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HomeMy WebLinkAboutA9032 - TAHQUITZ HOUSING ASSOCIATIONFREE RECORDING REQUESTED BY 2023-0111562 04/19/2023 11:46 AM Fee: $ 0.00 AND WHEN RECORDED MAIL TO: page 1 of 16 Recorded in Official Records Housing Authority of the e gterygl daRiverside City of Palm Springs Assessor -County Clerk -Recorder P.O. Box Springs, 'III I'��I����y'W" ' O N! III Palm Springs, CA 92263 I iAL t1�111Y�{ N1N Attn: Jeff Ballinger, City Attorney (Space Above This Line for Recorder's Office Use Only) This document is recorded at the request and for the benefit of the City of Palm Springs and is exempt from the payment of a recording fee pursuant to Government Code section 27383. AMENDMENT NO.3 TO REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS THIS AMENDMENT NO.3 TO REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS ("Amendment No. 3") is made and entered into as of [ 01&,t h q ], 2023 ("Effective Date"), by and between the HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS, a housing authority of the State of California duly organized and existing under the laws thereof (the "Authority'), the CITY OF PALM SPRINGS, a charter city and municipal corporation (the "gff"), and 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership (the "Owner'). RECITALS: A. The Authority, Corporate Fund for Housing, a California nonprofit public benefit corporation (the "Original Owner"), and Seattle -First National Bank, as trustee, are parties to that certain Regulatory Agreement and Declaration of Restrictive Covenants ("Initial Regulatory Agreement') dated as of September 1, 1993 and recorded on September 30, 1993 in the Official Records of Riverside County, California ("Official Records") as Instrument No. 382200, affecting certain real property located at 2890 East Tahquitz Canyon Way in the City of Palm Springs, County of Riverside, State of California ("Property'). The Initial Regulatory Agreement was executed in connection with the issuance of $3,380,000.00 Housing Authority of the City of Palm Springs Multifamily Housing Mortgage Revenue Bonds (Tahquitz Court Apartments) ("Bonds"), and provides for certain terms, conditions, covenants and restrictions relating to a low income multi -family housing project located on the Property. B. The Initial Regulatory Agreement was modified by that certain Modification of Regulatory Agreement by and among the Original Owner, Tahquitz Housing Associates, LP, a California limited partnership ("Tahouitz Associates"), and the Authority, dated December 15, 2008 and recorded in the I- Official Records on December 19, 2008 as Document No. 2008-0663040 (the "First Modification"). C. The Original Owner assigned all of its right, title, and interest, and its obligations and liabilities under the Regulatory Agreement, as modified by the First Modification, to Tahquitz Associates pursuant to that certain Assignment and Assumption of Regulatory Agreement by and between the Original Owner and Tahquitz Associates, dated as of December 15, 2008 and recorded in the Official Records on December 19, 2008 as Document No. 2008- 0663043 (the "First Assignment"). D. The Initial Regulatory Agreement was further modified by that certain Second Modification of Regulatory Agreement by and between Tahquitz Associates and the Authority dated as of April 10, 2012 and recorded in the Official Records on April 12, 2012 as Document No. 2012-0166753 (the "Second Modification") E. Tahquitz Associates assigned to Owner all of Tahquitz Associates' right, title, and interest, and its obligations and liabilities under the Initial Regulatory Agreement, as modified by the First Modification and the Second Modification, pursuant to that certain Assignment and Assumption of Regulatory Agreement and Declaration of Restrictive Covenants dated as of February 3, 2022 and recorded that same day in the Official Records as Document No. 2022-0059022 ("Second Assignment" and together with the Initial Regulatory Agreement, the First Modification, the Second Modification and the First Assignment, the "Regulatory Agreement"). F. The Bonds have been redeemed and paid in full, and as of the date hereof no Bonds are outstanding. G. The City is a charter city and municipal corporation organized and operating under the laws of the State of California. H. The Authority, the City and Owner desire to modify and extend until September 1, 2026 the Regulatory Agreement as set forth in this Amendment No. 3. Upon the termination of the Regulatory Agreement on September 1, 2026, all restrictions upon the use and operation of the Project and all its dwelling units imposed by the Regulatory Agreement and the concurrently executed Regulatory Agreement and Declaration of Covenants and Restrictions dated September 28, 1993, as amended, made with the Community Redevelopment Agency of the City of Palm Springs and/or the City (the "Agency Regulatory Agreement"), including all rental rate restrictions, shall fully and automatically cease to exist and rental rates for the Project and all its dwellings may be increased to market rate. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, and for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Authority, the City and Owner hereby agree as follows: -2- 1. Recitals. The Regulatory Agreement's fourth recital is hereby amended and restated in its entirety as follows: WHEREAS, the Owner will rent or lease or will hold available for rent or occupancy at Affordable Rents (as herein defined) dwelling units in the Project to individuals or families of lower income, as herein defined, all for the public purpose of assisting such individuals and families to afford the costs of decent, safe and sanitary housing; and 2. Definitions and Interpretations. The definition of City is hereby added to Section I of the Regulatory Agreement as follows: "City" means the City of Palm Springs, a charter city and municipal corporation organized and operating under the laws of the State of California. 3. Definitions and Interpretations. The definition of Qualified Project Period in Section 1 of the Regulatory Agreement is hereby amended and restated in its entirety as follows: "Qualified Project Period" means the period beginning on the first day on which 10% of the dwelling units in the Project were occupied and ending on September 1, 2026. 4. Definitions and Interpretations. The definition of Rightsize is hereby added to Section I of the Regulatory Agreement as follows: "Rightsize" means to relocate to a smaller unit within the Project appropriate to the tenant's family size, without violating any state or local occupancy requirements or regulations. 5. Definitions and Interpretations. The definition of Voluntarily or Freely Vacant is hereby added to Section I of the Regulatory Agreement as follows: "Voluntarily or Freely Vacant" means a unit that becomes vacant for any of the following reasons: (i) voluntarily by the tenant; (ii) due to an eviction based on non-payment of rent; (iii) due to an eviction related to tenant not being eligible or failing to recertify as a Lower -Income Tenant under Section 4(i) of this Regulatory Agreement; or (iv) due to a tenant opting to Rightsize under Section 4(a)(v) of this Regulatory Agreement. 6. Lower -Income Tenants. Section 4(a) and 4(b) of the Regulatory Agreement are hereby amended and restated in its entirety as follows: (a) During the Qualified Project Period or as long as any of the Bonds remain Outstanding, unless unfeasible due to the unit exemptions provided in -3- subsections (i) and (ii) below, 20% of the completed dwelling units in the Project are and will be occupied, or available for occupancy, by Lower -Income Tenants on a continuous basis. (i) The units determined to be Voluntarily and Freely Vacant as of March 9, 2023, listed in Exhibit C, attached hereto and incorporated by reference herein, are fully exempt from the restrictions on Affordable Rents imposed by this Regulatory Agreement or the monthly rent restrictions imposed by the Agency Regulatory Agreement, but not from any other restrictions of this Regulatory Agreement or Agency Regulatory Agreement. (ii) Notwithstanding Section 4(a), when any unit becomes Voluntarily or Freely Vacant, all restrictions on Affordable Rents or monthly rents for such unit, but for no other purposes, imposed by this Regulatory Agreement or the Agency Regulatory Agreement shall fully cease to exist. Prior to any such termination of rental rate restrictions for a unit, City shall have the right to verify the unit became Voluntarily and Freely Vacant in compliance with this Amendment No. 3 and all applicable state and local laws and ordinances. For purposes of City's verification, Owner shall submit a move -out report to City within ten (10) days following vacation of a unit. City shall have fifteen (15) days following its receipt of the move -out report to provide written notice to Owner approving or disapproving the status of the unit as Voluntarily and Freely Vacant. If City fails to deliver notice of its approval or disapproval, City shall be deemed to have approved the status of the unit as Voluntarily and Freely Vacant. In the event the parties are unable to resolve, in good faith, the disputed status of a unit within ninety (90) days following Owner's receipt of City's disapproval notice, the parties shall submit the dispute to binding arbitration, to be held in the Coachella Valley and conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association. (iii) Upon the termination of the Qualified Project Period on September 1, 2026, all restrictions upon the use and operation of the Project and all its dwelling units imposed by this Regulatory Agreement and the Agency Regulatory Agreement, including all rental rate restrictions, shall fully and automatically cease to exist, and rental rates for the Project and all its dwelling units shall be permitted to increase to market rental rates, subject to any restrictions under then applicable state law. (iv) When a unit initially becomes exempt from the rental rate restrictions imposed by this Regulatory Agreement or the Agency Regulatory Agreement as provided by subsections (i), (ii) and (iii) above, the initial unrestricted rental rate set by Owner for such unit, be it for a previous tenant under a new lease or a new tenant, shall not be subject to Palm Springs Municipal Code chapters 4.02, 4.04 and 4.08 ("Rent Control'). During the Qualified Project Period, subsequent establishment of initial rental rates and any increases to existing rental rates for each unit are subject to Rent Control and other applicable law. -4- (v) Owner may request that tenants in Lower -Income Units opt to Rightsize if units with the appropriate number of bedrooms for the household size, in accordance with the definition of Affordable Rents, are available. Notwithstanding anything to the contrary in this Regulatory Agreement, the monthly rent for any tenant that opts not to Rightsize may be increased to the maximum permitted amount of Affordable Rents, and such increase shall not be subject to Rent Control. Any tenant that opts to Rightsize will be assessed a new rental payment based on the size of the new, smaller unit and, during the Qualified Project Period, in compliance with the terms of this Regulatory Agreement. Owner shall be solely responsible for payment of all costs, expenses, and payments required to be made or incurred pursuant to any and all applicable relocation laws and regulations, including, without limitation, the relocation obligations of the California Relocation Assistance Act, Government Code Section 7260, et seq. and the implementing regulations thereto set forth in Title 25, Section 6000, et seq. of the California Code of Regulations. (b) The Owner will not give preference to any particular class or group in renting the dwelling units in the Project except to the extent that dwelling units are required to be occupied or held available for occupancy by Lower -Income Tenants. Tenants in the Lower -Income Units will have equal access to and enjoyment of all common facilities of the Project. All of the dwelling units in the Project shall be leased or rented, or available for lease or rental, to the general public and the Lower -Income Tenants, and, until expiration of the Qualified Project Period, the Owner shall advise the City, the Authority, and any Administrator, Credit Bank, and Trustee by delivery, on a quarterly basis, of a certificate in writing of such designation of Lower -Income Units and of any revisions thereof. Units so designated shall be intermingled throughout the Project with all other dwelling units and shall be of comparable quality and offer a range of sizes and number of bedrooms comparable to units in the Project which are not Lower -Income Units. 7. Lower -Income Tenants: Section 4(d) of the Regulatory Agreement is hereby amended and restated in its entirety as follows: (d) During the Qualified Project Period or as long as any of the Bonds remain Outstanding, subject to the exemptions in Section 4(a), the Owner will rent or lease the Lower -Income Units to Lower -Income Tenants. 8. Lower -Income Tenants: Section 4(i) of the Regulatory Agreement is hereby amended and restated in its entirety as follows: (i) Immediately prior to the first anniversary date of the occupancy of a Lower -Income Unit by one or more Lower -Income Tenants, and on each anniversary date thereafter, the Owner shall recertify the income of the occupants of such Lower -Income Unit by obtaining a completed Certification of Tenant Eligibility based upon the current income of each occupant of the Unit. In the event the recertification demonstrates that such household's income -5- exceeds 140% of the income at which such household would qualify as Lower - Income Tenants, such household will no longer qualify as a Lower -Income Tenant under this Regulatory Agreement. A household that no longer qualifies under the income restrictions of this Regulatory Agreement and that does not qualify under the income restrictions of the Agency Regulatory Agreement shall be required to vacate the Lower -Income Unit upon the expiration of their lease. Owner shall provide the City, the Authority, and any Administrator, Credit Bank, and Trustee with a copy of each such recertification within thirty (30) days of such anniversary. 9. Good Faith Negotiations. After expiration of the Qualified Project Period, City or Authority may request that Owner negotiate in good faith with regard to the consideration to be paid by City or Authority in order to extend affordable restrictions on any units in the Project beyond the expiration of the Qualified Project Period. In entering into such good faith negotiations, no party is or will be deemed to have agreed to any such extension or the price to be paid for any such extension as to any unit unless such an agreement is made in writing and executed by all parties. 10. Settlement. Each of the parties acknowledges that this Amendment No. 3 is for settlement purposes and relates to the avoidance of the fees, costs, expenses, and risks associated with the litigation of potential claims and defenses and the preclusion of any potential actions described herein. Therefore, the parties agree that this Amendment No. 3 is not to be treated or construed, at any time or in any manner whatsoever, as an admission by any party of wrongdoing, fault, violation of law, or liability of any kind, as of the Effective Date, of any allegations or claims arising out of or connected to the Project, the Regulatory Agreement, or Palm Springs Municipal Code chapters 4.02, 4.04, and 4.08. a. Except as set forth in this Amendment No. 3, Owner, on behalf of itself and its successors and assigns, releases City and Authority and their respective council and board members, officials, officers, employees, attorneys, contractors, agents, and representatives from any and all claims, demands, liabilities, obligations, costs, expenses, fees, actions, or causes of action that Owner has or had, as of or prior to the Effective Date, out of or connected to the Project, the Regulatory Agreement, or the implementation, enforcement, or other application of the Palm Springs Municipal Code chapters 4.02, 4.04, and 4.08, whether known, unknown, or suspected. b. Except as set forth in this Amendment No. 3, City and Authority release Owner and its managers, members, officers, employees, contractors, agents, and representatives, from any and all claims, demands, liabilities, obligations, costs, expenses, fees, actions, or causes of action that City or Authority has or had, as of or prior to the Effective Date, arising out of or connected to the Project or the Regulatory Agreement, whether known, unknown, or suspected. IM C. California Civil Code Section 1542. Contingent upon the full completion of the terms of this Amendment No. 3, it is the intention of the parties that the mutual release made herein shall be effective as a bar to all actions, causes of action, obligations, costs, expenses, attorney's fees, damages, losses, claims, liabilities, and demands of any character, nature, and kind, known or unknown, suspected or unsuspected, as of or prior to the Effective Date, regarding the subject matter of this Amendment No. 3; in furtherance of which intention the parties expressly waive any and all right and benefit conferred upon them by the provisions of Section 1542 of the California Civil Code, which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED ARTY." City Authority Owner The parties hereby acknowledge that the foregoing waiver of the provisions of Section 1542 of the California Civil Code was bargained for separately. The parties expressly agree that the release provision herein contained shall be given full force and effect in accordance with each and all of the express terms and provisions herein, including but not limited to those terms and provisions relating to unknown or unsuspected claims, demands, and causes of action hereinabove specified. The parties specifically agree to assume the risk of the subsequent discovery or understanding of any matter, fact, or law which if now known or understood would in any respect have affected this Amendment No. 3 11. Except as otherwise expressly provided in this Amendment No. 3, all of the terms and conditions of the Regulatory Agreement shall remain in full force and effect. 12. In the event of any action between City, Authority and Owner seeking enforcement of any of the terms and conditions to this Amendment No. 3, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation its expert witness fees and reasonable attorney's fees. 13. This Amendment No. 3 shall be construed according to its fair meaning and as if prepared by both parties hereto. 14. This Amendment No. 3 shall be governed by the laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Superior Court of the State of California 110 in and for the County of Riverside shall have exclusive jurisdiction of any litigation between the parties concerning this Amendment No. 3. 15. This Amendment No. 3 may be executed in counterparts, each of which, when this Amendment No. 3 has been signed by all the parties hereto, shall be deemed an original, and such counterparts shall constitute one and the same instrument. 16. The person(s) executing this Amendment No. 3 on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 3 on behalf of said party, (iii) by so executing this Amendment No. 3 such party is formally bound to the provisions of this Amendment No. 3, and (iv) the entering into this Amendment No. 3 does not violate any provision of any other agreement to which such parry is bound. [End — Signature Pages Follow] IM IN WITNESS WHEREOF, the Authority, City and Owner have executed this Amendment No. 3 to Regulatory Agreement and Declaration of Covenants and Restrictions by duly authorized representative on the date first written above. "AUTHORITY" HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS By: Z�� ScoyF C. S+;1e5 Date: 3 �3 20213 ATTEST: AS TO FORM: BEST BEST & KRIEGER, LLP By: Q ewf)/;:� J f�ger City Attorney 12 ACKNOWLEDGEMENT 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 RWPXStO- ) On 'Y1'lavch 23 Z02, before me, GnFg6i �� i C. personally appeared Scott C. (les 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. BAE T W1 WITNESS my hand and official seal. Notary Putilk- California Riverside County F Commission a 2398347 Or Comm. Expires Mar 2a. 2026 Signature ��4- (Seal) 10- ACCEPTED AND AGREED: "CITY" CITY OF PALM SPRINGS, a charter ciZl-, d municipal c rporation By: sc.+- - C . S-F"% <<s CiAN Mo. er Date: 3 ?-3 , 202A,3 ATTEST By: � .� C�y C eA APPROVED AS TO FORM: BEST BEST & KRIEGER, LLP By: Je B linger City Attomey APPROVED BY CITY COUNCIL 3-1 02013 1:4em I.& A70Q ACKNOWLEDGEMENT 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 Ca ornia County of On iY aro1r, 23.r �-0'3 before me, Srenk Fzs.6s i �JaiuXy fublr'a personally appeared &cod-+ C. S+ilQS , 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. BRENT W1 WITNESS my hand and official seal NotaryRud de California �p Riversie County It Commission t 2398347 ry Comm. Expires wr 24. 2026 r Signature (Seal) IN WITNESS WHEREOF, the Authority, City and Owner have executed this Amendment No. 3 to Regulatory Agreement and Declaration of Covenants and Restrictions by duly authorized representative on the date first written above. "OWNER" 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership By: Tahquitz GP LLC, a Delaware limited liability company, its Administrative General Partner By: "" k Elizabeth Hagins Authorized Signatory Date: AArc(. 3 .202� 13- ACKNOWLEDGEMENT 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 J a 5 ) 1 On MWOA'� r� , before me, �ul� l �k �r Nb�M �ub1 C personally appeared kkari G UYJ who proved to me on the basis of satisfactory evtdence 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. SULEIRA MILLER z Ybtary Public - County a WITNESS my hand and official seal. UmIssio PO 23027 C.", E.." a 23U2 . 2 MY Carr. FnveY a.4 2e. 2021 Signature (Seal) i 10- PETER ALDANA Reorder P.O. Box 751 COUNTY OF RIVERSIDE Riverside, CA 92502-0751 ASSESSOR -COUNTY CLERK -RECORDER (951)486-7000 .w..rivcoacr.ore NOTARY CLARITY Under the provisions of Government Code 27361.7, 1 certify under the penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name of Notary: 5 ul e Commission #: Place of Execution 2 3o ) 751 L a's Ari Date Commission Expires: J! t,ou&�� N , 2023 Date: Signature: Print Name: ACR 186(Rev. 07/2013) 2 IN Rat Available in Alternate Formats EXHIBIT "C" TO REGULATORY AGREEMENT Unit Unit Type Description 227 V23.32UU 3 Bedroom 2 Bath 234 V23.32UU 3 Bedroom 2 Bath 137 V23.2hW 2 Bedroom 2 Bath 108 V23.2hDU 2 Bedroom 2 Bath 133 V23.11DU 1 Bedroom 2 Bath 103 V23.22VU 2 Bedroom 1 Bath Very Low Income 230 V23.32UU 3 Bedroom 2 Bath 110 V23.22DU 2 Bedroom 2 Bath 123 V23.32DU 3 Bedroom 2 Bath 243 V23.22UU 2 Bedroom 2 Bath 119 V23.320U 3 Bedroom 2 Bath 235 V23.22VU 2 Bedroom 1 Bath Very Low Income 134 V23.32DU 3 Bedroom 2 Bath 248 V23.22VU 2 Bedroom 1 Bath Very Low Income 129 V23.11DU 1 Bedroom 2 Bath 220 V23.11uu 1 Bedroom 2 Bath 221 V23.11UU 1 Bedroom 2 Bath 250 V23.2hVU 2 Bedroom 1 Bath Very Low Income 124 V23.11VU 2 Bedroom 1 Bath Very Low Income 210 V23.22VU 2 Bedroom 1 Bath Very Low Income 244 V23.2hUU 2 Bedroom 2 Bath NTV = voluntary notice to vacate provided rat qualified = did not succesfrly recertify skipped = vacated voluntarily without notice UnitRent Days Vacant Reason for Vacating 1,760.00 366 skipped 1,760.00 269 skipped 1,584.00 240 not qualified 1,584.00 218 NTV - have notice 1,408.00 214 NTV - have notice 990 214 Eviction 1,760.00 214 not qualified 1,584.00 204 NTV - have notice 1,760.00 188 not qualified 1,422.00 177 NTV - have notice 1,760.00 174 Eviction 990 168 not qualified 1,760.00 165 NTV - have notice 990 l5o not qualified 1,408.00 136 not qualified 1,408.00 122 NTV - have notice 1,408.00 122 NTV - have notice 990 121 not qualified 880 94 NTV - have notice 990 94 NTV - have notice 1,584.00 93 NTV - have notice FREE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Attn: Jeff Ballinger, City Attorney 2023-0111563 04/19/2023 11:46 fill Fee: $ 0.00 Page 1 of 14 Recorded in official Records County of Riverside Peter AWars Assessor -County Clerk -Recorder 11 611?I�k�k�l�lllll (Space Above This Line for Recorder's Office Use Only) This document is recorded at the request and for the benefit of the City of Palm Springs and is exempt from the payment of a recording fee pursuant to Government Code section 27383. AMENDMENT NO. 1 TO REGULATORY AGREEMENT AND DECLARATION OF COVENANTS AND RESTRICTIONS THIS AMENDMENT NO.1 TO REGULATORY AGREEMENT AND DECLARATION OF COVENANTS AND RESTRICTIONS ("Amendment No. 1") is made and entered into as of f I inttrGk 9 1. 2023 ("Effective Date"), by and between the CITY OF PALM SPRINGS a charter city and municipal corporation (the "City" or "Successor Agency"), as the successor agency to the Palm Springs Community Redevelopment Agency, a public body corporate and politic (the "Former Redevelopment Agency'), and 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership (the "Owner"). RECITALS: A. On September 28, 1993, Corporate Fund for Housing, a California nonprofit public benefit corporation (the "Original Owner"), and the Former Redevelopment Agency entered into a Regulatory Agreement and Declaration of Covenants and Restrictions (the "Regulatory Agreement"), recorded in the Official Records of the County of Riverside ("Official Records") as Document No. 382201 on September 30, 1993. The Regulatory Agreement affects certain real property located at 2890 East Tahquitz Canyon Way in the City of Palm Springs, County of Riverside, State of California ("Property'). B. The Original Owner assigned all of its rights, title and interest in the Regulatory Agreement to Tahquitz Housing Associates, LP, a California limited partnership ("Tahauitz Associates"), pursuant to that certain Assignment and Assumption of Loan Documents and the Regulatory Agreement dated as of December 15, 2008 and recorded in the Official Records on December 19, 2008 as Document No. 2008-0663042. C. Tahquitz Associates assigned all of its rights, title and interest in the Regulatory Agreement to Owner pursuant to that certain Assignment and Assumption of Regulatory Agreement and Declaration of Restrictive Covenants 1- dated as of February 3, 2022 and recorded that same day in the Official Records as Document No. 2022-0059021. D. The Successor Agency is a public body corporate and politic, organized and operating under Parts 1.8 and 1.85 of Division 24 of the California Health and Safety Code, and the successor to the Former Redevelopment Agency of the City of Palm Springs that was previously a community redevelopment agency organized and existing pursuant to the Community Redevelopment Law, Health and Safety Code section 33000, et seq. E. Assembly Bill xl 26 ("AB x1 26") chaptered and effective on June 27, 2011 added Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code and which laws were modified, in part, and determined constitutional by the California Supreme Court in California Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. S 194861 ("Matosantos"), which laws and court opinion caused the dissolution of all redevelopment agencies and the winding down of the affairs of the former redevelopment agencies; thereafter, such laws were amended further by Assembly Bill 1484 ("AB 1484") that was chaptered and effective on June 27, 2012 and by Senate Bill 107 ("SB 107") that was chaptered and effective on September 22, 2015 (together, AB xl 26, Matosantos, AB 1484 and SB 107 are referred to as the "Dissolution Laws"). All statutory references herein are to the Health and Safety Code of the Dissolution Laws unless otherwise stated. F. As of February 1, 2012, the Former Redevelopment Agency was dissolved pursuant to the Dissolution Laws. As a separate public entity, corporate and politic, the Successor Agency now administers the enforceable obligations of the Former Redevelopment Agency and otherwise unwinds the Former Redevelopment Agency's affairs. G. The City is a charter city and municipal corporation organized and operating under the laws of the State of California. H. On January 4, 2012, the City Council approved a resolution authorizing the City to become the successor to the Agency and assume all rights, powers, obligations, assets, and duties associated with housing activities in accordance with Cal. Health and Safety Code §34176. I. The City and Owner desire to modify and extend until September 1, 2026 the Regulatory Agreement as set forth in this Amendment No. 1. Upon the termination of the Regulatory Agreement on September 1, 2026, all restrictions upon the use and operation of the Project and all its dwelling units imposed by the Regulatory Agreement and Regulatory Agreement and Declaration of Restrictive Covenants dated as of September 1, 1993, as amended, made with the Former redevelopment Agency and/or the City (the "Bond Regulatory Agreement"), including all rental rate restrictions, shall fully and automatically cease to exist and rental rates for the Project and all its dwellings may be increased to market rate. -2- NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, and for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and Owner hereby agree as follows: 1. Definitions. Section 1.9 of the Regulatory Agreement is hereby amended and restated in its entirety as follows: 1.9 "Oualified Project Period" - means the period starting with the recordation of the Certificate of Completion and ending on September 1, 2026. 2. Definitions. Section 1.13 is hereby added to the Regulatory Agreement as follows: 1.13 "CW" means the City of Palm Springs, a charter city and municipal corporation organized and operating under the laws of the State of California, the successor agency to the Agency. 3. Definitions. Section 1.14 is hereby added to the Regulatory Agreement as follows: 1.14 "Ri tsize" - means to relocate to a smaller unit within the Project appropriate to the tenant's family size, without violating any state or local occupancy requirements or regulations 4. Definitions. Section 1.15 is hereby added to the Regulatory Agreement as follows: 1.15 "Voluntarily or Freely Vacant" - means a unit that becomes vacant for any of the following reasons: (i) voluntarily by the tenant; (ii) due to an eviction based on non-payment of rent; (iii) due to an eviction related to tenant not being eligible or failing to recertify as a Low Income Tenant under Section 3(c) of this Regulatory Agreement; or (iv) due to a tenant opting to Rightsize under Section 3(a)(4) of this Regulatory Agreement. 5. Residential Rental Property. Section 2 of the Regulatory Agreement, excluding Sections 2(a)-2(g), which remain unchanged, is hereby amended and restated as follows: The Developer hereby acknowledges and agrees that, until the expiration of the Qualified Project Period, all dwelling units in the Project not exempted from the restrictions of this Regulatory Agreement under the paragraphs below shall be rented such that, to the best of Developer's ability, forty percent (40%) of such units shall be made available to Very Low Income Tenants and sixty percent (60%) of such units shall be made available to Low Income Tenants. The units determined to be Voluntarily and Freely Vacant as of March 9, 2023, listed in Exhibit 5, attached hereto and incorporated by reference herein, are fully exempt from the monthly rent restrictions imposed by this Regulatory 591 Agreement or the Bond Regulatory Agreement, but not from any other restrictions of this Regulatory Agreement or Bond Regulatory Agreement. Notwithstanding the first paragraph in Section 2 above, when any unit becomes Voluntarily or Freely Vacant, all restrictions on monthly rent for such unit, but for no other purposes, imposed by this Regulatory Agreement or the Bond Regulatory Agreement shall fully cease to exist. Prior to any such termination of rental rate restrictions for a unit, City shall have the right to verify the unit became Voluntarily and Freely Vacant in compliance with this Amendment No. 1 and all applicable state and local laws and ordinances. For purposes of City's verification, Developer shall submit a move -out report to City within ten (10) days following vacation of a unit. City shall have fifteen (15) days following its receipt of the move -out report to provide written notice to Developer approving or disapproving the status of the unit as Voluntarily and Freely Vacant. If City fails to deliver notice of its approval or disapproval, City shall be deemed to have approved the status of the unit as Voluntarily and Freely Vacant. In the event the parties are unable to resolve, in good faith, the disputed status of a unit within ninety (90) days following Developer's receipt of City's disapproval notice, the parties shall submit the dispute to binding arbitration, to be held in the Coachella Valley and conducted pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Upon the termination of the Qualified Project Period on September 1, 2026, all restrictions upon the use and operation of the Project and all its dwelling units imposed by this Regulatory Agreement and the Bond Regulatory Agreement, including all rental rate restrictions, shall fully and automatically cease to exist, and rental rates for the Project and all its dwelling units shall be permitted to increase to market rental rates, subject to any restrictions under then applicable state law. When a unit becomes exempt from the restrictions imposed by this Regulatory Agreement or the Bond Regulatory Agreement as provided by the paragraphs above, the initial unrestricted rental rate set by Developer, be it for a previous tenant under a new lease or a new tenant, shall not be subject to Palm Springs Municipal Code chapters 4.02, 4.04 and 4.08 ("Rent Control'). During the Qualified Project Period, subsequent establishment of initial rental rates and any increases to existing rental rates for each unit are subject to Rent Control and other applicable law. 6. Very Low Income and Low Income Tenants: Section 3(a), excluding Sections 3(a)(2) and 3(a)(3), which remain unchanged, of the Regulatory Agreement is hereby amended and restated in its entirety and Section 3(a)(4) is hereby added as follows: (a) During the Qualified Project Period: -4- (1) Forty percent (40%) of the units in the Project not exempted from the restrictions of this Regulatory Agreement by Section 2 above shall be designated as Very Low Income Units and shall be continuously occupied by Very Low Income Tenants. Sixty percent (60%) of the units in the Project not exempted from the restrictions of this Regulatory Agreement by Section 2 above shall be designated as Low Income Units and shall be continuously occupied by Low Income Tenants. Such Very Low Income Units and Low Income Units shall be distributed throughout the Project, be of comparable quality as the exempt units, and to the best of Developer's ability, offer a number of bedrooms and range of sizes proportionate to that found in the total units in the Project. Any reasonable deviation from the required 40%60% split between Very Low Income Units versus Low Income Units resulting from permitted exemptions pursuant to Section 2 above shall not be a violation of this Regulatory Agreement. (4) Developer may request that tenants in Low Income Units and Very Low Income Units opt to Rightsize if units with the appropriate number of bedrooms for the household size, in accordance with Sections 3(a)(2) and 3(a)(3) of this Regulatory Agreement, are available. Notwithstanding anything to the contrary in this Regulatory Agreement, the monthly rent for any tenant that opts not to Rightsize may be increased to the maximum permitted amount for a Very Low Income Unit or Low Income Unit, as applicable, under Sections 3(a)(2) and 3(a)(3) of this Regulatory Agreement, and such increase shall not be subject to Rent Control. Any tenant that opts to Rightsize will be assessed a new rental payment based on the size of the new, smaller unit and, during the Qualified Project Period, in compliance with the terms of this Regulatory Agreement. Developer shall be solely responsible for payment of all costs, expenses, and payments required to be made or incurred pursuant to any and all applicable relocation laws and regulations, including, without limitation, the relocation obligations of the California Relocation Assistance Act, Government Code Section 7260, et seq. and the implementing regulations thereto set forth in Title 25, Section 6000, et seq. of the California Code of Regulations. A unit occupied by a Very Low Income Tenant or a Low Income Tenant who at the commencement of the occupancy is a Very Low Income Tenant or a Low Income Tenant, respectively, shall be treated as occupied by a Very Low Income Tenant or a Low Income Tenant, respectively, until a recertification of such tenant's income in accordance with Section 3(c) below demonstrates that such tenant no longer qualifies as a Very Low Income Tenant or a Low Income Tenant. A unit previously occupied by a Very Low Income Tenant or a Low Income Tenant and then vacated shall be considered occupied by a Very Low Income Tenant or a Low Income Tenant until reoccupied. 7. Very Low Income and Low Income Tenants: Section 3(c) of the Regulatory Agreement is hereby amended and restated in its entirety as follows: -5- (c) Immediately prior to the first anniversary date of the occupancy of a Very Low Income Unit or Low Income Unit by one or more Very Low Income Tenants or Low Income Tenants, respectively, and on each anniversary date thereafter, the Developer shall recertify the income of the occupants of such Very Low Income Unit or Low Income Unit by obtaining a completed Income Computation and Certification based upon the current income of each occupant of the unit. In the event the recertification demonstrates that such household's income exceeds one hundred forty percent (140%) of the income at which such household would qualify as Very Low Income Tenants or Low Income Tenants, such household will no longer qualify as a Very Low Income Tenant or Low Income Tenant; provided that, however, if the occupants were qualified as Very Low Income Tenants, then the occupants will be qualified as Low Income Tenants, if the occupants satisfy the requirements specified in Section 3(a)(3) above upon recertification. If the occupants do not qualify as Low Income Tenants, then the lease shall not be renewed and said occupants shall be required to vacate the unit upon the expiration of the lease. Developer shall provide the City with a copy of each such recertification with the next submission of Certificate of Continuing Program Compliance pursuant to Section 3(d). 8. Compliance With Ordinances: Section 5.1 of the Regulatory Agreement is hereby amended and restated in its entirety as follows: 5.1 Declarant shall comply with all ordinances, regulations and standards of the City that are applicable to the Property. As provided in Section 2, however, the initial unrestricted rental rates set by the Developer following unit exemption shall not be subject to Rent Control. Increases to the amount of monthly rent as permitted by Section 3(a)(4) for refusal to Rightsize shall not be subject to Rent Control. 9. Good Faith Negotiations. After expiration of the Qualified Project Period, Successor Agency or City may request that Owner negotiate in good faith with regard to the consideration to be paid by Successor Agency or City in order to extend affordable restrictions on any units in the Project beyond the expiration of the Qualified Project Period. In entering into such good faith negotiations, no party is or will be deemed to have agreed to any such extension or the price to be paid for any such extension as to any Unit unless such an agreement is made in writing and executed by all parties. 10. Settlement. Each of the parties acknowledges that this Amendment No. I is for settlement purposes and relates to the avoidance of the fees, costs, expenses, and risks associated with the litigation of potential claims and defenses and the preclusion of any potential actions described herein. Therefore, the parties agree that this Amendment No. 1 is not to be treated or construed, at any time or in any manner whatsoever, as an admission by any party of wrongdoing, fault, violation of law, or liability of any kind, as of the Effective Date, of any allegations or claims arising out of or connected to the 0 Project, the Regulatory Agreement, or Palm Springs Municipal Code chapters 4.02, 4.04,and 4.08. a. Except as set forth in this Amendment No. 1, Owner, on behalf of itself and its successors and assigns, releases City and its council members, officials, officers, employees, attorneys, contractors, agents, and representatives from any and all claims, demands, liabilities, obligations, costs, expenses, fees, actions, or causes of action that Owner has or had, as of or prior to the Effective Date, out of or connected to the Project, the Regulatory Agreement, or the implementation, enforcement, or other application of the Palm Springs Municipal Code chapters 4.02, 4.04, and 4.08, whether known, unknown, or suspected. b. Except as set forth in this Amendment No. 1, City releases Owner and its managers, members, officers, employees, contractors, agents, and representatives, from any and all claims, demands, liabilities, obligations, costs, expenses, fees, actions, or causes of action that City has or had, as of or prior to the Effective Date, arising out of or connected to the Project or the Regulatory Agreement, whether known, unknown, or suspected. C. California Civil Code Section 1542. Contingent upon the full completion of the terms of this Amendment No. 1, it is the intention of the parties that the mutual release made herein shall be effective as a bar to all actions, causes of action, obligations, costs, expenses, attomy's fees, damages, losses, claims, liabilities, and demands of any character, nature, and kind, known or unknown, suspected or unsuspected, as of or prior to the Effective Date, regarding the subject matter of this Amendment No. 1; in furtherance of which intention the parties expressly waive any and all right and benefit conferred upon them by the provisions of Section 1542 of the California Civil Code, which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY." City Owner The parties hereby acknowledge that the foregoing waiver of the provisions of Section 1542 of the California Civil Code was bargained for separately. The parties expressly agree that the release provision herein contained shall be given full force and effect in accordance with each and all of the express terms and provisions herein, including but not limited to those terms and provisions relating to unknown or unsuspected claims, demands, and causes of action hereinabove specified. The parties specifically agree to assume the risk of the subsequent discovery or understanding of ere any matter, fact, or law which if now known or understood would in any respect have affected this Amendment No. 1 11. Except as otherwise expressly provided in this Amendment No. 1, all of the terms and conditions of the Regulatory Agreement shall remain in full force and effect. 12. In the event of any action between City and Owner seeking enforcement of any of the terms and conditions to this Amendment No. 1, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation its expert witness fees and reasonable attorney's fees. 13. This Amendment No. 1 shall be construed according to its fair meaning and as if prepared by both parties hereto. 14. This Amendment No. 1 shall be governed by the laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Superior Court of the State of California in and for the County of Riverside shall have exclusive jurisdiction of any litigation between the parties concerning this Amendment No. 1. 15. This Amendment No. 1 may be executed in counterparts, each of which, when this Amendment No. 1 has been signed by all the parties hereto, shall be deemed an original, and such counterparts shall constitute one and the same instrument. 16. The person(s) executing this Amendment No. 1 on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1 such party is formally bound to the provisions of this Amendment No. 1, and (iv) the entering into this Amendment No. 1 does not violate any provision of any other agreement to which such party is bound. FT IN WITNESS WHEREOF, the City and Owner have executed this Amendment No. 1 to Regulatory Agreement and Declaration of Covenants and Restrictions by duly authorized representative on the date first written above. "CITY" CITY OF PALM SPRINGS, a charter city aV municipal co poration By: / 5c-.i+ C . eS Date: ?i z-3 , 20213 ATTEST: 0 By: Sre�wla Prce, C,*- GlerK APPROVED AS TO FORM: BEST BEST & KRIEGER, LLP By: <2w,)� / Je�Bal m e City Attorney APPROVED BY CITY COUNCIL 3-q ;2oz3 Ljtt l . G A1032 9- ACKNOWLEDGEMENT 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 Riyersiae, ) On Warck 23 r :1023, before me, rev,+ RAb• , �JO+ixXq P"IiC, personally appeared ±: e+ - C. S+r k5 , 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. BRENi RASi WITNESS my hand and official seal. Nocayvuhrio California _ Riverside County 0 Commission R 23983e7 My Comm. Expires Mar 24, 2026 Signature (Seal) -10- IN WITNESS WHEREOF, the City and Owner have executed this Amendment No. 1 to Regulatory Agreement and Declaration of Covenants and Restrictions by duly authorized representative on the date first written above. "OWNER" 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership By: Tahquitz GP LLC, a Delaware limited liability company, its Adminissttrnati_ve- General Partner By: Elizabeth Magins Authorized Signatory Date: N�/lyd�` 3 , 202. 11- ACKNOWLEDGEMENT 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 'U AAA) 1 On M44 I fhll , before me, MN i6 WfUU iNO�M Qu�W( personally appeared fikfuutfM 1-10.ty V , 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. ---- h L (AM �. I Signature (Seal) -10- PETER ALDANA R P.00.. BBoxox 751 COUNTY OF RIVERSIDE Riverside, CA 92502-0751 ASSESSOR -COUNTY CLERK -RECORDER (951)486-7000 www.rivcoacr.ore NOTARY CLARITY Under the provisions of Government Code 27361.7, 1 certify under the penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name of Notary: Sln�el Ka.(Il(;` Commission #: 2 -2.a 0 2-75 l Place of Execution: Date Commission Expires: UI U,6+ 2 `9 , 202 3 Date: Signature: Print Name: ACR 186 (Rev. 07/2013) Available in Alternate Formats Unit Unit Type Description 227 V23.32UU 3 Bedroom 2 Bath 234 V23.321.11.1 3 Bedroom 2 Bath 137 V23.2hDU 2 Bedroom 2 Bath 108 V23.2hDU 2 Bedroom 2 Bath 133 V23.11DU 1 Bedroom 2 Bath 103 V23.22VU 2 Bedroom 1 Bath Very Low Income 230 V23.32UU 3 Bedroom 2 Bath 110 V23.22DU 2 Bedroom 2 Bath 123 V23.32DU 3 Bedroom 2 Bath 243 V23.22UU 2 Bedroom 2 Bath 119 V23.321U 3 Bedroom 2 Bath 235 V23.22VU 2 Bedroom 1 Bath Very Low Income 134 V23.32DU 3 Bedroom 2 Bath 248 V23.22VU 2 Bedroom 1 Bath Very Low Income 129 V23.11DU 1 Bedroom 2 Bath 220 V23.iiuu 1 Bedroom 2 Bath 211 v23.11UU 1 Bedroom 2 Bath 250 V23.2hVU 2 Bedroom 1 Bath Very Low Income 124 V23.IIVU 2 Bedroom 1 Bath Very Low Income 210 V23.22VU 2 Bedroom 1 Bath Very Low Income 244 V23.2hUU 2 Bedroom 2 Bath NTV = voluntary notice to vacate provided not qualified = did not succesfuly recertify skipped = vacated voluntarily without notice Unit Rent Days Vacant Reason for Vacating 1,760.00 366 skipped 1,760.00 269 skipped 1,584.00 24o not qualified 1,5B4.00 218 NTV - have notice 1,408.00 214 NTV - have notice 990 214 Eviction 1,760.00 214 not qualified 1,594.00 204 NTV - have notice 1,760.00 188 not qualified 1,422.00 177 NTV - have notice 1,760.00 174 Eviction 990 168 not qualified 1,760.00 165 NTV - have notice 990 15o not qualified 1,408.00 136 not qualified 1,408.00 122 NTV - have notice 1,408.00 122 NTV - have notice 990 121 not qualified 880 94 NTV - have notice 990 94 NTV - have notice 1,584.00 93 NTV - have notice Raording Requested By: Feat American Title Insurance Company National Commercial Services, Ontario, CA NCB,-qi�7 ctrizo-5-fv PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: First American Title Insurance Company AND WHEN RECORDED MAIL TO: AND MAIL TAX STATEMENTS TO: Housing Authority of the City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 DOC # 2022-0059022 02/03/2022 04:46 PM Fees: $97.00 Page 1 of 16 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: DEYANIRA #293 Space above this line for recorder's use only ASSIGNMENT AND ASSUMPTION OF REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS Title of Document AIW: Set— /y3 —ooy— S' TRA: 011-003 DT7: 0.00 Exemption reason declared pursuant to Government Code 27388.1 ❑ This document is a transfer that Is subject to the Imposition of documentary transfer tax. ❑ This is a document recorded in connection with a transfer that is subject to the Imposition of documentary transfer tax. Document reference: CONCURRENTLY HEREWITH ❑ This document Is a transfer of real property that is a residential dwelling to an owner - occupier. This is a document recorded in connection with a transfer of real property that Is a residential dwelling to an owner -occupier. Document reference: THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ($3.00 Additional Recording Fee Applies) ACR 238 (Rev. 0112018) Available In Alternate Fomiats Recording Requested By. First American Title Insurance Company National Commercial services, Ontario, CA 0C;—C! j ClC1Zo-5ftI PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: First American Title Insurance Company AND WHEN RECORDED MAIL TO: AND MAIL TAX STATEMENTS TO: Housing Authority of the City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Space above this line for recorders use only ASSIGNMENT AND ASSUMPTION OF REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS Title of Document Aiw: Soz-- iy3 -ooy- f 011-003 DTT: 0.00 Exemption reason declared pursuant to Government Code 27388.1 This document is a transfer that is subject to the imposition of documentary transfer tax. This is a document recorded in connection with a transfer that is subject to the imposition ❑ of documentary transfer tax. Document reference: CONCURRENTLY HEREWITH ❑ This document is a transfer of real property that is a residential dwelling to an owner - occupier. This is a document recorded in connection with a transfer of real property that is a Elresidential dwelling to an owner -occupier. Document reference: THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ($3.00 Additional Recording Fee Applies) ACR 238 (Rev. 01/2018, Available r) Alternale Formals RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Housing Authority of the City of Palm Springs City Clerk PO Box 2743 Palm Springs, CA 92263 [SPACE ABOVE THIS LINE FOR RECORDER'S USE] ASSIGNMENT AND ASSUMPTION OF REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS This Assignment and Assumption of Regulatory Agreement and Declaration of Restrictive Covenants ("Assignment"), is entered into as of February 3, 2022 (the "Effective Date"), by and among TAHQUITZ HOUSING ASSOCIATES, LP, a California limited partnership ("Assignor"), 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership ("Assignee"), and the HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic (the "Authority"), with reference to the following: A. WHEREAS, Assignor is the owner of that certain multifamily housing development located on that certain real property located in Riverside County, California as described on Exhibit A attached hereto (the "Project"). B. WHEREAS, Authority, Corporate Fund for Housing, a California nonprofit public benefit corporation (the "Previous Owner") and Seattle -First National Bank, as trustee, were parties to that certain Regulatory Agreement and Declaration of Restrictive Covenants (the "Initial Regulatory Agreement") dated as of September 1, 1993 and recorded in the official records of Riverside County (the "Official Records") on September 30, 1993 as Document No. 382200. C. WHEREAS, the Initial Regulatory Agreement was executed in connection with the issuance of $3,380,000 of those certain Housing Authority of the City of Palm Springs Multifamily Housing Mortgage Revenue Bonds (Tahquitz Court Apartments) (the "Bonds"), which Bonds were issued on September 1, 1993 (the "Issue Date"). D. WHEREAS, the Initial Regulatory Agreement was modified by that certain Modification of Regulatory Agreement by and among the Previous Owner, the Assignor, and the Authority, dated December 15, 2008 and recorded in the Official Records on December 19, 2008 as Document No. 2008-0663040 (the "First Modification"), pursuant to which the Authority (i) approved the transfer of the Project to Assignor, (ii) permitted ownership of the Project by a limited partnership with a managing general partner that is a Qualifying Section 501(c)(3) Organization, and (iii) incorporated the terms of a rider to the Initial Regulatory Agreement by the Federal Home Loan Mortgage Company ("Freddie Mac" and the rider, the "Freddie Mac 50268440.3 Rider") in connection with Previous Owner's loan of $4,326,000 from Capmark Bank and Freddie Mac. E. WHEREAS, the Previous Owner (i) transferred all of its rights, title and interest in the Project to the Assignor and (ii) assigned the Initial Regulatory Agreement, as modified by the First Modification to the Assignor pursuant to that certain Assignment and Assumption of Regulatory Agreement by and between the Previous Owner and the Assignor, dated as of December 15, 2008 and recorded in the Official Records on December 19, 2008 as Document No. 2008-0663043 (the "First Assignment"). F. WHEREAS, the Initial Regulatory Agreement was further modified by that certain Second Modification of Regulatory Agreement by and between Assignor and the Authority dated as of April 10, 2012 and recorded in the Official Records on April 12, 2012 as Document No. 2012-0166753 (the "Second Modification" and together with the Initial Regulatory Agreement, the First Modification and the First Assignment, the "Regulatory Agreement"). G. WHEREAS, the Previous Owner transferred all of its rights, title and interest in the Project to the Owner, and the Owner is the current fee owner of the Project. H. WHEREAS, the Bonds have been redeemed and paid in full, and as of the date hereof no Bonds are outstanding. I. WHEREAS, Assignor wishes to sell the Project to Assignee concurrently herewith, and Assignor wishes to assign all of its right, title, and interest in and to, and all of its obligations under, the Regulatory Agreement, and Assignee wishes to assume all of the Assignor's right, title, and interest in and to, and all of Assignor's obligations under the Regulatory Agreement. NOW THEREFORE, for good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 1. Terms. Terms not defined herein shall have the meaning ascribed to them in the Regulatory Agreement. 2. Assignment of Agreement. As of the Effective Date, Assignor hereby assigns to Assignee all of its right, title, and interest, and its obligations and liabilities under the Regulatory Agreement. 3. Assumption. Assignee hereby accepts such assignment effective as of the Effective Date, and assumes and agrees to perform all of Assignor's liabilities, obligations, covenants, agreements, terms, provisions, and conditions under the Regulatory Agreement to the extent accruing from and after the Effective Date. 4. Representations of Parties. Each of the Assignor and the Assignee represents, each with respect only to itself, as of the date hereof, as follows: 2 50288"0.3 (a) It is duly organized and existing under the laws of the jurisdiction of its organization, with full power and authority to execute and deliver this Assignment, to enter into the transactions contemplated hereby and to perform all the duties and obligations to be performed by it hereunder; (b) It has duly authorized this Assignment and the transactions contemplated hereby and the performance of all the duties and obligations to be performed by it hereunder by all necessary governmental, corporate and/or partnership action; (c) It has duly executed and delivered this Assignment and this Assignment constitutes its valid, legal and binding obligation enforceable against it in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization or similar laws or equitable principles relating to or limiting creditors' rights generally; and (d) The execution and delivery of this Assignment and the performance of the transactions on its part contemplated hereby will not violate any agreement by which it is bound or to which it or any of its assets are affected, or its organizational documents or any statute, regulation, rule, order, or judgment applicable to it. 5. Release of Assignor. The Authority and the Assignee hereby agree that from and after the Effective Date, Assignee shall be released from all obligations, duties, and liabilities arising under the Regulatory Agreement after the Effective Date. 6. Qualified Proiect Period. The Qualified Project Period shall terminate thirty (30) years from the Issue Date on September 1, 2023. 7. Notices. The parties hereto hereby agree that from and after the Effective Date the address for notices to the "Owner" under the Regulatory Agreement is and shall be as follows: 2990 Tahquitz Canyon Way LP 4525 Wilshire Blvd., Suite #210 Los Angeles, CA 90010 Attention: Legal Notices 8. Consent. Authority hereby consents to the assignment and assumption set forth in this Assignment. 9. Successors and Assigns. This Assignment shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto. 10. Miscellaneous. (a) This Assignment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together, shall constitute one and the same instrument. 3 50268440.3 (b) This Assignment shall be binding on and inure to the benefit of the respective successors and assigns of the parties. (c) The parties agree to execute and deliver all documents required or reasonably deemed necessary by any party to this Assignment, at the expense of the Assignee. (d) The terms and conditions contained herein shall not be construed in favor of or against any party, but shall be construed as if all parties prepared this Assignment. (e) The "Effective Date" of this Assignment shall be the date it is recorded in the Official Records. (f) This Assignment shall be construed and enforced in accordance with and governed by the laws of the State of California, applicable to contracts made and performed in California. [Remainder of page intentionally left blank; signatures on next page] n 50288440.3 AUTHORITY: HOUSING AUTHORITY OF THE CITY OF PALM SPRINGS, a public bond corporate and politic By: ( & Name: Title: Un Ago3z ATTEST: 0 50268W.1 IN WITNESS WHEREOF, the undersigned have executed this Assignment effective as of the date first written above. ASSIGNOR: TAHQUITZ ASSOCIATES, LP, a California limited partnership By: LINC-Tahquitz LLC a California limited liability company, its aging gen r partner By: Retie.cca i . ClaaK, Ru+hart,ard S yr.0 2 By: Tahquitz Associates, LLC, a California limited liability company, its co -general partner By: Dalton Hydro, LLC, a Vermont limited liability company, its manager By: S.R.C. Corp., a Utah corporation, its manager By: COUNTERPART By: Rocky Mountain Engineering, Inc., a Utah corporation By: COUNTERPART ASSIGNEE: 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership By: Tahquitz GP LLC, a Delaware liability company, its Administrative General Partner By: COUNTERPART Elizabeth Hagins, Its Authorized Representative IN WITNESS WHEREOF, the undersigned have executed this Assignment effective as of the date first written above. ASSIGNOR: TAHQUITZ ASSOCIATES, LP, a California limited partnership By: LILAC-Tahquitz LLC a California limited liability company, its managing general partner E REM By: Tahquitz Associates, LLC, a California limited liability company, its co -general partner By: Dalton Hydro, LLC, a Vermont limited liability company, its manager By: S.R.C. Corp., a Utah corporation, its manager By: Skpher, Na rKScn, hu}hu¢�zeo(S,�rw�2 By: Rocky Mountain Engineering, Inc., a Utah corporation By: COUNTERPART ASSIGNEE: 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership By: Tahquitz GP LLC, a Delaware liability company, its Administrative General Partner By: COUNTERPART Elizabeth Hagins, Its Authorized Representative IN WITNESS WHEREOF, the undersigned have executed this Assignment effective as of the date first written above. ASSIGNOR: TAHQUITZ ASSOCIATES, LP, a California limited partnership By: LINC-Tahquitz LLC a California limited liability company, its managing general partner MINN 0 ► �� By: Tahquitz Associates, LLC, a California limited liability company, its co -general partner By: Dalton Hydro, LLC, a Vermont limited liability company, its manager By: S.R.C. Corp., a Utah corporation, its manager 0 By: Rocky Mountain Engineering, Inc., a Utah corpopt an—) / frRN ry. G,�ct�s�`� Ru+noQ�zed S�yt�o2 ASSIGNEE: 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership By: Tahquitz GP LLC, a Delaware liability company, its Administrative General Partner By: COUNTERPART Elizabeth Hagins, Its Authorized Representative IN WITNESS WHEREOF, the undersigned have executed this Assignment effective as of the date first written above. ASSIGNOR: TAHQUITZ ASSOCIATES, LP, a California limited partnership By: LINC-Tahquitz, LLC, a California limited liability company, its General Partner By: LINC Housing Corporation, a California nonprofit public benefit corporation, its sole Member and sole Manager By: Name: Its: COUNTERPART By: Tahquitz Associates, LLC, a California limited liability company, its General Partner By: Dalton Hydro, LLC, a Vermont limited liability company, its Member By: S.R.C. Corp., a Utah corporation, its Manager By: COUNTERPART Steve Harmsen, its President By: Rocky Mountain Engineering, Inc., a Utah corporation, its Member By: COUNTERPART Ryan B. Evershed, its President ASSIGNEE: 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership By: Tahquitz GP LLC, a Delaware limited liability company, its Administrative General Partner By: Elizabeth Hagins, its Authorized Representative S-1 Tahquitz Court: Assignment and Assumption of Housing Authority Regulatory Agmt 50268440 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 ) QQ� )SS. COUNTY OF /L/l/CrSi AEG ) On Dee--. .r-' 9 . ���/, before me, /.t 7Z2- a Notary Public in and for said State, personally appeared, '✓ �s /i • `fo , 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(ies) 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. W SS my hand and official seal. Signature of Notary Publi ------------- TERRI HINTZ Notary Public • California - Riverside County_ ` Commission 9 2359495 My Comm. Expires Jun 26, 2025 [SEAL] Tahquitz Court Assignment and Assumption of Housing Authority Regulatory Agmt 50268440 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 ) COUNTYOF Los ghgtACJ )SS.) On 5ohLAPr3 19 aOa'J before me,-.-Wt(5on allotary Public in and foi said State, personally appeared, R c becoot 1= . C Loyk , 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(ies) 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 of Notary Public R. WIL50N Notary public - California ^: c Los Angeles County _ Commission a 2253419 My Comm. Expires Aug 10, 2022 [SEAL] TahquirU Court Assignment and Assumption of Housing Authority Regulatory Agmt 5026e440 1 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. u STATE OF @0EHF0Fd4I2k ) )SS. COUNTY OF`Sg#/,ake ) On �/PCPmhPY ;o2dd/,beforeme, Alit 12 _ Aorle-rlsart ,aNotary Public in and for said State, personally appeared, 4 nkef? _ r msc- N , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) istare 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(ies) 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 of Notary Public ANITA R, `COMMISSION# 709713 COMM. EXP. 12.17-2023 Tahqudz Court: Assignment and Assumption of Housing Authority Regulatory Agmt 50268440.1 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 CAA ) COUNTY OF IVY ))SS. On �(AAQCAYIA,before me, Z a Notary Public in and for sai State, personally appeared, who proved to me on the basis of satisfactory evidence to be the p son(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(ies) upon behalf of which the person(s) acted, execp�ed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of -A {{C�lif�erT is a that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ignat fNotary Vublic �vpe}�•, MEGHAN WRIGHT TARY IVTAH OS COMMISSIONS 715034 `9 COMMISSIONS COMM. DR tt-05-2024 Taliquitz Court: Assignment and Aawmption of Housing Auttodty Regulatory Agml 50268440.1 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 ) )SS. COUNTY OF LM ) On �J.hIu 5N ICY before me, �4V , a Notary Public in and fo said aid State, personally appeared, C t\f who proved to me on the basis of satisfactory evidence to be the person(s) whosF 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(ies) 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. SULEI"MILLER WITNESS m hand and official seal. Nera y Peer aloe eta Y oa •n9 les County Commbslon + 3303151 'MY COmr.. Earn M4 3+. 30Z7 Signature of Notary Public [SEAL] Tahquitz Court: Assignment and Assumption of Housing Authority Regulatory Agmt 50268440 EXHIBIT A LEGAL DESCRIPTION LOT 15 IN SECTION 13, TOWNSHIP 4 SOUTH, RANGE 4 EAST, SAN BERNARDINO MERIDIAN, AS PER MAP OF PALM VALLEY COLONY LANDS, IN THE CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, RECORDED IN BOOK 14, PAGE 652 OF MAPS. SAN DIEGO COUNTY RECORDS. EXCEPT THE PORTION LYING NORTH OF THE SOUTH LINE OF ENCHANTED HOMES UNIT NO. 1, RECORDED IN BOOK 34, PAGE 17 OF MAPS, RIVERSIDE COUNTY RECORDS. SAID PROPERTY IS SHOWN ON RECORD OF SURVEY ENTITLED "RECORD OF SURVEY OF A PORTION OF LOT 1 OF SECTION 13, TOWNSHIP 4 SOUTH, RANGE 4 EAST, SAN BERNARDINO MERIDIAN, AS SHOWN BY MAP OF PALM VALLEY COLONY LANDS, AS RECORDED IN BOOK 14, PAGE 652 OF MAPS SAN DIEGO COUNTY RECORDS" ON FILE IN BOOK 33, PAGE 77. RECORDS OF SURVEY RIVERSIDE COUNTY RECORDS. 50268440.1 Recording Requested By: First American Title Insurance Company National Commercial Services, Ontario, CA NCS—g5rl-_7 -S ( PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: First American Title Insurance Company AND WHEN RECORDED MAIL TO: AND MAIL TAX STATEMENTS TO: The City of Palm Springs City Clerk P.O. Box 2743 Palm Springs, CA 92263 DOC t12022-0059021 02/03/2022 04:46 PM Fees: $94.00 Page 1 of 15 Recorded in Official Records County of Riverside Peter Adana Assessor -County Clerk -Recorder "This document was electronically submitted to the County of Riverside for recording" Receipted by: DEYANIRA #293 Space above this line for recorder's use only ASSIGNMENT AND ASSUMPTION OF REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS Title of Document TRA: 011-ao3 DTT: 0.00 Exemption reason declared pursuant to Government Code 27388.1 This document is a transfer that is subject to the Imposition of documentary transfer tax. ❑ This is a document recorded In connection with a transfer that Is subject to the Imposition of documentary transfer tax. Document reference: CONCURRENTLY HEREWITH ❑ This document Is a transfer of real property that is a residential dwelling to an owner - occupier. This is a document recorded in connection with a transfer of real property that is a residential dwelling to an owner -occupier. Document reference: THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ($3.00 Additional Recording Fee Applies) ACR 238 (Rev. 0112018) Available in Alternate Formats Recording Requested By: First American Tide Insurance Company National Commercial Services, Ontario, CA N cs-q"C722o -S ( PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: First Amerimn Title Insurance Company AND WHEN RECORDED MAIL TO: AND MAIL TAX STATEMENTS TO: The City of Palm Springs City Clerk P.O. Box 2743 Palm Springs, CA 92263 Space above this line for recorders use only ASSIGNMENT AND ASSUMPTION OF REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS Title of Document 011.003 DTT: 0.00 Exemption reason declared pursuant to Government Code 27388.1 This document is a transfer that is subject to the imposition of documentary transfer tax. ❑ This is a document recorded in connection with a transfer that is subject to the imposition of documentary transfer tax. Document reference: CONCURRENTLY HEREWITH ❑ This document is a transfer of real property that is a residential dwelling to an owner - occupier. This is a document recorded in connection with a transfer of real property that is a Elresidential dwelling to an owner -occupier. Document reference: THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ($3.00 Additional Recording Fee Applies) ACR 238 (Rev. 0112018) Available in Altemate Formats RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: The City of Palm Springs City Clerk PO Box 2743 Palm Springs, CA 92263 [SPACE ABOVE THIS LINE FOR RECORDER'S USE] ASSIGNMENT AND ASSUMPTION OF REGULATORY AGREEMENT AND DECLARATION OF RESTRICTIVE COVENANTS This Assignment and Assumption of Regulatory Agreement and Declaration of Restrictive Covenants ("Assignment'), is entered into as of February 3, 2022 (the "Effective Date"), by and among TAHQUITZ HOUSING ASSOCIATES, LP, a California limited partnership ("Assignor"), 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership ("Assignee"), and the CITY OF PALM SPRINGS (the "City"), a municipal corporation, as successor -in -interest to the Community Redevelopment Agency of the City of Palm Springs (the "Redevelopment Agency") with reference to the following: A. WHEREAS, Assignor is the owner of that certain multifamily housing development located on that certain real property located in Riverside County, California as described on Exhibit A attached hereto (the "Project'). B. WHEREAS, the City and Corporate Fund for Housing, a California nonprofit public benefit corporation (the "Previous Owner") were parties to that certain Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory Agreement') dated as of September 28, 1993 and recorded in the official records of Riverside County (the "Official Records") on September 30, 1993 as Document No. 382201. C. WHEREAS, the Regulatory Agreement was executed in connection with a loan from the City to the Previous Owner in the original principal amount of $590,000 (the "Loan"), which Loan was evidenced by a promissory note (the "Note") and a Deed of Trust with Assignment of Rents, Security Agreement and Fixture Fling, dated as of September 28, 1993 and recorded in the Official Records on September 30, 1993 as Document No. 382205 (the "Deed of Trust," and together with the Note, the "Loan Documents"). D. WHEREAS, the Previous Owner (i) transferred all of its rights, title and interest in the Project to the Assignor and (ii) assigned the Loan Documents and the Regulatory Agreement to the Assignor pursuant to that certain Assignment and Assumption of Loan Documents and the Regulatory Agreement by and among the Previous Owner, the Assignor and the Redevelopment Agency, dated as of December 15, 2008 and recorded in the Official Records on December 19, 2008 as Document No. 2008-0663042. 50268441.4 E. WHEREAS, concurrently herewith, Assignor wishes to (i) satisfy the Loan in full, (ii) sell the Project to Assignee and (iii) assign all of its right, title, and interest in and to, and all of its obligations under, the Regulatory Agreement and Assignee wishes to assume all of the Assignor's right, title, and interest in and to, and all of Assignor's obligations under the Regulatory Agreement. NOW THEREFORE, for good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 1. Terms. Terms not defined herein shall have the meaning ascribed to them in the Loan Documents. 2. Assignment of Regulatory Agreement. As of the Effective Date, Assignor hereby assigns to Assignee all of its right, title, and interest in and to, and its obligations and liabilities under the Regulatory Agreement. 3. Assumption. Assignee hereby accepts such assignment effective as of the Effective Date, and assumes and agrees to perform all of Assignor's liabilities, obligations, covenants, agreements, terms, provisions, and conditions under the Regulatory Agreement to the extent accruing from and after the Effective Date. In no event shall Assignee assume any liability or obligation under the Loan Documents. 4. Representations of Parties. Each of the Assignor and the Assignee represents, each with respect only to itself, as of the date hereof, as follows: (a) It is duly organized and existing under the laws of the jurisdiction of its organization, with full power and authority to execute and deliver this Assignment, to enter into the transactions contemplated hereby and to perform all the duties and obligations to be performed by it hereunder; (b) It has duly authorized this Assignment and the transactions contemplated hereby and the performance of all the duties and obligations to be performed by it hereunder by all necessary governmental, corporate and/or partnership action; (c) It has duly executed and delivered this Assignment and this Assignment constitutes its valid, legal and binding obligation enforceable against it in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization or similar laws or equitable principles relating to or limiting creditors' rights generally; and (d) The execution and delivery of this Assignment and the performance of the transactions on its part contemplated hereby will not violate any agreement by which it is bound or to which it or any of its assets are affected, or its organizational documents or any statute, regulation, rule, order, or judgment applicable to it. 5. Release of Assignor. The City and the Assignee hereby agree that from and after the Effective Date, Assignor shall be released from all obligations, duties, and liabilities incurred under the Regulatory Agreement after the Effective Date. 2 50255441.4 6. Qualified Proiect Period. The Qualified Project Period shall terminate on September 28, 2023 which is the date that is thirty (30) years from the completion of the Project. 7. Notices. The parties hereto hereby agree that from and after the Effective Date the address for notices to the "Owner" under the Regulatory Agreement is and shall be as follows: 2990 Tahquitz Canyon Way LP 4525 Wilshire Blvd., Suite #210 Los Angeles, CA 90010 Attention: Legal Notices 8. Consent. The City hereby consents to the assignment and assumption set forth in this Agreement. 9. Successors and Assigns. This Assignment shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto. 10. Miscellaneous. (a) This Assignment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together, shall constitute one and the same instrument. (b) This Assignment shall be binding on and inure to the benefit of the respective successors and assigns of the parties. (c) The parties agree to execute and deliver all documents required or reasonably deemed necessary by any party to this Assignment, at the expense of the Assignee. (d) The terms and conditions contained herein shall not be construed in favor of or against any parry, but shall be construed as if all parties prepared this Assignment. (e) The "Effective Date" of this Assignment shall be the date it is recorded in the Official Records. (f) This Assignment shall be construed and enforced in accordance with and governed by the laws of the State of California, applicable to contracts made and performed in California. [Remainder of page intentionally left blank; signatures on next page] 3 50268441.4 CITY OF PALM SPRINGS: THE CITY OF PALM SPRINGS, a municipal corporation By: F' Name: Title: VAajwag . A905Z ATTEST: 0 5025"ai.a IN WITNESS WHEREOF, the undersigned have executed this Assignment effective as of the date first written above. ASSIGNOR: TAHQUITZ ASSOCIATES, LP, a California limited partnership By: LINC-Tahquitz LLC a California limited liability company, it na gle ral partner By: Yv>iccc, :F. GIae-K, NA4*wrc4ud Siynoi2 By: Tahquitz Associates, LLC, a California limited liability company, its co -general partner By: Dalton Hydro, LLC, a Vermont limited liability company, its manager By: S.R.C. Corp., a Utah corporation, its manager By: COUNTERPART By: Rocky Mountain Engineering, Inc., a Utah corporation ASSIGNEE: 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership By: Tahquitz GP LLC, a Delaware limited liability company, its Administrative General Partner By: COUNTERPART Elizabeth Hagins, it Authorized Representative IN WITNESS WHEREOF, the undersigned have executed this Assignment effective as of the date first written above. ASSIGNOR: TAHQUITZ ASSOCIATES, LP, a California limited partnership By: LINC-Tahquitz LLC a California limited liability company, its managing general partner By: COUNTERPART By: Tahquitz Associates, LLC, a California limited liability company, its co -general partner By: Dalton Hydro, LLC, a Vermont limited liability company, its manager By: S.R.C. Corp., a Utah c rporation, its manager ),, By: ,54C�hP.� F}QKY11S?n, p1N�t101(L12�R SIGhu� By: Rocky Mountain Engineering, Inc., U a Utah corporation By: COUNTERPART ASSIGNEE: 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership By: Tahquitz GP LLC, a Delaware limited liability company, its Administrative General Partner M. COUNTERPART Elizabeth Hagins, it Authorized Representative IN WITNESS WHEREOF, the undersigned have executed this Assignment effective as of the date first written above. ASSIGNOR: TAHQUITZ ASSOCIATES, LP, a California limited partnership By: LINC-Tahquitz LLC a California limited liability company, its managing general partner I' 0 N I KIM e 9 0 a IN OR I t By: Tahquitz Associates, LLC, a California limited liability company, its co -general partner By: Dalton Hydro, LLC, a Vermont limited liability company, its manager By: S.R.C. Corp., a Utah corporation, its manager By: COUNTERPART By: Rocky Mountain EngineerinZInc a Utah co tion By: ASSIGNEE: / 3 FV Avl4hua'2-fd s15rtufL 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership By: Tahquitz GP LLC, a Delaware limited liability company, its Administrative General Partner By: COUNTERPART Elizabeth Hagins, it Authorized Representative IN WITNESS WHEREOF, the undersigned have executed this Assignment effective as of the date first written above. ASSIGNOR: TAHQUITZ ASSOCIATES, LP, a California limited partnership By: LINC-Tahquitz, LLC, a California limited liability company, its General Partner By: LINC Housing Corporation, a California nonprofit public benefit corporation, its sole Member and sole Manager By: Name: Its: COUNTERPART By: Tahquitz Associates, LLC, a California limited liability company, its General Partner By: Dalton Hydro, LLC, a Vermont limited liability company, its Member By: S.R.C. Corp., a Utah corporation, its Manager By: COUNTERPART Steve Harmsen, its President By: Rocky Mountain Engineering, Inc., a Utah corporation, its Member By: COUNT PA R'T Ryan B. Evershed, its President ASSIGNEE: 2990 TAHQUITZ CANYON WAY LP, a Delaware limited partnership By: Tahquitz GP LLC, a Delaware limited liability company, its Administrative General Partner By: Elizabeth ITagins, its Authorized Representative S-1 Tahquitz Court: Assignment and Assumption of City Loan Documents 50268441 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 ele ))SS. On De C• �i �, �D�% , before me, le" Cl a Notary Public in and for said State, personally appeared, L/-416Y" 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(ies) 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 S m ha d official seal. Signature of Notary Publi� TERM HIN'2 Notary public • CalHarnla Riverside County Commission 9 2359495 My Comm. Expires Jun 26, 2025 Tahqudz Court: Assignment and Assumption of City Regulatory Agreement 5026a441 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 ) )SS. COUNTY OF �s An9e1e3 ) On Jantbafy before me. WI1%5c" allotary Public in and for said State, personally appeared, -9 o6v�cccx 'r. ClwrK 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(ies) upon behalf of which the person(s) acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS m hand and official seal. Signature of Notary Public R. VALSON Notary public -California Los Angeles County ` Commission a 2253419 Aty Comm. Expires Aug 10, 2022 [SEAL] Tahqurtz Court: Assignment and Assumption of City Regulatory Agreement 50268441 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 u ) COUNTYOF g)SS.ilt Lce ) On r) PC erv. b r AOL) oLai.21 before me, j YLle k a Notary Public in and for said State, personally appeared,An V,_ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) istare 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(ies) upon behalf of which the person(s) acted, executed the instrument. 4/4 h I certify under PENALTY OF PERJURY under the laws of the State of G&14ferfliathat the foregoing paragraph is true and correct. WITNESS my hand and official seal. occoc)99112-17-2023 ANITA R. MORTENSONNO TARYPUBM-STATEOFUAWN8709713Signature of Notary Pub is Tahquitz Court. Assignment and Assumption of City Regulatory Agreement 50268441.4 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 CAL,'IF8it1QIA ) )SS. COUNTY OF ) On " YAlj P r 1, 141 � () � a" before me, tAo ygayl \)Y t ° o a Notary Public in and for said State, personally appeared,Avi 6 who proved to me on the basis of satisfactory evidence to be the p son(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(ies) upon behalf of which the person(s) acted, exX e instrument. I certify under PENALTY OF PERJURY under the laws of the State e a that the foregoing paragraph is true and correct. WITNESS my hand and official seal. LA, 1A J Signatu &f Notary Pubfi MEGHAH WRIGHT 3®6 #XARYA&X•STA7EOfUTAM { COMMISSIOM*34 COMM. EXP.11-05.2024 TahquBz Court: Assignment and AssumpWn of City Regulatory Agreement 502684414 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 ) )SS. COUNTY OF O AK ) On fj � MA 7" , %a , before me, 34ke �f1U/ a Notary Public in and f�tate, personally appeared, It )0.t who proved to me on the basis of satisfactory evidence to be the person(s) whose ame(� 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(ies) 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 of Notary Public Tahquitz Court Assignment and Assumption of City Regulatory Agreement 50268"1 SULEIKA MILLER Notary Public - California E 'i Los Angeles County y Comm -won a 2302751 My Cox+. EaTres aut 24. 2022 [SEAL] EXHIBIT A LEGAL DESCRIPTION LOT 15 IN SECTION 13, TOWNSHIP 4 SOUTH, RANGE 4 EAST, SAN BERNARDINO MERIDIAN, AS PER MAP OF PALM VALLEY COLONY LANDS, IN THE CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, RECORDED IN BOOK 14, PAGE 652 OF MAPS. SAN DIEGO COUNTY RECORDS. EXCEPT THE PORTION LYING NORTH OF THE SOUTH LINE OF ENCHANTED HOMES UNIT NO. 1, RECORDED IN BOOK 34, PAGE 17 OF MAPS. RIVERSIDE COUNTY RECORDS. SAID PROPERTY IS SHOWN ON RECORD OF SURVEY ENTITLED "RECORD OF SURVEY OF A PORTION OF LOT 1 OF SECTION 13, TOWNSHIP 4 SOUTH, RANGE 4 EAST, SAN BERNARDINO MERIDIAN, AS SHOWN BY MAP OF PALM VALLEY COLONY LANDS, AS RECORDED IN BOOK 14, PAGE 652 OF MAPS SAN DIEGO COUNTY RECORDS" ON FILE IN BOOK 33, PAGE 77. RECORDS OF SURVEY RIVERSIDE COUNTY RECORDS. APN: 502-143-004-5 50266441.4