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HomeMy WebLinkAboutA9020 - VISTA SUNRISE IICommonweaftif r� LAND TITLE COMPANY Date: February 14, 2022 City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Attn: Office of the City Clerk Customer Ref. Number: Vacant Land, Palms Springs, CA Our File No: 09196612-09 601 S. Figueroa St. Suite 4000 Los Angeles, CA. 90017 Telephone: 213-330-3100 Telecopier: 213-330-3104 4100 Newport Place Drive, Ste.120 Newport Beach, CA 92660 Telephone: (949) 724-3140 Telecopier: (949) 258-5740 Please find enclosed the following items as they relate to the above title order: ® Original Recorded document(s) returned to us by the County Recorder. ❑ Policy (ies) ❑ Other If there is anything that you should require, in addition to the items enclosed, please contact the undersigned immediately. Sincerely, Kathy Religioso TeamReligioso@cltic.com UUU ;F zuzz-uubyuuz 03/2022 04:32 PM Fees: $0.00 uge1of16 Recorded in Official Records County of Riverside Peter Aldana Assessor -County Clerk -Recorder Recording Requested By: **This document was electronically submitted Commonwealth Land Title Comoan to the County of Riverside for recording" When recorded mail to: Receipted by: KIYOMI #289 City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 DEED OF TRUST WITH ASSIGNMENT OF RENTS Recording Requested By: Commonwealth Land Title Company When recorded mail to: City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 DEED OF TRUST WITH ASSIGNMENT OF RENTS DEED OF TRUST WITH ASSIGNMENT OF RENTS (This Deed of Trust Contains an Acceleration Clause) THIS DEED OF TRUST is made this 13 day of s�g.,,x- , 201Z, between Vista Sunrise Il, L.P., a California limited partnership ("Trustor"), whose address is 45-701 Monroe Street, Suite G, Indio, CA 92201, Commonwealth Land Title Insurance Company ("Trustee"), and the CITY OF PALM SPRINGS, a California charter city and municipal corporation ("Beneficiary"). 1. Grant In Trust. For the purposes and upon the terms and conditions in this Deed of Trust, Trustor grants, transfers, and assigns to Trustee, in trust, with power of sale and right of entry and possession, the following property and any interest therein (collectively, the "Trust Estate"): (i) Trustor's leasehold interest in the real property located in the City of Palm Springs, County of Riverside, State of California described in Exhibit "A" attached hereto and incorporated herein by this reference ("Real Property"); (ii) all buildings and other improvements and structures now or hereafter located on the Real Property (collectively, the "Improvements" and together with the Real Property shall sometimes be referred to as the "Property"); (iii) all existing and future leases, subleases, subtenancies, licenses, agreements and incentives relating to the use, occupancy or enjoyment of all or any part of the Property, together with any and all guaranties and other agreements relating to or made in connection with any of the foregoing (individually, a "Lease," and collectively, the "Leases"); and (iv) all rents, issues, income, revenues, royalties, profits, proceeds and earnings now or hereafter payable with respect to or otherwise derived from the ownership, use, management, operation, leasing or occupancy of the Property, including, without limitation, cash or security deposited under any of the Leases to secure the performance by the lessees of their obligations thereunder (collectively, the "Rents"). 2. Obligations Secured. Trustor makes this grant and assignment for the purpose of securing the following: (i) payment of the sum of Three Million Six Hundred Thousand Dollars ($3,600,000.00), with interest thereon according to the terms of a Promissory Note secured by Deed of Trust of even date herewith made to Trustor, payable to the order of Beneficiary, and any extensions or renewals thereof (the "Note"), and all other amounts due under the Note; (ii) and payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or its successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. 3. Right of Acceleration upon Sale/Encumbrance, Default. In the event Trustor shall: (i) directly or indirectly, voluntarily or involuntarily, sell, assign, transfer, dispose of, alienate, encumber, lease, or agree to sell, assign, transfer, dispose of, alienate, encumber, or lease all or any portion of any interest in the Property (excluding the lease of the units on the Property in accordance with that certain Regulatory Agreement and Declaration of Covenants and Restrictions between Trustor and Beneficiary dated on or about the date hereof and recorded against the Real Property ("Regulatory Agreement"), any transfer permitted by the terms of the Affordable Housing and Loan Agreement between Trustor and Beneficiary, Palm Springs, dated -* , 20 Lz , the lien of the Permitted Encumbrances, and any other assignment, transfer, or encumbrance approved in writing by Beneficiary; or (ii) refinance any lien or encumbrance which has priority over this Deed of Trust for a loan amount in excess of the then outstanding sum secured * �ac�-, 13120ZL -1- 55575.18175\34589761.5 by such lien or encumbrance or further encumber the Property except as permitted in the Affordable Housing and Loan Agreement; or (iii) default on any of its obligations set forth in the Loan Documents or on any obligations under any documents relating to any other financing that is secured by the Property and fail to cure the default within any applicable cure period (or such longer period as reasonably necessary up to 90 days if the default is not capable of being cured within the applicable cure period) or within thirty (30) days of receipt of notice from Beneficiary if there is no cure period (or such longer period as reasonably necessary up to 90 days if the default is not capable of being cured within thirty (30) days), then, or at any time thereafter, Beneficiary, at its option, may declare the entire indebtedness evidenced by the Note secured by this Deed of Trust immediately due and payable. This term "Loan Documents" shall mean this Deed of Trust, the Note, the Affordable Housing and Loan Agreement between Trustor and Beneficiary dated Jah 13 "Loan Agreement"), and the Regulatory Agreement, as such agreements may be amended from time to time. Any capitalized terms contained in this Deed of Trust which are not defined herein shall have the meaning given in the Loan Agreement, unless expressly provided to the contrary. 4. Assignment of Rents and Performance of Leases. 4.1 Assignment of Rents and Leases. Trustor hereby irrevocably absolutely and unconditionally assigns and transfers to Beneficiary all of Trustor's right, title and interest in and to the Leases and the Rents; provided, however, that so long as no Event of Default (as defined in Section 5.1 below) has occurred and is continuing, Trustor shall have the right under a license granted hereby to collect and receive all Rents as trustee for the benefit of Beneficiary and to apply the amounts so collected first to the payment of costs and expenses associated with the ownership, maintenance, operation and leasing of the Property, including, principal, interest and all other amounts required to be paid under the Loan Documents, before using or applying such Rents for any other purpose. No Rents or such other income shall be distributed or paid to Trustor, unless such costs and expenses which are then due have been paid in full. Thereafter, so long as no Event of Default has occurred and is continuing, the balance may be distributed to Trustor. If an Event of Default has occurred and is continuing, Trustor's right to collect and receive the Rents under the license granted hereby shall cease and the license shall be revoked automatically and, pursuant to Section 5.2.1 hereof, Beneficiary shall have the right, with or without taking possession of the Property, to collect all Rents; provided, however, if such Event of Default is cured, then such license shall be automatically reinstated. This is an absolute assignment and not an assignment for security only. 4.2 Covenants Regarding Leases. Trustor shall not, without the prior written consent of Beneficiary, (i) collect any rent from any lessee for a period of more than one (1) month in advance, or (ii) execute any further assignment of any of its right, title and interest in the Leases and the Rents, except in connection with financing otherwise approved by the Beneficiary. Trustor shall (i) observe, perform and discharge each and every obligation, term, covenant, condition and agreement of Trustor under the Leases in all material respects, (ii) enforce the performance of each and every obligation, term, covenant, condition and agreement in the Leases to be performed by any lessee or guarantor thereof in all material respects, (iii) use good faith commercially reasonable efforts to keep the Property leased at a good and sufficient rental (but at affordable rents in accordance with the Regulatory Agreement) and on such other terms and conditions as are reasonably acceptable to Beneficiary, and (iv) execute and deliver to Beneficiary upon demand, at -2- 55575.18175\34589761.5 any time and from time to time, any and all assignments and other instruments which Beneficiary may deem reasonably advisable to carry out the true purposes and intent of the assignment set forth in Section 4.1 above. 5. Events of Default and Remedies. 5.1 Events of Default. Any of the following events shall, at Beneficiary's option, constitute an event of default (an "Event of Default") hereunder: 5.1.1 Failure to Pay. The failure of Trustor to pay (i) within ten (10) days of its due date, any installment of principal or interest under the Note (except at maturity, by acceleration or as part of a prepayment hereunder); (ii) all outstanding principal and accrued interest under the Note at maturity, by acceleration or as part of a prepayment thereunder; or (ii) within ten (10) days after written notice that same is due, any sum as provided in this Deed of Trust or any other Loan Document or any other instrument or agreement secured hereby (other than as described in the foregoing (i) and (ii)). 5.1.2 Failure to Perform. The failure of Trustor to promptly and completely observe or perform any term, condition, covenant, agreement or obligation contained in this Deed of Trust, any other Loan Document or any other instrument or agreement secured hereby, and the continuation of such failure following the expiration of any applicable notice, cure or grace period, if any, provided for therein or herein; provided, however, that in the event no cure or grace period is otherwise provided for herein or therein, such failure shall not be an Event of Default hereunder if Trustor observes or performs such term, condition, covenant, agreement or obligation within thirty (30) days of receipt of written notice from Beneficiary of Trustor's failure to observe or perform any such term, condition, covenant, agreement or obligation (or if not reasonably susceptible of cure within thirty (30) days, then for a reasonable time thereafter provided the cure is commenced in thirty (30) days and diligently and continuously prosecuted to a cure within sixty (60) additional days thereafter). 5.1.3 Other Defaults. The occurrence of any "default" or "Event of Default" under any of the other Loan Documents (as defined therein) or any other instrument or agreement secured hereby and the continuation of such "default" or "Event of Default" following the expiration of any applicable notice, cure or grace period, if any, provided for in such other Loan Document or such other instrument or agreement secured hereby. 5.2 Remedies. During the existence of any Event of Default which continues beyond expiration of applicable notice and cure periods, and subject to the rights of senior lenders and the notice and cure rights of Trustor's limited partner pursuant to the Affordable Housing and Loan Agreement, Beneficiary may, at its option, declare all indebtedness secured hereby, and the same shall thereupon become, immediately due and payable without any presentment, demand, protest or notice of any kind. Thereafter, Beneficiary may, at its option: 5.2.1 Termination of License. Subject to the provisions of Section 5.1 hereof, terminate Trustor's right and license to collect the Rents, and either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court and without regard to the adequacy of its security, enter upon and take possession of the Trust Estate or any part -3- 55575.18175\34589761.5 thereof, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value, marketability or rentability of the Trust Estate, or any part thereof or interest therein, make, modify, enforce, cancel or accept the surrender of any Lease, increase the income therefrom or protect the security hereof and, with or without taking possession of the Trust Estate, sue for or otherwise collect the Rents, including those past due and unpaid, and apply the same, less reasonable, actual, out-of-pocket costs and expenses of operation and collection, including, without limitation, reasonable, actual, out-of-pocket attorneys' fees, upon any indebtedness secured hereby, all in such order as Beneficiary may determine. The entering upon and taking possession of all or any portion of the Trust Estate, the collection of such Rents and the application thereof as aforesaid, or any of such acts, shall not cure or waive any Event of Default or recorded notice of default hereunder or invalidate any notice or act done in response to such Event of Default or pursuant to such notice of default and, notwithstanding the continuance in possession of all or any portion of the Trust Estate or the collection, receipt and application of Rents, Trustee or Beneficiary shall be entitled to exercise every right provided for in any of the Loan Documents or by law during the existence of any Event of Default, including the right to exercise the power of sale. Failure of Beneficiary at any time, or from time to time, to collect the Rents shall not in any manner affect the subsequent enforcement of Beneficiary of the right to collect the same. 5.2.2 Appointment of Receiver. As a matter of right and without notice to Trustor or anyone claiming under Trustor, and without regard to the then value of the Trust Estate or the interest of Trustor therein, to apply to any court having jurisdiction to appoint a receiver or receivers of the Trust Estate, and Trustor hereby irrevocably consents to such appointment and waives notice of any application therefor. Any such receiver or receivers shall have all the usual powers and duties of receivers in like or similar cases and all the powers and duties of Beneficiary in case of entry as provided in this Deed of Trust and shall continue as such and exercise all such powers until the later of (i) the date of confirmation of sale of the Trust Estate, (ii) the disbursement of all proceeds of the Trust Estate collected by such receiver and the payment of all expenses incurred in connection therewith, and (iii) the termination of such receivership with the consent of Beneficiary or pursuant to an order by a court of competent jurisdiction. 5.2.3 Judicial Foreclosure of Deed of Trust. Commence an action to foreclose this Deed of Trust as a mortgage, or specifically enforce any of the covenants hereof. 5.2.4 Power of Sale. Deliver to Trustee a written declaration of default and demand for sale, and a written notice of default and election to cause Trustor's interest in the Trust Estate or any portion thereof to be sold, which notice Trustee or Beneficiary shall cause to be transmitted and recorded, if applicable, in accordance with governing law. Upon receipt of such notice from Beneficiary, Trustee shall cause to be recorded, published and delivered to Trustor such Notice of Default and Election to Sell as then required by law and by this Deed of Trust. Trustee shall, without demand on Trustor, after lapse of such time as may then be required by law and after recordation of such Notice of Default and after Notice of Sale having been given as required by law, sell the Trust Estate at the time and place of sale fixed by it in said Notice of Sale, either as a whole, or in separate lots or parcels or items as Beneficiary shall deem expedient, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States payable at the time of sale. Trustor hereby expressly waives any right which it may have to direct the order in which any of the Trust Estate may be sold when it consists of -4- 55575.18175\34589761.5 more than one lot or parcel, and such order of sale, whether in a single sale or in multiple sales held on different days or at different times, shall be at the sole discretion of Beneficiary. Trustee shall deliver to such purchaser or purchasers thereof its good and sufficient deed or deeds conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including, without limitation, Trustor, Trustee or Beneficiary, may purchase at such sale to the extent permitted by law. After deducting all costs, fees and expenses of Trustee and of this Deed of Trust and all reasonable, actual out-of-pocket costs, fees and expenses of Beneficiary, including reasonable, actual, out-of-pocket costs of evidence of title, and attorneys' fees of Trustee and Beneficiary, in connection with such sale, and subject to applicable law, Trustee shall apply, in the following priority, the proceeds of sale to payment of: (i) first, all sums expended under the terms hereof, not then repaid, with interest thereon according to the terms of the Debt Instrument, (ii) second, all other sums then secured hereby, in such order of priority and in such proportion as Beneficiary in its sole discretion may elect, and (iii) the remainder, if any, to the person or persons legally entitled thereto. Subject to applicable law, Trustee may postpone the sale of all or any portion of the Trust Estate by public announcement at the time and place of such sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement or subsequently noticed sale, and without further notice make such sale at the time fixed by the last postponement, or may, in its discretion, give a new notice of sale. 5.2.5 Other Remedies. Exercise all other rights and remedies provided herein, in any Loan Document or other document or agreement now or hereafter securing all or any portion of the obligations secured hereby, or provided by law. During the existence of an Event of Default hereunder, Beneficiary may proceed in any sequence to exercise its rights hereunder with respect to all or any portion of the Trust Estate. 5.2.6 Non -Recourse. The obligations of Trustor under the Note and this Deed of Trust are non -recourse to the extent provided in paragraph 12 of the Note. 5.3 Remedies Not Exclusive; Waiver. No remedy herein conferred upon or reserved to Trustee or Beneficiary is intended to be exclusive of any other remedy herein or by law provided or permitted, but each shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. Every power or remedy given by any of the Loan Documents to Trustee or Beneficiary, or to which either of them may be otherwise entitled, may be exercised concurrently or independently, from time to time and as often as may be deemed expedient by Trustee or Beneficiary. If there exists additional security for the obligations secured hereby, Beneficiary, at its sole option, and without limiting or affecting any of the rights or remedies hereunder, may exercise any of the rights or remedies to which it may be entitled hereunder either concurrently with whatever rights it may have in connection with such other security or in such order and in such manner as Beneficiary may deem fit without waiving any rights with respect to such other security. 6. Incorporation of Fictitious Deed of Trust. To protect the security of this Deed of Trust, and with respect to the Property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in the book and at the -5- 55575.18175\34589761.5 page of Official Records in the office of the county recorder of the county where said property is located, noted below opposite the name of such county, namely: -6- 55575.18175\34589761.5 COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BOOK PAGE COUNTY BO PAGE OK Alameda 1288 556 Kings 858 713 Placer 1028 379 Siena 38 187 Alpine 3 130-31 Lake 437 110 Plumas 166 1307 Siskiyou 506 762 Amador 133 438 Lassen 192 367 Riverside 3778 347 Solano 128 621 7 Butte 1330 513 Los Angeles T-3878 874 Sacramento 5039 124 Sonoma 206 427 7 Calaveras 185 338 Madera 911 136 San Benito 300 405 Stanislaus 197 56 0 Colusa 323 391 Marin 1849 122 San Bernardino 6213 768 Sutter 655 585 Contra Costa 4684 1 Mariposa 90 453 San Francisco A-804 596 Tehama 457 183 Del Norte 101 549 Mendocino 667 99 San Joaquin 2855 283 Trinity 108 595 El Dorado 704 635 Merced 1660 753 San Luis Obispo 1311 137 Tulare 253 108 0 Fresno 5052 623 Modoc 191 93 San Mateo 4778 175 Tuolumne 177 160 Glenn 469 76 Mono 69 302 Santa Barbara 2065 881 Ventura 260 237 7 Humboldt 801 83 Monterey 357 239 Santa Clara 6626 664 Yolo 769 16 Imperial 1189 701 Napa 704 742 Santa Cruz 1638 607 Yuba 398 693 Inyo 165 672 Nevada 363 94 Shasta 800 633 Kern 3756 690 Orange 7182 18 San Diego SERIES 5 Book 1964, Page 149774 shall inure to and bind the parties hereto, with respect to the Property. Said agreements, terms and provisions contained in said subdivision A and B are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as if set forth at length herein. OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ Individual ❑ Corporate Officer Title(s) ❑ Partner(s) ❑ Limited ❑ General ❑ Attorney -In -Fact ❑ Trustee(s) ❑ Guardian/Conservator ❑ Other: Signer is representing: Name Of Person(s) Or Entity(ies) -7- 55575.18175\34589761.5 DESCRIPTION OF ATTACHED DOCUMENT Title or Type of Document Number Of Pages August 12, 2020 Date Of Document Signer(s) Other Than Named Above Trustor has caused this Deed of Trust to be executed as of the date set forth above. lounterpart S+9ned 0n 55575.18175\34589761.5 "TRUSTOR" Vista Sunrise II, L.P., a California limited partnership By: CVHC Sunrise Vista LLC, a California limited liability company, its general partner By: Coachella Valley Housing Coalition, a California nonprofit public benefit corporAW, its sole/me ber/manager By. Aar-'Q� Pedro S.G. R drig Interim Execfitive Director/CFO By: Sunrise DAP LLC, a California limited liability company, its administrative general partner By: Desert AIDS Project, a California nonprofit public benefit corporation, its sole/member/manager By: David rinkman, Chi xecutive Officer -8- IN WITNESS WHEREOF, Borrower has executed this Note as of the date first above written. Signed in Counterpart -8- 55575.18175\34589761.5 "Borrower" Vista Sunrise II, L.P., a California limited partnership By: CVHC Sunrise Vista LLC, a California limited liability company, its general partner By: Coachella Valley Housing Coalition, a California nonprofit pub ' benefit corporation, its sole/member/ma ger Pedro S. Rodriguez, InterirrrfExecutive Director/CFO By: Sunrise DAP LLC, a California limited liability company, its administrative general partner By: Desert AIDS Project, a California nonprofit public benefit corporation, its sole/member/manager By: rm man, Chief Executive Officer DO NOT RECORD The following is a copy of Subdivisions A and B of the fictitious Deed of Trust recorded in each county in California as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being a part thereof as if set forth at length therein. A. To protect the security of this Deed of Trust, Trustor agrees: 1) To keep said property in good condition and repair, not to remove or demolish any building thereon; to complete or restore promptly and in a good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor, to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. 2) To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at the option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. 4) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary of Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may: make or do the same is such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. 5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from the date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. It is mutually agreed: 1) That any award in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such moneys received by him in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. 2) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. 3) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof, join in granting any easement thereon, or join in any extension agreement or any agreement subordinating the lien or charge hereof. 4) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as "the person or persons legally entitled thereto." 5) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in the performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or be a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collecting of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 6) That upon default by Trustor in payment of any indebtedness secured hereby or in the performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest -9- 55575.18175\34589761.5 bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of. all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. 7) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. 8) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 9) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. -1�- 55575.18175\34589761.5 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Riverside On "�ec��..beL 23.7.cazt before me, MaryAnn Ybarra (insert name and title of the officer) personally appeared Pedro S.G. Rodriguez who proved to me on the basis of satisfactory evidence to be the person(g) whose names,) is/are subscribed to the within instrument and acknowledged to me that he/s4e/411ey executed the same in his/her/# ia4 authorized capacity(ies), and that by his/h$r/thair signatures) on the instrument the person(z), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 91MY MARY ANN YBARRA WITNESS my hand and official seal. Comm.#2306765U)WTAWPUBLIC-MIMIARIVERSIDE COUNTY COMM. EXP. OCT. ......223. 2 Signatu (Seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Riverside ` Mary Ann Ybarra p,} �G On aerr.1oat.- 23 202 l before me, , N h (insert name and title of thee fficer) personally appeared _ David Brinkman who proved to me on the basis of satisfactory evidence to be the person(A) whose name($) is/are subscribed to the within instrument and acknowledged to me that he/may executed the same in his/hefA4e+r-authorized capacity(ies), and that by his/he44heW signature(a) on the instrument the person(,), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 0,Vy MARY ANN YBARRA�C01012305765 WITNESS my hand and official seal.xow�rPueuc•c�wwrtYu Comm. D. .a Signature G LG� (Seal) Order No: 09196612-917-CG8-KRE EXHIBIT "A" ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL]: PARCEL A OF LOT LINE ADJUSTMENT NO. LLA 21-03-1537, AS SHOWN ON THE LOT LINE ADJUSTMENT GRANT DEED RECORDED JANUARY 18, 2022, AS INSTRUMENT NO. 2022-0025331, OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: IN THE CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING PARCEL 2 OF LOT LINE ADJUSTMENT NO. 01-01, RECORDED APRIL 26, 2001 AS INSTRUMENT NO. 2001-168548 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, LYING WITHIN THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 11, TOWNSHIP 4 SOUTH, RANGE 4 EAST, SAN BERNARDINO MERIDIAN, TOGETHER WITH A PORTION OF PARCEL A OF LOT LINE ADJUSTMENT NO. 05-13, RECORDED SEPTEMBER 13, 2005 AS INSTRUMENT NO. 2005-0756184 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01; THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO.01-01 SOUTH 0002149" WEST 13.46 FEET; THENCE LEAVING SAID WESTERLY LINE NORTH 89046'13" WEST 21.75 FEET; THENCE SOUTH 00013'47" WEST 154.54 FEET TO THE SOUTHERLY LINE OF PARCEL A OF SAID LOT LINE ADJUSTMENT NO. 05-13; THENCE ALONG SAID SOUTHERLY LINE SOUTH 89046'13" EAST 21.39 FEET TO THE SOUTHWESTERLY CORNER OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO 01-01; THENCE CONTINUING ALONG SAID SOUTHERLY LINE SOUTH 89046'13" EAST 295.00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01, SAID POINT BEING ON THE WESTERLY RIGHT-OF-WAY LINE OF SUNRISE WAY (50.00 FOOT HALF WIDTH); THENCE ALONG SAID WESTERLY RIGHT-OF-WAY LINE NORTH 00021'49" EAST 168.00 FEET TO THE NORTHEAST CORNER OF SAID PARCEL 2; THENCE ALONG THE NORTHERLY LINE OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01 NORTH 89046'13" WEST 295.00 FEET TO THE POINT OF BEGINNING. EXCEPT ALL MINERALS, OILS, GASES, AND OTHER HYDROCARBONS, BY WHATSOEVER NAME KNOWN, THAT MAY BE WITHIN OR UNDER LAND, WITHOUT, HOWEVER, THE RIGHT TO DRILL, DIG OR MINE THROUGH THE SURFACE THEREOF, AS CONTAINED IN DEED FROM THE STATE OF CALIFORNIA, RECORDED APRIL 28, 1964 AS INSTRUMENT NO. 52476 AND MARCH 6, 1975 AS INSTRUMENT NO. 1975-026565, BOTH OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 2: NON-EXCLUSIVE EASEMENTS FOR VEHICULAR AND PEDESTRIAN INGRESS, EGRESS, SHARED DRIVEWAY, PARKING, MAINTENANCE, DRAINAGE, STORMWATER, UTILITIES, INCLUDING INSTALLING, REPAIRING, MAINTAINING AND REPLACING SOLAR EQUIPMENT AND RELATED ELECTRICAL TRANSMISSION LINES, AND USE OF PARK IMPROVEMENTS, AS GRANTED IN THE JOINT USE AND MAINTENANCE AGREEMENT RECORDED CONCURRENTLY HEREWITH. SUBJECT TO THE TERMS AND CONDITIONS CONTAINED THEREIN. Order No: 09196612-917-CG8-KRE APN: 507-100-041-0, 507-100-044-0 (portions) H Recording Requested L, . Commonwealth Land Title Comaany WHEN RECORDED MAIL TO: City of Palm Springs Office of the City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 UUk; ;; zuzz-UU5yUU4 13/2022 04:32 PM Fees: $0.00 r �e 1 of 8 Recorded in Official Records County of Riverside Peter Aldana Assessor -County Clerk -Recorder "This document was electronically submitted to the County of Riverside for recording— Receipted by: KIYOMI #289 ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT This Assignment and Assumption Agreement of Development Agreement (the "Assignment") is dated for reference purposes as of this l st day of February 2022, and is entered into by and among The Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, and Desert AIDS Project, a California nonprofit public benefit corporation (collectively, the "Assignor"), and Vista Sunrise II, L.P., a California limited partnership (the "Assignee"), with reference to the following facts: A. The City of Palm Springs ("City") and the Assignor have entered into that certain Development Agreement dated as of January 14, 2021 (the "Development Agreement") with respect to certain real property located in the City of Palm Springs, County of Riverside, State of California as more particularly described in the attached Exhibit A (the "Land"), recorded in the Official Records of the County --r-1w -- 04pa - a)S-3V6(d B. The Assignor desires to assign to the Assignee and the Assignee desires to accept the assignment from the Assignor of all of the Assignor's rights and obligations with respect to the Development Agreement. C. Pursuant to Section 9.01 of the Development Agreement, the consent of the City to the assignment of the Partnership's rights and obligations under the Development Agreement is not required. NOW, THEREFORE, in consideration of the foregoing and the mutual promises of the parties hereto and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties mutually agree as follows: 1. Assignment by the Assignor. The Assignor hereby assigns and delegates to the Assignee all of the Assignor's rights, title, interest and obligations under the Development Agreement. 2. Acceptance of Assignment. The Assignee hereby accepts the foregoing assignment and delegation and hereby assumes and agrees to perform each and every of the Assignor's duties, obligations, covenants, and agreements under or pursuant to the Development Agreement, and further agrees to be bound by the terms and provisions of the Development Agreement. 3. Representations. The Assignor hereby represents and warrants that it has not previously assigned, pledged, hypothecated or otherwise transferred any of its rights under the Development Agreement. 5. No Other Modifications. Except as modified by this Assignment, the Development Agreement shall continue unmodified and in full force and effect. Exempt from fee per GC 27388.1(a) (1); fee cap of $225.00 reached. Recording Requested Bj . Commonwealth land Title Comoany WHEN RECORDED MAIL TO: City of Palm Springs Office of the City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT This Assignment and Assumption Agreement of Development Agreement (the "Assignment") is dated for reference purposes as of this Is' day of February 2022, and is entered into by and among The Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, and Desert AIDS Project, a California nonprofit public benefit corporation (collectively, the "Assignor"), and Vista Sunrise II, L.P., a California limited partnership (the "Assignee"), with reference to the following facts: A. The City of Palm Springs ("City") and the Assignor have entered into that certain Development Agreement dated as of January 14, 2021 (the "Development Agreement") with respect to certain real property located in the City of Palm Springs, County of Riverside, State of California as more particularly described in the attached Exhibit A (the "Land"), recorded in the Official Records of the County vZ—/-3.,f B. The Assignor desires to assign tc the Assignee and the Assignee desires to accept the assignment from the Assignor of all of the Assignor's rights and obligations with respect to the Development Agreement. C. Pursuant to Section 9.01 of the Development Agreement, the consent of the City to the assignment of the Partnership's rights and obligations under the Development Agreement is not required. NOW, THEREFORE, in consideration of the foregoing and the mutual promises of the parties hereto and for other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the parties mutually agree as follows: 1. Assignment by the Assignor. The Assignor hereby assigns and delegates to the Assignee all of the Assignor's rights, title, interest and obligations under the Development Agreement. 2. Acceptance of Assignment. The Assignee hereby accepts the foregoing assignment and delegation and hereby assumes and agrees to perform each and every of the Assignor's duties, obligations, covenants, and agreements under or pursuant to the Development Agreement, and further agrees to be bound by the terms and provisions of the Development Agreement. 3. Representations. The Assignor hereby represents and warrants that it has not previously assigned, pledged, hypothecated or otherwise transferred any of its rights under the Development Agreement. 5. No Other Modifications. Except as modified by this Assignment, the Development Agreement shall continue unmodified and in full force and effect. Exempt from fee per GC 27388.1(a) (1); fee cap of $225.00 reached. M rl� 6. Effective Date. The assignment set forth above shall be effective as of the date first written above. 7. Counterparts. This Assignment may be signed by different parties hereto in counterparts with the same effect as if the signatures to each counterpart were upon a single instrument. All counterparts shall be deemed an original of this Assignment. [Remainder of page left intentionally blank.] 0) o IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first written above. ASSIGNOR: THE COACHELLA VALLEY HOUSING COALITION, a California nonprofit public benefit corporation Pedro S.G. Rodriguez Executive Director DESERT AIDS PROJECT, a California nonprofit public benefit corporation By: David Bri , Chief Exe tive Officer ASSIGNEE: Vista Sunrise II, L.P., a California limited partnership By: CVHC Sunrise Vista LLC, a California limited liability company, its managing general partner By: The Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, its sole member/manager Pedro S.G. Rodriguez, Executive Director By: Sunrise DAP, LLC, a California limited liability company, its administrative general partner By: Desert AIDS Project, a California nonprofit public benefit corporation, its sole member/mana r By: David Br JAman, Chief FKecutive Officer S'grk?d in Counter Part Signed in Counterpart IN WITNESS WHEREOF, the parties have, executed this Assignment as of the date first written above. ASSIGNOR: THE COACHELLA VALLEY HOUSING COALITION, a California nonprofit public benefit corporation By: Pedro S.G. Ro guez Executive 'rector DESERT AIDS PROJECT, a Califo onprofit public benefit corporation By: Da Brinkman, Chief Executive Officer ASSIGNEE: Vista Sunrise II, L.P., a California limited partnership By: CVHC Sunrise Vista LLC, a California limited liability company, its managing general partner By: The Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, its sole member/m er By: Pedro S. . Rodriguez, Executive Director By: Sunrise DAP, LLC, a California limited liability company, its administrative general partner By: Desert AIDS Project, a California nonprofit public benefit corporation, its sole ber/manager By: 7 Davi Brinkman, Chief Executive Officer A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of�Je�si On 1 f 31190.;La before me, +dpioL _\ A6-S'LZUtkG , Notary Public, personally appeared, o s Gam. who proved to me on the basis of satisfactory evidence to b the person(eywhose namej&yis/peas subscribed to the within instrument and acknowledged to me that heh�he/they executed the same in his1W their authorized capacityWs), and that by his/,heP/their signatureKon the instrument the personk , or the entity upon behalf of which the personLs� acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNES Signatun FABIOLA VALENZUELA Wes: Notary Public - California Riverside County T Commission # 2138471 . •� My Comm. Expires Nov 24, 2024 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ) On before me, Notary Public, personally appeared, , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 4 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On (9 ! Icy before me, i'Z[ l l(v IOaY-rlC+ Notary Public, personally appeared, L'lj11� $ r►n k mil} who proved to me on the basis of satisfactory evidence to be the persfts�whose name>-} /gce subscribed to the within instrument and acknowledged to me that he/sJae/tbey executed the same in his/b> r!• it authorized capacity(, and that by his/baHth(signature(,-;}on the instrument the person(,}; or the entity upon behalf of which the perso*) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my h d and official seal. SHELIA is - NM 41if Notary Public - Cplifornia Si at *my Riverside County Commission # 2342594 Comm. Expires Jan 20, 2025 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of C' ) Ond ► I as before me, S\ 1C 4jk &rACA+ , Notary Public, personally appeared, , who proved to me on the basis of satisfactory evidence to be the person(owhose name(.-4 is/atesubscribed to the within instrument and acknowledged to me that he/sal of 4ey executed the same in his/l;er.t>k authorized capacity( es), and that by his/ fir/their signature(p" on the instrument the person{<, or the entity upon behalf of which the persorgj4 acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand d official seal. *my SHELIA BARNETr Notary Public - California Riverside CgUnty Signat Commission # 2342594 Comm. Expires Jan 20, 2025 4 Order No: 09196612-917-CG8-KRE EXHIBIT "A" ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL]: PARCEL A OF LOT LINE ADJUSTMENT NO. LLA 21-03-1537, AS SHOWN ON THE LOT LINE ADJUSTMENT GRANT DEED RECORDED JANUARY 18, 2022, AS INSTRUMENT NO. 2022-0025331, OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: IN THE CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING PARCEL 2 OF LOT LINE ADJUSTMENT NO. 01-01, RECORDED APRIL 26, 2001 AS INSTRUMENT NO. 2001-168548 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, LYING WITHIN THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 11, TOWNSHIP 4 SOUTH, RANGE 4 EAST, SAN BERNARDINO MERIDIAN, TOGETHER WITH A PORTION OF PARCEL A OF LOT LINE ADJUSTMENT NO. 05-13, RECORDED SEPTEMBER 13, 2005 AS INSTRUMENT NO. 2005-0756184 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01; THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 0 1 -0 1 SOUTH 00021'49" WEST 13.46 FEET; THENCE LEAVING SAID WESTERLY LINE NORTH 89046'13" WEST 21.75 FEET; THENCE SOUTH 0001347" WEST 154.54 FEET TO THE SOUTHERLY LINE OF PARCEL A OF SAID LOT LINE ADJUSTMENT NO. 05-13; THENCE ALONG SAID SOUTHERLY LINE SOUTH 89046'13" EAST 21.39 FEET TO THE SOUTHWESTERLY CORNER OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO 01-01; THENCE CONTINUING ALONG SAID SOUTHERLY LINE SOUTH 89'46'13" EAST 295.00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01, SAID POINT BEING ON THE WESTERLY RIGHT-OF-WAY LINE OF SUNRISE WAY (50.00 FOOT HALF WIDTH); THENCE ALONG SAID WESTERLY RIGHT-OF-WAY LINE NORTH 00021'49" EAST 168.00 FEET TO THE NORTHEAST CORNER OF SAID PARCEL 2; THENCE ALONG THE NORTHERLY LINE OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01 NORTH 89046'13" WEST 295.00 FEET TO THE POINT OF BEGINNING. EXCEPT ALL MINERALS, OILS, GASES, AND OTHER HYDROCARBONS, BY WHATSOEVER NAME KNOWN, THAT MAY BE WITHIN OR UNDER LAND, WITHOUT, HOWEVER, THE RIGHT TO DRILL, DIG OR MINE THROUGH THE SURFACE THEREOF, AS CONTAINED IN DEED FROM THE STATE OF CALIFORNIA, RECORDED APRIL 28, 1964 AS INSTRUMENT NO. 52476 AND MARCH 6, 1975 AS INSTRUMENT NO. 1975-026565, BOTH OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 2: NON-EXCLUSIVE EASEMENTS FOR VEHICULAR AND PEDESTRIAN INGRESS, EGRESS, SHARED DRIVEWAY, PARKING, MAINTENANCE, DRAINAGE, STORMWATER, UTILITIES, INCLUDING INSTALLING, REPAIRING, MAINTAINING AND REPLACING SOLAR EQUIPMENT AND RELATED ELECTRICAL TRANSMISSION LINES, AND USE OF PARK IMPROVEMENTS, AS GRANTED IN THE JOINT USE AND MAINTENANCE AGREEMENT RECORDED CONCURRENTLY HEREWITH. SUBJECT TO THE TERMS AND CONDITIONS CONTAINED THEREIN. Order No: 09196612-917-CG8-KRE APN: 507-100-041-0, 507-100-044-0 (portions) y� uv%.. ff cucc-w00yy 1 13/2022 04:20 PM Fees: $0.00 je 1 of 28 Recorded in Official Records RECORDING REQUESTED BY: County of Riverside COMMONWEALTH LAND TITLE Peter Aldana Assessor -County Clerk -Recorder WHEN RECORDED MAIL TO: CITY CLERK CITY OF PALM SPRINGS **This document was electronically submitted 3200 EAST TAHQUITZ CANYON WAY to the County of Riverside for recording — PALM SPRINGS, CA 92262 Receipted by: KIYOMI #289 09196612 FEE PROGRAM PARTICIPATION AGREEMENT v G RECORDING REQUESTED BY: COMMONWEALTH LAND TITLE WHEN RECORDED MAIL TO: CITY CLERK CITY OF PALM SPRINGS 3200 EAST TAHQUITZ CANYON WAY PALM SPRINGS, CA 92262 09196612 FEE PROGRAM PARTICIPATION AGREEMENT Recording Requested By: Commonwealth Land Title Comaany AND WHEN RECORDED MAIL TO: City Clerk City of Palm Springs 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 Space above this line is for Recorder's use Fee Program Participation Agreement This Fee Program Participation Agreement ("Agreement"), effective as of January 1, 2022, ("Effective Date"), is between the City of Palm Springs, a California charter city ("City"), and Vista Sunrise II, L.P. ("Developer"), collectively, the "Parties." RECITALS A. Concurrently herewith Developer is entering into a Ground Lease for that real property known as 1527 Vista Sunrise Way and 507-100-041-0 and more specifically described by Exhibit A (the "Property"). The Property is owned by Desert AIDS Project, a California nonprofit public benefit corporation ("DAP"). B. Developer desires to develop the Property with a 61-unit, three-story, affordable -housing complex for individuals with chronic illness with 31 parking spaces (the "Project"). The Project is more specifically described by Exhibit B. C. The City lawfully imposes development -impact fees and developer fees on new development, but the City also desires to further encourage the creation of affordable housing. To that end, the City has established an Affordable and Multi -Family Housing Incentive Program ("Program"), through which it allows for waiver of some or all of the development -impact and developer fees that the City would normally impose on a development project (a "Fee Waiver"). A copy of the City resolution that establishes and describes the Program is included as Exhibit D. Developer desires to receive a Fee Waiver for the Project in accordance with the Program. E. The Parties therefore agree as follows: TERMS AND CONDITIONS 1. Fee Waiver and Deferral. 1.1 The City hereby waives 100 percent of the development -impact and developer fees for the Project ("Waived Fees") in accordance with the Program. 55575.18175\34782790.3 O1/31/22 Page 2 of 9 1.2 Before the City may issue a Certificate of Occupancy for a dwelling unit in the Project, Developer must pay any development -impact and developer fee that is not a Waived Fee under paragraph 1.1 above. 2. Regulatory Agreement and Affordability Covenant. 2.1 Within 24 months after the date that the City approves all discretionary land -use entitlements associated with the Project, Developer will do each of the following: (A) Enter into a regulatory agreement with the City ("Regulatory Agreement") in a form that is satisfactory to and approved by the City Attorney and approved by the City Manager. (B) Record the Regulatory Agreement and an affordability covenant that implements the Regulatory Agreement. (C) Obtain a building permit from the City to construct all of the affordable dwelling units that are required by the Regulatory Agreement ("Affordable Units"). 2.2 If the City grants an extension or extensions of time for any of the land -use entitlements for the Project, the 24-month deadline in paragraph 2.1 above is extended by a time equal to the longest extension of the entitlements. 2.3 The City hereby acknowledges and agrees that the regulatory agreement recorded in connection with the loan made by City to Developer to finance, in part, the construction of the Project, executed on or about January 13, 2022 ("Loan Agreement") satisfies the requirement in Section 2.1(A) and (B) to record a Regulatory Agreement and affordability covenant, notwithstanding any foreclosure rights of the senior lender to the Project. 3. Construction of Affordable Units. In order to ensure the requirement(s) of the Program do not conflict with any rights and obligations that have been conferred or imposed by the City upon Developer by the Loan Agreement, Developer will be required to complete construction of and obtain a certificate of occupancy for each Affordable Unit in accordance with that certain Loan Agreement, delineating that said requirement be met by June 30, 2025. 4. Affordability Requirements for Participation in the Program. It is acknowledged that the Developer requested and the City approved a fee waiver of 100% based, in part, on the determination that, in agreeing to restrict the maximum number of affordable housing units the City may require be restricted under Article 34 of the California Constitution (by way of clarification, here, 49% of 60 units or 29 units), Developer has complied with the requirement set out by Section 4(d) of Section 2 of the Resolution, as contained in Exhibit C. 5. Liability for Waived Fees. If Developer fails to comply with each of its obligations under paragraph 2.1 and paragraph 2.2 above by the respective deadlines set forth therein, 55575.18175\34782790.3 O1/31/22 Page 3 of 9 Developer is in default under this Agreement and immediately becomes liable for and must pay all Waived Fees, plus a penalty equal to 10 percent of the Waived Fees applied annually from the date of building -permit issuance ("Default Penalty"). 6. Enforcement. If Developer is in default, the City may do any or all of the following: 6.1 Withhold all City approvals for the Project until the default is cured. 6.2 [INTENTIONALLY OMITTED]. 6.3 [INTENTIONALLY OMITTED]. 6.4 Obtain a personal judgment against Developer or its successor for the amount of the Waived Fees and Default Penalty. 6.5 Enjoin rental or sale of any of the Affordable Units at an amount that is higher than that which is permitted by the Regulatory Agreement and affordability covenants. 6.6 Impose the following fines: (A) $500 a day for each day that an Affordable Unit is not built after the deadline in paragraph 3. (B) $500 a day for each day that a constructed Affordable Unit is rented in violation of the Regulatory Agreement and affordability covenant. 6.7 Take any other administrative-, civil-, or criminal -enforcement action that is available to the City at law or in equity. 7. Hold Harmless. Developer will defend, indemnify, and hold the City and its officials and employees harmless from all damages, claims, and actions related to this Agreement, including but not limited to all costs and liabilities arising from Developer's failure to comply with prevailing -wage or other state or federal laws and regulations. The City makes no representation as to the applicability of prevailing -wage laws to the Project. Developer will determine whether prevailing -wage laws apply to its Project and is solely responsible for its compliance. The City may direct its own defense from any claim of damage related this Agreement, with counsel of the City's choosing, and Developer will reimburse the City for all associated fees and costs. 8. General. 8.1 Successors. This Agreement binds the Parties' successors. 8.2 Assignment. This Agreement may be assigned, but an assigning Party is not relieved of any of its obligations or liability under this Agreement unless the assignment is approved in writing by the other Party, which assignment may be approved, or not, by the approving Parry's reasonable discretion. 5 5575.18175\34782790.3 01/31/22 Page 4 of 9 8.3 Recording. This Agreement must be recorded by Developer on Developer's leasehold interest in the Property within fifteen business days after full execution by the Parties. If Developer fails to record this Agreement within that time, Developer is in default, subject to enforcement under paragraph 6 above. Developer will pay all fees associated with recording this Agreement. In the event that any fees, fines, penalties or other financial obligations are imposed on Developer by the City in connection with this Agreement, Developer shall immediately pay such obligations, and upon payment in full, the City shall issue a written confirmation of payment in full, a copy of which shall be provided to DAP in recordable form. 8.4 Severability. If any part of this Agreement is held by a court to be invalid, all other parts of the Agreement remain in effect. 8.5 Choice of Law and Venue. This Agreement, its construction and any and all disputes arising out of or relating to it, shall be interpreted in accordance with the substantive laws of the State of California without regard to its conflict -of -law principles. Venue lies exclusively in state and federal courts in Riverside County, California. 8.6 Modification. No modification, amendment, or waiver of any provision of this Agreement is effective unless made in writing and signed by both Parties. 8.7 Merger and Integration. This Agreement contains the entire agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior negotiations, agreements, and understandings with respect thereto. 8.8 Counterparts. This Agreement may be executed in any number of counterparts, each of which is deemed an original, and all of which, when taken together, constitute one and the same instrument. The Agreement becomes effective as of the Effective Date when each Parry signs a counterpart and delivers it to the other Party, in its original form or by electronic mail, facsimile or other electronic means. The Parties hereby consent to the use of electronic signatures in connection with the execution of this Agreement and further agree that electronic signatures to this Agreement are legally binding with the same force and effect as manually executed signatures. 8.9 Relationship of the Parties. The Parties are entering into an arm's-length transaction and do not have any relationship, employment or otherwise. This Agreement does not create nor is it intended to create, a partnership, franchise, joint venture, agency, or employment relationship between the Parties. There are no third -party beneficiaries to this Agreement. 8.10 Waiver and Cumulative Remedies. No failure or delay by either Party in exercising any right under this Agreement may be deemed to waive that right or any other right. Other than as expressly stated herein, the remedies provided herein are in 55575.18175\34782790.3 O1/31/22 Page 5 of 9 addition to, and not exclusive of, any other remedy that a Party might have at law or in equity. 8.11 Force Majeure. Neither Parry is liable for any failure or delay in performance under this Agreement due to causes beyond that Party's reasonable control and that occurs without that Party's fault or negligence, including, but not limited to, any act of God, act of government, flood, fire, civil unrest, acts of terror, strike or other labor problem (other than those involving Developer employees), computer attacks or malicious acts, such as attacks on or through the Internet, any Internet service provider, telecommunications or hosting facility. Dates by which performance obligations are scheduled to be met will be extended for a period of time equal to the time lost due to any delay so caused. (Signatures on following page) 55575.18175\34782790.3 01/31/22 Page 6 of 9 IN WITNESS WHEREOF, the City and Developer have executed this Agreement as set forth below. DEVELOPER Vista Sunrise II, L.P., a California limited partnership By: CVHC Sunrise Vista LLC, a California limited liability company, its managing general partner By: Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, its sole member/manag B.I. Pedro S.G. Rodriguez, Executive Director By: Sunrise DAP LLC, ` a California limited liability company, its administrative general partner By: Desert AIDS Project, a California nonprofit public benefit corporation, its sole member/man er Pa 1'n By. David BI an, Chief Ex cutive Officer CITY OF PALM SPRINGS By: Justin (Aifton, City ager 55575.18175\34782790.3 01/31/22 e,911(k �p� C Page 7 of 9 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of RIVERSIDE On T / , 2922 before me, / e//-/ �Z , Notary Public, personally appeared L JUG, 7`7 n L' // M n „ _ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WI Smyh d w ss 1., Signature: 55575.18175\34782790.3 O1/31/22 �• r TERRI HINTZ Notary Public . California seal'~ Riverside County (seal) i Commission # 2359495 .'My Comm. Expires Jun 26, 2025 Page 8 of 9 notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of RIVERSIDE On February 1 , 2022 before me, Mary Ann Ybarra , Notary Public, personally appeared Pedro S.G. Rodriguez , who proved to me on the basis of satisfactory evidence to be the person(i) whose name(t) is/are-subscribed to the within instrument and acknowledged to me that he/slotkey executed the same in his/hen4heir authorized capacity(its), and that by his/hentheir- signature(g) on the instrument the person(d), or the entity upon behalf of which the personal acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. I919y MARY AMI YBARRA WITNESS m hand and o cial seal. - CoMill2306765 NM Y= PUBW-CAUFOWAR Canm Signature: (seal) Cm. E v. ocT. 23. 2023 55575.18175\34782790.3 O1/31/22 Page 6 of 9 IN WITNESS WHEREOF, the City and Developer have executed this Agreement as set forth below. DEVELOPER Vista Sunrise II, L.P., a California limited partnership By: CVHC Sunrise Vista LLC, a California limited liability company, its managing general partner By: Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, its sole member/manage By:Pled i17 Pedro S.G. Rofriguez, Executive Di ctor By: Sunrise DAP LLC, a California limited liability company, its administrative general partner By: Desert AIDS Project, a California nonprofit public benefit corporation, its solenber/manager By: Davik4rinkman, Chief txecutive Officer CITY OF PALM SPRINGS By: Justin Wifton, City ager 5 5575.18175\34782790.3 01/31/22 CC)Lr J'x 0 notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of RIVERSIDE Page 9 of 9 On tb Jr LLc 0,1 2022 before me, , k)' PWl� b (.4 -- L4 , Notary Public, personally appeared k rn&l) , who proved to me on the basis of satisfactory evidence to be the person*whose name is/arm subscribed to the within instrument and acknowledged to me that he/fie/thy executed the same in his/her/their authorized capacity(*), and that by his/her/their signatur*) on the instrument the person(4), or the entity upon behalf of which the person(is) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my d official seal. Sign ure: ��`" (seal) r SHELIA BARNM r` ....w" L Notary Public CaliforniaRiverside Cqunty Commission p 234259omm. Expires Jan 20, 2025 55575.18175\34782790.3 O1/31/22 Order No: 09196612-917-CG8-KRE EXHIBIT "A" ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCELI: PARCEL A OF LOT LINE ADJUSTMENT NO. LLA 21-03-1537, AS SHOWN ON THE LOT LINE ADJUSTMENT GRANT DEED RECORDED JANUARY 18, 2022, AS INSTRUMENT NO. 2022-0025331 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: IN THE CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING PARCEL 2 OF LOT LINE ADJUSTMENT NO. 01-01, RECORDED APRIL 26, 2001 AS INSTRUMENT NO. 2001-168548 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, LYING WITHIN THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 11, TOWNSHIP 4 SOUTH, RANGE 4 EAST, SAN BERNARDINO MERIDIAN, TOGETHER WITH A PORTION OF PARCEL A OF LOT LINE ADJUSTMENT NO. 05-13, RECORDED SEPTEMBER 13, 2005 AS INSTRUMENT NO. 2005-0756184 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01; THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO.01-01 SOUTH 00021'49" WEST 13.46 FEET; THENCE LEAVING SAID WESTERLY LINE NORTH 89'46'13" WEST 21.75 FEET; THENCE SOUTH 00013'47" WEST 154.54 FEET TO THE SOUTHERLY LINE OF PARCEL A OF SAID LOT LINE ADJUSTMENT NO.05-13; THENCE ALONG SAID SOUTHERLY LINE SOUTH 89046'13" EAST 21.39 FEET TO THE SOUTHWESTERLY CORNER OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO 01-01; THENCE CONTINUING ALONG SAID SOUTHERLY LINE SOUTH 8904613" EAST 295.00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01, SAID POINT BEING ON THE WESTERLY RIGHT-OF-WAY LINE OF SUNRISE WAY (50.00 FOOT HALF WIDTH); THENCE ALONG SAID WESTERLY RIGHT-OF-WAY LINE NORTH 00021'49" EAST 168.00 FEET TO THE NORTHEAST CORNER OF SAID PARCEL 2; THENCE ALONG THE NORTHERLY LINE OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01 NORTH 89046'13" WEST 295.00 FEET TO THE POINT OF BEGINNING. EXCEPT ALL MINERALS, OILS, GASES, AND OTHER HYDROCARBONS, BY WHATSOEVER NAME KNOWN, THAT MAY BE WITHIN OR UNDER LAND, WITHOUT, HOWEVER, THE RIGHT TO DRILL, DIG OR MINE THROUGH THE SURFACE THEREOF, AS CONTAINED IN DEED FROM THE STATE OF CALIFORNIA, RECORDED APRIL 28, 1964 AS INSTRUMENT NO. 52476 AND MARCH 6, 1975 AS INSTRUMENT NO. 1975-026565, BOTH OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 2: NON-EXCLUSIVE EASEMENTS FOR VEHICULAR AND PEDESTRIAN INGRESS, EGRESS, SHARED DRIVEWAY, PARKING, MAINTENANCE, DRAINAGE, STORMWATER, UTILITIES, INCLUDING INSTALLING, REPAIRING, MAINTAINING AND REPLACING SOLAR EQUIPMENT AND RELATED ELECTRICAL TRANSMISSION LINES, AND USE OF PARK IMPROVEMENTS, AS GRANTED IN THE JOINT USE AND MAINTENANCE AGREEMENT RECORDED CONCURRENTLY HEREWITH. SUBJECT TO THE TERMS AND CONDITIONS CONTAINED THEREIN. Order No: 09196612-917-CG8-KRE APN: 507-100-041-0, 507-100-044-0 (portions) EXHIBIT B DESCRIPTION OF PROJECT Located to the south of the DAP healthcare facilities, the Vista Sunrise II development will be situated on roughly 1.14 acres of what is now vacant land which rectangular shaped in site plan view, elongated in the west -east direction and is relatively flat -lying. The property is located in a fully developed urban area of Palm Springs, surrounded by a mixture of residential and commercial properties. The site has two bus routes approximately 250 feet from the development. Adjacent to the subject site to the north is the Palm Springs Family Care Center, the Morris & Lila Linsky Annex Food Depot, and the Desert AIDS Project office buildings with associated parking. Further north is Vista Chino Road. Adjacent to the site to the west is a small stormwater detention basin. The Sunrise Business Medical Center and the Ranch Club apartments are located to the south of the site. Across Sunrise Way to the east and northeast is the Sagewood condo complex and the Stater Bros. shopping center, respectively. Approximately 500 feet to the northeast of the site at the southeast corner of Vista Chino and Sunrise Way is an Arco fueling station. The apartment homes will consist of 60-units of affordable housing and one manager's unit. The building is International Style with a slight Art Deco influence with light wood framing construction. The construction type for the project is V-B, with a slab on grade foundation. The main exterior skin material is stucco. Metal is used for exterior corridor posts, decks, and guardrails. Interior courtyard decorative walls are finished with mosaic pattern ceramic tiles. All residents have access to the 1600 square foot community building. The Community Room includes a computer station, to be completed with laptop computers, educational software, and Internet access. The community room will be equipped with a demonstration kitchen where residents can participate in the presentation and demonstration of healthy food and/or the presentation and explanation of domestic healthy cooking recipes or techniques. The community room also provide access for resident social gatherings or meetings. 55575.18175\34782790.3 O1/31/22 EXHIBIT C RESOLUTION NO.24654 THE AFFORDABLE AND MULTI -FAMILY HOUSING INCENTIVE PROGRAM 55575.18175\34782790.3 01/31/22 exbit-�tc RESOLUTION NO.24654 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ESTABLISHING THE "AFFORDABLE AND MULTI -FAMILY HOUSING INCENTIVE PROGRAM," A PROGRAM TO ESTABLISH REDUCED DEVELOPMENT IMPACT FEES AND DEVELOPER FEES RELATED TO RESIDENTIAL PROJECTS CONSTRUCTING NEW AFFORDABLE DWELLING UNITS, OR CONSTRUCTING NEW MULTI -FAMILY RESIDENTIAL UNITS. WHEREAS, on June 19, 2019, the City Council of the City of Palm Springs, (hereinafter "City Council"), directed staff to develop a policy to establish reduced development impact fees, application fees, and permit fees related to residential projects that construct new affordable residential dwelling units; and WHEREAS, development impact fees are monetary exactions established and imposed according to various sections of the Palm Springs Municipal Code and the California Government Code, and collected as fees at rates established by Resolution to finance the design, construction, installation, and acquisition of public infrastructure or to recover the costs of adding capacity in existing public infrastructure; and WHEREAS, the City has established the following development Impact fees applicable to residential projects: a Drainage Fee to Implement the City's Master Plan of Drainage; the Public Art Fee to establish public art throughout the City; the Park Fee in accordance with Ordinance No. 1632 pursuant to the Quimby Act; and the Sewer Connection Fee, (the "Development Impact Fees"); and WHEREAS, developer fees are specific fees imposed on certain applications or permits associated with the Building, Engineering, Fire, and Planning Services Departments (the "Developer Fees"), established and imposed according to various sections of the Palm Springs Municipal Code and the California Government Code, and collected as fees at rates established by Resolution to adequately recover the City's costs to provide services in those Departments; and WHEREAS, funding for the construction of new affordable dwelling units has significantly decreased since the state of California's decision to completely dissolve and eliminate all of the Redevelopment Agencies existing throughout the state, including the City of Palm Springs Redevelopment Agency; and WHEREAS, production of new affordable dwelling units has stalled due to Increased construction costs and an overall decline in Federal and State funding for affordable housing; and ResoluWn No. 24654 Page 2 WHEREAS, on March 6, 2019, the City Council adopted Ordinance No. 1981, as a means of creating Accessory Dwelling Units ("ADUsl in accordance with California Government Code (CGC) Section 65852.2, recognizing ADUs as an important source of housing that contributes to the character and diversity of housing opportunities In the City, and as providing workforce housing, housing for family members, students, elderly, in - home health care providers, the disabled, and others; and WHEREAS, Section 93.23.14(D)(4)(a) of the Palm Springs Zoning Code adopted by Ordinance No. 1981 set forth a requirement that the owner of an ADU may live within the primary dwelling unit or the ADU, and may rent the other unit, provided rentals shall be for periods of twenty-eight (28) days or more, or may rent both the primary dwelling unit and ADU concurrently for periods of twenty-eight (28) days or more; and WHEREAS, in accordance with Section 93.23.14(0)(4)(a) of the Palm Springs Zoning Code, new ADUs may not be constructed with the intent purpose of being operated as a "Vacation Rental" as that term Is defined in and pursuant to Chapter 5.25 of the Palm Springs Municipal Code; and WHEREAS, the City Council's adoption of Ordinance No. 1981 was in compliance with the State's mandate regarding ADUs wet forth in CGC Sections 65852.1 and 65852.2, as a response to the State's severe housing crisis, with the intention of providing for the creation of more ADUs; and WHEREAS, payment of Development Impact Fees and Developer Fees constitutes a barrier for the construction of affordable dwelling units and ADUs; and WHEREAS, the City Council desires to establish a policy of Incentivizing the construction of new affordable dwelling units, multiple -unit and ADUs through the establishment of lower Development Impact Fees and/or Developer Fees, as a way of addressing the City's and State's housing crisis; and WHEREAS, nothing herein constitutes the City's approval of any applications, development project entitlements and/or permits, and such, to the extent required in the future, are subject to and contingent upon City Council approval following, to the extent applicable, environmental review In compliance with the California Environmental Quality Act ("CEW). THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY RESOLVES, DETERMINES AND APPROVES AF FOLLOWS: SECTIQN 1. Factual Findings: A. The true and correct recitals above are incorporated by this reference herein as the basis and foundation for the City's adoption of this Resolution. B. The City Council has determined that waiving or reducing certain Development Impact Fees and Developer Fees established by previous Resolutions for new residential Resoludon No. 24654 Page 3 projects that construct affordable and/or multi -family residential dwelling units orADUs would not significantly alter the City's ability to finance the design, construction, installation, and acquisition of public infrastructure or significantly impact existing finance plans. C. The establishment of lower Development Impact Fees and Developer Fees to incentivize construction of new affordable and/or multi -family residential dwelling units and ADUs Is consistent with the City of Palm Springs General Plan Housing Element, In furtherance of: Goal HS1: Facilitate a broad range of housing types, prices, and opportunities to address current and future housing needs; and Action HS1.3: Continue to Offer Financial Incentives. Whereas the City of Palm Springs has designated sufficient vacant land to support the production of housing affordable to all economic segments of the community, affordable housing typically requires publicly and privately funded financial assistance to make projects feasible. To that end, the City grants financial Incentives (e.g., fee waivers for parks), to support the production of affordable housing to be built during the present housing element planning period. The continuation of financial Incentives will further City housing goals. 5-Year Objectives: Continue to approve fee reductions and waivers, General funds, and make available other financial assistance, where possible, for extremely low, very low and low income housing projects. • Consider waiving the Multiple Species Habitat Conservation Plan fee (e.g., fee to acquire sensitive habitat) for extremely low, very low and low income affordable housing projects. • Promote financial and development assistance programs to the building community on an annual basis. D. The City Council has considered the effects of the reduced Development Impact Fees and Developer Fees to incentivize construction of new affordable and/or multRamily residential dwelling units and ADUs with respect to the City's and region's housing needs. SECTION 2. Affordable and Mufti -Family Housing Incentive Program Established. 1) The City Council hereby establishes the "Affordable and Multi-Famlly Housing Incentive Program" applicable to new residential projects that construct affordable dwelling units for sale or rent, or for construction of new multi -family dwelling units for sale or rent, or construction of new ADUs, (hereafter the "Program"). The Program shall provide relief from payment of applicable Development Impact Fees and/or Developer Fees, or deferral of the payment of these fees, as further specified herein. Resolution No. 24654 Page 4 2) Purpose: The City Council hereby establishes the Program to encourage the construction of residential projects that will provide units with affordable rents or affordable housing costs for low and very low-income households in the City of Palm Springs. Additionally, the City Council establishes the Program to encourage construction of new housing affordable to middle income households. The City Council finds that payment of certain fees for residential development may create a barrier to such development and desires, by the adoption of this Resolution, to ease such barrier by eliminating the requirement to pay the full cost of certain fees, or to allow deferral of the payment of certain fees. To create further Incentive to construct residential projects with affordable dwelling units, the City Council also desires to reduce certain Developer Fees or a portion of such fees as set forth in this Resolution. The City Council finds that this Program is consistent with the policies and goals of the Housing Element of the General Plan of the City of Palm Springs, and necessary for the health and welfare of the City's residents. 3) Definitions a) "Affordability covenant" means a covenant restricting all low income and very low- income units to remain affordable to low income and very low-income households for not less than 55 years for rental units and not {ess than 45 years for owner - occupied units. b) "Affordable dwelling units" means a residential unit (single family home or multi- family condominium unit) for sale, or a residential apartment unit for rent, that are restricted for occupancy by low-income and very low-income households. c) "Affordable housing cost" refers to the definition contained in California Health & Safety Code section 50052.5, including, but not limited to, cost limits for low and very low-income households in owner -occupied housing, as further defined in Volume 25 of the California Code of Regulations. d) "Affordable housing projecC means new residential projects that include construction of affordable dwelling units for sale at an affordable housing cost, or for rent at an affordable rent. e) °Affordable rent" refers to the definition contained in California Health & Safety Code section 50023, including but not limited to cost limits for low and very low- income households In rental housing, as further defined in Volume 25 of the California Code of Regulations. f) "Applicant" means the owner or owners of record of the real property who request a reduced fee amount pursuant to the Program. g) "Area Median Income" means the median household income as provided in Section 50093(c) of the California Government Code, as it is currently enacted or hereinafter amended. Resoludon No. 246M Page 6 h) "Developer Fees" refers to development processing and administrative fees including, but not limited to, application, processing, plan check and inspection fees required by code, ordinance, resolution or other law to be paid as a condition of, or prerequisite to, development of residential uses, as those codes, ordinances, resolutions or other laws may be amended from time to time. i) 'Development Impact Fees" refers to city fees imposed for the purpose of defraying all or a portion of the cost of public facilities related to a development project as required by code, ordinance, resolution or other law to be paid as a condition of, or prerequisite to, development of residential uses, as those codes, ordinances, resolutions or other laws may be amended from time to time. Only Development Impact Fees Imposed by the City are subject to this Program. All Development Impact Fees imposed by other entities or agencies are excluded from the Program, and shall be paid by the applicant in accordance with applicable statutes, resolutions, ordinances, and regulations. 1) "Director" means the Director of Planning Services, or his or her designee. k) "Fee Program Participation Agreement" refers to the agreement by and between the applicant and the City of Palm Springs that is required for approval of participation in this Program. "Household" means one person living alone or two or more persons sharing residency whose Income is considered for housing payments. m) "Inclusionary Unit" means a new multi -family residential condominium unit offered for purchase to middle -income households at a sales price according to requirements specified in the Program. n) "Low-income households" refers to the definition contained in California Health & Safety Code section 50079.5, including but not limited to an income limit of 80 percent of area median income, adjusted for family size and revised annually. o) "Middle -income households" refers to household whose income is between 120 percent and 160 percent of the Area Median Income, adjusted for household size. p) "Penalties" means an amount equal to one hundred dollars ($100) per unit per month computed from the date deferred fees are due and payable or the date units are required to be constructed. q) "Very low-income households" refers to the definition contained in California Health & Safety Code section 50105, Including but not limited to an income limit of 50% of area median income, adjusted for family size and revised annually. 4) Affordable Housing Projects: Resolution No. 24664 Page 6 Affordable housing projects shall be eligible for reduced Development Impact Fees and Developer Fees as follows: a) For affordable housing projects proposing construction of 100% affordable dwelling units, the applicable Development Impact Fees and Developer Fees are hereby established at a rate that is reduced by 100%. b) For affordable housing projects proposing construction of less than 100% affordable dwelling units, the applicable Development Impact Fees and Developer Fees are hereby established as follows: i) 90% -100% affordable dwelling units = reduced by 90% iD 80% - 89% affordable dwelling units = reduced by 80% Ili) 70% - 79% affordable dwelling units = reduced by 70% iv) 60% - 69% affordable dwelling units = reduced by 60% v) 500/a - 59% affordable dwelling units = reduced by 60% vi) 40% - 49% affordable dwelling units = reduced by 40% vii) 30% - 39% affordable dwelling units = reduced by 30% viii) 20% - 29% affordable dwelling units = reduced by 20% ix) 10% -19% affordable dwelling units = reduced by 10% x) 5% - 9% affordable dwelling units = reduced by 5% xi) 1 % - 4% affordable dwelling units = reduced by 1 % c) An applicant proposing an affordable housing project may file a request with the Director at the time the applicant files applications for related land use entitlements or other approvals with the City. The request shall clearly identify the nature of the request, the type of affordable housing project, the number of units, and the requested reduction of applicable Development Impact Fees and Developer Fees pursuant to the Program. d) As a condition of the City's acceptance of an applicant's land use entitlement applications, the applicant shall be required to enter into a Fee Program Participation Agreement in a legal form satisfactory to the City Attorney and approved by the City Manager. The Fee Program Participation Agreement shall: Be site and project specific; 11) Require applicant to enter into required affordability covenants for proposed affordable dwelling units as a condition of receiving the benefit of the Program pursuant to the Fee Program Participation Agreement. Ili) Allow for the deferral of payment of required Developer Fees and Development Impact Fees until, and immediately prior to, the City's issuance of a Certificate of Occupancy for the affordable dwelling units subject to the Fee Program Participation Agreement. If construction of the affordable Resolution No. 24654 Page 7 dwelling units Is phased, or consolidated Into separate buildings, the payment of required Developer Fees and Development Impact Fees will be required at the time a final inspection and Certificate of Occupancy is requested by the applicant for each phase of the affordable housing project, or each building constructed with affordable dwelling units. iv) Provide for reimbursement to the City of all applicable Developer Fee reductions provided by the Program if, following twenty-four (24) months from the City's approval of all discretionary land use entitlements associated with the affordable housing project, the applicant fails to: (1) enter into required affordability covenants, or (2) obtain a building permit from the City to construct the affordable dwelling units. Extensions of time associated with land use entitlements granted by the City shall automatically extend the time limit required herein. v) Provide for reimbursement to the City of a portion of applicable Developer Fees and/or Development Impact Fees reduced by the Program if the applicant fails to construct the number or percentage of affordable units specified in the Fee Program Participation Agreement. vi) Provide for the enforcement of the provisions of the Program; vii) Bind applicant's successors in Interest; vili) Provide that the project applicant shall defend, indemnify and hold harmless the City and its officials and employees for any claim or action arising from the Agreement, including, without limitation, any claim or action regarding the applicability of prevailing wages; and ix) Be recorded with the Riverside County Recorder's Office. e) The applicant shall be responsible for any recording fees of the Fee Program Participation Agreement. 5) Mufti -Family Apartment Projects: Mulfi-family apartment projects not constructing affordable dwelling units shall be eligible for reduced Developer Fees and Development Impact Fees as follows: a) An applicant constructing a multi -family apartment project with new apartment units for lease to the public at market rental rates shall be eligible for a 50% reduction of applicable Developer Fees and Development Impact Fees. b) As a condition of the City's acceptance of an applicant's land use entitlement or building permit applications, the applicant shall be required to enter Into Fee Program Participation Agreement in a legal form satisfactory to the City Attorney and approved by the City Manager. The Fee Program Participation Agreement shall: 1) Be site and project specific; Resolution No. 24654 Page 8 11) Allow for the deferral of payment of required Developer Fees and Development Impact Fees until, and immediately prior to, the City's issuance of a Certificate of Occupancy for the apartment units subject to the Fee Program Participation Agreement. If construction of apartment units is phased, or consolidated into separate buildings, the deferral of payment of required Developer Fees and Development Impact Fees will be required at the time a final inspection and Certificate of Occupancy is requested by the applicant for each phase of the multi -family apartment project, or each building constructed with apartment units. iii) Provide for reimbursement to the City of all applicable Developer Fees reduced by the City pursuant to the Program if, following twenty-four (24) months from the City's approval of all discretionary land use entitlements associated with the multi -family apartment project, the applicant falls to obtain a building permit from the City to construct the apartment units. Extensions of time associated with land use entitlements granted by the City shall automatically extend the time limit required herein. Iv) Provide for reimbursement to the City of a portion of applicable Developer Fees and Development Impact Fees reduced by the City pursuant to the Program if the applicant fails to construct the total number of apartment units specified in the Fee Program Participation Agreement. v) Provide for reimbursement to the City of all applicable Developer Fees and Development impact Fees reduced by the City pursuant to the Program if any or all of the apartment units are converted to another use, or cease to be made available for lease to the public; vi) Bind applicant's successors in Interest; vii) Provide that the project applicant shall defend, indemnify and hold harmless the City and its officials and employees for any claim or action arising from the Agreement, including, without limitation, any claim or action regarding the applicability of prevailing wages; and vill) Be recorded with the Riverside County Recorder's Office. c) The applicant shall be responsible for any recording fees of the Fee Program Participation Agreement. Resoludon No. 24654 Page 9, 6) Accessory Dwelling Units (ADUs): ADUs shall be eligible for reduced Developer Fees as follows: a) The applicable Developer Fees for an ADU that is constructed for the purpose of providing a rental unit to a third party, at an affordable rent pursuant to an affordability covenant, is hereby established at a rate that is reduced by 100% of the otherwise applicable amount of the subject Developer Fee(s). b) The applicable Developer Fees for an ADU constructed for the purpose of providing a rental unit to a third party, at market rental rates, or for use by a member of the applicant's family, is hereby established at a rate that is reduced by 50% of the otherwise applicable amount of the subject Developer Fee(s). c) As a condition of the City's acceptance of an applicant's land use entitlement or building permit applications, the applicant shall be required to enter into Fee Program Participation Agreement in a legal form satisfactory to the City Attorney and approved by the City Manager. When required, the Fee Program Participation Agreement shall require execution of an affordability covenant. 7) Multi -Family Residential Condominium Protects: Multi -family residential condominium projects not constructing affordable dwelling units shall be eligible for reduced Developer Fees and Development Impact Fees as follows: a) Developer Fees for new multi -family residential condominium projects where 100% of the units will be spld as Inclusionary Units are hereby established at a rate that is reduced by 100% of the otherwise applicable amount of such Developer Fee(s). b) An applicant proposing a new residential condominium project where less than 100% of the units will be sold as Inclusionary Units shall be eligible for a reduction of applicable Developer Fees as follows: 1) 90% -100% Inclusionary Units = reduced by 90% ii) 80% - 89% Inclusionary Units = reduced by 80% ill) 70% - 79% Inclusionary Units = reduced by 70% iv) 60% - 69% Inclusionary Units = reduced by 60% v) 50% - 59% Inclusionary Units = reduced by 50% vi) 40% - 49% Inclusionary Units = reduced by 40% vii) 30% - 39% Inclusionary Units = reduced by 30% viii) 20% - 29% Inclusionary Units = reduced by 20% Ix) 10% -19% Inclusionary Units = reduced by 10% x) 5% - 9% Inclusionary Units = reduced by 5% Resolution No. 24654 Page 10 A) 1 % - 4°/a InclusionaryUnits = reduced by 1 % c) Price limits established for Inclusionary Units: Inclusionary Units must be restricted to and sold at prices at which middle -income households can qualify for the purchase. Qualification shall be based on not more than 35% of median family Income being applied to housing expenses (mortgage principal and Interest taxes, Insurance, and assessments). The determination of an acceptable sales price shall be determined in accordance with the following methodology: 1. Determine Current Median Family Income (a) Obtain most recent Mean Household Income for a family (pMHI") for Riverside -Ontario -San Bernardino found in the Census ACS 1-Year Survey CSurvey") published by the U.S. Census Bureau (or if such survey is no longer published, a comparable source). The Survey can currently be obtained using the following link: https:/Iwww.census.gov/programs-surveys/acs/ (b) Increase the MHI by the change in the California Consumer Price Index ("CCPI") since the date of the Survey using information obtained from the State of Califomia Department of Industrial Relations CCPI calculator for California, Urban Wage Earners and Clerical Workers (or Riverside if available), currently found at: https:/Mww.dir.co.gov/OPRUCAPdceindex.htm. 2. Determine Affordable Safes Price (a) Divide MHI by 12 (b) Multiply result of (a) by 35% (c) Divide result of (b) by 0.005 (0.005 represents mortgage Interest rate of 6%) 3. Determine Maximum Sales Price The maximum home price for any residential unit proposed by the applicpnt cannot exceed 120% of the Affordable Condominium Price determined in Step 2. Exam 2017 Survey = $76,530 CCPI Change between December 2017 and June 2019 = 5.8% MHI = $76,530 x 1.058 = $80,969 Resolution No. 24654 Page I I MHI / 12 = $80,969 / 12 = $6,747 Affordable Mortgage = $6,747 x 35% _ $2,362 Affordable Sales Price = $2,362 / 0.005 = $472,319 Maximum Sales Price = $472,319 x 120% = $566,783 The City Manager Is authorized to modify the method of calculating price limits for Inclusionary Units, as may be required to update the effects of changing interest rates on home affordability. The City Manager shall publish any modification of this policy in an administrative regulation approved by the City Manager and filed with the City Cleric. Further, the City Council, in its sole discretion, may authorize participation in the Program for a multi -family residential condominium project with sales prices that exceed the maximum sales price determined above dependent upon other direct benefits provided to the community by the multi -family residential project, or if the applicant sets aside a specified amount of the condominium units as affordable dwelling units, as required by the City Council. d) As a condition of the City's acceptance of an applicant's land use entitlement applications, the applicant shall be required to enter into Fee Program Participation Agreement in a legal form satisfactory to the City Attorney and approved by the City Manager. The Fee Program Participation Agreement shall: Be site and project specific. In Restrict the sales price for the proposed Inclusionary Units as a condition of receiving the benefit of the Program pursuant to the Fee Program Participation Agreement. ,,to Allow for the deferral of payment of required Developer Fees and Development Impact Fees until, and immediately prior to, the City's issuance of a Certificate of Occupancy for the Inclusionary Units subject to the Fee Program Participation Agreement If construction of Inclusionary Units is phased, or consolidated into separate buildings, the payment of required Developer Fees and Development Impact Fees will be required at the time a final inspection and Certificate of Occupancy Is requested by the applicant for each phase of the multi -family residential condominium project, or each building constructed with Inclusionary Units. iv) Provide for reimbursement to the City of all applicable Developer Fees reduced by the City pursuant to the Program if, following twenty-four (24) months from the City's approval of all discretionary land use entitlements associated with the multi -family residential condominium project, the applicant fails to obtain a building permit from the City to construct the Inclusionary units. Extensions of time associated with land use entitlements granted by the City shall automatically extend the time limit required herein. Resolution No. 24654 Page 12 v) Provide for reimbursement to the City of a portion of applicable Developer Fees reduced by the City pursuant to the Program if the applicant fails to construct the number or percentage of Inclusionary Units specified in the Fee Program Participation Agreement. vi) Provide for the enforcement of the provisions of the Program; vii) Bind applicant's successors In interest; viii) Provide that the project applicant shall defend, indemnify and hold harmless the City and its officials and employees for any claim or action arising from the Agreement, including, without limitation, any claim of action regarding the applicability of prevailing wages; and ix) Be recorded with the Riverside County Recorder's Office. e) The applicant shall be responsible for any recording fees of the Fee Program Participation Agreement. SECTION 3__ Severability. Each component of the fees and all portions of this Resolution are severable. Should any individual component of the fee or other provision of this Resolution be adjudicated to be invalid and unenforceable, the remaining provisions shall be and continue to be fully effective, and the fee shall be fully effective except as to that portion that has been judged to be Invalid. SECTION 4. Effective Date. This Resolution will become effective Immediately upon adoption and remain effective unless superseded by a subsequent resolution. SECTION 5. CEQA. Adoption of this Resolution is not considered a "Project" as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project' means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Adoption of this Resolution establishes a policy to establish reduced City fees, and is considered exempt from CEQA pursuant to Section 15378(b), in that a Project does not include: (5) Organizational or administrative acfivibes of governments that will not result In direct or indirect physical changes in the environment. Resolution No. 24654 Page 13 PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 2nd DAY OF OCTOBER, 2019, DAVID H. READY, ESQ . CITY MANAGER ATTEST: HONY M CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS) I, ANTHONY J. MEJIA, MMC, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 24654 is a full, true and correct copy as was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 2nd day of October, 2019, by the following vote: AYES: Councilmembers Holstege, Middleton, Roberts, Mayor Pro Tern Kors, and Mayor Moon NOES: None ABSENT: None ABSTAIN: None IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this l u t- day of c c 4 t v,F , ?<- , �x 0NT 3% iHON MEJ A C CITY CL K n I ti �I'11��7 �c� � LAND TITLE COMPANY Date: February 14, 2022 City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Attn: City Manager Customer Ref. Number: Vacant Land, Palms Springs, CA Our File No: 09196612-09 601 S. Figueroa St. Suite 4000 Los Angeles, CA. 90017 Telephone: 213-330-3100 Telec o pier: 213-330-3104 4100 Newport Place Drive, Ste.120 Newport Beach, CA 92660 Telephone: (949) 724-3140 Telecopier: (949) 258-5740 Please find enclosed the following items as they relate to the above title order: ® Original Recorded document(s) returned to us by the County Recorder. ❑ Policy (ies) ❑ Other If there is anything that you should require, in addition to the items enclosed, please contact the undersigned immediately. Sincerely, Kathy Religioso TeamReligioso@cltic.com L/VLr ff CVLC-VVaavv 1 4 02/03/2022 04:32 PM Fees: $0.00 Page 1 of 101 RECORDING REQUESTED BY: Recorded in Official Records COMMONWEALTH LAND TITLE County of Riverside Peter Aldana Assessor -County Clerk -Recorder WHEN RECORDED MAIL TO: CITY OF PALM SPRINGS 3200 E. TAHQUITZ CANYON WAY **This document was electronically submitted PALM SPRINGS, CA 92262 to the County of Riverside for recording" ATTN: CITY MANAGER Receipted by: KIYOMI #289 09I96612 REGULATORY AGREEMENT (VISTA SUNRISE II) RECORDING REQUESTED BY: COMMONWEALTH LAND TITLE WHEN RECORDED MAIL TO: CITY OF PALM SPRINGS 3200 E. TAHQUITZ CANYON WAY PALM SPRINGS, CA 92262 ATTN: CITY MANAGER 09196612 REGULATORY AGREEMENT (VISTA SUNRISE II) RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Springs 3200 E Tahquitz Canyon Way [Palm Springs, CA 92262 Attn: City Manager SPACE ABOVE FOR RECORDER'S USE ONLY EXEMPT FROM RECORDING FEE PER GOVERNMENT CODE §27383 REGULATORY AGREEMENT (Vista Sunrise II) by and between THE CITY OF PALM SPRINGS, a California charter city and municipal corporation, and VISTA SUNRISE II, L.P. , a California limited partnership [Dated as of January 13, 2022 for reference purposes only] 55575.181751345897615 REGULATORY AGREEMENT (Vista Sunrise II) This REGULATORY AGREEMENT (Vista Sunrise II) ("Regulatory Agreement') is made and entered into as of January 13, 2022, by and between THE CITY OF PALM SPRINGS, a California charter city and municipal corporation ("City") and Vista Sunrise II, L.P., a California limited partnership ("Owner"). RECITALS A. The City and the Owner entered into that certain Affordable Housing and Loan Agreement (Vista Sunrise II) dated as of January 13, 2022 (the "Affordable Housing Agreement'), which provides that the City will loan certain funds to the Owner subject to the terms and conditions of the Affordable Housing Agreement. Under the Affordable Housing Agreement, the City has agreed to provide financial assistance to the Owner for acquisition of the Property and the construction thereon by the Owner of 61 new residential units, of which 60 units will constitute new permanent supportive housing units (1 unit will be manager -occupied), that assist City in meeting its Very Low Income Regional Housing Needs Allocation (RHNA) goals (the "Project'). Project includes forty-eight (48) studio units, twelve (12) one -bedroom units and 1 two -bedroom Manager Unit. B. The City and the Owner desire that the Project be operated as a multifamily residential community on the Property with the residential units made available to Qualified Households at an Affordable Rent as more specifically defined herein. This Regulatory Agreement establishes terms and conditions which govern the operation of the Property. The Project anticipates the following unit mix for twenty-nine (29) of the sixty (60) new permanent supportive housing units: Studio Units 21 @ 30% AMI 1-Bedroom Units 8 @ 30% AMI C. The terms of the Affordable Housing Agreement require that certain covenants and affordability restrictions remain in full force and effect on the Project for a term commencing on the date of recordation of this Regulatory Agreement and continuing for fifty-five (55) years following the recordation of Certificate of Completion as defined herein ("Term"). D. A maximum of forty-nine percent (49%) of units in the housing complex on the Site shall be rented to income -qualified tenants at Affordable Rents pursuant to this Agreement, as that term is defined herein and in the Affordable Housing Agreement, for Term. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY 55575.3 8175\34757694.1 ACKNOWLEDGED, THE OWNER AND THE CITY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: 1. Definitions of Certain Terms. as used in this Regulatory Agreement, the following words and terms shall have the meaning as provided in the recitals or in this Section 1, unless the specific context of usage of a particular word or term may otherwise require. all initially capitalized terms used and not otherwise defined in the recitals or in this Section shall have the meaning ascribed to such term by the AFFORDABLE HOUSING AGREEMENT. 1.1 30% Household. An individual or household that has a household income equal to or less than thirty percent (30%) of then current AMI for Riverside County adjusted for household size, as published by TCAC annually. 1.2 Affordable Rent. In reference to each Qualifying Unit, the maximum rent, with allowance for utilities, for the applicable household income as published by TCAC annually. 1.3 AMI. The Area Median Family Income or AMI for Riverside County means the most recent applicable county median family income published by HUD. 1.4 Annual Report. The Certification of Continuing Program Compliance attached to this Regulatory Agreement as Attachment No. 3 and incorporated by this reference or comparable report filed annually by the Owner with TCAC, HCD or other governmental agencies. 1.5 Automobile Liability Insurance. Insurance coverage against claims of personal injury (including bodily injury and death) and property damage covering all the Owner owned, leased, hired and non -owned vehicles, with minimum limits for bodily injury and property damage of One Million Dollars ($1,000,000). Such insurance shall be provided by a business or commercial vehicle policy and may be provided through a combination of primary and excess or umbrella policies, all of which shall be subject to pre -approval by the City, which approval shall not be unreasonably withheld, delayed or conditioned. 1.6 Certificate of Completion. The written certification of the City, in substantially the form of Attachment No. 8 attached to the Affordable Housing Agreement, certifying that the Project has been completed in compliance with the terms and conditions of this Regulatory Agreement. y, -1 4-r, 9,xK&iA-t 9 1.7 City Parties. Collectively, the City and its commissions, agents, attorneys, officers, employees, and authorized representatives. 1.8 Income Certification Form. The Certification of Tenant Eligibility attached to this Regulatory Agreement as Attachment No. 2 and incorporated by this reference, or comparable income certification form required by HCD or other governmental agencies. 1.9 Liability Insurance. Commercial general liability insurance against claims for bodily injury, personal injury, death, or property damage occurring upon, in, or about the Property, the Project or adjoining streets or passageways, at least as broad as Insurance Services Office Occurrence Form CG0001, with a minimum liability limit of Two Million Dollars ($2,000,000) for any one occurrence and which may be provided through a combination of primary and excess or umbrella insurance policies. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Project or the general aggregate limit shall be twice the required minimum liability limit for any one occurrence. 1.10 Manager Unit. The one (1) Two Bedroom Unit within the Project reserved exclusively for use by the on -site manager employed by the Owner or the Property Manager, as applicable. 1.11 One Bedroom Unit. Any one of the one bedroom residential accommodations within the Project. 1.12 Permanent Supportive Housing Permanent housing with no limit on the length of stay that is occupied by the target population (Very Low -Income Households) and that is linked to onsite or offsite services that assist the supportive housing residents in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community, pursuant to Health and Safety Code Section 50490. 1.13 Project. The operation of a multi -family rental housing project which shall include not less than 61 new residential units, of which 29 units will constitute new permanent supportive housing units (1 unit will be manager -occupied), which shall be rented to Qualified Households at Affordable Rents, and all related on- and off -site improvements, as more particularly described in the Affordable Housing Agreement. Project includes forty-eight (48) studio units, twelve (12) one -bedroom units and 1 two -bedroom manager unit. 1.14 Property. The Vista Sunrise II, located at 1527 N. Sunrise Way Palm Springs, California, 92262 (APN: 507-100-041-0), more particularly described in the legal description attached hereto as Attachment No. 1. 1.15 Property Insurance. Insurance providing coverage for the Property and all improvements on or to the Property against loss, damage, or destruction by fire and other hazards encompassed under the broadest form of property insurance coverage then customarily used for like properties in the County of Riverside, excluding earthquake coverage, in an amount equal to one hundred percent (100%) of the replacement value (without deduction for depreciation) of all improvements comprising the Project (excluding excavations and foundations) and in any event sufficient to avoid co-insurance and with no co-insurance penalty provision, with "ordinance or law" coverage. To the extent customary for like properties in the County of Riverside at the time, such insurance shall include coverage for explosion of steam and pressure boilers and similar apparatus located on the Property; an "increased cost of construction" endorsement; and an endorsement covering demolition and cost of debris removal, all subject to policy sublimits. Property Insurance shall also include rental or business interruption insurance in an amount, at least, equal to the average annual gross income from the Project for the preceding three (3) calendar years and providing for a 12-month extended period of indemnity. 1.16 Qualified Households. A household that (1) intends to reside in the Qualifying Unit; and (2) whose income does not exceed the maximum income allowable for the subject Qualifying Unit. 3 55575.3 8175\34757694.1 1.17 Qualifyin Units. The twenty-nine (29) of sixty (60) residential units comprised of: Studio Units 21 @ 30% AMI 1-Bedroom Units 8 @ 30% AMI All within the Project restricted to occupancy by Qualified Households as set forth in Section 6. 1.18 Studio Unit. Any one of the one bedroom residential accommodations within the Project. 1.19 Term. The period of time following the date of recordation of this Regulatory Agreement, and ending on the fifty-fifth (55th) anniversary of recordation of the Certificate of Completion. 1.20 Very -low Income Household. An individual or family whose income does not exceed the qualifying limits for very low income families, meaning households earning between 30% and 50% of the Riverside County Area Median Income, pursuant to TCAC. 1.21 Workers Compensation Insurance. Workers compensation insurance complying with the provisions of California law and an employer's liability insurance policy or endorsement to a liability insurance policy, with a minimum liability limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease, covering all employees of the Owner. 2. Reservation of Property for Affordable Housing. The Owner covenants and agrees to reserve and restrict the Property for construction of the Project and, thereafter, reserve and restrict use and residential occupancy of the Qualifying Units by households who, at the time of initial occupancy of a Qualifying Unit and continuously thereafter (subject to the other provisions of this Regulatory Agreement), until the end of the Term, are members of a Qualifying Household. 3. Affordable Multi -Family Residential Rental Property Restrictive Covenant. The Owner covenants to and for the benefit of the City that the Owner shall develop, own, manage and operate, or cause the management and operation of, the Project to provide multi -family residential rental housing in the Qualifying Units only to Qualifying Households at an Affordable Rent. The Owner hereby affirms its covenant set forth in Sections 4 and 5 of the Affordable Housing Agreement to develop the Property with the Project and such covenant is incorporated into this Regulatory Agreement in its entirety by this reference. The Owner will not knowingly permit any Qualifying Unit to be used on a transient basis and will not lease or rent any Qualifying Unit for an initial period of less than twelve (12) months. No Qualifying Unit will, at any time, be leased 4 55575.38175\34757694.1 or rented for use as a hotel, motel, time share, dormitory, fraternity house, sorority house, rooming house, hospital, nursing home, sanitary or rest home. 4. Continuous Operation Covenant. The Owner covenants to and for the benefit of the City to cause the Project to be continuously operated, in accordance with the other provisions of this Regulatory Agreement, throughout the Term. 5. Abandonment. The Owner shall not abandon or surrender the operation of all or any part of the Project during the Term, except due to material casualty or condemnation. 6. Rental of Qualifying Units. The Owner covenants that each of the twenty-nine Qualifying Units shall be occupied or available for occupancy by a Qualifying Household at an Affordable Rent on a continuous basis throughout the Term, at 30% AMI 7. Affordable Rent. The monthly rent charged to a Qualifying Household for the occupancy of a Qualifying Unit shall never exceed an Affordable Rent for such Qualifying Unit set forth in Section 1.18. 7.1 Rent for Qualifying Units may be increased only once per calendar year, based on changes in Area Median Income; provided that the rent for each Qualifying Unit must never exceed an Affordable Rent for the Qualifying Unit as necessary to maintain the tenant income level specified in Section 6. 7.2 Determination of Qualifying Household income shall be made by the Owner at the time of initial application by an individual or family for occupancy of a Qualifying Unit. At the time of initial application, the Owner shall require an applicant to complete the Income Certification Form and certify the accuracy of the information provided on such form. Each calendar year during the Term, the Owner shall require each Qualifying Household occupying a Qualifying Unit to recertify the Qualifying Household's income on the Income Certification Form. The Owner shall make a good faith effort to verify the accuracy of income information provided in any Income Certification Form by an applicant for occupancy of a Qualifying Unit or by a Qualifying Household occupying a Qualifying Unit, by taking one or more of the following steps, as reasonably required or indicated: (1) obtain an income tax return and copy of each W2 Wage and Earnings Statement for the most recently concluded income tax year; (2) conduct a credit reporting agency or similar search; (3) obtain an income verification form from the applicant's or the Qualifying Household's current employer(s); (4) obtain an income verification form from the United States Social Security Administration and/or the California Department of Social Services, if the applicant or the Qualifying Household receives assistance from either of such agencies; or (5) if the applicant or an adult member of a Qualifying Household is unemployed and has no such income tax return, obtain another form of independent verification. For purposes of this Section 7.2, the Owner may conclusively rely upon the evidence of the age of the occupant(s) of a Qualifying Unit as presented in a valid California Driver's License, other form of identification issued by the State of California or the United States Government, which includes a date of birth. All such verification information shall only be obtained by the Owner after obtaining the applicant's or the Qualifying Household's written consent for the release of such information to the Owner. Failure to consent in writing to the release of such income verification information to the Owner may disqualify an applicant for occupancy of a Qualifying Unit or be grounds for termination of Qualifying Household's occupancy of a Qualifying Unit. 7.3 The restricted income level of each Qualifying Unit may change as Qualifying Units become vacant (to the extent necessary to satisfy the "next available unit rule" or other similar requirements imposed by Project financing sources. In all circumstances, though, the rent for each Qualifying Unit shall be an Affordable Rent for the Qualifying Unit as necessary to maintain the restricted income tenant mix required under Section 6. If, upon any recertification, the income of a previously Qualifying Household exceeds one hundred forty percent (140%) of the qualifying income for a Qualifying Household, then, subject to applicable law and the requirements of any financing source, the Owner or Property Manager shall notify such household that its lease for its Qualifying Unit will not be renewed upon the expiration of its lease, unless the household again becomes a Qualifying Household upon recertification prior to the expiration of its lease. In any event, if the income category of a Qualifying Household upon recertification exceeds the qualifying income of the Qualifying Unit, then such Qualifying Household shall be permitted to continue to occupy the Qualifying Unit and the Affordable Rent may be increased to one -twelfth of thirty percent (30%) of the Qualifying Household's actual income, adjusted for household size, upon thirty (30) days written notice to the Qualifying Household, and the Qualifying Unit shall continue to be classified as a Qualifying Unit at the existing income level, but the Owner or Property Manager shall rent the next available Unit to a Qualifying Household with an income level that will maintain the tenant income level mix set forth in Section 6. To the extent the federal low-income housing tax credit requirements conflict with the requirements in this Section 7.3 relative to the continued occupancy by households that do not qualify as Qualifying Households, the federal low-income housing tax credit requirements shall apply in place of the provisions in this Section 7.3. 7.4 The Owner shall maintain on file all Income Certification Forms completed by applicants for occupancy of Qualifying Units and by Qualifying Households that occupied or are occupying Qualifying Units in accordance with Section 6 and shall provide copies of the rent roll and Income Certification Forms to the City for its review and approval within fifteen (15) days following Notice to the Owner. 7.5 The Owner and each Qualifying Household occupying a Qualifying Unit shall permit the City to conduct inspections of the Property, the Project and each Qualifying Unit, from time -to -time, for purposes of verifying compliance with this Regulatory Agreement, upon fifteen (15) days prior written notice to the Owner. 7.6 The Owner shall submit its first Annual Report to the City on the April 30th immediately following the issuance of the final Certificate of Occupancy for the Project by the City. Thereafter, on each April 30 during the Term, the Owner shall submit an Annual Report to the City. The City shall maintain the confidentiality of the information contained in any Annual Report specifically relating to any particular Qualifying Household occupying a Qualifying Unit, to the extent reasonably allowed by Law, as determined by the City's general or special counsel. 7.7 City warrants that it will provide Owner with reasonable notice of any unauthorized, unlawful disclosure of Income Certification Forms or related Tenant records provided to City by Owner in conformance with this Section 7.7. Under such circumstances, City 0 holds Owner harmless from any and all damages resulting from any such unauthorized and illegal disclosure contemplated by this Section 7.7 for Income Certification Forms or related Tenant records while in City's possession. Owner warrants and acknowledges that City is a California public agency subject to State open government laws, including the California Public Records Act (Gov. Code § 6250, et. seq.). 7.8 It is anticipated that certain Qualifying Units (the "Subsidy Units") may receive Project -Based Section 8 or other rental or operating subsidies including a COSR (the "Rental Subsidy") throughout the Term. If any change in federal law occurs, or any action (or inaction) by Congress or any federal or state agency occurs, which results in a material reduction, termination or nonrenewal of the Rental Subsidy through no fault of Borrower, such that the Rental Subsidy shown on the budget for the Project approved by the City is no longer available, Borrower shall, in anticipation of such loss in Rental Subsidy, use good faith efforts for a period of sixty (60) days, to obtain alternative sources of rental subsidies and shall provide the City weekly progress reports on Borrower's efforts to obtain alternative sources of rental subsidies. If at the end of such sixty (60) day period Borrower is unable to secure an alternate source of rental subsidy, notwithstanding the requirements of this Section 7, Borrower may increase the Affordable Rent on one or more of the Qualifying Units that overlap with a Subsidy Unit, to the TCAC 60% Rent, subject to the following requirements: (a) Any such Affordable Rent increase must be pursuant to a transition plan approved by the City showing how the Affordable Rent increase will be phased -in, and which Qualifying Units will be subject to the increase, and, if applicable, be consistent with remedial measures set forth in California Code of Regulations Title 4, Division 17, Chapter 1, Section 10337(a)(3) or successor regulation applicable to California's Federal and State Low Income Housing Tax Credit Program; (b) At the time Borrower requests an increase in the Affordable Rent, Borrower shall provide the City with a copy of the proposed Annual Budget showing the impact of the loss or reduction of the Rental Subsidy; (c) Any subsequent Affordable Rent increases remain subject to Section 7; and (d) The number of Qualifying Units subject to the Affordable Rent increase and the level of rent increase may not be greater than the amount required to ensure that the Project generates sufficient income to cover its operating costs and debt service as shown on the Annual Budget, and as is necessary to maintain the financial stability of the Project. (e) Borrower shall continue to use good faith efforts to obtain alternative sources of rental subsidies and shall provide the City with annual progress reports on efforts to obtain alternative sources of rental subsidies that would allow the rents on the Qualifying Units to be reduced back to the Affordable Rents set out in Section 7 above. Upon receipt of any alternative rental subsidies, Borrower shall reduce the rents on the Qualifying Units back to the Affordable Rents set out in Section 7, to the extent that the alternative rental subsidies provide sufficient income to cover the operating costs and debt service of the Project as shown on the Annual Budget. 7 8. The Owner Covenant Regarding Lease of Qualifying Units. The Owner, for itself, its successors and assigns, covenants and agrees that, if any Qualifying Unit is rented or leased during the Term, the rental or lease of the Qualifying Unit shall be accomplished through a written lease agreement and all of the following restrictions shall apply: 8.1 A Qualifying Household shall be the record tenant and only occupant of the Qualifying Unit. 8.2 The lease for each Qualifying Unit shall be for an initial term of not less than twelve (12) months. 8.3 Each lease for a Qualifying Unit shall contain all of the following provisions: 8.3.1 An agreement authorizing the Owner to immediately terminate the tenancy of a Qualifying Household occupying a Qualifying Unit, where one or more members of that Qualifying Household misrepresented any fact material to the qualification of such household as a Qualifying Household; 8.3.2 An agreement providing that each Qualifying Household occupying a Qualifying Unit shall be subject to annual certification or recertification of income as a condition to continued occupancy of the Qualifying Unit; 8.3.3 An agreement providing that each Qualifying Household occupying a Qualifying Unit may be subject to rental increases in accordance with this Regulatory Agreement; 8.3.4 Each tenant of a Qualifying Unit shall be required to execute a "crime free addendum" as part of the rental agreement or lease; 8.3.5 An agreement providing that the Owner will not discriminate on the basis of race, color, creed, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, genetic information or receipt of public assistance or housing assistance in connection with rental of a Qualifying Unit, or in connection with the employment or application for employment of persons for operation and management of the Project, and all contracts, applications and leases entered into for such purposes shall contain similar non-discrimination clauses to such effect; and 8.3.6 . [Intentionally Deleted] 8.4 The Owner shall not terminate the tenancy or refuse to renew the lease or rental agreement of a Qualifying Household except for: (i) serious or repeated violations of the terms and conditions of the lease; (ii) because the previously Qualifying Household is no longer a Qualifying Household (subject to the provisions of Section 7); (iii) for violation of applicable Federal, State, or local law; or (iv) for other good cause. The Owner shall follow all applicable laws, rules and regulations in connection with termination of the tenancy of a Qualifying Household or a refusal to renew the lease or rental agreement of a Qualifying Household. 8 8.5 Tenant Selection Policies and Criteria. The Owner shall adopt written tenant selection policies and criteria that: 8.5.1 are consistent with the purpose of providing affordable rental housing for Qualifying Households at an Affordable Rent; 8.5.2 are reasonably related to tenant eligibility and ability to perform the obligations of the lease for a Qualifying Unit; 8.5.3 subject to applicable fair housing laws, give reasonable preference and consideration to the housing needs of households residing in the City of Palm Springs, including those that are involuntarily displaced by natural disaster, or by activities of the City, including but not limited to priority placement on a written waiting list of available units; 8.5.4 subject to applicable fair housing laws, give reasonable preference and consideration to the housing needs of households residing in, employed in, or offered employment in the City of Palm Springs, including but not limited to priority placement on a written waiting list of available units; 8.5.5 provide for the selection of tenants from a written waiting list in the chronological order of their application subject to Sections 8.5.3 and 8.5.4, insofar as is practicable; 8.5.6 give prompt written notice to any rejected applicant of the grounds for rejection; 8.5.7 provide for all of the Qualifying Units to be available for occupancy on a continuous basis to Qualifying Households at an Affordable Rent; and 8.5.8 do not give preference to any particular class or group of persons in leasing or renting the Qualifying Units, except as provided in Sections 8.5.3 and 8.5.4 and to the extent that a tenant must be a Qualifying Household. 9. Non -Discrimination. All units in the Project shall be available at an Affordable Rent for occupancy on a continuous basis to Qualified Households. Except as provided in Sections 8.5.3 and 8.5.4, the Owner shall not give preference to any particular class or group of persons in renting the units in the Project. There shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, or genetic information in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of any Unit. Neither the Owner nor any person claiming under or through the Owner, shall establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of any Unit or in connection with the employment of persons for the operation and management of any Unit, the Project or the Property. All deeds, leases or contracts made or entered into by the Owner as to the units, the Project or the Property or any portion thereof, shall contain covenants prohibiting discrimination, as prescribed by this Regulatory Agreement. The Owner shall include a statement in all advertisements, notices and signs for the availability of units in the Project for rent to the effect that the Owner is an Equal Housing Opportunity Provider. 10. Equal Housing Notice. Provide for a statement in all advertisements, notices and signs for the availability of Qualifying Units for lease or rent to the effect that the Owner is an equal housing opportunity provider, and include an equal housing opportunity logotype in all notices, signs and advertisements in print media for the Qualifying Units. 11. Development and Management of the Project. 11.1 Management of Project, Property Manager. Owner shall manage or cause the Project, and all appurtenances thereto that are a part of the Project, to be managed in a prudent and business -like manner, consistent with good property management standards for other comparable first quality, well -managed affordable rental housing projects in the County of Riverside. Owner may contract with a property management company or property manager, to operate and maintain the Project; provided, however, the selection and hiring of the Property Manager (and each successor or assignee), including any Affiliate, is and shall be subject to prior written approval of the City Manager (or designee) in his or her discretion. The Property Manager shall manage the Project in accordance with the definitions of Affordable Rent, the tenant selection requirements, and the definitions relating to income contained herein and in the Affordable Housing Agreement. The Property Manager shall be responsible for management of the Project, including, without limitation, the selection of Qualified Households, certification and recertification of household size, income, gender and the age of the head of household and relation of head of household to the household, of all Qualified Households, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. The City shall have bear no responsibility for the management or operation of the Project or the Property. Owner shall conduct due diligence and background evaluation of any potential third -party property manager or property management company to evaluate experience, references, credit worthiness, and related qualifications as a property manager. Any proposed property manager shall have significant and relevant prior experience with affordable housing projects and properties comparable to the Project and the references and credit record of such property manager/company shall be investigated (or caused to be investigated) by Owner prior to submitting the name and qualifications of such proposed property manager to the City Manager for review and approval. A complete and true copy of the results of such background evaluation shall be provided to the City Manager. Approval of a Property Manager by the City Manager shall not be unreasonably delayed but shall be in his/her sole reasonable discretion, and the City Manager shall use good faith efforts to respond as promptly as practicable in order to facilitate effective and ongoing property management of the Project on either a temporary or permanent basis. The replacement of a Property Manager by Owner and/or the selection by Owner of any new or different Property Manager during the Term shall also be subject to the foregoing requirements, except in the case of temporary management by a lender or limited partner of Owner, which shall be immediately submitted to City for approval and will not last longer than 30 days. 11.2 Property Management Plan. Within the time set forth in the Affordable Housing Agreement, Owner shall prepare and submit to the City Manager for review and approval, a management plan for the Project which must include a detailed plan and strategy for long term marketing, operation, maintenance, repair and security of the Project, inclusive of social services 10 for the residents of the units, on -site parking policies, and the method of selection of tenants, rules and regulations for tenants, and other rental policies for the Project ("Property Management Plan"). The City Manager shall review and shall act reasonably to approve or disapprove the Property Management Plan within a reasonable time. The approval of the Property Management Plan is a necessary condition precedent to approval by City of Project building plans. Subsequent to approval of the Property Management Plan by the City Manager the ongoing management and operation of the Project shall be in compliance with the approved Property Management Plan. During the Term, Borrower and its Property Manager may from time to time submit to the City Manager proposed amendments to the Property Management Plan, the implementation of which shall also be subject to the prior written approval of the City Manager. 11.3 Gross Mismanagement. During the Term, and in the event of "Gross Mismanagement" (as defined below) of the Project, the City Manager and/or the City shall have and retain the authority to direct and require any condition(s), acts, or inactions of Gross Mismanagement to cease and/or be corrected immediately, and further to direct and require the immediate removal of the Property Manager and replacement with a new qualified and approved Property Manager, if such condition(s) is/are not ceased and/or corrected after expiration of thirty (30) days from the date of written notice from the City Manager. If Owner or Property Manager has commenced to cure such Gross Mismanagement condition(s) on or before the 20th day from the date of written notice (with evidence of such submitted to the City Manager), but has failed to complete such cure by the 30th day (or such longer period if the cure cannot reasonably be accomplished in thirty (30) days as reasonably determined by the non -defaulting party), then Owner and its Property Manager shall have an additional ten (10) days to complete the cure of Gross Mismanagement condition(s). In no event shall any condition of Gross Mismanagement continue uncured for a period exceeding forty-five (45) days from the date of the initial written notice of such condition(s), except that the conditions described in subdivisions 11.3.4 and 11.3.5 below may exist for up to, but no longer than, seventy-five (75) days without triggering the City's right to remove the Property Manager as described in the immediately following sentence as long as Owner is diligently working to cure such conditions of Gross Mismanagement. If such condition(s) do persist beyond such period, the City Manager shall have the sole and absolute right to immediately and without further notice to Owner (or to Property Manager or any other person/entity) to remove the Property Manager and replace the Property Manager with a new property manager of the City Manager's selection at the sole cost and expense of Owner. If Owner takes steps to select a new Property Manager that selection is subject to the requirements set forth above for selection of a Property Manager. For purposes of this Regulatory Agreement, the term "Gross Mismanagement" shall mean management of the Project in a manner which knowlingly violates the terms and/or intention of this Agreement to operate a first quality affordable housing complex, and shall include, but is not limited to, any one or more of the following: 11.3.1 Leasing of a unit to tenants who exceed or households that do not qualify under the Qualifying Unit thresholds (except if such action was based on fraudulent documents submitted by such tenant in the course of application for occupancy of a unit, which could not be discovered by the Property Manager initially through the exercise of ordinary and customary due diligence); 11.3.2 Allowing tenants to exceed the prescribed occupancy levels without taking immediate action to stop such overcrowding consistent with applicable laws; 11.3.3 Under -funding required reserve accounts; 11.3.4 Failing to timely maintain the Project in accordance with the Property Management Plan; 11.3.5 Failing to submit timely and/or complete annual reports to the City as required herein; 11.3.6 Fraud or embezzlement of Project funds, including without limitation funds in the reserve accounts; 11.3.7 Failing to fully cooperate with the Palm Springs Police Department or other local law enforcement agency(ies) with jurisdiction over the Project, in maintaining a crime -free environment within the Project; 11.3.8 Failing to fully cooperate with the Palm Springs Fire Department or other local public safety agency(ies) with jurisdiction over the Project, in maintaining a safe and accessible environment within the Project; and 11.3.9 Failing to fully cooperate with local health and safety enforcement agency(ies) with jurisdiction over the Project, in maintaining a decent, safe and sanitary environment within the Project. Notwithstanding the requirements of the Property Manager to correct any condition of Gross Mismanagement as described above, Owner is obligated and shall use its best efforts to correct any defects in property management or operations at the earliest feasible time and, if necessary, to replace the Property Manager as provided above. Owner shall include advisement and provisions of the foregoing requirements and requirements of this Agreement within any contract between Owner and its Property Manager for the Project. 11.4 Code Enforcement. Owner acknowledges and agrees that the City, and their employees and authorized agents, shall have the right to conduct code compliance and/or code enforcement inspections of the Project and the units, both exterior and interior, at reasonable times and upon reasonable notice (not less than forty-eight (48) hours' prior notice, except in an emergency) to Owner and/or an individual tenant. If such notice is provided by City representative(s) to Owner, then Owner (or its Property Manager) shall immediately and directly advise any affected tenant of such upcoming inspection and cause access to the area(s) and/or unit(s) at the Project to be made available and open for inspection. Owner shall include express advisement of such inspection rights within the lease/rental agreements for each unit in the Project in order for each and every tenant and tenant household to be aware of this inspection right. 11.5 Onsite Services. Owner shall provide a variety of social services at the Project. Owner shall use its best efforts to create a comprehensive social service program that is targeted to the needs of the residents of the Project which, in addition to including all of the services mandated by the HHAP Agreement, may include the following services: after school programs of 12 an ongoing nature for school age children, and the availability of a bona fide services coordinator or social worker to the tenants. Owner shall ensure that all personnel providing or coordinating all social services shall be adequately trained and counseled. Within thirty (30) days after Owner has initially leased fifty percent (50%) of the units, Owner shall provide City with a list and summary of the social services Owner will provide at the Project. Owner shall promptly notify the City, in writing, whenever Owner anticipates making any changes to Owner's social services program, which notification shall set forth, with specificity, the anticipated changes. Borrower shall also provide to the City, an annual an Economic Mobility Report ("Report"). This Report will summarize program activities designed to encourage self-sufficiency and promotion to market -rate housing. The Report will include information regarding the programs offered, the attendance, and number of residents that successfully transitioned to market -rate housing. 11.6 Insurance. 11.6.1 Required Insurance. Owner shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement, duplicate originals or appropriate endorsements of commercial general liability insurance policies in the amount of at least Two Million Dollars ($2,000,000) combined single limits, naming City and its officers, employees, and agents as additional insureds or co -insureds. Owner shall also furnish or cause to be furnished to City evidence of builder's risk coverage written on a completed value basis in an amount equal to the full replacement cost of the improvements with coverage available on the so-called non -reporting "all risk" form of policy, including coverage against collapse, fire, and water damage, with such insurance to be in such amounts and form and written by such companies as shall be approved by City. Such policy shall name City as a loss payee. The foregoing insurance policies: 11.6.1.1 shall be primary insurance and not contributory with any other insurance which City may have; 11.6.1.2 shall contain no special limitations on the scope of protection afforded to City and its officers, employees, agents, and representatives; 11.6.1.3 shall be "date of occurrence" and not "claims made" insurance; 11.6.1.4 shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability; 11.6.1.5 shall provide that the policy will not be cancelled by the insurer or Borrower unless there is a minimum of thirty (30) days prior written notice to City; 11.6.1.6 shall be written by a good and solvent insurer admitted in California and registered with the California State Department of Insurance; and 11.6.1.7 shall be endorsed to state that any failure to comply with the reporting provisions of the policies shall not affect coverage provided to City. 13 Owner shall also furnish or cause to be furnished to City evidence reasonably satisfactory to City that Owner's Contractor carries workers' compensation insurance as required by law. Owner agrees that the provisions of this Section 11.6 shall not be construed as limiting in any way the extent to which Owner may be held responsible for the payment of damages to any persons or property resulting from Owner's activities or the activities of any person or persons for which Owner is otherwise responsible. No later than five (5) days after the Effective Date, Owner shall provide evidence of the above -required insurance (such as Certificates of Insurance of appropriate insurance binders) and obtain approval thereof from City, which approval shall not be unreasonably withheld or delayed and may be waived in City's sole and absolute discretion. Evidence of builder's risk coverage may be provided after Owner receives all necessary construction financing. 11.6.2 Deliveries to the City. The Owner shall deliver to the City evidence of all insurance policies required by this Regulatory Agreement. No later than three (3) days before any insurance required by this Regulatory Agreement expires, is cancelled or its liability limits are reduced or exhausted, the Owner shall deliver to the City evidence of the Owner's maintenance of all insurance this Regulatory Agreement requires. Each insurance policy required by this Regulatory Agreement shall be endorsed to state that coverage shall not be cancelled, suspended, voided, reduced in coverage or in limits, except after thirty (30) calendar days' advance written notice of such action has been given to the City by certified mail, return receipt requested; provided that if a thirty (30) days' notice of cancellation endorsement is not available the Owner shall notify the City of this unavailability in writing and shall forward any notice of cancellation to the City within two (2) business days from date of receipt by the Owner; and further provided, however, that only ten (10) days' advance written notice shall be required for any such action arising from non-payment of the premium for the insurance. Phrases such as "endeavor to" and "but failure to mail such Notice shall impose no obligation or liability of any kind upon the company" shall not be included, to the extent commercially available, in the cancellation wording of any certificates or policies of insurance applicable to the City Parties pursuant to this Regulatory Agreement. 11.6.3 Waiver of Certain Claims. The Owner shall cause each insurance carrier providing insurance coverage under this Regulatory Agreement to endorse their applicable policy(ies) with a Waiver of Subrogation with respect to the City Parties, if not already in the policy. To the extent that the Owner obtains insurance with a Waiver of Subrogation, the parties release each other, and their respective authorized representatives, from any claims for damage to any person or property to the extent such claims are paid by such insurance policies obtained pursuant to and in satisfaction of the provisions of this Regulatory Agreement. 11.6.4 No Claims Made Coverage. None of the insurance coverage required under this Regulatory Agreement may be written on a claims -made basis. 11.6.5 Fully Paid and Non -Assessable. All insurance obtained and maintained by the Owner pursuant to this Section 11.6 shall be fully paid for and non -assessable. However, such insurance policies may be subject to insurer audits. 11.6.6 City Option to Obtain Coverage. During the continuance of an Event of Default arising from the failure of the Owner to carry any insurance required by this Regulatory 14 Agreement, the City may, at its option, purchase any such required insurance coverage and the City shall be entitled to immediate payment from the Owner of any premiums and associated reasonable costs paid by the City for such insurance coverage. Any amount becoming due and payable to the City under this Section 11.6.6 that is not paid within fifteen (15) calendar days after written demand from the City for payment of such amount, within an explanation of the amounts demanded, will bear interest from the date of the demand at the rate of eight percent (8%) per annum or the maximum interest rate allowed by applicable law, whichever is less. Any election by the City to purchase or not to purchase insurance otherwise required by the terms of this Regulatory Agreement to be carried by the Owner shall not relieve the Owner of its obligation to obtain and maintain any insurance coverage required by this Regulatory Agreement. 11.6.7 Deductibles and Self -Insured Retentions. Any deductibles or self -insured retentions under insurance policies required by this Regulatory Agreement shall be declared to and approved by the City. The Owner shall pay all such deductibles or self -insured retentions regarding the City Parties or, alternatively, the insurer under each insurance policy required by this Section 11.6 shall eliminate such deductibles or self -insured retentions with respect to the City Parties. 11.6.8 No Separate Insurance. The Owner shall not carry separate or additional insurance concurrent in form or contributing in the event of loss with that required under this Regulatory Agreement, unless the City is made an additional insured thereon, as required by this Regulatory Agreement. 11.6.9 Insurance Independent of Indemnification. The Owner's Liability Insurance policy shall contain contractual liability coverage for the Owner's indemnity obligations under this Regulatory Agreement. The Owner's obtaining or failure to obtain such contractual liability coverage shall not relieve the Owner from nor satisfy any indemnity obligation of the Owner under this Regulatory Agreement. The insurance requirements of this Regulatory Agreement are independent of the Owner indemnification and other obligations under this Regulatory Agreement and shall not be construed or interpreted in any way to satisfy, restrict, limit, or modify the Owner's indemnification or other obligations or to limit the Owner's liability under this Regulatory Agreement, whether within, outside, or in excess of such coverage, and regardless of solvency or insolvency of the insurer that issues the coverage; nor shall the provision of such insurance preclude the City from taking such other actions as are available to it under any other provision of this Regulatory Agreement or otherwise at law or in equity. 11.6.10 Nature of Insurance. The policies of insurance required by this Regulatory Agreement shall be issued by carriers that: (a) are listed in the current `Best's Key Rating Guide—Property/Casualty—United States & Canada" publication (or its equivalent, if such publication ceases to be published) with a minimum financial strength rating of "A-" and a minimum financial size category of "XI" (exception may be made for the California Compensation Insurance Fund when not specifically rated); and (b) are authorized to do business in California. The Owner may provide any insurance under a "blanket" or "umbrella" insurance policy, provided that: (i) such policy or a certificate of such policy shall specify the amount(s) of the total insurance allocated to the Property and the Project, which amount(s) shall equal or exceed the amount(s) required by this Regulatory Agreement; and (ii) such policy otherwise complies with this Regulatory Agreement. 15 12. Maintenance of the Project. The Owner, for itself, its successors and assigns, hereby covenants and agrees that the exterior areas of the Project which are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and in a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the Term, there is an occurrence of an adverse condition on any area of the Project which is subject to public view in contravention of the general maintenance standard described above ("Maintenance Deficiency"), then the City shall notify the Owner in writing of the Maintenance Deficiency and give the Owner thirty (30) calendar days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. "Maintenance Deficiency" includes, without limitation, the following inadequate or non -conforming property maintenance conditions and/or breaches of residential property use restrictions: (i) failure to properly maintain the windows, structural elements, and painted exterior surface areas of the units in a clean and presentable manner; (ii) failure to keep the common areas of the Project free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the Property; (iii) failure to regularly maintain, replace and renew the landscaping in a reasonable condition free of weed and debris; and (iv) the use of garage areas on the Project for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the Project. 12.1 In the event the Owner fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the City may thereafter conduct a public hearing following transmittal of written notice thereof to the Owner ten (10) calendar days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Owner has failed to comply with the provision of this Section 12. If, upon the conclusion of a public hearing, the City makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, then the City shall have the right to enter the Project (exterior areas of the Project which are subject to public view only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity that the City may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the City for the abatement of a Maintenance Deficiency as authorized by this Section 12.1 shall become a lien on the Project. If the amount of the lien is not paid within thirty (30) calendar days after written demand for payment by the City to the Owner, the City shall have the right to enforce the lien in the manner as provided in Section 12.3. 12.2 Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the Project shall be removed by the Owner from any exterior surface of a structure or improvement on the Project by either painting over the evidence of such vandalism with a paint which has been color -matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the Project (exterior areas only) and such graffiti is visible from an adjacent or contiguous public right-of-way and thereafter such graffiti is not removed within seventy-two (72) hours following the time of its application, or the Owner's actual knowledge of its existence, whichever occurs later; then in such event and without notice to the Owner, the City shall have the right to enter the Project and remove the graffiti. Notwithstanding any provision of the Regulatory Agreement to the contrary, any sum expended by the City for the removal of graffiti from the Project as authorized by this Section 12.2 shall become a lien on the Project. If the amount of the lien is not 16 paid within thirty (30) calendar days after written demand for payment by the City to the Owner, the City shall have the right to enforce its lien in the manner as provided in Section 12.3. 12.3 The parties hereto further mutually understand and agree that the rights conferred upon the City under this Section 12 expressly include the power to establish and enforce a lien or other encumbrance against the Property in the manner provided under California Civil Code Sections 2924, 2924b and 2924c, as such sections may be amended or superseded, in the amount as reasonably necessary to restore the Project to the maintenance standards required under this Section 12, including attorneys' fees and costs of the City associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the City in connection with such action. In any legal proceeding for enforcing such a lien against the Project, the prevailing party shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 12 shall be a covenant running with the land for the Term and shall be enforceable by the City in its discretion, cumulative with any other rights or powers granted to the City under applicable law. Nothing in the foregoing provisions of this Section 12 shall be deemed to preclude the Owner from making any alterations, additions, or other changes to any structure or improvement or landscaping on the Project, provided that such changes comply with the zoning and development regulations of the City and other applicable law. 12.4 Capital Replacement Reserve Account. The Owner shall establish an account for the payment of repair and replacement of capital items ("Capital Replacement Reserve Account") in an initial amount as required by the Institutional Lenders for the Project or the investor limited partner of the Owner. Each year thereafter, the Owner shall deposit into the Capital Reserve Replacement Account additional amounts as required by the Institutional Lenders for the Project or the investor limited partner of the Owner, but not less than Two Hundred Fifty Dollars ($250) per Unit per year. 12.4.1 Capital Repairs and Replacements. Capital repairs and replacements shall include, but not be limited to, the following: wet and dry utilities; roof repair and replacement as necessary; repair and replacement of boilers and the major operating components thereof; stucco repair and replacement; exterior painting; replacement of carpeting and vinyl or other hard surface flooring; replacement of drapes; replacement of dishwashers, garbage disposals and other interior appliances; repair and replacement of heating, ventilating and air conditioning systems, equipment and components; and installation of solar panels. All of the foregoing and other similar expenditures on the Project shall be considered to be qualifying capital repair and replacement expenses. Interior painting and servicing, repair or replacement of interior hardware shall not be considered to be a capital repair, but shall be ordinary operating expenses for the Project. The Owner shall withdraw funds from the Capital Replacement Reserve Account to pay such capital repair and replacement expenses as the Owner may deem necessary for the purposes of meeting the maintenance and replacement obligations described herein. 12.4.2 Insured Depository. The Capital Replacement Reserve Account shall be maintained in a depository insured by an agency of the federal government. 12.4.3 Documentation. Annually, or more frequently at the City's, the Owner shall document the level of capital repairs and replacements for the preceding period. The Owner shall maintain and shall provide as requested documentation showing the quantity and price of items 17 purchased, price of materials and the cost of contracted labor or other services incurred in connection with such capital repair and replacement, and such other items as the City may reasonably request. 12.4.4 Withdrawals from Reserve Account. On an annual basis, the Owner shall notify the City of the anticipated cash requirements which will need to be withdrawn from the Capital Replacement Reserve Account. Amounts so budgeted and approved by the City may be withdrawn by the Owner from the indicated Capital Replacement Reserve Account without further the City approval. Other withdrawals for unbudgeted, unanticipated or emergency Project expenditures may be withdrawn by the Owner without prior the City approval, but the Owner shall notify the City in writing within ten (10) calendar days after withdrawal. All amounts so withdrawn by the Owner shall be expended on the Project and in accordance with this Regulatory Agreement. Withdrawals in excess of Twenty -Five Thousand Dollars ($25,000) in any one calendar month shall be pre -approved by the City in its reasonable discretion, subject to the rights of any Senior Lenders or the investor limited partner of the Owner. 12.4.5 Interest Earned on Funds in the Capital Replacement Reserve Account. Any interest or other earnings from sums deposited into the Capital Replacement Reserve Account shall be retained in and added to the balance in said account. 12.4.6 Capital Needs Assessment. If requested in writing by the City, the Owner shall deliver to the City, for the City's reasonable review and approval, a capital needs assessment ("CNA") no more often than every ten (10) years after the date of the Certificate of Completion for the Project. The CNA shall include an analysis of the Owner's actual expenditures for capital needs compared to the most recently approved CNA, the Owner's original operating budget and its then -current operating budget. Each CNA shall include a ten (10) year capital needs assessment or analysis of replacement reserve requirements prepared by a qualified third party in accordance with reasonable and customary standards for similar residential rental projects. 12.4.7 Displacement of Residents and Relocation. The Owner shall make best efforts to conduct capital repairs and replacements and ordinary repair and maintenance (collectively, "Repairs") in good faith and in a manner that does not result in the displacement of any of the residents of the Units. If any of the Owner's actions to conduct Repairs result in displacement of any of the Units' residents, the Owner shall notify the City in writing, prior to conducting such Repairs, of the identities of the residents to be displaced, the Units they will be displaced from, and the estimated length of time such residents shall be displaced. If the displacement of the residents triggers relocation obligations, the Owner shall be responsible, at its sole cost and expense, for any and all such relocation obligations and related expenses. The Owner shall comply with all applicable federal, state and local laws, rules and regulations regarding such relocation obligations and related expenses, including any relocation requirements set forth by the City, including as set forth in the Affordable Housing Agreement. The Owner shall defend, indemnify and hold harmless the City Parties from and against all liability for any relocation obligations and related expenses attributable to any Repairs. 13. Covenants to Run With the Land. The Owner and the City hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a plan for the promotion and preservation of affordable housing within the territorial jurisdiction(s) of the 18 City and that each shall be deemed covenants running with the land and shall pass to and be binding upon the Property and each successor -in -interest of the Owner in the Property for the Tenn. The Owner hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this Regulatory Agreement. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument. 14. Burden and Benefit. The City and the Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Owner's legal interest in the Property is affected by the affordable dwelling use and occupancy covenants hereunder. The City and the Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable housing goals and objectives of the City and in order to make the Property available for acquisition by the Owner. 15. Defaults. 15.1 Events of Default. The occurrence of any of the following is a default and shall constitute a material breach of this Regulatory Agreement and, if not corrected, cured or remedied in the time period set forth in Section 15.2, shall constitute an "Event of Default" hereunder: 15.1.1 failure of the Owner or any person under its direction or control to comply with or perform when due any material term, obligation, covenant or condition contained in this Regulatory Agreement; 15.1.2 any warranty, representation or statement made or furnished to the City by the Owner under this Regulatory Agreement that is false or misleading in any material respect at the time made or furnished; 15.1.3 any assignment for the benefit of creditors, any type of creditor workout or the commencement of any proceeding under any bankruptcy or insolvency laws by or against the Owner; or 15.1.4 an Event of Default pursuant to the Affordable Housing Agreement. 15.2 Notice of Default. The City shall give written notice of default to the Owner, in accordance with Section 22, stating that such notice is a "Notice of Default", specifying the default complained of by the City and requiring the default to be remedied within thirty (30) calendar days of the date of the Notice of Default. A copy of any such notice sent to Owner shall be delivered to the investor limited partner of Owner. Except as required to protect against further material damage, the City may not institute legal proceedings against the Owner until thirty (30) calendar days after providing the Notice of Default. Failure or delay in giving a Notice of Default shall not constitute a waiver of any default, nor shall it change the time of occurrence of the default. If the default specified in the Notice of Default is such that it is not reasonably capable of being 19 cured within thirty (30) calendar days, and if the Owner initiates corrective action within said thirty (30) calendar day period and diligently works to effect a cure as soon as possible, then the Owner may have such additional time as authorized in writing by the City as reasonably necessary to complete the cure of the default prior to exercise of any other remedy for the occurrence of an Event of Default. Such authorization for additional time to cure shall not be unreasonably withheld, conditioned or delayed. Owner's limited partner shall have the right to cure any default on behalf of Owner and any cure tendered by Owner's limited partner shall be accepted or rejected on the same basis as if tendered by Owner. If the Owner fails to take corrective action relating to a default within thirty (30) calendar days following the date of Notice of Default (or to complete the cure within the additional time as may be authorized by the City or as set forth above), an Event of Default shall be deemed to have occurred. 15.3 Inaction Not a Waiver of Default. Any failure or delays by the City in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies. Delays by the City in asserting any of its rights and remedies shall not deprive the City of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 16. Remedies. Upon the occurrence of an Event of Default which continues beyond applicable notice and cure periods, the City shall, in addition to the remedial provisions of Section 12 as related to a Maintenance Deficiency at the Property, be entitled to seek any appropriate remedy by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Owner to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the City; or (ii) by other action at law or in equity as necessary or convenient to enforce the obligations, covenants and Agreements of the Owner to the City. 16.1 Rights and Remedies are Cumulative. The rights and remedies of the City as set forth in this Section 16 are cumulative and the exercise by the City of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the Owner. 16.2 Enforcement by Third Parties. No third party shall have any right or power to enforce any provision of this Regulatory Agreement on behalf of the City or to compel the City to enforce any provision of this Regulatory Agreement against the Owner or the Project. 17. Governing Law. This Regulatory Agreement shall be governed by the laws of the State of California and applicable federal laws, without regard to its conflicts of laws principles. 18. Amendment. This Regulatory Agreement may be amended after its recordation only by a written instrument executed by the Owner and the City. 19. Attorneys' Fees. In the event that a party to this Regulatory Agreement brings an action to enforce any condition or covenant, representation or warranty in this Regulatory Agreement or otherwise arising out of this Regulatory Agreement, the prevailing party(ies) in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the 20 court in which a judgment is entered, as well as the costs of such suit for the purposes of this Section 19, the words "reasonable attorneys' fees," in the case of the City, shall include the salaries, costs and overhead of the City Attorney as well as any other legal counsel hired by the City in such action, as allocated on an hourly basis. 20. Severability. If any provision of this Regulatory Agreement shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this Regulatory Agreement which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. 21. Time is of the Essence. For each provision of this Regulatory Agreement which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. 22. Notices. Demands and Communications Between the Parties. Any and all notices submitted by any party to another party pursuant to or as required by this Regulatory Agreement shall be dispatched by personally delivery; delivery through the United States mail, by registered or certified mail, postage prepaid; by means of prepaid overnight delivery service; or by email. Notices shall be deemed given upon receipt in the case of personal delivery, two days after deposit in the mail, or the next business day in the case of email or overnight delivery. Such written notices, demands, and communications shall be sent in the same manner to such other addresses as any Party may from time to time designate in writing. Rejection, other refusal to accept or the inability to deliver any notice because of a changed address of which no notice was given or other action by a person or entity to whom notice is sent, shall be deemed receipt of the notice. The following are the authorized addresses for the submission of notices to the parties, as of the date of this Regulatory Agreement: 21 To the Owner: Vista Sunrise II, L.P. c/o Coachella Valley Housing Corporation 45701 Monroe Street, Suite G Indio, CA 92201 Attn: Executive Director c/o DAP Health 1695 N. Sunrise Way Palm Springs, CA 92262 Attn: Chief Executive Officer Gubb & Barshay LLP 595 141h Street, Suite 450 Oakland, CA 94612 Attn: Nicole Kline, Esq. With copies to: Wells Fargo Affordable Housing Community Development Corporation 550 S. Tryon Street 23rd Floor, D1086-239 Charlotte, NC 28202-4200 Attention: Director of Asset Management Bina.M.Galal@wellsfar og com Michael.Loosea,wellsfarszo.com and Craig A. de Ridder, Esq. Pillsbury Winthrop Shaw Pittman LLP 1200 17`h Street, NW Washington, D.C. 20036 crai g.deridder(&pil lsburylaw.com 22 To the City: City of Palm Springs 3200 E Tahquitz Canyon Way Palm Springs, CA 92262 Attention: Justin Clifton, City Manager Facsimile: aldm)322 4332 Email: Justin.Clifton@palmspringsca.gov With copies to: Best Best & Krieger LLP 18101 Von Karman Avenue Irvine, CA 92612 Attention: Elizabeth Hull, Esq. Facsimile: (949) 260-0972 Email: elizabeth.hull(a,bbklaw.com 23. Recording. The parties hereto shall cause this Regulatory Agreement to be recorded in the official records of the County of Riverside. 24. No Third Party Beneficiary. No claim as a third -party beneficiary under this Regulatory Agreement by any person, corporation or any other entity, shall be made or be valid against the City or the Owner. 25. Prohibition Aizainst Transfer. 25.1 Except as expressly provided in the Affordable Housing Agreement, the Owner shall not, without prior written approval of the City, which may not be unreasonably withheld, delayed or conditioned: (i) assign or attempt to assign this Regulatory Agreement or any right herein; or (ii) make any total or partial sale, transfer, conveyance, lease, leaseback, or assignment of the whole or any part of the Property or the improvements thereon, with the exception of leases of the residential units as permitted by this Regulatory Agreement, or permit to be placed on any of the Property any unauthorized mortgage, trust deed, deed of trust, encumbrance or lien. 25.2 In the absence of specific written agreement or approval by the City, no unauthorized sale, transfer, conveyance, lease, leaseback or assignment of the Property shall be deemed to relieve the Owner or any other party from any obligations under this Regulatory Agreement. 26. City Approvals and Actions. The City Manager shall have the authority to make approvals, issue interpretations, waive provisions, grant extensions of time, approve amendments to this Regulatory Agreement and execute documents on behalf of the City (to the extent not provided otherwise in this Regulatory Agreement), including, without limitation, subordinations and any documents necessary to implement any changes in the number or affordability of the Qualifying Units, so long as such actions do not reduce the length of affordability of the Qualifying Units or add to the costs incurred or to be incurred by the City as specified herein. The City Manager reserves the right, in his or her sole and absolute discretion, to submit any requested modification, interpretation, amendment or waiver to the City Council if the City Manager 23 determines or believes that such action could increase the risk, liability or costs to the City, or reduce the length of affordability of the Project. IN WITNESS WHEREOF, the Owner and the City have caused this Regulatory Agreement to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. [Signatures on following pages] 24 IN WITNESS WHEREOF, City and Borrower have executed this Agreement as of the date set forth above. "CITY" CITY OF PALM SPRINGS, a California charter city and municipal corporation By: Y t, a&, City t4knager APPROVED AS TO FORM: -24- 55575.18175\34589761.5 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of �t� I On JANUA" 15Wl-' before me, MOMMOMWE AA. LPWIS , RbfN�A1 NA 41V , Date Here Insert Name and Title of the Ofker personally appeared ^CAA FJBO� k Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence o be the person(s) whose name re subscribed to the within instrument and acknowl ged to me that I l�she/they executed the same in ' her/their authorized capacity{, and that by is her/their signaturet%,pn the instrument the person or the entity upon behalf of which the person(s) a ed, executed the instrument. *My MONIQUEM.LOMELI Notary Public • California Riverside County > Commission # 22b7330 Comm. Expires Nov 17, 2022 Place Notary Seal and/or Stamp Above Description of Attached D Title or Type of Document: Document Date: I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature w v Y " Signa ure of Notary Public OPTIONAL this information can deter alteration of the document or reattachment of this form to an unintended document. Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: ❑ Corporate Officer — Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian of Conservator ❑ Other: Signer is Representing: 020117 National Notary Association Number of Pages: Signer's Name: ❑ Corporate Officer — ❑ Partner — ❑ Limited ❑ Individual ❑ Trustee ❑ Other: Signer is Representing: ❑ G ral ❑ Attorn n Fact ❑ Guardian o ens( OWNER SIGNATURE PAGE TO REGULATORY AGREEMENT (Vista Sunrise II) Vista Sunrise II, L.P., a California limited partnership By: CVHC Sunrise Vista LLC, a California limited liability company, its general partner By: Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, its sole/member/manager By: GI�L ,I a a�;� Pedro S.G. Rodri u Interim Executi Director/CFO By: Sunrise DAP LLC, a California limited liability company, its administrative general partner By: Desert AIDS Project, a alifornia nonprofit public benefit co ration, its sole/member/manager Signed on GovntoTatt By: 26 David B ' kman, Chief Aecutive Officer OWNER SIGNATURE PAGE TO REGULATORY AGREEMENT (Vista Sunrise II) OWNER: S9ganed An Counterpart 26 Vista Sunrise II, L.P., a California limited partnership By: CVHC Sunrise Vista LLC, a California limited liability company, its general partner By: Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, its sole/member/manager By: Pedro S . Rodriguez, Interi Executive Director/CFO By: Sunrise DAP LLC, a California limited liability company, its administrative general partner By: Desert AIDS Project, a California nonprofit public benefit corporation, its sole/ ber/manager By: David Brinkman, Chief Executive Officer ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Riverside ) On December 23, 2021 before me, Mary Ann Ybarra, (insert name and title of the officer) personally appeared Pedro S.G. Rodriguez who proved to me on the basis of satisfactory evidence to be the person(X) whose name($) is/are subscribed to the within instrument and acknowledged to me that he/sheLthey executed the same in his/he Atteir authorized capacity(ies), and that by his/her/t#eir signature(s) on the instrument the person($), or the entity upon behalf of which the person(%) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. MARY ANN YBARRA 65 WITNESS my hand and official seal. (�911Y NOTAWPieuc �7 , (� RIYE ea Cowin COMM. EV. OCT. 23, 20Y3r' Signature 611- (Seal) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Riverside On s�. 23before me, Mary Ann Ybarra� Y� Wbi j� �xce�.�.2�rs. (insert name and title of the officer) personally appeared David Brinkman who proved to me on the basis of satisfactory evidence to be the person(g� whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/sueexecuted the same in his/herltheir authorized capacity(ies), and that by his/hef-ttteif signature(t) on the instrument the person(v), or the entity upon behalf of which the person(,8) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature jo? r"` AIAR�� Y ANN YBA."v, � rrnn Coma. # 2306765 'n v! NOTARY PWUC•CAUFORNIA N RnrMDE COWM rve„oo' Mr Cow. EXP. OcT, 23, 2023'' a (Seal) Order No: 09196612-917-CG8-KRE ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCELI: PARCEL A OF LOT LINE ADJUSTMENT NO. LLA 21-03-1537, AS SHOWN ON THE LOT LINE ADJUSTMENT GRANT DEED RECORDED JANUARY 18, 2022, AS INSTRUMENT NO. 2022-0025331, OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: IN THE CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING PARCEL 2 OF LOT LINE ADJUSTMENT NO. 01-01, RECORDED APRIL 26, 2001 AS INSTRUMENT NO. 2001-168548 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, LYING WITHIN THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 11, TOWNSHIP 4 SOUTH, RANGE 4 EAST, SAN BERNARDINO MERIDIAN, TOGETHER WITH A PORTION OF PARCEL A OF LOT LINE ADJUSTMENT NO. 05-13, RECORDED SEPTEMBER 13, 2005 AS INSTRUMENT NO. 2005-0756184 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID RIVERSIDE COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWESTERLY CORNER OF PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01; THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO.01-01 SOUTH 00021'49" WEST 13.46 FEET; THENCE LEAVING SAID WESTERLY LINE NORTH 89°46'13" WEST 21.75 FEET; THENCE SOUTH 00013'47" WEST 154.54 FEET TO THE SOUTHERLY LINE OF PARCEL A OF SAID LOT LINE ADJUSTMENT NO.05-13; THENCE ALONG SAID SOUTHERLY LINE SOUTH 89046'13" EAST 21.39 FEET TO THE SOUTHWESTERLY CORNER OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO 01-01; THENCE CONTINUING ALONG SAID SOUTHERLY LINE SOUTH 89046'13" EAST 295.00 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01, SAID POINT BEING ON THE WESTERLY RIGHT-OF-WAY LINE OF SUNRISE WAY (50.00 FOOT HALF WIDTH); THENCE ALONG SAID WESTERLY RIGHT-OF-WAY LINE NORTH 00021'49" EAST 168.00 FEET TO THE NORTHEAST CORNER OF SAID PARCEL 2; THENCE ALONG THE NORTHERLY LINE OF SAID PARCEL 2 OF SAID LOT LINE ADJUSTMENT NO. 01-01 NORTH 89046'13" WEST 295.00 FEET TO THE POINT OF BEGINNING. EXCEPT ALL MINERALS, OILS, GASES, AND OTHER HYDROCARBONS, BY WHATSOEVER NAME KNOWN, THAT MAY BE WITHIN OR UNDER LAND, WITHOUT, HOWEVER, THE RIGHT TO DRILL, DIG OR MINE THROUGH THE SURFACE THEREOF, AS CONTAINED IN DEED FROM THE STATE OF CALIFORNIA, RECORDED APRIL 28, 1964 AS INSTRUMENT NO. 52476 AND MARCH 6, 1975 AS INSTRUMENT NO. 1975-026565, BOTH OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 2: NON-EXCLUSIVE EASEMENTS FOR VEHICULAR AND PEDESTRIAN INGRESS, EGRESS, SHARED DRIVEWAY, PARKING, MAINTENANCE, DRAINAGE, STORMWATER, UTILITIES, INCLUDING INSTALLING, REPAIRING, MAINTAINING AND REPLACING SOLAR EQUIPMENT AND RELATED ELECTRICAL TRANSMISSION LINES, AND USE OF PARK IMPROVEMENTS, AS GRANTED IN THE JOINT USE AND MAINTENANCE AGREEMENT RECORDED CONCURRENTLY HEREWITH. SUBJECT TO THE TERMS AND CONDITIONS CONTAINED THEREIN. Order No: 09196612-917-CG8-KRE APN: 507-100-041-0, 507-100-044-0 (portions) ATTACHMENT NO. 2 TO REGULATORY AGREEMENT (Vista Sunrise II Affordable Housing Project) Certification of Tenant Eligibility NOTE TO PROPERTY OWNER: This form is designed to assist you in computing Annual Income. Re: Vista Sunrise II Project, Palm Springs, California I/We, the undersigned, state that I/we have read and answered fully, frankly and personally each of the following questions for all persons who are to occupy the unit being applied for in the property listed above. Listed below are the names of all persons who intend to reside in the unit: 1. 2. 3. 4. 5. Names of Relationship Social Members of to Head of Security Place of Household Household Age Number Employment 6. Head of Household (check one): Mother: Father: Other: (specify relationship — i.e. legal guardian, sister, brother, etc.) ATTACHMENT NO.2 -1- Income Computation 7. The total anticipated income, calculated in accordance with the provisions of this Section 7, of all persons over the age of 18 years listed above for the 12-month period beginning the date that I/we plan to move into a unit is $ Included in the total anticipated income listed above are: (a) all wages and salaries, overtime pay, commissions, fees, tips and bonuses and other compensation for personal services, before payroll deductions; (b) the net income from the operation of a business or profession or from the rental of real or personal property (without deducting expenditures for business expansion or amortization of capital indebtedness or any allowance for depreciation of capital assets); (c) interest and dividends (including income from assets excluded below); (d) the full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of period receipts, including any lump sum payment for the delayed start of a periodic payment; (e) payments in lieu of earnings, such as unemployment and disability compensation, workmen's compensation and severance pay; (i) the maximum amount of public assistance available to the above persons other than the amount of any assistance specifically designated for shelter and utilities; (g) periodic and determinable allowances, such as alimony and child support payments and regular contributions and gifts received from persons not residing in the dwelling; (h) all regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is the head of the household or spouse; and (i) any earned income tax credit to the extent that it exceeds income tax liability. Excluded from such anticipated income are: (a) casual, sporadic or irregular gifts; (b) amounts which are specifically for or in reimbursement of medical expenses; (c) lump sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and workmen's compensation), capital gains and settlement for personal or property losses; (d) amounts of educational scholarship paid directly to the student of the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, book and equipment. Any amounts of such scholarships, or payments to veterans not used for the above purposes, are to be included in income; ATTACHMENT NO.2 -2- (e) pecial pay to a household member who is away from home and exposed to hostile fire; (f) relocation payments under Title 11 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970; (g) foster child care payments; (h) the value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1977; (i) payments to volunteers under the Domestic Volunteer Service Act of 1973; payments received under the Alaska Native Claims Settlement Act. 0) income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes; (k) payments or allowances made under the Department of Health and Human Services' Low -Income Home Energy Assistance Program; (1) payments received from the Job Training Partnership Act; (m) the first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the Court of Claims. 8. Do the persons whose income or contributions are included in item 6 above: (a) have savings, stocks, bonds, equity in real property or other form of capital investment (excluding the values of necessary items of personal property such as furniture and automobiles and interests in Indian trust land)? _ Yes No; or (b) have they disposed of any assets (other than at a foreclosure or bankruptcy sale) during the last two years at less than fair market value? _Yes No (c) If the answer to (a) or (b) above is yes, does the combined total value of all such assets owned or disposed of by all such persons total more than $5,000? _Yes No (d) If the answer to (c) is yes, state: (i) the amount of income expected to be derived from such assets in the 12- month period beginning on the date of initial occupancy in the unit that you propose to rent: $ ; and (ii) the amount of such income, if any, that was included in item 6 above: ATTACHMENT NO.2 -3- 9. (a) Are all of the individuals who propose to reside in the unit full-time students*? Yes No *A full-time student is an individual enrolled as a full-time student during each of five calendar months during the calendar year in which occupancy of the unit begins at an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance and is not an individual pursuing a full-time course of institutional or farm training under the supervision of an accredited agent of such an educational organization or of a state or political subdivision thereof. (b) If the answer to 8(a) is yes, is at least one of the proposed occupants of the unit a husband and wife entitled to file a joint federal income tax return? Yes No 10. Neither myself nor any other occupant of the unit I/we propose to rent is the Owner of the property in which the unit is located (hereinafter the "Owner"), has any family relationship to the Owner or owns, directly or indirectly, any interest in the Ownership. For purposes of this section, indirect the Ownership by an individual shall mean the Ownership by a family member, the Ownership by a corporation, partnership, estate or trust in proportion to the Ownership or beneficial interest in such corporation, partnership, estate or trust held by the individual or a family member, and the Ownership, direct or indirect, by a partner of the individual. 11. This certificate is made with the knowledge that it will be relied upon by the Owner to determine maximum income for eligibility to occupy the unit; and I/we declare that all information set forth herein is true, correct and complete and, based upon information I/we deem reliable and that the statement of total anticipated income contained in Section 7 is reasonable and based upon such investigation as the undersigned deemed necessary. 12. I/we will assist the Owner in obtaining any information or documents required to verify the statements made herein, including either an income verification from my/our present employer(s) or copies of federal tax returns for the immediately preceding calendar year. 13. I/we acknowledge that I/we have been advised that the making of any misrepresentation or misstatement in this declaration will constitute a material breach of my/our agreement with the Owner to lease the units and will entitle the Owner to prevent or terminate my/our occupancy of the unit by institution of an action for eviction or other appropriate proceedings. ATTACHMENT NO. 2 -4- 14. Housing Issuer Statistical Information (Optional --will be used for reporting purposes only): Marital Status: Race (Head of Household) White Asian Hispanic African -American Native American Other Physical Disability: Yes No I/we declare under penalty of perjury that the foregoing is true and correct. Executed this day of in the County of Riverside, California. Applicant Applicant [Signature of all persons over the age of 18 years listed in number 2 above required] ATTACHMENT NO.2 -5- FOR COMPLETION BY PROPERTY THE OWNER ONLY: 1. Calculation of eligible income: (a) Enter amount entered for entire household in 6 above: $ (b) (1) If answer to 7(c) above is yes, enter the total amount entered in 7(d)(1), subtract from that figure the amount entered in 7(d)(2) and enter the remaining balance (2) Multiply the amount entered in 7(c) times the current passbook savings rate to determine what the total annual earnings on the amount in 7(c) would be if invested in passbook savings ($�, subtract from that figure the amount entered in 7(d)(2) and enter the remaining balance; (3) Enter at right the greater of the amount calculated under (1) or (2) above: (c) TOTAL ELIGIBLE INCOME (Line 1(a) plus line I(b)(3): $ 2. The amount entered in I(c): Qualifies the applicant(s) as a Qualified Household. Does not qualify the applicant(s) as Qualified Household. 3. Apartment unit assigned: Bedroom Size: Rent: $ 4. This apartment unit [was/was not] last occupied for a period of 31 consecutive days by persons whose aggregate anticipated annual income, as certified in the above manner upon their initial occupancy of the apartment unit, qualified them as a Qualified Household. 5. Method used to verify applicant(s) income: Employer income verification. Copies of tax returns. Other Manager The undersigned employee has applied for a rental unit located in a project financed in part by the City of Palm Springs for persons of very low income. Every income statement of a prospective ATTACHMENT NO. 2 -6- tenant must be stringently verified. Please indicate below the employee's current annual income from wages, overtime, bonuses, commissions or any other form of compensation received on a regular basis. Annual wages Overtime Bonuses Commissions Total current income I hereby certify that the statements above are true and complete to the best of my knowledge. Signature Date Title I hereby grant you permission to disclose my income to in order that they may determine my income eligibility for rental of an apartment at f I. Signature Date Please send to: I hereby attach copies of my individual federal and state income tax returns for the immediately preceding calendar year and certify that the information shown in such income tax returns is true and complete to the best of my knowledge. Signature Date ATTACHMENT NO.2 -7- ATTACHMENT NO.3 TO REGULATORY AGREEMENT (Vista Sunrise II) Certificate of Continuing Program Compliance For Annual Reporting Period Ending The undersigned, , as the authorized representative of the California Valley Housing Coalition ("Owner"), has read and is thoroughly familiar with the provisions of the various documents associated with the financial assistance provided by the City of Palm Springs ("City"), as established in numerous documents including the Regulatory Agreement, dated as of , 2020, between the Owner and the City. As of the date of this Certificate, the following percentage of residential units in the Project are (i) occupied by Qualified Households (as such term is defined in the Regulatory Agreement) or (ii) are currently vacant and being held available for such occupancy and have been so held continuously since the date a Qualified Household vacated such unit, as indicated: Number of Units occupied by Qualified Households: Number of Vacant Units: Number of Qualified Households who commenced Occupancy during the preceding reporting period: Attached is a separate sheet ("Occupancy Summary") listing, among other items, the appropriate information for each residential unit in the Project, the occupants of each unit and the rent paid for each unit. The information contained thereon is true and accurate and reasonable and is based on information submitted to the Owner and is certified under penalty of perjury by each tenant. [Signatures on following page] 55575.18175\34589761.5 The undersigned hereby certifies that (1) a review of the activities of the Owner during such reporting period and of the Owner's performance under the Regulatory Agreement has been made under the supervision of the undersigned; and (2) to the best of the knowledge of the undersigned, based on the review described in clause (1) hereof, the Owner is not in default under any of the terms and provisions of the above documents. Dated: I ZlZ 1 �z�t OWNER "Borrower" Vista Sunrise II, L.P., a California limited partnership By: Qj�" —� 1. CVHC Sunrise Vista LLC, a California limited liability company, its general partner By: 4-4-� J. Q0 0--Q� Coachella Valley Housing alit, , a California nonprofit p lic benefit corporation, its sole/member/manager By: . Pedro S.G. Rodriguez Interim Executive D' ctor/CFO IN 211M Sunrise DAP LLC, a California limited liability company, its administrative general partner Desert AIDS Project, a California nonprofit public benefit corporation, its sole/member/manager Lb -a David Brinkman, Chief Executive Officer -2- 55575.18175\34589761.5 The undersigned hereby certifies that (1) a review of the activities of the Owner during such reporting period and of the Owner's performance under the Regulatory Agreement has been made under the supervision of the undersigned; and (2) to the best of the knowledge of the undersigned, based on the review described in clause (1) hereof, the Owner is not in default under any of the terms and provisions of the above documents. Dated: OWNER "Borrower" Vista Sunrise II, L.P., a California limited partnership By: CVHC Sunrise Vista LLC, a California limited liability company, its general partner In Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, its sole/member/manager Pedro S.G. Rodriguez, Interim Executive Director/CFO By: S se DAP LLC, a California limited liability company, its administrative general partner By: De rt AIDS Project, a California nonprofit public benefit corporation, its sole/member/mana er By: avid Brm , Chief Executive Officer -2- 55575.18175\34589761.5 OCCUPANCY SUMMARY Total Number of Units in the Project: Total Units occupied by Qualified Households: Total Units available for rent to Qualified Households: ATTACHED IS THE FOLLOWING INFORMATION: A. Resident and rental information on each occupied apartment in the complex. B. Certification of Tenant Eligibility for all Qualified Households who have moved into , Palm Springs, California, since the filing of the last Occupancy Summary. The same are true and correct to the best of the undersigned's knowledge and belief. Dated: OWNER "Borrower" Vista Sunrise II, L.P., a California limited partnership By: CVHC Sunrise Vista LLC, a California limited liability company, its general partner By: Coachella Valley Housing Coalition, a California nonprofit public benefit corMiW4 1:7�� r By ,ector/CFO By: Sunrise DAP LLC, a California limited liability company, its administrative general partner By: Desert AIDS Project, a California nonprofit public benefit corporation, its sole/member/manager David Brinkman, Chief Executive Officer -3- 55575.18175\34589761.5 OCCUPANCY SUMMARY Total Number of Units in the Project: Total Units occupied by Qualified Households: Total Units available for rent to Qualified Households: ATTACHED IS THE FOLLOWING INFORMATION: A. Resident and rental information on each occupied apartment in the complex. B. Certification of Tenant Eligibility for all Qualified Households who have moved into , Palm Springs, California, since the filing of the last Occupancy Summary. The same are true and correct to the best of the undersigned's knowledge and belief. Dated: "Borrower" Vista Sunrise II, L.P., a California limited partnership OWNER By: CVHC Sunrise Vista LLC, a California limited liability company, its general partner By: Coachella Valley Housing Coalition, a California nonprofit public benefit corporation, its sole/member/manager Pedro S.G. Rodriguez, Interim Executive Director/CFO By: Sunrise DAP LLC, a California limited liability company, its administrative general partner By: Desert AIDS Project, a California nonprofit public benefit corporation, its sole/member/manager By: Da , Chief Executive Officer -3- 55575.18175\34589761.5 -4- 55575.18175\34589761.5 ATTACHMENT NO.4 TO REGULATORY AGREEMENT (Vista Sunrise II) Homeless Housing, Assistance and Prevention Standard Agreement [Need to be inserted] 55575.18175\34589761.5 w4 STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES STANDARD AGREEMENT I AGREEMENT NUMBER PURCHASING AUTHORITY NUMBER Of AppPicable) STD 213 (Rev.03/2019) 20-H HAP-00064 1. This Agreement is entered into between the Contracting Agency and the Contractor named below: CONTRACTING AGENCY NAME Business, Consumer Services, and Housing Agency CONTRACTOR NAME City of Palm Springs 2. The term of this Agreement Is: START DATE May 1, 2020 THROUGH END DATE April 30, 2025 3. The maximum amount of this Agreement is: Ten Million Dollars ($10,000,000.00) 4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made a part of the Agreement. Exhibits Title Pages Exhibit A Scope of Work 1-6 Exhibit B Budget Detail and Payment Provisions 7-11 Exhibit C Homeless Coordinating and Financing Council Terms and Conditions 12-21 Exhibit D Special Terms and Conditions 22 _ Exhibit E" General Terms and Conditions 23 + These docurmnis can be viewed at hMQ //ww►mc a gpv/Qtf/aarr± tmpt IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED By THE PARTIES HERETO CONTRACTOR CONTRACTOR NAME (ifother than an individual, state whether a corporation, partnership, etc.) City of Palm Springs 3200 E. Tahquita Canyon Way r nu., cv wc�r¢ yr rcruvn »urvmu David H. Ready Paqe 1 of 2 STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES STANDARD AGREEMENT AGREEMENT NUMBER PURCHASING AUTHORITY NUMBER (if AnAcable) STD 213 Otev.03=19) 20-HHAP-00064 STATE of CAUFORNIA -' CONTRACTING AGENCY NAME Business, Consumer Services, and Housing Agency CONTRACTING AGENCY ADDRESS CITY STATE ZIP 915 Capitol Mall, Suite 350A Sacramento CA 95814 PRINTED NAME OF PERSON SIGNING TmE Lourdes Castro Ramirez CONTRACTING AGENCY OfNZFD SIGNATURE DATE SIGNED S-// � Paqe 2 of 2 City of Palm Springs 20-HHAP-00064 Page 1 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK 1. Authorltj The State of California has established the Homeless Housing, Assistance, and Prevention Program (°HHAP" or "Program" or ugrantj pursuant to Chapter 6 (commencing with Section 50216) of Part 1 of Division 31 of the Health and Safety Code. (Added by Stats.2019, c. 159 (A.B. 101), § 10, eff. July 31, 2019.) The Program is administered by the California Homeless Coordinating and Financing Council ("Council") in the Business, Consumer Services and Housing Agency (`Agency"). HHAP provides one-time flexible block grant funds to continuums of care, large cities (population of 300,000+) and counties as defined in the December 6, 2019 HHAP Notice of Funding Availability ("NOFA") to support regional coordination and expand or develop local capacity to address immediate homelessness challenges informed by a best -practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. This Standard Agreement along with all its exhibits ("Agreement") is entered into by the Agency and a continuum of care, a city, or a county ("Grantee") under the authority of, and in furtherance of the purpose of, the Program. In signing this Agreement and thereby accepting this award of funds, the Grantee agrees to comply with the terms and conditions of the Agreement, the NOFA under which the Grantee applied, the representations contained in the Grantee's application, and the requirements of the authority cited above. 2. Purpose The general purpose of the Program is to provide one-time block grant funding to support regional coordination, and to expand or develop local capacity to address immediate homelessness challenges. Activities will be informed by a best -practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. In accordance with the authority cited above, an application was created and submitted by the Grantee for HHAP funds to be allocated for eligible uses as stated in Health and Safety Code section 50219, subdivision (c)(1) — (8). Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 2 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK 3. Definitions The following HHAP program terms are defined in accordance with Health and Safety Code section 50216, subdivisions (a) — (q): (a) "Agency" means the Business, Consumer Services and Housing Agency. (b) "Applicant' means a continuum of care, city, or county. (c) "City" means a city or city and county that is legally incorporated to provide local government services to its population. A city can be organized either under the general laws of this state or under a charter adopted by the local voters. (d) "Continuum of care" means the same as defined by the United States Department of Housing and Urban Development at Section 578.3 of Title 24 of the Code of Federal Regulations. (e) "Coordinated Entry System" means a centralized or coordinated process developed pursuant to Section 578.7 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019, designed to coordinate homelessness program participant intake, assessment, and provision of referrals. In order to satisfy this subdivision, a centralized or coordinated assessment system shall cover the geographic area, be easily accessed by individuals and families seeking housing or services, be well advertised, and include a comprehensive and standardized assessment tool. (f) "Council' means the Homeless Coordinating and Financing Council created pursuant to Section 8257 of the Welfare and Institutions Code. (g) "Emergency shelter" has the same meaning as defined in subdivision (e) of Section 50801. (h) "Homeless" has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019. (i) "Homeless Management Information System" means the information system designated by a continuum of care to comply with federal reporting requirements as defined in Section 578.3 of Title 24 of the Code of Federal Regulations. The term "Homeless Management Information System" also includes the use of a comparable Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 3 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK database by a victim services provider or legal services provider that is permitted by the federal government under Part 576 of Title 24 of the Code of Federal Regulations. G) "Homeless point -in -time count" means the 2019 homeless point -in -time count pursuant to Section 578.3 of Title 24 of the Code of Federal Regulations. A jurisdiction may elect to instead use their 2017 point -in -time count if they can demonstrate that a significant methodology change occurred between the 2017 and 2019 point -in -time counts that was based on an attempt to more closely align the count with HUD best practices and undertaken in consultation with HUD representatives. A jurisdiction shall submit documentation of this to the agency by the date by which HUD's certification of the 2019 homeless point -in -time count is finalized. The agency shall review and approve or deny a request described in the previous sentence along with a jurisdiction's application for homeless funding. (k) "Homeless youth" means an unaccompanied youth between 12 and 24 years of age, inclusive, who is experiencing homelessness, as defined in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)). "Homeless youth" includes unaccompanied youth who are pregnant or parenting. (1) "Housing First" has the same meaning as in Section 8255 of the Welfare and Institutions Code, including all of the core components listed therein. (m) "Jurisdiction" means a city, city that is also a county, county, or continuum of care, as defined in this section. (m) "Jurisdiction" means a city, city that is also a county, county, or continuum of care, as defined in this section. (n) "Navigation center" means a Housing First, low -barrier, service -enriched shelter focused on moving homeless individuals and families into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. (o) "Program" means the Homeless Housing, Assistance, and Prevention program established pursuant to this chapter. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 4 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK (p) "Program allocation" means the portion of program funds available to expand or develop local capacity to address immediate homelessness challenges, in the amount of six hundred fifty million dollars ($650,000,000). (q) "Recipient" means a jurisdiction that receives funds from the agency for the purposes of the program. Additional definitions for the purposes of the HHAP program: "Obligate" means that the Grantee has placed orders, awarded contracts, received services, or entered into similar transactions that require payment using HHAP funding. Grantees, and the subrecipients who receive awards from those Grantees, must obligate the funds by the statutory deadlines set forth in this Exhibit A. "Expended" means all HHAP funds obligated under contract or subcontract have been fully paid and receipted, and no invoices remain outstanding. In the case of an award made through subcontracting, subcontractors are required to obligate the funds by the same statutory deadlines. "Grantee" means the continuum of care, city, or county that has entered into contract with the Business, Consumer Services and Housing Agency and is receiving HHAP funding. 4. Scope of Work The Scope of Work ("Work") for this Agreement shall include uses that are consistent with Health and Safety Code section 50219, subdivision (c)(1) — (8), and any other applicable laws. Eligible uses include the following: A. Rental assistance and rapid rehousing. B. Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves. C. Incentives to landlords, including, but not limited to, security deposits and holding fees. D. Outreach and coordination, which may include access to job programs, to assist vulnerable populations in accessing permanent housing and to promote housing stability in supportive housing. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-H HAP-00064 Page 5 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK E. Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations including families and homeless youth. F. Delivery of permanent housing and innovative housing solutions such as hotel and motel conversions. G. Prevention and shelter diversion to permanent housing. H. New navigation centers and emergency shelters based on demonstrated need. Demonstrated need for purposes of this paragraph shall be based on the following: i. The number of available shelter beds in the city, county, or region served by a continuum of care. ii. Shelter vacancy rate in the summer and winter months. iii. Percentage of exits from emergency shelters to permanent housing solutions. iv. A plan to connect residents to permanent housing. 5. Agency Contract Coordinator The Agency's Contract Coordinator for this Agreement is the Council's HHAP Grant Manager or the Grant Manager's designee. Unless otherwise instructed, any notice, report, or other communication requiring an original Grantee signature for this Agreement shall be mailed to the Agency Contract Coordinator. If there are opportunities to send information electronically, Grantee will be notified via email by the HHAP Grant Manager or the Grant Manager's designee. The Representatives during the term of this Agreement will be: PROGRAM GRANTEE ENTITY: Business Consumer Services and Housing Agency City of Palm Springs ECTIONIUNIT: Homeless Coordinating and Financing Council (HCFC) ADDRESS: 915 Capitol Mall Suite 350-A Sacramento, CA 95814 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 CONTRACT MANAGER Amber Ostrander Jay Virata 20-HHAP-00054 PHONE NUMBER: 916-651-7995 760-323-8228 EMAIL. ADDRESS: Amber. Ostrander@bcsh.ca.gov jay.virata@palmspringsca.gov Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 6 of 23 Homeless Housing, Assistance and Prevention Standard Agreement . EXHIBIT A SCOPE OF WORK All requests to update the Grantee information listed within this Agreement shall be emailed to the Homeless Coordinating and Financing Council's general email box at hcfc &-bcsh.ca.gov. The Council reserves the right to change their representative and/or contact information at any time with notice to the Grantee. G. Effective Date, Term of A.clreemen# and Deadlines A. This Agreement is effective upon approval by the Agency (indicated by the signature provided by Agency in the lower left section of page one, Standard Agreement, STD. 213), when signed by all parties. B. Contractual Obligation: • Grantees that are counties must contractually obligate 100 percent of their full program allocations on or before May 31, 2023. • Grantees that are cities or continuums of care must contractually obligate no less than 50 percent of program allocations on or before May 31, 2023. Cities or continuums of care that contractually obligate less than 50 percent or program allocations after May 31, 2023 are subject to an alternative disbursement plan as required under (Health & Safety Code, § 50220, subdivision (a)(4)(B). C. Full Expenditure of HHAP Grant Funds Ail HHAP grant funds (100 percent) must be expended by June 30, 2025. Any funds not expended by that date shall revert to the General Fund. (Health & Safety Code, § 50220, subdivision (e).) 7. Special Conditions Agency reserves the right to add any special conditions to this Agreement it deems necessary to ensure that the goals of the Program are achieved. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 7 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT B /I BUDGET DETAIL AND PAYMENT PROVISIONS 1. Budoet Detail & Chan The Grantee agrees that HHAP funds shall be expended on uses that support regional coordination and expand or develop local capacity to address immediate homelessness challenges. Such activities must be informed by a best -practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. The Grantee shall expend HHAP funds on eligible activities as detailed in the annual budget submitted with the Grantee's approved application. The Grantee shall submit an updated budget with the annual report that revises and reports all actual and projected expenditures of HHAP funds. Changes may be made to the timing (e.g., fiscal year) of eligible use expenditures without prior approval by the Agency so long as the total expenditures (actual and projected) for each eligible use category remain the same as described in the budget approved with the Grantee's application. Any decrease or increase to the total expenditures for any eligible use category must otherwise be approved by the Councirs HHAP Grant Manager or his/her designee, in writing, before the Grantee may expend HHAP funds according to an alternative budget. The HHAP Grant Manager will respond to Grantee with approval or denial of request. Failure to obtain written approval from the Grant Manager or his/her designee as required by this section may be considered a breach of this Agreement. 2. General Conditions Prior to Disbursement All Grantees must submit the following forms prior to HHAP funds being released: A. Request for Funds Form (RFF) B. STD 213 Standard Agreement - 2 original copies of the signed STD 213 form and initialed Exhibits A through E. C. Data Use Agreement (continuums of care and counties that accepted redirected funding from a continuum of care- see Exhibit D for relevant Special Terms and Conditions) Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 8 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISIONS 3. Disbursement of Funds HHAP funds will be disbursed to the Grantee upon receipt, review and approval of the completed Standard Agreement and RFF by Agency, the Department of General Services (DGS) and the State Controller's Office (SCO). Once Agency receives, reviews, and signs off on the completed documents, the documents will be sent to DGS for review. Once DGS review is completed, documents will be forwarded to SCO for final review and fund disbursement. The RFF must include the proposed eligible uses and the amount of funds proposed for expenditure under each eligible use. HHAP funds will be disbursed in a single allocation via mailed check once the RFF has been received by the SCO. Checks will be mailed to the address and contact name listed on the RFF. 4. Expenditure of Funds Specific requirements and deadlines for contractually obligating and expending awarded funds are set forth in the Homeless Housing, Assistance, and Prevention Program statutes. Health and Safety Code sections 50218, 50219, and 50220 mandate the following: A. Up to 5 percent of the H HAP allocation maybe expended for the following uses that are intended to meet federal requirements for housing funding: (1) Strategic homelessness plan, as defined in section 578.7(c) of Title 24 of the Code of Federal Regulations; and/or (2) Infrastructure development to support coordinated entry systems and Homeless Management Information Systems. B. No more than 7 percent of the HHAP allocation may be used for administrative costs incurred by the Grantee. C. At least 8 percent of the HHAP allocation shall be used to establish or expand services for homeless youth populations. D. Grantees that are cities or continuums of care shall contractually obligate no less than 50 percent of HHAP funds by May 31, 2023. If less than 50 percent is obligated after May 31, 2023, continuums of care and cities shall not expend any remaining portion of the 50 percent of program allocations required to have been obligated unless and until both of the following occur: Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 9 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISIONS (1) On or before June 30, 2023, the Grantee submits an alternative disbursement plan to Agency that includes an explanation for the delay and a plan to fully expend these funds by December 31, 2023. (2) Agency approves the alternative disbursement plan. If the funds identified in the approved alternative disbursement plan are not fully expended by December 31, 2023, the funds shall be returned to Agency. E. Grantees that are counties shall contractually obligate the full allocation (100 percent) awarded to them by May 31, 2023. Any funds that are - not contractually obligated by this date shall be reverted to the continuum of care that serves the county. Specific to Los Angeles County, funds that are not contractually obligated by this date shall be divided proportionately using the HHAP funding allocation formula among the four CoC's that serve Los Angeles County: City of Glendale CoC, City of Pasadena CoC, the City of Long Beach CoC, and the Los Angeles Homeless Services Authority. Counties not obligating their full program allocation by May 31, 2023 are required to notify Agency on or before that date, of the name of the CoC(s) in which the county is served, and the amount of program funds that will be reverted to the CoC(s). By June 30, 2023, the county shall provide Agency with evidence that the funds were transferred and submit an updated budget that clearly identifies the funds that were transferred. F. All HHAP funds shall be expended by June 30, 2025. G. Any funds not expended by June 30, 2025 shall revert to the General Fund. S. Reimbursement HHAP program funds should not generally be obligated or expended prior to the effective date of this Agreement. However, Agency acknowledges that there may be circumstances that would require reimbursement in order to prevent or address homelessness in a given jurisdiction. When considering a reimbursement, the following requirements are applicable: A. Reimbursement is not permitted for activities occurring prior to July 1, 2019. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-H HAP-00064 Page 10 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISIONS B. Reimbursement shall not supplant existing local funds for homeless housing, assistance, or prevention. C. Approval from HCFC must be obtained prior to obtaining reimbursement. D. Capital improvement projects pertaining to emergency shelters and navigation centers are still required to demonstrate need. Eligible applicants are required to submit the following information for HCFC to review and approve or deny such projects: (1) The number of available shelter beds in the jurisdiction; (2) The shelter vacancy rate in the summer and winter months; (3) The percentage of exits from emergency shelters to permanent housing solutions; and (4) A plan to connect residents to permanent housing 6. Ineligible Costs HHAP funds shall not be used for costs associated with activities in violation of any law or for any activities not consistent with the intent of the Program and the eligible uses identified in Health and Safety Code sections 50218 and 50219. Agency reserves the right to request additional clarifying information to determine the reasonableness and eligibility of all uses of the funds made available by this Agreement. If the Grantee or its funded subrecipients use HHAP funds to pay for ineligible activities, the Grantee shall be required to reimburse these funds to Agency. An expenditure which is not authorized by this Agreement, or by written approval of the Grant Manager or his/her designee, or which cannot be adequately documented, shall be disallowed and must be reimbursed to Agency by the Grantee. Agency, at its sole and absolute discretion, shall make the final determination regarding the allowability of HHAP fund expenditures. Program funds shall not be used to supplant existing local funds for homeless housing, assistance, or prevention. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 11 of 23 Homeless Housing, Assistance and Prevention Standard Agreement 7. Administrative Costs The Grantee must comply with Health and Safety Code section 50219, subdivision (e), which limits the Grantee's administrative costs to no more than 7 percent of total HHAP funds received. For purposes of this requirement, "administrative costs" does not include staff or other costs directly related to implementing activities funded by the Program allocation. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 12 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS 1. Termination and Sufficiency of Funds A. Termination of Agreement Agency may terminate this Agreement at any time for cause by giving a minimum of 14 days' notice of termination, in writing, to the Grantee. Cause shall consist of violations of any conditions of this Agreement, any breach of contract as described in paragraph 6 of this Exhibit C; violation of any federal or state laws; or withdrawal of Agency's expenditure authority. Upon termination of this Agreement, unless otherwise approved in writing by Agency, any unexpended funds received by the Grantee shall be returned to Agency within 30 days of Agency's notice of termination. B. Sufficiency of Funds This Agreement is valid and enforceable only if sufficient funds are made available to Agency by legislative appropriation. In addition, this Agreement is subject to any additional restrictions, limitations or conditions, or statutes, regulations or any other laws, whether federal or those of the State of California, or of any agency, department, or any political subdivision of -the federal or State of Califomia governments, which may affect the provisions, terms or funding of this Agreement in any manner. 2. Transfers Grantee may not transfer or assign by subcontract or novation, or by any other means, the rights, duties, or performance of this Agreement or any part thereof, except with the prior written approval of Agency and a formal amendment to this Agreement to affect such subcontract or novation. 3. Grantee's Awlication for Funds Grantee has submitted to Agency an application for HHAP funds to support regional coordination and expand or develop local capacity to address its immediate homelessness challenges. Agency is entering into this Agreement on the basis of, and in substantial reliance upon, Grantee's facts, information, assertions and representations contained in that application, and in any subsequent modifications or additions thereto approved by Agency. The application and any approved modifications and additions thereto are hereby incorporated into this Agreement. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 13 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND (FINANCING COUNCIL TERMS AND CONDITIONS Grantee warrants that all information, facts, assertions and representations contained in the application and approved modifications and additions thereto are true, correct, and complete to the best of Grantee's knowledge. In the event that any part of the application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading in such a manner that would substantially affect Agency approval, disbursement, or monitoring of the funding and the grants or activities governed by this Agreement, then Agency may declare a breach of this Agreement and take such action or pursue such remedies as are legally available. 4. Reportina/Audits A. Annual Report Deadlines By January 1, 2021, and annually on that date thereafter until all funds have been expended, the Grantee shall submit an annual report to Agency in a format provided by Agency. If the Grantee fails to provide such documentation, Agency may recapture any portion of the amount authorized by this Agreement with a 14-day written notification. No later than January 1, 2026, the Grantee shall submit a final report, in a format provided by Agency, as well as a detailed explanation of all uses of the Program funds. B. Reporting Requirements The annual report shall contain detailed information in accordance with Health and Safety Code section 50221, subdivision (a).This information includes the following, as well as any additional information deemed appropriate or necessary by Agency: 1. An ongoing tracking of the specific uses and expenditures of any Program funds broken out by eligible uses listed, including the current status of those funds. 2. The number of homeless individuals served by the Program funds in that year, and a total number served in all years of the Program, as well as the homeless populations served. 3. The types of housing assistance provided, broken out by the number of individuals. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 14 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS 4. Outcome data for an individual served through Program funds, including the type of housing that an individual exited to, the percent of successful housing exits, and exit types for unsuccessful housing exits. In addition to the annual reports, Agency requires the Grantee to submit quarterly expenditure reports due no later than 30 days following the end of each fiscal quarter. Grantee shall submit a report to the agency on a form and method provide by the agency, that includes the ongoing tracking of the specific uses and expenditures of any program funds broken out by eligible uses listed, including the current status of those funds, as well as any additional information the agency deems appropriate or necessary. Agency may require additional supplemental reporting with written notice to the Grantee. C. Auditing Agency reserves the right to perform or cause to be performed a financial audit. At Agency request, the Grantee shall provide, at its own expense, a financial audit prepared by a certified public accountant. HHAP administrative funds may be used to fund this expense. 1. If a financial audit is required by Agency, the audit shall be performed by an independent certified public accountant. 2, The Grantee shall notify Agency of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by Agency to the independent auditor's working papers. 3. The Grantee is responsible for the completion of audits and all costs of preparing audits. 4. If there are audit findings, the Grantee must submit a detailed response acceptable to Agency for each audit finding within 90 days from the date of the audit finding report. 5. Inspection and Retention of Records A. Record Inspection The Grantee agrees that Agency or its designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance under this Agreement. The Grantee agrees to provide Agency, or its designee, with any Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-H HAP-00064 Page 15 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS relevant information requested. The Grantee agrees to give Agency or its designee access to its premises, upon reasonable notice and during normal business hours, for the purpose of interviewing employees who might reasonably have information related to such records, and of inspecting and copying such books, records, accounts, and other materials that may be relevant to an investigation of compliance with the Homeless Housing, Assistance, and Prevention Program laws, the HHAP program guidance document published on the website, and this Agreement. B. Record Retention The Grantee further agrees to retain all records described in subparagraph A for a minimum period of five (5) years after the termination of this Agreement. If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been commenced before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues which arise from it. 6. Breach and Remedies A. Breach of Agreement Breach of this Agreement includes, but is not limited to, the following events: 1. Grantee's failure to comply with the terms or conditions of this Agreement. 2. Use of, or permitting the use of, HHAP funds provided under this Agreement for any ineligible activities. 3. Any failure to comply with the deadlines set forth in this Agreement. B. Remedies for Breach of Agreement In addition to any other remedies that may be available to Agency in law or equity for breach of this Agreement, Agency may: 1. Bar the Grantee from applying for future HHAP funds; 2. Revoke any other existing HHAP award(s) to the Grantee; 3. Require the return of any unexpended HHAP funds disbursed under this Agreement; 4. Require repayment of HHAP funds disbursed and expended under this Agreement; Homeless Housing, Assistance and Prevention Program NOFA Date: December6, 2019 City of Palm Springs 20-HHAP-00064 Page 16 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS 5. Require the immediate return to Agency of all funds derived from the use of HHAP funds including, but not limited to, recaptured funds and returned funds; and 6. Seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or the appointment of a receiver to complete the technical assistance in accordance with HHAP requirements. C. All remedies available to Agency are cumulative and not exclusive. D. Agency may give written notice to the Grantee to cure the breach or violation within a period of not less than 15 days. i. Waivers No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of Agency to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of Agency to enforce these provisions. 8. Nondiscrimination During the performance of this Agreement, Grantee and its subrecipients shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, gender expression, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), genetic information, marital status, military and veteran status, and denial of medical and family care leave or pregnancy disability leave. Grantees and subGrantees shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its subrecipients shall comply with the provisions of California's laws against discriminatory practices relating to specific groups: the California Fair Employment and Housing Act (FEHA) (Gov. Code, § 12900 et seq.); the regulations promulgated thereunder (Cal. Code Regs., tit. 2, § 11000 et seq.); and the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code, §§ 11135 -11139.5). Grantee and its subrecipients shall give written notice of their obligations Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 17 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS under this clause to labor organizations with which they have a collective bargaining or other agreement. 9. Conflict of Interest All Grantees are subject to state and federal conflict of interest laws. For instance, Health and Safety Code section 50219, subdivision (h) states, "For purposes of Section 1090 of the Government Code, a representative of a county serving on a board, committee, or body with the primary purpose of administering funds or making funding recommendations for applications pursuant to this chapter shall have no financial interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county." Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Additional applicable statutes include, but are not limited to, Government Code section 1090 and Public Contract Code sections 10410 and 10411. A. Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent Grantee with any State agency to provide goods or services. B. Former State Employees: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision -making process relevant to the contract while employed in any capacity by any State agency. For the twelve-month period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy -making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service. C. Homeless Housing, Assistance and Prevention Program NOFA Date_ December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 18 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS C. Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the a Political Reform Act of 1974 (Gov. Code, § 81000 et seq.). D. Representatives of a County; A representative of a county serving on a board, committee, or body with the primary purpose of administering funds or making funding recommendations for applications pursuant to this chapter shall have no financial E. interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county. 10. Drug -Free Workplace Certification Certification of Compliance: By signing this Agreement, Grantee hereby certifies, under penalty of perjury under the laws of State of California, that it and its subrecipients will comply with the requirements of the Drug -Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and have or will provide a drug -free workplace by taking the following actions: A. Publish a statement notifying employees and subrecipients that unlawful manufacture distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, Grantees, or subrecipients for violations, as required by Government Code section 8355, subdivision (a)(1). B. Establish a Drug -Free Awareness Program, as required by Government Code section 8355, subdivision (a)(2) to inform employees, Grantees, or subrecipients about all of the following: 1. The dangers of drug abuse in the workplace; 2. Grantee's policy of maintaining a drug -free workplace; 3. Any available counseling, rehabilitation, and employee assistance program; and 4. Penalties that may be imposed upon employees, Grantees, and subrecipients for drug abuse violations. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-H HAP-00064 Page 19 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS C. Provide, as required by Government Code section 8355, subdivision (a)(3), that every employee and/or subrecipient that works under this Agreement: 1. Will receive a copy of Grantee's drug -free policy statement, and 2. Will agree to abide by terms of Grantee's condition of employment or subcontract. 11. Child Support Compliance Act For any Contract Agreement in excess of $100,000, the Grantee acknowledges in accordance with Public Contract Code 7110, that: A. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and B. The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. 12. Special Conditions — Grantees/SubGrantee The Grantee agrees to comply with all conditions of this Agreement including the Special Conditions set forth in Exhibit D. These conditions shall be met to the satisfaction of Agency prior to disbursement of funds. The Grantee shall ensure that all SubGrantees are made aware of and agree to comply with all the conditions of this Agreement and the applicable State requirements governing the use of HHAP funds. Failure to comply with these conditions may result in termination of this Agreement. A. The Agreement between the Grantee and any SubGrantee shall require the Grantee and its SubGrantees, if any, to: I. Perform the work in accordance with Federal, State and Local housing and building codes, as applicable. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 20 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS 2. Maintain at least the minimum State -required worker's compensation for those employees who will perform the work or any part of it. 3. Maintain, as required by law, unemployment insurance, disability insurance, and liability insurance in an amount that is reasonable to compensate any person, firm or corporation who may be injured or damaged by the Grantee or any SubGrantee in performing the Work or any part of it. 4. Agree to include all the terms of this Agreement in each subcontract. 13. Com2liance with State and Federal Laws, Rules Guidelines and Regulations The Grantee agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, environmental protection, equal opportunity, fair housing, and all other matters applicable and/or related to the HHAP program, the Grantee, its subrecipients, and all eligible activities. Grantee shall also be responsible for obtaining any and all permits, licenses, and approvals required for performing any activities under this Agreement, including those necessary to perform design, construction, or operation and maintenance of the activities. Grantee shall be responsible for observing and complying with any applicable federal, state, and local laws, rules or regulations affecting any such work, specifically those including, but not limited to, environmental protection, procurement, and safety laws, rules, regulations, and ordinances. Grantee shall provide copies of permits and approvals to Agency upon request. 14. InsRections A. Grantee shall inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this Agreement. B. Agency reserves the right to inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this Agreement. C. Grantee agrees to require that all work that is determined based on such inspections not to conform to the applicable requirements be corrected and to withhold payments to the subrecipient until it is corrected. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 21 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS 16. Litigation A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of Agency, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are and shall be deemed severable. B. The Grantee shall notify Agency immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or Agency, and shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of Agency. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6,2019 City of Palm Springs 20-HHAP-00064 Page 22 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT D SPECIAL TERMS AND CONDITIONS 1. All proceeds from any interest -bearing account established by the Grantee for the deposit of HHAP funds, along with any interest -bearing accounts opened by subrecipients to the Grantee for the deposit of HHAP funds, must be used for HHAP-eligible activities. 2. Any housing -related activities funded with HHAP funds, including but not limited to emergency shelter, rapid -rehousing, rental assistance, transitional housing and permanent supportive housing, must be in compliance or otherwise aligned with the core components of Housing First, pursuant to Welfare and Institutions Code section 8255, subdivision (b). 3. Grantee agrees to utilize its local Homeless Management Information System (HMIS) to track HHAP-funded projects, services, and clients served. Grantee will ensure that HMIS data are collected in accordance with applicable laws and in such a way as to identify individual projects, services, and clients that are supported by HHAP funding (e.g., by creating appropriate HHAP-specific funding sources and project codes in HMIS). 4. Grantee agrees to participate in the statewide data system or warehouse created by Agency to collect local data from California continuums of care through the HMIS, and sign any required data use agreements allowing Agency to access Grantee's HMIS data for that purpose. 5. If Grantee is a continuum of care or a county that accepted redirected funding from a continuum of care, it shall review and execute a data use agreement no later than July 31, 2020, in order to ensure compliance with Health and Safety Code section 50219, subdivision (a)(7) and (10). Grantee's failure to timely execute a data use agreement will constitute a breach of this Agreement. In this event, BCSH, in its sole and absolute discretion, may exercise any and all remedies permitted by this Agreement or by applicable law. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 23 of 23 ] Homeless Housing, Assistance and Prevention ! Standard Agreement EXHIBIT E GENERAL TERMS AND CONDITIONS This exhibit is incorporated by reference and made part of this agreement. This document can be viewed at the following link: httosJ/www.das.ca.aov/OLS/Resources/Page-Content/Office-of-Legal-Services- esources-L' t-Folder/Standard-Contract-L ua a ^T Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 ATTACHMENT NO. 7 Borrower'S PRO FORMA .1VN, N AI erm mo Bank Construction Loan 18,698,217 4.00% 20 City Loan (Housing and Homeless indsminaMIM 0.00% 20 NPLH-HCD 0 0.42% 20 AHP 600,000 0.00% 20 City Fee Waivers 987,000 0.00% 0 Costs Deferred During Construction 1,143,029 General Partner Equity 1,000 Limited Partner Equity 2,652,945 Total Construction Sources $27,682,190 Total Development Cost $27,682,190 Amor- Residual Amount Interest Rate Term (yr) tizing Receipts MHP Bank Perm Loan 1,331,200 4.00% 30 rousing and Homeless funds) 3,600,000 0.00% 55 NPLH-HCD 5,319,577 0.42% 55 0 0 El Affordable Housing Program-FHLB 600,000 0.00% 55 0 0 0 City Fees 987,000 0.00% 55 0 ° o General Partner Equity 1,000 0 0 Limited Partner Equity 15,843,412 Total Permanent Sources $27,682,189 Total Development Cost $27 an-1.19n Sur us/ (Gap) (0) newoual Receipts Cash Flow Payments Share* Bank Perm Loan No City Loan (Housing and Homeless funds) Yes 42.86% NPLH-HCD No Affordable Housing Program-FHLB Yes 7.14% Total 50.000/0 55575.18175\34589761.5 ATTACHMENT NO.8 CERTIFICATE OF COMPLETION FORM OF CERTIFICATE OF COMPLETION I, the City Manager of the City of Palm Springs ("City"), hereby certify as follows: Section 1. The Project, required to be constructed in accordance with that certain Affordable Housing And Loan Agreement ("Agreement") dated [INSERT DATE] by and between the City and Coachella Valley Housing Coalition ("Borrower") on certain real property, as more specifically described in the Agreement ("Property"), has been completed in accordance with the provisions of the Agreement. Section 2. This Certificate of Completion shall constitute a conclusive determination by the City of Borrower's satisfaction of its obligation under the Agreement to complete the construction of the Project on the Property, excluding any normal and customary tenant improvements and minor building "punch -list" items. The Agreement is an official record of the City and a copy of the Agreement may be inspected in the office of the City Clerk located at 3200 E Tahquitz Canyon Way, Palm Springs, CA 92262, during the regular business hours of the City. DATED AND ISSUED this calendar day of , City Manager 55575.18175\34589761.5 EXHIBIT 9 HOMELESS HOUSING, ASSISTANCE AND PREVENTION STANDARD AGREEMENT [Needs to be attached] 55575.18175\34589761.5 V STATE OF CAUFOR14A - DEPARTMENT OF GENERAL SERVICES STANDARD AGREEMENT AGREEMENT NUMBER PURCHASING AUTHORITY NUMBER Of Appricable) STD213 (RW.03/2019) 20-HHAP-00064 1. This Agreement is entered into between the Contracting Agency and the Contractor named below: CONTRACTING AGENCY NAME Business, Consumer Services, and Housing Agency CONTRACTOR NAME City of Palm Springs 2. The term of this Agreement is: START DATE May 1, 2020 THROUGH END DATE April 30, 2025 3. The maximum amount of this Agreement is: Ten Million Dollars ($10,000,000.00) 4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this ►eference made a part of the Agreement. Exhibits Tide Pages Exhibit A Scope of Work 1-6 Exhibit B Budget Detail and Payment Provisions 7-11 Exhibit C Homeless Coordinating and Financing Council Terms and Conditions 12-21 Exhibit D Special Terms and Conditions _ 22 Exhibit E• General Terms and Conditions 23 ems shmm vWth an asterisk (*).ate herebyincamaramd !ereronre nn mn n ... n 7hm dbaiments can beyk-wed ar - r • ••ycc...vrc us rr urruurcvaarreti7. ca.aov/t>tS�ResaurCes IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BYTHEPAR77ES HERETO. CONTRACTOR —.,.., wn 1—c {u vmer man an manrrauar, stare wnethera corporation, partnership, etc.) City of Palm Springs CONTRACTOR BUSINESS ADDRESS CITY STATE ZIP 3200 E. Tahquita Canyon Way Palm Springs CA 92262 PRINTED NAMEOF PERSON SIGNING TITLE David H. Ready City Manager CONTRACTOR AUTHORM SIGNATURE DATE SIGNED April 22, 2020 Page 1 of 2 STATE OF CALIFORNIA - DEPARTMENT OF GENERAL SERVICES STANDARD AGREEMENT AGREEMENTNUMBER PuaCHASINGAUTHORITY NUMBER OfTpo able) STD21361 ,,03MI9) 1 20-HHAP-00064 CONTRACTING AGENCY NAME Business, Consumer Services, and Housing Agency Page 2 of 2 City of Palm Springs 20-HHAP-00064 Page 1 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK 1. Authority The State of California has established the Homeless Housing, Assistance, and Prevention Program ("HHAP" or "Program" or "grantj pursuant to Chapter 6 (commencing with Section 50216) of Part 1 of Division 31 of the Health and Safety Code. (Added by Stats.2019, c. 159 (A.B. 101), § 10, eff. July 31, 2019.) The Program is administered by the California Homeless Coordinating and Financing Council ("Council") in the Business, Consumer Services and Housing Agency ('Agency"). HHAP provides one-time flexible block grant funds to continuums of care, large cities (population of 300,000+) and counties as defined in the December 6, 2019 HHAP Notice of Funding Availability ("NOFA") to support regional coordination and expand or develop local capacity to address immediate homelessness challenges informed by a best -practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. This Standard Agreement along with all its exhibits ("Agreement') is entered into by the Agency and a continuum of care, a city, or a county ("Grantee") under the authority of, and in furtherance of the purpose of, the Program. In signing this Agreement and thereby accepting this award of funds, the Grantee agrees to comply with the terms and conditions of the Agreement, the NOFA under which the Grantee applied, the representations contained in the Grantee's application, and the requirements of the authority cited above. 2. Purpose The general purpose of the Program is to provide one-time block grant funding to support regional coordination, and to expand or develop local capacity to address immediate homelessness challenges. Activities will be informed by a best -practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. In accordance with the authority cited above, an application was created and submitted by the Grantee for HHAP funds to be allocated for eligible uses as stated in Health and Safety Code section 50219, subdivision (c)(1) — (8). Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 2 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK 3. Definitions The following HHAP program terms are defined in accordance with Health and Safety Code section 50216, subdivisions (a) — (q): (a) "Agency" means the Business, Consumer Services and Housing Agency. (b) "Applicant" means a continuum of care, city, or county. (c) "City" means a city or city and county that is legally incorporated to provide local government services to its population. A city can be organized either under the general laws of this state or under a charter adopted by the local voters. (d) "Continuum of care" means the same as defined by the United States Department of Housing and Urban Development at Section 578.3 of Title 24 of the Code of Federal Regulations. (e) "Coordinated Entry System" means a centralized or coordinated process developed pursuant to Section 578.7 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019, designed to coordinate homelessness program participant intake, assessment, and provision of referrals. In order to satisfy this subdivision, a centralized or coordinated assessment system shall cover the geographic area, be easily accessed by individuals and families seeking housing or services, be well advertised, and include a comprehensive and standardized assessment tool. (f) "Council' means the Homeless Coordinating and Financing Council created pursuant to Section 8257 of the Welfare and Institutions Code. (g) "Emergency shelter" has the same meaning as defined in subdivision (e) of Section 50801. (h) "Homeless" has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019. (i) "Homeless Management Information System" means the information system designated by a continuum of care to comply with federal reporting requirements as defined in Section 578.3 of Title 24 of the Code of Federal Regulations. The term "Homeless Management Information System" also includes the use of a comparable Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 3 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK database by a victim services provider or legal services provider that is permitted by the federal government under Part 576 of Title 24 of the Code of Federal Regulations. 6) "Homeless point -in -time count' means the 2019 homeless point -in -time count pursuant to Section 578.3 of Title 24 of the Code of Federal Regulations. A jurisdiction may elect to instead use their 2017 point -in -time count if they can demonstrate that a significant methodology change occurred between the 2017 and 2019 point -in -time counts that was based on an attempt to more closely align the count with HUD best practices and undertaken in consultation with HUD representatives. A jurisdiction shall submit documentation of this to the agency by the date by which HUD's certification of the 2019 homeless paint -in -time count is finalized. The agency shall review and approve or deny a request described in the previous sentence along with a jurisdiction's application for homeless funding. (k) "Homeless youth" means an unaccompanied youth between 12 and 24 years of age, inclusive, who is experiencing homelessness, as defined in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11434a(2)). "Homeless youth" includes unaccompanied youth who are pregnant or parenting. (1) "Housing First" has the same meaning as in Section 8255 of the Welfare and Institutions Code, including all of the core components listed therein. (m) "Jurisdiction" means a city, city that is also a county, county, or continuum of care, as defined in this section. (m) "Jurisdiction" means a city, city that is also a county, county, or continuum of care, as defined in this section. (n) "Navigation center" means a Housing First, low -barrier, service -enriched shelter focused on moving homeless individuals and families into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. (o) "Program" means the Homeless Housing, Assistance, and Prevention program established pursuant to this chapter. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 4 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK (p) "Program allocation" means the portion of program funds available to expand or develop local capacity to address immediate homelessness challenges, in the amount of six hundred fifty million dollars ($650,000,000). (q) "Recipient" means a jurisdiction that receives funds from the agency for the purposes of the program. Additional definitions for the purposes of the HHAP program: "Obligate" means that the Grantee has placed orders, awarded contracts, received services, or entered into similar transactions that require payment using HHAP funding. Grantees, and the subrecipients who receive awards from those Grantees, must obligate the funds by the statutory deadlines set forth in this Exhibit A. "Expended" means all HHAP funds obligated under contract or subcontract have been fully paid and receipted, and no invoices remain outstanding. In the case of an award made through subcontracting, subcontractors are required to obligate the funds by the same statutory deadlines. "Grantee" means the continuum of care, city, or county that has entered into contract with the Business, Consumer Services and Housing Agency and is receiving HHAP funding. 4. Scope of Work The Scope of Work ("Work") for this Agreement shall include uses that are consistent with Health and Safety Code section 50219, subdivision (c)(1) — (8), and any other applicable laws. Eligible uses include the following: A. Rental assistance and rapid rehousing. B. Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves. C. Incentives to landlords, including, but not limited to, security deposits and holding fees. D. Outreach and coordination, which may include access to job programs, to assist vulnerable populations in accessing permanent housing and to promote housing stability in supportive housing. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-H HAP-00064 Page 5 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK E. Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations including families and homeless youth. F. Delivery of permanent housing and innovative housing solutions such as hotel and motel conversions. G. Prevention and shelter diversion to permanent housing. H. New navigation centers and emergency shelters based on demonstrated need. Demonstrated need for purposes of this paragraph shall be based on the following: i. The number of available shelter beds in the city, county, or region served by a continuum of care. ii. Shelter vacancy rate in the summer and winter months. iii. Percentage of exits from emergency shelters to permanent housing solutions. iv. A plan to connect residents to permanent housing. 5. Agency Contract Coordinator The Agency's Contract Coordinator for this Agreement is the Council's HHAP Grant Manager or the Grant Manager's designee. Unless otherwise instructed, any notice, report, or other communication requiring an original Grantee signature for this Agreement shall be mailed to the Agency Contract Coordinator. If there are opportunities to send information electronically, Grantee will be notified via email by the HHAP Grant Manager or the Grant Manager's designee. The Representatives during the term of this Agreement will be: PROGRAM GRANTEE ENTITY: Business Consumer Services and Housing Agency City of Palm Springs SECTION/UNIT: Homeless Coordinating and Financing Council (HCFC) ADDRESS: 915 Capitol Mall Suite 350-A Sacramento, CA M14 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 ONTRAiCT MANAGER Amber Ostrander Jay Virata 20-HHAP-000B4 PHONE NUMBER: 916-651-7995 760-323-8228 EMAIL ADDRESS: Amber.Ostrander@bcsh.ca.gov iay.virata@palmspringsca.gov Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 6 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT A SCOPE OF WORK All requests to update the Grantee information listed within this Agreement shall be emailed to the Homeless Coordinating and Financing Council's general email box at hcfc(&-bcsh.ca.cjov. The Council reserves the right to change their representative and/or contact information at any time with notice to the Grantee. G. Effective Date, Term of Agreement, and Deadlines A. This Agreement is effective upon approval by the Agency (indicated by the signature provided by Agency in the lower left section of page one, Standard Agreement, STD. 213), when signed by all parties. B. Contractual Obligation: e Grantees that are counties must contractually obligate 100 percent of their full program allocations on or before May 31, 2023. e Grantees that are cities or continuums of care must contractually obligate no less than 50 percent of program allocations on or before May 31, 2023. Cities or continuums of care that contractually obligate less than 50 percent or program allocations after May 31, 2023 are subject to an alternative disbursement plan as required under (Health & Safety Code, § 50220, subdivision (a)(4)(B). C. Full Expenditure of HHAP Grant Funds All HHAP grant funds (100 percent) must be expended by June 30, 2025, Any funds not expended by that date shall revert to the General Fund. (Health & Safety Code, § 50220, subdivision (e).) 7. Social Conditions Agency reserves the right to add any special conditions to this Agreement it deems necessary to ensure that the goals of the Program are achieved, Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 7 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT B BUDGET DETAIL, AND PAYMENT PROVISIONS 1. Budoet Detail & Chan The Grantee agrees that HHAP funds shall be expended on uses that support regional coordination and expand or develop local capacity to address immediate homelessness challenges. Such activities must be informed by a best -practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. The Grantee shall expend HHAP funds on eligible activities as detailed in the annual budget submitted with the Grantee's approved application. The Grantee shall submit an updated budget with the annual report that revises and reports all actual and projected expenditures of HHAP funds. Changes may be made to the timing (e.g., fiscal year) of eligible use expenditures without prior approval by the Agency so long as the total expenditures (actual and projected) for each eligible use category remain the same as described in the budget approved with the Grantee's application. Any decrease or increase to the total expenditures for any eligible use category must otherwise be approved by the Councirs HHAP Grant Manager or his/her designee, in writing, before the Grantee may expend HHAP funds according to an alternative budget. The HHAP Grant Manager will respond to Grantee with approval or denial of request. Failure to obtain written approval from the Grant Manager or his/her designee as required by this section may be considered a breach of this Agreement. 2. General Conditions Prior to Disbursement All Grantees must submit the following forms prior to HHAP funds being released: A. Request for Funds Form (RFF) B. STD 213 Standard Agreement - 2 original copies of the signed STD 213 form and initialed Exhibits A through E. C. Data Use Agreement (continuums of care and counties that accepted redirected funding from a continuum of care- see Exhibit D for relevant Special Terms and Conditions) Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 8 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISIONS 3. Disbursement of Funds HHAP funds will be disbursed to the Grantee upon receipt, review and approval of the completed Standard Agreement and RFF by Agency, the Department of General Services (DGS) and the State Controller's Office (SCO). Once Agency receives, reviews, and signs off on the completed documents, the documents will be sent to DGS for review. Once DGS review is completed, documents will be forwarded to SCO for final review and fund disbursement. The RFF must include the proposed eligible uses and the amount of funds proposed for expenditure under each eligible use. HHAP funds will be disbursed in a single allocation via mailed check once the RFF has been received by the SCO. Checks will be mailed to the address and contact name listed on the RFF. 4. Expenditure of Funds Specific requirements and deadlines for contractually obligating and expending awarded funds are set forth in the Homeless Housing, Assistance, and Prevention Program statutes. Health and Safety Code sections 50218, 50219, and 50220 mandate the following: A. Up to 5 percent of the HHAP allocation maybe expended for the following uses that are intended to meet federal requirements for housing funding: (1) Strategic homelessness plan, as defined in section 578.7(c) of Title 24 of the Code of Federal Regulations; and/or (2) Infrastructure development to support coordinated entry systems and Homeless Management Information Systems. B. No more than 7 percent of the HHAP allocation may be used for administrative costs incurred by the Grantee. C. At least 8 percent of the HHAP allocation shall be used to establish or expand services for homeless youth populations. D. Grantees that are cities or continuums of care shall contractually obligate no less than 50 percent of HHAP funds by May 31, 2023. If less than 50 percent is obligated after May 31, 2023, continuums of care and cities shall not expend any remaining portion of the 50 percent of program allocations required to have been obligated unless and until both of the following occur: Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-H HAP-00064 Page 9 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISIONS (1) On or before June 30, 2023, the Grantee submits an alternative disbursement plan to Agency that includes an explanation for the delay and a plan to fully expend these funds by December 31, 2023. (2) Agency approves the alternative disbursement plan. If the funds identified in the approved alternative disbursement plan are not fully expended by December 31, 2023, the funds shall be returned to Agency. E. Grantees that are counties shall contractually obligate the full allocation (100 percent) awarded to them by May 31, 2023. Any funds that are - not contractually obligated by this date shall be reverted to the continuum of care that serves the county. Specific to Los Angeles County, funds that are not contractually obligated by this date shall be divided proportionately using the HHAP funding allocation formula among the four CoC's that serve Los Angeles County: City of Glendale CoC, City of Pasadena CoC, the City of Long Beach CoC, and the Los Angeles Homeless Services Authority. Counties not obligating their full program allocation by May 31, 2023 are required to notify Agency on or before that date, of the name of the CoC(s) in which the county is served, and the amount of program funds that will be reverted to the CoC(s). By June 30, 2023, the county shall provide Agency with evidence that the funds were transferred and submit an updated budget that clearly identifies the funds that were transferred. F. All HHAP funds shall be expended by June 30, 2025. G. Any funds not expended by June 30, 2025 shall revert to the General Fund. S. Reimbursement HHAP program funds should not generally be obligated or expended prior to the effective date of this Agreement. However, Agency acknowledges that there may be circumstances that would require reimbursement in order to prevent or address homelessness in a given jurisdiction. When considering a reimbursement, the following requirements are applicable: A. Reimbursement is not permitted for activities occurring prior to July 1, 2019. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-H HAP-00064 Page 10 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISIONS B. Reimbursement shall not supplant existing local funds for homeless housing, assistance, or prevention. C. Approval from HCFC must be obtained prior to obtaining reimbursement. D. Capital improvement projects pertaining to emergency shelters and navigation centers are still required to demonstrate need. Eligible applicants are required to submit the following information for HCFC to review and approve or deny such projects: (1) The number of available shelter beds in the jurisdiction; (2) The shelter vacancy rate in the summer and winter months; (3) The percentage of exits from emergency shelters to permanent housing solutions; and (4) A plan to connect residents to permanent housing. 6. Ineli-gible Costs HHAP funds shall not be used for costs associated with activities in violation of any law or for any activities not consistent with the intent of the Program and the eligible uses identified in Health and Safety Code sections 50218 and 50219. Agency reserves the right to request additional clarifying information to determine the reasonableness and eligibility of all uses of the funds made available by this Agreement. If the Grantee or its funded subrecipients use HHAP funds to pay for ineligible activities, the Grantee shall be required to reimburse these funds to Agency. An expenditure which is not authorized by this Agreement, or by written approval of the Grant Manager or his/her designee, or which cannot be adequately documented, shall be disallowed and must be reimbursed to Agency by the Grantee. Agency, at its sole and absolute discretion, shall make the final determination regarding the allowability of HHAP fund expenditures. Program funds shall not be used to supplant existing local funds for homeless housing, assistance, or prevention. Homeless Housing, Assistance and Prevention Program NOFA Date: December B. 2019 City of Palm Springs 20-H HAP-00064 Page 11 of 23 Homeless Housing, Assistance and Prevention Standard Agreement 7, Administrative Costs The Grantee must comply with Health and Safety Code section 50219, subdivision (e), which limits the Grantee's administrative costs to no more than 7 percent of total HHAP funds received. For purposes of this requirement, "administrative costs" does not include staff or other costs directly related to implementing activities funded by the Program allocation. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 12 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C / f HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS 1. Termination and Sufficiency of Funds A. Termination of Agreement Agency may terminate this Agreement at any time for cause by giving a minimum of 14 days' notice of termination, in writing, to the Grantee. Cause shall consist of violations of any conditions of this Agreement, any breach of contract as described in paragraph 6 of this Exhibit C; violation of any federal or state laws; or withdrawal of Agency's expenditure authority. Upon termination of this Agreement, unless otherwise approved in writing by Agency, any unexpended funds received by the Grantee shall be returned to Agency within 30 days of Agency's notice of termination. B. Sufficiency of Funds This Agreement is valid and enforceable only if sufficient funds are made available to Agency by legislative appropriation. In addition, this Agreement is subject to any additional restrictions, limitations or conditions, or statutes, regulations or any other laws, whether federal or those of the State of California, or of any agency, department, or any political subdivision of the federal or State of California governments, which may affect the provisions, terms or funding of this Agreement in any manner. 2. Transfers Grantee may not transfer or assign by subcontract or novation, or by any other means, the rights, duties, or performance of this Agreement or any part thereof, except with the prior written approval of Agency and a formal amendment to this Agreement to affect such subcontract or novation. 3. Grantee's Application for Funds Grantee has submitted to Agency an application for HHAP funds to support regional coordination and expand or develop local capacity to address its immediate homelessness challenges. Agency is entering Into this Agreement on the basis of, and in substantial reliance upon, Grantee's facts, information, assertions and representations contained in that application, and in any subsequent modifications or additions thereto approved by Agency. The application and any approved modifications and additions thereto are hereby incorporated into this Agreement. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 13 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS Grantee warrants that all information, facts, assertions and representations contained in the application and approved modifications and additions thereto are true, correct, and complete to the best of Grantee's knowledge. In the event that any part of the application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading in such a manner that would substantially affect Agency approval, disbursement, or monitoring of the funding and the grants or activities governed by this Agreement, then Agency may declare a breach of this Agreement and take such action or pursue such remedies as are legally available. 4. Reporting/Audits A. Annual Report Deadlines By January 1, 2021, and annually on that date thereafter until all funds have been expended, the Grantee shall submit an annual report to Agency in a format provided by Agency. If the Grantee fails to provide such documentation, Agency may recapture any portion of the amount authorized by this Agreement with a 14-day written notification. No later than January 1, 2026, the Grantee shall submit a final report, in a format provided by Agency, as well as a detailed explanation of all uses of the Program funds. B. Reporting Requirements The annual report shall contain detailed information in accordance with Health and Safety Code section 50221, subdivision (a).This information includes the following, as well as any additional information deemed appropriate or necessary by Agency: 1. An ongoing tracking of the specific uses and expenditures of any Program funds broken out by eligible uses listed, including the current status of those funds. 2. The number of homeless individuals served by the Program funds in that year, and a total number served in all years of the Program, as well as the homeless populations served. 3. The types of housing assistance provided, broken out by the number of individuals. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 14 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS 4. Outcome data for an individual served through Program funds, including the type of housing that an individual exited to, the percent of successful housing exits, and exit types for unsuccessful housing exits. In addition to the annual reports, Agency requires the Grantee to submit quarterly expenditure reports due no later than 30 days following the end of each fiscal quarter. Grantee shall submit a report to the agency on a form and method provide by the agency, that includes the ongoing tracking of the specific uses and expenditures of any program funds broken out by eligible uses listed, including the current status of those funds, as well as any additional information the agency deems appropriate or necessary. Agency may require additional supplemental reporting with written notice to the Grantee. C. Auditing Agency reserves the right to perform or cause to be performed a financial audit. At Agency request, the Grantee shall provide, at its own expense, a financial audit prepared by a certified public accountant. HHAP administrative funds may be used to fund this expense. 1. If a financial audit is required by Agency, the audit shall be performed by an independent certified public accountant. 2. The Grantee shall notify Agency of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by Agency to the independent auditor's working papers. 3. The Grantee is responsible for the completion of audits and all costs of preparing audits. 4. If there are audit findings, the Grantee must submit a detailed response acceptable to Agency for each audit finding within 90 days from the date of the audit finding report. 5. Inspection and Retention of Records A. Record Inspection The Grantee agrees that Agency or its designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance under this Agreement. The Grantee agrees to provide Agency, or its designee, with any Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 15 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS relevant information requested. The Grantee agrees to give Agency or its designee access to its premises, upon reasonable notice and during normal business hours, for the purpose of interviewing employees who might reasonably have information related to such records, and of inspecting and copying such books, records, accounts, and other materials that may be relevant to an investigation of compliance with the Homeless Housing, Assistance, and Prevention Program laws, the HHAP program guidance document published on the website, and this Agreement. B. Record Retention The Grantee further agrees to retain all records described in subparagraph A for a minimum period of five (5) years after the termination of this Agreement. If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been commenced before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues which arise from it. 6. Breach and Remedies A. Breach of Agreement Breach of this Agreement includes, but is not limited to, the following events: 1. Grantee's failure to comply with the terms or conditions of this Agreement, 2. Use of, or permitting the use of, HHAP funds provided under this Agreement for any ineligible activities. 3. Any failure to comply with the deadlines set forth in this Agreement. B. Remedies for Breach of Agreement In addition to any other remedies that may be available to Agency in law or equity for breach of this Agreement, Agency may: 1. Bar the Grantee from applying for future HHAP funds; 2. Revoke any other existing HHAP award(s) to the Grantee; 3. Require the return of any unexpended HHAP funds disbursed under this Agreement; 4. Require repayment of HHAP funds disbursed and expended under this Agreement; Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 16 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS 5. Require the immediate return to Agency of all funds derived from the use of HHAP funds including, but not limited to, recaptured funds and returned funds; and 6. Seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or the appointment of a receiver to complete the technical assistance in accordance with HHAP requirements. C. All remedies available to Agency are cumulative and not exclusive. D. Agency may give written notice to the Grantee to cure the breach or violation within a period of not less than 15 days. 7. Waivers No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of Agency to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of Agency to enforce these provisions. 8. Nondiscrimination During the performance of this Agreement, Grantee and its subrecipients shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, gender expression, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), genetic information, marital status, military and veteran status, and denial of medical and family care leave or pregnancy disability leave. Grantees and subGrantees shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its subrecipients shall comply with the provisions of California's laws against discriminatory practices relating to specific groups: the California Fair Employment and Housing Act (FEHA) (Gov. Code, § 12900 et seq.); the regulations promulgated thereunder (Cal. Code Regs., tit. 2, § 11000 et seq.); and the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code, §§ 11135 -11139.5). Grantee and its subrecipients shall give written notice of their obligations Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-H HAP-00064 Page 17 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS under this clause to labor organizations with which they have a collective bargaining or other agreement. 9. Conflict of Interest All Grantees are subject to state and federal conflict of interest laws. For instance, Health and Safety Code section 50219, subdivision (h) states, "For purposes of Section 1090 of the Government Code, a representative of a county serving on a board, committee, or body with the primary purpose of administering funds or making funding recommendations for applications pursuant to this chapter shall have no financial interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county." Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Additional applicable statutes include, but are not limited to, Government Code section 1090 and Public Contract Code sections 10410 and 10411. A. Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent Grantee with any State agency to provide goods or services. B. Former State Employees: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision -making process relevant to the contract while employed in any capacity by any State agency. For the twelve-month period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy -making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service. C. Homeless Housing, Assistance and Prevention Program NOFA Date: December6, 2019 City of Palm Springs 20-HHAP-00064 Page 18 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS C. Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the a Political Reform Act of 1974 (Gov. Code, § 81000 et seq.). D. Representatives of a County: A representative of a county serving on a board, committee, or body with the primary purpose of administering funds or making funding recommendations for applications pursuant to this chapter shall have no financial E. interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county. 10. Drug -Free Workplace Certification Certification of Compliance: By signing this Agreement, Grantee hereby certifies, under penalty of perjury under the laws of State of California, that it and its subrecipients will comply with the requirements of the Drug -Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and have or will provide a drug -free workplace by taking the following actions: A. Publish a statement notifying employees and subrecipients that unlawful manufacture distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, Grantees, or subrecipients for violations, as required by Government Code section 8355, subdivision (a)(1). B. Establish a Drug -Free Awareness Program, as required by Government Code section 8355, subdivision (a)(2) to inform employees, Grantees, or subrecipients about all of the following: 1. The dangers of drug abuse in the workplace; 2. Grantee's policy of maintaining a drug -free workplace; 3. Any available counseling, rehabilitation, and employee assistance program; and 4. Penalties that may be imposed upon employees, Grantees, and subrecipients for drug abuse violations. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-H HAP-00064 Page 19 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS C. Provide, as required by Government Code section 8355, subdivision (a)(3), that every employee and/or subrecipient that works under this Agreement: 1. Will receive a copy of Grantee's drug -free policy statement, and 2. Will agree to abide by terms of Grantee's condition of employment or subcontract. 11. Child Support Compliance Act For any Contract Agreement in excess of $100,000, the Grantee acknowledges in accordance with Public Contract Code 7110, that: A. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and B. The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. 12. Smclal Conditions -- Grantees/SubGrantee The Grantee agrees to comply with all conditions of this Agreement including the Special Conditions set forth in Exhibit D. These conditions shall be met to the satisfaction of Agency prior to disbursement of funds. The Grantee shall ensure that all SubGrantees are made aware of and agree to comply with all the conditions of this Agreement and the applicable State requirements governing the use of HHAP funds. Failure to comply with these conditions may result in termination of this Agreement. A. The Agreement between the Grantee and any SubGrantee shall require the Grantee and its SubGrantees, if any, to: 1. Perform the work in accordance with Federal, State and Local housing and building codes, as applicable. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-H HAP-00064 Page 20 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS 2. Maintain at least the minimum State -required worker's compensation for those employees who will perform the work or any part of it. 3. Maintain, as required by law, unemployment insurance, disability insurance, and liability insurance in an amount that is reasonable to compensate any person, firm or corporation who may be injured or damaged by the Grantee or any SubGrantee in performing the Work or any part of it. 4. Agree to include all the terms of this Agreement in each subcontract. 13. Compliance with State and Federal Laws Rules Guidelines and Rectulations The Grantee agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, environmental protection, equal opportunity, fair housing, and all other matters applicable and/or related to the HHAP program, the Grantee, its subrecipients, and all eligible activities. Grantee shall also be responsible for obtaining any and all permits, licenses, and approvals required for performing any activities under this Agreement, including those necessary to perform design, construction, or operation and maintenance of the activities. Grantee shall be responsible for observing and complying with any applicable federal, state, and local laws, rules or regulations affecting any such work, specifically those including, but not limited to, environmental protection, procurement, and safety laws, rules, regulations, and ordinances. Grantee shall provide copies of permits and approvals to Agency upon request. 14. Instaections A. Grantee shall inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this Agreement. B. Agency reserves the right to inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this Agreement. C. Grantee agrees to require that all work that is determined based on such inspections notto conform to the applicable requirements be corrected and to withhold payments to the subrecipient until it is corrected. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 21 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT C HOMELESS COORDINATING AND FINANCING COUNCIL TERMS AND CONDITIONS 16. Litigation A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of Agency, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are and shall be deemed severable. B. The Grantee shall notify Agency immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or Agency, and shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of Agency. Homeless Housing, Assistance and Prevention Program NOFA Date: December6, 2019 City of Palm Springs 20-HHAP-000r>4 Page 22 of 23 Homeless Housing, Assistance and Prevention Standard Agreement EXHIBIT D SPECIAL TERMS AND CONDITIONS 1. All proceeds from any interest -bearing account established by the Grantee for the deposit of HHAP funds, along with any interest -bearing accounts opened by subrecipients to the Grantee for the deposit of HHAP funds, must be used for HHAP-eligible activities. 2. Any housing -related activities funded with HHAP funds, including but not limited to emergency shelter, rapid -rehousing, rental assistance, transitional housing and permanent supportive housing, must be in compliance or otherwise aligned with the core components of Housing First, pursuant to Welfare and Institutions Code section 8255, subdivision (b). 3. Grantee agrees to utilize its local Homeless Management Information System (HMIS) to track HHAP-funded projects, services, and clients served. Grantee will ensure that HMIS data are collected in accordance with applicable laws and in such a way as to identify individual projects, services, and clients that are supported by HHAP funding (e.g., by creating appropriate HHAP-specific funding sources and project codes in HMIS). 4. Grantee agrees to participate in the statewide data system or warehouse created by Agency to collect local data from California continuums of care through the HMIS, and sign any required data use agreements allowing Agency to access Grantee's HMIS data for that purpose. 5. If Grantee is a continuum of care or a county that accepted redirected funding from a continuum of care, it shall review and execute a data use agreement no later than July 31, 2020, in order to ensure compliance with Health and Safety Code section 50219, subdivision (a)(7) and (10). Grantee's failure to timely execute a data use agreement will constitute a breach of this Agreement. In this event, BCSH, in its sole and absolute discretion, may exercise any and all remedies permitted by this Agreement or by applicable law. Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019 City of Palm Springs 20-HHAP-00064 Page 23 of 23 r Homeless Housing, Assistance and Prevention ! Standard Agreement EXHIBIT E GENERAL TERMS AND CONDITIONS This exhibit is incorporated by reference and made part of this agreement. This document can be viewed at the following link: httpsJ/ ,das.ca.aov/OLS/Resources/Page-Content/Office-of-Legal-Services Resources-List-Folder/Standard-Contract-Lan , uq ane Homeless Housing, Assistance and Prevention Program NOFA Date: December 6, 2019