to launch NHS's first YouthBuild housing project.
On May 1, 2000, the U.S. Department of Housing and Urban Development (HUD) introduced its
$1 Good Neighbor Program to expand its partnership with local governments in helping foster
housing opportunities for low to moderate income families as well as address specific
community needs. The program facilitates the sale of aged HUD residential inventory to local
governments for one dollar($1.00) and the City/Agency has agreed to participate in the program.
CURRENT ISSUE
The Agency will be acquiring a $1 Good Neighbor property located at 1149 W. Rialto (the
"Property"), and NHS has expressed a desire to purchase the Property for its second YouthBuild
Project, This Property is located in Neighborhood Initiative Program Target Area#4 (see map).
NHS has inspected the Property and feels that it would be a great learning candidate for the
Youth to work in light of the completion of their first house located on Magnolia Street in
accordance with the existing Agreement. The rehab p lans p ermits and administration is
estimated at 67 000. For the Commission edification,$ s ed cation the original A
Agreement required ed NHS to
g q
construct a new four (4) bedroom house, complete it by June 30, 2000, and sell it to a first time
homebuyer. NHS also owns two (2) vacant lots and the youth will construct single-family
housing units on those lots during the new program year.
YouthBuild is a 25-year old national program helping at risk youth transform their lives.
YouthBuild is a comprehensive job training, education, and leadership development initiative for
low-income young people who have not completed high school. It combines academic study and
employment training. NHS YouthBuild has been designated a Charter School which means
participants will work toward attainment of a high school diploma. In addition to studying for
their diploma, the youth will learn valuable employment skills while constructing and improving
homes for income-qualified citizens. Two full-time equivalent classroom teachers work with the
participants in groups and individually help them achieve their individual learning plans, goals
and objectives.
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GVO:MP:1ag:07-24-00 Youthbuild Amendment COMMISSION MEETING AGENDA
Meeting Date: 07/24/2000
Agenda Item Number: 1]_i_q
I
Economic Development Agency Staff Report
NHS - Youthbuild Program
July 18, 2000
Page Number-2-
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Recently, NHS was able to negotiate a favorable lease arrangement with Mr. Obershaw to lease
the building located at 1139 North "E" Street of which NHS is using the property to conduct the
academic and construction training for the Youth. NHS previously conducted their Program in
the City of Redlands because they lacked the proper facilities within the City of San Bernardino.
Moreover, in May 2000 the County of San Bernardino Jobs and Employment Services
Department awarded NHS a $223,000 grant in order to expand the program to include 20 new
students. Currently, there are approximately 20 youth participating in the program. The total
program is expected to train and educate a total of 40-50 youth during the program year starting
on August 28, 2000 to July 13, 2001.
As such, staff is requesting approval to transfer the Property to NHS for the sum of $1, plus
closing costs. This will be handled by a back-to-back escrow as done under the ARR Program.
Upon conveyance of the Property to NHS, they anticipate completing the rehab within 6 to 8
months from approval of the plans by the City. Like in the Magnolia Street transaction, NHS
will sell the home to a income qualified first time homebuyer at affordable housing costs. NHS
will be required to recycle all funds generated from the sale of the property into other
YouthBuild affordable housing projects, such as the two (2) lots referenced above.
FISCAL IMPACT
None. All costs associated with the conveyance of the Property to NHS will be absorbed by
NHS.
RECOMMENDATION
That the Communit Development Commission adopt the attached Resolution.
Maggie Pachec , Director
Housing and Community Development
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GVO:MP:lag:07-24-00 Youthbuild Amendment COMMISSION MEETING AGENDA
Meeting Date: 07/24/2000
Agenda Item Number: A"
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NIP TARGET AREAS
1 RESOLUTION NO:
2
3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
4 APPROVING THE FIRST AMENDMENT TO THE AGREEMENT
BETWEEN THE REDEVELOPMENT AGENCY AND NEIGHBORHOOD
s HOUSING SERVICES OF THE INLAND EMPIRE, INC., REGARDING
1149 WEST RIALTO AVENUE RELATED TO THE YOUTHBUILD
6 PROGRAM
7
THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF
8 OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DOES
HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
9
10
SECTION 1. The Executive Director of the Redevelopment Agency ("Agency")
11
is hereby authorized and directed to execute on behalf of said Agency an Amendment to the
12
Agreement between the Agency and Neighborhood Housing Services of the Inland Empire Inc.,
13
(NHSIE) wherein the Agency will donate the property located at 1149 West Rialto Avenue (the
14
"Property") to NHSIE for rehabilitation under the Youthbuild Program and sell the Property to
1s
an income qualified first-time homebuyer(the "Project"), and as more fully described in the
16
original Agreement, a copy of which is on file with the City Clerk, and incorporated herein by
17
reference as though fully set forth at length.
18
SECTION 2. The Executive Director of the Agency is hereby authorized to
19
make minor corrections, additions, and clarifications to the Agreement, provided said changes
20
are not substantive in nature, and do not increase the monetary impact to the Agency.
21
SECTION 3. The authorization to execute the above referenced Agreement is
22
rescinded if the parties to the Agreement fail to execute it within sixty(60) days of the passage o
23
this resolution.
24
25
26
27
28
-1-
I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
2 APPROVING THE FIRST AMENDMENT TO THE AGREEMENT
BETWEEN THE REDEVELOPMENT AGENCY AND NEIGHBORHOOD
3 HOUSING SERVICES OF THE INLAND EMPIRE, INC., REGARDING
1149 WEST RIALTO AVENUE RELATED TO THE YOUTHBUILD
4 PROGRAM
s
I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community
6
Development Commission of the City of San Bernardino at a meeting
7
thereof, held on day of , 2000 by the following vote, to wit:
8
COMMISSION MEMBERS: AYES NAYS ABSTAIN ABSENT
9 ESTRADA
10 LIEN
11 MCGINNIS
12 SCHNETZ
13 SUAREZ
14 ANDERSON
15 MC CAMMACK
16
17 City Clerk
18
The foregoing resolution is hereby approved this day of ) 2000.
19
20
Judith Valles, Chairperson
21 Community Development Commission
22 Of the City of San Bernardino
Approved as to form and Legal Content:
23 James F. Penman, City Attorney
24
25 By:
26
27
28
-2-
' COQ PV
1 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
2 AMENDMENT NO. 1 TO THE HOME PROGRAM ACQUISITION,
CONSTRUCTION AND RESALE AGREEMENT
3 DATED SEPTEMBER 7, 1999
4 (Neighborhood Housing Services of the Inland Empire, Inc. )
5 THIS AMENDMENT NO. 1 (the "Amendment No. 1") to the
6 Agreement dated September 7, 1999, ' is made and entered into as
7 of this 24th day of July 2000, by and between the Redevelopment
8 Agency of the City of San Bernardino a
g y y public body corporate
9 and politic (the "Agency") , and Neighborhood Housing Services of
10
the Inland Empire, Inc. , a California non-profit corporation,
11
(the "Participant") in view of the facts set forth in the
12
following Recitals :
13
RECITALS
14
The Agency and Participant have previously entered into the
15
Agreement for the purpose of allowing the Agency to convey the
16
lands located at 571 Magnolia Street to the Participant for
17 development of a single family house (the "New Home") under the
18
Participant' s "Youthbuild Program" and then reselling the
19
completed New Home to a "Qualified Homebuyer" as this term is
20
defined in the Agreement; and
21
The Agency intends to acquire the property located at 1149
22
West Rialto Avenue, San Bernardino, (the "Amendment No. 1
23
Property") from the United States Department of Housing an
24
Urban Development ("HUD") under a program between HUD and the
25
Agency known as the "$1 . 00 Good Neighbor Program" and the
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i
I Participant desires to purchase the Amendment No . 1 Property
2 from the Agency, subject to the terms and conditions as set
3 forth in this Amendment No. 1, to use for its Youthbuil
4 Project; and
5 The Agency and Participant desire to amend the Agreement t
6 enable the Agency to transfer title to the Amendment No. 1
7 Property to the Participant and allow the Participant to
8 commence rehabilitation of the Amendment No. 1 Property pursuant
9 to this Amendment No. 1 and reserve the completed Amendment No.
10 1 Property for resale to a Qualified Homebuyer; and
11 The Community Development Commission, acting as the
12 governing board of the Agency, has previously determined that
13 the implementation of the Youthbuild Program by the Participant
14 will benefit the low-and moderate-income housing needs of the
15 City, the various redevelopment project areas of the City, an
16 assist the Agency in fulfilling its goals and objectives to
17 provide affordable housing pursuant to the Community
18 Redevelopment Law. This Amendment No. 1 will further assist the
19 City and Agency in accomplishing its mutual goals .
20 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANT
21 HEREIN SET FORTH AND THE MUTUAL BENEFITS TO BE DERIVE
22 THEREFROM, THE PARTICIPANT AND THE AGENCY HERETO AGREE A
23 FOLLOWS:
24 Section 1 . The meaning of words and phrases as used in
25 this Amendment No. l shall be the same as set forth in the
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I Agreement except as the context of usage of a particular term or
2 phrase as set forth in the Recitals of this Amendment No . 1 may
3 require. The text of the Agreement (and all exhibits
4 accompanying the Agreement) is hereby incorporated into this
5 Amendment No. 1 by this reference .
6 Section 2 . The Participant and the Agency mutually
7 acknowledge and agree that as of the date of approval of this
8 Amendment No. 1 by the governing board of the Agency, no default
9 exists under the Agreement, nor is either party aware of an
10 fact, with the giving of notice and the passage of time, would
11 constitute a default under the Agreement .
12 Section 3 . The Agreement is hereby amended to add a new
13 Section 25 thereto which reads as follows :
14 "Section 25 Amendment No. 1 to the Agreement.
15 (a) Subject to the approval of Amendment No. 1 to this
16 Agreement by the governing board of the Agency, the
17 Agency hereby agrees to sell the Amendment No. 1
18 Property to the Participant and the Participant hereby
19 agrees to purchase the Amendment No. 1 Property from
20 the Agency for the sum of One Dollar ($1 . 00) plus
21 closing costs and other good and valuabl
22 consideration as set forth in this Section 25 of the
23 Agreement, as amended. A legal description of the
24 Amendment No. 1 Property is attached hereto as Exhibit
25 "D".
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1 (b) The Agency and the Participant shall accomplish the
2 transfer of the fee title interest of the Amendment
No. 1 Property from the Agency to the Participant
4 pursuant to the terms and conditions of the "HUD Unit
5 Purchase and Sale Agreement" in the form attache
6 hereto as Exhibit "E" and incorporated herein by this
7 reference. The Agency and the Participant shall have
8 each caused the HUD Unit Purchase and Sale Agreement
9 to be fully executed and delivered to the escrow
10 holder, as identified in the HUD Unit Purchase an
11 Sale Agreement, by a date not later than August 30,
12 2000 . 11
13 Section 4 . The Agreement is hereby amended to add a new
14 Section 26 thereto which reads as follows :
15 "Section 26. Improvement of the Home on the Amendment No.
16 1 Property.
17 (a) The Participant shall commence the construction an
18 improvement of a the existing Home on the Amendment
19 No. 1 Property within thirty (30) days following the
20 date of recordation of the Agency Grant Deed as
21 provided in the HUD Unit Purchase and Sale Agreement.
22 A description of the Home to be rehabilitated an
23 constructed by the Participant on the Amendment No. 1
24 Property is attached hereto as Exhibit "F" an
25 incorporated herein by this reference.
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I (b) All of the following provisions of the Agreement shall
2 also apply to the construction, improvement and resale
3 of the completed Home on the Amendment No. 1 Property
4 by the Participant:
5
6 Section 4 through Section 24 , inclusive.
7
8 In each such section of the Agreement as referenced i
9 the preceding sentence, where the words "HOME Lot" an
10 "New Home" are used in any such section, such word
11 for the purposes of Amendment No. 1 to the Agreement
12 shall refer to the Amendment No. 1 Property and the
13 Home as described in Exhibit "F" to be constructed an
14 improved on the Amendment No. 1 Property by the
15 Participant and offered for resale by the Participant
16 to a Qualified Homebuyer.
17 (c) Notwithstanding the provisions of Section 4 (b) of the
18 Agreement to the contrary, the Participant shall
19 complete the construction and improvement of the Hom
20 on the Amendment No. 1 Property by a date not late
21 than April 30, 2001 . "
22 Section 5 . Section 19 of the Agreement is hereby
23 amended to add a new subsection 19 (d) to read as follows :
24 " (d) Amendment No. 1 to this Agreement may be terminate
25 for the convenience of either party who is not then in
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• , I
I default upon sixty (60) days notice to the other part
2 at any time prior to the date on which the Agency
3 Grant Deed for the Amendment No. 1 Property is
4 recorded as provided in the HUD Unit Purchase and Sal
5 Agreement. "
6 Section 6 . The Agreement is hereby amended to add three
7 (3) additional exhibits thereto as follows :
8 "Exhibit "D" - Legal Description of the Amendment No. 1
9 Property
10 Exhibit "E" - HUD Unit Purchase and Sale Agreement
11 Exhibit "F" - HOME Property Rehabilitation Specifications
12 for the Amendment No. 1 Property"
13 Section 7 . This Amendment No. 1 shall take effect
14 following its approval by the governing board of the Agency when
9 Y
15 it has been fully executed by the authorized officers of the
16 parties .
17
18
19
20
21
22
23
24
25
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I IN WITNESS WHEREOF, the parties have caused this Amendment
2 No. 1 to the Agreement to be executed as of the day and year
3 first written above .
4 AGENCY
5 Redevelopment Agency
City of San Bernardino
6
7
8 Gary Van Osdel,
Executive Director
9
10 Approved as to Form:
11
12 Agency Counsel
13 PARTICIPANT
14 Neighborhood Housing Services
of the Inland Empire, a California
15 non-profit corporation
16
17 Dawkins K. Hodges,
Executive Director
18
19
20
21
22
23
24
25
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"EXHIBIT D"
Legal Description
LOT(S) 11 IN BLOCK 3 OF WOODS SUBDIVISION NO. 2 IN THE CITY OF SAN
BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS SHOWN
BY MAP ON FILE IN BOOK 15 PAGE(S) 95 AND 96, OF MAPS, RECORDS OF SAN
BERNARDINO COUNTY, CALIFORNIA.
ASSESSOR PARCEL NO: 0137-032-08-0-000
10
"EXHIBIT E"
HUD Unit Purchase and Sale Agreement
2000
HUD UNIT PURCHASE AND SALE AGREEMENT
Property Address:
(Neighborhood Housing Services -- Youthbuild Project)
HUD Designated Escrow Agent:
THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is
dated for identification purposes only, as of , 2000,
and is made and entered into by and between the REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and
NEIGHBORHOOD HOUSING SERVICES OF THE INLAND EMPIRE, INC. , a
California non-profit corporation (the "Participant") , with
reference to the following:
RECITALS
A. WHEREAS, the Agency and the Secretary of Housing and
Urban Development (the "Secretary") are expected to enter into that
certain Sales Contract - Property Disposition Program a copy of
which is attached hereto as Exhibit "A" (the "HUD Contract")
regarding sale by the Secretary to the Agency of that certain
property commonly known as San
Bernardino, California (the "Amendment No. 1 Property") . A legal
description of the Amendment No. 1 Property is attached hereto as
Exhibit "B"; and
B. WHEREAS, subject to the terms and conditions of that
certain HOME Program Acquisition, Construction and Resale Agreement
dated September 7, 1999, as amended (the "HOME Agreement") , by and
between the Participant and the Agency and this Agreement, Agency
desires to sell the Amendment No. 1 Property to the Participant and
the Participant desires to purchase a specific Amendment No. 1
Property from the Agency as designated by the Participant pursuant
to the HOME Agreement at the close of the "HUD Escrow" as set forth
herein.
C. As used in this Agreement, the words "escrow agent" refer
to the escrow company designated by the Secretary of HUD whose name
and address appear in the caption of this Agreement .
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NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS SET
FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS :
1 . Warranty of Authority by Participant. The Participant
warrants that it is a California non-profit corporation under the
laws of the State of California, and is authorized to execute this
Agreement and all of the documents and instruments contemplated
hereby, including, without limitation, supplemental escrow
instructions and the Acceptance of Agency Grant Deed; and that this
transaction has been approved by a resolution of its members . A
certified copy of that resolution which remains in effect, will be
delivered to Agency before the close of the HUD Escrow as set forth
herein.
2 . Designation of Amendment No 1 Property and Agreement to Sell
and to Purchase.
(a) The Participant hereby designates the Amendment No. 1
Property for purchase as authorized under Section 3 (c) of the HOME
Agreement.
(b) Subject to the terms and conditions of the HOME Agreement
and this Agreement, the Agency agrees to sell and the Participant
agrees to purchase the Amendment No. 1 Property.
3. Purchase Price.
(a) The "Purchase Price" for the Amendment No. 1 Property is
the same sum in cash or immediately available funds in United
States Currency as the discounted purchase price which the Agency
has agreed to pay the Secretary pursuant to the HUD Contract for
the Amendment No. 1 Property, the sum of such Purchase Price being
the price of One Dollar ($1 . 00) .
(b) The Purchase Price shall be payable by the Participant' s
delivery of the full amount to the escrow holder in cash or by wire
transfer of immediately available funds at least one (1) business
day before close of the HUD Escrow or by cashier' s check during
business hours at least three (3) business days before the close the
HUD Escrow.
4 . HUD Escrow Costs. In addition to the Purchase Price, the
Participant hereby agrees to pay all of the costs of the escrow
holder in the HUD Escrow including all amounts charged to the
account of the Secretary and the Agency. The escrow holder is
hereby instructed to collect such costs and charges from the
Participant at the close of the HUD Escrow.
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5. Conditions for the Benefit of the Agency. The obligation of
the Agency to perform this Agreement is subject to the satisfaction
of the following conditions, which are for the Agency' s benefit
only:
(a) if the Secretary has not heretofore executed the HUD
Contract, that the Secretary execute said HUD Contract within
fifteen (15) days after the date hereof;
(b) that the Secretary perform under the HUD Contract
and the title of the Amendment No. 1 Property actually be
transferred from HUD to the Agency within forty-five (45) days
after the date hereof;
(c) the Agency shall have received, in form and
substance satisfactory to the Executive Director, a
certificate evidencing the insurance required pursuant to
Section 16 of this Agreement;
(d) that the Participant has duly execute and deliver to
the escrow holder, in recordable form the Acceptance of the
Participant of the Agency Grant Deed and the HOME Regulatory
Agreement;
(e) that the Participant is not otherwise in default
under its other obligations to the Agency under the HOME
Agreement.
The conditions set forth above are for the Agency' s benefit
only and the Executive Director of the Agency (the "Executive
Director") may waive all or any part of such rights by written
notice to the Participant and escrow holder. If any of said
conditions are not satisfied within the time provided, or within
such longer time as may be allowed by the Executive Director, the
Agency may thereafter terminate this Agreement without any
liability on the part of the Agency by giving written notice of
termination to the escrow holder, with a copy to the Participant.
Escrow holder shall thereupon, without further consent from the
Participant, return to each party the documents, if any, deposited
by them.
6. Conditions for Participant' s Benefit. The obligation of the
Participant to perform this Agreement is subject to the
satisfaction of the following conditions, which are for the
Participant' s benefit only:
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(a) if the Secretary has not heretofore executed the HUD
Contract, that the Secretary execute said HUD Contract within
fifteen (15) days after the date hereof; and
(b) that the Secretary performs its obligations under
the HUD Contract and the Amendment No. 1 Property actually
transfers from HUD within forty-five (45) days after the date
hereof.
The conditions set forth above are for the Participant' s
benefit only and the Participant may waive all or any part of such
rights by written notice to the Agency and the escrow holder. If
any said conditions are not satisfied within the time provided, or
within such longer time as may be allowed by the Participant,
subject to the approval of the Secretary and the Agency, the
Participant may thereafter terminate this Agreement without any
liability on the part of the Participant by giving written notice
of termination to the escrow holder, with a copy to the Agency.
Escrow holder shall thereupon, without further consent from the
Agency, return to each party the documents, if any, deposited by
them.
7 . Escrow. The transfer of the Amendment No. 1 Property to the
Participant shall be consummated through an escrow established with
the escrow agent engaged by the Secretary to handle the transfer of
the Amendment No. 1 Property to the Agency under the HUD Contract.
Such escrow shall be opened on a schedule coordinated with the
closing or the transfer of the Amendment No. 1 Property between the
Secretary and the Agency under the HUD Contract. This Agreement
shall constitute the escrow instructions to the escrow holder of
the Participant and the Agency with respect to the Amendment No. 1
Property. The Agency and the Participant agree to execute such
additional and ministerial escrow instructions as may be reasonably
required by the escrow holder.
8 . Term of Escrow. Escrow shall close concurrently with the
close of escrow under the HUD Contract . "Opening Escrow" shall
mean the date upon which a fully executed copy of this Agreement is
delivered to the escrow holder. "Close of Escrow" shall mean the
date upon which the grant deed from the Agency to Buyer is recorded
in the Office of the County Recorder of the County of San
Bernardino, California.
9. Condition of Title. The Agency shall convey to the
Participant by grant deed all of the right, title and interest in
the Amendment No. 1 Property which the Agency receives from the
Secretary under the HUD Contract . The form of the Agency Grant
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Deed is attached hereto as Exhibit "C" and incorporated herein by
this reference .
10. Title Insurance. The Agency shall not be responsible for
providing any title insurance to the Participant in connection with
the transfer of title in the Amendment No. 1 Property to the
Participant. Any title insurance desired by the Participant shall
be ordered and paid for by the Participant at its sole cost and
expense.
11. Prorations . All assessments, including improvement
assessments which are available for payment without interest or
penalty for advance payment, taxes, rent, and ground rent, if any,
shall be prorated as of the Close of Escrow. In as much as this
escrow will close concurrently with the escrow under the HUD
Contract, through which escrow such items will be prorated between
the Secretary and the Agency, the parties acknowledge and agree
that the Participant shall be charged for such prorations in
precisely the same amount as the Agency is charged under the HUD
Contract.
12. Escrow Closing Costs. The Participant shall pay all escrow
closing costs of both parties, including, without limitation, all
escrow and recording fees and transfer taxes . Additionally, the
Participant shall pay all closing costs and expenses charged to the
Agency in the escrow by which HUD transfers the Amendment No. 1
Property to the Participant .
13. Closing. Within forty five (45) days following the date of
this Agreement or such earlier date as the Secretary may demand
under the HUD Contract, the Participant shall cause the full amount
of the Purchase Price, plus the escrow costs and related charges of
the escrow holder, to be delivered to the escrow holder in
available funds . At the Close of Escrow, (a) the Agency shall
deliver to the Participant through escrow a the Agency Grant Deed
conveying the Amendment No. 1 Property to the Participant, (b) the
Participant shall deliver to the Agency through escrow the
acceptance of the Agency Grant Deed and (c) the escrow holder shall
collect and pay the sums indicated for the transfer of the
Amendment No. 1 Property under the HUD Contract and this Agreement
and deliver such other documents to the parties in accordance with
the instructions of each of them.
At the Close of Escrow, the escrow holder shall cause the
Agency Grant Deed to be recorded in the Official Records of the
County of San Bernardino, California, and the escrow holder shall
provide the Agency with a copy of both the buyer' s and the seller' s
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escrow settlement statement with respect to the Amendment No. 1
Property.
14 . Condition of the Amendment No. 1 Property. The Agency makes
no representation or warranty to the Participant or to any third
party concerning the condition of the Amendment No. 1 Property,
including, without limitation, mechanical systems, dry basement,
foundation, structural, or compliance with code, zoning or building
requirements and the Agency will make no repairs to the Amendment
No. 1 Property either before or after execution of this Agreement .
The Participant understands that the Agency does not guarantee or
warrant that the Amendment No. 1 Property is free of visible or
hidden structural defect, termite damage, lead-based paint, or any
other condition that may render the Amendment No. 1 Property
uninhabitable or otherwise usable. Participant acknowledges
responsibility for taking such action and conducting such
investigation of the condition of the Amendment No. 1 Property as
it believes necessary to satisfy itself that the Amendment No. 1
Property is in a condition acceptable to it and the Participant
agrees to accept the Amendment No. 1 Property in the same condition
delivered to the Agency by the Secretary, in an "AS IS, " "WHERE IS"
and "SUBJECT TO ALL FAULTS" condition.
15. Possession: Repairs. The Participant may not perform repairs
nor take possession of the Amendment No. 1 Property until the HUD
Escrow is Closed. At the close of the HUD Escrow, the Participant
shall take possession of the Amendment No. 1 Property and promptly
commence the work of rehabilitation as required for the Amendment
No. 1 Property under the HOME Agreement.
16. Insurance. Prior to the Close of Escrow, the Participant
shall obtain and shall thereafter maintain in full force and effect
at all times a broad-form comprehensive general liability policy
with a limit of not less than $1, 000, 000 . 00 . Such insurance shall
provide for a 30-day notice to the Agency before cancellation of
the policy and shall name the Agency as an additional insured as to
claims arising out of the work to be performed on the Amendment No.
1 Property following the Close of Escrow pursuant to the HOME
Agreement.
17 . No Assignment. The Participant and the Agency each agree that
this Agreement shall be binding upon their respective, heirs,
executors, administrators, successors or assigns and is not
assignable by the Participant .
18 . Notices. All notices, demands and requests which may be given
by either party to the other or to the escrow holder shall be in
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writing and shall be deemed to be given upon personal delivery or
forty-eight (48 ) hours after deposit in the United States mail,
certified, return receipt requested, postage prepaid, addressed to
the party to be notified at the address following the party' s
signature or if addressed to the escrow holder, at the address set
forth in the supplemental escrow instruments signed by the parties .
Either party may designate by written notice to the other party in
the manner set forth in this Agreement another address for notice .
19 . Miscellaneous Provisions .
19 . 1 Waiver. The waiver of any provisions of this Agreement
shall be invalid unless evidenced by a writing signed by the party
to be charged therewith. The waiver of, or failure to enforce, any
provision of this Agreement shall not be a waiver of any further
breach of such provision hereof. The waiver by either or both
parties of the time for performing an act shall not be a waiver of
the time for performing any other act or acts required hereunder.
19 . 2 Modifications. No change or addition to this Agreement
or any part hereof shall be valid unless in writing and signed by
each of the parties .
19 . 3 Governing Law. This Agreement shall be governed by
California law.
19 . 4 Headings. The headings in this Agreement are for
convenience only and shall not be used to interpret this Agreement.
19 . 5 Further Acts . Each party agrees to take such further
action and to execute and deliver such further documents as may be
necessary to carry out the purposes of the HOME Agreement with
respect to the Amendment No. 1 Property and this Agreement .
19. 6 Attorneys ' Fees. If either party incurs attorneys ' fees
to enforce this Agreement or because of a breach of this Agreement
by the other party, the prevailing party shall be entitled to
recover reasonable attorneys ' fees as set by the court from the
other party.
19. 7 No Real Estate Brokers Commission Payable By the Agency.
The Agency shall not be responsible for the payment of any real
estate brokers commission or finders fee in connection with the
escrow or the transfer of the Amendment No. 1 Property to the
Participant.
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' a
19 . 8 Time. Time is of the essence with respect to this
Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first above written.
I
AGENCY
I
Redevelopment Agency of the City
of San Bernardino
Date: By:
Executive Director
PARTICIPANT
Neighborhood Housing Service of The
Inland Empire, Inc. , a California
non-profit corporation
By:
Its :
By:
Its :
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"EXHIBIT C"
Grant Deed of Public Agency
And
Community Redevelopment
Affordable Single Family Residential Housing
Development, Use and Occupancy Conditions,
Covenant and Restrictions
RECORDING REQUESTED BY )
Redevelopment Agency of the )
City of San Bernardino )
AND WHEN RECORDED MAIL )
PROPERTY TAX BILL TO: )
I )
(Space above line reserved for use by Recorder)
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
GRANT DEED OF A PUBLIC AGENCY
AND
COMMUNITY REDEVELOPMENT
AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING
DEVELOPMENT, USE AND OCCUPANCY CONDITIONS,
COVENANT AND RESTRICTIONS
(Neighborhood Housing Services of the Inland Empire, Inc. )
THIS GRANT DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT
AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND
OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS (the "Agency Grant
Deed") transfers all of the right, title and interest of the
Redevelopment Agency of the City of San Bernardino, a body
corporate and politic (the "Agency") in certain real property
situated at r San Bernardino, California (the
"Property") to Neighborhood Housing Services of the Inland Empire,
Inc. , a California non-profit corporation, (the "Participant") ,
subject to the HOME Program (Title 24 Code of Federal Regulations
Part 92 et sea. ) and community redevelopment affordable single
family housing conditions, covenants and restrictions contained in
PART B hereof. The Agency is the grantor in this Grant Deed and
the Participant is the grantee.
For valuable consideration, the receipt of which is hereby
acknowledged, the Agency hereby grants to the Participant, subject
to the HOME Program and community redevelopment affordable single
family housing conditions, covenants and restrictions of this
Agency Grant Deed, all of the right, title and interest of the
Agency in the Property, as more particularly described below:
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(-- The Property--)
, on file in the
Official Records of the Office of the Recorder
of San Bernardino County.
PART B
The grant of the Property by the Agency to the Participant is
expressly subject to the satisfaction of the following HOME Program
and community redevelopment affordable single family housing
conditions, covenants and restrictions as arise under that certain
HOME Program Acquisition, Construction, and Resale Agreement, dated
as of September 7, 1999, as amended (the "HOME Agreement") by and
between the Agency and the Participant:
1 . the Property shall be reserved for use, improvement and
occupancy for single family residential purposes for a
term of thirty (30) years commencing on the date of
recordation of this Grant Deed; and
2 . the Property shall be used, reserved, sold, transferred,
granted, conveyed or otherwise hypothecated and occupied
only by a person or a family who is a "Qualified
Homebuyer" for a term of the shorter period of either:
(i) twenty-five (25) years from the date of recordation
of this Grant Deed; or (ii) ten (10) years, as provided
in the HOME Covenant, upon its recordation as described
in subparagraph 3, below. The words "Qualified
Homebuyer" refer to any person or family who owns and
occupies (or who declares their intention to own and
occupy) the Property as their principal residence and who
also satisfy the requirement of being a "first-time
homebuyer, " as defined at 24 Code of Federal Regulations
Part 92, and whose annual income during the twelve (12)
months preceding the date of initial occupancy of the
Property by the Qualified Homebuyer does not exceed the
income qualification limits for "lower income
households", as defined at 24 Code of Federal Regulations
Part 92 .
In general, the words "lower income
households" refer to persons and families
whose income does not exceed the
qualifying limits for lower income
families as established and amended from
time to time pursuant to Section 8 of the
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United States Housing Act of 1937 at 80
percent of area median income, adjusted
for family size and revised annually.
3 . As a condition precedent to any transfer, sale,
conveyance, grant or other hypothecation by the
Participant of the Property to a Qualified Homebuyer an
instrument entitled "HOME Program Regulatory,
Affordability, Use and Occupancy Covenant" (the "HOME
Covenant") , by and among the Participant, the Qualified
Homeowner and the Agency in substantially the form
attached hereto as Exhibit "A", shall be fully executed
by the parties in recordable form by the Participant, the
Qualified Homebuyer and the Agency and filed for
recordation as an official record of the Recorder of San
Bernardino County. The form of the HOME Covenant shall
be consistent with the terms and conditions of the HOME
Agreement as applicable to the Qualified Homebuyer at the
time of initial occupancy of the Property by a Qualified
Homebuyer.
4 . Prior to the recordation of the HOME Covenant as provided
in subparagraph 3 above of this Agency Grant Deed, the
Property shall not be improved and offered for sale or
sold except to a Qualified Homebuyer for a sale price
which does not exceed a sum as calculated for the
Property, as set forth at 24 CFR Part 92 . 254 (a) (2) (iii) ,
exclusive of customary and reasonable "escrow" and sales
transactional costs which may be normally allocated to a
Qualified Homebuyer by an owner-builder of a single
family dwelling unit offered for sale to persons and
families of lower income . The provisions of this
subparagraph 4 of the Agency Grant Deed shall have no
further force or effect upon the Property after the date
of the complete execution and recordation of the HOME
Covenant .
5. The Property shall be subject to the following HOME
Program affordable housing and redevelopment covenant in
perpetuity and the text which appears in this Agency
Grant Deed shall be incorporated into the text of each
grant deed or other instrument which transfers the
Property to a successor in interest of the Participant
and each Qualified Homebuyer:
"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
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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, 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 any vendee in the land herein conveyed.
The foregoing covenants shall run with the
land. "
PART C
During the term of subparagraph 2 of PART B of this Agency Grant
Deed, but prior to the recordation of a fully-executed copy of the
HOME Covenant, the Agency hereby authorizes the Participant to
conduct land improvement and new home sales and ancillary business
activity on the Property associated with the improvement and sale
of the Property to a Qualified Homebuyer by the Participant,
pursuant to the HOME Agreement . The provisions of this PART C of
this Agency Grant Deed shall have no further force or effect upon
the Property after the date of the execution and recordation of the
HOME Covenant .
PART D
The provisions of this Agency Grant Deed are expressly declared by
the Agency to promote and increase, improvement and preservation of
the community' s supply of low- and moderate-income housing. The
transfer of the Property by the Agency to the Participant for this
purpose and the recordation of this Agency Deed is required by the
provisions of 24 Code of Federal Regulations Part 92, and is also
authorized by Health and Safety Code Sections 33334 .2 and 33334 . 3,
and other applicable law and actions of the Agency.
PART E
Upon the delivery of this Agency Grant Deed to the Participant, the
HOME Program and the community redevelopment affordable housing
conditions, covenants and restrictions as contained herein shall be
covenants and restrictions which affect the Property and shall run
with the land and shall be enforceable by: (i) the Agency as HOME
Program regulatory covenants under 24 CFR Part 92, gI _seer. , or
alternatively, (ii) enforceable by either the Agency or by the City
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of San Bernardino, a municipal corporation, as community
redevelopment affordable housing conditions, covenants and
restrictions against the Participant and each successor in interest
or assignee of the Participant in the Property, including, without
limitation, any Qualified Homebuyer as provided in Health and
Safety Code Section 33334 . 3 (f) (2) . No person other than the City
of San Bernardino or the Agency shall be deemed to be authorized to
enforce any provision of this Agency Grant Deed as a covenant or
restriction which runs with the land and affects the Property.
THIS AGENCY GRANT DEED is executed as of the date indicated below
next to the authorized signature of the Executive Director of the
Agency.
AGENCY
Redevelopment Agency of the City
of San Bernardino, a body
corporate and politic
Dated: By:
Executive Director
Approved As To Form:
Agency Counsel
[NOTARY JURAT ATTACHED]
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ACCEPTANCE OF AGENCY GRANT DEED AND COMMUNITY
REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL
HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS,
COVENANTS AND RESTRICTIONS
BY THE PARTICIPANT
The undersigned officer of Neighborhood Housing Services of the
Inland Empire, Inc. , a California non-profit corporation (the
"Participant") , hereby accepts the delivery of the instrument
identified above as the "Grant Deed of a Public Agency and
Community Redevelopment Affordable Single Family Residential
Housing Development, Use and Occupancy Conditions, Covenants and
Restrictions" (the "Agency Grant Deed") , and the transfer of the
Property from the Redevelopment Agency of the City of San
Bernardino, subject to the conditions, covenants and restrictions
contained in the Agency Grant Deed.
The Participant hereby acknowledges and agrees that it accepts the
Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS"
condition and that the Participant is solely responsible for
causing the Property to be improved as set forth in the HOME
Agreement by and between the Agency and the Participant.
The Participant hereby further accepts and agrees to each of the
community redevelopment affordable single family residential
housing use, improvement and occupancy conditions, covenants and
restrictions contained in the Agency Grant Deed touch and concern
the Property and are HOME Program and community redevelopment
covenants which run with the land.
PARTICIPANT
Neighborhood Housing Services of
the Inland Empire, Inc. ; a
California non-profit
corporation
Date: By
Its : Executive Director
[NOTARY JURAT ATTACHED]
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GENERAL FORM OF ACQUISITION, REHABILITATION, RESALE,
AFFORDABILITY, USE AND OCCUPANCY COVENANT
THIS DOCUMENT IS PRESENTED IN GENERAL FORM. The final form of this
ACQUISITION, REHABILITATION, RESALE, AFFORDABILITY, USE AND
OCCUPANCY Covenant shall be completed and executed by the
Participant, the "Qualified Homebuyer" and the Agency at the time
of close of the "New Home Escrow", as each of these items are
defined in this ACQUISITION, REHABILITATION, RESALE, AFFORDABILITY,
USE AND OCCUPANCY Covenant.
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Attn: Executive Director
(Space Above Line Reserved For Use By
Recorder)
(Exempt from Recording Fees Per Govt.
Code Sec. 6103)
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
ACQUISITION, REHABILITATION, RESALE,
AFFORDABILITY, USE AND OCCUPANCY COVENANT
THIS ACQUISITION, REHABILITATION, RESALE, AFFORDABILITY, USE
AND OCCUPANCY COVENANT, (the "HOME Covenant") is made and entered
into as of , 200_ by and among the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body
corporate and politic (the "Agency") ,
(the "Qualified Homebuyer") and the
Neighborhood Housing Services of the Inland Empire, Inc. , a
California non-profit corporation, (the "Participant") , and this
HOME Covenant relates to the following facts set forth in Recitals :
-- R E C I T A L S
A. The Qualified Homebuyer proposes to acquire the Property
locate at San Bernardino, California (the
"Property") , from the Participant. A legal description of the
Property is attached hereto as Exhibit "A" and incorporated herein
by this reference .
B. The Property has been improved and rehabilitated by the
Participant with the "New Home" which shall be owned and occupied
by the Qualified Homebuyer as their principal residence .
C. The Agency has transferred the Property to the
Participant for the purposes as set forth under that certain
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M
Acquisition, Rehabilitation Resale Agreement dated September 7,
1999, as amended (the "HOME Agreement") in order to make the
Property available for acquisition by the Qualified Homebuyer,
subject to the terms and conditions of this HOME Covenant;
D. The terms of the HOME Agreement mandate that the
acquisition, use and occupancy of the Property shall be restricted
in certain respects for the term as provided herein (the "Qualified
Residence Period") in order to ensure that the Property will be
used and occupied in accordance with the HOME Agreement and the
affordable single family residential dwelling unit development
goals and objectives of the Agency.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY
ACKNOWLEDGED, THE PARTICIPANT, THE QUALIFIED HOMEBUYER AND THE
AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR
SUCCESSORS AND ASSIGNS AS FOLLOWS:
Section 1. Definitions of Certain Terms. As used in this
HOME Covenant, certain words and terms shall have the meaning as
provided in the Recitals or in this Section 1 unless the specific
context of usage of a particular word or term may otherwise
require:
Adjusted Family Income. The words "Adjusted Family Income"
mean the anticipated total annual income (adjusted for family
size) of each individual or family residing on the Property.
The adjusted Family Income figure for the Qualified Homebuyer
shall be calculated in accordance with Treasury Regulation
1 . 167 (k) - 3 (b) (3) under the Code, as adjusted, based upon
family size in accordance with the household income adjustment
factors adjusted and amended from time to time, pursuant to
Section 8 of the United States Housing Act of 1937, as
amended.
Affordable Housing Cost. The words "Affordable Housing Cost"
shall have the meaning as set forth in Health and Safety Code
Section 50052 . 5 . At the time of the close of the New Home
Escrow, or later when a proposed Successor-In-Interest
acquires the Property, the amount of the maximum Affordable
Housing Cost payable by the Qualified Homebuyer in connection
with the acquisition of the Property at any time during the
Qualified Residence period shall be calculated as set forth in
Health and Safety Code Section 50053 . 5 (b) (1) , (2) , as
applicable.
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Agency Grant Deed. The words "Agency Grant Deed" mean and
refer to Recorded Instrument No. , Official Records
of the Recorder of the County of San Bernardino.
Code. The word "Code" means the Internal Revenue Code of
1985, as amended, and any regulation, rulings or procedures
with respect thereto.
Delivery Date. The words "Delivery Date" mean the date of
delivery of title and possession of the Property to the
Qualified Homebuyer at the close of the New Home Escrow.
HOME Covenant. The words "HOME Covenant" mean these
Redevelopment Agency of the City of San Bernardino
ACQUISITION, REHABILITATION, RESALE, AFFORDABILITY, USE AND
OCCUPANCY Covenant by and between the Participant, Qualified
Homebuyer and the Agency pertaining to the Property.
Low-Income Family. The words "Low-Income Family" means
persons and families whose annual income do not exceed 80
percent of the median income for the area, as determined by
the United States Secretary for the Department of Housing and
Urban Development with adjustments for smaller and larger
families . (See: regulations at 24 Code of Federal Regulations
Part 92 .2)
New Some Escrow. The words "New Home Escrow" mean and refer
to the real estate conveyance transaction or escrow by and
between the Qualified Homebuyer and the Participant (or later,
by and between the Qualified Homebuyer and the Successor-In-
Interest) . The transfer of the Property from the Participant
to the Qualified Homebuyer (or later, the transfer of the
Property by the Qualified Homebuyer to a Successor-In-
Interest) shall be accomplished upon the close of the New Home
Escrow.
Notice of Agency Concurrence. The words "Notice of Agency
Concurrence" mean and refer to the acknowledgment in
recordable form in which the Agency confirms that the proposed
Successor-In-Interest of the Qualified Homebuyer satisfies all
of the requirements of this HOME Covenant for ownership of
the Property by the Successor-In-Interest at any time during
the Qualified Residence Period.
Property. The word "Property" means and refers to the land,
the new home improvements and landscape improvements thereon
SBEO/0001/DOC/4120
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acquired by the Qualified Homebuyer from the Participant at
.r••, the close of the New Home Escrow.
Qualified Homebuyer. The words "Qualified Homebuyer" mean the
purchaser of the Property (e.g. : all persons identified as
having property ownership interest vested in the Property at
the close of the New Home Escrow) . At the close of the New
Home Escrow, the Qualified Homebuyer shall: (i) have an annual
Adjusted Family Income which does not exceed the household
income qualification limits of a Low-Income Family and (ii)
shall be a first-time homebuyer, as provided at 24 CFR Part
92 .254 (a) (3) .
Qualified Residence Period. The words "Qualified Residence
Period" mean the period of time beginning on the Delivery Date
and ending on the date which is ten (10) years after the
Delivery Date .
Successor-In-Interest. The words "Successor-In-Interest"
means and refers to the Low-Income Family which may acquire
the Property from the Qualified Homebuyer at any time during
the Qualified Residence Period by purchase, assignment
transfer or otherwise . The Successor-In-Interest shall be a
Low-Income Family, shall pay no more than an Affordable
Housing Cost for any purchase money financing associated with
its acquisition of the Property, and shall otherwise satisfy
the requirements of 24 Code of Federal Regulations Part
92 .254 (a) . Upon acquisition of the Property, the Successor-In-
Interest shall be bound by each of the covenants, conditions
and restrictions of the Agency Grant Deed and this HOME
Covenant .
The titles and headings of the sections of this HOME Covenant have
been inserted for convenience of reference only and are not to be
considered a part hereof and shall not in any way modify or
restrict the meaning any of the terms or provisions hereof.
Section 2. Acknowledgments and Representations of the
Qualified Homebuyer.
The Qualified Homebuyer hereby acknowledges and represents
that, as of the Delivery Date :
(a) the annual Adjusted Family Income of the Qualified
Homebuyer does not exceed 80% area median income of the City
adjusted for family size for a Low-Income Family;
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(b) the Qualified Homebuyer intends promptly to occupy the
L Property after the Delivery Date as the Qualified Homebuyer' s
principal place of residence for a term of at least ten (10) years
following the Delivery Date and the Qualified Homebuyer has not
entered into any arrangement and has no present intention to rent,
sell, transfer or assign the Property to any third party during the
Qualified Residence Period so as to frustrate the purpose of this
HOME Covenant;
(c) the Qualified Homebuyer has no present intention to
sublet or rent any portion of the Property to any relative of the
Qualified Homebuyer or to any third person at any time during the
Qualified Residence Period;
(d) the Qualified Homebuyer agrees to provide the Agency with
the following items of information for inspection by the Agency
promptly upon written request of the Agency:
(i) State and federal income tax returns filed by all
persons who reside in the New Home for the calendar
year preceding the close of the New Home Escrow for
inspection of such State and federal income tax
returns;
(ii) current wage, income and salary statements for all
persons residing in the New Home at the close of
the New Home Escrow;
(e) the Qualified Homebuyer is aware and has been informed by
the Participant prior to the Delivery Date that this HOME Covenant
imposes certain restrictions on the use and occupancy of the
Property during the term of this HOME Covenant and that this HOME
Covenant imposes certain restrictions on the resale of the Property
during the Qualified Residence Period. The Qualified Homebuyer
acknowledges and understands that the restrictions shall be
applicable to the both the Property and to any resale of the
Property from the Delivery Date to the end of the Qualified
Residence Period which is 20—.
Dated:
Initials of
Qualified Homebuyer
Dated:
Initials of
Participant
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Section 3. Acknowled=ent of Subordination of the
Provisions of Section 4 of this HOME Covenant to the Mortgage
Security Interest of the First Mortgage Lender.
Concurrently upon the execution and recordation of this HOME
Covenant the Qualified Homebuyer shall obtain certain purchase
money mortgage financing for the acquisition of the Property from
(the "First Mortgage Lender") . As
of the Delivery Date, the Qualified Homebuyer has provided the
Agency with a true and correct copy of the loan agreement by and
between the First Mortgage Lender and the Qualified Homebuyer.
As a condition to providing its mortgage loan to the
Qualified Homebuyer, the First Mortgage Lender requires the Agency
to agree that the provisions of Section 4 of this HOME Covenant
shall be junior and subordinate to the security interest of the
First Mortgage Lender in the Property of even date herewith.
The Agency hereby acknowledges and agrees that the provisions
of Section 4 of this HOME Covenant are subordinate and junior to
the security interest of the First Mortgage Lender in the Property
of even date herewith. No breach or default by the Qualified
Homebuyer of any provision of Section 4 of this HOME Covenant, nor
the exercise by the Agency of any remedy it may have against the
Qualified Homebuyer in the event of such a breach or default shall
affect or render invalid the lien of the First Mortgage Lender in
the Property. Thus, the First Mortgage Lender and any good faith
purchaser for value from the First Mortgage Lender, its successors
and assigns, including without limitation the United States
Secretary of Housing and Urban Development, if such mortgage has
been assigned to the Secretary of Housing and Urban Development,
receiving title to the Property through a trustee ' s sale, judicial
foreclosure sale, deed in lieu of foreclosure and any conveyance or
transfer thereafter, shall receive title to the Property free and
clear of the provisions of Section 4 of this HOME Covenant.
Section 4 . Covenant of the Qualified Homebuyer to Maintain
Affordability of the Property During the Qualified Residence Period
and Covenant Relating to Sale or Transfer of the Property During
the Oualified Residence Period to a Successor-In-Interest.
(a) The Qualified Homebuyer for itself, its heirs, successors
and assigns, hereby covenants and agrees that during the term of
the Qualified Residence Period the Property shall be used and
occupied by the Qualified Homebuyer as the Qualified Homebuyer' s
principal residence .
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(b) The Qualified Homebuyer, for itself, its heirs,
successors and assigns, hereby covenants and agrees that, during
the Qualified Residence Period, the Agency shall have the right and
duty to verify that each proposed Successor-In-Interest of the
Qualified Homebuyer in the Property has Adjusted Family Income, of
a Low-Income Family and that the amount payable by the Successor-
In-Interest for the proposed transfer of the Property under the
terms of any purchase money financing does not exceed an Affordable
Housing Cost, and that the completion of any resale or transfer of
the Property to a Successor-In-Interest shall be subject to the
recordation of the "Notice of Agency Concurrence" as provided in
Section 4 (d) .
(c) The Qualified Homebuyer, for itself, its successors and
assigns, hereby covenants and agrees that during the term of the
Qualified Residence Period the Qualified Homebuyer shall not sell,
transfer or otherwise dispose of the Property (or any interest
therein) at a sale or transfer price which exceeds 95 percent of
the median purchase price for the area as provided in 24 CFR Part
92 .25 (a) (2) (iii) , to a Successor-In-Interest without first giving
written notice to the Agency and without first obtaining the
written concurrence of the Agency as provided herein. At least
sixty (60) days prior to the date on which the Qualified Homebuyer
proposes to transfer title in the Property to a Successor-In-
Interest, the Qualified Homebuyer shall send a written notice to
k the Agency as provided in Section 19 of the intention of the
Qualified Homebuyer to sell the Property to a Successor-In-Interest
which includes the following true and correct information:
(i) name of the proposed Successor-In-Interest
(including the identity of all persons in the
household of the Successor-In-Interest proposing to
reside in the New Home) ;
(ii) copies of State and federal income tax returns for
the Successor-In-Interest for the calendar year
preceding the year in which the notice of intention
to sell the Property is given to the Agency;
(iii) resale price of the Property payable by the
Successor-In-Interest, including the terms of all
purchase money mortgage financing to be assumed,
provided or obtained by the Successor-In-Interest,
escrow costs and charges, realtor broker fees and
all other resale costs or charges payable by either
the Qualified Homebuyer or the . Successor-In-
Interest;
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(iv) name address, and telephone number of the escrow
company which shall coordinate the transfer of the
Property from the Qualified Homebuyer to the
Successor-In-Interest;
(v) appropriate mortgage credit reference for the
Successor-In-Interest with a written authorization
signed by the Successor-In-Interest authorizing the
Agency to contact each such reference; and
(vi) such other relevant information as the Agency may
reasonably request, as provided in Section 4 (d) .
(d) Within thirty (30) days following receipt of the notice
of intention described in Section 4 (c) , the Agency shall provide
the Qualified Homebuyer with either a preliminary confirmation of
approval or a preliminary rejection in writing of the income and
household occupancy qualifications of the Successor-In-Interest.
The Agency shall not unreasonably withhold approval of any proposed
sale of the Property to a Successor-In-Interest who satisfies the
Adjusted Family Income requirements and for whom the other
information as described in Section 4 (c) has been provided to the
Agency. In the event that the Agency may request additional
information relating to the confirmation of the matters described
in Section 4 (c) , the Qualified Homebuyer shall provide such
information to the Agency as promptly as feasible.
(e) Upon its final confirmation of approval of the Adjusted
Family Income eligibility of the Successor-In-Interest to acquire
the Property, the Agency shall deliver a written acknowledgment and
approval of the resale of the Property to the Successor-In-Interest
in recordable form to the escrow holder referenced in Section
4 (d) (iv) above, and thereafter the Successor-In-Interest may
acquire the Property subject to the satisfaction of the following
conditions :
(i) the recordation of the Notice of Agency Concurrence
executed by the Successor-In-Interest and the
Agency at the close of the resale escrow;
(ii) the escrow holder shall have provided the Agency
with a copy of the customary form of the final
escrow closing statement of the Qualified Homebuyer
and the final escrow closing statement for the
Successor-In-Interest; and
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(iii) the other conditions of the resale escrow as
established by the Qualified Homebuyer and
I
Successor-In-Interest shall have been satisfied.
(f) The Qualified Homebuyer for itself, its successors and
assigns hereby covenants and agrees that during the Qualified
Residence Period the New Home shall not be leased, subleased, or
rented to any third person, except for a temporary period (not to
exceed one hundred and eighty (180) days) in the event of an
emergency or other unforseen circumstance as may be expressly
approved in writing by the Agency subject to compliance during the
temporary rental period with the reasonable temporary rental
occupancy conditions required by the Agency. The Qualified
Homebuyer shall submit a written request to the Agency prior to the
commencement of the temporary occupancy, as practicable, but in any
event within not more than sixty (60) days following the
commencement of a temporary rental occupancy of the New Home by a
third party, which notice shall set forth the grounds on which the
Qualified Homebuyer believes an emergency or other unforeseen
circumstance has occurred and that a temporary rental occupancy is
necessary.
Section 5. [RESERVED -- NO TEXT1 .
Section 6. [RESERVED -- NO TEXT1 .
I
Section 7 . Maintenance Condition of the Property. The
Qualified Homebuyer, for itself, its successors and assigns, hereby
covenants and agrees that :
(a) The exterior areas of the Property which are subject to
public view (e.g. : all improvements, paving, walkways, landscaping,
and ornamentation) shall be maintained in good repair and a neat,
clean and orderly condition, ordinary wear and tear excepted. In
the event that at any time during the term of the Qualified
Residence Period, there is an occurrence of an adverse condition on
any area of the Property which is subject to public view in
contravention of the general maintenance standard described above,
(a "Maintenance Deficiency") then the Agency shall notify the
Qualified Homebuyer in writing of the Maintenance Deficiency and
give the Qualified Homebuyer thirty (30) days from the date of such
notice to cure the Maintenance Deficiency as identified in the
notice. The words "Maintenance Deficiency" include without
limitation the following inadequate or non-confirming property
maintenance conditions and/or breaches of residential property use
restrictions :
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failure to properly maintain the windows, structural
elements, and painted exterior surface areas of the
- dwelling unit in a clean and presentable manner;
failure to keep the front and side yard areas of the
property free of accumulated debris, appliances,
inoperable motor vehicles or motor vehicle parts, or free
of storage of lumber, building materials or equipment not
regularly in use on the property;
failure to regularly mow lawn areas or permit grasses
planted in lawn areas to exceed nine inches (9") in
height, or failure to otherwise maintain the landscaping
in a reasonable condition free of wed and debris;
parking of any commercial motor vehicle in excess of
7, 000 pounds gross weight anywhere on the property, or
the parking of motor vehicles, boats, camper shells,
trailers, recreational vehicles and the like in any side
yard or on any other parts of the property which are not
covered by a paved and impermeable surface;
the use of the garage area of the dwelling unit for
purposes other than the parking of motor vehicles and the
storage of personal possessions and mechanical equipment
of persons residing in the Property.
In the event the Qualified Homebuyer fails to cure or commence
to cure the Maintenance Deficiency within the time allowed, the
Agency may thereafter conduct a public hearing following
transmittal of written notice thereof to the Qualified Homebuyer
ten (10) days prior to the scheduled date of such public hearing in
order to verify whether a Maintenance Deficiency exists and whether
the Qualified Homebuyer has failed to comply with the provision of
this Section 7 (a) . If, upon the conclusion of a public hearing,
the Agency makes a finding that a Maintenance Deficiency exists and
that there appears to be non-compliance with the general
maintenance standard, as described above, thereafter the Agency
shall have the right to enter the Property (exterior areas only)
and perform all acts necessary to cure the Maintenance Deficiency,
or to take other action at law or equity the Agency may then have
to accomplish the abatement of the Maintenance Deficiency. Any sum
expended by the Agency for the abatement of a Maintenance
Deficiency as authorized by this Section 7 (a) shall become a lien
on the Property. If the amount of the lien is not paid within
thirty (30) days after written demand for payment by the Agency to
the Qualified Homebuyer, the Agency shall have the right to enforce
the lien in the manner as provided in Section 7 (c) .
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(b) Graffiti which is visible from any public right-of-way
which is adjacent or contiguous to the Property shall be removed by
the Qualified Homebuyer from any exterior surface of a structure or
improvement on the Property by either painting over the evidence of
such vandalism with a paint which has been color-matched to the
surface on which the paint is applied, or graffiti may be removed
with solvents, detergents or water as appropriate. In the event
that graffiti is placed on the Property (exterior areas only) and
such graffiti is visible from an adjacent or contiguous public
right-of-way and thereafter such graffiti is not removed within 72
hours following the time of its application; then in such event and
without notice to the Qualified Homebuyer, the Agency shall have
the right to enter the Property and remove the graffiti .
Notwithstanding any provision of Section 7 (a) to the contrary, any
sum expended by the Agency for the removal of graffiti from the
Property as authorized by this Section 7 (b) shall become a lien on
the Property. If the amount of the lien is not paid within thirty
(30) days after written demand for payment by the Agency to the
Qualified Homebuyer, the Agency shall have the right to enforce its
lien in the manner as provided in Section 7 (c) .
(c) The parties hereto further mutually understand and agree
that the rights conferred upon the Agency under this Section 7
expressly include the power to establish and enforce a lien or
other encumbrance against the Property in the manner provided under
Civil Code Sections 2924 , 2924b and 2924c in the amount as
reasonably necessary to restore the Property to the maintenance
standard required under Section 7 (a) or Section 7 (b) , including
attorneys fees and costs of the Agency associated with the
abatement of the Maintenance Deficiency or removal of graffiti and
the collection of the costs of the Agency in connection with such
action. In any legal proceeding for enforcing such a lien against
the Property, the prevailing path shall be entitled to recover its
attorneys ' fees and costs of suit . The provisions of this Section
7 shall be a covenant running with the land for the Qualified
Residence Period and shall be enforceable by the Agency in its
discretion, cumulative with any other rights or powers granted by
the Agency under applicable law. Nothing in the foregoing
provisions of this Section 7 shall be deemed to preclude the
Qualified Homebuyer from making any alterations, additions, or
other changes to any structure or improvement or landscaping on the
Property, provided that such changes comply with the zoning and
development regulations of the City and other applicable law.
Section S. [RESERVED -- NO TEXTI .
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Section 9. Foreclosure of Purchase Money Mortgage Loan of
the First Mortgage Lender and Acencv Right of First Refusal.
(a) During the Qualified Residence Period the Agency shall
have the right (but not the obligation) to bid on the purchase of
the mortgage loan lien of the First Mortgage Lender secured by the
Property at the time of any trustee foreclosure sale or any
judicial foreclosure sale .
(b) During the Qualified Residence Period the Agency shall
have the right of first refusal to purchase the Property from the
Qualified Homebuyer on the same terms which the Qualified Homebuyer
may propose to offer the Property for resale to a Successor-In-
Interest. The Agency must exercise such a right of first refusal
within thirty (30) days following written notification of the
intention of the Qualified Homebuyer to resell the Property, and if
the Agency accepts the offer in writing within such time period the
Agency shall be bound to complete the purchase of the Property
strictly in accordance with the offer. Thereafter the Agency shall
pay the "resale price" to the Qualified Homebuyer and close an
escrow for the transfer of the Property to the Agency within sixty
( 60) days following written notification of the intention of the
Qualified Homebuyer to resell the Property.
Section 10 . Covenants to Run With the Land. The Qualified
Homebuyer and the Agency hereby declare their specific intent that
the covenants, reservations and restrictions set forth herein are
part of a plan for the promotion and preservation of affordable
housing within the territorial jurisdiction of the Agency and that
each shall be deemed covenants running with the land and shall pass
to and be binding upon the Property and each Successor-In-Interest
of the Qualified Homebuyer in the Property for the term provided in
Section 12 . The Qualified Homebuyer hereby expressly assumes the
duty and obligation to perform each of the covenants and to honor
each of the reservations and restrictions set forth in this HOME
Covenant. Each and every contract, deed or other instrument
hereafter executed covering or conveying the Property or any
interest therein shall conclusively be held to have been executed,
delivered and accepted subject to such covenants, reservations, and
restrictions, regardless of whether such covenants, reservations
and restrictions are set forth in such contract, deed or other
instrument.
Section 11. Burden and Benefit. The Participant, the
Agency and the Qualified Homebuyer hereby declare their
understanding and intent that the burden of the covenants set forth
herein touch and concern the land in that the Qualified Homebuyer' s
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legal interest in the Property is affected by the affordable
dwelling use and occupancy covenants hereunder. The Agency and the
Qualified Homebuyer hereby further declare their understanding and
intent that the benefit of such covenants touch and concern the
land by enhancing and increasing the enjoyment and use of the
Property by the intended beneficiaries of such covenants,
reservations and restrictions, and by furthering the affordable
Property goals and objectives of the Agency and in order to make
the Property available for acquisition and occupancy by the
Qualified Homebuyer.
Section 12 . Term.
(a) The provisions of Section 4 and Section 9 of this HOME
Covenant shall apply to the Property and the Qualified Homebuyer
and to each Successor-In-Interest for a term of ten (10) years
after the Delivery Date.
(b) Except as set forth in Section 12 (a) all of the other
provisions of this HOME Covenant shall apply to the Property for a
term of thirty (30) years after the Delivery Date.
(c) Any provision or section of this HOME Covenant may be
terminated after the Delivery Date upon written agreement by the
Agency and the Qualified Homebuyer (or the Successor-In-Interest in
the Property) , if there shall have been provided to the Agency an
opinion of special legal counsel that such a termination under the
terms and conditions approved by the Agency in its reasonable
discretion will not adversely affect the affordable housing and
development goals and obligations of the Agency under the HOME
Program.
Section 13. Breach and Default and Enforcement.
(a) Failure or delay by the Qualified Homebuyer to honor or
perform any material term or provision of this HOME Covenant shall
constitute a breach under this HOME Covenant; provided however,
that if the Qualified Homebuyer commences to cure, correct or
remedy the alleged breach within thirty (30) calendar days after
the date of written notice specifying such breach and shall
diligently complete such cure, correction or remedy, the Qualified
Homebuyer shall not be deemed to be in default hereunder.
The Agency shall give the Qualified Homebuyer written notice
of breach specifying the alleged breach which if uncured by the
Qualified Homebuyer within thirty (30) calendar days, shall be
deemed to be an event of default. Delay in giving such notice
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shall not constitute a waiver of any breach or event of default nor
shall it change the time of breach or event of default; provided,
F however, the Agency shall not exercise any remedy for an event of
default hereunder without first delivering the written notice of
breach as specified in this Section 13 .
Except with respect to rights and remedies expressly declared
to be exclusive in this HOME Covenant, the rights and remedies of
the Agency are cumulative with any other right or power of the
Agency or the City or other applicable law, and the exercise of one
or more of such rights or remedies shall not preclude the exercise
by the Agency at the same or different times, of any other right or
remedy for the same breach or event of default.
In the event that a breach of the Qualified Homebuyer may
remain incurred for more than thirty (30) calendar days following
written notice, as provided above, an event of default shall be
deemed to have occurred. In addition to the remedial provisions of
Section 7 as related to a Maintenance Deficiency at the Property,
upon the occurrence of any event of default the Agency shall be
entitled to seek any appropriate remedy or damages by initiating
legal proceedings as follows :
(i) by mandamus or other suit, action or proceeding at
law or in equity, to require the Qualified
Homebuyer to perform its obligations and covenants
hereunder, or enjoin any acts or things which may
be unlawful or in violation of the rights of the
Agency including without limitation with respect to
the Second Dwelling Unit; or
(ii) by other action at law or in equity as necessary or
convenient to enforce the obligations, covenants
and agreements of the Qualified Homebuyer to the
Agency.
(b) Except as set forth in the next sentence, no third party
shall have any right or power to enforce any provision of this HOME
Covenant on behalf of the Agency or to compel the Agency to enforce
any provision of this HOME Covenant against the Qualified Homebuyer
or the Property. The Agency may assign the right and power to
enforce the provisions of this HOME Covenant against the Qualified
Homebuyer or the Property to the City of San Bernardino as the
successor administrative agency of the affordable housing programs
of the Agency.
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Section 14 . Governing Law. This HOME Covenant shall be
governed by the laws of the State of California.
Section 15. Amendment. This HOME Covenant may be amended
after the Delivery Date only by a written instrument executed by
the Qualified Homebuyer (or the Successor-In-Interest, as
applicable) and by the Agency.
Section 16. Attorney' s Fees. In the event that the Agency
brings an action to enforce any condition or covenant,
representation or warranty in this HOME Covenant or otherwise
arising out of this HOME Covenant, the prevailing party in such
action shall be entitled to recover from the other party reasonable
attorneys ' fees to be fixed by the court in which a judgment is
entered, as well as the costs of such suit . For the purposes of
this Section 16, the words "reasonable attorneys ' fees" in the case
of the Agency include the salaries, costs and overhead of the
lawyers employed in the Office of the City Attorney of the City of
San Bernardino.
Section 17 . Severability. If any provision of this HOME
Covenant shall be declared invalid, inoperative or unenforceable by
a final judgment or decree of a court of competent jurisdiction
such invalidity or unenforceability of such provision shall not
affect the remaining parts of this HOME Covenant which are hereby
declared by the parties to be severable from any other part which
is found by a court to be invalid or unenforceable .
Section 18. Time is of the Essence. For each provision of
this HOME Covenant which states a specific amount of time within
which the requirements thereof are to be satisfied, time shall be
deemed to be of the essence.
Section 19. Notice. Any notice required to be given under
this HOME Covenant shall be given by the Agency or by the Qualified
Homebuyer, as applicable, by personal delivery or by First Class
United States mail at the addresses specified below or at such
F other address as may be specified in writing by the parties hereto:
If to the Agency: Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Attn: Executive Director
Phone: (909) 663-1044
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If to the
Qualified Homebuyer:
Attn:
Phone:
Notice shall be deemed given five (5) calendar days after the date
of mailing to the party, or, if personally delivered, when received
by the Executive Director of the Agency or the Qualified Homebuyer,
as applicable.
I
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IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer
and the Agency have caused this HOME Covenant to be signed,
acknowledged and attested on their behalf by duly authorized
representatives in counterpart original copies which shall upon
execution by all of the parties be deemed to be one original
document. The recordation of this HOME Covenant is authorized
under Health and Safety Code Section 33334 .2 and other applicable
law.
PARTICIPANT
Neighborhood Housing Services of the
Inland Empire Inc. , a California
non-profit corporation
Date: By:
By:
QUALIFIED HOMEBUYER
Date: By:
By:
AGENCY
Redevelopment Agency of the City
of San Bernardino
Dated: By:
Executive Director
[ALL SIGNATURES MUST BE NOTARIZED]
Approved as to Form:
By:
Agency Counsel
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EXHIBIT "A"
Legal Description of the Property
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r
"EXHIBIT F"
HOME Property Rehabilitation Specifications
rr
6/16/00
Specifications
For
The Rehabilitation of
1149 Rialto Ave
San Bernardino, Ca.
BY
N.H.S.I.E. Inc.
1390 North "D" St.
San Bernardino, Ca. 92405
Specifications For 1149 Rialto
EXHIBIT "A"
6/16/00
General Information
This Project is a rehabilitation of a Single Family Residence, 2
Bedroom, one bath. The current garage needs to be removed and a new one
built New garage will be stick built with wood siding exterior. The interior will be
totally gutted and remodeled. All electrical will be updated. HVAC will be
updated to a forced air. The current roof will be removed and new one applied
according to specs and code. Because of the current disrepair of the roof my
assumption is that new trusses will be needed. The front entrance will need to
be reworked. A porch with a roof will be added to both improve the aperance of
the home and to add cover for the homeowner in incliment weather. The wood
siding on the home will be replaced.
General Requirements
100 Cleaning: Yard shall be raked and free of all debris and rubbish.
102 Debris Disposal: Dispose of all debris from worksite and yard in a code legal
landfill.
Sitework
200 Seed Lawn by Hand: Seed all areas disturbed by construction with the
appropiate seed for location and amount of sunshine
201 Sprinklers System: In ground lawn sprinkler system will be installed according
To manufacture specs and code.
Concrete
300 General Requirements: All concrete shall be air entrained, Portland cement,
2500 PSI, maximum 4" slump, unless otherwise specified. All concrete shall be
placed on original soil or compacted fill, against straight solid forms, when the
temperature is between 40-100 degrees F. All concrete shall be free of voids
and cavities and shall be protected from the weather while curing. All forms and
soils shall be inspected before pouring.
302 Sidewalk: Form and pour 4" thick concrete with control joints every 4' at right
angles to edge of walk. Widths of concrete to match existing, float and broom
finish. Remove all forms, regrade and spot seed
Carpentry
600 General Requirements: All Framing is to be done with #2 or better lumber.
Pressure treated lumber must be used for all bottom plates and anywhere that
lumber meets concrete or ground.
601 Rough Framing: All aspects of framing will be done to current code.
604 Trusses: Trusses will be engineered and installed according to specification
from the manufacture.
605 Hardware: All hold down hardware and stress panels will be installed according
to the plans and the manufacture specs.
Finish Carpentry
651 Cabinet - Wood Base: Install base cabinets with doors of solid wood stiles and
plywood panels. Frame with solid wood stiles, 1/2" (minimum) plywood sides
and metal or plastic comer bracing. Drawers shall be made of wood or
composition
Specifications For 1149 Rialto
6/16/00
h material. Cutout counter top for sink. Check with plumbing specs for sink
dimensions.
M Cabinet -Wood Hanging: Feld measure and screw to studs, level and plumb,
new kitchen wall cabinet Door to have solid wood stiles and plywood panels.
Frame to have solid wood stiles, % (minimum) plywood sides, metal or plastic
comer bracing.
652 Counter Top: Field measure and screw to base cabinet a post-formed
laminated plastic counter top
653 Vanity: Complete: Install bathroom vanity including bowl, Delta or Moen faucet,
drain fittings, supply with shut-off.
654 Soffit - Interior. Frame soffit with 2"X4" and install 1/2" drywall with beaded
edges, taped and 3 coat finished, ready for paint Length of soffit to equal
length of wall cabinets. Height of soffit to allow 18" between base cabinet
and wall cabinet, and to allow for 30"wall cabinet. If joists run in same direction
as soffit, install framing pieces 16" O.C. across ceiling joist for nailer for soffit.
Thermal and Moisture
704 Insulation: Staple 16" on center R-19 foil faced insulation to studs. Install R-30
foil faced insulation in ceiling.
710 Roofing: Install a roof system of 3 tab Asphalt Shingles (20 Year warranty) over
151b. Felt. Install proper drip edge and gutter edge and install shingles to the
manufacture specs.
711 Gutter/Downspout: Install Aluminum or plastic gutters with 3' runoffs.
Doors and Windows
801 Door- Prehung Metal Entrance: Install a prehung metal insulated, 6 panel
entrance door and jamb including interior and exterior trim, threshold and
entrance lock set.
802 Door-Garage entrance from Living Space: Install a prehung Metal door with a
minimum of a1 hour fire rating
803 Interior Door-Wooden: Install a pre-hung hollow core door
805 Garage Door-Metal: Install a metal panel door with an opener
807 Window -Aluminum Double Hung D.G.: Field measure, order and install a
aluminum white double hung low"E" and double glazed replacement window
with screen.
Finishes
901 Drywall 1/2": Hang, Tape and 3'coat finish 1/2" drywall. Screw 8" O.C. Run
sheets with long dimension horizontal.
902 Painting - General Requirements: All paint lead free. All surfaces clean and
dry for application. Secure all loose materials, set nails, and fill holes, dents and
cracks. Paint when temp is from 40-100 degrees F. No show- through, runs,
sags or brush marks. Prime with latex primer. Finish coat to be latex semi-
gloss. Color to be selected at a later time.
6
6/16/00
Specifications for 1149 Rialto
905 Floor Covering - General Requirements: Unless otherwise specified, all
materials shall be new and match existing as to size, style, color and method of
installation. All interior carpeting shall be FHA approved. All subfloors and
underlayments shall be well secured, dry, clean, level, and free of cracks,
depressions, voids, bumps and squeaks before installation of finish floor
covering.
906 Carpet and Pad: Install FHA approved nylon carpet over 112" medium density
polyurethane pad with a minimum of seams. Stretch carpet to eliminate
puckers, scallops and ripples. Include tackless strips, metal edge strips, and
mending tape to cover entire floor including closets. On stairs, fasten carpet
and pad at top and bottom of each riser.
907 Underlay and Vinyl Sheet Goods: Install 1/4" undedayment grade plywood,
using 7d screw shank or rink shank nails 6" O.C. in all directions. Install .070"
thick, backed vinyl sheet goods with a minimum of seams, per manufacturer's
recommendations. Caulk edges of vinyl with clear silicone caulk to create a
positive seal. Install metal edge strips in openings, and shoe or vinyl base
around perimeter.
HVAC
1160 HVAC - General Requirements: Unless otherwise specified, all materials shall
be new. Equipment shall operate safely without leakage, noise or vibration. All
penetrations of building components shall be neat, sleeved and fire stopped and
shall not compromise structural integrity.
1161 Furnace and duct: Install a 80%+ AFUE Gas Fired forced air furnace include
any sheet metal work necessary to the installation of the unit.
Plumbing
1100 Plumbing - General Requirements: Unless otherwise specified, all materials
shall be new. All items shall operate safely without leakage, noise, vibration or
hammering. All penetrations of building components shall be neat, sleeved, and
fire stopped. No solder connections containing lead shall be used in any pipe or
fixture carrying potable water. Damage to structural members from drilling or
notching shall be repaired to the acceptance of the owner and program.
Supply - Copper: Install type L or M rigid copper supply lines to fixtures with
silver/tin solder. No solder containing lead is allowed. Size piping to 1986
C.A.B.O. minimuns per table p.2406.5. Provide dielectric unions at iron
pipejoints.
Drain, Waste, Vent - PVC: Install schedules.40 PVC pipe and fillings solvent
welded after a dyed cleaning step. Install pipe with hangers 3' on center without
critical damage to structural members.
Sink - Double Bowl Complete: Install Dayton 233223 stainless steel sink with
Moen 7531 faucet or approved equal with supply valves from stop valves.
Vanity - Bathroom: Install a vanity complete with wood cabinet, cultered marble
top, Moen 4920 faucet or approved equal, supply risers, shut off valves and all
necessary hardware.
Tub Diverter- Single control: Install a single lever metal shower diverter and
showerhead with 5-year drip-free warranty.
` 6/16/00
Specifications For 1149 Rialto
Bathtub - 5' Fiberglass One piece unit: with Moen single control faucet or
approved equal, operated pop up drain and overflow, PVC waste, shower
diverter, shower rod and shower head.
Toilet Seat: Install a white wood or plastic top mounted toilet seat and lid.
Toilet: Install Gerber 21-702 2- piece close coupled white, vitreous china, water
saving toilet or approved equal. Include supply pipe, shut off valve, stop valve
and wax seal. Install per code.
Water Heater-40 Gal Gas: Install a Rheem 21 VP 40, 40 gallon, glass lined
high recovery, insulated to R-7, gas water heater with a 10-year warranty.
Include pressure and temperature relief valve to fixture or approved equal. Strap
heater to wall per code installation.
Hose Bibb: Install a bronze hose bibb with inside shut-off valve and backflow
preventer. Seal opening with silicone caulk.
Electrical
1200 Electric - General Requirements: All materials shall be new unless otherwise
specified, and UL approved and/or National Electric Code rated. All drilling,
cutting and fastening shall be neat and true. All patching shall match the
existing or surrounding surface. All electrical work must be preformed by a
licensed electrician under a valid permit. Specific language invoking " Minimum
Property standards " shall appear on the permit itself. All boxes must have
branch circuits listed on panel door. Rewire entire structure.
Electric Service - 100 AMP: Install a 100 amp, main disconnect, 110/220 volt
circuit panel board. Include: weathercap, entrance cable, EMT, meter socket,
ground rod and ground cable. Caulk entry to structure.
Smoke Detector. Install a UL approved, ceiling mounted smoke and heat
detector permanently connected to the electrical system in structure.
Appliances
1001 Gas Range - 30": Provide and install a white, 30"wide gas stove including all
gas and electric connections.
1002 Range Hood - Recirculating: Install a 30", recirculating, enameled metal range
hood with light and washable grease filter.
MSsa, t. MWEQ oily unit Prise Mateirl Can S.4eeas.aar Lib►Cwt• Taal Y
E:
20.00
Dumpster d $700.001 i 56.600.00
>::;<>::::,.v<<s.• $0.00
W I F•tll sand for foundation
0.00
202 Bacichoe for elemcal $
I I ! 50.00
203 Fill.grade and Site work 1 50.00
204 Landscaping I 51,850.00 ! $1,850.00
205 Fenn and Gate I 5500.00
• M::::::::::..::.:::>:;;<:::;;; I I 5500.00
! ce�f�<;>>:: ::::...................,:.... I $0.00
30 Mouse Slab
$0.00
302 Driveway and Walk I ! S500.00 1 $500.00
303 Garage and Porch I I I I I $0.00
304 Forms and Hardware I I $0.00
x! gi70Ji :::>:x•.v.. .;,o:<z<> I I ! 1 $0.00
410 ":Subcontracted I I ! $0.00
Et I I $0.00
601 Rough Framing-Garage j $4,500.00 I $4.500.00
602 Rough Framing-Interior I $900.00 $900.00
603 Roof Sheeting I i $1,650.00 $1.650.00
604 Trusses I $3.100.00 t I $3.100.00
605 Framing Hardware I $200.00 5200.00
606 Front Porch $2.200.00 $2.200.00
39... Iq.ilt Lei r�60-x......................
$0.00.. .....::::.::
651 Kitchen Cabinets ! $2,800.00 $2.800.00
652 Kitchen Counter Tops $650.00 $650.00
654 Medicine Cabinet 1 i $0.00 $0.00
655 Finish Lumber $1,500.00 . $1,500.00
657 Underlayment $0.00
658 Closet Shelving I I $0.00
659 Miscellaneous I ; $0.00
$0.00
I ,
_............::::::.::::::...::.; . .
Sid $160000 $1,800.00
lum.Trim Wrap I $0.00
•ascta/Soffit $250.00
5250.00
704 insulation $1.500.00 $1,500.00
710 Roofing I $1,250.00
711 Gutters $1,250.00
$250.00 $250.00
B00 L{7Cl�8t Y�tj;ndows i ! $0.00
801 Doors $750.00 5750.00
805 Garage Door $500.00 $500.00
806 Hardware $300.00 I $300.00
807 Winnows I $1.400.00 $1,400.00
8G8 Irtn3sils I 50.00
901 Drywall I I I $2.500.00
902 Painting I $2.500.00
I $980
905 Calvet 5980.00
i 51.250.00
$1.250.00
906 Vinyl and Floor file I I 3630.00 $630.00
� t 5�ectsfEffes; so.00
1001 Built-in Appliances $600.00
$600.00
1002 Range and Hood ! t $450.00 $450.00
1107 Shower enclosure and mirror I $250.00 $250.00
1110 Plumbing $ 1.800.00
t $1,800.00
rasa Heating
1160 HVAC $0.00
! ! S 2.800.00 52.800.00
1161 Duct Work and Fittings ! S 400.00 $400.00
3200 C�L'tCtfi.... ! $0.00
1201 Street Service $0.00
1202 Wiring I $ 1.100.00 $1,100.00
1203 Fixtures S 400.00
1204 Temp.Services $400.00
2 i $0.00
1��SCQbBLt�pltf $0.00
13R^ 'bit•O-Let $120.00
1 lies $120.00
1- elect Cleanln $120.00 $120.00
g
1307 9lueprim Reproduction $0.00
1311 a $0.00
Toler,Sign 5150.00 $150.00
1312 ,ermtte treatment $150.00 $150.00
1'� �l1I�J71lT>Ft,R!!iL't�;
401 Allowance $0.00 5350.00
1500 Total 5350.00
542; Q`OC45Q DQ �8 548.000.00
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Attn: Executive Director
(Space Above Line Reserved For Use By
Recorder)
(Exempt from Recording Fees Per Govt.
Code Sec. 6103)
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
ACQUISITION, REHABILITATION, RESALE,
AFFORDABILITY, USE AND OCCUPANCY COVENANT
THIS ACQUISITION, REHABILITATION, RESALE, AFFORDABILITY, USE
AND OCCUPANCY COVENANT, (the "HOME Covenant") is made and entered
into as of , 200_ by and among the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body
corporate and politic (the "Agency") ,
(the "Qualified Homebuyer") and the
Neighborhood Housing Services of the Inland Empire, Inc. , a
California non-profit corporation, (the "Participant") , and this
HOME Covenant relates to the following facts set forth in Recitals :
-- R E C I T A L S --
A. The Qualified Homebuyer proposes to acquire the Property
locate at I San Bernardino, California (the
"Property") , from the Participant . A legal description of the
Property is attached hereto as Exhibit "A" and incorporated herein
by this reference .
B. The Property has been improved and rehabilitated by the
Participant with the "New Home" which shall be owned and occupied
by the Qualified Homebuyer as their principal residence .
C. The Agency has transferred the Property to the
Participant for the purposes as set forth under that certain
SBEO/0001/DOC/4120
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Acquisition, Rehabilitation Resale Agreement dated September 7,
1999, as amended (the "HOME Agreement") in order to make the
Property available for acquisition by the Qualified Homebuyer,
subject to the terms and conditions of this HOME Covenant;
D. The terms of the HOME Agreement mandate that the
acquisition, use and occupancy of the Property shall be restricted
in certain respects for the term as provided herein (the "Qualified
Residence Period") in order to ensure that the Property will be
used and occupied in accordance with the HOME Agreement and the
affordable single family residential dwelling unit development
goals and objectives of the Agency.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY
ACKNOWLEDGED, THE PARTICIPANT, THE QUALIFIED HOMEBUYER AND THE
AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR
SUCCESSORS AND ASSIGNS AS FOLLOWS:
Section 1. Definitions of Certain Terms. As used in this
HOME Covenant, certain words and terms shall have the meaning as
provided in the Recitals or in this Section 1 unless the specific
context of usage of a particular word or term may otherwise
require:
Adjusted Family Income. The words "Adjusted Family Income"
mean the anticipated total annual income (adjusted for family
size) of each individual or family residing on the Property.
The adjusted Family Income figure for the Qualified Homebuyer
shall be calculated in accordance with Treasury Regulation
1 . 167 (k) - 3 (b) (3) under the Code, as adjusted, based upon
family size in accordance with the household income adjustment
factors adjusted and amended from time to time, pursuant to
Section 8 of the United States Housing Act of 1937, as
amended.
Affordable Housing Cost. The words "Affordable Housing Cost"
shall have the meaning as set forth in Health and Safety Code
Section 50052 . 5 . At the time of the close of the New Home
Escrow, or later when a proposed Successor-In-Interest
acquires the Property, the amount of the maximum Affordable
Housing Cost payable by the Qualified Homebuyer in connection
with the acquisition of the Property at any time during the
Qualified Residence period shall be calculated as set forth in
Health and Safety Code Section 50053 . 5 (b) (1) , (2) , as
applicable .
5BEO/0001/DOC/4120
'7/14/00 1230 jmw 2
Agency Grant Deed. The words "Agency Grant Deed" mean and
refer to Recorded Instrument No. , Official Records
of the Recorder of the County of San Bernardino.
Code. The word "Code" means the Internal Revenue Code of
1986, as amended, and any regulation, rulings or procedures
with respect thereto.
Delivery Date. The words "Delivery Date" mean the date of
delivery of title and possession of the Property to the
Qualified Homebuyer at the close of the New Home Escrow.
HOME Covenant. The words "HOME Covenant" mean these
Redevelopment Agency of the City of San Bernardino
ACQUISITION, REHABILITATION, RESALE, AFFORDABILITY, USE AND
OCCUPANCY Covenant by and between the Participant, Qualified
Homebuyer and the Agency pertaining to the Property.
Low-Income Family. The words "Low-Income Family" means
persons and families whose annual income do not exceed 80
percent of the median income for the area, as determined by
the United States Secretary for the Department of Housing and
Urban Development with adjustments for smaller and larger
families . (See: regulations at 24 Code of Federal Regulations
Part 92 .2)
New Home Escrow. The words "New Home Escrow" mean and refer
to the real estate conveyance transaction or escrow by and
between the Qualified Homebuyer and the Participant (or later,
by and between the Qualified Homebuyer and the Successor-In-
Interest) . The transfer of the Property from the Participant
to the Qualified Homebuyer (or later, the transfer of the
Property by the Qualified Homebuyer to a Successor-In-
Interest) shall be accomplished upon the close of the New Home
Escrow.
Notice of Agency Concurrence. The words "Notice of Agency
Concurrence" mean and refer to the acknowledgment in
recordable form in which the Agency confirms that the proposed
Successor-In-Interest of the Qualified Homebuyer satisfies all
of the requirements of this HOME Covenant for ownership of
the Property by the Successor-In-Interest at any time during
the Qualified Residence Period.
Property. The word "Property" means and refers to the land,
the new home improvements and landscape improvements thereon
SBEO/0001/DOC/4120
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■
acquired by the Qualified Homebuyer from the Participant at
the close of the New Home Escrow.
Qualified Homebuyer. The words "Qualified Homebuyer" mean the
purchaser of the Property (e.g. : all persons identified as
having property ownership interest vested in the Property at
the close of the New Home Escrow) . At the close of the New
Home Escrow, the Qualified Homebuyer shall: (i) have an annual
Adjusted Family Income which does not exceed the household
income qualification limits of a Low-Income Family and (ii)
shall be a first-time homebuyer, as provided at 24 CFR Part
92 .254 (a) (3) .
Qualified Residence Period. The words "Qualified Residence
Period" mean the period of time beginning on the Delivery Date
and ending on the date which is ten (10) years after the
Delivery Date .
Successor-In-Interest. The words "Successor-In-Interest"
means and refers to the Low-Income Family which may acquire
the Property from the Qualified Homebuyer at any time during
the Qualified Residence Period by purchase, assignment
transfer or otherwise . The Successor-In-Interest shall be a
Low-Income Family, shall pay no more than an Affordable
Housing Cost for any purchase money financing associated with
its acquisition of the Property, and shall otherwise satisfy
the requirements of 24 Code of Federal Regulations Part
92 .254 (a) . Upon acquisition of the Property, the Successor-In-
Interest shall be bound by each of the covenants, conditions
and restrictions of the Agency Grant Deed and this HOME
Covenant .
The titles and headings of the sections of this HOME Covenant have
been inserted for convenience of reference only and are not to be
considered a part hereof and shall not in any way modify or
restrict the meaning any of the terms or provisions hereof.
Section 2 . Acknowledgments and Representations of the
Qualified Homebuyer.
The Qualified Homebuyer hereby acknowledges and represents
that, as of the Delivery Date:
(a) the annual Adjusted Family Income of the Qualified
Homebuyer does not exceed 80% area median income of the City
adjusted for family size for a Low-Income Family;
SBEO/0001/DOC/4120
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(b) the Qualified Homebuyer intends promptly to occupy the
Property after the Delivery Date as the Qualified Homebuyer' s
principal place of residence for a term of at least ten (10) years
following the Delivery Date and the Qualified Homebuyer has not
entered into any arrangement and has no present intention to rent,
sell, transfer or assign the Property to any third party during the
Qualified Residence Period so as to frustrate the purpose of this
HOME Covenant;
(c) the Qualified Homebuyer has no present intention to
sublet or rent any portion of the Property to any relative of the
Qualified Homebuyer or to any third person at any time during the
Qualified Residence Period;
(d) the Qualified Homebuyer agrees to provide the Agency with
the following items of information for inspection by the Agency
promptly upon written request of the Agency:
(i) State and federal income tax returns filed by all
persons who reside in the New Home for the calendar
year preceding the close of the New Home Escrow for
inspection of such State and federal income tax
returns;
(ii) current wage, income and salary statements for all
persons residing in the New Home at the close of
the New Home Escrow;
(e) the Qualified Homebuyer is aware and has been informed by
the Participant prior to the Delivery Date that this HOME Covenant
imposes certain restrictions on the use and occupancy of the
Property during the term of this HOME Covenant and that this HOME
Covenant imposes certain restrictions on the resale of the Property
during the Qualified Residence Period. The Qualified Homebuyer
acknowledges and understands that the restrictions shall be
applicable to the both the Property and to any resale of the
Property from the Delivery Date to the end of the Qualified
Residence Period which is 20
Dated:
Initials of
Qualified Homebuyer
Dated:
Initials of
Participant
SBEO/0001/DOC/4120
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Section 3 . Acknowledgment of Subordination of the
Provisions of Section 4 of this HOME Covenant to the Mortgage
Security Interest of the First Mortgage Lender.
Concurrently upon the execution and recordation of this HOME
Covenant the Qualified Homebuyer shall obtain certain purchase
money mortgage financing for the acquisition of the Property from
(the "First Mortgage Lender") . As
of the Delivery Date, the Qualified Homebuyer has provided the
Agency with a true and correct copy of the loan agreement by and
between the First Mortgage Lender and the Qualified Homebuyer.
As a condition to providing its mortgage loan to the
Qualified Homebuyer, the First Mortgage Lender requires the Agency
to agree that the provisions of Section 4 of this HOME Covenant
shall be junior and subordinate to the security interest of the
First Mortgage Lender in the Property of even date herewith.
The Agency hereby acknowledges and agrees that the provisions
of Section 4 of this HOME Covenant are subordinate and junior to
the security interest of the First Mortgage Lender in the Property
of even date herewith. No breach or default by the Qualified
Homebuyer of any provision of Section 4 of this HOME Covenant, nor
the exercise by the Agency of any remedy it may have against the
Qualified Homebuyer in the event of such a breach or default shall
affect or render invalid the lien of the First Mortgage Lender in
the Property. Thus, the First Mortgage Lender and any good faith
purchaser for value from the First Mortgage Lender, its successors
and assigns, including without limitation the United States
Secretary of Housing and Urban Development, if such mortgage has
been assigned to the Secretary of Housing and Urban Development,
receiving title to the Property through a trustee ' s sale, judicial
foreclosure sale, deed in lieu of foreclosure and any conveyance or
transfer thereafter, shall receive title to the Property free and
clear of the provisions of Section 4 of this HOME Covenant .
Section 4 . Covenant of the Oualified Homebuyer to Maintain
Affordability of the Property During the Qualified Residence Period
and Covenant Relating to Sale or Transfer of the Property During
the Oualified Residence Period to- a Successor-In-Interest.
(a) The Qualified Homebuyer for itself, its heirs, successors
and assigns, hereby covenants and agrees that during the term of
the Qualified Residence Period the Property shall be used and
occupied by the Qualified Homebuyer as the Qualified Homebuyer' s
principal residence .
SBEO/0001/DOC/4120
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(b) The Qualified Homebuyer, for itself, its heirs,
successors and assigns, hereby covenants and agrees that, during
the Qualified Residence Period, the Agency shall have the right and
duty to verify that each proposed Successor-In-Interest of the
Qualified Homebuyer in the Property has Adjusted Family Income, of
a Low-Income Family and that the amount payable by the Successor-
In-Interest for the proposed transfer of the Property under the
terms of any purchase money financing does not exceed an Affordable
Housing Cost, and that the completion of any resale or transfer of
the Property to a Successor-In-Interest shall be subject to the
recordation of the "Notice of Agency Concurrence" as provided in
Section 4 (d) .
(c) The Qualified Homebuyer, for itself, its successors and
assigns, hereby covenants and agrees that during the term of the
Qualified Residence Period the Qualified Homebuyer shall not sell,
transfer or otherwise dispose of the Property (or any interest
therein) at a sale or transfer price which exceeds 95 percent of
the median purchase price for the area as provided in 24 CFR Part
92 .25 (a) (2) (iii) , to a Successor-In-Interest without first giving
written notice to the Agency and without first obtaining the
written concurrence of the Agency as provided herein. At least
sixty (60) days prior to the date on which the Qualified Homebuyer
proposes to transfer title in the Property to a Successor-In-
Interest, the Qualified Homebuyer shall send a written notice to
the Agency as provided in Section 19 of the intention of the
Qualified Homebuyer to sell the Property to a Successor-In-Interest
which includes the following true and correct information:
(i) name of the proposed Successor-In-Interest
(including the identity of all persons in the
household of the Successor-In-Interest proposing to
reside in the New Home) ;
(ii) copies of State and federal income tax returns for
the Successor-In-Interest for the calendar year
preceding the year in which the notice of intention
to sell the Property is given to the Agency;
(iii) resale price of the Property payable by the
Successor-In-Interest, including the terms of all
purchase money mortgage financing to be assumed,
provided or obtained by the Successor-In-Interest,
escrow costs and charges, realtor broker fees and
all other resale costs or charges payable by either
the Qualified Homebuyer or the . Successor-In-
Interest;
SBEO/0001/DOC/4120
7/14/00 1230 jmw 7
(iv) name address, and telephone number of the escrow
company which shall coordinate the transfer of the
Property from the Qualified Homebuyer to the
Successor-In-Interest;
(v) appropriate mortgage credit reference for the
Successor-In-Interest with a written authorization
signed by the Successor-In-Interest authorizing the
Agency to contact each such reference; and
(vi) such other relevant information as the Agency may
reasonably request, as provided in Section 4 (d) .
(d) Within thirty (30) days following receipt of the notice
of intention described in Section 4 (c) , the Agency shall provide
the Qualified Homebuyer with either a preliminary confirmation of
approval or a preliminary rejection in writing of the income and
household occupancy qualifications of the Successor-In-Interest.
The Agency shall not unreasonably withhold approval of any proposed
sale of the Property to a Successor-In-Interest who satisfies the
Adjusted Family Income requirements and for whom the other
information as described in Section 4 (c) has been provided to the
Agency. In the event that the Agency may request additional
information relating to the confirmation of the matters described
in Section 4 (c) , the Qualified Homebuyer shall provide such
information to the Agency as promptly as feasible .
(e) Upon its final confirmation of approval of the Adjusted
Family Income eligibility of the Successor-In-Interest to acquire
the Property, the Agency shall deliver a written acknowledgment and
approval of the resale of the Property to the Successor-In-Interest
in recordable form to the escrow holder referenced in Section
4 (d) (iv) above, and thereafter the Successor-In-Interest may
acquire the Property subject to the satisfaction of the following
conditions :
(i) the recordation of the Notice of Agency Concurrence
executed by the Successor-In-Interest and the
Agency at the close of the resale escrow;
(ii) the escrow holder shall have provided the Agency
with a copy of the customary form of the final
escrow closing statement of the Qualified Homebuyer
and the final escrow closing statement for the
Successor-In-Interest; and
SBEO/0001/DOC/4120
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(iii) the other conditions of the resale escrow as
established by the Qualified Homebuyer and
Successor-In-Interest shall have been satisfied.
(f) The Qualified Homebuyer for itself, its successors and
assigns hereby covenants and agrees that during the Qualified
Residence Period the New Home shall not be leased, subleased, or
rented to any third person, except for a temporary period (not to
exceed one hundred and eighty (180) days) in the event of an
emergency or other unforseen circumstance as may be expressly
approved in writing by the Agency subject to compliance during the
temporary rental period with the reasonable temporary rental
occupancy conditions required by the Agency. The Qualified
Homebuyer shall submit a written request to the Agency prior to the
commencement of the temporary occupancy, as practicable, but in any
event within not more than sixty (60) days following the
commencement of a temporary rental occupancy of the New Home by a
third party, which notice shall set forth the grounds on which the
Qualified Homebuyer believes an emergency or other unforeseen
circumstance has occurred and that a temporary rental occupancy is
necessary.
Section S. [RESERVED -- NO TEXT1 .
Section 6. [RESERVED -- NO TEXT1 .
Section 7. Maintenance Condition of the Property. The
Qualified Homebuyer, for itself, its successors and assigns, hereby
covenants and agrees that :
(a) The exterior areas of the Property which are subject to
public view (e.g. : all improvements, paving, walkways, landscaping,
and ornamentation) shall be maintained in good repair and a neat,
clean and orderly condition, ordinary wear and tear excepted. In
the event that at any time during the term of the Qualified
Residence Period, there is an occurrence of an adverse condition on
any area of the Property which is subject to public view in
contravention of the general maintenance standard described above,
(a "Maintenance Deficiency") then the Agency shall notify the
Qualified Homebuyer in writing of the Maintenance Deficiency and
give the Qualified Homebuyer thirty (30) days from the date of such
notice to cure the Maintenance Deficiency as identified in the
notice. The words "Maintenance Deficiency" include without
limitation the following inadequate or non-confirming property
maintenance conditions and/or breaches of residential property use
restrictions :
SBEO/0001/DOC/4120
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failure to properly maintain the windows, structural
elements, and painted exterior surface areas of the
dwelling unit in a clean and presentable manner;
failure to keep the front and side yard areas of the
property free of accumulated debris, appliances,
inoperable motor vehicles or motor vehicle parts, or free
of storage of lumber, building materials or equipment not
regularly in use on the property;
failure to regularly mow lawn areas or permit grasses
planted in lawn areas to exceed nine inches ( 9") in
height, or failure to otherwise maintain the landscaping
in a reasonable condition free of wed and debris;
parking of any commercial motor vehicle in excess of
7, 000 pounds gross weight anywhere on the property, or
the parking of motor vehicles, boats, camper shells,
trailers, recreational vehicles and the like in any side
yard or on any other parts of the property which are not
covered by a paved and impermeable surface;
the use of the garage area of the dwelling unit for
purposes other than the parking of motor vehicles and the
storage of personal possessions and mechanical equipment
of persons residing in the Property.
In the event the Qualified Homebuyer fails to cure or commence
to cure the Maintenance Deficiency within the time allowed, the
Agency may thereafter conduct a public hearing following
transmittal of written notice thereof to the Qualified Homebuyer
ten (10) days prior to the scheduled date of such public hearing in
order to verify whether a Maintenance Deficiency exists and whether
the Qualified Homebuyer has failed to comply with the provision of
this Section 7 (a) . If, upon the conclusion of a public hearing,
the Agency makes a finding that a Maintenance Deficiency exists and
that there appears to be non-compliance with the general
maintenance standard, as described above, thereafter the Agency
shall have the right to enter the Property (exterior areas only)
and perform all acts necessary to cure the Maintenance Deficiency,
or to take other action at law or equity the Agency may then have
to accomplish the abatement of the Maintenance Deficiency. Any sum
expended by the Agency for the abatement of a Maintenance
Deficiency as authorized by this Section 7 (a) shall become a lien
on the Property. If the amount of the lien is not paid within
thirty (30) days after written demand for payment by the Agency to
the Qualified Homebuyer, the Agency shall have the right to enforce
the lien in the manner as provided in Section 7 (c) .
SBEO/0001/DOC/4120
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(b) Graffiti which is visible from any public right-of-way
which is adjacent or contiguous to the Property shall be removed by
the Qualified Homebuyer from any exterior surface of a structure or
improvement on the Property by either painting over the evidence of
such vandalism with a paint which has been color-matched to the
surface on which the paint is applied, or graffiti may be removed
with solvents, detergents or water as appropriate . In the event
that graffiti is placed on the Property (exterior areas only) and
such graffiti is visible from an adjacent or contiguous public
right-of-way and thereafter such graffiti is not removed within 72
hours following the time of its application; then in such event and
without notice to the Qualified Homebuyer, the Agency shall have
the right to enter the Property and remove the graffiti .
Notwithstanding any provision of Section 7 (a) to the contrary, any
sum expended by the Agency for the removal of graffiti from the
Property as authorized by this Section 7 (b) shall become a lien on
the Property. If the amount of the lien is not paid within thirty
(30) days after written demand for payment by the Agency to the
Qualified Homebuyer, the Agency shall have the right to enforce its
lien in the manner as provided in Section 7 (c) .
(c) The parties hereto further mutually understand and agree
that the rights conferred upon the Agency under this Section 7
expressly include the power to establish and enforce a lien or
other encumbrance against the Property in the manner provided under
Civil Code Sections 2924, 2924b and 2924c in the amount as
reasonably necessary to restore the Property to the maintenance
standard required under Section 7 (a) or Section 7 (b) , including
attorneys fees and costs of the Agency associated with the
abatement of the Maintenance Deficiency or removal of graffiti and
the collection of the costs of the Agency in connection with such
action. In any legal proceeding for enforcing such a lien against
the Property, the prevailing path shall be entitled to recover its
attorneys ' fees and costs of suit . The provisions of this Section
7 shall be a covenant running with the land for the Qualified
Residence Period and shall be enforceable by the Agency in its
discretion, cumulative with any other rights or powers granted by
the Agency under applicable law. Nothing in the foregoing
provisions of this Section 7 shall be deemed to preclude the
Qualified Homebuyer from making any alterations, additions, or
other changes to any structure or improvement or landscaping on the
Property, provided that such changes comply with the zoning and
development regulations of the City and other applicable law.
Section S. IRESERVED -- NO TEXTI .
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loom
Section 9. Foreclosure of Purchase Money Mor g&ge Loan of
the First Mortgage Lender and &Mnav Right of First Refusal.
(a) During the Qualified Residence Period the Agency shall
have the right (but not the obligation) to bid on the purchase of
the mortgage loan lien of the First Mortgage Lender secured by the
Property at the time of any trustee foreclosure sale or any
judicial foreclosure sale .
(b) During the Qualified Residence Period the Agency shall
have the right of first refusal to purchase the Property from the
Qualified Homebuyer on the same terms which the Qualified Homebuyer
may propose to offer the Property for resale to a Successor-In-
Interest. The Agency must exercise such a right of first refusal
within thirty (30) days following written notification of the
intention of the Qualified Homebuyer to resell the Property, and if
the Agency accepts the offer in writing within such time period the
Agency shall be bound to complete the purchase of the Property
strictly in accordance with the offer. Thereafter the Agency shall
pay the "resale price" to the Qualified Homebuyer and close an
escrow for the transfer of the Property to the Agency within sixty
(60) days following written notification of the intention of the
Qualified Homebuyer to resell the Property.
Section 10. Covenants to Run With the Land. The Qualified
Homebuyer and the Agency hereby declare their specific intent that
the covenants, reservations and restrictions set forth herein are
part of a plan for the promotion and preservation of affordable
housing within the territorial jurisdiction of the Agency and that
each shall be deemed covenants running with the land and shall pass
to and be binding upon the Property and each Successor-In-Interest
of the Qualified Homebuyer in the Property for the term provided in
Section 12 . The Qualified Homebuyer hereby expressly assumes the
duty and obligation to perform each of the covenants and to honor
each of the reservations and restrictions set forth in this HOME
Covenant. Each and every contract, deed or other instrument
hereafter executed covering or conveying the Property or any
interest therein shall conclusively be held to have been executed,
delivered and accepted subject to such covenants, reservations, and
restrictions, regardless of whether such covenants, reservations
and restrictions are set forth in such contract, deed or other
instrument.
Section 11 . Burden and Benefit. The Participant, the
Agency and the Qualified Homebuyer hereby declare their
understanding and intent that the burden of the covenants set forth
herein touch and concern the land in that the Qualified Homebuyer' s
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legal interest in the Property is affected by the affordable
dwelling use and occupancy covenants hereunder. The Agency and the
Qualified Homebuyer hereby further declare their understanding and
intent that the benefit of such covenants touch and concern the
land by enhancing and increasing the enjoyment and use of the
Property by the intended beneficiaries of such covenants,
reservations and restrictions, and by furthering the affordable
Property goals and objectives of the Agency and in order to make
the Property available for acquisition and occupancy by the
Qualified Homebuyer.
Section 12 . Term.
(a) The provisions of Section 4 and Section 9 of this HOME
Covenant shall apply to the Property and the Qualified Homebuyer
and to each Successor-In-Interest for a term of ten (10) years
after the Delivery Date .
(b) Except as set forth in Section 12 (a) all of the other
provisions of this HOME Covenant shall apply to the Property for a
term of thirty (30) years after the Delivery Date .
(c) Any provision or section of this HOME Covenant may be
terminated after the Delivery Date upon written agreement by the
Agency and the Qualified Homebuyer (or the Successor-In-Interest in
the Property) , if there shall have been provided to the Agency an
opinion of special legal counsel that such a termination under the
terms and conditions approved by the Agency in its reasonable
discretion will not adversely affect the affordable housing and
development goals and obligations of the Agency under the HOME
Program.
Section 13. Breach and Default and Enforcement.
(a) Failure or delay by the Qualified Homebuyer to honor or
perform any material term or provision of this HOME Covenant shall
constitute a breach under this HOME Covenant; provided however,
that if the Qualified Homebuyer commences to cure, correct or
remedy the alleged breach within thirty (30) calendar days after
the date of written notice specifying such breach and shall
diligently complete such cure, correction or remedy, the Qualified
Homebuyer shall not be deemed to be in default hereunder.
The Agency shall give the Qualified Homebuyer written notice
of breach specifying the alleged breach which if uncured by the
Qualified Homebuyer within thirty (30) calendar days, shall be
deemed to be an event of default. Delay in giving such notice
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shall not constitute a waiver of any breach or event of default nor
shall it change the time of breach or event of default; provided,
however, the Agency shall not exercise any remedy for an event of
default hereunder without first delivering the written notice of
breach as specified in this Section 13 .
Except with respect to rights and remedies expressly declared
to be exclusive in this HOME Covenant, the rights and remedies of
the Agency are cumulative with any other right or power of the
Agency or the City or other applicable law, and the exercise of one
or more of such rights or remedies shall not preclude the exercise
by the Agency at the same or different times, of any other right or
remedy for the same breach or event of default.
In the event that a breach of the Qualified Homebuyer may
remain incurred for more than thirty (30) calendar days following
written notice, as provided above, an event of default shall be
deemed to have occurred. In addition to the remedial provisions of
Section 7 as related to a Maintenance Deficiency at the Property,
upon the occurrence of any event of default the Agency shall be
entitled to seek any appropriate remedy or damages by initiating
legal proceedings as follows :
(i) by mandamus or other suit, action or proceeding at
law or in equity, to require the Qualified
Homebuyer to perform its obligations and covenants
hereunder, or enjoin any acts or things which may
be unlawful or in violation of the rights of the
Agency including without limitation with respect to
the Second Dwelling Unit; or
(ii) by other action at law or in equity as necessary or
convenient to enforce the obligations, covenants
and agreements of the Qualified Homebuyer to the
Agency.
(b) Except as set forth in the next sentence, no third party
shall have any right or power to enforce any provision of this HOME
Covenant on behalf of the Agency or to compel the Agency to enforce
any provision of this HOME Covenant against the Qualified Homebuyer
or the Property. The Agency may assign the right and power to
enforce the provisions of this HOME Covenant against the Qualified
Homebuyer or the Property to the City of San Bernardino as the
successor administrative agency of the affordable housing programs
of the Agency.
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Section 14 . Governing LaM. This HOME Covenant shall be
governed by the laws of the State of California.
Section 15. Amendment. This HOME Covenant may be amended
after the Delivery Date only by a written instrument executed by
the Qualified Homebuyer (or the Successor-In-Interest, as
applicable) and by the Agency.
Section 16. Attorney' s Fees. In the event that the Agency
brings an action to enforce any condition or covenant,
representation or warranty in this HOME Covenant or otherwise
arising out of this HOME Covenant, the prevailing party in such
action shall be entitled to recover from the other party reasonable
attorneys ' fees to be fixed by the court in which a judgment is
entered, as well as the costs of such suit . For the purposes of
this Section 16, the words "reasonable attorneys ' fees" in the case
of the Agency include the salaries, costs and overhead of the
lawyers employed in the Office of the City Attorney of the City of
San Bernardino.
Section 17 . Severability. If any provision of this HOME
Covenant shall be declared invalid, inoperative or unenforceable by
a final judgment or decree of a court of competent jurisdiction
such invalidity or unenforceability of such provision shall not
affect the remaining parts of this HOME Covenant which are hereby
declared by the parties to be severable from any other part which
is found by a court to be invalid or unenforceable .
Section 18 . Time is of the Essence. For each provision of
this HOME Covenant which states a specific amount of time within
which the requirements thereof are to be satisfied, time shall be
deemed to be of the essence.
Section 19. Notice. Any notice required to be given under
this HOME Covenant shall be given by the Agency or by the Qualified
Homebuyer, as applicable, by personal delivery or by First Class
United States mail at the addresses specified below or at such
other address as may be specified in writing by the parties hereto:
If to the Agency: Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Attn: Executive Director
Phone: (909) 663-1044
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If to the
Qualified Homebuyer:
Attn:
Phone:
Notice shall be deemed given five (5) calendar days after the date
of mailing to the party, or, if personally delivered, when received
by the Executive Director of the Agency or the Qualified Homebuyer,
as applicable .
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IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer
and the Agency have caused this HOME Covenant to be signed,
acknowledged and attested on their behalf by duly authorized
representatives in counterpart original copies which shall upon
execution by all of the parties be deemed to be one original
document. The recordation of this HOME Covenant is authorized
under Health and Safety Code Section 33334 .2 and other applicable
law.
PARTICIPANT
Neighborhood Housing Services of the
Inland Empire Inc. , a California
non-profit corporation
Date: By:
I
By:
QUALIFIED HOMEBUYER
Date: By:
By:
AGENCY
Redevelopment Agency of the City
of San Bernardino
Dated: By:
Executive Director
[ALL SIGNATURES MUST BE NOTARIZED]
Approved as to Form:
By:
Agency Counsel
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EXHIBIT "A"
Legal Description of the Property
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