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HomeMy WebLinkAbout00514C - MANUEL VEGA AND NADIA VERDUGO REGULATORY AGR AND DECL OF COVENANTS AND RESTRICTIONS DOC # 2007-0112746 02/16/2007 08:00A Fee:Nc P15[c 1 of 2 Recorded .in Official Records iFllyy]�F�I-F�V�T■pY¢�NAT+lIONALLTTfRE COhDAW county of Riverside S`vJl+s' IVdSTONq.did+'IRrAENT tarry W. Ward Assessor, County Clerk & Recorder RECOWHEN BY AND RECORDED MAILTO I IIIIIIIfIIIf IIIIlIIIIII111IIIIlIIIIIIIIIIII IiIIIIII Community Redevelopment Agency of the City of Palm Springs 3200 East Tahquitz.Canyon Way Palm Springs, California 92262 Atlention, City Clerk R U PAGE SIdE DA MISC LONG RFD COPY Exempt from payment of recording fees A L 465 426 PCOR NCOR SMF Q NCH6) P pursuant to Government Code § 6103. Escrow#219954-TW i DEED OF TRUST WITH ASSIGNMENT OF RENTS t� THIS DEED OF TRUST WITH ASSIGNMENT OF RENTS ('Deed of Trust") is made as of the L� February 13, 2007, by and between MANUEL VEGA AN UNMARRIED MAN AND NADIA VERDUGO, A SINGLE WOMAN AS JOINT TENANTS, ("Truster"), whose address is 390 West Avenida Cerca, Palm Springs, California 92262, FIDELITY NATIONAL TITLE INSURANCE COMPANY ('Trustee'), whose address is 3550 Vine Street; Riverside, California, 92507, and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body corporate and politic ("Beneficiary'), whose address is 3200 East Tahquitiz-Canyon Way, Palm Springs, California 92262. WITNESSET'H: That Trustor grants to Trustee in trust, with power of sale, that property in the City of Palm Springs, County of Riverside, State of California, described as set forth on Exhibit "A" attached hereto and hereby incorporated herein by reference (the "Property") together with rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits for the purpose of securing (1) payment of the sum of Fifty Thousand Dollars ($50,000,00), with interest thereon according to the terms of a promissory note or notes of even date herewith made to Trustor, payable to order of Beneficiary, and extensions or renewals thereof; (2) the performance of each agreement of Trustor incorporated by reference or contained herein; and (3) payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or his or her successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. THIS DEED OF TRUST IS HEREBY MODIFIED/SUPPLEMENTED BY THE TERMS OF THAT CERTAIN RIDER TO DEED OF TRUST WHICH IS ATTACHED TO THIS DEED OF TRUST AND HEREBY INCORPORA TED EYREFERENCE. To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision a, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 18, 1954, in the book and at the page of Official Records in the office of the county recorder of the county where said property is located, noted below opposite the name of such county, namely: QQIJ tt BOOK PAGE CCONN BOOK PACE COONTY BOOK PAGE Coui DOOK RACE Alameda 120E MS KIngE 858 1-15 1928 279 S'Wra 36 1st Alpena 5 120,31 L56e A37 110 Plumes Ise 1307 Slaklyou 505 I'M Amador 133 435 Lassen 192 357 Rwreide 3778 337 Solane 1257 G21 Bulle 1230 51a Los Mgeloe T-3678 p7a Sacramento 5030 124 Sonoma 2057 127 Cok,�-P"5 IDS oza Madnra e11 135 San Benito 300 ADS Sardi 1970 56 Catusa 323 391 MsAn ISLE 1d2 $an San,ai 6213 788 Si 645 555 Conlra Costa 4684 1 ManposE go 152 Ssn Veen Aa 94 506 Tchamn a57 133 Oel None 101 ads ManConno 667 99 San Joaawn 2655 233 I'dnlly 108 595 _I Dorado 704 035 Wood 1660 763 San Luis O615eo 1311 137 Tulare 2500 106 Fresno 5052 623 Wane 191 92 a.M,me 4778 1g5 -udurni 177 lE0 Glenn 460 >G Mgno 60 363 Santa Barbara 2055 Sal 9enlum M07 47 Wumyoldt Sol 53 Monterey 357 239 sai❑rna 0620 664 Yolo 769 16 Impenal Ilse 701 Naps 704 e42 Santa Gut loss S07 Yvbo 390 693 Inyo 1G5 672 ri 353 Shasle goo Gaa Kam 375E 690 Ore., 7722 16 San Diego SERIES 5 Book 19E1 Page 149774 shall inure to and bind the parties hereto, with respect to the property above described. said agreements, terms and provisions contained in said subdivision A and B (identical in all counties, and printed on pages 3 and 4 hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as if set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefore does not exceed the maximum allowed by law_ Signature of Tru Date: 41j" / ,a �w Date:c3 �oZ-G By: IJadia Verdugo [End of Signatures] STATE OF CALIFORNIA } } ss COUNTY OF gyylilk _._ } On ,o-P, 1ID7 before,me Notary Public, personally appeared rilmyff v tc: (or p ed to me-on the basis of satisfactory a ence) to be the person(s) whose e(s) is/subscribed to the wi in instrument and acknowledged to n that he/ e lexecute the same in his/her/ he authorized capacity(ies), and that by his/her/ 6i s nature(s) on the instrument the rson(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. p1_GA Y, pEVARGAS Signature a § Notarypublic-California o ` Riverside County M Cvmm Ex rzes dN 27.209a r (Seal) STATE OF CALIFORNIA } } ss COUNTY OF } On before me, Notary Public, personally appeared personally known to me (or 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 capac ty(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, WITNESS my hand and official seal. Signature (Seal) LEGAL DESCRIPTION Lot 94 of the Desert Highland Estates, in the City of Palm Springs, as shown by Map on file in Book 24, Page(s) 53 and 54 of Maps, in the office of the County Recorder of Riverside County, California, Excepting and reserving therefrom all oil, gas, hydrocarbon substances and minerals of every kind and character lying more than five hundred feet (500') below the surface, together with the right to drill into, through, and to use and occupy all parts of the Site lying more than five hundred feet (500') below the surface thereof for any and all purposes incidental to the exploration for and production of oil, gas, hydrocarbon substances or minerals from the Site but, without, however, any right to use either the surface of the Site or any portion thereof within five hundred feet (500') of the surface for any purpose or purposes whatsoever, RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Community Redevelopment Agency of the City of Palm Springs 3200 East Tahquitz-Canyon Way Palm Springs, California 92262 Attention: City Clerk Exempt from payment of recording fees pursuant to Government Code§6103. Escrow#219954TW RIDER TO DEED OF TRUST WITH ASSIGNMENT OF RENTS THIS RIDER TO DEED OF TRUST WITH ASSIGNMENT OF RENTS ("Rider") is attached to and incorporated by reference to that certain Deed of Trust With Assignment of Rents, executed by MANUEL VEGA, AN UNMARRIED MAN AND NADIA VERDUGO, A SINGLE WOMAN, AS JOINT TENANTS, as "Trustor," naming FIDELITY NATIONAL TITLE INSURANCE COMPANY ("Trustee"), whose address is 3550 Vine Street, Riverside, California, 92507, as "Trustee," in favor of the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic, as "Beneficiary." The Deed of Trust, as hereby modified/supplemented by this Rider, is hereinafter referred to as the "Deed of Trust." The following documents are incorporated herein by reference: a. The Regulatory Agreement and Declaration of Covenants Running With Land by and between Trustor as "Owner' and Beneficiary as "Agency" dated on February 9, , 2007 (the "Affordable Housing Agreement"), which sets forth terms and conditions for Beneficiary's loan of the Loan (as defined below) to Trustor. All terms which are not defined in this Deed of Trust shall have the meaning given in the Affordable Housing Agreement- b. The Agency Promissory Note ("Note"), dated on Tabruary is 2007, with Trustor as "Borrower" and Beneficiary as "Agency" or "Lender," in the principal amount of Fifty Thousand Dollars ($50,000.00) ("Loan" or "Nate Amount"), for which this Deed of Trust is security. The parties hereto agree: 1. Obligations Secured. Trustor makes this grant and assignment for the purpose of securing the following obligations: a. Payment to Beneficiary of the Loan and all indebtedness at any time owing under the terms of the Note; b. Payment and performance of all obligations of Trustor under this Deed of Trust; c_ Payment and performance of all obligations of Trustor under the Affordable Housing Agreement; d. Payment and performance of all future advances and other obligations of Trustor or any other person, firm, or entity with the approval of Trustor, may agree to pay and/or perform (whether as principal, surety or guarantor) for the benefit of Beneficiary, when the obligation is evidenced by a writing which recites that it is secured by this Deed of Trust; and e. All modifications, extensions and renewals of any of the obligations secured hereby, however evidenced. I 2. No Renting or leasing. Trustor acknowledges and agrees that Trustor shall occupy the Property as Trustor's principal residence in accordance with the Affordable Housing Agreement and shall not rent or lease the Property. Nothing in the Deed of Trust including the assignment of rents shall be interpreted or construed to permit the Trustor to rent or lease the Property. 3. Mortgagee-in-Possession, Neither the assignment of rents set forth in the Deed of Trust nor the exercise by Beneficiary of any of its rights or remedies hereunder shall be deemed to make Beneficiary a "mortgagee-in-possession" or otherwise liable in any manner with respect to the Property, unless Beneficiary, in person or by agent, assumes actual possession thereof_ Nor shall appointment of a receiver for the Property by any court at the request of Beneficiary or by agreement with Trustor, or the entering into possession of the Property by such receiver, be deemed to make Beneficiary a "mortgagee-in-possession" or otherwise liable in any manner with respect to the Property. 4. No Cure. In the event Beneficiary collects and receives any rents under the Deed of Trust upon any default hereof, such collection or receipt shall in no way constitute a curing of the default. 5. Beneficiary Option to Purchase. NOTICE IS HEREBY GIVEN THAT TRUSTOR HAS GRANTED TO BENEFICIARY AN OPTION TO PURCHASE THE PROPERTY, THE TERMS OF WHICH ARE SET FORTH IN THE AFFORDABLE HOUSING AGREEMENT. 6. Waiver. No delay or omission by Beneficiary in exercising any right or power accruing upon the compliance or failure of performance by Trustor hereto under the provisions of this Deed of Trust shall impair any such right or power or be construed to be a waiver thereof. A waiver by Beneficiary of a breach of, Event of Acceleration, or any other of any failure of performance by Trustor of any of the covenants, conditions or agreements hereof to be performed by Trustor shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof. IN WITNESS WHEREOF, Trustor has executed this Rider as of the date set forth in the Deed of Trust's acknowledgment hereinbelow, to be effective for all purposes as of the day and year first set forth above. SIGNAT -`OF TRLISTOR: Date: /Z-zeF7 e1P / _ a Date: c� — / s � By,C- / �-- Nadia Verdugo v [End of Signatures] STATE OF CALIFORNIA } } ss COUNTY OF G( } On h�* �" ZED before me, 01.6-f(i ' . ,dgJ £ Notary Public, personally appeared 1+✓�✓[_t Via. V' wri . PiY .urn p (or porowed tom(Yon the basis of satisfactory vidence) to be the persons) whose rme(s) is! r subscribed to the wjtlayn instrument and acknowledged to me that he/sh he executed the same In his/her thh . authorized capacity(ies), and that by his/he thei signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. C111Al/.1///�/ -1678618 Signature u 1ul 272010 y (Seal) STATE OF CALIFORNIA } } ss COUNTY OF } On before me, Notary Public, personally appeared personally known to me (or 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. WITNESS my hand and official seal. Signature (Seal) LEGAL DESCRIPTION Lot 94 of the Desert Highland Estates, in the City of Palm Springs, as shown by Map on file in Book 24, Page(s) 53 and 54 of Maps, in the office of the County Recorder of Riverside County, California_ Excepting and reserving therefrom all oil, gas, hydrocarbon substances and minerals of every kind and character lying more than five hundred feet (500') below the surface, together with the right to drill into, through, and to use and occupy all parts of the Site lying more than five hundred feet (500') below the surface thereof for any and all purposes incidental to the exploration for and production of oil, gas, hydrocarbon substances or minerals from the Site but, without, however, any right to use either the surface of the Site or any portion thereof within five hundred feet (500') of the surface for any purpose or purposes whatsoever_ DOG # 2007-0112744 02/16/2007 08:00R Fee:NC Page 1 of 18 RDEUTYNATIONALTITLECOWANY Recorded in County of Rivers Official Rvers Records ide Larry w.Clerk SUBDIVISION DEPARTMENT p�sessgr, County Clerk 8 Recorder RECORDING REQUESTED BY AND I1111111111111111 M 1111111131111111111 IT 11 WHEN RECORDED MAIL TO; s R U PAGE SIZE DA MISC LONG RFD COPY Community Redevelopment Agency of the City of Palm Springs M A L a05 426 PCDR NCOR SMF cH exAM 3200 East Tahquitz-Canyon Way Palm Springs, California 92262 Attention: blvvk I)w Exempt from payment of a recording fee pursuant to Govemment Code apuyon 6103. REGULATORY AGREEMENT AND 021 DECLARATION OF COVENANTS AND RESTRICTIONS This REGULATORY AGREEMENT AND DECLARATION OF COVENANTS AND RESTRICTIONS (the "Agreement") is entered into as of this 9Ltl day of Febzuary 2007, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic ("Agency"), and MANUEL VEGA, AN UNMARRIED MAN AND NADIA VERDUGO, A SINGLE WOMAN AS JOINT TENANTS ("Qwnet"). RECITALS A. Owner has entered into a purchase agreement (the "Purchase Agreement") to 'purchase from Mountain Gate II Palm Springs Ventures, LLC (the "Developer"") certain real property located at 390 West Avenida Cerca, Palm Springs, California 92262, and more particularly described in the legal description attached hereto as Exhibit "A"(the "Property"). B. Agency has developed a program to assist persons and families of very low, low, and moderate income, as defined by Section 50093 of the California Health and Safety Code, to rehabilitate residential property and to increase, improve and preserve very low, low and moderate-income housing available at affordable housing cost (as defined in Health and Safety Code Section 50052.5) within the territorial jurisdiction of Agency in accordance with the Community Redevelopment Law, Health and Safety Code Section 33000, et seq. In furtherance of this program, Agency has provided financial assistance in the development of the housing project in which the Property is located. C, Agency and the Developer entered into that certain Disposition and Development Agreement (the "DDA") dated March 9, 2005, and a Grant Deed, dated May 19, 2005, recorded June 1, 2005, as Instrument No. 2005-0434476 in the official Pegulatory Agreement PAGE 1 OF 17 Manuel Vega and Nadia Verdugo Declaration of Covenants and Restrictions 390 West Avenida Cema records of Riverside County. Pursuant to the terms of the DDA and the Grant Deed vesting title to the Property in Developer, title to the Property may be vested in Owner subject to this Regullatory Agreement, and the terms hereof shall be binding on the Owner and its successors in interest in the Property for so long as the Regulatory Agreement shall remain in effect. . D. Owner requires financial assistance to purchase the Property and would not be able to purchase the Property without such assistance. Owner is a person or family of moderate income who currently earns less than 120% of the current annual median income for the Riverside County area, adjusted for family size, as those terms are defined in California Health and Safety Code Section 50093, E. Owner has represented to Agency that Owner and Owner's immediate family shall reside in the Property as the family's principal residence at all times throughout the term of this Agreement. F_ Agency desires to land',and Owner desires to borrow funds in the form of a loan secured by a second lien Deed!of Trust to assist Owner to purchase the Property, subject to the terms and conditions stet forth herein. The terms, conditions, and amount of the loan shall be specified in the Agency Promissory Note. G. This Agreement is in furtherance of Agency's.program to create long-term affordable housing units in the City of Palm Springs. This goal is accomplished through the terms and conditions of this Agreement which restrict the resale price of the Property to a level that is affordable to buyers of a certain income level. NOW THEREFORE, in consideration of the benefits received by Owner, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner and Agency agree as follows: 1. Definitions. The following defined terms have the meanings given below: 'Affordability Period" means the period commencing on the date of recordation of this Agreement and ending forty-five (45) years thereafter. "Affordable Housing Cost" shall'i mean that purchase price which would result in a Monthly Mousing Cost (as defined below) which does not exceed the product of thirty- five percent (35%) times one hundred',ten percent (110°[") of the Riverside County area median income adjusted for family size appropriate for,the Property ("Median Income") for purchasers earning not greater than one hundred ten percent (110%) of the Median Income, or the product of thirty-five', (35%) times the actual gross income of the household for purchasers earning more than one hundred ten percent (110%) and not more than one hundred twenty percent (120%) of the Median Income, all as more particularly set forth in Section 50052.5 of the California Health and Safety Code. "Agency" means the Palm Springs Redevelopment Agency, a public body, corporate and politic. Regulatory Agrccmmt PAGE 2 of 17 Manuel Vega and Nadia Verdugo Declaration ofCorcnants and Restrictions 390 Were Avenida Casa i "Agency Loan" means the loan to be made by Agency to Owner in the amount of$50,000.00. The amount of the Agency Loan shall be the difference between the Purchase Price and the Affordable Housing Cost, as further described in the Agency Promissory Note. "Agency Option" shall mean Agency's option to purchase the Property, as more particularly described in Section 5.2 of this Agreement. "Agreement" means this Regulatory Agreement and Declaration of Covenants and Restrictions by and between Agency and Owner. "Eligible Person or Family" or "Eligible Persons or Families" shall mean persons and families earning 120% or less of the median income, adjusted for family size, for the.Riverside County area, as further described in the Housing Guidelines, "Event of Acceleration" shall have the meaning ascribed in Section 7 of this Agreement. ' "Exempt Transfer" shall have the meaning ascribed in Section 5 of this Agreement. An Exempt Transfer is a Transfer of the Property that does not trigger repayment of the Agency Loan and the Shared Appreciation Amount. "First Lien" shall have the meaning ascribed in Section 7 of this Agreement. "Monthly (dousing Cost" shall include all of the.folfowing associated with the Property, estimated or known as of the date of the proposed sale of the Property: (i) principal and interest payments on a mortgage loan not exceeding, the prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or 'the lending rates of any govemment-subsidized or special mortgage program for which a Qualified Purchaser qualifies and has obtained a first trust deed loan for the acquisition of the Property; (ii) property taxes and assessments; (iii) fire and casualty insurance covering replacement value of property improvements; and (iv) a reasonable utility allowance. Monthly housing cast of a purchaser shall be an average of estimated costs for the next twelve (12) months. "Note" or "Agency Promissory Note" shall mean the promissory note memorializing Owner's obligation to pay the Agency Loan, on the terms set forth therein. "Owner" has the meaning set forth in the preamble to this Agreement. "Agency Deed of Trust" shall mean the deed of trust which shall be recorded against the Property, securing the Note and thiss Agreement, in the form as distributed to Owner prior to receiving the Agency Loan. "Qualified Purchaser" shall have the meaning ascribed in Section 5 of this Agreement. fttdatory Agnxment PAGE 3 OF 17 Mantel Vega and Nadia Verduzo Dwlar tiop of Covenants and Rwrictlons 390 West Avenida Cerra "Permitted Transfer" shall have the meaning ascribed in Section 4 of this Agreement, "Prohibited Transfer" shall have the meaning ascribed in Section 4 of this Agreement. "Property"shall have the meaning ascribed in Recital B of this ,Agreement, 2, Owner Representations an Warranties. Owner represents and warrants to Agency that the financial and other information previously provided to Agency by Owner for the purpose of qualifying to purchase the Property was true and correct at the time it was given and remafins true and correct as of the date of this Agreement. Owner acknowledges that Agency is relying upon Owner's representations that Owner is an Eligible Person or Family, and Agency would not have entered into this Agreement if Owner did not so qualify. 3. Affordability Covenants. During the Affordability Period, the Property shall be owned and occupied by Owner or persons, who at the time of purchase, are Eligible Persons or Families. 4. Transfer of Property. All, Prohibited Transfers (as defined below) shall constitute Events of Acceleration, 'icausing the Agency Loan to become due and payable. If the Prohibited Transfer is a result of an affirmative conveyance of the Property by Owner (i.e., not arising 'ifrom Owner's death or operation of law), and the conveyance is not an Exempt Transfer pursuant to Section 5, the Prohibited Transfer shall also constitute a default under this Agreement, entitling Agency to exercise all remedies available at law or equity: A "Prohibited Transfer" is any Transfer of the Property that does not constitute a Permitted Transfer. A 'Transfer" is any sale, assignment, or transfer of an interests,in the Property, including, without limitation, a fee simple interest, tenancy in common, joint tenancy, community property, tenancy by the entireties, life estate, or other limited estate, leasehold interest or any rental of the Property, or any interest evidenced', by a land contract, or any mortgage or other encumbrance. The following Transfers shall (constitute "Permitted Transfers' so long as the transferee(s) give written notice to Agency of such event within thirty (30) days of its occurrence and the transferee(s) assume the Owner's obligations under this Agreement, the Promissory Note, andlthe peed of Trust, by execution of an assignment and assumption agreement to be provided by Agency, if such assumption does not occur by operation of law: (i) transfer by gift, devise, or inheritance to the Owner's spouse; (ii) transfer of title by an Owners death to a surviving joint tenant, tenant by entireties, or a surviving spouse of community property; (iii) transfer of.title to a spouse as part of divorce or dissolution proceedings or in conjunction with marriage; and (iv) an Exempt Transfer, as further explained in Section 5 of this Agreement. A sale or transfer which under federal law, would not, by�itself, permit Agency to exercise a due on.sale or due on encumbrance clause shall also constitute a Pennitted Transfer. Regulatory Aga eut PAGG40F17 Manucl Vega and Nadia VeRdugo Declaration ofCovenants and Restrictions 390 West Avenida Coca 5. Exempt Transfer; Sale to Qualified Purchaser at Affordable Housing Cost; Agency Option to Purchase. An "Exempt Transfer" is (i) the sale of the Property by the Owner to a person who is an Eligible Person or Family ("Qualified Purchaser") (and that person's status as a Qualified Purchaser has been verified by Agency pursuant to this Section 5) provided that the Qualified Purchaser assumes the Promissory Note, the Agency Deed of Trust, and this Agreement pursuant to an assignment and assumption agreement approved by Agency, and the sale price less the balance of the Agency Loan does not exceed the Affordable Housing Cost for the Qualified Purchaser, or (ii) the sale of the Property by the Owner to Agency or a person designated by Agency pursuant to Section 5.2 of this Agreement. An Exempt Transfer is a Permitted Transfer. 5.1 Sale by Owner. If Owner desires to sell, exchange, quitclaim or in any manner dispose of the Property or any part thereof ("Proposed Sale"), Owner shall notify Agency in writing no later than ten (10) days prior to the date the Property is placed on the market for a Proposed Sale. Owner shall not sell or transfer the Property until such time as Agency has determined (i) the proposed buyer intends to occupy the Property as its principal residence; (ii) the proposed buyer is a Qualified Purchaser and eligible under the Housing Guidelines; and (iii) the Proposed Sale is at an Affordable Housing Cost (excluding the Agency Loan assumed by the buyer). Owner shall cooperate with and reasonably assist Agency with the determination of whether a proposed buyer is a Qualified Purchaser_ In order to verify the buyer's status as a Qualified Purchaser, Owner shall submit to Agency the identity of the proposed buyer and adequate information evidencing the income of the proposed buyer. Said income information shall be submitted not less than thirty (30) days prior to the Proposed Sale and shall include original or true copies of pay stubs, income tax records or other financial documents in order that Agency may determine and verify the household income of the proposed buyer to determine Qualified Purchaser status and whether the Property is available to such buyer at an Affordable Housing Cost (excluding the Agency Loan assumed by the buyer). Agency may request additional information reasonably required to verify the proposed buyer's status. OWNER UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN 13E MADE ONLY AT THE TIME OF THE PROPOSED SALE, TAKING INTO CONSIDERATION INTEREST RATES; THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER WILL BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THE AFFORDABILITY COVENANTS IN THIS AGREEMENT. OWNER FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF AGENCY AND THIS AGREEMENT IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS AND FAMILIES AT AN AFFORDABLE HOUSING COST. R dowry AEtcemeat PAGES OP 17 %nuoj Vega and Nadia Vcrdugo Declaration of Covenants and Aeshictions 390 West Avenida C«ea 5.2 Agency Option to Purchase. Owner hereby grants to Agency an option to purchase the Property at an Affordable Housing Cost or to cause the purchase of the Property by a third party who is a Qualified Purchaser at an Affordable Housing Cost, on the terms set forth below ("Agency Option"), In the event Owner is unable to sell the Property to,a.Qualified Purchaser pursuant to the terms set forth in Section 5.1, Owner may request that Agency exercise the Agency Option to purchase the Property by delivering to Agency, by certified mail, a copy of this Agreement and a written request for Agency to exercise the'iAgency Option (the "Option Request Notice"). The Option Request Notice shall (i) be dated and signed by the Owner, (ii) contain the address of the property, and (iii) contain the following statement: THE PURPOSE OF THIS OPTION REQUEST NOTICE IS TO REQUEST AGENCY EXERCISE ITS .OPTION TO PURCHASE THE PROPERTY. PURSUANT TO THE TERMS OF THE REGULATORY AGREEMENT AND DECLARATION OF COVENANTS AND RESTRICTIONS, AGENCY HAS 60 DAYS TO NOTIFY OWNER OF ITS ELECTION TO EXERCISE THE AGENCY OPTION TO PURCHASE THE PROPERTY. IF THE AGENCY DOES NOT EXERCISE THE OPTION, THE PROPERTY WILL BE RELEASED FROM THE AFFORDABILITY RESTRICTIONS IN THE AGREEMENT, Should the property be released from the affordability restrictions under the terms of this Section 5.2, the sale shall constitute a Prohibited Transfer under Section A above and Owner shall repay the Agency Loan or portion thereof in accordance with Section 8. In no event shall Owner deliver the Option Request Notice to Agency until Owner has, for a .period of ninety (90) days following the date the Property is placed on the market for a Proposed Sale pursuant to Section 5.1, diligently marketed the Property and exercised best efforts to sell thei Property to an Qualified Purchaser, as reasonably determined by Agency. Agency shall have no obligation to exercise the Agency Option. In the event Agency elects to exercise the Agency Option, Agency shall exercise the Agency Option by delivering written notice to Owner within forty-five (45) days of Agency's receipt of the Option Request Notice. In the event Agency exercises the Agency Option and either purchases the Property or arranges the purchase by a Qualified Purchaser, an escrow shall be established to close within ninety (90) days after delivery of Agency's notice of exercise of the Agency Option. In the event Agency fails to !agree in writing to exercise the Agency Option, Owner may sell the Property at an unrestricted sales price to a purchaser who does not qualify as a Qualified Purchaser. The transfer of the property pursuant to the preceding sentence constitutes a Prohibited Transfer for purposes of accelerating the Agency Loan and triggering the Shared Appreciation Amount pursuant to Section 7 of this Agrdement, but shall not constitute a default under this Agreement. 6. Agency Loan. Agency shall loan to Owner the Agency Loan subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note, Agency Deed of Trust, and the Buyer Disclosure Statement, Owner,shall execute, as maker, and deliver to Agency the Promissory Note in favor of Agency, as holder, in the principal amount of the Agency Loan, (the "Note Amount"), Owner shall also execute and deliver to Agency the Agency Deed of Trust and the Buyer Disclosure Statement in ftalatory Agreement FACE 6 OF 17 Manuel Vega and Nadia Verdugo Declaration of Covenants and Fcestriclions 390 West Avenida Coma the form as distributed to Owner prior to receiving the Agency Loan. The Agency Loan shall be used only for the purchase of the Property. 7. Events of Acceleration, The Agency Loan, or balance thereof, shall become due and immediately payable in accordance with Section 8 of this Agreement, upon the occurrence of any one of the following events of acceleration ("Event of Acceleration"): (1) a Prohibited Transfer; (ii) the refinancing of the lien to which the Agency Deed of Trust is subordinate ("First Lien") for an amount which would provide a total encumbrance which exceeds the maximum amount permitted under the Housing Program; (iti) such time if or when Owner is no longer an occupant of the Property pursuant to Section 10 of this Agreement; or (iv) Owner is in default of any other obligation under this Agreement, the Note, or the Agency Deed of Trust. 8. Note Repayment and Shared Equity Appreciation. 8.1 Repayment By Maker. This is a deferred loan. Unless the conditions of Section 7 of the Agreement are met ("Event of Acceleration"), the Maker will not make payments on this note. Instead, interest in the amount of three percent (3%) per annum shall accrue on the 15t" day of each calendar month after the Interest Accrual Commencement Date until principal and interest have been fully amortized. On the anniversary date of the Interest Accrual Commencement pate, an amount equal to twenty percent (20%) of the original principal shall be forgiven by the Agency. The accumulated interest shall be forgiven on the sixth anniversary date of the Interest Accrual Commencement Date. 8.2 Shared Equity Appreciation. In the event of a Prohibited Transfer during the Affordability Period, in addition to repayment of the balance of the Note Amount, Agency shall receive a share of the sales proceeds that exceed the value of the Property at the time of the Agency Loan, in order to recover funds for other low and moderate-income housing pursuant to state law. The Agency's share of the increase in equity shall be determined based on the length of time the Property has been occupied by an Eligible Person or Family prior to the Prohibited Transfer, pursuant to the table below. The Agency's share of the equity increase will be lowered in the event the Prohibited Transfer is the result of divorce or death. Year of Prohibited Percent of Equity Increase Transfer After Loan Retained by Owner Years Other Divorce Death 0 - 15 0% 0% 0% 16 - 18 2% 6% 9% 19 - 21 5% 9%• 12% Regulatory Agreement PAGE 7 OF 17 Mannel Vcga and Nadia Verdup Dxlataiop of Covenants and Ratrictions 390 West Avenida Caci Year of Prohibited Percent of Equity Increase q Y Transfer After Loan Retained by Owner 22 - 24 9% 13% 16% 25 - 27 13% 17% 20% 28 - 30 17% 21% 24% 31 - 33 23% 27% 30% 34- 36 29% 33% 36% 37- 39 40% 44% 47% 40 -42 69% 73% 76% 43 -45 100% 100% 1 100% As an example only. Val 'of P =p y Value f Property at time of loan - $200,000 • Amount of Agency Loan = $50,000 • Value Of Property at time of Prohibited Transfer during Year 20 =$250,000 • Increase in equity = $50,000 • Repayment of Agency Loan = $50,000 plus interest • Amount of Equity Increase shared with Agency = (95% X $50,000) =$47,500 • Amount of Equity Increase kept by Owner = (5% X $50,000) =$2,500 9. Maintenance of Property_ Owner shall maintain the buildings, landscaping and Yard areas on the Property, as follows: No improperly maintained landscaping shall be visible from public rights-of-way, Including: no Pawns with grasses in excess of six (6) inches in height; no untrimmed hedges; no trees, shrubbery, lawns, and other plant life dying from lack of water or other necessary maintenance; no trees and shrubbery grown uncontrolled without proper pruning; no vegetation so overgrown as to be likely to harbor rats or vermin; Reg lataty Agtecmmt PAGE 8 OF 17 Manuel Vega and Nadia Vcrdugo Declaration of Covenants and Fe tricti(= 390 West Avenida Casa and no dead, decayed, or diseased trees, weeds, and other vegetation. No yard areas shall be left unmaintained, including: no broken or discarded furniture, appliances, and other household equipment stored in yard areas for periods exceeding one (1) week; no packing boxes, lumber, trash, dirt, and other debris stored in yards for periods exceeding one (1) week in areas visible from public property or neighboring properties; no unscreened trash cans, bins, or containers stored for longer than reasonably required for removal by the City's waste haulers in areas visible from public property or neighboring properties; and no vehicles parked or stored in areas other than approved parking areas. No inoperable vehicles stored where visible from public property or neighboring properties, No buildings may be left in an unmaintained condition, including: no violation of state or federal law, Uniform Codes, or City ordinances, rules or regulations; no condition that constitutes an unsightly appearance that detracts from the aesthetics or property value of the subject property or constitutes a private or public nuisance; no broken windows or chipped, cracked or peeling paint; and no conditions constituting hazards and/or inviting trespassers or illegal activity. If such buildings, landscaping or yard areas are not so maintained, and such conditions are not corrected as soon as possible but in no event longer than thirty (30) days after, notice thereof from Agency or the City of Palm Springs (the "City"), then- either Agency or the .City may perform the necessary maintenance and Owner shall pay such costs as are reasonably incurred for such maintenance, Not.by way of limitation of the foregoing, Owner shall maintain the improvements and landscaping on the Property in. a manner consistent with community, standards which will uphold the value of the Property, in accordance with the Palen Springs Municipal Code. Regulatory Ag dcmenC PAGE 9 OF 17 Manud Vega and Nadia Verdugo Declaration ofCovenauts and Rcstrictions 390 Wot Avenida Cetoa 10. Occupancy Standards. The Property shall be used as the principal residence of Owner and Owner's family and folr no other purpose. Owner shall not enter into an agreement for the rental or lease of the Property. Agency may grant a temporary waiver of the above requirements for good cause, in Agency's sole and absolute discretion. The maximum occupancy of the Property shall not exceed the maximum occupancy allowed by the stricter of applicable state law or the Palm Springs Municipal Code, Owner shall, upon demand by Agency, submit to Agency an affidavit of occupancy verifying Owner's compliance with this Section 10. Said affidavit may be required by Agency on an annual basis. 11_ First Lien; Covenants Do Not Impair First lien. The provisions of this Agreement and the Agency Deed of Trust shall be subordinate to the First Lien on the Property held by the Lender and shall not impair the rights of Lender, or Lender's assignee or successor in interest, to exercise its remedies under the First Lien in the event of default under the First Lien by Owner. Such remedies under the First Lien include the right of foreclosure ors acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed in lieu of foreclosure, this Agreement shall be forever terminated and shall have no further effect as to the Property or any transferee thereafter, provided, however, if the holder of the First Lien acquires title to the Property pursuant to a deed or assignment in lieu of foreclosure, this Agreement shall autornatically terminate upon such acquisition of title, provided that (i) Agency has been given written notice of a default under the First Lien, and (ii) Agency shall not have cured the default under such First Lien within the 30-day period provided in such notice sent to Agency. Agency shall cause a Request for Notice, in the form attached to the DDA as Attachment No. 10, to be recorded on'the Property subsequent to the recordation of the First Lien deed of trust or mortgage requesting a statutory notice of default as set forth in the California Civil Code Section 2924b. 12. Defaults. Failure or delay by eilther party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence ',to cure, correct or remedy such failure'ar delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such 'notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default' 13. Indemnification. Owner shall defend, indemnify and hold harmless Agency and the City of Palm $prings and their respective officers, officials, agents, employees, Regulatory Agrcment 'PAGE 10 OF 17 Manuel Vega and Nadia Veniugo Declaradon ofCovenants and Restrictions 390 Wwn Avenida Cerra representatives, and volunteers from and against any loss, liability, claim, or judgment relating in any manner to the Property or this Agreement. 14. Insurance. Owner shall maintain, during the Affordability Period, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property, in a form, content and with companies approved by Agency. The policy shall name Agency as loss payee and shall contain a statement of obligation on behalf of the carrier to notify Agency of any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination. Owner shall transmit a copy of the certificate of insurance and loss payee endorsement to. Agency within thirty (30) days of the effective date of this Agreement, and Owner shall annually transmit to Agency a copy of the certificate of insurance and a loss payee endorsement, signed by an authorized agent of the insurance carrier setting forth the general provisions of coverage. The copy of the certificate of insurance and loss payee endorsement shall be transmitted to Agency at the address set forth in Section 16.5. 15. Nondiscrimination. Owner covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Owner itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Property. Owner, its successors and assigns, shall refrain from restricting the rental, sale or lease of the Property on the basis of race, color, religion, sex, marital status, national . origin or ancestry of any.person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and-assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons On account of race, color, religion, sex, marital status, national origin or ancestry_in the sale,,lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing covenants shall run with the land." In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all Begulatnry Agmcment PAGE 1 l OF 17 Manuel Vega and Nadia Vetdugo beeL9 tioa ofCovcnants and Aestricdoos 390 West Avenida Casa Persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall i be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the' selection, location, number, use or occupancy of tenants; lessees, sublessees, subtenants or vendees in the premises herein leased." In contracts: "There shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish,or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of,tenants, lessees, subtenants, sublessee or vendees of the premises." Notwithstanding the foregoing; Owner acknowledges and agrees that during the Affordability Period, Owner shall occupy the Property as Owner's principal residence and shall not rent or lease the Property. 16.. Miscellaneous. 16.1 Attorneys' Fees and Costs. If any action is brought to enforce the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and costs. 16.2 Controlling Agreement. Owner covenants that Owner hps not executed, and will not execute any other agreement with provisions contradictory to or in opposition to the provisions hereof, and that in any event, Owner understands and agrees that this Agreement shall control the rights and obligations between the parties. 16.3 Severability. If any one or more of the provisions contained in this Agreement shall for any, reason be held to be invalid, illegal, or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Agreement, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision(s) had never been contained herein. AcOulntary Agnxaneui PAGE 12 OF 17 . Manuel Vega and Nadia ve dugo DMIaradon of covenaut%and Aesteictinns 390 West Avenida Cerra 16.4 Time. Time is of the essence of this entire Agreement. Whenever under the terms of this Agreement the time for performance falls on a day which is not a business day, such time for performance shall be on the next day that is a business day. 16.5 Notices. All notices required to be delivered under this Agreement to the other party must be in writing and'shall be effective (i) when personaliy delivered by the other party or messenger or courier thereof; (ii) three (3) business days after deposit in the United States mail, registered or certified; or (iii) one (1) business day after deposit before the daily deadline time with a reputable overnight courier or service; in each case postage fully prepaid and addressed to the respective parties as set forth below or to such other address and to such other persons as the parties may hereafter designate by written notice to the other party hereto : Community Redevelopment Agency of the If to Agency: City of Palm Springs Attention: Executive Director 3200 East Tahquitz Canyon Way Palm Springs, California 92262 If to Owner: Manuel Vega & Nadia Verdugo 390 West Avenida Cerca Palm Springs, CA 92262 16.6 Captions and Pronouns. The captions and headings of the various Sections of this Agreement are for convenience only, and are not to be construed as confining or limiting in any way the scope or intent of the provisions hereof. Whenever the context requires or permits, the singular shall include the plural, the plural shall include the singular, and masculine, feminine, and neuter shall be freely interchangeable. 16.7 Running of Benefits and Burdens. All conditions, covenants, and restrictions contained-in this Agreement shall be covenants running with the land, and shall, in any event, and without regard to technical classification or designation, legal or otherwise, be, to the fullest extent permitted by law and equity, binding for the benefit and' in favor of, and enforceable by, Agency and its successors and assigns, against Owner, its successors and assigns, to or of the Property conveyed herein or any portion thereof or any interest therein, and any parry in possession or occupancy of said Property or portion thereof. In amplification and not in restriction of the provisions set forth hereinabove, it is intended and agreed that Agency shall be deemed a beneficiary of the agreements and covenants provided hereinabove both for and in its own right and also for the purposes of protecting the interests of the community. All covenants without regard to technical classification or designation shall be binding for the benefit of Agency and such covenants shall run in favor of Agency for the entire period during which such covenants shall be in force and effect, without regard to whether Agency is or remains an owner of any land or interest therein to which such covenants relate. Agency shall have the right, Regulatory Agreaueat PAGE 13 of 17 Manuel Vega and Nadia vcrdugo Declaration otcovcnancs and ke6wutiow 390 Wcst Avenida Ce in the event of an breach of an such agreement v to exercise all the rights y y g Bement or covenant, g and remedies, and to maintain any action at law or suit in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant. 16.8 Construction. The rule of strict construction does not apply to this Agreement. This Agreement shaft be given a reasonable construction so that the intention of the parties, to prevent any Prohibited Transfer or any use of the Property in violation of this Agreement, is carried out. 16.9 Obligations Secured by Agency Deed of Trust. The payment and performance of all obligations of Owner under this Agreement are secured by the Agency Deed of Trust, 16.10 Counterparts. This Agreement may be executed in two or more counterparts, each of which when Iso executed and delivered shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument. 16.11 Recordation; Effective pate. This Agreement shall be recorded and shall become effective upon the transfer of fee title to the Property to Owner. 16.12 Waiver. No delay or omission by Agency in exercising any right or power accruing upon the compliance or failure of performance by Owner hereto under the provisions of this Note shall impair any such right or power or be construed to be'a waiver thereof. A waiver by Agency of a breach or went of Acceleration or of any failure of performance by Owner oft any of the covenants, conditions or agreements hereof to be performed by Owner shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof. Rc9ulatoly Agn mt PAGE 14 OF 17 Manuel Vega and Nadia Ve dugo Acclalation ofCovmants and Pr hieliom 390 W(st Avenida Cana IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. COMMUNITY REDEVELOPMENT AGENCY OF THE CITYOF PALM SPRINGS, a public body, corporate and politic 6y: � Executive Director said "AGENCY" A t: atc � BY RES. .17'11 1 Thompson, Assistant ecretary (Agency's and Owner's Signature must be acknowledged by a Notary Public) 4glas . orm: MAN af�Fp Dond, CityA Daley NADIA VER UGO "OWNER" kegulatory Agreement PAGE 15 of 17 Manuel Vega and Nadia Verdago Ooola Pion of covenants and Restrictions 390 West Avenida G= STATE OF CALIFORNIA } COUNTY OF Cl/ L } On d'ZY 13 Z0 before,me, aZAO Notary Public, personally appeared a. U,NMIcc &i p ve (or p d t e on the basis of satisfdGtory evidence) to be the persons) whose me(s) is/ r subscribed to thew instrument and acknowledged to me that he/ he executed the same in his/her/ hie' authorized capacity(ies), and that by his/her e• srgnature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)acted, executed the instrument. WITNESS my hand and official seal. QiCA Y.QEVARCAS o COMM. 0 8818 eA4Notary Puhlia-C'I'f"nia Signature b x Riverside County !Afires m27 2010 (Seal) STAT CALIFORNIA } } ss COUNTY OF } On before rne, Notary Public, personally appeared personally known to me (or prove me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subsd d to the within instrument and acknowledged to me that he/she/they executed the same in 's/her/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument a person(s) or the entity upon behalf of which the person(s) acted, executed the instrument . WITNESS my hand and official seal. Signature (Sea STATE OF CALIFORNIA } COUNTY OF Rt UCk 51Idf. }ss On b fore me,/hy 6 1)(7 M540) Qi1NOtary Public, personally appeared personally known to me (or pmn t_a me on the ) to be the persons whose name(g is/ao~subscribed to the within instrument and acknowledged to me that he/sheA4ey- executed the same in his/hen##& authorized capacity(i&4 and that by his/hon tw r signature(r4 on the instrument the personAor the entity upon behalf of which the person(A acted, executed the instrument. WITNESS my hand and official seal. 1L@iNARI t YNN 50.678 y At1570678 x �R=WMIDECOLWY Signature STATE OF CALIFORNIA } COUNTY OF }} ss On c2-lq l07 before me, / �UAn O d4 otary Public, personally appeared personally known to me (orQwv ) to be the person whose name(o is/a subscribed to the within instrument and acknowledged ,to me that he/she/they executed the same in his/h #r authorized capacity(ips�. and that by hisPzeF#hs:Z signatureAon the instrument the person(S,or the entity upon behalf of which the person(K acted, executed the instrument. WITNESS my hand and official seal. MARI LYNN BOSWELL T COMM.91570578 RP NOTARY PUBLIC*CMXOF I COM Signature cmY9VERNBIDE FAtE . Regulatory Agreement PAGE 17 OF 17 Manuel Vega and Nadia Vetdngv Accluativn of Covenants and ResWcdon 390 Were Avenida Cerra EXHIBIT A LEGAL DESCRIPTION Lot 94 of the Desert Highland Estates, in the City of Palm Springs, as shown by Map on file in Book 24, Page(s) 53 and 54 of Maps, in the office of the County Recorder of Riverside County, California. Excepting and reserving therefrom all oil, gas, hydrocarbon substances and minerals of every kind and character lying more than five hundred feet (500') below the surface, together with the right to drill into, through, and to use and occupy all parts of the Site lying more than five hundred feet (500) below the surface thereof for any'and alC purposes incidental to the exploration for and production of oil, gas, hydrocarbon substances or minerals from the Site but, Without, however, any right to use either the surface of the Site or any portion thereof within five hundred feet (5007) of the surface for any purpose or purposes whatsoever, Regulatory Agreement PAGE 16 OF 17 Manucl Vcga and Nadia Verdago Declaration of Covenants and Restrictions 390 West Avenida Cma