HomeMy WebLinkAboutR31-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco, Director
Housing and Community Development
SUBJECT:
REQUEST APPROVAL TO ENTER
INTO A HOME CHDO AGREEMENT
WITH HABITAT FOR HUMANITY, SAN
BERNARDINO AREA, INC.
DATE:
August 28,2001
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SvnoDsis of Previous Commission/Council/Committee Action(s):
On June 21, 2001, the Redevelopment Committee recommended that this item be sent to the Community Development
Commission for approval.
Recommended Motion(s):
(Communitv DeveloDment Commission)
MOTION:
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO APPROVING AND AUTHORIZING (I) THE EXECUTIVE DIRECTOR OF THE
AGENCY TO EXECUTE A HOME PROGRAM COMMUNITY HOUSING DEVELOPMENT
ORGANIZATION (CHDO) AGREEMENT (FISCAL YEAR 2000-2001) BY AND BETWEEN
HABITAT FOR HUMANITY, SAN BERNARDINO AREA AND REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO (DEVELOPMENT OF THREE (3) SINGLE FAMILY
HOMES) AND (2) MAKING CERTAIN FINDINGS OF ENVIRONMENTAL EXEMPTION
Contact Person(s): Gary Van Osdel/Maggie Pacheco
Phone:
663-1044
Project Area(s) Northwest (NW)
Ward(s):
Six (6)
Supporting Data Attached: (;'I Staff Report iii Resolution(s) iii Agreement(s)/Contract(s) 0 Map(s) 0 LetterlMemo
FUNDING REQUIREMENTS Amount: $ $60,000
Source:
Acct: 80460 I 099/HOME/CHDO Funds
SIGNATURE:
Budget Authority:
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Maggie Pacheco, Director
Housing and Community Development
Commission/Council Notes:
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MP:MA:lag:09-17-01 Habitat
COMMISSION MEETING AGENDA
Meeting Date: 09/17/2001
Agenda Item Number:
R.3J
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ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Reauest AODroval to Enter Into a HOME CHDO Al!reement with
Habitat For Humanity. San Bernardino Area. Inc.
BACKGROUND
Habitat for Humanity is an international organization known for building homes for low-income
families both locally and overseas. Since 1993, the local chapter has built thirteen (13) homes
benefiting and creating homeownership opportunities for 13 families in the San Bemardino
County area. Habitat will also commence development of a two (2) bedroom, two (2) bath home
in August 2001 in the City of San Bemardino on 23rd and "G" Streets for a pre-qualified family.
The home built in the City of San Bemardino is located at 284 South Allen Street and was built
in 1994. The other homes have been built in the cities of Fontana, Redlands, Loma Linda and
Highland. The other cities have contributed either free land and other financial assistance.
CURRENT ISSUE
Habitat for Humanity, San Bernardino Area, Inc., will be developing three (3) additional single
family homes for lower income pre-qualified families on two lots they own on 19th Street (see
attached map).
Habitat has obtained financial commitments of $69,787 for each unit, which will be used towards
the construction of the three (3) single-family homes. These funds are contributions received
from the local chapters, and the Intemational Chapter of the Lion's Club and in-kind labor. The
total estimated construction cost per home including required City permits and inspections is
$85,000. There is an estimated financial gap of between $15,000 - $20,000 per home. Any
unforeseen cost is expected to be covered by Habitat through contribution from other local
partners that have supported Habitat projects in the past. Habitat is seeking Agency assistance to
cover the gap per home. Habitat anticipates construction of the homes to start in September of
2001 and completed in December 2001.
Habitat acts as the lender and carries the note and deed of trust on all homes it builds. The
homes are sold to low-income (50% of area median income), pre-qualified families at cost, with
no interest. To date, all thirteen (13) homes in its portfolio are current with no defaults. Eligible
families are screened and educated on homeownership responsibilities and property
maintenance.
The Agency is a recipient of HOME Partnership Act funds and is required to set aside 15% of
the funds to assist local Community Housing Development Organizations (CHDO's) to build
decent and safe homes in the City. Habitat for Humanity has submitted and met all the
requirements for CHDO designation.
MP:MA:lag:09-17-01 Habitat
COMMISSION MEETING AGENDA
Meeting Date: 09/17/2001
Agenda Item Number: A-
Economic Development Agency Staff Report
Habitat for Humanity
July 12, 2001
Page Number -2-
As a result, staff recommends granting financial assistance of up to $20,000 per home to Habitat
for Humanity for a total not-to-exceed $60,000 towards the construction of three single family
homes in the City.
The completed homes will be owner occupied for a minimum period of 10 years per a Covenant,
Condition and Restriction Agreement (CC & R) between the Agency and Habitat. These
CC&R's will assist the Agency in meeting its housing goals in the Consolidated Plan, the
Housing Element and Affordable Housing Plan.
ENVIRONMENTAL
The action requested is exempt under the National Environmental Policy Act (NEPA). Any
California Environmental Quality Act (CEQA) actions will be addressed as part of Habitat's
submission of plans, specifications and plan check to the City's Development Services
Department.
FISCAL IMPACT
Funds are available in the HOME budget fiscal year 2000 (Acct. #804601099).
RECOMMENDATIONS
That the Community Development Commission adopt the attached Resolution.
Maggie Pacheco, . ector
Housing and Community Development
MP:MA:lag:09-17-01 Habitat
COMMISSION MEETING AGENDA
Meeting Date: 09/17/2001
Agenda Item Number: R.31
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RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING (I) THE
EXECUTIVE DIRECTOR OF THE AGENCY TO EXECUTE A HOME PROGRAM
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) AGREEMENT
(FISCAL YEAR 2000-2001) BY AND BETWEEN HABITAT FOR HUMANITY, SAN
BERNARDINO AREA AND REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO (DEVELOPMENT OF THREE (3) SINGLE FAMILY HOMES) AND (2)
MAKING CERTAIN FINDINGS OF ENVIRONMENTAL EXEMPTION
WHEREAS, Habitat for Humanity San Bernardino Area, a California non-profit
corporation (the "Participant") known locally and internationally for building affordable homes
for low and moderate income households, has requested financial assistance in the amount of
$60,000 from the Agency in developing three (3) owner occupied single family homes in the
City; and
WHEREAS, pursuant to the request, the Participant has obtained $69,787 per unit for
the development of three (3) affordable owner occupied single family homes for low income
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households on the Property identified as: APN 0144 06117 and APN 0144 06119 (the "HOME
Project") specifically located on 19th Street; and
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WHEREAS, it is proposed that the Agency shall provide certain City HOME Program
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Funds to Participant and the HOME Project, as set fourth under the terms of the Agreement.
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NOW THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE
OMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO,
S THE GOVERNING BOARD OF THE REDEVELOPMENT AGENCY OF THE CITY OF
AN BERNARDINO, AS FOLLOWS:
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Section 1. A detailed description of the HOME Project is set forth in the HOME
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Agreement.
',,-, Community Development Commission ("Commission") hereby reserves the sum of not-to-
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Section 2. Subject to the terms and conditions of the HOME Agreement, the
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exceed Sixty Thousand Dollars ($60,000.00) in fiscal year 2000 and 2001 CITY HOME CHDO
Funds, as approved and budgeted in the Agency budget by the Commission for such purposes,
for the use and application by the Participant for the HOME Project.
Section 3. The Commission hereby finds and determines that the approval of the HOME
Agreement, and the disbursement of the City HOME/CHDO Fiscal Year 2000 and 2001
Program funds administered by the Agency for the HOME Project as reserved for the
Participant under Section 2 of this Resolution, requires no further environmental assessment
under the provisions of the National Environmental Protection Act in view of the categorized
exemption applicable to the HOME Project as set forth at 24 CFR Part 58.35(c)(2). The
Commission further finds and determines that the approval of the HOME Agreement, and the
disbursement of the City HOME/CHDO Program fiscal year 2000 and 2001 funds by the
Agency as reserved for the HOME Project under Section 2 of this Resolution requires no further
environmental assessment by the Commission under the provisions of the California
Environmental Quality Act in the view of the exemption found at Public Resources Code
Section 21080.14 (affordable housing for lower income persons in urbanized areas). The
Executive Director of the Agency is hereby authorized and directed to prepare the appropriate
forms of written notice of the determinations of categorical exemption for the HOME Project as
t 8 provided for in this Section 3.
SECTION 4: The Commission hereby approves the form of the HOME Agreement as
presented at the meeting at which this Resolution is adopted. The Executive Director of the
Agency is hereby authorized and directed to execute the HOME Agreement on behalf of the
Agency, together with such technical and conforming changes as may be recommended by the
Agency Counsel. The Executive Director of the Agency is further authorized and directed to
execute all ancillary and related documents and agreements subject to the terms and conditions
as set forth therein.
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SECTION 5: This Resolution shall become effective immediately upon its adoption.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO APPROVING AND AUTHORIZING (1) THE EXECUTIVE
DIRECTOR OF THE AGENCY TO EXECUTE A HOME PROGRAM COMMUNITY
HOUSING DEVELOPMENT ORGANIZATION (CHDO) AGREEMENT (FISCAL YEAR
2000-2001) BY AND BETWEEN HABITAT FOR HUMANITY, SAN BERNARDINO
AREA AND REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
(DEVELOPMENT OF THREE (3) SINGLE FAMILY HOMES) AND (2) MAKING
CERTAIN FINDINGS OF ENVIRONMENTAL EXEMPTION
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Community Development Commission of the City of San Bemardino at a
meeting thereof, held on the day of ,2001, by the following vote to wit:
Commission Members:
Abstain
Absent
Navs
Ayes
ESTRADA
LIEN
MCGINNIS
SCHNETZ
SUAREZ
ANDERSON
MC CAMMACK
Rachel G. Clark, City Clerk
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The foregoing resolution is hereby approved this
day of
,2001.
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Judith Valles, Chairperson
Community Development Commission
City of San Bernardino
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By:
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2001
REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO
HOME PROGRAM DEVELOPMENT AGREEMENT OF
THREE (3) SINGLE FAMILY
OWNER OCCUPIED UNITS
2000-01 HOMEICHDO FUNDS
(HABITAT FOR HUMANITY, SAN BERNARDINO AREA PROJECT)
This 2001 HOME Program Development Agreement (the "HOME Agreement") is dated as of
September _ 2001 by and between the Redevelopment Agency of the City of San Bemardino
(the "Agency") and Habitat for Humanity, San Bemardino Area, a Califomia non-profit
corporation (the "Participant"). The Agency and the Participant hereby agree as follows:
RECITALS
I.
The Agency is a community redevelopment agency engaged in carrying out its public
purposes including increasing, improving and preserving the supply of affordable
housing in the City of San Bernardino (the "City"). The Agency is the administrator of
the HOME Program described at 24 Code of Federal Regulations part 92 et seQ. on behalf
of the City. HOME Program funds have been made available to the Agency to promote
and enhance the community's supply of affordable housing; and
2. The Participant is a well-established non-profit Community Housing Development
Organization (CHDO), housing provider, that has the experience and qualifications to
undertake the HOME Project, as described in 4 below, of this HOME Agreement; and
3. The HOME Project shall be undertaken by the Participant on vacant property owned by
Participant as more specifically described in Exhibit "A" (collectively the "HOME Lots")
as herein provided;
4. The proceeds of the HOME Project Grant as shall be provided by the Agency in the sum
of Sixty Thousand Dollars ($60,000) shall be used and applied by the Participant,
together with the funds received from the Habitat Project Sponsor and other Participant
funds, if any, in the amount sufficient to pay for the construction of the HOME Project as
defined below:
(i)
the design, construction and installation of three (3), three (3) bedroom,
two (2) bathroom new single family residential structure (including an
attached garage) on the HOME Lot, (the "New Home"), consisting of
approximately 1,050 square feet of interior living area, including
exterior landscape amenities;
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(ii)
marketing and sale of the completed New Home at a maximum purchase
price for the New Home (including the HOME Lot) that does not exceed
95 percent of the median purchase price for the areas as set forth at 24
CFR Part 92.254(a)(2)(iii); and
(iii) the New Home shall be acquired by a homebuyer whose family qualifies
as a low-income family (the "Qualified Homebuyer") and who shall also
covenant to the agency that the New Home shall be used and occupied
as the principal residence of the Qualified Homebuyer for ten (10) years
following the date of initial occupancy of the New Home by the
Qualified Homebuyer.
The elements of the HOME Project are more fully described in the HOME
Project description attached hereto as Exhibit "B".
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
COVENANTS HEREIN CONTAINED, THE AGENCY AND THE PARTICIPANT AGREE
AS FOLLOWS:
SECTION 1. - PURPOSE OF THE HOME AGREEMENT
The purpose of this HOME Agreement is to effectuate various redevelopment plans for the City
and to implement the HOME Program of the City of San Bernardino (24 Code of Federal
Regulations Part 92 et sea,) by providing Agency assistance to the Participant in connection with
the implementation of the HOME Project. The construction of the HOME Project pursuant to
this HOME Agreement is in the vital and best interests of the City and the health, safety and
welfare of its residents, and in accord with the public purposes and provisions of applicable state,
federal and local laws. The Community Development Commission, acting as the governing
board of the Agency has determined that the implementation of the HOME Project as
contemplated by this HOME Agreement will benefit the low- and moderate-income housing
needs of the City, the various redevelopment project areas of the City, and assist the City with
the implementation of the HOME Program and the goals and objectives ofthe Consolidated Plan
and the affordable housing programs of the Agency.
SECTION 2 - EFFECTIVE DATE AND PRELIMINARY CONDITIONS FOR
DISBURSEMENT OF HOME PROJECT GRANT
(A) This HOME Agreement shall take effect upon approval by the governing board of the
Agency and the full execution by the parties.
(B) Participant shall submit an itemized budget and costs supporting each expenditure
associated with the HOME Project prior to disbursement of the HOME Project Grant by
the Agency.
(C) Concurrently with the submission of a request by the Participant for the disbursement of
the HOME Project Grant under Section 3(b), the Participant shall provide the Agency
with a complete and fully executed copy of the Agreement between the Participant and
Habitat Project Sponsor ("Agreement") evidencing all funds for the HOME Project. The
Habitat Project Sponsor shall provide the Participant with funds which will be used by
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the Participant, together with the HOME Project Grant, to pay for all development costs
associated with the HOME Project. The Participant shall provide the Agency with copies
of all written amendments, modifications and supplements to the Agreement during the
term of this HOME Agreement which effect the development of the HOME Project.
(D)
Concurrently with the delivery of the fully executed copy of the Habitat Project Sponsor
Agreement to the Agency, the Participant shall also provide the Agency with written
evidence of the insurance coverage described in Section 7, below.
(E)
Each of the conditions set forth in this Section 2 shall be satisfied by a date not later than
ninety (90) days following the date of approval of this HOME Agreement by the
governing board of the Agency or this Agreement may be terminated at the discretion of
Agency.
SECTION 3 - HOME PROJECT AND DISBURSEMENT OF THE HOME PROJECT
GRANT
(A) Subject to the satisfaction of the terms and conditions of this HOME Agreement, and
Section 2 above by the Participant, the Agency hereby allocates the sum of up to $20,000
per housing unit for a maximum Sixty Thousand Dollars ($60,000) of Agency Fiscal
Year 2000-01 HOME/CHDO Program funds, as the HOME Project Grant for use and
application by the Participant in connection with the development of HOME Project. No
other source of funds of the City or the Agency are reserved or available for the HOME
r- Project except the funds made available to the Agency under this Agreement. The
\...... HOME Project Grant shall be disbursed to the Participant as set forth in this Section 3.
(B) The Participant may request the Agency to disburse the proceeds of the HOME Project
Grant in installments from time-to-time to offset the cost of permits and inspection of the
HOME Project subject to the Participant submitting evidence of other funds and a budget
per Section 2 and more specifically, as follows:
(i) to pay the City when due for the cost of issuance of the various development and
building permits and public facilities capital charges; then
(ii) to pay the San Bernardino Unified School District when due the public facilities
capital charges of such school district; then
(iii) any remaining balance after (i) and (ii) above have been paid may be applied to
pay for the cost of design and construction management and supervision expenses
of the Participant in connection with the development of the homes; provided,
however, that the aggregate amount of all disbursement of the Homes for the
account of the Participant shall not exceed Sixty Thousand Dollars ($60,000)
(C)
The remaining balance of the Home Project Grant, if any, shall be disbursed to pay the
Participant for the HOME Project related costs as set forth in Section 3(b )(iii) within ten
(10) days following the issuance of a certificate to occupy for all of the New Homes by
the City.
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(D) Upon the initial disbursement of the proceeds of the HOME Project Grant, the parties
shall execute and then Participant shall cause to be recorded against the HOME Lot(s) for
which the proceeds are to be applied, a Notice of HOME Project Grant Agreement, in the
form, attached hereto, as Exhibit "C".
SECTION 4. - IMPROVEMENT OF THE NEW HOME
(A) The Participant shall commence the construction and improvement of the Homes on the
HOME Lots within sixty (60) days following the date of all parties execution of the
Agreement and thereafter shall diligently prosecute such work to completion without
interruption.
(B) The Participant shall construct and improve the Homes in a good and workmanlike
manner and shall complete the construction of the Homes within six (6) calendar months
following the date of execution of the Agreement by all parties, but in any event the
Participant shall complete such by a date not later than June 30, 2002.
(C) The Participant shall not materially modify or change the plans of improvement of the
Homes without first obtaining the approval of the Agency and such approval by the
Agency shall not be unreasonably withheld; provided however, that the proposed
modification or change is consistent with the HOME Program,
(D) During the course of the improvement of the Homes, the Participant shall initiate a
marketing and sale plan for the Homes to a Qualified Homebuyer. The Participant may
establish a lottery system or any other fair and non-discriminatory means for selecting the
Qualified Homebuyer from among those interested persons who have contacted the
Participant for purchase of the Homes. The designation of the Qualified Homebuyer by
the Participant (subject only to income, credit and household size verification and other
HOME Program eligibility requirements by the Participant) shall be final and conclusive.
(E) At the time of sale of the Homes to the Qualified Homebuyers, the Participant shall cause
the Qualified Homebuyer to execute the HOME Regulatory Covenant substantially in the
form as attached. The Participant shall deliver to the Agency a true and complete set of
New Homes purchase and sale documents, including a buyer's and seller's escrow
closing statement, within ten (10) days following the close of the "New Home Escrow",
as this term is defined in the HOME Regulatory Covenant.
(F) The Participant hereby agrees and covenants to exercise its best reasonable efforts to
cause the completed New Homes to be sold to, and occupied by, Qualified Homebuyers
within sixty (60) days following the date of the issuance of a certificate of completion for
the New Home by the City but in all events by a date not later than eighteen (18) months
following the date of approval of this HOME Agreement by the governing board of the
Agency.
(G) At the time of sale of the New Homes to the Qualified Homebuyers, the Participant shall
provide the Qualified Homebuyers with a general contractor's warranty that the
improvements of the New Home (including mechanical equipment) are free from defects
and have been installed in a good and workman-like fashion,
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(H) The Participant hereby covenants and agrees to use the net sales proceeds realized by the
sale of the New Homes to the Qualified Homebuyers (after the discharge of the permitted
construction lender lien and payment of permitted development costs) for the affordable
housing development purposes of the Participant, as a community housing development
organization, for other affordable housing improvement projects in the City of San
Bernardino. Participant shall provide the Agency with written confirmation that it is in
compliance with this covenant annually, until the tenth (10th) anniversary following the
date of approval of this HOME Agreement.
SECTION 5 - REPRESENTATIONS AND WARRANTIES OF PARTICIPANT
The Participant hereby represents and warrants to the Agency as follows:
(i) Participant is a Califomia non-profit corporation duly organized and eXlstmg and
authorized to transact business in Califomia and the Participant has previously qualified
as a "501(c)(3)" tax exempt entity under applicable federal tax laws;
(ii) Participant is a "community housing development organization" ("CHDO"), as this term
is defined at 24 CFR Part 92.2, and the Participant shall continuously maintain its status
as a CHDO during the term of this HOME Agreement;
(iii) The corporate charter and by-laws of the Participant authorize the Participant to
undertake the HOME Project and the governing board and membership of Participant
have previously taken all action necessary to authorize the execution of this HOME
Agreement by the Participant; and
(iv) The Participant is qualified and has the financial strength to undertake and complete the
HOME Project.
SECTION 6 - HOME PROGRAM OCCUPANCY RESTRICTIONS
(A) The HOME Project shall be reserved for occupancy by Qualified Homebuyers with an
annual household income of not more than 80% of the area median income adjusted for
family size subject to the provisions of the HOME Program Regulatory Agreement and
Property Use Covenant (the "Covenant"), herein attached as Exhibit "D".
SECTION 7 - COMMERCIAL GENERAL LIABILITY INSURANCE AND
WORKMANS' COMPENSATION INSURANCE
(A) The Participant shall obtain and keep in force during the term of this HOME Agreement a
commercial general liability policy of insurance with coverage at least as broad as
"Insurance Services Office Commercial General Liability Form (GOOOI)", including but
not limited to insurance against assumed contractual liability under this HOME
Agreement protecting the City and the Agency and the officers, employees and agents of
each of them, as additional insureds against claims for bodily injury, personal injury and
property loss or damage based upon, involving or arising out of the HOME Project.
Such insurance shall be on an occurrence basis providing single limit coverage in an
amount not less than One Million Dollars ($1,000,000) in the event of bodily injury,
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(B)
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personal injury and property loss or damage to any number of persons per occurrence.
The policy shall not contain any intra-insured exclusions as between insured persons and
organizations, but shall include coverage for liability assumed under this HOME
Agreement as an "insured contract" for the performance of the indemnity obligations of
the Participant to the City and the Agency. The limits or exclusions from coverage of
such insurance shall not however limit the liability of the Participant nor relieve the
Participant of any other obligations under this HOME Agreement. All insurance to be
carried by the Participant shall be primary to and not contributing to any single insurance
carried by the City or the Agency whose insurance shall be considered excess insurance
only.
To the extent required by the law, the Participant shall carry and maintain workers'
compensation or similar insurance in form and amounts required by law. Such a program
of worker's compensation insurance shall include coverage of all "volunteers" and
"students" and "apprentices" of the Participant who perform any work on the HOME
Project.
All insurance which the Participant shall carry or maintain pursuant to this Section shall
be in such form, for such amounts, for such periods oftime as the Agency may require or
approve and shall be issued by an insurance company or companies authorized to do
business in Califomia and which maintains during the term of the policy a "General
Policy Holder's Rating" of at least A (v), as set forth in the most current edition of
"Best's Insurance Guide". In no circumstance will the Participant be entitled to assign to
any third party rights of action which the Participant may have against the Agency or the
City. All policies or endorsements issued by the respective insurers for commercial
general liability insurance will name the city and the agency and the officers, employees
and agents of each of them, as additional insureds and provide that: (i) any loss shall be
notwithstanding any act or failure to act or negligence of the Participant or the Agency or
any other person; (ii) no cancellation, reduction in amount, or material change in
coverage thereof shall be effective until at least thirty (30) days after receipt by the
Agency of written notice thereof; and (iii) the insurer shall have no right of subrogation
against the City or the Agency or the officers, agents, or employees of either of them.
(D) The Participant shall deliver or cause to be delivered to the Agency by not later than the
time set forth in Section 2 an endorsement of its commercial general liability insurance
policy evidencing the existence of the insurance coverage required by the Agency and
shall also deliver, no later than thirty (30) days prior to the expiration of any such policy,
a certificate of insurance evidencing each renewal policy covering the same risks.
SECTION 8 - RIGHT OF ACCESS
For the purpose of assuring compliance with this HOME Agreement, representatives of the
Agency and the City as designated by the Agency Executive Director shall have the right of
access to each HOME Site at normal construction hours during the course of construction of the
HOME Project for the purpose of inspection of the work being performed. The Agency shall
hold the Participant harmless from any bodily injury or related damages arising out of the
activities of Agency and the City as referred to in this Section 8, resulting from the gross
negligence or willful misconduct of the City or Agency while on any HOME Site. This Section
8 shall not be deemed to diminish or limit any other right or regulatory power which the City or
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Agency may have by operation of law irrespective of the HOME Agreement. Nothing in this
r- Section 8 shall be deemed to make either the City or the Agency a guarantor of the work of
\.. construction of any HOME Site or thereafter, the operation of the HOME Project by the
Participant.
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SECTION 9 - LOCAL. ST ATE AND FEDERAL LAWS
Participant shall carry out the HOME Project and all related activities on each HOME Site in
conformity with all applicable laws, including all applicable federal and state labor standards as
applicable; provided, however, Participant and its contractors, successors, assigns, transferees,
and lessees are not waiving their rights to contest any such laws and rules or standards.
SECTION 10 - ANTI-DISCRIMINATION DURING THE TERM OF THE HOME
PROJECT
Participant, for itself and successors and assigns, agrees that during the course of implementation
of the HOME Project, Participant shall not discriminate against any Qualified household
employee, applicant for employment, volunteer, student or apprentice engaged in the work of
construction of the HOME Project or the implementation of the HOME Project because ofrace,
color, creed, religion, familial status, sex, disability, national origin or ancestry.
SECTION 11 - PROHIBITION AGAINST TRANSFER OF A HOME SITE ANDIOR
ASSIGNMENT OF HOME AGREEMENT PRIOR TO COMPLETION OF THE HOME
PROJECT
The qualifications and identity of the Participant are of particular concern to the Agency. It is
because of those qualifications and identity that the Agency has entered into this HOME
Agreement with the Participant. No voluntary or involuntary successor in interest of the
Participant shall acquire any rights or powers under this HOME Agreement except as expressly
set forth herein. The Participant shall not assign all or any part of this HOME Agreement or any
rights hereunder without the prior written approval of the Agency, which approval the Agency
may grant, withhold or deny at its reasonable discretion, In the event that such a transfer or
assignment may be permitted by the Agency, the assignee shall expressly assume the obligations
of the Participant pursuant to this HOME Agreement in a writing satisfactory to the Agency. In
the absence of a specific written agreement by the Agency, no such transfer, assignment or
approval by the Agency shall be deemed to relieve the Participant or any other party from any
obligation under this HOME Agreement
SECTION 12 - RIGHT OF AGENCY TO SATISFY OTHER LIENS ON THE HOME
PROJECT
Prior to the completion of the HOME Project and after Participant has received written notice
from the Agency 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 lien or encumbrance on the
HOME Project (or any individual HOME Lot) which is not otherwise permitted under this
HOME Agreement, the Agency shall have the right, but not the obligation, to satisfy any such
lien or encumbrance. Any such sum advanced by the Agency shall be evidenced by a notice of
Agency lien or a security interest in the HOME Project (or any individual HOME Lot).
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SECTION 13 - USES - COVENANTS RUNNING WITH THE LAND
Participant covenants and agrees for itself, its successors, its assigns, and every successor in
interest in the HOME Project and each HOME Lot, that for the period of time set forth in the
Covenant (e.g.: 10 years from the date of execution and recordation for each HOME Lot) (the
"HOME Lot") shall be devoted to and reserved for occupancy solely by a Qualified Homebuyer.
The Covenant is attached hereto as Exhibit "c", The Participant shall insure that each Qualified
Homebuyer executes the Covenant and said Covenant is recorded concurrently upon the close of
each escrow for each HOME Site.
The Participant shall file an annual Certificate of Program Compliance, in a form provided by the
Agency, certifying that the Qualified Homebuyer continues to meet the requirements of the
HOME Program.
The Participant further covenants and warrants that Participant shall undertake the construction
of the HOME Project on each HOME Site in accordance with the standards set forth in this
HOME Agreement. Participant covenants to obtain all necessary permits for the construction of
the HOME Project in conformity with all applicable laws. Failure by the Participant to obtain all
necessary permits before commencing the work on any HOME Site shall be a default under this
HOME Agreement.
The Participant further covenant and warrants that Participant shall cause the General Form of
HOME Program Regulatory Agreement and Property Use Covenant be recorded and enforceable
in favor of and by the Agency in its entire form to meet the requirements of the HOME Program
under this HOME Agreement.
Participant covenants by and for itself and any successors in interest that there shall be no
discrimination against or segregation of any person or group of persons on account of race, color,
creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer,
use, occupancy, tenure or enjoyment of the HOME Lot as improved with the New Home, nor
shall participant itself or any person claiming under or through it establish or permit any such
practice or practices of discrimination or segregation with reference to the selection of a
Qualified Homebuyer for the HOME Lot as improved with the New Home.
SECTION 14 - MAINTENANCE OF EACH HOME SITE AND HOME PROJECT
The Participant for itself, its successors and assigns hereby covenants and agrees that:
(A) The areas of each HOME Lot included in the HOME Project which are subject to public
view (including all paving, walkways, landscaping, exterior signage and ornamentation)
shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear
and tear excepted. In the event that any time following the date of recordation of the
HOME Program Regulatory Agreement, there is an occurrence of an adverse condition
on any area of a HOME Lot which is subject to public view in contravention of the
general maintenance standard described above, (a "Maintenance Deficiency"), then the
Agency shall notify the Participant in writing of the Maintenance Deficiency and give the
Participant thirty (30) days from receipt of such notice to cure the Maintenance
Deficiency as identified in the notice. In the event the Participant fails to cure or
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(B)
(C)
commence to cure the Maintenance Deficiency as identified in the notice. In the event
the Participant fails to cure or commence to cure the Maintenance Deficiency within the
time allows, the Agency may conduct a public hearing following transmittal of written
notice thereof to the Participant ten (10) days prior to the scheduled date of such public
hearing in order to verify whether a Maintenance Deficiency exists and whether the
Participant has failed to comply with the provisions of this Section. If upon the
conclusion of a public hearing, the Agency makes a finding that a Maintenance
Deficiency exists and that there appears to be non-compliance with the general
maintenance standard described above, thereafter the Agency shall have the right to enter
the applicable HOME Lot and perform all acts necessary to cure the Maintenance
Deficiency, or to take other action at law or equity which the Agency may then have to
accomplish the abatement of the Maintenance Deficiency. Any sum expended by the
Agency for the abatement of a Maintenance Deficiency on a HOME Lot authorized by
this Section shall become a lien on that HOME Lot. If the amount of the lien is not paid
within thirty (30) days after written demand for payment by the Agency to the
Participant, the Agency shall have the right to enforce the lien in the manner as provided
in subsection (C), below.
Graffiti, as this term is described in Government Code Section 38722, which has been
applied to any exterior surface of a structure or improvement on a HOME Lot which is
visible from any public right-of-way adjacent or contiguous to such HOME Lot, shall be
removed by the Participant by either painting over the evidence of such vandalism with a
paint which has been color-matched to the surface on which the paint is applied, or
graffiti may be removed with solvents, detergents or water as appropriate. In the event
that such graffiti may become visible from an adjacent or contiguous public right-of-way
but is not removed within 72 hours following the time of such application, the Agency
shall have the right to enter the applicable HOME Lot and remove the graffiti without
notice to the Participant. Any sum expended by the Agency for the removal of such
graffiti from the applicable HOME Lot authorized by this Subsection (B) in an amount
not to exceed $250.00 per entry by the Agency, shall become a lien on the applicable
HOME Lot. If the amount of the lien is not paid within thirty (30) days after written
demand for payment by the Agency to the Participant, the Agency shall have the right to
enforce its lien in the manner as provided in Subsection (C), below.
The parties hereto further mutually understand and agree that the rights conferred upon
the Agency under this Section expressly include the power to establish and enforce a lien
or other encumbrance against the affected HOME Lot, in the manner provided under
Civil Code Section 2924, for sums expended in upholding the maintenance standard
required under Subsection (A) or Subsection (B), including salaries and wages of the
legal staff of the Office of City Attorney and/or Agency Counsel as may be associated
with the abatement of the Maintenance Deficiency or removal of graffiti and the
collection of the costs of the Agency in connection with such action. The provisions of
this Section 12 shall be deemed to preclude the Participant from rehabilitating and
operating the HOME Project on each HOME Lot, provided that such construction and
improvement of the HOME Project complies with the applicable zoning and building
regulations of the City.
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SECTION 15 - EFFECT OF VIOLATION OF THE TERMS AND PROVISIONS OF
THIS HOME AGREEMENT AFTER COMPLETION OF HOME PROJECT
The covenants established in this HOME Agreement shall, without regard to technical
classification and designation, be binding for the benefit and in favor of the Agency, its
successors and assigns, as to those covenants which are for its benefit. The covenants against
discrimination as set forth in Section 10 shall remain in perpetuity. The covenants contained in
this HOME Agreement with respect to the Qualified Residents shall remain in effect on each
HOME Lot for the term as set forth in the HOME Program Regulatory Agreement as applicable
to such HOME Lot. The Agency is deemed the beneficiary of the terms and provisions of this
HOME Agreement and of the covenants running with the land, for and in its own rights and for
the purposes of protecting the interest of the community and other parties, public or private, in
whose favor and for whose benefit this HOME Agreement and the covenants running with the
land have been provided. The Agency shall have the right, if the HOME 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 either in its name or in proceedings intended on
its behalf by the City as successor administrator of the affordable housing covenants of the
Agency, to enforce the curing of such breaches to which it or any other beneficiaries of this
HOME Agreement and covenants may be entitled,
SECTION 16 - [RESERVED - NO TEXTI
SECTION 17 - BREACH AND TERMINATION.
(a) Termination Without Default or Breach Prior to Initial Disbursement of HOME Proiect
Grant to the Particioant. This HOME Agreement may be terminated for the convenience
of either party who is not then in default upon thirty (30) days notice to the other party.
(b) Defaults and Breach - General. Failure or delay by either party to perform any material
term or provision of this HOME Agreement shall constitute a default under this HOME
Agreement; provided however, that if the party who is otherwise claimed to be in default
by the other party commences to cure, correct or remedy the alleged default within thirty
(30) calendar days after receipt of written notice specifying such default and shall
diligently complete such cure, correction or remedy, such party shall not be deemed to be
in default hereunder.
For the purposes of the preceding paragraph, a breach or default by the Participant under the
Agreement with the Habitat Project Sponsor shall be deemed to be a default under this HOME
Agreement.
The party which may claim that a default has occurred shall give written notice of default to the
party in default, specifying the alleged default. Delay in giving such notice shall not constitute a
waiver of any default nor shall it change the time of default; provided, however, the injured party
shall have no right to exercise any remedy for a default hereunder without delivering the written
default notice as specified herein.
Any failure or delay by a party in asserting any of its rights and remedies as to any default shall
not operate as a waiver of any default or of any rights or remedies associated with a default.
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Except with respect to rights and remedies expressly declared to be exclusive in this HOME
r Agreement, the rights and remedies of the parties are cumulative and the exercise by either party
'- of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party.
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In the event that a default of either party may remain uncured for more than thirty (30) calendar
days following written notice, as provided above, a "breach" shall be deemed to have occurred.
In the event of a breach, the party who is not in default shall be entitled to terminate this HOME
Agreement and seek any appropriate remedy or damages by initiating legal proceedings, if
necessary.
If either party incurs attorneys' fees in order to enforce its rights under this HOME Agreement
against the other party, the prevailing party shall be entitled to recover its reasonable attomeys'
fees as set by the court from the other party. For the purposes of this HOME Agreement, the
phrase "reasonable attorneys' fees" shall include without limitation the salaries, overhead and
benefits of the City Attorney for the City of San Bemardino and the attorneys employed in that
public office who are utilized in connection with any action required or taken in connection with
this HOME Agreement.
SECTION 18 - INDEMNIFICATION.
The Participant shall indemnify and hold harmless the Agency and the City and the officials,
officers, employees and agents of the City and the Agency from and against any and all claims or
liability arising from Participant's actions under this HOME Agreement or from the conduct of
Participant's business or from any activity, work or things done, permitted or suffered by
Participant and shall further indemnify and hold harmless the Agency and City and their officers,
employees and agents from and against any and all claims arising from any breach or default in
the performance of any obligation of Participant under the terms of this HOME Agreement
arising from any negligent or wrongful act or omission of the Participant or Participant's agents,
contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and
liability incurred in the defense of any such claim or any action or proceeding brought thereon.
Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any
claims or liabilities, including but not limited to claims pertaining to environmental conditions,
alleged construction defects, or other matters, that may arise as a result of the Participant's
development of any HOME Site,
SECTION 19 - INSPECTION OF BOOKS. RECORDS AND REPORTS.
The Agency has the right at all reasonable times to inspect the books and records of Participant
pertaining to the HOME Project. The Participant shall provide the Agency with a copy of each
written report that will assist the Agency in meeting its reporting requirement to HUD.
SECTION 20 - NOTICE
Any notice, demand, request, consent, approval or communication that either party
desires or is required to give to the other party under this HOME Agreement shall be in writing
and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as
follows:
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Participant:
Habitat for Humanity, San Bemardino Area
PO Box 1550
San Bernardino, Califomia 92373
Attn: Sue Pope
Executive Director
Agency:
Economic Development Agency
of the City of San Bernardino
Attn: Executive Director
201 North "E" Street, Suite 301
San Bernardino, Califomia 92401
SECTION 21 - SUBMISSION OF DOCUMENTS TO AGENCY FOR APPROVAL
Whenever this HOME Agreement requires Participant to submit any document to the Agency for
approval, which shall be deemed approved if not acted on by the Agency within the specified
time, said document shall be accompanied by a letter stating that it is being submitted and will be
deemed approved unless rejected by the Agency within the stated time. If there is not a time
specified herein for such Agency action, Participant may submit a letter requiring the Agency
approval or rejection of documents within thirty (30) days after submission to the Agency or
such documents shall be deemed approved.
The terms, covenants, conditions and restriction of this HOME Agreement shall extend to and
shall be binding upon and inure to the benefit of the successors and assigns of Participant.
SECTION 22 - INCORPORATION BY REFERENCE OF STANDARD HOME
PERFORMANCE COVENANTS
Participant further agrees to submit for inspection and copying all required business records and
HOME Project-related data, as requested by the Agency, upon reasonable notice by the Agency
in order for the Agency to verify compliance by the Participant with the U.S. Department of
Housing and Urban Development (HUD) HOME Program and regulations this HOME
Agreement.
SECTION 23 - MISCELLANEOUS.
This HOME Agreement is executed in three (3) duplicate originals, each of which is deemed to
be an original. This HOME Agreement includes Exhibits A, B, C and D which together with this
HOME Agreement constitute the entire understanding and agreement of the parties. No private
entity shall be deemed to be a third party beneficiary with respect to any provision of this HOME
Agreement. This HOME 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 ofthe subject matter hereof.
If any part or provision of this HOME Agreement is in conflict or inconsistent with applicable
provisions of federal, state, or city laws, or is otherwise held to be invalid or unenforceable by
any court of competent jurisdiction, such part or provision shall be suspended and superseded by
such applicable law or regulations, and the remainder of this HOME Agreement shall not be
affected thereby.
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All waivers of the provisions of this HOME Agreement must be in writing by the Executive
Director of the Agency and the Participant, and all amendments thereto must be in writing by the
Executive Director of the Agency and the Participant, except that the Executive Director of the
Agency may only agree to non-substantive changes hereto with concurrence by Agency Counsel.
Substantial changes to this HOME Agreement shall require the prior approval of the governing
board of the Agency.
This HOME Agreement, when executed by Participant and delivered to the Agency, must be
authorized by the governing body of the Agency and executed and delivered on behalf of the
Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this
HOME Agreement by Participant, or this HOME Agreement shall have no force or effect, except
to the extent that Participant shall consent in writing to a further extension of time for the
authorization, execution and delivery of this HOME Agreement. The date of this HOME
Agreement shall be the date when it shall have been signed by the Executive Director of the
Agency evidence by the date shown next to the authorized signatures of the Agency, below.
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IN WITNESS WHEREOF, the Agency and Participant have executed this HOME
r Agreement as evidenced by the signatures of their authorized officers which appear below.
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By:
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Date:
By:
Title:
By:
Title:
P:\Fonm\Housing Fonm\HOME Forms\Habital HOME CHDO 200I.doc
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AGENCY
Redevelopment Agency of the
City of San Bernardino
By:
Gary Van Osdel,
Executive Director
PARTICIPANT
Habitat for Humanity San Bernardino
Area, A California Non-Profit
Corporation
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EXHIBIT" A"
Legal Description
APN: 14406117 AND 14406119
THE WEST y, OF LOTS 3 AND 6, TRACT 1806, AS PER PLAT RECORDED THEREOF IN
BOOK 26, PAGE 26, RECORDS OF SAID COUNTY.
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ording re~~es~ed by
~cnae: S. Arnold
When Recorded mail ~o:
Michael S. Arnold
J5131 yucaipa Blvd.
y~caipa, CA 92399-4335
Property Desf' ripf~8~ pV
l, l... i of Document Recorded
~w 05 \999asNo~~~~\~6'77'~
on
Mail Tax Statements to:
Habit for Humanity for
San Bernardino Area, Inc.
P. O. BOX 130
San Bernardino, CA 92402
I
Documentary
Trans~e= to
Has not been compared with o~iqif'lal.
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TrCH?9 "l!-er. 'l'i!.~::.._.y_:q~_ O~O....:...:.~:- ;"1;..1....,
501(c) (J) Charitable organization
CORPORATION GRANT DEED
NEAL T. BAKER ENTERPRISES, INC., a corporation organized and existing
, under the laws of the State of California grants to HA5ITAT FOR HUMANITY FOR
SAN BE~~rlRDINO AREA, INC., a non-profit corporation organized and existing
under the laws or the State of California, the following described real
property located in the county of San Bernardino, State of California:
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The West ~ of Lots J and 6,
recorded thereof in Book 26,
County.
Tract 1806, as per plat
page 26, records of said
APN: 14406117 and 14406119
In witness whereof, grantor has caused this deed to be signed by its
duly authorized officer and its corporate seal to be affixed.
Date:
Neal T. Baker'Enterprises, Inc.
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Corporate Seal
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AtQKM.EDGEJlEJlT
STATe OF CAL1'ORNIA
CClJNn Of San Bernardino
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On 4-29-99 ,bef.r.... Jo Ann Markham personollyoppuredNEA.T.IAKEA, pers"""Hy_
~o ~ (or proved to ~ on the basis of s.tilf.ctory ev;dence) to be the person(s) whose neMe(s) is/.re subscribed to the within
''':,strUMnt .and .c:knowledted t"'n he/she/they executecl the ... in hil/her/the;r .uthorized c..~ily(t..). 8nd thet by
~lS/her/th.lr slgnnunCs) on the tnnrwnenc the person(s). or the .,tt.ty upon beh.~f of whiCh 'the penon(s' acted. executed the
Inatrwnent.
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. .JO ~N MARI01AM
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u ._!:aMM. "082722
Z . NOT AAY PlJBlIC . CA~IFORNlA I
- SAN BERNARDINO COUNTY -
I My Comtr<l>.4lO.. b.,;te. Juno 23. 1999 J
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EXHIBIT "B"
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Homes Sites
New Homes Description with Specifications
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HH Habllat
For
Humanity
San Bernardino Area
I'. O. H,), 1.'11
Sail IkrnarJllh'. C.\ 9c.lilc-O 130
(909)J81-42JX
FAX (909)3R 1-::70S
BASIC HOUSE DESCRIPTION WITH SPECIFICATIONS
October 1999
General Description
Houses shall typically have three bedrooms. Two-bedroom houses will also be built when
it appears highly probable that the house will remain useful to the family for a reasonable
number of years. Four-bedroom houses will be built only under special circumstances
and require specific approval of the Board of Directors. An attached carport shall be
built on each house. The addition of a garage must be approved by the Board of
Directors.
The size of the house shall not exceed the following limits unless approved by the Board
of Directors:
Two-bedrooms, I bath, 900 square feet
Three-bedrooms. 1 bath, 1050 square feet
Four-bedrooms, 2 baths, 1200 square feet
Designs will be utilized that are attractive and appropriate for the neighborhood.
Type of Construction
The following is a list of the types of construction and components which will be used:
Monolithic concrete slab on grade
Wood and/or steel frame
Wood, vinyl or aluminum siding
Shingles used on the roof shall be fiberglass reinforced. If donated or discounted
materials are available, the Construction-Committee shall consider alternatives.
Insulation
The walls shall be insulated to a maximum of an R-13 value using batt insulation.
Ceilings shall be insulated to a minimum of an R-30 value using batt insulation or blown-
in insulation.
Windows
Size, placement and type of windows will be considered to minimize heat gain and
maximize ventilation.
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Doors
Exterior doors shall be steel clad or solid core wood. A single cylinder dead bolt and
entry lock shall be provided on the front and rear doors.
Interior doors shall be pre-hung, hollow core doors. Standard bedroom and bathroom
lock hardware shall be provided. The hall bathroom and at least one bedroom must use
doors of 2' -8" width or greater for increased handicapped accessibility.
Heating and Ventilation
The homes shall be provided with a ducted heating system. In addition, Habitat for
Humanity will consider the following energy-efficient features when possible:
. Orientation and window placement of house will be considered to prevent heat gain in
summer and to provide natural ventilation.
. Ceiling fans (option)
A whole house fan and/or evaporative cooler will be installed to cool the house.
Water Heating
A forty gallon natural gas water heater shall be provided with each house.
Kitchen
A 30-inch natural gas range and hood will be installed. A 220-volt range outlet will not
be provided. Appliance color wiII be determined by available supplies and cost.
AII kitchen lighting wiII be fluorescent.
The base cabinets and wall cabinets shall be instalIed in the kitchen area. Cabinet layout
wiII vary with home design, but should include approximately 10-15 linear feet of plastic
laminate counters and white European-style plastic laminate cabinets. The kitchen sink
shaII be a double stainless steel or porcelain on cast iron. A standard duty garbage
disposer wiII be installed.
Bathroom
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Full baths shall include an ultra-low flush commode and a fiberglass tub/shower unit, a 30
to 36" wide vanity cabinet, two towel rods, tissue holder, cultured marble counter with
integral sink, waII mirror and medicine cabinet. All fixtures shall be chrome finish. A
single fluorescent light fixture shall be provided in each bathroom.
Appropriate backing shall be included in the walls to allow future instalIation of grab bars.
A diagram of the location will be made available for future use by the family., Grab bars
will be installed at no additional cost for homeowners with handicapped or elderly family
.- members.
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Washer/ Dryer Space
An area shall be provided for the installation of a clothes washer and dryer in the garage
or utility room. Water supply and drain plumbing shall be provided for the washer.
Natural gas and external vent connections shall be provided for a dryer.
A shelf or cabinet shall be provided for washerl dryer supplies.
Interior Walls
Wall surfaces inside the house shall be finished drywall painted with flat latex paint in
every room except for the kitchen and bathroom. Semi-gloss latex paint will be used in
the kitchen and bathroom and on the doors and molding. Ceiling finish shall be at the
discretion of the Construction Committee. Color will be based on available supplies.
Exterior Walls
The wall covering on the exterior shall be wood siding or the equivalent. Soffits, fascia
boards and trirn shall bc wood. Paint color will be based on available paint supplies.
Window Coverings
Mini blinds will be installed in the bedrooms and on the front facing windows. These will
be a standard white color.
Flooring
Heavy duty vinyl composition flooring tile or standard grade vinyl floors (tiles or sheets)
will be installed in the kitchen, dining area, hall, entry area and bathroom. Low cost,
neutral color carpet and padding will be installed in remaining areas. Good quality used
carpeting can be used at the discretion of the Construction Committee.
Vehicle Parking
A one or two-car carport will be provided with each home dependent on lot dimensions
and home design.
Entrances
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Designs that incorporate a modest, covered porch are encouraged. This is to promote
neighborhood interaction and keep with the nature of the older neighborhoods that
HFHSSA typically builds in. All porch railings and posts shall be painted wood.
At the rear door of the house, a concrete stoop of approximately twenty square feet shall
be provided.
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Fences
Fences are not included as part of the basic house design except when needed to separate
the house from a hazard such as a drainage ditch. railroad track. etc. Existing fences may
be repaired and adapted as necessary.
Electrical
Electrical service will be provided to the home as required by local code. A ceiling fan
with a light shall be installed in the dining room.
Telephone jacks will be placed in the kitchen, living room and the master bedroom. A
coaxial television connection shall be provided in the living room. A standard doorbell
chirne shall be provided. Hard wired smoke detectors will be provided as required by
local code.
Closets
Bedroom clothes closets shall be six feet wide in the master bedroom and four feet wide
in the other bedrooms. Doors will be sliding, painted wood. A linen closet with shelves
and a hall coat closet with bar and shelf shall be provided.
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Water Supply
In addition to the normal plumbing inside the house, a hose bib shall be provided at two
places on the home exterior. One of those hose bibs will be by the concrete driveway.
l,andscaping
Shrubs, plants and trees shall be provided at the front of the house. The front lawn will
be seeded with a drought tolerant variety of grass. An irrigation system will be provided
for the front yard. Xeriscape may be used in place of grass and traditional landscape at
the discretion of the Construction Committee.
Care shall be taken to preserve existing trees and shrubs on lots whenever practical.
Fire Sprinklers
If required by local code, a fire sprinkler system will be installed.
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Exclusions
Certain features and amenities shall be excluded from HFHSBA homes. These exclusions
do not detract from the basic livability of the houses. They are made in order to share
the limited monetary resources with the next Habitat family (i.e., to provide as much
basic housing as possible.) Some of these features and amenities are available'as options
r as a part of the $500 allowance granted families.
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Excludcd fcaturcs include:
f rcezcr
washer
picture windows
window shutters
air conditioning
dryer
paneling
rain gutters
Option Items
HFHSBA has a commitrnent to build houses that are a joy to the family and an assets to
the total neighborhood. To accomplish this, we have set aside a part of the total cost of
the house for the family to decide how THEY would like to personalize their home or
rneet a specific need. The current family budget is $500.
Upon approval of the Board of Directors, the options budget may be increased to $1000
as needed for a family with special needs.
Exception to Criteria
Criteria set down in this document are intended to define the basic HFHSBA house.
Exceptions will be allowed for the following reasons:
1. Materials or equipment of equal or higher quality are donated and have no
financial impact on HFHSBA and prospective owner.
2. Safety or municipal codes require changes.
3. Availability of utilities or other site conditions require minor changes.
4. The selected family has special needs related to health or well being as
recommended by the Family Partnership Committee Chairperson.
5. In the case of an accelerated construction, such as a Blitz Build, HfHSBA
reserves the right to make changes to the criteria in order to implement
scheduling requirements.
6. Other reasons as approved by the Board of Directors.
Modification to Criteria
The criteria shall be reviewed by the Construction Committee at periodic intervals.
Changes shall be recommended to the Board of Directors.
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EXHIBIT "c"
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Notice of HOME Project Grant Agreement
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.1"""" Recoding Requested By
'--' And Wen Recorded Mail to:
Redevelopment Agency of the City of
San Bernardino
201 North "E" Street
Suite 301
San Bernardino, California 92401
(Space Above Line For Use By Recorder)
NOTICE OF HOME PROJECT GRANT AGREEMENT
(Redevelopment Agency of the City of San Bemardino)
TO ALL INTEREST PERSONS, PLEASE TAKE NOTICE:
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Habitat for Humanity, San Bemardino Area, a California corporation (the "Participant") and
the Redevelopment Agency of the City of San Bemardino, a body corporate and politic (the
"Agency") have entered into an agreement entitled "HOME Program Development Agreement"
dated as of September 17, 2001 (the "HOME Agreement").
PLEASE TAKE FURTHER NOTICE that the HOME Agreement affects the use,
improvement and occupancy of property which is described in the legal description attached hereto
as Exhibit "A".
Interested persons may inspect a copy of the HOME Agreement, which is a public record of
the Agency, during the regular business hours of the Agency at the address indicated in the recording
instructions of this instrument which appear above.
Notice given this
day of
, 2001.
PARTICIPANT
Habitat for Humanity, San Bernardino Area, a
California non-profit corporation
By:
Title:
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SB200L26353.1
By:
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[NOTARY JURATS ATTACHED]
SB2001 :26353.\
Title:
AGENCY
Redevelopment Agency of the City of San Bemardino
By:
Executive Director
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EXHIBIT "D"
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HOME Program Regulatory Agreement
and
Property Use Covenant
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Redevelopment Agency of the
City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, CA 92401
Attn: Executive Director
(Space Above Line Reserved For Use By Recorder)
RECORDATION OFTHIS INSTRUMENT
IS EXEMPT FROM ALL FEES AND
TAXES
HABITAT FOR HUMANITY, SAN BERNARDINO AREA
HOME PROGRAM REGULATORY AGREEMENT
PROPERTY USE AND COVENANT
THIS HOME PROGRAM REGULATORY AGREEMENT PROPERTY USE COVENANT,
(the "Covenant") is made and entered into as of , by and between,
the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency")
and HABITAT FOR HUMANITY, SAN BERNARDINO AREA, a California Non-Profit
Corporation (the "Participant"), and (the
"Qualified Homebuyer"), and this Covenant relates to the following facts set forth in
Recitals:
Revised: 08/6/2001
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A.
The Qualified Homebuyer proposes to acquire a single family residence (the "New
Home"), located within the City of San Bernardino (the "City"), from
Habitat for Humanitv, San Bernardino Area to be owned and occupied by the
Qualified Homebuyer as their principal residence. The legal description of the New
Home is attached hereto as Exhibit "A" and incorporated herein by this reference.
B.
The Agency has entered into that certain Grant Agreement (HOME Program)
whereby Habitat for Humanity, San Bernardino Area, Inc., has agreed to provide the
Qualified Homebuyer with certain purchase money mortgage financing for the
acquisition of the New Home by the Qualified Homebuyer subject to certain
conditions, including the terms and conditions of this HOME Covenant; and
C.
The terms of the Agency Grant Agreement mandate that the acquisition, use and
occupancy of the New Home shall be restricted in certain respects for the term as
provided herein (the "Qualified Residence Period") in order to ensure that the New
Home will be used and occupied in accordance with the Agency Grant Agreement
with Habitat for Humanity, San Bernardino Area, Inc., and the affordable single
family residential dwelling unit development goals and objectives of the program set
forth at 24 Code of Federal Regulations Part 92 et sea.; (the "Home Program") as
administered by the Agency.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE
CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY
ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, AND HABITAT FOR HUMANITY,
SAN BERNARDINO AREA, INC., AND THE AGENCY DO HEREBY COVENANT AND
AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS:
Section 1. Definitions of Certain Terms.
As used in this HOME Covenant, the following words and terms shall have the meaning as
provided in the Recitals or in this Section 1 unless the specific context of usage of a
particular word or term may otherwise require:
Adjusted Family Income. The words "Adjusted Family Income" mean the
anticipated total annual income (adjusted for family size) of each individual or
family residing or treated as residing in the New Home as calculated in
accordance with Treasury Regulation 1.167(k) - 3(b)(3) under the Code, as
adjusted, based upon family size in accordance with the household income
adjustment factors adjusted and amended from time to time, pursuant to
Section 8 of the United States Housing Act of 1937, as amended.
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Code. The word "Code" means the Internal Revenue Code of 1986, as
amended, and any regulation, rulings or procedures with respect thereto.
Delivery Date. The words "Delivery Date" mean the date of delivery of title
and possession of the New Home to the Qualified Homebuyer at the close of
the New Home Escrow.
Low Income Family. The words "Low-Income-Family" means persons and
families whose annual income do not exceed 80 percent of the median
income for the area, as determined by the United States Secretary for the
Department of Housing and Urban Development with adjustments for smaller
and larger families, as set forth at 24 Code of Federal Regulations Part 92.2.
New Home. The words "New Home" mean and refer to the affordable
single-family residential dwelling unit (including the land and landscape
improvements thereon) acquired by the Qualified Homebuyer at the close of
the New Home Escrow. A legal description of the New Home is attached to
this HOME Covenant as Exhibit "A".
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New Home Escrow. The words "New Home Escrow" mean and refer to the
real estate conveyance transaction or escrow by and between the Qualified
Homebuyer and the Habitat for Humanity, San Bernardino Area, Inc., (or
later, by and between the Qualified Homebuyer and the Successor-In-
Interest). The transfer of the New Home from the seller to the Qualified
Homebuyer (or later, by and between the Qualified Homebuyer and the
Successor-In-Interest) shall be accomplished upon the close of the New
Home Escrow.
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Notice of Agency. Concurrence. The words "Notice of Agency
Concurrence" mean and refer to the acknowledgment in recordable form in
which the Agency confirms that the proposed Successor-In-Interest of the
Qualified Homebuyer satisfies all of the requirements of this HOME
Covenant and the HOME Program for occupancy of the New Home by the
Successor-In-Interest at any time during the Qualified Residence Period.
Qualified Homebuyer. The words "Qualified Homebuyer" mean the
purchaser of the New Home (e.g.: all persons identified as having property
ownership interest vested in the New Home at the close of the New Home
Escrow). At the close of the New Home Escrow, the Qualified Homebuyer
shall: (i) have an annual Adjusted Family Income which does not exceed the
household income qualification limits of a Low Income Family and (ii) shall be
a first-time home buyer, as provided at 24 CFR Part 92.254 (a)(3).
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Qualified Residence Period. The words "Qualified Residence Period"
mean the period of time beginning on the Delivery Date and ending on the
date which is ten (10) years after the Delivery Date.
HOME Covenant. The words "HOME Covenant" means this
Redevelopment Agency of the City of San Bernardino HOME Program
Regulatory Agreement Property Use and Covenant by and between the
Qualified Homebuyer, Habitat for Humanity, San Bernardino Area, Inc., and
the Agency pertaining to the New Home.
Successor-in-Interest. The words "Successor-In-Interest" means and
refers to the Low Income Family which may acquire the New Home from the
Qualified Homebuyer at any time during the Qualified Residence Period by
purchase, assignment transfer or otherwise. The Successor-I n-I nterest shall
be a Low-Income Family and shall otherwise satisfy the requirements of 24
Code of Federal Regulations Part 92.254(a). Upon acquisition of the New
Home, the Successor-In-Interest shall be bound by each of the covenants,
conditions and restrictions of this HOME Covenant.
The titles and headings of the sections of this HOME Covenant have been inserted for
convenience of reference only and are not to be considered a part hereof and shall not in
any way modify or restrict the meaning any of the terms or provisions hereof,
Section 2. Acknowledaments and Representations of the Qualified Homebuver.
The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery
Date:
(a) the total household income for the Qualified Homebuyer does not exceed the
maximum amount permitted as Adjusted Family Income for a Low-Income Farnily
adjusted for family size;
(b) the Qualified Homebuyer intends to promptly occupy the New Home after the
Delivery Date as the principal place of residence for a term of at leastten (10) years
following the Delivery Date and the Qualified Homebuyer has not entered into any
arrangement and has no present intention to rent, sell, transfer or assign the New
Home to any third party during the Qualified Residence Period so as to frustrate the
purpose of this HOME Covenant;
(c) the Qualified Homebuyer has no present intention to lease or rent any room or
sublet or rent a portion of the New Home to any relative of the Qualified Homebuyer
or to any third person at any time during the Qualified Residence Period;
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(d) the Qualified Homebuyer agrees to provide the Agency with the following items of
information for inspection by the Participant andlor the Agency promptly upon
written request of the Participant or Agency:
(i) State and federal income tax returns filed by all persons who reside in the
New Home for the calendar year preceding the close of the New Home
Escrow for inspection of such State and federal income tax returns;
(ii) current wage, income and salary statements for all person residing in the
New Home at the close of the New Home Escrow;
(e) the Qualified Homebuyer is aware and has been informed prior to the Delivery Date
that this HOME Covenant imposes certain restrictions on the use and occupancy of
the New Home during the term of this HOME Covenant and that this HOME
Covenant imposes certain restrictions on the resale of the New Home during the
Qualified Residence Period. The Qualified Homebuyer acknowledges and
understands that the resale restrictions shall be applicable to the New Home and to
any resale of the New Home from the Delivery Date to the end of the Qualified
Residence Period which is
Dated:
Initials of
Qualified Homebuyer
Section 3. Acknowledament of Subordination of the Provisions of Section 4 and
Section 7 of this HOME Covenant to the Mortaaae Security Interest of the First
Mortaaae Lender.
Concurrently upon the execution and recordation of this HOME Covenant the Qualified
Homebuyer shall obtain certain purchase money mortgage financing for the acquisition of
the New Home from Habitat for Humanitv. San Bernardino Area. Inc.. (the "First Mortgage
Lender"). As of the Delivery Date, the Qualified Homebuyer has provided the Agency with a
true and correct copy of the loan agreement by and between the First Mortgage Lender
and the Qualified Homebuyer, if applicable.
As a condition to providing its mortgage loan to the Qualified Homebuyer, the First
Mortgage Lender requires the Agency to agree that the provisions of Section 4 and Section
7 of this HOME Covenant shall be junior and subordinate to the security interest ofthe First
Mortgage Lender in the New Home of even date herewith.
The Agency hereby acknowledges and agrees that the provisions of Section 4 and Section
7 of this HOME Covenant are subordinate and junior to the security interest of the First
Mortgage Lender in the New Home of even date herewith. No breach or default by the
Qualified Homebuyer of any provision of Section 4 and Section 7 of this HOME Covenant,
nor the exercise by the Agency of any remedy it may have against the Qualified
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Homebuyer in the event of such a breach or default shall affect or render invalid the lien of
the First Mortgage Lender in the New Home. Thus, the First Mortgage Lender and any
good faith purchaser for value from the First Mortgage Lender, its successors and assigns,
including without limitation the United States Secretary of Housing and Urban
Development, if such mortgage has been assigned to the Secretary of Housing and Urban
Development, receiving title to the New Home through a trustee's sale, judicial foreclosure
sale, deed in lieu of foreclosure and any conveyance or transfer thereafter, shall receive
title to the New Home free and clear of the provisions of Section 4 and Section 7 of this
HOME Covenant.
Section 4. Covenant of the Qualified Homebuver to Maintain Affordabilitv of the New
Home Durina the Qualified Residence Period and Covenant Relatina to Sale or
Transfer of the New Home Durina the Qualified Residence Period to a Successor-In-
Interest.
(a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby
covenants and agrees that during the term of the Qualified Residence Period the
New Home shall be used and, occupied by the Qualified Homebuyer as its principal
residence, and that the New Home shall be reserved for sale, use and occupancy
by the Qualified Homebuyer andlor for another Lower-Income Household as a
Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for
itself, its heirs, successors and assigns, further covenants and agrees that, during
the Qualified Residence Period, the Agency shall have the right and duty as
provided in this Section 4 to verify that each proposed Successor-I n-I nterest of the
Qualified Homebuyer in the New Home satisfies the income requirements (based
upon the Adjusted Family Income of a Low-Income Family and that the completion
of any resale or transfer of the New Home to a Successor-In-Interest shall be
subject to the recordation of the "Notice of Agency Concurrence" as provided in
Section 4(d).
(b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants
and agrees that during the term of the Qualified Residence Period the Qualified
Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any
interest therein) at a sale or transfer price which exceeds 95 percent of the median
purchase price for the area as provided in 24 CFR Part 92.25(a)(2)(iii), to a
Successor-In-Interest without first giving written notice to the Agency and without
first obtaining the written concurrence of the Agency as provided herein. At least
sixty (60) days prior to the date on which the Qualified Homebuyer proposes to
transfer title in the New Home to a Successor-in-Interest, the Qualified Homebuyer
shall send a written notice to the Agency as provided in Section 17 of the intention
of the Qualified Home buyer to sell the New Home to a Successor-In-Interest which
includes the following true and correct information:
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(i)
name of the proposed Successor-In-Interest (including the identity of all
persons in the household of the Successor-In-Interest, proposing to reside in
the New Home) together with a completed HOME Program application
executed by the proposed Successor-In-Interest; if the proposed successor-
in-interest intends to use the HOME Program;
(ii) copies of State and federal income tax returns for the Successor-In-Interest
for the calendar year preceding the year in which the notice of intention to
sell the New Home is given to the Agency;
(iii) resale price of the New Home payable by the Successor-In-Interest,
including the terms of all purchase money mortgage financing to be
assumed, provided or obtained by the Successor-In-Interest, escrow costs
and charges, realtor broker fees and all other resale costs or charges
payable by either the Qualified Homebuyer or the Successor-In-Interest;
(iv) name address, and telephone number of the escrow company which shall
coordinate the transfer of the New Home from the Qualified Homebuyer to
the Successor-In-interest;
(v)
appropriate mortgage credit reference for the Successor-In-Interest with a
written authorization signed by the Successor-In-Interest authorizing the
Agency to contact each such reference; and
(vi) such other relevant information as the Agency may reasonably request, as
provided in Section 4(c).
(c) Within thirty (30) days following receipt of the notice of intention described in
Section 4(b), the Agency shall provide the Qualified Homebuyer with either a
preliminary confirmation of approval or a preliminary rejection in writing of the
income and household occupancy qualifications of the Successor-in-Interest. The
Agency shall not unreasonably withhold approval of any proposed sale of the New
Home to a Successor-In-Interest who satisfies the Adjusted Family Income
requirements of a Low Income Family for occupancy of the New Home and for
whom the other information as described in Section 4(b) has been provided to the
Agency. In the event that the Agency may request additional information relating to
the confirmation of the matters described in Section 4(b), the Qualified Homebuyer
shall provide such information to the Agency as promptly as feasible.
(d) Upon its final confirmation of approval of the Adjusted Family Income eligibility of
the Successor-In-Interest to acquire the New Home, the Agency shall deliver a
written acknowledgment and approval of the resale of the New Home to the
Successor-In-Interest in recordable form to the escrow holder referenced in Section
4(b )(iv) above, and thereafter the Successor-in-Interest may acquire the New Home
subject to the satisfaction of the following conditions:
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(i)
the recordation of the Notice of Agency Concurrence executed by the
Successor-In-Interest and the Agency at the close of the resale escrow;
(ii) the escrow holder shall have provided the Agency with a copy of the
customary form of the final escrow closing statement of the Qualified
Homebuyer and the final escrow closing statement for the Successor-In-
Interest; and
(iii) the other conditions of the resale escrow as established by the Qualified
Homebuyer and Successor-In-Interest shall have been satisfied.
(e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants
and agrees that during the Qualified Residence Period the New Home shall not be
leased, subleased, or rented to any third person, except for a temporary period (not
to exceed 12 months) in the event of an emergency or other unforeseen
circumstance as may be expressly approved in writing by the Agency subject to
compliance during the temporary rental period with the reasonable temporary rental
occupancy conditions required by the Agency. The Qualified Homebuyer shall
submit a written request to the Agency prior to the commencement of the temporary
occupancy, as practicable, but in any event within not more than (60) days following
the commencement of a temporary rental occupancy of the New Home by a third
party, which notice shall set forth the grounds on which the Qualified Homebuyer
believes an emergency or other unforeseen circumstance has occurred and that a
temporary rental occupancy is necessary.
Section 5. Maintenance Condition of the New Home.
The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and
agrees that:
(a) The exterior areas of the New Home which are subject to public view (e.g.: all
improvements, paving, walkways, landscaping, and ornamentation) shall be
maintained in good repair and a neat, clean and orderly condition, ordinary wear
and tear excepted. In the event that at any time during the term of the Qualified
Residence Period, there is an occurrence of an adverse condition on any area of
the New Home which is subject to public view in contravention of the general
maintenance standard described above, (a "Maintenance Deficiency") then the
Agency shall notify the Qualified Homebuyer in writing of the Maintenance
Deficiency and give the Qualified Homebuyerthirty (30) days from the date of such
notice to cure the Maintenance Deficiency as identified in the notice. The words
"Maintenance Deficiency" include without limitation the following inadequate or non-
confirming property maintenance conditions and/or breaches of single family
dwelling residential property use restrictions:
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failure to properly maintain the windows, structural elements, and painted
exterior surface areas of the dwelling unit in a clean and presentable
manner;
failure to keep the front and side yard areas of the property free of
accumulated debris, appliances, inoperable motor vehicles or motor vehicle
parts, or free of storage of lumber, building materials or equipment not
regularly in use on the property;
failure to regularly mow lawn areas or permit grasses planted in lawn areas
to exceed nine inches (9") in height, or failure to otherwise maintain the
landscaping in a reasonable condition free of wed and debris;
parking of any commercial motor vehicle in excess of 7,000 pounds gross
weight anywhere on the property, or the parking of motor vehicles, boats,
camper shells, trailers, recreational vehicles and the like in any side yard or
on any other parts of the property which are not covered by a paved and
impermeable surface;
the use of the garage area of the dwelling unit for purposes other than the
parking of motor vehicles and the storage of personal possessions and
mechanical equipment of persons residing in the New Home.
In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance
Deficiency within the time allowed, the Agency may thereafter conduct a public hearing
following transmittal of written notice thereofto the Qualified Homebuyer ten (10) days prior
to the scheduled date of such public hearing in order to verify whether a Maintenance
Deficiency exists and whether the Qualified Homebuyer has failed to comply with the
provision of this Section 5(a). If, upon the conclusion of a public hearing, the Agency
makes a finding that a Maintenance Deficiency exists and that there appears to be non-
compliance with the general maintenance standard, as described above, thereafter the
Agency shall have the right to enter the New Home (exterior areas only) and perform all
acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity
the Agency may then have to accomplish the abatement of the Maintenance Deficiency.
Any sum expended by the Agency for the abatement of a Maintenance Deficiency as
authorized by this Section 5(a) shall become a lien on the New Home. Ifthe amount ofthe
lien is not paid within thirty (30) days after written demand for payment by the Agency to
the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner
as provided in Section 5(c).
(b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous
to the New Home shall be removed by the Qualified Homebuyer from any exterior
surface of a structure or improvement on the New Home by either painting over the
evidence of such vandalism with a paint which has been color-matched to the
surface on which the paint is applied, or graffiti may be removed with solvents,
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detergents or water as appropriate. In the event that graffiti is placed on the New
Home (exterior areas only) and such graffiti is visible from an adjacent or contiguous
public right-of-way and thereafter such graffiti is not removed within 72 hours
following the time of its application; then in such event and without notice to the
Qualified Homebuyer, the Agency shall have the right to enter the New Home and
remove the graffiti. Notwithstanding any provision of Section 5(a) to the contrary,
any sum expended by the Agency for the removal of graffiti from the New Home as
authorized by this Section 5(b) shall become a lien on the New Home. If the
amount of the lien is not paid within thirty (30) days after written demand for
payment by the Agency to the Qualified Homebuyer, the Agency shall have the right
to enforce its lien in the manner as provided in Section 5(c).
The parties hereto further mutually understand and agree that the rights conferred
upon the Agency under this Section 4 expressly include the power to establish and
enforce a lien or other encumbrance against the New Home in the manner provided
under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably
necessary to restore the New Home to the maintenance standard required under
Section 5(a) or Section 5(b), including attorneys fees and costs of the Agency
associated with the abatement of the Maintenance Deficiency or removal of graffiti
and the collection of the costs of the Agency in connection with such action. In any
legal proceeding for enforcing such a lien against the New Home, the prevailing
party shall be entitled to recover its attorneys' fees and costs of suit. The provisions
of this Section 5, shall be a covenant running with the land for the Qualified
Residence Period and shall be enforceable by the Agency in its discretion,
cumulative with any other rights or powers granted by the Agency under applicable
law. Nothing in the foregoing provisions of this Section 5 shall be deemed to
preclude the Qualified Homebuyer from making any alterations, additions, or other
changes to any structure or improvement or landscaping on the New Home,
provided that such changes comply with the zoning and development regulations of
the City and other applicable law.
Section 6. [RESERVED/NO TEXT]
Section 7. Foreclosure of Purchase Monev Mortaaae Loan of the First Mortaaae
Lender and Aaencv Riaht of First Refusal.
(a) During the Qualified Residence Period the Agency shall have the right (but not the
obligation) to bid on the purchase of mortgage loan lien of the First Mortgage
Lender secured by the New Home at the time of any trustee foreclosure sale or any
judicial foreclosure sale.
(b) During the Qualified Residence Period the Agency shall have the right of first refusal
to purchase the New Home from the Qualified Homebuyer on the same terms which
the Qualified Homebuyer may propose to offer the New Home for resale to a
Successor-In-Interest. The Agency must exercise such a right of first refusal within
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thirty (30) days following written notification of the intention of the Qualified
Homebuyer to resell the New Home, and if the Agency accepts the offer in writing
within such time period the Agency shall be bound to complete the purchase of the
New Home strictly in accordance with the offer. Thereafter the Agency shall pay the
"resale price" to the Qualified Homebuyer and close an escrow for the transfer of
the New Home to the Agency within sixty (60) days following written notification of
the intention of the Qualified Homebuyer to resell the New House.
Section 8. Covenants to Run With the Land.
The Qualified Homebuyer and the Agency hereby declare their specific intent that the
covenants, reservations and restrictions set forth herein are part of a pian forthe promotion
and preservation of affordable single family housing within the territorial jurisdiction of the
Agency and that each shall be deemed covenants running with the land and shall pass to
and be binding upon the New Horne and each Successor-in-Interest of the Qualified
Homebuyer in the New Home for the term provided in Section 10. The Qualified Home-
buyer hereby expressly assumes the duty and obligation to perform each of the covenants
and to honor each of the reservations and restrictions set forth in this HOME Covenant.
Each and every contract, deed or other instrument hereafter executed covering or
conveying the New Home or any interest therein shall conclusively be held to have been
executed, delivered and accepted subject to such covenants, reservations, and restrictions,
regardless of whether such covenants, reservations and restrictions are set forth in such
contract, deed or other instrument.
Section 9. Burden and Benefit.
The Participant, the Agency and the Qualified Homebuyer hereby declare their
understanding and intent that the burden of the covenants set forth herein touch and
concern the land in that the Qualified Homebuyer's legal interest in the New Home is
affected by the affordable single family dwelling use and occupancy covenants hereunder.
The Agency and the Qualified Homebuyer hereby further deciare their understanding and
intent that the benefit of such covenants touch and concern the land by enhancing and
increasing the enjoyment and use of the New Home by the intended beneficiaries of such
covenants, reservations and restrictions, and by furthering the affordable single family
housing development goals and objectives of the Agency and in order to make the New
Home available for acquisition and occupancy by the Qualified Homebuyer.
Section 10. Term.
(a) The provisions of Section 4 and Section 7 of this HOME Covenant shall appiytothe
New Home and the Qualified Homebuyer and to each Successor-In-Interestten (10)
years after the Delivery Date.
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(b) Except as set forth in Section 10(a), all of the other provisions of this HOME
Covenant shall apply to the New Home for a term of thirty (30) years after the
Delivery Date.
(c) Any provision or section of this HOME Covenant may be terminated after the
Delivery Date upon written agreement by the Agency and the Qualified Homebuyer
(or the Successor-in-Interest in the New Home), ifthere shall have been provided to
the Agency an opinion of special legal counsel that such a termination under the
terms and conditions approved by the Agency in its reasonable discretion will not
adversely affect the affordable single family housing and development goals and
obligations of the Agency under the HOME Program.
Section 11. Breach and Default and Enforcement.
(a)
Failure or delay by the Qualified Homebuyer to honor or perform any material term
or provision of this HOME Covenant shall constitute a breach under this Agreement;
provided however, that if the Qualified Homebuyer commences to cure, correct or
remedy the alleged breach within thirty (30) calendar days after the date of written
notice specifying such breach and shall diligently complete such cure, correction or
remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder.
The Agency shall give the Qualified Homebuyer written notice of breach specifying
the alleged breach, which if uncured by the Qualified Homebuyer within thirty (30)
calendar days, shall be deemed to be an event of default. Delay in giving such
notice shall not constitute a waiver of any breach or event of default nor shall it
change the time of breach or event of default; provided, however, the Agency shall
not exercise any remedy for an event of default hereunder without first delivering the
written notice of breach as specified in this Section 11.
Except with respect to rights and remedies expressly declared to be exclusive in this
HOME Covenant, the rights and remedies of the Agency are cumulative with any
other right or power of the Agency or the City or other applicable law, and the
exercise of one or more of such rights or remedies shall not preclude the exercise
by the Agency at the same or different times, of any other right or remedy for the
same breach or event of default.
In the eventthat a breach of the Qualified Homebuyer may remain incurred for more
than thirty (30) calendar days following written notice, as provided above, an event
of default shall be deemed to have occurred. In addition to the remedial provisions
of Section 5 as related to a Maintenance Deficiency at the New Home, upon the
occurrence of any event of default the Agency shall be entitled to seek any
appropriate remedy or damages by initiating legal proceedings as follows:
"--- Revised, 08/6/2001
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(i)
by mandamus or other suit, action or proceeding at law or in equity, to
require the Qualified Homebuyer to perform its obligations and covenants
hereunder, or enjoin any acts or things which may be unlawful or in violation
of the rights of the Agency; or
(ii) by other action at law or in equity as necessary or convenient to enforce the
obligations, covenants and agreements of the Qualified Homebuyer to the
Agency.
(b) Except as set forth in the next sentence, no third party shall have any right or power
to enforce any provision of this HOME Covenant on behalf of the Agency or to
compel the Agency to enforce any provision of this HOME Covenant against the
Qualified Homebuyer or the New Home. The Agency may assign the right and
power to enforce the provisions of this HOME Covenant against the Qualified
Homebuyer or the New Home as the successor administration agency of the HOME
Program to the City of San Bernardino.
Section 12. Governina Law.
This HOME Covenant shall be governed by the laws of the State of California.
Section 13. Amendment.
This HOME Covenant may be amended after the Delivery Date only by a written instrument
executed by the Qualified Homebuyer (or the Successor-in-Interest, as applicable) and by
the Agency.
Section 14. Attorney's Fees.
in the event that the Agency brings an action to enforce any condition or covenant,
representation or warranty in this HOME Covenant or otherwise arising out of this HOME
Covenant, the prevailing party in such action shall be entitled to recover from the other
party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as
well as the costs of such suit. For the purposes of this Section 14, the words "reasonable
attorneys' fees" in the case of the Agency include the salaries, costs and overhead of the
lawyers employed in the Office of the City Attorney of the City of San Bernardino.
Section 15. Severability.
If any provision of this HOME Covenant shall be declared invalid, inoperative or
unenforceable by a final judgment or decree of a court of competent jurisdiction such
invalidity or unenforceability of such provision shall not affect the remaining parts of this
HOME Covenant which are hereby declared by the parties to be severable from any other
part which is found by a court to be invalid or unenforceable.
Revised, 08/6/2001
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Section 16. Time is of the Essence.
For each provision of this HOME Covenant which states a specific amount of time within
which the requirements thereof are to be satisfied, time shall be deemed to be of the
essence.
Section 17. Notice.
Any notice required to be given under this HOME Covenant shall be given by the Agency
or by the Qualified Homebuyer, by the Participant, as applicable, by personal delivery or by
First Class United States mail at the addresses specified below or at such other address as
may be specified in writing by the parties hereto:
If to the
Qualified Homebuyer:
San Bernardino. California
Attn:
Phone:
If to the
Participant:
Habitat for Humanity, San Bernardino Area
PO Box 1550
San Bernardino. CA 92373
Attn: Sue Pope. Executive Director
If to the
Agency:
Economic Development Aaency
201 North "E" Street. Suite 301
San Bernardino. California 92401
Attn: Executive Director
Notice shall be deemed given five (5) calendar days after the date of mailing to the party,
or, if personally delivered, when received by the Executive Director of the Agency, the
Qualified Homebuyer, or the Participant, as applicable.
1111
1111
1111
Revised, 08/6/2001
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IN WITNESS WHEREOF, the Qualified Homebuyer and the Agency have caused
this HOME Covenant to be signed, acknowledged and attested on their behalf by duly
authorized representatives in counterpart original copies which shall upon execution by all
of the parties be deemed to be one original document. The recordation of this HOME
Covenant is authorized under 24 Code of Federal Regulations Part 92.
QUALIFIED HOMEBUYER
Date: By:
By:
PARTICIPANT
Habitat for Humanity,
San Bernardino Area
~ Dated:
'- By:
Executive Director
[ALL SIGNATURES MUST BE NOTARIZED]
P:\FormS\Housing Forms\HOME Forms\Habitat HOME Reg Agmt.doc
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EXHIBIT "An
Legal Description of the New Home
16
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): ~ Item # e.. 3\ Resolution #
Vote: Ayes 2:315-<:" Nays ,..e-- Abstain ,.t;J.-
Change to motion to amend original documents: -
cod 7Ml-:~ ~
f
Absent II Lj I I)
Reso. # On Attachments: ./ Contract term:
Note on Resolution of Attachment stored separately: -=-
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
Date Sent to Mayor:
Date of Mayor's Signature:
Date of ClerklCDC Signature:
Date Memo/Letter Sent for Signature:
---
See Attached:
See Attached:
See Attached:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, (2634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234,655,92-389):
Copies Distributed to:
City Attorney
Parks & Rec.
Code Compliance
Dev. Services
Police
Public Services
Water
Notes:
NulllVoid After: -
By:-
Reso. Log Updated: ./
Seal Impressed: ./"
Date Returned: q- ~c,-o\
Yes-L No By
Yes No~ By
Yes No ,/ By
Yes No ,/ By
Yes No-;7 By_
EDA
,/
MIS
Finance
Others:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: .1Y1L
Date: q.!) \ -Of
Revised 0 I /12/0 I