HomeMy WebLinkAbout04- Development Department DEVELOPMENT DEPARTMENT
OF THE CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: KENNETH J.HENDERSON SUBJECT: INFILL HOUSING DEVELOPMENT
Executive Director PROGRAM
DATE: September 13, 1994
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Synopsis of Previous Commission/Council/Committee Action(s):
On September 13, 1994,the Housing Committee voted unanimously (2-0-1)(Oberhelman absent)to recommend to the
Community Development Commission approval of utilization of$300,000 in available FY 1994-95 low/mod housing
set-aside funds to facilitate construction of twenty-four(24)high single-family detached homes.
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Recommended Motion(s):
(Community Development Commission)
MOTION A: That the Community Development Commission approve utilization of$300,000 in available FY
1994-95 low/mod housing set-aside funds to facilitate construction of twenty-four(24)high quality
single-family detached homes in conjunction with Young Homes and the iniill Housing Development
Program.
Administrator KENN TH J.HEN A RSON
Executive Director
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Contact Person(s): Kenneth J.Henderson/Robert J.Lemley Phone: 5081
Project Area(s): Central City Project:Central City North:Uptown Ward(s): Two(2)
Supporting Data Attached: Staff Report:Owner Participation Agreement(O PA)
FUNDING REQUIREMENTS: Amount:$ 300.000 Source: Low/Mod
Budget Authority: Requested
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Commission/Council Notes:
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KJH:RJL:paw:nlilhsng.cdc COMMISSION MEETING AGENDA
MEETING DATE: 09/19/94
Agenda Item Number: _ q
t
DEVELOPMENT DEPARTMENT
OF THE ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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1NFILL HOUSING DEVELOPMENT PROGRAM
On December 6, 1993, the Community Development Commission, at the specific
recommendation of the Housing Committee, approved the designation of Young Homes as the
Agency sponsored infill developer replacing SSLM Ventures.
A major priority of the FY 1994-95 Housing Division budget will be implementation of a
Comprehensive Revitalization Strategy within the Central City area. One component of that
strategy addresses the "need" for high quality single-family infill development within that
community. The recently completed vacant land survey has identified in excess of 100
developable single-family lots within the Central City strategy area.
The overall purpose and intent of the Infill Housing Development Program is to construct high
quality single-family detached homes on a scattered site basis that will thereby set the "quality
standard" for future development within these neighborhoods. In addition, these homes also
serve to improve the surrounding community and to encourage individual property improvement
at a much higher quality level. Finally, the Infill Development Program addresses the need to
promote quality home ownership (vs. rental)throughout the community.
Through this program, the Agency will provide Young Homes with financial assistance necessary
to acquire vacant scattered lot properties located throughout the Central Revitalization area.
This assistance is required to facilitate quality development given the multiple impediments facing
potential infill builders. These impediments include the lack of available acquisition financing,
significant security issues, higher per home average building cost and the sales price "ceiling"
associated with infill (vs. tract) development.
Given the current San Bernardino Housing Market, quality residential builders will not (for
economic reasons) be motivated to acquire, construct, market and sell scattered site infill homes.
In an effort to facilitate the infill market, the Agency will provide acquisition financing directly to
Young Homes. Agency financing shall not exceed $15,000 per lot, at an acquisition rate of two
(2) lots per month (twenty-four(24) per fiscal year) and shall be repaid at the close of sale
escrow (please see attached flow chart).
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K.111:R.1L:paw:niilhsng.cdc COMMISSION MEETING AGENDA
MEETING DATE: 09/19/94!
Agenda Item Number: 'T
DEVELOPMENT DEPARTMENT STAFF REPORT
INFILL HOUSING DEVELOPMENT PROGRAM
September 13, 1994
PAGE - 2 -
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A portion of the Agency's repayment may, however, be utilized to assist eligible low/mod
income first-time home buyers with payment of required down payment/closing costs on the
subject properties. The maximum Agency assistance available to eligible first-time home buyers
would not exceed ten(10%) percent of the home purchase price (up to $5,000) and would be
fully repayable upon either resale, refinance or change in title.
Participation in the Infill Housing Development Program will be exclusively limited to low to
moderate income households (120% median income) with each of the homes also being sold at
an "affordable" price as established by California Redevelopment Law. To ensure these
standards are satisfied and/or adhered to, the Agency will record affordability and maintenance
covenants (CC&Rs) against each parcel, prior to construction.
On September 13, 1994, the Housing Committee voted unanimously(2-0-1) (Oberhelman
absent), to recommend to the Community Commission approval of utilization of$300,000 in
available FY 1994-95 low/mod housing set-aside funds to facilitate construction of twenty-four
(24) high single-family detached homes.
Based upon the significant benefits to the Central City Revitalization Strategy area, staff
recommends adoption of the form motion.
--1 �s
KENNETH . HENDERSON,. Executive Director
Development Department
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La KJH:RJL:paw:ntilhsng.cdc COMMISSION MEETING AGENDA
MEETING DATE: 00149/94 f
Agenda Item Number: T
SBEO/0001-82
3/2/94 10:15 sl
RECORDING REQUESTED BY:
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND WHEN RECORDED RETURN TO:
SABO & GREEN,
a Professional Corporation
Suite 400
6320 Canoga Avenue
Woodland Hills, California 91367
(Space Above for Recorder's Use)
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
INFILL HOUSING PARTICIPATION AGREEMENT
(YOUNG HOMES OF CALIFORNIA)
By and Between
REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO
and
YOUNG HOMES OF CALIFORNIA,
a California general partnership
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TABLE OF CONTENTS
Page
I. [100] SUBJECT OF AGREEMENT
A. [101] Purpose of Agreement . . . . . . . . . . . 1
B. [102] The Sites . . . . . . . . . . . . . . . . . 2
C. [103] Central City Target Area . . . . . . . . . 2
D. [104] Parties to the Agreement . . . . . . . . . 3
1. [105] The Agency . . . . . . . . . . . . . 3
2. [106] The Participant . . . . . . . . 3
3. [107] Prohibition Against Change in
Ownership, Management and
Control of the Participant . . . . . . 3
4. [108] Benefit to Project Area . . . . . . . 5
II. [200] AGENCY ASSISTANCE
A. [2 01] The Project . . . . . . . . . . . . . . . . 5
[202] Agency Assistance/Land Write-Down/
Second Trust Deeds . . . . . . . . . . 6
[203] Term of the Agency Assistance . . . . . . . 8
[204] Affordable Housing Cost . . . . . . . . . . 8
III. [300] IMPROVEMENT OF THE SITES
A. [301] Improvement by Participant . . . . . . . . 9
1. [302] Scope of Development . . . . . . . . 10
2 . [303] Cost of Construction . . . . . . . . 10
3. [304] Construction Schedule . . . . . . . 10
4. [305] Bodily Injury and
Property Damage Insurance . . . . . 11
5. [306] City and Other Governmental
Agency Permits . . . . . . . . . . . 12
6. [307] Rights of Access . . . . . . . . . . 13
7. [308] Local, State and Federal Laws . . . 13
8. [309] Antidiscrimination During
Construction . . . . . . . . . . . . 13
B. [310] Taxes, Assessments, Encumbrances
and Liens . . . . . . . . . . . . . . . . 14
C. [311] Prohibition Against Transfer of
the Site, the Buildings or
Structures Thereon and Assignment
of Agreement . . . . . . . . . . . . . . 14
0
Paae
D. [312] Mortgage, Deed of Trust, Sale
and Lease-Back Financing;
Rights of Holders . . . . . . . . . . . . 15
1. [313] No Encumbrances Except Mortgages,
Deeds of Trust or Sale
and Lease-Back for Development . . . 15
E. [314] Right of Agency to Satisfy Other
Liens On The Sites . . . . . . . . . . . 16
IV. [400] USES OF SITE; AFFORDABILITY COVENANTS
A. [401] Uses - Covenants Running With the Land 16
B. [402] Maintenance of the Sites . . . . . . . . 20
C. [403] Effect of Violation of the Terms
and Provisions of this Agreement
After Completion of Construction . . . . 21
V. [500] GENERAL PROVISIONS
A. [501] Notices, Demands and Communications
Between the Parties . . . . .
B. [502] Conflicts of Interest; Nonliability . . . 23
C. [503] Enforced Delay; Extension of
Times of Performance . . . . . . . . . . 23
D. [504] Inspection of Books and Records . . . . . 24
VI. [600] DEFAULTS AND REMEDIES
A. [601] Defaults - - General . . . . . . . . . . 24
B. [602] Legal Actions . . . . . . . . . . . . . . 25
1. [603] Institution of Legal Actions . . . . 25
2. [604] Applicable Law . . . . . . . . . . . 25
3 . [605] Acceptance of Service of Process . . 26
C. [606] Rights and Remedies are Cumulative . . . 26
D. [607] Inaction Not a Waiver of Default . . . . 26
E. [608] Remedies . . . . . . . . . . . . . . . . 26
1. [609] Damages . . . . . . . . . . . . . . 26
VII. [700] SPECIAL PROVISIONS
A. [701] Submission of Documents to
Agency for Approval . . . . . . . . . . . 27
B. [702] Successors in Interest . . . . . . . . . 27
VIII. [800] ENTIRE AGREEMENT, WAIVERS . . . . . . . . . . 28
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P- age
IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
A. [901] Time for Acceptance . . . . . . . . . . . 29
ATTACHMENT NO. 1 - GRANT DEED
ATTACHMENT NO. 2 - DEED OF TRUST
ATTACHMENT NO. 3 - HEALTH AND SAFETY CODE SECTION 50052 . 5
ATTACHMENT NO. 4 - SCOPE OF DEVELOPMENT
ATTACHMENT NO. 5 - SCHEDULE OF PERFORMANCE
ssEO/0001-82
3/2/94 10:15 A
INFILL HOUSING PARTICIPATION AGREEMENT
THIS AGREEMENT IS ENTERED INTO this ILA day of
1994, by and between the REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO (the "Agency") and YOUNG HOMES OF
CALIFORNIA, a California general partnership (the "Participant") .
Agency and Participant hereby agree as follows:
I. [100] SUBJECT OF AGREEMENT
A. [101) Purpose of Agreement
The purpose of this Agreement is to effectuate various
redevelopment plans for the City of San Bernardino (the "City") and
specifically the Central City Redevelopment Plan, by providing for
Agency assistance to Participant for the residential development of
various scattered Sites, as hereinafter defined, within the City.
The development of the Sites pursuant to this Agreement is in the
vital and best interests of the City and the health, safety and
welfare of its residents, and in accord with the public purposes
and provisions of applicable state and local laws. The Community
Development Commission, acting on behalf of the Agency, has
determined that the development and uses contemplated by this
Agreement will benefit the low- and moderate-income housing needs
of the City as well as the various redevelopment project areas of
the City, and has authorized the use of funds from the Agency's
Awft Low- and Moderate-Income Housing Fund.
f.
B. [102] The Sites
The Sites shall include certain parcels of land located
within the Central City Redevelopment Project Area of the City and
in neighborhoods adjacent thereto. Each of the parcels must be
pre-approved by the Agency in writing for the purposes of causing
the development of single family residential units thereon by the
Participant in order to provide low- and moderate-income housing
and such Sites shall hereinafter be collectively referred to as the
"Sites" . It is the express intent of the parties hereto that the
Participant will attempt to acquire those parcels within the City
which evidence the highest degrees of blight and are most in need
of redevelopment, and the Agency's approval of each Site will be
based upon compliance with this intent. In addition, the Agency
may itself acquire certain Sites and transfer such Sites to the
Participant in order to cause their development in accordance with
the provisions of the Agreement.
C. [103] Central City Target Area
The Agency anticipates that most, if not all, of the
Sites to be selected will be within that portion of the City
bounded on the north by Highland Avenue, on the south by Rialto
Avenue, on the west by Mt. Vernon Avenue and on the east by
Waterman Avenue. Such area shall hereinafter be referred to as the
"Central City Target Area" .
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D. [104] Parties to the Agreement
1. [105] The Agency
The Agency is a public body, corporate and politic,
exercising governmental functions and powers and organized and
existing under Chapter 2 of the Community Redevelopment Law of the
State of California (Health and Safety Code Section 33020, At sea. )
The principal office of the Agency is located at 201 North "E"
Street, San Bernardino, California 92401.
"Agency", as used in this Agreement, includes the
Community Development Commission of the City of San Bernardino, the
Economic Development Agency of the City of San Bernardino, the
Redevelopment Agency of the City of San Bernardino, and any
assignee of or successor to their rights, powers and
responsibilities.
2 . [106] The Participant
The Participant is a general partnership licensed to do
business in the State of California. The principal office and
mailing address of the Participant for purposes of this Agreement
is: Young Homes of California, 15351 Gale Avenue, Hacienda Heights,
California 91745.
3 . [107] Prohibition Against Change in Ownership
Management and Control of the Participant
The qualifications and identity of the Participant are of
Particular concern to the Agency. It is because of those
qualifications and identity that the Agency has entered into this
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Agreement with the Participant. No voluntary or involuntary
successor in interest of the Participant shall acquire any rights
or powers under this Agreement except as expressly set forth
herein.
The Participant shall not assign all or any part of this
Agreement or any rights hereunder without the prior written
approval of the Agency, which approval the Agency may grant,
withhold or deny at its discretion. In the event of such transfer
or assignment: (1) the assignee shall expressly assume the
obligations of the Participant pursuant to this Agreement in
writing satisfactory to the Agency; (2) the original Participant
shall remain fully responsible for the performance and liable for
the obligations of the Participant pursuant to this Agreement; and
(3) any guarantees provided to assure the performance of the
Participant's obligations under this Agreement shall remain in full
force and effect.
In the absence of specific written agreement by the
Agency, no such transfer, assignment or approval by the Agency
shall be deemed to relieve the Participant or any other party from
any obligation under this Agreement.
All of the terms, covenants and conditions of this
Agreement shall be binding upon and shall inure to the benefit of
the Participant and the permitted successors and assigns of the
Participant. Whenever the term "Participant" is used herein, such
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term shall include any other permitted successors and assigns as
herein provided.
The restrictions of this Section 107 shall terminate and
be of no further force and effect upon completion of all portions
of the Project as evidenced by a Certificate of Completion.
Nothing in this Section 107 shall act to restrict the sale of
completed residential units developed on a Site to qualified
purchasers if said sales are otherwise in compliance with the terms
of this Agreement.
4 . [108) Benefit to Project Areas
Agency has determined that the development of the Sites
in accordance with this Agreement will eliminate blight and provide
needed low- and moderate-income housing to the various project
areas of the Agency as well as to areas in proximity thereto which
housing is needed due to the insufficiency of such housing within
the City generally.
II. [200) AGENCY ASSISTANCE
A. [201] The Project
The Participant shall develop the Sites by acquiring the
Sites, either from the Agency or from the current owners thereof,
and thereafter causing the development of single family residential
units thereon in order to provide for their sale and occupancy by
low and moderate income households (the "Project") . The
Participant shall use best efforts to acquire Sites which are
located within the Central City Target Area and further agrees that
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it shall initially cause the construction of residential units on
at least five (5) Sites and thereafter may, upon the written
consent of the Agency, cause the development of at least ten (10)
Sites in each subsequent fiscal year.
B. (202) Agency Assistance/Land Write-Down/Second Trust
Deeds
In order to assist in the development of the Project and
marketability of the Project, the Agency agrees to provide certain
Agency assistance (the "Agency Assistance") in one of two forms as
follows:
(a) The Agency may provide land write-down assistance
whereby the Agency would acquire a Site and transfer title to a
particular Site at no cost to the Participant for development of
the Site in accordance with the terms of this Agreement. Such
transfer of title would be pursuant to a Grant Deed substantially
in the form of Attachment No. 1 attached hereto and incorporated
herein by this reference, which would incorporate the terms and
conditions of this Agreement and the Participant would also execute
a Deed of Trust in favor of the Agency substantially in the form of
Attachment No. 2 attached hereto and incorporated herein by this
reference which Deed of Trust would secure Participant's
performance under the terms of this Agreement; or
(b) the Agency may provide first-time homebuyer down
IL J payment assistance, whereby the Agency would, either directly or
through a third party chosen solely at the discretion of the
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Agency, make loans, secured by second trust deeds, to certain
eligible purchasers who are of low and moderate income as defined
in Health & Safety Code Section 50093 and who seek to purchase
residences developed on the Sites. The down payment mortgage
assistance for any Site shall be in an amount up to ten percent
(10%) of the purchase price provided, however, that the total
amount shall not exceed Twenty Thousand Dollars ($20, 000) for any
given Site.
All assistance provided by the Agency under this
Agreement will be in compliance with the Agency's Mortgage
Assistance Program ("MAP") guidelines, as those guidelines may be
amended from time-to-time.
The aggregate amount of the Agency Assistance for the
1993-94 fiscal year shall not exceed One Hundred Thousand Dollars
($100, 000) and the aggregate amount of the Agency Assistance for
any future fiscal years, if any, shall be established by and
determined in accordance with the Agency's approved budget for any
such fiscal year.
The purpose of the write-down assistance and the
homebuyer loans will be to structure an overall financing package
for low- and moderate-income purchasers who comply with certain
requirements so that the units will be purchased at affordable
housing costs. The Agency shall provide to the Participant the
parameters of its MAP program, including the income limits,
adjusted for family size, that shall apply to the purchase of the
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residential units to be developed on any given Sites. The
Participant agrees to be bound by all limitations to be established
by the Agency and/or any Conditions and Covenants and Restrictions
as may be imposed by the Agency applicable to the Sites, as to
income limits and maximum sales price limits for the residences on
the Sites.
C. [203] Term of the Agency Assistance
The Agency and the Participant agree that the provision
of the Agency Assistance shall only apply during the 1993-94 fiscal
year provided, however, that to the extent the Executive Director
of the Agency deems appropriate, in his sole discretion, the Agency
may make the Agency Assistance available in accordance with the
provisions of this Agreement for any subsequent fiscal year to the
extent that the Agency has approved the allocation of revenues
therefor in accordance with its approved annual budget. In such
event, all of the terms and conditions of this Agreement may be
extended upon the written approval of the Executive Director.
D. [204] Affordable Housing Cost
For the purposes of complying with this Agreement, all
Sites, upon completion of the construction work, shall be sold to
low and moderate income households at affordable housing cost as
such term is defined in Health and Safety Code Section 50052 . 5, a
copy of which is attached hereto as Attachment No. 3 and
incorporated herein by this reference. The Participant agrees to
be bound by all limitations to be established by the Agency and/or
any Conditions and Covenants and Restrictions as may be imposed by
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the Agency applicable to the Sites, as to both income limits and
affordability criteria and shall provide the Agency with all
relevant information, as may be requested from time to time by the
Agency, to ensure compliance with this Section.
The Participant shall be responsible for ensuring that
all documents required of such low- and moderate-income households
are executed and forwarded to the Agency, including, but not
limited to, the Affordability Criteria Verification Worksheet and
Mortgage Assistance Program Final Applicant Report attached to this
Agreement as Attachments No. 4 and 5, respectively.
III. [300] IMPROVEMENT OF THE SITES
A. [301] Improvement by Participant
Participant and Agency agree that the central purpose of
this Agreement is to provide for the construction on the Sites of
single family residences in a manner consistent with the
redevelopment goals of the Agency, to be occupied by low- and
moderate-income households. All of said homes will be of high
quality and will be developed in accordance with Agency guidelines.
With respect to each Site, the Agency shall have the
right to approve in writing all of the plans including but not
limited to landscaping plan, designs, and specifications of each
residential unit to be constructed on a Site as well as the
proposed marketing plan for each Site prior to the commitment of
any funds representing the Agency Assistance. Such right shall be
exercised at the Agency's sole discretion.
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1. [302] Scope of Development
Each Site shall be developed by Participant as provided
in the "Scope of Development", which is attached hereto as
Attachment No. 6 and is incorporated herein.
2 . [303] Cost of Construction
The costs of undertaking the Project, including the costs
of construction of the improvements, marketing and sales shall be
borne solely by Participant. The Agency shall have no obligations,
other than as expressly set forth herein, with respect to the
funding of the Project.
3 . [304] Construction Schedule
Upon execution of this Agreement, Participant will
promptly begin and diligently prosecute to completion the
undertaking of the Project. The Participant agrees that it shall
cause the construction of at least five (5) single family
residences on five (5) Sites prior to June 30, 1994, and thereafter
shall cause the development of at least ten (10) Sites within any
given fiscal year. Performance by Participant hereunder will be in
accordance with the provisions of the Schedule of Performance
attached hereto as Attachment No. 7 and incorporated herein by
reference. A failure to meet any time deadline set forth in the
Schedule of Performance shall terminate the Agency's obligation to
provide any Agency Assistance to any Site or all or any portion of
the Project.
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4. (305] Bodily Injury and Property Damage
Insurance
Participant shall defend, assume all responsibility for
and hold the Agency, the City and their respective officers, agents
and employees, harmless from all claims or suits for, and damages
to, property and injuries to persons, including accidental death
(including attorneys' fees and costs) , which may be caused by any
of Participant's activities under this Agreement, whether such
activities or performance thereof be by the Participant or anyone
directly or indirectly employed or contracted with by Participant
and whether such damage shall accrue or be discovered before or
after termination of this Agreement. Participant shall take out
and maintain a comprehensive liability and property damage policy
in the amount of One Million Dollars ($1, 000, 000) combined single
limit policy, including contractual public liability, as shall
protect Participant, City and Agency from claims for such damages
until two (2) years after the completion of the Project.
Participant shall furnish a certificate of insurance
countersigned by an authorized agent of the insurance carrier on a
i
form of the insurance carrier setting forth the general provisions
of the insurance coverage. This countersigned certificate shall
name the City and Agency and their respective officers, agents, and
employees as additional insureds under the policy. The certificate
by the insurance carrier shall contain a statement of obligation on
the part of the carrier to notify City and the Agency of any
material change, cancellation or termination of the coverage at
least thirty (30) days in advance of the effective date of any such
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material change, cancellation or termination. Coverage provided
hereunder by Participant shall be primary insurance and not
contributing with any insurance maintained by Agency or City, and
the policy shall contain such an endorsement. The insurance policy
or the certificate of insurance shall contain a waiver of
subrogation for the benefit of the City and Agency.
Participant shall furnish or cause to be furnished to
Agency evidence satisfactory to Agency that any contractor with
whom it has contracted for the performance of work on any Site or
otherwise pursuant to this Agreement carries workers compensation
insurance as required by law.
5. [306] City and Other Governmental Agency Permits
Before providing the Agency Assistance or any portion
thereof and/or commencement of the Project or other construction or
development of any buildings, structures or other works of
improvement upon any Site, Participant shall, at its own expense,
secure or cause to be secured any and all permits for all necessary
off-site improvements which may be required by the City or any
other governmental agency having jurisdiction over such
construction, development or work.
Nothing contained in this Agreement shall be deemed to be
an approval by the City of any application or permit required to be
obtained by Participant from the City.
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6. [307] Rights of Access
For the purpose of assuring compliance with this
Agreement, representatives of Agency and the City shall have the
right of access to any Site, without charges or fees, at normal
construction hours during the period of work for the purposes of
this Agreement, including, but not limited to, the inspection of
the work being performed in constructing the improvements, so long
as they comply with all safety rules. Such representatives of
Agency or of the City shall be those who are so identified in
writing by the Executive Director of Agency. Agency shall hold the
Participant harmless from any bodily injury or related damages
arising out of the activities of Agency and the City as referred to
in this Section 307 and resulting from the gross negligence or
willful misconduct of the City or Agency. This Section 307 shall
not be deemed to diminish or limit any rights which the City or
Agency may have by operation of law irrespective of the Agreement.
7. [308] Local, State and Federal Laws
Participant shall carry out the construction of the
Project and all related activities on any Site in conformity with
all applicable laws, including all applicable federal and state
labor standards; provided, however, Participant and its
contractors, successors, assigns, transferees, and lessees are not
waiving their rights to contest any such laws, rules or standards.
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8. [309] Antidiscrimination During Construction
Participant, for itself and successors and assigns,
agrees that in the construction of the improvements provided for in
this Agreement, Participant shall not discriminate against any
employee or applicant for employment because of race, color, creed,
religion, age, sex, marital status, handicap, national origin or
ancestry.
B. [310] Taxes, Assessments, Encumbrances and Liens
Prior to the issuance of a Certificate of Occupancy for
any residence developed on a Site, Participant shall not place or
allow to be placed on such Site or any part thereof any mortgage,
trust deed, encumbrance or lien other than as expressly approved by
the Agency in writing. Participant shall remove or have removed
any levy or attachment made on any of the Sites or any part
thereof, or assure the satisfaction thereof within a reasonable
time but in any event prior to a sale thereunder.
C. [311] Prohibition Against Transfer of the Site the
Buildings or Structures thereon and Assignment
of Agreement
1. Prior to the issuance by the Agency of a Certificate
of Completion as to any building or structure, Participant shall
not, except as permitted by this Agreement, without the prior
written approval of Agency, make any total or partial sale,
transfer, conveyance, assignment or lease of whole or any part of
any Site or of the buildings or structures on the applicable Site.
This prohibition shall not be deemed to prevent a transfer
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expressly permitted pursuant to Section 107 of this Agreement, or
the granting of temporary or permanent easements or permits to
facilitate the development of the Sites.
2 . Upon obtaining a Certificate of Occupancy from the
City of San Bernardino for the residential unit developed on a
Site, the Participant shall use best efforts to sell such unit in
accordance with and subject to the restrictions set forth in this
Agreement.
3 . The deed to any purchasers of the residential units
shall require that the units be owner occupied by persons living in
the units as their principal residences and shall further require
that such units shall remain available at affordable housing costs
to the families of low- and moderate-income for a period of not
less than ten (10) years subject to any exceptions as may be
provided by the Agency.
D. [312] Mortgage, Deed of Trust Sale and Lease-Back
Financing; Rights of Holders
1. [313] No Encumbrances Except Mortgages Deeds
of Trust or Sale and Lease-Back for
Development
Mortgages, deeds of trust and sales and lease-back are to be
permitted before completion of the construction of the
improvements, but only for the purpose of securing loans of funds
to be used for financing the acquisition of any Site, the
construction of improvements on any Site, and any other purposes
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necessary and appropriate in connection with development under this
Agreement. Participant shall not enter into any other conveyance
or lien for financing without the prior written approval of Agency,
which approval Agency agrees to give if any such conveyance or lien
for financing is given to a bank, savings and loan association, or
other similar lending institution and the terms of said financing
are reasonably acceptable to Agency. The form of approval by
Agency shall be in writing which references this Section 313 ,
executed by the Executive Director of the Agency. In the event
that the Agency fails to accept or reject such lender in writing
within fifteen (15) days after written notice thereof is received
by the Agency, such lender shall be deemed approved.
E. [314] Right of Agency to Satisfy Other Liens On The
Sites
Prior to the completion of the development on any given
Site, and after Participant has had written notice and has failed
after a reasonable time, but in any event not less than fifteen
(15) days, to challenge, cure, adequately bond against, or satisfy
any liens or encumbrances on a Site which are not otherwise
permitted under this Agreement, Agency shall have the right but not
the obligation to satisfy any such liens or encumbrances.
IV. [400] USES OF SITE; AFFORDABILITY COVENANTS
A. [401] Uses - Covenants Running With the Land
Participant covenants and agrees for itself, its
successors, its assigns, and every successor in interest to any
Site or any part thereof, that for a period of ten (10) years
- 16 -
commencing on the date of the issuance by City of the Certificate
of Occupancy on each of the residences to be developed by
Participant on the Sites will be devoted to and available for sale
solely to persons or families with an income which are low and
moderate to very low, as those terms are defined in Health and
Safety Code Sections 50093 (low and moderate income) and 50105
(very low income) , with sales costs of each residential unit to be
at an affordable housing cost (as such term is defined in Health
and Safety Code Section 50052 . 5, a copy of which is attached hereto
as Attachment No. 3) .
The foregoing covenants shall run with the land for ten
(10) years commencing on the date that the City issues the
Certificate of Occupancy on each of the residences.
The Agency shall, after the date of this Agreement,
consider and adopt guidelines and restrictions as it deems
necessary for compliance with the provisions contained in the
California Community Redevelopment Law and in particular, those
Sections thereof that permit the use of the Agency's Low- and
Moderate-Income Housing Fund. The Participant acknowledges that
the source of funds to be utilized to fulfill the Agency's
financial commitments under this Agreement shall be tax increment
revenues on deposit in the Agency's Low- and Moderate-Income
Housing Fund. The Community Redevelopment Law, and in particular,
Health and Safety Code Section 33334 . 31 requires the Agency to
impose certain limitations on the income of prospective purchasers
of the units and the maximum sales price of the units, based upon
- 17 -
MIN
U 0
affordability as may be determined by the Agency. The Participant
agrees to include within the content of the grant deed and any
other appropriate disclosure documents as may be reasonably
necessary to implement this Agreement, such provisions as are
necessary in furtherance of the guidelines and restrictions to be
adopted by the Agency pursuant to this section as a means of
complying with the intent of said Health and Safety Code
Section 33334. 3.
The Participant further covenants and warrants that
Participant shall develop improvements on the Sites in accordance
with the Scope of Development. Participant covenants to develop
the Sites in conformity with all applicable laws. The covenants of
this paragraph shall run with the land.
Participant covenants by and for itself and any
successors in interest that there shall be no discrimination
against or segregation of any person or group of persons on account
of race, color, creed, religion, sex, marital status , age,
handicap, national origin or ancestry in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of any Site, nor
shall Participant itself or any person claiming under or through it
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees of the Sites. The foregoing covenants shall
run with the land.
- 18 - (�
All deeds, leases or contracts pertaining to the Sites
shall contain or be subject to substantially the following
nondiscrimination or non-segregation clauses:
1. In deeds: "The grantee herein covenants by and for
himself or herself, his or her heirs, executors, administrators and
assigns, and all persons claiming under or through them, that there
shall be no discrimination against or segregation of, any person or
group of persons on account of race, color, creed, religion, sex,
marital status, age, handicap, national origin or ancestry in the
sale, lease, sublease, transfer, use, occupancy, tenure or
enjoyment of the land herein conveyed, nor shall the grantee
himself or herself or any person claiming under or through him or
her, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees in the land herein conveyed. The foregoing
covenants shall run with the land. "
2. In leases: "The lessee herein covenants by and for
A
himself or herself, his or her heirs, executors, administrators and
assigns, and all persons claiming under or through him or her, that
this lease is made and accepted upon and subject to the following
conditions: "There shall be no discrimination against or
segregation of any person or group of persons on account of race,
color, creed, religion, sex, marital status, handicap, age,
ancestry or national origin in the leasing, subleasing,
transferring, use, occupancy, tenure or enjoyment sale, lease,
- 19 -
f /
sublease, transfer, use, occupancy, tenure or enjoyment of the
premises herein leased nor shall the lessee himself or herself, or
any person claiming under or through him or her, establish or
permit any such practices or practices of discrimination or
segregation with reference to the selection, location, number, use
or occupancy of tenants, lessees, sublessees, subtenants or vendees
in the premises herein leased. "
3 . In contracts: "There shall be no discrimination
against or segregation of, any person, or group of persons on
account of race, color, creed, religion, sex, marital status, age,
handicap, ancestry or national origin, in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the
premises, nor shall the transferee himself or herself or any person
claiming under or through him or her, establish or permit any such
practice or practices of discrimination or segregation with
reference to the selection, location, number use or occupancy of
tenants, lessees, subtenants, sublessees or vendees of the
premises. "
B. [402] Maintenance of the Sites
Participant shall, until sale of each of the residential
units, maintain all Sites or portions thereof which remain unsold
and all other improvements on the Sites and shall keep the Sites
free from any accumulation of debris or waste materials.
Participant further agrees to maintain the Sites in a
neat and attractive manner until construction of the improvements
- 20 -
t /
described in this Agreement is complete so as not to, in the
reasonable determination of an appropriate officer of the City, be
a public nuisance, or be detrimental to the health, safety and
welfare of the public, or impair value of property within one
thousand (1, 000) feet of the Sites, and agrees that in the event
Participant fails to do so, Agency may enter upon the applicable
Site for the purposes of performing necessary and desirable
maintenance, that Participant will be responsible for the cost of
any such maintenance undertaken by Agency, which shall be paid
within thirty (30) days after receipt by Participant of written
demand therefor.
C. [403] Effect of Violation of the Terms and
Provisions of this Agreement After Completion
of Construction
The covenants established in this Agreement shall,
without regard to technical classification and designation, be
binding for the benefit and in favor of Agency, its successors and
assigns, as to those covenants which are for its benefit. The
covenants contained in this Agreement shall remain in effect until
the termination date of the Redevelopment Plan unless an earlier
date is specified. The covenants against racial discrimination
shall remain in perpetuity.
Agency is deemed the beneficiary of the terms and
provisions of this Agreement and of the covenants running with the
land, for and in its own rights and for the purposes of protecting
the interests of the community and other parties, public or
- 21 -
private, in whose favor and for whose benefit this Agreement and
the covenants running with the land have been provided. Agency
shall have the right, if the Agreement or covenants are breached,
to exercise all rights and remedies, and to maintain any actions or
suits at law or in equity or other proper proceedings to enforce
the curing of such breaches to which it or any other beneficiaries
of this Agreement and covenants may be entitled.
V. [500] GENERAL PROVISIONS
A. [501] Notices, Demands and Communications Between
the Parties
written notices, demands and communications between
Agency and Participant shall be sufficiently given if delivered by
hand (and a receipt therefor is obtained or is refused to be given)
or dispatched by registered or certified mail, postage prepaid,
return receipt requested, to the principal offices of Agency and
Participant. Such written notices, demands and communications may
be sent in the same manner to such other addresses as such party
may from time to time designate by mail as provided in this
Section 501.
Any written notice, demand or communication shall be
deemed received immediately if delivered by hand and shall be
deemed received on the tenth day from the date it is postmarked if
delivered by registered or certified mail.
22 - I
B. [502] Conflicts of Interest; Nonliability
No member, official or employee of Agency or the City
shall have any personal interest, direct or indirect, in this
Agreement. No member, official or employee shall participate in
any decision relating to the Agreement which affects his personal
interests or the interests of any corporation, partnership or
association in which he is directly or indirectly interested. No
member, official or employee of Agency or the City shall be
personally liable to Participant, or any successor in interest, in
the event of any default or breach by Agency or Participant, or for
any amount which may become due to Participant or its successor or
on any obligations under the terms of this Agreement.
Participant represents and warrants that it has not paid
or given, and shall not pay or give, any third party any money or
other consideration for obtaining this Agreement.
C. [503] Enforced Delay; Extension of Times of
Performance
In addition to specific provisions of this Agreement,
performance by either party hereunder shall not be deemed to be in
default, and all performance and other dates specified in this
Agreement shall be extended, where delays or defaults are due to:
war; insurrections; floods; earthquakes; fires; casualties; acts of
God; acts of the public enemy; freight embargoes; governmental
restrictions or priority; litigation; unusually severe weather;
acts or omissions of another party; acts or failures to act of the
City or any other public or governmental agency or entity (other
- 23 -
than the acts or failures to act of Agency which shall not excuse
performance by Agency) ; or any other causes beyond the control or
without the fault of the party claiming an extension of time to
perform. Notwithstanding anything to the contrary in this
Agreement, an extension of time for any such cause shall be for the
period of the enforced delay and shall commence to run from the
time of the commencement of the cause, if notice by the party
claiming such extension is sent to the other party within thirty
(30) days of the commencement of the cause. Times of performance
under this Agreement may also be extended in writing by the mutual
agreement of Agency and Participant.
D. [504] Inspection of Books and Records
Agency has the right at all reasonable times to inspect
the books and records of Participant pertaining to any Site as
pertinent to the purposes of this Agreement. Participant has the
a
right at all reasonable times to inspect the public records of
Agency pertaining to any Site as pertinent to the purposes of the
Agreement.
VI. [600] DEFAULTS AND REMEDIES
A. [601] Defaults - - General
Subject to the extensions of time set forth in
Section 503, failure or delay by any party to perform any term or
Provision of this Agreement constitutes a default under this
Agreement. The party who so fails or delays must immediately
commence to cure, correct, or remedy such failure or delay, and
shall complete such cure, correction or remedy with diligence.
- 24 -
C
The injured party shall give written notice of default to
the party in default, specifying the default complained of by the
injured party. The injured party may not institute proceedings
against the party in default until thirty (30) days after giving
such notice. Failure or delay in giving such notice shall not
constitute a waiver of any default, nor shall it change the time of
default.
B. [602] Legal Actions
1. [603] Institution of Legal Actions
In addition to any other rights or remedies hereunder,
Agency or Participant may institute legal action to cure, correct
or remedy any default, to recover damages for any default, or to
obtain any other remedy consistent with the purpose of this
Agreement. Any legal actions initiated pursuant to this Agreement
or otherwise with respect to this subject matter must be instituted
in the Superior Court of the County of San Bernardino, State of
California, or in an appropriate municipal court in that county.
2 . [604] Applicable Law
I
The laws of the State of California shall govern the
interpretation and enforcement of this Agreement.
25 -
3 . [605] Acceptance of Service of Process
In the event that any legal action is commenced by any
party against another party, service of process on such party shall
be made by personal service upon such party or in such other manner
as may be provided by law, and shall be valid whether made within
or without the State of California.
C. [606] Rights and Remedies are Cumulative
Except as otherwise expressly stated in this Agreement,
the rights and remedies of the parties are cumulative, and the
exercise by any party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different
times, of any other rights or remedies for the same default or any
other default by any other party.
D. [607] Inaction Not a Waiver of Default
Any failures or delays by any party in asserting any of
its right and remedies as to any default shall not operate as a
waiver of any default or of any such rights or remedies, or deprive
any party of its right to institute and maintain any actions or
proceedings which it may deem necessary to protect, assert or
enforce any such rights or remedies.
E. [608] Remedies
1. [609] Damages
Prior to completion of the Project, if either Participant
or Agency defaults with regard to any of the provisions of this
Agreement, the non-defaulting party shall serve written notice of
- 26 -
such default upon the defaulting party. If the default is not
cured or if a cure has not been commenced and is being diligently
pursued to completion by the defaulting party within thirty (30)
days after service of the notice of default, the defaulting party
shall be liable to the other for any damages caused by such
default, and the non-defaulting party shall have the right to seek
specific performance and such other remedies as are available in
law or equity.
VII. [700] SPECIAL PROVISIONS
A. [701] Submission of Documents to Agency for Approval
Whenever this Agreement requires Participant to submit
any document to Agency for approval, which shall be deemed approved
if not acted on by Agency within the specified time, said document
shall be accompanied by a letter stating that it is being submitted
and will be deemed approved unless rejected by Agency within the
stated time. If there is not a time specified herein for such
Agency action, Participant may submit a letter requiring Agency
approval or rejection of documents within thirty (30) days after
submission to Agency or such documents shall be deemed approved.
B. [702] Successors in Interest
The terms, covenants, conditions and restrictions of this
Agreement shall extend to and shall be binding upon and inure to
the benefit of the heirs, executors, administrators, successors and
assigns of Participant.
27 -
VIII. [800) ENTIRE AGREEMENT, WAIVERS
This Agreement is executed in four (4) duplicate
originals, each of which is deemed to be an original. This
Agreement includes five Attachments, which together with this
Agreement constitute the entire understanding and agreement of the
parties.
No private entity shall be deemed to be a third party
beneficiary with respect to any provisions of this Agreement.
This Agreement integrates all of the terms and conditions
mentioned herein or incidental hereto, and supersedes all
negotiations or previous agreements among the parties or their
predecessors in interest with respect to all or any part of the
subject matter hereof.
All waivers of the provisions of this Agreement must be
in writing by the appropriate authorities of the Agency and
Participant, and all amendments hereto must be in writing by the
appropriate authorities of Agency and Participant, except that the
Executive Director of Agency may agree to non-substantive changes
hereto with concurrence by Agency counsel.
Each individual signing below represents and warrants
that he has the authority to execute this Agreement on behalf of
and bind the party he purports to represent.
- 28 -
IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
A. (901) Time for Acceptance
This Agreement, when executed by Participant and
delivered to Agency, must be authorized, executed and delivered by
Agency on or before thirty (30) days after signing and delivery of
this Agreement by Participant or this Agreement shall be void,
except to the extent that Participant shall consent in writing to
a further extension of time for the authorization, execution and
delivery of this Agreement. The date of this Agreement shall be
the date when it shall have been signed by the Agency as evidenced
by the date first above shown.
29 -
ATTACHMENT NO. 1
GRANT DEED
�I
ATT. 1 - Page 1
ATTACHMENT NO. 2
DEED OF TRUST
ATT. 2 - Page 1
O
ATTACHMENT NO. 3
HEALTH AND SAFETY CODE SECTION 50052 .5
ATT. 3 - Page 1 ,/
AWN
ATTACHMENT NO. 4
AFFORDABILITY CRITERIA VERIFICATION WORKSHEET
ATT. 4 - Page 1
ATTACHMENT NO. 5
MORTGAGE ASSISTANCE PROGRAM
FINAL APPLICANT'S REPORT
ATT. 5 - Page 1
ATTACHMENT NO. 6
SCOPE OF DEVELOPMENT
I. GENERAL DESCRIPTION
The Participant will acquire existing blighted housing or
lots, with each specific Site subject to prior written Agency
approval, and cause the development and resale of the housing
thereon.
II. DEVELOPMENT
Participant shall develop the Site by constructing homes
of varying square footage.
Each home shall have a work write-up acceptable to both
the Agency and the Participants.
Participant agrees to expend a construction cost of
approximately $ per square foot for each residence,
exclusive of fees, off-site improvements, engineering or loan
costs.
All of the improvements to be provided by the Participant
on the Site constitute the "Project. "
III. DEVELOPMENT STANDARDS
The Project shall be developed in accordance with
applicable building and safety codes.
IV. DEMOLITION AND SOILS
Participant assumes all responsibility for surface and
subsurface conditions at the Site, and the suitability of the Site
for the Project. If the surface and subsurface conditions are not
entirely suitable for such development and use, Participant shall
at its cost take all actions necessary to render the Site entirely
suitable for such development. Participant has undertaken all
investigation of the Site it has deemed necessary and has not
received or relied upon any representations of Agency, the City, or
their respective officers, agents and employees. Participant shall
undertake at its cost all demolition required in connection with
the development of the Project.
ATT. 6 - Page 1
0
I
ATTACHMENT NO. 7
SCHEDULE OF PERFORMANCE
(Applicable to MAP assisted sites
or Acquisition assisted sites)
The construction of housing to be performed under the
terms of the Agreement shall be accomplished in (_) phases.
Phase I shall consist of five (5) residential properties, and shall
be completed by , 1994. Phase II shall consist of ten
(10) residential properties to be completed by .
III shall consist of ten (10) residential propertie to be
purchased, developed and sold during each of the Agency's fiscal
years, commencing on The specific time frames for
the elements of each Phase is set forth below.
A failure to meet any one of the time deadlines set forth
below shall, at the Agency's sole discretion, terminate any future
obligation on the part of the Agency to provide any further Agency
Assistance under the terms of the Agreement.
Phase I
(5 residential properties)
To Be Completed BY:
1. Acquisition of all Sites.
2 . Agency Approval of Design
and architectural plans
3. Agency Approval of all
construction plans and
specifications
4. Construction of all
residences on the Sites.
5. Completion of all Sites
6. Marketing of all
residences.'
' Marketing is defined as the opening of bona fide escrows on
all residential properties in the subject Phase, with purchasers
acceptable to the Agency, by the deadline indicated. Each of said
escrows must close not later than 90 days after the indicated
marketing deadline or the Agency shall be excused from providing
further assistance on that Phase or any subsequent Phase.
ATT. 7 - Page 1 L�
Phase II
(10 residential properties)
To Be Completed By:
1. Acquisition of all Sites.
2. Agency Approval of Design
and architectural plans
3. Agency Approval of all
construction plans and
specifications
4. Construction of all
residences on the Sites.
5. Completion of all Sites
6. Marketing of all
developed residences
Phase III
(10 residential properties in each
subsequent Agency fiscal year)
To Be Completed By:
1. Acquisition of all Sites. not later than
2. Agency Approval of Design
and architectural plans not later than
3. Agency Approval of all
construction plans and
specifications not later than
4. Construction of all
residences on the Sites. not later than
5. Completion of all Sites not later than
6. Marketing of all
residences. not later than
The time deadlines for Phase III may be adjusted as
reasonably required to meet changing circumstances, subject to the
written approval of the Executive Director of the Agency.
ATT. 7 - Page 2
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