HomeMy WebLinkAboutR34-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco, Deputy Director/Director SUBJECT:
Housing & Community Development
June 24, 2002 OR I G If JAL
DATE:
2080 NORTH PERSffiNG A VENUE-
NEW HOUSE, INC.- COMMUNITY
~DEVELOPMENT AFFORDABLE
AND TRANSITIONAL HOUSING
AGREEMENT
SvnoDsis oCPrevious Commission/Council/Committee Action(s):
-------------------------------------------------------------------------------------------------
On June 6, 2002, the Redevelopment Committee recommended that this item be sent to the Community Development
Commission for approval.
On June 17, 2002, the Community Development Commission ratified the Redevelopment Committee's recommendation
and approved the action herein.
Recommended Motion(s):
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(Community DeveloDment Commission)
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR, OR ITS
DESIGNEE, TO EXECUTE THE COMMUNITY REDEVELOPMENT AFFORDABLE AND
TRANSITIONAL HOUSING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT
AGENCY AND NEW HOUSE, INC. REGARDING THE PROPERTY LOCATED AT 2080 NORTH
PERSHING A VENIJE, SAN BERNARDINO, CALIFORNIA.
MOTION:
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Contact Person(s):
Project Area(s)
Gary Van Osdel/Maggie Pacheco
Uptown
Phone:
663-1044
Ward(s):
2"'
Supporting Data Artached: 0 Staff Report 0Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter/Memo
Approx.
FUNDING REQUIREMENTS Amount: $ 74,000 Source: . New House, Inc.
Budget Authority:
SIGNATURE:
Pn~~
(;;"1'\.) Gary V an Osdel
Executive Director
Maggie che eputy Director/Director
Housing & Community Development
Commission/Council Notes:
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~o.l! e ~ 'J.OO~ - d-1-
P:\ClericalServiecsDcpt\StepbaoicIA l.CDC2002\7.lo4J22080J'enhins.doc
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COMMISSION MEETING AGENDA
Meeting Date: 07/01102
Agenda Item Number: ~
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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2080 Pershin2 Avenue-New Housin2, Inc. Acquisition and Rehabilitation
BACKGROUND:
New House, Inc. is a non-profit organization that provides transitional housing and counseling to
low-income men, women and children since 1993. In 1996/1997, the Agency assisted and
granted New House a $33,000 Community Development Block Grant under the Public Facility
Improvement category for the rehabilitation of their administrative facility located at 850 North
Arrowhead Avenue. The Agency also assisted New House with the rehabilitation costs for the
properties located at 840-860 North Arrowhead A venue at a cost of $46,000.
CURRENT ISSUE:
Because New House is not an approved HUD non-profit organization under HUD's Direct Sales
Program, New House, Inc. has requested the Agency's assistance in facilitating the acquisition of
the HUD property located at 2080 North Pershing Avenue (the "Property") for their use in
providing transitional housing to low income single parents. Their request does not require
financial assistance from the Agency. The Agency will acquire the property directly from HUD
and concurrently sell it to New House at the discounted price of $48,633 plus all escrow and
closing costs.
New House Inc. will provide one hundred (100%) of the resources to purchase, rehabilitate and
manage the Property. They plan on investing approximately $25,000 on rehabilitation costs
which the rehabilitation work will meet the City's housing code requirements. New House will
be required to own and maintain the Property pursuant to the attached Agreement and Regulatory
Agreement. The term of the Agreement is 55 years in accordance with redevelopment law.
ENVIRONMENTAL IMPACT:
The Project is categorically exempt under the California Environmental Quality Act (CEQA).
FISCAL IMPACT:
There is no fiscal Impact to the Agency as New House will provide all funds needed to complete
the acquisition, rehabilitation and management of the Project.
P:\ClericalScrvkcsDcpt\SICpIIanic\AjcndICDC1002\7.1.0220lKlPm/dns.ckK:
COMMISSION MEETING AGENDA
Meeting Date: 07/01/02
Agenda Item Number: ~'1
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RECOMMENDATION:
That the Community Developme Commission adopt the attached Resolution.
//
Maggie Pacheco, Deputy Directorillirector
Housing & Community Development
P:IClericalServiceaDoptlSleplIanie\AjeJldl\CDC2002\7-I-0220SI)Pcnhing.doc
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COMMISSION MEETING AGENDA
Meeting Date: 07/01/02
Agenda Item Number: fJ"I
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco, Deputy DirectorlDirector
Housing & Community Development
SUBJECT: 2080 NORTH PERSHING A VENUE-
NEW HOUSE, INC.- COMMUNITY
REDEVELOPMENT AFFORDABLE
AND TRANSITIONAL HOUSING
AGREEMENT
DATE:
June 24, 2002
Svnoosis of Previous Commission/Council/Committee Action(s):
On June 6, 2002, the Redevelopment Committee recommended that this item be sent to the Community Development
Commission for approval.
On June 17,2002, the Community Development Commission ratified the Redevelopment Committee's recommendation
and approved the action herein. E t d' t R rd t -;'-j -.--..--
n ere In 0 eco . ,., 1..
COllllcilir:mvDevCms Mtg: I 0
~: Ag~llda Item 1(34
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(Comm';-nitv DevelooJtAty e!o~ft'~llfrdiDl oj
MOTION:
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR, OR ITS
DESIGNEE, TO EXECUTE THE COMMUNITY REDEVELOPMENT AFFORDABLE AND
TRANSITIONAL HOUSING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT
AGENCY AND NEW HOUSE, INe. REGARDING THE PROPERTY LOCATED AT 2080 NORTH
PERSHING AVENUE, SAN BERNARDINO, CALIFORNIA.
Contact Person(s):
Project Area(s)
Gary Van OsdellMaggie Pacheco
Uptown
Phone:
663-1044
2nd
Ward(s):
Supporting Data Attached: Ii1I Staff Report Ii1IResolution(s) Ii1I Agreement(s)/Contract(s) Ii1I Map(s) Ii1I LetterlMemo
Approx.
FUNDING REQUIREMENTS Amount: $ 74,000 Source: New House, Inc.
Budget Authority:
N/
SIGNATURE:
'-)r}? (2, ~ ~.~
(~,,) Gary Van Osdel
Executive Director
Commission/Council Notes:
P:ICIcriell Savm OcptISlqlhacliI:\AJen<lIIICDC 200217.1-02 2010 Pmh..,.doe
COMMISSION MEETING AGENDA
Meeting Date: 07/01102 . JJ
Agenda Item Number: ~};/tJ 2---
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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2080 Pershin2 Avenue-New Housin2. Inc. Acquisition and Rehabilitation
BACKGROUND:
New House, Inc. is a non-profit organization that provides transitional housing and counseling to
low-income men, women and children since 1993. In 199611997, the Agency assisted and
granted New House a $33,000 Community Development Block Grant under the Public Facility
Improvement category for the rehabilitation of their administrative facility located at 850 North
Arrowhead A venue. The Agency also assisted New House with the rehabilitation costs for the
properties located at 840-860 North Arrowhead A venue at a cost ~f$46,000.
CURRENT ISSUE:
Because New House is not an approved HUD non-profit organization under HUD's Direct Sales
Program, New House, Inc. has requested the Agency's assistance in facilitating the acquisition of
the HUD property located at 2080 North Pershing Avenue (the "Property") for their use in
providing transitional housing to low income single parents. Their request does not require
financial assistance from the Agency. The Agency will acquire the property directly from HUD
and concurrently sell it to New House at the discounted price of $48,633 plus all escrow and
closing costs.
New House Inc. will provide one hundred (100%) of the resources to purchase, rehabilitate and
manage the P.roperty. They plan on investing approximately $25,000 on rehabilitation costs
which the rehabilitation work will meet the City's housing code requirements. New House will
be required to own and maintain the Property pursuant to the attached Agreement and Regulatory
Agreement. The term of the Agreement is 55 years in accordance with redevelopment law.
ENVIRONMENTAL IMPACT:
The Project is categorically exempt under the California Environmental Quality Act (CEQA).
FISCAL IMPACT:
There is no fiscal Impact to the Agency as New House will provide all funds needed to complete
the acquisition, rehabilitation and management of the Project.
P..\ClcrkaIScrv~0cpt\S~ZOO2\7.]-o210IOPcnhlnc.doe
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COMMISSION MEETING AGENDA
Meeting Date: 07/01/02
Agenda Item Number:
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RECOMMENDATION:
That the Community Developfile Commission adopt the attached Resolution.
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Maggie Pacheco, Deputy Director/Director
Housing & Community Development
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COMMISSION MEETING AGENDA
Meeting Date: 07101102
Agenda Item Number:
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RESOLUTION NO:
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
EXECUTIVE DIRECTOR, OR ITS DESIGNEE, TO EXECUTE THE
COMMUNITY REDEVELOPMENT AFFORDA:QLE AND TRANSITIONAL
HOUSING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT
AGENCY AND NEW HOUSE, INC. REGARDING THE PROPERTY
LOCATED AT 2080 NORTH PERSHING AVENUE, SAN BERNARDINO,
CALIFORNIA.
WHEREAS, New House Inc. is a California non-profit corporation (the "Participant"),
organized to provide counseling, rehabilitation and housing assistance to low income men,
women and children; and
WHEREAS, Participant has requested the Redevelopment Agency of the City of San
Bernardino (the "Agency") assistance in acquiring from the U.S. Department of Housing and
Urban Development (HUD), a single family unit located at 2080 North Pershing Avenue,
APN: 146-041-08, (the "Property") to provide affordable housing opportunities to low
income households; and
WHEREAS, Agency has agreed to acquire the Property from HUD on behalf of
Participant, and concurrently sell it to Participant at the 30% sales discount price (the
"Discounted Price"); and
WHEREAS, Participant has agreed to purchase the Property at the Discounted Price
and pay all associated costs of acquisition, such as closing costs, recording fees, title costs,
etc. and all rehabilitation costs associated with the Property; and
WHEREAS, Participant has demonstrated that it has the financial capability and
expertise to acquire, rehabilitate and manage the Property (the "Project"); and
WHEREAS, Participant agrees that the beneficiaries of its activities under the
Agreement will be for low income persons or households whose income do not exceed one
hundred and fifteen percent (115%) of median income for San Bernardino County, pursuant
to the agreement between the Agency and HUD, and Participant will execute and cause to be
recorded a Regulatory Agreement, (the "Covenant").
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NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
Section I. A detailed description of the Project is set forth in the Community
Redevelopment Affordable Transitional Housing Agreement (the "Agreement") by and
between the Agency and Participant, which is on file with the Agency Secretary.
Section 2. Subject to the terms and condition of the Agreement, Participant has
reserved the sum of not less than seventy four thousand dollars ($74,000) for acquisition and
rehabilitation of the Property.
Section 3. The Commission hereby finds and determin~s that the Project described in
the Community Redevelopment Affordable Transitional Housing Agreement requires no
further environmental assessment under the provisions of the California Environmental
Quality Act (CEQA) in view of the Project being Categorically exempt. The Agency
Executive Director or hisl her designee, is hereby authorized and directed to prepare the
appropriate forms of written notice of determinations of categorical exclusion for the Project
as provided in the CEQA regulations and as per this Section 3.
Section 4. The Commission hereby approves the form of the Agreement as
presented at the meeting at which time this Resolution is adopted. The Executive Director or
hislher designee is hereby directed and authorized to execute the Agreement on behalf of the
Agency, and to make any such technical and conforming changes as may be recommended by
Agency Special Counsel. The Executive Director or hislher designee, is further authorized
and directed to execute all ancillary and related documents and agreements necessary to
implement the Project.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
EXECUTIVE DIRECTOR, OR ITS DESIGNEE, TO EXECUTE THE
COMMUNITY REDEVELOPMENT AFFORDABLE AND TRANSITIONAL
HOUSING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT
AGENCY AND NEW HOUSE, INC. REGARDING THE PROPERTY
LOCATED AT 2080 NORTH PERSHING AVENUE, SAN BERNARDINO,
CALIFORNIA.
Section 5. This Resolution shall become effective immediately upon its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by Community
Development Commission of the City of San Bernardino at a
meeting
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thereof, held on
to wit:
day of
COMMISSION MEMBERS: AYES NAYS ABSTAIN ABSENT
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28 By:
Secretary
The foregoing Resolution is hereby approved this
,2002.
day of
Judith Valles, Chairperson
Community Development
Commission
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NEW HOUSE INC.
COMMUNITY REDEVELOPMENT AFFORDABLE TRANSITIONAL
HOUSING AGREEMENT
THIS COMMUNITY REDEVELOPMENT AFFORDABLE TRANSITIONAL
HOUSING AGREEMENT (the "Agreement") is dated as of_ , 2002, by and between the
Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the
"Agency"), and New House Inc., a California non-profit corporation (the "Participant") and is
entered into in light of the facts set forth in the following Recitals:
RECITALS
WHEREAS, Participant has the capacity to acquire and rehabilitate the HUD property
located at 2080 North Pershing Avenue, APN: 146-041-08, more specifically described in
C Exhibit "A" (the "Property"); and
WHEREAS, the Agency has agreed to acquire the Property on behalf of Participant from
HUD and concurrently sell it to Participant at the thirty percent (30%) sales discount (the
"Discounted Sales Price") pursuant to the provisions of the HUD Unit Purchase and Sales
Agreement ("Sale Agreement") attached hereto as Exhibit "B"; and
WHEREAS, Participant has agreed to accept the Discounted Sales Price and title to the
Property pursuant to the provisions of the Quitclaim Deed of a Public Agency ("Quitclaim
Deed") attached hereto as Exhibit "C") and pay all cost associated with the acquisition,
rehabilitation and management of the Property (the "Project"). The Participant further agrees
that the beneficiaries of its activities under this Agreement, are or will be for the benefit of
providing transitional housing to low and moderate income families or persons whose incomes
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do not exceed on hundred fifteen (1l5%) of the County Area Median Income ("Qualified
Residents"); and
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WHEREAS, the Agency deems it desirable to enter into this Agreement with Participant
in order to provide for the acquisition, rehabilitation, management and maintenance of the
Property pursuant to the provisions of this Agreement; and
WHEREAS, concurrently upon the acquisition by Participant of the Property, Participant
shall execute and cause to be recorded as an Affordable housing covenant which runs with the
land (the "Regulatory Agreement"), substantially in the form attached hereto as Exhibit "D" to
this Agreement and incorporated herein by this reference.
NOW THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE
RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE
AGENCY AND THE PARTICIPANT HEREBY AGREE AS FOLLOWS:
Section 1.
General Covenants and Oualifications
The terms and provisions of the Recitals of this Agreement are material to its
consideration and formation and are hereby incorporated into this Agreement. Participant has
fully reviewed all of the requirements and hereby certifies and warrants to the Agency that it has
the capacity to initiate and complete the acquisition, rehabilitation and management of the
Project. Participant hereby further warrants and covenants to the Agency that it has met the
following requirements:
1.1 Legal Status. Participant is organized under State law, as evidenced by its articles
of incorporation. No part of its net earnings inure to the benefit of any member, founder,
contributor, or individual. Participant has a tax exemption ruling from the Internal Revenue
Service (hereinafter referred to as the "IRS") under Section 501 (c) of the Internal Revenue Code
of 1986, as evidenced by a certificate from the IRS. Also, Participant has among its purposes the
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provision of safe, decent and affordable housing that is affordable to low and moderate-income
persons.
1.2 Capacity. The accounting books and records of the Participant conforms to the
financial accountability standards of Attachment F of Office of Management and Budget
Circular A-lID, as evidenced by a notarized statement by the organization's Certified Public
Accountant. Participant is qualified to carry out through the experience of key staff members
each of whom Participant hereby certifies to the Agency to be experienced and knowledgeable
regarding the Project.
1.3 Relationship with For-Profit Entities. Participant is not controlled nor receives
directions from individuals or entities seeking profit from the organization. Participant is free to
contract for goods and services from vendor( s) of its own choosing.
Section 2.
ACQuisition. Rehabilitation and Use of the Propertv
The Agency agrees to acquire the Property from the U.S. Department of Housing and
Urban Development (HUD) at a price of Forty Eight Thousand, Six Hundred Thirty-Three
Thousand dollars ($48,633) (this price includes the thirty percent (30%) discount provided to
Agency from HUD), plus pay all closing related to the Property (the "Discounted Sales Price")
with proceeds provided to the Agency from Participant. The Agency agrees to concurrently sell
the Property to the Participant at the Discounted Sales Price and the Participant agrees to
purchase the Property from the Agency. The Participant will improve the Property pursuant to
the General Scope of the Work, attached hereto as Exhibit "E", and incorporated herein by
reference (the "Work") prior to occupancy. The Participant shall use the Property to provide
affordable housing opportunities to low and moderate income households tenants whose incomes
do not exceed one hundred and fifteen percent (115%) of the San Bernardino County Area
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Median Income ("Qualified Residents") for a period of not less than fifty five (55) years as
provided for in the Affordable Housing and Regulatory Agreement (the "Regulatory
Agreement") attached hereto and incorporated herein as Exhibit "0". The Participant shall
provide all funds necessary for the successful rehabilitation of the Work on the Property which
said funds shall be not less than twenty five thousand dollars ($25,000). The Work shall
commence no later than sixty days (60) following the close of escrow between the Agency and
Participant. The Participant shall complete the Work no later than one hundred twenty days
(120) from the close of said escrow. An extension to complete the Work shall not be
unreasonably withheld by the Agency.
Section 3.
General Proiect ReQuirements
The parties hereby agree as follows:
3.1
ProoertY Standards. The Property upon completion shall, at a minimum, meet the
property maintenance standards of the federal (Housing Authority) Section 8 Housing Quality
Standards ("HQS") for the Term of 55 years period as per the provisions and the Regulatory
Agreement. Participant hereby agrees that the Agency or its designee shall be permitted regular
access to the Property in order to physically inspect the Property and ensure compliance with the
terms ofthis Agreement. Such inspections shall occur at least annually.
Section 4.
Maintenance ofthe ProDertv.
The Participant for itself, its successors and assigns hereby covenants and agrees that:
4.1 The areas of the Property which are subject to public view (including all paving,
walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair
and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any
time following the date of recordation of the Regulatory Agreement, there is an occurrence of an
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adverse condition on any area of a Property which is subject to public view in contravention of
the general maintenance standard described above, (a "Maintenance Deficiency"), then the
Agency shall notify the Participant in writing of the Maintenance Deficiency and give the
Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as
identified in the notice. In the event the Participant fails to cure or commence to cure the
Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing
following transmittal of written notice thereof to the Participant ten (10) days prior to the
scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists
and whether the Participant has failed to comply with the provisions of this Section. If upon the
conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists
and that there appears to be non-compliance with the general maintenance standard described
above, thereafter the Agency shall have the right to enter the Property and perform all acts
necessary to cure the Maintenance Deficiency, or to take other action at law or equity which the
Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum
expended by the Agency for the abatement of a Maintenance Deficiency on the Property
authorized by this Section shall become a lien on that Property. If the amount of the lien is not
paid within thirty (30) days after written demand for payment by the Agency to the Participant,
the Agency shall have the right to enforce the lien in the manner as provided in subsection (c),
below.
4.2 Graffiti, as this term is described in Government Code Section 38722, which has
been applied to any exterior surface of a structure or improvement on the Property which is
visible from any public right-of-way adjacent or contiguous to the Property, shall be removed by
the Participant by either painting over the evidence of such vandalism with a paint which has
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been color-matched to the surface on which the paint is applied, or graffiti may be removed with
solvents, detergents or water as appropriate. In the event that such graffiti may become visible
from an adjacent or contiguous public right-of-way but is not removed within 72 hours following
the time of such application, the Agency shall have the right to enter the applicable Property and
remove the graffiti without notice to the Participant. Any sum expended by the Agency for the
removal of such graffiti from the Property authorized by this Subsection (b) in an amount not to
exceed $250 per entry by the Agency, shall become a lien on the Property. If the amount of the
lien is not paid within thirty (30) days after written demand for payment by the Agency to the
Participant, the Agency shall have the right to enforce its lien in the manner as provided in
Subsection (c), below.
4.3 The parties hereto further mutually understand and agree that the rights conferred
upon the Agency under this Section expressly include the power to establish and enforce a lien or
other encumbrance against the Property, in the manner provided under Civil Code Section 2924,
for sums expended in upholding the maintenance standard required under subsection (a) or
subsection (b), including salaries and wages of the legal staff of the Office of City Attorney
and/or Agency Counsel as may be associated with the abatement of the Maintenance Deficiency
or removal of graffiti and the collection of the costs of the Agency in connection with such
action. The provisions of this Section 4, shall be a covenant running with the land and the
Property, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this
Section 4 shall be deemed to preclude the Participant from rehabilitating and operating the
Property, as long as the Participant complies with the applicable zoning and building regulations
of the City.
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Section 5.
Indemnification
The Participant shall indemnify and hold harmless the Agency and the City, their
departments, agencies, boards, commissions, elected officials, officers, attorneys, employees and
agents of the City and the Agency from and against any and all claims or liability arising from
Participant's actions under this Agreement or from the conduct of Participant's business or from
any activity, work, permitted or suffered by Participant. Participant shall further indemnify and
hold harmless the Agency and City, their departments, agencies, boards, commissions, elected
officials, officers, attorneys, employees and agents from and against imy and all claims arising
from any breach or default in the performance of any obligation of Participant under the terms of
this Agreement arising from any negligent or wrongful act or omission of the Participant or
Participant's agents, contractors, employees or invitees and from and against all costs, attorneys'
fees, expenses and liability incurred in the defense of any such claim or any action or proceeding
brought thereon. Participant's agreement to indemnify and hold the Agency and City as
enumerated above harmless shall extend to any claims or liabilities, including but not limited to
claims pertaining to environmental conditions, alleged construction defects, or other matters, that
may arise as a result of the Participant's acquisition and ownership of the Property and the
rehabilitation, improvement, occupancy and management of the Property. The costs, salary and
expenses of the city attorney and members of his office in enforcing the Agreement on behalf of
the Agency and the City of San Bernardino shall be considered as "attorneys feeff'for the purpose
of this section.
Section 6.
While not restricting or limiting the foregoing, during the
Insurance
term of this Agreement, the Participant shall maintain in effect policies of comprehensive public,
general and automobile liability insurance, in the amount of $1,000,000, per occurrence
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combined single limit, naming the Agency and the City of San Bernardino, their departments,
agencies, boards, commissions, elected officials, officers, attorneys, employees, and agents as
additionally insured. A certificate of insurance evidencing such coverage shall be provided to
the Mayor or her designee, with the added notation that the insurance policy shall not be
terminated or materially altered without 10 days prior written notice to the Agency and the City.
Section 7.
Breach and Termination.
7.1 Termination Without Default or Breach Prior to Transfer of Title in the Prooertv
to the Particioant. This Agreement may be terminated for the cOnvenience of either party who is
not then in default upon thirty (30) days notice provided that said parties have performed their
respective obligations contained in this Agreement.
7.2 Defaults and Breach - General. Failure or delay by either party to perform any
material term or provision of this Agreement shall constitute a default under this Agreement;
provided however, that if the party who is otherwise claimed to be in default by the other party
commences to cure, correct or remedy the alleged default within thirty (30) calendar days after
receipt of written notice specifying such default and shall diligently complete such cure,
correction or remedy, such party shall not be deemed to be in default hereunder.
The party which may claim that a default has occurred shall give written notice of default
to the party in default, specifying the alleged default. Delay in giving such notice shall not
constitute a waiver of any default nor shall it change the time of default; provided, however, the
injured party shall have no right to exercise any remedy for a default hereunder without
delivering the written default notice as specified herein.
Any failure to delay by a party in asserting any of its rights and remedies as to any default
shall not operate as a waiver of any default or of any rights or remedies associated with a default.
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Except with respect to rights and remedies expressly declared to be exclusive in this Agreement,
the rights and remedies of the parties are cumulative and the exercise by either party of one or
more of such rights or remedies shall not preclude the exercise by it, at the same or different
times, of any other rights or remedies for the same default or any other default by the other party.
In the event that a default of either party may remain uncured for more than thirty (30)
calendar days following written notice, as provided above, a "breach" shall be deemed to have
occurred. In the event of a breach, the party who is not in default shall be entitled to terminate
this Agreement and seek any appropriate remedy or damages by initiating legal proceedings, if
necessary.
7.3 In the event that either party brings an action to enforce any condition or
covenant, representation or warranty arising out of this Agreement, the prevailing party in such
action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by
the court in which a judgment is entered, as well as the costs of such suit. For the purposes of
this Section 7.3, the words "reasonable attorneys' fees" in the case of the Agency include the
salaries, costs and overhead of lawyer's employed in the Office of the City Attorney of the City
of San Bernardino, allocated on a hourly basis for the performance of any services rendered to
the Agency under this Agreement.
Section 8.
Enforcement of this Aereement
The Agency at its discretion may terminate this Agreement, in whole or in part, by giving
Participant thirty (30) calendar days written notice.
Section 9.
Any notice, demand, request, consent, approval or
Notice.
communication that either party desires or is required to give to the other party under this
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Agreement shall be in writing and shall be delivered to the appropriate party by personal service
or U.S. Mail at its address as follows:
Participant: New House, Inc.
850 North Arrowhead Avenue
San Bernardino, California 92401
Attn: Executive Director
Agency: Economic Development Agency
of the City of San Bernardino
Atto: Executive Director
201 North "E" Street, Suite 301
San Bernardino, California 92401
Section 1 O. Miscellaneous.
This Agreement is executed in three (3) duplicate originals, each of which is deemed to
be an original. This Agreement includes referenced Exhibits "A" through "E", which together
C with this Agreement constitute the entire understanding and agreement of the parties. No private
entity shall be deemed to be a third party beneficiary with respect to any provision of this
Agreement. This Agreement integrates all of the terms and conditions mentioned herein or
incidental hereto, and supersedes all negotiations or previous agreements among the parties or
their predecessors in interest with respect to all or any part of the subject matter hereof.
If any part or provision of this Agreement is in conflict or inconsistent with applicable
provisions of federal, state, or city laws, or is otherwise held to be invalid or unenforceable by
any court of competent jurisdiction, such part or provision shall be suspended and superseded by
such applicable law or regulations, and the remainder of this Agreement shall not be affected
thereby.
All waivers of the provisions of this Agreement must be in writing by the Executive
C Director of the Agency, or his or her designee, and the Participant, and all amendments thereto
must be in writing by the Executive Director of the Agency and the Participant, except that the
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Executive Director, or hislher designee, of the Agency may only agree to non-substantive, and
technical changes hereto provided said changes do not increase the Agency's financial obligation
under said Agreement, and with concurrence by Agency Counsel. Substantial changes to this
Agreement shall require the prior approval of the governing board of the Agency.
The date of this Agreement shall be the date when it shall have been signed by the
Executive Director of the Agency evidenced by the date shown next to the authorized signatures
of the Agency, below.
IN WITNESS HEREOF, the Agency and Participant have executed this Agreement as of
the date first hereinabove set forth.
AGENCY
Redevelopment Agency of the
City of San Bernardino
Date
By:
PARTICIPANT
New House Inc.
Date
By:
Title:
By:
Title:
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EXHIBIT "A"
LEGAL DESCRIPTION
LOT 14 FLORENCE HEIGHTS, AS PER MAP RECORDED IN BOOK 17 OF MAPS.
IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
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EXHIBIT "E"
GENERAL SCOPE OF WORK (the "WORK")
The rehabilitation Work ofthe Property includes, but is not limited to, landscaping,
fencing, removal, repair or replace doors, windows and screens with accessories, paint
interior and exterior of building, repair or replace plumbing and electrical systems, repair
or replace the roof, repair flooring, cabinets and other code 'deficiencies to comply with
City housing codes, and health and safety requirements.
In addition to the Work provided herein, the Participant shall be required to comply with
the rehabilitation and improvement standards of the Acquisition, Rehabilitation and
Resale (ARR) Program.
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EXHIBIT "Boo
2002
HUD UNIT PURCHASE AND SALE AGREEMENT
Property Address: 2080 North Pershinl! Avenue
(New House, Inc. Project)
HUD Designated Escrow Agent:
LJ_-
THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is
dated for identification purposes only, as of and is made and entered into by and
between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the
"Agency") and New House, INC., a California non-profit corporation (the "Participant"), with
reference to the following:
RECITALS
A. WHEREAS, the Agency and the Secretary of Housing and Urban Development
(the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition
Program a copy of which is attached hereto as Exhibit "A" (the "HUD Contract") regarding sale
by the Secretary to the Agency of that certain property commonly known as 2080 North
Pershing Avenue, San Bernardino, California (the "HUD Unit"). A legal description of the HUD
Unit is attached hereto as Exhibit "B"; and
B. WHEREAS, subject to the terms and conditions of that certain Community
Redevelopment Affordable Transitional Housing Agreement dated , 2002 (the
"Agreement"), by and between the Participant and the Agency, Agency desires to sell the HUD
Unit to the Participant and the Participant desires to purchase a specific HUD Unit from the
Agency as designated by the Participant pursuant to the Agreement at the close of the "HUD
Escrow" as set forth herein.
C. As used in this Agreement, the words "escrow agent" refer to the escrow
company designated by the Secretary of HUD whose name and address appear in the caption of
this Agreement.
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NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS SET
FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS:
1. Warranty of Authoritv bv Participant. The Participant warrants that it is a California
non-profit corporation under the laws of the State of California, and is authorized to execute this
Agreement and all of the documents and instruments contemplated hereby, including, without
limitation, supplemental escrow instructions and the Acceptance of Agency Quitclaim Deed; and
that this transaction has been approved by a resolution of its members. A certified copy of that
resolution which remains in effect, will be delivered to Agency before the close of the HUD
Escrow as set forth herein.
2. nesirmation of HUn Unit and Al!reement to Sell and to Purchase.
(a) The Participant hereby designates the HUD Unit for purchase as authorized under
Section 3(c) of the Agreement. . .
(b) Subject to the terms and conditions of the Agreement and this Agreement, the
Agency agrees to sell and the Participant agrees to purchase the HUD Unit.
3. Purchase Price.
(a) The "Purchase Price" for the HUD Unit is the same sum in cash or immediately
available funds in United States Currency as the discounted purchase price which the Agency has
agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit.
(b) The Purchase Price shall be payable by the Participant's delivery of the full
amount to the escrow holder in cash or by wire transfer of immediately available funds at least
one(l) business day before close of the HUD Escrow or by cashier's check during business hours
at least three(3) business days before the close the HUD Escrow.
(c) All of the Purchase Price will be provided by the Participant into established
HUD Escrows account authorized under the Agreement.
(d) Pending the time of the close of the HUD Escrow, the escrow agent shall hold
such funds as may be remitted under Section 3(c) for the order and account of the Participant, in
separate funds of the escrow agent at least two (2) business days before the close of the HUD
Escrow.
4. HUn Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees
to pay all of the costs of the escrow holder in the HUD Escrow including all amounts
charged to the account of the Secretary and the Agency. The escrow holder is hereby
instructed to collect such costs and charges from the Participant at the close of the
HUD Escrow.
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5. Conditions for the Benefit of the Al!encv. The obligation of the Agency to perform this
Agreement is subject to the satisfaction of the following conditions, which are for the Agency's
benefit only:
(a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary
execute said HUD Contract within fifteen( 15) days after the date hereof;
(b) that the Secretary perform under the HUD Contract and the title of the HUD Unit
actually be transferred from HUD to the Agency within forty-five(45) days after the date
hereof;
(c) the Agency shall have received, in form and substance satisfactory to the
Executive Director, a certificate evidencing the insurance required pursuant to Section_
of this Agreement;
(d) that the Participant has duly execute and deliver to the escrow holder, in
recordable form the Acceptance of the Participant of the Agency Quitclaim Deed and the
Regulatory Agreement;
(e) that the Participant is not otherwise in default under its other obligations to the
Agency under the Agreement.
The conditions set forth above are for the Agency's benefit only and the Executive
Director of the Agency (the "Executive Director") may waive all or any part of such rights by
written notice to the Participant and escrow holder. If any of said conditions are not satisfied
within the time provided, or within such longer time as may be allowed by the Executive
Director, the Agency may thereafter terminate this Agreement without any liability on the part of
the Agency by giving written notice of termination to the escrow holder, with a copy to the
Participant. Escrow holder shall thereupon, without further consent from the Participant, return
to each party the documents, if any, deposited by them.
6. Conditions for Participant's Benefit. The obligation of the Participant to perform this
Agreement is subject to the satisfaction of the following conditions, which are for the
Participant's benefit only:
(a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary
execute said HUD Contract within fifteen (15) days after the date hereof; and
(b) that the Secretary performs its obligations under the HUD Contract and the HUD
Unit actually transfers from HUD within forty-five(45) days after the date hereof.
The conditions set forth above are for the Participant's benefit only and the Participant
may waive all or any part of such rights by written notice to the Agency and the escrow holder.
If any said conditions are not satisfied within the time provided, or within such longer time as
may be allowed by the Participant, subject to the approval of the Secretary and the Agency, the
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Participant may thereafter terminate this Agreement without any liability on the part of the
Participant by giving written notice of termination to the escrow holder, with a copy to the
Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each
party the documents, if any, deposited by them.
7. Escrow. The transfer of the HUD Unit to the Participant shall be consummated through
an escrow established with the escrow agent engaged by the Secretary to handle the transfer of
the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a
schedule coordinated with the closing or the transfer of the HUD Unit between the Secretary and
the Agency under the HUD Contract. This Agreement shall constitute the escrow instructions to
the escrow holder of the Participant and the Agency with respect to the HUD Unit. The Agency
and the Participant agree to execute such additional and ministerial escrow instructions as may
be reasonably required by the escrow holder.
8. Term of Escrow. Escrow shall close concurrently with the Close of escrow under the
HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this
Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which
the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the
County of San Bernardino, California.
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9. Condition of Title. The Agency shall convey to the Participant by quitclaim deed all of
the right, title and interest in the HUD Unit which the Agency receives from the Secretary under
the HUD Contract. The form of the Agency Quitclaim Deed is attached hereto as Exhibit "C"
and incorporated herein by this reference.
10. Title Insurance. The Agency shall not be responsible for providing any title insurance
to the Participant in connection with the transfer of title in the HUD Unit to the Participant. Any
title insurance desired by the Participant shall be ordered and paid for by the Participant at its
sole cost and expense.
II. Prorations. All assessments, including improvement assessments which are available
for payment without interest or penalty for advance payment, taxes, rent, and ground rent, if any,
shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently
with the escrow under the HUD Contract, through which escrow such items will be prorated
between the Secretary and the Agency, the parties acknowledge and agree that the Participant
shall be charged for such prorations in precisely the same amount as the Agency is charged under
the HUD Contract.
12. Escrow Closinl!: Costs. The Participant shall pay all escrow closing costs of both parties,
including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the
Participant shall pay all closing costs and expenses charged to the Agency in the escrow by
which HUD transfers the HUD Unit to the Participant.
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13. Closinl!:. Within forty five (45) days following the date of this Agreement or such earlier
date as the Secretary may demand under the HUD Contract, the Participant shall cause the full
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amount of the Purchase Price, plus the escrow costs and related charges of the escrow holder, to
be delivered to the escrow holder in available funds. To the extent that the Purchase Price, plus
escrow costs, may exceed the amount of the grant funds available for disbursement to the
Participant under Section 3(c) from the Agency for the HUD Unit, the Participant shall be solely
responsible for paying for the difference between the Purchase Price and the amount of the
disbursement for the HUD Unit under Section 3(c) of this Agreement. At the Close of Escrow,
(a) the Agency shall deliver to the Participant through escrow, the Agency Quitclaim Deed
conveying the HUD Unit to the Participant, (b)the Participant shall deliver to the Agency
through escrow the acceptance of the Agency Quitclaim Deed, (c) the Agency and the
Participant shall each execute in recordable form the Regulatory Agreement and (d) the escrow
holder shall collect and pay the sums indicated for the transfer of the HUD Unit under the HUD
Contract and this Agreement and deliver such other documents to the parties in accordance with
the instructions of each of them.
At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed and
the Regulatory Agreement to be recorded in the Official Records of the County of San
Bernardino, California, and the escrow holder shall provide the Agency with a copy of both the
buyer's and the seller's escrow settlement statement with respect to the HUD Unit.
14. Condition of the BUD Unit. The Agency makes no representation or warranty to the
Participant or to any third party concerning the condition of the HUD Unit, including, without
limitation, mechanical systems, dry basement, foundation, structural, or compliance with code,
zoning or building requirements and the Agency will make no repairs to the BUD Unit either
before or after execution of this Agreement. The Participant understands that the Agency does
not guarantee or warrant that the HUD Unit is free of visible or hidden structural defect, termite
damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or
otherwise usable. Participant acknowledges responsibility for taking such action and conducting
such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that
the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit
in the same condition delivered to the Agency by the Secretary, in an "AS IS," "WHERE IS" and
"SUBJECT TO ALL FAULTS" condition.
15. Possession: Renairs. The Participant may not perform repairs nor take possession of the
HUD Unit until the HUD Escrow is Closed. At the close of the HUD Escrow, the Participant
shall take possession of the HUD Unit and promptly commence the work of rehabilitation as
required for the BUD Unit under the Agreement.
16. No Assil!:nment. The Participant and the Agency each agree that this Agreement shall be
binding upon their respective, heirs, executors, administrators, successors or assigns and is not
assignable by the Participant.
17. Notices. All notices, demands and requests which may be given by either party to the
other or to the escrow holder shall be in writing and shall be deemed to be given upon personal
delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt
requested, postage prepaid, addressed to the party to be notified at the address following the
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party's signature or if addressed to the escrow holder, at the address set forth in the supplemental
escrow instruments signed by the parties. Either party may designate by written notice to the
other party in the manner set forth in this Agreement another address for notice.
18. Miscellaneous Provisions.
19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless
evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to
enforce, any provision of this Agreement shall not be a waiver of any further breach of such
provision hereof. The waiver by either or both parties of the time for performing an act shall not
be a waiver of the time for performing any other act or acts required hereunder.
18.2 Modifications. No change or addition to this Agreement or any part hereof
shall be valid unless in writing and signed by each of the parties.
18.3 Governing Law. This Agreement shall be governed by California law.
18.4 Headings. The headings in this Agreement are for convenience only and shall
not be used to interpret this Agreement.
18.5 Further Acts. Each party agrees to take such further action and to execute and
deliver such further documents as may be necessary to carry out the purposes of the Agreement
with respect to the HUD Unit and this Agreement.
18.6 Attorneys'Fees. If either party incurs attorneys' fees to enforce this Agreement
or because of a breach of this Agreement by the other party, the prevailing party shall be entitled
to recover reasonable attorneys' fees as set by the court from the other party. For the purposes of
this Agreement, the phrase "reasonable attorney's fees" shall include without limitation the
salaries, overhead and benefits of the City Attorney for the City of San Bernardino and the
attorney's employed in that public office who are utilized in connection with any action required
or taken in connection with this Agreement.
18.7 No Real Estate Brokers Commission Payable By the Agency. The Agency
shall not be responsible for the payment of any real estate brokers commission or finders fee in
connection with the escrow or the transfer of the HUD Unit to the Participant.
18.8 Time. Time is of the essence with respect to this Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.
Date:
By:
P:lClerieal Sclvic:n 00pIISIephanielAsenda\7-1-02 Ne.... Hwoc IllC.l'un:llue and Sale ApmLdoc
AGENCY
Redevelopment Agency of the City
of San Bernardino
Executive Director
PARTICIPANT
New House Inc.,
a California non-profit corporation
By:
Its:
By:
Its:
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EXHIBIT "C"
RECORDING REQUESTED BY
Redevelopment Agency of the
City of San Bernardino
)
)
)
)
)
)
)
)
)
)
)
)
AND WHEN RECORDED MAIL
PROPERTY TAX BILL TO:
New House Inc.
850 North Arrowhead Avenue
San Bernardino, California 92401
(Space above line reserved for use by Recorder)
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
QUITCLAIM DEED OF A PUBLIC AGENCY
AND
COMMUNITY REDEVELOPMENT
AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING
ACQUISITION AND REHABILITATION, USE AND OCCUPANCY CONDITIONS,
COVENANT AND RESTRICTIONS
( 2080 NORTH PERSHING AVENUE)
PART A
THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND PURSUANT TO THE
COMMUNITY REDEVELOPMENT AFFORDABLE TRANSITIONAL HOUSING
AGREEMENT (the "Quitclaim Deed") transfers all of the right, title and interest of the
Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the Agency)
in certain real property situated at 2080 North Pershing Avenue, San Bernardino, California (the
"Property") to NEW HOUSE INC., a California non-profit corporation, (the "Participant"),
subject to the community redevelopment affordable housing conditions, covenants and
restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed, and
the Participant is the grantee.
For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby
quitclaims to the Participant, subject to the community redevelopment affordable housing
conditions, covenants and restrictions of this Quitclaim Deed, all of the right, title and interest of
the Agency in the Property, as more particularly described below;
SBEO/OOOIIDOC/4050-2
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(-- The Property--)
Lot 14 Florence Heights. as Der maD recorded in book 17 of
maDS. on file in the Official Records of the Office of the Recorder
of San Bernardino County.
PART B
The quitclaim of the Property by the Agency to the Participant is expressly subject to the
satisfaction of the following community redevelopment affordable housing conditions, covenants
and restrictions as arise under that certain Community Redevelopment Affordable Transitional
Housing Agreement, dated as of . (the" Agreement") by and between the Agency
and the Participant:
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I.
for a term of fifty-five (55) years (the "Affordaoility Period") beginning on the
date of recordation of this Quitclaim Deed, the Property shall be used, reserved,
sold, transferred, granted, conveyed or otherwise hypothecated for occupancy
only to a "person" or a "family" who is a "Qualified Resident". The words
"Qualified Resident" refer to any person or family whose adjusted gross income
during the twelve (12) months preceding the date of occupancy of the Property by
the Qualified Resident does not exceed the income qualification limits referenced
in the Agreement for a low-income person or family;
2.
during the Affordability Period, the Property may be used by the Participant as
rental housing; provided however that the Property shall be occupied as rental
housing to Qualified Residents and the amount of rent charges by the Participant
to such Qualified Resident shall not exceed the fair market rent; and
3.
the Property shall be subject to the following affordable housing redevelopment
covenant in perpetuity and the text which appears in this Quitclaim Deed shall be
incorporated into the text of each grant deed or other instrument which transfers
the Property to a successor in interest of the Participant:
"The grantee herein covenants by and for himself or herself, his or
her heirs, executors, administrators and assigns, and all persons
claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of
persons on account of race, color, creed, religion, sex, marital
status, age, handicap, national origin or ancestry in the sale,
transfer, use, occupancy, tenure or enjoyment of the land herein
conveyed, nor shall the grantee himself or herself or any person
claiming under or through him or her, establish or permit any such
practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of
any vendee in the land herein conveyed. The foregoing covenants
shall run with the land."
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PART C
During the Affordability Period under subparagraph I of PART B, the Agency hereby authorizes
the Participant to conduct the Project, as this tenn is defined in the Agreement, on the Property.
The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the
Property after the fifty-fifth (55th) anniversary following the date of recordation of this
Quitclaim Deed, unless such date is modified by a recorded instrument duly executed by the
Participant and the Agency as provided in the Agreement.
PART D
The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an
increase, improvement and preservation of the community's supply oflow- and moderate-income
housing. The transfer of the Property by the Agency to the Paiticipant for this purpose and the
recordation of this Quitclaim Deed is authorized by Health and Safety Code Sections 33334.2
and 33334.3, and other applicable law and actions of the Agency, including without limitation,
the Agreement.
PARTE
Upon the delivery of this Quitclaim Deed to the Participant, the community redevelopment
affordable housing conditions, covenants and restrictions as contained herein shall be covenants
and restrictions which affect the Property and shall run with the land and shall be enforceable by
either the Agency or by the City of San Bernardino, a municipal corporation, as provided by
Health and Safety Code Section 33334.3(1)(2) against the Participant and each successor in
interest or assignee of the Participant in the Property. No person other than either the City of San
Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this
Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property.
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THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized
signature of the Executive Director of the Agency.
Dated:
[NOTARY JURAT ATTACHED]
SBEO/OOOIIDOC/40S0-2
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AGENCY
Redevelopment Agency of the City of
San Bernardino, a body corporate and politic
By:
Executive Director
Page 4 of 5
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ACCEPTANCE OF QUITCLAIM DEED AND
COMMUNITY REDEVELOPMENT AFFORDABLE TRANSITIONAL HOUSING
AGREEMENT DATED JULY 1, 2002
The undersigned officers/members of New House Inc., a California non-profit
corporation (the "Participant"), hereby acknowledge the acceptance on behalf of the Participant
of the delivery of the instrument identified above as the "Quitclaim Deed of a Public Agency and
Community Redevelopment Affordable Transitional Housing Agreement (the "Quitclaim
Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San
Bernardino, subject to the conditions, covenants and restrictions contained in the Quitclaim
Deed.
The Participant hereby acknowledges and agrees that it accepts the Property in an "AS-
IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is
solely responsible for causing the Property to be improved aiidrehabilitated and reserved for
occupancy and use by Qualified Residents as set forth in the Agreement by and between the
Agency and Participant and the within instrument.
The Participant hereby further accepts and agrees to each of the community
redevelopment affordable housing use, improvement and occupancy conditions, covenants and
restrictions contained in the Quitclaim Deed which touch and concern the Property and are
community redevelopment covenants which run with the land.
PARTICIPANT
New House Inc., a California
non-profit corporation
Dated:
By
Its:
By:
Its:
[NOTARY JURAT ATTACHED]
SBEO/OOOIIDOC/4050-2
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EXHIBIT "D"
RECORDING REQUESTED BY AND )
WHEN RECORDED MAIL TO: )
)
REDEVELOPMENT AGENCY OF THE )
CITY OF SAN BERNARDINO )
201 North "E" Street, Suite 301 )
San Bernardino, California 9240 I )
ATTN: Housing Division )
(Space above line reserved for use by Recorder)
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
HOUSING REGULATORY AGREEMENT AND
.PROPERTY USE COVENANT ("Regulatory Agreement")
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(San Bernardino County Assessor
Parcel No. 146-041-08)
-- NEW HOUSE INC. --
THIS 2002 REGULATORY AGREEMENT AND PROPERTY USE COVENANT (the
"Covenant") is dated as of Julv L 2002, by and between the Redevelopment Agency of the City
of San Bernardino, a body corporate and politic (the "Agency") and New House Inc., a
California non-profit corporation (the "Participant"), with respect to the following facts set forth
in the RECITALS of this Covenant:
-- RECITALS --
L This Covenant affects the real property located at 2080 North Pershing Avenue.
San Bernardino, California (the "Site"). A legal description of the Site is attached herein as
Exhibit "A."
2. The Participant is the owner of the Site.
3. The Participant acquired the Site from the Agency pursuant to the terms and
conditions of an agreement entitled "Community Redevelopment Affordable Transitional
Housing Agreement" dated as of July 1, 2002 (the "Agreement") by and between the Participant
C and the Agency.
4. The Participant and the Agency have caused this Covenant to be recorded as a
covenant which affects the Site and which runs with the. land for the term set forth herein in order
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to implement certain provisions of the "City Program," with respect to the Site and the "Project",
as these terms are defined in the Agreement, and the Health and Safety Code Sections 33334.2
and 33334.3
THE PARTICIPANT AND THE AGENCY FOR THEMSELVES, AND THEIR
SUCCESSORS AND ASSIGNS, HEREBY COVENANT AND AGREE AS FOLLOWS:
Section I. Incomoration bv Reference of Agreement. The provisions of the
Agreement are hereby incorporated into this Covenant by this reference. A true and correct copy
of the Agreement is on file with the Agency Secretary as a public record, and interested persons
may inspect the Agreement during regular business hours of the Agency.
Unless the context or the usage of a particular defined term as used in this Covenant may
specifically require, the meaning of all defined terms as used in this Covenant shall have the
same meaning as set forth in the Agreement. . .
Section 2. Term of Covenant. Unless modified, this Covenant shall have a term
which ends on the fifty-five (55) year following the date of recordation of this Covenant. The
term of this Covenant is referred to herein as the "Affordability Period."
Section 3. Covenant Use of the Site. During the Affordability Period, the Site shall
be used or reserved for use and occupancy by Qualified Residents as the term is defined in the
Agreement (e.g. persons and households oflow and moderate income) in compliance with the
Agreement.
Section 4. Covenant--Business and Compliance Records. During the Affordability
Period of this Covenant the Participant shall establish and maintain certain business records in
accordance with the provisions of the Health and Safety Code Sections 33334.2 and 33334.3
which relate to the use of the Site for the affordable rental housing unit purposes by Qualified
Residents authorized under Section 3 of this Covenant. The Agency shall have the right to
annually inspect the Site and to review the Participants tenant records to insure compliance with
the Agreement and Covenant.
Section 5. Indemnity of Agency Bv the Participant. The Participant waives all
claims, suits, losses, damages, costs (including reasonable attorneys' fees) and demands,
administrative fees, penalties and fines imposed, connected there within and hereby agrees to
indemnify, defend and hold harmless the Agency, its officers, agents, and employees and each of
them from any and all claims, suits, losses, damages, costs (including reasonable attorneys' fees)
penalties, and fines imposed and demands including reasonable attorney's fees connected there
within, on account of personal injury, including death, or property damage, sustained by any
person or entity which in any way relates to the Site, including without limitation any claims or
matters relating to pre-existing conditions.
Section 6. Covenant Against Unlawful Discrimination. No person shall, on the
grounds of race, sex, familial status, creed, color, religion, family status, or national origin, be
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excluded from participating in or be refused the benefits of or otherwise subjected to
discrimination in connection with the use of the Site.
Section 7. Maintenance Condition of the Site. The Participant for itself, its
successors and assigns hereby covenants and agrees that:
(a) The exterior areas of the Site which are subject to public view (e.g.: all
improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good
repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that
at any time during the period oftime as provided in Section 2 of this Covenant, there is an
occurrence of an adverse condition on any area of the Site which is subject to public view in
contravention of the general maintenance standard described above, (a "Maintenance
Deficiency") then the Agency shall notify the Participant in writing of the Maintenance
Deficiency and give the Participant thirty (30) days from the date of such notice to cure the
Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiency"
include without limitation the following inadequate or non-confirming property maintenance
conditions and/or breaches of single family dwelling residential property use restrictions:
failure to properly maintain the windows, structural elements, and painted exterior
surface areas of the dwelling unit in a clean and presentable manner;
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failure to keep the front and side yard areas of the Site free of accumulated debris,
appliances, inoperable motor vehicles or motor vehicle parts, or free of storage oflumber,
building materials or equipment not regularly in use on the Site;
failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed
nine inches (9") in height, or failure to otherwise maintain the landscaping in a
reasonable condition free of wed and debris;
parking of any commercial motor vehicle in excess of 7,000 pounds gross weight
anywhere on the Site, or the parking of motor vehicles, boats, camper shells, trailers,
recreational vehicles and the like in any side yard or on any other parts of the Site which
are not covered by a paved and impermeable surface;
the use of the garage area of the dwelling unit for purposes other than the parking of
motor vehicles and the storage of personal possessions and mechanical equipment of
persons residing in the Site.
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In the event the Participant fails to cure or commence to cure the Maintenance Deficiency
within the time allowed, the Agency may thereafter conduct a public hearing following
transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of
such public hearing in order to verify whether a Maintenance Deficiency exists and whether the
Participant has failed to comply with the provision of this Section 8(a). If, upon the conclusion
of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that
there appears to be non-compliance with the general maintenance standard, as described above,
thereafter the Agency shall have the right to enter the Site (exterior areas only) and perform all
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acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the
Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum
expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this
Section 8(a) shall become a lien on the Site. If the amount of the lien is not paid within thirty
(30) days after written demand for payment by the Agency to the Participant, the Agency shall
have the right to enforce the lien in the manner as provided in Section 8( c).
(b) Graffiti, as this term is described in Government Code Section 38722, which has
been applied to any exterior surface of a structure or improvement on the Site which is visible
from any public right-of-way adjacent or contiguous to the Site, shall be removed by the
Participant by either painting over the evidence of such vandalism with a paint which has been
color-matched to the surface on which the paint is applied, or graffiti may be removed with
solvents, detergents or water as appropriate. In the event that such graffiti may become visible
from an adjacent or contiguous public right-of-way but is not removed within 72 hours following
the time of such application, the Agency shall have the right to enter tlie Site and remove the
graffiti without notice to the Participant. Any sum expended by the Agency for the removal of
such graffiti from the Site authorized by this Subsection (b) in an amount not to exceed $250.00
per entry by the Agency, shall become a lien on the Site. If the amount of the lien is not paid
within thirty (30) days after written demand for payment by the Agency to the Participant, the
Agency shall have the right to enforce its lien in the manner as provided in Subsection (c),
below.
(c) The parties hereto further mutually understand and agree that the rights conferred
upon the Agency under this Section expressly include the power to establish and enforce a lien or
other encumbrance against the Site, in the manner provided under Civil Code Section 2924, for
sums expended in upholding the maintenance standard required under subsection (a) or
subsection (b), including salaries and wages of the legal staff of the Office of City Attorney
and/or Agency Counsel as may be associated with the abatement of the Maintenance Deficiency
or removal of graffiti and the collection of the costs of the Agency in connection with such
action. The provisions of this Section, shall be a covenant running with the land and the Site,
and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section
shall be deemed to preclude the Participant from rehabilitating and operating the Project on the
Site, provided that such construction and improvement of the Project complies with the
applicable zoning and building regulations of the City.
Section 8. Notice. Defaults and Breach - General. Failure or delay by either party to
perform any material term or provision of this Covenant or the Agreement shall constitute a
default hereunder; provided however, that if the party who is otherwise claimed to be in default
by the other party commences to cure, correct or remedy the alleged default within thirty (30)
calendar days after receipt of written notice specifying such default and shall diligently complete
such cure, correction or remedy, such party shall not be deemed to be in default hereunder.
The party which may claim that a default has occurred shall give written notice of default
to the party in default, specifying the alleged default. Delay in giving such notice shall not
constitute a waiver of any default nor shall it change the time of default; provided, however, the
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injured party shall have no right to exercise any remedy for a default hereunder without
delivering the written default notice as specified herein.
Any failure or delay by a party in asserting any of its rights and remedies as to any
default shall not operate as a waiver of any default or of any rights or remedies associated with a
default. Except with respect to rights and remedies expressly declared to be exclusive in this
Covenant, the rights and remedies of the parties are cumulative and the exercise by either party
of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party.
In the event that a default of either party may remain uncured for more than thirty (30)
calendar days following written notice, as provided above, a "breach" shall be deemed to have
occurred. In the event of a breach, the party who is not in default shall be entitled to seek any
appropriate remedy or damages by initiating legal proceedings. . .
For the purposes of giving notice under any provision of this Covenant, the addresses to
which such notice shall be transmitted are as follows:
For Participant:
For Agency:
New House, Inc.
Atto: Executive Director
859 North Arrowhead Avenue
San Bernardino, CA 9240 I
Economic Development Agency
of the City of San Bernardino
Attn: Executive Director
201 North "E" Street, Suite 301
San Bernardino, CA 92401
If either party incurs attorneys' fees in order to enforce its rights under this Covenant
against the other party, the prevailing party shall be entitled to recover its reasonable attorneys'
fees as set by the court from the other party. For the purposes of this Covenant, the phrase
"reasonable attorneys' fees" shall include without limitation the salaries, overhead and benefits of
the City Attorney for the City of San Bernardino and the attorneys employed in that public office
who are utilized in connection with any action required or taken in connection with this
Covenant.
Section 9. Covenant Runs With the Land. The provisions of this Covenant shall be
covenants which run with the land and the Site for the Affordability Period. This Covenant is
expressly declared by the parties to be for the benefit of the Site and the redevelopment project
areas of the Agency.
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IN WITNESS HEREOF, the authorized officers of the parties have caused this Covenant
to be executed on the dates indicated below.
Dated:
[NOTARY JURAT ATTACHED]
Dated:
P:\CIeriQI ~ OqM\StepllIlIiMJeIIcS.I7.t.o1 NEW HOUSE INC. RqA&m~doc
PARTICIPANT
New House, Inc., a California
non-profit corporation
By:
By:
AGENCY
Redevelopment Agency of the
City of San Bernardino
By:
Gary Van Osdel
Executive Director
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EXHIBIT A
LEGAL DESCRIPTION
LOT 14 FLORENCE HEIGHTS, AS PER MAP RE<;ORDED IN BOOK 17 OF MAPS.
IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
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EXHIBIT "E"
GENERAL SCOPE OF WORK (the "WORK")
The rehabilitation Work of the Property includes, but is not limited to, landscaping,
fencing, removal, repair or replace doors, windows and screens with accessories, paint
interior and exterior of building, repair or replace plumbing and electrical systems, repair
or replace the roof, repair flooring, cabinets and other code defiCiencies to comply with
City housing codes, and health and safety requirements.
In addition to the Work provided herein, the Participant shall be required to comply with
the rehabilitation and improvement standards of the Acquisition, Rehabilitation and
Resale (ARR) Program.
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): fJ-l-O:l Item # 12-34 Resolution # c...OcJ:;)():).;) - d4
Vote: Ayes i - 'I Nays -e- Abstain er Absent &
Change to motion to amend original documents: -
Reso. # On Attachments: ~ Contract term: -
Note on Resolution of Attachment stored separately: --=
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY By:
NullNoid After: -
Date Sent to Mayor:
Date of Mayor's Signature:
Date of ClerklCDC Signature:
0.-3-0 ~
f\-3-od-
!\-3...() d-
Reso. Log Updated: ./'
Seal Impressed: ,../
Date Memo/Letter Sent for Signature: "E\)A; C::>GI1"<,/',^""
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached: L Date Returned; '1 ~ --() ;)
See Attached;
See Attached:
Request for Council Action & Staff Report Attached: Yes L
Updated Prior Resolutions (Other Than Below): Yes
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634): Yes
Updated CDC Personnel Folders (5557): Yes
Updated Traffic Folders (3985,8234,655,92-389); Yes
No By
No ~ By
No ,/ By
No + By
No _ By
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance Dev. Services
Police Public Services Water
EDA ,/
Finance
MIS
Others:
Notes:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: (Y\-(
Date: 1)- Ch) :d'
Rev ised 01112/01