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05.E- CA Dept Housing and Community Development - Housing Related Parks Application
5.E RESOLUTION (ID # 4279) DOC ID: 4279 C CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Grant From: Bill Manis M/CC Meeting Date: 02/01/2016 Prepared by: Brandon Mims, (909) 384- 5122 Dept: City Manager Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the Submittal of a Housing Related Parks Program Application to the California Department of Housing and Community Development. (#4279) Current Business Registration Certificate: Not Applicable Financial Impact: It is anticipated that the City could receive approximately $400,000 in funding from the HRP Program. There is no match requirement for HRP Program funds. Therefore, there would be no fiscal impact to the City's General Fund. Motion: Adopt the Resolution. Background: Recently, HCD announced through a Notice of Funding Availability (NOFA) that applications are being accepted under the HRP Program (HRPP). The NOFA is for approximately $35 million from the passage of Proposition 1C, the Housing and Emergency Shelter Trust Fund Act of 2006. The HRPP is designed to award grant funds to local governments that approve housing for lower-income households and are in compliance with State of California housing element law. The HRPP is a non-competitive grant program.. Funds awarded are calculated on a per-bedroom basis for each newly constructed or substantially rehabilitated residential unit that is affordable to very low-income or low-income households. Eligible units that received a building permit or certificate of occupancy during the designated program years of January 1, 2010, to December 31, 2014, qualify for the HRPP. Applicants may receive $750 to $2,400 per bedroom for very low-income units or $500 to $2,200 per bedroom for low-income units. The range for each income group is due to bonus awards that factor in location, type of park project, and specific area designations. The maximum allocation is achieved by focusing grant funds on a park project that is located in a park-deficient, low-income neighborhood. The minimum application amount is $75,000. For the designated program years noted, staff has identified 75 affordable housing units consisting of 168 bedrooms that will qualify for the HRPP. These units are part of the Valencia/9th Street Housing Development, which is currently being constructed by Updated: 1/28/2016 by Linda Sutherland C I Packet Pg. 89 4279 National Community Renaissance. Considering these affordable housing units, their location, and household income restrictions, staff anticipates the application will be for approximately $398,200. The estimated HRPP award amount of $398,200 is based on the affordable units provided by the Valencia/9th Street Housing Development and requires that the funds will be spent on a park project that supports development located within a park- deficient, low-income neighborhood. Applications are due by February 4, 2016. If awarded HRPP funding, staff proposes to utilize the funds to support the development of a public park network and community center to meet the needs of residents, students, employees and neighbors in and around the Valencia/9th Street Housing Development, the E. Neal Roberts Elementary and Sierra High School campus and the future redeveloped Waterman Gardens public housing site. According to the California State Parks database there are 1.13 acres of parkland per 1,000 residents surrounding the Valencia/9th Street Housing Development which is well below the City requirement of 5 acres per 1,000 residents required by the General Plan Open Space Element. Additionally, the U.S. Department of Housing and Urban Development estimates that roughly 75 percent of residents in the same census tract as the Valencia/9th Street Housing Development are considered to be low or moderate income which also qualified the City for additional funding. Based on these statistics, the HRPP funds would greatly benefit an under served neighborhood and should be used to plan for parks and open space in the vicinity of the Valencia/9th Street Housing Development. While future applications for HRPP funding are expected as Waterman Gardens is redeveloped in phases, this initial application would finance the preparation of a comprehensive parks, open space and landscape design plan for the Waterman Gardens redevelopment site and E. Neal Roberts school campus. The open space plan would also benefit the surrounding neighborhoods and will incorporate feedback from the community collected through a series of public meetings. HRPP funds would be allocated to pre-development activities necessary to adapt a former Housing Authority of the County of San Bernardino maintenance building located at 660 E. Orange Street into a community center that will serve as a neighborhood hub. The community center is envisioned to be a multi-purpose facility that hosts a wide variety of life services, training and classes, youth programs, sports & recreational activities, and other similar events. The community center would also offer recreational amenities including an indoor gym and outdoor sports facilities available to the public. Future rounds of funding would be used to construct the community center, establish joint use facilities with the school district, create a linear park and trail system, and implement other recreational amenities recommended through this initial planning stage. The HRPP application indicates that grant award announcements will be made no later than June 30, 2016. Staff would return to the Council if funds are awarded. Any HRP Program funds awarded would need to be expended within 36 months of the award. City Attorney Review: Supporting Documents: Updated: 1/28/2016 by Linda Sutherland C Packet Pg:90 5.E 4279 ,r-- HCD Grant Resolution (DOC) City of SB_HRPPApplication2015(PDF) HRPP Guidelines (PDF) Hrp Nofa (PDF) Updated: 1/28/2016 by Linda Sutherland C Packet Pg. 91 S.E.a 1 RESOLUTION NO: 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE SUBMITTAL OF A HOUSING 3 RELATED PARKS PROGRAM APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 4 5 WHEREAS,National Community Renaissance of California("National CORE") is excited 6 to partner with the City of San Bernardino on its application for grant funding through the Housing 7 Related Parks Program (HRPP); and 8 9 WHEREAS, funding from the HRP Program will allow CORE and City to revitalize a 10 high-need, park deprived area in central San Bernardino by establishing a network of recreational L 11 facilities, including: parks, trails, a community center and joint-use facilities to be utilized by v 12 neighborhood residents including residents of the redeveloped Waterman Gardens public housing N 13 7T_ facility and students at E. Neal Roberts Elementary and Sierra High School; and c 14 0 WHEREAS, revitalization of blighted areas is critical to the Mayor and Common N 15 Council's objectives of creating an economically viable and safe community; and = 16 WHEREAS, the proposed grant application will not require a match and will be developed o 17 v X 18 through a partnership with National CORE and the City of San Bernardino Community d E 19 Development Department, City Manager's Office and its Housing Division. �o 20 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON a 21 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 22 Section 1. That National CORE is authorized to submit the grant application attached hereto and 23 24 incorporated herein as though set forth in full to the Department of Housing and Community 25 Development"Housing Related Parks Program" on behalf of the City of San Bernardino. 26 Section 2. That upon its acceptance and funding, all funds related to the aforementioned grant shall 27 be used to construct a housing related park near the affordable housing project, "Waterman 28 Gardens." 1 Packet Pg.92 'SZa 1 Section 3. That no match is required for this grant and all work required for the submission of the ant shall be done through a partnership of the City of San Bernardino and National CORE 2 :�' g P p Y 3 Renaissance. 4 Section 4. That a copy of this Resolution shall remain on file in the City Clerk's Office for a 5 minimum of seven(7) years after the date of adoption 6 7 8 9 /// 10 11 x 12 13 14 0 15 16 L 17 U x 18 I � E 19 20 a 21 22 23 24 25 26 27 28 Packet Pg.93 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE SUBMITTAL OF A HOUSING 2 RELATED PARKS PROGRAM APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 3 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 5 Common Council of the City of San Bernardino at a meeting thereof, 6 held on the day of , 2016,by the following vote to wit: 7 Council Members: Ayes Nays Abstain Absent 8 MARQUEZ 9 BARRIOS 10 VALDIVIA L SHORETT 11 NICKEL = 12 JOHNSON N 13 MULVIHILL 0 14 0 15 16 Georgeann Hanna, City Clerk R tLn V 17 U The foregoing resolution is hereby approved this day of , 2016. _ 18 19 �a 20 a 21 R. Carey Davis, Mayor 22 City of San Bernardino 23 Approved as to Form: Gary D. Saenz, City Attorney 24 25 By: 26 27 28 3 Packet Pg.94 S.E.b Department of Housing and Community Development HOUSING-RELATED PARKS PROGRAM Grant Application 2015 Designated Program Year NOFA Applicant Information Applicant: City of San Bernardino (7 Mailing Address: 300 North D Street 0 U City: San Bernardino rn State: California Zip Code: 92418 N et County: San Bernardino ,n 0 Website: lhttp://www.ci.san-bernardino.ca.us/ N 0 Authorized Representative Name: Jarrod Bur uan Authorized Representative Title: Interim City Manager Q. CL Phone: 909 384-7272 Fax: 909 384-5138 a a Email: Bur uan Ja@sbcity.org x I Contact Person Name: M Persico m Contact Person Title: munit Development Director o Phone: 909 384-5357 1 Fax: 909 384-5138 U r Email: Persico ma@sbcity.org (D E s Applicant Certification As the official designated by the governing body, I hereby certify that if approved by HCD for funding Q through the HRP Program, the City of San Bernardino assumes the responsibilities specified in the HRP Program Notice of Funding Availability and Program Guidelines and certifies that the information, statements, and attachments contained in this application are, to the best of my knowledge and belief, true and correct. Signature: Name: Jarrod Burguan Date: Title: Interim City Manager Updated 10116115 2014 DPY Housing-Related Parks Program Application Packet Pg. 95 5.E.b Legislative Information Please list all representatives for the City/County. Attach additional sheets if necessary. Legislative information is available at http://www.leginfo.ca.gov. Applicant: City of San Bernardino District Legislator Name Federal Congressional District: 31 Pete Aguilar 8 Paul Cook Y 0 0 U State Assembly District: 40 Marc Steinorth F rn 47 Cheryl Brown N 7T_ LO 0 N C O Y $ V S iQf.. Q State Senate District: 20 Connie Le va n a a: 23 Mike Morrell =i m Cn 4- O Y_ U r c m E s U tC Y Y Q 2014 DPY Housing-Related Parks Program Application Packet Pg. 96 5.E.b Eligibility Threshold Requirements Applicant: City of San Bernardino 1. HOUSING ELEMENT COMPLIANCE Does the applicant have an adopted housing element which has been found to be in substantial compliance with Housing Element Law pursuant to Government Code Section 65585 which was submitted to the Department by the issuance date of the NOFA? 0 YES Date of HCD Review Letter: 03/28/2014 ❑NO 2. ELIGIBLE UNITS Did the applicant issue building permits or certificates of occupancy for Eligible Units during the Designated Program Year 2014 which meet the affordability requirements for extremely low-, very low-or low-income households? 0 ❑ 2010 ❑ 2011 ❑ 2012 ❑ 2013 1Z 2014 ❑ 2015 U x 3. ANNUAL PROGRESS REPORT SUBMITTAL N It Has the applicant submitted to the Department the Annual Progress Report(APR)for the LO applicable calendar years, pursuant to Government Code Section 65400, on the jurisdiction's c progress in implementing the housing element prior to February 5, 2015? c 0 r For example:applicants must submit the 2013 APR in order to be eligible to receive funding for Eligible Units from 2014. To U receive funding for 2013 Eligible Units,the 2012 APR must be submitted to the Department..Please refer to the chart 0- below: CL Q CL 0. o: Eligible Units from: APR Date Submitted =I m January 1-December 31,2010 ❑ 2009 CY Report N January 1-December 31,2011 ❑ 2010 CY Report 0 January 1-December 31,2012 ❑ 2011 CY Report January 1-December 31,2013 ❑ 2012 CY Report U January 1-December 31,2014 ❑ 2013 CY Report 2/4/2016 January 1-December 31,2015 2014 CY Report E t U fC .r 4. MINIMUM GRANT AMOUNT Q Does the applicant meet the minimum grant amount of$75,000, including any bonus awards, based on Eligible Units from the 2014 Designated Program Year? 0 YES ❑ NO Note: If the applicant has answered NO to any of the questions above, the application will not be reviewed further and the applicant is ineligible for funding. 2014 DPY Housing-Related Parks Program Application Packet Pg. 97 Applicant: lCity of San Bernardino Park Project Name. lWaterman Garden Park Network and Community Center Type of Park Project: lCreation D Development ❑ Rehabilitation 0 Park Project Location include address, if known, or otherwise indicate nearest intersection): 660 E Orange St, San Bernardino, CA 92410 Park Project Census Tract: 06-071-006401 (please use 11-digit census tract number as detailed in instructions) Senate&Assembly District Senate District: 23 for Park Project Location: Assembly District: 40 Park Project Summary: The redevelopment of Waterman Gardens public housing has spurred a comprehensive neighborhood transformation plan. Funds will be used to establish a community center and park network to serve residents. F, Environmental studies, structural and civil engineering reports, design/architectural plans, and entitlements would be prepared. Once plans are complete, abatement of the community center structure would begin. 0 Will the Park Project be in support of any Infill developments, as described in Section 106(F)?* If so, please = name at least one development and indicate the development status(indicate N/A if not applicable) OR Does the jurisdiction's adopted General Plan conform to the region's adopted Regional Blueprint Plan? If so, please CM complete the Regional Blueprint Bonus Coversheet(next tab)and attach supporting documentation as required. If claiming Infill-Supporting, provide name/address of at least one Infill-Su)porting Regional Blueprint infill development and status: c°v NO YES OR NO YES Valencia/9th Street Housing Development-building permits o ❑ ❑ ❑ ❑ acquired and construction is underway. Expected completion date of 06/2016. — .Q Will the Park be located within a Disadvantaged Community, as described in Section 106(D)? * Please note: to C receive bonus funds the application must include supporting documentation. a YES NO Yes, the park is located in a disadvantaged community. See attachments showing approximately 75%of households are low or moderate income. =I ❑ ❑ co Will the Park be located within a Park-Deficient Community, as described in Section 106(E)? * Please note: to 0 receive bonus funds the application must include supporting documentation. w YES NO See attachment from the California State Parks database showing there are 1.13 acres of v parkland per 1,000 residents surrounding the park site. _ o ❑ E Project Cost Breakdown and Other Funding Sources Q Project Cost Subproject Estimated Cost Subproject Estimated Cost Environmental Phase 1 &2 $95,200.00 " Community Outreach $10,000.00 Engineering Reports $60,000.00 Entitlements/Permits/Appraisal $20,000.00 Architectural&Landscape Plans $125,000.00 Abatement/Demolition $88,000.00 Total Project Cost: $398,200.00 Other Funding Sources Name of Source Dollar Amount Name of Source Dollar Amount National CORE $25,000.00 Wells Faro $50,000.00 :. Total Other Fundsl $75000100 *Applicable Bonus Funds as detailed in Section 106 of the Program Guidelines 2014 DPY Housing-Related Parks Program Application Packet Pg.98 5.E.b PARK DESCRIPTION ATTACHMENTS Park Project Summary The redevelopment of Waterman Gardens public housing has spurred a comprehensive neighborhood transformation plan. Funds will be used to establish a community center and park network to serve residents. While planning efforts will consider the Waterman Gardens and E. Neal Roberts school site, Figure 1, Conceptual Park Planning Efforts, illustrates the three priority areas that will benefit from HRPP funding. Also included are two letters of support from National Community Renaissance the developer of the Valencia/9th Street Housing Development and the San Bernardino City Unified School District, who are collaborating to create new open space and recreational opportunities in central San Bernardino. o U Infill Housing Project N 7 The proposed park will support the affordable housing units within the Valencia/9th Street LO housing development. A map of the project location and site plan showing the project are N attached. The park would be located onsite in the Valencia/9th Street Housing Development. U Disadvantaged Community Calculation CL a. a_ The Qualifying Park Project is located within a Disadvantaged Community. The Qualifying =� Park Project is located within Census Tract 6401. For Tract 6401, the average percentage of residents at low or moderate income levels is 74.7%. This means that the community o qualifies as Disadvantaged by U.S. Department of Housing and Urban Development. w STUSAB COUNTY COUNTVNAME TRACT BLK GRP LOWMOD UNIV LOWMOD LOWMOD PCT CA 071 San Bernardino County 006401 1 926 887 95.8 V M CA 071 San Bernardino County 006401 2 1,666 1,050 63 2,592 1,937 74.73% Q Park Deficient Community This Community Fact Finder Report supports the identification of the Park Project neighborhood as being a Park Deficient Community. The attachment shows there is approximately 1.12 acres per 1,000 residents within 0.5 miles of the project site. The park shown is a community garden and a baseball field with no other amenities. It should be noted, that residents are unable to walk directly to the park shown as there is a flood control channel limiting direct pedestrian access from the Valencia/9th Street housing development. Packet Pg. 99 5.E.b FIGURE 1 -CONCEPTUAL PARK PLANNING EFFORTS x i ' i 1u - a 4 PROPt}SEt? Ei ELflPMEINT u 4 n, r O Z N d' Ln 14 N i a 4 S r V go, CL CL 4. 0. r PROPOSED 0 r 4 DEVELOPMENT' E a a OJOINT USE FACILITIES BETWEEN THE REDEVELOPED WATERMAN GARDENS SITE AND THE E.NEAL ROBERTS ELEMENTARY SCHOOL CAMPUS WILL BE DEVELOPED.ADDITIONAL PLANNING AND DESIGN EFFORTS NEED TO OCCUR TO ESTABLISH A VISION FOR THE PROPOSED EDUCATIONAL VILLAGE CONCEPT. © A COMMUNITY CENTER TO SERVE THE LOCAL COMMUNITY IS PROPOSED AT THE CORNER OF BASELINE STREET AND LA JUNTA AVENUE.ADDITIONAL ENVIRONMENTAL AND ENGINEERING STUDIES ARE NEEDED TO ASSESS THE CONDITION OF THE EXISTING ONSITE STRUCTURE FOR ADAPTIVE REUSE. © A LINEAR PARK THROUGH THE REDEVELOPED WATERMAN GARDENS SITE WILL INCLUDE RECREATIONAL AMENITIES AND SERVE AS A PEDESTRIAN BACKBONE.PRE-DEVELOPMENT ACTIVITIES TO DESIGN LANDSCAPING,PLACEMAKING,AND COMMUNITY PacketPg.100 February 4, 2016 Hilda Sousa Housing Policy Analyst California Department of Housing and Community Development 2020 W. El Camino Ave Ste. 500 C0 Sacramento, CA 95833 RA EJ Re: Housing Related Park Program Dear Ms. Sousa, c ,L^ V National Community Renaissance of California(National CORE) is excited to partner with the City of San o Bernardino in their application for grant funding through the Housing Related Parks Program (HRPP). z Funding from the HRP Program will allow CORE and City to revitalize a high-need, park deprived area in central San Bernardino by establishing a network of recreational facilities, including: parks, trails, a C4 community center and joint-use facilities to be utilized by neighborhood residents including residents of �— LO the redeveloped Waterman Gardens public housing facility and students at E. Neal Roberts Elementary and Sierra High School. N c 0 National CORE was established in 1992 as a 501(c) (3) not-for-profit public benefit corporation and M currently has over 8,000 rental units under ownership in four states, including more than 6,700 Q throughout the Southern California region. National CORE is the developer, owner, operator and Q services provider of all its properties. For more than 20 years, National CORE has been a thought leader a and pioneer in developing sustainable models that leverage community resources in a unique combination of quality developments paired with life-enhancing social services. Headquartered in mi Rancho Cucamonga, California, National Community Renaissance is the third largest national nonprofit v� affordable housing developer serving more than 25,000 residents in over 80 developments in California, 0 Texas,Arkansas and Florida. U National CORE in partnership The Clancy Company has been working with the Housing Authority of the County of San Bernardino (HACSB) on the redevelopment of the 38-acre Waterman Gardens complex, E which entails demolition of existing public housing units and constructing over four hundred affordable and market rate units. The Waterman + Baseline Neighborhood Transformation Specific Plan envisions Q a transformation of the current site and the surrounding neighborhood. The initiatives included in the overall plan include: • Demolition of 252 public housing units,to be replaced with a 400+homes mixed-use/mixed income community including market rate and affordable family units and community recreational facilities. • Collaboration with adjacent school district facilities to create to the extent feasible a new K-12 campus and joint use recreation facilities. • Creations of a park system including pedestrian and bicycle trails, pocket parks and play areas, public gathering places, and other recreational and sports amenities. 9421 Haven Avenue, Rancho Cucamonga,CA 917: 909,483.2444 Fax:909.483,2448 nationaloore.org Packet Pg. 101 5.E.b • Improving the single family housing stock to the east and west of Waterman Gardens including improvements of existing single family homes and vacant/blighted properties as part of the "Build San Bernardino Partnership Program". Revitalizing the Baseline Street commercial corridor into a safe and successful retail district, providing opportunities for local businesses, increasing employment prospects, and bolstering tax revenues. C0 As future a pp lications for HRPP funding are expected, this initial application would provide seed funding for the preparation of a comprehensive park, open space and landscape plan for the Waterman Gardens RE� and E. Neal Roberts campus. The plan would incorporate feedback from the community collected through a series of public meetings. HRPP funds would also be allocated to pre-development activities necessary to adapt a former HACSB maintenance building located at 660 E Orange Street into a community center that will serve as a neighborhood hub. The community center is envisioned to be a multi-purpose facility that hosts a wide variety of life services, trainings and classes, youth programs, c� recreational activities, and other similar events. The community center would also offer recreational amenities including an indoor gym and outdoor sports facilities available to the public. We are excited to collaborate with the City and the San Bernardino City Unified School District to establish new parks within central San Bernardino and to further the revitalization effort occurring in the LO Waterman Gardens neighborhood. We look forward to this important endeavor for the City of San N Bernardino, it's residents, and the multitude of partners that are coming together to make a positive o Y impact for generations to come. Q CL CL 2 I Steve Pontell Cn Chief Executive Officer o Fi Y U r c Q E U fSf Y a 9421 Haven Avenue, Rancho Cucamonga.,CA 917: 949.483.2444 Fax:909.483.2448 naticnatoore.€rrg Packet Pg. 102 FIGURE 2— INFILL HOUSING PROJECT Ar 00"N ffL^^ V N a O N CL a k'F n yr z N W O` 2 B U u .• i E V W W� a t Valencia/9th Street Housing Development Packet Pg. 103 z i f i �,,.v xe.2 asiENR Ra�iAM'.e4 V U_ W o W rte"' 04 0 o CL � R f a a CL Lu x m N a U r C d 4 Y a M EL ` = 4. 17 ,R P AP INL 9147191 F E. 9TH STREET Packet Pg. 104 California State Parks Community . 1 Report This is your Community FactFinder report for r.Y - the project you have defined. Please refer to your Project ID in any future communications about this project. Project ID: 30577 Date created: December 30, 2015 1r, v County: San Bernardino m City: San Bernardino �' = Coordinates: 34.115796, -117.271742 r Total Population: 3,028 Median Household ---- --_ Income: $25,254 o N Number of people ' mi .)elow poverty line: 1 350 Project site .2 a Park acreage: 3.38 a. Park acres per 1,000 =� population: 1.12 CO 0 If your service area includes a modified park (outlined in red), the statistic v shown match the new boundary. All numbers above have been calculated based on a 1/2 mile radius from the point location of your project. Demographics are figured by averaging population numbers over selected census block groups and using the percent of the block group within the project circle to determine the actual counts. Q Parks and park acres are based on best available source information but may not always contain exact boundaries or all parks in specific locations. Parks acreage does not include major lakes or ocean, users can send update information to: park updates @parks.ca,gov Data Sources: Demographics- claritas Pop-Facts, block group level (20 10) Parks- Calif, Protected Areas Database v. 1.6 (Feb. 20 11) i Community FactFinder is a service of the California Department of Parks and Recreation OWE w"-parks.ca.gov Community F.-F—d.,created by Green Info Network ww+w.grmninfo.org ONO Packet Pg. 105 S.E.b Comprehensive Unit Listing ^oplicant: Icity of San Bernardino ,ease provide a listing,by unique project identifier used in the Housing Project Cover Sheet,of all units contained in this application. The Department will use this listing in both reviewing the application to determine eligibility of each project and calculating the final grant award amount. There should be a separate line entry for each of the Housing Project Cover Sheets included in the application.Please list the projects in the same order as they appear in the application to facilitate the application review process. **If necessary,please add additional rows to accommodate all eligible projects but be sure to copy formatting to carry forward associated formulas** Unit Count Bonus Awards TOTAL A B C D E F G N N N E C E N t o 0 o E ° ° 'o O m N U r E N O °U C o tC j 6 w C 3 Total o E p E W J W > J o Project Name/Identifier from o > o `o `o `o �° Base 3 .� - = o E a E Bonus n xt Housing Project Cover Sheet U U � uo � Award Amount z D � a. U o c) Funds Total Award Amount SAMPLE PROJECT 1 24 30 3 50 31 84 $56,000 No No Yes No No $8,400 $64,400 1 Valencia/9th Street 8 49, 18 21 106 41 168 $121,000 Yes Yes Yes Yes Yes $277,200 $398,200 2 0 $0 $0 $0 3 0 $0 $0 $0 p 4 0 $0 $0 $0 V 51 0 $0 $0 $0 6 0 $0 $0 $0 r' N 7 0 $0 $0 $0 8 0 $0 $0 $0 u7 9 0 $0 $0 $0 C N 10 0 $0 $0 $0 O _— . 11 0 $0 $0 $0 U 12 0 $0 $0 $0 Q 13 1 0 $0 $0 $0 iZ 14 0 $0 $0 $0 d __. _ a 151 0 $0 $0 $o 161 0 $0 $0 $0 ml 17 0 $0 $0 $0 N 18' 0 $0 $0 $0 O 19° 0 $0 j $0 $0 U 20 0 $0 $0 $o 21 0 $0 $o $0 22 0 $o $o $0 L 23 0 $0 ? $0 $0 V 24 0 $0 $0 $0 25 0 $0 _ a 26 — 0 $o $0 $0 27 _. o $o $0 $0 TOTAL 8 49 18 21 106 41 168 $121,000 $277,200 $398,200 2014 DPY Housing-Related Parks Program Application Packet Pg. 106 Housing Project Cover Sheet - 1 *** Please complete and submit a separate Project Cover Sheet for each Residential Project*** Applicant: JCity of San Bernardino Project Name,Address and/or other Identifier: (please note,it is critical that project identifier is consistent or readily identifiable across all required documentation) Valencia/9th Street Housing Development Type of Project: Fal New Construction ❑ Substantial Rehabilitation,Conversion,or Preservation* *Note:Applicant must also fill out Housing Project Attachment Building Permit(s)Issuance Date(s): (for new construction units) 12/1/2014 Date(s)of Certificate(s)of Occupancy: (units rehabilitated,converted,or preserved) Please include supporting documentation Are Eligible Units considered Infill, pursuant to Section 106 C 1 - 3 ? Yes If yes, please identify how units determined to ❑ site previously developed be infill(refer to Section 106(C)of Program Guidelines)and include supporting 75 percent of perimeter adjoins parcels currently developed L documentation. with urban uses Affordability Documentation (Mark appropriate box and provide supporting documentation) _ Rental Units a� ti 0 Deed-Restricted N d Method of Restriction/ Type of Subsidy Used: Ln F55-year covenant-HOME/LIHTC c N 'Rental units must be restricted for a minimum of 55 years except G Length of Deed Restriction: 55 ears for preservation which requires 40 years. r Ownership Units - .Q ❑ Deed-Restricted Q a Method of Restriction/ 0- Type of Subsidy Used: Q' I Length of Deed Restriction: *Ownership units must be restricted for a minimum of 20 years ❑ Non-Restricted Units "- 0 Sales Price&Initial T Occupant's Income U r *Please note if counting non-restricted ownership units,supporting documentation must include both the initial sales price and household income 4) of initial occupant considering household size. E t V t4 Project Summary Table Q Number of Bedrooms By Unit Type and Affordability *Extreme) Low-Income Units Very Low-Income Units Low-Income Units Total Total Total Number of Units Bdrms Unit Type Number of Units Bdrms Unit Type Number of Units Bdrms 0 Studio 0 Studio 0 0 1-Bed 10 10 1-Bed 0 4 8 2-Bed 23 46 2-Bed 13 26 3 9 3-Bed 14 42 3-Bed 5 15 1 4 4-Bed 2 8 4-Bed 0 0 5-Bed 0 5-Bed 0 8 21 Totals 49 106 Totals 18 41 Project Description: The Valencia/9th Street Housing Development includes 75 new multi-family residential units with a mix of one to four bedrooms in two buildings on 4.1 acres.The project also includes a 2,200-square-foot clubhouse community building,a 1,000-square-footlaundry/maintenance building and a one-acre detention basin along the southern portion of the project site. 2014 DPY Housing-Related Parks Program Application Packet Pg. '107 5.E.b HOUSING PROJECT ATTACHMENTS Building Permit Issuance Date The attached Building Permit Job Cards support the 12/1/2014 date shown in the Housing Project Cover Sheet - 1. Affordability Documentation In accepting a preliminary reservation for 9% tax credits from the California Tax Credit Allocation Committee (CTCAC), Valencia/9th Street Housing Development is restricted to 0 households with incomes that do not exceed 60% of the County of San Bernardino's Area = Median Income (AMI). Attached is the executed preliminary reservation letter and carryover allocation agreement from CTCAC to be maintained for a period of 55 years. Note that the LO rent levels are published each year by HUD. 0 N C While the affordability restrictions set by CTCAC are the most restrictive of the funding sources used at Val 9 Apartments, there are also three public loans that require affordability .Q restrictions for a term of 55 years. These loans are from the County of San Bernardino C Housing Authority, City of San Bernardino, and County of San Bernardino. Attached are the regulatory agreements for each of the loans. m m O A r U c d E t v w w a Packet Pg. 108 - U A 6 a _ Building & Safety Division Permit Number x Community Development B1402775 Department Phone(909)384-5071 Fax (909)384-5080 www.sbcity.ore 300 N."D"Street,San Bernardino,CA 92418 BUILDING PERMIT JOB CARD w Job Address: 950 N VALENCIA AVE Status: ISSUED = Suite#: Tract/Lot#: Applied: 12/01/2014 Parcel: 0147191120000 Issued: p U Owner: VAL 9 HOUSING PARTNERS,L.P. Phone: 909-483-2444 Address: 9421 HAVEN AVE. RANCHO CUCAMONGA,CA.91730 Contractor: NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA Phone: ,n (909)483-2444 N Address. 9421 HAVEN AVENUE License: 747393 = RANCHO CUCAMONGA,CA9173O ° r Architect: Phone: Address: License: Q _. Q Engineer: Phone: oa. Address: License: _ I m **** *** * ***** * ** **** Building Information o Construction Type: Occupancy: R-2 Sprinklers: U Flood Plain Zone: Fire Zone: Highwind: Description[Valuation ca w Type of Permit: NEW 60 UNIT E-URBAN 3 STORY APARTMENT COMPLEX FOR VAL 9 a PROJECT Occupancy Type Factor sq Feet valuation R-2 Multi-family Res Vg 88.46 56,048 $4,958,006.08 Totals. . . 56,048 $4,958,006.08* Comments 1: CARBON&SMOKE DETECTORS required and verification form must be completed and given to City Inspector prior to building final.Retrofit of applicable plumbing fixtures for homes built before 1994,per 2014 State Building Code compliance. 2: FIRE SPRINKLERS REQUIRED:Plans for fire sprinklers shall be submitted to the Fire Department and approved prior to installation.No Building Inspections shall be performed beyond framing and ventilation until fire sprinklers are Pack ap" 109' 1 11 r , , A ,., . .. , . C-1 � � � , ° - (4 1 PdC^�. Building & Safety Division Permit Number Community Development p B1402777 � � , Department isall Phone(909)384-5071 Fax (909)384-5080 ww-,v.sbcity.ora 300 N."D"Street,San Bernardino,CA 92418 BUILDING PERMIT JOB CARD Y Job Address: 950 N VALENCIA AVE Status: ISSUED = ca Suite#: Tract/Lot#: Applied: 12/01/2014 Parcel: 0147191120000 Issued: p U Owner: VAL 9 HOUSING PARTNERS,L.P. Phone: 909-483-2444 Address: 9421 HAVEN AVE. n RANCHO CUCAMONGA,CA.91730 Contractor: NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA Phone: ,n (909)483-2444 0 Address: 9421 HAVEN AVENUE License: 747393 N c RANCHO CUCAMONGA,CA91730 ° Architect: Phone: Address: License: Q a Q Engineer: Phone: a Address: License: _ I m m Building Information c Construction Type: Occupancy: R-2 Sprinklers: V Flood Plain Zone: Fire Zone: N/A Highwind: N a� Description/Valuation**� S ca Type of Permit: 16 UNIT 2-STORY APPARTMENT BUILDING FOR VAL 9 PROJECT Q Occupancy Type Factor Sq Feet Valuation R-2 Multi-family Res Vg 88.46 15,858 $1,402,798.68 Totals. . . 15,858 $1,402,798.68 Comments Packet Pg.110 (;ueaE) aOH ISMI) 94Opoi;eoilddVddNH 8S 10 43 :1u8w43e11V .a LU ui At G ' CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE a CL 915 Capitol Mall,Suite 485 MEMBERS Sacramento,CA 95814 BILL LOCKYER,CHAIRMAN p(916)654-6340 State Treasurer f(916)654-6033 JOHN CHIANG Ctcac @treasurer.ca.gov State Controller www.treasurer.ca.gov/cteac MICHAELCOHEN Director of Finance EXECUTIVE DIRECTOR William J.Pavao Preliminary Reservation Letter September 24, 2014 Tracy Thomas National Community Renaissance of California 9421 Haven Avenue Rancho Cucamonga, CA 91730 RE: Val 9 Apartments Northwest Corner of Valencia Avenue and East 9th Street San Bernardino, CA 92410 CA-14-162 Allocation type: Inland Empire Region Completion date: December 31,2016 Minimum low income election: 40%/60% Dear Ms. Thomas: The California Tax Credit Allocation Committee ("TCAC"), in its role as administrator of the federal and California Low Income Housing Tax Credit programs established by Section 42 of the Internal Revenue Code of 1986, as amended (the "Code"), and Sections 17058, 12206, and 23610.5 of the California Revenue and Taxation Code, hereby reserves for the project (the "Project") referenced above and described in the staff report attached hereto, 2014 low income housing tax credits in the following amount(s) and under the following conditions and limitations: $1,139,951: in federal Tax Credits annually for each of ten years (estimated applicable percentage of 7.70%and/or 3.36%for acquisition); $ 0: in total state Tax Credits to be taken over a four year period. These credit amounts have been calculated using the estimated qualified basis $14,804,556 and estimated applicable percentage(s) identified in the attached staff report. While the actual qualified basis and applicable percentages may change, the credit amounts of the reservations stated above are maximum credit amounts and cannot be exceeded. 1 (luea!D OOH UZO 940Zuo11e311ddddd11H 8S 10 AID 4UGW43eUV N uj Val 9 Apartments/CA-14-162 Ui Page 2 of 4 d r m v This Preliminary Reservation is conditioned upon the Project Applicant (the "Applicant") constructing, IL rehabilitating or acquiring and rehabilitating the Project in accordance with the application for low income housing tax credits (the "Application") submitted to TCAC (subject to the Applicant maintaining its eligibility under all selection criteria and adhering to all conditions stated in the attached staff report) and is subject to full compliance by the Applicant with the Code and the California Code of Regulations, Title 4, Chapter 17 (the "Regulations"). This Preliminary Reservation is further conditioned upon the owner posting project signage at the construction site in a manner consistent with criteria outlined on the TCAC website at: http://www.treasurer.ca.aov/ctcac/siunaae/memo.pdf. This Preliminary Reservation is further conditioned upon the Project receiving an Internal Revenue Service (IRS) form 8609 in 2014 or submitting to the Committee all documentation qualifying for a Carryover Allocation as specified in Committee Regulation Section 10328(d). For 2014 award recipients, an application for a Carryover Allocation must be submitted by October 31 of the year of the reservation, together with the applicable allocation fee (Preliminary Reservation recipients receiving any competitive readiness to proceed points under Section 10325(c)(8) must pay one-half of the allocation fee within 90 days of the Preliminary Reservation) and all required documentation, except that the time for meeting the "10%" test and submitting related documentation will be no later than twelve (12) months after the date of the Carryover Allocation. Failure to submit the applicable allocation fee by the deadline above will result in cancellation of this Reservation. No change in the owner, general partner(s) of the owner, or any members of a Limited Liability Company that has an ownership interest in the Project shall occur prior to final allocation of the Tax Credits without the prior written consent of TCAC. If such consent is given, this Preliminary Reservation is binding on all successors and assigns. In order to obtain a Carryover Allocation and retain this Preliminary Reservation, the following must be submitted no later than October 31, except that the time for meeting the "10%" test and submitting related documentation will be no later than twelve (12)months after the date of the Carryover Allocation: 1. evidence that the Applicant had uninterrupted control of the Project site since filing the original application with TCAC and, if the site is not already owned, evidence that the Applicant will maintain site control until the time for submitting the evidence of the land's purchase that will be no longer than twelve (12) months after the date of the Carryover Allocation; 2. a certification, on forms supplied by TCAC, that Applicant's basis as of the date of the Carryover Allocation or the date that will be no later than twelve (12) months after the date of the Carryover Allocation, exceeds 10% of the anticipated basis of the Project upon completion(see Section 42(h)(1)(E) and applicable IRS Notices); 3. evidence of site control. Evidence may take the form of any of the following: a preliminary title report issued no earlier than 30 days prior to the date of the Carryover Allocation submission; a conformed copy of the recorded.grant deed; or a conformed copy of the recorded memorandum of lease; 4. any other information required by the IRS or TCAC; * All applicants receiving any points for readiness to proceed must provide an executed Letter of Intent (LOI) from the project's equity partner within 90 days of the Preliminary Reservation, no later than December 23, 2014. The LOI must include the features outlined in the TCAC application. Applicants that received 20 points for readiness to proceed must be able to begin construction, meet all of the following requirements and submit evidence of the same no later than 180 days from the date hereof, that is, no later than March 23, 2015, or the credit reserved to them shall be rescinded. Such evidence 1 (weJo aOH : 61Zb) 940Zuoi1eoi1ddVdd1JH 85 to A11:3 :luauayoe41V u! ' Val 9 Apartments/CA-14-162 ' Page 3 of 4 a d shall include a completed updated application form along with a detailed explanation of any changes a' from the initial application, an executed construction contract, a construction lender trade payment breakdown of approved construction costs, recorded deeds of trust for all construction financing (unless a project's location on tribal trust land precludes this), binding commitments for permanent financing, binding commitments for any other financing required to complete project construction, a limited partnership agreement executed by the general partner and the investor providing the equity,payment of all construction lender fees, issuance of building permits (a grading permit does not suffice to meet this requirement) or the applicable tribal documents, and notice to proceed delivered to the contractor. Failure to meet this timeline will result in rescission of the Credit Reservation. Pursuant to Regulation Section 10328(c), the Applicant must provide the Committee with the a completed updated application form on CD or flash drive no later than 180 days following the Preliminary Reservation. Applicants may now submit documents for each TCAC deadline on CD or flash drive, including Placed in Service documents. TCAC will not accept the Placed in Service documents by email or over the internet. Within one year from the project's actual placed in service date, the Applicant must request from TCAC the issuance of IRS Form(s) 8609 and submit the required documentation as specified in Committee Regulation Section 10328(e). Failure to provide the required request and documentation by the deadline may result in negative points as specified in Committee Regulation Section 10325(c)(3). No later than 5:00 p.m. on October 14, 2014, the Applicant must provide a cashier's check made out to the Committee in the amount of$45,598,which is the performance deposit required for this Project. Failure to provide the performance deposit by October 14, 2014 shall result in cancellation of the reservation. The performance deposit may only be refundable under the circumstances and conditions set forth in the Committee Regulation Section 10335(d)(3). Similarly, no later than October 31,2014,the Applicant must provide a cashier's check made out to the Committee in the amount of$45,598,.which represents the allocation fee for this Project. The allocation fee is not refundable. By accepting this Preliminary Reservation, the owner understands and accepts the risks that the U.S. Congress, U.S. Department of the Treasury or the State of California may change the requirements for the award of tax credits by subsequent enactment of law or regulation. The Applicant further acknowledges that it has consulted its own tax advisor as to any consequences related to this Preliminary Reservation or eventual award of tax credits. Applicant acknowledges that it is under an affirmative obligation to advise TCAC of any material change in the nature or composition of the owner or the development team or of any of the specifics of the Project set forth in the Application. Applicant acknowledges that,in awarding tax credits, TCAC has reserved a portion of the annual ceiling for Applicant's use, but that TCAC makes no representation that such credits can be claimed by Applicant. Applicant further acknowledges that upon its failure to meet any of the requirements in this Preliminary Reservation or the reservation itself or any other requirements of TCAC or, upon mutual consent with TCAC, the Project's reservation may be canceled and the credits returned to TCAC. Moreover, even after the award of the carryover allocation, the amount of such allocation may be adjusted if, upon the initial and subsequent feasibility determinations, TCAC determines that the Project (lueJO 4OH 6LZV) 9L0Zuoi1eoi1ddydd11H 8S}o AIM :luautyoelly d uj Val 9 Apartments/CA-14-162 Page 4 of 4 IL v; received more credits than are necessary for financial feasibility of the Project. In addition, TCAC may rescind a reservation or allocation of credits in the event that the maximum amount of credits achievable is insufficient for financial feasibility of the Project. TCAC accepts no responsibility for any adverse consequences to the owner if the owner chooses to proceed with the Project based upon this Preliminary Reservation. The owner is advised that TCAC is required by law to evaluate the Project a minimum of two additional times. These evaluations must occur at the time of the 180-day deadline and when the Project is placed in service. Further evaluations may result in the denial of any allocation of tax credits or a reduction in the amount of tax credits finally allocated to this Project. No TCAC committee member, officer, director, agent, or employee shall be personally liable concerning any matters arising out of, or in relation to,the undertakings or obligations set forth herein. Please examine the provisions of this Preliminary Reservation carefully, and advise me promptly if there are any errors contained herein. If you agree to the terms of this Preliminary Reservation, please sign and date this form and deliver the original letter and performance deposit no later than 5:00 p.m. on October 14, 2014, to TCAC at 915 Capitol Mall, Room 485, Sacramento, CA 95814. TCAC reserves the right to revoke this Preliminary Reservation if it discovers that the Applicant has provided erroneous or fraudulent information to TCAC in connection with the Application or fails to comply with any of the requirements of TCAC. You are encouraged to keep a copy of this document for your records. If you do not wish to accept this reservation offer,please notify this office as soon as possible so that the credit may be reserved for another project. Executed this 24th day of September 2014. By: William J. Pavao Executive Director Accepted this j" day of t��l�t- , 2014. By: (signature) Tr gnomas Chief Financial Off1C , (type or print name) (type or print title) _. _ ••._.- ilYlYO IIYYYY... (1uelo a3H 6LZti) 560Zuoileoilddddd1JH 8S 10 43 3u8ua43e1)V Ch a.i ••'� .X CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE a Project Staff Report LLJ 2014 Second Round September 24,2014 Project Number CA-14-162 Project Name Val 9 Apartments Site Address: Northwest Corner of Valencia Avenue and East 9th Street San Bernardino,CA 92410 County: San Bernardino Census Tract: 64.010 Tax Credit Amounts Federal/Annual State/Total Requested: $1,139,951 $0 Recommended: $1,139,951 $0 Applicant Information Applicant: National Community Renaissance of California Contact: Tracy Thomas Address: 9421 Haven Avenue Rancho Cucamonga,CA 91730 Phone: (909)204-3438 Fax: (909)483-2448 Email: tthomas@nationalcore.org General Partner(s)/Principal Owner(s): Southern California Housing Dev.Corp.of the Inland Empire The Clancy Company LLC Waterman Affordable 1 LLC General Partner Type: Joint Venture Parent Company(ies): National Community Renaissance The Clancy Company LLC Housing Authority of the County of San Bernardino Developer: National Community Renaissance Investor/Consultant: Hudson Housing Capital Management Agent(s): National Community Renaissance Project Information Construction Type: New Construction Total#Residential Buildings: 2 Total#of Units: 76 No.&%of Tax Credit Units: 75 100% Federal Set-Aside Elected: 40%/60% Federal Subsidy: HOME/HUD Project-Based Section 8 Contract-RAD(75 Units- 100%) Affordability Breakdown by Units and%(Lowest Income Points): 30%AMI: 8 10 % 45%AMI: 34 45 % 50%AMI: 15 20 % CA-14-162 1 September 24,2014 (WeaE) 0314 : 6LZV) 960Zuoi4eoilddVdd21H 8S}o A1!3 :;uewL1oe14V Information Set-Aside: N/A Housing Type: Large Family Geographic Area: Inland Empire Region TCAC Project Analyst: DC Navarrette Unit Mix 10 1-Bedroom Units 40 2-Bedroom Units 22 3-Bedroom Units 4 4-Bedroom Units 76 Total Units 2014 Rents Targeted 2014 Rents Actual Proposed Rent %of Area Median %of Area Median (including Unit Type&Number Income Income utilities) 4 1 Bedroom 45% 45% $512 6 1 Bedroom 50% 50% $569 4 2 Bedrooms 30% 30% $410 15 2 Bedrooms 45% 45% $615 8 2 Bedrooms 50% 50% $683 13 2 Bedrooms 60% 60% $820 3 3 Bedrooms 30% 30% $474 13 3 Bedrooms 45% 45% $710 1 3 Bedrooms 50% 50% $789 5 3 Bedrooms 60% 60% $947 1 4 Bedrooms 30% 30% $529 2 4 Bedrooms 45% 45% $793 1 4 Bedrooms Manager's Unit Manager's Unit $0 Project Financing Residential Estimated Total Project Cost: $24,846,731 Construction Cost Per Square Foot: $205 Estimated Residential Project Cost: $24,846,731 Per Unit Cost: $326,931 Construction Financing Permanent Financing Source Amount Source Amount Chase $16,108,387 Chase $9,103,489 City of San Bernardino $1,500,000 City of San Bernardino $1,500,000 County of San Bernardino Loan 1 $1,000,000 County of San Bernardino Loan 1 $1,000,000 County of San Bernardino Loan 2 $810,000 County of San Bernardino Loan 2 $810,000 Tax Credit Equity $3,590,845 Deferred Developer Fee $463,759 Tax Credit Equity $11,969,483 TOTAL $24,846,731 CA-14-162 2 September 24,2014 (lueJD 03H : 61ZV) 560Zuoi1e3iiddVdd1JH 9S to A113 :1uauay3e11V Determination of Credit Amount(s) Requested Eligible Basis: $11,388,120 130%High Cost Adjustment: Yes Applicable Fraction: 100.00% Qualified Basis: $14,804,556 Applicable Rate: 7.70% Maximum Annual Federal Credit: $1,139,951 Approved Developer Fee in Project Cost: $2,000,000 Approved Developer Fee in Eligible Basis: $1,400,000 Investor/Consultant: Hudson Housing Capital Federal Tax Credit Factor: $1.05000 Per Regulation Section 10322(i)(4)(A),The"as if vacant"land value and the existing improvement value established at application,as well as the eligible basis amount derived from those values,will be used during all subsequent reviews including the placed in service review,for the purpose of determining the final award of Tax Credits. Per Regulation Section 10327(c)(2)(C),Once established at the initial funded application,the developer fee cannot be increased,but may be decreased,in the event of a modification in basis. Eligible Basis and Basis Limit Requested Unadjusted Eligible Basis: $11,388,120 Actual Eligible Basis: $21,702,655 Unadjusted Threshold Basis Limit: $16,693,694 Total Adjusted Threshold Basis Limit: $21,702,655 Adjustments to Basis Limit: Required to Pay Prevailing Wages Local Development Impact Fees Tie-Breaker Information First: Large Family Second: 60.963% Cost Analysis and Line Item Review Staff analysis of project costs to determine reasonableness found all fees to be within TCAC's underwriting guidelines and TCAC limitations. Annual operating expenses exceed the minimum operating expenses established in the Regulations,and the project pro forma shows a positive cash flow from year one. Staff has calculated federal tax credits based on 7.70%of the qualified basis,or,in the case of acquisition credit or credit combined with federal subsidies,3.36%. Applicants are cautioned to consider the expected federal rate when negotiating with investors. TCAC's financial evaluation at project completion will determine the final allocation. Special Issues/Other Significant Information: None. CA-14-162 3 September 24,2014 (;ueaJ a3H : 6LZb) SLOZuoi;eoilddVddMH 13S 10 A)Q :;uauay0e;;y Legal Status: Staff has reviewed the AppIicant's responses to the questions contained in the Legal Status portion of the Application. No information was disclosed that raised any question regarding the financial viability or legal integrity of the applicant. Local Reviewing Agency: The Local Reviewing Agency,the City of San Bernardino,has completed a site review of this project and strongly supports this project. Recommendation: Staff recommends that the Committee make a preliminary reservation of tax credits in the following amount(s)contingent upon standard conditions and any additional conditions imposed by the Committee: Federal Tax Credits/Annual State Tax Credits/Total $1,1139,951 $0 Standard Conditions The applicant must submit all documentation required for a Carryover Allocation and any Readiness to Proceed Requirements elected. Failure to provide the documentation at the time required may result in rescission of the Credit reservation and cancellation of a carryover allocation. TCAC makes the preliminary reservation only for the project specified above in the form presented,and involving the parties referred to in the application. No changes in the development team or the project as presented will be permitted without the express approval of TCAC. The applicant must pay TCAC a performance deposit and allocation fee calculated in accordance with regulation. Additionally,TCAC requires the project owner to pay a monitoring fee before issuance of tax forms. As project costs are preliminary estimates only,staff recommends that a reservation be made in the amount of federal credit and state credit shown above on condition that the final project costs be supported by itemized lender approved costs and certified costs after the buildings are placed in service. All unexpended funds in reserve accounts established for the project must remain with the project to be used for the benefit of the property and/or its residents, except for the portion of any accounts funded with deferred developer fees. All fees charged to the project must be within TCAC limitations. Fees in excess of these limitations will not be considered when determining the amount of credit when the project is placed-in-service. The applicant/owner shall be subject to underwriting criteria set forth in Section 10327 of the regulations through the final feasibility analysis performed by TCAC at placed-in-service. Credit awards are contingent upon applicant's acceptance of any revised total project cost,qualified basis and tax credit amount determined by TCAC in its final feasibility analysis. CA-14-162 4 September 24,2014 (;ue10 (30H : 61ZV) 560Zuoi1e311ddVddNH 13S}o 43 :;uawtloe;;d w The applicant must ensure the project meets all Additional Threshold Requirements of the proposed project. If points were awarded for service amenities,the applicant will be required to provide such amenity or amenities identified in the application,for a minimum period of ten years and at no cost to the tenants. Applicants that received points for sustainable building methods(energy efficiency)must submit the certification required by Section 10325(c)(6)at project completion. Applicants that received increases(exceptions to limits)in the threshold basis limit under Section 10327(c)(5)must submit the certification required by Section 10322(i)(2)at project completion. Additional Conditions: None. Points System Max.Possible Requested Points Points Points Awarded Cost Efficiency/Credit Reduction/Public Funds 20 20 20 Public Funds 20 20 20 Owner/Management Characteristics 9 •9 9 General Partner Experience 6 6 6 Management Experience 3 3 3 Housing Needs 10 10 10 Site Amenities 15 15 15 Within'/mile of transit stop,service every 30 minutes in rush hours 6 6 6 Within 1/2 mile of public park or community center open to general public 2 2 2 Within 1/2 mile of a full-scale grocery/supermarket of at least 25,000 sf 4 4 4 Within'/<mile of a public elementary school 3 3 3 Within 1 mile of medical clinic or hospital 2 2 2 Within 1/2 mile of a pharmacy I I I Service Amenities 10 10 10 LARGE FAMILY,SENIOR,AT-RISK HOUSING TYPES Service Coordinator,minimum ratio of 1 FTE/600 bedrooms 5 5 5 Adult ed/health&wellness/skill bldg classes,minimum 60 hrs/yr 5 5 5 Sustainable Building Methods 10 10 10 NEW CONSTRUCTION/ADAPTIVE REUSE Develop project in accordance w/requirements of:LEED 5 5 5 Develop project to requirements of-LEED Gold 5 5 5 Lowest Income 52 52 52 Basic Targeting 50 50 50 Deeper Targeting—at least 10%of units @ 30%AMI or less 2 2 2 Readiness to Proceed 20 20 20 Miscellaneous Federal and State Policies 2 2 2 State Credit Substitution 2 2 2 Total Points 148 148 1 148 Please Note: If more than the maximum Site Amenity points were requested,not all amenities may have been scored and/or verified. DO NOT RELY ON SCORING IN THIS COMPETITIVE CYCLE FOR FUTURE APPLICATIONS. ALL RE-APPLICATIONS ARE REVIEWED WITHOUT RELIANCE ON PAST SCORING. CA-14-162 5 September 24,2014 _ .Moog uO 81!s146 -papnlaul sainieaj diljna,, M o J o 00 CO P 4C m cR m r k rn O O G1 N Q d O w m N 04 0 tC CO v J LO o dam' LO w Z Z L6 cD N p v le o Z N v CO cWn U O °Z ti O W W W * W tq z c rn U o00 U CO O O ygzw O O J Y ° Ul Z LU°w z U O <LIJ A Y U O u, w CO �u Zn z Q. W CO S Q yam„ ��v2Z V = Q 6 .. U 0 cB i�o2 L V UO tB r� J uaoz� J O ��oaw W Q �, LLoo(D(!) W Q -� CO Q ww<i¢i. L 0 ll l N m v z O ru I'n Z�Z Qom, Q O LLJ aoaw- U O C p0U)Z< U C O LLJZT<Ul I— a Lu U,_ • �1. ru Er z � O O 4 s LL LL _ _ J j J cc Q Y o U a U W * * N O / 'E vJ N • `O N W L7J n` Y ro w Q 0 W Z Z C 4i 0 C, n U 0 n V 0 w U' mU w C7 mvl LL y ;5—$ O '1O 'n n d o 0 o CAVO�, Ul m . Jw�Z n. @ J W a? m CD Attachment: City of SB_HRPPApplication20l5 (4279 : HCD Grant) 5.E.b RECORDING REQUESTED BY Electronically Recorded in Official Records,County of San Bernardino 312 012 01 5 FIDELITY NATIONAL TITLE—23041871-P 12:39 PA( r BOB DUTTON SAN AND WHEN RECORDED MAIL TO ASSESSOR-RECORDER-CLERK Housing Authority of the County 688 Fidelity National Title MA of San Bernardino Doc#: 2015-0109634 Titles: 2 Pages: 17 715 East Brier Drive San Bernardino, CA 91408-2841 Fees Do Attn: Executive Director Taxes 00 Other .00 PAID .00 No fee for recording pursuant to Government Code Section 27383 SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE L t9 O U Z REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS N (Waterman Gardens—Valencia 9) u� Document Title N 0 w C .Q a o. a. Z m Cn w 0 U r c d E v R w Q Packet Pg. 121 oil . RECORDING REQUESTED BY FIDELITY NATIONAL TITLE-23441871-P AND WHEN RECORDED MAIL TO Housing Authority of the County of San Bernardino 715 East Brier Drive San Bernardino, CA 91408-2841 Attn: Executive Director No fee for recording pursuant to Government Code Section 27383 SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE c� ,L^ V U 2 REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS N (Waterman Gardens—Valencia 9) LO Document Title N C 0 r 0 .Q CL Q IL IL x i m Cl) 4- 0 U m E s U t4 Q e Packet Pg. 122 I f D RECORDING REQUESTED BY FIDELITY N�TIONAL TITLE �30� RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Housing Authority of the County of San Bernardino 715 East Brier Drive San Bernardino, CA 92408-2841 Attn: Executive Director No fee for recording pursuant to Government Code Section 27383 REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS L (Waterman Gardens—Valencia 9) c9 0 U This Regulatory Agreement and Declaration of Restrictive Covenants(the "Agreement") x is dated as of March 17, 2015 by and between the HOUSING AUTHORITY OF THE COUNTY OF SAN BERNARDINO, a public body, corporate and politic(the "Authori ") and VAL 9 N HOUSING PARTNERS,L.P., a California limited partnership("Owner"). S 0 N C RECITALS A. These Recitals refer to and utilize certain capitalized terms that are defined in a Article 1 of this Agreement. The parties intend to refer to those definitions in connection with a 0. their use in these Recitals. x i B. Owner intends to acquire a fee simple ownership interest in the real property N located at the corner of Valencia and 9th Street in the City of San Bernardino(the "Property")as o more particularly described in the attached Exhibit A. w U C. Owner intends to construct a seventy-six(76)unit rental housing complex on the Property, seventy-five (75) of which units will be affordable and one (1) manager's unit. E D. The Authority is providing a loan to Owner in the amount of One Million Dollars Q ($1,000,000)(the "Development Loan")pursuant to a Development Loan Agreement entered into by and between the Authority and Owner dated March 3, 2015, (the "Loan Agreement"). E. In order to ensure that the Development will be used and operated in accordance with certain conditions and restrictions regarding occupancy and affordability, the Authority and Owner wish to enter into this Agreement. THEREFORE, the Authority and Owner hereby agree as follows. 1 1373\1\1644011.5 Packef Pg:123 tom"` ARTICLE 1 DEFINITIONS 1.1 Definitions I When used in this Agreement,the following terms have the respective meanings assigned to them in this Article 1. (a) "Adjusted Income" means the total anticipated annual income of all persons in a household, as calculated in accordance with 25 California Code of Regulations Section 6914 or pursuant to a successor State housing program that utilizes a reasonably similar method of calculation of adjusted income. In the event that no such program exists,the Authority shall provide the Borrower with a reasonably similar method of calculation of adjusted income as provided in said Section 6914. c� 0 (b) "Agreement" means this Regulatory Agreement and Declaration of = Restrictive Covenants. a� ti N (c) "Authority" means the Housing Authority of the County of San 7T_ Bernardino. c N _ (d) "Authority Deed of Trust"means the deed of trust to the Authority on the Property which secures repayment of the Development Loan and the performance of the Loan Agreement and this Agreement. Q a a (e) "Authority Note" means the promissory note from Owner to the Authority evidencing all or any part of the Development Loan. =I m M (f) "Completion Date" means the date a final certificate of occupancy, or o equivalent document is issued by the City of San Bernardino to certify that the Development may be legally occupied. v w (g) "Development"means the Property and the Improvements. E (h) "Development Loan" has the meaning set forth in Recital D. Q (i) "Default" has the meaning set forth in Section 4.4 below. 0) "HUD"means the United States Department of Housing and Urban Development. (k) "Improvements" means the seventy-six(76)housing units and any other improvements to be constructed by Owner on the Property during the Term. (l) "Loan Agreement" has the meaning set forth in Recital D. 13731111644011.5 2 PackePg.124, (m) "Low Income Household" means a Tenant household with an Adjusted Income that does not exceed eighty percent(80%) of Median Income, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than eighty percent(80%) of Median Income on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. (n) "Low Income Rent" means the maximum allowable rent for a Low Income Unit pursuant to Section 2.2(a) below. (o) "Low Income Units" means the Units,which,pursuant to Section 2.1(a) below, are required to be occupied by Low Income Households. r (p) "Management Agent" has the meaning set forth in Section 3.4. L t9 (q) "Median Income" means the median gross yearly income adjusted for o household size in San Bernardino County, California, as published from time to time by HUD. _ In the event that such income determinations are no longer published, or are not updated for a a, period of at least eighteen (18)months,the Authority shall provide Owner with other income determinations which are reasonably similar with respect to methods of calculation to those LO previously published by HUD. c N C (r) "Owner" means Val 9 Housing Partners, L.P., a California limited partnership, and its authorized representatives, assigns,transferees, or successors-in-interest thereto. a a a (s) "Permitted Limited Partner" has the meaning set forth in Section 4.5 0. x i (t) "Property" has the meaning set forth in Recital B. N 4- 0 (u) "Rent" means the total of monthly payments by the Tenant of a Unit for Y the following: use and occupancy of the Unit and land and associated facilities, including L) parking;any separately charged fees or service charges assessed by Owner which are required of all Tenants, other than security deposits;an allowance for the cost of an adequate level of service E for utilities paid by the Tenant, including garbage collection, sewer,water, electricity, gas and other heating, cooking and refrigeration fuel, but not telephone service or cable TV; and any B other interest, taxes, fees or charges for use of the land or associated facilities and assessed by a public or private entity other than Owner, and paid by the Tenant. (v) "Tenant"means a household legally occupying a Unit pursuant to a valid lease with Owner. (w) "Term" means the term of this Agreement,which commences on the date of this Agreement and expires,unless sooner terminated in accordance with this Agreement,on the fifty-fifth (55th)anniversary of the Completion Date;provided,however, if a record of the Completion Date cannot be located or established, the Term will expire on the fifty-seventh (57th) anniversary of the date of this Agreement. I 13731111644011.5 3 Packet Pg. 125!' (x) "Unit(s)" means one or all of the seventy-six (76)rental units included in the Development, excluding the one(1)manager's unit. ARTICLE 2 AFFORDABILITY AND OCCUPANCY COVENANTS 2.1 Occupancy Requirements. (a) Low Income Units. During the Term,Owner shall rent thirty(30)Units to, and ensure that these Units are occupied by or, if vacant, available for occupancy, by Low Income Households. r (b) Disabled Persons Occupancy. Owner shall operate the Development at all a times in compliance with the applicable provisions of. (i)the Unruh Act; (ii)the California Fair Employment and Housing Act, (iii) Section 504 of the Rehabilitation Act of 1973; (iv)the v United States Fair Housing Act, as amended; (v)the Americans with Disabilities Act and(vi) any other applicable law or regulation. ti N d' 2.2 Allowable Rent 0 (a) Low Income Rent. Subject to the provisions of Section 2.2(b)below,the . o Rent(including utility allowance)paid by Tenants of the Low Income Units shall not exceed one-twelfth(1/121h)of thirty percent(30%) of the maximum qualifying income for a Low Income Household adjusted for household size. a a (b) Non-Oualifying Household. If,upon the annual certification of the income a Tenant of a Low Income Unit, Owner determines that a Tenant's income exceeds that m1 of a Low Income Household, such Tenant shall be permitted to continue to occupy the Unit and Cn such Tenant's Rent may be increased to one-twelfth(1/121')of thirty percent(30%) of the o household's actual income, adjusted for household size, upon sixty(60) days written notice to the w Tenant. v r d 2.3 Nondiscrimination. E �a (a) All of the Units shall be available for occupancy on a continuous basis to Q members of the general public who are income eligible. Owner shall not give preference to any particular class or group of persons in renting the Units, except as otherwise set forth in this Agreement and other public agency regulatory agreements encumbering the Property. There shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, source of income(e.g. SSI), age(except for lawful senior housing), ancestry,pregnancy, or disability, in the leasing, subleasing,transferring,use, occupancy,tenure, or enjoyment of any Unit nor shall Owner or any person claiming under or through Owner, 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, sublessees, subtenants, or vendees of any Unit or in connection with the employment of persons for the construction, operation and management of any Unit. 137311 U 644011.5 4 Packet Pg. 12 6' 5 E.b (b) Owner will accept as Tenants, on the same basis as all other prospective Tenants,persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing housing certificate program or the Housing Choice Voucher Program under Section 8 of the United States Housing Act, or its successor. Owner shall not apply selection criteria to Section 8 certificate or voucher holders that is more burdensome than criteria applied to all other prospective Tenants, nor shall Owner apply or permit the application of management policies or lease provisions with respect to the Development which have the effect of precluding occupancy of units by such prospective Tenants. ARTICLE 3 OPERATION OF THE DEVELOPMENT 3.1 Income Certification. c L Owner shall obtain, complete, and maintain on file, immediately prior to initial occupancy, and annually thereafter, income certifications from each Tenant renting any of the Low Income Units. Owner shall make a good faith effort to verify that the income provided by an applicant or occupying household in an income certification is accurate. Copies of Tenant ti income certifications shall be available to the Authority upon request. 7t LO 3.2 Tenant Records. o N C O Owner shall keep and maintain on the Development, or elsewhere with the Authority's written consent, in accordance with generally accepted accounting principles consistently applied, complete, accurate and current records pertaining to the Development, and shall permit Q any duly authorized representative of the Authority to inspect records, including records a. a. pertaining to income and household size of Tenants,Rent charged Tenants, and affirmative marketing requirements. All Tenant lists, applications and waiting lists relating to the =i Development shall at all times be kept separate and identifiable from any other business of (n Owner and shall be maintained as required by the Authority, in a reasonable condition for proper o audit and subject to examination during business hours by representatives of the Authority. Owner shall retain copies of all materials obtained or produced with respect to occupancy of the v Units for a period of at least five(5)years after creation. E 3.3 Taxes and Assessments. r Owner shall pay all real and personal property taxes, assessments and charges and all a franchise, income, employment, old age benefit,withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing, or any lien or charge from attaching to the Property;provided, however,that Owner may contest in good faith, any such taxes, assessments, or charges. In the event Owner exercises j its right to contest any tax, assessment, or charge against it, Owner,on final determination of the proceeding or contest,will immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and interest. The Authority acknowledges that Owner has the right to claim a"welfare exemption" to the payment of ad valorem taxes on the Property under California Revenue and Taxation Code Section 214(g). 137311 1644011.5 5 Packet Pg-127 3.4 Management Responsibilities. (a) Owner is responsible for all management functions with respect to the Development, including without limitation the selection of tenants, certification and recertification of household size and income, evictions,collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. The Authority shall have no responsibility over management of the Development. Owner shall retain a professional property management company approved by the Authority in its reasonable discretion to perform its management duties hereunder(the "Management Agent"). A resident manager shall also be required. (b) The Authority reserves the right to conduct an annual(or more frequently, if deemed necessary by the Authority)review of the management practices of the Development. y The purpose of each periodic review will be to enable the Authority to determine if the L Development is being operated and managed in accordance with the requirements and standards of this Agreement. Owner shall cooperate with the Authority in such reviews. x 3.5 Replacement of Management Agent. If, as a result of a periodic review,the Authority determines in its reasonable judgment that the Development is not being operated and CM managed in accordance with any of the material requirements and standards of this Agreement, ,r, the Authority shall deliver notice to Owner of its intention to cause replacement of the o Management Agent, including the reasons therefore. Within fifteen'(15)days after receipt by o Owner of such written notice,Authority staff and Owner shall meet in good faith to consider methods for improving the financial and operating status of the Development, including, without limitation, replacement of the Management Agent. Any replacement of the Management Agent C is subject to the rights of HUD and PNC Bank,N.A., the FHA mortgage lender, and is subject to a CL the consent of Borrower's investor limited partner. x i If,after such meeting,Authority staff recommends in writing the replacement of the Co Management Agent, Owner shall promptly dismiss the then-current Management Agent, and o shall appoint as the Management Agent a person or entity meeting the standards for a management agent set forth in Section 3.4 above and approved by the Authority pursuant to v Section 3.4 above. c a) E Any contract for the operation or management of the Development entered into by Owner shall provide that the Management Agent may be dismissed and the contract terminated as set a forth above. Failure to remove the Management Agent in accordance with the provisions of this Section constitutes a default under this Agreement, and the Authority may enforce this provision through legal proceedings as specified in Section 4.4 below. i 3.6 Development Maintenance, Inspection. (a) During the course of both rehabilitation and operation of the Development, Owner shall maintain the Development in good repair and in a neat, clean and orderly condition. If there arises a condition in contravention of this requirement,and if Owner has not cured such condition within thirty(30)days after receiving a notice from the Authority of such a condition,then in addition to any other rights available to the Authority, the Authority shall have the right to perform all acts necessary to cure such condition, and to establish or 1373\1\164401 1.5 6 Packet Pg. 128 enforce a lien or other encumbrance against the Development. (b) The Authority shall have the right to perform an on-site inspection of the Development at least one(1)time per year to verify compliance with the requirements of this Agreement and the Loan Agreement. Owner agrees to cooperate in such inspection. If Authority desires to inspect the interior of the residential units, Authority shall give Owner sufficient notice to allow Owner to give seventy-two (72) hours'notice to residents. ARTICLE 4 MISCELLANEOUS 4.1 Term. The provisions of this Agreement shall apply to the Development for the entire Term R even if the Development Loan is paid in full prior to the end of the Term. This Agreement shall bind any successor, heir or assign of the Owner,whether a change in interest occurs voluntarily v or involuntarily, by operation of law or otherwise, except as expressly released by the Authority. The Authority makes the Development Loan on the condition,and in consideration of,this T provision, and would not do so otherwise. IT Ln 4.2 Notice of Expiration of Term. N _ 0 At least six(6)months prior to the expiration of the Term Owner shall provide by first- class mail, postage prepaid, a notice to all Tenants in Units containing(a)the anticipated date of the expiration of the Term, (b)any anticipated Rent increase upon the expiration of the Term, (c) a a statement that a copy of such notice will be sent to the Authority, and(d) a statement that a o°'. public hearing may be held by the Authority on the issue and that the Tenant will receive notice W of the hearing at least fifteen (15)days in advance of any such hearing. Owner shall also file a m1 copy of the above-described notice with the Executive Director of the Authority. In addition, Cn Owner shall comply with the requirements set forth in California Government Code Sections o 65 863.10 and 65863.11. r U 4.3 Covenants to Run With the Land. m E The Authority and Owner hereby declare their express intent that the covenants and restrictions set forth in this Agreement shall run with the land,and shall bind all successors in Q title to the Development,provided, however,that on the expiration of the Term of this Agreement said covenants and restrictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Development or any portion thereof, shall be held conclusively to have been executed, delivered and accepted subject to such covenants and restrictions, regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument, unless the Authority expressly releases such conveyed portion of the Development from the requirements of this Agreement. 4.4 Default, Enforcement by the Authority. If Owner fails to duly perform, comply with, or observe any of the conditions,terms,or C covenants of this Agreement, and fails to cure the default within thirty(30) days after the 13731111644011.5 7 Packet Pg,129; Authority has notified Owner in writing of the default(unless a longer cure period is provided for in the Loan Agreement for the particular default in which case such cure period shall apply), such will be considered a "Default" and the Authority shall have the right to enforce this Agreement by any or all of the following actions, or any other remedy provided by law: (a) Calling;the Development Loan. The Authority may declare a default under the Authority Note,accelerate the indebtedness evidenced by the Authority Note,and with respect to the Development Loan, proceed with foreclosure under the Authority Deed of Trust. So long as the Secretary of HUD or his/her successor or assigns, are the insurers or holders of the first mortgage on the Waterman Gardens-Valencia 9, FHA Project No. 143-35130, any acceleration of the Note is subject to HUD approval. (b) Action to Compel Performance or for Damages. The Authority may bring an action at law or in equity to compel Owner's performance of its obligations under this Agreement, and/or for damages. 0 U (c) Remedies Provided Under Loan Agreement. The Authority may exercise any other remedy provided under the Loan Agreement. N d' 4.5 Notice and Cure Right of Limited Partner. Ln 0 N The Authority agrees that it shall provide any limited partner of Owner at the address o shown in Section 4.10 (the "Permitted Limited Partner"), a duplicate copy of all notices of Default that the Authority may give to or serve in writing upon Owner, provided,the Authority shall have no liability to the Penmitted Limited Partner for its failure to do so. The Permitted a Limited Partner shall have the right,but not the obligation,to cure any Default of Owner set forth a in such notice,during the applicable cure period,and the Authority will accept tender of such cure = as if delivered by Owner. If a Permitted Limited Partner is unable to cure a Default because mi Owner's general partner,is in bankruptcy and/or because the cure requires removal of the general M partner of Owner and the Permitted Limited Partner is proceeding diligently to remove the c general partner of Owner in order to effect a cure of the Default,the cure period shall be extended for such reasonable time as is necessary for the Permitted Limited Partner to effect a v cure of the Default, but in no event longer than sixty (60)days after the date of receipt by the Permitted Limited Partner of written notice of the Default. E 4.6 Recording and Filing. a The Authority and Owner shall cause this Agreement, and all amendments and supplements to it, to be recorded in the Official Records of San Bernardino County. 4.7 Governing Law. This Agreement shall be governed by the laws of the State of California. 4.8 Waiver of Requirements. No waiver of the requirements of this Agreement shall occur unless expressly waived by the Authority in writing. No waiver will be implied from any delay or failure by the Authority to 1373011644011.5 8 Packet pg: 130 i take action on any breach or default of Owner or to pursue any remedy permitted under this Agreement or applicable law. Any extension of time granted to Owner to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the Authority to any act or omission by Owner shall not be construed to be consent to any other or subsequent act or omission or to waive the requirement for the Authority's written consent to future waivers. 4.9 Amendments. This Agreement may be amended only by a written instrument executed by all the parties hereto or their successors in title, and duly recorded in the real property records of the County of San Bernardino. 4.10 Notices. L c� Any notice requirement set forth herein shall be deemed to be satisfied three (3)days after mailing of the notice first-class United States certified mail,postage prepaid, addressed to the appropriate party as follows: N d' Authority: Housing Authority of the County of San Bernardino to 715 East Brier Drive N San Bernardino, CA 92408-2841 c Attention: Executive Director with a copy to: Goldfarb & Lipman LLP a 1300 Clay Street, 11th Floor a Oakland, CA 94612 = Attention: M David Kroot 1 m Cn Owner: Val 9 Housing Partners, L.P. c 9421 Haven Avenue Rancho Cucamonga,CA 91730 r Attn: President/CFO E With a copy to: Law Offices of Edward A. Hopson w 665A No.Mountain Avenue a Upland, CA 91786 Attn: Edward A.Hopson and to Permitted Limited Partner: Wells Fargo Community Lending& Investment Wells Fargo Bank Affordable Housing Community Development Corporation 301 South College Street, 171h Floor MAC D1053-170 Charlotte,NC 28288 With a copy to: Kutak Rock 13731111644011.5 9 Packet Pg.731 i 1650 Farnam Street Omaha,NE 68102 Attn: Robert Coon Such addresses may be changed by notice to the other party given in the same manner as provided above. 4.11 Attorneys' Fees. In any action brought to enforce this Agreement,the prevailing party shall be entitled to all costs and expenses of suit, including attorneys' fees. This section shall be interpreted in accordance with California Civil Code Section 1717 and judicial decisions interpreting that statute. c ca L 4.12 Severability. 0 U If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions of this Agreement shall not in any way be 2 affected or impaired thereby. L 4.13 Multiple Originals, Counterparts. N 0 This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts. a a Q a. a. Ce (signatures continue on following page) m1 Cn w 0 U r c m E t v to r r Q I 1373111164401 LS 10 Packet Pg:132 i 5.E.b IN WITNESS WHEREOF,the Authority and Owner have entered into this Agreement, as of the date first written above, OWNER: Val 9 Housing Partners,L.P.,a California limited partnership By: Val 9 MGP,LLC,a California limited liability company, its sole general partner Y By: National Community Renaissance 1° of California, its sole member and o i manager U N By: Trac Thom*, Ln Chief Fin tal Officer N C 0 .Q a a a I m Signatures continue on following page 0 Y U Y E V Y Y a S-1 Authority Regulatory Agreement Signature Page 1373\l\1644011.5 Packet Pg. 133 AUTHORITY: HOUSING AUTHORITY OF THE COUNTY OF SAN BERNARDINO, a public body, corporate and politic ' ► By: Daniel/Nackerinan,executive Director Y C ,L^ V 0 U x N 7 LO T- CD N C CL O r O U .Q a CL a x i m m w O a U y E Q .S-Z AamnwM swat"PW 13731N644011.3 Packet Pg. 134 ' YAW,- A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) COUNTY OF k la Q!' �fid } On 010 efore e, A /A .11J6 I?&otary L Public,personally appeare ,who proved to me o ion the basis of satisfactory evidence to e t e person(s)whose name(s) is/are subscribed to the = within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s) on the instrument the person(s), or N ' the entity upon behalf of which the person(s)acted,executed the instrument. Ln I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ° WITNESS my hand and official seal. a Q. a a a. x Nam . o N r llc w U ' r WO Eff C IN dISM 1 2063754 E NOWTPU IC•cal"WMA son Berm"Cou* My Cam 28 201e a 1373\1\1644411.5 Packet Pg. 135 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. Di*04 aWaxbia- jm x TL' llT.'!�A T J',R�yitik•14'1+ } ) COUNTY OF } On f -A,- Q W6 ,before me, Notary Public,personally appeared yl who proved to me o on the basis of satisfactory evidence to be the person(s)w e name(s)is/are subscribed to the = within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),or N the entity upon behalf of which the person(s)acted,executed the instrument. LO pis 6a—4t&o bia. I certify UNDER PENALTY OF PERJURY under the laws of the ei€errria that N the foregoing paragraph is true and correct. c WITNESS my hand and official seal. a CL a a a tr x ��II{Il{fllf�� ml �it�!:.•Y'p• Name: o ir, � �.• Notary Pub P U co"4 SSIOK; :.c EXPIRES E -L T' Uftlti�,�.: Q 1373\1\1644011.5 Packet Pg.136 5.E.b EXHIBIT A LEGAL DESCRIPTION Real property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: A PORTION OF LOT 7, BLOCK 42 OF RANCHO SAN BERNARDINO ACCORDING TO THE OFFICIAL MAP cLo RECORDED IN BOOK 7,PAGE 2, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE c9 OF CALIFORNIA, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND MORE v PARTICULARLY DESCRIBED AS FOLLOWS: _ BEGINNING AT A POINT ON THE NORTH LINE OF NINTH ST. 1,774.70 FEET EAST FROM THE CENTER LINE N OF WATERMAN AVENUE; THENCE NORTHERLY PARALLEL TO THE WEST LINE OF SAID LOT 7 A d' DISTANCE OF 602.75 FEET;THENCE EASTERLY PARALLEL TO THE SOUTH LINE OF SAID LOT 7 TO A POINT ,n 50.00 FEET FROM THE EAST LINE OF SAID LOT 7;THENCE SOUTHERLY PARALLEL TO THE SAID EAST LINE N OF LOT 7 TO THE SOUTH LINE OF SAID LOT 7;THENCE WESTERLY ALONG THE SAID SOUTH LINE OF LOT 7 c OF THE TRUE POINT OF BEGINNING. ° Y SAID LAND IS ALSO SHOWN AS PARCEL 1 OF CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT a NO. 88-30 RECORDED SEPTEMBER 29, 1989 AS INSTRUMENT NO. 89-365668 OF OFFICIAL RECORDS. Q a APN(s): 147-191-12 x m 4- 0 r U r E s v R r Q 13731111644011.5 A-1 Packet Pg:137 S.E.b NOTARY SEAL GOVERNMENT CODE SECTION 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: NAME OF NOTARY Michele Lee Barbarini DATE COMMISSION EXPIRES September 28, 2018 r c L COMMISSION NUMBER 2083754 0 U x PLACE OF EXECUTION Newport Beach CA rn ti N d' DATE March 19, 2015 T- 7C��L o SIGNED o w U Q � Q Q CL CL x i m Cn 4- 0 U w c m E U w Q Notary Seal Affidavit(notarysealaff)(04-06) Packet Pg. 138 ;7 5.E.b ` RECORDING REQUESTED SY FIDELITY NATIONAL TITLE Electronically Recorded in official Records,County of San Bernardino 312o12a15 12:39 PN ,230 /ffZ-/0 BOB DUTTON SAN ASSESSOR-RECORDER-CLERK RECORDING REQUESTED BY 688 Fidelity National Title MA AND WHEN RECORDED MAIL T0: Doc 9: 2015-01 09632 Titles: 2 Pages: 21 Office of the City Manager Fees .00 City of San Bernardino Taxes .00 300 N "D" Street, Sixth Floor Other o0 San Bernardino, CA 92418 PAID .00 Attn: Housing Director No fee for recording pursuant to Government Code Section 27383 w c 'L^ V 0 REGULATORY AGREEMENT AND _ DECLARATION OF RESTRICTIVE COVENANTS (Waterman Gardens- Valencia 9 Apartments) N LO This Regulatory Agreement and Declaration of Restrictive Covenants(the "Agreement") is dated March 17,2015 and is between the City of San Bernardino, a charter city of the State of California(the "Lity"), and Val 9 Housing Partners, L.P., a California limited partnership ("Borrowe r"). co a a o. RECITALS x I A. Defined Terms used but not defined in these recitals are as defined in Article 1 of N this Agreement. o B. Borrower owns or is acquiring real property located at the northwest corner of Valencia Avenue and 9t" Street, in the City of San Bernardino, County of San Bernardino, State of California,as more particularly described in Exhibit A(the"Pro e "). Borrower intends to E construct on the Property a Seventy-Six(76) unit multifamily affordable housing development Y (including one manager's unit)(the "Improvements"). The Improvements and the Property are a referred to as the "Development". C. Pursuant to a HOME Investment Partnerships Act Loan Agreement by and between the City and Borrower,dated as of March 17, 2015 (the "Loan Agreement"), the City has made a loan of up to One Million Five Hundred Thousand ($1,500,000) of HOME Investment Partnerships Act funds ("HOME Funds") to fund costs associated with the acquisition and construction of the Improvements (the "Loan"). The City has the authority to loan the HOME Funds pursuant to 24 C.F.R. 92.205, D. The City has agreed to make the Loan on the condition that the Development be maintained and operated in accordance with restrictions concerning affordability, operation, and maintenance that are set forth in this Agreement and in the related documents evidencing the Loan. 1 Packet Pg. 139 n7 RECORDING REQUESTED BY FIDELITY NATIONAL TITLE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Office of the City Manager City of San Bernardino 300 N"D" Street, Sixth Floor San Bernardino, CA 92418 Attn: Housing Director No fee for recording pursuant to Government Code Section 27383 �. c a 0 REGULATORY AGREEMENT AND _ DECLARATION OF RESTRICTIVE COVENANTS (Waterman Gardens-Valencia 9 Apartments) N Ln This Regulatory Agreement and Declaration of Restrictive Covenants (the "Aureement") is dated March 17, 2015 and is between-the City of San Bernardino, a charter city of the State of c California(the "C ity "), and Val 9 Housing Partners, L.P., a California limited partnership ("Borrower"). .Q a a RECITALS x i A. Defined Terms used but not defined in these recitals are as defined in Article 1 of 0° co this Agreement. - B. Borrower owns or is acquiring real property located at the northwest corner of U Valencia Avenue and 9t"Street,in the City of San Bernardino, County of San Bernardino,State of California, as more particularly described in Exhibit A(the "Property"). Borrower intends to E construct on the Property a Seventy-Six (76) unit multifamily affordable housing development (including one manager's unit) (the "Improvements"). The Improvements and the Property are a referred to as the "Development". C. Pursuant to a HOME Investment Partnerships Act Loan Agreement by and between the City and Borrower,dated as of March 17,2015 (the "Loan Agreement"),the City has made a loan of up to One Million Five Hundred Thousand($1,500,000) of HOME Investment Partnerships Act funds("HOME Funds")to fund costs associated with the acquisition and construction of the Improvements (the "Loan"). The City has the authority to loan the HOME Funds pursuant to 24 C.F.R. 92.205. D. The City has agreed to make the Loan on the condition that the Development be . maintained and operated in accordance with restrictions concerning affordability, operation, and maintenance that are set forth in this Agreement and in the related documents evidencing the Loan. 1 Packet ft 140 1 E. In consideration of receipt of the Loan at an interest rate substantially below the market rate, Borrower agrees to observe all the terms and conditions set forth below. The parties therefore agree as follows. ARTICLE 1 DEFINITIONS; EXHIBITS 1.1 Definitions. The following terms have the following meanings: w c (a) "Actual Household Size" means the actual number of persons in the c� applicable household. o x (b) "Adjusted Income" means the total anticipated annual income of all ti persons in the Tenant household as calculated pursuant to 24 C.F.R. 92.203(b)(1). Adjusted income includes income from all persons in the household, including nonrelated individuals. L 0 (c) "Agreement" has the meaning set forth in the first paragraph of this o Agreement. (d) "City" has the meaning set forth in the first paragraph of this Agreement. a CL a (e) "City Manager"means the person holding the office of city manager for a a the City pursuant to Article V, Section 100 of the Charter of the City of San Bernardino. W x i (f) "County" means the County of San Bernardino, a political subdivision of N the State of California. o w (g) "Completion Date"means the date that all of the following have occurred: (i)a final certificate of occupancy, or equivalent document is issued by the City to certify a completion of the construction of the Development; (ii)the final disbursement of HOME funds for the Development has been made; (iii)the City has verified the Development complies with tu the property standards set forth in 24 C.F.R. 92.251; and(iv)all project completion information Q has been entered by the City into the Integrated Disbursement and Information System(IDIS). (h) "Completion of Construction" means the date the construction of the Development is completed as evidenced by the issuance of a certificate of occupancy or equivalent document issued by the City,to certify completion of the construction of the Development. (i) "City-Assisted Units" means the seven (7)Units within the Development designated as assisted by the City pursuant to this Agreement,which Units are "floating" Units as defined in 24 C.F.R. 92.2520). 4 0) "Deed of Trust"means the Deed of Trust with Assignment of Rents, Security Agreement and Fixture Filing of even date herewith by and among Borrower, as trustor, 2 Packet Pg:141 Fidelity National Title Insurance Company, as trustee, and the City, as beneficiary,that will encumber the Property to secure repayment of the Loan and Borrower's performance of the covenants set forth in the documents evidencing the Loan. (k) "Development" has the meaning set forth in Paragraph B of the Recitals. (1) "High HOME Rent" means a monthly Rent amount not exceeding the maximum rent published by HUD for a Low Income Household for the applicable bedroom size as set forth in 24 C.F.R. 92.252(a). (m) "HOME" means Home Investment Partnerships Act Program funded pursuant to the Cranston-Gonzales National Housing Act of 1990. r c �a L (n) "HOME Funds" has the meaning set forth in Paragraph C of the Recitals. 0 U (o) "HOME Regulations" means the regulations set forth in 24 C.F.R. Part 92. ti (p) "HOME Term" means the period beginning on the date of this Agreement and ending on the twentieth(20th) anniversary of the date of this Agreement. LO 0 N (q) "HUD" means the United States Department of Housing and Urban o Development. (r) Loan has the meaning set forth in Paragraph C of the Recitals. Q a a. (s) "Loan Agreement" has the meaning set forth in Paragraph C of the = Recitals. m� m (t) "Loan Documents" means the documents executed by Borrower ,, evidencing the Loan including this Agreement, the Note,Deed of Trust, and Loan Agreement. L) Y (u) "Low HOME Rent" means a monthly Rent amount not exceeding the maximum rent published by HUD for a Very Low Income Household for the applicable bedroom size or as otherwise set forth in 24 C.F.R. 92.252(b). r a (v) "Low Income Household" means a Tenant household with an Adjusted Income that does not exceed eighty percent(80%) of Median Income,with adjustments for smaller and larger families,except that HUD may establish income ceilings higher or lower than eighty percent(80%)of Median Income on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes, as such definition may be amended pursuant to 24 C.F.R. Section 92.2. An individual who is a student that is ineligible to receive Section 8 assistance under 24 C.F.R. 5.612,and thus ineligible to receive any type of HOME assistance, shall not qualify as a Low Income Household. (w) "Management Agent" has the meaning set forth in Section 5.2. 3 Packeff Pg 142 i W "Median Income" means the median gross yearly income, adjusted for Actual Household Size as specified herein, in the County of San Bernardino, California,as published from time to time by HUD. In the event that such income determinations are no longer published, or are not updated for a period of at least eighteen(18)months,the City shall provide Borrower with other income determinations that are reasonably similar with respect to methods of calculation to those previously published by HUD. (y) "Note" means the promissory note of even date herewith that evidences Borrower's obligation to repay the Loan, as such may be amended form time to time. (z) "Property"has the meaning set forth in Paragraph B of the Recitals. (aa) "Rent" means the total monthly payments by the Tenant of a Unit for the _ following: (i)use and occupancy of the Unit and land and associated facilities, including o parking; (ii) any reasonable and customary separately charged fees or service charges assessed _ by Borrower which are required of all Tenants which meet the requirements under 24 C.F.R. 92.214(b)(3), other than security deposits; (iii)the City-approved utility allowance, calculated N pursuant to 24 C.F.R. 92.252(d), for the cost of an adequate level of service for utilities paid by Iq the Tenant, including garbage collection, sewer,water,electricity, gas and other heating,cooking o and refrigeration fuel, but not telephone service or cable TV; and(iv) any other interest,taxes, _ fees or charges for use of the land or associated facilities and assessed by a public or private ° entity other than Borrower, and paid by the Tenant. In no event shall the Rent of a City-Assisted 2 Unit exceed the amount approved by the City pursuant to Section 2.2 hereof. Q a a (bb) "Service Provider" has the meaning set forth in Section 5.6. x i (cc) "Tenant"means the tenant household that occupies a Unit in the Development. c Y (dd) "Tenant Services" has the meaning set forth in Section 5.6. d (ee) "Term" means the term of this Agreement which commences as of the date of this Agreement, and unless sooner terminated pursuant to the terms of this Agreement, expires on the date fifty-five(55) years from the Completion Date. a (ff) "Unit(s)" means one (1) or more of the units in the Development.' (gg) "Very Low Income Household" means a household with an Adjusted Income that does not exceed fifty percent(50%) of Median Income,with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than fifty percent(50%)of Median Income on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents,or unusually high or low family incomes, as set forth in 24 C.F.R. Section 92.2. An individual who is a student that is ineligible to receive Section 8 assistance under 24 C.F.R. 5.612, and thus ineligible to receive any type of HOME assistance, shall not qualify as a Very Low Income Household. 4 Packet Pg.143 (hh) "Very Low Income Units"means the Units which,pursuant to Section 2.1(a) below, are required to be occupied by Very Low Income Households. 1.2 Exhibits The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference: Exhibit A: Legal Description of the Property Exhibit B: Schedule of HOME Rents Exhibit C: Certificate of Continuing Program Compliance Exhibit D: Form of Certification of Tenant Eligibility r Exhibit E: HUD Rider L c� 0 V ARTICLE 2 AFFORDABILITY AND OCCUPANCY COVENANTS N 2.1 Occupancy Requirements. Ln 0 N (a) Very Low Income Units. During the Term,Borrower shall rent seven(7) c City-Assisted Units, and ensure that these Units are occupied or, if vacant, available for occupancy,by Very Low Income Households. �. a a (b) Intermingling of Units. The City-Assisted Units are required to be one(1) a one-bedroom Unit and six(6)three-bedroom Units and are to be intermingled throughout the XI Development and of comparable quality to all other Units.All Tenants must have equal access to N and enjoyment of all common facilities in the Development. o w (c) Disabled Persons Occupancy. Borrower shall cause the Development to be operated at all times in compliance with the provisions of: (i)the Unruh Act, (ii)the California Fair Employment and Housing Act, (iii) Section 504 of the Rehabilitation Act of E 1973, (iv)the United States Fair Housing Act,as amended, and (v) the Americans With Disabilities Act of 1990,which relate to disabled persons access. Borrower shall indemnify, a protect, hold harmless and defend(with counsel reasonably satisfactory to the City)the City, and its elected officials,officers and employees, from all suits, actions, claims, causes of action, costs, demands,judgments and liens arising out of Borrower's failure to comply with applicable legal requirements related to housing for persons with disabilities. The provisions of this subsection will survive expiration of the Term or other termination of this Agreement, and remain in full force and effect. 2.2 Allowable Rent. (a) Very Low Income Rent. Subject to the provisions of Section 2.3 below, the Rent paid by Tenants of Very Low Income Units may not exceed the Low HOME Rent provided annually by the City. 5 Packet Pg. 144 b No Additional Fees. Borrower may not charge an fee other than Rent to ( ) Y g Y > any Tenant of the City-Assisted Units for any housing or other services provided by Borrower. 2.3 Rent Increases, Increased Income of Tenants. (a) Rent Increases. The proposed initial Rents and subsequent Rents for all City-Assisted Units shall be provided to the Borrower by the City prior to initial or subsequent occupancy and prior to a rent increase, and shall be subject to the HOME Regulations. A schedule of current HOME rents is attached as Exhibit B. Borrower may not impose any Rent increases on City-Assisted Units,without prior submission to the City of any proposed Rent increases and without written approval from the City of the proposed Rent increases. The Rent for such City-Assisted Units may be increased no more than once annually based upon the annual income certification described in Article 3 and in no event shall any increase exceed three (3%)percent. Tenants shall be given at least sixty (60)days written notice prior to any Rent increase. The City will provide Borrower with a schedule of maximum permissible Rents for the City-Assisted Units annually. T ti (b) Non-Qualifying Household. If,upon the annual certification of the income 7t a Tenant of a City-Assisted Unit,Borrower determines that the income of a Very Low Income Household has increased above the qualifying limit for a Low Income Household, such Tenant N shall be permitted to retain the Unit and upon expiration of the Tenant's lease and upon sixty(60) o days written notice,the Rent must be increased to the lesser of one-twelfth(1/121h)of thirty percent(30%)of the actual Adjusted Income of the Tenant, or fair market rent(subject to 24 Q C.F.R. 92.252(i)(2)regarding low income housing tax credit requirements), and Borrower shall a rent the next available Unit to a Very Low Income Household or Low Income Household as applicable to comply with the requirements of Section 2.1 above, at a Rent not exceeding the =i maximum Rent specified in Section 2.2, or re-designate another comparable Unit in the y Development with a Very Low Income Household or Low Income Household as applicable as a — City-Assisted Unit,to meet the requirements of Section 2.1 above. Upon renting the next Y available Unit in accordance with Section 2.1 or re-designating another Unit in the Development as a City-Assisted Unit,the Unit with the over-income Tenant will no longer be considered a City-Assisted Unit. E U (c) Termination of Occupancy. Upon termination of occupancy of a City- Q Assisted Unit by a Tenant, such Unit will be deemed to be continuously occupied by a household of the same income level as the initial income level of the vacating Tenant, until such Unit is reoccupied or another Unit is re-designated as a City-Assisted Unit, at which time categorization of the Unit will be established based on the occupancy requirements of Section 2.1. 2.4 - Units Available to the Disabled. Borrower shall construct the Development in compliance with all applicable federal and state disabled persons accessibility requirements including but not limited to the Federal Fair Housing Act; Section 504 of the Rehabilitation Act of 1973;Title II and/or Title III of the Americans with Disabilities Act; and Title 24 of the California Code of Regulations.In compliance with Section 504 of the Rehabilitation Act, Borrower shall construct a minimum of four(4)units in the Development shall be constructed to be readily accessible and usable by households with a mobility impaired member and a minimum of two (2) units shall be constructed and to be readily accessible and usable by households with a 6 Packet Pg.,145 hearing or visually impaired member. ARTICLE 3 INCOME CERTIFICATION AND REPORTING 3.1 Income Certification. Borrower shall obtain,complete, and maintain on file, immediately prior to initial occupancy and annually thereafter, income certifications from each Tenant renting any of the City-Assisted Units. Borrower shall cause each Tenant in a City- Assisted Unit to execute a Certification of Tenant Eligibility in the form attached as Exhibit D. Borrower shall fill out the "Development Owner" portion of the Certification of Tenant Eligibility and provide it to the City along with supporting documentation collected by Borrower. Borrower shall make a good faith effort to verify the accuracy of the income provided by all applicants or all members of the occupying household, as the case may be, in the income certification. To verify the information Borrower shall take two or more-of the following steps: (i)obtain pay stubs for the most recent two months; (ii) obtain an income flax return for the most recent tax year; (iii) conduct a credit agency or similar search; (iv) obtain an income verification N form from the applicant's current employer verifying employment for the last two months; (v) obtain an income verification form from the Social Security Administration and/or the California Ln Department of Social Services if the applicant receives assistance from either of such agencies, N verifying assistance for the last two months; or(vi) if the applicant is unemployed and does not o r have a tax return,obtain another form of independent verification. Copies of the Certifications of Tenant Eligibility and accompanying documentation must be submitted to the City annually Q for each of the City-Assisted Units. a a 12 Reporting Requirements. Borrower shall submit to the City(a)not Iaer than the = forty-fifth(45th) day after the close of each calendar year,or such other date as may be requested c' by the City, a signed copy of the Certification of Program Compliance in the form attached as - Exhibit C, and(b)within fifteen(15)days after receipt of a written request, any other w information or completed forms requested by the City in order to comply with reporting requirements of HUD,the State of California, and the City. E 3.3 Additional Information. Borrower shall provide any additional information reasonably requested by the City. r a 3.4 Records. Borrower shall maintain complete,accurate and current records pertaining to the Development,and shall permit any duly authorized representative of the City to inspect records, including records pertaining to income and household size of Tenants and Rent charged to such Tenants. All Tenant lists, applications and waiting lists relating to the Development are to be at all times: (i) separate and identifiable from any other business of Borrower, (ii)maintained as required by the City, in a reasonable condition for proper audit,and (iii) subject to examination during business hours by representatives of the City. Borrower shall retain copies of all materials obtained or produced with respect to occupancy of the units for a period of at least five(5)years. The City may audit, examine and make copies of all books, records or other documents of Borrower that pertain to the Development. 3.5 HOME Record Requirements. For the period of the HOME Term all records Packet Pg,146 maintained b Borrower pursuant to Sections 3.2 and 3.4 above are to be i)maintained in Y p ( compliance with all applicable HUD records and accounting requirements,and(ii) open to and available for inspection and copying by HUD and its authorized representatives at reasonable intervals during normal business hours;provided however, records pertaining to Tenant income verifications,Rents, and Development physical inspections must be kept for the most recent five(5)year period and are subject to HUD inspection for five(5) years after expiration of the HOME Term. Borrower is subject to the audit requirements set forth in 24 CFR 92.505 during the HOME Term. 3.6 On-Site Inspection. The City may perform,or cause to be performed, an on-site inspection of the Development(including Units, subject to the rights of Tenants)at least one (1) time per year upon twenty-four(24)hours' notice during normal business hours to monitor compliance with this Agreement. Borrower shall cooperate in making the Property available for L such inspection. Borrower agrees and acknowledges that the City must conduct on-site inspections, consistent-with the requirements-of 24 C.F.R. 92.504(d),to determine compliance with the property standards set forth in 24 C.F.R. 92.251,at least once every three(3)years after the completion of construction of the Development. N After the completion of an inspection the City shall deliver a copy of the inspection report to the Borrower. If the City determines as a result of such inspection that there are any N life-threatening health and safety related deficiencies, Borrower has the obligation to correct o such deficiencies immediately,in accordance with 24 C.F.R. 92.251. If the City determines as a result of the inspection that there are any deficiencies for any of the inspectable items in the Q Development,the Borrower shall correct such deficiencies within fifteen(15)days from the a delivery of the inspection report or if a period longer than fifteen(15) days is reasonably necessary to correct the deficiency,then Borrower must begin to correct the deficiency within =i fifteen(15)days and correct the deficiency as soon as reasonably possible. In addition,the co Borrower acknowledges that the City may re-inspect the Development to verify all deficiencies o have been corrected or rely on third party documentation submitted by the Borrower for non- hazardous deficiencies in conformance with 24 C.F.R 92.504(d). Y E ARTICLE 4 OPERATION OF THE DEVELOPMENT a 4.1 Residential Use. Borrower shall operate the Development for residential use only and such ancillary uses permitted at the Development as approved by the City. No part of the Development may be operated as emergency shelters (including shelters for disaster victims)or facilities such as nursing homes, convalescent homes,hospitals,residential treatment facilities, correctional facilities,halfway houses,housing for students,or dormitories (including farmworker dormitories). 4.2 Compliance with Loan Documents and Program Requirements. Borrower's actions with respect to the Property shall at all times be in full conformity with: (i) all requirements of the Loan Documents; (ii)all requirements imposed on projects'assisted with HOME Funds as contained in 42 U.S.C. Section 12701,et seq., 24 C.F.R. Part 92, and other 8 Racket Rg. 147 implementing rules and regulations, as such maybe amended or supplemented from time to time, and (iii) any other regulatory requirements imposed on Borrower. 4.3 Taxes and Assessments. Borrower shall pay all real and personal property taxes, assessments and charges and all franchise, income, employment,old age benefit,withholding, sales,and other taxes assessed against it,or payable by it, at such times and in such manner as to prevent any penalty from accruing,or any lien or charge from attaching to the Property; provided, however,that Borrower may apply for a property tax exemption for the Property under any provision of law or contest in good faith, any such taxes, assessments,or charges. In the event Borrower exercises its right to contest any tax, assessment,or charge against it,Borrower, on final determination of the proceeding or contest, will immediately pay or discharge any decision or judgment rendered against it,together with all costs, charges and interest. L 4.4 Property Tax Exemption. Borrower shall not without the prior written consent of o the City apply for a property tax exemption for the Property under any provision of law except U x California Revenue and Taxation Section 214(g). ti N d ARTICLE 5 PROPERTY MANAGEMENT,MAINTENANCE AND TENANT SERVICES 0 5.1 Management Responsibilities. Borrower is responsible for all management functions with respect to the Development, including without limitation the selection of Tenants a in accordance with the requirements of 24 C.F.R. 92.253(d), certification and recertification of a household size and income, evictions, collection of rents and deposits,maintenance, landscaping, 0. routine and extraordinary repairs,replacement of capital items, and security. The City has no =i responsibility for management of the Development. Borrower shall retain a professional property Cn management company approved by the City in its reasonable discretion to perform Borrower's o management duties hereunder. An on-site property manager is also required. U 5.2 Management Agent. Borrower shall cause the Development to be managed by an experienced management agent reasonably acceptable to the City,with a demonstrated ability to E operate residential facilities like the Development in a manner that will provide decent, safe, and sanitary housing(the "Management Agent"). The City pre-approves the National Community a Renaissance of California as the initial Management Agent. Borrower shall submit for the City's approval the identity of any proposed subsequent Management Agent. Borrower shall also submit such additional information about the background, experience and financial condition of any proposed Management Agent as is reasonably necessary for the City to determine whether the proposed Management Agent meets the standard for a qualified Management Agent set forth above. If the proposed Management Agent meets the standard for a qualified Management Agent set forth above,the City shall approve the proposed Management Agent by notifying Borrower in writing. Unless the proposed Management Agent is disapproved by the City within thirty (30) days, which disapproval is to state with reasonable specificity the basis for disapproval, it shall be deemed approved. 5.3 Periodic Performance Review. The City reserves the right to conduct an annual (or more frequently, if deemed necessary by the City)review of the management practices and 9 Packet!?g.148 financial status of the Development. The purpose of each periodic review will be to enable the City to determine if the Development is being operated and managed in accordance with the requirements and standards of this Agreement. Borrower shall cooperate with the City in such reviews. 5.4 Replacement of Management Agent. If, as a result of a periodic review,the City determines in its reasonable judgment that the Development is not being operated and managed in accordance with any of the material requirements and standards of this Agreement,the City shall deliver notice to Borrower of its intention to cause replacement of the Management Agent, including the reasons therefor. Within fifteen(15) days after receipt by Borrower of such written notice,the City staff and Borrower shall meet in good faith to consider methods for improving the financial and operating status of the Development, including,without limitation, replacement of the Management Agent. HUD and Senior Lender(which for the purposes of this Section shall L be PNC Bank,National Association) and the Investor Limited Partner(as defined in Section 1.1 0 of the Loan Agreement)will receive an opportunity to participate in all meetings required under x this Section. ti N If, after such meeting,City staff recommends in writing the replacement of the Management Agent, Borrower shall promptly dismiss the then-current Management Agent, and LO shall appoint as the Management Agent a person or entity meeting the standards for a management agent set forth in Section 5.2 above and approved by the City pursuant to Section o 5.2 above, and subject to the rights of HUD,the Senior Lender and the Investor Limited Partner. .Q Any contract for the operation or management of the Development entered into by a Borrower shall provide that the Management Agent may be dismissed and the contract terminated as set forth above. Failure to remove the Management Agent in accordance with the xi provisions of this Section constitutes a default under this Agreement,and the City may enforce this provision through legal proceedings as specified in Section 6.7 below. c 5.5 Approval of Management Policies. Borrower shall submit its written management policies with respect to the Development to the City for its review, and shall amend such policies in any way necessary to ensure that such policies comply with the provisions of this s Agreement. r 5.6 Tenant Services Provider. a (a) The Borrower will be providing on-site services which Borrower will make available to all Tenants in the Development(the "Tenant Services"). The Borrower shall submit to the City for approval the name and qualifications of any proposed services provider (the "Services Provider"). 10 Packet PO (b) The Services Provider shall have demonstrated the ability to provide Tenant Services in residential facilities like the Development in an effective manner. The Borrower shall submit such additional information about the background, experience and financial condition of any proposed Services Provider as is reasonably necessary for the City to determine whether the proposed Services Provider meets the standards for a qualified Services Provider of developments of this type. (c) If the proposed Services Provider meets the standard for a qualified Services Provider set forth above,the City shall approve the proposed Services Provider by notifying Borrower in writing. Unless the proposed Services Provider is disapproved by the City within thirty(30) days, which disapproval is to state with reasonable specificity the basis for disapproval, it shall be deemed approved. The City hereby approves Hope Through Housing Foundation as the initial Services Provider for the Development. 0 5.7 Property Maintenance. Borrower shall maintain, for the entire Term'of this _ Agreement, all interior and exterior Improvements, including Iandscaping, on the Property in good condition and repair(and, as to landscaping, in a healthy condition) and in accordance with N all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, 71� municipal, and other governmental agencies and bodies having or claiming jurisdiction and all o their respective departments,bureaus, and officials, and in a decent, safe, sanitary condition and in good repair pursuant to the Uniform Physical Conditions Standards established by HUD ° pursuant to 24 C.F.R. 5.703 and as required under 24 C.F.R. 92.251. Q CL The City places prime importance on quality maintenance to protect its investment and to a ensure that all City and City-assisted affordable housing projects within the City are not allowed a. to deteriorate due to below-average maintenance. Normal wear and tear of the Development will =i be acceptable to the City assuming Borrower agrees to provide all necessary improvements to N assure the Development is maintained in good condition. Borrower shall make all repairs and o replacements necessary to keep the improvements in good condition and repair. w U In the event that Borrower breaches any of the covenants contained in this section and such default continues for a period of five(5)days after written notice from the City with respect E to graffiti,debris,waste material,and general maintenance or thirty(30) days after written notice from the City with respect to landscaping and building improvements,then the City, in addition Q to whatever other remedy it may have at law or in equity,has the right to enter upon the Property and perform or cause to be performed all such acts and work necessary to cure the default. Pursuant to such right of entry, the City is permitted (but is not required)to enter upon the Property and to perform all acts and work necessary to protect,maintain, and preserve the improvements and landscaped areas on the Property, and to attach a lien on the Property,or to assess the Property, in the amount of the expenditures arising from such acts and work of protection,maintenance, and preservation by the City and/or costs of such cure,which amount shall be promptly paid by Borrower to the City upon demand. 5.8 Crime Prevention Program. During the Term of this Agreement Borrower agrees to participate in the San Bernardino Police Department's Crime Free Multi-Housing program(the "Crime Prevention Program"). The City's periodic review of the management of the 11 Packet Pg. 150 5.E.b Development pursuant to Section 5.3 will include an evaluation of Borrower's participation in the Crime Prevention Program, ARTICLE 6 MISCELLANEOUS 6.1 Lease Provisions, In leasing the Units within the Development,Borrower shall use a form of written lease approved by the City. The lease must not contain any provision which is prohibited by 24 C.F.R. Section 92.253(b)and any amendments thereto. The form of lease must comply with all requirements of this Agreement, the other Loan Documents and must, among other matters: L (a) provide for termination of the lease for failure to: (i)provide any o information required under this Agreement or reasonably requested by Borrower to establish or _ recertify the Tenant's qualification,or the qualification of the Tenant's household, for occupancy in the Development in accordance with the standards set forth in this Agreement, or(ii) qualify N as a Very Low Income Household or Low Income Household as a result of any material misrepresentation made by such Tenant with respect to the income computation. o N C (b) be for an initial term of not less than one (1) year, unless by mutual ° agreement between the Tenant and Borrower, and provide for no increase in Rent during such year. After the initial year of tenancy, the lease may be month-to-month by mutual agreement of a Borrower and the Tenant. Notwithstanding the above, any rent increases are subject to the nQ. requirements of Section 2.3 (a) above, x i (c) include a provision which requires a Tenant who is residing in a Unit required to be accessible pursuant to Section 2.4 and who is not in need of an accessible Unit to 0 move to a non-accessible Unit when a non-accessible Unit becomes available and another Tenant or prospective Tenant is in need of an accessible Unit. v r c d 6.2 Lease Termination. Any termination of a lease or refusal to renew a lease for a City-Assisted Unit within the Development must be in conformance with 24 C.F.R. 92.253(c), U and must be preceded by not less than sixty (60) days written notice to the Tenant by Borrower a specifying the grounds for the action. 6.3 Nondiscrimination. (a) All of the Units must be available for occupancy on a continuous basis to members of the general public who are income eligible. Except as provided in subsection(b) below, Borrower may not give preference to any particular class or group of persons in renting or selling the Units, except to the extent that the Units are required to be leased to income eligible households pursuant to this Agreement. Borrower herein covenants by and for Borrower, assigns, and all persons claiming under or through Borrower, that there exist no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, source of income(e.g., SSI), ancestry, or disability, in the leasing, subleasing, transferring, use, occupancy, tenure, or 12 Packet Pg. 151 enjoyment of any unit nor will Borrower or any person claiming under or through Borrower, 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, sublessees,subtenants, or vendees of any unit or in connection with the employment of persons for the construction, operation and management of any unit. (b) Borrower shall accept as Tenants,on the same basis as all other Tenants persons who are recipients of federal certificates for rent subsidies pursuant prospective �p P to the existing housing program under Section 8 of the United States Housing Act, or its successor. Borrower may not apply selection criteria to Section 8 certificate or voucher holders that is more burdensome than criteria applied to all other prospective Tenants,nor will Borrower apply or permit the application of management policies or lease provisions with respect to the Development which have the effect of precluding occupancy of units by such prospective Tenants. o U 2 6.4 Term. The provisions of this Agreement apply to the Property for the entire Term even if the Loan is paid in full prior to the end of the Term. This Agreement binds any successor,heir or assign of Borrower,whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise, except as expressly released by City. City is o making the Loan on the condition, and in consideration of,this provision,and would not do so c otherwise. a 6.5 Notice of Expiration of Term. Q CL a (a) At least six(6)months prior to the expiration of the Term, Borrower shall provide by first-class mail,postage prepaid, a notice to all Tenants containing: (i)the anticipated =i date of the expiration of the Term; (ii)any anticipated increase in Rent upon the expiration of the m Term; (iii) a statement that a copy of such notice will be sent to the City; and(iv) a statement that o a public hearing may be held by the City on the issue and that the Tenant will receive notice of r the hearing at least fifteen(15)days in advance of any such hearing. Borrower shall also file a copy of the above-described notice with the City Manager. E (b) In addition to the notice required above, Borrower shall comply with the ca requirements set forth in California Government Code Sections 65863.10 and 65863.11. Such a notice requirements include: (i) a twelve(12)month notice to existing tenants,prospective tenants'and Affected Public Agencies(as defined in California Government Code'Section 65863.10(a))prior to the expiration of the Term, (ii) a six(6)month notice requirement to existing tenants,prospective tenants and Affected Public Agencies prior to the expiration of the Term; (iii) a notice of an offer to purchase the Development to "qualified entities" (as defined in California Government Code Section 65863.11(d)), if the Development is to be sold within five (5) years of the end of the Term; (iv) a notice of right of first refusal within the one hundred eighty(180)day period that qualified entities may purchase the Development. 6.6 Covenants to Run With the Land. The City and Borrower hereby declare their express intent that the covenants and restrictions set forth in this Agreement run with the land, and bind all successors in title to the Property,provided, however,that on the expiration of the Term of this Agreement said covenants and restrictions expire. Each and every contract,deed or 13 Packet Pg. 152 other instrument hereafter executed covering or conveying the Property or any portion thereof, is to be held conclusively to have been executed, delivered and accepted subject to the covenants and restrictions, regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument,unless the City expressly releases such conveyed portion of the Property from the requirements of this Agreement. 6.7 Enforcement by The City. If Borrower fails to perform any obligation under this Agreement, and fails to cure the default within thirty(30) days after the City has notified Borrower in writing of the default or,if the default cannot be cured within thirty (30) days,fails to commence to cure within thirty(30) days and thereafter diligently pursue such cure and complete such cure within ninety(90)days,the City may enforce this Agreement by any or all of the following actions, or any other remedy provided by law: L (a) Calling the Loan. The City may declare a default under the Note, 0 accelerate the indebtedness evidenced by the Note, and-proceed with foreclosure under the Deed _ of Trust. N (b) Action to Compel Performance or for Damages. The City may bring an action at law or in equity to compel Borrower's performance of its obligations under this Agreement, and may seek damages. 0 w (c) Remedies Provided Under Loan Documents. The City may exercise any other remedy provided under the Loan Documents. Q a a 6.8 Attorneys' Fees and Costs. In any action brought to enforce this Agreement, the a prevailing party must be entitled to all costs and expenses of suit,including reasonable attorneys' =i fees. This section must be interpreted in accordance with California Civil Code Section 1717 Cn and judicial decisions interpreting that statute. o 6.9 Recording and Filing. The City and Borrower shall cause this Agreement,and all amendments and supplements to it,to be recorded in the Official Records of the County of San Bernardino. E 6.10 Governing Law. This Agreement is governed by the laws of the State of Q California. 6.11 Waiver of Requirements. Any of the requirements of this Agreement may be expressly waived by the City in writing,but no waiver by the City of any requirement of this Agreement extends to or affects any other provision of this Agreement,and may not be deemed to do so. 6.12 Amendments. This Agreement may be amended only by a written instrument executed by all the parties hereto or their successors in title that is duly recorded in the official records of the County of San Bernardino. 6.13 Notices. Any notice requirement set forth herein will be deemed to be satisfied three(3) days after mailing of the notice first-class United States certified mail,postage prepaid, 14 Packet Pg.'153 addressed to the appropriate party as follows: City: Office of the City Manager City of San Bernardino 300 N "D" Street, Sixth Floor San Bernardino, CA 92418 Attn: Housing Director Borrower: Val 9 Housing Partners,L.P. 9421 Haven Avenue Rancho Cucamonga, CA 91730 Attn: Chief Financial Officer L With a copy to: o Law Offices of Edward A. Hopson x 655A No. Mountain Avenue Upland, CA 91786 N v Ln With a copy to: Wells Fargo Community Lending&Investment c Wells Fargo Bank Affordable Housing Community Development Corporation 2 301 South College Street, 17'h Floor Q MAC D1053-170 a Charlotte,NC 28288 a x i With a copy to: co Kutak Rock c 1650 Farnam Street Omaha,NE 68102 U Attn: Robert Coon E Such addresses may be changed by notice to the other party given in the same manner as provided above. a 6.14 Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable,the validity, legality and enforceability of the remaining portions of this Agreement will not in any way be affected or impaired thereby. 6.15 Multiple Originals, Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts. 6.16 Revival of Agreement after Foreclosure. In the event there is a foreclosure of the Property, this Agreement will revive according to its original terms if, during the Term,the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes 15 Packet Pg: 154 i the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the Development or Property. 6.17 HUD Rider. The HUD Rider is attached to this Agreement as Exhibit E.and incorporated into this Agreement by this reference. [Remainder of Page Left Intentionally Blank] ,L^ V 0 x ti N d' r O N C • O R V .Q Q Q a a x m m 0 U i+ E s v r Q WHEREAS,this Agreement has been entered into by the undersigned as of the Effective Date. BORROWER: Date: March 19, 2015 VAL 9 HOUSING PARTNERS, L.P., a California limited partnership By: Val 9 MGP,LLC,a California limited liability c company, its sole general partner P 0 By:'National Community'Renaissance of _ California,its sole member and manager ti N By: (,G Tracy Tho s, Chi Financial Officer o N C O Q a a x i (Signature Page Continues) Cn 4- O iv r C O E U (0 w r-. Q Packet Pg.,,--I 56 CITY: CITY OF SAN BERNARDINO By: Allen P er,City Manager Date: c APPROVED AS TO FORM: Gary D. Saenz o City Attorney = ti N By 0 - N C O r to V .Q Q Q a a x i m m O w U r c E t 0 ca w r Q Packet Pg. 157. 5.E.b CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document. State of Calif nia ) zr` County of n r�i n ) p On �3�1 g,1 S before me, � � '� �� , Date Here Insert Name and Title of the fffficer personally appeared �a��7 a/14 aS . Name(s)of Signer(s) O 0 who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are a, subscribed to the within instrument and acknowledged to me that he/she/they executed the same in N his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s), �! or the entity upon behalf of which the person(s) acted, executed the instrument. LO CD I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph 0 is true and correct. o GABRIELA M.KOFFMAN U Commission#2055787 WITNESS my hand and o icial sea[. Q < =: Notary Public-California i Q Z Z San Bernardino County a M Comm.Ex ires ian 24,2018+ Signature a- 4= Signature of-Nata7y-P-ublic =i m rn w 0 L) Place Notary Seal Above c OPTIONAL m Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. ;a Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Corporate Officer — Title(s): ❑Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Partner — ❑ Limited ❑General ❑Individual ❑Attorney in Fact ❑Individual ❑Attorney in Fact ❑Trustee ❑Guardian or Conservator ❑Trustee ❑ Guardian or Conservator ❑Other: ❑ Other: Signer Is Representing: Signer Is Representing: ©2014 National Notary ssociation -www.NationalNotary.org - 1-800-US NOTARY 1-800-876-682 Item#5907 ry ry 9 ( � Packet Pg. 158 5.E.b A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) COUNTY OF On �� / 7 / ,before ,Notary Public, o personally appeared i� — who roved 0 r y rr N --� r t� me �n the z basis of satisfactory evidence to be the person whose name �subscribed to the within instrument and acknowledged to me thatoZw4hey executed the same in is =thep11e1rsonVf,authorized capacityGell and that by is . ignatureX on the instrumen or the entity upon behalf of which the personVacted, executed the instrument. o N I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the o foregoing paragraph is true and correct. WITNESS my hand and official seal. :z KATHERINE G.HERRERA Commission No. 1945501 �j = 'mob NOTARY PUBLIC-CALIFORNIA ml SAN BERNARDINO COUNTY N My COMM.Expkes JULY 28,2016 14amt. 0 Name: Notary Public _ d E t U r a Packet Pg. 159 EXHIBIT A LEGAL DESCRIPTION The land is situated in the State of California, County of San Bernardino, City of San Bernardino and is described as follows: I A PORTION OF LOT 7, BLOCK 42 OF RANCHO SAN BERNARDINO ACCORDING TO THE OFFICIAL MAP RECORDED IN BOOK 7,PAGE 2, IN THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND MORE o PARTICULARLY DESCRIBED AS FOLLOWS: v x BEGINNING AT A POINT ON THE NORTH LINE OF NINTH ST. 1,774.70 FEET EAST FROM THE CENTER LINE c� OF WATERMAN AVENUE; THENCE NORTHERLY PARALLEL TO THE WEST LINE OF SAID LOT 7 A DISTANCE OF 602.75 FEET;THENCE EASTERLY PARALLEL TO THE SOUTH LINE OF SAID LOT 7 TO A POINT 50.00 FEET FROM THE EAST LINE OF SAID LOT 7;THENCE SOUTHERLY PARALLEL TO THE SAID EAST LINE OF LOT 7 TO THE SOUTH LINE OF SAID LOT 7;THENCE WESTERLY ALONG THE SAID SOUTH LINE OF LOT 7 N OF THE TRUE POINT OF BEGINNING. o SAID LAND IS ALSO SHOWN AS PARCEL 1 OF CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT NO. 88-30 RECORDED SEPTEMBER 29, 1989 AS INSTRUMENT NO. 89-365668 OF OFFICIAL RECORDS. a a APN(s): 147-191-12 a m co 4- 0 U r c a> E s v tv w Q A-1 Packet Pg. 160 RECORDING REQUESTED Q D BY Electronically Recorded in Official Records,County of San Bernardino 312012015 FIDELITY NATIONAL TITLE—2304I87I-P 12:39 Ph' BOB DUTTON FV AND WHEN RECORDED MAIL TO ASSESSOR-RECORDER-CLERK SAN 688 Fidelity National Title MA Department of Community Development -- and Housing County of San Bernardino Doc#: 201 5-01 09636 Titles: 2 Pages: 3E 385 North Arrowhead Ave Third Flor Fees .00 San Bernardino, CA 92415-0121 Taxes .a0 Attn: Housing Community irDct Director and PA1Dr .00 No fee for recording pursuant to Government Code Section 27383 Y SPACE ABOVE THIS LINE RESERVED FOR RECORDER's USE D U Z REGULATORY AGREEMENT AND v DECLARATION OF RESTRICTIVE COVENANTS (Waterman Gardens—Valencia 9) LO 0 N Document Titie r o U Q Q 0. a. Z I m 47 O U c a� E t U (C w Q Packet Pg. 161 5.E.b T RECORDING REQUESTED BY FIDELITY NATIONAL TITLE—23041871-P 'ooft- AND WHEN RECORDED MAIL TO Department of Community Development and Housing County of San Bernardino 385 North Arrowhead Ave Third Flor San Bernardino, CA 92415-0121 Attn: Community Development and Housing Director No fee for recording pursuant to Government Code Section 27383 c SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE I � 0 U x REGULATORY AGREEMENT AND N DECLARATION OF RESTRICTIVE COVENANTS (Waterman Gardens—Valencia 9) LO 0 N Document Title o .Q a a a x i m C 0 A i U c N E s U fLS a� r Q I Packet Pg. 162 O ' RECORDING REQUESTED BY FIDELITY NATIONAL TITLE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Department of Community Development and Housing County of San Bernardino 385 North Arrowhead Ave,Third Floor San Bernardino, CA 92415-0121 Attn: Community Development and Housing Director No fee for recording pursuant to Government Code Section 27383 w E REGULATORY AGREEMENT AND o DECLARATION OF RESTRICTIVE COVENANTS = (Waterman Gardens-Valencia 9 Apartments) ti N This Regulatory Agreement and Declaration of Restrictive Covenants(the "Agreement") 7'' is dated March 17, 2015 and is between the County of San Bernardino, a political subdivision of o the State of California(the "Coun "), and Val 9 Housing Partners,L.P., a California limited = partnership("Borrower"). o. RECITALS a a a a_ A. Defined Terms used but not defined in these recitals are as defined in Article 1 of =i this Agreement. N 4- 0 B. Borrower owns or is acquiring real property located at the northwest corner of y Valencia Avenue and 9ch Street,in the City of San Bernardino, County of San Bernardino, State of California,as more particularly described in Exhibit A(the "Pro e "). Borrower intends to construct on the Property a Seventy-Six(76)unit multifamily affordable housing development E (including one manager's unit)(the "Improvements"). The Improvements and the Property are w referred to as the "Development". a C. Pursuant to a HOME Investment Partnerships Act Loan Agreement by and between the County and Borrower,dated as of March 3,2015 (the "Loan Agreement"),the County has made a loan of up to Eight Hundred Ten Thousand Dollars ($810,000)of HOME Investment Partnerships Act funds("HOME Funds")to fund costs associated with the acquisition and construction of the Improvements (the "Loan"). The County has the authority to loan the HOME Funds pursuant to 24 C.F.R. 92.205. D. The County has agreed to make the Loan on the condition that the Development be maintained and operated in accordance with restrictions concerning affordability, operation, and maintenance that are set forth in this Agreement and in the related documents evidencing the Loan. I 1610\08\1620I66.6 Packet Pg.163 E. In consideration of receipt of the Loan at an interest rate substantially below the market rate,Borrower agrees to observe all the terms and conditions set forth below. The parties therefore agree as follows. ARTICLE 1 DEFINITIONS; EXHIBITS 1.1 Definitions. The following terms have the following meanings: (a) "Actual Household Size" means the actual number of persons in the a applicable household. c� 0 U (b) "Adjusted Income"means the total anticipated annual income of all persons in the Tenant household as calculated pursuant to 24 C.F.R. 92.203(b)(1). Adjusted T income includes income from all persons in the household, including nonrelated individuals. Ln (c) "Agreement" has the meaning set forth in the first paragraph of this N Agreement. _ 0 Y (d) "City" means the City of San Bernardino,a municipal corporation. a Q a (e) "Completion Date"means the date that all of the following have occurred: a (i)a final certificate of occupancy, or equivalent document is issued by the City to certify completion of the construction of the Development; (ii)the final disbursement of HOME funds m for the Development has been made; (iii)the County has verified the Development complies m with the property standards set forth in 24 C.F.R. 92.251; and(iv)all project completion 0 information has been entered by the County into the Integrated Disbursement and Information � System(IDIS). 0 (fl "Completion of Construction" means the date the construction of the Development is completed as evidenced by the issuance of a certificate of occupancy or r equivalent document issued by the City,to certify completion of the construction of the a Development. (g) "County-Assisted Units" means the four(4)Units within the Development designated as assisted by the County pursuant to this Agreement, which Units are "floating" Units as defined in 24 C.F.R. 92.2520). (h) "Deed of Trust"means the Deed of Trust with Assignment of Rents, Security Agreement and Fixture Filing of even date herewith b and among orrower, as trustor, Y g > Fidelity National Title Insurance Company, as trustee, and the County,as beneficiary,that will Y Y, encumber the Property to secure repayment of the Loan and Borrower's performance of the covenants set forth in the documents evidencing the Loan. 2 16I0\08\1620166.6 Pa66t.Pg,164. (i) "Development" has the meaning set forth in Paragraph B of the Recitals. (j} "High HOME Rent"means a monthly Rent amount not exceeding the maximum rent published by HUD for a Low Income Household for the applicable bedroom size as set forth in 24 C.F.R. 92.252(a). (k) "HOME"means Home Investment Partnerships Act Program funded pursuant to the Cranston-Gonzales National Housing Act of 1990. (1) "HOME Funds"has the meaning set forth in Paragraph C of the Recitals. (m) "HOME Regulations" means the regulations set forth in 24 C.F.R. Part 92. r:. (n) "HOME Term"means the period beginning on the date of this Agreement and ending on the twentieth(20th)anniversary of the date of this Agreement. 0 (o) "HUD"means the United States Department of Housing and Urban Development. N d' (p) "Loan"has the meaning set forth in Paragraph C of the Recitals. 0 N (q) "Loan Agreement"has the meaning set forth in Paragraph C of the c ,f Recitals. a (r) "Loan Documents" means the documents executed by Borrower a evidencing the Loan including this Agreement,the Note, Deed of Trust, and Loan Agreement. a. x (s) "Low HOME Rent"means a monthly Rent amount not exceeding the ra maximum rent published by HUD for a Very Low Income Household for the applicable bedroom - size or as otherwise set forth in 24 C.F.R. 92.252(b). w U (t) "Low Income Household" means a Tenant household with an Adjusted c Income that does not exceed eighty percent(80%) of Median Income,with adjustments for E smaller and larger families,except that HUD may establish income ceilings higher or lower than eighty percent(80%) of Median Income on the basis of HUD findings that such variations are 2 necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes, as such definition may be amended pursuant to 24 C.F.R. Section 92.2. An individual who is a student that is ineligible to receive Section 8 assistance under 24 C.F.R. 5.612,and thus ineligible to receive any type of HOME assistance, shall not qualify as a Low Income Household. (u) "Management Agent"has the meaning set forth in Section 5.2. (v) "Median Income" means the median gross yearly income,adjusted for Actual Household Size as specified herein, in the County of San Bernardino, California,as published from time to time by HUD. In the event that such income determinations are no longer published, or are not updated for a period of at least eighteen(18)months,the County 3 161010811620166.6 Packet Pg. 165 shall provide Borrower with other income determinations that are reasonably similar with respect to methods of calculation to those previously published by HUD. (w) "Note" means the promissory note of even date herewith that evidences Borrower's obligation to repay the Loan,as such may be amended form time to time. (x) "Property" has the meaning set forth in Paragraph B of the Recitals. (y) "Rent"means the total monthly payments by the Tenant of a Unit for the following: (i)use and occupancy of the Unit and land and associated facilities,including parking; (ii)any reasonable and customary separately charged fees or service charges assessed by Borrower which are required of all Tenants which meet the requirements under 24 C.F.R. 92.214(b)(3),other than security deposits; (iii)the County-approved utility allowance, calculated pursuant to 24 C.F.R. 92.252(4),for the cost of an adequate level of service for utilities paid by the Tenant,including garbage collection, sewer, water,electricity, gas and other heating,cooking o and refrigeration fuel, but not telephone service or cable TV;and(iv)any other interest,taxes, i fees or charges for use of the land or associated facilities and assessed by a public or private entity other than Borrower,and paid by the Tenant. In no event shall the Rent of a County- v Assisted Unit exceed the amount approved by the County pursuant to Section 2.2 hereof. Ln (z) "Service Provider"has the meaning set forth in Section 5.6. 0 r (aa) "Tenant" means the tenant household that occupies a Unit in the 2 C Development. a Q CL CL (bb) "Tenant Services"has the meaning set forth in Section 5.6. x i (cc) "Term"means the term of this Agreement which commences as of the °0 date of this Agreement,and unless sooner terminated pursuant to the terms of this Agreement, o expires on the date fifty-five(55)years from the Completion Date. Y U (dd) "Unit(s)" means one(1) or more of the units in the Development. E (ee) "Very Low Income Household" means a household with an Adjusted Income that does not exceed fifty percent(50%)of Median Income,with adjustments for smaller a and larger families,except that HUD may establish income ceilings higher or lower than fifty percent(50%)of Median Income on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes,as set forth in 24 C.F.R. Section 92.2. An individual who is a student that is ineligible to receive Section S assistance under 24 C.F.R. 5.612, and thus ineligible to receive any type of HOME assistance, shall not qualify as a Very Low Income Household. (ff) "Very Low Income Units"means the Units which,pursuant to Section 2.1(a)below, are required to be occupied by Very Low Income Households. 4 1610\08\1620166.6 Pa' 6t Qg`16 i r 1 I 1.2 Exhibits The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference: Exhibit A: Legal Description of the Property Exhibit B: Schedule of HOME Rents Exhibit C: Certificate of Continuing Program Compliance Exhibit D: Form of Certification of Tenant Eligibility Exhibit E: HUD Rider ARTICLE 2 AFFORDABILITY AND OCCUPANCY COVENANTS 0 2.1 Occupancy Requirements. _ (a) Very Low Income Units. During the Term, Borrower shall rent four(4) N County-Assisted Units,and ensure that these Units are occupied or, if vacant, available for occupancy,by Very Low Income Households. 0 N C (b) Intermingling of Units. The County-Assisted Units are required to be one ° (1)one-bedroom Unit and three(3)three-bedroom Units and are to be intermingled throughout the Development and of comparable quality to all other Units.All Tenants must have equal CL access to and enjoyment of all common facilities in the Development. a a (c) Disabled Persons Occupancy. Borrower shall cause the Development to =i be operated at all times in compliance with the provisions of (i)the Unruh Act, (ii)the N California Fair Employment and Housing Act, (iii) Section 504 of the Rehabilitation Act of o 1973, (iv)the United States Fair Housing Act,as amended, and(v)the Americans With r Disabilities Act of 1990,which relate to disabled persons access. Borrower shall indemnify, L) protect,hold harmless and defend(with counsel reasonably satisfactory to the County)the County, and its boardmembers, officers and employees,from all suits,actions,claims, causes of E action, costs,demands,judgments and liens arising out of Borrower's failure to comply with applicable legal requirements related to housing for persons with disabilities. The provisions of a this subsection will survive expiration of the Term or other termination of this Agreement,and remain in full force and effect. 2.2 Allowable Rent. (a) Very Low Income Rent. Subject to the provisions of Section 2.3 below, the Rent paid by Tenants of Very Low Income Units may not exceed the Low HOME Rent provided annually by the County. (b) No Additional Fees. Borrower may not charge any fee,other than Rent,to any Tenant of the County-Assisted Units for any housing or other services provided by Borrower. 5 1610\08\1620166.6 Packet.Pg. 167 i 2.3 Rent Increases;Increased Income of Tenants. (a) Rent Increases. The proposed initial Rents and subsequent Rents for all County-Assisted Units shall be provided to the Borrower by the County prior to initial or subsequent occupancy and prior to a rent increase,and shall be subject to the HOME Regulations. A schedule of current HOME rents is attached as Exhibit B. Borrower may not impose any Rent increases on County-Assisted Units,without prior submission to the County of any proposed Rent increases and without written approval from the County of the proposed Rent increases. The Rent for such County-Assisted Units may be increased no more than once annually based upon the annual income certification described in Article 3 and in no event shall any increase exceed three(3%)percent. Tenants shall be given at least sixty(60) days written notice prior to any Rent increase. The County will provide Borrower with a schedule of maximum permissible Rents for the County-Assisted Units annually. (b) Non-Qualifying Household. If,upon the annual certification of the income a Tenant of a County-Assisted Unit,Borrower determines that the income of a Very Low Income Household has increased above the qualifying limit for a Low Income Household, such Tenant T shall be permitted to retain the Unit and upon expiration of the Tenant's lease and upon sixty(60) In days written notice,the Rent must be increased to the lesser of one-twelfth(1/12th of thirty percent(30%)of the actual Adjusted Income of the Tenant,or fair market rent(subject to 24 N C.F.R. 92.252(i)(2)regarding low income housing tax credit requirements), and Borrower shall a rent the next available Unit to a Very Low Income Household.or Low Income Household as 0 applicable to comply with the requirements of Section 2.1 above,at a Rent not exceeding the a maximum Rent specified in Section 2.2,or re-designate another comparable Unit in the a Development with a Very Low Income Household or Low Income Household as applicable as a a. County-Assisted Unit,to meet the requirements of Section 2.1 above. Upon renting the next = m� available Unit in accordance with Section 2.1 or re-designating another Unit in the Development N as a County-Assisted Unit,the Unit with the over-income Tenant will no longer be considered a o County-Assisted Unit. U (c) Termination of Occupancy. Upon termination of occupancy of a County- Assisted Unit by a Tenant, such Unit will be deemed to be continuously occupied by a household E of the same income level as the initial income level of the vacating Tenant,until such Unit is reoccupied or another Unit is re-designated as a County-Assisted Unit,at which time a categorization of the Unit will be established based on the occupancy requirements of Section 2.1. 2.4 Units Available to the Disabled. Borrower shall construct the Development in compliance with all applicable federal and state disabled persons accessibility requirements including but not limited to the Federal Fair Housing Act; Section 504 of the Rehabilitation Act of 1973;Title II and/or Title III of the Americans with Disabilities Act; and Title 24 of the California Code of Regulations. In compliance with Section 504 of the Rehabilitation Act, Borrower shall construct a minimum of four(4)units in the Development shall be constructed to be readily accessible and usable by households with a mobility impaired member and a minimum of two (2) units shall be constructed and to be readily accessible and usable by households with a hearing or visually impaired member. 6 161010811620166.6 Packet Pg. , 68 f ARTICLE 3 INCOME CERTIFICATION AND REPORTING 3.1 Income Certification. Borrower shall obtain, complete, and maintain on file, immediately prior to initial occupancy and annually thereafter,income certifications from each Tenant renting any of the County-Assisted Units.Borrower shall cause each Tenant in a County- Assisted Unit to execute a Certification of Tenant Eligibility in the form attached as Exhibit D. Borrower shall fill out the "Development Owner"portion of the Certification of Tenant Eligibility and provide it to the County along with supporting documentation collected by Borrower. Borrower shall make a good faith effort to verify the accuracy of the income provided by all applicants or all members of the occupying household,as the case may be,in the income certification. To verify the information Borrower shall take two or more of the following steps: (i)obtain pay stubs for the most recent two months; (ii)obtain an income tax return for the most recent tax year; (iii)conduct a credit agency or similar search; (iv)obtain an income verification o form from the applicant's current employer verifying employment for the last two months; (v) _ obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, verifying assistance for the last two months; or(vi)if the applicant is unemployed and does not have a tax return, obtain another form of independent verification. Copies of the Certifications o of Tenant Eligibility and accompanying documentation must be submitted to the County c annually for each of the County-Assisted Units. c. 3.2 Reporting Requirements. Borrower shall submit to the County(a)not later than Q the forty-fifth(45t)day after the close of each calendar year,or such other date as may be a 0. requested by the County, a signed copy of the Certification of Program Compliance in the form attached as Exhibit C. and(b)within fifteen(15) days after receipt of a written request,any other =i information or completed forms requested by the County in order to comply with reporting u0°i requirements of HUD,the State of California, and the County. o 3.3 Additional Information. Borrower shall provide any additional information reasonably requested by the County. E 3.4 Records. Borrower shall maintain complete, accurate and current records pertaining to the Development, and shall permit any duly authorized representative of the County Q to inspect records,including records pertaining to income and household size of Tenants and Rent charged to such Tenants. All Tenant lists,applications and waiting lists relating to the Development are to be at all times: (i) separate and identifiable from any other business of Borrower, (ii)maintained as required by the County, in a reasonable condition for proper audit, and(iii)subject to examination during business hours by representatives of the County. Borrower shall retain copies of all materials obtained or produced with respect to occupancy of the units for a period of at least five(5)years. The County may audit, examine and make copies of all books,records or other documents of Borrower that pertain to the Development. 3.5 HOME Record Requirements. For the period of the HOME Term all records maintained by Borrower pursuant to Sections 3.2 and 3.4 above are to be(i)maintained in compliance with all applicable HUD records and accounting requirements,and(ii)open to and 7 161010811620166.6 Packet Pg.169 available for inspection and copying by HUD and its authorized representatives at reasonable intervals during normal business hours;provided however,records pertaining to Tenant income verifications,Rents, and Development physical inspections must be kept for the most recent five(5)year period and are subject to HUD inspection for five(5)years after expiration of the HOME Term. Borrower is subject to the audit requirements set forth in 24 CFR 92.505 during the HOME Term. 3.6 On-Site Inspection. The County may perform, or cause to be performed, an on- site inspection of the Development(including Units,subject to the rights of Tenants)at least one (1)time per year upon twenty-four(24)hours notice during normal business hours to monitor compliance with this Agreement. Borrower shall cooperate in making the Property available for such inspection. Borrower agrees and acknowledges that the County must conduct on-site inspections,consistent with the requirements of 24 C.F.R. 92.504(d),to determine compliance with the property standards set forth in 24 C.F.R. 92.251, at least once every three(3)years after the completion of construction of the Development. o U After the completion of an inspection the County shall deliver a copy of the inspection report to the Borrower. If the County determines as a result of such inspection that there are any N Iife-threatening health and safety related deficiencies, Borrower has the obligation to correct such deficiencies immediately, in accordance with 24 C.F.R. 92.251. If the County determines as a result of the inspection that there are any deficiencies for any of the inspectable items in the N Development,the Borrower shall correct such deficiencies within fifteen(15)days from the G delivery of the inspection report or if a period longer than fifteen(15) days is reasonably necessary to correct the deficiency,then Borrower must begin to correct the deficiency within a fifteen(15) days and correct the deficiency as soon as reasonably possible. In addition,the a Borrower acknowledges that the County may re-inspect the Development to verify all a deficiencies have been corrected or rely on third party documentation submitted by the Borrower =i for non-hazardous deficiencies in conformance with 24 C.F.R 92.504(d). m co 0 .r ARTICLE 4 U OPERATION OF THE DEVELOPMENT E 4.1 Residential Use. Borrower shall operate the Development for residential use only and such ancillary uses permitted at the Development as approved by the County. No part of the Q Development may be operated as emergency shelters(including shelters for disaster victims) or facilities such as nursing homes, convalescent homes,hospitals,residential treatment facilities, correctional facilities,halfway houses,housing for students, or dormitories (including farmworker dormitories). 4.2 Compliance with Loan Documents and Program Requirements. Borrower's actions with respect to the Property shall at all times be in full conformity with: (i)all requirements of the Loan Documents; (ii) all requirements imposed on projects assisted with HOME Funds as contained in 42 U.S.C. Section 12701,et seq.,24 C.F.R. Part 92,and other implementing rules and regulations,as such may be amended or supplemented from time to time, and(iii) any other regulatory requirements imposed on Borrower. 8 1610\08\1620166.6 Packet Pg.170 4.3 Taxes and Assessments. Borrower shall pay all real and personal property taxes, assessments and charges and all franchise,income,employment, old age benefit,withholding, sales, and other taxes assessed against it,or payable by it,at such times and in such manner as to prevent any penalty from accruing,or any lien or charge from attaching to the Property; provided,however,that Borrower may apply for a property tax exemption for the Property under any provision of law or contest in good faith, any such taxes,assessments, or charges. In the event Borrower exercises its right to contest any tax, assessment,or charge against it, Borrower, on final determination of the proceeding or contest,will immediately pay or discharge any decision or judgment rendered against it,together with all costs,charges and interest. 4.4 Property Tax Exemption. Borrower shall not without the prior written consent of the County apply for a property tax exemption for the Property under any provision of law except California Revenue and Taxation Section 214(8). ca 'Ln V Q ARTICLE 5 = PROPERTY MANAGEMENT,MAINTENANCE AND TENANT SERVICES ti N 5.1 Management Responsibilities. Borrower is responsible for all management functions with respect to the Development,including without limitation the selection of Tenants o in accordance with the requirements of 24 C.F.R. 92.253(d), certification and recertification of household size and income,evictions,collection of rents and deposits,maintenance,landscaping, routine and extraordinary repairs,replacement of capital items, and security. The County has no responsibility for management of the Development.Borrower shall retain a professional property a management company approved by the County in its reasonable discretion to perform a Borrower's management duties hereunder. An on-site property manager is also required. W x i 5.2 Management Agent. Borrower shall cause the Development to be managed by an co experienced management agent reasonably acceptable to the County,with a demonstrated ability c to operate residential facilities like the Development in a manner that will provide decent, safe, and sanitary housing(the "Management Agent"). The County pre-approves the National Community Renaissance of California as the initial Management Agent. Borrower shall submit for the County's approval the identity of any proposed subsequent Management Agent. E Borrower shall also submit such additional information about the background,experience and financial condition of any proposed Management Agent as is reasonably necessary for the Q County to determine whether the proposed Management Agent meets the standard for a qualified Management Agent set forth above. If the proposed Management Agent meets the standard for a qualified Management Agent set forth above,the County shall approve the proposed Management Agent by notifying Borrower in writing. Unless the proposed Management Agent is disapproved by the County within thirty(30)days,which disapproval is to state with reasonable specificity the basis for disapproval,it shall be deemed approved. 5.3 Periodic Performance Review. The County reserves the right to conduct an annual (or more frequently, if deemed necessary by the County)review of the management practices and financial status of the Development. The purpose of each periodic review will be to enable the County to determine if the Development is being operated and managed in accordance with the requirements and standards of this Agreement. Borrower shall cooperate 9 161010$11620166.6 Pack @t Pg. 1tl i with the County in such reviews. 5.4 Replacement of Management Agent. If,as a result of a periodic review,the County determines in its reasonable judgment that the Development is not being operated and managed in accordance with any of the material requirements and standards of this Agreement, the County shall deliver notice to Borrower of its intention to cause replacement of the Management Agent, including the reasons therefor. Within fifteen(15) days after receipt by Borrower of such written notice,the County staff and Borrower shall meet in good faith to consider methods for improving the financial and operating status of the Development, including,without limitation,replacement of the Management Agent. HUD and Senior Lender (which for the purposes of this Section shall be PNC Bank,National Association)and the Investor Limited Partner(as defined in Section 1.1 of the Loan Agreement)will receive an opportunity to participate in all meetings required under this Section. If,after such meeting,County staff recommends in writing the replacement of the 0 Management Agent,Borrower shall promptly dismiss the then-current Management Agent, and x shall appoint as the Management Agent a person or entity meeting the standards for a management agent set forth in Section 5.2 above and approved by the County pursuant to N Section 5.2 above, and subject to the rights of HUD,the Senior Lender and the Investor Limited Partner. 0 N Any contract for the operation or management of the Development entered into by c Borrower shall provide that the Management Agent may be dismissed and the contract terminated as set forth above. Failure to remove the Management Agent in accordance with the �- provisions of this Section constitutes a default under this Agreement,and the County may a enforce this provision through legal proceedings as specified in Section 6.7 below. a x m� 5.5 Approval of Management Policies. Borrower shall submit its written � management policies with respect to the Development to the County for its review,and shall o amend such policies in any way necessary to ensure that such policies comply with the r provisions of this Agreement. U r 5.6 Tenant Services Provider. U (a) The Borrower will be providing on-site services which Borrower will Q make available to all Tenants in the Development(the "Tenant Services"). The Borrower shall submit to the County for approval the name and qualifications of any proposed services provider (the "Services Provider"). (b) The Services Provider shall have demonstrated the ability to provide Tenant Services in residential facilities like the Development in an effective manner. The Borrower shall submit such additional information about the background, experience and financial condition of any proposed Services Provider as is reasonably necessary for the County to determine whether the proposed Services Provider meets the standards for a qualified Services Provider of developments of this type. 10 1610\08\1620166.6 Packet Pg. 172 1 i . r i (c) If the proposed Services Provider meets the standard for a qualified Services Provider set forth above,the County shall approve the proposed Services Provider by notifying Borrower in writing. Unless the proposed Services Provider is disapproved by the County within thirty(30)days,which disapproval is to state with reasonable specificity the basis for disapproval,it shall be deemed approved. The County hereby approves Hope Through Housing Foundation as the initial Services Provider for the Development. 5.7 Property Maintenance. Borrower shall maintain, for the entire Term of this Agreement, all interior and exterior Improvements, including landscaping,on the Property in good condition and repair(and, as to landscaping, in a healthy condition)and in accordance with all applicable Iaws,rules, ordinances, orders and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having or claiming jurisdiction and all their respective departments,bureaus, and officials,and in a decent, safe, sanitary condition and in good repair pursuant to the Uniform Physical Conditions Standards established by HUD pursuant to 24 C.F.R. 5.703 and as required under 24 C.F.R. 92.251. o U The County places prime importance on quality maintenance to protect its investment and to ensure that all County and County-assisted affordable housing projects within the County are N not allowed to deteriorate due to below-average maintenance. Normal wear and tear of the Development will be acceptable to the County assuming Borrower agrees to provide all c necessary improvements to assure the Development is maintained in good condition. Borrower c shall make all repairs and replacements necessary to keep the improvements in good condition and repair. Q In the event that Borrower breaches any of the covenants contained in this section and a. 0. such default continues for a period of five(5) days after written notice from the County with respect to graffiti, debris,waste material, and general maintenance or thirty(30)days after =i written notice from the County with respect to landscaping and building improvements,then the N County,in addition to whatever other remedy it may have at law or in equity,has the right to 0 enter upon the Property and perform or cause to be performed all such acts and work necessary r to cure the,default. Pursuant to such right of entry,the County is permitted(but is not required) to enter upon the Property and to perform all acts and work necessary to protect,maintain, and preserve the improvements and landscaped areas on the Property,and to attach a lien on the s Property, or to assess the Property, in the amount of the expenditures arising from such acts and o work of protection,maintenance, and preservation by the County and/or costs of such cure, Q which amount shall be promptly paid by Borrower to the County upon demand. 5.8 Crime Prevention Program. During the Term of this Agreement Borrower agrees to participate in the San Bernardino County Sheriffs Department's Crime Free Multi-Housing program or similar program administered by the City(the "Crime Prevention Program"). Information on the County's Crime Prevention Program is currently available at http://www.sbcounty.gov/sheriff/Publicaffairs/Crime_free.asp. The County's periodic review of the management of the Development pursuant to Section 5.3 will include an evaluation of Borrower's participation in the Crime Prevention Program. ll 1 6 1 010 811 62 0 1 66.6 Packet Pg. 773 ARTICLE 6 MISCELLANEOUS 6.1 Lease Provisions. In leasing the Units within the Development,Borrower shall use a form of written lease approved by the County. The lease must not contain any provision which is prohibited by 24 C.F.R. Section 92.253(b)and any amendments thereto. The form of lease must comply with all requirements of this Agreement,the other Loan Documents and must, among other matters: (a) provide for termination of the lease for failure to: (i)provide any information required under this Agreement or reasonably requested by Borrower to establish or recertify the Tenant's qualification, or the qualification of the Tenant's household,for occupancy in the Development in accordance with the standards set forth in this Agreement, or(ii)qualify as a Very Low Income Household or Low Income Household as a result of any material L misrepresentation made by such Tenant with respect to the income computation. o U x (b) be for an initial term of not less than one(1)year,unless by mutual agreement between the Tenant and Borrower, and provide for no increase in Rent during such N year. After the initial year of tenancy,the lease may be month-to-month by mutual agreement of Borrower and the Tenant. Notwithstanding the above,any rent increases are subject to the o requirements of Section 2.3 (a) above. N 0 (c) include a provision which requires a Tenant who is residing in a Unit required to be accessible pursuant to Section 2.4 and who is not in need of an accessible Unit to a move to a non-accessible Unit when a non-accessible Unit becomes available and another Tenant a a or prospective Tenant is in need of an accessible Unit. n. x i 6.2 Lease Termination. Any termination of a lease or refusal to renew a lease for a N County-Assisted Unit within the Development must be in conformance with 24 C.F.R. o 92.253(c), and must be preceded by not less than sixty(60)days written notice to the Tenant by r Borrower specifying the grounds for the action. i 6.3 Nondiscrimination. E (a) All of the Units must be available for occupancy on a continuous basis to Q members of the general public who are income eligible. Except as provided in subsection(b) below, Borrower may not give preference to any particular class or group of persons in renting or selling the Units,except to the extent that the Units are required to be leased to income eligible households pursuant to this Agreement. Borrower herein covenants by and for Borrower, assigns, and all persons claiming under or through Borrower,that there exist no discrimination against or segregation of,any person or group of persons on account of race, color,creed, religion, sex, sexual orientation,marital status,national origin, source of income(e.g., SSI), ancestry, or disability, in the leasing, subleasing,transferring,use,occupancy,tenure,or enjoyment of any unit nor will Borrower or any person claiming under or through Borrower, 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, sublessees, subtenants, 12 161010811620166.6 Pa5Ic @t` g: 774' or vendees of any unit or in connection with the employment of persons for the construction, operation and management of any unit. (b) Borrower shall accept as Tenants,on the same basis as all other prospective Tenants,persons who are recipients of federal certificates for rent subsidies pursuant to the existing housing program under Section 8 of the United States Housing Act, or its successor. Borrower may not apply selection criteria to Section 8 certificate or voucher holders that is more burdensome than criteria applied to all other prospective Tenants,nor will Borrower apply or permit the application of management policies or lease provisions with respect to the Development which have the effect of precluding occupancy of units by such prospective Tenants. 6.4 Term. The provisions of this Agreement apply to the Property for the entire Term even if the Loan is paid in full prior to the end of the Term. This Agreement binds any successor,heir or assign of Borrower, whether a change in interest occurs voluntarily or o involuntarily,by operation of law or otherwise, except as expressly released by County. County = is making the Loan on the condition,and in consideration of,this provision, and would not do so otherwise. ti N d' 6.5 Notice of Expiration of Term. 0 N (a) At least six(6)months prior to the expiration of the Term,Borrower shall 0 provide by first-class mail,postage prepaid, a notice to all Tenants containing: (i)the anticipated M date of the expiration of the Term; (ii) any anticipated increase in Rent upon the expiration of the 0. Term; (iii) a statement that a copy of such notice will be sent to the County; and(iv) a statement a a that a public hearing may be held by the County on the issue and that the Tenant will receive a notice of the hearing at least fifteen (15)days in advance of any such hearing. Borrower shall = � also file a copy of the above-described notice with the County Chief Executive Officer, m Cn Economic Development Agency(EDA)Administrator,or the Community Development and o Housing Director. U (b) In addition to the notice required above,Borrower shall comply with the requirements set forth in California Government Code Sections 65863.10 and 65863.11. Such E notice requirements include: (i)a twelve(12)month notice to existing tenants,prospective tenants and Affected Public Agencies(as defined in California Government Code Section a 65863.10(a))prior to the expiration of the Term,(ii) a six(6)month notice requirement to existing tenants,prospective tenants and Affected Public Agencies prior to the expiration of the Term; (iii)a notice of an offer to purchase the Development to "qualified entities" (as defined in California Government Code Section 65863.11(d)), if the Development is to be sold within five (5)years of the end of the Term; (iv) a notice of right of first refusal within the one hundred eighty(180)day period that qualified entities may purchase the Development. 6.6 Covenants to Run With the Land. The County and Borrower hereby declare their express intent that the covenants and restrictions set forth in this Agreement run with the land, and bind all successors in title to the Property,provided,however,that on the expiration of the Term of this Agreement said covenants and restrictions expire. Each and every contract,deed or other instrument hereafter executed covering or conveying the Property or any portion thereof,is 13 1610108\1 620166.6 Packet Fig.175 to be held conclusively to have been executed, delivered and accepted subject to the covenants and restrictions,regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument,unless the County expressly releases such conveyed portion of the Property from the requirements of this Agreement. 6.7 Enforcement by The County. If Borrower fails to perform any obligation under this Agreement, and fails to cure the default within thirty(30)days after the County has notified Borrower in writing of the default or,if the default cannot be cured within thirty (30)days,fails to commence to cure within thirty(30)days and thereafter diligently pursue such cure and complete such cure within ninety(90)days,the County may enforce this Agreement by any or all of the following actions,or any other remedy provided by law: (a) Calling the Loan. The County may declare a default under the Note, accelerate the indebtedness evidenced by the Note,and proceed with foreclosure under the Deed of Trust. o x (b) Action to Compel Performance or for Damages. The County may bring an action at law or in equity to compel Borrower's performance of its obligations under this N Agreement, and may seek damages. (c) Remedies Provided Under Loan Documents. The County may exercise any other remedy provided under the Loan Documents. 2 r 6.8 Attorneys'Fees and Costs. In any action brought to enforce this Agreement,the Q prevailing party must be entitled to all costs and expenses of suit,including reasonable attorneys' a a fees. This section must be interpreted in accordance with California Civil Code Section 1717 a. and judicial decisions interpreting that statute. _ i m m 6.9 Recording and Filing. The County and Borrower shall cause this Agreement, and o all amendments and supplements to it,to be recorded in the Official Records of the County of r San Bernardino. r 6.10 Governing Law. This Agreement is governed by the laws of the State of E California. 6.11 Waiver of Requirements. Any of the requirements of this Agreement maybe a expressly waived by the County in writing,but no waiver by the County of any requirement of this Agreement extends to or affects any other provision of this Agreement, and may not be deemed to do so. 6.12 Amendments. This Agreement may be amended only by a written instrument executed by all the parties hereto or their successors in title that is duly recorded in the official records of the County of San Bernardino. 6.13 Notices. Any notice requirement set forth herein will be deemed to be satisfied three (3)days after mailing of the notice first-class United States certified mail,postage prepaid, addressed to the appropriate party as follows: 14 161010811620166.6 Packet pg-176 E 1 County: Department of Community Development and Housing County of San Bernardino 385 North Arrowhead Ave Third Floor San Bernardino, CA 92415-0043 Attn: Community Development and Housing Director With a copy to: Goldfarb&Lipman,LLP 1300 Clay Street, I Ith Floor Oakland, CA 94612 Attn: Rafael Yaquian Borrower: Val 9 Housing Partners, L.P. 9421 Haven Avenue Rancho Cucamonga,CA 91730 0 Attn: Chief Financial Officer = rn With a copy to: N Law Offices of Edward A. Hopson 655A No. Mountain Avenue o Upland, CA 91786 0 r With a copy to: U Wells Fargo Community Lending&Investment Q Wells Fargo Bank Affordable Housing a CL Community Development Corporation 301 South College Street, 17th Floor =i MAC D1053-170 C0 Charlotte,NC 28288 0 w With a copy to: U r Kutak Rock 1650 Farnam Street E Omaha,NE 68102 0 Attn:Robert Coon a Such addresses may be changed by notice to the other party given in the same manner as provided above. 15 161010811620166.6 Packet Pg. 177' 6.14 Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid,illegal or unenforceable,the validity,legality and enforceability of the remaining portions of this Agreement will not in any way be affected or impaired thereby. 6.15 Multiple Originals; Coun to rP arts. This Agreement may be executed in multiple originals,each of which is deemed to be an original,and may be signed in counterparts. 6.16 Revival of Agreement after Foreclosure. In the event there is a foreclosure of the Property,this Agreement will revive according to its original terms if,during the Term,the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the Development or Property. ca 6.17 HUD Rider. The HUD Rider is attached to this Agreement as Exhibit E,and o incorporated into this Agreement by this reference. v x [Remainder of Page Left Intentionally Blank] N d' Ln T" O N C O O V .Q Q Q a a x i m Cn O U C as E t v m r Q i 16 161010811620166.6 Packet Pg. 178 COUNTY: COUNTY OF SAN BERNARDINO By: o evereaux, Chief Execu ve Officer APPROVED AS TO LEGAL FORM: JEAN-RENE BASLE County Counsel I � 0 U By: �a 4 Mic faleAakenore, N Chief Assi County Counsel y L 0 N Date: 3-� -�s' o r U Q Q Q a a m i 0 r U r c d t v w Q Signature page County Regulatory Agreement IPacket Pg. 179 WHEREAS,this Agreement has been entered into by the undersigned as of the Effective Date. BORROWER: Date: VAL 9 HOUSING PARTNERS, L.P., a California limited partnership By: Val 9 MGP,LLC, a California limited liability company, its sole general partner L By: National Community Renaissance of o California,its sole member and manager = By: X' N Tracy Thomas, Chie Financial Officer U) 0 N C O a� RS U .Q Q. Q G. a [Signature Page Continues] xi m co 4- 0 U c d E t v ca i Q Signature page County Regulatory Agreement FaGket Pg. 180 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) } COUNTY OF San Bernard ti no ) On 1A a rcVA .1-7, 2015 , before me, Donna A .You nc Notary Public, a personally appeared 0 reG 0Y'\/ C• yi�yerea U X , who proved to me on the basis of satisfactory evidence to e the personXwhose name Way subscribed to the within instrument and acknowledged to me that he/she/th y executed the same in his/l hp-ir authorized capacity(4e&), and that by his/kle d4he-x signatureW. on the instrument the personas', or N the entity upon behalf of which the personV acted,executed the instrument. I certify UNDER PENALTY OF PERJURY under the o laws of the State of California that the foregoing c paragraph is true and correct. WITNESS my hand and official seal. Q a. a D{1MMA A.YO MG r comma::ion�r antorn2 g Notary Public•Californio Signature Son Bernardino County Signature of Nd4dry Publi N MA Comm.Ex Tres Jun 12,2015 0 w U c d Place Notary Seal Above L �a w w Q 1610\08\1620166.6 Packet Pg. 181 I A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy,or validity of that document. STATE OF CALIFORNIA ) COUNTY OF S tr^r1�rz�Jna ) r On 3 1 to I I ,before me,dloi Ga i2edyf ,t.Q 2 ,Notary Public, personally appeared �' ,who proved to me on the o basis of satisfactory evidence to be fhe person(s)whose name(s)is/are subscribed to the within U instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s)acted, executed the instrument. -- I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the o foregoing paragraph is true and correct. o WITNESS my hand and official seal. a a a x i Name: 0° Name: Notary Public o I E U w c MONICA RODRIGUEZ Commission#2026308 e w Notary Public•California z Q z San Bernardino County M 4 Comm.Ex Tres Ma 26.2017 161010811620166.6 Packet Pg.182 I EXHIBIT A LEGAL DESCRIPTION The land is situated in the State of California, County of San Bernardino, City of San Bernardino and is described as follows: A PORTION OF LOT 7, BLOCK 42 OF RANCHO SAN BERNARDINO ACCORDING TO THE OFFICIAL MAP RECORDED IN BOOK 7,PAGE 2,IN THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND MORE 0 PARTICULARLY DESCRIBED AS FOLLOWS: 0 U x BEGINNING AT A POINT ON THE NORTH LINE OF NINTH ST. 1,774.70 FEET EAST FROM THE CENTER LINE OF WATERMAN AVENUE; THENCE NORTHERLY PARALLEL TO THE WEST LINE OF SAID LOT 7 A N DISTANCE OF 602.75 FEET;THENCE EASTERLY PARALLEL TO THE SOUTH LINE OF SAID LOT 7 TO A POINT 50.00 FEET FROM THE EAST LINE OF SAID LOT 7;THENCE SOUTHERLY PARALLEL TO THE SAID EAST LINE Ln OF LOT 7 TO THE SOUTH LINE OF SAID LOT 7;THENCE WESTERLY ALONG THE SAID SOUTH LINE OF LOT 7 N OF THE TRUE POINT OF BEGINNING. o r SAID LAND IS ALSO SHOWN AS PARCEL I OF CERTIFICATE OF COMPLIANCE FOR LOT LINE ADJUSTMENT c0i NO. 88-30 RECORDED SEPTEMBER 29, 1989 AS INSTRUMENT NO. 89-365668 OF OFFICIAL RECORDS. Q Q APN(s): 147-191-12 a x I m N O A U r d E t v co w r Q A-1 161010811620166.6 Packet F gj 183 I , EXHIBIT B HOME PROGRAM RENTS The attached HOME Rents reflect the current HOME rents as of the Effective Date. The initial Rents and subsequent Rents for all County-Assisted Units must be provided to the Borrower by the County prior to occupancy and are subject to the HOME Regulations. The County will provide Borrower with a schedule of maximum permissible Rents for the County-Assisted Units annually. r V U a) ti N r O N _ O :F. t0 V Q Q a a W x i m Cn O U _ d v R .r r Q B-I 1610t081I620166.6 Packet Pg. 1$4r Ic EXHIBIT B HOME APPROVED RENTS COUNTY HOME ASSISTED UNITS NUMBER INITIAL HOME UNITWOR OF HOME RENT CATEGORY PROGRAM NUMBER BEDROOMS APPROVED RENTS* o tLn V 1 1 Low HOME Rent(50%) $528 3 3 Low HOME Rent(50%) $871 N d' Ln Note: All HOME units to be Floating Units. N *Source. US Department of HUD HOME PROGRAM RENT LIMITS as April 2014 0 for Riverside and San Bernardino Counties .Q :z a a a x i m Cn 0 r L) d E U r r Q 1610\08\1620166.6 Packet Pg. 185 EXHIBIT C INITIAL CERTIFICATE OF PROGRAM COMPLIANCE Val 9 Housing Partners,L.P.,a California limited partnership("Owner"),hereby certifies that it will comply with all applicable, ongoing HOME Program requirements for the Property's Affordability Period which has been determined to be fifty-five (55) years from the date of issuance of the Certificate of Occupancy for the above-described Project. Affordability shall be maintained as follows: [Insert project description]. w During the term of the Regulatory Agreement the Owner will rent four(4) County-Assisted Units, and ensure that these units are occupied or, if vacant, available for occupancy, by Very Low o Income Households. U x Property owners and managers have participated in the San Bernardino County Sheriff-Coroner N Department's Crime Free Multi-Housing Unit Program, wherein specialized training and other resources are provided to multi-family property owners and managers to reduce the potential for onsite criminal activity. Completion of the Department's four (4) training phases, a Final Certification (Phase V) has been achieved and will be maintained by the owner/representative ° and/or regional/-onsite property manager. `2 Q Owner is maintaining and attaching the following records and reports in order to assist the County a in meeting its record keeping and reporting requirements under the HOME Program: x i I. Files on the annual review and certification of tenant income; co 2. All information on the qualification of affordable rents; o 3. Terms and conditions of all signed leases between Tenants and Owner; w 4. All other reports and records requested by County pursuant to the Loan Documents. _ d E [Signature Page Follows] o r r a C-1 1610\08\1620166.6 Packet Pg. 186 Dated: OWNER: Val 9 Housing Partners, L.P., a California limited partnership By: Val 9 MGP,LLC, a California limited liability company, its sole general partner , By: National Community Renaissance of California,its sole member and manager L By: o Tracy Thomas, Chief Financial Officer = N d' 119 O N C O O V .Q a a x i m m w O Y U Y E V Y Y a C-2 161010811620166.6 Packet Pg. 187 ANNUAL CERTIFICATION OF CONTINUING PROGRAM COMPLIANCE Val 9 Housing Partners,L.P., a California limited partnership("Owner"),hereby certifies that it will comply with all applicable, ongoing HOME Program requirements for the Property's Affordability Period which has been determined to be fifty-five (55) years from the date of issuance of the Certificate of Occupancy for the above-described Project. Affordability shall be maintained as follows: [Insert project description]. During the term of the Regulatory Agreement the Owner will rent four(4) County-Assisted Units, and ensure that these units are occupied or, if vacant, available for occupancy, by Very Low Income Households. o U Property owners and managers have participated in the San Bernardino County Sheriff-Coroner 2; Department's Crime Free Multi-Housing Unit Program, wherein specialized training and other N resources are provided to multi-family property owners and managers to reduce the potential for onsite criminal activity. Completion of the Department's four (4) training phases, a Final o Certification (Phase V) has been achieved and will be maintained by the owner/representative c and/or regional/-onsite property manager. r U Owner is maintaining and attaching the following records and reports in order to assist the County � in meeting its record keeping and reporting requirements under the HOME Program: aa. a. 1. Files on the annual review and certification of tenant income; =i 2. All information on the qualification of affordable rents; 00> 3. Terms and conditions of all signed leases between Tenants and Owner; o 4. All other reports and records requested by County pursuant to the Loan r Documents. U L) d [Signature Page Follows] w a C-1 1610108\1620166.6 Packet Pg. 188- QDated: OWNER: Val 9 Housing Partners,L.P., a California limited partnership By: Val 9 MGP, LLC,a California limited liability company,its sole general partner r By: National Community Renaissance of California, its sole member and manager o U Z By: Tracy Thomas,Chief Financial Officer v 0 N _ O f V .Q o a a c. x i m w O U _ a� E � I ca Q C-2 1610\08\1620166.6 Palgket'P 189 CERTIFICATE OF CONTINUING PROGRAM COMPLIANCE The following information with respect to Val 9 Apartments (the "Development"), is being provided by Val 9 Housing Partners, L.P., a California limited partnership (the "Owner")to the County of San Bernardino, (the "Conn "), pursuant to that certain HOME Investment Partnerships Act Loan Agreement dated as of March_, 2015 and the Regulatory Agreement dated as of March_, 2015 with respect to the Development: (A) The total number of residential units which are completed and available for occupancy is r The total number of such units occupied is 0 (B) The following residential units (identified by unit number) have been designated = County-Assisted Units, as described in the Regulatory Agreement(for a total of le N (C) The following residential units which are included in(B) above, have been designated as o County-Assisted Units since 20 the date on which the last c "Certificate of Continuing Program Compliance" was filed with the County by a Previous Designation of Q Unit Number Unit(if any) Replacing Unit Number a a. x i M 0 w U If a floating unit was substituted, please attach any information on unit substitutions and W filling of vacancies to evidence maintenance of required unit mix and income targeting.) 0 w (D) The following residential units are considered to be occupied by Very Low Income a Households and Low Income Households based on the information set forth below: Date of Persons Total Monthly Number Unit Name of Tenant Residing Adjusted Initial Rental of Unit No in Unit Gross Occupancy Amount Income Attach a Separate Sheet if Necessary C-3 1610108\1620166.6 Packet_Pq_. 190 (E) In renting the residential units in the Development, Owner has not given preference to any particular group or class of persons not allowed under the Regulatory Agreement (except for persons who qualify as qualified Very Low Income Households). All of the residential units in the Development have been rented pursuant to a written lease, and the term of each lease is at least 12 months. A copy of the form lease for County- Assisted Units is attached. (F) Property owners and managers have participated in the San Bernardino County Sheriff- Coroner Department's Crime Free Multi-Housing Unit Program, wherein specialized training and other resources are provided to multi-family property owners and managers to reduce the potential for onsite criminal activity. Completion of the Department's four (4) training phases, a Final Certification (Phase V) has been achieved and is being maintained by the owner/representative and/or regional/-onsite property manager. L (G) Each building in the Development and all County-Assisted Units in the Development 0 0 are suitable for occupancy and comply with all applicable State and local health, safety x and other applicable codes, ordinances, and requirements and the ongoing property standards, as specified in Section of the 5.7 of the Regulatory Agreement. N Ln (H) The information provided in this "Certificate of Continuing Program Compliance" is accurate and complete, and no matters have come to the attention of Owner which would indicate that any of the information provided herein, or in any "Certification of Tenant w Eligibility obtained from the tenants named herein, is inaccurate or incomplete in any respect. Q a a IN WITNESS WHEREOF, I have hereunto affixed my signature, on behalf of Owner, on this a _day of , 20_ =i m m OWNER: c r U Val 9 Housing Partners,L.P.,a California limited partnership E By: Val 9 MGP,LLC,a California limited liability company, its sole general partner Q By: National Community Renaissance of California,its sole member and manager By: Tracy Thomas, Chief Financial Officer C-4 161010811620166.6 Packk Pg,191 EXHIBIT D FORM OF CERTIFICATION OF TENANT ELIGIBILITY Rental Unit Street Address Unit No City Zip Code I/We, the undersigned, being first duly sworn, state that Uwe have read and answered fully and truthfully each of the following questions for all persons who are to occupy the unit in the above Development for which application is made,all of whom are listed below: 0 1. 2. 3. 4. 5. x Name of Members Relationship to Place of in the Household Head of Household Age Ethnicity Employment N LO 0 N C O 'a+ t0 U .Q G. Q Ethnicity: ❑ White ❑ Black or African American ❑ Asian ❑ Asian&White ❑ a a. American Indian or Alaska Native C x ❑ Native Hawaiian or Other Pacific Islander ❑ American Indian or Alaska Native&White In ❑ Black or African American&White ❑ American Indian or Alaska Native&Black or c African American ❑ Other Multi Race ❑ Hispanic Date of Occupancy of Rental Unit by Tenant: s Date of Lease Signed for Rental Unit by Tenant: Amount of Rent Paid Per Month: a Certification Date (Earlier of Date of Occupancy or Date Lease signed): 6. Anticipated Annual Income. The anticipated total annual income from all sources of each person listed in 1 for the twelve (12) month period beginning on the Certification Date listed above, including income described in (a) below, but excluding all income described in(b)below, is$ (a) The amount set forth above includes all of the following income (unless such income is described in (b) below): all wages and salaries, overtime pay, commissions, fees, tips and bonuses before payroll deductions; net income from the operation of a business or profession or from the rental of real or personal property (without deducting expenditures for business expansion or amortization D-1 161010811620166.6 Packet Pg.-102' of capital indebtedness or any allowance for depreciation of capital assets); interest and dividends (including income from assets as set forth in item 7(b) below); full amount of periodic payments received from Social security,annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts; payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay; the maximum amount of public assistance available to the above persons; periodic and determinable allowances, such as alimony and child support payments and regular contributions and gifts received from persons not residing in the dwelling; all regular pay, special pay and allowances of a member of the Armed Forces(whether or not living in the dwelling)who is the head of the household or spouse; and any earned income tax credit to the extent it exceeds income tax liability. o L (b) The following income is excluded from the amount set forth above: casual, o sporadic or irregular gifts; amounts that are specifically for or in reimbursement = of medical expenses; lump sum additions to family assets, such as inheritances, insurance payment(including payments under health and accident insurance and CM worker's compensation), capital gains and settlement for personal or property losses; amounts of educational scholarships paid directly to student or o educational institution, and amounts paid by the government to a veteran for c use in meeting the costs of tuition, fees, books and equipment, but in either case . only to the extent used for such purposes; hazardous duty pay to a member of 2 the household in the armed forces who is away from home and exposed to Q hostile fire; relocation payments under Title II of the Uniform Relocation aa. Assistance and Real Property Acquisition Policies Act of 1970; income from employment of children (including foster children) under the age of eighteen mi (18) years; foster child care payments; the value of coupon allotments under the Cn Food Stamp Act of 1977; payments to volunteers under the Domestic Volunteer c Service Act of 1973; payments received under the Alaska Native Claims Settlement Act; income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes; payments on allowances d made under the Department of Health and Human Services' Low-Income Home Energy Assistance Program; and payments received from the Job Partnership Training Act. Q 7. Net Family Assets. If any of the persons described in item 1 above (or any person whose income or contributions were included in item 6)has any savings, stocks, bonds, equity in real property or other form of capital investment(excluding interests in Indian trust lands),provide: (a) the total value of all such assets owned by all such persons: $ and (b) the amount of income expected to be derived from such assets D-2 1610\08\1620166.6 Packet0: ,�§3- in the twelve(12)month period commencing this date: $ 8. Students i (a) Will any of the persons listed in item 1 above be or have they been full-time students during five (5) calendar months of this calendar year at an educational institution (other than a correspondence school) with regular faculty and students? Yes No (b) (Complete only if the answer to Question 8(a) is "Yes"). Is any such person (other than nonresident aliens) married and eligible to file a joint federal income tax return, a veteran of the U.S. military? o U x Yes No ' ti N The above information is full, true, and complete to the best of my knowledge. I have no objections to inquiries being made for the purpose of verifying the statements made herein. o N r- 0 Y V Signature: Date a a CL CL (Signature Must be Notarized) x i m CO w O U c d E v co r w Q I D-3 161010811620166,6 Packet Pg.,1,94`. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness,accuracy, or validity of that document. STATE OF CALIFORNIA ) COUNTY OF ) On ,before me, ,Notary Public, personally appeared ,who proved to me on the o basis of satisfactory evidence to be the person(s) whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or N the entity upon behalf of which the person(s)acted,executed the instrument. I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the o foregoing paragraph is true and correct. o WITNESS my hand and official seal. .Q a a a a o: x i Name: 0° N I Name: Notary Public o U d E t v r Q D-4 161010811620166.6 Packet Pg. 195 —. _......._. FOR COMPLETION BY DEVELOPMENT OWNER ONLY: A. Calculation of eligible income: (1) Enter amount entered for entire household in 6 above: $ (2) If the amount entered in 7(a) above is greater than$5,000, enter $ (i) the product of the amount entered in 7(a) above multiplied by the current passbook savings rate as determined by HUD: $ (ii) the amount entered in 7(b) above: $ 0 (iii) enter the greater of line(i) or line(ii): $ _ h N 3 TOTAL ELIGIBLE INCOME Line A(l)p plus line A 2 iii $ 7zt LO 0 N C B. Enter number of family members listed in item 1 above: a co/ C. The amount entered in A(3) (Total Eligible Income) is: $ 0. a a a. Less than $ of median income for the area in which the Development is located, which is the maximum income at which a household may be mi determined to be a qualifying tenant as that term is defined in the Agreement. Cn 4- 0 More than the above-mentioned amount. w U D. Number of units assigned: E E. Monthly rent: $ w Y a F. This unit (was/was not) last occupied for a period of thirty-one (3 1) consecutive days by a person or persons whose adjusted income, as certified in the above manner, was equal to or less than the amount at which a person would have qualified as a qualifying tenant under the terms of the Agreement. G. Applicant: Qualities as a qualifying tenant. Does not qualify as a qualifying tenant. D-5 161010811620166.6 Packet Pg. 19 EXHIBIT E HUD RIDER This RIDER TO RESTRICTIVE COVENANTS is made as of March 17,2015 by VAL 9 HOUSING PARTNERS, L.P., a California limited partnership ("Borrower") and THE COUNTY OF SAN BERNARDINO,a public body, corporate and politic("Agency"),but shall only be effective so long as the Secretary of Housing and Urban Development or his/her successors or assigns, are the insurers or holders of the first mortgage on the Waterman Gardens —Valencia 9, FHA Project No. 143-35130. WHEREAS,Borrower has or intends to obtain financing from PNC Bank,National Association("Lender")for the benefit of the project known as Waterman Gardens—Valencia 9, �. FHA No. 143-35130("Project"),which loan is or will be secured by a Multifamily Deed of Trust,Assignment of Rents and Security Agreement("Security Instrument")to be recorded in o the Recorder's Office of San Bernardino County, California("Records"),and shall be insured by = the United States Department of Housing and Urban Development("HUD"); ti WHEREAS,Borrower has received a loan from the Agency, which Agency is requiring certain restrictions be recorded against the Project including that certain Regulatory Agreement and Declaration of Restrictive Covenants dated March 17,2015 (the"Restrictive Covenants"); N and r- 0 w c� WHEREAS,HUD requires as a condition of its insuring Lender's financing to the Project,that the lien and covenants of the Restrictive Covenants be subordinated to the lien, a covenants,and enforcement of the Security Instrument; and a. W WHEREAS,the Agency has agreed to subordinate the Restrictive Covenants to the lien =i of the Mortgage Loan in accordance with the terms of this Rider. U) T NOW,THEREFORE, in consideration of the foregoing and for other consideration the receipt and sufficiency of which are hereby acknowledged,the parties hereby agree as follows: w (a) In the event of any conflict between any provision contained elsewhere in the Restrictive Covenants and any provision contained in this Rider,the provision contained in this Rider shall govern and be controlling in all respects as set forth more fully herein. w a (b) The following terms shall have the following definitions: "Code"means the Internal Revenue Code of 1986, as amended. "HUD"means the United States Department of Housing and Urban Development. "HUD Regulatory Agreement"means the Regulatory Agreement between Borrower and HUD with respect to the Project, as the same may be supplemented, amended or modified from time to time. "Lender"means PNC Bank,National Association,its successors and assigns. E-1 161010811620166.6 Packe#Pg. 197 "Mortgage Loan"means the mortgage loan made by Lender to the Borrower pursuant to the Mortgage Loan Documents with respect to the Project. "Mortgage Loan Documents"means the Security Instrument,the HUD Regulatory Agreement and all other documents required by HUD or Lender in connection with the Mortgage Loan. "National Housing Act" means the National Housing Act of 1934,as amended. "Program Obligations" has the meaning set forth in the Security Instrument. "Residual Receipts"has the meaning specified in the HUD Regulatory Agreement. "Security Instrument" means the mortgage or deed of trust from Borrower in favor of Lender, as the same may be supplemented, amended or modified. , c �a "Surplus Cash"has the meaning specified in the HUD Regulatory Agreement. 0 (c) Notwithstanding anything in the Restrictive Covenants to the contrary,the = provisions hereof are expressly subordinate to (i)the Mortgage Loan Documents, including without limitation,the Security Instrument, and(ii)Program Obligations(the Mortgage Loan N Documents and Program Obligations are collectively referred to herein as the "HUD Requirements"). Borrower covenants that it will not take or permit any action that would result c in a violation of the Code,HUD Requirements or Restrictive Covenants. In the event of any conflict between the provisions of the Restrictive Covenants and the provisions of the HUD ° Requirements,HUD shall be and remains entitled to enforce the HUD Requirements. �+ Notwithstanding the foregoing,nothing herein limits the Agency's ability to enforce the terms of a the Restrictive Covenants,provided such terms do not conflict with statutory provisions of the aa.. National Housing Act or the regulations related thereto. The Borrower represents and warrants W that to the best of Borrower's knowledge the Restrictive Covenants impose no terms or mi requirements that conflict with the National Housing Act and related regulations. W w 0 (d) In accordance with 26 U.S.C.42(h)(6)(E)(i)(1), in the event of foreclosure(or > deed in lieu of foreclosure),the Restrictive Covenants(including without limitation,any and all land use covenants and/or restrictions contained herein)shall automatically terminate,with the exception of the requirements of 26 U.S.C. 42(h)(6)(E)(ii)above,to the extent applicable,or as E otherwise approved by HUD. w a (e) Borrower and the Agency acknowledge that Borrower's failure to comply with the covenants provided in the Restrictive Covenants does not and shall not serve as a basis for default under the HUD Requirements,unless a default also arises under the HUD Requirements. (f) Except for the Agency's reporting requirement,in enforcing the Restrictive Covenants the Agency will not file any claim against the Project,the Mortgage Loan proceeds, any reserve or deposit required by HUD in connection with the Security Instrument or HUD Regulatory Agreement,or the rents or other income from the property other than a claim against: i. Available surplus cash, if the Borrower is a for-profit entity; ii. Available distributions of surplus cash and residual receipts authorized for release E-2 1610\08\1620166.6 Packet Pg.198 by HUD,if the Borrower is a limited distribution entity; or i iii. Available residual receipts authorized by HUD,if the Borrower is a non-profit entity or iv. A HUD-approved collateral assignment of any HAP contract. (g) For so long as the Mortgage Loan is outstanding, Borrower and Agency shall not further amend the Restrictive Covenants,with the exception of clerical errors or administrative correction of non-substantive matters,without HUD's prior written consent. (h) Subject to the HUD Regulatory Agreement,the Agency may require the Borrower to indemnify and hold the Agency harmless from all loss, cost, damage and expense arising from �. any claim or proceeding instituted against Agency relating to the subordination and covenants set forth in the Restrictive Covenants,provided,however,that Borrower's obligation to indemnify o and hold the Agency harmless shall be limited to available surplus cash and/or residual receipts = of the Borrower or non-Project assets of the Borrower. ti N d• L r O N G O to V Q Q a a tr x i M CO 4- O U c d E t v cc w r a E-3 1610\08\1620166.6 Packet Pg. !99 I 5.E.c • . . Housing= Related „ „ mom❑ ❑ III Parks Program , " .� ti �k N d. 1"A a C EWE now 011 d. a €0 z ED E to Q Program Guidelines - 2015 Designated Program Year Packet Pg. 200 5.E.c Housing-Related Parks Program Program Guidelines Revised November 2015 Section 100 Introduction and Program Background w c� The Department of Housing and Community Development (Department) is pleased to release revised program guidelines (Guidelines) for funding through the Housing-Related Parks (HRP) Program (Program). The HRP Program is designed to encourage cities and counties to develop new residential housing by rewarding those jurisdictions that approve housing affordable to lower-income households and are in compliance with State housing element law. C The HRP Program was funded through Proposition 1 C, the Housing and Emergency Shelter o Trust Fund Act of 2006, Health and Safety Code Section 53545, subdivision (d) and originally established pursuant to Chapter 641 , Statutes of 2008 (AB 2494, Caballero), at Chapter 8 of a Part 2 of Division 31 of the Health and Safety Code (commencing with Section 50700) and = subsequently amended pursuant to Chapter 779, Statutes 2012 (AB 1672, Torres). The Program awards funds on a per-bedroom basis for each residential unit affordable to very low- E and low-income households permitted during the designated Program year. The Program = provides funds for parks and recreation projects that benefit the community and add to the w quality of life. a The Department reserves the right, at its sole discretion, to suspend or amend the provisions of these Guidelines, including, but not limited to, grant award amounts. HRP Program Guidelines Page 1 of 22 Revised October 2015 Packet Pg.201 Section 101 Definitions Capitalized terms used in these Guidelines shall have the meanings set forth below: A. "Building Permit" means a permit issued by a city or a county to construct any building or structure regulated by the Uniform Building Code. B. "Converted" means multifamily rental units converted from market rate to affordable by acquisition of the units or purchase of affordability covenants and restrictions as described in paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code, except that the city, county, or city and county may have committed assistance at any time during the projection period. C. "Disadvantaged Community" means an area within a city, county, or city and county that is composed solely of those census tracts designated by the United States Department of Housing and Urban Development as having at least 51 percent of its residents at low- or moderate-income levels, using the most recent decennial United States Census data available. c°) x D. "Department" means the California Department of Housing and Community Development N E. "Designated Program Year" means the designated time period as indicated in the Notice of Funding Availability ("NOFA") issued by the Department for each funding round. _ F. "Eligible Subcontractor" means a recreation and park district formed under Chapter 4 (commencing with Section 5780 of Division 5 of the Public Resources Code, a district a formed pursuant to Section 5500 or 35100 of the Public Resources Code for the creation = or improvement of a park or recreational facility, or any nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec 501(c)(3)), that is exempt from taxation and that has among its purposes the conservation of natural or cultural resources. r d G. "Eligible Unit" means a housing unit that qualifies for the base grant award. Only Eligible Units can qualify for the bonus criteria awards. H. "Extremely Low-Income Households" has the meaning set forth in Health and Safety Code Section 50106. I. "Infill Project" means a residential or mixed-use residential project located within an Urbanized Area on a site that has been previously developed or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed with Urban Uses. In calculating this percentage, perimeters bordering navigable bodies of water and improved parks shall not be included. For these purposes, a property is adjoining the side of a project site if the property is separated from the project site only by an improved public right-of-way. HRP Program Guidelines Page 2 of 22 Revised October 2015 Packet Pg. 202! Section 101 Definitions -continued- J. "Low-Income Households" has the meaning set forth for lower-income households in Health and Safety Code Section 50079.5. K. "Park and Recreation Facility" means a facility that provides benefits to the community and includes, but is not limited to, places for organized team sports, outdoor recreation, and informal turf play; non-motorized recreational trails; permanent play structures; landscaping; community gardens; places for passive recreation; multipurpose structures designed to meet the special recreational, educational, vocational, and social needs of youth, senior citizens, and other population groups; recreation areas created by the redesign and retrofit of urban freeways; community swim centers; regional recreational trails; and infrastructure and other improvements that support these facilities. w L. "Parks Deficient Community" means an area within a city, county, or city and county that L has less than three acres of usable parkland per 1,000 residents. 0 U M. "Preserved" means units preserved at affordable housing costs to lower-income households by acquisition of the units or the purchase of affordability covenants and N restrictions as described in paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code, except that the city, county, or city and county may have committed assistance at any time during the projection period. N. "Program" means the Housing-Related Parks Program implemented by these Guidelines. o. a O. "Qualifying Park Project" means that Park and Recreation Facility designated in the _ Program Application that meets the eligible use criteria for funding through the Program, as set for in Section 108 of these Guidelines. W P. "Regional Blueprint Plan" means a regional plan that implements statutory requirements intended to foster comprehensive planning as defined in Section 65041 .1 of Chapter 2.5 a (commencing with Section 65080) of Division 1 of Title 7 and Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. Q. "Substantially Rehabilitated" means units at imminent risk of loss to the housing stock which are substantially rehabilitated and therefore represent a net increase in the community's affordable housing stock as described in paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code, except that the city, county, or city and county may have committed assistance at any time during the projection period. HRP Program Guidelines Page 3 of 22 Revised October 2015 PackePg.203; 5.E.c Section 101 Definitions -continued- R. "Urbanized Area" means an incorporated city or urbanized area or urban cluster as defined by the United States Census Bureau. For unincorporated areas outside of an urban area or urban cluster, the area shall be within a designated urban service area that is designated in the local general plan for urban development and is served by public sewer and water. S. "Urban Uses" means any residential, commercial, industrial, transit, transportation passenger facility, or retail use, or any combination of those uses. Urban uses do not include lands used for agricultural uses or parcels in excess of 15,000 square feet in size and containing only one single-family residence. w T. "Very Low-Income Households" has the meaning set forth in Health and Safety Code o Section 50105. 0 U r,. N C d 0. a o: x c a� E s U fC w Q HRP Program Guidelines Page 4 of 22 Revised October 2015 Packet Pg. 204 S.E.c Section 102 Eligibility and Threshold Criteria The Program does not use a competitive process to award funds; all cities and counties that meet the eligibility requirements outlined below will be funded as provided in these Guidelines. A. Eligible Applicants Cities, counties, and cities and counties are eligible to apply to the Department for funds for eligible costs and activities under the Program. B. Threshold Criteria Applicants must meet all of the following threshold requirements for participation in the Program: Y 1. Housing Element Compliance: The applicant must have a housing element that has P been adopted by the jurisdiction's governing body and determined to be in substantial compliance with State housing element law pursuant to Government Code Section 65585 by the deadline specified in the NOFA. The jurisdiction's adopted housing element will be deemed to have met this requirement if the adopted element is submitted to the N Department on or prior to the date specified in the NOFA and the Department determines : the submitted adopted housing element to be in substantial compliance pursuant to LO Government Code Section 65585 without further amendment. A jurisdiction's current housing element compliance status can be obtained by referencing the Department's website at http://www.hcd.ca.gov/hpd/hrpp/ or by contacting the Program representative c� for your region. a 2. Annual Progress Report on the housing element submitted to the Department: Government Code Section 65400 requires local governments to submit reports to the Department on the jurisdiction's progress in implementing the housing element. To qualify for the Program funding round, an applicant must submit to the Department the Y Annual Progress Report (APR) required by Government Code Section 65400 for the a Designated Program Year. For the purposes of the Program, required Annual Progress Reports must be submitted by the date established in the NOFA. Charter cities are not exempt from this specific program requirement and must submit an Annual Progress Report to be eligible for the Program. The reports must cover the prior calendar year(s) that immediately precedes the Calendar Year for which eligible units are being claimed and meet all the requirements for the report set forth in Section 65400. If the Designated Program Year covers more than one calendar or fiscal year, the jurisdiction must submit an Annual Progress Report for each of the reporting years in which the jurisdiction has documented eligible units for the purposes of qualifying for funds. HRP Program Guidelines Page 5 of 22 Revised October 2015 Packet Pg. 205 Section 102 Eligibility and Threshold Criteria -continued- Please be advised that the Department will not accept other reports in lieu of the APR. Housing Authority Financial Reports, Redevelopment Reports, and other similar reports will not be accepted as meeting this requirement. If uncertain of the status of the report submittal for a jurisdiction, please contact the Department for more information. 3. Eligible Units must meet the following Census Bureau definition: "A house, an apartment, a mobile home or trailer, a group of rooms, or a single room that is occupied as separate living quarters, or if vacant is intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live separately from any other individuals in the building and which have a direct access from the outside of the building or through a common hall." L c� 4. Minimum Grant Amount: To be eligible for funding, an applicant must meet a minimum grant amount of $75,000, including any bonus awards, based on Eligible Units for the Designated Program Year. If an applicant is unable to meet the minimum threshold N amount, it may combine Eligible Units from the Designated Program Year with Eligible 7 Units from one or more subsequent funding rounds and apply once it is able to meet the minimum qualification amount. If the applicant intends to combine Eligible Units from multiple funding rounds in order to apply in a later funding round, all threshold criteria must be met by the close of each a Designated Program Year for the respective funding rounds in which qualifying units are = being utilized. However, in order to qualify using this method, an applicant must submit an application once it can meet the minimum $75,000 threshold requirement. E w w Q HRP Program Guidelines Page 6 of 22 Revised October 2015 Packet Pg.206 Section 103 Required Threshold Criteria Documentation kL A. Applicants will be required to submit, at minimum, the following documents to the Department as part of the application: 1. For new affordable units: building permits for Eligible Units or installation approvals for manufactured homes issued during the Designated Program Year. For units Substantially Rehabilitated, Converted, or Preserved: a certificate of occupancy or other evidence of readiness for occupancy within the Designated Program Year. Documentation must also be included to demonstrate the units meet all requirements of paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code, except that the local government may have committed assistance at any time during the projection period. 2. Documentation of the affordability deed restrictions or covenants associated with each eligible housing unit, including restriction by income level. 0 U 3. Documentation showing the total number of bedrooms by income level for each eligible housing unit. Documentation of affordability and bedroom counts must contain a project N identifier, such as an assessor's parcel number (APN), address or other similar identifier S that clearly ties the affordability and bedroom count documentation to the Eligible Unit. tn B. Applicants are encouraged to track Eligible Units as they are issued throughout the year and :2 document the affordability and bedroom counts of those units eligible for the Program. 0 a o. a: x CD E s U fC Q HRP Program Guidelines Page 7 of 22 Revised October 2015 Packet Pg. 207 Section 104 Affordability Requirements The occupancy of Eligible Units must be for households whose incomes are within the published income limits for Very Low- or Low-Income Households. For the purpose of the Program, the units shall be considered affordable if the rent or housing payment is restricted by a regulatory agreement or deed restriction, and does not exceed amounts allowed by common Federal or State housing assistance programs, as determined by the Department. A. New Construction Units 1 . Rental Units: Eligible rental units must be subject to an affordability covenant or agreement recorded on the property that requires the owner to maintain rents on the restricted units at levels affordable to very low- or low-income households for at least 55 years. r For manufactured housing rental units, affordability is determined by the rental amount for the manufactured housing only and does not include the rental amount for the space o where the manufactured housing is located. _ Specifically, Eligible Units must include: N a. Affordable rents for Very Low- and Low-income Households', and b. Covenants restricting occupancy to eligible households and affordable rents for a minimum of 55 years, which begins with the recording date of the instrument used to ensure repayment, typically a deed restriction. a x Please note that if the primary funding source for an affordable unit requires a shorter period of affordability, such as 30 years, the applicant must further restrict the Eligible Unit for a minimum of 55 years to be eligible for the Program. r 2. Ownership Units: Eligible Units must be initially reserved for sale to a very low- or low- a income household and ensure the repayment of the public funds and reuse of those funds for affordable housing for a period of at least 20 years. The 20-year time period for ownership units begins with the recording date of the instrument used to ensure repayment, typically a deed restriction. a. If no public funds are used for an ownership unit affordable to a Very Low- or Low- Income Household, the local jurisdiction may count the unit if it can demonstrate that the unit has been or will be initially sold to an income-eligible household at an affordable housing cost. 'Affordability in rents can be met with or without a subsidy to the tenant or to the unit; rents may be restricted by project or by unit. HRP Program Guidelines Page 8 of 22 Revised October 2015 Packet Pg. 208 5.E.c Section 104 Affordability Requirements -continued- b. All ownership units must be within the applicable sales price limits for new construction as published by the California Housing Finance Agency (CaIHFA). The sales price limits can be obtained on the CalHFA website at http://www.calhfa.ca.gov/homeownership/limits/index.htm. 3. In mixed-income developments, only those units that meet the Program income and affordability requirements will qualify for an award. Housing units in a mixed-use commercial development that meet the eligibility requirements may be counted in this Program, as well as second units or units that are converted from non-residential to residential uses. B. Units Substantially Rehabilitated, Converted, and/or Preserved Pursuant to paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code, the affordability requirements for each type of project are as follows: a� ti N d' N d C Project Type Minimum Affordability Term c� 20 years, or the time period required by any Substantial Rehabilitation W applicable federal or state law or regulation = CD Conversion (multifamily rental E 55 years units only) r Preservation 40 years a HRP Program Guidelines Page 9 of 22 Revised October 2015 Packet Pg. 209 Section 105 Base Grant Award A. Funds will be awarded on a per-bedroom basis for each documented Eligible Unit. Studio and efficiency units are counted as one-bedroom units. B. Awards will be distributed on the following basis: 1 . $500 per bedroom for each unit affordable to Low-Income Households 2. $750 per bedroom for each unit affordable to Very Low-Income Households C. The minimum grant amount of $75,000, including the calculation of any bonus awards, must be achieved through Eligible Units. r 0 U x a) ti N N d C 0- a x :r C 4) E M U w Q HRP Program Guidelines Page 10 of 22 Revised October 2015 Packet Pg.210 5.E.c Section 106 Bonus Criteria Awards and Required Supporting Documentation In addition to the base grant award, substantial bonus funds will be awarded for New Construction and Qualifying Park Projects serving Disadvantaged and/or Park-Deficient Communities. Additional bonus funds will be awarded for Extremely Low-Income Units, Infill Projects, Infill- Supporting Park and Recreation Facility Projects or Regional Blueprint Conformance, and RHNA Bonus. Eligibility criteria for each of the bonus awards are as follows: A. New Construction: A $300 bonus will be awarded per bedroom for qualifying new housing units based on building permits submitted with the application. w B. Extremely Low-Income Units: A $250 bonus will be awarded per bedroom for each unit to be occupied by and affordable to Extremely Low-Income Households. 0 U 1. The application must include documentation of the affordability deed restrictions or covenants associated with the specific number of units and clearly identify that the N units are restricted at the Extremely Low-Income level. C. Infill Projects: A $250 bonus will be awarded per bedroom for each Eligible Unit that is built in an Infill Project. o c� 1 . Infill units must be part of a Infill Project located within an Urbanized Area as a a determined by ONE of the following: x w a. located within an incorporated city, OR W b. located within an urbanized area or urban cluster as defined by the U.S. Census Bureau at http://www.census.gov/2010census/, OR Y a c. for unincorporated areas outside an urbanized area or urban cluster, the area shall be within a designated urban service area that is designated in the local general plan for urban development and is served by public sewer and water. 2. The Infill Project must meet ONE of the following requirements: a. the site has been previously developed, OR b. at least 75 percent of the perimeter of the site adjoins parcels that are currently developed with Urban Uses (refer to definition of Urban Uses in Section 102), or is separated from parcels that are developed with Urban Uses only by an improved public right-of-way. In calculating this percentage, perimeters bordering navigable bodies of water and improved parks shall not be included. HRP Program Guidelines Page 11 of 22 Revised October 2015 Packet Pg.211 Section 106 Bonus Criteria Awards and Required Supporting Documentation V, -continued- 3. Documentation must be submitted to support units are in an Infill Project meeting the criteria above. Documentation can include, but is not limited to: a. engineer's calculations; b. aerial photos; C. historical Documents (to show previously developed status of the site); and d. other documentation acceptable to the Department that sufficiently identifies the project as meeting the definition of an Infill Project. Note: if aerial photographs are provided, the image must clearly identify the Infill Project site boundaries. In addition, if not easily identifiable, the application should provide a description of the adjacent uses to demonstrate the uses meet the definition of "Urban Uses." If no description is provided, the Department will make a o determination to the best of its ability. _ D. Disadvantaged Community: A $500 bonus will be awarded per bedroom for each Eligible N Unit if the applicant can evidence that all Program funds will be spent to create or rehabilitate a park or community recreational facility that will serve a Disadvantaged Community. 1 . The applicant must demonstrate that all the Program funds will be utilized for a Qualifying Park Project that meets the definition of a Disadvantaged Community a demonstrated through at least ONE of the following: _ w a. Any portion of the Qualifying Park Project is located within or bordered E by at least one qualified census tract (QCT) as determined the by U.S. Department of Housing and Urban Development. Documentation to 2 support this identification will be obtained by all applicants through the Q HUD-User GIS Service QCT Locater available at http://www.huduser.gov/qct/gctmap.htmi OP b. The Qualifying Park Project is located within a census tract determined by the U.S. Department of Housing and Urban Development having at least 51 percent of its residents at low- or moderate-income levels. Documentation to support this identification will be obtained by all applicants from the dataset available at https://www.hudexchange.info/onecpd/assets/File/ACS 2006 lowmod blockgroup ca 2015.xlsx HRP Program Guidelines Page 12 of 22 Revised October 2015 Packet Pg. 212 Section 106 Bonus Criteria Awards and Required Supporting Documentation -continued- E. Park-Deficient Community: A $500 bonus will be awarded per bedroom for each Eligible Unit if the applicant can demonstrate all Program funds will be utilized for a Qualifying Park Project located in an area within the jurisdiction that qualifies as a Park-Deficient Community. 1. For the purposes of this section, the area within the jurisdiction that must qualify as a Park-Deficient Community will be that which is within a half mile radius of any point within the Qualifying Park Project. 2. The ratio of useable park space (in acres) per 1,000 residents within a half mile radius of the identified Qualifying Park Project site must be less than three. 0 3. Documentation to support this identification will be obtained by all applicants from = http://www.parkinfo.org/factfinder2011/grantee.html. N F. Infill-Supporting Park and Recreation Facility or Regional Blueprint Conformance: A $100 bonus will be awarded per bedroom for each Eligible Unit if the applicant can W demonstrate all Program funds will be utilized for a Qualifying Park Project located in an area within the jurisdiction that qualifies as infill-supportive with either (1) or (2) below: CD a o. 1. Grant funds will be spent to create or improve a Park and Recreational Facility that = supports at least one current or previously developed Infill Project. Support of an Infill Project can be evidenced by meeting at least one of the following criteria: E s U a. The Park and Recreational Facility to be created or improved is accessible within a a quarter mile radius from a current or previously developed Infill Project, OR b. The Park and Recreational Facility to be created or improved is accessible within a half mile walkable route from a current or previously developed Infill Project. For the purposes of this section, a "walkable route" is a route which after completion of the Qualifying Park Project shall be free of negative environmental conditions that deter pedestrian circulation. OR HRP Program Guidelines Page 13 of 22 Revised October 2015 Packet Pg. 213 5.E.c Section 106 Bonus Criteria Awards and Required Supporting Documentation -continued 2. The jurisdiction shall provide documentation that it has conformed applicable sections of its adopted General Plan, including the land-use and open space elements in particular, to the land-use provisions of the applicable adopted Regional Blueprint Plan, as may be verified by the Department. This documentation shall include all of the following, in a manner specific to the grant application for the proposed park improvements: a. copies of relevant text, diagrams, or maps from both the General Plan and the r Regional Blueprint Plan; 'Ln V b. a resolution from the elected body of the applicant jurisdiction describing the basis of the conformity between the two plans; and c. a letter or resolution from the Council of Governments (COG) having jurisdiction over the Regional Blueprint Plan attesting to the conformity of the General Plan with the adopted Regional Blueprint Plan. G. Regional Housing Needs Allocation (RHNA): A $50 bonus will be awarded per bedroom in units restricted to Low-Income Households and $75 bonus per bedroom in units a restricted to Very Low- or Extremely Low-Income households for jurisdictions that have m made significant progress in permitting the housing needed to meet the overall RHNA for w the current planning period for the jurisdiction. To qualify for the RHNA bonus, eligible d jurisdictions must have met a target percentage as established by the Department, of s their overall RHNA, by the end of the Designated Program Year. w a The target percentage will be prorated for the number of years completed in each jurisdiction's respective planning cycle. The applicant must meet the target percentage based on new housing units relative to their total RHNA. The Department will calculate each jurisdiction's eligibility for the RHNA bonus award based on the overall number of building permits issued during the current planning period as a percentage of its total RHNA compared to the overall average of new housing units permitted within that county as a whole. For example, if a jurisdiction has met 70 percent of its total RHNA and the average RHNA production of all jurisdictions within that County including the unincorporated County area is 68 percent, that jurisdiction would be eligible for the RHNA bonus. The bonus will be applied to all Eligible Units. The Department will calculate a jurisdiction's eligibility for the RHNA bonus after the application has been received. HRP Program Guidelines Page 14 of 22 Revised October 2015 Packet Pg. 214 5.E.c IL Section 107 Award Calculation A. Based on the number of qualifying units and documented bonus award eligibility, eligible applicants may receive up to: 1 . $2,200 per bedroom in qualifying low-income units 2. $2,725 per bedroom in qualifying very low-income units Bonus Awards Per Bedroom Unit-Based Park-Based Other Qualifying Base New ELI Infill Disadvantaged Park Regional RHNA Unit Award per Construction Units Units Community Deficient Blueprint/ Progress' c bedroom Units Community Supporting Infill 0 Low income $500 $300 N/A $250 $500 $500 $100 $50 U Very-Low Income $750 $300 $250 $250 $500 $500 $100 $75 N d' tn !° *to be determined by the Department after application submittal _ B. There is no maximum award, however, if eligibility for funds exceeds the amount of funding 2 available in any round, the Department may reduce all grants proportionally or, in the event 0 the Program is undersubscribed, roll over unused funds to the next funding round. a. W w aD E U f6 Y Y Q HRP Program Guidelines Page 15 of 22 Revised October 2015 Packet Pg.215 Section 108 Eligible Use of Funds A. Grant funds shall be used for the costs of Park and Recreation Facility creation, development, or rehabilitation, including, but not limited to, the acquisition of land for the purposes of those activities consistent with the requirements set forth in Section 16727 of the Government Code. Program grant funds may be used for the following types of projects: 1 . Costs to construct, rehabilitate, or acquire capital assets, meaning: a. Physical property with an expected useful life of 15 years or more. b. Major maintenance, reconstruction, or demolition for purposes of reconstruction of facilities, and retrofitting work that is ordinarily done no more often than once every 5 to 15 years, or expenditures that continue or enhance the useful life of the capital asset. c. Equipment with an expected useful life of two years or more. a rL^ V 2. Costs incidental to but directly related to the construction or acquisition of a capital asset are allowable. _ PLEASE NOTE: QUALIFYING PARK PROJECTS ARE NOT REQUIRED TO BE TIED TO THE HOUSING UNITS USED TO QUALIFY FOR THE BASE GRANT AWARD. B. Program grant funds may not be used for administrative costs of persons employed by the grantee, such as grant administration, or for other costs not directly related to the 0 acquisition, rehabilitation or construction of a capital asset. a. C. A jurisdiction that receives funds under this Program may subcontract with an Eligible Subcontractor. The subcontract shall be subject to the approval of the Department and shall E provide for compliance with all the requirements of the Program. The subcontract shall not relieve the jurisdiction of its responsibilities under the Program. a D. Successful Program applicants will enter into a State Standard Agreement (Standard Agreement) for distribution of funds. Program grant funds must be spent within two years of the date of award announcement. E. No costs incurred prior to the execution date of the Standard Agreement may be charged to Program funds. After the contract has been executed by the State, eligible expenditures may be incurred and expended for the project(s) subject to the terms and conditions of the Standard Agreement. Requests for fund disbursements must be for at least 25 percent of the total grant amount awarded. HRP Program Guidelines Page 16 of 22 Revised October 2015 Packet Pg. 216 Section 109 Anticipated Application and Expenditure Timelines Note: sample timeline based on a 2015 program year Release NOFA, Program Guidelines and Application .....................October 2015 Applications Due.................................................................February 4, 2016 Awards Announced............................................... ......................June 2016 Standard Agreements..............................................August— September 2016 Requests for Fund Disbursement.............................................from August 2016 r Final Fund Disbursements *.......................................................April 30, 2018 c� Final Expenditure of Funds**.....................................................June 30, 2018 v x Final Reports***............................Within 60 days of End of Standard Agreement N to Final requests for funds may be in advance of anticipated expenditures. This would be considered an advance payment and must be supported with the "final'invoice based on actual expenditures in order to clear the advance payment of funds to the contractor(to show that everything that was advanced, was in fact spent, or .5 the final invoice which could be for less funds, would be accompanied by a check returning the unused funds to the Department.Any advanced funds not allowed, or used, must be returned to HCD, Cashiering Office within aa. 60 days of End of Standard Agreement = a: c m " Based on this example, while all Program funds must be requested by April 30, 2018 and expended no later E June 30, 2018, the qualifying park project is not required to be completed by that date. The grantee must, however, report on the anticipated completion date of the park project in its final report. a HRP Program Guidelines Page 17 of 22 Revised October 2015 Packet Pg.217 Attachment A Enabling Legislation islation CHAPTER 8. Housing-Related Parks Program [50700. - 50704.5.] ( Chapter-8 added b_y Stats. 2008, Ch. 641, Sec. 1. ) 50700. For the purposes of this chapter, the following terms have the following meanings, unless the context clearly requires otherwise: (a) "Designated time period" means the time period designated in the Notice of Funding Availability required under subdivision (b) of Section 50702. (b) "Disadvantaged community," for the purposes of this program, means an area within a city, county, or city and county that is composed solely of those census tracts designated by the United States Department of Housing and Urban Development as having at least 51 percent of its residents of low- or moderate-income levels, using the most recent United States Department of Census data available at the time of the Notice of Funding o Availability. x (c) "Infill project" means a residential or mixed-use residential project located within an �? urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses. For these purposes, a property is adjoining the side of a project site if the property is separated from the project site only by an improved public right-of-way. .5 (d) "Park and recreation facility" means a facility that provides benefits to the community 0 and includes, but is not limited to, places for organized team sports, outdoor recreation, and informal turf play; nonmotorized recreational trails; permanent play structures; _ landscaping; community gardens; places for passive recreation; multipurpose structures designed to meet the special recreational, educational, vocational, and social needs of youth, senior citizens, and other population groups; recreation areas created by the redesign and retrofit of urban freeways; community swim centers; regional recreational trails; and infrastructure and other improvements that support these facilities. a (e) "Parks deficient community" means a community that has less than three acres of usable parkland per 1,000 residents. (f) 'Regional blueprint plan" means a regional plan that implements statutory requirements intended to foster comprehensive planning, as defined in Section 65041.1 of, Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7 of, and Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of, the Government Code. The regional blueprint plan articulates regional consensus and performance outcomes on a more efficient land use pattern that supports improved mobility and reduces dependency on single-occupant vehicle trips; accommodates an adequate supply of housing for all income levels; reduces impacts on valuable farmland, natural resources, and air quality; includes the reduction of greenhouse gas emissions; increases water and energy conservation and efficiency; and promotes a prosperous economy and safe, healthy, t sustainable, and vibrant neighborhoods. HRP Program Guidelines Page 18 of 22 Revised October 2015 Packet Pg.218 5.E.c (g) "Urbanized area" means an incorporated city or an urbanized area or urban cluster as defined by the United States Census Bureau. For unincorporated areas outside of an urban area or urban cluster, the area shall be within a designated urban service area that is designated in the local general plan for urban development and is served by public sewer and water. (h) "Urban use" means any residential, commercial, industrial, public institutional, transit, transportation passenger facility, or retail use, or any combination of those uses. 50701. There is hereby established in state government the Housing-Related Parks Program, to be administered by the department, using funds allocated, upon appropriation, under subdivision (d) of Section 53545, for the purpose of providing grants for the creation, development, or rehabilitation of park and recreation facilities to cities, counties, and cities and counties based on the issuance of building permits for new housing units, or housing units substantially rehabilitated, acquired, or preserved with committed assistance from the city, county, or city and county, that are affordable to very low or low-income households. 50702. (a) To the extent that funds are available for this purpose, the department shall determine a base grant amount to be provided under this chapter to any city, county, or city and county that meets all of the following criteria: U x (1) On or before the end of the period covered by the Notice of Funding Availability required under subdivision (b), the jurisdiction has adopted a housing element that the department, pursuant to Section 65585 of the Government Code, has found to be in substantial compliance with the requirements of Article 10.6 (commencing with Section = 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code, and the jurisdiction submitted to the department the annual progress report required under Section 65400 of 5 the Government Code for the preceding 12-month calendar year. a. (2) The jurisdiction can document either of the following: _ w (A) The issuance of building permits for new housing units that are affordable to very low a or low-income households within the designated time period and that meet either of the E following criteria: o a (i) In the case of rental units, the development is subject to a regulatory agreement recorded against the property that obligates the owner to maintain rents on the restricted units at levels affordable to very low or low-income households for at least 55 years. (ii) In the case of ownership housing, units in the development are initially sold to households of very low or low income at an affordable housing cost. If public funds are used to achieve an affordable housing cost, then upon the sale of an assisted unit to a very low or low-income household, the public entity shall ensure the repayment of the public funds and reuse of those funds for affordable housing for a period of at least 20 years. The proposed mechanism for restrictions of ownership units shall be consistent with criteria established by the department and specified in the Notice of Funding Availability. (B) The issuance of a certificate of occupancy or other evidence of readiness for occupancy within the designated time period for units that meet the requirements of paragraph (2) of HRP Program Guidelines Page 19 of 22 Revised October 2015 Packet Pg.219 S.E.c subdivision (c) of Section 65583.1 of the Government Code, except that the city, county, or city and county may have committed assistance at any time during the projection period. (b) For each year that funds are available, the department shall issue a Notice of Funding Availability for building permits issued during the designated time period. The department shall accept applications at the close of the designated period. Grant amounts shall be based on a per-bedroom incentive for each unit restricted for very low and low-income households. For the purposes of this section, single-room occupancies and studio apartments shall be considered one-bedroom units. (c) If eligibility for funds exceeds the amount of funding available for the program, the department shall reduce all grants proportionally. 50703. (a) The department shall award bonus funds in addition to the base grant award for applicants that meet the requirements under Section 50702. The department shall determine the amount of the bonus funds to be awarded pursuant to this chapter. (b) The amount of the bonus funds to be awarded shall be established in the Notice of Funding Availability. r _ (c) Substantial bonus funds shall be awarded for any of the following: (1) Jurisdictions that demonstrate that grant funds will be spent to improve a park or 0 community recreational facility that will serve a disadvantaged community, as defined in subdivision (b) of Section 50700. N (2) Jurisdictions that demonstrate that grant funds will be spent to create a new park or N community recreational facility that will serve a disadvantaged community, as defined in subdivision (b) of Section 50700. (3) Jurisdictions that meet the definition of a park deficient community, as defined in subdivision (e) of Section 50700. a (4) Qualifying new housing units. (d) Additional bonus funds shall be awarded for any of the following: E U (1) Qualifying units that are affordable to extremely low income households. Y a (2) Qualifying units that are developed in infill projects. (3) Jurisdictions that have met or exceeded housing production thresholds established by the department, in consultation with the Department of Finance. (4) Those jurisdictions that can demonstrate that grant funds will be spent to create or improve a park or community recreational facility to support infill development, or development within a jurisdiction that has conformed its general plan to the regional blueprint, as determined by the council of governments. 50704. (a) (1) Except as authorized under paragraph (2), a city, county, or city and county shall not receive a grant unless it qualifies, based on building permits issued during the period designated in the Notice of Funding Availability, for a grant in an amount of seventy-five thousand dollars ($75,000) or more. HRP Program Guidelines Page 20 of 22 Revised October 2015 Packet Pg. 220 S.E.c (2) If a city, county, or city and county is not able to meet the minimum qualification amount under paragraph (1), it may delay application, combine the number of building permits issued during the designated period described in paragraph (1) with the number of building permits issued during one or more subsequent Notice of Funding Availability periods, and apply once it is able to meet the minimum qualification amount by using the combined amount of building permits issued. (b) Grants provided pursuant to this chapter shall be used for the costs of park and recreation facility creation, development, or rehabilitation, including, but not limited to, the acquisition of land for the purposes of those activities, consistent with the requirements set forth in Section 16727 of the Government Code. (c) Funds awarded pursuant to this chapter shall supplement, not supplant, other available funding. (d) A city, county, or city and county that receives funds under this chapter may subcontract through a recreation and park district formed under Chapter 4 (commencing with Section 5780) of Division 5 of the Public Resources Code, or a district formed pursuant to Section 5500 or 35100 of the Public Resources Code, for the creation or improvement of a park or recreational facility, or any nonprofit organization described in Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec. 501(c)(3)), that is exempt from taxation CD under Section 501(a) of that code (26 U.S.C. Sec. 501(a)), and that has among its a purposes the conservation of natural or cultural resources. x (Amended by Stats. 2012, Ch. 779, Sec. 5. Effective January 1, 2013.) N N d C a a c a� E U (0 r w+ Q HRP Program Guidelines Page 21 of 22 Revised October 2015 Packet Pg.22'1 -STATE OF CALIFORNIA-B SINES', CONSUMER SFR/ICFS AND HOUSING AGFNCY DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W.El Camino,Suite 500 O.Box 952053 ramento,CA 95833 .6)263-7411/FAX(916)263-7453 www.hcd.ca.gov October 26, 2015 MEMORANDUM FOR: Housing-Related Park Program Stakeholders Interested Parties FROM: L sa Bates, Deputy Director Division of Housing Policy Development SUBJECT: NOTICE OF FUNDING AVAILABILITY HOUSING-RELATED PARKS PROGRAM �o The Department of Housing and Community Development (Department) is pleased to announce the release of a Notice of Funding Availability (NOFA) for the 2015 funding round of the Housing-Related Parks (HRP) Program. The HRP Program is an innovative Program designed to reward local governments that approve housing for lower-income N households and are in compliance with State housing element law with grant funds to create or rehabilitate parks and/or recreational facilities. Approximately $30 million is o available for the 2015 funding round. z CL L Z The 2015 NOFA will award Program funds to eligible jurisdictions on a per-bedroom basis for each residential unit affordable to very low- and low-income households permitted E during the Designated Program Year (DPY) as defined below. In addition, units substantially rehabilitated, converted from market-rate to affordable (multifamily rental w r units only), and preserved with certificates of occupancy issued during the DPY are also a eligible to receive funding provided they meet the requirements of paragraph (2) of subdivision (c) of Section 65583.1 of the Government Code. Base and bonus fund award amounts per bedroom are set forth in the Program Guidelines, Sections 105 and 106. For detailed information, please see the Program Guidelines. The DPY 2015 NOFA includes all eligible units affordable to lower-income households permitted, substantially rehabilitated, converted and/or preserved during the designated time period of January 1, 2010 to December 31, 2015. Applicants that submitted an application for any prior funding round may apply for additional funding for DPY 2015 if there were additional eligible units that would have qualified but were not included in the previous funding round applications. Applicants, however, are not eligible to receive funding for the same units in more than one round of funding. Packet Pg. 222 HRP Program NOFA- 2015 FUNDING ROUND Page 2 Please note, the deadline for meeting Program threshold requirements as set forth in Section 102 of the Program Guidelines has been extended as detailed below. Please note, if applying for funds based on eligible units for multiple calendar years, required Annual Progress Reports must be submitted to the Department no later than the application due date, February 4, 2016, as established in this NOFA. Documentation of Housing Element Annual Progress Eligible Units Compliance Report Building permit/occupancy Housing element which has been Annual Progress Report documentation must fall adopted by the jurisdiction's governing submitted by application within the following date body and determined to be in substantial due date for the range detailed below compliance with State housing element corresponding calendar law pursuant to Government Code year(s) detailed below Section 65585 CY 2010 CY 2009 CY 2011 CY 2010 CY 2012 Housing element compliance CY 2011 0 CY 2013 as of December 31, 2015 CY 2012 x CY 2014 CY 2013 CY 2015 CY 2014 Housing element compliance will be for either the 4th or 5th cycle depending on the jurisdiction's 5m cycle housing element due date. To verify which planning period your jurisdiction is currently in, please see the z 5th cycle housing element update schedule on the Department's website at a http.//www.hcd.ca.gov/hpd/hrc/plan/he/housing-element-update-schedule.pdf. _ To verify housing element compliance and Annual Progress Report submittal status, please refer to the Department's website at http://www.hcd.ca.gov/hpd/hrpp/. �a Y Y Applications must be submitted using the application materials provided on the a Department's website at http://www.hcd.ca.gov/hpd/hrpp/. ** Final Application Filing Date ** bruary 4' 2016 (Thursday) by 5:00 p.m. II All applicants must submit one original hard copy application with all required attachments and one electronic copy of the application forms (in Excel format). Applications transmitted by e-mail or by facsimile will not be accepted. Applications must be received by the Department by 5:00 p.m. on the application due date. Post marked applications will not be accepted. The HRP Program's guidelines, application forms, workshop/webinar details, and related program information will be posted on the Department's website at: http://www.hcd.ca.gov/hpd/hrpp/. Packet Pg.223 HRP Program NOFA- 2015 FUNDING ROUND Page 3 If you are interested in receiving updated HRP Program information, including notice of the application release, please register for the HRP Program listsery on the Department's webpage at http://www.hcd.ca.gov/hcd-subscribe.html. If you have any questions, please contact your HRP Program Representative (see below). The Department looks forward to working with you on this program. Region Representative Contact Information Northern California/Bay Area Fidel Herrera 916.263.7441 fidel.herrera hcd.ca.go v Sacramento/Central Valley/ James Johnson 916.263.7426 Central Coast/Eastern Sierra james.iohnson@hcd.cg.gov Southern California Hilda Sousa 916.263.1784 hilda.sousa(cD.hcd.ca.gov r Program Manager o Jennifer Seeger 916.263-7421 / Jennifer.seeger(aD_hcd.ca.gov ti N JT O Z C O E t v to r Q Packet[P g.224