HomeMy WebLinkAboutRS01-Economic Development Agency
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D E9E LOP MEN T D E PAR T M9N T
OF THE CITY OF SAN BERlWlDlBO
REOUEST FOR COIIUSSION/COUBCIL ACTION
From:
KENNETH J. HENDERSON
Executive Director
Subject:
SAN BERlWlDlBO
NEIGHBORHOOD
RESTORATION PROGRAM
Date:
October 30, 1991
SvnoDsis of Previous Commission/Council/Committee Action(s):
On September 3, 1991 the Community Development Commission approved the
deal points between the Development Department and Empire Bay, a
California Joint Venture and directed Agency Counsel to prepare the
appropriate Owner Participation Agreement.
On September 3, 1991 the Community Development Commission authorized
staff to advance to Empire Bay, a California Joint Venture, up to $1.1
million dollars of the $1.4 million dollar in Basic Assistance in order
to close various escrows related to the San Bernardino Neighborhood
Restoration Project.
Recommended Motion(s):
(Communitv Develo1Dent Commission)
MOTION:
That the Community Development Commission approve the Owner
Participation Agreement prepared by Department staff and approve
the Relocation Agreement in conformance with the Economic
Development Agency General Relocation Plan which is in compliance
with State Relocation Requirements and the Federal Uniform
Relocation Act.
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Admirlistrator
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Executive Dir ctor
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Contact Person(s):
Ken Henderson/Ed Flores
Phone:
5081
Project Area(s):
Central Citv (CC)
Ward(s) :
One (l)
Supporting Data Attached:
Staff ReDort: Aareement
FUNDING REQUIREMENTS:
Amount: $1.800.000.QQ Source: 20% Set-Aside Fund
Authority Need for $700,000.
Budget Authority: Prevo Auth. Given for $1.1 M
Commission/Council Notes:
KJH:ELF:1ag:2124J
COMMISSION MEETING AGENDA
Meeting Date: 11/04/1991
AGENDA ITEM NUMBER: R6-1
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DEVELOPMElIIT DEPARTMElIIT
OF THE CITY OF SAW BERlWlDIlIIO
STAFF REPORT
San Bernardino lIIeiRhborhood
Restoration PrORram
Empire Bay, a California Joint Venture, has proposed a neighborhood
revitalization strategy which includes as its primary component a
comprehensive housing development project which will provide homeownership
opportunities to very low, low and moderate income households.
On September 3, 1991, the Community Development Commission approved the
deal points agreed upon between the Development Department and Empire Bay
and directed Agency Counsel to prepare an appropriate Owner Participation
Agreement. The Commission also authorized staff to advance to Empire Bay,
up to $1.1 million dollars of the $1.4 million dollar in Basic Assistance
in order to close various escrows related to the San Bernardino
Neighborhood Restoration Project.
Department staff and Agency Special Counsel have continued to meet with
Empire Bay Principals and have negotiated the terms and conditions
reflected in the Owner Participation Agreement and Attachments "I" through
"X" in accordance with the following deal points previously approved by
Community Development Commission:
1. Basic assistance in the amount of $1.4 million dollars will be
provided to the project with the initial $1.1 million dollars to be
advanced to close escrows that were previously in place. An additional
$300,000 will be used to close additional escrows or will be
contributed to the project upon the developer obtaining construction
financing .
2. The developer will be obligated to obtain construction financing within
twelve (12) months from the date of the agreement.
3. The Development Department will provide $400,000 in silent second deeds
of trust on the properties to purchasers who would require such second
deed of trust to close the gap between the combined down payment and
the first mortgage financing.
4. The Development Department will agree to use its best faith effort to
consider condemnation, if necessary, but the developer will bear all
land acquisition costs, legal fees, appraisals and other related costs,
if the costs for land acquisition exceed the $1.4 million dollars of
the Basic Assistance.
KJH:ELF:lag:2l24J
COMMISSIOlll MEETIlIIG AGElIIDA
Meeting Date: 11/04/1991
AGElIIDA ITEM BOMBER: ~
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DEVELOl'lOOllT DBPAK:nm1rr STAFF REPORT
San Bernardino Beighborbood Restoration Project
October 30, 1991
Page Rumber -2-
5. The developer will be given the right of first refusal to undertake
similar developments on four (4) other contiguous blocks in the
vicinity of the project.
6. The Development Department will agree to use its best faith efforts to
assist the developer in obtaining the construction financing.
7. The Development Department will pay to the developer a six-percent (6%)
management fee. The management fee will be disbursed in pro-rata
increments when scheduled bench marks have been met by the developer.
The developer will be paid a project completion fee of three-percent
(3%) of the sum of all acquisition, demolition and construction costs.
The project completion fee will be paid on a pro-rata basis, followng
the close of escrow on each of the proposed one-hundred, eighteen (118)
units of housing.
8. The $1.4 million dollars of basic assistance provided by the
Development Department will be deemed to be repaid from the new tax
increment revenues generated from the project.
9. The developer will record affordability covenants running with the land
and adopt sales price controls as a result of receiving the $1.4
million dollars in Basic Assistance and an additional $400,000 in
assistance to finance the "Silent Second Deed of Trust" program.
The Relocation Plan submitted by Empire Bay is in compliance with State
Relocation Requirements and the Federal Uniform Relocation Act.
Staff recommends adoption of the form motion.
Director
KJH:ELF:lag:2l24J
COIRISSIOB MKBTIlIG AGEBDA
Reeting Date: 11/04/1991
AGElIDA ITER ImImER:
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DRAFT
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BLACKLINED CHANGES FROM DRAFT
OF 10/14/91
01DlBR PARTICIPATION AGRBBMDIT
by and between
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
and
EMPIRE BAY, A CALIFORNIA JOINT VENTURE
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0 TABLE OF CONTENTS
Section Paae No.
I. [5100] SUBJECT OF AGREEMENT . . . . . 1
A. [5101] Purpose of Agreement 1
B. [5102] The Redevelopment Plan . . 1
C. [5103] The site . . . . . . . . . . . . 1
D. [5104] Parties to the Agreement . . 2
1. [5105] The Agency . . . . . . . . . . . . 2
2. [5106] The Developer . . . . . . . . . 2
3. [5107] Prohibition Against Change in
OWnership, Management and Control
of the Developer . . . . . . 2
II. [5200] DISPOSITION OF THE SITE . 3
A. [5201] Purchase of Site . . . . 3
B. [5202] Agency Assistance . . . . . . 4
1- [5203] Basic Assistance . . . . . 4
2. [5204] Construction Financing . . 5
3. [5205] Permanent Financing . . . . 6
0 4. [5206] Second Trust Deeds . . . . . . . . . 6
5. [5207] Management Fee; Project Completion
Fee . . . . . . . . . 7
6. [5208] Relocation Guidelines . . . 11
III. [5300] DEVELOPMENT OF THE SITE . . . 11
A. [5301] Development of the Site
by the Developer . . . . . . . 11
1- [5302] Scope of the Development . 11
2. [5303] Design Concept Drawings . . 12
3. [5304] Construction Drawings and
Related Documents . . . . . 12
4. [5305] Cost of Construction . . . 12
5. [5306] Construction Schedule . . 12
6. [5307] Bodily Injury and Property
Damage Insurance . . . . 13
7. [5308] City and Other Governmental
Agency Permits . . . . 14
8. [5309] Rights of Access . . . . . . 14
9. [5310] Local, State and Federal Laws;
Prevailing Wages . . . . . 14
10. [5311] Anti-Discrimination During
Construction . . . . . . 14
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o Section
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B.
C.
D.
E.
F.
IV.
[5400]
A.
B.
C.
V.
A.
VI. [5600]
A.
B.
C.
D.
E.
[5312]
[5313]
[5314]
1.
2.
3.
4.
[5319]
[5320]
[5401]
[5402]
[5403]
[5500]
[5501]
[5601]
[5602]
[5603]
[5604]
[5605]
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Paae No.
Taxes, Assessments, Encumbrances
and Liens . . . . . . . . . . .
Prohibition Against Transfer of the
Site, the Buildings or Structures
Thereon and Assignment of Agreement
Mortgage, Deed of Trust, Sale and
Lease-Back Financing; Rights of
Holders . . . . . . . . . . . . . .
[5315]
No Encumbrances Except Mortgages,
Deeds of Trust, or Sale and
Lease-Back for Development . . .
Holder Not Obligated to Construct
Improvements . . . . . . . .
Notice of Default to Mortgagee
or Deed of Trust Holders;
Right to CUre . . . . . . . .
Failure of Holder to Complete
Improvements . . . . . . . .
[5316]
[5317]
[5318]
Right of the Agency to satisfy
Other Liens on the site After
Title Passes . . . .. ..
Certificate of Completion
.
USE OF THE SITE
. . . . . .
. . .
Uses . . . . . .
Rights of Access. ....
Effect of Violation of the Terms and
provisions of this Agreement After
Completion of Construction ...
. .
LOW AND MODERATE-INCOME LIMITATIONS
AND PROGRAM RESTRICTIONS. . . . . .
Program Restrictions
. . . .
GENERAL PROVISIONS . . . .
. . .
Notices, Demands and Communications
Among the Parties . . . . . . . . .
Conflicts of Interest;
Nonliability . . . . . . . . . . . .
Enforced Delay; Extension of Times
of Performance . . .
Inspection of Books and Records
Right of First Refusal .. . .
.
(ill
15
15
16
16
16
17
.
17
17
17
.
19
19
21
21
22
. .
22
23
23
23
23
24
24
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VII. [5700]
A.
B.
C.
D.
E.
F.
[5701]
[5702]
1.
2.
3.
[5706]
[5707]
[5708]
1.
2.
3.
4.
[5713]
1-
2.
3.
VIII. [5800]
A.
B.
IX.
X.
[5801]
[5802]
[5900]
[51000]
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Paae No.
DEFAULTS AND REMEDIES
26
. .
Defaults -- General . .
Legal Actions . . . . . . . .
. .
26
27
[5703]
[5704]
[5705]
Institution of Legal Actions
Applicable Law . . . . . . . . .
Acceptance of Service of Process
27
27
27
Rights and Remedies are cumulative
Inaction Not a Waiver of Default
Remedies and Rights of Termination
Prior to Payment of Basic
Assistance . . . . . . . . . .
.
27
27
28
[5709]
[5710]
[5711]
[5712]
Damages Prior to Conveyance
Specific Performance . . . .
Termination by the Developer
Termination by the Agency
.
28
28
28
29
Remedies of the Agency and the Developer
for Default After Use of Basic Assistance
and Prior to Completion of
Construction . . . . . . . . . . . 29
[5714]
[5715]
[5716]
29
30
Dam.ages ............
Action for Specific Performance
Entry and Acquisition of Title
in the Agency
.
30
SPECIAL PROVISIONS . . . . .
32
Submission of Documents to the Agency
for Approval . . . .. .. .
Successors in Interest . .
32
33
ENTIRE AGREEMENT, WAIVERS
.
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EXECUTION AND DATE OF AGREEMENT
. . .
33
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0 ATTACHMENT NO. 1 - SITE MAP
ATTACHMENT NO. 2 - LEGAL DESCRIPTION
ATTACHMENT NO. 3 - SCHEDULE OF PERFORMANCE
ATTACHMENT NO. 4 - SCOPE OF DEVELOPMENT
ATTACHMENT NO. 5 - CERTIFICATE OF COMPLETION
ATTACHMENT NO. 6 - RELOCATION AGREEMENT
ATTACHMENT NO. 7 - FOUR BLOCK DEVELOPMENT AREA
ATTACHMENT NO. 8 - RELOCATION GUIDELINES OF THE AGENCY
ATTACHMENT NO. 9 - TERMS, CONDITIONS AND LIMITATIONS OF
1990 SINGLE FAMILY MORTGAGE REVENUE BONDS
ATTACHMENT NO. 10 - SCHEDULE OF DISBURSEMENT O~ DEVEJ,OPJi;R FEES
ATTACHMENT NO. 11 - PROGRAM GUIDELJ,NES AND RESTRICT~Oti:$ (TO BE
A'l".l'ACHIW WHEN PROVED BY AGENCY)
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OWNER PARTICIPATION AGREEMENT
THIS AGREEMENT is entered into by and between the
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency")
and EMPIRE BAY, a California corporation (the "Developer"), and is
dated as of September 3, 1991. The Agency and the Developer hereby
agree as follows:
I.
[5100]
SUBJECT OF AGREEMENT
A.
[5101]
Puroose of Aareement
The purpose of this Agreement is to effectuate the
Redevelopment Plan for the Central City Redevelopment Project (the
"Project") by providing for the development of certain property
situated within the redevelopment project area known as the Central
City North project Area (the "Project Area") of the Project. That
certain real property to be developed pursuant to this Agreement
(the "site") is depicted on the "site Map", which is attached
hereto as Attachment No. 1 and incorporated herein by reference.
This Agreement is entered into for the purpose of developing the
Site and not for speculation in land holding. Completing the
development on the site pursuant to this Agreement is in the vital
and best interest of the City of San Bernardino, California (the
"city"), and the health, safety and welfare of its residents, and
in accord with the public purposes and provisions of applicable
state and local laws and requirements under which the Project has
been undertaken.
B.
[5102]
The RedeveloDment Plan
The Redevelopment Plan was approved and adopted by
Ordinance No. 440~ of the Mayor and Common Council of the city of
San Bernardino; said ordinance and the Redevelopment Plan as so
approved (the "Redevelopment Plan") are incorporated herein by
reference.
C.
[5103]
The site
The site is that certain real property designated on the
site Map (Attachment No.1) and described in the "Legal Description
of the Site", which is attached hereto as Attachment No.2 and is
incorporated herein by this reference. The site will be purchased
by the Developer in accordance with Section 200, ~ ~.
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D.
[5104]
Parties to the Aareement
1.
[5105]
The Aaencv
The Agency is a public body, corporate and politic,
exercising governmental functions and powers and organized and
existing under Chapter 2 of the community Redevelopment Law of the
state of California. The principal office of the Agency is located
at 201 North "E" street, Third Floor, San Bernardino, California
92401. "Agency", as used in this Agreement, includes the
Redevelopment Agency of the city of San Bernardino, and any
assignee of or successor to its rights, powers responsibilities.
2.
[5106]
The DeveloDer
The Developer is Empire Bay, a California corporation.
The shareholders of said corporation are or will be Bay Land and
Trading co., a California corporation, Dan Fauchier doing business
as the Fauchier Group, a sole proprietorship and Debra M. Sanson
doing business as ECAP, a sole proprietorship. The principal
office and mailing address of the Developer for purposes of this
Agreement is 985 Via Serana, upland, CA 91786.
3.
[5107]
Prohibition Aaainst Chanae in OWnershiD,
Manaaement and Control of the DeveloDer
The qualifications and identity of the Developer are of
particular concern to the City and the Agency. It is because of
those qualifications and identity that the Agency has entered into
this Agreement with the Developer. No voluntary or involuntary
successor in interest of the Developer shall acquire any rights or
powers under this Agreement except as expressly set forth herein.
The Developer shall not assign all or any part of this
Agreement or any rights hereunder without the prior written
approval of the Agency, which approval the Agency may grant,
withhold or deny at its discretion. In the event of such transfer
or assignment: (1) the assignee shall expressly assume the
obligations of the Developer pursuant to this Agreement in writing
satisfactory to the Agency; (2) the original Developer shall remain
fully responsible for the performance and shall be liable for the
obligations of the Developer pursuant to this Agreement.
In the absence of specific written agreement by the
Agency, no such transfer, assignment or approval by the Agency
shall be deemed to relieve the Developer or any other party from
any obligation under this Agreement.
All of the terms, covenants and conditions of this
Agreement shall be binding upon and shall inure to the benefit of
the Developer and the permitted successors and assigns of the
Developer. Whenever the term "Developer" is used herein, such term
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shall include any other permitted successors and assigns as herein
provided.
The restrictions of this section 107 shall terminate and
be of no further force and effect upon the issuance by the Agency
of a Certificate of Completion in the form attached hereto as
Attachment No. 5 as provided in section 320 upon completion of the
Developer Improvements described in section 302 of this Agreement.
II. [S200]
DISPOSITION OF THE SITE
A.
[S201]
Purchase of Site
The Developer (or such other entity as mutually agreed
upon by Agency and the Developer) shall purchase the site from the
current owners thereof, shall hold title to such properties and
shall manage and operate the properties consisting of single family
and multifamily dwelling units. The Developer currently has
binding contracts ("Purchase Agreements") to purchase the
properties described on Attachment No.7. The Agency hereby agrees
to reimburse the Developer for an amount not to exceed One Hundred
Thousand and 00/100 Dollars ($100,000.00) (the "Developer Equity
Contribution"), of which approximately Sixty six Thousand and
00/100 Dollars ($66,000.00) has been expended by the Developer as
of the date of the Agreement for escrow deposits, initial project
implementation and due diligence review of the site. In addition,
the Developer shall use best efforts to negotiate to purchase the
remaining portions of the site which are not subject to Purchase
Agreements. In the event that the Developer cannot reasonably
enter into agreements to purchase one or more parcels within the
Site, the Agency shall, but only upon the written request of the
Developer, use good faith and best efforts to acquire by other
means which may include an exercise of its power of eminent domain,
if deemed necessary by the Agency after undertaking the procedural
requirements of State law, and thereafter shall transfer any such
parcels acquired (the "Acquisition Parcels") to the Developer. The
Agency's financial obligation to assist in the land acquisition and
other project costs shall in no event exceed the amount of the
Basic Assistance as set forth in section 203. All land acquisition
costs in excess of the Basic Assistance amount, including legal,
appraisals, relocation and relocation consultants, whether incurred
as a result of negotiated purchase of parcels or through an
exercise of eminent domain, shall be the responsibility and
financial obligation of the Developer to be funded through the
proceeds of the Construction Financing. In the event the exercise
of the power of eminent domain is deemed warranted by the Agency
under the circumstances, the Agency shall not be required to
proceed in any manner until the Developer has provided the Agency
adequate cash deposits in the Agency's sole determination for the
payment of all acquisition costs, including legal, appraisals,
relocation and relocation consultants, in excess of the Basic Assistance.
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The Basic Assistance shall be disbursed by the Agency to
or for the benefit of the Developer at such times and in such
increments as the Developer may reasonably request so as to permit
Site acquisition, to pay building and other fees related to
improving the Site, to reimburse the Developer Equity contribution
for escrow deposits upon each close of escrow, as applicable, for
a parcel within the site and to reimburse the Developer for other
verifiable costs reasonably incurred by the Developer within the
total principal amount of the Developer Equity Contribution.
The Agency shall execute all assumption agreements as may
be required by any lender presently holding a mortgage on any
parcel within the site that is the subject of a Purchase Agreement
whereby the Agency will guaranty the repayment of such loan. Such
lenders include, but are not limited to, Long Beach Savings, Downey
Savings and Imperial Savings.
B.
[5202]
Aaencv Assistance
1.
[5203]
Basic Assistance
The Agency shall provide One Million Four Hundred
Thousand and 00/100 Dollars ($1,400,000.00) in assistance for the
acquisition and development of the Site (the "Basic Assistance").
Such Basic Assistance shall be made available for use in connection
with the purchase of parcels comprising the Site, as contemplated
by Section 201, and to pay building and other fees and actual
expenses related solely to the construction of improvements on the
Site if funds remain from the Basic Assistance after all parcels
comprising the site have been acquired by the Developer.
Upon each advance of a portion of the Basic Assistance to
acquire a parcel within the Site, the Developer shall execute and
record for the benefit of the Agency a second deed of trust equal
in principal to the allocable amount of the Basis Assistance needed
to acquire such parcel. Such second deed of trust shall be non-
interest bearing and shall be due and payable one (1) year from the
date of recordation of the second deed of trust for such parcel.
Such second deed of trust shall be non-recourse to the Developer
and any individual or entity comprising the Developer and shall
grant the Agency the right to foreclose against such parcel in the
event the allocable amount of the Basic Assistance has not been
repaid within such one-year period or the Construction Financing
has not been obtained subject to the granting of the six-month
extension by the Agency for the Developer to obtain the
Construction Financing as provided in Section 204. In the event
the Agency grants said six-month extension pursuant to section 204,
the Agency agrees not to initiate any foreclosure proceedings under
such second deeds of trust until the expiration of a time period
equal to eighteen (18) months from the date of execution of this
Agreement. Upon the Developer seeking to record a construction
deed of trust as to the site to evidence the Construction
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Financinq, the Aqency shall reconvey its interests in the second
deed of trust without cost to the Developer to thus allow the
Construction Financinq to proceed and to thereby allow the amount
of the Basic Assistance to remain in the project.
Upon acquisition by the Developer of title to each parcel
within the Site, the Developer shall manaqe such properties and
shall establish a separate account and maintain records indicatinq
the income derived from each parcel and the related expenses,
includinq taxes, insurance and principal and interest payments on
all first mortqaqe loans or other assumed loans recorded aqainst
such parcel. Any funds remaininq in such account upon recordation
of the construction deed of trust for the Construction Financinq
shall be applied solely towards project costs to have the effect of
reducinq the amount of the construction Financinq. In the event
the construction Financinq is not obtained and this Aqreement is
terminated as hereinafter provided, any funds remaininq in such
account either upon termination of this Aqreement by the Developer
or the Aqency or upon foreclosure of the Aqency's second deed of
trust shall immediately be remitted in full to the Aqency.
2.
[5204]
Construction Financina
The Aqency shall use best faith efforts to assist the
Developer in obtaininq the construction and acquisition financinq
(the "Construction Financinq") in an amount necessary to complete
the project as herein contemplated (the "Construction Funds").
The Developer shall be solely responsible to undertake all
processinq and submittal of applications and the initiation of
contacts with potential construction lenders on such terms and
conditions as the Developer may neqotiate. The Developer shall
submit written monthly status reports to the Aqency in sufficient
detail to demonstrate that the Developer is makinq substantial
efforts to cause such Construction Financinq to be made available
within twelve (12) months of the date of execution of this
Aqreement. Nothinq contained herein shall commit or be deemed to
commit the Aqency to obliqate any of the funds of the Aqency or to
pledge any assets or tax increment revenues of the Aqency to obtain
the Construction Financinq. The Aqency shall be obliqated merely
to cooperate with the Developer in providinq information and
attendinq meetinqs with respect to obtaininq a construction lender.
At any time prior to the expiration of twelve (12) months from the
date of execution of this Aqreement, if the Developer (i) has not
been able to obtain the Construction Financinq, (ii) is reasonably
of the opinion that such construction Financinq will not be
obtainable without a siqnificant chanqe in strategy, and (iii) has
otherwise complied with the terms and conditions of this Aqreement;
then the Developer and the Aqency Staff shall jointly prepare a
revised strategy for obtaininq the Construction Financinq and shall
submit such joint strategy to the Aqency for consideration. In the
event the Aqency has determined in its sole and reasonable
discretion prior to the expiration of the twelve-month period
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referred to above that the Developer has made substantial progress
in makinq efforts to obtain the construction Financinq and that it
is likely that the Developer will in fact obtain the Construction
Financinq and record a construction deed of trust aqainst the site
within eiqhteen (18) months of the date of execution of this
Aqreement, the Aqency may thereupon qrant the Developer a six (6)
month extension to the oriqinal twelve-month period which shall
terminate eiqhteen (18) months after the date of execution of this
Aqreement.
The construction Funds shall be used as follows:
a. An amount not to exceed $650,000 per phase as set
forth in the Relocation Aqreement shall be applied to meet the
Developer's obliqations to pay for the movinq of twenty-six (26)
existinq structures (the "Relocation Units") off the site pursuant
to that certain Relocation Aqreement to be entered into by and
between the Developer and Project Home Run, a California non-profit
corporation (the "Relocation Aqreement"), a copy of which.lL
substantially in the form as attached hereto as Attachment No.6;
and
b. the balance shall be used for acquisition of the
site for costs thereof in excess of the Basic Assistance includinq
costs associated with eminent domain, if at all, and related costs,
and for construction of improvements on the site and for the
payment of all costs related thereto.
3.
[5205]
Permanent Financina
The Aqency hereby aqrees to take such action as may be
necessary to cause the City of San Bernardino to commit mortqaqe
funds not in excess of $7,200,000.00, which comprise a portion of
the $18,840,000 city of San Bernardino, California, Sinqle Family
Mortqaqe Revenue Refundinq Bonds (GNMA Mortqaqe Backed Securities)
Series 1990A issued in May, 1990, to provide take-out financinq for
the purchase by eliqible persons of 65 median income units (100% or
less of median income adjusted for family size), Subject to all
terms and conditions for the use of such funds contained in the
applicable aqreements.
The relevant terms, conditions and limitations of said
Sinqle Family Mortqaqe Revenue Bond issue, as the same pertain to
the use of the mortqaqe loan proceeds thereof by the Developer, are
set forth on Attachment No.9.
4.
[5206]
Second Trust Deeds
The Aqency aqrees to make loans, secured by second trust
deeds, to purchasers who are of lower income (80% or less of median
income adjusted for family size) who seek to purchase townhomes to
be constructed on the site and purchasers who are of very low
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income (50t or less of median income adjusted for family size) who
seek to purchase the 26 relocated homes on the Project Home Run
sites. The aggregate amount of such loans shall not exceed
$400,000.00. The purpose of such loans will be to structure an
overall financing package for very low and lower income purchasers
so that the units will be purchased at affordable costs. The
Agency shall provide to the Developer the parameters of such second
trust deed program including the income limits, adjusted for family
size, that shall apply to the purchase of the townhomes to be built
on the site and the Relocation Units to be rehabilitated and sold
by Project Home Run. The Developer agrees to be bound by all
limitations to be established by the Agency as to income limits and
maximum sales price limits for both the townhomes on the site and
the Relocation Units to be sold by Project Home Run.
5.
[5207]
Manaaement Fee: proiect ComDletion Fee
The Developer shall be entitled to a Management Fee in a
fixed amount equal to $591,456 to be paid from the proceeds of the
Construction Financing upon each draw of such proceeds equal to six
percent (6t) of the amount disbursed from the Construction
Financing for acquisition, demolition and construction activities
and to be disbursed from the Construction Financing in the dollar
amounts and at the times as set forth in Attachment No. 10. It is
the intent of the parties that the entire amount of the llanagement
Fee shall be included as a line item and funded by the Construction
Financing. The Management Fee was determined based upon the
following anticipated project costs assuming that approximately 118
Units will be constructed upon the Site or such other number of
Units as may be finally approved for construction upon the site by
the City of San Bernardino:
Phase I escrow closings
city building permit fees
Payment of assumed loans
Phase I demolition and moving
Phase I construction
Phase II escrow closings
Phase II demolition and moving
Phase II construction
$1,200,000
395,000
1,300,000
70,000
2,948,000
967,000
30,000
2.947.000
$9,857,595
x 6t
TOTAL
Management Fee
$591,456
The Construction Financing shall provide that upon each
disbursement by the construction lender for acquisition, demolition
and construction activities in accordance with Attachment No~
the portion of the Management Fee shall be paid to the Developer
from such Construction Financing in the amounts and upon completion
c:J' of the milestones as so set forth on Attachment No.~ In the
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event either Phase 1 construction or Phase 2 construction is not
completed, the Developer shall be entitled to receive only that
portion of the Management Fee that has been disbursed in accordance
with the Construction Financing as of any date which the
construction lender has ceased making draws pursuant to the
Construction Financing.
The Developer shall also be entitled to a Project
Completion Fee in a fixed amount equal to $295,728 as an additional
three percent (3') of the sum of the total cost of all acquisition,
demolition and construction activities as may be incurred and paid
in connection with the construction of the approximately 118 Units.
The Project Completion Fee has been calculated in the same manner
as was the Management Fee, but based upon three percent (3') of
$9,857,595 to arrive at a project Completion Fee equal to $295,728.
It is the intent of the parties that the entire amount of the
Project Completion Fee shall be included as a line item and funded
by the Construction Financing. Provided that the entire amount of
the Project Completion Fee has been included as a line item within
the Construction Financing, the Developer shall be entitled to be
paid from the Construction Financing the proportionate amount of
the total projected Project Completion Fee upon close of escrow for
each Unit.
In the event the Project Completion Fee has not been
included as a line item to be funded by the Construction Financing,
the Project Completion Fee calculated in the aggregate amount as
described above shall be paid on a proportionate basis solely from
moneys that remain from the sale of each Unit in the manner as
provided below:
1. After the approximately 59 Units of phase one of the
project have been constructed by the Developer and the city has
issued certificates of occupancy for said Units, the Developer
shall undertake sales of these Units to eligible households. For
each Unit sold to an eligible household, the Developer shall be
paid a portion of its Project Completion Fee as determined in
Section 207 (ii) .
ii. After the issuance of certificates of occupancy by
the City for the approximately 59 Units of Phase I, the Developer
shall prepare a new pro forma estimating the costs and revenues for
completing the entire project. After reviewing the assumptions,
methodology and conclusions of this pro forma:
a. If the Agency Staff and the Developer mutually agree
that the pro forma shows there will be sufficient funds to complete
the approximately 118 Units of the entire project, repay the
Construction Financing, plus interest, and pay the Developer the
entire Project Completion Fee, then the portion of the Project
Completion Fee paid to the Developer for each Unit sold as per
Section 207 (i) shall be equal to one (1 ) divided by the actual
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number of units to be constructed in the total project times the
Project Completion Fee.
b. If the Agency Staff and the Developer mutually agree
that the pro forma shows there will not be sufficient funds to
complete the approximately 118 units of the entire project, repay
the construction Financing, plus interest, and pay the Developer
the entire Project Completion Fee, then the portion of the Project
Completion Fee paid to the Developer for each Unit sold as per
section 207(i) shall be equal to one (1) divided by the actual
number of Units to be constructed in the total project times the
estimated balance, if any, shown by the pro forma to be available
upon completion of the project and payment of all project related
costs.
c. If the Agency and the Developer cannot mutually
agree on the amount of the balance remaining after the payment of
all project related costs as shown by the pro forma prepared by the
Developer under this section 207(ii), then the Agency and the
Developer shall mutually agree upon a certified public accountant
to develop an independent pro forma. The Agency shall base the
Project Completion Fee paid to the Developer for each Unit sold as
per section 207(i) on the provisions of Sections 207(ii) (a) and
207(ii)(b) immediately above, using the balance, if any, estimated
by this independent pro forma to be available upon completion of
the project and payment of all project related costs. The cost of
such an independent certified public accountant will be borne
equally by the Agency and the Developer.
iii. After the approximately 59 Units of phase two of
the project have been constructed by the Developer and the City has
issued certificates of occupancy for said Units, the Developer
shall undertake sales of these Units to eligible households. For
each Unit sold to an eligible family the Developer shall be paid a
portion of its Project Completion Fee as determined in
section 207(iv) immediately following.
iv. After the issuance of certificates of occupancy by
the City for the approximately 59 Units of phase two, the Developer
shall prepare a new pro forma estimating the costs and revenues
anticipated for completing the project. After reviewing the
assumptions, methodology and conclusions of this pro forma:
a. If the Agency Staff and the Developer mutually agree
that the pro forma shows there will be sufficient funds to repay
the Construction Financing, plus interest, and pay the Developer
the entire outstanding balance of the Project Completion Fee, then
the Project Completion Fee paid to the Developer for each Unit sold
as per Section 207(iii) shall be one (1) divided by the actual
number of Units that are in fact constructed in the total project
times the balance of the Project Completion Fee still owing.
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b. If the Agency Staff and the Developer mutually agree
that the pro forma shows there will not be sufficient funds to
repay the Construction Financing, plus interest, and pay the
Developer the entire project Completion Fee, then the Project
Completion Fee paid to the Developer for each Unit sold as per
Section 207(iii) shall be one (1) divided by the actual number of
Units that are in fact constructed in the total project times the
estimated balance, if any, shown by the pro forma to be available
upon completion of the project and payment of all project related
costs.
c. If the Agency and the Developer cannot mutually
agree on the amount of the balance remaining after the payment of
all project related costs shown by the pro forma prepared by the
Developer under this Section 207 (iv), then the Agency and the
Developer shall mutually agree upon a certified public accountant
to develop an independent pro forma. The Agency shall base the
Project Completion Fee to be paid to the Developer for each Unit
sold as per Section 207(iii) on the provisions of
Sections 207 (iv) (a) and 207 (iv) (b) immediately above, using the
balance, if any, estimated by this independent pro forma to be
available upon completion of the project and payment of all project
related costs. The cost of such an independent certified public
accountant will be borne equally by the Agency and the Developer.
Whether the Project Completion Fee has been paid to the
Developer from the Construction Financing upon sale of the Units or
from the net sales proceeds upon sale of the Units, any amounts
that remain after the repayment of the Construction Financing, plus
interest, to the construction lender and the payment of the full
amount of the Project Completion Fee shall be funds of the Agency
and shall be remitted to the Agency. The Developer shall be
entitled to no further compensation pursuant to this Agreement or
otherwise, except for payment to the Developer of the Management
Fee and the Project Completion Fee calculated in the manner as
provided in this Section.
The Agency shall have no obligation whatsoever to pay
said three percent (3%> fee from any funds of the Agency, except
from the sources as provided above. All net proceeds remaining
after the Construction Financing repayment obligation for each Unit
and Relocation Unit have been satisfied upon the sale of each Unit
and upon sale of the Relocation Units pursuant to the Relocation
Agreement shall be held by the Agency in a special interest bearing
account for the purpose of satisfying the Agency's obligations
pursuant to this Section 207. All sales proceeds from the
Relocation Units shall be used to repay the Construction Financing
or deposited into such special interest bearing account, as
appropriate.
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6.
[5208]
Relocation Guidelines
The Developer acknowledges that it is acting as an agent
of the Agency for purposes of determining whether Relocation
Guidelines of the Agency (Attachment NO.8) must be followed and
the manner in which they apply. The Developer agrees that either
directly or through a subcontractor functioning as a relocation
consultant to the Developer or such other entity undertaking
relocation activities on behalf of the Developer, all applicable
state and federal relocation guidelines and requirements will be
followed for any relocation of tenants from the Site. Relocation
obligations to tenants shall be paid by the Developer or the
Construction Financing and not by the Agency except to the extent
that the full amount of the Basic Assistance has not been drawn by
the Developer. After such time as the Basic Assistance has been
fully drawn by the Developer, the Developer shall hold harmless and
indemnify the Agency for any costs incurred by the Developer or on
behalf of the Developer for relocation activities and for other
claims for relocation assistance made against the Agency as a
result of such relocation activities of the Developer or a
subcontractor functioning as a relocation consultant to the
Developer or such other entity undertaking relocation activities on
behalf of the Developer.
III. [5300]
DEVELOPMENT OF THE SITE
A. [5301]
DeveloDment of the site bv the DeveloDer
1.
[5302]
ScoDe of DeveloDment
The site shall be developed as provided in the Scope of
Development, which is attached hereto as Attachment No. 4 and is
incorporated herein. The Developer Improvements shall consist of
approximately 65 three bedroom townhomes, and approximately 53 two
bedroom townhomes. In addition, the Developer agrees that
approximately 26 structures currently located on the site will be
moved to other in-fill lots within the City of San Bernardino and
rehabilitated and sold pursuant to a certain Relocation Agreement
between the Developer and project Home Run.
The development shall include any plans and
specifications submitted to the Agency or the city for approval,
and shall incorporate or demonstrate compliance with all applicable
mitigation measures as may be required by the City.
By the time set forth in the Schedule of Performance
(Attachment No.3) for completion of the Developer Improvements,
the Developer shall have completed construction of improvements on
the Site.
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2.
[5303]
Desian Concent Drawinas
By the respective times set forth therefor in the
Schedule of Performance (Attachment NO.3), the Developer shall
prepare and submit to the city for its approval Design Concept
Drawings and related documents containing the overall plan for
development of the site. The site shall be developed as
established in this Agreement and such documents except as changes
may be mutually agreed upon between the Developer and the Agency.
Any such changes shall be within the limitations of the Scope of
the Development (Attachment NO.4).
3.
[5304]
Construction
Documents
Drawinas
Related
and
By the time set forth therefor in the Schedule of
Performance (Attachment No.3), the Developer shall prepare and
submit to the city, construction drawings, landscape plans and
related documents for development of the site for architectural
review and written approval.
The landscaping and finished grading plans shall be
prepared by a professional landscape architect who may be the same
firm as the Developer's architect.
During the preparation of all drawings and plans, staff
of the Agency and the Developer shall hold regular progress
meetings to coordinate the preparation of, submission to, and
review of drawings, plans and related documents. The staff of the
Agency and the Developer shall communicate and consult informally
as frequently as is necessary to ensure that the formal submittal
of any documents to the Agency can receive prompt and speedy
consideration.
4.
[5305]
cost of Construction
Except as herein provided, and subject to the funding
obligations of the Agency hereunder, the cost of developing the
site and constructing all improvements thereon shall be controlled
by the Developer.
5.
[5306]
Construction Schedule
The Developer shall promptly begin and thereafter
diligently prosecute to completion the construction of the
Developer Improvements and the development of the site. The
Developer shall begin and complete all construction and development
within the times specified in the Schedule of Performance
(Attachment NO.3). The Developer shall strictly conform to all
time requirements and limitations set forth in this Agreement.
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6.
[5307]
Bodilv In;urv
Insurance
and ProDertv Damaae
The Developer shall defend, assume all responsibility for
and hold the Agency, the city, and their respective officers and
employees, harmless from all claims or suits for, and damages to,
property and injuries to persons, including accidental death
(including attorneys' fees and costs), which may be caused by any
of the Developer' activities under this Agreement, to the extent
the activities of the Developer are performed negligently,
constitute intentional misconduct, or are a breach of the
obligations of the Developer under this Agreement, whether such
activities or performance thereof be by the Developer or anyone
directly or indirectly employed or contracted with by the Developer
and whether such damage shall accrue or be discovered before or
after termination of this Agreement. The Developer shall take out
and maintain until (i) the issuance of a certificate of Completion
for all of the Developer Improvements pursuant to section 320 of
this Agreement (if an "occurrence" policy is obtained), or (ii) the
second anniversary of the completion of the Developer Improvements
(if a "claims made" policy is obtained), a comprehensive liability
policy in the amount of One Million Dollars ($1,000,000.00)
combined single limit policy, including contractual liability, as
shall protect the Developer, City and the Agency from claims for
such damages.
The Developer shall furnish a certificate of insurance
countersigned by an authorized agent of the insurance carrier on a
form of the insurance carrier setting forth the general provisions
of the insurance coverage. This countersigned certificate shall
name the City and the Agency and their respective officers, agents,
and employees as additional insureds under the policy. The
certificate by the insurance carrier shall contain a statement of
obligation on the part of the carrier to notify the City and the
Agency of any material change, cancellation or termination of the
coverage at least thirty (30) days in advance of the effective date
of any such material change, cancellation or termination. Coverage
provided hereunder by the Developer shall be primary insurance and
not contributing with any insurance maintained by the Agency or
city, and the policy shall contain such an endorsement. The
insurance policy or the certificate of insurance shall contain a
waiver of subrogation for the benefit of the City and the Agency.
The required certificate shall be furnished by the Developer at the
time set forth therefor in the Schedule of Performance (Attachment
NO.3).
The Developer shall also furnish or cause to be furnished
to the Agency evidence satiSfactory to the Agency that any
contractor with whom it has contracted for the performance of work
on the site or otherwise pursuant to this Agreement carries
workers' compensation insurance as required by law.
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7.
citv and Other Governmental Aaencv
Permits
[S308]
Before commencement of construction or development of any
buildinqs, structures or other works of improvement upon the Site,
the Developer shall, at its own expense, secure or cause to be
secured any and all permits which may be required by the City or
any other qovernmental aqency affected by such construction,
development or work.
8.
[S309]
Riahts of Access
For the purpose of assurinq compliance with this
Aqreement, representatives of the Aqency and the city shall have
the riqht of access to the Site, without charqes or fees, at normal
construction hours durinq the period of construction for the
purposes of this Aqreement includinq, but not limited to, the
inspection of the work beinq performed in constructinq the
improvements, so lonq as they comply with all safety rules and have
qiven prior notice to the Developer. Such representatives of the
Aqency or of the city shall be those who are so identified in
writinq by the Executive Director of the Aqency. The Aqency shall
hold the Developer harmless from any bodily injury or related
damaqes arisinq out of the activities of the Aqency and the City as
referred to in this section 309. This Section 309 shall not be
deemed to diminish or limit any riqhts which the city or the Aqency
may have by operation of law irrespective of this Aqreement.
9. [S310]
Local. State and Federal Laws: prevailina
Waaes
The Developer shall carry out the construction of the
improvements in conformity with all applicable laws, includinq all
applicable federal and state labor standards; provided, however,
the Developer and its contractors, successors, assiqns, transferees
and lessees are not waivinq their riqhts to contest any such laws,
rules or standards.
10. [S311]
Anti-Discrimination Durina Construction
The Developer, for itself and its successors and assiqns,
aqrees that in the construction of the improvements provided for in
this Aqreement, the Developer shall not discriminate aqainst any
employee or applicant for employment because of race, color, creed,
reliqion, aqe, sex, marital status, handicap, national oriqin or
ancestry.
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B.
Taxes. Assessments. Encumbrances and Liens
[5312]
The Developer shall pay when due all ad valorem taxes and
assessments on the site and levied subsequent to the acquisition of
title by the Developer. Prior to issuance of a Certificate of
Completion with respect to all of the Developer Improvements
pursuant to this Agreement, the Developer shall not place or allow
to be placed on the site or any part thereof any mortgage, trust
deed, encumbrance or lien other than as expressly allowed by this
Agreement. The Developer shall remove or have removed any levy or
attachment made on any of the site or any part thereof, or assure
the satisfaction thereof within a reasonable time but in any event
prior to a sale thereunder.
C.
Prohibition Aaainst Transfer of the site. the
Buildinas or structures Thereon and Assianment
of Aareement
[5313]
1. Prior to the issuance by the Agency of a Certificate
of Completion as to any building or structure, the Developer shall
not, except as permitted by this Agreement, without the prior
written approval of the Agency, make any total or partial sale,
transfer, conveyance, assignment or lease of the whole or any part
of the Site or of the buildings or structures on the Site. This
prohibition shall not be deemed to prevent (i) a transfer expressly
permitted pursuant to Section 107 of this Agreement, or (ii) the
granting of temporary or permanent easements or permits to
facilitate the development of the Site.
2. Upon obtaining a certificate of occupancy from the
City of San Bernardino for one or more townhomes (herein "Units")
constructed on the site, the Developer shall use its best efforts
to sell the Units and all Units thus sold shall be sold only in
accordance with the Budget attached hereto and the purchase price
limitations and income limits to be established by the Agency in
accordance with the provisions of Section 500.
3. The deed to purchasers of the Units and the
Relocation Units shall require that the Units be owner occupied by
persons living in the Units or the Relocation Units as their
principal residences and shall further require that such units
shall remain available at affordable housing costs to families of
very low income with respect to the Relocation Units and lower
income and moderate income with respect to the Units for a period
of not less than ten (10) years subject to the Agency permitting a
homeowner to prepay the pro rata share of the Basic Assistance
allocable to a particular Unit and, if applicable, the second trust
deeds as permitted under Section 206 hereof, in the manner as
authorized by Health and Safety Code Section 33334.3(f)(2).
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D.
Mortaaae. Deed of Trust. Sale and Lease-Back
Financina: Riahts of Holders
[5314]
1.
[5315]
No Encumbrances ExceDt Mortaaaes. Deeds
of Trust. or Sale and Lease-Back for
Develonment
Mortqaqes, deeds of trust and sales and lease-backs are
to be permitted before completion of the construction of the
improvements, but only for the purpose of securinq loans of funds
to be used for financinq the acquisition of the site, the
construction of improvements on the site, and any other purposes
necefilsary and appropriate in connection with development under this
Aqreement, and only if the instruments effectinq such mortqaqes,
deeds of trust and sales and lease-backs contain the provisions of
Sections 318 and 319 of this Aqreement. The Developer shall notify
the Aqency in advance of any mortqaqe, deed of trust or sale and
lease-back financinq, if the Developer proposes to enter into the
same before completion of the construction of the improvements on
the site. The words HmortqaqeH and "trust deed" as used
hereinafter shall include sale and lease-back. The Developer shall
not enter into any such conveyance for financinq without the prior
written approval of the Aqency, which approval the Aqency aqrees to
qive if any such conveyance for financinq is qiven to a bank,
savinqs and loan association, or other similar lendinq institution
and such lender shall be deemed approved unless rejected in writing
by the Aqency within fifteen (15) days after written notice thereof
is received by the Aqency. The form of approval by the Aqency
shall be a writinq which references this section 315, executed by
the Executive Director of the Aqency. Notwithstandinq the
foreqoinq, no such mortqaqe or trust deed shall be permitted to
encumber any portion of the Site prior to the obtaininq of the
Construction Financinq as contemplated by Section 205 hereinabove.
2.
[5316]
Holder Not Obliaated
III\Drovements
Construct
to
The holder of any mortqaqe or deed of trust authorized by
this Aqreement shall not be obliqated by the provisions of this
Aqreement to construct or complete the improvements or to quarantee
such construction or completion; nor shall any covenant or any
other provision in the deed for the Site be construed so as to
obliqate such holder. Nothinq in this Aqreement shall be deemed to
construe, permit or authorize any such holder to devote the site to
any uses or to construct any improvements thereon, other than those
uses or improvements provided for or authorized by the
Redevelopment Plan.
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3.
Notice of Default to Mortaaaee or Deed of
Trust Holders: Riaht to CUre
[5317]
with respect to any mortgage or deed of trust granted by
the Developer as provided herein, whenever the Agency shall deliver
any notice or demand to the Developer with respect to any breach or
default by the Developer in completion of construction of the
improvements, the Agency shall at the same time deliver to each
holder of record of any mortgage or deed of trust authorized by
this Agreement a copy of such notice or demand. Each such holder
shall (insofar as the rights of the Agency are concerned) have the
right, at its option, within thirty (30) days after the receipt of
the notice, to cure or remedy or commence to cure or remedy any
such default and to add the cost thereof to the mortgage debt and
the lien of its mortgage. Any such holder shall be entitled, upon
compliance with the requirements of section 320 of this Agreement,
to a Certificate of Completion (as therein defined).
4.
[5318]
Failure of
ImDrovements
ComD1ete
Holder
to
In any case where, thirty (30) days after default by the
Developer in completion of construction of improvements under this
Agreement, the holder of any mortgage or deed of trust creating a
lien or encumbrance upon the site or any part thereof has not
elected to construct the Developer Improvements, or if it has
elected to construct the Developer Improvements has not proceeded
diligently with construction, the Agency may purchase the or deed
of trust by payment to the holder of the amount of the unpaid
mortgage or deed of trust debt, including principal and interest
and all other sums secured by the mortgage or deed of trust.
E.
[5319]
Riaht of the Aaencv to satisfv Other Liens on
the site After Title Passes
Prior to the completion of construction of the Developer
Improvements, and after the Developer has had written notice and
has failed after a reasonable time, but in any event not less than
thirty (30) days, to challenge, cure, adequately bond against, or
satisfy any liens or encumbrances on the site which are not
otherwise permitted under this Agreement, the Agency shall have the
right but no obligation to satisfy any such liens or encumbrances.
F.
[5320]
Certificate of ComDletion
The Certificate of Completion and Release in the form
attached hereto as Attachment No. 5 shall be executed after
(i) official approval by the Agency, (ii) final inspection of the
Developer Improvements by an Agency representative,
(iii) verification from a city building official that all
conditions required by the City under applicable site plan, zoning
and building permit approval processes have been met, and (iv) all
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Units and Relocation units have been sold to homeowners who meet
the requirements of Article V hereof. Such certificate of
Completion shall be a conclusive determination of satisfactory
completion of the construction required by this Agreement upon the
site and compliance with the other requirements imposed by this
Agreement, and the certificate of Completion shall so state. The
Agency may also furnish, but shall not be obligated to so furnish,
the Developer with a certificate of Completion for portions of the
improvements upon the Site as they are properly completed and ready
to use if the Developer is not in default under this Agreement.
After recordation of such certificate of Completion, any party then
owning or thereafter purchasing, leasing or otherwise acquiring any
interest therein shall not (because of such ownership, purchase,
lease or acquisition), incur any obligation or liability under this
Agreement except that such party shall be bound by any covenants
contained in the Grant Deed, which by their terms survive
recordation of the certificate of Completion.
A Certificate of Completion of construction for the
entire improvement and development of the Site shall be in such
form as to permit it to be recorded in the Recorder's Office of
San Bernardino County.
If the Agency refuses or fails to furnish a Certificate
of Completion for the site, or part thereof, after written request
from the Developer, the Agency shall, within thirty (30) days of
written request therefor, provide the Developer with a written
statement of the reasons the Agency refused or failed to furnish a
certificate of Completion. The statement shall also contain the
Agency's opinion of the actions that the Developer must take to
obtain a Certificate of Completion. If the reason for such refusal
is confined to the immediate availability of specific items of
materials for landscaping, the Agency will issue its certificate of
Completion upon the posting of a bond by the Developer with the
Agency in an amount representing a fair value of the work not yet
completed. If the Agency shall have failed to provide such written
statement within said thirty (30) day period, the Developer shall
be deemed to have been provided with the certificate of Completion
as of the date following the expiration of said thirty-day period.
Such Certificate of Completion shall not constitute evidence of
compliance with or satisfaction of any obligation of the Developer
to any holder of any mortgage, or any insurer of a mortgage
securing money loaned to finance the improvements, or any part
thereof. Such certificate of Completion is not a notice of
completion as referred to in the California Civil Code,
Section 3093.
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IV..
[5400]
USE OF THE SITE
A.
[5401]
~
The Developer covenants and agrees for itself, its
successors, its assigns, and every successor-in-interest to the
Site or any part thereof, that during construction and thereafter,
the Developer and such successors and such assignees, shall devote
the site to the uses specified in the Redevelopment Plan as the
same exists as of the date of this Agreement, and the Developer and
the site shall be subject to all other requirements and limitations
of the Redevelopment Plan as the same may be amended from time-to-
time; provided, however, that either (i) such amendment or any
provision included within such amendment is required by law, or
(ii) if such amendment is discretionary on the part of the Agency
to adopt or not to adopt, then such amendment or any provision
included within such amendment must not have an adverse financial
impact upon the Developer. The limitation under (ii) above will be
of no further force and effect so as to restrict the Agency from
amending the Redevelopment Plan after such date as a certificate of
Completion has been granted or has been deemed to have been granted
pursuant to Section 320 hereof. The Developer further covenants
and warrants that the Developer shall develop on the site
approximately 65 three bedroom townhomes and approximately 53 two
bedroom townhomes. The Developer covenants to develop the site in
conformity with all applicable laws. The foregoing covenants shall
run with the land. The Developer and its successors-in-interest
shall be liable for compliance with the foregoing, only so long as
they own the Site or any portion thereof.
The Developer covenants by and for itself and any
successors in interest that there shall be no discrimination
against or segregation of any person or group of persons on account
of race, color, creed, religion, sex, marital status, age,
handicap, national origin or ancestry in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of the site, nor
shall the Developer itself or any person claiming under or through
it establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees of the Site. The foregoing covenants shall
run with the land. The Developer and its successors-in-interest
shall be liable for compliance with the foregoing, only so long as
they own the site or any portion thereof.
The Developer shall refrain from restricting the rental,
sale or lease of the Site on the basis of race, color, creed,
religion, sex, marital status, handicap, national origin or
ancestry of any person. All such deeds, leases or contracts,
including the conditions, covenants and restrictions ("CC&R's")
applicable to the units, including the establishment of the
homeowner's association and all grant deeds for the sale of units
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to-individual purchasers, (i) as may be executed by the Developer
or to which the Developer is a party, (ii) as may be executed
pursuant to the CC&R's by any homeowners association for the Units,
and (iii) as may be executed by any owner of a Unit, shall contain
or be subject to sUbstantially the following nondiscrimination or
non-segregation clauses; provided, however, that the Developer
shall have no duty or obligation for ensuring that documents
executed or entered into pursuant to (ii) or (iii) above contain
any such language and the Developer I s duty and obligation for
compliance with the provisions of this Section 401 is limited to
those documents which are executed by the Developer or to which the
Developer is a party:
1. In deeds: "The grantee herein covenants by and for
himself or herself, his or her heirs, executors, administrators and
assigns, and all persons claiming under or through them, that there
shall be no discrimination against or segregation of, any person or
group of persons on account of race, color, creed, religion, sex,
marital status, age, handicap, national origin or ancestry in the
sale, lease, sublease, transfer, use, occupancy, tenure or
enjoyment of the land herein conveyed, nor shall the grantee
himself or herself or any person claiming under or through him or
her, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees in the land herein conveyed. The foregoing
covenants shall run with the land."
2. In leases: "The lessee herein covenants by and for
himself or herself, his or her heirs, executors, administrators and
assigns, and all persons claiming under or through him or her, and
this lease is made and accepted upon and subject to the following
conditions:
"There shall be no discrimination against or
segregation of any person or group of persons on account of
race, color, creed, religion, sex, marital status, handicap,
age, ancestry or national origin in the leasing, subleasing,
transferring, use, occupancy, tenure or enjoyment of the
premises herein leased nor shall the lessee himself or
herself, or any person claiming under or through him or her,
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
sublessees, subtenants or vendees in the premises herein
leased."
3. In contracts: "There shall be no discrimination
against or segregation of, any person, or group of persons on
account of race, color, creed, religion, sex, marital status, age,
handicap, ancestry or national origin, in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the
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premises, nor shall the transferee himself or herself or any person
claiming under or through him or her, establish or permit any such
practice or practices of discrimination or seqregation with
reference to the selection, location, number, use or occupancy of
tenants, lessees, subtenants, sublessees or vendees of the
premises."
B.
[S402]
Riahts of Access
The Agency, for itself and for the City and other public
agencies, at their sole risk and expense, during the term of this
Agreement reserves the right to enter the site or any part thereof
at all reasonable times for the purpose of construction,
reconstruction, maintenance, repair or service of any public
improvements or public facilities located on the Site. Any such
entry shall be made only after reasonable notice to the Developer,
and the Agency shall indemnify and hold the Developer harmless from
any costs, claims, damages or liabilities pertaining to any entry.
This Section 402 shall not be deemed to diminish or limit any
rights which the city or the Agency may have by operation of law
irrespective of this Agreement.
C.
[5403]
Effect of Violation of
provisions of this Aareement
of Construction
the Terms and
After ComDletion
The covenants established in this Aqreement and the deeds
shall, without regard to technical classification and desiqnation,
be binding for the benefit and in, favor of the Agency, its
successors and assiqns, as to those covenants which are for its
benefit. The covenants contained in this Agreement shall remain in
effect until the issuance of a Certificate of Completion for all of
the Developer Improvements except for the following:
1. the covenants pertaining to use of the site as set
forth in Section 401 (but not including nondiscrimination) shall
remain in effect until the termination of the Redevelopment Plan;
2. the covenants against discrimination as set forth in
Section 401 shall remain in perpetuity.
Covenants contained in documents recorded pursuant to
this Agreement shall remain in effect as therein set forth.
The Agency is deemed the beneficiary of the terms and
provisions of this Agreement and of the covenants running with the
land, for and in its own rights and for the purposes of protecting
the interests of the community and other parties, public or
private, in whose favor and for whose benefit this Aqreement and
the covenants running with the land have been provided. The
Agreement and the covenants shall run in favor of the Agency,
without regard to whether the Agency has been, remains or is an
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owner of any land or interest therein in the site or in the Project
Area. The Agency shall have the right, if the Agreement or
covenants are breached, to exercise all rights and remedies, and to
maintain any actions or suits at law or in equity or other proper
proceedings to enforce the curing of such breaches to which it or
any other beneficiaries of this Agreement and covenants may be
entitled.
v.
[5500]
LOW AND MODERATE-INCOME LIMITATIONS AND
PROGRAM RESTRICTIONS
A.
[5501]
Proaram Restrictions
The Agency shall after the date of this Agreement
consider and adopt such guidelines and restrictions as it deems
necessary for compliance with the provisions contained within the
community Redevelopment Law and in particular those Sections
thereof that permit the use of the Agency's Low- and Moderate-
Income Housing Fund. Such i . es
b the A en s al ~ T e
eve oper a ow e ges a e source of funds to be ut l~zed to
fulfill the Agency's financial commitments under this Agreement
shall be tax increment revenues on deposit in the Agency'S Low- and
Moderate-Income Housing Fund. The Community Redevelopment Law, and
in particular Health and Safety Code Section 33334.3, requires the
Agency to impose certain limitations on the income of prospective
purchasers of the Units and the Relocation Units and the maximum
sales price limits of the Units and the Relocation Units based upon
affordability as may be determined by the Agency. The Developer
agrees to include within the content of the grant deed and in other
appropriate disclosure documents as may be reasonably necessary to
implement this Agreement for both the Relocation Units and the
Units, such provisions as are necessaryJ\in furtherance o~ the
guidelines and restrictions to be adopted by the Agency pursuant to
this Section as a means 0 c m in 0 said Health
and Safety Code Section 33334.3
isn eUntr
.0 eo
o sa
sha e erm ne y e Agency s a u ze a 33' factor for
calculating the percentage of adjusted income for each income level
that may be applied by each household for all housing related
expenses for the purchase and ownership of either a Relocated Unit
or a Unit. The income limitations and maximum sales price limits
shall apply to the Relocation Units and the approximately 118 Units
by virtue of the Agency granting the Basic Assistance.
Additionally, further restrictions may apply to those specific
homeowners purchasing Relocation Units or Units who have received
loans secured by a second trust deed from the Agency pursuant to
section 206 hereof.
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VI.-
[S600]
GENERAL PROVISIONS
A.
[S601]
Notices. Demands and communications Amona the
Parties
Written notices, demands and communications between the
Agency and the Developer shall be sufficiently given if delivered
by hand (and a receipt therefor is obtained or is refused to be
given) or dispatched by registered or certified mail, postage
prepaid, return receipt requested, to the principal offices of the
Agency, and the Developer. Such written notices, demands and
communications may be sent in the same manner to such other
addresses as such party may from time to time designate by mail as
provided in this section 601.
Any written notice, demand or communication shall be
deemed received immediately if delivered by hand and shall be
deemed received on the tenth day from the date it is postmarked if
delivered by registered or certified mail.
B.
[S602]
Conflicts of Interest: Nonliabilitv
No member, official or employee of the Agency shall have
any personal interest, direct or indirect, in this Agreement, nor
shall any member, official or employee participate in any decision
relating to the Agreement which affects his personal interests or
the interests of any corporation, partnership or association in
which he is directly or indirectly interested. No member, official
or employee of the Agency shall be personally liable to the
Developer or any successor-in-interest, in the event of any default
or breach by the Agency or for any amount which may become due-to
the Developer or successor or on any obligations under the terms of
this Agreement. The Developer represents and warrants that, except
for the Purchase Price, it has not paid or given, and shall not pay
or give, any third party any money or other consideration for
obtaining this Agreement.
C.
[S603]
Enforced Delav:
Performance
Extension of Times of
In addition to specific provisions of this Agreement,
performance by either party hereunder shall not be deemed to be in
default, and all performance and other dates specified in this
Agreement shall be extended, where delays or defaults are due to:
war; insurrection; strikes; lockouts; riots; floods; earthquakes;
fires; casualties; acts of God; acts of the public enemy;
epidemics; quarantine restrictions; freight embargoes; lack of
transportation; governmental restrictions or priority; litigation;
unusually severe weather; acts or omissions of another party; or
any other causes beyond the control or without the fault of the
party claiming an extension of time to perform. Notwithstanding
anything to the contrary in this Agreement, an extension of time
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for any such cause shall be for the period of the enforced delay
and shall commence to run from the time of the commencement of the
cause, if notice by the party claiming such extension is sent to
the other party within thirty (30) days of both of the fOllowing
events having occurred (i) the actual date of commencement of the
cause and (ii) the date when the Developer knows or has reason to
know and reasonably foresees or could have reasonably foreseen that
such cause would have a materially adverse affect on the ability of
the Developer to perform pursuant to this Agreement. Times of
performance under this Agreement may also be extended in writing by
the mutual agreement of the Agency and the Developer. Nothing
contained in this Section 603 shall grant or be deemed to grant the
Developer any extensions of time for repayment of the obligations
secured by the second deeds of trust recorded as to each parcel of
the site securing the repayment of the Basic Assistance in the
event the construction Financing has not been obtained as provided
in Section 203 and within the time periods permitted by
Section 204.
D.
[5604]
InsDection of Books and Records
The Agency has the right at all reasonable times to
inspect the books and records of the Developer pertaining to the
site for the purposes of this Agreement. Any such persons
examining the books and records of the Developer on behalf of the
Agency shall first be identified in writing by the Agency. The
Developer has the right at all reasonable times to inspect the
public records of the Agency pertaining to the Site as pertinent to
the purposes of the Agreement.
E.
[5605]
Riaht of First Refusal
1. The Agency does hereby grant to the Developer a
right of first refusal to develop the four (4) block area described
on Attachment No. 7 (herein "Development Area") in accordance with
the following terms:
a. A separate owner participation agreement shall be
approved and executed by the Developer and the Agency with respect
to each of the blocks within the Development Area;
b. The basic structure of the relationship between the
Agency and the Developer shall to the extent reasonably feasible be
based upon the public/private participation model established by
this Agreement;
c. Pursuant to such future owner participation
agreements to the extent reasonably feasible, the Developer shall
contribute adequate equity to commence the project and begin
acquisition of land. If funds are available, the Agency shall
provide Basic Assistance similar to that set forth in Section 203
hereof, it being recognized that the exact dollar amount of such
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assistance shall be negotiated in good faith between the Agency and
the Developer as reasonably necessary to accomplish the development
of that particular phase of the Development Area. The parties
acknowledge that the funding for each phase, and the availability
and structure of state and federal grants, shall be different and
shall be designed to accomplish the goals of each phase of the
development of the Development Area. The income limits and sale
price limitations for each phase shall be structured as set forth
in section 500 hereof;
d. The Developer shall have the right to assign the
right of first refusal to any entity of which at least a majority
interest is held by the persons who comprise the Developer on the
date of execution of this Agreement;
e. The right of first refusal set forth in this
section 605 shall expire five (5) years from the date of this
Agreement; and
f. The Agency and the Developer will exercise good
faith and use their best efforts to arrive at mutually acceptable
agreements for the blocks located within the Development Area.
g. The Agency may at any time after one (1) year from
and after the date that the Construction Financing has been
obtained as required by this Agreement and after another developer
has submitted a bona fide development proposal demonstrating that
such developer (i) has entered into option agreements or purchase
agreements for at least seventy-five percent (75t) of the land area
of a block located within the Development Area, (ii) has obtained
a written construction financing commitment, and (iii) has
requested the Agency in writing to provide financial assistance for
a development to occur on such block located within the Development
Area, submit a development request to the Developer for each block
within the Development Area for which another developer has
submitted a development proposal specifying the date by which the
Developer must acknowledge its intent to proceed with the
development thereof. Failure of the Developer to respond by the
date specified in such request by the Agency, or if the Developer
declines in writing to proceed as requested by the Agency, the
Agency shall thereupon provide a notice to the Developer stating
that its right of first refusal to develop such block has been
terminated pursuant to this Section. Upon the Developer submitting
its written intent to develop a particular block in accordance with
the preceding, the Developer shall have six (6) months from the
date that such written intent has been received by the Agency to
enter into an owner participation agreement with the Agency for the
particular block for which such notice of the right of first
refusal was applicable. In the event an owner participation
agreement has not been entered into by the Developer and the Agency
within said six-month period, the Developer's right of first
refusal for such block shall terminate and the Agency shall be
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bound only by the terms of an owner participation agreement, if
any, that may have been entered into by the Agency and the
Developer prior to said date; provided, however, that if no such
owner participation agreement shall have been entered into prior to
said date, the Agency shall not be bound by any provisions of this
Section 605 for the particular block for which a notice of the
right of first refusal was applicable after the expiration of such
six-month period.
h. So long as the Agency has not elected from time-to-
time to initiate the procedures pursuant to g. above for all or any
portion of the Development Area, the Agency shall be bound by the
provisions of this section 605 provided that an owner participation
agreement shall have been entered into by and between the Agency
and the Developer prior to the termination date of this right of
first refusal for all or a portion of the Development Area.
It is the mutual understanding of the parties hereto that
the maximum benefit to redevelopment of the Development Area will
occur if the commencement of future phases of redevelopment occur
as quickly as possible so that prospective purchasers of phase one
Units will be assured that areas surrounding phase one will be
similarly developed thus changing the character of surrounding
neighborhoods. Accordingly, the parties hereto will use their best
efforts to proceed with subsequent phases of the redevelopment
prior to commencement of the sale of Units in phase one.
VII. [5700]
DEFAULTS AND REMEDIES
A.
[5701]
Defaults -- General
Failure or delay by any party to perform any term or
provision of this Agreement constitutes a default under this
Agreement. The party who so fails or delays must immediately
commence to cure, correct, or remedy such failure or delay, and
shall complete such cure, correction or remedy with diligence. No
default under this Agreement shall be deemed to exist durinq those
periods of time that an extension for the time of performance is in
effect after written notice has been delivered in the manner as
provided in Section 603 hereof.
The injured party shall qive written notice of default to
the party in default, specifyinq the default complained of by the
injured party. Except as required to protect aqainst further
damaqes, and except for Sections 317 and 319 of this Aqreement, the
injured party may not institute proceedinqs against the party in
default until thirty (30) days after qiving such notice. Failure
or delay in qivinq such notice shall not constitute a waiver of any
default, nor shall it change the time of default.
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B.
[5702]
Leaal Actions
1. [5703]
Institution of Leaal Actions
In addition to any other rights or remedies and subject
to the restrictions in section 701, the Agency or the Developer may
institute legal action to cure, correct or remedy any default, to
recover damages for any default, or to obtain any other remedy
consistent with the purpose of this Agreement. Any legal actions
initiated pursuant to this Agreement or otherwise with respect to
its subject matter must be instituted in the Superior Court of the
County of San Bernardino, State of California, in an appropriate
municipal court in that county, or in the Federal District Court in
the Central District of California.
2.
Applicable Law
[5704]
The laws of the State of California shall govern the
interpretation and enforcement of this Agreement.
3.
Acceptance of Service of Process
[5705]
In the event that any legal action is commenced by the
Developer against the Agency, service of process on the Agency
shall made by personal service upon the Executive Director or in
such other manner as may be provided by law.
In the event that any legal action is commenced by any
party against the Developer or in such other manner as may be
provided by law, service of process on such party shall be made by
personal service upon the Developer, and shall be valid whether
made within or without the State of California.
C.
[5706]
Riahts and Remedies are CUmulative
Except as otherwise expressly stated in this Agreement,
the rights and remedies of the parties are cumulative, and the
exercise by any party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different
times, of any other rights or remedies for the same default or any
other default by any other party.
D.
Inaction Not a Waiver of Default
[5707]
Any failures or delays by any 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 such rights or remedies, or deprive
any party of its right to institute and maintain any actions or
proceedings which it may deem necessary to protect, assert or
enforce any such rights or remedies.
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E.
Remedies and Riahts of Termination Prior to
PaYment of Basic Assistance
[5708]
1.
[5709]
Damaaes Prior to Convevance
If any party defaults with regard to any of the
provisions of this Agreement prior to the recordation of a
construction deed of trust securing the Construction Financing, the
non-defaulting party shall serve written notice of such default
upon the other parties. If the default is not cured or commenced
to be cured by the defaulting party within thirty (30) days after
service of the notice of default (or within such other period as is
set forth herein), the defaulting party shall be liable to the
other party or parties for any damages caused by such default.
2.
[5710]
SDecific Performance
If any party defaults under any of the provisions of this
Agreement prior to the recordation of a construction deed of trust
securing the Construction Financing, a non-defaulting party may at
its election present notice of any default to the defaulting party,
and upon exercise of such election the non-defaulting party shall
serve written notice of such default upon the defaulting party
(with a copy to the other party). If the default is not cured by
the defaulting party within thirty (30) days of service of the
notice of default, or such other time limit as may be set forth
herein with respect to such default, any non-defaulting party at
its option may thereafter (but not before) commence an action for
specific performance of terms of this Agreement.
3. [5711]
Termination bv the DeveloDer
In the event that the Developer fails to obtain and
record a construction deed of trust securing the Construction
Financing within one (1) year of the effective date hereof, then
this Agreement may, at the option of the Developer and at any time
thereafter, be terminated by written notice thereof to the Agency.
As soon as practicable after such termination by either the Agency
or the Developer, the Agency shall purchase from the Developer the
Site, and all parcels thereof acquired by the Developer as herein
contemplated, for the following consideration:
a. Assumption of all loans which are then secured by
anyone or more parcels comprising the site; said loans are with
respect to parcels which were acquired either (i) subject to such
loans, or (ii) assumed by the Developer or the Agency.
Upon any such purchase of the site by the Agency from the
Developer, all amounts then on deposit in the special account
established by the Developer pursuant to section 203 shall be
immediately transferred to the Agency.
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4.
[5712]
Termination bv the Aaencv
In the event that prior to the date that Construction
Financing has been recorded as to the site:
a. The Developer (or any successor in interest) assigns
or attempts to assign the Agreement or any rights therein or in the
site in violation of this Agreement; or
b. There is a change in the ownership of the Developer
contrary to the provisions of section 107 hereof;
then this Agreement may at the option of the Agency, be terminated
by the Agency by written notice thereof to the Developer.
The Agency may also terminate this Agreement at its
option in the event that the Developer fails to obtain and record
a construction deed of trust securing the Construction Financing
within one (1) year of the effective date hereof and at any time
thereafter by the delivery of written notice thereof to the
Developer specifying that this Agreement shall be deemed terminated
as of delivery of such notice by the Agency; provided, however, in
accordance with section 203 hereof the Agency shall not initiate
any foreclosure proceedings during any extension period as may be
granted by the Agency pursuant to section 204 hereof. The Agency
purchase price under such termination shall be that amount
calculated pursuant to Section 711.
Nothing contained herein nor the exercise of any other
remedy granted to the Agency shall preclude the Agency from
foreclosing upon its deed of trust pursuant to the terms thereof as
to each parcel within the Site granted by the Developer to secure
that portion of the Basic Assistance allocated to each such parcel.
F.
[5713]
Remedies of the Aaencv and the DeveloDer for
Default After Use of Basic Assistance and
Prior to ComDletion of Construction
1.
[5714]
Damaaes
After any portion of the Basic Assistance has been
disbursed to the Developer by the Agency or otherwise is eXPended
by the Agency for the purposes contemplated by section 203
hereinabove, and prior to the recordation of a certificate of
Completion with respect to all of the Developer Improvements, if
either the Developer or the Agency defaults with regard to any of
the provisions of this Agreement, the non-defaulting party may at
its election present notice of any default to the defaulting party,
and upon exercise of such election the non-defaulting party shall
serve written notice of such default upon the defaulting party with
a copy to the remaining party. If the default is not cured by the
defaulting party within thirty (30) days after service of the
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notice of default, the defaulting party shall be liable to the
other for any damages caused by such default.
In the event the Developer sells a unit on the site, or
project Home Run sells a Relocation unit, to a purchaser whose
income is in excess of either the maximum income limit or the
affordable housing cost, or at a sales price in excess of the
purchase price limitations to be established by the Agency, or
otherwise fails to comply with the restrictions contained in
section 501 hereof, including failure to impose by grant deed the
provisions required by the guidelines and restrictions to be
adopted by the Agency pursuant to Section 501, the Developer shall
immediately reimburse the Agency, upon the Agency receiving
knowledge that either a Unit or a Relocation Unit was sold in a
manner that was in violation of the provisions of Section 501
hereof, a pro rata share of the Basic Assistance (e.g., the Basic
Assistance amount of $1,400,000 will be divided by the actual
number of Units (approximately 118) constructed or to be
constructed; thus if 118 units are constructed, $11,864 will be the
pro rata amount to be repaid to the Agency upon any sale of a Unit
or a Relocation unit that occurs in violation of section 501
hereof).
2.
[S715]
Action for SDecific Performance
If either the Developer or the Agency defaults under any
of the provisions of this Agreement after the acquisition of title
by Developer and prior to the recordation of a Certificate of
Completion for the improvements and development to be made thereon,
the non-defaulting party may at its election present notice of any
default to the defaulting party, and upon exercise of such election
the non-defaulting party shall serve written notice of such default
upon the defaulting party with a copy to the remaining party. If
the default is not commenced to be cured by the defaulting party
within thirty (30) days after service of the notice of default, the
nondefaulting party at its option may institute an action for
specific performance of the terms of this Agreement.
3.
[5716]
Entrv and Acauisition of Title in the
Aaencv
The Agency has the additional right, at its option, to
reenter and take possession of the Site, with all improvements
thereon, and to require the Developer to convey to the Agency the
Developer'S entire estate in the site, if after use or disbursement
of any portion of the Basic Assistance and prior to the issuance of
the Certificate of Completion pursuant to Section 320, the
Developer (or its successors in interest) shall:
a. Fail, within ninety (90) days after the date of
obtaining the construction Financing to commence construction on
the Site of the Developer Improvements in conformity with plans and
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specifications which are approved in the manner required by this
Agreement; or
b. Abandon or substantially suspend construction of the
Developer Improvements for a period of forty-five (45) days after
written notice thereof from the Agency; or
c. Fail to complete construction of the Developer
Improvements to the condition required for the issuance of a
Certificate of Completion pursuant to Section 320 within twenty-
four (24) months after the date of commencement of construction; or
d. Transfer or suffer any involuntary transfer of the
site in violation of this Agreement.
All time periods stated in this Article 7, Paragraphs 1
and 2 above and elsewhere in this Agreement are subject to
extension by force majeure as more particularly provided in
section 603 above.
Such right to enter and acquire the site shall be subject
to and be limited by and shall not defeat, render invalid or limit:
a. Any mortgage or deed of trust permitted by this
Agreement; or
b. Any rights or interests provided in this Agreement
for the protection of the holders of such mortgages or deed of
trust.
Upon the acquisition by the Agency of title to the site
as provided in this section 716, the Agency shall, pursuant to its
responsibilities under state law, use its best efforts to resell
the site as soon and in such manner as the Agency shall find
feasible and consistent with the objectives of such law and of the
Redevelopment Plan, as it may be amended, to a qualified and
responsible party or parties (as determined by the Agency) who will
assume the obligation or making or completing the improvements, or
such other improvements in their stead as shall be satisfactory to
the Agency and in accordance with the uses specified for such site
or part thereof in the Redevelopment Plan. Upon such resale of the
Site, the proceeds thereof shall be applied:
a. First, to satisfy the loan of the construction lender
(if any), then to reimburse the Agency, on its own behalf or on
behalf of the City, for all costs and expenses incurred by the
Agency including, but not limited to, any expenditures by the
Agency or the city in connection with the recapture, management and
resale of the site or part thereof (but less any income derived by
the Agency from the Site or part thereof in connection with such
management); all taxes, assessments and water or sewer charges with
respect to the site or part thereof which the Developer has not
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paid (or, in the event the site is exempt from taxation or
assessment or such charges during the period of ownership thereof
by the Agency, an amount, if paid, equal to such taxes,
assessments, or charges as would have been payable if the site were
not so exempt); any payments made or necessary to be made to
discharge any encumbrances or liens existing on the Site or part
thereof at the time of revesting of title thereto in the Agency, or
to discharge or prevent from attaching or being made any subsequent
encumbrances or liens due to obligations, defaults or acts of the
Developer, its successors or transferees; any expenditures made or
obligations incurred with respect to the making or completion of
the improvements or any part thereof on the Site, or part thereof;
and any amounts otherwise owing the Agency, the Developer and their
successors or transferees; and
b. Second, to reimburse the Developer or their successor
or transferee (if applicable), up to the amount equal to the sum of
(a) the cost incurred for the acquisition and development of the
site and for the improvements existing on the Site at the time of
the entry and repossession, less (b) any gains or income withdrawn
or made by the Developer from the site or the improvements thereon.
Any balance remaining after such reimbursements shall be
retained by the Agency as its property.
The rights established in this Section 716 are to be
interpreted in light of the fact that the Agency assisted the
Developer to obtain the Site for development of lower income and
moderate income single family owner occupied housing, and not for
speculation in undeveloped land.
VIII. [S800]
SPECIAL PROVISIONS
A.
[S801]
Submission of Documents to the Aaencv for
ADDroval
Whenever this Agreement requires the Developer to submit
plans, drawings or other documents to the Agency for approval,
which shall be deemed approved if not acted on by the Agency within
the specified time, said plans, drawings or other documents shall
be accompanied by a letter stating that they are being submitted
and will be deemed approved unless rejected by the Agency within
the stated time. If there is not time specified herein for such
Agency action, the Developer may submit a letter requiring Agency
approval or rejection of documents within thirty (30) days after
submission to the Agency or such documents shall be deemed
approved.
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B.
[S802]
Successors In Interest
The terms, covenants, conditions and restrictions of this
Agreement shall extend to and shall be binding upon and inure to
the benefit of the heirs, executors, administrators, successors and
assigns of the Developer.
IX. [S900]
ENTIRE AGREEMENT, WAIVERS
This Agreement is executed in five (5) duplicate
originals, each of which is deemed to be an original. This
Agreement includes pages 1 through~and Attachments No.1 through
No. ~ which constitutes the entire understanding and agreement of
the parties.
No private entity shall be deemed to be a third party
beneficiary with respect to any provisions of this Agreement.
This Agreement integrates all of the terms and conditions
mentioned herein or incidental hereto, and supersedes all
negotiations or previous agreements among the parties or their
predecessors in interest with respect to all or any part of the
subject matter hereof.
All waivers of the provisions of this Agreement must be
in writing by the appropriate authorities of the Agency and the
Developer, and all amendments hereto must be in writing by the
appropriate authorities of the Agency and the Developer.
Each individual signing below represents and warrants
that he has the authority to execute this Agreement on behalf of
and bind the party he purports to represent.
X.
[S1000]
EXECUTION AND DATE OF AGREEMENT
This Agreement shall be deemed effective as of
September 3, 1991, and upon the date of final execution by the
Developer and the Agency all time periods for determining
performance by the Agency and the Developer shall be deemed to
commence as of said date unless otherwise specified in this
Agreement.
[Signatures begin on following page.]
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IN WITNESS WHEREOF, the Agency and the Developer have
executed this Agreement on this day of ,
1991, and this Agreement shall be deemed effective for all purposes
as of the date set forth in section 1000 hereof.
"Agency"
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
By:
Executive Director
ATTEST:
Secretary
APPROVED AS TO PROGRAM:
By:
TO FORM AND
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"Developer"
EMPIRE BAY, a California corporation
By:
Title:
By:
Title:
SBBOIOOOIIIlOCI504
10114\91 9:40
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ATTACHMENT NO. 1 - SITE MAP
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A9ACHMENT NO. 1 - SI TE MAP 0
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IIFII Street
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ATTACHMENT NO. 2 - LEGAL DESCRIPTION
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ATTACH~IENT NO.2
LEGAL DESCRIPTION
THE ENTIRE PORTION OF BLOCK 43, IN THE COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7 OF MAPS, PAGE
I, RECORDS OF SAID COUNTY lAPN 134-021), EXCEPTING THAT PORTION
DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF LOT 5, THENCE
SOUTH ALONG THE EAST LINE OF "G" STREET, 150 FEET MORE
OR LESS, TO THE MIDDLE LINE RUNNING EAST AND WEST
THROUGH SAID LOT, THENCE EAST 200 FEET ALONG THE MIDDLE
LINE OF LOTS 5 ~ 61 THENCE NORTH 150 FEET MORE OR LESS,
TO THE NORTH LINE OF SAID LOT 61 THENCE WEST ALONG THE
SOUTH LINE OF SEVENTH STREET, 200 FEET TO THE POINT OF
BEGINNING. (APN 134-021-01, 02, 03, 04)
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ATTACHMENT NO. 3 - SCHEDULE OF PERFORMANCE
SCHEDULE OF PERFORMANCE1
IoIU. 1m IoIU. 1m
AaeaCJ c.l.lnctiol .....iaII Perait Coa8tructiaa .
. A"N,ai leu '...ilgl r_iaII J:.lI.~L1_ linin.. -- Bal_
D -6 Close Escrow Begin Managing Architect Begin Prop-
Property owned Proper- Continue Con- erty Search
ties cept Drawings
AS81m. Loans Begin '_iIy
Relocation Planning Loan Selection
Construction Research Application
Financing
Process City Depts:
Starts per.it Needs
1 -5 Continue Planning Loan
Acquiring ree'd.
Sites
Architect:
Begin DesigD
Review Draw...
ings
Engineer:
Begin prelia-
inary Draft
begina
2 ... Architect:
End Design
Review Draw-
ings
Engineer: End
Preliainary
Draft
3 -3 Phase 1 Re10oa- City Destan
tioD Notices aeview . Con-
ditions
4 -2
5 -1 Construction Begin Phase 1
Loan Intent Bserows
, Letter
1 If Construction Loan not funded 6 Months after Project Approval_ a8 shown on
Page 2, all deadlines slip until it does.
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SCHEDULE OF PERFORMANCE I (continued)
"aU. lna 1oaU. lna
Areacr Coutncti.a -.iDlI _10 CGalIUuct;imI .
ABronl ion hHiarl P-iDlI ~i_ hac... -- Sal_
6 0 Construction Phase 1 Reloca- Working Draw- Obtain Required
Punding tioD Begins ings . 8ngi- Bnd Phase 1 Insurance
neering ...ily Selee-
Retire Subllitted tiOD
A8Suaed Loans
Phase 1 sites Phase I Iltltoo-
litian II. Mov-
Request "l- ing Peraits
nent >>oaain Received
if needed
7 I Phase 1 Begin Moving Phase I O..,U-
Building Per- Phase 1 Units tiOD
aits aeceived
8 2 Phase 1 aeloca- End Koving Phase 1 Con-
tioD Bnds Phase I Units struction
Begins
Phase I Reha-
bilitation
Begins
9 3
10 4
11 5 Phase 2 Reloca-
tion Notices
12 6
13 7
14 8 Retire Loans Phase 2 Beloea- Phase 2 ~- Close Phase 2 Certificates of
Phase 2 Sites tioD Begins litian &. Kav- Bscrows Occupancy Phase
ing Peraits 1
..inent Received End Phase 2
DoIaain. if F_ily Selec- Phase I Sales
any I ends tioD Begin
15 9 Phase 2 Beloca- Phase 1 Begin Moving Phase 2 Demoli-
tion Bnds Building Per- Phase 2 Units tion
.its Received
Of Construction Loan not funded 6 Months after Project Approval. as shown on
age 2. all deadlines slip until it does.
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SCHEDULE OF PERFORMANCE1 (continued)
"'"1 frtll .'"1 frtll
&ancr Coutncti.. ___It.. Pe,,"it C....8uacU.... .
..,",,1 Lou Juii.,l ._u.. "~1_ hac... -- B8l88
16 10 Bnd Hovil1ll Phase 2 Con-
Phase 2 Units struction
St.arts
Pbase 2
Behab-
11ltatioD
Begins
17 11 Phase 1 Cer-
t.ificate~ of
Occupancy
cOIIplete
18 12
19 13 Phase 1 Sales
- end
\J 20 14
21 15
22 16 Phase 2 Certi-
ficates of
Occupancy
Phase 2 Sales
Begin
23 17
24 18
25 19 Phase 2 Cer-
tificates of
Occupancy
COIIplete
26 20
27 21 Phase 2 Sales
Bnd
O-_f Construction Loan not funded 6 Months after Project Approval, as shown on
age 2, all deadlines slip until it does.
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ATTACHMENT NO. 4 - SCOPE OF DEVELOPMENT
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Attachment No. 4
SCOPE OF DEVELOPMENT
1. General Description
The San Bernardino Neighborhood Restoration Project ("Project") is designed to buy and
remove all the non-owner occupied homes on one full block of the downtown area of the
City of San Bernardino, and develop approximately 118 new townhomes for sale to low and
median income home buyers. In addition, the best of the homes removed from the block
will be transferred to a non-profit organization for re-conditioning and sale to very low
income home buyers.
2. Location
Block bounded by 6th Street, "F" Street, 7th Street, "G" Street
3. Very Low Income Homes
About 26 usable dwellings will be relocated to Project Home Run sites for "sweat equity"
development and sale to very low income families. Developer has arranged take out
financing for these homes via part of a $547,777 Federal Home Loan Bank grant and a
loan commitment from California Federal Bank. Agency will provide some soft second trust
deed assistance to the families in this group with the lowest incomes.
4. Low Income Homes
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About 53 new 1,000 foot townhomes will be built, for sale to low income families. Developer
has arranged take out financing for these homes via part of a $547,777 Federal Home Loan
Bank grant and a loan commitment from California Federal Bank. Agency will provide
some soft second trust deed assistance to all the families in this group.
Median Income Homes
About 65 new 1,200 foot townhomes will be built, for sale to median income families ($37,000).
The Agency's $18.8 million (5/90) Single Family Housing Bond issue is available as a take
out financing vehicle for these units.
6. Deed Restrictions
All units sold will have deed restrictions preventing them from becoming rental units.
7. Relocation Allowances
Families living in the project area will receive relocation assistance as required by law.
Those with qualifying incomes will be given a priority for buying completed units.
8. Acquisition
About 30 parcels are required for the development: 17 are owned by the developer
comprising 75% of the land area; 4 are currently in escrow; 2 are in negotiation. On the
remaining 7 parcels, it is anticipated that the Agency will be required to use eminent
domain, or the threat of eminent domain to facilitate their acquisition. 4 owner occupied
dwellings will be left alone unless the owners desire on their own to sell them to the
project.
9. Planning and Design
The planning and design of the project will be undertaken by the Developer subject to
O approval by the relevant governmental entities. It is anticipated that architecture will
conform to the extent possible to the basic look of the best homes currently in the area.
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ATTACHMENT NO. 5 - CERTIFICATE OF COMPLETION
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ATTACHMENT NO. 5
When Recorded, Mail to:
CERTIFICATE OF COMPLETION
We, , Chairman and
Secretary of the Redevelopment Agency of the city of
(the "Agency") hereby certify as follows:
By its Resolution No. , adopted and approved
, 199_, the Agency has resolved as follows:
,
San Bernardino
section 1. The improvements required to be
constructed in accordance with that certain OWner Participation
Agreement (the "Agreement") dated , by and between the
Agency and Empire Bay, a californi~ corporat.!2!l. (the "Developer")
on that certain real pr~rty (the" ropertY"JiiiOre fully described
in Exhibit "A" attached hereto and incorporated herein by this
reference, have been completed in accordance with the provisions of
said Agreement.
section 2. This certificate of Completion shall
constitute a conclusive determination of satisfaction of the
agreements and covenants contained in the Agreement with respect to
the obligations of the Developer, and its successors and assigns,
to construct and develop the improvements on the Property,
excluding any normal and customary tenant improvements and minor
building "punCh-list" items, and including any and all buildings
and any and all parking, landscaping and related improvements
necessary to support or which meet the requirements applicable to
the building and its use and occupancy on the Property, whether or
not said improvements are on the Property or on other property
subject to the Agreement, all as described in the Agreement, and to
otherwise comply with the Developer's obligations under the
Agreement with respect to the Property and the dates for the
beginning and completion of construction of improvements thereon
under the Agreement; provided, however, that the Agency may enforce
any covenant surviving this Certificate of Completion in accordance
with the terms and conditions of the Agreement and the grant deed
pursuant to which the Property was conveyed under the Agreement.
Said Agreement is an official record of the Agency and a copy of
said Agreement may be inspected in the office of the Secretary of
the Redevelopment Agency of the City of San Bernardino located at
the city Hall, 201 North "E" Street, San Bernardino, California
92401, during regular business hours.
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The Property to which this certificate of
more fully described in Exhibit "AN attached
O - section 3.
Completion pertains is
3 hereto.
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DATED AND ISSUED this
day of
, 199_.
Executive Director of the Redevelopment Agency
of the City of San Bernardino
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EXHIBIT "A"
LEGAL DESCRIPTION
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8II8CHMENT NO.2
LEGAL DESCRIPTION
THE ENTIRE PORTION OF BLOCK 43, IN THE COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7 OF MAPS, PAGE
1, RECORDS OF SAID COUNTY IAPN 134-021>, EXCEPTING THAT PORTION
DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF LOT 5, THENCE
SOUTH ALONG THE EAST LINE OF "Go STREET, 150 FEET MORE
OR LESS, TO THE MIDDLE LINE RUNNING EAST AND WEST
THROUGH SAID LOT, THENCE EAST 200 FEET ALONG THE MIDDLE
LINE OF LOTS 5 ~ 6; THENCE NORTH 150 FEET MORE OR LESS,
TO THE NORTH LINE OF SAID LOT 6; THENCE WEST ALONG THE
SOUTH LINE OF SEVENTH STREET, 200 FEET TO THE POINT OF
BEGINNING. IAPN 134-021-01, 02, 03, 04)
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ATTACHMENT NO. 6 - RELOCATION AGREEMENT
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Hl.... ta ..u lIda'1III OWMI"'.
t. _iN.~ 'PO'" to par tile ._ oapp1n9 ,.. of 1:U
au .~ 01tr "1;11' Depanunt. .
J.D. _i~...,. qna. tut t.ba ..001 41.ulot faa .ed1t
t~ tba MdHau tl:UltUftd to .... 11Im w111 ...1., to ... I\m.
O. IIJII roa --IUon'l.DD .,...-
U. ... 11Im epee. to 1oaail. and plaae ill UCI'W, .. otItall'l
aD optl_ H, nff.1aleftt panal' to aaDept tala ~.i..1;elY 13
..11~ unit. t:o ... WUltaued u HaM aun la tbl ILl-at: "1' of
tba PrO'Ic:t. 110M aun, at 11:11 aol. 41aonUoD aM .. ~ovl4d
Iau~l .r nblWltate lew<<r tIlu 13 _11181 init it
nhuu....tJ.clft of 1"= ftuUel' ..11 Dot H t...i.b1e. ... au allO
rilla1ao evn' to .. ""Plbb W. tak laaardiftg to tba tn',ot
Ma14\11I. :tr ,eve ~ l' e"l1~ \Ud.ta an 1..,u..1iUa for
rehabilitation, ac.e aun avn" to dU_t tbII "0,000.00 pel' anii;
loan 1ICIll'lIf.n4 lna _in II,. '0 ." wDit CIOU1:ftft.t._ .. ZOltvn
1t to _in lay.
12. ... IIun qna. to later 100ate and pll. 1ft ....OW, 01'
obtain In option, em nlf1elut ad41t1ona1 puaa1Il to aooapt tIuI
QIInKData1r 12 IInlUn; lUli1:ll to M Ulutlft'ld to ... 11Im 1D
~ "OoM pbUa Of tbe 1'I'0,_t. ... 11Im .... to aoorrrl1lh
t.bh tallk .aOOZ'lllnt to tIla l'I'o'eat "-MI. %t f..v tuft 13
"'1~ D1t. an lvallul1 t. nhUll1..tlf11L ~ ~ IPHl
ee dJ.1'Mt: tM "0,000.00 par uSt lou u;W.n4 ROIl _-n My to
MY wt 8OInItnctlO1l 01' n'tlal'ft i~ to ..,1ft 1Ir.
13. ... Ibm qre_ to aaqvJ.n tbe JlU'aa1.. "'.at to tta1.
.~t in I.. bII'. ..a 01' 1a '" .... of I\1Cb ot.bu' ut.1~y
.. 1t ....-. appropdate, INto DOt "~a la" til. 01;, of Ian
8ImIrd1no or the Iu lenuUaa DIVIlo,..t ~.
It. l'l1IDoI" aD '_.'u.z.,z.
U. ... 1twl qna. u nhUl11tate t.b8 dwlllnv ui.ta
100" IlY ... aun in .QGb . -=- tut ther will a. .Uf1b1.
rD~ . DIIR~!aa~. of ClGCNpuoy a0a0z041nq to the Pl'o~.ot .ab_l..
~I. ... IbUl agn.. to illlntif,. Ill. IU,Ull1 f..ll,. wo w111
I..ut in th. l'.b~llitat1Clft of ..ch .,.oin,Q 4W1111ht unit. aNI
w111 plA'A... ~t: dw.ll!", W\1~ Wbeft 1t ba. no.bell . oAl'Uf.1aata
of oaoupanay. In tile event tut an 11191111. '.ally .1aClt.a mdv
uaa appUo_1I1. ~ovldGM of the "lCl1:&~.ian ADt to Ipply fllZldl uda
.".Ulbl. to it: ~r 'tba ~I'o~.ct Wnzo4 . dDn payaent In Un Of
zoutll ll-.i.tuO', .uch 'unr w111 not. ... obU...~ to "lIdll'
II.i.teDOl t.bat wwl11 otbvwb. H "",bY of iIIwa 1n \he
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BIB 704 4.0
FULLERTON LEIWIN ..
XEROX TaE~IE:" 295; 770'n;77:?? ~?;
SF~""3'<i-;'~i-.Ch:22PM SABO & '~In '7111
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1'IIaDlI lID IUI IR..&oil,'Ift m"rlll&.....".".,.,
CCea'UMC)
a-lIbU11itltion Of ftO'~ I..... J'aaiU... .ill M iMttfUcl
aooodlq 'to .. UM ,ulolSa .of'.tU lI'a'ect 1Clb.4lal.. 1.1I.cr1111.
'uUy. 1e bfiMd .. a tWl, ...t.1ftf tbI liMul.1 cdted.
~.",,~ 1:0 obtain a aon:p,. ....AU' i:M vuy 1_ ilia.. UI'u of
tile trU~ .WUU4 to lapin ..)', ... Ial.Il Ud caUto=ia hMral
auk _ i:M rdlil'&l ... IIOaft laM. . III aMitlcm, toM .1wUlI.
faa11y ..e oonton to llIia.Una enullelWd .., t:M Chy ot I&A
8Imeidbo 1ft ...laUon ilo tbe aff8dul. b~ ovnenhip ,lu.
.. laZGZR an IIDoJaClI' _._111_
11. ... Jtlm apul ~at 1\ba 1&1.. P1'1o. .f dnl11tlt uaitl
.ujeat to t!l.1. .gr....nt 1ha11 avult. not lid tbab $'0,000.00, .
pndlle4 nab . ,dae i. DOt .1aoYa tbat .uthoI'i.14 JIy par,arch 1..
.- au ~.. tba, tile $SO,OOO.OO IOU fO&" ... ....'eatbi __
.ill _ nPaid .t: i:he D~' of ..C:OW WaD aaab nllPlcti... ~ 1.
.old. .
>>. ....-cnr.r r--.
17. lItpin'~ .;r... ~at ~ .on ..0an4 tz'ut ...ta, Dich
the Ian IemUdbo Day.l.....' __01 "I .~..ll to ukl I".Uul..
to vezy loW illDOM _.... of 1IWI1Ulll wtl, .111 lis 1'.lIneA tor
Ilupn ot .... 11m u!t:a. .... bn eall _ al1eaated tnnt,-f1"
pll' oeDt (lit) of th. $400,000.00 aUooata4 !ly thl Oi\y ot 8aft
aUllUdlllO ~_ the loft t:nIt 4M4. ....... all'.1 __t if ...
Itun baa DO.'" of ~. full lilt far ~ lof~ VuR d8dc it will
MIc. tut JIODIy &\'&llUl. w -.pin ley f. ... I.a _1ft lay"
CDIIple1:icm of _hoe "Y'a end of the Pn,.ot. _in lay atJI'I"
tut 11 _121 lay 1a DOt I.a ...11 ot .. aUzo. "'t of the 80ft
~It: tlMeI, it .Ul ..ke th... fUnda .vaUul. ~o ... aWl ~o
COIIp.1e1:e ... ba'. end of tba PI'o~.at.
&1. .pua IaJ &;rUI ""t ... ItlIII .-r pn\'~' fa.. to th.
v.ry low hGau wren of t.Ila Il~. 1t it nJaablU,tat1ng, fna
WIlab'Nl' 'OUZ'OI' IIoaI au .1.... 110 ..I, !IlclucUftI IIut ftOt
natdatlll w th. fund11l1 tntatbl~ avdlebl. t.bI'oagb c:al1fO~l.
.l4enl ..Ilk 1IftllU' thIi grant ma48 ne11.l:1lII to the ~.at by tb.
FaUnl ... Lou luJc.
n. .... IIuIl agru. t:bat t:hI attIm!a1l1UtJ'. _vl-m ..dOl ull
0VMr ooOQpaMY 80VenaDta wloa aft ~~lZ'1d t:o .,,1)0 w ..CI!l
r.apecti". ~.........t.y ~ l:1li b1a11't or nhUilitatld and tb.n .014 ..
pan of tu h'o~'o~r udu tU tU'M of tbe 0Wne1' Pan1al,.'U.on
.....t betvun at a.cI.".lopnftt AvUGf of i:be cU,t,. of Ian
lUftU'dlno anll _ba ley, ....11 app~ to Pl'GPII'U- 10M 11m .111
I'eh&bUlta. an4 ..1l1lNl1l1' tIl. t.ns of ~11 .lellMt. 1qII1'C~
the tenla allll oon41Uon. Which pv.rn B.a Itwa an4 ....12:. lay lii
thIi AO/IIIiaiticm &lid eli.petition ot properU.. .. part of t!ae
4
XEROX TELECOPIER 295; ??~??;??:??JJ; 818 704 4~
SEf;l(:T__3Q.~~1_~1:23PM ~ & ~, : mll FW.ERTON I.I!IWIN"
; . 7
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C..,taW) .
I'nj.ot:, nfannoe,il b~ au. to the tOu.w1llf donuau, 1fUa
are iDaOqHanted '" tb:L. ~ef_ua. or ducrdpt10n .. tb~ fu.Uy
..t fonla lIe.un U..)'lU to%' b4ew1"llftt ud ..1HIUon,
CU.) Affonall1Uty CDYa&IIU "ith tba ell', of lab 1enIulUJto,
(Ul.) IoMdule ot hl'tonuCla Catta..d Unto) I (iY.) ..t4ul.
or Di..1Icr..M U4 "100&'1cm, uclI Cy., t.H ........., 1No1.__1A
_in .., ud tile CJ.tJ 0: 'n la'Ilardino DeYe1v_.t 1pftGY.
e. O~XIIIII\- WO 0DIDZIIn nonot
o
10. ... IIun .... to _ ftapcmaW. UII uoaan1:Ul. t~
aJl7 ..te "0114 tb. IIO,DDO.OO pel' dwelling 1Iftit ... baa ,,1.11
noel.. fJ:OIa lapin lay IftlI 11'1'." tbat euab addiUonal aoete 40
IIDt -ziti. l~ oUp'1011' to put... nilII' the Ifl'MH~. ...
aun ie 11'.. to ~ nail otbeI' .cNI'CIU of ~ .. it ...-_
Dlg..azy ta hUlll bM a.m'. o~U...UDU Uft4C' ttil. I~~.
11. _in Iaf 11'1'''' 1:0 j01ll ... Ibm :La ~ ...,.
naloMIII. .tton to pq1ft addU:I_1 f\mdilil to "'l'It __aun'.
0'YU'bea4 ooe1:a lftC1\lul4 ~ oon'uotlcm vitb ... 1IUl" ~lkat1011.
an4er W. a;r-- '\t..
22. 110M IIun IfI'I" to 'oia in I RnUn to ..l1ft _iz'1
lar in U\:dn1ng CIOMtnotion al1l1 ..b1tion flDaDDift; 111 1 ..nul'
tbat ,,111 .11ow tba ~~.at t:o _ ..,letet "ith till lovat
po.dlll. li.......ing coat.
o
.. ~--rft
II. 1K1h4't.. .hUd bRain, _ua lay 8gna. to w.n~
and Jaola ... RIm fra .nd lIam... fl'Clll l1ab!l1tie. CUtolWliH
ba' 1101: U.1Ud .0 all pIJIIlltlaa r"1l1t~ f%'oa fallu. to ..ri
f11WlClU1 UCI otbtI' hQ\l1nlaanu lIMer lapiN Ia)". _.--ftt nth
tbe Cjt, of "1\ .lZ'n&l'~.tno ItIdIYllOp1!1l\t lIlDO)', Itt0l'lll11' r...,
1114 ot:Ml" lJ.abU1t.l..) tea .ita faUura W DarlPplat.a lta ..ieI
A!J...eMJrt. vitia th. b4ava1..r_d. &pncr ud{: '01' ita flll.. to
d 'ClIhu9. ita o1IU,atiou Uft4.:r thi Rllooa1: lot.
24. haep~.. lUted bRaiD, _b. ally IIN" to iMI.-1fY
and Jaold .... bII fr.. and lIUl1I... from l1U1Ut1"i iftalwUftv bIIt
not. ISla1t.. 'to Ittomey.' t..., f. ~ ud all illNl ~ othal'
apan... OIl" ....... n.1l1tbv 11'_ any NIIOY.Ucm, alt:8nUona,
llIulW..,., npau. Dr otbft' VOZ'k n11\lng 1:0 IIfty .Ifa dve111111
w.J.u 01' the eid.'~in9 1'8&1 pzoopal't)' on vhJ.Dh thl7 Iri:ud, pufonld,
Ml~ pel'fOl'M4 or to ba JU'tDZ'U4, by allY OOfttnctClz' or o1:bez'
eIlUcy, WId.r uy IfNlUftt: not: expn..l1 ~Itified III ... bIl.
I!I. IIxClQt I. iRat.d hat-Oill, _iz'. ..,. lINe. to ift4l11M1fy
aM bold 110M Ibm fN. ad haDI... he. any and ..11 daua4a, 10'.,
.
.
KI:.><UX l~o.;UI'I~>< O!!oIb; ??-,....??;7?:n 7?; ele 704 47~
. ~;'" 3"IP!1I--~1:24PM ~. & GREO+I1 1 mu FUUERTON l!!IlNN ..
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......... aD au.. ~1.---;&. V--INI", tlllII'IfWIIIttl
cOOaUa....
. U&bJ.:Lity, inoll14ing lINt: DOt: U.aJ.Y4 t:o .~I f...,
"IUlUq fna tM 1n~~ to or 4eatb of anI penon .. .......
__111. Of Use M1~IIDO' or ~=:t _in 11)1 01' tlbt ep-4Uoa
Of'tU .alt 4Vall wait. or upon Vbloll tJNtr at:a4 a _
diu 01" t!4.., pri01" to due aoceptuaa by .... .. of ... dn11i.ni'
UILlt. .
u. __ au ap'''' ~.t ebO\ll' 10M iu .'11 . .,.11* unit
n1:Ijeft t:o CIU. ....., 1ft nolation 01 the alloriU!Uty,
"Kina .d~ 01' GWMI' OO~I"I')Of ClCIYIIDUlta nfU'Z'.s to t1l MOtion
_,.w UovII, JIGu am will bo1il bU'lll... a1l4 bcI-J.fY _in Bar for-
.,., loa,.. ..,in .Ir iAftn .. . -lMIUlnCIII, JIlOVtDm), bDL.....,
tba1: ... am _11 not IlIold _in .'f banl... .. bcI"'~1fy
_in II, rOI' oy 10.... iftOllfted by _in .., l1li1.. 10M IlIn
1fU 1l8911pnt 1Jl ita petoZ'UftOa of it. oIl111aUDM ulI I\lab
..,11..- ... tbe prozJaat41 oau.. of neb 1.....' ua4, DlW%DID
,,,.mal tu.1: 110M INn ab&1l DOt. bold _in _ baBl... Ill'
ind..u.ry -.u-. Bay for any :a...., of what.vv tLii4 u4 lIau.#U
nall1~ biIII whate".. de,", of f.\llt ... ....-,.II1t. on t.ba JIU'i:
of 110M 81m, otb_ 1:Iaan CMlt-of"'DOllkn 1u... n.u1t:iav fnlI .
pz-....J.... 11)0, and ia 110 ... paa\1II' thaD, tba JMlftalt)' ~OY~~'
of tM ....., lInneD _ii. lay lUld \ba at", or Ian .,
Iladnall'f -t &pnar I h DO oa.. eb&ll ... au hold _izoa lay
bual... or 1....-1" _bo. .., I. &1'1' oona.anUal ....e of
wMtawzo kiDlI _lIIed to 1Ip1l'e laY Dr fOl:' 1dU= _inlay or
My 1te liule, Vhathlll' 01:' ut: .... ItWI va. U lall1t in UIII!Dt .uab
If--,a 01:' any ....,.. to _ire lay R .UQ to 'IIIliDb _in lay
18 OZ' .., !Ie u'u1e. .
n. LiUllity UIIdC' _111 aJrHMR ..11 _ Uai. to IOIUIl
calh UMnCUturu U4 _11 not 1no1\1119 any _u..-nt:la1 o1li....,..
nuana J.y UIJ pan, fOl:' any ao...on "Iardl... of wbe1;bco _ab
OOMeCZUOlltial ....... aN the JroX/:U" n.ul' of ..'u.......,
nokl..IM.., 1nt:eft1:.iOD, OZ' allae on tba taft of .., ,.~, 01' ..,
Dtbu' 111Gb _III..
... %1\ 1:.b. ..1IrI.t. 1:.bat ~. .gneunt or IlftJ ~i.1Im ~f
MoOillU \be .~~ of Uti,atlon Mt:nID 1:bI jUtiu bento, tbe
....vall1'" pu '. "....~1' 8~ I f... bl lIOIlnecrtion
~1II'..,lth ..U p&.l1S 11)0 the putr on the otbOl:' .W..
z. ........ .-......-t
u. ~.at U 1:Ia1 OOMiAUII9 o1:Il1..tion of t:ba puUe.
ber.t" to OOoper-I'. to .rt.r:ri: t.h_ t.8nla hlll'eln, t:.biII &fZ'M11l1lt
ClOn,t1tut.. ~a ut1n a,"aunt !letwe. .aU par-ti.. to tba
,uj.at _ttOl:' beMt an4 APR...... 8UIll'lor and OOIlt-rClCuawa
.I&'....n\o, vbather OZ'11 or wrltt.n, of tha perU.. in ~aat.lon
vU:h tbe 11IIr.Ieot ..t:t:u uno!, __pt .. I.t fOfthbRl1a. Iil.
,
BIB '704 4'70
FU.LERTlIN LEIAIIN ..
XEROX TaEC.Ol-lli.k 295; 77-o?;11:11 7?;
8EIXT 3e '91 01:25PM SABO & ~f;"1 nl23"
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cceau....) .
8IIppl.I=-, aotirlaati.., niven, nl.... 01' uniMttoft .f iobia
.....t _11 ... "indin, 'Dnl... uuuted b vriUDg by the
put!- IIowl4 tIl8H!lr. 10 val.. of IftY pny18lcm Ol' pn9l.1ou
Of '"' ..aent liMll 1M had, Ol' .un DOUtinu, . tIIl1vezo
of m:aI' otIlc pzw1alon bee11'l, 1101' _11 nob ..1-,. RMtLwu a
ocmUDlIiDv ...lYe ale.. et:UnJ.n ..."UiNllY ""*' _ the
puUe.. ..
10. Ul doOUMll'. ouWnl_ &llItlaod..a OZ' pen.l"-l berea,
ino'......., iobb 891'uunt., uy _ aLped in ~rt OZ'
~ with ~a!1 OCNIlte:rpel't IM-1Ilt & put of tlbe Vbol. of
nab ~-...t.
.. at' tch._Mft
u. Bal. .II'MUIlt a1'IIl tbo I'.lpu Ud UoJd.Uu.. of tha
parti.. Un1:o nl.a1:1va ~~ "11 .. pvul..d ..... 1M >>r the
10.,. of tb. atat. of calUo=J,a.
&. ..U......- .... aD n 0'''-- DI 1ft...,
u. 'fa t:IIe llxi:ent plll'ld.ttd by .,,11aabla 1.1', ud "Pon
...iauut .. othR ~&Ufar ..1141)' .utIao&'bd b ..dUller by the
penlu Unto .. _ operotion of 10", tbill IIfZUIHmt _11 lnun
to ~ lauetit of, ud .ull .. ltilMU.ftt 1POft, tU ua1tM,
....J.a1&1lnton, ..... noauHZ'll J.a lftaou' of evur kW, of '!:he
puU.. "euto. . .
sa. !Il18 ~L-.nt ..11 IIGt 1M ...!vud ...,t IIrtha
wdtMri a\Itu&J. ~._.nt of tM parUu &lUau.
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XEROX TELECOPIER 295; ??-~?:??i?? ~
IEtXf~0'-I'!lr--~h: 25PM ~ &' ~N"" I "1 U
BIB 704 47a-\
I'Ul.LIflTOlll L~N ..
; .10
1~:i~5;' .
'0
.......,.. aD AIrI ......, 1tWC1a.....1IItIIItIttl
Cooa'f~")
Dr 1Ift'DII WBIIJOJ'. t!ae ,.nt.. vIlo CIa" thi. au. --.t i:o
... ent.nc1 iDto UM! dvned tM zoupective ftUQ .....to &11 .. Of
tM date ~1nt uO'n wdi:ten.
..;a 1&1, . Oa1Uonia OoQ.nUoel
By'
DelZa ~. "Mon
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DIm 1'&\lClAl.
ay.
JoJai'1 llaya
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"~f-oflt ~1t. ,...fit
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f,f,1:1e. JIl'..1dent,
Bou4I or D1nnoN
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ATTACHMENT NO. 7 - FOUR BLOCK DEVELOPMENT AREA
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ATTACHMENT NO. 8 - RELOCATION GUIDELINES OF THE AGENCY
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RESOLUTION NO. ,.,.o~
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO ADOPTING A GENERAL RELOCATION
PLAN.
WHEREAS, the California Community Redevelopment Law mandates that
each Redevelopment Agency adopt a General Relocation Plan, which speaks to the
regulations and procedures which the Agency will use to administer its relocation
program; and
WHEREAS, Pacific Relocation Consultants has prepared for the Community
Development Commission a General Relocation Plan, which is in compliance with
all applicable laws and regulations; and
WHEREAS, the Redevelopment Agency acknowledges the need for a
Relocation Appeals Board as set forth in Section 109 (Grievance Procedures) of said
General Relocation Plan.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY
THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO AS FOLLOWS:
SECTION 1. The General Relocation Plan, attached hereto as Exhibit "A", is
hereby approved and adopted.
SECTION 2. The Community Development Citizens Advisory Committee is
hereby appointed as the Commission's Official Relocation Appeals Board.
ADOPTED: November 1', 1982
Approved as to Legal
Form'and Adequacy:
./7~~
Wm. fI(. Flory, Agency Co nsel
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GENERAL RELOCATION PLAN
REDEVELOPMENT AGENCY OF
SAN BERNARDINO
NOVEMBER Hi. 1DR~
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1. (Section 100)'GENERAL YHTRODUCTION AND PURPOSE
California Community Redevelopment Law (Part 1 of Division
24 of the Health and Safety COde mandates that each
Redevelopment Aqency in the state adopt a feasible method, or
General Relocation Plan, which speaks to the requlations and
procedures which the Aqency will use to administer its relocation
proqram.
The General Relocation Plan is used in conjunction with the
adoption of a redevelopment plan for any redevelopment project area
which the Aqency identifies. Pursuant to Section 7260 of the
California Government Code and Section 33411.3 of the California
Health and Safety Code, the aqency shall prepare a plan for
relocation of all of the followinq:
a. FlUDilies and persons temporally or permanently displaced
from housinq facilities in the project area.
b. Low and moderate inco.. housinq developed in a project
area shall require by contract or other appropriate means
that such housing be made available for rent or purchase
to the persons and flUDilies of low or moderate income
displaced by the redevelopment project. Such persons
and families shall be qiven priority in rentinq or buyinq
such housinq: provided, however, failure to qive such
priority shall not affect the validity of title to real
property (Health and Safety Code Section 33411. 3).
c. Non-profit local community institutions to be temporarily
or permanently displaced from facilities actually used
for institutional purposes in the project area.
d. The aqency will also provide relocation plans for
businesses to be temporarily or permanently displaced
from facilities in the project area.
2. (Section 101) DECLARATYONS
The followinq declarations are made by the San Bernardino
Redevelopment Aqency:
A. C01Qpliance
o.
1. This General Relocation Plan is written to be in
conformance with california COlllllunity Redevelopment law
(Part 1 of Division 24 of the Health and Safety (COde).
2. This General Relocation Plan is in compliance with
Section 65302 of the code, and section 65500, which
deals with the housing element.
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3. This General Relocation Plan is in conformance with
Chapter 3, section 33200, while not relinquishing or
diminishing any of the powers rights and/or options
which the Agency has a "Charter City" entity in San
Bernardino County.
4. This General Relocation Plan is prepared to be in
conmpliance with Sections 33330 and 33410 of the
California Redevelopment Law.
5. This General Relocation Plan is in conformity with
California state Law. If any portion of the plan
conflicts with any provision of the Federal Uniform
Relocation Assistance and Real Property Acquisition
Policies Act of 1970, then the provisions of the
Federal act shall prevail.
B. Effective Date
This General Relocation Plan was adopted by resolution of
the Community Development commission of the City of San
Bernardino, hereinafter "Agency", on November 15. 1982,
The Plan, and by implication the rules and regulations
referenced herein, shall be applicable to all displacement
occurring after their adoption by the Agency. Adoption of
the Plan shall not be construed to apply retroactively to
actions undertaken by the Agency prior to its adoption.
c. Benefits Extensions
The Agency shall provide relocation assistance and shall
make all of the relocation payments required by law,
including the making of such payments financed by the
Federal GoverlUlent. In addition, the Agency reserves the
right to make additional relocation payments which in the
Agency's opinion may be reasonable and necessary under the
circumstances of the particular case to carry out the
purposes of a redevelopment plan for any redevelopment
project.
D. Severabilitv
If any provision of this General Plan or the
application thereof to any person or circumstance is held
invalid, such invalidity shall not affect other provisions
or the applications of the plan which can be given effect
without the invalid portion or application, and to this
end the provisions of the plan are severable.
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3. (Section 102) GENERAL GUIDELINES OF RELOCATION PLANS
The Agency adopts the following policy guidelines as part
of the General Relocation Plan:
a) The plan shall show that there are or will be in the
Redevelopment Project Area, or in other areas within
the community, comparable replacement dwellings equal
in number to the number of families and persons
displaced from dwellings in the Redevelopment Project
Area.
b) The plan shall provide that no individual or family
shall be displaced unless and until there is a suitable
housing unit available and ready for occupancy by such
displaced individual or family, at rents within their
ability to pay (thirty (30) percent of gross monthly
income) .
o
"Replacement dwelling unit" means a dwelling unit
developed or constructed pursuant to Section 33413 in
replacement of a dwelling unit destroyed or removed
from the low- and JIOderate-income housing lIarket by an
agency and which is decent, safe, and sanitary and
contains at least the same number of bedrooms and other
living areas as the dwelling unit destroyed or removed
by the Agency.
c) Pursuant to sections 33411.2 (c), 33413, and 33411.3
of the California Health and Safety Code, such housing
shall be suitable to the needs of the displaced
individual or family, and shall meet the "decent, safe,
and sanitary" requirements for all standard dwellings,
and contains at least the same number of bedrooms and
other living areas as the dwelling unit destroyed or
removed by the Agency.
d) Section 33411.3. Priority of displaced persons of
low- and lIoderate-income for rental or purchase of
housing in project
Whenever all or any portion of the redevelopment
project is developed with low- or moderate-income
housing units the agency shall require by contract or
other appropriate means that such housing be made
available for rent or purchase to persons and families
of low or moderate income displaced by the redevelop-
ment project. Such persons and families shall be given
priority in renting or buying such housing; provided,
however, failure to give such priority shall not
affect the validity of title to real property.
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e) This plan and subsequent plans shall be provided
to the Department of Housing and Urban development
upon request for review.
4.
(Section 103) SPECIFIC RELOCATION PLANS
Section 33413.5. Relocation housing plan
Not less than 30 days prior to the execution of an
agreeaent for acquisition of real property, or the
execution of an owner participation agreeaent, which
agreeaent would lead to the destruction or reaoval of
d_lling units froll the low- and lIOderate-incoae
housing _rket, the agency shall adopt by resolution a
replaceaent housing plan. por a reasonable tiae prior
adopting a replace.ent housing plan by resolution, the
agency shall ~e available a draft of the proposed
replaceaent housing plan for review and c- _nt by the
project area .......it:tee, other public agencies, and the
general public.
'l'he replace.ent housing plan shall include:
(1) the general location of housing to be
rehabilitated, developed, or constructed pursuant to
Section 33413,
(2) an adequate means of financing such rehabilitation,
development, or construction,
(3) a finding that the replacement housing does not
require the approval of the voters pursuant to Article
XXXIV of the California Constitution, or that such
approval has been obtained,
(4) the number of dwelling units housing persons and
families of low or moderate income planned for
construction or rehabilitation,
(5) the timetable for meeting the plan'S relocation,
rehabilitation, and replacement housing objectives.
A dwelling unit whose replacement is required by
Section 33413 but for which no replacement housing plan
has been prepared, shall not be destroyed or removed
from the low- and moderate-income housing market until
the agency has by resolution adopted a replacement
housing plan.
Nothing in this section shall prevent an agency from
destroying or ~emoving from the low- and moderate-
income housing market a dwelling unit the agency owns
and which is and i_ediate danger to health and safety.
The agency shall, as soon as practicable, adopt by
resolution a replacement housing plan with respect to
such dwelling unit.
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5.
Pursuant to Section 7261 of the California Government
Code, as soon as practicable following the initiation
of negotiations to acquire a parcel of real property in
any displacement area required for site improvements,
disposition and development agreements, participation
agreements or any other activity in implementing a
redevelopment plan that will result in displacement,
the agency shall prepare a Specific Relocation Plan.
When the Agency's action will only result in non-
residential displacement, Agency in not required to
prepare a Specific Relocation Plan.
(section 104) CONTENTS OF THE SPECIFIC PLAN
Section 33413 of the Health and safety COde:
Replaceaent of dwelling units reaoved from housing
_rket as part of redevelopaent project; Allocation
of new or rebabilitated units.
(a) Whenever dwelling units housing persons and
faailies of low or lIOclerate inco.ll are destroyed or
reaoved from the low- or lIOclarate-income housing
~ket as part of a redevelop.snt project which is
subject to a written agreeaent with the agency or
where financial assistance bas been ProVided by the
agency, the agency shall, within four years of the
destruction or r8llOV8.1, rehabilitate, develop, or
construct, or cause to be rehabilitated, developed, or
constructec:l, for r.mtal or sale to persons and
flmilies of low or lIOclerate income, and equal nUllber
of replaceaent d_lling units which have equal or
greater nUllber of bedrocms as those destroyed or
r..wed units at affordable housing costs in the ...e
inco_ within the territorial jurisdiction of the
agency. When dwelling units are destroyed or reaoved
after 5ep+-hAr 1, 1989, 75 percent of the replac..ent
dwelling units shall replace dwelling units available
at affordable housing cost in the sllIIe income level
of very low income households, lover income
bouseholds, and persons and faailies of low and
lIOclerate inco_, as the persons displacec:l from those
,destroyed or r8llOved units.
(b) (1) At least 30 percent of all new or
rebabilitated dwelling units develoPed by the agency
shall be available at affordable housing cost to
persons and faailies of low or lIOclerate incoIte. Not
less than 50 percent of the dwelling units required to
be available at affordable housing cost to persons and
f..J.lies of low or IIOclerate income shall be available
at affordable bousing cost to, and occupied by, very
low inco_ households.
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(2) At least 15 percent of all new or rehabilitated
dwelling units developed within the project ares by
public or private entities or persons other than the
agency shall be available at affordable cost to
persons and faailies of low or ~erate inoc.e. Ifot
less than 40 percent of the dwelling units required to
be available at affordable bousing cost to persons and
faailies of low and ~erate inCOllE! shall be available
at affordable bousing cost to very low iDCOllE!
bousebolds.
o
(3) The requ1reaents of this Subdivision sball apply
independently of tbe requireaents of subdivision (a)
and in aggregate to bousing _de available pursuant
to paragraphs (1) and (2). respectively. and not to
esch individual case of reIlabilitation. develo~t.
or construction of dwelling units.
(c) fte agency shall require that the aggregate n1mber
of replaceaent dwelling units and other dwelling
units rehabilitated. developed. or constructed
purBWlJ1t to subdivision (a) or (b) r_in available
at affordable bousing cost to persons and faailies of
low incoae. ~erate inccae. and very low inccae
housebolds. respectively. for the longest fessible
ti... as determ.ned by the agency. but for not less
than the period of the land use controls establisbed
in the redevelo~t plan. except to the extent a
longer Period of ti.. _y be required by other
provisions of the law. If land on which those
dwelling units are located is deleted fro. the project
area. the agency shall continue to require that those
units r_in affordable as SPeCified in the previous
sentence. 'l'bese requireaents sball be _de enforceable
in tbe .... ~er as provided in subdivision (e) of
Section 33334.3
0:
(d) (1) This section applies only to redevelopment
projects for which a final redevelopment plan is
adopted pursuant to Article 5 (commencing with
Section 33360) on or after January 1, 1976, and to
areas to which is added to a project area by
amendment to a final redevelopment plan adopted on or
after January 1, 1976. In addition, Subdivision (a)
shall apply to any other redevelopment project with
respect to dwelling units destroyed or removed from
the low- and moderate-income housing market on or
after January 1, 19t6, irrespective of the date of
adoption of the final redevelopment plan or an
amendment to the final redevelopment plan adding
areas to a project area. Additionally, any agency
may, by resolution, elect to make all or part of
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the requirements of this section applicable to any
redevelopment project of the agency for which the
final redevelopment plan was adopted prior to
January 1, 1976.
(2) An agency may, by resolution, elect to require
that whenever dwelling units housing persons or
families of low or moderate income are destroyed
or removed from the low- and moderate-income housing
market as part of a redevelopment project. the agency
shall replace each dwelling unit with up to two
replacement dwelling units pursuant to subdivision(a).
(e) except as otherwise authorized by law, this
section does not authorize an agency to operate a
rental housing development beyond the period
reasonably necessary to sell or lease the housing
development.
(f) Notwithstanding subdivision (a), the agency may
replace destroyed or removed dwelling units with a
fewer number of replacement dwelling units if the
replacement dwelling meet both the fOllowing criteria:
(1) The total number of bedroom in the replacement
dwelling units equal or exceed the number of bedrooms
in the destroyed or removed units. Destroyed or
removed units having one or no bedroom are deemed for
this purpose to have one bedroom.
(2) The replacement units are affordable to the same
income level households as the destroyed or removed
units.
Pursuant to Section 7261 of the California Government
Code, the Specific Relocation Plan for implementation
activity shall contain the following elements:
a.
b.
A diagrammatic sketch of the displacement area;
Projected dates of displacement;
An Analysis of the aggregate relocation needs of all
persons to be displaced, including an analysis of the
replacement dwelling needs;
An analysis of the replacement dwelling resources;
A detailed explanation as to how the aggregate
relocation needs of all persons to be displaced are to
be met;
c.
d.
e.
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f.
A cost estimate for carryinq out the supplemental Specific
Relocation Plan and identification of the source of necessary
funds;
A detailed Plan by which any last Resort Housinq is to be
provided;
Temporary Relocation Plans, if any;
Additional information or data as necessary to address such
relocation aspects of the implementation activity not
previously considered in the General Relocation Plan.
q.
h.
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6. (Section 105) AlIIALYSIS OF REPT.a.t"DmNT DWELLING NEEDS
Pursuant to Sections 33411 and 33411.1 of the Health and Safety
Code, A written analysis of replacement dwellinq needs shall be prepared for
each project. It shall be prepared in sufficient detail to enable
determination of the availability for all potential displacees of housinq
which meets the standard set forth in the definition of comparable replacement
dwellinq (see" Definitions").
1.
2.
3.
0 4.
5.
6.
.
7.
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The written analysis of replacement dwellinq shall include:
Separate information concerninq homeownership and rental units:
The number of units identified by cost for each size cateqory;
Needs of the elderly and handicapped households shown
separately, includinq information on the number of such
households requirinq special facilities and nature of such
facilities:
Description of the locational Characteristics of the
displacement area neiqhborhoods correspondinq to the
requirements of comparable replacement dwellinqs;
Information concerninq proximity to present employment sources,
medical and recreational facilities, parks, shoppinq,
transportation and schools.
Information concerninq proximity to other relevant needs and
amenities.
The aqency shall insure that such method or plan of the aqency
for the relocation of families or single persons to be
displaced by a project shall provide that no persons or
families of low and moderate income shall be displaced unless
and until there is a suitable housinq unit available and ready
for occupancy by such displaced person or family at rents
comparable to those at the time of their displacement. Such
housinq units shall be suitable to the needs of such displaced
persons or families and must be decent, safe, sanitary, and
otherwise standard dwelling. The agency shall not displace
such person or family until such housing units are available
and ready for occupancy.
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7.
(Section 106) ANALYSIS OF REPUrEMEHT DWELLING RESOURCES
Pursuant to Sections 33411.4 and 33412 of the California Health and
Safety Code, a written analysis of replace dwelling resources shall be
prepared in sufficient detail to enable a determination of the availability
for all potential displaces of housinq which meets the standard for comparable
replacement dwelling.
A written analysis of replacement dwelling resources shall include:
1. Separate information concerning homeownership and rental units;
2. The number of units available by cost for each size category;
3. Resources available to meet the needs of elderly and
handicapped households shown separately, including information
on the number of units with special facilities and the nature
of such facilities;
4. Description of the locational characteristics of the
neighborhoods in the survey area corresponding to the
requirements of comparable replacement dwellings;
5.
Information concerning prozimity to present employment sources,
medical and recreational facilities, parks, community centers,
shopping, transportation and schools;
6.
Information concerning prozimity to other relevant needs and
amenities.
7. If insufficient suitable housing units are available in the
community for use by such persons and families of low and
moderate income displaced by the redevelopment project, the
agency may, to the eztent of that deficiency, direct or cause
the development, rehabilitation or construction of housing
units within the community, both inside and outside the
redevelopment project areas.
8. (Section 107) METHOD OF PROVIDING r.l>.ST RESORT HOUSING
If the Aqency determines to use its funds or the funds authorized
for the Project to provide Last Resort Housing, the Aqency shall, as part of
the Specific Relocation Plan, prepare a plan for producing such Last Resort
Housing. The Plan shall specify:
1. How, when, and where the housing will be provided;
2. How the housing will be financed and the amount of funds to be
diverted to such housing;
3.
The prices at which the housing will be rented or sold to the
families and individuals to be displaced;
4.
The suitability of the location and environmental impact of the
proposed housing;
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5.
Any referendum or zoning requirements and the appropriate
procedures to be followed:
The Agency may consult or contract with a local housing authority or
other Agency or consulting firm having ezperience in the administration or
conduct of housing programs to provide technical assistance and advise in the
development of the plan for Last Resort Housing.
If comparable replacement dwellings are not available, and the
Agency determines that such housing cannot otherwise be made available, the
Agency shall use funds authorized for the project for which the real property,
or interest thereof, is being acquired to provide such housing.
The Agency may ezpend funds and take such other actions as necessary
to provide, rehabilitate, or construct last resort housing pursuant to an
approved plan for last resort housing through methods including but not
limited to the following:
a. Transfer of funds to state and local housing agencies;
b. Contract with organizations ezperienced in the development, of
housing;
c. Direct development, rehabilitation or construction by the
Agency;
d.
Financing of development, rehabilitation or construction by the
Agency;
e. Provide housing subsidies as permitted by law.
9. (Section 108) EVICTION POLICY
Pursuant to Sections 7260 (B), 7267.3, and 7277 of the California
Government Code, each family, individual, and business concern will be advised
in writing of the Agency's eviction policy. The construction or development
of a public improvement shall be so scheduled that, to the greatest eztent
practiCable, no person lawLully occupying real property shall be required to
move from a dwelling, assuming a replacement dwelling will be available, or to
move his business operation, without at least 90 days' written notice from the
AGency of the date by which such move is required. The Agency will do
everything possible to prevent eviction by a private landlord prior to
acquisition. After Agency acquisition of property, eviction will be carried
out only as a last resort and for one or more of the Lollowing reasons:
1. The failure to pay rent ezcept in those cases where failure to
pay is based upon the Agency's failure to keep the unit in
habitable condition.
2. Use of the rented site for illegal purposes.
3.
A material breach of Rental Agreement.
4.
The refusal by the tenant to accept one of a reasonable number
of referrals to comparable replacement units.
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5.
The eviction is required by State or Local Law, and cannot be
prevented by the Aqency.
10. (Section 109) GRIEVANCE PROCEDURES
Grievance procedures shall be qoverned by the provisions of Section
33417.5 of the California Health and Safety Code, and Section 7266 of the
California Government Code. A relocation appeals board appointed by the mayor
of the City and approved by the leqislative body pursuant to Section 33417.5
of the Health and Safety Code, a City by ordinance may hear appeals on the
eliqibility for, or the amount of, a payment authorized by this chapter.
The San Bernardino Redevelopment Aqency acknowledqes the need for a
riqht of review and qrievance procedures concerninq relocation assistance and
payments. Any person who believes of payment, the failure of the Aqency to
provide comparable permanent or adequate temporary replacement housinq may, at
his election, have his claim reviewed and reconsidered by the Aqency.
Specific qrievance procedures may be obtained by interested persons from the
San Bernardino Redevelopment Aqency, but in qeneral, the steps for the review
of relocation matters are as follows:
a. Formal written request for review is made to the San Bernardino
Redevelopment Aqency Executive Director's authorized representative.
b. A written response is provided to the claimant within thirty (30) days.
c.
If not satisfied with the written
review by the Ezecutive Director.
fifteen (15) days.
response, the claimant may request
Such review must be made within
d. A claimant may then petition review by the Relocation Appeals Board. The
composition of the Relocation Appeals Board may be identified by makinq
such request to the office of the Ezecutive Director.
The Relocation Appeals Board shall consider every aqqrieved person's
complaint reqardless of form, and shall, if necessary, provide assistance
in preparinq the written request for review.
e. All claimants usinq the appeals process retain their riqhts to seek
judicial review.
11. (Section 110) RELOCATION ADVISORY ASSISTANCE
A. Adviso~v Assistance to be Provided bv the Aaenev
The Aqency shall provide relocation advisory assistance to any
resident or business displaced because of the acquisition of real property by
the Aqency.
The relocation advisory assistance to be provided by the Aqency
shall be in compliance with the provisions of Section 7263 of the California
Government Code, and shall include such measures, facilities and/or services
as may be necessary or appropriate in order to:
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. 1.
Fully inform eligible persons as to tbe availability of relocation
benefits and assistance and tbe eligibility requirements tbereof as well
as tbe procedures for obtaining such benefits and assistance 1
2. Determine tbe extent of tbe need of each eligible person for location
assistance 1
3. Assure eligible displaced residents that witbin a reasonable period of
time prior to displacement, to tbe extent tbat it can be reasonably
accomplished, tbere will be available comparable replacement dwellings
sufficient in number and kind for and available to such eligible
residents 1
4. Provide current and continuing information on tbe availability, prices,
and rentals of comparable sales and rental housing, and comparable
commercial properties and locations, and as to security deposits, closing
costs, typical down payments, interest rates and terms for residential
property in tbe areal
s. Assist each eligible, displaced person to complete applications for
payments and benefits;
6. Assist each eligible, displaced resident to obtain and move to a
comparable replacement dwelling;
7.
Assist each eligible, displaced business in obtaining and becoming
established in a suitable replacement location witb a minimum of delay
and loss of earnings;
8. Provide any services required to insure tbat tbe relocation process does
not result in different or separate treatment on account of race, color,
religion, ancestry, national origin, sex, marital status or otber
arbitrary circumstances. Such relocation process shall satisfy tbe
requirements of Title VI of tbe Civil Rights Act of 1964, Title VIII of
the Civil Rights Act of 1968, tbe Unruh Civil Rights Act and tbe
California Fair Housing Law;
9. Supply to eligible persons information concerning federal and state
housing programs, disaster loan and otber programs administered by the
Small Business Administration, and otber federal or state programs
offering assistance to displaced persons;
10. Provide other advisory assistance to eligible persons to minimize tbeir
hardships, such as counseling and referrals witb reqard to housing,
financing, employment, training, hea1tb and welfare;
11. Information all persons who are expected to be displaced about tbe
eviction policies to be pursued in carrying out tbe project.
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12. (Section 111) DETERMINATION OF RELOCATION NEEDS
As soon as practicable fo1lowinq the initiation of neqotiations to
acquire a parcel of real property the Aqency shall interview each e1iqible
person occupyinq such property to obtain infomation upon which to plan for
housinq and other accommodations, as well as counse1inq and assistance needs.
The interview shall be by direct, personal contact, ezcept where repeated
efforts indicate that such contact is Dot possible. The Aqency shall
carefully esp1ain and discuss fully with each person interviewed the purpose
of the interview. The detemination of relocation needs shall be qoverned by
the provisions of Sections 7261, 7262 and 7264 of the California Government
Code.
The Aqency shall endeavor to obtain the fo110winq infomation for
e1iqib1e persons (the items of information obtained by the Aqency is qoverned
by the provisions of Sections 7269.1 and 7276 of the California Government
Code):
1. Infomation on household income.
2. Whether a person is elderly or handicapped.
3. Size of family.
4. Aqe of children.
5.
Location of job and factors 1imitinq accessibility.
6. Area of preferred relocation.
7. Type of unit preferred.
8. Ownership or tenant preference.
9. Need for social and public services, special and other
services.
10. Eliqibility for publicly assisted housinq.
11. With reference to the present:
a. the rent paid;
b. type and quality of construction;
c. number of rooms and bedrooms;
d.
_ount of habitable 1ivinq space;
e.
10cational factor inc1udinq, amonq others, public and
commercial facilities (inc1udinq transportation and
schools) and neiqhborhood conditions (including municipal
services).
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12. Such other matt.r. that conc.rn a household a. its memb.rs
contemp1at. r.10cation.
13. (Section 112) RELOCATION SITE OFFICE
Th. Ag.ncy may. a. it deem. nec...ary. ..tab1i.hed a .ite office
which i. acc...ib1. to all ar.a re.id.nt. and bu. in..... who may he di.placed
to provide r.10cation a..i.tanc.. Any .uch offic. .ha11 he .taffed with
train.d and/or .xp.ri.nc.d r.10cation per.onn.1. Offic. hour. .ha11 be
.chedu1ed to accommodat. per.on. unable to vi.it the office during normal
busin... hour.. Th. Agency may a1.0 make provi.ion for me.ting with di.placed
per.ons in their homes or place. of bu.ine...
14. (Section 113) CONTRACTING FOR RELOC~ION SERVICES
Th. Agency may ent.r into a contract with any individual. firm.
a.sociation. corporation or gov.rDmBntal agency having an ..tab1i.hed
organization for conducting r.10cation a..i.tance programs. for the purpo.e of
providing r.10cation advi.ory a..i.tance.
15. (Section 114) UPDATE OF RELOC~ION PLANS
In the .v.nt of delay in implementation of a Specific Relocation
Plan pr.pared by the Agency. .uch Supplemental Relocation Plan .ha1l be
updated annually. In addition. the Agency .ha1l maintain its General
Relocation Plan in a manner to reflect current law. procedures. and
circumstances.
16. (Section 115) TEMPnv~RY MOVES
Code. the
housing.
dwelling.
Pur.uant to S.ction. 33412 and 33411.4 of the H.a1th
Ag.ncy may r.10cat. di.p1ac.d re.ident. to t.mporary
Such hou.ing .hal1 m.et the .tandards of an adequate
and Saf.ty
rep1ac.ment
replacement
The Agency .hall minimiz.. to the greatest .ztent feasible. the use
of temporary rep1ac.ment hou.ing.
Prior to any t.mporary move. the Ag.ncy .hal1 determine and provide
written a.surance to each di.p1aced r..ident that:
a. Comparable r.p1acement dwelling will be made available at the
.arlie.t po..ible time. and to the .ztent r.a.onably
practicable no 1at.r than twelve (12) month. from the date of
the move to the temporary replac.ment housing.
b. Pur.uant to S.ction. 33411.4 and 33412 of the Health Safety
Code. comparable r.placement dwelling. will he mad. available.
on a priority ba.i.. to the individual or family who has been
temporarily rehoused.
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c.
The move to temporary replacement housiDg will not affect a
claimant's e1iqibi1ity for any replacement dwe11iDg units that
would have been made available and costs of a temporary move
will not be considered as all or a part of relocation payments
to which a displaced resident is entitled.
d. If a project plan anticipates moves back into housinq
accommodations in the project area, the resident who has been
temporarily displaced will be qiven priority opportunity to
obtain such housinq accommodations.
e. The Aqency will pay all costs in connection with the move to
temporary replacement housinq, inc1udiDg increased housinq
costs.
,
16. (Section 116) RELOCATION PAYMENTS AND PLAN FOR DISBURSEMENT
Pursuant to Sections 7262, 7263, and 7264 of the California
Government Code, relocation benefits will be paid to those displaced by the
relocation project activities.
a)
Whenever a proqram or project to be undertaken by the Aqency
will result in the displacement of any person, the displaced
person is entitled to payment for actual movinq and related
ezpenses as the Aqency determines to be reasonable and
necessary.
1. Actual and reasonable ezpenses in movinq himself or
herself, his or her family, business operation, or his or
her, family's personal property.
2.
Actual direct losses of tSDgib1e personal property as a
result of movinq or discontinuinq a business, but not to
exceed an amount equal to the reasonable ezpenses that
would have been required to relocate the property, as
determined by the Aqency.
3.
Actual and reasonable ezpenses in searchinq for a
replacement business not to exceed one thousand dollars
($1,000) .
4.
Actual and reasonable ezpenses necessary to re-establish a
displaced nonprofit orqanization, or small business at its
new site, but not to exceed ten thousand dollars ($10,000).
b)
Any displaced person e1iqib1e for payments who is displaced
from a dve11inq and who elects to accept the payments
authorized by this subdivision in lieu and dislocation
allowance which shall be determined accordinq to a scheduled
established by the head of the Aqency. The schedule shall be
consistent with the REsidential Movinq Expense and Dislocation
Allowance Payment Schedule established by Part 24 of Title 49
of the Code of Federal Requ1ations.
o
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c)
Any displaced person who moves or discontinues his or her
business and elects authorized by subdivision (a), shall
receive a fized relocation payment in an amount equal to the
average annual net earninqs of the business, ezcept that the
payment should not be less than one thousand dollars ($1,000)
nor more than twenty thousand dollars ($20,000). A person
whose sole business at the displacement dwelling is the rental
of the property to others shall not qualify for a payment under
this Subdivision.
d) Whenever the acquisition of real property used for business
causes the person conducting the business to move from other
real property, or to move his or her personal property from
other real property, the person shall receive payments for
moving and related ezpenses under subdivision (a) or (b) and
relocation advisory assistance under Section 7261 for moving
from the other property.
e) Whenever the Agency must pay th cost of moving a displaced
person under paragraph (1) of subdivision (a), or Subdivision
(d) ;
1. The costs of the move shall be ezempt from regulation by
the Public Utilities Commission.
2.
The Agency may solicit competitive bids from qualified
bidders for performance.
In addition to the payments required by Section 7262, the Agency as a part of
the cost of acquisition, shall make a payment to the owner of real property
acquired for public use which is improved with a dwelling actually owned and
occupied by the owner as permanent or customary and usual place of abode for
not less than 180 days prior to the initiation of negotiation for the
acquisition of that property.
An amount not to ezceed $22,250.00 towards the purchase of a replacement
dwelling for an owner/occupant providing he or she occupies the replacement
unit.
The amount, if any, which, when added to the acquisition cost of the dwelling
acquired by the Agency equals the reasonable cost of a comparable replacement
dwelling acquired by the Agency was encumbered by a bonafide mortgage which
was a valid lien on the dwelling for not less than 180 days immediately prior
to the initiation of negotiations for the acquisition of the dwelling.
Reasonable eEpenses incurred by the displaced owner for evidence of title,
recording fees, and other closing costs incident to the purchase of the
replacement dwelling, but not including prepaid ezpenses. The additional
payment authorized by Section 7263 shall be made only to a displaced owner who
purchases and occupies a decent, safe and sanitary replacement dwelling within
a year from the later of the following:
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1.
The date the displaced person receives final payment for the
displacement dwellinq, or in the case of condemnation, the date the
full amount of estimated just compensation id deposited in court.
2. The date the displacinq aqency fulfills its obliqation to make
available at least one comparable replacement dwellinq to the
displaced person. The period can be eztended by the aqency for qood
cause.
It is the intent of the Aqency that special consideration be qiven to the
financinq and location of a comparable replacement dwellinq for displaced
persons 62 years of aqe or older.
The benefits to be paid to the displaced resident households are qoverned by
Section 7265 and 7265.4 of the GoverDment Code. Briefly, these benefits ate
as follows:
1. Actual movinq ezpenses, or a f1zed movinq payment up to $500.00 for
each residential household.
2. An allowance for tenants up to $5,250.00 to assist in their rentinq
of a comparable rental unit. These funds may also be used as a down
payment for the purchase of a housinq unit.
3.
An amount, not to ezceed $22,250.00 towards the purchase of a
replacement dwellinq for an owner/occupant providinq he or she
occupies the replacement unit.
4. Actual movinq and related ezpenses payment for a displaced
business. This includes such costs as cartaqe, reinstallation of
fiztures and equipment, reprintinq of stationary, reinstallation of
all leased equipment and a payment of up to $500.00 for time spent
searchinq for a replacement site.
5. A displaced business may elect to file for an in lieu of Actual
Movinq and related Ezpenses Payment. Providinq all eliqibility
requirements are satisfied, the payment may be from $2,500.00 to
$10,000.00.
18. (Section 117) DEFINITIONS
The followinq definitions are in compliance with the definitions
provided by Section 7260 of the GoverDment Code and Section 33411.2 of the
Health and Safety Code.
For purposes of this plan, the followinq definitions will apply.
a. Acauisition
"Acquisition" means obtaininq ownership or possession of real
property by purchase, eminent domain, or any other lawful means.
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b.
AdeGuat.e Rft"lar!eIllADt. DwRllino
"Adequate replacement dwelling" means a dwelling which meets all of
the criteria for a comparable replacement dwelling, ezcept that with
respect to the number of rooms, habitable living space and type of
construction the dwelling need be only adequate, not comparable.
c. Business
"Business" means any lawful activity, ezcept a farm operation,
conducted primarily:
1. For the purchase, sale, lease, or rental of personal and
real property, and for the manufacture, processing, or
marketing of products, commodities or any other personal
property;
2. For the sale of services to the public;
3. By a nonprofit organization; or
4.
Solely for the purpose of this plan and these Rules and
Regulations, for assisting in the purchase, sale, resale,
manufacture, processing or marketing of products,
commodities, personal property or services by the erection
and maintenance of an outdoor advertising display, whether
or not such display is located on the premises on which
any of the above activities are conducted.
o
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o
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d. Comparable Replacement DwellinQ
.Comparable replacement dvelling- ..ans a dvellin;
which aatisfies .ach of ~he following .tandards:
J. Decent', .afe, .nd .anitary, and co~arable ~o
the acquired dwelling with respect to aueber
of roo.s, habitable Jiving apace and type and
quality of construction, but not Jes.er in
rooms or Jiving apace ~an necessary ~o aCCom-
edate ~e di.placed residentr
. ....
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2.
In an area not lubjected to unreasonable adVerse
.~vironmental conditions from either natural or
aan-.ade aources, and not ,enerally Jess desirable
than the acquired dwelling with respect to public
utilities, public and co.mercial facilities and
neighborhood conditions, including aChools and muni-
cipal aervices, and reasonably accessible to the ~is.
placed resident'a present or potential place of employ.
.ent; provided that a potential place of employment
may not be uled to aatisfy the accelsibility require-
ment if the displaced resident Objects.
It is not required that the replacement dvellin;
be generally as desirable el the acquired dvellling
with respect to environmental characteristics. ~hough
a displaced resident does not have to accept a dwelling
subject to unreasonable adverse environmental conditions,
neither is the Agency required to duplicate environ-
mental characteristics, luch as acenic vistas or prox-
imity to the ocean, lakes, rivers, forests, or other
natural phenomena.
Available on the private ..rket to the,displaced
resident and available to all re,sidents regardless of
race, color, religion, ancestry, national origin, aex
or ..rital Itatus 1n a ..nner consistent with f.deral
and Itate lawl
3.
.
4. Within the financial ..ans of the displaced resident.
A replacement dvelling is within the financial means
o! a displ.ced resident if the monthly housing cost
(including p.yments for aortgage, insurance and pro.
perty taxesl or rent. 1 cost (including utilities and
other reason.ble recurring expenses I , ainus any replace-
ment housing p.yaent available to ~e resident, does
not exceed ~e .... proportion of ~e resident'. aver-
age monthly income as il currently being experienced
in the City by per.ons at the dilPl.ced resident's income
level
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e. Qeoent. Safe and SanitarY Dwel1ina
"Decent, safe and sanitary dwelling" _ans a
dwelling which i. in sound, clean and weather-tight
condition, in qOOd repair and adequately aaintained,
in conforaance with the applicable state and local
building, plWlbing, electrical, bousing and
occupancy codes or similar ordinanc_ or requlations
and wbich aeets the following miniaum standards:
1. Each bOusekeeping unit sball include a kitchen
with a fully usable sink, a stove or connection
for a stove, a separate and complete bathroom,
bot and cold running water in both bathrOOIl and
Kitchen, an adequate and safe wiring system for
ligbting and other electrical .ervices and
beating as required by cliaatic conditions and
local codes.
2. Elch hon-housekeeping unit shIll be in con-
foraance with stlte and 10cIl .tandw~ds,for
bOlrdinghouses, hotels and other dwellings
for congreglte living.
o
f. Oispllced Per.on
.Oi.pllced per.on- ~e.ns any person who ~oves from real
property, or who ~oves his per.onll property from rell
property, as a result of:'
.
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1. ~he acquisition of such re.l property, In
whole or In part, by the Agency or by any
person having an agreeme~t wltn or ac~ng on
behalf of the Agency; or
2. A written order from the Agency to vacate
the real property.
~his definition shall be construed so that persons dis-
pl.ced as a result of Agency action receive benefits in
clses where they are displlced as a result of an owner
partiCipation agreement or an aCQuiSition carried out
by . privlte person for or in connection with. public
use where the Agency is otherwise empowered to acquire
the property to carry out the public-use.
A utility-which relocltes its poles, posts, wires,
conduits,'cables, pipes, lines and hecessary fixtures
and equipment located In, along, or under any public
street, rOld or highwlY as the ~esult of activities
in the implementltion of a redevelopment plan 1s not I
displaced person.
g. OisPllced Mesident
.Displaced resident- ~elns any individuIl or family
,OCcuplnt of a dwelllng who qUllifies as a displaced
Der&on.
o
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o
h. Dwel1ina
o
Dwellinq" means the place or permanent or customary
and usual abode of a person, includinq a sinqle-
family buildinq, a sinqle family unit in a
tWO-family dwellinq, multifamily or aulti-purpose
dwellinq, a unit of a condominium or cooperative
bousinq project, a nonbousekeepinq unit, a mobile
bome or any other residential unit whicb eitber is
considered to be real property under state law or
cannot be moved without substantial damaqe or
unreasonable cost. A residence need not be decent,
safe and sanitary to be a dwellinq.
A second bome sball be considered a dwellinq only
for the purpose of establisbinq eligibility for
payment.
1. Family
.Family" ..ans two or aore individuals. ~e 0'
whom is the bead of a household, plus .11 other
individuals reg.rdless of blood or leg.l ties
who live vith and are considered a part of the
family unit.
~. t.st ~esort KousinQ
"L.st resort bousing" ae.ns comparable replacement
dwellings provided by the Agency vith its funds
or funds authoriled for the project bec.use com-
par.ble repl.ce..nt dwellings vill not otherwise
be available as Deeded.
Lest resort housing as berein defined does Dot refer
to "replacement dwelling unit" as that term is used
and defined in Section )3411. 2(cJ of the California
Community Redevelopment Law.
.
~. Nonprofit Oroanil.tion
;
"Nonprofit org.niz.tion" ..ans a corporation,
partnership, individu.l or other public or private
entity, eng.ged in a business, professional or
institutional activity on a Don-profit basi.,
Deees.itating fixtures, equipment, stock in trade,
or other tangible property for the carrying on
of the ~u.ines.. profession Dr institutional
activity on the premiaes.
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L. Person
.Person- ~ans any individual. faeily. partner-
ship. corporation or a..ociation.
H. Personal Property
.Perlonal property. ..ans ~anglbJe property Which
is lituated on the ~eal property vacated or to be
vacated by a dilplaced perlon and Which il Considered
per.onal property and il non-compenlable (other thin
for ~ving .xpenles' under the atate lav of .minent
domain.
In the case of a ~.nant. ,.rsonal property includes
fixtures and equlp..nt. and other property Which ..y
be characteri.ed al ~.al property under .tate or local
lav. but Which the ~enant ..y lavlully and at his
election deteralne ~ eove, and for Which the tenant
11 not coapenlated tn.the ~aal propertyacquilition.
In the case of an owner of real property. the deter-
mination a. to whether an item of property is personal
or reaJ shall depend upon how it il identified in
the closing or settJement Itatement with respect to
the real property ac~uisition.
.
o
~. Post-AcquiSition ~enant
-Post-acquisition tenant- means a tenant who laWfUlly
commences to occupy property only after the Agency
acquires it.
O. ~enant
.renant- ..ans a person who rents or is otherwise in
Jawful possession of a dwelling. includin; a .Jeeping
room. which is ovned by another.
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ATTACHMENT NO. 9 - TERMS, CONDITIONS AND LIMITATIONS OF
1990 SINGLE FAMILY MORTGAGE REVENUE BONDS
Interest Rate:
Term of Mortgage Loan:
Bond Issue Points:
closing Costs:
Last Day to Originate
Mortgage Loans:
Income Limitations:
Purchase Price Limitations:
Other Limitations:
Assumption:
7.95%
30 years
4-1/2%
Normal and customary
Approximately February 1,
1993
3 or more persons in a
household 115% of
California median income;
2 or less persons in a
household 100% of
California median income
$157,200 new dwelling
units; $129,400 existing
dwelling units
(i) First time
homebuyers; (ii)
recapture provision
bellcurve peaks at 6-1/4%
of original principal
balance in 60th month -
and no recapture after
120th month
Yes
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ATTACHMENT NO. 10 - SCHEDULE OF DISBURSEMENT OF DEVELOPER FEES
MILESTONE
AMOUNT TO
BE
RELEASED
APPROXIMATE DATE
Close Phase I Escrows !$ 72,000 Escrows w~ll close before
construction loan. Amount due
when construction loan funds.
Construct~on loan recorded and
property bank loans retired 78,000 March 1992
Bu~ld~ng Fees Pa~d 23,700 March 1992
Phase 1 Demol~tion 4,200 Apr~l 1992
phase 1 Construct~on Approx~mately
176,880 6% with each draw for period of
approximately 5/92 to 10/92
Close of Phase 2 escrows 58,020 December 1992
0: 2 Demol~t~on 1,800 December 1992
2 Construct~on Approx~mately
176,820 6% with each draw for period of
approximately 1/93 to 6/93
~alance of fee if any upon 6/93
pertificate of occupancy for
hase 2 units
otal $591,456
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DRAFT
Attachment No. 11
Low- and Moderate-Income Housing Fund
Program Restrictions of the EDA
Applicable to the Empire Bay Project
(1) The following defined terms shall be applicable for purposes
of these Program Restrictions as adopted by the EDA in
furtherance of Section 501 of the OPA.
(a) "affordable housing costs" shall mean a monthly payment or
payments of combined principal, interest, taxes, mortgage
insurance premiums,
homeowner's association fees and
homeowner's casualty insurance that does not exceed the
monthly amount calculated in the manner as set forth below for
each income level:
(i) verv low income households
one-twelfth (1/12) of 33-1/3%
times 50% of area median income
adjusted for family size
(ii) moderate income households
one-twelfth (1/12) of 33-1/3%
times 80% of area median income
adjusted for family size
o 10131191
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(iii) lower income households
one-twelfth (1/12) of 33-1/3%
of area median income adjusted
for family size
(b)
"area median income" shall mean that income level adjusted for
family size from one (1) to eight (8) individuals as announced
from time-to-time by either the state or federal government
and as shall be utilized by the County of San Bernardino for
the administration of County housing assistance activities; as
of July, 1991, the area median income for the city of
San Bernardino is $36,000 for a household of four ~persons
o (c) "income limitations" shall mean those income limits determined
from time-to-time for the original purchasers and subsequent
purchasers of the Units and the Relocation Units, and
thereafter for a period of time equal to (i) ten (10) years
from and after the date of the initial sale of a Unit or
Relocation Unit by the Developer with regard to the granting
of the Basic Assistance and (ii) fifteen (15) years with
regard to any Relocation unit or Unit that has received a
second deed of trust financing from the Agency as follows:
o 10131191
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Relocation Unit - very low income households
2 bedroom Unit - moderate income households
3 bedroom unit - lower income households
The term "income limitations" as defined and used herein,
unless otherwise required by the context in which used, shall
also include the requirement that each homeowner shall not
purchase a Unit or a Relocation Unit in excess of affordable
housing costs as determined for each particular prospective
homeowner as applicable to each initial purchaser and each
subsequent purchaser.
(d) "lower income households" shall mean persons and families
o earning a gross income not in excess of the area median income
adjusted for family size
(e)
"moderate income households" shall mean persons and families
earning a gross income not in excess of eighty percent (80%)
of the area median income adjusted for family size
(f)
"persons and families of low or moderate income" shall mean
persons and families earning a gross income not in excess of
one hundred twenty percent (120%) of the area median income
adjusted for family size, including very low income
households, lower income households, persons and families of
o 10131/91
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c:> low income, and persons and families of moderate income and
middle-income families
(g) "purchase price limits" shall mean a maximum purchase price to
be calculated separately for each homeowner that can be paid
by (i) each original purchaser not in excess of the limits set
forth in (8) hereof and (il) each subsequent purchaser who
purchases (i) within a lO-year period from the initial close
of escrow of the Relocation units by very low income
households, the approximately~two-bedroom Units by moderate
income households and the approximately 65 three-bedroom Units
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by lower income households with respect to the Agency having
granted the Basic Assistance or (ii) within a l5-year period
<:) from the initial close of escrow of Relocation Units or Units
for which the Agency has provided second deed of trust
financing_
The maximum purchase price to be calculated
separately for each homeowner at any time for any of the three
(3) income levels shall be determined by the following
formula:
MP - maximum mortgage payment shall be the combined monthly
principal and interest remaining as a component of the
monthly affordable housing cost when the following items
calculated on a monthly basis have been subtracted from
the monthly affordable housing costs: taxes, mortgage
0" 10131191
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010 'V'T 'Tl"'" .,.
Xi::.I"<U.>\ I t:.L.t:.IjUI-' I t:.K .::::to.. f {- f f- f f. f f. f f f:.
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P.1
NOV 01 '91 10:03AM SO& GREEN
, ..."
'"J
iNlurance premia., hoaeowner '. a..ociation fee. and
homeowne~'. ca.ualty in.uranca
IR - Bither the actual intere.t rate on any mon,age ~
proc;ra that 18 obtained froa any Ilovermgntal or
aonventional lencUnll .ource applicable to the Relocation
unit. o~ the 'Unit. which .hall be tunded tR .ach
- .
purcha.er of the Relocation Unit. and the Unit. or, if no
auch progra i. then in .xiatenCle tor the "location
Unit. and the Unit. in their- entirety R tor a particular
"location 'Unit or Unit, then the intere.t ~ate on
comparable mortgaqe loans that are r_.onably available
in the City of San Bernardino for- the "location Unit.
and the Unit. for fixed rate mortqaqe., or the e.timated
averall8 interest rate on a variable rate mori::9aqa or a
9Z'aduated payment 1lI0rtllaq8. inClluct1,Di' the W 8\l1:lfli.L.-
approved by the Federal Roae Loan Bank
T - tana of the mortqaqa in total number of aonthly payment.
on ~arable mortqaqe loan. that are rea.onably
available in the City of San Bernardino for the
Relocation Unit. and the Unit.
10111"1
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0 0
0 MA- mortgage amount is the present value figure obtained by
the application of the following calculation method:
MP (monthly payment)
}
T (number of payment periods) } = MA (present value)
IR (interest rate)
}
The purchase price limit is then obtained as follows:
MA ($87,712) + .95 = Purchase Price Limit
The following example illustrates the intent of the EDA to
implement "affordable housing costs", "income limitations" and
"purchase price limits":
o
income limitation - moderate income household
area median income =
factor =
income limitations
$38,000
80%
$30,400
for family of four
for family of four
affordable housing costs - $30,400.00
factor = 33%
10,123.20/yr
+12
$ 843.60/month
less housing costs
(except P&I)
monthly amount available
for P&I $
182.00/month
661. 60
o 10/31191
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0 Therefore:
MP = $661. 60
IR = 7.5%
T = 30 Years
MA = $94,620
MA J$94,620~+ .95 - $99,600 Purchase Price Limit
The applicable restrictions as to each purchaser under this
assumed scenario are summarized as follows:
o
if $38,000 is the area median income for a family
of four, then income limitation is $30,400 for a
moderate income household with four family members
such household shall not pay more than $843.60 per
month for principal, interest, taxes, mortgage
insurance premiums, homeowner's association fees
and homeowner's casualty insurance
if the actual taxes, mortgage insurance premiums,
homeowner's association fees, and homeowner's
casualty insurance were $182/month, then $661.60 is
available for mortgage P&I
O. 10131/91
purchase price limit is $99,600
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c:> provided, however, that a homeowner may sell a Relocation Unit or
a unit at the greater of the amount calculated above or the initial
purchase price~ncreased by a factor equal to the actual annual
inflationary rate based upon th4LOS Anqeles-Anaheim-RiverSlde
Consumer Price Index.for each year or portion thereof from the date
of purchase until such resale occurs.
(h) "Relocation Units" shall have the same meaning as defined in
the OPA
(i) "units" shall have the same meaning as defined in the OPA
(j) "very low income households" shall mean households earning a
<:) gross income that is not in excess of fifty percent (Sot) of
the area median income adjusted for family size
(2) $1,400,000
of
Basic
Assistance
shall
be
applied
proportionately on a per unit basis as to each of the 118
Units or such greater or lesser number as is finally approved
by the City of San Bernardino ($1,400,000 + 118 Units '"
$11,865/Unit).
The actual per unit amount will be
recalculated at such time as the City of San Bernardino has
finally approved the actual number of units to be constructed
on the site. The per Unit amount as thus calculated will be
applicable for purposes of Section 313, 501 and 714 of the
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o Agreement in the event there is failure to comply with Section
501 thereof.
(3) Under Health and Safety Code Section 33334.3(f) (2), the EOA is
required to ensure that an owner-occupied single family
residence that has received financial assistance in some form
from the Low- and Moderate-Income Housing Fund is committed to
remaining available at affordable housing costs to persons and
families of low or moderate income and very low income
households for at least ten (10) years unless a portion of
such assistance is repaid to the EOA as set forth in either
(4) or (6) below.
o (4) The pro rata Basic Assistance for each Unit shall be repaid to
the EOA in accordance with the following schedule in the event
a Unit is resold at any time within ten (10) years from the
initial close of escrow to a subsequent household that is not
a moderate income household for the approximately 53 two-
-
bedroom Units or is not a lower income household for the
approximately 65 three-bedroom Units, or if either of such
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type Unit is sold at a sales price in excess of the purchase
price limits to be calculated for such subsequent purchaser
within ten (10) years from the initial close of escrow, or if
a Unit is no longer an owner-occupied dwelling Unit.
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. Year through
Conclusion of
Anniversarv Date
Percentage of Basic
Assistance Foraiven
Amount to
Be ReDaid
0-1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9
9-J.2,
10 years
0%
6%
12%
18%
24%
30%
40%
52%
66%
82%
100%
$11,865.00
11,153.10
10,441.20
9,729.30
9,017.40
8,305.50
7,119.00
6,169.80
4,034.10
2,135.70
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after
Any amounts to be repaid by a then current owner upon resale
shall be subject to the following:
(i) to a non-qualifying
person (i.e., a person or household having income in excess of
the income limitations), at a price not in excess of the
c:> purchase price limit and not in excess of affordable housing
costs assuming that a sale were to have occurred with a
qualifying person (Le., one who complies with the income
limits) for a particular Unit, shall be paid upon close of
escrow in the full amount that is owed for the particular year
in which the sale occurs from all sales proceeds available to
the seller upon such close of escrow, exclusive only of
reasonable and customary closing costs and sales expenses, and
0" 10131/91
if such amount is insufficient to reimburse the EDA in full,
then additional amounts shall be paid by the purchaser to
compensate for any deficit; (ii) to a qualifying person (i.e.,
one who complies with the income limitations) in excess of
affordable housing costs and in excess of the purchase price
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limits, shall be paid upon close of escrow not in excess of
the full amount that is owed for the particular year in which
the sale occurs from adjusted net sales proceeds available to
the seller upon close of escrow ("net sales proceeds" shall
mean amounts remaining for the account of the seller upon
close of escrow after the following costs have been paid:
reasonable and customary closing costs and sales expenses;
first mortgage loan principal repayments; second mortgage loan
principal repayments; "adjusted net sales proceeds" shall mean
net sales proceeds less the costs of any verifiable capital
improvements, exclusive of any maintenance repair costs and
expenses that have been completed by the seller of a unit
which were required to either preserve the value of a Unit or
to increase the value thereof for which amounts where paid by
an owner to unrelated third parties for labor and materials);
provided, however, that in the event the adjusted net sales
proceeds are insufficient to repay the EOA in full, any such
unpaid balance shall be forgiven by the EOA; or (iii) to a
non-qualifying person (Le., a person or household having
income in excess of the income limitations), at a price in
excess of affordable housing costs and in excess of the
purchase price limit assuming that a sale were to occur to a
qualifying person for the particular Unit, then the provisions
of (i) above shall apply.
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(5)
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Upon a unit no longer being considered as an owner-occupied
dwelling Unit, the owner thereof shall be required to repay
the EDA immediately upon demand the amount set forth on Page
10 determined as of the date when such Unit was no longer
owner-occupied.
Notwithstanding the above, the EDA may elect on a case-by-case
basis and in its sole discretion to waive any or all
repayments of the pro rata Basic Assistance upon any or all
sales of a Unit in excess of the income limitations or the
purchase price limitations
The grant deed to the initial purchaser and to each subsequent
purchaser who qualifies both as to income limitations,
including limitations as to affordable housing costs, and
purchase price limits shall contain the requirement that upon
each sale within ten (10) years from the date of the initial
close of escrow for the Unit, the EDA must approve in writing
each subsequent sale if it is the intent of a seller that the
income limitations, including limitations as to affordable
housing costs, and/or the purchase price limits shall apply to
the next succeeding purchaser. As required by Section 501 of
the Agreement, the Developer shall provide that the grant deed
also contain a provision that requires the payment of amounts
determined pursuant to (4) above in the event any sale within
the 10-year period is to a purchaser who exceeds the income
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limitations, including limitations as to affordable housing
costs, or to a purchaser at a sales price in excess of the
purchase price limits.
(6) The EDA shall provide to certain eligible home purchasers, as
set forth in (7) hereinafter, secondary financing in the form
of a note and second deed of trust secured by the Relocation
Unit or a Unit, as applicable, but for which no monthly
principal and interest payments will be made during the term
of the note. Such note shall be paid solely upon a sale of a
Relocation Unit or a Unit to a subsequent owner if sold within
fifteen (15) years to a household that does not comply with
both (i) the then applicable income limitations, including the
limitations as to affordable housing costs, and (ii) the then
applicable purchase price limits as (i) and (ii) shall be
determined individually for each particular purchaser. Such
subordinate notes may be assumed by a subsequent purchaser
upon written approval of the EDA provided that any subsequent
purchaser complies at the time of purchase with both the
income limitations, including the limitations as to affordable
housing costs, and the purchase price limits. Upon any sale
within said lS-year period by a then current owner as a seller
to a purchaser and at a sales price that does not comply with
either the income limitations, including the limitations as to
affordable housing costs, or the purchase price limits, such
seller shall be required to repay the EDA the remaining
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principal balance of such note in accordance with the
following schedule and at the rate of interest applicable in
the year and when the sale occurs calculated on a per annum
basis against the principal portion to be repaid from the date
of the initial close of escrow until the date of payment.
Year through
Conclusion of
Anniversarv Date
Percentage of Original
Note Balance to be
ReDaid
Applicable
Interest
Rate
o
0-1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9
9-10
10-11
11-12
12-13
13-14
14-15
after year 15
100%
93-1/3%
86-2/3%
80%
73-1/3%
66-2/3%
60%
53-1/3%
46-2/3%
40%
33-1/3%
26-2/3%
20%
13-1/3%
6-2/3%
0%
10.0%
9.5%
9.0%
8.5%
8.0%
7.5%
7.0%
6.5%
6.0%
5.5%
8.0%
4.5%
4.0%
3.5%
3.0%
.0%
(e.g., if a Unit for which the EDA made a $5,000 loan secured
by a second deed of trust were sold at 2-1/2 years after the
original close of escrow (after the second anniversary date
but prior to the third anniversary date), $4,333.33 ($5,000 x
86-2/3%) would be repaid plus $975 interest (9% x $4,333.33 =
$390/yr x 2-1/2 years = $975) for a total repayment of
$5,308.33)
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In the event a Relocation Unit or a Unit is no longer owner-
occupied, the owner thereof shall be required to repay the
secondary financing in a similar manner as provided in (4)
above.
(7) The EDA shall fund note as secured by second deeds of trust
under the following parameters:
o 10131191
(a) eligible households -
(i) very low income household; and
(ii) moderate income households
DQt available for lower income households
(b) maximum loan -
(i) $10,000 per very low income household
(ii) $12,500 per moderate income household
(c) homeowner must have a cash down payment from non-EOA and
non-governmental grant or loan sources of at least 5% of
actual purchase price; governmental funds, grants,
refunds or other payments received by a homeowner which
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were designated as compensation or reimbursement without
the explicit purpose of being intended for down payment
assistance shall not be subject to this limitation
(d)
homeowners who earn an annual income equal to the income
limitation for very low income households and moderate
income households, as applicable, will be eligible for
such EDA secondary financing if necessary to comply with
qualifying standards imposed by a particular lender
seeking to fund a first mortgage loan for such homeowner
(e) the actual amount of the EDA secondary financing will be
in such dollar amount so as to enable a homeowner earning
less than the applicable income limitation to purchase a
Unit or a Relocation Unit not in excess of the applicable
purchase price limit and at affordable housing costs to
qualify for long term mortgage financing that would be
available to such homeowner. The intent of the secondary
financing as shall be offered by the EDA is to enable
homeowners to qualify to the extent necessary for the
purchase of Units and Relocation Units when (i) such
homeowners earn less than the maximum income limits or
_(ii) such homeowners who earn amounts equal to the
maximum income limits and are required to have monthly
payments reduced in order to comply with the affordable
housing costs requirements hereof.
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NOV I'll '91 11'l:I'l3F1M sa & GREEN-~_
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o fa) The initial .al. by the Developer of the Relocation uni" and
the unit. to qualifyinq hOllleowner. .hall I:Ie at ..1.. prices not in
exoess ot the fOllowing:
U Relocation Units -.&u..iaa.
..,U.2-Be4room Units - ~
..,.U,..3-Bedrooa Units - ~
All auoh sales aust oomply with the inoOllle 1~~~1on. contained
herein and each hoaeowner shall not pay aonthly payment. 1n excess
of ~fordable houdng coate for any of the Relocation Unit. or the
Unit. a. of the date of the purcha.. by the initial hoa.owners.
IBIO\IIllOlIDoclm
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