HomeMy WebLinkAbout45 Public commentsSeptember 7, 1999
Honorable Mayor and Common Council
of the City of San Bernardino
300 N. "D" Street
San Bernardino, California 92401
FntPrPd into Record at
11'1nF; c0;! ,nV0PVErnR Mtg:
re Agenda ItercE
Re: Council Review of Handicapped Appeals Board Decision
Your Honor:
City ClerkICDC Secy
City of San Bernardino
Despite numerous attempts to notify Council regarding my dissatisfaction with the referenced
Board's determination, I must appeal this decision to the full City Council and ask your
intervention. Failing assistance in resolving this decision, I have no other course but to advise and
file a formal complaint with the California State Attorney General. Because I have a history of
filings with the AG, I hesitate only because I respect this Mayor and Council. Please recognize
that this respect will be effected by your response to this request.
In #1 photograph, you will notice a newly constructed ramp in the walkway between Washington
Mutual Bank and Sterling Cinema. This ramp is directly in front of Goodyear at 2333 Sterling
Avenue (just north of Highland Avenue). In the next series of photographs, you will see first one
side, then the other sides. In photographs 3 and 4 the problem is most apparent. A step remains
at the top platform of the ramp leading into the Goodyear store.
This violation depicts the very problem of walkways that cross driveways. Because of the
dramatic cross slope (indicated at another driveway into this Goodyear repair garage by
photograph 5), staff determined that the existing walkway was not accessible. Thus, the new
construction was not required to conform to accessibility requirements.
Photograph number 6 shows the closest ramp (350 *-ds away) to get access into this Goodyear
store. Photograph number 7 shows the South West corner of the walkway in front of Washington
Mutual Bank. As you will see, by the photograph dated April 30, 1998, this corner originally had
a curb cut to facilitate access for people who cannot use steps. This is one of a total of 4 ramps
that were demolished and repaired as curb faces. These two complaints filed late in 1998
comprise two of a larger number of complaints filed on this site.
Thus, I formally request this Council to review the actions of your designated appeals board.
Thank you for your careful consideration.
obert J. Neves
2348 Sterling Avenue, Suite 439
San Bernardino, California 92404
(909) 862 -6238
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C I T Y O F
5an Bernardino
F I R E D E P A R T M F N T
L A R R Y R. P I T Z E R
F I R E C H I E F
F I R E I A R S O N 1 N V E S T 1 0 A t 1 O N U N I t
July 6,1999
Kassel & Kassel Law Offices
334 West Third Street, Suite 207
San Bernardino, Ca 92401
Re: 649 W. 11* Street, property of Mr. Jaime .Alvarez.
Dear W. Kassel:
In response to your letter dated June 28, 1999, The San Bernardino City Fire Department
has no further need to examine, or investigate the physical property at 659 W. 11`h Street.
Please feel free to inform Mr. Alvarez of this information.
Sincer ,
Larry Pi er, Fire Chief
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•
• July 28, 1999
Mr. Jamie Alvarez
201 N. "E" Street
i Suite 202
San Bernardino, CA 92401
Dear Mr. Alvarez:
• This letter is written to acknowledge receipt of information from you regarding an on-
going investigation. The booklet of information received from you had a cover letter
dated June 3, 1999, and entitled "Re: 119 E. 91h Street & 659 E. l It" Street, San
Bernardino ", this booklet of information was received in our office on July 15, 1999.
• The above information has been turned over to the investigators for their information and
use.
Sincerely,
• Larry R. Pitzer
•i+ira !''hiPf
.San Bernardino City Fire Department
• Entered into Record at
UI,II. -,IiiU)�yOevCrnS Mtg:
• 2 0 0 E A S T T H I R D S T R E E T, S A N 8 E R
• C A L I F O R N I A 9 2 4 1 0 - 4 8 8 9
( 9 0 9) 3 8 4 - 5 2 8 6 • FAX : 7 1 4 1 3 8 4. 5 2 8 1
•
City ClerkICOC Secy
City of San Bernardino
A R D I N O.
June 3, 1999
City of San Bernardino Fire Dept.
Fire Chief Larry Pitzer
j p
200 E. Third Street
•
San Bernardino, CA 92410
Re: 119 E. 91h St. & 659 W. 11 `h St.
San Bernardino
Dear Fire Chief Pitzer,
In August of 1998, I requested a thorough fire investigation because the two properties mentioned
.
above had fires within one week of each other. We were concerned that our company properties
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were being targeted by arsonists.
The fire investigators assigned to our case were Kevin Whitaker and Robert Cuellar. Key evidence
indicates that the City of San Bernardino Fire Department is responsible for launching a wholly
uncalled for attack against our family and company. We have a cassette tape of investigator
.
Whitaker telling the Franco family that, "the people who sold you the house, the Alvarez and
".
Associates asked us to look into this. They originally asked us to because there were some fires
Detective William Rogers of the City of San Bernardino Police Department then specifically states,
"what came out of the investigation from the fire department led to other things ". What were these
other things? Fire investigations are scientific and are not involved with loan documents of home
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purchasers.
What came out of the fire department investigations? Is there some evidence that we committed
arson to lose approximately $65,000 and call for an investigation of ourselves?
•
Will your probable cause, of something that came out of the fire departments investigation be
•
fraudulent insurance applications? Our own investigation indicates that might be your motive.
Allow me to clarify this matter with the facts.
♦ The original insurance applications produced internally by Julio Estrada Insurance out of the
City of El Monte, stated that the acquisition properties were "tenant occupied" and in
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"good condition". This was surprising to say the least. It is public knowledge that Alvarez
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and Associates purchases blighted properties that are vacant and in need of extensive
• rehabilitation. Even HUD under their guidelines restricts our purchases to uninsured
properties. The un n ure determination is done by HUD appraisers, that establishes the
need for extensive repair. FHA will not place FHA insurance on these properties because of
(L their bad condition. That is why they are called unhnsy re . It is only on these properties that
a 30% discount is offered (Exhibit A).
♦ The lending institutions that provide funding for acquisition and rehab are fully aware of the
blighted condition of these properties. They send their own appraisers to justify acquisition
and rehab funding (Exhibits B -E). In our entire history we have never purchased a
foreclosure that is tenant occupied.
I believe that the problem is with Julio Estrada Insurance Agency out of the City of El Monte.
Alvarez and Associates never saw the fire insurance applications that Estrada filled out. There was
no telephone interview as to the condition of the property for insurance purposes. Our company
would fax over a request (Exhibit F) with loan information but nothing is mentioned as to the
condition or occupancy of the property.
Whatever Julio Estrada Insurance did after that with Fair Plan, we were not aware of Even though
it has become abundantly clear, that it was their office that filled out the internal application for fire
insurance and placed it with Fair Plan not Alvarez and Associates. Julio Estrada Insurance stated
that these properties were tenant occupied and in good condition in order to broker out the policies
and not have Fair Plan check them. This is what Fair Plan personnel have told us. If any pictures
were taken, it was Julio Estrada Insurance that did it. If there are pictures it would not surprise me
that they are of other properties. This would be interesting and valuable information. On all the
insurance applications there is not a signature from Alvarez and Associates. The signatures are from
Julio Estrada's office. The San Bernardino Police and Fire investigators have this information in
their possession.
Alvarez and Associates would not receive the actual fire policy from Julio Estrada Insurance from
Fair Plan for 30 -60 days after the close of the acquisition escrow. Julio Estrada Insurance probably
thought that they could set up a turn key operation. They fraudulently claimed the properties that
they were insuring were tenant occupied and in good condition, knowing that they would issue a
new homeowner policy on an owner occupied house, in great condition, once the property was
completed. This is my theory and it is supported by facts.
Also enclosed is a letter from Patricia Cisneros who has placed fire insurance on our acquisition
properties. Alvarez and Associates never claimed to her that any of the properties were tenant
occupied or in good condition (Exhibit G). Ms. Cisneros comments in her letter about our office
providing "accurate and necessary information to procure fire insurance Policies on properties
we had purchased ".
Approximately ten months ago, Julio Estrada Insurance called our office and said that San
Bernardino Fire investigators were in their office and wanted our fire insurance policies. We gave
permission without any hesitation because we have done nothing wrong. If their is any wrong doing
that involves fire insurance fraud, the blame is with Julio Estrada Insurance and not Alvarez and
Associates. The evidence should make this abundantly clear.
That brings up another dilemma. If San Bernardino Fire investigators felt we had committed
insurance fraud on our applications, why didn't they ask us about it? We could have cleared this
matter up back then. They could have shown us one fire insurance application and we would have
cleared up the misunderstanding. Our Attorney, Philip Kassel, made these requests months ago on
behalf of my family (Exhibit H).
If it was the claim of fire insurance fraud on the acquisition properties, why were not only these files
seized?
The acquisition and rehab purchase is a complete and total separate transaction than our retail sales
to first time home buyers. Why did they choose to raid the four mortgage companies and make
themselves responsible for more than one hundred fifty families confidential information. What do
people's income tax documents, statement of information forms, that have their social security
numbers and the most private information such as mother' s maiden name and place of birth, have
to do with supposed fire insurance fraud on our behalf? Credit reports with people's credit card
numbers and accounts are in the City of San Bernardino's police possession. In the final analysis
it will be proven that all police and fire investigators would have had to do is come and ask about
the fire insurance applications, exactly like the District Attorney's office has done.
In the past several weeks, there have been numerous articles about arson fires in blighted
neighborhoods. A few weeks ago, a large structure destined to be the art center was destroyed in an
arson fire according to the Sun Newspaper (Exhibit I). The very fire report submitted concerning
our original loss indicates that a witness saw a, "black male age 70" leaving the house. Now we are
left with a vacant lot that we must clean up and with a debt of $70,000 (Exhibit J), which we must
find a way to pay. If Julio Estrada Insurance committed fraud and invalidated our insurance we can
proceed against him in a civil court to hopefully offset some of the losses.
incerely,
( -
I
aime Alvarez
EXHIBIT
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U.S. Deparinlent of flou.ing and Urban Development
Los Anpolos office. noolon IX
1615 WesI Olympic Doulovard
Los Anoolos, California 90015.801
U.S. Department of Ilousing and Urlgu, Ik-vclopmcnt
Office of Ilousing
• Spoctal Atlentioo of:
All Directors of Ilousing
All Director of musing Nlanagcmcnt
All CPD Directors
r All Chief Property 01 ricers
Subject: Revisions to SFPD Sales Procedures
M ice .11,9-1-7a (llun>
tsstfod: o9CLl(44 '
r=llArcr: 09j30195
Qvzs flcrcrcuccs: 59 FR 48702 (Sept- 22, 1994)
Handbook 43105, REV -2
Ilousing Notice 94-43
This Notice provides guidance for the implementation of 24 CFR Part 291 published in the Federal
Register as a Final Rule on September 22, 1994, and emphasizes revisions being made to the Regulation.
It also supersedes Housing Notices 93 -82, 94114, and any provisions of Housing handbook 4310.5, REV -2,
which are, not consistent with this Notice. However, unless other -wise specifically stated herein, sales
procedures described in the Handbook still apply.
Throughout this Notice, reference is made to Directors of Housing Management having Field Office
responsibility. for the program. After the neat stage of re- organization takes effect, these,responsibilitics`"
u
= will automatically come under Single Family Division Directors' in most field Offices: r
A. Statement of Purpose
Tile purpose of the Single Family Property Dispositioll Probraill is to reduce the inverrtoly of acquired
properties in a manner that expands homeownership opportunities, strengthens neighborhoods and
communities, and ensures a maximum return to the mortgage insurance fund.
B. Owrler- Occupant Purchaser
Owner - Occupant Purchaser means a State, governmental entity, tribe, or agency thereof; or private
nonprofit organization which has been pre - approved to participate in the program -- in addition to
an individual purchaser who intends to use the property as his or her principal residence.
Governmental entities include those with general governmental powers (e.g. a city or county), as well
as those with limited or special powers (e.g., public housing agencies).
HSIP Dlstrlbutlon: W -3 -1, W- 2(0GC)(1I)(Z), NV- 3(A)(I1)(ZA00), W- 4(11), R -]., R -2, R -3,
R- 3- 1(11)(RC), R -3 -2, R -3 -3, R -G, R -6-1, R -6-2, R -7, R -7 -1, R -7 -2, R -8, R -8 -1
0
o
•
j1
U.S. Department of Ilousing and Urlgu, Ik-vclopmcnt
Office of Ilousing
• Spoctal Atlentioo of:
All Directors of Ilousing
All Director of musing Nlanagcmcnt
All CPD Directors
r All Chief Property 01 ricers
Subject: Revisions to SFPD Sales Procedures
M ice .11,9-1-7a (llun>
tsstfod: o9CLl(44 '
r=llArcr: 09j30195
Qvzs flcrcrcuccs: 59 FR 48702 (Sept- 22, 1994)
Handbook 43105, REV -2
Ilousing Notice 94-43
This Notice provides guidance for the implementation of 24 CFR Part 291 published in the Federal
Register as a Final Rule on September 22, 1994, and emphasizes revisions being made to the Regulation.
It also supersedes Housing Notices 93 -82, 94114, and any provisions of Housing handbook 4310.5, REV -2,
which are, not consistent with this Notice. However, unless other -wise specifically stated herein, sales
procedures described in the Handbook still apply.
Throughout this Notice, reference is made to Directors of Housing Management having Field Office
responsibility. for the program. After the neat stage of re- organization takes effect, these,responsibilitics`"
u
= will automatically come under Single Family Division Directors' in most field Offices: r
A. Statement of Purpose
Tile purpose of the Single Family Property Dispositioll Probraill is to reduce the inverrtoly of acquired
properties in a manner that expands homeownership opportunities, strengthens neighborhoods and
communities, and ensures a maximum return to the mortgage insurance fund.
B. Owrler- Occupant Purchaser
Owner - Occupant Purchaser means a State, governmental entity, tribe, or agency thereof; or private
nonprofit organization which has been pre - approved to participate in the program -- in addition to
an individual purchaser who intends to use the property as his or her principal residence.
Governmental entities include those with general governmental powers (e.g. a city or county), as well
as those with limited or special powers (e.g., public housing agencies).
HSIP Dlstrlbutlon: W -3 -1, W- 2(0GC)(1I)(Z), NV- 3(A)(I1)(ZA00), W- 4(11), R -]., R -2, R -3,
R- 3- 1(11)(RC), R -3 -2, R -3 -3, R -G, R -6-1, R -6-2, R -7, R -7 -1, R -7 -2, R -8, R -8 -1
Standards for pre - qualifying nonprofits not previously qualified to participate in other (IUD
' programs are provided in Attachment 1. "file basic responsibility for pre - qualifying participants
::.rests.with IIousing; however, in individual Field Offices CPD nlay accept-this responsibility in..
whole'or on a shared basis with IIousing.
C. Itevit:llization Area
.ReviUdization Area means a neighborhood 111,11 has a significant concentration of vacant properties;
:!including propertics:nceding extensive repairs that.have been in HUD's.invcntory at leasl.eighl:
months; exhibits other characteristics of economic distress; and has been targeted by. the localily.t..'.:•
for establishing affordable housing and providing adequate supportive services.
Beginning in Fiscal Year 1995, and annually thereafter, Directors of Ilousing Management will
determine area's that are suitable for applying deep discount pricing (30 percent off fair market.;::,::: '
value) on IIUD -owned properties being offered without mortgage insurance, ill Consultation withal .:a'
local officials. Standards for making this determination will be identical to those applied in Fiscal
Year 1954 for determining "exception sales" on individual properties. These are:
1. The neighborhood has a significant concentration of vacant properties, including those owned
by IIUD, and exhibits other characteristics of economic distress;
2. The neighborhood is targeted by the locality for establishing affordable (lousing and providing
adequate supportive services; and,
3.. In general, properties remain in (IUD's inventory for at least eight months OR require .
rrlininlum property standards (MPS) related repairs exceeding 515,000, or 50 percent of the •.
estimated "as repaired value," whichever is greater.
s^
For tracking purposes, revitalization areas will still be identified by ZIP code. If appropriate, Field I
Office staff may consider the entire ZIP code a revitalization area or only those neighborhoods
t within the ZIP code rneeling the standards defined above. In either event, the 30 Percent discount
:shall apply to uninsurable properties only located, within the targeted revitalization area.
Where the City has a IIUD - approved Comprehensive IIousing Affordability Strategy (CIIAS), or
successor plan, it is important to ensure that revitalization areas are coordinated with it to the
maximum extent feasible. For this purpose, IIousing staff must consult with Community Planning
and Development (CPD) staff in the appropriate local IIUD Office before contacting City officials,
and, for those jurisdictions having significant IIUD inventories, become familiar with the City's
plans for those areas.
mw Directors of IIousing Management shall identify their revitalization areas by ZIP code and notify
' the Director, Single Family Property Disposition, Headquarters, of their selections by August 31,
1995, and annually thereafter. Revitalization area designations shall remain in effect for the
balance of the following fiscal year. IIowever, if a property has bccjl offered to a nonprofit or
public agency prior to implementation of new fiscal year revitalization areas, that offering shall
remain open until the nonprofit or public agency has had its opportunity to purchase according to
the guidelines and timefrarnes referenced in ¶ 0.2. Herein. "rile sale of such a property shall be
at the appropriate discount in effect at the time of the original offering.
Page 2 of 10 . K
I1. Isxce ptions for Individual ProLrtics
Individual uninsurable propertics not located in a revitalization arca, May occasionally be sold at ..
the 30 percent discount if they meet the thrcc standards for establishment of a revitalization arca _.
and arc locatccl in a neighborhood where seller concessions, such as tale hack financing, are
' commb'n mid/6r a predominance of other buyers in the area arc investor owners. If more than ten
of these deeply discounted individual transactions occur within a field Office jurisdiction during
,a Fiscal Year; the Director of Ilousing Management must approve each such sale in writing briefly
stating his/her rationale.
E. EslahlishinVList Price
Properties outside of Revitalization Areas, cxccpt those qualifying under the "cxccption" criteria
(See D. above); sliall be priced in accordance with standard procedures. Properties located within
Revitalization Arcas shall be Priced as follows:.
1. Upon acquisition, it is necessary to detcrruine the Icvcl of repairs needed to bring the Property
up to the intent of MPS; i.e., based on visual inspection, the property is structurally sound, free
of roof Ieaks, and has operable mechanical systems.
2. If the estimated repairs exceed .$5,000, the Properly shall be assigned to a qualified
Specification writer, or fee inspector, for a detailed listing of the repairs, with cost estimates,
required for the Property to meet MPS.
The initial.determination as to whether the MPS - related repairs exceed $5,000 nray be made,
at Field Office option, by the REAM or the appraiser. Assignment of the case to a
specification writer shall be independent of other requirements of the REAM and appraiser
and it is not expected that this action will alter present requirements, including timeliness, for
these contractors to Perform other contract services.
3. The specification writer may be obtained under a Field Office contract, under which.work
orders could be placed by IIUD, the REAM, or the appraiser, or
T11e REAM may be required to procure the specification services directly, i -e., the specification
writer would be a subcontractor to the REAM. Orders for this service could be placed by
I -IUD, the REAM or the appraiser.
d. If the property in its present condition Meets the intent of MPS, or can be made to meet the
intent of MPS by the completion of a few minor repairs, not to exceed $5,M)0, the appraiser
then estimates the "as repaired value' as if the property was brought up to market typical
condition, and also estimates the cost of MPS repairs, if any. Field Office staff will subtract
the MPS related repair costs from the as repaired value" to arrive at list price; however, if the
REAM (or appraiser) determines that the property requires major repairs or rehabilitation,
estimated to be in excess of $5,000 in order to nice( the intent of MPS, the property must be
assigned to a specification writer, according to the optional procedure adopted by the Field
Office- (Attachment 3 of this Notice is a rehabilitation checklist which may be helpful to the
specification writer. It is for guidance only and does not represent any type of warranty by
IIUD. This disclaimer must be contained on any locally devised rehabilitation checklist given
Page 3 of 1.0
to the public.) Upon receipt of the "as repaired value" appraisal and the specification writer's
report, the Field Office 'Will subtract the cost of the MPs - related repairs, as dctefmined by the
specification writer, to arrive at the list price.
I'. J rrrt►crties I:IiIjble for itlortl!aCe Insur once (Sec Attachment 21
Propertics eligible for mortt;agc if shall be offered codrll>'tltlhc I i Id oflice,rprilor ►tobbeing
(Sec B. above) for a period of l0 to 30 drys, as dctennurc }
placed on the general market. Property shall be sold to the net highest bidder without taking. into
consideiation any applicable discount. In lire event of identical.tie net bids being received, award
of the sales contract is determined by drawing lots:
G. Propertics Not I?li �ibt lc for NlortL_'Lc Insur•►'Ice (Sec Alt:rctnncnt 21
State and local governments, public agencies, including public housing authorities, and qualified
private nonprofit organizations that have been pre Ipproved to participate by MUD, may purchase
properties in this category directly at a discount off list price for use in HUD and local housing or
homeless programs. 'I1ris opportunity shall be given prior to their being offered to individuals who
will occupy them as their primary residence or to the general public.
1. IIUD Notification Procedures
Nonprofits and public agencies participating in this program must designate areas of interest
by ZIP code in writing to the Chic[ Property Officer in the local HUD O[ficc. Upon request,
and for only those properties not eligible for mortgage insurance, Field Office slat[ shall notify
participating agencies of properties in these areas as they become available prior to public
listing. Agencies interested in the same area must receive property lists al the same lime, \
based on intervals agreed upon asldetermine d Dby IIUD slrecelirpt of a signed properties
ales sold
on
a First come -first served basis
2. ArcncY Nrrtificnliort Procedures
Nonprofits and public agencies participating in this program u►ust notify IIUD of preliminary
interest in specific properties within 5 days of HUD's notification. L► the interest of tune,
participating agencies are encouraged, but not required, to transmit their property interest via
facsimile where feasible. (If IIUD notification is by mail, this 5 days will begin to rn► 5 days
after mailing) 'I1►ose Propertics in which purchasers express an interest will be held off market
for a 10 day consideration and inspection period. Other Properties on the list will continue
to be processed for Publicsale. At the end of the 10 day consideration and inspection Period,
properties for which no nonprofit or Public agency has expressed a specific intent to Purchase
will be offered for sale under the competitive bid Process. Propertics in which an agency buyer
has expressed an intent to purchase will continue to be held off market for up to l0 additional
days Pending receipt of the sales contract.
Page 4 of 1.0
3. Unsold Properties
If properties. in this category arc not purchased by a nonprofit organization or government;!
entity within the allotted time, they shall then be offered on a 10 -clay competitive bid period
r to individuals who will occupy them as [heir primary residences, onto the general public (also
:. subject to a 10 -clay competitive bid period), with a priority period for the afo�cihentioned
i individuals. (Sec Attachment 2.)
II. Sales to Gcnerul Public
Properties which remain unsold after progressing through the steps described in F. and G. are then
offered to the general public under a competitive bidding process.
'1. !Unless conditions have changed which affect the previously established price of terms,
properties shall be offered at the same listing price. If conditions dictate, a new listing price
may be established, using current pricing procedures.
2. Insurable properties (See P. above) have been through a competitive bidding process and will,
therefore, be offered under an extended listing basis unless the listing price is changed, thus
necessitating a new 10 -day competitive bid period.
3. Nonprofits and government agencies which purchase competitively during this period, and are
the successful bidder without any discount being considered, then will be given the applicable
discount off the gross sales price for that property. Such salts at the 30 percent discount are
also subject to the resale restrictions described in Section J. (See Attachment-G for specific
instructions related to SAMS.)
�i. Unsold properties are to be reanalyzed regularly, at least approximately, every 30 days, .to::.:._.
determine the cause(s) for lack of sales offers Wlicrc warranted, prices,may be adjusted in
accordance with current procedures.
5. In any competitive bidding process, offers will continue to be accepted on the basis of the
highest net return. In the event of identical tic net bids involving an owner - occupant buyer,
:the contract, provided it is otherwise acceptable, shall be awarded to the owner - occupant.
buyer. Tie net bids not involving an owner - occupant buyer, or two owner - occupant buyers,.-
shall be determined by a drawing of lots.
L Discount Lcvcls
The amount or the discount on sales to nonprofits and government agencies will vary depending
on the location of the property being sold, the type of sale, and the number of properties
purchased and closed in a single transaction. IIomeless providers who wish to purchase a I-IUD
owned property, including properties currently leased, must also receive tire appropriate discount
as described below.
Page 5 or 10
•
•
•
•
O
Iicvi talurtionilr_cns
For insurable properties, .the discount shall. be 10 .percent; .IS percent: if five or more r`
-t properties arc purchased and closed in a single transaction. For uninsti ► able properties,.the r. ,
discount shall be 30 percent.
2. Noll - 1ZCVitaliL.1tiOrl Arcas
•• , �+ i:; :.<;:'; For insurable and uninsurnble properties, the discount sliall be 10 percent; 15 percerll.if five
or more properties are purchased and closed to a single transaction.
3. I?xcchlion 1'roLrlics
By definition,. properties which are sold under the exception provision of D. above. are not
eligible for mortgage insurance. 'File discount on such properties is 30 percent.
4. Sales Commission /Closint; I,inancint`Costs
Usually no real estate broker will be used, and no sales commission or closing/financing costs .
• paid on these transactions. However, occasionally, a nonprofit or government agency may elect
. to use a broker in order to facilitate identification of HUD -owned properties suitable for a
particular program, or request that MUD pay a dollar amount towards closing or financing
costs. In this instance, any applicable discount applied at closing will be mrnuS the full sales
commission and /or the closing - financing costs claimed on the Sales Contract..
• T. rin:rurcinf;
• L�,ll►c future, HUD may offer seller financing (purchase money mortgages /PMMs) to nonprofits
• and government agencies with a five year term at 85 percent of purchase price with principal and' ; b
interest calculated on a 30 year basis. While PMMs are not authorized .for use at this lilac,, ,
instructions for implementing this incentive are in Attachment 4.
' Meanwhile, Picld Office staff should make available information about other IIUD programs wlricl►
provide funding for acquisition and rehabilitation of single family properties. These programs
include: HOPE 3, IIOME, CDBG, Section 108 Loan Guarantees, aco local d(k) Rehabilitation
®Home Mortgage Insurance Program. If the Field office t
w Planning and Development, the Director of IIousing Management must eusure that printed
materials describing the relevant program options are on hand for distribution, and refer inquiries
to CI'D staff when appropriate.
.� IC Resale Restriclions on Propel-ties Sold at 30 Percent Discount
Il is ex I �ected that properties purchased from IUD at a 30 percent discount will be kept affordable
to the income level of the targeted buyers.
1. Properties are primarily intended to be resold to persons who are at or below 115 percent of
err median income for their area, wlicn adjusted for family size, or used to slielter the homeless.
fib Pave 6of10
. 2. Properties may not be resold to an investor within one year of IIUD's closing. Individual
�. exceptions may be granted by the Director of Ilousing Management in unusual circumstances.
tl local In ID Office with reasons
A request for such an exception must be made in wrlUng to lc
Given for needing the exception. (Longer resale restrictions may apply depending on the
source of acquisition and /or rehabilitation financing .used.)
3.. Without a specific written exception being granted by the I�ield.Office, on an individual...._
property basis, properties play not be occupied by, or resold to, any oC. the, purchaser's officers, .
directors, elected or appointed officials, or employees, or the spouse, child; stepchild, parent,
stepparent, or business associate of any Of the above.
4
Notwitl+standing the above, it is reasonable to cxpccl that a nonprofit sponsor, like lily housing
developerjs entitled to a fee which covers costs. This fee should include overhead and
staffing related to the project. Some fluctuation in the developer's fee is to be expected,:;
however, as a general rule it is riot anticipated that a nonprofit should realize more than a six .
to 10 percent rate of return on HUD properties purchased at the 30 percent discount, except
where a higher rate is otherwise authorized by another HUD program.
NOTE: Attachment 5 is a sample Land Use Restriction Addendum which may be added to certain
sales contracts executed with nonprofits and government agencies at the option of the
Field Office. It is designed to limit profit according to the above and to ensure that the
appropriate targeted population ultimately benefits. It is not required, or recommended,
for application in all sales to nonprofits and government agencies, but should be used when
..the Director of Housing Management, in consultation with Field Counsel, has reason to
believe it appropriate. If resale restrictions c10 not survive IIUD's closing-ill your State,
Field Counsel may wish to consider placing the addendum in a separate contract to be
signed at the closing.
I.. Outer Key Features
1. Pl-orrtllll moll itorinlyge111edieS for Abuse
a. Investor Buyers. SAMS has been modified to record the Social Security Number (SSN)
of individual buyers so that investols may not represent themselves as owner- occupants
with i►npunity. This number is already being collected on the Form IIUD 9548, Sales
Contract, approved by OMB for use through September 30, 1995. Chief Property Officers
must now ensure that it is entered on the Sales Contract and then into SAMS on the Sales
Offer Accepted screen (CM- DS -OA). SAMS II will allow the user to compare the SSN
of a buyer with all previous buyers in a given period within a Field Office jurisdiction.
When a Field Office learns of alleged falsification of the sales documents, it should refer
the matter to the Inspector General for possible investigation. Consideration should also
be given, in consultation with local IIUD counsel, to a Limited Denial of Participation.
b. Nonprofit /Government Agency Il,lye,-. When a Picld O[fce identifies a program abuse by
a buyer in this category, it should consider one or a combination of the following:
application of the Land Use Restriction Addendum (Attachment 5) to any future sales
contracts; in consultation with local I-IUD counsel, a Limited Denial of Participation; and
referral of the matter 10 the Inspector General for further investigation.
' Written notice of any Potential advcr be at[[ordedS -1 o�t(tortunityeto)r respond � ►in writing
0
{ -IUD's reasons, and the buyer must
''before any further action is taken: IIUD may also limil.thc acs ►'deter► lined by tH IUD,l and
' fo
• a purchaser, based upon the Purchaser's financial capacity � •, ,.. ,. ..
upon past performance in IIUD Programs.
r
2. Advertisint; surd Onlreach
Letters explaining these changes to the ShI'D Sales Program should be -ice within .30 clays,to[ X.; -
Iet ( i
participating, nonprofits and government agencies by each I tell Of ►
V
receiving this Notice. Where feasible, outreach sessions. should also be.offcred in order to
answer questions and provide leclrnic;rl assist, to program risers needittlT it.
�r
3
�gcncy Rc r►rt rtiriG
Nonprofits which have purchased in the SF PD Sales Pro usinr��Ivitarta30m)enl by Decentber`31I ,.
Should be asked to submit a letter to the Director of HO using 6 G
1994, and annually thereafter, giving basic information about their program accomplishments
over the past year.
Contents of this letter should include the number of properties acquired frOill
in that t file 3 Period,
percent discount during the previous Fiscal Year, and, for each P ( Y
by address, its acquisition cost, rchabilita( ion cost,
and resale price. In addition, the letter
n overview o[ other program costs, including any developer's fee applied, and
should contain a
certify Thal resale buyers were at or below 115 percent ofeculivelDirecto�ro[tlhe nonprotfit,
adjusted for family size. The letter must be signed by the
or the staff Person will, chief operating responsibilities.
If lliis report is not received within 30 days am due
tile Coundraccept�ble to HUD.
panc�tpalion in the deep discount Prot,
Participating unit of govenunent should also Provide this letter unless its contents would
duplicate information already collected by other IIUD progra ►n submissions. Nonprofits .
submitting this information under require 3 tsronl recd ient , which gare required ttousubm t
their efforts either. For example, II G
Annual Performance Reports to CPD, will not also be required to submit an annual letter to
the Director of Housing Martagernent.
4. Direct Salcs to IIUD Tenants refusal
BUD tenants in occupancy, except former n° provided there be
is of recognized r[abi(ilyrtotacgui e
to purchase, at current Cull market value,
financing, a good rent Paying, history
tisexists,
htaoC first request
sah?�PI li s t made Prole rtieslintboth
offered the right of first refusal. "I 6 t be
revitalization and non - revitalization areas. li ins l ctiOle.t,I he te<iant then wouldrbe givlen
appropriate market approach and curr
the opportunity to submit a sales contract or closing costs ive
tile same basis cas otr other
Office may elect to Pay the financing and/or G
purchasers. A selling broker would not be involved; therefore, a sales cominisston will not be
indicated on the contract.
5
Alk
Leases to Ilomeless Providers
Please refer to Itousing Notice 94 -43 issued June 14, 1994, for completc.detaiis on Ill's
procedure and a listing of f=ield Offices mandated to continue offering properties for lease on
a priority Oasis based °nderavrrilaOle forylcascotoOclioOecic sprovider other ctyll it c been .
properties may not be ma
marketed for 30 days.
N7. Other Regulatory Changes
1. . Gr:urting of Fir -st Extension to Closing'I'iI!IC at No Charge to Owner - Occupant Buyer- Where
the I)el:ry_is Not the lluycr's 1 au1L
Since experience has shown that extensions are often necessary, through no fault oC the
purchaser, the initial l5 -clay extension shall be provided At no cost to owner - occupant
purchasers where documentation indicates that (a) prober and timely loan application was
made, (b) the dciay is not the buyer's fault, and (c) mortgage approval is inunincrrt. Further,
extensions shall be granted al no cost, at any time and to any purchaser, where the delay is tine
fault of HUD or a direct endorsement lender. On Section 203(k) transactions, an initial
extension of 30 days may be granted at no cost provided the above conditions have been met.
2. Removal of the Six Percent Cnp on Closing find l'-inancinj! Costs HUD Will I'fly.
This regulatory modification was done to accommodate possible needed future progranurratic
changes. No change is intended to the maximum percentages which may now be paid, i.e., five
percent under normal market conditions and, for proven hard to sell properties, up to six
percent. Any future change to these maximum percentages will be announced by a notice or
handbook change.
3. Competitive Sales Procedure
Properties are sold to the general public on a competitive bid basis through local real estate
brokers except where direct sales procedures arc appropriate /to governmental .entities,
nonprofits, displaced persons, and IIUD tenants in occupancy. It a property fails to generate
an acceptable offer during the bidding period, it will remain on the market for an extended
listing period. If it remains unsold and its price or terms are changed, the property will be
subject to another competitive bidding period.
4. Direct Sales to Qlher Individuals or Entities
A direct sale may be made to an individual or entity that does not meet any of the categories
mentioned in 3. above if a finding is made in writing by the Assistant Secretary for I-Iousing-
Federal IIousing Commissioner, or his or her designee, that such a sale would further the goals
of the National I- Iousing Act and be in the best interests of the Sccretary. I
5. Iarrnest one I)ehosits
a. I'hc deposit,rcquircd for a property priced at $50,(X)0 or less is $500. For a property
priced over $50,00), the deposit required shall be set by Field Office staff taking into
GotjSidC:raliorl comparable practice in the area, local 'lousing market conditions, and the
ability of typical buyers to secure financing. It shall be no less than $500 and no more than
$2,000. On vacant lots, the deposit is 50 percent of the list price.
b. In :the case of an uninsured sale, 100 percent of the earnest money deposit tendered by
an owner- occupant purchaser will be returned where the purchaser was pre -;r1)j)roved for
mortgage financing in an appropriate amount by a recognized mortgage lender and, despite
good.faith efforts, is.unable to obtain mortgage financing. Stich situations most commonly
Will arise where, even though the purchaser has been pre- approved fora loan, the lender
will not approve a mortgage on the particular property being purchased. Where an o\tialer
occupant purchaser has not been pre- approved and despite good faith efforts cannot
obtain mortgage financing, 50 percent of the earnest money deposit will he returned. For
purposes o(Jmplernenting this change, "pre- approved" means a commitment has been.
obtained from a recognized mortgage lender for mortgage Financing in a specified dollar
amount sufficient to purchase the property.
c. If the buyer is a nonprofit or government agency, they should be cautioned not to enter
into sales contracts unless acquisition financing is to hand ", or there is' a reasonable
expectation that it will become available within the 60 day closing timeframe. If IIUD
experiences repeated delays in scheduled closings with an agency, Field Office staff should
require an earnest money deposit of $500 on future transactions. "Ilre deposit shall be
subject to forfeiture on the same basis as other sales which fail to close within the contract
timeframe, including approved extensions.
6. Convcyancc of Occutricrl Pr'Onerlies in 'Those InsUrnces wilet-c it is in IIn s'test Inter-est
I)r►e to Excessive Eviction or Relocation Expenses Required by Locirl Urw
Although infrequent, there are instances where excessive eviction and /or relocation expenses
must be paid by mortgagees and reimbursed by the Department in the claim for insurance
benefits. In the interest of cost effectiveness, where a State or local law requires the payment
of high eviction costs or excessive relocation expenses as part of the eviction process, Field
Offices will determine whether to accept a property occupied, without requiring that all other
eligibility criteria, except for habitability, be met by the remaining occupants, rather than incur
the excessive costs that would be generated by an eviction.
Any questions regarding this Notice may be directed to the Single I,amily Property Disposition
Division at (202) 708 -0740 or 708 -1832.
A..sistant Secretary for Ito sing -
Federal'lousing Conunissioncr
Attachments
INDMUUA- .O}YNIR O('CUPANTS.
• 10 -30 DAY PERIOD (F1FJ ) OFFICE
OI-I-ION)
• F•IJWF 10 DAYS CONIPr•_TITIVL BID
PERIOD; BALANCE; IF ANY, EXT'E LADED
LISTING
• AT FIELD OFFICE 01-f-ION, THIS STEP
MAY 11F OhI17 -TF•_D AND PROPERTIES
11S1'IiD TO GENERAL PUBLIC- Ir• TIIIS
OPTION 1S TAKEN, AND AFTER BEING
FIRS!' OFFFJI-ED TO NONPROFITS AND
GOVERNMENT AGENCIES, PROPERTIES
IN THIS CATEGORY hfUST THEE BE
I-ISI'ED FOR A LO DAY COMPETITIVE RID
4 PERIOD DURING WHICH BIDS FROM
INVESTORS MAY NOT BE CONSIDERED
4 IF ACCEI''TABLE BID RECEIVED FROM
INDIVIDUAL OWNER OCCUPANT
GENI:ItAL.]'UIILiC: :`......... i .
i FAIR MARJE71- VALUE
• INSURED SALTS: I-ISTING OR 10 DAY COMPOTITIVE 1111) PE1110D, AT FIELD OFFICE OPTION
• UNINSURED SALES AND INSURED SALES lF PR1CrfTlaLNIS ARE CnnNGI_D: to D, \Y COME' m"I'IVE BID PEILIOu
• ELIGIBLE; BUYERS; OWNER- OCCUPANT'S, INCLUDING GOVERNMENT AGF1•ICIES AND NONPROFITS, AND INVESTORS
S WGILEST NET BID WITHOUT DISCOUNT BUNG CON5IDGILED
APPLICABLE DISCOUNTS (ONLY 7'0 NONPROFITS AND GOVERNME T AGFIICIES; PAYAl1Lli AT CLOSINC):
REVITAIAZATION AItEA:
UNINSUR -E.D SALE. 3o%
- INSURED SALE: 10% (15% IF 5 OR NIORl- PROPERTIES PURCHASED AND CLOSED SINIULTANEOUSLY)
41P • NONREVFTALIZATION ARrW
• ALL PROPERTIES: 10% 15% IF 5 OR MORE PItOPERTICS PURCHASED AND CLOSED SIMULTANEOUSLY)_
did
r
ATTM 1HUff 2
STNGLt TAMIL' Y. II ROI' EirrV:DISP.OSITION'.PItOCESSING FLOW CHART.":': .
.
:.: , Tr:NAN1 S iii occzmAwcv
RIGHT OF FIRST R-FFUSAL YVHERE' QUALIFIED AND REQUESTMADE
?14?MLi1;SS PRQyXDi;RS
APPLICABLE IF FIELD OFFICE ILLS < 200 ACQUIRED PROP RTIGS
.
LEASE ONLY
j
PRE-DESIGNATED AREAS
15 CALENDAR D,1YS FIIOM MAIIJNG OF LIST 1'O SUDh1IT SIGNED LEASE
;..
INSURED SALI'sS.....'
(Y1.NS :U URLD SAI LS ::. .
r ;0NvNGR OCCUPANTS, (INCLUDI!S :':
NONPROI�IIS AND `
NONPROrTZS
/COYRNMI;NI AGi'NC17�S)
GOYI�RNRTITNI AGLNCIGS
•
10-30 DAY PERIOD, FIELD OFFICE OPTION
30% DISCOUNT IN 11.1-7VITALIZATION
•
FIRST 10 DAYS COhIPET1TIYE BID PERIOD; IIAL NCE, IF
AILEAS
ANY, LX'I'ENDIJ) LISTING
10% DISCOUNT IN ALL OTHER AILEAS
FAIR MARKET VALUE
(I5% IF 5 Olt MORE PROPERTIES
HIGH M- M?T BID WTrHOUPT ANY DISCOUNT J1I-3NG
PURCHASED AND CLOSED
CONSIDERED
SIMULTANEOUSLY
•
DISCOUNTS (ONLY TO NONPROFITS/GOVT AGENCIES;
PURCILASE ONLY - NO LEASE
PROVIDED A7' CLOSING; APPLICABLE TO AI-L INSURED -
SALES REGARDLESS OF LOCATION):
5 CALENDAR DAYS TO 114DICATE
PRELIMINARY wrERI ST (PLUS 5 DAYS
�• 10'% (I5% IF S•OR MORE PURCHASED AND CLOSED
IF LISTING 1S MAILED),
SIMULI'ANli•OUSLY)
10 CALENDAR DAYS TO INDICATE FIRAU .
'
INTEILPST
•
5 CALENDAR DAYS TO SUBMIT SIGNED
SALES CONTRACT
INDMUUA- .O}YNIR O('CUPANTS.
• 10 -30 DAY PERIOD (F1FJ ) OFFICE
OI-I-ION)
• F•IJWF 10 DAYS CONIPr•_TITIVL BID
PERIOD; BALANCE; IF ANY, EXT'E LADED
LISTING
• AT FIELD OFFICE 01-f-ION, THIS STEP
MAY 11F OhI17 -TF•_D AND PROPERTIES
11S1'IiD TO GENERAL PUBLIC- Ir• TIIIS
OPTION 1S TAKEN, AND AFTER BEING
FIRS!' OFFFJI-ED TO NONPROFITS AND
GOVERNMENT AGENCIES, PROPERTIES
IN THIS CATEGORY hfUST THEE BE
I-ISI'ED FOR A LO DAY COMPETITIVE RID
4 PERIOD DURING WHICH BIDS FROM
INVESTORS MAY NOT BE CONSIDERED
4 IF ACCEI''TABLE BID RECEIVED FROM
INDIVIDUAL OWNER OCCUPANT
GENI:ItAL.]'UIILiC: :`......... i .
i FAIR MARJE71- VALUE
• INSURED SALTS: I-ISTING OR 10 DAY COMPOTITIVE 1111) PE1110D, AT FIELD OFFICE OPTION
• UNINSURED SALES AND INSURED SALES lF PR1CrfTlaLNIS ARE CnnNGI_D: to D, \Y COME' m"I'IVE BID PEILIOu
• ELIGIBLE; BUYERS; OWNER- OCCUPANT'S, INCLUDING GOVERNMENT AGF1•ICIES AND NONPROFITS, AND INVESTORS
S WGILEST NET BID WITHOUT DISCOUNT BUNG CON5IDGILED
APPLICABLE DISCOUNTS (ONLY 7'0 NONPROFITS AND GOVERNME T AGFIICIES; PAYAl1Lli AT CLOSINC):
REVITAIAZATION AItEA:
UNINSUR -E.D SALE. 3o%
- INSURED SALE: 10% (15% IF 5 OR NIORl- PROPERTIES PURCHASED AND CLOSED SINIULTANEOUSLY)
41P • NONREVFTALIZATION ARrW
• ALL PROPERTIES: 10% 15% IF 5 OR MORE PItOPERTICS PURCHASED AND CLOSED SIMULTANEOUSLY)_
03/23/1997 02:59 504- 589 -6747 HUD SF DIV PAGE 03
Attachnicut
page 1 of 2
San Bernardino's Current ARR Program:
Under the current Acquisition, Rehabilitation and Resale (ARR) program administered by the City of San
Bernardino, where the city purchases uninsurable properties from HUD at a 30% discount in revitalization
areas, the city has committed to and will continue to commit to the follorving:
Sales are done as pass through sales to contractors who are monitored by the City. Pass tllrouglt sales
contain a deed resUictiorr requiring the property to be resold to owner occupants. Contractors are
limited to a 10% to 15% profit on the resale of the properties once rehab is completed.
• 'lite City is providing loan guarantees to banks for the purchase and rehab financing provided to the
contractors.
• Contractors are monitored by the City to assure quality rehab and enetgy efficiency of the properties.
The City has committed $2,000,000 in down payment assistance for first time home buyers at
$7,000 per property or even up to 15% of the purchase price. The City requites the properties to be
resold to low and moderate income individuals and families. Current first time home buyers are
renters in the community.
• Conractors arc required to provide 1 year of customer service to tare purchasers of the property to
address problems that may be encountered by the purchaser
Expansion of the City's ARR Program
The City will be allowed to purchase unitrsttrabie properties at the 30 % discotut[ level in
revitalization areas plus an additional $2,500 discount on each property, provided the city can close
10 or more properties simultaneously and within 45 days of execution of the sales contract. This
additional discount on each property will serve as art incentive to purchase in bulk, helping t� reduce
HUD's inventory and decreasing the Departments daily holding cost of $27.50 per day.
(Revitalization area is shown in attachment 2)
The City will be allowed to request, on a case by case exception basis, the purchase of uninsurable
properties outside of the revitalization area at a 30% discount_
• Regarding the appraisal process on all HUD owned properties:
A. HUD's RP.AM will notify the City when properties are assigned into HUD's inventory;
U3/23/1991 02:59 504- 589 -6747 HUD SF DIV t'AU6 04
Attaclunent X
page 2 of 2
D. IIUD agrees to pay the $120.00 per unit inspection, which is the current agreement between
the City mid HUD, and the City will provide IBM's REAM Mth a pre permit report for
each property inspected;
C. A specification writer vd1l be secured by HUD to prepare cost estimates when estimated cost
of tupairs exceed $5,000.00;
D. The estimated cost of repairs, prepared by tite specttcation writer will be used W derive the
property's as is value by deducting that amount from the appraisers as repaired value to
determine the list price of the property.
E. The City can then purchase uninsurable properties located in revitalization areas at a 30 °/0
discount off of the list price established in D. above.
F. A copy of the inspection report and cost estimates will be provided to buyers prior to closing
when a specification writer is utilized. Otherwise the purchaser will be provided rite
appraisal which contains the appraisers cost estimates when estimates are less than S5,000.
The process to be utilized to implement the above is outlined in attachment 3.
Finally, the HUD office will put out a circular letter to all lenders reminding tlicm of their i rsponsibilities
to provide controls to assure that mortgagors tinder the 203 b program will be owner /occupants .
„...
0 ACQUISITION, REHABILITATION, RESALE PROGRAM (A.R.R.)
0 A Public- Private Partnership
HUD - City of San Bernardino EDA - Contractors
A.R.R. PROCESS
p 1. Monday morning EDA goes on the Internet to HUD Santa Ana Horne Page and pulls the
HUD weekly list of REO properties in the City of San Bernardino.
2. EDA maps every property (using Rand McNally Streetfinder software) and creates a list
of UNINSURABLE properties in the designated revitalization zone available at a 30%
discount. Also, UNINSURABLE properties outside the revitalization zone available on
an "exception” basis at a 30% discount, and INSURABLE properties available at a 10%
dlscounl In or out of the zone.
EDA "Lottorize" HUD properties on a random rotation system and fax properties to
contractors. (Note: certain fax machines [lave a "Group Fax" feature)
4. Contractors perform due diligence of properties.
Contractors submit to EDA "Request for Inspection /Property Analysis Form" including
a work write up. Contractors have until Thursday at noon to submit form. Rehab shall
conform to existing Development Code standards and UBC standards including
Development Code - Chapter 19.04.010 (F) Retain the scale and character of existing
residential neighborhoods (which shall include architecture, outside elevation materials
& color selection)
6. EDA submits expression of interest to HUD and therefore reserves property from public
bid offering process.
EDA performs property inspection with work write up and approves form. Any problems
with proposed work write up will be addressed at this tirme.
EDA initiates a sales contract and sends to HUD via courier through Arrowhead Escrow
on a daily basis.
HUD executes sales contract,and sends file to Arrowhead Escrow and opens escrow.
10. EDA follows properties fo.'r close of escrow. EDA purchase is funded by
Contractor /Developer funding with a concurrent escrow to close from ERA to the
Contractor /Developer.
11. Contractor performs rehab on house and markets property for sale.
12. EDA performs post inspection to insure quality per approved work write up and terms
of rehab. Form is signed off and allows payment of mortgage assistance.
Contractor sells property with down payment and closing costs assistance from EDA to the first time
home buyer in the form of a silent secori� trust deed loan (see MAP flow chart).
f
1
a.
EXHIBIT
lom
AM
0
0
Red1widsFederal I3,<u
ADAHNIS7RA771'E OFFICES
300 East State Street P.O. Dox 6905
Redlands, California 92375 -0905
0 0 Telephone (909) 793 -2391
C
July 10, 1997
Alvarez and Associates
Q 201 North "E" Street, Suite 202
San Bernardino, CA 92401
10
This is to confirm your Line of Credit for $1,000,000 to be used for the City of San
Bernardino Acquisition, Rehabilitation, and Resale Program.
C
If I can be of any further assistance, please feel free to contact me.
Sincerely,
Ron Ruhl
Vice President
Community Reinvestment Officer
Li111111J1 1
C
REHABILITATION PROGRAM AGREEMENT
TI1IS AGREEMENT is entered into as of --July-I-6--, 1998 by and between PIMVIDLN'1'
SAVINGS BANK, FSB ( "PSB "), a federally chartered savings bank, and ALVAREZ AND
® ASSOCIATES, A GENERAL PARTNERSI TIP.
REC11AL
1. PSB is a duly qualified and licensed savings bank engaged, in part, in the business
3 of constnrction lending utilizing promissory notes secured by interests in real property.
2. Alvarez and Associates, a General Partnership, is a for -profit partnership who has
entered into an agreement wilh the City of San Bernardino Redevelopment Agency to acquire and
3 rehabilitate existing propel ties within the Cily of San Bernardino.
® 3. This Agreement establishes the terms upon which PSB will commit a credit line limit
to Alvarez and Associates, a General Partnership to be drawn upon for the rehabilitation of existing
" ® properties within the City of San Bernardino.
R.EP RESELL 'LA:LLONS__AND -W LUC ANTI.ES
Alvarez and Associates represents and warrants to Provident Savings Bank, as of the date of this
Agreement, as of the date of each disbursement of Loan proceeds, as of the date of any renewal,
extension or modification of any loans, and at all times any indebtedness exits:
1. nnaticial_Ill armatiQn. Each financial statement of Alvarez and Associates supplied
to Provident Savings Bank truly and completely discloses Alvarez and Associates' financial
condition as of the dale of the statement, and there has been no material adverse change in Alvarez
and Associates' financial condition subsequent to the date of the most recent financial statement
supplied to Provident Savings Bank. Alvarez and Associates has no material contingent obligations
except as disclosed in such financial statements.
2. Litigation.aud_Claims. No litigation, claim, investigation, administrative proceeding
or similar action (including those for unpaid taxes) against Alvarez and Associates is pending or
threatened, and no other event has occurred which may materially adversely affect-Alvarez and
Associates' financial condition or properties, other- than litigation, claims, or other events, if any,
that have been disclosed to and acknowledged by Provident Savings Bank in writing.
3. Taxes. To the best of Alvarez and Associates' knowledge, all tax returns and reports
of Alvarez and Associates that are or were required to be filed, have been filed, and all taxes,
assessments and other governmental charges have been paid in full, except those presently being or
to be contested by Borrower in good faith in the ordinary course of business and for which adequate
reserves have been provided.
i
•
4. y_eai2QQQ. Alvarez and Associates warrants and represents that all software utilized
• in the conduct of Alvarez and Associates' business will have appropriate capabilities and
• compatibility for operation to handle calendar dates falling on or after January 1, 2000, and all
information pertaining to such calendar dates, in the same manner and with the same functionality
as the software does respecting calendar dates falling on or before December 31, 1999. Further,
Alvarez and Associates warrants and represents that the data - related user interface functions, data-
fields program instructions and functions of the software include the indication of the century.
• 5. Information. All information heretofore or contemporaneously herewith furnished
® by Alvarez and Associates to Provident Savings Bank for the purposes of or in connection with this
' ® Agreement or any transaction contemplated is, and all information hereafter furnished by or on
behalf of Alvarez and Associates to provident Savings Bank will be, true and accurate in every
material respect on the date as of which such information is dated or certified; and none of such
• information is or will be incomplete by omitting to state any material fact necessary to make such
information not misleading.
•
• AFFIRMA E- C- 0- VENANTS.
• Alvarez and Associates covenants and agrees with Provident Savings Bank that, while this
Agreement is in effect, borrower will:
• 1. Litigation. Promptly inform Provident Savings Bank in writing of (a) all material
adverse changes in Alvarez and Associates' financial condition, and (b) all existing and all
threatened litigation, claims, investigations, administrative proceedings or similar actions affecting
Alvarez and Associates or any Guarantor which could materially affect the financial condition o1-
any Guarantor.
• 2. FlnanciaLRecords. Maintain its books and records in accordance with generally
accepted accounting principles, applied on a consistent basis, and permit Provident Savings Bank
to examine and audit Alvarez and Associate's books and records at all reasonable times.
3. Addrtlonal_Infumiatron. Furnish such additional inlurnlation and statements, lists
of assets and liabilities, agings of receivables and payables, inventory schedules, budgets, forecasts,
tax returns, and other reports with respect to Borrower's financial condition and business operations
® as Provident Savings Bank may request Gonr time to time.
4. Guaranties. Prior to disbursement orally Loan proceeds, furnish executed guaranties
of the Loans in favor of Provident Savings Bank, executed by the Guarantors named below.
Guarantors
City of San Bernardino
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•
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5. LoanTroceeds. Use all Loan proceeds solely to acquire and rehabilitate acquired
properties within the City of San Bernardino.
6. Inspection. Perrnil employees or agents of Provident Savings Bank at any reasonable
time to inspect any and all Collateral for the loan or loans and Alvarez and Associates' other
properties and to examine or audit Alvarez and Associates' book, accounts, and records and to make
copies and memoranda of Alvarez and Associates' books, accounts and records. If Alvarez and
Associates now or at any time hereafter maintains any records (including without limitation
computer generated records and computer software programs for the generation of such records) in
the possession of a third party, Alvarez and Associates, upon request of Provident Savings Bank,
shall notify such party to permit Provident Savings Bank free access to such records at all reasonable
limes and to provide provident Savings Bank with copies of any records it may request.
8. Continuity of Operations. (a) 1Sngage in any business activities substantially different
than those in which Alvarez and Associates is presently engaged, (b) cease operations, liquidate,
merge, transfer, acquire or consolidate with any other entity, change ownership, change its name,
dissolve or transfer or sell Collateral out of the ordinary course of business.
AGREEMENT
Repi-esciitatioiis-of-Atv-arez-aiid -Associates, -a-General-Partnership
With respect to each property that is rehabilitated, Alvarez and Associates, a General Partnership
makes the following representation:
a. Alvarez and Associates, a General Partnership, will have clear- and marketable title
to the properly and that no liens exist against the property;
b. An "After Improved" appraisal value will be provided to Provident Savings Bank by
an appraiser acceptable to Provident Savings Bank.
C. The following items will be submitted to Provident Savings Bank prior to funding:
• Appraisal
• Termite Report
• Insurance invoice, to be paid and take effect upon acquisition, listing
Provident Savings Bank as additional insured
• Profornra detailing carrying costs, cost of sale, commissions, contingency,
resale an►ounl, rehabilitation costs and other related expenses.
d. Alvarez and Associates, a General Partmership, upon acquisition of the property, will
commence rehabilitation of the property within seven (7) working days after
acquisition.
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2
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e. Alvarez and Associates, a General Partnership will list lire properties with a Real
Estate company that will aggressively market the rehabilitated properties in or to
insure the quickest resale.
With respect to the credit line commitment, PSB will:
a. Agree to commit, to a maximum of one million dollars ($1,000,000), credit limit;
b. The time frame of the credit extension will be one (1) year from the execution of this
agreement.
With respect to each individual rehabilitated property, PSB will:
a. Provide the Funds necessary R)r acquisition and rehabilitation of the property;
b. Lend up to a maximum of seventy -five percent (75 %) of the "after" (rehabilitated)
appraised value;
c. Secure the loan to Alvarez and Associates, a General Partnership with a note and
first deed encumbering the rehabilitated property.
Teniis_oL1he- Loan - Contract.
a. Term- See attached program parameters.
b. Extensions - The term of the ►nasler commitment will be one (1) year. The term
will be automatically extended for one (1) additional year with the
provision that the program will be cancelable within thirty (30) days
written notice by either party. Financial statements will be provided
by Alvarez and Associates prior to any extension.
4. Notices.
Any and all notices or other communications required or permitted by this Agreement or by law to
be served on or given to either party hereto shall be in writing and shall be deemed duly served
when personally delivered to fire party to whom they are directed, or in lieu of such personal service
when received by PSB at the address as follows:
PROVIDENT SAVINGS BANK, FSB
3756 Central Avenue
Riverside, CA 92506
Att►i: Mr. William M. O'Laverty
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5. Cessation-of-Advances .
If Provident Savings Bank has made any commitment to make any Loan to Alvarez and Associates,
whether under this Agreement or under any other Agreement, Provident Savings Bank shall have
no obligation to make Loan Advances or to disburse Loan Proceeds if:
a. Alvarez and Associates or any Guarantor is in default under the terms of this
Agreement or any of the Related Documents or any other Agreement that Alvarez
and Associates or any Guarantor has with Provident Savings Batik;
b. Alvarez and Associates or any guarantor becomes insolvent, files a petition for
bankruptcy or similar proceedings, or is adjudged a bankrupt;
c. There occurs a material adverse change in Alvarez and Associates' financial
condition, in the financial condition of any Guarantor, or in the value of any
Collateral securing any Loan; or
d. Any Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such
Guarantor's guaranty of the loan or any other loan with Provident Savings Bank.
6. AdditiQma.LC9-v-enants
a. Alvarez and Associates agrees to provide to Provident Savings Bank annual CPA
prepared financial statements and corporate income tax returns within ninety (90)
days of fiscal year end.
7. Attorney! Lees.
Should any legal action or arbitration be commenced between the parties concerning any provision
of this Agreement or the rights and duties of any party hereunder, the party or parties prevailing in
such action shall be entitled, in addition to such other relief as may be granted, to reasonable
attorneys' fees and court costs as determined by the court.
8. General. This document contains the entire Agreement between the parties hereto,
supersedes and is in lieu of all prior discussions and representations, and cannot be modified in any
respect except by an amendment in writing signed by both parties. The invalidity of any portion of
this Agreement sliall in no way affect the balance thereof. This Agreement shall be binding upon
the administrators, successors and assigns of each party and construed in accordance with the laws
of the State of California.
9. Sumessm-and_Assigns. All covenants and agreements contained by or on behalf of Alvarez
and Associates shall bind its successors and assigns and shall inure to the benefit of Provident
Savings Bank, its successors and assigns. Alvarez and Associates shall not, however, have the right
5
to assign its rights under this Agreement or any interest therein, without the prior written consent
of Provident Savings Bank.
10. Survival. All warranties, representations, and covenants made by Alvarez and Associates
in this Agreement or in any certificate or other instrument delivered by Alvarez and Associates to
Provident Savings bank under this Agreement shall be considered to have been relied upon by
Lender and will survive the making of the Loans and delivery to Provident Savings Bank of the
Related Documents, regardless of any investigation made by Provident Savings Bank or on
Provident Savings Bank's behalf.
H. TimeJsQf-Tlic_L:ssence. Time is of the essence in the performance of this Agreement.
12. _W_aivef. Provident Savings Bank shall not be deemed to have waived any rights under this
Agreement carless such waiver is given in writing mid signed by Provident Savings Bank. No delay
or omission on the part of provident Savings Batik in exercising any right shall operate as a waiver
of such right or any other right. A waiver by Provident Savings Bank of a provision of this
Agreement shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict
compliance with that provision or any other provision of this Agreement. No prior waiver by
Provident Savings Bank, nor any course of dealing between Provident Savings bank and Alvarez
and Associates, or between Provident Savings Bank and any Grantor, shall constitute a waiver of
any of Provident Savings Bank's rights or of any obligations of Alvarez and Associates or of any
Grantors to any future transactions. Whenever the consent of Provident Savings Bank is required
under this Agreement, the granting of such consent by Provident Savings Bank in any instance shall
not constitute continuing consent in subsequent instances where such consent is required, and in all
cases such consent may be granted or withheld in the sole discretion of Provident Savings Bank.
6
IN WI'T'NESS WHEREOF, each party has caused this instrument to be signed in its corporate name
on its behalf by its proper and duly authorized officials.
Dale:
PROVIDENT SAVINGS BANK, FSB
By: William M. Lavert , Vice President
Alvarez and Associates,
a General Partnership
L 'Ile
By: Marisela Labast da
�.
Cl-
CB :Jaime Alvarez
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ALVAREZ AND ASSOCIATES, A GENERAL PARTNERSHIP
CITY OF SAN BERNARDINO
ACQUISITION, REHABILITATION, AND RESALE PROGRAM PARAMETERS
Maximum Loan: 75.00% of the "As Improved" value.
Interest Rate: Fixed rate equal to the Wall Street Journal Prime
Rate + 2.00% (Current rate is 8.50 %)
Payments: Monthly interest only on funds disbursed
Loan Term: Twelve (12) months
Processing Fee: $75.00
Inspection Fee: $200.00
Flood Certification: $22.00
Loan Origination Fee: 2.00%
Interest Reserve: Six months full interest
Number of properties: The number of units will be limited to ten (10)
when first initiated. Any request for inventory
above this number ten (10), must be approved
by Provident Savings Bank. The maximum
unsold and rehabilitation inventory will be limited
to $1,000,000.
Loan disbursement: 100% of the acquisition price at close of escrow.
For the rehabilitation of the properties the
disbursement will be 25% at acquisition, 40%
when 50% complete and 35% when complete.
8
EXHIBIT
1:11
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•
PROVIDENT SAV)NGS BANK
3 3756 Central Avenue
• Riverside, CA 92506
2' rnNSTMICTION LOAN AGREEMENT
Loan No. Master File /San Bernardino Dale: September 18, 1998
This AGREEMENT is executed by the undersigned Borrower(s) hereinafter called "Borrower ", for the purpose
of obtaining a loan from PROVIDENT SAVINGS BANK, hereinafter called "Provident" evidenced by a note
or notes for up to $1,000,000.00, dated July 16, 1998 payable to Provident and secured by a deed of trust
affecting real property in the City of San Bernardino, County of San Bernardino, Stale of California.
Borrower hereby agrees to rehabilitate in a professional manner, according to the "Rehabilitation Program
Agreement" dated July 16, 1998, existing properties within file City of San Bernardino
The net proceeds of this loan, upon recording of the Deed of Trust are to be placed on deposit with Provident,
logelher with any funds required to be deposited by Borrower, called Borrower's Deposit, in a non- inleresl
bearing account enlilled Loans In Process, (hereaf(er "the assigned account") Borrower agrees Ihnt the
deposit of said sums in said account by Provident shall be conclusively deemed payment in full to Borrower
of the consideration for the Note and Deed of Trust. Such funds are to be paid out and used for the purposes
set out herein. Subject to the provisions of this agreement, Borrower hereby irrevocably assigns to Provident
as additional security for [he obligations secured by the Deed of Trust and the due performance of this
agreement by Borrower, and for any other obligation of Borrower to Provident, all Borrower's right, title and
interest in and to said account and all funds to be placed (herein, specifically including amounts that may be
deposited in said account from time to lime in the future either by Borrower or Provident. Borrower
acknowledges that it has no right to the funds in said account other than to have (he same disbursed by
Provident in accordance with this agreement, which disbursements Provident, upon its acceptance of this
agreement, agrees to make, for [lie purpose and upon (lie conditions set out herein. Borrower agrees Oral,
except as provided above, any assignment or transfer, voluntary or involuntary, of this agreement, or any right
hereunder, shall not be binding upon, nor In any way affect Provident without its written consent, and that
Provident may pay out the funds In said account, as provided herein, notwithstanding any such assignment
or transfer. Borrower and Provident further agree that all funds from Borrower's Deposit shall be disbursed
before disbursement of any of the net proceeds of the loan.
Borrower further agrees as follows:
COMPLETION: Borrower agrees to commence construction of the proposed
Improvement promptly after the recordation of the aforesaid Trust Deed arld to
continue such construction with reasonable speed and in a workmanlike mariner.
Borrower will complete such improvements promptly, in accordance with the said
plans and specifications, including any specifications prescribed by Provident, and
with all requirements of all governmental authorities having or asserting jurisdiction,
and will pay the cost thereof. if there is any difference between any such prescribed
specifications and Ilia plans arid specifications furnished Provident pursuant hereto,
then the requirements of whichever thereof are the higher shall be met in
construction of said improvements. Time is hereby expressly made of the essence
of this agreement.
TITLE INSURANCE: To furnish Provident a policy of (tile insurance satisfactory to
It, showing the Deed of Trust to be a first lien on the property, excepting only such
items as are approved by Provident. No work shall be commenced nor any
materials Tlelivered upon or near fire property prior to the recording of the Deed of
Trust unless the builder or owner has been insured by an acceptable title company
thought an Indemnity agreement. Should any work be commenced or materials
delivered prior (o the recording. Provident may apply as much of the funds in the
assigned account as may be required to satisfy In full the indebtedness secured by
the Deed of Trust and to pay all expenses Incurred in connection with this
transaction.
3. CONDITIONAL PURCHASES: No materials, equipment, fixtures, or any other part
of the improvements shall be purchased or installed under conditional sales
agreements or under other arrangements wherein the right Is reserved or accrues
to anyone to remove or to repossess any such Reins, or to consider them as
personal properly, unless specifically authorized in writing by Provident.
4. SECURITY INTEREST: Borrower hereby grants to Provident a security interest In
all supplies, materials, fixtures, carpels, appliances, furniture and equipment now or
hereafter located on the properly, together with all proceeds thereof, including
insurance proceeds paid or payable as the result of any loss, Injury or damage to the
foregoing collateral, whether or not Provident is named beneficiary under such
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insurance. Upon request Borrower will furnish Provident an inventory of such
collateral.
5. DISBURSEMENTS: All funds in the assigned account are to be disbursed by
Provident as provided by this agreement, in order to provide funds for the
construction of the Improvements, and are to be paid in accordance with the
following to Provident, to Borrower, or to the contractors, material suppliers or
laborers engaged in such construction:
(a) Upon recording, or as soon thereafter as may be convenient, Provident shall
disburse to itself from the assigned account or net loan proceeds, its loan
fee and to the escrow holder the escrow holder's fees and costs, including,
but riot limited lo, escrow fees, title insurance premiums, tax service
contracts, recording costs and any other deductions related to (his
transaction.
(b) All remaining funds in the LIP account will be disbursed in accordance with
the Voucher Payment Plan set forth below unless a different method of
disbursement is described in Exhibit A attached hereto and by this reference
incorporated herein.
(c) Provident will retain, the greater of (1) ten percent (10 %) of the allolled
construction funds wiihln the construction loan, or (if) one hundred percent
(100 %) of the general contractor's profit Included within the construction
loan and shall disburse such funds only after the conditions of paragraph 116
have been met.
VOUCITER PAYMENT PLAN: Provident shall disburse at it's option to either General
Contractor, Borrower, Subcontractor, laborers or material supplier. Such
disbursements shall be only upon vouchers executed by Borrower or it's duly
authorized agent (as evidenced by their designation on the "Authorization to Approve
Vouchers" form which is executed concurrently herewith and Incorporated herein by
this reference). The presentation to Provident of such order to pay shall constitute
a representation on (he part of Borrower that the funds therein referred to have been
used in the construction of the improvements covered by this agreement, arid
Provident shall be enlilled to rely thereon and Borrower shall hold Provident free arid
harmless front all liability for payment of the voucher as presented, including without
limitation, attorney's fees, costs and expenses in connection therewith. Such
vouchers may be approved and paid by Provident upon such terms arid conditions
as it may see fit to impose to satisfy itself that the above representation by Borrower
IS factual.
6. COMPLETION OF IMPROVEMENTS: Upon completion of the construction of the
improvements and
(a) recording of a valid notice of completion;
(b) payment of all outstanding claims for labor arid materials;
(c) receipt by Provident of title Insurance, including any required endorsements,
satisfactory to Provident, Insuring the continuing priority of Provident's Deed
of Trust; and
(d) if Borrower Is riot in default as to any obligation owed to Provident;
all funds then remaining in file assigned account may, at Provident's discretion, be
disbursed by P(oVIdent to Borrower or It's order.
INSPECTIONS: Lender may elect, at it's sole discretion, to require that an inspection
be mad of the Project to confirm that the labor and material for which the
disbursement Is requested pursuant to the voucher has in fact been furnished Io the
Project In accordance with the requirements of the Loan Documents. Any such
Inspection obtained by Lender shall be for the sole benefit of Lender arid not for the
benefit or protection of Borrower. If Borrower wishes to confirm that labor and
material has been furnished to the Project, Borrower may elect, at its sole expense,
to conduct such Inspections as 11 deems appropriate for Its own protection.
INVOICES, LIEN RELEASES, PAYMENTS: Borrower agrees if and when required
by Provident as a condition precedent to the payment of any funds from the assigned
account, to furnish recelpled bills and releases of lien rights covering work done and
materials furnished for the Improvements showing the expenditure of an amount
equal to the total funds at such time to be disbursed from the assigned account, and
Provident shall be entitled to rely wilhoul further Inquiry upon the written order or
receipt of the borrower in making any advances or payments or in any other maller
arising under this agreement. Borrower agrees that all funds received hereunder
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received In trust for the purpose of paying in full all contractors and material suppliers
and laborers then or theretofore engaged in said construction, and that Borrower
shall not have any beneficial interest In said funds unless and until said purpose has
been fulfilled.
®
9. RIGI IT TO ENTER - CONFORMANCE: Provident or its agent shall have the right at
all times to enter upon said premises during the period of construction, and if said
work is not in conformance with said plans or specifications or is not otherwise
satisfactory to Provident, It shall have the right to slop said work and order it's
replacement whether or not said unsatisfactory work has (heretofore been
Incorporated in the Improvements, and to withhold all disbursements from the
assigned account until said work is satisfactory to it; and if said work Is not made
satisfactory to Provident within fifteen (15) calendar days from the dale of stoppage
by Provident, such failure to do so shall constitute a default by Borrower under the
terms of this agreement.
10. CESSAiION OF CONSTRUCTION: Should work cease on the Improvements,
I
specifically Including stoppage by Provident fn accordance with Paragraph 8 hereof,
or for any reason whatsoever not progress continuously fn a mariner satisfactory to
}
Provident it being the sole judge as to this requirement, then Provident may, at it's
declare Borrower to be In default hereunder arid/or may lake
option, without notice,
possession of said premises and let contracts for or proceed with the finishing of said
improvements and pay the cost thereof, plus a fee of fifteen percent (15"/x) for
supervision of construction, disbursing all or any part of the loan for such purposes,
arid should cost of finishing said improvements plus such fee amount to more than
the und(sbursed balance of the loan (hen such additional costs may be expanded at
it's option by Provident, in which event fl shall be considered and be an additional
orate
loan to the Borrower and the repayment thereof, together with Interest thereon at the
by the Trust Deed arid
provided fn the above loan, shall be secured aforesaid
shall be repaid within thirty (30) days after the completion of said improvements, and
o
Borrower(s) jointly and severally agree to pay lire same. Borrower further hereby
authorizes Provident at it's option at any lime, whether default exists or not, either
fn It's own name or In the name of the Borrower, to do any and all things necessary
or expedient in the opinion of Provident to secure the performance of the
construction contracts arid to secure the erection arid completion of the
improvements substantially in accordance with the plans and specifications, and to
accept the improvements as completed or substantially completed, and to do any
and every ac(o or thing pertaining to or arising out of the construction or completion
of such improvements or any contract therefore, disbursing all or any part of the loan
proceeds for such purposes. In addition to the specific rights and remedies
hereinabove mentioned, Provident shall have the right to avail Itself of any other
rights or remedies to which it may be entitled under any existing law or laws.
11. LIMITATIONS OF STARTS: Provident hereby reserves the right to 01pose
reasonable limitations on the number of structures upon which Borrower may
commence construction during the period of the construction loan if Provident deems
such a limitation would be In It's best interests. Said limitations may be imposed at
any time prior to the start of trenching for footings and foundations.
12. DEFAULT /BANKRUPTCY: In lire event of a default by Borrower In the performance
of any of the terms, covenants and conditions contained fn this agreement, or any
Note or Deed of Trust given In conjunction herewith, or In the event of lice filing of a
bankruptcy or Chapter proceedings by or against Borrower, all sums disbursed or
advanced by Provident shall, at Provident's option Immediately become due and
payable arid Provident may withdraw any funds on deposit with II including without
limitation any deposit made by Borrower under the (arms of (his agreement and
credit Ihs same bpon any Indebtedness of Borrower. Upon -ouch default by
Borrower, Provident shall have no further obligation to disburse funds front the
assigned account and shall be released from all further obligations under this
agreernenl. Application of funds by Provident to Borrower's obligations as provided
by this paragraph shall not be deemed a waiver of any default which may exist under
the Note or Deed of Trust and shall not alter or prejudice any other rights Provident
may have against Borrower. Any default in the terms of this agreement shall, at
Provident's option, constitute a default under the Deed of Trust Willing Provident
to exercise any remedy it may have with respect thereto.
13. IRREVOCABLE AGENCY: Borrower does hereby Irrevocable appoint Provident as
agent to rile for record any notices of completion, cessation of labor, or other notice
that Bank deems necessary to file for record to protect any to the Interest of Bank
under the provisions of this agreement or the Note or Deed of Trust, the parties
agreeing that such agency Is one coupled with an interest and as such is Irrevocable.
14. CHANGES IN PLANS OR SPECIFICATIONS: No change in the plans or
specifications shall be made after the same have been approved by Provident,
without first obtaining the written consent of Provident to such changes; and all
contracts let by Borrower or it's agent in connection with said construction shall
contain this provision.
15. BONDS: if required by Provident, Borrower shall obtain and pay for:
(a) a Performance Bond (also sometimes known as a completion bond)
covering performance of all the general contractor's obligations under his
contract with Borrower; and
(b) a Labor arid Material Bond (also sometimes called a payment bond, or a
lien -free completion bond) covering payment of all claims of suppliers of
labor and material In connection with construction of the improvements. The
performance bond here required shall specifically name Provident as a
primary obligee and the labor and material bond shall cover as obligee all
claimants who would be entitled to file mechanic's liens under applicable
California law. The form and provisions of such bonds shall be subject to
the prior approval of Provident.
16. ASSOCIATION SIGNS: Borrower hereby grants Provident the right to erect or cause
to be erected a sign or signs identifying Provident as the lender on file property so
long as such signs do riot unreasonable interfere with the construction of the
Improvements.
17. CON IRACTORS, SUBCONTRACTORS, MATERIAL SUPPLIERS: Borrower shall
furnish to Provident within fifteen (15) days of written request from Provident the
names and addresses of all contractors, subcontractors and material suppliers
employed arid all major contracts made in connection with the construction of [lie
Improvements on the properly.
18. COLLATERAL: A collateral security for repayment of the indebtedness mentioned:
(a) Borrower hereby sells, assigns, transfers and sets over to Provident all of
it's rights, title and interest In and to the above mentioned Plans arid
Specifications, Including all amendments, modifications, supplements,
general conditions and addenda thereto. Such assignment shall be
operative only upon default under this agreement, the loan documents, or
as provided hereinafter. In the event said assignments shall become
operative as aforementioned, Borrower agrees that Bank shall not assume
any of Borrower's obligations or duties regarding said plans, including the
obligation to pay therefore, until Provident shall exercise It's rights under [his
paragraph. Borrower represents and warrants that there has not been, and
will not be during the term of this agreement, any sale, assignment, pledge,
transfer, mortgage, hypothecation or other encumbrance of Borrower's
interest In said plans.
(b) Borrower hereby assigns, sells, transfers and sets over to Provident all of
it's rights, title arid Interest in and to that certain construction contract, if any,
entered Into by arid between Borrower and [he Contractor for construction
of the real properly Improvements covered by this agreement. Such
assignments shall be operative only upon default under this agreement or
Ilia loan documents.
19. DEMAND FOR ADDITIONAL FUNDS: If and whenever Provident, without hereby
creating any liability on the part of Provident for failure to do so, in It's sole and
conclusive judgment shall delerruine and nolify Borrower that the amount of funds
remaining the assigned account are less than [he amount required to fully compleled
arid pay for the innjniovemenls, arid Provident demands that Borto%kw deposit fn said
account an amount equal to such deficiency as estimated by Provident, them said in
that event Borrower shall comply will) such demand with tell (10) days from the dale
thereof. Borrower's failure to comply shall be an event of default hereunder.
20. WAIVER: The waiver by Provident of any breach hereof shall not be deemed, nor
shall the same constitute, a waiver of any subsequent breach or breaches on the
part of Borrower.
21. PROVIDENT'S RIGFIT TO ACT: Provident shall have file right to continence, to
appear In, or to defend any action or proceeding which in Provident's opinion affects
[he rights or duties of the parties hereunder or the payment of any funds in the
assigned account arid In connection therewith pay out of said deposited funds
necessary expenses, employ counsel and pay reasonable attorney's fees, all of
which Borrower agrees to repay to Provident upon demand In the event there are not
sufficient funds It the assigned account to pay the same.
22. RESTRICI IVE RIGI IT OF ACTION: This agreement is rnade for the sole prolecllon
of Borrower and Provident, It's successors and assigns, arid no other person or
persons shall have any right of action hereon nor shall any of it's leans and
conditions be construed to be for lire benefit of any person not a party to this
agreement.
23. PROVIDENT will be under no obligation to release the final undisbursed funds from
the assigned account until it is in possession of an acceptable ALTA Rewrite title
Insurance policy.
24. PROVIDENT may, In it's sole and conclusive judgment, apply any and/or all of the
funds remaining in the assigned account at the conclusion of construction to the
principal balance of the loan.
NO MODIFICATION OR CHANGE IN THIS INSTRUMENT SHALL BE VALID
UNLESS APPROVED IN WRITING BY AN OFFICER OF PROVIDENT.
Executed this P91t day of i 0-11i 11AD' , 19iL.
Alvarez and Associates, a General Partnership
By: Marisela Labaslida, Gg eral hariner
B J Ine Alvarez, Gen rat Partner
Being fine only General Partners of said Panlnershlp
Accepted --- - - - - -, 19_ -. --
PROVIDENT SAVINGS BANK
By
William M. O'Laverly, Vice President
We, the undersigned, understand as soon as the foundation Is poured, we must call Provident Savings Bank
for the title company to make an Inspection. No loan funds, other than funds for reimbursement of plans, permits and
related lees will be released from the construction loan until the foundation endorsement Ines been obtained.
Alvarez and Associates, a General Parinership
By: Marisela Labaslida, Gei) rat Partner
By: J nne Alvarez, General P6ner
Being the only General Partners of said Partnership
(To be completed only where contractor is not the owner)
Undersigned is the general contractor for the project which the foregoing Building Loan Agreement covers. II Is
Undersigned's understanding that Provident Savings Bank will not make the loan referred to therein, the net proceeds
of which are to be used pursuant to such an agreement In lire construction of such project, unless Undersigned agrees
to be bound by fhe terms lyereof. Undersigned understands the provision of said agreelnenl and In order to Induce
Provident Savings Bank to make the loan, arid for other good and valuable consideralidd, receipt of which Is hereby
acknowledged, agrees to be bound by such provisions In its construction of the project. Undersigned, without lindtallon
on the foregoing, specifically agrees (1) to continence construction of the proposed Improvements promptly after
recordation of Provident's Deed of Trust, and not before, (2) to continue such construction with reasonable speed and
In a workmanlike manner, and (3) to complete such Improvements promptly Inn accordance with the plans and
specification described In said Agreement, including any specifications prescribed by Provident and with all requirements
of all governmental sulhoriges having or asserling jurisdiction.
-V1 Seth ahslruct n D v lopment
I 1 •tor Labasli ! Dale
737396
LICENSE NO.
TAX ID NO.
Date
PROVIULN'I' SAVINGS HANK
Au(1lurizn(ion to Approve Vouchers
Lonn No. Master File /City of San Bernardino
0 1'rovidenI Savings plank, is hcleby nutllorized to pay vuuchcis ur vlhcr author izcd ducumcnls lcqucsling
loan funds as lnovidcd in Ihecuns(i uclioo Loan Aglcclncnt belAvecn (lie undclsigoed Intd Ilse (lank upon
signatures of (hc following:
I. If uuly one signa(ule is Ic(juilcd, illdiellle (Ile 11111110liMl Sigl1011llC I)CIVIV ill (Iris Ilarag11111I1.
co ANY ONE OF'1'111; FOLLOWING:
_ h/u'L, c" (1. T %�,� - - • L �% —
.IpKCllllt Ignniu,e [j.ccl1iii�Il .E l�nelii�
MAltMMA LAIIASTIM A1ME ALVAREZ
SpKclmcn Signnlule
91Kclnen Slgnnlule
2. If any (wo signatures arc leydied, indicate the combination of aulhorizcd signatures below ill this
paragiallh. ANY ONE OF'1'111 ?, FOLLOWING IN COLUMN ONE PLUS ANY ONEOF'I'llle
FOLLOWING SHOWN IN COLUIIN11VO.
Culuuul One coluuln 'frvu
Specimen Slgnnlule sjKclmcn Signnlule
Specimen Signature
slecbnen Signnlule
Specbnen Slgnnlule
Slechuen Slgnnlure
Specimen Slgnnlule specimen Signnlule
BORROWERS AUTHORIZATION
LVAREZ AND AS'O,IA'1'Is ":3, A (IENERAL I'All'1'NIiNSfill'
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f C•c.7tiCt�- ,� _
In Owe' BOI /0N'[I
MANISELA Ln13A�1'illn, (;L:NEIIAL 1'AIt'1'NLit JA1h1E ALVAlil,7, CENEIIAL 1'AII'1'Nlsli
Be11le Cite only General Partners of Bald l'arLiler8111V
aonower 11 rower
PSU 7100 (LI' U30 Addendum to LP 031.7/9U)
i1
I
PROVIDENT SAVINGS BANK, FSB
3756 CENTRAL AVENUE
RIVERSIDE, CALIFORNIA 92506
e
Telephone: (909) 686 -6060
BORROWS ELATION
Load H master File /City of salt Bernardino
®
The undersigned (and, if the undersigned by more lhau one, each of the undersigned) is the applicaut fi r
and will become obligor on a loan to be made by you in the amount of HP to 01le A1illiou Dollars and
00 /10O`s ($1,000,0011.011), secured by real estate described as follows:
<
Various Properties within the City of Sall Beruardiuo as per the "Rehabilitation I'rogr:uu A};rccnicnt
3
dated July 16, 1998
AND hereby cer ifics that:
f t - t rUtcrshi s s ndicales and corporations of which the
I he names and descupliOils o persons, tus s, pa p , y
obligor is a nominee, beneficiary, partner, member, or record or beneficial stockholder owning tcu (10)
percent or more of the capital stock and of all nominees of the obligor owing you any balauces on
outstanding loans on the security of real estate are as follows:
City DattALAgt muRl Cadlll.intiL
Rialto July 16, 1998 $500,000.00
Ontario July 16, 1998 $250,000.00
Fxeculcd (his day of i q-)
Borrower:
Alvarez and Associates, a General Partuership
Mariscla Labasli i, General Parluer
By.
d
e Alvarez, G al I'artncr
Being the only General Partners of said Par(ncrship.
Form 68 -P.
07/24/96
i
Loan It Master File/City of San Bernardino
RELEASE OF CONTRACTOR'S DOCUMENTS
i�
CONTRACTOR and OWNER acknowledge that certain documents, including but not limited
w to, invoices, bills, cost breakdowns, etc., relating to CONTRACTOR'S cost breakdown and/or
progress payment or back -up for voucher requests will be given to PROVIDENT SAVINGS
BANK from time to time fiom the origination of the loan through the administration and final
draws on the loan, by CONTRACTOR, his subcontractors, material suppliers, or lllcir agents.
Both parties agree that these documents may be released to either party without the consent of the
other, regardless of the source of the documentation.
Both parties further agree to release PROVIDENT from any liability, claims or damages for
PROVIDENT'S release to the parties of these documents.
DATED: 6i-2-7 `A
DATED: /'q'? I i
Alvarez and Associates, a General Partnership
I
OWNER L�L
Marisela La a ida, General Partner
OWNER C��....
Jaime Alvarez, Geu ral Partner
Being the only General Partners of said Partnership.
VicSeth Con t - c 'on �v' 10 Inenl
DATED CONTRACTOR
By: 11 cl r Labastida
rr,tst_ur r 1 -i.0
CERTIFICATION /AUTHORIZATION TO RELEASE INFORMATION
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The undersigned certify the following:
1. I /We have applied for a mortgage loan from Provident Savings hank fleteafter referred to as
"Lender ". In applying for the loan, I /we completed a loan application containing various information on the purpose
of lire loan, the armount and source of the downpayrnenl, employment and income information, and assets and
liabilities. I /We certify that all of the information is true and complete. I /We made no misrepresentations in the loan
applicalion or other documents, nor did I /we omit any pertinent information.
2. I /We understand and agree that Lender reserves the right to change the mortgage loan review process to a full
documentation program. This may include verifying the info')malion provided on the application with the empfoyer
and /or the financial institution.
3. I /We fully understand that it is a Federal crime punishable by fine or imprisonment, or bolls, to knowingly make
any false statements when applying for this mortgage, as applicable under the provisions of Title 16, United Stales
Code, Section 1014.
I o Whom It May Concern:
1. I /We have applied for a mortgage loan from Lender. As part of the application process, Lender may verify
infol malion contained in ')1y /our loan application and in other documents required in connection with the loan,
either before the loan is closed or as part of its quality conbol program.
2. I /We authorize you to provide to Lender, and to any investor to whom Lender may sell my mortgage, any and .
all information and documentation that they request. Such information includes, but is not limited lo, employment
history arid income; batik, money market, and similar account balances; credit history; and copies of income lax
returns.
Lender or any investor that purchases the mortgage rmay address this authorization to any party ')allied in the loan
application.
3. A copy of this authorization may be accepted as an original.
Notice to Borrowers: this is a notice to you as required by the flight to Financial Privacy Act of 1978 that
IIUD /FIIA /VA has a right of access to financial records held by financial institutions in connection with 1110
consideration or administration of assistance to you. Financial records involving your transaction will be available
to IIUb /FIIA /VA without further notice or authorization but will nol be disclosed or released by This institution to
another government agency or depar(tueut without your consent except as required or permitted by law.
Your prormpt reply to Provident Savings or the investor that purchased the rnorlgage is appreciated.
Borrower's Signature
Cie
Borr'o W r'6 Signature M
_ _ n
GEN
PARTNERSHIP
Date I Social Security Number
Bela babas tlda, GeneraValPar Liter I Social Security Number
Botr er's Signature Jai e Alvarez, GeIIeral PAI tmer I Social Security Number
Being the only General Partners of said Partnership
Borrower's Signature Date I Social Security Number
PSB 263 12/95)
'1'111; HOUSING FINANCIAI, DISCRIMINATION ACT OF 1977 FAIR I,I;NI)INC, NOUICK
IT IS II,I,KCAI, TO DISCRIAHNATE, IN "f111S i'It011ISION OF Olt IN '111V AVAILA1111AI v OF FINANCIAL
ASMsrANC:K HECAUSE,, (IE'I'lll, CONSIDERATION OF'
I. - URENDS, CIIAI(ACIE,It1STICS (lit CONI11'I HM,1; IN ril NEK-1111OR11(IOD OR
(ArAWRAPHIC ARVA Stilt ROUN1IIN(. A I oINING ACCOMMODATION, UNI,ISSS -rmr..
FINANCIAL, INS11111 r1ON CAN DV51ONSTRA'rR IN '1111, PAll'rl1AILAR CAST? 111A 1' SUCII
CONSIDE,RA'IION IS II1111.I11tF.i1 '10 AVOID AN UNSAFE, AND IMSUUND IIIISiNE,SS
PRACTICE; Olt
1. RACE, COLOR, RIFIAWON, SI', t, NUARITAI, STATUS, NATIONAI, ORIGIN Olt ANCESTRY.
IT IS II,I,I,CAI.'f0 CON SIDEAt "I LIE, RACIAL„ F :1'IINIC, RE,i,IG1OCl,5 OR NATIONAL, ORIGIN C(►NI'OSII ION OF
A NI:IGIIRORIIOOD (lit ( ;E- O(:I(AI'IIIC AREA SIII(ROUNDING A HOUSING AC('OAIAI(►IIATION OR IVllh:'I11KR
OR NOI S(ICiI CIIAJI'(►SffION IS I1NDE,RGOIN(: ('IiANCE, OR IS I.ti'ICCII;II TO UNDEA(M) CIIANGi., IN
APPRAISIM: A 11)11SIN(: A('C(I1\1N1)1►A'I'lI1N (lit IN DEAPAthlININI; (1'illrl'lll'At flit 1`101', OR IINDER 11'l1Ai'
I'I;ItA15 ANU Cl1ND1'I'IUNS,'fU 1'It)VIDP. PINAN('IAL ASSISTANCE.
'1'111.Si; PROVISIONS GI)1'ISRN FINANCIAL, ASSISTANCE, F01t ('hill'( ►S E, I)I' '1'111% 11IItC11A5E.,
CONSTRI1C'riON, REIIAIIII,II'AIION Olt RP.FINANCIN(: OF ONE 'lO F(IIIR (INll' FANIIi,I' It1.Sll)I,NCIi5
OCCl11'1ED ILA' 'I HE OAAWER AND POI( THE 1'1110'1)51; OF THE IIOAIF, IAII'ROVE,AIE,NI' OF ANY (ME 'r)
FOUR UNIT FAIAHL ' RESIDENCE_
IF YOU IIAVK ANY O11E,S'1 UMS AIInur YOUR Itilal'I;S, on IF 1'011 11'1511 '10 FILLS A COIAIVI HINT,
CONTACT flit, AIANAUVAIENI' IM'11115 FINANCIAL iNS'I I I'Il'l ION lilt:
�" I SAVINGS INS" UTAI PIONS U STATE NIBNIIIE.It RANKS
U DEPARTRIENT OF CUIII'.
DE,1'I'. Oi S \VINCS ANI) L(lAN
FP.DE,I(A1, HFSERVP, IIANI(
3700 WILSHIRE, BLVD.
300 SO11111 SPRING SI REFIT
1111 AIARKEU S'I REJ."T
511111; GAIL
S(II K 111502
SAN IRANCISCO, CA 9.11115
LOS AN(:I;I,F,S, CA 90010
LOS AN(;ISI,ISS, CA 9111113
_ 1
NA'I10NA1, RANKS �-
NIOit'1(7A(:F, COMPANIES
� _) I)I?I'Alrl'AII,N "1' OF CORP.
CONIr IRO1,Lr,K Or rnr. CUItitEN('1'
DVI'I'. OE Ill {AI, ESTATE,,
1390 AIAI(Kvr S'i'ItEKi*
CONSIINIP.It GXAI\IINA'I'IONS DIVISION
22111 BROADWAY
Sill I1;N10
511 FRE,AIONT SI'IIF.F:I'
SACRANIENIO, CA 9511111
SAN PRANCISCO, CA 9.11111
SAN FRANCISCO, CA 9.11(15
NON- AWNHIER INSI_JRKD RANKS
_� FP.1► AW, l'1ll,i111' UNIONSLXI
SAYINI:S INSI I IIrIIONS
FDIC - SAN FRANCISCO
NCIIA
S(IVERVIS01tV AGE,N'1'
25 ECKER ST., STI;. 231111
23011 ('LAB" ION Itll., S 1 F. 1350
0 I OF SAN FRANCISCO
SAN PRANCISCO, CA 941115
CONCORD, ( :A 9,1521)
1 IIIONI WAIERV SE, STE. dull
SAN FRANCISCO, CA 94104
EQUAI, CltlShl'I' OI'1,ORTUNITY ACT FAIR I,ENDING
NO TICK
I'lll, FISDVHAL EVIIAL CRKDI'F OI'I'(lRT(INI VY ACT PROIIII{1'l;S CRE,lil'I'O1t5 I'ItIIAI DISCRIAIINAI ING
A(:AINS1' C'RE.D11' AI'I'LUCANI;S ON THE, I{ASIS OF RACE, COLOR, RE.I,WION, NAII()NAL ()RWIN, SE,K,
NIARRAI, SNUVS, A"E II'R(11'IDE" ' mxr THE AI'I'I.I('ANT IIAN THE ('AI'A TIT 'I0 KNUER INUO A
MINDING CI)N1RAUT►: IIF,CAIISE, AM. OR raver (►E THE AI'I'I,I('ANI 'S IN(A)AIK DERIVES FROM ANA'
1'11111.1(: ASSISTANCE, VRO(,'RAAI; flit IIF,CUME THE AI't'I,i('ANT IIAS IN 1:(11111 FAIIII K`(RR('ISP) ANA'
111(411' IVDVR 'l HE CUNSIIAIP;it 1_'111.111, 11ROI P:(AWN AC 1'. '1 HF.. FLDI,JtAI, A(:BN('A "I IIA'I AIJA11NISI EMS
CIIAIPLIANCE 1VI1111Ills LAW CONVIAMING'rIDS VRED11011 IS:
U
NATIONAL HANKS [-] S I -A'1 F. AIISA Ill I'M RANKS U I I.1,1S1(A1, Cltl,l)I I' 11Nl()NS
CON II' Till )I 11IKR (it" 'I IIF, CUItItKNCY PEDE IAI, RK:a.RVE, IIANK NCHA
CONSUAIE,R EXAAIINAI IONS DIVISIIIN 1111 AIARKIQT S'I ItEEA' D110 CLAY" I'ON It1)., S I P.. 1350
50 PHEMONT NTHE,IVU SAN FRANCIS014 VA CONCORD, CA 945211
SAN FRANCISCO, CA 9,11115 9.11115
SAVINGS INS11 I'll FIONS (_-I NIM- 1\110111141t 1_J A ORI (:ME, UOAli'ANIFS
SIRIERVISORY M:E,NT INSIJRVD HANKS FRIWAtAL'I RAIIE, CONIAIISSION
0 I OF SAN FRANCISCO FDIC - SAN FRANCISCO EQ0A1, CREDIT (II'POR I IJNII Y
I AIONTGomitY S'IItF,I r. 51'1:. dull 25 EUKKIt ST., STL 2.11111 HIM 407
SAN FRANCISCO, CA 941114 SAN FRANCISCO, CA 9.1105 WASHINGTON, D.C. 215111
1 (1111;) RECEIVED A COPY OF THIS No IICE
CNUiV1,r ....... f E)F I IiCiE,ll' I'
A A JZZ ANU A 'Sb A' 15, A /(SCNEIIA1, PARTN ;11;9,1111'
E t- -
F1'N1tI!s'I!aLA LAllAS'1' A, GZNI;IiAI, 1'AR'1'Fil';Il ^J'A'IIAM; WARM, USMZRAL PARTNZIt a ^III
BEING THE ONLY GENERAL. PARTNERS Or SAM PARTNLRS111P
-DA 11! AI' TICANI
DA11
h
- 9501CA119401101 VMP MOANneJ on Ilec drd 1'�nm 7194
IIICI�IIE fIl11M5 1011111511.1)51 L) Y
iTj L9 • i te Mc
A t)Nw o 01 r—id —t S".k ape tl —k
Master Plle
f l IE SU[3MISSION Q /a LOAN AI'f?LICA— CONT_/11NING rALSC Oli_
MISIlEI'RL=SCN-1 =CU INFORMATION IS A t= CULR/�L Cf11MC
Although loot) (rout( of netlli4le111, ntistopresenlaliun stay bo perpenaled in hinny
lurnts, some of the most conrrtrun examples are sltuwn below:
Submission of inaccutale Irtlorntalion, htcluding false Statements on loan
applications and falsification of docunrenls putporling to subst, iala aerlit,
ernployrnertl, deposit and asset ittluunation or personal inloillmdun including
identity, ownership /non - ownership Of teal properly, etc.
Futtiory of trtisteptesentaliutt of patlially or prodontinantly accurate infuntntion.
" htacculalo Iuisreinesenlatiuns of current occupancy ur it)lenl to maintain lequired
Occupancy as agreed in the security irlsl►uluelit.
" Failure to divulge all infonnalion required by 1110 applicalio11.
" I- ailurc to disclose any relevant or pettilrenl infounalion.
CONSEQUENCES OF LOAN 1'11AUU
"1110 consequences of residential luau (laud rue far renchinU ctnd expensive.
111101=0 M0111GAGE wauants the duality of our Ivan frtuduction to our investors.
Fraudulent loans may not be sold ill file seroudary market for home nollgages. II a loam is
discovered to be fraudulent alter its sale, 1111O1-ED MUI11GAGE could be obligated to
repurchase the 10011 110111 our investor. FraudulOnl luaus han11 our reputation and strain our
relaliunships with our investors and MollgaUO Insutanco Carriers.
IIle consequences to those who participate in luau fraud are even more severe.
Following is a list of a few of the repercussions lire( may ba experienced by a burrower it
there Is baud or misrepresentation found:
1. Accelernlion of debt as mandated ill the Security Insltumenl, Deed of (rust or
Mortgage. l ltis means the loan n1u sl be paid in lull, Immediately.
Z. Criminal prosecution which pray result in possible lines and Iruptisorrment.
3. Civil action by PROVED MOM I GAGE.
4. Civil action by outer parlles to the Llanseclion such as Seller or Real Estate
Agent /Dluker.
5. 1 enninalion of antpluyuteltl.
6. Fotleiluro of any professional license.
7. Adverse, long (rant effect on credit hislory.
As it federnlly Insuted Insllltrllon, Tiny lone Irnnsnellon that I— dorunlenlnllon 1111111 nppenrs "suspirlous" 111110 be.
raporled to the 1'.U.I. Tied Ilia U.S. Allomey Gertatnl's of Ill!
r'Sa 7341111/941
ALVAREZ AND ASSOCIATES, A GENERAL PARTNERSHIP
-L4 �i ,
MARISLLA LABASTJDA, GI ?N1�,RA1, PAII'1'N13R
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HAMA DATE
Ime Alvarez, General Partner
®
6etog rile only General Partners of sale( l'arCnerslllp
PHOVIDENI.SAVINGS HANK
1756 Central Avenue
liverside, CA 92506
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COMPLIANCE AGREEMENT PSB- 249 -A (11 /90)
CASE NUMBER
LOAN NUMBER
Master Pile
;ORROWER'S NAME(s)) 1lT VARI�'L ANi) nS�OCTII.T1'S, n GrNrRnL PAR'1'N_lR,SiiT�
PROPERTY ADDRESS I City. of San Bernardino
he undersigned borrower(s), In consideration of lender disbursing loan proceeds for the purchase or refinance of, or construction
of improvements on the aforementioned property, agree(s), if requested by the lender or someone acting on behalf of said lender, to
illy cooperate in adjusting for clerical errors, any and all loan closing documentation deemed necessary or desirable in the discre-
on of lender, to enable lender to sell, convey, seek guaranty or market said loan to any enlily, including but not limited to, an in-
vestor, Federal Nalional Moik rige Association (FNMA), Government National Mortgage Association (GNMA), Federal I loine Loan
turlgage Coiporalion (FI ILMC), Department of I lousing and Urban Development, Veterans Administration or any Municipal Bonding
,ulliorily.
—lie undersigned borrower(s) do hereby so agree and covenant as aloresaid In order to assure that the loan documentation executed
its date will conform and be acceptable in the market place in the instance of transfer, sale, or conveyance by lender of its Interest
in and to said loan documentation.
:URE PROVISION FOR ADJUSTABLE RATE MORTGAGES
Correction Procedures
The Note Holder and I agree Ihal servicing errors for the Note regarding interest tale and payment notices, interest rate adjustments
nd payment computations shall be corrected as follows: should a servicing error occur, the Note Holder shall provide ►ne with a
notice that corrects any such error, and I will begin to make monthly payments In accordance with the information contained In the
iolice beginning with the next monthly payment lhal is due. If the servicing error requires the correction of an interest rate adjust -
,ienl or payment compulalion, the Note (-(older shall adjust the outstanding principal balance of the Note to reflect the outstanding
'! Ilm principal balance had the servicing error not occurred by either increasing or decreasing the outstanding principal loam balance, as
C ppropriate. 1 hese correction procedures are intended to be the sole remedy for both the Note Bolder and me to correct the types of
ervicing errors described in this Paragraph.
)ATED effective this _J� day of J('_�l�l )1 ��� -r 19 1
' ALVAREZ AND ASSOCIATES, A GENERAL PARTNERSHIP)
ionnowuh f IO
Bon
MAO ULA LADAS IDA GENERAL PAR'T'NER( JA
BonnOWEn BOnnoWF
IIEING.TIIE ONLY E PARTNER-S OP_ SAID PAR'TNERSIIIP
Io1Any PUBLIC'S SIGNAT
r.inrnnv Pi im rr.'� iM- tgA-F (TYPED On PnINTE
My ommission Expires
L � 1-7- Zvvl 1
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ALVAREZ,
ENERAL PAR'T'NER
area below reserved for official Nolary Sea)
9�� /►11/11
Qar�TrlMr+n • 11b�AA
lNolar MI#r1A-- l�c�retla
t!m �axirdno 0oui1�
< lNly Gor►m epre. Apr 17,2001
I? it r AIVAR17 �I
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1,511 7000•A 131901
At ITGAGE INTEIIEST RMUEST toll TAXPAYEI1
1, OnTING FOi1M IDENTIFICATION NUMBL -11
Name ns shown on nccount III loin( necuunt, nlso Wvn lul", own(1r's nnnm)
ALVAREZ AND ASSOCIATES, A GENERAL PARTNLRS111T
Address
201 NORTH "r" STREET SUTTE 202
City, State and Zlp codo
is roan rnumber(s) Mere
i plicable) Master rile /City of San Bernardino
Taxpayer Identification Number
I" the Taxpayer Identification
u,.,ber In the appropriate box. For
v ' Imlivirlual taxpayers, this is the
nu I security number.
Social Security Nun1ibe►
E:rnployer 11 enlilica —tlii Number
NOTE.' The Internal Revenue Service
requires each payor to fumish a
Taxpayer Identification Number in
order to veri(y any deduction for
mortgage interest.
.j do not furnish your Taxpayer Identification Number to this institution, you are subject to e 560.00 penalty imposed
,e IRS.
icalion -- Under ilia penalties of perjury, I certify that ilia Information provided on this tuna Is true, correct, an
lete.
it lure:
V
W
Date:
• -ONLY ONE BORROWER MAY COMPLETE AND SIGN THE W9. *
4 Instructions:
r
1)1G form is used in reporting the mortgage interest to the IRS. Hie borrower must handwrite the
o, �I security number that is to be used for this purpose in the top box and sign and date the form.
EXHIBIT
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- - .-- .. I A "I It k-�Af' 1 i AL 1141.:. 909 1384 63(Jy
P. 02
CONSTRUCTION CAPITAL INC.
Residential - Con-mlei -cial • Industrial • Real Estate. Loan<,
March 19, 1999
TO WHOM IT MAY CONCERN:
I am Jerry Miller, formerly an Officer and Employee, for thirty -three years, of First
Federal Savings and loan Association of San Bernardino, (First Federal), which
is located in the City of San Bernardino. First Federal, while I was Officer and
Director, participated In the A.R.R. Affordable Housing Program by providing
Alvarez and Associates, (Alvarez), funding to acquire and rehab residential
properties that were in very poor condition.
First Federal, at that time, provided Alvarez with up to approximately $700,000 in
funding at any given lime.
At all times, we were informed that these homes were blighted, vacant and an
eyesore to the neighborhood. Alvarez was always straightforward and kept' us
informed. There were videotapes that we viewed and that explained the program
in detail. Also, there were inspections prior to acquisition, during rehab work, and
when the homes were completed. I personally toured many of the projects in
various stages and found Alvarez' s work to be of good quality.
it is my understanding that Alvarez is currently a customer of First Federal, now a
Division of "Jackson Federal Savings Bank", and also, Provident Savings Bank,
and that Alvarez continues to request acquisition and rehat) funding for this
housing program.
Please contact me if you have any questions.
JEM:bbs
Yours truly,
Jerry E Miller
Chief Lei iding Officer
(909) 8,) 4 -7??9 • (909) 984-6109 FAX
1p Request to Order Insurance
In -
0 Please deliver this fax to
In From the Desk of :
Escrow Info
ACQUISITION
Name of Insured : ALVAREZ AND ASSOCIATES, A GENERAL PARTNERSHIP
Address : 201 NORTH E STREET SUITE 202 SAN BERNARDINO, CA 92401
Property Address:
Property Info :
Lender:
Loan No.:
NOTES:
Bedroom(s): Bathroom(s): Sq. Ft. :
Year Bit.: Fireplace: Garage :
Pool: Other:
Loan Amount: $
It would be greatly appreciated if I could receive this evidence as soon as possible. Should you
have any questions please contact me at (909) 383 -2858.
Thank You.
EXHIBIT
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CISNUROS INSURANCE AGENCY
** *AUTO *** HOME * *'" License #0770463 * ** LIFT; * ** HEALTH * **
13215 Penn St. Suite PH -2 OFFICE: (562) 907 -3737
Whittler, CA 90602 FAX: (562) 907 -3739
March 18, 1999
® Alvarez and Associates
201 North E St.
San Bernardino, Ca 92401
Dear Elena:
To tine best of my knowledge during the period of time that my agency did business with your
company, you provided me with accurate and necessary information to procure insurance policies
Oil properties you had purchased. These policies were issued as vacant and their repairs would be
completed within the two months. Durbig that dune you conducted your business hi a profes.siotzil
ma►uier. Also, when required by the insurer you provided me with any additional information
and/or corrected any deficiencies that may have been necessary in order to maintain continuance
insurance.
In the futurc, we hope that we may be of service to you in providing you with any of your ottaer
insurance needs,
Sincerely,
Patricia Cisneros
Insurance .Agent
License # 0770463
EXHIBIT
Alvarez and dissociates
Inland Empire Acquisition- Rehab - Resale (A.R.R.) Affordable Homeownership Center
November 17, 1998
Mr. Philip Kassel
Attorney at Law
334 West Third Street
San Bernardino, CA 92401
Dear Philip,
Our family is requesting this of you as our attorney. Please arrange a meeting with the
D.A.'s office, the Police Department and the Fire Investigators, at our office in order to allow
us the opportunity to explain certain transactions that perhaps are being misunderstood.
It came to our attention this weekend that the Police Department and Fire Investigators
believe that we placed an FHA insured mortgage on a burned down property. This can easily
be explained because these buyers bought another property, utilizing the City's program. We
have a very reliable source that says this is what they are looking for.
We cannot emphasize how much our business has been damaged and we have had
many transactions declined because of this perception, of wrong doing. This is having an
extreme negative effect on our ability to stay in business.
Please organize this meeting as soon as possible, preferably this week.
Sincerely,
J ime Alvare Eunice. vZlez lena Lab s �a
1 arisela [rb s Ida ector a Victor abastida
Leticia Ea Hand
201 North F street, Suite 202 • San nernardino, CA 92401 • Phone (909) 393 -2959 • Fax (909) 393 -0057
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EXHIBIT
0
0
I'
•
i
•
•
•
ire guts building set to
be hub of artists' colony
By LYNN ANDERSON
San Bernardino County Sun
SAN BERNARDINO —
The Gaylord Apartments, an
abandoned building set to be
the centerpiece of a down-
town artists' colony, was con-
sumed by flames early Tues-
day, causing at least $75,000
in damage.
No injuries were reported.
Officials said no one was hurt
in file lire al 602 W. Sixth St.,
INSIDE:
• What will become of the
artists' colony plan?
A10
• More photos of Tues-
day's fire
A10
which was frequented by the
homeless.
'They were yelling into the
flames, 'Are you in therc7' " said
Mark Knytych, who lives with his
family in a house next door to the
old building.
"They got paranoid when we
asked Them if there was anyone in-
side."
Fire officials, who interviewed
Knytych, said all the utilities to the
building had been shut off by own-
er Richard Plastino, who nuns a
classic car parts business in San
Bernardino.
Plastino visited the scene with a
friend about 7:30 a.m. lie put the
damage at $75,000, the value of the
uninsured structure, he said.
"You can't get insurance of va-
cant buildings," Plastino said. `'file
premium is just too high."
Plastino, who had been working
with the city's Economic Develop-
ment Agency to develop the apart-
ments into studios for artists, said
lie building was boarded up tightly
to keep vagrants out.
"I checked it about twice a
week," Ile said.
Despite the destruction of the
apartment building, built in the
1940s, Plastino was optimistic.
"From scorched earth come
flowers," he said.
First Ward City Councilwoman
Esther Estrada saw the fire on tele-
vision and stopped by, since it is in
her ward.
"1 don't know what we'll do
(about the artists' colony)," she
said, watching as flames licked
slumping walls and twisted plumb-
ing. "All that will be Iefl is charred
land. But that could present us with
new opportunities."
The cause of file fire, ie-
ported at 3:38 a.m. Tuesday,
is under investigation, said
San Bernardino Battaliolt
Chief Tom Parlett.
The blaze may have been
started by a homeless person
who lit a warming fire in a
room along the east wing of
the second floor, he said.
A neighbor said he saw a
mail and a woman standing
outside the building shortly
before fire engines arrived.
See FIFIEWO
Fire officials knew the ntsw.,'
building was a fire hazard, said
Battalion Chief Brian Preciado, the
incident commander.
"it was an accident waiting to
happen," lie said.
Fire crews have answered emer-
gency calls at the building at least
seven times in the past several
years, Preciado said.
Transients started small warm
ing fires in some rooms and tore up
the interior, removing stairs and
floorboards aid making it unsafe
for firefighters to enter.
"We knew if there was a fire
here we'd have to be very careful,"
Preciado said. "We knew there
were potentials for problems. We
were reluctant to send in crews."
When firefighters arrived early
Tuesday, some went inside despite
San Bernardino County Sun
previous warnings about the haz-
ards. One firefighter fell through
the second floor to the first floor
but was unhurt, Preciado said.
"Once that happened, we pulled
everyone out," lie slid.
About 11:30 a.m., fire crews be-
gan using a hose ntoun(ed on lop of
I tall ladder to douse tie stubhorn
Haines. Later in the day, about 20
gallons of f6ain arrived and was
used to smother hot spots, which
could smolder for several days.
13y noon, most of file building's
walls had fallen of were curled
over, like melted wax. All that was
lell of the building was its front en-
trance, complete with elegant arch-
es and columns. Those, loo, even-
tually would fall.
7'wo bulldozers were sent in by
the city about 12:30 p.m. to break
down the columns and clear the
sidewalks of debris, including
smoking bushes and heavy rod iron
railings that had fallen front the
second floor.
Plastino will pay to clear the
properly, a city official said.
EXHIBIT
J
Ask
SE.UTION A CALL
FDID
36195
f RE INCIDENT REPORTING SYST.
INCIDENT
INCIDENT REPORT NUMBER
--
97- 003049 -000
_
San Bernardino City Fire Dept. MULTI - AGENCY
CORRECTIONS
INCIDENT
NO.
INCIDENT DISPATCH TIME'
DATE 10718797 0454.00
_
ARRIVAL TIME END TIM ADD'L r FIRST IN• OISI RIC
I 0459.00 088.00 DAYS DD COMPANY E221
SITUATIONISI XI $2 X3 N4
FOUND 11
AUTOMATIC OR METHOD TYPE AIR
MUTUAL AID �OF ALARM 7 -- WEATHER 1 TEMPERATURE
PROPERTY
060 MANAGEMENT 1
INCIDENT
ADDRESS /LOCATION 119 E 9T11 ST. _
CENSUS FIRE HAZARD
-
ROOM/ ZIP
APARTMENT CODE
92410 TRACT 0000.00 SEVERITY ZONE
- - - - --
TOTAL FIRE SERVICE NO. APPARATUS
0015 0000 Engine 002 Truck 01
Rescue O1
Mad. 00 Other
PERSONNEL RESPONDED Career
Vol. RESPONDED —
—
CODE
--
NAMeCtOr
_ - - - - --
TELEPHONE 760- 951-8053
PO
Labastida
_
-
- _ - _ _ -_—
STATE
ZIP 0392
ADDRESS /CITY
13190 Northstar St. Victorville
CA
913
CODE NAME
---- - -- - -- - --
TELEPHONE
909- 383 -2858
PO Ilector Labastida
-- _
— _---- - - - - -- —
STATE ZIP C011E401
ADDRESS /CITY
201 E- St. #202
CA
GENERAL SPECIFIC
PROPERTY USE 41 PROPERTY USE
BUILDING CODE STRUCTURE STRUCTURE
419 OCCUPANCY TYPE RS TYPE 1 STATUS
— � —_
1
IM
OCCUPIED AT TIME 2
6 OF INCIDENT
-
Vehicle
_- - - --
Stale Year Make
FOIL Type License No.
MOBILE -- '-
I.C.C. /D.O.T. Permit No.
PROPERTY Model
—
INVOLVED ------
- - - -•- - - - - -- --
Drivers
License No. State
Vehicle Identification No.
EIRES_
SECIIQN -B
TYPE OF X) N N3
�1
--- _ —_ -_ --
N4 FIRE Horizontal
JORGIN
-
FORM OF IGNITION 11
64 FACTOR
ACTIONISI TAKEN 12 82
Area 21 Level A01 Distance From
HEAT
SEX AGE SEX
AGE MATERIAL FIRST CONTRIBUTING X` N2 METHOD OF 6
61 17 FACTOR($( Z44 EXTINGUISHMENT
M 70
ESTIMATED
PROPERTY LOSS 40,000
IGNITED Type Form
ESTIMATED
CONTENTS LOSS 0 (MODEL
FUEL ACRES
BURNED
IF
EOUIPMENT Type
Model
Year
INVOLVED IN Make
Serial No.
IGNITION
STRUCTURE FIDES
CONSTRUCTION ROOF NUMBER OF EXTENT OF
TYPE 5 COVERING 2 STORIES 01 JDAMAGE
flame 6 Smoke 6
—
MATERIAL GENERATING
- - -I - --
AVENUE OF DETECTION
(SMOKE 5 8
Reason For
Perlonnance Failure
MOST SMOKE Type 86
Form 11 TRAVEL SYSTEM Type Power Supply
EXTINGUISHING
Reason for SPRINKLER
SYSTEM Type 98
Performance Fetlure HEADISI Type
Number Activated
CASUALTIES
CT
SEION .� - ---- ' - -
- -- - - - - -- - - - - - -- - - - — ' - - -- - - -- - - - - --
— _
FIRE SERVICE
000
NON -FIRE SERVICE
000 FIRE CASUALTY Injuries 000
Fatalities 000
CASUALTY Injuries
Fatalities
--- _- _�_- - _ - -_ -.— -
- -- E.M.S.
SECT10N_E
- - - - --
NUMBER OF LEVEL OF CARE CAPABLE HIGHEST LEVEL OF CARE
PATIENTS ]HIGHEST
OF BEING PROVIDED ON SCENE -- - -Fire - - Other (PROVIDED ON SCENE _ Fire Other
E.M.S. TYPE OF XI N2
N3 N4 PATIENTS Pvt�
SITUATIONS FOUND
IN0-0F
1RANSPORTED BY Dept. Amb,
-- —
Cor oner Other
--
- -Fire ---
I1AZ MAT
DES CTRL HAZ MAT Area Level RELEASE XI N2 93
NUMBER RELEASE
-- - FACTORS — --
�FA RIBUTING N/ X2
R($(
EST. NO. CHEMICALS
_ -_ -- --
TYPE OF EQUIPMENT f1AZ MAT N I X2 X3
IACTIONISI
N4 DISPOSITION
RELEASED
JINVOLVED IN RELEASE TAKEN
OF INCIDENT
HAZ MAT I.D. NI N2
Reference N1 N2 FIRE SERVICE HAZ biuries Fatalfhea NON
(MAT
-FIRE SERVICE HAZ Injuries Fatalities
SOURCES Personnel
Material CASUAL I MAT CASUALTY
CHEMICAL OR TRADE
NAME
IDOi- LD.
1CLASSAZARD—
�L
]CAS
���JJJJJJI - —
-NO - --
ENVIRONMENT AL
PliYSICAL
F
[RELEASED (MEASURE
CONTAMINA7 ON
STATE - Stored Released
(RELEASE
--
--
CONTAINER
-- - — _-
UNIT OF
Type
Description Use Feature Capacity
--- ---'-"---
MEASURE
--
--- --$lal9
SECTICINS _ —
TYPE OF ACTIONISI NI 92
_OINEFi_ SPECIAL.STU IES- Local _ 4a
N3 N4 I to b c d 2a b e d 3a b e d b
W1011 --
b e as b e d
e d 6a d
TAKEN --
- -- J -'- - -. _ --- -� - - -� -- - -�
— —�
MEMBER MAKING REPORT
HESS, DARRELL
REPRODUCED BY: SUNPRO (rte service so /rwera
DATE REVIEWED BY
Y
Aft
"GENERAL SECTION
INCIDENT DATE
ALARM TIME
DISPATCH TIME
ARRIVAL TIME
END TIME
RESPONSE (IN MIN)
FIRST IN COMPANY
DISTRICT
SITUATION(S) FOUND
MUTUAL AID
METHOD OF ALARM
WEATHER
. TEMPERATURE
PROPERTY MANAGEMENT
ADDRESS /LOCATION
ZIP CODE
• NUMBER OF PERSONNEL
CAREER
NUMBER OF APPARATUS
• ENGINE
TRUCK
OTHER
GENERAL PROPERTY USE
SPECIFIC PROPERTY USE
BUILDING CODE TYPE
STRUCTURE TYPE
STRUCTURE STATUS
OCCUPIED
ALARM TYPE
I v SHIFT
FIRE SECTION
ACTIONS) TAKEN
FIRE ORIGIN
AREA
LEVEL
FORM OF HEAT
IGNITION FACTOR
CONTRIBUTING PERSON(S)
SEX
AGE
MATERIAL FIRST IGNITED
TYPE OF MATERIAL
FORM OF MATERIAL
CONTRIBUTING FACTOR(S)
EXTINGUISHMENT METHOD
PROPERTY LOSS
PROPERTY VALUE
-an Bernardino City Fire Depu.
INCIDENT REPORT
97003049 -000
SATURDAY, OCTOBER 18, 1997
0454
0454
0459
0858
5
E221
1
STRUCTURE FIRE (11)
NO AUTOMATIC /MUTUAL AID (8)
TELEPHONE TIE -LINE TO FIRE
CLEAR ( 1)
60
PRIVATE TAX- PAYING PROPERTY
119 E 9TII ST.
92410
15
DEPARTMENT (7)
(1)
2
1
1
ONE AND TWO FAMILY RESIDENTIAL (41)
NOT CLASSIFIED (419)
DWELLING, LODGING HOUSE (R3)
BUILDING WITH ONE SPECIFIC PROPERTY USE (1)
ABANDONED, PROPERTY UNSECURED AND NOT MAINTAINED (6)
NO (2)
TELEPHONE ( 0 )
B
VENTILATION, EXTINGUISHMENT, SALVAGE, OVERHAUL (12)
INVESTIGATE (71)
SECURE PROPERTY (82)
SLEEPING ROOM FOR UNDER 5 PERSONS (21)
GRADE OR FIRST FLOOR (A01)
MATCH (64)
UNLAWFUL INCENDIARY (11)
MALE
70
WOOD RESIDUE (61)
STRUCTURAL MEMBER,
VANDALISM (244)
WATER FROM HYDRANT,
$40,000
$40,000
FRAMING (17)
DRAFT OR STANDPIPE (6)
Page
San Bernardino City Fire Dept.
INCIDENT REPORT
97003049 -000 -
lost in the fire is $40,000. This property is valued
at $40,000.
The structure where the fire occurred was of type V
(wood frame) construction. The type of exterior roof
covering on the structure involved was composition
shingles. There is one story above ground in this
building. The fire was confined to the structure of
origin. The smoke was confined to the structure of
origin. The composition, or substance, of the material
that produced the most smoke was classified as
"Asphalt treated material ". The use, or purpose, of
the material that produced the most smoke was
"Exterior roof covering, surface or finish ". The
principal path, or opening, that allowed smoke to
travel beyond the room or area of origin was the
opening in construction.
The building had no detection devices installed for
early fire /smoke warning.
Alarm number 97003049 has been assigned to this
incident.
Page
•
•
•
SELEMAN, JEFFREY J.
SUMMARY
San Bernardino City Fire Dept.
INCIDENT REPORT
97003049 -000
S.B. units sent to a structure in an abandoned single
family home.
REPORTED BY }HESS, DARRELL
INCIDENT NARRATIVE At 0454 hours on Saturday, October 18, 1997 (B- Shift),
we were dispatched to a structure fire. E221 was the
first fire unit to arrive on scene. Four units were
assigned to this incident. Fifteen personnel
responded. We arrived on scene at 0459 hours and
cleared at 0858 hours. The incident was reported to
the fire department by a telephone tie -line. No
automatic or mutual aid was provided or received.
Telephone. The weather was clear. The temperature was
60 degrees.
The incident occurred at 119 E 9T11 ST. in district 1.
This location is a private tax - paying property. The
local station is 1.
The building was abandoned. The property was unsecurec
and not maintained. The structure was not occupied at
the time of the incident. The UBC occupancy
classification of the building is R -3. The involved
structure is described as a building with one specific
property use. The general description of this property
is one and two family residential (one and two family
dwelling).
The primary task(s) performed by responding personnel
were ventilation, extinguishment, salvage, and
overhaul. "Sleeping room for under 5 persons" best
describes the primary use of the room or space where
the fire originated. The fire occurred on the first
floor or at grade level. "Match" best describes the
form of heat energy that caused the ignition. The act
condition or situation that allowed the heat source t(
combine with the material first ignited to start the
fire was incendiary, arson, or a criminal act.
Contributing to the ignition of the fire was a male
age 70 described as the last " regular occupant ".
POP'S is described as a black male, slight build with
severe bow -legs and gray beard and hair. The material
first ignited was "Wood residue ". The use, or purpose
of the material that was first ignited was "Structura
member or framing ". Additional factor(s) that had an
influence on the cause or outcome of the incident are
classified as "Vandalism ". The fire was extinguished
with water from a hydrant, draft or standpipe.
The dollar estimate of the current value of property
Page
fit
San Bernardino City Fire Dept.
4
INCIDENT REPORT
97003049 -000 , `
O
STRUCTURE FIRE SECTION
°
CONSTRUCTION TYPE
TYPE V (WOOD FRAME) (5)
ROOF COVERING
COMPOSITION SHINGLES (2)
NUMBER OF STORIES
1
EXTENT OF DAMAGE
FLAME
CONFINED TO STRUCTURE OF ORIGIN
(6)
SMOKE
CONFINED TO STRUCTURE OF ORIGIN
(6)
GENERATING MOST SMOKE
TYPE OF MATERIAL
ASPHALT TREATED MATERIAL (86)
FORM OF MATERIAL
EXTERIOR ROOF COVERING, SURFACE,
FINISH (11)
AVENUE OF SMOKE TRAVEL
OPENING IN CONSTRUCTION (5)
DETECTION SYSTEM
TYPE
NO DETECTOR PRESENT (8)
I*w
EXTINGUISHING SYSTEM
TYPE
NONE (98)
w
PEOPLE INVOLVED SECTION
PROPERTY OWNER
RECTOR LABASTIDA
w
ADDRESS
13190 NORTHSTAR ST. VICTORVILLE
CA 92392
»,
PHONE /DOB
760- 951 -8053
PROPERTY OWNER
HECTOR LABASTIDA
>"„
ADDRESS
201 E ST. #202 CA 92401
PHONE /DOB
909- 383 -2858
REPORTING PARTY
MITCHELL MARTINEZ
.
ADDRESS
DOB 1 -12 -77 CA
PHONE /DOB
909- 886 -2921
REPORTING PARTY
FRANK ARMENDARER
ADDRESS
DOB 9 -23 -76 CA
"
PHONE /DOB
909 - 884 -3442
OTHER
POP'S, LAST KNOWN OCCUPANT.
ADDRESS
ADDRESS UNKNOWN, NO PHONE CA
APPARATUS RESPONDING
CODE MILES HOURS DISP ROLL ARRIV LEFT FACIL BACK END
E -221
0454 0459
0858 0858
ME -222
0454 0500
0616 0616
T -221
0454 0500
0748 0748
BC -603
0454 0459
0542 0542
r.
III
PERSONNEL RESPONDING
CODE AMOUNT1 AMOUNT2
HESS, DARRELL
CLARK, MICHAEL J.
WALTERS, NORMAN E.
WALTON, BENNIE L.
RUSTED, LARRY L.
LOPEZ, STEPHEN J.
CORNELL, DARREL
LINDBLOM, ROLF
PAGE, TONY G.
POMPA, LESLIE D.
�ftw
ALLEN, DAVID G.
PRECIADO, BRIAN J.
ROBERG, JOHN
14.00
HALE, JOHN L.
Page
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3
4
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fiEC11L2N A
CALIFORNI. AE INCIDENT REPORTING SYSTEM
T
INCIDENT REPORT
FOID
36195
NUMBER 98- 001785 -000
San Bernardino City Fire Dept. MULTI - AGENCY
CORRECTIONS
INCIDENT NO. - -
INCIDENT
DISPATCH TIME
ARRIVAL TIME
END TIME
ADWL
FIRST IN
DISTRICT
DATE 07/23/98
0543.00
1 0548
1 0758.00
DAYS 00
COMPANY BC -603
1
SITUATIONISI 91 02 J3 #4
AUTOMATIC OR METHOD
TYPE
AIR
PROPERTY
FOUND 11
MUTUAL AID $ OF ALARM
7
WEATHER 1
ITEMPERATURE 072
MANAGEMENT 1
INCIDENT
ADDRESS/LOCATION ONE EAST OF 103 E. 9TH STREET _
ROOM/ ZIP
CENSUS
FIRE HAZARD
APARTMENT CODE
92410 TRACT
0000,00
SEVERITY ZONE
TOTAL FIRE SERVICE NO.
APPARATUS Rescue
PERSONNEL RESPONDED Career 0020 Vol. 0000 RESPONDED
Engine 004 Truck 01 Med. 00 Other 01
CODE
NAME TELEPHONE
ADDRESS /CITY STATE
ZIP CODE
CODE
NAME TELEPHONE
ADDRESS /CITY STATE
ZIP CODE
GENERAL
SPECIFIC
BUILDING CODE
STRUCTURE STRUCTURE OCCUPIED AT TIME
PROPERTY USE 41
PROPERTY USE 411
OCCUPANCY TYPE R3
TYPE 1 STATUS 6 OF INCIDENT 2
Vehicle Slsle Year Make
Ton Type
Llcenee No.
MOBILE—
--- -- - - - - -- ------ -'---- --- - -- ------ -------
PROPERTY
I.C.C. /D.O.T. Permit No.
INVOLVED
Model
Vehicle
Identification No. Drivers License No. Stale
5ECTIbN 9 PIRF
TYPE OF /1 02 #3 X4
FIRE Horizontal
FORM OF
IGNITION
ACTIONIS) TAKEN 15 71
ORGIN Area 98 Level /101 Distance From
HEAT 64_
FACTOR 14
SEX AGE
SEX
AGE MATERIAL
FIRST
CONTRIBUTING I1 N2
METHOD OF
IGNITED
Type 23 Form 65
FACTOR(S)
1EXTINGUISHMENT 6
ESTIMATED ESTIMATED
FUEL
ACRES
PROPERTY LOSS 50,000 CONTENTS
LOSS 0
MODEL
BURNED
IF
EQUIPMENT
Type Model Year
INVOLVED IN
Make
IGNITION
Serial No.
SEno, :: = 5TRUCjURE >FIRE$.
CONSTRUCTION ROOF
NUMBER OF
(EXTENT OF
TYPE 5 COVERING
2
STORIES 01
DAMAGE Flame 6 Smoke 6
MATERIAL GENERATING
AVENUE OF
DETECTION Reason For
MOST SMOKE Type 63 Form 17
SMOKE TRAVEL
5 SYSTEM Type 8 Power Supply Performance Failure
EXTINGUISHING Reason for
SPRINKLER
SYSTEM Type 98 Perlormence Failure
HEADIS) Type Number Activated
CASUALTIES'
FIRE SERVICE
NON-FIRE SERVICE
CASUALTY Injuries 000 Fatalities 000
FIRE CASUALTY Injuries 000 Fatalities 000
?E�2LtlN E� EiM:S
NUMBER OF
IIIGHEST LEVEL OF CARE CAPABLE
HIGIIEST LEVEL OF CARE
PATIENTS
OF BEING PROVIDED ON SCENE Fite Other
PROVIDED ON SCENE Fire Other
E.M.S. TYPE OF •1 02 #3 N4 NO. OF PATIENTS
Fire Pvt.
SITUATIONS FOUND TRANSPORTED
BY Dept. Amb. Coroner Other
S1 CSLQN'E HAZ MAT
OES CTRL
HAZ MAT Area Level
RELEASE /1 #2 /3 94
CONTRIBUTING /1 #2
NUMBER
RELEASE
FACTORS
FACTORISI
EST. NO. CHEMICALS
TYPE OF EQUIPMENT
IIAZ MAT MI X2 N3 X4
DISf'bSIT10N
RELEASED
INVOLVED IN RELEASE
ACTIONISI TAKEN
OF INCIDENT
HAZ MAT I.D. #1 /2 Reference II #2
FIRE SERVICE HAZ Injuries Fatalities NON
-FIRE SERVICE HAZ Injuries Fatalities
SOURCES Personnel Material
MAT CASUALTY MAT
CASUALTY
CHEMICAL OR TRADE
DOT I.D. NO.
DOT HAZARD
CAS
NAME
CLASS
NO.
PHYSICAL
QUANTITY
UNIT OF EXTENT
OF
SUSPECTED ENVIRONMENTAL
STATE ' Stored Released
RELEASED
MEASURE RELEASE
CONTAMINATION
CONTAINER UNIT
OF
Type Description Use Feature Capacity MEASURE
MTa
$ECT_Il2N G QIFJEfl
5eECIAL SLTES-L1acaL--
la b e
S. tetewide.- _ :._ -.TYPE
d 2• b e d 3• b c d 4■ b e d 6• b e B• b e d
__ - -�-
OF ACTIONISI N1 #2 I3 A'4
TAKEN
�—
MEMBER MAKING REPORT DATE
SMITH, MICHAEL -
REPRODUCED BY: SUNPAO fire service software
REVIEWED BY
Aw
t.,ENERAL SECTION
INCIDENT DATE
DISPATCH TIME
ARRIVAL TIME
END TIME
RESPONSE (IN MIN)
FIRST IN COMPANY
DISTRICT
SITUATION(S) FOUND
MUTUAL AID
METHOD OF ALARM
WEATHER
TEMPERATURE
PROPERTY MANAGEMENT
ADDRESS /LOCATION
ZIP CODE
NUMBER OF PERSONNEL
CAREER
�mw NUMBER OF APPARATUS
ENGINE
TRUCK
OTHER
GENERAL PROPERTY USE
SPECIFIC PROPERTY USE
%w BUILDING CODE TYPE
*w STRUCTURE TYPE
STRUCTURE STATUS
"" OCCUPIED
ALARM TYPE
SHIFT
FIRE SECTION
ACTIONS) TAKEN
FIRE ORIGIN
AREA
LEVEL
FORM OF HEAT
IGNITION FACTOR
MATERIAL FIRST IGNI'T'ED
TYPE OF MATERIAL
FORM OF MATERIAL
EXTINGUISHMENT METHOD
PROPERTY LOSS
PROPERTY VALUE
TRUCTURE FIRE SECTION
CONSTRUCTION TYPE
ROOF COVERING
NUMBER OF STORIES
EXTENT OF DAMAGE
FLAME
SMOKE
-an Bernardino City Fire Deb.-.
INCIDENT REPORT
98001785 -000
THURSDAY, JULY 23, 1998
0543
0548
0758
5
BC -603
1
STRUCTURE FIRE (11)
NO AUTOMATIC /MUTUAL AID (8)
TELEPHONE TIE -LINE TO FIRE
CLEAR (1)
72
DEPARTMENT (7)
PRIVATE TAX - PAYING PROPERTY (1)
ONE EAST OF 103 E. 9TH STREET
92410
20
4
1
1
ONE AND TWO FAMILY RESIDENTIAL (41)
ONE FAMILY DWELLING, YEAR ROUND USE (411)
DWELLING, LODGING HOUSE (R3)
BUILDING WITH ONE SPECIFIC PROPERTY USE (1)
ABANDONED, PROPERTY UNSECURED AND NOT MAINTAINED
NO (2)
OTHER (4)
A
EXTINGUISHMENT (15)
INVESTIGATE (71)
VACANT STRUCTURAL AREA WITH NO CURRENT USE (98)
GRADE OR FIRST FLOOR (A01)
MATCH ( 64 )
SUSPICIOUS (14)
GASOLINE (23)
FUEL (65)
WATER FROM HYDRANT, DRAFT OR STANDPIPE (6)
$50,000
$50,000
TYPE V (WOOD FRAME) (5)
COMPOSITION SHINGLES (2)
1
CONFINED TO STRUCTURE OF ORIGIN (6)
CONFINED TO STRUCTURE OF ORIGIN (6)
(6)
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San Bernardino City Fire Dept.
.
INCIDENT REPORT
98001785 -000
GENERATING MOST SMOKE
TYPE OF MATERIAL
SAWN WOOD (63)
FORM OF MATERIAL
STRUCTURAL MEMBER, FRAMING (17)
AVENUE OF SMOKE TRAVEL
OPENING IN CONSTRUCTION (5)
DETECTION SYSTEM
TYPE
NO DETECTOR PRESENT (8)
EXTINGUISHING SYSTEM
TYPE
NONE (98)
APPARATUS RESPONDING
CODE MILES HOURS DISP ROLL ARRIV LEFT FACIL BACK END
E -221
0543 0548 0758 0758
ME -222
0544 0549 0718 0718
*
ME -226
0543 0551 0606 0606
ME -230
0558 0609 0656 0656
T -221
0543 0549 0758 0758
.;
BC -603
0543 0548 0653 0653
PERSONNEL RESPONDING
CODE AMOUNTI AMOUNT2
SMITH, MICHAEL
®
DEMULLING, BRIAN R.
RAMIREZ, DWIGHT
ROSE, DAVID A.
ESQUIVEL, ERIC
GAULEY, SCOTT
JIMERSON, MARDELL B.
BENNETT, HOWARD D.
BOYCE, WILLIAM S.
HORN, ISAAC J.
ALEXANDER, BENJAMIN S.
BATHGATE, KEVEN CHRIST
ROBERG, JOHN
AVILA, STEVEN D.
CUELLAR, ROBERT J.
KARAS, JAMES PHILIP
COBB, STEVEN Z.
BEVERLIN, TERRY L.
BROWN, STEVE
DEGNER, DARRELL
REPORTED BY
SMITH, MICHAEL
INCIDENT NARRATIVE
E -221 RESPONDED TO A STRUC'T'URE FIRE AT A VACANT SINGLE
STORY SINGLE FAMILY DWELLING. UPON OUR ARRIVAL WE
FOUND THE STRUCTURE COMPLETELY INVOLVED IN FIRE WHICH
MADE IT AN EXTERIOR ATTACK ONLY. WE USED HYDRANT
PRESSURE FOR WATER SUPPLY AND PRECONNECT LINES FOR
EXTINGUISHMENT. NO EXPOSURES WERE THREATENED, EDISON
WAS CALLED DUE TO POWER LINES DOWN ACROSS A CHAIN LINE
FENCE THAT WERE STILL CHARGED. NO ADDRESS WAS FOUND OT
THE STRUCTURE OR AT CURBSIDE. DURING "MOP UP" WE
FOUND THE GAS METER WHICH WAS LEAKING NATURAL GAS AT
THE SHUT OFF VALVE, SO A REPRESENTATIVE WAS CALLED.
WHEN THE GAS REPRESENTATIVE SHOWED UP HE STATED THEY
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San Bernardino City Fire Dept.
INCIDENT REPORT
98001785 -000
WILL SHUT OFF THE SUPPLY IN THE STREET.
THIS WAS THE 3RD FIRE AT THIS STRUCTURE WITHIN A YEAR.
CAPTAIN ROBERG, 682, WAS THE INVESTIGATOR ON SCENE
WITH HELP OF FIREFIGHTER CUELLAR. THEY WERE TOLD THAT
TWO PEOPLE WERE SEEN GOING INTO THE STRUCTURE PRIOR TO
US BEING CALLED, BUT NO OTHER DESCRIPTIONS WERE GIVEN.
THE USE OF FLAMMABLE LIQUIDS IS LIKELY DUE TO THE
TOTAL INVOLVEMENT OF THE STRUCTURE IN SHORT PERIOD OF
TIME. WE LEFT THE SCENE WITH THE GAS COMPANY TAKING
CARE OF THE GAS LEAK.
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