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HomeMy WebLinkAbout00394C - CVHC HOUSING COALITION OPA COTTONWOOD CHUCKWALLA AFFORDABLE HOUSING REGULATORY Coachella Valley Housing Reboucas/Freeman Regulatory AGREEMENT #394C R1158, 12-19-01 Doc #t 2@03-132459 - RECORDED AT THE ) 02/26/2003 08:00 Fee:NC F A T E US OF WHEN Page 3 of 18 REQUEST ) Recorded in Official Records RECORDED RETURN TO: ) County of Riverside Gary L. Orso Assessor, County Clerk 6 Recorder Community Redevelopment Agency ) I IIIIII IIIIII IIII IIII IIIIII(IIII II IIII II IIII IIII IIII of the City of Palm Springs P.O. Box 2743 3200 TahquitzCanyon Way ) Palm Springs, CA 92263 PCOR NOCOR GMF MISC Attn: kxesutie Hiltctbr ) �� §�: — A —J___R__� L CGPV LONG REFUND NCHG EXAM VA (SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE) �„w __ (EXEMPT FROM RECORDING FEE PER GOV.CODE`6103) II II{{ u ry u �y REGULATORY AGREEMENT COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS THIS REGULATORY AGREEMENT (the "Agreement") is made this _._�!l� day of ��,gi2v ��W,l , 20WV,, by and between ENE DA REBOUCAS AND AIMARA CESPEDES FREEMAN ("Owner") and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS ("Agency"). REI 11ALS A. Owner has entered into an agreement (the "Purchase Agreement") to purchase from the Coachella Valley Housing Coalition (the "Developer") certain real property located at 999 Cottonwood Road, Palm Springs, California, 92264, Palm Springs, California, which real property is more particularly described in Exhibit"1" attached hereto and incorporated herein(the "Property"). B. Agency has agreed to provide financial assistance in the development of the housing project in which the Property is located. Agency's activities in this regard are designed to implement Agency's effort to assist persons and families of moderate-income or lower (`Eligible Persons and Families")to purchase residential property and to increase, improve, and preserve the supply of moderate-income and lower housing available within the territorial jurisdiction of Agency, in accordance with the Community Redevelopment Law (California Health and Safety Code Sections 33000 et seq.). C. Agency and the Developer entered into an Owner Participation Agreement dated September 1, 1999 (the "OPA"). Pursuant to the terms of the OPA, title to the Property may be Regulatory Agreement (I of 16) Eneida Reboucas Aimara Cespedes Freeman vested in Owner subject to this Regulatory 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. The Agency's financial assistance and the use and affordability restrictions imposed by Agency have enabled Owner to purchase the Property with financial assistance provided for in the OPA. In exchange for Agency's assistance, Owner agrees to the restrictions on the sale, resale, and occupancy of the Property created by this Agreement. NOW, THEREFORE, the Developer, Owner and Agency declare, covenant and agree, by and for themselves, their heirs, executors, administrators and assigns, and all persons claiming under or through them, that the Property shall be held, transferred, encumbered, used, sold, conveyed, leased and occupied, subject to the covenants and restrictions hereinafter set forth. 1. DEFINITIONS. (a) Agency Fee_ The term "Agency Fee" shall mean the fee the Agency is entitled to receive for its services under this Regulatory Agreement,which fee shall be in the amount of the reasonable costs of such services (including out of pocket expenses incurred for any reports, fees, or other costs related to the approval of the close of a sale of a Residence, but-not including the cost of staff time); provided, however, that, said fee shall not be greater than One-Half of One Percent(.51/o)of the Initial Selling Price or the Maximum Resale Price, as applicable. (b) Agency Financial Assistance. The term"Agency Financial Assistance" shall mean an amount determined necessary for the development of the project by the project pro forma, after all other sources of financing, public and private, have been included, and which have been assumed by the Agency to assist a Qualified Purchaser. The Agency Financial Assistance shall be applied to the down payment required to purchase the Property. The amount of Agency Financial Assistance is Thirty Three Thousand Seventy Dollars($33,070.00). (c) Capital Improvement. The term "Capital Improvement" shall mean any capital improvements installed by Owner (but not a predecessor-in-interest of the Owner) to the Residence costing in excess of Five Hundred Dollars ($500.00) in any one (1) year which are properly characterized as capital improvements, as distinguished from maintenance items, under the Internal Revenue Code and the regulations promulgated thereunder pursuant to a building permit,if required by the City, and approved by the Agency, if required. (d) Cost of Repair. The term "Cost of Repair" shall mean the cost, as reasonably determined by the Agency,to repair any violations of applicable building,plumbing, electric, fire, or housing codes or any other provision of the Palm Springs Municipal Code, the cost to repair any damage to a Residence and the cost to put the Residence into a saleable condition, as reasonably determined by the Agency, including,but not limited to, cleaning,painting, cleaning or replacing worn carpeting and draperies, and making needed structural, mechanical, electrical, plumbing and fixed appliance repairs. (e) Low Income Household. The tern "Low Income Household" shall mean a household earning no more than eighty percent (80%) of the median income for a household of Regulatory Agreement (2 of 16) Eneida Reboucas 13 Aimara Cespedes Freeman �Ilillli E11111111111111111111111111111111111111III zFF; Fef�l23EAF the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, or its successor statute. (f) Maximum Resale Price. The "Maximum Resale Price" shall mean (i)the purchase price paid by the then current Owner, other than the Developer, (except that the purchase price for the first Qualified Purchaser of the Residence shall be the Initial Selling Price) for the Residence (including all closing costs actually paid by Owner) (not the purchase price proposed to be paid by the prospective purchaser to the Owner) increased (but not decreased) by the percentage change between Low or Moderate Household Income, published for the year the Residence was purchased by the then current Owner and the Low or Moderate Household hncome,published for the year immediately preceding the year the Residence is to be sold by the then current Owner; (ii) plus the documentable cost of any Capital hnprovements; (iii) plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (iv) less Cost of Repairs; (v)plus the Agency Fee. Provided that, however; for the first sale, conveyance,assignment or other transfer of the Residence occurring on or after the seventh (7"), fourteenth (14a') and twenty-first (2l ) anniversary of the initial sale of the Residence, the Maximum Resale Price for a Residence shall be recomputed as the lesser of(i)the amount calculated pursuant to the preceding paragraph or(ii) (a) an amount which, assuming a ten percent (10%) down payment were made by the Qualified Purchaser and assuming a loan were made which,if amortized over thirty(30)years at the average rate of interest published by Bank of America, N.T. & S.A. for thirty (30) year fixed rate mortgages for the month that the Initial Notice, as hereinafter defined, is given, the annual principal and interest payments of such mortgage when added to annual casualty insurance premiums and annual real property taxes and assessments for the Residence shall not exceed thirty percent (30%) of the then Low or Moderate Household Income; (b)plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (c) less the Cost of Repairs; (d) plus the Agency Fee. The foregoing calculation of Low and Moderate Household Income shall be computed based upon a six-person household, if the Residence is a three- bedroom unit; an eight-person household if the Residence is a four-bedroom unit. If Bank of American no longer publishes such an interest rate, then the Agency shall designate another bank or financial institution which publishes such an interest rate. If the California Department of Housing and Community Development publishes a percentage of Low and Moderate Household Income to be allocated to housing costs other than thirty percent (30%) of said income, then such other percentage shall be used in calculating the Maximum Resale Price pursuant to subsection (ii) of this paragraph, above. By way of example of computing the Maximum Resale Price under subsection(ii) of the immediately preceding paragraph, assume that the Low and Moderate Household Income is equal to $20,000.00 the annual cost of casualty insurance premiums,real property taxes and assessments for the Residence is equal to $1,000.00, and the average interest rate for a fixed rate 30 year mortgage charged by Bank of America N.T. & S.A. is equal to 10%. The annual maximum principal and interest payments payable for the mortgage is equal to 30% x 20,000.00 - $1,000.00 = $5,000.00 per year or $416.67 per month. The maximum principal amount of the loan is the present value of$416.67 per month paid over thirty years at 10%or$47,479.89. Therefore,the Regulatory Agreement (3 of 16) Eneida Reboucas Aimara Cespedes Freeman IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII F,�,20F93f1[3f245 9 eria maximum purchase price under subsection (ii) of the preceding paragraph is equal to $47,479.89/.9 = $52,755.43 plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit, less any Costs of Repair,plus the Agency Fee. Notwithstanding anything contained in this Section to the contrary withstanding, the Maximum Resale Price shall not be less than (i)the purchase price paid by the then current Owner for the Residence (including all closing costs actually paid by Owner) increased by an amount equal to two percent (2%) simple, but not compounded, interest per annum from the date the Restricted was purchased by the then current Owner through the date of the Initial Notice, as hereinafter defined; (ii) plus the documentable cost of any Capital Improvements installed by the then current Owner; (iii) plus usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (iv) less the Cost of Repairs; (v)plus the Agency Fee. (g) Moderate Income Household. The term"Moderate Income Household" shall mean a household earning no more than one hundred twenty percent(120%) of the median income for a household of the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093,or its successor statute. (h) Owner. The term "owner" shall mean any person who holds any fee interest m a Residence during the term of this Regulatory Agreement, including the Developer. A person shall not be deemed to be an Owner until the person acquires fee title to the Residence. Thus, a purchaser of a Residence shall not become an Owner until a grant deed is executed and delivered by the then current Owner of the Residence. (i) Purchase Price. The term"Purchase Price" shall mean that amount agreed upon by the Owner and Developer and approved by the Agency's Executive Director as the payment to be made by Owner to Developer for the purchase of the Property, which amount is One Hundred Forty Thousand Dollars($140,000.00) 0) Qualified Purchaser. The term "Qualified Purchaser" shall mean those persons who satisfy all of the following requirements: (1) The potential owner's (or owners') adjusted gross income, as shown on federal income tax retum(s), for the full calendar year immediately preceding the calendar year in which such person(s) seek to acquire the Property,does not exceed the Low and Moderate Income Household for the preceding calendar year. (2) The person(s) certify they intend to occupy the Property as their principal residence and for no other purpose and that they will not enter into an agreement, whether oral or written, for the rental or lease of the Property. (3) The person(s) do not own any other residential real property at the time of purchase, and have not owned any other residential real property in the three preceding years. (4) The person(s) demonstrate to the Agency's satisfaction that Agency Financial Assistance is required for the purchase of the Property. Regulatory Agreement (4 of 16) Eneida Reboucas p Aimara Cespedes Freeman III I IIIIII IIII IIII IIII I(IIII IIIIII I II I IIII IIII 02 r'FJy'4 20CIq C 1c iEi[aF (1) Residence. The term "Residence" shall mean the residence constituting the Property. (m) Sale Proceeds. The term "Sale Proceeds" shall mean the net proceeds from the sale of the Property to a purchaser who is not a Qualified Purchaser. The formula for determining the Sale Proceeds is as follows: (Gross proceeds of sale) minus (costs of sale, such as escrow, title and broker fees and the Agency Fee) minus (the amount paid to retire any mortgages that financed the purchase of the Residence) minus (Owner's original investment) minus (the aggregate amount of principal payments made by Owner on any mortgages that financed the purchase of the Residence) minus (the documentable cost of any Capital Improvements)= Sale Proceeds. 2. 1NCOMF,INFORMATION_ Owner has submitted an eligibility verification form to Agency prior to execution of this Agreement. Owner represents, warrants, and declares under penalty of perjury to Agency that all information Owner has provided and will provide in the future to Agency is and will be true, correct and complete. 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. RESTRICTIONS ON SALF, OF THE;PROPERTY. Developer and Owner covenant and agree for themselves and their successors and assigns to their interest in the Property that the sale, resale, and occupancy of the Property shall be restricted as follows: (a) Occupancy Standards. The Property shall be used as the principal residence of Owner and Owner's family and for no other purpose. Owner shall not enter into an agreement for the rental or lease of the Property. (b) Notice to Agency of Intent to Sell. If Owner desires to sell, exchange, quitclaim, or in any manner dispose of the Property, or any part thereof("Proposed Sale"), Owner shall first notify Agency in writing not less than thirty(30)days prior to entering into any binding agreement for such a Proposed Sale. (c) Sale to Qualified Purchaser. Except as expressly provided in this Agreement, the Property shall be sold, conveyed, assigned or otherwise transferred to a Qualified Purchaser for a sales price which is equal to or less than the Maximum Resale Price. Agency shall cooperate with Owner in providing information to Owner and to qualifying lenders to enable them to calculate the Maximum Resale Price and whether a prospective purchaser meets the legal low or moderate income standard. (d) Agency Approval of Prospective Purchasers. Owner shall submit to Agency all offers received by the Owner for the Property. The Agency may elect to schedule a meeting with Regulatory Agreement (5 of 16) Eneida Reboucas Aimara Cespedes Freeman II III I I I I III I I II 111111111 II F,2!ee{5 rfQ rir,a the prospective purchaser. Based upon the information submitted by Owner and the prospective purchaser, the Agency shall verify that the prospective purchaser is a Qualified Purchaser and that the sales price is less than or equal to the Maximum Resale Price. The Owner and the prospective purchaser shall provide such supporting documentation the Agency reasonably deems appropriate, including an income tax return of the prospective purchaser. Upon Agency's approval, the Owner may thereafter sell the Property to the Qualified Purchaser upon the terms and conditions submitted to the Agency, and subject to the restrictions in this Agreement. If the Property is sold to a Qualified Purchaser, then Owner shall not be required to share any Sale Proceeds with Agency pursuant to Section 3(e)below. (e) Sale of Property to Non-Qualified Purchaser. Owner shall use best efforts to sell the Property to a Qualified Purchaser, including listing of the Property at or below the Maximum Resale Price. "Best efforts" includes obtaining a broker, listing the Property on the multiple listing service, holding open houses, advertising and such other methods as normally undertaken to sell residential property. If after ninety (90) days following the Agency's receipt of written notice of Owner's intent to sell, and despite Owner's best efforts, Owner has not received a bona fide offer from a Qualified Purchaser to purchase the Property at the lesser of(i) the Maximum Resale Price, or(ii)the appraised fair market value of the Property, Owner shall notify Agency in writing that the Property has not been sold. (1) Rejection of Offer from Qualified Purchaser. Owner's rejection of an offer from a Qualified Purchaser shall be subject to Agency's approval of the reasonableness of the rejection, which Agency approval shall not be unreasonably denied. Notwithstanding the foregoing, Owner shall not reject a bona fide offer from a Qualified Purchaser solely on the basis of the offered purchase price, provided that the offer is equal to the lesser of(i) the Maximum Resale Price, or(ii)the appraised fair market value of the Property. (2) Termination of Escrow. Once an offer from a Qualified Purchaser has been accepted and escrow has been opened, and if escrow should thereafter be terminated for any reason prior to closing, then a new ninety (90) day period for marketing the Property to a Qualified Purchaser shall commence upon Agency's receipt of written notice from Owner that the escrow has been terminated. (3) Agency's Sale Right. If the Owner has not received an offer from a Qualified Purchaser within the time period set forth in Section 3(e), then Agency shall have the right to cause the sale of the Property to a third party who is a Qualified Purchaser, at a price not to exceed the lesser of. (i) the Maximum Resale Price, or (ii) the appraised fair market value of the Property. Agency's exercise of such right shall be made by delivery of written notice to Owner within thirty (30) days after Agency receives written notice that the Property has not been sold. In the event Agency arranges the purchase by a Qualified Purchaser, an escrow shall be established to close within sixty(60) days after delivery of Agency's notice of exercise. At the election of Agency, Agency may appoint a certified, independent appraiser to conduct an appraisal of the Property, at Agency's expense, to assist Agency in determining if the Maximum Resale Price is at or near the fair market value of the Property at such time. Regulatory Agreement (6 of 16) Eneida Reboucas Aimara Cespedes Freeman II III I I I I III I I II II I I II r2 2rF/c0�c 08 F1nq In the event Agency fails to agree in writing to nominate a Qualified Purchaser within thirty (30) days of receipt of written notice from Owner, the Property may be marketed by Owner to non-Qualified Purchasers at a market rate that may exceed the Maximum Resale Price; provided, however, that Owner shall continue to use its best efforts to sell the Property to a Qualified Purchaser. Owner's failure to sell the Property to a Qualified Purchaser shall obligate Owner to share the Sale Proceeds, if any, with the Agency in accordance with the formula set forth in Section 3(e)(4)below. (4) Agency's Share of Sale Proceeds. If the Property is sold to a purchaser who is not a Qualified Purchaser, then the Agency shall receive a declining pro rata percentage of the Sale Proceeds at the time of the sale, depending on the year in which the Property is sold. The pro rats percentage (the "Share Ratio") shall be equal to the ratio determined by dividing (a) the Agency Financial Assistance by (b) the Purchase Price. The Agency' share is then derived by multiplying the Sale Proceeds by the Share Ratio by the applicable percentage set forth in the following table. The longer the Property is owned, the less Sale Proceeds are shared with the Agency. After a period of nine years, no Sale Proceeds are due the Agency. The Agency shall receive its share of the Sale Proceeds at the close of escrow for the sale of the Property. The schedule for determining the Agency's share of the Sale Proceeds is as follows: 2002 100% (or prior) 2003 90% 2004 80% 2005 70% 2006 60% 2007 50% 2008 40% 2009 30% 2010 20% 2011 10% The sharing of Sale Proceeds with the Agency shall not apply when: (i) Owner sells or transfers the Property to a Qualified Purchaser; (ii) the transfer is due to the assumption of ownership by inheritance upon death of the Owner; (iii) the transfer is due to the assumption of ownership by one spouse in connection with a divorce; or (iv) the transfer is due to some other circumstance that does not involve the exchange of consideration and is approved in writing by Agency. Regulatory Agreement (7 of 16) Eneida Reboucas Aimara Cespedes Freeman II IIIIII III IIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIII rz'fa[zr 308 0or, (f) Agency Fee. The Agency shall be entitled to receive the Agency Fee for the services provided under this Regulatory Agreement. The Agency Fee shall be paid to the Agency through the escrow for the sale of the Residence. The Agency Fee shall be paid from funds accruing to the benefit of the Owner. (g) Section 143 of the Internal Revenue Code. If and for so long as the Residence is financed by a loan made with the proceeds of qualified mortgage bonds, it may only be sold to a person or family who qualifies for such financing under Section 143 of the Internal Revenue Code. 4. LIMITATION ON ENCUMBRANCES. Notwithstanding anything to the contrary contained in this Agreement, Owner shall not mortgage the Property or any portion thereof or any interest therein, or enter into any other form of conveyance for financing during the term of this Agreement, except for the following purposes: (a) financing the purchase of the Property from Developer or a subsequent owner (the "First Lien");or (b) refinancing of the First Lien for a loan amount not to exceed the then current loan balance secured by the First Lien; or (c) financing the construction of improvements on the Property but only if such improvements are approved in writing by Agency and do not exceed five percent (S%) of the then current loan balance secured by the First Lien. The Owner shall provide such documentation as may be reasonably required by Agency to show that the financing permitted by this Section 4(c) was used for the construction of the improvements approved in writing by Agency. The Owner shall not enter into any such conveyance for financing without the prior written approval of the Agency. Any lender approved by the Agency shall not be bound by any material amendment, implementation, or modification to this Agreement subsequent to the recordation of its mortgage without such lender giving its prior written consent thereto. 5. SUBORDTNATTON. This Agreement shall be subordinate to any First Lien on the Property held by the First Lien's Holder ("Holder"), and shall not impair the rights of Holder, or Holder's assignee or successor in interest, to exercise its remedies under the First Lien in the event of a default under the Fast Lien by Owner. In the event of a foreclosure or deed in lieu of foreclosure of the First Lien, this Agreement shall be terminated and shall have no further force or effect on subsequent owners of the Property. Any person, including his or her successors or assigns (other than Owner or a related person or entity of Owner), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Lien shall receive title to the Property free and clear from the restrictions in this Agreement. Further, if the Holder acquires title to the Property pursuant to a deed in lieu of foreclosure, this Agreement shall be terminated upon Holder's acquisition of title, provided that Regulatory Agreement (8 of 16) Eneida Reboucas �FaFi t �q a Aimara Cespedes Freeman III III I II I I I I II III II II III II II E+212F'V[io f 1 fiFiF (i) Agency has been given written notice of a default under the First Lien concurrently with any notice provided to the Owner, and (ii) Agency shall not have cured the default under the First Lien, or diligently pursued curing the default, within the time period provided to Owner under the First Lien, as shall be described in the notice sent to Agency. 6. MAINTENANCE OF PROPERTY, (a) Maintenance Obligation. Owner shall maintain the improvements and landscaping on the Property and adjacent landscaped parkways in a manner consistent with community standards which will uphold the value of the Property, in accordance with the Palm Springs Municipal Code. Owner also agrees to comply with any and all covenants and agreements established by any Declaration of Covenants, Conditions, and Restrictions controlling the Property and to comply with all applicable federal, state and local laws. (b) Right of Entry. In the event any Owner fails to maintain his, her, or their Residence in the above-mentioned condition, and satisfactory progress is not made in correcting the condition within thirty(30) days from the date of written notice from the Agency,the Agency may, at its option, and without further notice to Owner, declare the unperformed maintenance to constitute a public nuisance. Thereafter,the Agency, or its employees, contractors or agents,may cure the default by entering upon the Residence and performing the necessary landscaping and/or maintenance. The Agency shall give Owner notice of the tinie and manner of entry, and entry shall only be at such times and in such manner as is reasonably necessary to carry out his Regulatory Agreement. Owner shall pay such costs as are reasonably incurred by Agency for such maintenance. (c) Lien. If the costs incurred pursuant to Section 4.2 are not reimbursed within thirty (30) days after receipt of notice thereof, the same shall be deemed delinquent, and the amount thereof shall bear interest thereafter at a rate of ten percent (10%) per armum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorney's fees, shall be a lien and charge, with power of sale, upon the Residence. Any such lien may be enforced by power of sale by the Agency following recordation of a Notice of Default given in the manner and time required by law as in the case of a deed of trust. Such sale shall be conducted in accordance with the provisions of Section 2924, et seq., of the California Civil Code applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted by law. Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or deed of trust covering an ownership interest in and to the Residence, and any purchaser at any foreclosure or trustee's sale (as well as any deed or assignment in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall take title free from any such monetary lien, but otherwise subject to the provisions hereof, provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided for herein to the extent they relate to the expenses incurred subsequent to such foreclosure, assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject parcel after the date of such foreclosure sale, shall become a lien upon such parcel upon recordation of a Notice of Default as herein provided. Regulatory Agreement (9 of 16) Eneida Reboucas Aimara Cespedes Freeman 111111111 Jill e 111--13` J ,ti 7. ENFORCEMENT. (a) Events of Default. In the event Owner defaults in the performance or observance of any covenant, agreement or obligation of Owner set forth in this Regulatory Agreement, and if such default remains uncured for a period of thirty(30) days after written notice thereof shall have been given by Agency, or, in the event said default cannot be cured within said time period, Owner has failed to commence to cure such default within said thirty (30) days and diligently prosecute said cure to completion, then Agency shall declare an "Event of Default' to have occurred hereunder, and, at its option,may take one or more of the following steps: (1) By mandamus or other suit, action or proceeding at law or in equity,require Owner to perform its obligations and covenants hereunder or enjoin any acts or things which may be unlawful or in violation of this Regulatory Agreement;or (2) Take such other action at law or in equity as may appear necessary or desirable to enforce the obligations,covenants and agreements of Owner hereunder. Failure or delay in giving notice shall not constitute a waiver of any default, nor shall it change the time of default. 8. NONDISCRIMINATION. (a) Obligation to Refrain from Discrimination. There shall be no discrimination against, or segregation of, any persons, or group of persons, on account of race, color, ancestry, religion, sex, marital status, disability (including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income, in the sale, transfer, use, occupancy or enjoyment of the Residences, or any portion of the Residences,nor shall Developer or any Owner, or any person claiming under or through Developer or any Owner, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of purchasers of the Residences or any portion thereof. The nondiscrimination and nonsegregation covenants contained herein shall remain in effect in perpetuity- (b) Form of Nondiscrimination and Nonsegregation Clauses. Owner shall refrain from restricting the sale of any portion of the Residence'on the basis of race, color, ancestry, religion, sex, marital status, disability(including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income, of any person. All such deeds or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (1) Deeds. In deeds the following language shall appear: "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, ancestry, religion, sex, marital status, disability (including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income, in the sale, transfer, use, occupancy, tenure Regulatory Agreement (10 of 16) Eneida Reboucas Aimara Cespedes Freeman 459 O II I IIII III II I II III I III IIIIII I II III I III d,'S�e'2L�ap2Fo1 OAA 2 or enjoyment of the land herein conveyed, nor shall the grantee, or any persons 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 purchasers in the land herein conveyed. The foregoing covenants shall run with the land." (b) Contracts. Any contracts which any Owners or their heirs, executors, administrators, or assigns propose to enter into for the sale or transfer of the Residence shall contain a nondiscrimination and nonsegregation clause substantially as set forth in this Section 8. Such clause shall bind the contracting parry and subcontracting party or transferee under the instrument. 9. COVENANTS TO RlIJN WITH THE, LAND. Owner hereby subjects the Property to the covenants, reservations and restrictions set forth in this Regulatory Agreement. The Agency and the Owner hereby declare their express intent that all such covenants, reservations and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors in title to the Property; provided, however, that on the termination of this Regulatory Agreement said covenants, reservations and restrictions shall expire, except as otherwise expressly provided. All covenants without regard to technical classification or designation shall be binding for the benefit of the Agency, and such covenants shall run in favor of the Agency for the entire term of this Regulatory Agreement, without regard to whether the Agency is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument. Agency and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Owner's legal interest in the Property is rendered less valuable thereby. Agency and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the possibility of enjoyment and use of the Property by Low and Moderate Income Households, the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the public purposes for which the Agency was formed. 10. TERM; TERMINATION. The term of this Agreement shall commence upon the close of escrow for the sale of the Property from Seller to Owner, and shall continue until the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), unless terminated earlier. This Agreement shall automatically terminate without any further action of the parties upon the earlier of. (a) the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), or (b) the sale of the Property to a purchaser who is not a Qualified Purchaser, provided the Agency receives its share of the net equity pursuant to Section 3(e) above. Regulatory Agreement (1 I of 16) Eneida Reboucas Aimara Cespedes Freeman III II I I I II I I III I I II II III II II F02,2P.'2 of08 �C0A 11. MISCELLANEOUS. (a) Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: If to Agency: Community Redevelopment Agency of the City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Attn: Executive Director With a copy to: Burke, Williams& Sorensen, LLP 18301 Von Karman Avenue, Suite 1050 Irvine, California 92612 Attn: David J. Aleshire,Esq. If to Owner: Eneida Reboucas and Aimara Cespedes Freeman 999 Cottonwood Road Palm Springs, CA 92264 With a copy to: Notices personally delivered or delivered by document delivery service shall be effective upon receipt. Mailed notice shall be effective at noon on the second business day following deposit with the United States Postal Service. Either parry may change its address for notice by giving written notice thereof to the other party. (b) Attorneys' Fees. In the event that a party to this Regulatory Agreement brings an action against the other parry hereto by reason of the breach of any condition or covenant, representation or warranty in this Regulatory Agreement, or otherwise arising out of this Regulatory Agreement, the prevailing parry in such action shall be entitled to recover from the other reasonably attorney's fees to be fixed by the court which shall render a judgment, as well as the costs of suits. Attorney's fees shall include attorney's fees on any appeal, and in addition a parry entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery. Regulatory Agreement (12 of 16) Eneida Reboucas II I II I I I I I I I I I III II III II II I III er 2FI1r_ fc54oaR Aimara Cespedes Freeman e.. 2 (c) Amendments. This Regulatory Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside. (d) Severability/Waiver/Integration. (1) If any provision of this Regulatory Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. (2) A waiver by either parry of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right. (3) This Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement. 12. F[TTERF.FNFORCFMFNT BY CTTV The parties hereby agree that should the Agency cease to exist as an entity at any time during the term of this Regulatory Agreement, the Agency shall have the right to assign its rights and delegate its duties and obligations hereunder to the City of Palm Springs or to another governmental or quasi-governmental agency approved by the City in writing or to a non-profit corporation devoted to developing affordable housing approved in writing by the City. Regulatory Agreement (13 of 16) Eneida Reboucas FJR 1'3N m i Aimara Cespedes Freean IIIIII IIII IIII I I IIII III I II II III IIIIII II II Ea2:'c'E.'2 'f i OAR IN WITNESS WHEREOF, the Agency and Owner have executed this Regulatory Agreement as of the day and year written below. "OW/N/E`R" i Date: lj. (�— >`� By: �� C6� �� �� `li 6-3 Eneida Reboucas Aimara Cespedes Freeman "AGENCY" COMMUNITY REDEVELOPMENT AGENCY, OF THE CITY OF PALM SPRINGS, a public body corporate and politic Date: By: fl ` EX6GU ive-Di-rMor ATTEST: Assistant Seeretary l e�i�l�h)�t'+d' j l �s� APPROVED AS TO FORM: BURKE, WILLIAMS & SORENSEN, LLP Zvi ZW1,L" Agen } Co sel [END OF SIGNATURES] Regulatory Agreement (14 of 16) Eneida Reboucas Aimara Cespedes Freeman - I IIIIII IIIIII IIII IIII IIIIII IIIII IIIIIII III IIIIII III IIII �L.2001-26114 E C+J01 0E+R CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside '"' — t s Elaine L. Wedekind Notary Public On i-�-, �/ before me, — Y , Dale Name and Title of Officer(e.g.,"Jane Doe,Notary Pubbd) personally appeared William G. Kleindienst and Patricia A. Sanders Name(s)of Signer(s) impersonally known to me-OR- to be the persons) whose name(s)Ware subscribed to the within instrument and acknowledged to me that Rii%li+L/they executed the same in 1tIVW/their authorized capacity(ies),and that by Ci11fgWtheir signature(s) on the instrument the person(s), �- or the entity upon behalf of which the person(s) acted, executed the instrument. 'V706924 R1 'IA IVERSIDE COUNTY WITNESS my hand and official seal. n COMM.EXP.FED.3 2003 4rJin n _ e.o:, S nature of Note Public C, 9 7 c OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. r� Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Individual ❑ Individual ❑ Corporate Officer ❑ Corporate Officer Title(s): Title(s): ❑ Partner—❑ Limited ❑ General ❑ Partner—❑ Limited ❑ General ❑ Attorney-in-Fact ❑ Attorney-in-Fact ❑ Trustee ❑ Trustee [I Guardian or Conservator ❑ Guardian or Conservator ❑ Other: Top of thumb here ❑ Other: Top of thumb here Signer Is Representing: Signer Is Representing: ®1994 National Notary Assoclabon•8236 Remmet Ave,P.O Box 7164•Canoga Park,CA 91309.7104 Prod No.5907 Bearden Call Toll-Free 1-800-876-6827 STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) 'f A/ P /03 Yvette Garza Muela, Notary Public On before me, , personally appeared Rnelida R boucas b Aimara Cespedes Freemaa pe-senall -1Cxown-te-me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) isfare subscribed to the within instrument and acknowledged to me that he/sh /e hey tecuted the same in his/her/t eir pAthorized capaciiy(ies), and that by his her/theinsignature(s) instrument the person(s), or the entity upon behalf of which the person s a e , exe ut e st ent. WITNESS my hand and official sea . OFFICIAL SEAL YVETTE GARZA MUELA COMM*1242599 C) Notary Public-California /i RIVERSIDE COUNTY I My Commission E Pi m i NOVEMBER ms 20, f (SEAL) I STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On before me, 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. (SEAL) Regulatory Agreement (15 of 16) Eneida Reboucas Aimara Cespedes Freeman III IIIII III II I II I I I III II III II II III III ��. dFFliIr of 1yE1FW ATTACHMENT "1" TO REGULATORY AGREEMENT LEGAL DESCRIPTION OF PROPERTY Lot 7 of Tract 29695, recorded in Book 315, Pages 6 to 8 inclusive, of Maps, records of Riverside County, California. Regulatory Agreement (16 of 16) Eneida Reboucas Aimara Cespedes Freeman ^00,+ 1 2 4`9 IIIIIIIIIIIIII I III II III II IIIIII I II r, , �, [,, -r'icn lr Government Code 27361.7 I certify under penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name of notary: E I a� VI-( L` M(C e �8 VlC,C Commission No.: Date Commission expires: �. County: By: � 1 _ Date: 7, DOC " 2003-131T51 tl fit` y 02/26/2003 08:00R Fee:NC Page 1 of 17 RECORDED AT THE ) Recorded in Official Records County of Riverside REQUEST OF AND WHEN ) Gary L. Orso RECORDED RETURN TO: I Assessor, County Clerk & Recorder 111111111111111111111111111111111111111111111111111111 Community Redevelopment Agency ) -- _ of the City of Palm Springs Coachella Valley Housing P.O. Box 2743 Mora Regulatory Agr 3200 Tahquitz Canyon Way ) AGREEMENT #394C Pahn Springs, CA 92263 ) 5d RAGE sZE R1158, 12-19-ol Attn: ) i-- - �C, A R COPY OpIG REFONO NCHG E%AM (SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE) (EXEMPT FROM RECORDING FEE PER GOV.CODE`6103) _PK REGULATORY AGREEMENT COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS THIS REGULATORY AGREEMENT (the "Agreement") is made this 17,,I, day of 200� by and between JESUS SALVADOR MORA AND MARIA CARMEN MORA ("Owner") and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS ("Agency"). RELIIALS A. Owner has entered into an agreement (the "Purchase Agreement") to purchase from the Coachella Valley Housing Coalition (the "Developer") certain real property located at 957 Cottonwood Road, Palm Springs, California, 92264, Palm Springs, California, which real property is more particularly described in Exhibit"1"attached hereto and incorporated herein(the "Property"). B. Agency has agreed to provide financial assistance in the development of the housing project in which the Property is located. Agency's activities in this regard are designed to implement Agency's effort to assist persons and families of moderate-income or lower ("Eligible Persons and Families") to purchase residential property and to increase, improve, and preserve the supply of moderate-income and lower housing available within the territorial jurisdiction of Agency, in accordance with the Community Redevelopment Law (California Health and Safety Code Sections 33000 et seq.). C. Agency and the Developer entered into an Owner Participation Agreement dated September 1, 1999 (the "OPA"). Pursuant to the terms of the OPA, title to the Property may be Regulatory Agreement (1 of 16) Jesus Salvador Mora Maria Carmen Mora vested in Owner subject to this Regulatory 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. The Agency's financial assistance and the use and affordability restrictions imposed by Agency have enabled Owner to purchase the Property with financial assistance provided for in the OPA. hi exchange for Agency's assistance, Owner agrees to the restrictions on the sale, resale, and occupancy of the Property created by this Agreement. NOW, THEREFORE, the Developer, Owner and Agency declare, covenant and agree, by and for themselves, their heirs, executors, administrators and assigns, and all persons claiming under or through them, that the Property shall be held, transferred, encumbered, used, sold, conveyed, leased and occupied, subject to the covenants and restrictions hereinafter set forth. 1. DEFINITIONS. (a) Agency Fee. The term "Agency Fee" shall mean the fee the Agency is entitled to receive for its services under this Regulatory Agreement, which fee shall be in the amount of the reasonable costs of such services (including out of pocket expenses incurred for any reports, fees, or other costs related to the approval of the close of a sale of a Residence, but not including the cost of staff time); provided, however, that, said fee shall not be greater than One-Half of One Percent(.5%)of the Initial Selling Price or the Maximum Resale Price, as applicable. (b) Agency Financial Assistance. The term"Agency Financial Assistance" shall mean an amount determined necessary for the development of the project by the project pro forma, after all other sources of financing, public and private, have been included, and which have been assumed by the Agency to assist a Qualified Purchaser. The Agency Financial Assistance shall be applied to the down payment required to purchase the Property. The amount of Agency Financial Assistance is Sixteen Thousand Seventy Dollars ($16,070.00). (c) Capital Improvement. The term "Capital Improvement" shall mean any capital improvements installed by Owner (but not a predecessor-in-interest of the Owner) to the Residence costing in excess of Five Hundred Dollars ($500.00) in any one (1) year which are properly characterized as capital improvements, as distinguished from maintenance items, under the Internal Revenue Code and the regulations promulgated thereunder pursuant to a building permit,if required by the City,and approved by the Agency, if required. (d) Cost of Repair. The term "Cost of Repair" shall mean the cost, as reasonably determined by the Agency,to repair any violations of applicable building, plumbing, electric, fire, or housing codes or any other provision of the Palm Springs Municipal Code, the cost to repair any damage to a Residence and the cost to put the Residence into a saleable condition, as reasonably determined by the Agency, including,but not limited to, cleaning,painting, cleaning or replacing worn carpeting and draperies, and making needed structural, mechanical, electrical, plumbing and fixed appliance repairs. (e) Low Income Household. The term "Low Income Household" shall mean a household earning no more than eighty percent (80%) of the median income for a household of Regulatory Agreement (2 of 16) Jesus Salvador Mora Maria Carmen Mora IIIIII IIIIII IIII IIIIIII III IIIIII IIIIII III IIIII IIII IIII fwc. c6F�,n�7' '� @Jn 1 the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, or its successor statute. (f) Maximum Resale Price. The "Maximum Resale Price" shall mean (i) the purchase price paid by the then current Owner, other than the Developer, (except that the purchase price for the first Qualified Purchaser of the Residence shall be the Initial Selling Price) for the Residence (including all closing costs actually paid by Owner) (not the purchase price proposed to be paid by the prospective purchaser to the Owner) increased (but not decreased) by the percentage change between Low or Moderate Household Income, published for the year the Residence was purchased by the then current Owner and the Low or Moderate Household Income, published for the year immediately preceding the year the Residence is to be sold by the then current Owner; (ii) plus the documentable cost of any Capital Improvements; (iii) plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (iv) less Cost of Repairs; (v)plus the Agency Fee. Provided that, however; for the first sale, conveyance, assignment or other transfer of the Residence occurring on or after the seventh (7t ), fourteenth (14') and twenty-first (21s) anniversary of the initial sale of the Residence, the Maximum Resale Price for a Residence shall be recomputed as the lesser of(i)the amount calculated pursuant to the preceding paragraph or(ii) (a) an amount which, assuming a ten percent (10%) down payment were made by the Qualified Purchaser and assuming a loan were made which, if amortized over thirty(30)years at the average rate of interest published by Bank of America, N.T. & S.A. for thirty (30) year fixed rate mortgages for the month that the Initial Notice, as hereinafter defined, is given, the annual principal and interest payments of such mortgage when added to annual casualty insurance premiums and annual real property taxes and assessments for the Residence shall not exceed thirty percent (30%) of the then Low or Moderate Household Income; (b)plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (c) less the Cost of Repairs; (d) plus the Agency Fee. The foregoing calculation of Low and Moderate Household Income shall be computed based upon a six-person household, if the Residence is a three- bedroom unit; an eight-person household if the Residence is a four-bedroom unit. If Bank of American no longer publishes such an interest rate, then the Agency shall designate another bank or financial institution which publishes such an interest rate. If the California Department of Housing and Community Development publishes a percentage of Low and Moderate Household Income to be allocated to housing costs other than thirty percent (30%) of said income, then such other percentage shall be used in calculating the Maximum Resale Price pursuant to subsection (ii) of this paragraph, above. By way of example of computing the Maximum Resale Price under subsection (ii) of the immediately preceding paragraph, assume that the Low and Moderate Household Income is equal to $20,000.00 the annual cost of casualty insurance premiums, real property taxes and assessments for the Residence is equal to $1,000.00, and the average interest rate for a fixed rate 30 year mortgage charged by Bank of America N.T. & S.A. is equal to 10%. The annual maximum principal and interest payments payable for the mortgage is equal to 30% x 20,000.00 - $1,000.00 _ $5,000.00 per year or $416.67 per month. The maximum principal amount of the loan is the present value of$416.67 per month paid over thirty years at 10% or$47,479.89. Therefore, the Regulatory Agreement (3 of 16) Jesus Salvador Mora Maria Cat-men Mora IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 02;2E 3 f 1G1©0H maximum purchase price under subsection (ii) of the preceding paragraph is equal to $47,479.89/.9 = $52,755.43 plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit, less any Costs of Repair, plus the Agency Fee. Notwithstanding anything contained in this Section to the contrary withstanding, the Maximum Resale Price shall not be less than (i)the purchase price paid by the then current Owner for the Residence (including all closing costs actually paid by Owner) increased by an amount equal to two percent (2%) simple, but not compounded, interest per annum from the date the Restricted was purchased by the then current Owner through the date of the Initial Notice, as hereinafter defined; (ii) plus the documentable cost of any Capital Improvements installed by the then current Owner; (iii) plus usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (iv) less the Cost of Repairs; (v)plus the Agency Fee. (g) Moderate Income Household. The term"Moderate Income Household" shall mean a household earning no more than one hundred twenty percent(120%)of the median income for a household of the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, or its successor statute. (h) Owner. The term "owner" shall mean any person who holds any fee interest in a Residence during the term of this Regulatory Agreement, including the Developer. A person shall not be deemed to be an Owner until the person acquires fee title to the Residence. Thus, a purchaser of a Residence shall not become an Owner until a grant deed is executed and delivered by the then current Owner of the Residence. (i) Purchase Price. The term"Purchase Price" shall mean that amount agreed upon by the Owner and Developer and approved by the Agency's Executive Director as the payment to be made by Owner to Developer for the purchase of the Property, which amount is One Hundred Forty Thousand Dollars ($140,000.00) 0) Qualified Purchaser. The term "Qualified Purchaser" shall mean those persons who satisfy all of the following requirements: (1) The potential owner's (or owners') adjusted gross income, as shown on federal income tax return(s), for the full calendar year immediately preceding the calendar year in which such person(s) seek to acquire the Property, does not exceed the Low and Moderate Income Household for the preceding calendar year. (2) The person(s) certify they intend to occupy the Property as their principal residence and for no other purpose and that they will not enter into an agreement, whether oral or written, for the rental or lease of the Property. (3) The person(s) do not own any other residential real property at the time of purchase, and have not owned any other residential real property in the three preceding years. (4) The person(s) demonstrate to the Agency's satisfaction that Agency Financial Assistance is required for the purchase of the Property. Regulatory Agreement (4 of 16) Jesus Salvador Mora Maria Carmen Mora III II III I II I IIIII III III I II III I II II I II IIII ,z F,4 of II F (1) Residence. The term "Residence" shall mean the residence constituting the Property. (m) Sale Proceeds. The term "Sale Proceeds" shall mean the net proceeds from the sale of the Property to a purchaser who is not a Qualified Purchaser. The formula for determining the Sale Proceeds is as follows: (Gross proceeds of sale) minus (costs of sale, such as escrow, title and broker fees and the Agency Fee) minus (the amount paid to retire any mortgages that financed the purchase of the Residence) minus (Owner's original investment) minus (the aggregate amount of principal payments made by Owner on any mortgages that financed the purchase of the Residence) minus (the documentable cost of any Capital Improvements)=Sale Proceeds. 2. INCOME INFORMATION, Owner has submitted an eligibility verification form to Agency prior to execution of this Agreement. Owner represents, warrants, and declares under penalty of perjury to Agency that all information Owner has provided and will provide in the future to Agency is and will be true, correct and complete. 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. RESTRICTIONS ON SALE OF THE.PROPERTY, Developer and Owner covenant and agree for themselves and their successors and assigns to their interest in the Property that the sale, resale, and occupancy of the Property shall be restricted as follows: (a) Occupancy Standards. The Property shall be used as the principal residence of Owner and Owner's family and for no other purpose. Owner shall not enter into an agreement for the rental or lease of the Property. (b) Notice to Agency of Intent to Sell. If Owner desires to sell, exchange, quitclaim, or in any manner dispose of the Property, or any part thereof("Proposed Sale"), Owner shall first notify Agency in writing not less than thirty(30) days prior to entering into any binding agreement for such a Proposed Sale. (c) Sale to Qualified Purchaser. Except as expressly provided in this Agreement, the Property shall be sold, conveyed, assigned or otherwise transferred to a Qualified Purchaser for a sales price which is equal to or less than the Maximum Resale Price. Agency shall cooperate with Owner in providing information to Owner and to qualifying lenders to enable them to calculate the Maximum Resale Price and whether a prospective purchaser meets the legal low or moderate income standard. (d) Agency Approval of Prospective Purchasers. Owner shall submit to Agency all offers received by the Owner for the Property. The Agency may elect to schedule a meeting with Regulatory Agreement (5 of 16) Jesus Salvador Mora I I III IIIIIIIIIIIIIIII II III IIIII III r . Maria Carmen Mora 2F4At1l r� eFEpF©F _ fr the prospective purchaser. Based upon the information submitted by Owner and the prospective purchaser, the Agency shall verify that the prospective purchaser is a Qualified Purchaser and that the sales price is less than or equal to the Maximum Resale Price. The Owner and the prospective purchaser shall provide such supporting documentation the Agency reasonably deems appropriate, including an income tax return of the prospective purchaser. Upon Agency's approval, the Owner may thereafter sell the Property to the Qualified Purchaser upon the terms and conditions submitted to the Agency, and subject to the restrictions in this Agreement. If the Property is sold to a Qualified Purchaser, then Owner shall not be required to share any Sale Proceeds with Agency pursuant to Section 3(e)below. (e) Sale of Property to Non-Qualified Purchaser. Owner shall use best efforts to sell the Property to a Qualified Purchaser, including listing of the Property at or below the Maximum Resale Price. "Best efforts" includes obtaining a broker, listing the Property on the multiple listing service, holding open houses, advertising and such other methods as normally undertaken to sell residential property. If after ninety (90) days following the Agency's receipt of written notice of Owner's intent to sell, and despite Owner's best efforts, Owner has not received a bona fide offer from a Qualified Purchaser to purchase the Property at the lesser of(i) the Maximum Resale Price, or(ii)the appraised fair market value of the Property, Owner shall notify Agency in writing that the Property has not been sold. (1) Rejection of Offer from Qualified Purchaser. Owner's rejection of an offer from a Qualified Purchaser shall be subject to Agency's approval of the reasonableness of the rejection, which Agency approval shall not be unreasonably denied. Notwithstanding the foregoing, Owner shall not reject a bona fide offer from a Qualified Purchaser solely on the basis of the offered purchase price, provided that the offer is equal to the lesser of (i) the Maximum Resale Price, or(ii)the appraised fair market value of the Property. (2) Termination of Escrow. Once an offer from a Qualified Purchaser has been accepted and escrow has been opened, and if escrow should thereafter be terminated for any reason prior to closing, then a new ninety (90) day period for marketing the Property to a Qualified Purchaser shall commence upon Agency's receipt of written notice from Owner that the escrow has been terminated. (3) Agency's Sale Right. If the Owner has not received an offer from a to exceed the lesser of (i) the Maximum Resale Price, or (ii) the appraised fair market value of the Propertv. Agency's exercise of such right shall be made by delivery of written notice to Owner within thirty (30) days after Agency receives written notice that the Property has not been sold. hi the event Agency arranges the purchase by a Qualified Purchaser, an escrow shall be established to close within sixty(60)days after delivery of Agency's notice of exercise. At the election of Agency, Agency may appoint a certified, independent appraiser to conduct an appraisal of the Property, at Agency's expense, to assist Agency in determining if the Maximum Resale Price is at or near the fair market value of the Property at such time. Regulatory Agreement (6 of 16) Jesus Salvador Mora Maria Carmen Mora IIIIIIIIIII IIIIII IIIIII III IIIIIII II II IIIII F 2F6 of h�'FE,R In the event Agency fails to agree in writing to nominate a Qualified Purchaser within thirty (30) days of receipt of written notice from Owner, the Property may be marketed by Owner to non-Qualified Purchasers at a market rate that may exceed the Maximum Resale Price; provided, however, that Owner shall continue to use its best efforts to sell the Property to a Qualified Purchaser. Owner's failure to sell the Property to a Qualified Purchaser shall obligate Owner to share the Sale Proceeds, if any, with the Agency in accordance with the formula set forth in Section 3(e)(4) below. (4) Agency's Share of Sale Proceeds. If the Property is sold to a purchaser who is not a Qualified Purchaser, then the Agency shall receive a declining pro rata percentage of the Sale Proceeds at the time of the sale, depending on the year in which the Property is sold. The pro rata percentage (the "Share Ratio") shall be equal to the ratio determined by dividing (a) the Agency Financial Assistance by (b) the Purchase Price. The Agency' share is then derived by multiplying the Sale Proceeds by the Share Ratio by the applicable percentage set forth in the following table. The longer the Property is owned, the less Sale Proceeds are shared with the Agency. After a period of nine years, no Sale Proceeds are due the Agency. The Agency shall receive its share of the Sale Proceeds at the close of escrow for the sale of the Property. The schedule for determining the Agency's share of the Sale Proceeds is as follows: 11 � UNbw�2 YMP �py(,1` 1�'S„�C� d��y�;,�1n:�sW_� �S,p;3y�Jn�ty( �i�= SALl iR'1{1� �' F R3✓ ALI r, OF$ALl ',Pltt�CEEDS'• 2002 100% (or prior) 2003 90% 2004 80% 2005 70% 2006 60% 2007 50% 2008 40% 2009 30% 2010 20% 2011 10% The sharing of Sale Proceeds with the Agency shall not apply when: (i) Owner sells or transfers the Property to a Qualified Purchaser; (ii) the transfer is due to the assumption of ownership by inheritance upon death of the Owner; (iii) the transfer is due to the assumption of ownership by one spouse in connection with a divorce; or (iv) the transfer is due to some other circumstance that does not involve the exchange of consideration and is approved in writing by Agency. Regulatory Agreement (7 of 16) Jesus Salvador Mora Maria Carmen Mora IIIIIIIIIIIIIIIIIIIIII III IIIIII IIIIII III IIIII IIII IIII Rc` 1 cftlp f121R0F` (f) Agency Fee. The Agency shall be entitled to receive the Agency Fee for the services provided under this Regulatory Agreement. The Agency Fee shall be paid to the Agency through the escrow for the sale of,the Residence. The Agency Fee shall be paid from funds accruing to the benefit of the Owner. (g) Section 143 of the Internal Revenue Code. If and for so long as the Residence is financed by a loan made with the proceeds of qualified mortgage bonds, it may only be sold to a person or family who qualifies for such financing under Section 143 of the Internal Revenue Code. 4, LTMITATION ON F,NC iMRRANCF.S, Notwithstanding anything to the contrary contained in this Agreement, Owner shall not mortgage the Property or any portion thereof or any interest therein, or enter into any other form of conveyance for financing during the tern of this Agreement, except for the following purposes: (a) financing the purchase of the Property from Developer or a subsequent owner (the "First Lien"); or (b) refinancing of the First Lien for a loan amount not to exceed the then current loan balance secured by the First Lien; or (e) financing the construction of improvements on the Property but only if such improvements are approved in writing by Agency and do not exceed five percent (5%) of the then current loan balance secured by the First Lien. The Owner shall provide such documentation as may be reasonably required by Agency to show that the financing permitted by this Section 4(c) was used for the construction of the improvements approved in writing by Agency. The Owner shall not enter into any such conveyance for financing without the prior written approval of the Agency. Any lender approved by the Agency shall not be bound by any material amendment, implementation, or modification to this Agreement subsequent to the recordation of its mortgage without such lender giving its prior written consent thereto. 5. SITHORDiNATION_ This Agreement shall be subordinate to any First Lien on the Property held by the First Lien's Holder ("Holder"), and shall not impair the rights of Holder, or Holder's assignee or successor in interest, to exercise its remedies under the First Lien in the event of a default under the First Lien by Owner. In the event of a foreclosure or deed in lieu of foreclosure of the First Lien, this Agreement shall be terminated and shall have no further force or effect on subsequent owners of the Property. Any person, including his or her successors or assigns (other than Owner or a related person or entity of Owner), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Lien shall receive title to the Property free and clear from the restrictions in this Agreement. Further, if the Holder acquires title to the Property pursuant to a deed in lieu of foreclosure, this Agreement shall be terminated upon Holder's acquisition of title, provided that (i) Agency has been given written notice of a default under the First Lien concurrently with any notice Regulatory Agreement (8 of 16) Jesus Salvador Mora Maria Carmen Mora IIIIII IIIIII IIII IIIIIII III II III IIIII III IIII III III Fit?FFF 8 J i{,i 17 F provided to the Owner, and (ii) Agency shall not have cured the default under the First Lien, or diligently pursued curing the default, within the time period provided to Owner under the First Lien, as shall be described in the notice sent to Agency. 6. MATNTFNANCE OF PROPERTY. (a) Maintenance Obligation. Owner shall maintain the improvements and landscaping on the Property and adjacent landscaped parkways in a manner consistent with community standards which will uphold the value of the Property, in accordance with the Palm Springs Municipal Code. Owner also agrees to comply with any and all covenants and agreements established by any Declaration of Covenants, Conditions, and Restrictions controlling the Property and to comply with all applicable federal, state and local laws. (b) Right of Entry. In the event any Owner fails to maintain his, her, or their Residence in the above-mentioned condition, and satisfactory progress is not made in correcting the condition within thirty (30) days from the date of written notice from the Agency, the Agency may, at its option, and without further notice to Owner, declare the unperformed maintenance to constitute a public nuisance. Thereafter, the Agency, or its employees, contractors or agents, may cure the default by entering upon the Residence and performing the necessary landscaping and/or maintenance. The Agency shall give Owner notice of the time and manner of entry, and entry shall only be at such times and in such manner as is reasonably necessary to carry out his Regulatory Agreement. Owner shall pay such costs as are reasonably incurred by Agency for such maintenance. (c) Lien. If the costs incurred pursuant to Section 4.2 are not reimbursed within thirty (30) days after receipt of notice thereof, the same shall be deemed delinquent, and the amount thereof shall bear interest thereafter at a rate of ten percent (10%) per annum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorney's fees, shall be a lien and charge, with power of sale, upon the Residence. Any such lien may be enforced by power of sale by the Agency following recordation of a Notice of Default given in the manner and time required by law as in the case of a deed of trust. Such sale shall be conducted in accordance with the provisions of Section 2924, et seq., of the California Civil Code applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other wanner permitted by law. Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or deed of trust covering an ownership interest in and to the Residence, and any purchaser at any foreclosure or trustee's sale (as well as any deed or assignment in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall take title free from any such monetary lien, but otherwise subject to the provisions hereof; provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided for herein to the extent they relate to the expenses incurred subsequent to such foreclosure, assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject parcel after the date of such foreclosure sale, shall become a lien upon such parcel upon recordation of a Notice of Default as herein provided. Regulatory Agreement (9 of 16) Jesus Salvador Mora Maria Carmen Mora II II III I I IIII II I I II III I III III IIIII II II 1 02, ss12003 11001 7. ENFORCEMENT. (a) Events of Default. In the event Owner defaults in the performance or observance of any covenant, agreement or obligation of Owner set forth in this Regulatory Agreement, and if such default remains uncured for a period of thirty (30) days after written notice thereof shall have been given by Agency, or, in the event said default cannot be cured within said time period, Owner has failed to commence to cure such default within said thirty (30) days and diligently prosecute said cure to completion, then Agency shall declare an "Event of Default' to have occurred hereunder, and, at its option, may take one or more of the following steps: (1) By mandamus or other suit, action or proceeding at law or in equity, require Owner to perform its obligations and covenants hereunder or enjoin any acts or things which may be unlawful or in violation of this Regulatory Agreement; or (2) Take such other action at law or in equity as may appear necessary or desirable to enforce the obligations,covenants and agreements of Owner hereunder. Failure or delay in giving notice shall not constitute a waiver of any default, nor shall it change the time of default. S. NONDISCRIMINATION. (a) Obligation to Refrain from Discrimination. There shall be no discrimination against, or segregation of, any persons, or group of persons, on account of race, color, ancestry, religion, sex, marital status, disability(including AIDS and I11V diagnosis), national origin, familial status, sexual orientation or source of income, in the sale, transfer,use, occupancy or enjoyment of the Residences, or any portion of the Residences, nor shall Developer or any Owner, or any person claiming under or through Developer or any Owner, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of purchasers of the Residences or any portion thereof. The nondiscrimination and nonsegregation covenants contained herein shall remain in effect in perpetuity. (b) Form of Nondiscrimination and Nonsegregation Clauses. Owner shall refrain from restricting the sale of any portion of the Residence on the basis of race, color, ancestry, religion, sex, marital status, disability (including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income, of any person. All such deeds or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (1) Deeds. In deeds the following language shall appear: "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, ancestry, religion, sex, marital status, disability(including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income, in the sale, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee, or any persons claiming under or through him or her, establish or permit any such practice or practices of discrimination or Regulatory Agreement (10 of 16) Jesus Salvador Mora Maria Carmen Mora II III I I II I I I I II I III III et. &'1 D� 08 nAA segregation with reference to the selection, location, number, use or occupancy of purchasers in the land herein conveyed. The foregoing covenants shall run with the land." (b) Contracts. Any contracts which any Owners or their heirs, executors, administrators, or assigns propose to enter into for the sale or transfer of the Residence shall contain a nondiscrimination and nonsegregation clause substantially as set forth in this Section 8. Such clause shall bind the contracting party and subcontracting parry or transferee under the instrument. 9, COVENANTS TO Ri1N WITH THE, LAND. Owner hereby subjects the Property to the covenants, reservations and restrictions set forth in this Regulatory Agreement. The Agency and the Owner hereby declare their express intent that all such covenants, reservations and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors in title to the Property; provided, however, that on the termination of this Regulatory Agreement said covenants, reservations and restrictions shall expire, except as otherwise expressly provided. All covenants without regard to technical classification or designation shall be binding for the benefit of the Agency, and such covenants shall run in favor of the Agency for the entire term of this Regulatory Agreement, without regard to whether the Agency is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument. Agency and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Owner's legal interest in the Property is rendered less valuable thereby. Agency and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the possibility of enjoyment and use of the Property by Low and Moderate Income Households, the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the public purposes for which the Agency was formed. 10. TERM- TERMINATION. The term of this Agreement shall commence upon the close of escrow for the sale of the Property from Seller to Owner, and shall continue until the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), unless terminated earlier. This Agreement shall automatically terminate without any further action of the parties upon the earlier of. (a) the expiration of the land use controls in the Redevelopment Plan(December 29, 2028), or(b) the sale of the Property to a purchaser who is not a Qualified Purchaser, provided the Agency receives its share of the net equity pursuant to Section 3(e) above. Regulatory Agreement (11 of 16) Jesus Salvador Mora Maria Carmen Mora II II IIIIIII III I IIII II III I I II 1 02i2F 0nn [f1 11 f Fl 11. MISCELLANEOUS. (a) Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: If to Agency: Community Redevelopment Agency of the City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Attn: Executive Director With a copy to: Burke, Williams& Sorensen, LLP 18301 Von Karman Avenue, Suite 1050 Irvine, California 92612 Attn: David J. Aleshire, Esq. If to Owner: Jesus Salvador Mora and Maria Carmen Mora 957 Cottonwood Road Palm Springs, CA 92264 With a copy to: Notices personally delivered or delivered by document delivery service shall be effective upon receipt. Mailed notice shall be effective at noon on the second business day following deposit with the United States Postal Service. Either parry may change its address for notice by giving written notice thereof to the other party. (b) Attorneys' Fees. In the event that a party to this Regulatory Agreement brings an action against the other parry hereto by reason of the breach of any condition or covenant, representation or warranty in this Regulatory Agreement, or otherwise arising out of this Regulatory Agreement, the prevailing party in such action shall be entitled to recover from the other reasonably attorney's fees to be fixed by the court which shall render a judgment, as well as the costs of suits. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery. (c) Amendments. This Regulatory Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside. Regulatory Agreement (12 of 16) Jesus Salvador Mora Maria Carmen Mora RFa 131' 4 n 2/2P/2nn?ng nnA (d) Severability/Waiver/Integration. (1) If any provision of this Regulatory Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. (2) A waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right- (3) This Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement. 12. FUTiJRF,ENFORCEMENT RY CITY_ The parties hereby agree that should the Agency cease to exist as an entity at any time during the term of this Regulatory Agreement, the Agency shall have the right to assign its rights and delegate its duties and obligations hereunder to the City of Palm Springs or to another governmental or quasi-governmental agency approved by the City in writing or to a non-profit corporation devoted to developing affordable housing approved in writing by the City. Regulatory Agreement (13 of 16) Jesus Salvador Mora Maria Carmen Mora �� II I I I I II �� II �� II cz, eF''1rec}e 87 IN WITNESS WHEREOF, the Agency and Owner have executed this Regulatory Agreement as of the day and year written below. "OWNER" Date: By: et Jesus Salvador Mora Maria Carmen Mora "AGENCY" COMMUNITY REDEVELOPMENT AGENCY, OF THE CITY OF PALM SPRINGS, a public body corporate and politic Date: ✓2 —117- 2-, BY: E'7CCCl1tIPe"HACCtOr-��,'LU"Lri.�lisa� ,!A'TTES�. e' ddd A instant Secretary a ii APPROVED AS TO FORM: BURKE, WILLIAMS & SORENSEN, LLP Age T ounsel [END OF SIGNATURES] Regulatory Agreement (14 of 16) Jesus Salvador Mora Maria Carmen Mora 111111111 II 2 rFn 14n fFJ 1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside On /°� /`�! 0 before me, —Elaine L. Wedekind, Notary Public / Dale Name and Tic of Officer(e.g.,"Jane Doe,Notary Publie) personally appeared William G. Kleindienst and Patricia A. Sanders Names)of Signer(s) Upersonally known to me—OR— to be the person(s) whose name(s)Ware subscribed to the within instrument and acknowledged to me that PWM4/they executed the same in tit M/their authorized capacity(ies), and that by a KEfi 1C301F/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, �, " �.. �� �; Ill•-sic caurortnvnl;) executed the Instrument. `n ��;�oil,`;',. re.rrlesfoe ecuamr C� WITNESS my hand and official seal. Signature of Notary Public OPTIONAL / Though the information below is not required bylaw,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signers) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Individual ❑ Individual ❑ Corporate Officer ❑ Corporate Officer Title(6): Title(s): ❑ Partner—❑ Limited ❑ General ❑ Partner—❑ Limited ❑ General ❑ Attorney-in-Fact ❑ Attorney-in-Fact ❑ Trustee ❑ Trustee ❑ Guardian or Conservator ❑ Guardian or Conservator ❑ Other: Top of thumb here ❑ Other: Top of thumb here Signer Is Representing: Signer Is Representing: III II IIIIIIIIIIIIIIIII IIIIIIII IIIIIIIIII II d2r{lnrf .17 F 0 1994 National Notary Association•8236 Remmet Ave.,P.O Box 7184•Canoga Perk,CA 91309-7184 Prod.No.5907 Roomer.Call Toll-Free 1-800-8]6-682] STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) �r �) � ., �2 before me . ;(1(/ /� J��� �'��✓���d���1(; personally On,,.- , appeared t�SU JGid�`+G��e 66`� A'��d9,�Gd�a'���✓p� Jfl��� '� personally-known-to-me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) subscribed-to t}l e within instrument and acknowledged to me that (ha he/she �exkuted the same in his/her.F"their authorized capacity(ies), and that by his er/them-signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, e ecuted the instrument. WITNESS my hand and official set N.BUENO Commis m... 7340713 z -a Notary Public-California i Riverside County (SEAL) My Comm.Expires Jan 20,2006 STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names) 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. (SEAL) Regulatory Agreement (15 of 16) Jesus Salvador Mora Maria Carmen Mora IIIIIIIIIIIIIIIIIIIIIIIII III I II II II II F21,-1P 1nFl A I A Y ATTACHMENT "I" TO REGULATORY AGREEMENT LEGAL DESCRIPTION OF PROPERTY Lot 5 of Tract 29695, recorded in Book 315, Pages 6 to 8 inclusive, of Maps, records of Riverside County, California. Regulatory Agreement (16 of 16) Jesus Salvador Mora I Maria Carmen Mora II II III III Illlllf I I II III IIIIII III IIIIII III IIII rig cE.'1n of 1 R F �� OV f � /�', DOC a 20OZ—IZ2470 02/26/2003 08:00A Fee:NC Page 1 of 17 RECORDED AT THE ) Recorded in Official Records County of Riverside REQUEST OF AND WHEN ) Gary L. Orso RECORDED RETURN TO: ) Assessor, County Clerk G Recorder ) I IIIIII IIIIII IIII IIII IIIIII IIIIIII IIII III IIIII III IIII Community Redevelopment Agency -of the City of Palm Springs Coachella Valley Housing P.O. Box 2743 Sahagun Murillo Regulatory 3200 Tahquitz Canyon Way ) AGREEMENT #394C R1158, 12-19-01 Palm Springs, CA 92263 ) M e u PAGE Attn: Rxeeu4v D4ector A R L COPY LONG REFUND NCHG EXAM (SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE) (EXEMPT FROM RECORDING FEE PER GOV.CODE`6103) ,� v REGULATORY AGREEMENT COMMUNITY REDEVELOPMENT AGENCY t) OF THE CITY OF PALM SPRINGS HIS REGULATORY AGREEMENT (the "Agreement") is made this day of a_)_, 200 A by and between ADAN SAHAGUN MURILLO AND JULIA SAHAGUN ("Owner") and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS ("Agency"). RELIIALS A. Owner has entered into an agreement (the "Purchase Agreement") to purchase from the Coachella Valley Housing Coalition (the "Developer") certain real property located at 970 Chuckwalla Road, Palm Springs, California, 92264, Palm Springs, California, which real property is more particularly described in Exhibit"1" attached hereto and incorporated herein (the "Property"). B. Agency has agreed to provide financial assistance in the development of the housing project in which the Property is located. Agency's activities in this regard are designed to implement Agency's effort to assist persons and families of moderate-income or lower ("Eligible Persons and Families") to purchase residential property and to increase, improve, and preserve the supply of moderate-income and lower housing available within the territorial jurisdiction of Agency, in accordance with the Community Redevelopment Law (California Health and Safety Code Sections 33000 et seq.). C. Agency and the Developer entered into an Owner Participation Agreement dated September 1, 1999 (the "OPA"). Pursuant to the terms of the OPA, title to the Property may be Regulatory Agreement (1 of 16) Adan Sahagun Murillo Julia Sahagun vested in Owner subject to this Regulatory 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. The Agency's financial assistance and the use and affordability restrictions imposed by Agency have enabled Owner to purchase the Property with financial assistance provided for in the OPA. hi exchange for Agency's assistance, Owner agrees to the restrictions on the sale, resale, and occupancy of the Property created by this Agreement. NOW, THEREFORE, the Developer, Owner and Agency declare, covenant and agree, by and for themselves, their heirs, executors, administrators and assigns, and all persons claiming under or through them, that the Property shall be held, transferred, encumbered, used, sold, conveyed, leased and occupied, subject to the covenants and restrictions hereinafter set forth. 1. DEFIN[TIONS. (a) Agency Fee. The term"Agency Fee" shall mean the fee the Agency is entitled to receive for its services under this Regulatory Agreement, which fee shall be in the amount of the reasonable costs of such services (including out of pocket expenses incurred for any reports, fees, or other costs related to the approval of the close of a sale of a Residence, but not including the cost of staff time); provided, however, that, said fee shall not be greater than One-Half of One Percent(.5%)of the Initial Selling Price or the Maximum Resale Price, as applicable. (b) Agency Financial Assistance. The term"Agency Financial Assistance" shall mean an amount determined necessary for the development of the project by the project pro forma, after all other sources of financing, public and private, have been included, and which have been assumed by the Agency to assist a Qualified Purchaser. The Agency Financial Assistance shall be applied to the down payment required to purchase the Property. The amount of Agency Financial Assistance is Fifty-Three Thousand Five-Hundred Seventy Dollars ($53,570.00). (c) Capital Improvement. The term "Capital Improvement" shall mean any capital improvements installed by Owner (but not a predecessor-in-interest of the Owner) to the Residence costing in excess of Five Hundred Dollars ($500.00) in any one (1) year which are properly characterized as capital improvements, as distinguished from maintenance items, under the Internal Revenue Code and the regulations promulgated thereunder pursuant to a building permit, if required by the City, and approved by the Agency, if required. (d) Cost of Repair. The term "Cost of Repair" shall mean the cost, as reasonably determined by the Agency, to repair any violations of applicable building, plumbing, electric, fire, or housing codes or any other provision of the Palm Springs Municipal Code, the cost to repair any damage to a Residence and the cost to put the Residence into a saleable condition, as reasonably determined by the Agency, including, but not limited to, cleaning, painting, cleaning or replacing worn carpeting and draperies, and making needed structural, mechanical, electrical, plumbing and fixed appliance repairs. (e) Low Income Household. The term "Low Income Household" shall mean a household earning no more than eighty percent (80%) of the median income for a household of Regulatory Agreement (2 of 16) Adan Sahagun Murillo 'FaR -1R24�r1 Julia Sahagun III II IIIII III IIII IIII I I IIIII IIIII III IIIII III IIII r"^F:`2of,CA, f+�]F 'the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, or its successor statute. (f) Maximum Resale Price. The "Maximum Resale Price" shall mean (i) the purchase price paid by the then current Owner, other than the Developer, (except that the purchase price for the first Qualified Purchaser of the Residence shall be the Initial Selling Price) for the Residence (including all closing costs actually paid by Owner) (not the purchase price proposed to be paid by the prospective purchaser to the Owner) increased (but not decreased) by the percentage change between Low or Moderate Household Income, published for the year the Residence was purchased by the then current Owner and the Low or Moderate Household Income, published for the year immediately preceding the year the Residence is to be sold by the then current Owner; (ii) plus the documentable cost of any Capital Improvements; (iii) plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (iv) less Cost of Repairs; (v)plus the Agency Fee. Provided that, however; for the first sale, conveyance, assignment or other transfer of the Residence occurring on or after the "seventh (7'h), fourteenth (14a`) and twenty-first (215) anniversary of the initial sale of the Residence, the Maximum Resale Price for a Residence shall be recomputed as the lesser of(i)the amount calculated pursuant to the preceding paragraph or(ii) (a) an amount which, assuming a ten percent (10°/u) down payment were made by the Qualified Purchaser and assuming a loan were made which, if amortized over thirty(30)years at the average rate of interest published by Bank of America, N.T. & S.A. for thirty (30) year fixed rate mortgages for the month that the Initial Notice, as hereinafter defined, is given, the annual principal and interest payments of such mortgage when added to annual casualty insurance premiums and annual real property taxes and assessments for the Residence shall not exceed thirty percent (30%) of the then Low or Moderate Household Income; (b) plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (c) less the Cost of Repairs; (d) plus the Agency Fee. The foregoing calculation of Low and Moderate Household Income shall be computed based upon a six-person household, if the Residence is a three- bedroom unit; an eight-person household if the Residence is a four-bedroom unit. If Bank of American no longer publishes such an interest rate, then the Agency shall designate another bank or financial institution which publishes such an interest rate. If the California Department of Housing and Community Development publishes a percentage of Low and Moderate Household Income to be allocated to housing costs other than thirty percent (30%) of said income, then such other percentage shall be used in calculating the Maximum Resale Price pursuant to subsection (ii)of this paragraph, above. By way of example of computing the Maximum Resale Price under subsection (ii) of the immediately preceding paragraph, assume that the Low and Moderate Household Income is equal to $20,000.00 the annual cost of casualty insurance premiums,real property taxes and assessments for the Residence is equal to $1,000.00, and the average interest rate for a fixed rate 30 year mortgage charged by Bank of America N.T. & S.A. is equal to 10%. The annual maximum principal and interest payments payable for the mortgage is equal to 30% x 20,000.00 - $1,000.00 _ $5,000.00 per year or $416.67 per month. The maximum principal amount of the loan is the present value of$416.67 per month paid over thirty years at 10%or$47,479.89. Therefore,the Regulatory Agreement (3 of 16) Adan Sahagun Murillo Julia Sahagun III II IIIII III II I IIIIII I III IIIII II IIIII II IIII o�.2C TACIJ 0 rir_aa maximum purchase price under subsection (ii) of the preceding paragraph is equal to $47,479.89/.9 = $52,755.43 plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit, less any Costs of Repair, plus the Agency Fee. Notwithstanding anything contained in this Section to the contrary withstanding, the Maximum Resale Price shall not be less than(i)the purchase price paid by the then current Owner for the Residence (including all closing costs actually paid by Owner) increased by an amount equal to two percent (2%) simple, but not compounded, interest per annum from the date the Restricted was purchased by the then current Owner through the date of the Initial Notice, as hereinafter defined; (ii) plus the documentable cost of any Capital Improvements installed by the then current Owner; (iii) plus usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (iv) less the Cost of Repairs; (v)plus the Agency Fee. (g) Moderate Income Household. The term"Moderate Income Household" shall mean a household earning no more than one hundred twenty percent(120%) of the median income for a household of the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093,or its successor statute. (h) Owner. The term "owner" shall mean any person who holds any fee interest in a Residence during the term of this Regulatory Agreement, including the Developer. A person shall not be deemed to be an Owner until the person acquires fee title to the Residence. Thus, a purchaser of a Residence shall not become an Owner until a grant deed is executed and delivered by the then current Owner of the Residence. (i) Purchase Price. The term"Purchase Price" shall mean that amount agreed upon by the Owner and Developer and approved by the Agency's Executive Director as the payment to be made by Owner to Developer for the purchase of the Property, which amount is One Hundred Forty Thousand Dollars($140,000.00) 0) Qualified Purchaser. The term "Qualified Purchaser" shall mean those persons who satisfy all of the following requirements: (1) The potential owner's (or owners') adjusted gross income, as shown on federal income tax return(s), for the full calendar year immediately preceding the calendar year in which such person(s) seek to acquire the Property, does not exceed the Low and Moderate Income Household for the preceding calendar year. (2) The person(s) certify they intend to occupy the Property as their principal residence and for no other purpose and that they will not enter into an agreement, whether oral or written, for the rental or lease of the Property. (3) The person(s) do not own any other residential real property at the time of purchase, and have not owned any other residential real property in the three preceding years. (4) The person(s) demonstrate to the Agency's satisfaction that Agency Financial Assistance is required for the purchase of the Property. Regulatory Agreement (4 of 16) Adan Sahagun Murillo I Julia Sahagun IIIIII IIII IIII I I I III IIII I I III I II II I II III e✓ FI201.2470 0- FIB enn (1) Residence. The term "Residence" shall mean the residence constituting the Property. (m) Sale Proceeds. The term "Sale Proceeds" shall mean the net proceeds from the sale of the Property to a purchaser who is not a Qualified Purchaser. The formula for determining the Sale Proceeds is as follows: (Gross proceeds of sale) minus (costs of sale, such as escrow, title and broker fees and the Agency Fee) minus (the amount paid to retire any mortgages that financed the purchase of the Residence) minus (Owner's original investment) minus (the aggregate amount of principal payments made by Owner on any mortgages that financed the purchase of the Residence) minus (the documentable cost of any Capital hnprovements)= Sale Proceeds. 2. INCOME INFORMATION. Owner has submitted an eligibility verification form to Agency prior to execution of this Agreement. Owner represents, warrants, and declares under penalty of perjury to Agency that all information Owner has provided and will provide in the future to Agency is and will be true, correct and complete. 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. RESTRICTIONS ON SALE OF THE PROPERTY. Developer and Owner covenant and agree for themselves and their successors and assigns to their interest in the Property that the sale, resale, and occupancy of the Property shall be restricted as follows: (a) Occupancy Standards. The Property shall be used as the principal residence of Owner and Owner's family and for no other purpose. Owner shall not enter into an agreement for the rental or lease of the Property. (b) Notice to Agency of Intent to Sell. If Owner desires to sell, exchange, quitclaim, or in any manner dispose of the Property, or any part thereof("Proposed Sale"), Owner shall first notify Agency in writing not less than thirty(30)days prior to entering into any binding agreement for such a Proposed Sale. (c) Sale to Qualified Purchaser. Except as expressly provided in this Agreement, the Property shall be sold, conveyed, assigned or otherwise transferred to a Qualified Purchaser for a sales price which is equal to or less than the Maximum Resale Price. Agency shall cooperate with Owner in providing information to Owner and to qualifying lenders to enable them to calculate the Maximum Resale Price and whether a prospective purchaser meets the legal low or moderate income standard. (d) Agency Approval of Prospective Purchasers. Owner shall submit to Agency all offers received by the Owner for the Property. The Agency may elect to schedule a meeting with Regulatory Agreement I (5 of 16) IIIIII IIII I IIII I I 1111111111111 Adan Sahagun Murillo Ff F Julia Sahagun e"` crAn 1 ' CA FA II it IIIIIIIII I + the prospective purchaser. Based upon the information submitted by Owner and the prospective purchaser, the Agency shall verify that the prospective purchaser is a Qualified Purchaser and that the sales price is less than or equal to the Maximum Resale Price. The Owner and the prospective purchaser shall provide such supporting documentation the Agency reasonably deems appropriate, including an income tax return of the prospective purchaser. Upon Agency's approval, the Owner may thereafter sell the Property to the Qualified Purchaser upon the terms and conditions submitted to the Agency, and subject to the restrictions in this Agreement. If the Property is sold to a Qualified Purchaser, then Owner shall not be required to share any Sale Proceeds with Agency pursuant to Section 3(e)below. (e) Sale of Property to Non-Qualified Purchaser. Owner shall use best efforts to sell the Property to a Qualified Purchaser, including listing of the Property at or below the Maximum Resale Price. "Best efforts" includes obtaining a broker, listing the Property on the multiple listing service, holding open houses, advertising and such other methods as normally undertaken to sell residential property. If after ninety (90) days following the Agency's receipt of written notice of Owner's intent to sell, and despite Owner's best efforts, Owner has not received a bona fide offer from a Qualified Purchaser to purchase the Property at the lesser of(i) the Maximum Resale Price, or (ii)the appraised fair market value of the Property, Owner shall notify Agency in writing that the Property has not been sold. (1) Rejection of Offer from Qualified Purchaser. Owner's rejection of an offer from a Qualified Purchaser shall be subject to Agency's approval of the reasonableness of the rejection, which Agency approval shall not be unreasonably denied. Notwithstanding the foregoing, Owner shall not reject a bona fide offer from a Qualified Purchaser solely on the basis of the offered purchase price, provided that the offer is equal to the lesser of(i) the Maximum Resale Price, or(ii)the appraised fair market value of the Property. (2) Termination of Escrow. Once an offer from a Qualified Purchaser has been accepted and escrow has been opened, and if escrow should thereafter be terminated for any reason prior to closing, then a new ninety (90) day period for marketing the Property to a Qualified Purchaser shall commence upon Agency's receipt of written notice from Owner that the escrow has been terminated. (3) Agency's Sale Right. If the Owner has not received an offer from a Qualified Purchaser within the time period set forth in Section 3(e), then Agency shall have the right to cause the sale of the Property to a third party who is a Qualified Purchaser, at a price not to exceed the lesser of: (i) the Maximum Resale Price, or (ii) the appraised fair market value of the Property. Agency's exercise of such right shall be made by delivery of written notice to Owner within thirty (30) days after Agency receives written notice that the Property has not been sold. In the event Agency arranges the purchase by a Qualified Purchaser, an escrow shall be established to close within sixty(60)days after delivery of Agency's notice of exercise. At the election of Agency, Agency may appoint a certified, independent appraiser to conduct an appraisal of the Property, at Agency's expense, to assist Agency in determining if the Maximum Resale Price is at or near the fair market value of the Property at such time. Regulatory Agreement (6 of 16) Adan Sahagun Murillo �003 1 2d 0 Julia Sahagun II III I I I I III I III III II F12, 2F.6'f AP FAFIA In the event Agency fails to agree in writing to nominate a Qualified Purchaser within thirty (30) days of receipt of written notice from Owner, the Property may be marketed by Owner to non-Qualified Purchasers at a market rate that may exceed the Maximum Resale Price; provided, however, that Owner shall continue to use its best efforts to sell the Property to a Qualified Purchaser. Owner's failure to sell the Property to a Qualified Purchaser shall obligate Owner to share the Sale Proceeds, if any, with the Agency in accordance with the formula set forth in Section 3(e)(4)below. (4) Agency's Share of Sale Proceeds. If the Property is sold to a purchaser who is not a Qualified Purchaser, then the Agency shall receive a declining pro rata percentage of the Sale Proceeds at the time of the sale, depending on the year in which the Property is sold. The pro rata percentage (the "Share Ratio") shall be equal to the ratio determined by dividing (a) the Agency Financial Assistance by (b) the Purchase Price. The Agency' share is then derived by multiplying the Sale Proceeds by the Share Ratio by the applicable percentage set forth in the following table. The longer the Property is owned, the less Sale Proceeds are shared with the Agency. After a period of nine years, no Sale Proceeds are due the Agency. The Agency shall receive its share of the Sale Proceeds at the close of escrow for the sale of the Property. The schedule for determining the Agency's share of the Sale Proceeds is as follows: v mny AbP.�R.IJLL'C.LD,., .Y i 2002 100% (or prior) 2003 90% 2004 80% 2005 70% 2006 60% 2007 50% 2008 40% 2009 30% 2010 20% 2011 10% The sharing of Sale Proceeds with the Agency shall not apply when: (i) Owner sells or transfers the Property to a Qualified Purchaser; (ii) the transfer is due to the assumption of ownership by inheritance upon death of the Owner; (iii) the transfer is due to the assumption of ownership by one spouse in connection with a divorce; or (iv) the transfer is due to some other circumstance that does not involve the exchange of consideration and is approved in writing by Agency. Regulatory Agreement (7 of 16) Adan Sahagim Murillo Julia Sahagun II III III III IIII I IIII II II II 7 of F 17 oFl (f) Agency Fee. The Agency shall be entitled to receive the Agency Fee for the services provided under this Regulatory Agreement. The Agency Fee shall be paid to the Agency through the escrow for the sale of the Residence. The Agency Fee shall be paid from funds accruing to the benefit of the Owner. (g) Section 143 of the Internal Revenue Code. If and for so long as the Residence is financed by a loan made with the proceeds of qualified mortgage bonds, it may only be sold to a person or family who qualifies for such financing under Section 143 of the Internal Revenue Code. 4. LIMITATION ON ENCUMBRANCES. Notwithstanding anything to the contrary contained in this Agreement, Owner shall not mortgage the Property or any portion thereof or any interest therein, or enter into any other form of conveyance for financing during the term of this Agreement, except for the following purposes: (a) financing the purchase of the Property from Developer or a subsequent owner (the "First Lien"); or (b) refinancing of the First Lien for a loan amount not to exceed the then current loan balance secured by the First Lien; or (c) financing the construction of improvements on the Property but only if such improvements are approved in writing by Agency and do not exceed five percent(5%) of the then current loan balance secured by the First Lien. The Owner shall provide such documentation as may be reasonably required by Agency to show that the financing permitted by this Section 4(c) was used for the construction of the improvements approved in writing by Agency. The Owner shall not enter into any such conveyance for financing without the prior written approval of the Agency. Any lender approved by the Agency shall not be bound by any material amendment, implementation, or modification to this Agreement subsequent to the recordation of its mortgage without such lender giving its prior written consent thereto. 5. STTRORDINATIO , This Agreement shall be subordinate to any First Lien on the Property held by the First Lien's Holder ("Holder"), and shall not impair the rights of Holder, or Holder's assignee or successor in interest, to exercise its remedies under the First Lien in the event of a default under the First Lien by Owner. In the event of a foreclosure or deed in lieu of foreclosure of the First Lien, this Agreement shall be terminated and shall have no further force or effect on subsequent owners of the Property. Any person, including his or her successors or assigns (other than Owner or a related person or entity of Owner), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Lien shall receive title to the Property free and clear from the restrictions in this Agreement. Further, if the Holder acquires title to the Property pursuant to a deed in lieu of foreclosure, this Agreement shall be terminated upon Holder's acquisition of title, provided that Regulatory Agreement (8 of 16) Adan Sahagun Murillo Julia Sahagun II III III IIII II I I III IIII II IIII I II 02. 26,c ee P 00A (i) Agency has been given written notice of a default under the First Lien concurrently with any notice provided to the Owner, and (ii) Agency shall not have cured the default under the First Lien, or diligently pursued curing the default, within the time period provided to Owner under the First Lien, as shall be described in the notice sent to Agency. 6. MAINTENANCE OF PROPERTY. (a) Maintenance Obligation. Owner shall maintain the improvements and landscaping on the Property and adjacent landscaped parkways in a manner consistent with community standards which will uphold the value of the Property, in accordance with the Palm Springs Municipal Code. Owner also agrees to comply with any and all covenants and agreements established by any Declaration of Covenants, Conditions, and Restrictions controlling the Property and to comply with all applicable federal, state and local laws. (b) Right of Entry. In the event any Owner fails to maintain his, her, or their Residence in the above-mentioned condition, and satisfactory progress is not made in correcting the condition within thirty(30) days from the date of written notice from the Agency, the Agency may, at its option, and without further notice to Owner, declare the unperformed maintenance to constitute a public nuisance. Thereafter, the Agency, or its employees, contractors or agents, may cure the default by entering upon the Residence and performing the necessary landscaping and/or maintenance. The Agency shall give Owner notice of the time and manner of entry, and entry shall only be at such times and in such manner as is reasonably necessary to carry out his Regulatory Agreement. Owner shall pay such costs as are reasonably incurred by Agency for such maintenance. (c) Lien. If the costs incurred pursuant to Section 4.2 are not reimbursed within thirty (30) days after receipt of notice thereof, the same shall be deemed delinquent, and the amount thereof shall bear interest thereafter at a rate of ten percent (10%) per annum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorney's fees, shall be a lien and charge, with power of sale, upon the Residence. Any such lien may be enforced by power of sale by the Agency following recordation of a Notice of Default given in the manner and time required by law as in the case of a deed of trust. Such sale shall be conducted in accordance with the provisions of Section 2924, et seq., of the California Civil Code applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted by law. Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or deed of trust covering an ownership interest in and to the Residence, and any purchaser at any foreclosure or trustee's sale (as well as any deed or assignment in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall take title free from any such monetary lien, but otherwise subject to the provisions hereof, provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided for herein to the extent they relate to the expenses incurred subsequent to such foreclosure, assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject parcel after the date of such foreclosure sale, shall become a lien upon such parcel upon recordation of a Notice of Default as herein provided. Regulatory Agreement (9 of 16) Adan Sahagun Murillo Julia Sahagun IIIIII IIII I IIII I II I III IIII II I III II(IIII III IN '28. ErIA3 .F19A 7. ENFORCEMENT. (a) Events of Default. In the event Owner defaults in the performance or observance of any covenant, agreement or obligation of Owner set forth in this Regulatory Agreement, and if such default remains uncured for a period of thirty (30) days after written notice thereof shall have been given by Agency, or, in the event said default cannot be cured within said time period, Owner has failed to commence to cure such default within said thirty (30) days and diligently prosecute said cure to completion, then Agency shall declare an "Event of Default' to have occurred hereunder, and, at its option, may take one or more of the following steps: (1) By mandamus or other suit, action or proceeding at law or in equity,require Owner to perform its obligations and covenants hereunder or enjoin any acts or things which may be unlawful or in violation of this Regulatory Agreement; or (2) Take such other action at law or in equity as may appear necessary or desirable to enforce the obligations, covenants and agreements of Owner hereunder. Failure or delay in giving notice shall not constitute a waiver of any default, nor shall it change the time of default. 8. NONDISCRIMINATION. (a) Obligation to Refrain from Discrimination. There shall be no discrimination against, or segregation of, any persons, or group of persons, on account of race, color, ancestry, religion, sex, marital status, disability (including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income, in the sale, transfer, use, occupancy or enjoyment of the Residences, or any portion of the Residences, nor shall Developer or any Owner, or any person claiming under or through Developer or any Owner, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of purchasers of the Residences or any portion thereof. The nondiscrimination and nonsegregation covenants contained herein shall remain in effect in perpetuity. (b) Form of Nondiscrimination and Nonsegregation Clauses. Owner shall refrain from restricting the sale of any portion of the Residence on the basis of race, color, ancestry, religion, sex, marital status, disability (including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income, of any person. All such deeds or contracts shall containor be subject to substantially the following nondiscrimination or nousegregation clauses: (1) Deeds. In deeds the following language shall appear: "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, ancestry, religion, sex, marital status, disability (including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income, in the sale, transfer, use, occupancy, tenure Regulatory Agreement (10 of 16) Adan Sahagun Murillo III II IIIII III IIII IIIIII I IIII IIIII III IIIIII III IIII 02 PF{20R?OP 10H Julia Sahagun or enjoyment of the land herein conveyed, nor shall the grantee, or any persons 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 purchasers in the land herein conveyed. The foregoing covenants shall run with the land." (b) Contracts. Any contracts which any Owners or their heirs, executors, administrators, or assigns propose to enter into for the sale or transfer of the Residence shall contain a nondiscrimination and nonsegregation clause substantially as set forth in this Section 8. Such clause shall bind the contracting parry and subcontracting parry or transferee under the instrument. 9. COVENANTS TO RT N WITH THE, LAND. Owner hereby subjects the Property to the covenants, reservations and restrictions set forth in this Regulatory Agreement. The Agency and the Owner hereby declare their express intent that A such covenants, reservations and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors in title to the Property; provided, however, that on the termination of this Regulatory Agreement said covenants, reservations and restrictions shall expire, except as otherwise expressly provided. All covenants without regard to technical classification or designation shall be binding for the benefit of the Agency, and such covenants shall run in favor of the Agency for the entire term of this Regulatory Agreement, without regard to whether the Agency is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract,deed or other instrument. Agency and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Owner's legal interest in the Property is rendered less valuable thereby. Agency and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the possibility of enjoyment and use of the Property by Low and Moderate Income Households, the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the public purposes for which the Agency was formed. 10. TERM- TERMINATION. The tern of this Agreement shall commence upon the close of escrow for the sale of the Property from Seller to Owner, and shall continue until the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), unless terminated earlier. This Agreement shall automatically terminate without any further action of the parties upon the earlier of. (a) the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), or (b) the sale of the Property to a purchaser who is not a Qualified Purchaser, provided the Agency receives its share of the net equity pursuant to Section 3(e) above. Regulatory Agreement (11 of 16) Adan Sahagun Murillo I R Julia Sahagun Fa l llllll llll llll i ll llllll llll ll lull 111 ll lfl 111 llll /�� o©0 FOfI 11 1 11. MISCELLANEOUS. (a) Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: If to Agency: Community Redevelopment Agency of the City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Attn: Executive Director With a copy to: Burke, Williams& Sorensen, LLP 18301 Von Karman Avenue, Suite 1050 Irvine, California 92612 Attn: David J. Aleshire, Esq. If to Owner: Adan Sahagun Murillo and Julia Sahagun 970 Chuckwalla Road Palm Springs, CA 92264 With a copy to: Notices personally delivered or delivered by document delivery service shall be effective upon receipt. Mailed notice shall be effective at noon on the second business day following deposit with the United States Postal Service. Either parry may change its address for notice by giving written notice thereof to the other party. (b) Attorneys' Fees. In the event that a party to this Regulatory Agreement brings an action against the other party hereto by reason of the breach of any condition or covenant, representation or warranty in this Regulatory Agreement, or otherwise arising out of this Regulatory Agreement, the prevailing party in such action shall be entitled to recover from the other reasonably attorney's fees to be fixed by the court which shall render a judgment, as well as the costs of suits. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery. Regulatory Agreement (12 of 16) Adan Sahagun Murillo Julia Sahagun II III I I I I III I III II II II Dc 2 fl 12 c-f�1F{GEaH (c) Amendments. This Regulatory Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside. (d) Severability/Waiver/Integration. (1) If any provision of this Regulatory Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. (2) A waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right. (3) This Agreement contains the entire Agreement between the parties and neither parry relies on any warranty or representation not contained in this Agreement. 12. Fi TITHE ENFORCEMENT BY CITY, The parties hereby agree that should the Agency cease to exist as an entity at any time during the term of this Regulatory Agreement, the Agency shall have the right to assign its rights and delegate its duties and obligations hereunder to the City of Palm Springs or to another governmental or quasi-governmental agency approved by the City in writing or to a non-profit corporation devoted to developing affordable housing approved in writing by the City. Regulatory Agreement (13 of 16) Adan Sahagun Murillo Julia Sahagun I IIIIII IIIIII IIII IIII IIIIII(IIIIII(IIII III IIIIII III IIII Fa Fii �, r08 OW IN WITNESS WHEREOF, the Agency and Owner have executed this Regulatory Agreement as of the day and year written below. "OWNER" Date: Ol 2 A 1,5 6 By: Adan Sahagun Murnllo i By: l 1 z a ))Cjq�Ll--- n J lia Sahaguri <1 "AGENCY" COMMUNITY REDEVELOPMENT AGENCY, OF TIE CITY OF PALM SPRINGS, a public body corpo to and politic Date: A2 -/7 oz By: E,xMU6ve-D ireetor G/"La6A4, 7-zvvt-, AO�T"TEST: Assistant Secretary APPROVED AS TO FORM: Bi 1RKE, WILL S & SORENSEN,LLP r( —.--. Age -y ounsel [END OF SIGNATURES] Regulatory Agreement (14 of 16) Adan Sahagun Murillo Julia Sahagun II II I I I I I I II11111111111111111 HIM I 1111111 02.r fa[."1440 fC1:FJ fi ELF CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside On /__7 . ; 'i` ✓-' before me, —Elaine L. Wedekind, Notary Public Dale Name and Title al Officer e.( g.,"Jane Doe,Notary Public') personally appeared William G. Kleindienst and Patricia A. Sanders Names)of Signer(s) �Fpersonally known to me-01`111—M proved tome un lne basisolisatisli evideric to be the person(s) whose name(s)Ware subscribed to the within instrument and acknowledged to me that KN11%/they executed the same in tiW7F7t/their authorized capacity(ies),and that by kAsttt Wtheir signature(s) on the instrument the person(s), 1. C" or the entity upon behalf of which the person(s) acted, ! JftiL ' executed the instrument. 1 v<ti C,nNNPIM 4?OSgBn-17Vlp�a\ � NUTAky PUBLIC CALIFORNIA h `1°r bn WITNESS m hand and official seal. 1, co Ina.s w.r-sr.a,zooa Y Signature of Notary Public {/ OPTIONAL Though the information below is not required by law,it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: ❑ Individual ❑ Individual ❑ Corporate Officer ❑ Corporate Officer Title(s): Title(s): ❑ Partner—❑ Limited ❑ General ❑ Partner—❑ Limited ❑ General ❑ Attorney-in-Fact ❑ Attorney-in-Fact ❑ Trustee ❑ Trustee ❑ Guardian or Conservator ❑ Guardian or Conservator ❑ Other: Top of thumb here ❑ Other: Top of thumb here Signer Is Representing: Signer Is Representing: ---- --- - - - - - m 1994 National Notary Association•8236 Remmet Ave.,PO.Box 7184•Canoga Park,CA 91309-7184 Prod.No.5907 Recrtler.Call Toll-Free 1-800-8]6-682] STATE OF CALIFORNIA ) ss. COUNTY OF R(�IVERSIDE On U� �efore e ��1 �� ��df vll A �� personally appeared 6((1111 5a 119 R,/ ,'7,"05,,!h� f,,d i , persona-1-y—ki493A%—tome (or proved to me on the basis of satisfactory evidence) tokbe the person(s) whose name(s) is'are subscribed to the within instrument and acknowledged to me that he/she/li e°ecuted the same in his/he /kt�Aorized capacity(ies), and that by his/hortheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, ' cuted the instrument. WITNESS my hand and official seal. N.F3t1ENC) \ � Commission ff 1340703 z \ / -o Notary Public-California i Riverside County My Comm.F�7iiros Jan 1,2006 (SEAL) _ STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On before me, 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. (SEAL) Regulatory Agreement (15 of 16) Adan Sahagun Murillo Julia Sahagun III II IIII I II I I III IIII IIII II II II III II ra2l2E{16n of 01 ,nn ATTACHMENT"1" TO REGULATORY AGREEMENT LEGAL DESCRIPTION OF PROPERTY Lot 9 of Tract 29695,recorded in Book 315, Pages 6 to 8 inclusive, of Maps, records of Riverside County, California. Regulatory Agreement I+ I( If (16 of 16) Adan Sahagun Murillo IIIPII IIIIII IIII IIII IIIIII IIIIIII IIIII III IIIIII III IIII n . r0ii F,r£nQ Julia Sahagun Fc,H 4 Coachella Valley Housing Velazquez Regulatory Agr AGREEMENT #394C R1158, 12-19-01 RECORDED AT THE ) DOG xe 2003-1324G4 REQUEST OF AND WHEN ) 02/26/2003 08:00A Fee:NC Page 1 of 17 RECORDED RETURN TO: ) Recorded in Official Records County of Riverside Gary L. Orso Community Redevelopment Agency Assessor, County Clerk 6 Recorder i IIII�I IIIIII I II IIII IIIIII IIIIII IIII111111111111111111 of the City of Palm SpringsP.O. Box 2743 3200 Tahquitz Canyon Way ) Palm Springs, CA 92263 ) ) MA 5R L PAGE SIZE Oq MDWHG Attn: o COPY(SPACE ABOVE TI-IIS LINE RESERVED FOR RECORDER'S USE) �I pp (EXEMPT FROM RECORDING FEE PER GOV.CODE`6103) 1131 REGULATORY AGREEMENT ,3 COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS It THIS GULATORY AGREEMENT (the "Agreement") is made this f� day of 200 by and between FELII'E VELAZQUEZ ("Owner") and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS ("Agency"). REL.IIALS A. Owner has entered into an agreement (the "Purchase Agreement") to purchase from the Coachella Valley Housing Coalition (the "Developer") certain real property located at 990 Chuckwalla Road, Palm Springs, California, 92264, Palm Springs, California, which real property is more particularly described in Exhibit"1" attached hereto and incorporated herein(the "Property"). B. Agency has agreed to provide financial assistance in the development of the housing project in which the Property is located. Agency's activities in this regard are designed to implement Agency's effort to assist persons and families of moderate-income or lower ("Eligible Persons and Families")to purchase residential property and to increase, improve, and preserve the supply of moderate-income and lower housing available within the territorial jurisdiction of Agency, in accordance with the Community Redevelopment Law (California Health and Safety Code Sections 33000 et seq.). C. Agency and the Developer entered into an Owner Participation Agreement dated September 1, 1999 (the "OPA"). Pursuant to the terms of the OPA, title to the Property may be Regulatory Agreement (1 of 16) Felipe Velazquez vested in Owner subject to this Regulatory 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. The Agency's financial assistance and the use and affordability restrictions imposed by Agency have enabled Owner to purchase the Property with financial assistance provided for in the OPA. In exchange for Agency's assistance, Owner agrees to the restrictions on the sale, resale, and occupancy of the Property created by this Agreement. NOW, THEREFORE, the Developer, Owner and Agency declare, covenant and agree, by and for themselves, their heirs, executors, administrators and assigns, and all persons claiming under or through them, that the Property shall be held, transferred, encumbered, used, sold, conveyed, leased and occupied, subject to the covenants and restrictions hereinafter set forth. 1. DEFINITIONS. (a) Agency Fee. The term "Agency Fee" shall mean the fee the Agency is entitled to receive for its services under this Regulatory Agreement, which fee shall be in the amount of the reasonable costs of such services (including out of pocket expenses incurred for any reports, fees, or other costs related to the approval of the close of a sale of a Residence, but not including the cost of staff time); provided, however, that, said fee shall not be greater than One-Half of One Percent(.5%)of the Initial Selling Price or the Maximum Resale Price, as applicable. (b) Agency Financial Assistance. The tern "Agency Financial Assistance" shall mean an amount determined necessary for the development of the project by the project pro forma, after all other sources of financing, public and private, have been included, and which have been assumed by the Agency to assist a Qualified Purchaser. The Agency Financial Assistance shall be applied to the down payment required to purchase the Property. The amount of Agency Financial Assistance is Twenty-Three Thousand Five-Hundred Dollars($23,500.00). (c) Capital Improvement. The term "Capital Improvement" shall mean any capital improvements installed by Owner (but not a predecessor-in-interest of the Owner) to the Residence costing in excess of Five Hundred Dollars ($500.00) in any one (1) year which are properly characterized as capital improvements, as distinguished from maintenance items, under the Internal Revenue Code and the regulations promulgated thereunder pursuant to a building permit, if required by the City, and approved by the Agency, if required. (d) Cost of Repair. The term "Cost of Repair" shall mean the cost, as reasonably determined by the Agency, to repair any violations of applicable building, plumbing, electric, fire, or housing codes or any other provision of the Palm Springs Municipal Code, the cost to repair any damage to a Residence and the cost to put the Residence into a saleable condition, as reasonably determined by the Agency, including, but not limited to, cleaning, painting, cleaning or replacing worn carpeting and draperies, and making needed structural, mechanical, electrical, plumbing and fixed appliance repairs. (e) Low Income Household. The term "Low Income Household" shall mean a household earning no more than eighty percent (80%) of the median income for a household of Regulatory Agreement (2 of 16) Felipe Velazquez I IIIIII IIIIII IIII IIII IIIIII IIIIII IIIIII III IIIII IIII IIII n i2FF. 20f'F3eh WA the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, or its successor statute. (f) Maximum Resale Price. The "Maximum Resale Price" shall mean (i) the purchase price paid by the then current Owner, other than the Developer, (except that the purchase price for the first Qualified Purchaser of the Residence shall be the Initial Selling Price) for the Residence (including all closing costs actually paid by Owner) (not the purchase price proposed to be paid by the prospective purchaser to the Owner) increased (but not decreased) by the percentage change between Low or Moderate Household Income, published for the year the Residence was purchased by the then current Owner and the Low or Moderate Household Income, published for the year immediately preceding the year the Residence is to be sold by the then current Owner; (ii) plus the documentable cost of any Capital Improvements; (iii) plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (iv) less Cost of Repairs; (v)plus the Agency Fee. Provided that, however; for the first sale, conveyance, assignment or other transfer of the Residence occurring on or after the seventh (7a'), fourteenth (10) and twenty-first (2151) anniversary of the initial sale of the Residence, the Maximum Resale Price for a Residence shall be recomputed as the lesser of(i)the amount calculated pursuant to the preceding paragraph or(ii) (a) an amount which, assuming a ten percent (10%) down payment were made by the Qualified Purchaser and assuming a loan were made which, if amortized over thirty(30)years at the average rate of interest published by Bank of America, N.T. & S.A. for thirty (30) year fixed rate mortgages for the month that the Initial Notice, as hereinafter defined, is given, the annual principal and interest payments of such mortgage when added to annual casualty insurance premiums and annual real property taxes and assessments for the Residence shall not exceed thirty percent (30%) of the then Low or Moderate Household Income; (b)plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (c) less the Cost of Repairs; (d) plus the Agency Fee. The foregoing calculation of Low and Moderate Household Income shall be computed based upon a six-person household, if the Residence is a three- bedroom unit; an eight-person household if the Residence is a four-bedroom unit. If Bank of American no longer publishes such an interest rate, then the Agency shall designate another bank or financial institution which publishes such an interest rate. If the California Department of Housing and Community Development publishes a percentage of Low and Moderate Household Income to be allocated to housing costs other than thirty percent(30%) of said income, then such other percentage shall be used in calculating the Maximum Resale Price pursuant to subsection (ii)of this paragraph, above. By way of example of computing the Maximum Resale Price under subsection (ii) of the immediately preceding paragraph, assume that the Low and Moderate Household Income is equal to $20,000.00 the annual cost of casualty insurance premiums, real property taxes and assessments for the Residence is equal to $1,000.00, and the average interest rate for a fixed rate 30 year mortgage charged by Bank of America N.T. & S.A. is equal to 10%. The annual maximum principal and interest payments payable for the mortgage is equal to 30% x 20,000.00 - $1,000.00 _ $5,000.00 per year or $416.67 per month. The maximum principal amount of the loan is the present value of$416.67 per month paid over thirty years at 10%or$47,479.89. Therefore, the Regulatory Agreement (3 of 16) Felipe Velazquez II III III IIII II I I I I I IIII I II II III FIE,6rF?d of 12 R maximum purchase price under subsection (ii) of the preceding paragraph is equal to $47,479.89/.9 = $52,755.43 plus the usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit, less any Costs of Repair, plus the Agency Fee. Notwithstanding anything contained in this Section to the contrary withstanding, the Maximum Resale Price shall not be less than (i)the purchase price paid by the then current Owner for the Residence (including all closing costs actually paid by Owner) increased by an amount equal to two percent (2%) simple, but not compounded, interest per annum from the date the Restricted was purchased by the then current Owner through the date of the Initial Notice, as hereinafter defined; (ii) plus the documentable cost of any Capital Improvements installed by the then current Owner; (iii) plus usual and customary closing costs charged to a seller in connection with the sale of a dwelling unit; (iv) less the Cost of Repairs; (v)plus the Agency Fee. (g) Moderate Income Household. The terni"Moderate Income Household" shall mean a household earning no more than one hundred twenty percent(120°/u) of the median income for a household of the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093,or its successor statute. (h) Owner. The term "owner" shall mean any person who holds any fee interest in a Residence during the term of this Regulatory Agreement,including the Developer. A person shall not be deemed to be an Owner until the person acquires fee title to the Residence. Thus, a purchaser of a Residence shall not become an Owner until a grant deed is executed and delivered by the then current Owner of the Residence. (i) Purchase Price. The term"Purchase Price" shall mean that amount agreed upon by the Owner and Developer and approved by the Agency's Executive Director as the payment to be made by Owner to Developer for the purchase of the Property, which amount is One Hundred Forty Thousand Dollars($140,000.00) 0) Qualified Purchaser. The term "Qualified Purchaser" shall mean those persons who satisfy all of the following requirements: (1) The potential owner's (or owners') adjusted gross income, as shown on federal income tax return(s), for the full calendar year immediately preceding the calendar year in which such person(s) seek to acquire the Property, does not exceed the Low and Moderate Income Household for the preceding calendar year. (2) The person(s) certify they intend to occupy the Property as their principal residence and for no other purpose and that they will not enter into an agreement, whether oral or written, for the rental or lease of the Property. (3) The person(s) do not own any other residential real property at the time of purchase, and have not owned any other residential real property in the three preceding years. (4) The person(s) demonstrate to the Agency's satisfaction that Agency Financial Assistance is required for the purchase of the Property. Regulatory Agreement (4 of 16) Felipe Velazquez IIIIIIIII II I II III III II III II III III (,2:COG 2f{•4 of, 1?, _,R (1) Residence. The term "Residence" shall mean the residence constituting the Property. (m) Sale Proceeds. The term "Sale Proceeds" shall mean the net proceeds from the sale of the Property to a purchaser who is not a Qualified Purchaser. The formula for determining the Sale Proceeds is as follows: (Gross proceeds of sale) minus (costs of sale, such as escrow, title and broker fees and the Agency Fee) minus (the amount paid to retire any mortgages that financed the purchase of the Residence) minus (Owner's original investment) minus (the aggregate amount of principal payments made by Owner on any mortgages that financed the purchase of the Residence) minus (the documentable cost of any Capital Improvements)= Sale Proceeds. 2. I NC O114E INFORMATION, Owner has submitted an eligibility verification form to Agency prior to execution of this Agreement. Owner represents, warrants, and declares under penalty of perjury to ,Agency that all information Owner has provided and will provide in the future to Agency is and will be true, correct and complete. 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. RFSTRICTTONS ON SALE OF THF,PROPERTY, Developer and Owner covenant and agree for themselves and their successors and assigns to their interest in the Property that the sale, resale, and occupancy of the Properly shall be restricted as follows: (a) Occupancy Standards. The Property shall be used as the principal residence of Owner and Owner's family and for no other purpose. Owner shall not enter into an agreement for the rental or lease of the Property. (b) Notice to Agency of Intent to Sell. If Owner desires to sell, exchange, quitclaim, or in any manner dispose of the Property, or any part thereof("Proposed Sale"), Owner shall first notify Agency in writing not less than thirty(30)days prior to entering into any binding agreement for such a Proposed Sale. (c) Sale to Qualified Purchaser. Except as expressly provided in thisAgreement, the Property shall be sold, conveyed, assigned or otherwise transferred to a Qualified Purchaser for a sales price which is equal to or less than the Maximum Resale Price. Agency shall cooperate with Owner in providing information to Owner and to qualifying lenders to enable them to calculate the Maximum Resale Price and whether a prospective purchaser meets the legal low or moderate income standard. (d) Agency Approval of Prospective Purchasers. Owner shall submit to Agency all offers received by the Owner for the Property. The Agency may elect to schedule a meeting with Regulatory Agreement (5 of 16) Felipe Velazquez 111111IN 111111111111111 11111 11111111 Nc zF F'5 :.F �ooF the prospective purchaser. Based upon the information submitted by Owner and the prospective purchaser, the Agency shall verify that the prospective purchaser is a Qualified Purchaser and that the sales price is less than or equal to the Maximum Resale Price. The Owner and the prospective purchaser shall provide such supporting documentation the Agency reasonably deems appropriate, including an income tax return of the prospective purchaser. Upon Agency's approval, the Owner may thereafter sell the Property to the Qualified Purchaser upon the terms and conditions submitted to the Agency, and subject to the restrictions in this Agreement. If the Property is sold to a Qualified Purchaser, then Owner shall not be required to share any Sale Proceeds with Agency pursuant to Section 3(e) below. (e) Sale of Property to Non-Qualified Purchaser. Owner shall use best efforts to sell the Property to a Qualified Purchaser, including listing of the Property at or below the Maximum Resale Price. "Best efforts" includes obtaining a broker, listing the Property on the multiple listing service, holding open houses, advertising and such other methods as normally undertaken to sell residential property. If after ninety (90) days following the Agency's receipt of written notice of Owner's intent to sell, and despite Owner's best efforts, Owner has not received a bona fide offer from a Qualified Purchaser to purchase the Property at the lesser of(i) the Maximum Resale Price, or(ii)the appraised fair market value of the Property, Owner shall notify Agency in writing that the Property has not been sold. (1) Rejection of Offer from Qualified Purchaser. Owner's rejection of an offer from a Qualified Purchaser shall be subject to Agency's approval of the reasonableness of the rejection, which Agency approval shall not be unreasonably denied. Notwithstanding the foregoing, Owner shall not reject a bona fide offer from a Qualified Purchaser solely on the basis of the offered purchase price, provided that the offer is equal to the lesser of(i) the Maximum Resale Price, or(ii)the appraised fair market value of the Property. (2) Termination of Escrow. Once an offer from a Qualified Purchaser has been accepted and escrow has been opened, and if escrow should thereafter be terminated for any reason prior to closing, then a new ninety (90) day period for marketing the Property to a Qualified Purchaser shall commence upon Agency's receipt of written notice from Owner that the escrow has been terminated. (3) Agency's Sale Right. If the Owner has not received an offer from a Qualified Purchaser within the time period set forth in Section 3(e), then Agency shall have the right to cause the sale of the Property to a third party who is a Qualified Purchaser, at a price not to exceed the lesser of. (i) the Maximum Resale Price, or (ii) the appraised fair market value of the Property. Agency's exercise of such right shall be made by delivery of written notice to Owner within thirty (30) days after Agency receives written notice that the Property has not been sold. In the event Agency arranges the purchase by a Qualified Purchaser, an escrow shall be established to close within sixty(60) days after delivery of Agency's notice of exercise. At the election of Agency, Agency may appoint a certified, independent appraiser to conduct an appraisal of the Property, at Agency's expense, to assist Agency in determining if the Maximum Resale Price is at or near the fair market value of the Property at such time. Regulatory Agreement (6 of 16) Felipe Velazquez 11111111 �F�R3 lic�f�'4 III I I11111111111111 II II I I II N"c.;tF.'RF Rf 1F17 f+FiR In the event Agency fails to agree in writing to nominate a Qualified Purchaser within thirty (30) days of receipt of written notice from Owner, the Property may be marketed by Owner to non-Qualified Purchasers at a market rate that may exceed the Maximum Resale Price; provided, however, that Owner shall continue to use its best efforts to sell the Property to a Qualified Purchaser. Owner's failure to sell the Property to a Qualified Purchaser shall obligate Owner to share the Sale Proceeds, if any, with the Agency in accordance with the formula set forth in Section 3(e)(4)below. (4) Agency's Share of Sale Proceeds. If the Property is sold to a purchaser who is not a Qualified Purchaser, then the Agency shall receive a declining pro rata percentage of the Sale Proceeds at the time of the sale, depending on the year in which the Property is sold. The pro rata percentage (the "Share Ratio") shall be equal to the ratio determined by dividing (a) the Agency Financial Assistance by (b) the Purchase Price. The Agency' share is then derived by multiplying the Sale Proceeds by the Share Ratio by the applicable percentage set forth in the following table. The longer the Property is owned, the less Sale Proceeds are shared with the Agency. After a period of nine years, no Sale Proceeds are due the Agency. The Agency shall receive its share of the Sale Proceeds at the close of escrow for the sale of the Property. The schedule for determining the Agency's share of the Sale Proceeds is as follows: r, 2002 100% (or prior) 2003 90% 2004 80% 2005 70% 2006 60% 2007 50% 2008 40% 2009 30% 2010 20% 2011 10% The sharing of Sale Proceeds with the Agency shall not apply when: (i) Owner sells or transfers the Property to a Qualified Purchaser; (ii) the transfer is due to the assumption of ownership by inheritance upon death of the Owner; (iii) the transfer is due to the assumption of ownership by one spouse in connection with a divorce; or (iv) the transfer is due to some other circumstance that does not involve the exchange of consideration and is approved in writing by Agency. Regulatory Agreement (7 of 16) Felipe Velazquez III IIII III IIIIIIII II IIII I II III III _''"crsi7 of`�J �8 r EanR (f) Agency Fee. The Agency shall be entitled to receive the Agency Fee for the services provided under this Regulatory Agreement. The Agency Fee shall be paid to the Agency through the escrow for the sale of the Residence. The Agency Fee shall be paid from funds accruing to the benefit of the Owner. (g) Section 143 of the Internal Revenue Code. If and for so long as the Residence is financed by a loan made with the proceeds of qualified mortgage bonds, it may only be sold to a person or family who qualifies for such financing under Section 143 of the Internal Revenue Code. 4. LIMITATION ON ENCUMBRANCES. Notwithstanding anything to the contrary contained in this Agreement, Owner shall not mortgage the Property or any portion thereof or any interest therein, or enter into any other form of conveyance for financing during the term of this Agreement,except for the following purposes: (a) financing the purchase of the Property from Developer or a subsequent owner(the "First Lien"); or (b) refinancing of the First Lien for a loan amount not to exceed the then current loan balance secured by the First Lien; or (c) financing the construction of improvements on the Property but only if such improvements are approved in writing by Agency and do not exceed five percent(5%) of the then current loan balance secured by the First Lien. The Owner shall provide such documentation as may be reasonably required by Agency to show that the financing permitted by this Section 4(c) was used for the construction of the improvements approved in writing by Agency. The Owner shall not enter into any such conveyance for financing without the prior written approval of the Agency. Any lender approved by the Agency shall not be bound by any material amendment, implementation, or modification to this Agreement subsequent to the recordation of its mortgage without such lender giving its prior written consent thereto. 5. SUBORDWATION. This Agreement shall be subordinate to any First Lien on the Property held by the First Lien's Holder ("Holder"), and shall not impair the rights of Holder, or Holder's assignee or successor in interest, to exercise its remedies under the First Lien in the event of a default under the First Lien by Owner. In the event of a foreclosure or deed in lieu of foreclosure of the First Lien, this Agreement shall be terminated and shall have no further force or effect on subsequent owners of the Property. Any person, including his or her successors or assigns (other than Owner or a related person or entity of Owner), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Lien shall receive title to the Property free and clear from the restrictions in this Agreement. Further, if the Holder acquires title to the Property pursuant to a deed in lieu of foreclosure, this Agreement shall be terminated upon Holder's acquisition of title, provided that Regulatory Agreement (S of 16) Felipe Velazquez IIII III III III I I II III I II [iL EF..o,AV rip 00A (i) Agency has been given written notice of a default under the First Lien concurrently with any notice provided to the Owner, and (ii) Agency shall not have cured the default under the First Lien, or diligently pursued curing the default, within the time period provided to Owner under the First Lien, as shall be described in the notice sent to Agency. 6. MAINTENANCE OF PROPERTY, (a) Maintenance Obligation. Owner shall maintain the improvements and landscaping on the Property and adjacent landscaped parkways in a manner consistent with community standards which will uphold the value of the Property, in accordance with the Palm Springs Municipal Code. Owner also agrees to comply with any and all covenants and agreements established by any Declaration of Covenants, Conditions, and Restrictions controlling the Property and to comply with all applicable federal, state and local laws. (b) Right of Entry. In the event any Owner fails to maintain his, her, or their Residence in the above-mentioned condition, and satisfactory progress is not made in correcting the condition within thirty(30) days from the date of written notice from the Agency, the Agency may, at its option, and without further notice to Owner, declare the unperformed maintenance to constitute a public nuisance. Thereafter,the Agency, or its employees, contractors or agents,may cure the default by entering upon the Residence and performing the necessary landscaping and/or maintenance. The Agency shall give Owner notice of the time and manner of entry, and entry shall only be at such times and in such manner as is reasonably necessary to carry out his Regulatory Agreement. Owner shall pay such costs as are reasonably incurred by Agency for such maintenance. (c) Lien. If the costs incurred pursuant to Section 4.2 are not reimbursed within thirty (30) days after receipt of notice thereof, the same shall be deemed delinquent, and the amount thereof shall bear interest thereafter at a rate of ten percent (10%) per annum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorney's fees, shall be a lien and charge, with power of sale, upon the Residence. Any such lien may be enforced by power of sale by the Agency following recordation of a Notice of Default given in the manner and time required by law as in the case of a deed of trust. Such sale shall be conducted in accordance with the provisions of Section 2924, et seq., of the California Civil Code applicable to the exercise of powers of sale in mortgages and deeds of trust, or in any other manner permitted by law. Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or deed of trust covering an ownership interest in and to the Residence, and any purchaser at any foreclosure or trustee's sale (as well as any deed or assignment in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall take title free from any such monetary lien, but otherwise subject to the provisions hereof; provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided for herein to the extent they relate to the expenses incurred subsequent to such foreclosure, assessed hereunder to the purchaser at the foreclosure sale, as owner of the subject parcel after the date of such foreclosure sale, shall become a lien upon such parcel upon recordation of a Notice of Default as herein provided. Regulatory Agreement (9 of 16) Felipe Velazquez IIIIIIIIIIIIIIIIIIIIIIII IIIIIII E+c:2E00�1,7 CID4erE 7. ENFORCEMENT. (a) Events of Default. In the event Owner defaults in the performance or observance of any covenant, agreement or obligation of Owner set forth in this Regulatory Agreement, and if such default remains uncured for a period of thirty(30) days after written notice thereof shall have been given by Agency, or, in the event said default cannot be cured within said time period, Owner has failed to commence to cure such default within said thirty (30) days and diligently prosecute said cure to completion, then Agency shall declare an "Event of Default' to have occurred hereunder, and, at its option, may take one or more of the following steps: (1) By mandamus or other suit, action or proceeding at law or in equity,require Owner to perform its obligations and covenants hereunder or enjoin any acts or things which may be unlawful or in violation of this Regulatory Agreement; or (2) Take such other action at law or in equity as may appear necessary or desirable to enforce the obligations,covenants and agreements of Owner hereunder. Failure or delay in giving notice shall not constitute a waiver of any default, nor shall it change the time of default. 8. NONDISCRIMINATION. (a) Obligation to Refrain from Discrimination. There shall be no discrimination against, or segregation of, any persons, or group of persons, on account of race, color, ancestry, religion, sex, marital status, disability (including AIDS and HN diagnosis), national origin, familial status, sexual orientation or source of income, in the sale, transfer, use, occupancy or enjoyment of the Residences, or any portion of the Residences,nor shall Developer or any Owner, or any person claiming under or through Developer or any Owner, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of purchasers of the Residences or any portion thereof. The nondiscrimination and nonsegregation covenants contained herein shall remain in effect in perpetuity. (b) Form of Nondiscrimination and Nonsegregation Clauses. Owner shall refrain from restricting the sale of any portion of the Residence on the basis of race, color, ancestry, religion, sex, marital status, disability (including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income, of any person. All such deeds or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (1) Deeds. In deeds the following language shall appear: "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, ancestry, religion, sex, marital status, disability (including AIDS and HIV diagnosis), national origin, familial status, sexual orientation or source of income, in the sale, transfer, use, occupancy, tenure Regulatory Agreement (to of 16) Felipe Velazquez III IIIII I I I I II III I II III II III C+2.2c ' nal�ai G1�0r,F or enjoyment of the land herein conveyed, nor shall the grantee, or any persons 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 purchasers in the land herein conveyed. The foregoing covenants shall run with the land." (b) Contracts. Any contracts which any Owners or their heirs, executors, administrators, or assigns propose to enter into for the sale or transfer of the Residence shall contain a nondiscrimination and nonsegregation clause substantially as set forth in this Section 8. Such clause shall bind the contracting parry and subcontracting party or transferee under the instrument. 9. COVENANTS TO RI]N WITH THE LAND. Owner hereby subjects the Property to the covenants,reservations and restrictions set forth in this Regulatory Agreement. The Agency and the Owner hereby declare their express intent that all such covenants, reservations and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors in title to the Property; provided, however, that on the termination of this Regulatory Agreement said covenants, reservations and restrictions shall expire, except as otherwise expressly provided. All covenants without regard to technical classification or designation shall be binding for the benefit of the Agency, and such covenants shall run in favor of the Agency for the entire term of this Regulatory Agreement, without regard to whether the Agency is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument. Agency and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Owner's legal interest in the Property is rendered less valuable thereby. Agency and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the possibility of enjoyment and use of the Property by Low and Moderate Income Households, the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the public purposes for which the Agency was formed. 10. TERM; TERMINATION. The term of this Agreement shall commence upon the close of escrow for the sale of the Property from Seller to Owner, and shall continue until the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), unless terminated earlier. This Agreement shall automatically terminate without any further action of the parties upon the earlier of. (a) the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), or (b) the sale of the Property to a purchaser who is not a Qualified Purchaser, provided the Agency receives its share of the net equity pursuant to Section 3(e) above. Regulatory Agreement (11 of 16) Felipe Velazquez IIII IIII IIII I I I II I I II I IIIII I II Cre{•11 E Fr?�13� Firnr�M 11. MISCELLANEOUS. (a) Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: If to Agency: Community Redevelopment Agency of the City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Attn: Executive Director With a copy to: Burke, Williams& Sorensen, LLP 18301 Von Kannan Avenue, Suite 1050 Irvine,California 92612 Attn: David I. Aleshire,Esq. If to Owner: Felipe Velazquez 990 Chuckwalla Road Palm Springs, CA 92264 With a copy to: Notices personally delivered or delivered by document delivery service shall be effective upon receipt. Mailed notice shall be effective at noon on the second business day following deposit with the United States Postal Service. Either party may change its address for notice by giving written notice thereof to the other parry. (b) Attorneys' Fees. In the event that a parry to this Regulatory Agreement brings an action against the other parry hereto by reason of the breach of any condition or covenant, representation or warranty in this Regulatory Agreement, or otherwise arising out of this Regulatory Agreement, the prevailing parry in such action shall be entitled to recover from the other reasonably attorney's fees to be fixed by the court which shall render a judgment, as well as the costs of suits. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery. Regulatory Agreement (12 of 16) Felipe Velazquez IIII IIII II I II IIIIIIIII III IIII II III E,e.z 4 F.12 of 1 (c) Amendments. This Regulatory Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside. (d) Severability/Waiver/Integration. (1) If any provision of this Regulatory Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. (2) A waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right. (3) This Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement. 12. ETTTITRF F,NFORCEMF.NT RV CITV, The parties hereby agree that should the Agency cease to exist as an entity at any time during the term of this Regulatory Agreement, the Agency shall have the right to assign its rights and delegate its duties and obligations hereunder to the City of Palm Springs or to another governmental or quasi-governmental agency approved by the City in writing or to a non-profit corporation devoted to developing affordable housing approved in writing by the City. Regulatory Agreement (13 of 16) Felipe Velazquez IIIIIIIIIIIIIII IIIIIIIII IIIII II III II III Fat E .,13g3 R 17WR IN WITNESS WHEREOF, the Agency and Owner have executed this Regulatory Agreement as of the day and year written below. "OWNER" Date: By: S :a__ .• Felipe Velazquez "AGENCY" COMMUNITY REDEVELOPMENT AGENCY, OF THE CITY OF PALM SPRINGS, a public body corporate and politic e o Date: Exeeutive-Direetor Assistant Secretary 1 0 APPROVED AS TO FORM: !I BURKE, WILL & SORENSEN, LLP Agen •C unsel [END OF SIGNATURES] Regn6awary%Agreement (14 of 16) Felipe Velazquez IIIIIIIII II I II IIIIIIII III IIIII II 200-13-464 ofA1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of Riverside On ' 9-L] _ before me, —Elaine L. Wedekind, Notary Public Date Name and Title of Officer(e.g.,"Jane Dee,Notary Public") personally appeared William G. Kleindienst and Patricia A. Sanders Name(s)of Signer(s) :personally known to me- - to be the person(s) whose name(s)IN/are subscribed to the within instrument and acknowledged to me that RiLrM4/they executed the same in X /their authorized capacity(ies), and that by GG>tlfMtheir signature(s) on the instrument the person(s), N ^- or the entity upon behalf of which the person(s) acted, G i i...liE i L. V;ct:9L5t�iP1D� a,u „ executed the instrument. f _� �mi.;.�arJr Sa ('dNOFARYPU LICCAfirORMIAJ0 RIVERSDECOUNTY WITNESS my hand and official seal. O uun ntF.raa.a, nas J i w 1 f� %t� �r��� CC'C N Y• �'i_�:f /:� . � Slgnallure of Notary Public i rd (f z OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent TM!"! fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) r Signer's Name: Signer's Name: ❑ Individual ❑ Individual ❑ Corporate Officer ❑ Corporate Officer Title(s): Title(s): ❑ Partner—❑ Limited ❑ General ❑ Partner—❑ Limited ❑ General ❑ Attorney-in-Fact ❑ Attorney-in-Fact ❑ Trustee ❑ Trustee ❑ Guardian or Conservator ❑ Guardian or Conservator ❑ Other: Top of thumb here ❑ Other: Top of thumb here Signer Is Representing: Signer Is Representing: 0 1994 National Notary Assoclation•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 Prod.No 5907 Reorder.Call Tall-Free 1-800-876-6627 STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) A On �' ) before me, � � ( �� � - d" personally appeared 1'C r`P t E l✓ �- P Z- P 01' L Zr- personally known_to rn (or proved to me on the basis of satisfactory evidence) to be the personN whose name( �/i/,are subscribed to the within instrument and acknowled_ d to me thaC a/she/theg executed t o same it(� :ier./Iheir authorized capacity(ies), and that bh s%herd't�ieir signature , on the instrument the person(,or the entity upon behalf of which the pe °d,so a t ex,�cute a nds'l-ument. WITNESS my hand and official seal. i Vpu OFFICIAL SEAL ' + YVETTE GARZA MUcLA ` % VVI k „✓!"r�I' 1"`�^4 :1 GOMM x12a2599 M {P V�•)�..,A+ ^ Plotzry Public-California RIVERS0E COUNTY { / My C'MmlsiVEMBER 2 ,Expires03 1 (SEAL) NOVEMBER 20, \\ f STATE OF CALIFORNIA ) \ ss. COUNTY OF RIVERSIDE ) On before me, 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. (SEAL) Regulatory Agreement (15 of 16) Felipe Velazquez II III I I II I I I I I I I II II II II r,...�bll'ise,r FI�wn ATTACHMENT"1"TO REGULATORY AGREEMENT LEGAL DESCRIPTION OF PROPERTY Lot 8 of Tract 29695, recorded in Book 315, Pages 6 to 8 inclusive, of Maps,records of Riverside County, California. Regulatory Agreement (16 of 16) Felipe Velazquez II III III I I II I I I I I III I III I II ©dr2G,{�'1c1'_ Al, AAA Coachella Valley Housing OPA AGREEMENT #394C Amend #1 R1158, 12-19-01 FIRST AMENDMENT TO OWNER PARTICIPATION AGRccmcrv_i This First Amendment to an Owner Participation Agreement (the "First Amendment") is entered into by and between the Community Redevelopment Agency of the City of Palm Springs, a public body, corporate and politic ("the Agency") and Coachella Valley Housing Coalition, a California Corporation ("Developer"), and is intended by the parties hereto to effectuate the development of the intended nine home self help project in the Cottonwood/Chuckwalla neighborhood defined in the original Owner Participation Agreement. RECITALS WHEREAS, the Agency and Developer entered into that certain Owner Participation Agreement dated 9-/ , 1999, which was approved by the Agency Board pursuant to Resolution NoP679 on September 1, 1999, (the "Original DDA"), with respect to the acquisition and development of certain real property located in the City of Palm Springs and more particularly described in the Original OPA; and WHEREAS, as of the date of this First Amendment, the Developer has secured all necessary project financing; obtained architectural and project approvals from the City of Palm Springs; has completed the work necessary for the approval of a subdivision map, and is ready for the approval of the map by the City of Palm Springs; and, prequalified the nine families that will participate it. the program; and WHEREAS, the Agency and Developer now desire to enter into this First Amendment to the OPA for purposes of approving the Regulatory Agreements necessary to ensure the continued affordability of the units, assigning a portion of the project loan to each of the individual homeowners, as well as amending the Schedule of Performance to reflect the current status of the project. NOW, THEREFORE, based upon the foregoing recitals and the terms, conditions, covenants, and agreements contained herein, the parties hereto agree as follows: Section 1. Developer and Agency agree that the following shall be added as new Section 2.5 to the Owner Participation Agreement. 2.5 Application for Development Funds. Participant agrees that Agency Loan is provided by Agency to Participant with the express understanding that Participant with the express understanding is to obtain at least FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) of funding from sources other than the Agency as may be necessary to complete the project ("Development Funds"), pursuant to the terms of the amended OPA to be negotiated and agreed upon by Participant and Agency, including but not limited to completing the requirements for securing the HOME funds and application to RCAC and other sources. Participant has now secured the necessary development funds from the HOME Program administered by the California Department of Housing and Community Development, and from the California Housing Finance Agency, and has the ability to proceed with the Project. mV#11900 VI -I- Section 6.2 Notices. Notices mailed to the Agency Counsel shall be mailed to: Burke, Williams & Sorensen, LLP 18301 Von Karman Avenue Suite 1050 Irvine, California 92612-1009 Attn: David J. Aleshire, Esq. Exhibit "B", Outline of Funding Sources and Uses of Funds, shall be modified as attached. Exhibit "E", Project Activity Schedule, shall be added. Exhibit "F", Regulatory Agreement, shall be added. The DDA is Deemed Modified to the Extent Inconsistent With the Provisions of This First Amendment. Except as provided herein, the DDA continues unmodified and in full force and effect. [SIGNATURES ON NEXT PAGE] IRV NI 1900 vl -2- IN WITNESS WHEREOF, the undersigned have executed this First Amendment, on the date set forth below. Dated: 2002 By: w �— for to� ella galley Housing Coalition Dated: ,? �°��' 7 , 2002 AGENC By: tlM Chairman Community Redevelopment Agency of the City of Palm Springs A�Es�r- i rm_. ssistant Secretary APPROVED AS TO FORM: Dated: = , 2002 BURKE WILLIAMS & SORENSEN, LLP By: gency Counsel IRV NI 1900 vl -3- STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On 200i1; before me, personally appeared fi"IGA-+-_ U , personally known to me (or proved to me on the basis of satisfactory evidence)"to be the person($) 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/heratheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person($) acted, executed the instrument. r� / WITNESS my hand and official seal. (SEAL) "'"Al' YBA"A �p Comm.q 1214383 'n V! ,"A NOTAFYPUBLIC-CALIFORNIA N b Aivorside County My(;onlm.FttGIr03 Mureh 2 9T 2 � STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On 2001, before me, 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. (SEAL) my ai 1900 vr -4- EXHIBIT "E" PROJECT ACTIVITY SCHEDULE Activity Completion Date Ownership Control July 2001 Financing Obtained Administrative March 2000 Acquisition November 2000 Predevelopment July 2001 Construction July 2001 Permanent May 2002 Local Planning Approval October 2001 Notice to Proceed December 2001 A. Site Improvements Grading January-February 2002 Sewer& Water January-February 2002 Dry Utilities January-March 2002 Street Improvements April-May 2002 B. Construction Slabs February 2002 Framing February-April 2002 Roof& Rough In March-May 2002 Plaster& Drywall April-June 2002 Finish June-August 2002 Landscaping July-August 2002 Final Inspection August-September 2002 Certificate of Occupancy August/September 2002 IRv ui 1900 A -5- EXHIBIT"B" Outline of Funding Sources and Uses of Funds COACHELLA VALLEY HOUSING COALIT)ON CHUCKWALLA SELF HELP PROJE CT PROJECT PROPOSAL;GROUP 1(9 SELF-HELP HOMES) DATE:06/28/01 5X INTEREST RATE MORTGAGES 3 BR1.28A a Bor as 3 BR 128A 2 !to 3 loaya 9 taoares 1 fto Use of Funds Hard Cosa Lot Cat $T8,150 $4411111,1100 Overlwad i Su ir9.a69 f7a Ape $I0,000 f215,950 School Fees Per $3.000 Sfup" SS� � i1i AN Engineering S2AW f19 iSIAN �200 Ctty PwMWOWer Fees $11,000 Sss,000 $11.000 33.000 i25'200 Interest Expense $s,ow Ss4,a00 $9A50 �.0g° i93A00 Woo S22,{gg 111^ $34=0 constmedon L.oan:FealPotrda 32.5dd s3.95o 371,400 $x xo5 Tow Costa $3.200 i ace tt'� SIANSIAN $22ASia,wo 7ucum Casts $135.000 3SAW$3,200 ia.a00 329.900 Tool Sweet Equity $3,000 �fl0pgg i $4,500 �,� 51,21a.500 i140,000 Sa40,000 3,40,000,500 f13,600 S43,500 5420,00o $1.260.000 Sources of Funds CONSTRUCTION FINANCING Sank Loan:(tat Lan) i29,tss CHFASHBA�l2nd Lien) $174,111119 +a •i79.N7 $"Ao1.33 i2a1,000 . i5S,5" S3u i19f,9aT Cky RDA Funds f�1� f1 a9T f135T,117 f5,,333 f1SAIX0 L Sweat Equity $4.� $2 002 f33.aaa $100,99a i304AW $140.000 .�Total $5,000 f16,000 $42.000 i140,100 S420,000 f1,260,000 PERMANENT FINANCING s CHFA(1st Lien) 733 City RDA Funds(]rd Lion) �'�nl ia9,1N � 3297,5ss SSOaA03 HOME PAd Lion) 529,950 Buyer Sweetquity $17.111 fi02,fa7 i1T,111 $51,133�3 u39,000 sea.►rk.(APpreaal) $140,000 $W,000 00° $15 559 if42 000 f14o590 s4x9o99 i1,2a0,9d5 C1tNICAL A531STANCE CS" f10,00p City RDA Funds(3rd Lan) $5.000 S30A00 i10,000 530.000 $a0.000 �.� 315,000 $45.000 Family Deposit Closing As needed: i2.000 312,000 S2,000 WAG i1S.000 CHFA(Downpaymant Asaatanp) NOTES: Mortgage Amount Bated on: 65X Mod Family SW 45%Med 100%County Median kmww 4 a Fandly Media, $47400 MO^INhl Houses Costa(30%) $24.070 �'� Less Property Taxes teat SNa Less knmanoe $118 $1111111 Mortgage Insurance $10 $40 Buyer Repayment Ability $0 i0 Required Mortgage Payment $494 s4a1 Far," I (Subsidy) Sw 5457 Intmet Rae a.oa T $4 Term Teen 6.00X' Mortgage Amount 0 Yom 30 years $95,000 EXHIBIT "F" REGULATORY AGREEMENT [SEE FOLLOWING PAGES] 11ty#16862 v1 (1 of 13) Exhibit"F"To Owner Participation Agreement RECORDED AT THE ) REQUEST OF AND WHEN ) RECORDED RETURN TO: ) Palm Springs Community Redevelopment Agency P.O. Box 2743 3200 Tahquitz Canyon Way ) Palm Springs, CA 92263 ) Attn: Executive Director ) (SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE) (EXEMPT FROM RECORDING FEE PER GOV. CODE `6103) REGULATORY AGREEMENT PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY THIS REGULATORY AGREEMENT (the "Agreement") is made this day of , 200_, by and between ("Owner") and the PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY ("Agency"). RECITALS. A. Owner has entered into an agreement (the "Purchase Agreement") to purchase from the Coachella Valley Housing Coalition, (the "Developer") certain real property located at , Palm Springs, California, which real property is more particularly described in Exhibit"1" attached hereto and incorporated herein (the "Property"). B. Agency has agreed to provide financial assistance in the development of the housing project in which the Property is located. Agency's activities in this regard are designed to implement Agency's effort to assist persons and families of moderate-income or lower ("Eligible Persons and Families") to purchase residential property and to increase, improve, and preserve the supply of moderate-income and lower housing available within the territorial jurisdiction of Agency, in accordance with the Community Redevelopment Law (California Health and Safety Code Sections 33000 et seq.). C. Agency and the Developer entered into an Owner Participation Agreement dated (the "OPA"). Pursuant to the terms of the OPA, title to the Property may be vested in Owner subject to this Regulatory 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. IRV#16862 A (2 of 13) Exhibit"F"To Owner Participation Agreement D. The Agency's financial assistance and the use and affordability restrictions imposed by Agency have enabled Owner to purchase the Property with financial assistance provided for in the OPA. In exchange for Agency's assistance, Owner agrees to the restrictions on the sale, resale, and occupancy of the Property created by this Agreement. NOW, THEREFORE, the Developer, Owner and Agency declare, covenant and agree, by and for themselves, their heirs, executors, administrators and assigns, and all persons claiming under or through them, that the Property shall be held, transferred, encumbered, used, sold, conveyed, leased and occupied, subject to the covenants and restrictions hereinafter set forth. 1. DEFINITIONS. (a) Agency Financial Assistance. The term "Agency Financial Assistance" shall mean an amount determined necessary for the development of the project by the project pro forma, after all other sources of financing, public and private, have been included, and which have been assumed by the Agency to assist a Qualified Purchaser. The Agency Financial Assistance shall be applied to the down payment required to purchase the Property. The amount of Agency Financial Assistance is Dollars ($_, .00). (b) Low Income Household. The term "Low Income Household" shall mean a household earning no more than eighty percent (80%) of the median income for a household of the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, or its successor statute. (c) Moderate Income Household. The term"Moderate Income Household" shall mean a household earning no more than one hundred twenty percent(120%) of the median income for a household of the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, or its successor statute. (d) Purchase Price. The term "Purchase Price" shall mean that amount agreed upon by the Owner and Developer and approved by the Agency's Executive Director as the payment to be made by Owner to Developer for the purchase of the Property, which amount is (e) Qualified Purchaser. The term "Qualified Purchaser" shall mean those persons who satisfy all of the following requirements: (1) The potential owner's adjusted gross income, as shown on federal income tax return(s), for the full calendar year immediately preceding the calendar year in which the prospective purchaser seeks to acquire the Property, does not exceed the Low and Moderate Income Household for the preceding calendar year. (2) The potential owner certifies they intend to occupy the Property as their principal residence and for no other purpose and that they will not enter into an agreement, whether oral or written, for the rental or lease of the Property. IRV#16862 vl (3 of 13) Exhibit"F"To Owner Participation Agreement (3) The potential owner(s) do not own any other residential real property at the time of purchase, and have not owned any other residential real property in the three preceding years. (4) The potential owner(s) demonstrate to the Agency's satisfaction that Agency Financial Assistance is required for the purchase of the Property. (f) Sale Proceeds. The term "Sale Proceeds" shall mean the net proceeds from the sale of the Property to a purchaser who is not a Qualified Purchaser. The formula for determining the Sale Proceeds is as follows: (Gross proceeds of sale) minus (costs of sale, such as escrow, title and broker fees) minus (balance remaining on the Purchase Price to retire any mortgages) minus (Owner's original investment) = Sale Proceeds. 2. INCOME. INFORMATION. Owner has submitted an eligibility verification form to Agency prior to execution of this Agreement. Owner represents, warrants, and declares under penalty of perjury to Agency that all information Owner has provided and will provide in the future to Agency is and will be true, correct and complete. 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. RESTRICTIONS ON SAL F OF THE PROPERTY, Developer and Owner covenant and agree for themselves and their successors and assigns to their interest in the Property that the sale, resale, and occupancy of the Property shall be restricted as follows: (a) Occupancy Standards. The Property shall be used as the principal residence of Owner and Owner's family and for no other purpose. Owner shall not enter into an agreement for the rental or lease of the Property. (b) Notice to Agency of Intent to Sell. If Owner desires to sell, exchange, quitclaim, or in any manner dispose of the Property, or any part thereof("Proposed Sale"), Owner shall first notify Agency in writing not less than thirty(30) days prior to entering into any binding agreement for such a Proposed Sale. (c) Sale to Qualified Purchase . Except as expressly provided in this Agreement, the Property shall be sold, conveyed, assigned or otherwise transferred to a Qualified Purchaser for a sales price which is equal to or less than the maximum amount permitted by the California Department of Housing and Community Development for housing affordable to Low and Moderate Income Households ("Maximum Sales Price"). Agency shall cooperate with Owner in providing information to Owner and to qualifying lenders to enable them to calculate the Maximum Sales Price and whether a prospective purchaser meets the legal low or moderate income standard. IRV#16s62 v1 (4 of 13) Exhibit'F"To Owner Participation Agreement • (d) Agency Approval of Prospective Purchasers. Owner shall submit to Agency all offers received by the Owner for the Property. The Agency may elect to schedule a meeting with the prospective purchaser. Based upon the information submitted by Owner and the prospective purchaser, the Agency shall verify that the prospective purchaser is a Qualified Purchaser and that the sales price is less than or equal to the Maximum Sales Price. The Owner and the prospective purchaser shall provide such supporting documentation the Agency reasonably deems appropriate, including an income tax return of the prospective purchaser. Upon Agency's approval, the Owner may thereafter sell the Property to the Qualified Purchaser upon the terms and conditions submitted to the Agency, and subject to the restrictions in this Agreement. If the Property is sold to a Qualified Purchaser, then Owner shall not be required to share any Sale Proceeds with Agency pursuant to Section 3(e)below. (e) Sale of PropetU to Non-Qualified Purchaser. Owner shall use best efforts to sell the Property to a Qualified Purchaser, including listing of the Property at or below the Maximtun Sales Price. "Best efforts" includes obtaining a broker, listing the Property on the multiple listing service, holding open houses, advertising and such other methods as normally undertaken to sell residential property. If after ninety (90) days following the Agency's receipt of written notice of Owner's intent to sell, and despite Owner's best efforts, Owner has not received a bona fide offer from a Qualified Purchaser to purchase the Property at the lesser of(i) the Maximum Sales Price, or (ii) the appraised fair market value of the Property, Owner shall notify Agency in writing that the Property has not been sold. (1) Rejection of Offer from Qualified Purchaser. Owner's rejection of an offer from a Qualified Purchaser shall be subject to Agency's approval of the reasonableness of the rejection, which Agency approval shall not be unreasonably denied. Notwithstanding the foregoing, Owner shall not reject a bona fide offer from a Qualified Purchaser solely on the basis of the offered purchase price, provided that the offer is equal to the lesser of (i) the Maximum Sales Price, or(ii)the appraised fair market value of the Property. (2) Termination of Fc row. Once an offer from a Qualified Purchaser has been accepted and escrow has been opened, and if escrow should thereafter be terminated for any reason prior to closing, then a new ninety (90) day period for marketing the Property to a Qualified Purchaser shall commence upon Agency's receipt of written notice from Owner that the escrow has been terminated. (3) Agency's Right of First Refi,sal. If the Owner has not received an offer from a Qualified Purchaser within the time period set forth in Section 3(e), then Agency shall have the right of first refusal to purchase the Property, or to cause the sale of the Property to a third party who is a Qualified Purchaser, at a price not to exceed the lesser of. (i) the Maximiun Sales Price, or(ii) the appraised fair market value of the Property. Agency's exercise of such right of first refusal shall be made by delivery of written notice to Owner within thirty (30) days after Agency receives written notice that the Property has not been sold. In the event Agency either purchases the Property or arranges the purchase by a Qualified Purchaser, an escrow shall be established to close within sixty(60) days after delivery of Agency's notice of exercise. At the election of Agency, Agency may appoint a certified, independent appraiser to conduct an appraisal of the Property, at Agency's expense, to assist Agency in determining if IRV 416862 v1 (5 of 13) Exhibit'T"To Owner Participation Agreement the Maximum Sales Price is at or near the fair market value of the Property at such time. If the appraised fair market value is less than the Maximum Sales Price, then the Agency may purchase the Property at the appraised fair market value. If the appraised fair market value exceeds the Maximum Sales Price, then the Agency may still purchase the Property at the Maximum Sales Price. In the event Agency fails to agree in writing to purchase or to nominate a Qualified Purchaser within thirty (30) days of receipt of written notice from Owner, the Property may be marketed by Owner to non-Qualified Purchasers at a market rate that may exceed the Maximum Sales Price; provided, however, that Owner shall continue to use its best efforts to sell the Property to a Qualified Purchaser. Owner's failure to sell the Property to a Qualified Purchaser shall obligate Owner to share the Sale Proceeds, if airy, with the Agency in accordance with the formula set forth in Section 3(e)(4) below. (4) Agency's Share of Sale.Proceeds. If the Property is sold to a purchaser who is not a Qualified Purchaser, then the Agency shall receive a declining percentage of the Sale Proceeds at the time of the sale, depending on the year in which the Property is sold. The longer the Property is owned, the less Sale Proceeds are shared with the Agency. After the termination of this Agreement, no Sale Proceeds are due the Agency. The Agency shall receive its share of the Sale Proceeds at the close of escrow for the sale of the Property. The schedule for determining the Agency's share of the Sale Proceeds is as follows: CALENDAR YEAR AGENCY'S SI4ARE OF RESALE OF SALE PROCEEDS 2002 100% (or prior) 2003 90% 2004 80% 2005 70% 2006 60% 2007 50% 2008 40% 2009 30% 2010 20% 2011 10% 2012 1% The sharing of Sale Proceeds with the Agency shall not apply when: (i) Owner sells or transfers the Property to a Qualified Purchaser; (ii) the transfer is due to the assumption of IRV#16862 vt (6 of 13) Exhibit"F"To Owner Participation Agreement ownership by inheritance upon death of the Owner; (iii) the transfer is due to the assumption of ownership by one spouse in connection with a divorce; (iv) Agency purchases the Property pursuant to Section 3(e)(3) above; or (v) the transfer is due to some other circumstance that does not involve the exchange of consideration and is approved in writing by Agency. 4. Limitation on Fn umhranr c. Notwithstanding anything to the contrary contained in this Agreement, Owner shall not mortgage the Property or any portion thereof or any interest therein, or enter into any other form of conveyance for financing during the term of this Agreement, except for the following purposes: (a) financing the purchase of the Property from Developer(the "First Lien"); or (b) refinancing of the First Lien for a loan amount not to exceed the then current loan balance secured by the First Lien; or (c) financing the construction of improvements on the Property but only if such improvements are approved in writing by Agency and do not exceed five percent (5%) of the then current loan balance secured by the First Lien. The Owner shall provide such documentation as may be reasonably required by Agency to show that the financing permitted by this Section 4(c) was used for the construction of the improvements approved in writing by Agency. The Owner shall not enter into any such conveyance for financing without the prior written approval of the Agency. Any lender approved by the Agency shall not be bound by any material amendment, implementation, or modification to this Agreement subsequent to the recordation of its mortgage without such lender giving its prior written consent thereto. 5. SUBORDINATION. This Agreement shall be subordinate to any First Lien on the Property held by the First Lien's Holder ("Holder"), and shall not impair the rights of Holder, or Holder's assignee or successor in interest, to exercise its remedies under the First Lien in the event of a default under the First Lien by Owner. In the event of a foreclosure or deed in lieu of foreclosure of the First Lien, this Agreement shall be terminated and shall have no further force or effect on subsequent owners of the Property. Any person, including his or her successors or assigns (other than Owner or a related person or entity of Owner), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Lien shall receive title to the Property free and clear from the restrictions in this Agreement. Further, if the Holder acquires title to the Property pursuant to a deed in lieu of foreclosure, this Agreement shall be terminated upon Holder's 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 wider the First Lien, or diligently pursued curing the default as determined by the Holder, within the time period provided in such notice sent to Agency. IRV#16862 v1 (7 of 13) Exhibit"Y'To Owner Participation Agreement 6. MAINTENANCE, OF PROPERTY, Owner shall maintain the improvements and landscaping on the Property and adjacent landscaped parkways in a manner consistent with community standards which will uphold the value of the Property, in accordance with the Palm Springs Municipal Code. Owner also agrees to comply with any and all covenants and agreements established by any Declaration of Covenants, Conditions, and Restrictions controlling the Property and to comply with all applicable federal, state and local laws. 7. ENFORCEMENT. (a) Events of Default. In the event Owner defaults in the performance or observance of any covenant, agreement or obligation of Owner set forth in this Regulatory Agreement, and if such default remains uncured for a period of thirty(30) days after written notice thereof shall have been given by Agency, or, in the event said default cannot be cured within said time period, Owner has failed to commence to cure such default within said thirty (30) days and diligently prosecute said cure to completion, then Agency shall declare an "Event of Default" to have occurred hereunder, and, at its option, may take one or more of the following steps: (1) By mandamus or other suit, action or proceeding at law or in equity, require Owner to perform its obligations and covenants hereunder or enjoin any acts or things which may be unlawful or in violation of this Regulatory Agreement; or (2) Take such other action at law or in equity as may appear necessary or desirable to enforce the obligations, covenants and agreements of Owner hereunder. Failure or delay in giving notice shall not constitute a waiver of any default, nor shall it change the time of default. S. COVENANTS TO RITN WITH THE LAND. Owner hereby subjects the Property to the covenants, reservations and restrictions set forth in this Regulatory Agreement. The Agency and the Owner hereby declare their express intent that all such covenants, reservations and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors in title to the Property; provided, however, that on the termination of this Regulatory Agreement said covenants, reservations and restrictions shall expire, except as otherwise expressly provided. All covenants without regard to technical classification or designation shall be binding for the benefit of the Agency, and such covenants shall run in favor of the Agency for the entire term of this Regulatory Agreement, without regard to whether the Agency is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument. IRV#16962 v1 (8 of 13) Exhibit'T"To Owner Participation Agreement Agency and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Owner's legal interest in the Property is rendered less valuable thereby. Agency and Owner hereby farther declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the possibility of enjoyment and use of the Property by Low and Moderate Income Households, the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the public purposes for which the Agency was formed. 9. TERM; TERMiNATTO . The term of this Agreement shall commence upon the close of escrow for the sale of the Property from Seller to Owner, and shall continue until the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), unless terminated earlier. This Agreement shall automatically terminate without any further action of the parties upon the earlier of: (a) the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), or (b) the sale of the Property to a purchaser who is not a Qualified Purchaser, provided the Agency receives its share of the net equity pursuant to Section 3(e) above. 10. MISCELLANEOUS. (a) Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: If to Agency: Palm Springs Community Redevelopment Agency P.O. Box 2743 Palm Springs, CA 92263 Attn: Executive Director With a copy to: Burke, Williams& Sorensen, LLP 18301 Von Karman Avenue, Suite 1050 Irvine, California 92612 Attn: David J. Aleshire, Esq. If to Owner: With a copy to: IRV#16862 vt (9 of 13) Exhibit"F"To Owner Participation Agreement i • Notices personally delivered or delivered by document delivery service shall be effective upon receipt. Mailed notice shall be effective at noon on the second business day following deposit with the United States Postal Service. Either party may change its address for notice by giving written notice thereof to the other party. (b) Attorneys' Fees. In the event that a party to this Regulatory Agreement brings an action against the other parry hereto by reason of the breach of any condition or covenant, representation or warranty in this Regulatory Agreement, or otherwise arising out of this Regulatory Agreement, the prevailing party in such action shall be entitled to recover from the other reasonably attorney's fees to be fixed by the court which shall render a judgment, as well as the costs of suits. Attorney's fees shall include attorney's fees on any appeal, and in addition a parry entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery. (c) Amendments. This Regulatory Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside. (d) Severability/Waiver/Inte ation, (1) If any provision of this Regulatory Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. (2) A waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right. (3) This Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement. 11. FTIT"F FNFTTRCFMFNT RV CTTV, The parties hereby agree that should the Agency cease to exist as an entity at any time during the term of this Regulatory Agreement, the City of Palm Springs shall have the right to enforce all of the terms and conditions herein, unless the Agency had previously specified another entity to enforce this Regulatory Agreement. IRV#16862 vt (10 of 13) Exhibit"F"To Owner Participation Agreement IN WITNESS WHEREOF, the Agency and Owner have executed this Regulatory Agreement as of the day and year written below. "OWNER" Date: By: Printed Name: Printed Title: Date: By: Printed Name: Printed Title: "AGENCY" PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY, a public body corporate and politic Date: By: Executive Director ATTEST: Assistant Secretary APPROVED AS TO FORM: BURKE, WILLIAMS & SORENSEN, LLP Agency Counsel [END OF SIGNATURES] Inv H16862 v1 (I I of 13) Exhibit"F"To Owner Participation Agreement STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On before me, 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. (SEAL) STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On before me, 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. (SEAL) TRv#16s62 v1 (12 of 13) Exhibit"F"To Owner Participation Agreement ATTACHMENT"1" TO REGULATORY AGREEMENT LEGAL DESCRIPTION OF PROPERTY [TO BE INSERTED] IRV#16862 v1 (13 of 13) Exhibit"P"To Owner Participation Agreement CVHC, l G �a • Affordable Housing Promissory Note r 1 � N 4- �//© 3 AGREEMENT#394C per R1078, 9-1-99 DO NOT DESTROY THIS NOTE: When paid, this Note, with the Deed of Trust securing same, must be surrendered to Trustee for cancellation before reconveyance will be made. THIS NOTE PROVIDES FOR A BALLOON PAYMENT SECURED PROMISSORY NOTE $114,500.00 1999 Riverside County, California FOR VALUE RECEIVED, the undersigned, the COACHELLA VALLEY HOUSING COALITION, a California nonprofit corporation ("Maker"), does hereby promise to pay to THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic or order ("Holder"), at a place designated by Holder, the principal sum of ONE HUNDRED FOURTEEN THOUSAND FIVE HUNDRED AND 00/100 DOLLARS ($114,500.00), without interest except as provided below. If not sooner paid, Maker shall pay to Holder in lawful money of the United States, the entire unpaid principal balance and accrued interest, if any, hereunder on or before May 31, 2000. This Note is secured by a Deed of Trust encumbering certain real property located in the County of Riverside, State of California, more particularly described therein ("Property"), and any other instruments, now or hereafter executed by Maker in favor of Holder, which in any manner constitute additional security for this Note ("Deed of Trust"). Any payments made by Maker in payment of this Note shall be applied first to the interest then accrued and due on the unpaid principal balance under this Note, and the remainder of each payment shall be applied to the reduction of the unpaid principal. Upon the failure to make payment of any payment due under this Note as and when the same become due and payable (whether by extension, acceleration or otherwise), or in event of default under the Deed of Trust or any breach of any other promise or obligation in this Note or in any other instrument now or hereafter securing the indebtedness evidenced hereby, then, and in any of such events, Holder may, at its option, declare this Note and the entire indebtedness hereby evidenced, including, without limitation, all accrued interest, to be immediately due and payable and collectible then or thereafter as Holder may elect, regardless of the date of maturity, and notice of the exercise of said option is hereby expressly waived by Maker. If this Note is not paid when due, whether at maturity or by acceleration, Maker promises to pay all costs of collection, including, but not limited to, attorneys' fees and all expenses incurred in connection with the protection or realization of the collateral securing the 627/014064-0012/3176258 6 a09/02/99 payment hereof or enforcement of any guaranty, incurred by Holder on account of such collection, whether or not suit is filed hereon. Maker and all endorsers, guarantors and persons liable or to become liable on this Note waive presentment, protest and demand, notice of protest, demand and dishonor and nonpayment of this Note and any and all other notices or matters of a like nature, and consent to any and all renewals and extensions near the time of payment hereof and agree further that at any time and from time to time without notice, the terms of payment herein may be modified or the security described in any documents securing this Note released in whole or in part, or increased, changed or exchanged by agreement between Holder and any owner of the premises affected by said documents securing this Note, without in any way affecting the liability of any party to this Note or any persons liable or to become liable with respect to any indebtedness evidenced hereby. Maker may, with the express written consent of Holder, enter into a subsequent grant lien and regulatory agreement to assign the loan to qualified buyers pursuant to the terms of the development agreement to be executed by Holder and Maker. In the event Maker shall, directly or indirectly, voluntarily, involuntarily or by operation of law, sell, assign, transfer, dispose of, hypothecate, further encumber, enter into option to sell or lease with option to sell or agree to sell, assign, transfer, dispose of, further encumber, enter into option to sell or lease with option to sell or suffer to exist any other lien against all or any portion of the Property, or any interest therein without Holder's express written consent thereto, then, or at any time thereafter, Holder, at its sole option and in its sole and absolute discretion, may, by written notice to Maker, declare all amounts due under this Note immediately due and payable, except to the extent that such acceleration and in such particular circumstances where exercise of such a right by Holder is prohibited by law. The provisions hereof shall prevail notwithstanding any contrary provisions in any other instrument which evidences the obligations hereby secured. In the event of any default or breach of this Note or the Deed of Trust, the entire principal remaining unpaid hereunder, shall automatically bear an annual interest rate equal to the lesser of ten percent (10%) per annum or maximum amount allowed by law. Notwithstanding anything to the contrary herein contained, (i) the liability of Maker shall be limited to its interest in the Property and any rents, issues, and profits arising the Property and, in addition, with respect to any obligation to hold and apply insurance proceeds, proceeds of condemnation or other monies hereunder, any such monies received by it to the extent not so applied in accordance with the terms of this Note; (ii) no other assets of Maker shall be affected by or subject to being applied to the satisfaction of any liability which Maker may have to Holder or to another person by reason of this Note; and (iii) any judgment, order, decree or other award in favor of Holder shall be collectible only out of, or enforceable in accordance with, the terms of this Note by termination or other extinguishment of Maker's interest in the Site. Notwithstanding the foregoing, it is expressly understood and agreed that the aforesaid limitation on liability shall in no way restrict or abridge Maker's continued personal liability for: (A) fraud or willful or grossly negligent misrepresentation made by Maker in connection with this Note or any of the Agency/City Agreements; (B) misapplication of (a) proceeds of insurance and condemnation or (b) rent received by Maker under rental agreements entered into for any portion 627/014064-0012/3176258 6 aOo/D2/99 of the Property; (C) the retention by Maker of all advance rentals and security deposits of tenants not refunded to or forfeited by such tenants; (D) the indemnification undertakings of Maker under the Owner Participation Agreement between Maker and Holder executed concurrently herewith; and (E) material waste by Maker with respect to the Property. The unenforceability or invalidity of any provision or provisions of this Note as to any persons or circumstances shall not render that provision or those provisions unenforceable or invalid as to any other provisions or circumstances, and all provisions hereof, in all other respects, shall remain valid and enforceable. Neither this Note nor any term hereof may be waived, amended, discharged, modified, changed or terminated orally; nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by Maker and Holder. No delay or omission on the part of Holder in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Note. Notwithstanding any provision in this Note or the Deed of Trust or other document securing same, the total liability for payment in the nature of interest shall not exceed the limit now imposed by applicable laws of the State of California. This Note has been executed and delivered by Maker in the State of California and is to be governed and construed in accordance with the laws thereof. IN WITNESS WHEREOF, Maker has executed this Note as of the date and year first above written. COACHELLA VALLEY HOUSING COALITION, a Califor ' nonp fit corporation By: -��— Its: Exec tiv Director Bye-- Its: Board P esident "Maker" 627/014084-0012/3196998.6 a09/02/99 DOBOTBTCOBD 0 The following is a COPY of Subdivisious A and Bat the fictitious Deed of Trust recorded in each county in California as stated in the foregoing Deed of Trust and incorporated by reference in said Deed of Trust as being a part thereof as if set lorth at length[herein. A. To Protect Me security of this Deed of Trust.Trusor agrees: 11 To keep said properly in g0od condition and repair,lie[to rem0ve or demolish any building thereon;t0 complete or restore promptly and In a good and workmanlike manner any building which may he constructed damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor,to Comply with all laws affecting said properly or requiring any altetatianS or imprOvemOnlS to he made[hereon;not to commit Or permit waste thereof;not to commit suffer or permit any act upon said property in violation of law;to Cultivate,irrigate,fertilize,fumigate,prune and do all other acts which from the Character or use of said property may he reasonably necessary,the specific enumerati0ns herein not excluding the general. 21 To Provide,maintain and deliver to Beneficiary fire insurance satisfactory to and with lass payable to Beneficiary. The amount collected under any fire or Other Insurance policy may he applied by Beneficiary upon any indebtedness Secured hereby and in such order as Beneficiary may determine,or at the option of Beneficiary the entire amount so collected or any part thereof may he released to Truster. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 31 To appear in and defend any action Or proceeding Purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee;and to pay all costs and expenses,including cost of evidence of title and attorney's fees in a reasonable sum,in any such action or proceeding in which Beneficiary or Trustee may appear,and in any suit brought by Beneficiary to foreclose this Deed. 41 To PaY.at least ten days before delfnquency all taxes and assessments affecting said property,including assessments on appurtenant water stock;when due,all encumbrances,charges and liens,with interest,on said properly or any Part thereof,which appear to he prior or superior hereto;all casts,fees and expenses of this Trust Should Truster fall to make any payment or to do any act as herein provided then Beneficiary of Trustee,but without obligation so to do and without notice to or demand upon Truslor and without releasing Truster from any obligation hereof,may:make or do the same is such manner antl 10 such extent as either may Being necessary to protect the security hereof,Beneficiary Or Trustee being authorized t0 enter upon said property for such purposes;appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee;pay,purchase,contest or compromise any encumbrance,charge or lien Which in the judgment Of either appears to he prior ar superior hereto;and,in exercising ally such POwers,pay necessary expenses,employ counsel and pay his reasonable fees. 51 To pay immediately and without demand all sums so expended by Beneficiary or TrUStee,wfth interest from date of expenditure at the amount allowed by taw in effect at the date hereof,and to pay for any statement provided for by law fit effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. B. His mutually agreed: 11 That any award in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall he paftl to Beneficiary who may apply or release such moneys received by him in the same manner and with the same effect as above Provided for disposition of proceeds of fire or otherinsurance. 21 Thalby accepting payment 01 any sum secured hereby after its due date,Beneficiary does not waive his right either to require prompt payment when due of all OtherSUrns so secured or to declare default for failure Soto pay. 31 That at any HMO or from time to time,without liability therefor and without notice,upon Written request Of Mmeffclary and preSentati0p of this Deed and sold note lot endorsement,and without affecting the personal liability of any person for payment of the indebtedness secured hereby,Trustee may..Uon recoof this any part of said property;charge ent tohereof the making 01 any map or Plat thereof;loin in granting any easement thereon,or loll]fin any extension agreement Or any agreement Subordinating the lien or charge hereof. 41 That upon written request of Beneficiary staffing that all sums secured hereby have been paid,and upon surrender of this Deed and said note to Trustee for cancellation antl retention or after disposition as Trustee in its sole discretion may choose and upon payment of its fees,Trustee shall reconvey,Without warranty,the property then held hereunder. The recitals in such reconveyance of any matters or facts shall he conclusive proof of the truthfulness thereof. The Grantee in such 1000rweyance may he described as'The person or persons legally ontiUed thereto:' 51 That as additional security,Truster hereby gives to and confers upon Beneficiary the right power antl authority,during the continuance of these Trusts,to collect the rents,Issues and profits of said property,reserving unto Truster the right prior to any default by Truster fit payment at any indebtedness secured hereby or in the performance Of any agreement hereunder,to collect and retain such rents,issues and profits as they become due and payable.Upon any such default Benelfciary may at any time Wfthom notice,either In person,by agent or he a receiver to be appointed by a court and without regard to the adequacy of any security for the indebtedness hereby secured,enter upon and take possession of said properly or any part thereof,in his own name sue for or otherwise collect such rents,issues,and profits,including those Past due and unpaid and apply the some,less costs and expenses of operation and collection,including reasonable attorneys'fees,upon any indebtedness secured hereby,and in such order as Beneficiary may delernffn0.The entering upon and taking possession of said property,the callecUng of such rents,issues and profits and the application thereof as aforesaid,shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 61 That upon default by Truster in payment of any indebtedness secured hereby or in the performance of any agreement hereunder,Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaratian of default and demand for sale and of written notice of default and of election to cause to he sold saitl properly,which notice Trustee shall cause to be filed lot record. Beneficiary also shall deposit With Trustee this Deed,said note and all documents evidencing expenditures secured hereby. After the lapse of such time as play then he required by law following the recordation Of said notice of default and notice of sale having been given as then required by law,Trustee,Without demand on buster,Shall sell said properly at the time and place fixed by it in said police of sale,either as a whole or in separate parcels, and in such order as It may determine,at public auction to the highest bidder for cash in lawful money of the United States,payable at time of sale.Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale,and from time to time thereafter may postpone such sale by public announcement at the time fixed by Me preceding postponement Trustee shall deliver to such purchaser its deed conveying the granary so sold,but Wffton[any cove am l]or warranty,express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person,including Truster, Trustee,or Beneficiary as hereinafter tlefnned,may purchase al such sale. After deducting all costs,fees and expenses of Trustee and of this Trust including cast al evidence of BOB in connection With sale,Trustee shall apply the Proceeds al sale 10 payment BE all sums expended under the terms hereof,not then repaid,with accrued interest at the amount allowed by law in effect at Me date hereof;all other sums then secured hereby;and Me remainder,if any,to the person or persons legally entitled thereto. 71 Beneficiary,or any successor in ownership of any indebtedness secured hereby,may from time to time,by instrument In writing,substitute a successor or 627/014084-0012/3176258.6 a09/02/99 (CONTINUED ON NEXT PAGE) 115 8 11/9 41 page 3 014 successors to any Trustee named herein or acting hAer,which instrument executed by the Beneficiary and Acknowledged and recorded in the office of the recorder at the county or counties where said property is situated shall he conclusive proof of proper substitution of such successor Trustee or Trustees,who shall, without conveyance from the Trustee predecessor,succeed to all its One,estate,rights,powers and duties.Said instrument must contain the name of the original irustar, Trustee and Beneficiary hereunder,the hook and page where this Deed IS recorded and the name and address of the new Trustee. 81 That this Deed applies to,inures to the benefit at and hinds all parties hereto,their heirs,legatees,devisees,administrators,executors,successors and assigns.The term Beneficiary shall mean the owner and holder,including pledgees,of the note secured hereby,whether or not named as 0eneficiary herein. In this Deed, whenever the context so requires,the masculine gentler includes the feminine and/or neuter,and the singular number includes the plural. 91 That Trustee accepts this Trust when this Deed,duly executed and acknowledged,is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which irustar,Beneficiary or Trustee shall he a party unless brought byTmstee. 80 NOT RECORD REQUEST FOR FULL RECONYEYANCE TO FIRST AMERICAN TITLE INSURANCE COMPANY,TRUSTEE: The undersigned is the legal owner and holder of the note or notes and of all indebtedness secured by the foregoing Deed of Trust Said note or notes,together with all other indebtedness secured by said Deed of Trust have been fully paid and satisfied;and you are hereby requested and directed,on payment to you of any suers owing to you under the terms of said Deed of Trust to cancel said note or notes above mentioned,an all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith,together with the said Deed of Trust and to reconvey,without warranty,to the parries designated by the terms of said Deed of Trust all the estate now held by you under the same. Dated Please mail need of Trust, Note and Reconveyanceto Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made. 115811/941 e27/0140e4-0012/3176258.6 a09/02/99 Page4of4 DEED OF TRUST WITH POWER OF SALE First American Title Insurance Company TRUSTEE 115811/941 sn/oia oea-oaiz/z nszsa e a05/02/e9 Page 5of4 CVHC Affordable Housing OPA&Loan Agreement AGREEMENT#394C OWNER PARTICIPATION AND LOAN AGREEM R1078, 9-1-99 THIS OWNER PARTICIPATION AND LOAN AGREEMENT ("Agreement") is entered into this "S�� day of September, 1999 ("Effective Date"), by and between the COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic ("Agency"), and COACHELLA VALLEY HOUSING COALITION, a California nonprofit public benefit corporation ("Participant"). RECITALS: A. Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (Health and Safety Code Sections 33000, et seg.). B. Participant has acquired three (3) parcels ("Acquired Parcels") and intends to acquire an additional parcel ("Fourth Parcel") of real property located on Avenida Caballeros and Cottonwood, commonly known as the Cottonwood/Chuckwalla area in the City of Pahn Springs, State of California, and more particularly described on Exhibit "A" attached hereto and incorporated herein by reference (collectively, the "Property") pursuant to those certain Purchase Agreements, by and between Participant and Antone and Rhonda West, as trustees for the West Family Trust as to Lots 12 and 13 of the Property, and Fook Kheong Chan and Terry Kwanyu Chan, as trustees for the Chan Family Trust as to Lot 11 of the Property (collectively "Purchase Agreements"). C. The Property is located within the Palm Springs Project Area 9B ("Redevelopment Area") which was adopted by City Council Ordinance Number 1321 on January 28, 1989, as amended from time to time. D. Agency desires to meet its affordable housing goals pursuant to the California Community Redevelopment Law by loaning Participant funds to assist in the acquisition of the Property in order to potentially facilitate Participant's development of an affordable family housing project ("Project"). Participant shall execute loan documents in favor of the Agency to evidence and secure such loan. The Agency has determined that loaning monies to Participant for the acquisition of the Project is in the best interests of the City and the welfare of its citizens. E. Participant has secured additional funding of $154,000 for the Project from the State of California Department of Housing and Community Development under the HOME Program ("HOME") and shall apply for additional loans of$540,000 from the Rural Community Assistance Corporation ("RCAC"), and shall seek funding from other sources should such applications prove unsuccessful. F. Agency and Participant have not agreed on the specific terms and conditions for development and operation of the Project and, therefore, have agreed, for the period set forth herein, to negotiate in good faith to attempt to reach an agreement regarding the terms for the development and operation of the Project by an amended Owner Participation Agreement 627/014084-0012/3176258.6 a09/02/99 _1_ fi f. ("Amended OPA"). In the event that the parties do not reach an agreement on the Amended OPA, Participant shall still be required to repay the Agency's loan in full. NOW, THEREFORE, and in consideration of the mutual covenants hereinafter contained, it is mutually agreed upon by the parties as follows: 1. PURPOSE OF AGREEMENT. This Agreement and the Exhibits attached hereto are intended to effectuate the Redevelopment Plan by facilitating the availability of affordable residential housing to families within the Project Area. The construction of affordable family residential units on the Property pursuant to this Agreement, and the fulfillment generally of this Agreement, are in the best interests of the City and the welfare of its residents, are consistent with the City's General Plan and are in accordance with the public purposes and provisions of applicable federal, state, and local laws and requirements under which the Project has been undertaken and is being assisted. This Agreement is entered into by the Agency pursuant to its authority under the Community Redevelopment Law of the State of California, Health and Safety Code Sections 33000 et seq. (all statutory references herein are to the Health and Safety Code unless otherwise provided); which authorizes the Agency to make agreements with owners, purchasers, and lessees of property located within the Project Area by providing for the development of property conforming with the Redevelopment Plan, provided the Agency retain controls and establish restrictions or covenants running with the land so that the property will be developed, operated, and used in conformity with this Agreement, the Redevelopment Plan and the Community Redevelopment Law. 2. FINANCING AND ACQUISITION OF THE PROPERTY. 2.1 Loan of Funds. Subject to the terms and conditions set forth herein, Agency hereby agrees to loan to Participant the actual purchase price and actual acquisition costs paid by Participant for the Acquired Parcels, architectural, engineering and related construction costs for development of seven (7) low/moderate income houses upon the Acquired Parcels as further described at Exhibit "B" ("Acquired Parcels Costs") plus the actual expected purchase price, and actual acquisition, architectural, engineering and related construction costs for development of two (2) low/moderate income houses upon the Fourth Parcel as further described at Exhibit "B" ("Fourth Parcel Costs"), which amount collectively shall not exceed the sum of THREE HUNDRED THREE THOUSAND AND 00/100 DOLLARS ($303,000.00) ("Agency Loan"). In connection with the Agency Loan, Participant shall execute a (i) Secured Promissory Note in the form attached hereto as Exhibit "C" ("Note") for each portion of the Agency Loan disbursed by Agency pursuant to Section 2.2 herein and prior to Agency's disbursement of each portion of the Agency Loan; (ii) a Deed of Trust in the form attached hereto as Exhibit "D" ("Deed of Trust"); and (iii) a Corporate Resolution in the form attached hereto as Exhibit "E" (collectively, "Loan Documents"). Agency shall disburse the Agency Loan to Participant in the manner set forth at Section 2.2 herein. Repayment by Participant to Agency of the Agency Loan shall be made pursuant to the terms of each Note executed by Participant pursuant to the terms specified at Exhibit "C". 627/014084-0012/3176250.6 a09/02/99 -2- 2.2 Disbursement of Loan. Agency shall disburse the Agency Loan proceeds to Participant in the following manner and pursuant to the following conditions: (a) Acquired Parcels Costs: (i) $114,500 (representing the purchase price of the Acquired Parcels plus the architectural and engineering costs of developing seven low/moderate income houses upon the Acquired Parcels) within (5) days after Participant and Agency execute this Agreement; (ii) $102,500 (representing the costs of grading, utilities installation and otherwise preparing the Acquired Parcels for construction and costs of materials for the construction of seven low/moderate income houses upon the Acquired Parcels) within ten (10) days of Participant's acquisition of Development Funds as defined in Section 2.5 herein; (b) Fourth Parcels Costs: (i) The actual purchase price of the Fourth Parcel, not to exceed $30,200, upon Participant's satisfaction of the conditions in Section 2.4 herein; and (ii) $55,800 (representing the escrow, architectural and engineering costs, costs for grading, utilities installation and otherwise preparing the Fourth Parcel for construction and costs of materials for the construction of seven low/moderate income houses upon the Fourth Parcel) upon Participant's satisfaction of the conditions in Section 2.4 herein and acquisition of Development Funds as defined in Section 2.5 herein. 2.3 Conditions Met as to Acquired Parcels. Participant represents to Agency that Participant has met the following conditions with respect to the Acquired Parcels: (a) The Purchase Agreements have not been amended or modified without the written consent of Agency; (b) The purchase price paid by Participant for the Acquired Parcels was EIGHTY SIX THOUSAND FIVE HUNDRED AND 00/100 DOLLARS ($86,500.00); (c) Participant has satisfied all other conditions set forth in this Agreement precedent to close of escrow as to the Acquired Parcels. 2.4 Conditions Precedent to Disbursement of Fourth Parcel Purchase Price. Agency shall not be obligated to deposit that portion of the Agency Loan representing the actual purchase 627/014084-0012/3176258.6 a09/02/99 -3- price of the Fourth Parcel, which amount shall not exceed THIRTY THOUSAND TWO HUNDRED AND 00/100 DOLLARS ($30,200.00), unless all of the following conditions precedent are satisfied on or before February 29, 2000 as to Participant's acquisition of the Fourth Parcel: (a) There exists no default under this Agreement; the Loan Documents or any other document referred to herein. Agency shall have no obligation to fund the Agency Loan or Purchase Costs after February 29, 2000; (b) Participant has deposited into escrow the Loan Documents and all funds and other documentation required for escrow holder to be irrevocably committed to closing escrow; (c) A title company acceptable to Agency has committed to issue a Title Insurance Policy from a title insurer acceptable to Agency and deliver to Agency a 1990 ALTA lender's policy of title insurance in the principal amount of the Note ("Title Policy") as to the Fourth Parcel with such endorsements as Agency may require, insuring that the title to the Property is vested in Participant. (d) Participant has satisfied all other conditions set forth in this Agreement precedent to close of escrow on the Fourth Parcel and disbursement of the portion of the Agency Loan representing the purchase price of the Fourth Parcel; (e) The escrow agent has notified Agency in writing that Participant has satisfied all conditions to close of escrow on the Fourth Parcel. Any waiver of the foregoing conditions must be express and in writing. In the event that Participant fails to satisfy the above-referenced conditions precedent, or defaults in the performance of its obligations hereunder, Agency may terminate this Agreement. 2.5 Application for Development Funds. Participant agrees that the Agency Loan is provided by Agency to Participant with the express understanding that Participant is to obtain at least FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) of funding from sources other than Agency as may be necessary to complete the Project ("Development Funds"), pursuant to terms of the Amended OPA to be negotiated and agreed upon by the Participant and Agency, including but not limited to completing the requirements for securing the HOME funds and application to RCAC or other funding sources. Should Participant be unable to obtain such Development Funds by May 31, 2000, Participant agrees to transfer to Agency title to the Property, free and clear of any outstanding lien, claim or encumbrance, within twenty (20) days of the rejection by all available sources of funding for Development Funds or May 31, 2000, whichever occurs first, and Agency may terminate this Agreement upon its receipt of title to the Property from Participant, as required herein. 627/014064-0012/3176256.6 ao9/02/69 -4- S 3. REPRESENTATIONS AND WARRANTIES. 3.1 _Effective Date of Representations and Warranties. All of the representations and warranties set forth in this Section 3 are valid as of date of this Agreement and shall remain valid, true, and correct after the close of escrow on the Fourth Parcel unless Participant discloses to Agency in writing a change in the representation warranties set forth herein. 3.2 Participant Representations and Warranties. To the best of its knowledge, Par- ticipant hereby makes the following representations, covenants, and warranties for the benefit of Agency, and Agency's successors and assigns, and acknowledges that the execution of this Agreement by Agency has been made, in material reliance by Agency on such representations and warranties: (a) Participant Ownership of the Acquired Parcels. Participant has entered into valid and binding Purchase Agreements to the Acquired Parcels and is negotiating to acquire fee title to the Fourth Parcel. Upon the close of escrow on the Fourth Parcel, Participant shall hold fee title to the Property. (b) Application for Development Funds. Participant will apply for funding from sources other than Agency as may be necessary to complete the Project, pursuant to section 2.6 above. (c) Litigation. There are no pending or threatened claims, actions, proceedings, or lawsuits of any kind, whether for personal injury, property taxes, or otherwise, that could adversely affect title to or the operation or value of the Property or which questions the validity or enforceability of this transaction, nor is there any governmental investigation of any type or nature, pending or threatened, against or relating to the Property or the transactions contemplated hereby (other than those conducted by City and Agency). (d) No Default. The execution and delivery of this Agreement and all other documents to be executed by Participant pursuant to this Agreement will not constitute or result in any default or event that with notice or the lapse of time, or both, would be a default, breach, or violation of any lease, mortgage, deed of trust, or other agreement, instrument or arrangement by which Participant or the Property is bound or any event which would permit any party to terminate an agreement or accelerate the maturity of any indebtedness or other obligation affecting Participant or the Property. (e) No Violation. The execution and delivery of this Agreement and all other documents to be executed by Participant pursuant to this Agreement and the consummation of the transactions contemplated herein will not violate any provision of, or require any consent, authorization, or approval under any law or administrative regula- tion or any other order, award, judgment, writ, injunction or decree applicable to, or any governmental permit or license issued to, Participant or relating to the Property. (f) No Bankruptcy. Neither Participant nor the entity constituting Participant, if any, has filed or been the subject of any filing of a petition under the Fed- 627/014084-0012/3176250.6 .09/02/99 -5- � s eral Bankruptcy Law or any insolvency laws, or any laws for the discharge of indebtedness or for the reorganization of debtors. (g) No Misrepresentation. No representation, warranty, or covenant of Participant in this Agreement, or in any document or certificate furnished or to be fur- nished to Agency pursuant to this Agreement, contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading. (h) Disclosure. Participant has disclosed all information concerning the Property of which Participant is aware which may materially affect the value of the Property. (i) Due Execution. The person(s) executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which said party is bound. 0) No Extraneous Consideration. Participant has not paid or given to, and will not pay or give to, the Agency or City or any official or agent of the Agency or City any money or other consideration for obtaining this Agreement, except as expressly provided herein. (k) Financial Information. All financial information delivered to Agency, including, without limitation, information relating to the financial condition of Participant, the Property, or the Project fairly and accurately represents such financial condition and has been prepared in accordance with accepted accounting principles consistently applied, unless otherwise noted in such information. No material adverse change in such financial condition has occurred. (1) Taxes. Participant has filed or will file all required federal, state, county, and municipal tax returns and has paid all taxes owed and payable pursuant to such returns or notice of assessment received by Participant, and Participant knows of no basis for additional assessment with respect to any taxes, other than due to Participant's acquisition of the Property. (m) Foreign Entity. Participant is not a "foreign person" within the meaning of the Internal Revenue Code of 1986 (26 U.S.C. 00 1445, 7701) or an out-of-state seller under California Revenue and Taxation Code Section 18805. 3.3 Support of Participant's Application for Development Funds. Agency shall provide support and cooperation, as reasonably necessary in Participant's application for and acquisition of Development Funds. 627/014084-0012/3176258.6 a09/02/99 -6- 4. SUBMITTAL OF PROJECT PLANS. 4.1 Negotiation Period. For a maximum period of ONE HUNDRED EIGHTY (180) days after the Agency approves the Conceptual Plan described at Section 4.2 below, the parties agree to use good faith efforts to negotiate comprehensive terms and conditions governing development and operation of the Project ("Negotiation Period") under the Amended OPA. This Agreement shall automatically terminate upon expiration of the Negotiation Period if the parties have not reached an agreement, and the entire amount of the Note including accrued interest thereon, if any, shall automatically become due and payable to the Agency fifteen (15) days following the conclusion of the Negotiation Period, unless the parties agree in writing to an extension. 4.2 Participant's Responsibilities. Within sixty (60) days following the close of escrow on the Fourth Parcel, Participant shall submit a conceptual plan ("Conceptual Plan") for the development and operation of the Project to be reviewed and approved by the Agency. The Conceptual Plan should, at a minimum, include the proposed type of family residential units, approximate number and size of units, architectural style of units, density of units, general amenities in the Project, landscaping, parking, and management operations, and proposed financing for the Project, including the source of funds (i.e., private or governmental). The parties, through the Amended OPA, shall negotiate their respective duties and the conditions of implementing the Conceptual Plan approved by the Agency, as required under Section 4.1 above. 4.3 Additional Participant Obligations. Upon the expiration of the Negotiation Period, Participant shall perform such additional studies, reports and analysis as shall be necessary to permit Participant to determine the feasibility of its participation in the Project, including, without limitation, the preparation of traffic engineering studies and any other environmental studies necessary to provide Agency with the information necessary to determine any mitigation measures required in connection with the Project. 4.4 Agency Responsibilities. Upon submission of a Conceptual Plan by the Participant as required by Section 4.2, the Agency shall complete its review of the Conceptual Plan within ninety (90) days. If the Agency approves Participant's proposal and confirms the apparent feasibility of the Project, then Agency will commence the documentation of the Amended OPA within thirty (30) days after approval of such proposal. In connection with such documentation, Agency will attempt to identify any mitigation measures that will be the responsibility of Participant in connection with the development of the Project. Participant acknowledges that the Amended OPA will contain, among other things, restrictions on the use and transfer of the Property for a specified period (i) to assure that the use will be consistent with and promote the Project, (ii) to prevent speculation, (iii) to assure that any transferee has the resources, capability and experience to successfully operate the applicable portion of the Project, (iv) to assure continued maintenance of the improvements, and (v) to provide adequate assurance of repayment of any loan made by the Agency to Participant. 4.5 Approval of Amended OPA. Participant understands and acknowledges that if negotiations culminate in the parties' execution of the Amended OPA, the Amended OPA shall be effective only after and if the Amended OPA has been considered and approved by the 627/014084-0012/3176268.6 a09/02/99 7 Agency Board after public hearing thereon and with full discretion of approval reserved to the Agency as required by applicable law ("Agency Approval"). Participant acknowledges and understands that the expenditure of money by Participant prior to the Agency Approval shall be solely at Participant's risk and such actions cannot be used by Participant to bind or estop Agency in any way with respect to entering into any agreement with respect to the Property and Agency shall have no obligation to reimburse Participant for any costs incurred by Participant. 4.6 Ownership of Documents. If the negotiations contemplated by this Agreement do not result in the execution of an agreement, Participant shall transfer to Agency at no cost or expense to Agency copies of any reports, studies, analysis, site plan layouts, development cost estimates, engineering studies, memorandums, or similar documents regarding the proposed development and prepared during the period of negotiations, which copies shall become the property of Agency. Such transfer shall be made without any representation or warranty by Participant as to the accuracy or sufficiency of the contents of such documents and shall be made subject to the rights of the preparers of such documents including, without limitation, the copyright (if any) associated with such documents. 4.7 No Future Obligation. Participant acknowledges that this Agreement does not imply any obligation on the part of Agency to enter into any additional agreement due to any negotiations contemplated herein. 4.8 Governmental Approvals. Notwithstanding anything herein contained herein to the contrary, it is expressly understood by the parties hereto that the Agency makes no representations or warranties with respect to the approvals required by any other governmental entity or with respect to approvals hereinafter required from the City or the Agency. The Agency reserves full police power authority over the Project and the Participant acknowledges that the City retains such full police power as well. Nothing in this Agreement shall be deemed to be a prejudgment or commitment with respect to such items nor to guarantee that such approvals or permits will be issued within any particular time or with or without any particular conditions. 4.9 Right of Access. Representatives of Agency and City shall have the reasonable right of access to the Property during the term of this Agreement. 4.10 No Assignment. Participant shall not transfer, assign or convey the Property or any of its interests therein without the prior written consent of the Agency, which may be withheld in the Agency's sole and absolute discretion. Participant shall remain liable under this Agreement following any approved consent to any transfer, assignment or conveyance of any Participant's interest in the Property or this Agreement. No attempted transfer, assignment or conveyance of any of Participant's obligations hereunder shall be effective unless and until the successor party executes and delivers to Agency an assumption agreement in a form approved by the Agency assuming such obligations. 627/014094-0012/3176258.6 a09/02/99 _8_ 4.11 Insurance and Indemnification. (a) Insurance. From and after the date Participant acquires title to the Property, and prior to the commencement of any construction by Participant of the Project, Participant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to Agency a policy of comprehensive general liability insurance written on a per occurrence basis in an amount not less than either (i) a combined single limit of ONE MILLION DOLLARS ($1,000,000.00) or (ii) bodily injury limits of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) per person, ONE MILLION DOLLARS ($1,000,000.00) per occurrence and ONE MILLION DOLLARS ($1,000,000.00) products and completed operations and property damage limits of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) per occurrence and ONE MILLION DOLLARS ($1,000,000.00) in the aggregate. (b) Worker's Compensation Insurance. A policy of worker's compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both the Participant, Agency and the City against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Participant in the course of carrying out the work or services contemplated in this Agreement. The insurance policies shall be primary insurance and shall name Agency, City, and their officers, employees and agents as additional insureds. The insurer shall waive all rights of subrogation and contribution it may have against Agency, City, and their officers, employees and agents and their respective insurers. The insurance policies shall provide that said insurance may not be amended or cancelled without providing thirty (30) days prior written notice by registered mail to Agency and City. In the event the insurance policies are cancelled, the Participant shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 4.11 to the Agency. No work or services under this Agreement shall commence until the Participant has provided Agency with a Certificate of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificate of Insurance or binder are approved by Agency. The policies of insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated "A" or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of the City ("Risk Manager") due to unique circumstances. The Participant agrees that the provisions of this Section 4.11 shall not be construed as limiting in any way the extent to which the Participant may be held responsible for the payment of damages to any persons or property resulting from the Participant's activities or the activities of any person or persons for which the Participant is otherwise responsible. 627/014094-0012/3176258.6 a09/02/99 -9- (c) Indemnification. Participant agrees to and shall indemnify and hold the Agency and the City harmless from and against all liability, loss, damage, cost or expenses (including reasonable attorneys' fees and court costs) arising from or as a result of the death of any person or any accident, injury, loss, or damage whatsoever caused to any person or to the property of any person which shall occur on the Property and which shall be directly or indirectly caused by the acts done thereon or any errors or omissions of the Participant or its agents, servants, employees or contractors. Participant shall not be responsible for (and such indemnity shall not apply to) any acts, errors or omissions of the Agency or the City or their respective agents, servants, employees or contractors. Agency and City shall not be responsible for any acts, errors or omissions of any person or entity except Agency and City and their respective agents, servants, employees or contractors, subject to any and all statutory and other immunities. The provisions of this Section 4.11 shall survive the termination of this Agreement. 4.12 Hazardous Substances. Neither Agency or City has any real property interest in the Property and shall never be listed on the title to the Property except by foreclosure of the Deed of Trust. Participant makes the following representation, warranties and indemnification to assure that Agency shall not be held responsible in any way or under any legal theory for environmental contamination of any kind on the Property. Participant represents and warrants that, except as disclosed by Participant or Participant's agents in environmental reports provided to Agency, to its knowledge there exists no "Hazardous Materials" (as such term is herein defined) nor oil wells, underground storage tanks, or pipelines in, on, under, or about the Property. Participant understands and agrees that in the event Participant incurs any loss or liability concerning Hazardous Materials and/or oil wells and/or underground storage tanks and/or pipelines, then Participant may look to current or prior owners of the Property, but under no circumstances shall Participant look to Agency or City for any liability or indemnification regarding Hazardous Materials and/or oil wells and/or underground storage tanks and/or pipelines. Participant, and each of the entities constituting Participant, if any, hereby waive, release, remise, acquit, and forever discharge Agency, City, their directors, officers, shareholders, employees, .and agents, and their respective heirs, successors, personal representatives and assigns, of and from any and all Environmental Claims, Environmental Cleanup Liability, and Environmental Compliance Costs, as those terms are defined below, and from any and all actions, suits, legal or administrative orders or proceedings, demands, actual damages, punitive damages, loss, costs, liabilities, and expenses, which concern or in any way relate to the physical or environmental conditions of the Property, the existence of any Hazardous Material thereon, or the release or threatened release of Hazardous Materials therefrom, whether existing prior to, at or after the date of this Agreement. It is the intention of the parties pursuant to this release that any and all responsibilities and obligations of Agency and City, and any and all rights, claims, rights of action, causes of action, demands or legal rights of any kind of Participant, its successors, assigns or any affiliated entity of Participant, arising by virtue of the physical or environmental condition of the Property, the existence of any Hazardous Materials thereon, or any release or threatened release of Hazardous Material therefrom, whether existing prior to, at or after the date of this Agreement, are by this Release provision declared null and void and of no present or future force and effect as to the parties. In connection therewith, Participant and 627/014084-0012/3176258.6 a09/02/99 -10- each of the entities constituting Participant, expressly agree to waive any and all rights which said party may have under Section 1542 of the California Civil Code which provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." Participant and each of the entities constituting Participant, from and after the Effective Date, and until a transfer, sale, or assignment permitted by Section 4.10, shall indemnify, defend, and hold harmless Agency, City and their respective officers, directors, employees, agents and representatives (collectively, the "Indemnified Parties") from and against any and all Environmental Claims, Environmental Cleanup Liability, Environmental Compliance Costs, and any other claims, actions, suits, legal or administrative orders or proceedings, demands or other liabilities resulting at any time from the physical and/or environmental conditions of the Property whether before or after the date of this Agreement and until an approved transfer, sale, or assignment as approved by Agency pursuant to Section 4.10, or from the existence of any Hazardous Materials or the release or threatened release of any Hazardous Materials of any kind whatsoever, in, on or under the Property occurring at any time whether before or after the date of this Agreement, including but not limited to, all foreseeable and unforeseeable damages, fees, costs, losses and expenses, including any and all attorneys' fees and environmental consultant fees and investigation costs and expenses, directly or indirectly arising therefrom, and including fines and penalties of any nature whatsoever, assessed, levied or asserted against any Indemnified Parties to the extent that the fines and/or penalties are the result of a violation or an alleged violation of any Environmental Law. Participant further agrees that in the event Participant obtains, from former or present owners of the Property or any other persons or entities, releases from liability, indemnities, or other forms of hold harmless relating to the subject matter of this section, Participant shall use its diligent efforts to obtain for Agency and City the same releases, indemnities and other comparable provisions. For purposes of this Section 4.12, the following terms shall have the following meanings: (a) "Environmental Claim" means any claim for personal injury, death and/or property damage made, asserted or prosecuted by or on behalf of any third parry, including, without limitation, any governmental entity, employee, former employee, or their or their respective legal representatives, heirs, beneficiaries and estates, relating to the Property or its operations and arising or alleged to arise under any Environmental Law. (b) "Environmental Cleanup Liability" means any cost or expense of any nature whatsoever incurred to contain, remove, remedy, clean up, or abate any contamination or any Hazardous Materials on or under all or any part of the Property, including the ground water thereunder, including, without limitation, (i) any direct costs or expenses for investigation, study, assessment, legal representation, cost recovery by governmental agencies, or ongoing monitoring in connection therewith and (h) any cost, expense, loss or damage incurred with respect to the Property or its operation as a result of actions or measures necessary to implement or effectuate any such containment, 627/014084-0012/3176256.6 a09/02/99 -11- removal, remediation, treatment, cleanup or abatement. (c) 'Environmental Compliance Cost" means any cost or expense of any nature whatsoever necessary to enable the Property to comply with all applicable Environmental Laws in effect. 'Environmental Compliance Cost" shall include all costs necessary to demonstrate that the Property is capable of such compliance. (d) 'Environmental Law" means any federal, state or local statute, ordinance, rule, regulation, order, consent decree, judgment or common-law doctrine, and provisions and conditions of permits, licenses and other operating authorizations relating to (i) pollution or protection of the environment, including natural resources, (ii) exposure of persons, including employees, to Hazardous Materials or other products, raw materials, chemicals or other substances, (iii) protection of the public health or welfare from the effects of by-products, wastes, emissions, discharges or releases of chemical substances from industrial or commercial activities, or (iv) regulation of the manufacture, use or introduction into commerce of chemical substances, including, without limitation, their manufacture, formulation, labeling, distribution, transportation, handling, storage and disposal. (e) "Hazardous Materials" is defined to include any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government and asbestos and any material containing asbestos, and includes, without limitation, any material or substance which is (i) petroleum or oil or gas or any direct or derivative product or byproduct thereof, (ii) defined as a "hazardous waste," "extremely hazardous waste" or 'restricted hazardous waste" under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140, of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter- Presley-Tanner Hazardous Substance Account Act); (iii) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Sections 255010) and (k) and 25501.1 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v) "used oil" as defined under Section 25250.1 of the California Health and Safety Code; (vi) asbestos; (vii) listed under Article 9 or defined as hazardous or extremely hazardous pursuant to Article 1 of Title 22 of the California Code of Regulations, Division 4, Chapter 30; (viii) defined as waste or a hazardous substance pursuant to the Porter-Cologne Act, Section 13050 of the California Water Code; (ix) designated as a "toxic pollutant" pursuant to the Federal Water Pollution Control Act, 33 U.S.C. 0 1317; (x) defined as a "hazardous waste" pursuant to the Federal Resource Conservation and Recovery Act, 42 U.S.C. 0 6901 et seq. (42 U.S.C. 0 6903); (xi) defined as a "hazardous substance" pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. 0 - 9601 et seq. (42 U.S.C. 0 9601); (xii) defined as "Hazardous Material" pursuant to the Hazardous Materials Transportation Act, 49 U.S.C. 0 1808 et sec .; or (xiii) defined as such or regulated by any "Superfund" or "Superlien" law, or any other federal, state or local law, statute, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning Hazardous Materials and/or 627/014064-0012/3176256.6 a09/02/99 ' -12- oil wells and/or underground storage tanks and/or pipelines, as now, or at any time hereafter, in effect. Notwithstanding any other provision of this Agreement, Participant's release and indemnification as set forth in the provisions of this Section, as well as all provisions of this Section shall survive the termination of this Agreement and shall continue in perpetuity. 5. ENFORCEMENT. 5.1 Events of Default. In the event either party defaults in the performance or observance of any covenant, agreement or obligation set forth in this Agreement, and if such default remains uncured for a period of thirty (30) days after written notice thereof shall have been given by the non-defaulting party, or, in the event said default cannot be cured within said time period, the defaulting party has failed to commence to cure such default within said thirty (30) days and diligently prosecute said cure to completion, then the non-defaulting party may declare an event of default to have occurred hereunder. 5.2 Nondiscrimination. Participant, for itself and its successors and assigns, agrees that it will not discriminate against any employee or applicant for employment because of race, color, creed, religion, sex, marital status, ancestry or national origin. 5.3 Remedies. In addition to any other rights or remedies that may be available, either party to this Agreement may institute a legal or equitable action to Cure, correct or remedy any default, to recover damages for any default or to obtain any other remedy consistent with the purposes of this Agreement. If either party defaults hereunder by failing to perform any of its obligations herein, each parry agrees that the other shall be entitled to the judicial remedy of specific performance, and each parry agrees (subject to its reserve right to contest whether in fact a default does exist) not to challenge or contest the appropriateness of such remedy. In this regard, Participant specifically acknowledges that Agency is entering into this Agreement for the purpose of assisting in the development of the Property and not for the purpose of enabling Participant to speculate with land. 5.4 No Waiver. Waiver by either parry of the performance of any covenant, condition or promise shall not invalidate this Agreement, nor shall it be considered a waiver of any other covenant, condition or promise. Waiver by either party of the time for performing any act shall not constitute a waiver of time for performing any other act or an identical act required to be performed at a later time. The delay or forbearance by either party in exercising any remedy or right as to any default shall not operate as a waiver of any other default or of any rights or remedies or to deprive such parry of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 5.5 Rights and Remedies are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by any parry of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by another parry. 627/014064-0012/3176258.6 a09/02/99 -13- 5.6 Attorneys' Fees. In the event of litigation between the parties arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys' fees and other costs and expenses incurred in addition to whatever other relief to which it may be entitled. 6. MISCELLANEOUS. 6.1 Governing Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. 6.2 Notices. Any notice which either party may desire to give to the other party must be in writing and shall be effective (i) when personally 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) twenty-four (24) hours 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 parties hereto: To Agency: Community Redevelopment Agency of the City of Palm Springs, California 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 Attn: Executive Director Copy to: Rutan & Tucker Costa Mesa, CA 92628-1950 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92626 Attn: David J. Aleshire, Esq. To Participant: Coachella Valley Housing Coalition 45701 Monroe Street, Suite G Indio, California 92201 Attn: Executive Director Either party may from time to time, by written notice to the others, designate a different address which shall be substituted for the one(s) above specified, and/or specify additional parties to be notified. 6.3 Conflicts of Interest. No member, official, or employee of Agency shall have any personal interest, direct or indirect, in this Agreement nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his personal interests or the interests of any corporation, partnership, or association in which he is, directly or indirectly, interested. 6.4 Nonliability of Agency Officials and Employees. No member, official, employee, or consultant of Agency or City shall be personally liable to Participant, or any 627/014084-0012/3176258.6 a09/02/99 , -14- s successor in interest of Participant, in the event of any default or breach by Agency or for any amount which may become due to Participant or to its successor, or on any obligations under the terms of this Agreement. 6.5 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto. 6.6 Merger of Prior Agreements and Understandings. This Agreement and all documents incorporated herein contain the entire understanding among the parties hereto relating to the transactions contemplated herein and all prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged herein and shall be of no further force or effect. 6.7 Assurances to Act in Good Faith. Agency and Participant agree to execute all documents and instruments and to take all action and shall use their best efforts to accomplish the purposes of this Agreement. Agency and Participant shall each diligently and in good faith pursue the satisfaction of any conditions or contingencies subject to their approval. 6.8 Severability. Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. If, however, any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. IN WITNESS WHEREOF the Agency and Participant have executed this Agreement as of the date first written above. "AGENCY" ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic � secretary G�. �- Executive Director APPROVED AS TO FORM: RUTAN & TUCKER APPROVED 2Y `Fi Nr- COMMUNITY REDEV, Ida Aleshire, Esq. l Agency Counsel 627/014084-0012/3176258.6 a09/02/99 -15- "PARTICIPANT"" COACHELLA VALLEY HOUSING COALITION, a CaliArrnia nonprofit corporation d I By: IS: E C TIVE DIRECTOR Bxs- Its: Board P sident r 627/014084-0012/3176258.6 a09/02/99 -16- • 0 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT'.Ss., ,`;.crn• ^ra%e<:n,��^.:�,r_o��r, a_F:ac�,�^�.:.n��.o��o .p . State of CaliforRa �I f County of +Je �a l� u Ss. it i� On , before me, C& ccl�_✓ Nu6r�6 `f3 Date _ Name and The of Officer(a g.,"Jane Doe.Nol�ry ublic') PI (I personally appeared �� r ea e�� It Namdu)of Slgner(e)J15 ersonally known to me 1 ❑ proved to me on the basis of satisfactory �i g� evidence k to be the person(s) whose name(s) is/areI subscribed to the within instrument and S.1i1i1i1i acknowledged to me that he/she/they executed j Ifr9 MAGDALENA H.SLATER the same in his/her/their authorized ,IIII _ Commission#Ila3985 capacity(ies), and that by his/her/theirs -ai - NotaryPublic-California >_ signature(s) on the instrument the person(s), or 'jj Riverside County the entity upon behalf of which the person(s MyCanm.ExpiesMay17,2'Jr Y p p ( ) , acted, executed the instrument. d, WITH SS my hand and official e� 3 < Place Notary Seal Above Signal ura c N Larydi (91 J i OPTIONAL 111,� Though the information below is not required by law,it may prove valuable to persons relying on the document � fiand could prevent fraudulent removal and reattachment of this form to another document. lj Description of Attached D ment I,(, Title or Type of Document: it rjLL- (0 f P�. ) j3 Document Date. Number of Pages: �•;I Signer(s) Other Than Named Above: Capacfty(ies) Claimed by Signer jl 4� Signer's Name: �I ❑ Individual f( Top of thumb here 4 ❑ Corporate Officer—Trtle(s): ) ❑ Partner—❑ Limited ❑ General �f ❑ Attorney in Fact ❑ Trustee j3 }� ❑ Guardian or Conservator? ❑ Other: Signer Is Representing: k ©1997 National Notary Association•9350 De Soto Ave,PO.Box 2402•Chatsworth,CA 91 313-24 02 Prod No 5907 Reorder.Call Tall-Free 1-800-876-6827 EXHIBIT "A" LEGAL DESCRIPTION OF THE PROPERTY The real property located in the City of Palm Springs, County of Riverside, State of California described as follows: ACQUIRED PARCELS: Lot 11 in Block B of Bel Desierto Tract as shown by map on file in Book 20, Page 43 of Maps, Records of Riverside County, California; Lot 12 in Block B of Bel Desierto, in the City of Palm Springs, as shown by map on file in Book 20, Page 43 of Maps, Records of Riverside County, California; and Lot 13 in Block B of Bel Desierto, in the City of Palm Springs, as shown by map on file in Book 20, Page 43 of Maps, Records of Riverside County, California. FOURTH PARCEL: Lot 10 in Block B of Bel Desierto, in the City of Palm Springs, as shown by map on file in Book 20, Page 43 of Maps, Records of Riverside County, California. 627/0140B4-0012/317625 6 a0 / 2 99 EXHIBIT "A" TW O'OKU PARTICIPATION AND LOAN AGREEMENT EXHIBIT "B" OUTLINE OF FUNDING SOURCES AND USES OF FUNDS 627/014084-0012/3176258.6 a00/2'J 99 EM131T "B" TO OWNER PARTICIPATION AND LOAN AGREEMENT COACHELLA VAL OUSING COALITION • CHUCKWALLA SEL ELP PROJECT PROJECT PROPOSAL: GROUP 1 (7 SELF-HELP HOMES) DATE: 09/20/99 5%INTEREST RATE MORTGAGES 3 Bedroom 7 Homes 7HOMES Use of Funds 3 BR/2BA TOTAL PER HOME 7HMMES Hard Costs(Inc.contingencies) $57,950 $405,650 $405,650 Lot Cost $21,000 $147,000 $147,000 Overhead&Super. $4,000 $28,000 $28,000 School Fees $2,800 $19,600 $19,600 Architectural&Engineering $7,000 $49,000 $49,000 City Permits/Other Fees $10,500 $73,500 $73,500 Interest Expense $2,500 $17,500 $17,500 Construction Loan:Fees/Points $1,500 $107500 $10,500 Closing/Escrow Costs $2,350 $16,450 $16,450 Total Construction Costs $109,600 $767,200 $767,200 Buyer Sweat Equity $3,400 $23,800 $23,800 Total $113,000 $791,000 $791,000 Technical Assistance $0 $0 Total Project Costs $791,000 $791,000 Sources of Funds RCAC/OTHER $57,430 $402,010 $402,010 HOME Funds $22,000 $154,000 $154,000 City RDA Funds $25,000 $175,000 $175,000 AHP Funds $8,570 $59,990 $59,990 Total $113,000 $791,000 $791,000 Total Project Costs $791,000 $791,000 PERMANENT FINANCING Permanent Mortgages $57,430 $402,010 $402,010 HOME Funds $22,000 $154,000 $154,000 AHP Funds $8,570 $59,990 $59,990 City RDA Funds $25,000 $175,000 $175,000 Sales Price(Appraisal) $113,000 $791,000 $791,000 NOTES: Mortgage Amount Based on: 47%Mod 50%Med Family Size 4 6 100%County Median Income $47200 $54800 Family Median Income $22184 $27400 Monthly Housing Costs(30%) $555 $685 Less Property Taxes $118 $118 Lesslnsurance $40 $40 Mortgage Insurance $47 $48 Buyer Repayment Ability $350 $479 Required Mortgage Payment $344 $408 Excess/ (Subsidy) $6 $71 Interest Rate 6.00% 6.00 Term 30 Years 30 Years Mortgage Amount $57,430 $68,000 EXHIBIT "C" DO NOT DESTROY THIS NOTE: When paid, this Note, with the Deed of Trust securing same, must be surrendered to Trustee for cancellation before reconveyance will be made. THIS NOTE PROVIDES FOR A BALLOON PAYMENT SECURED PROMISSORY NOTE $ .00 , 1999 Riverside County, California FOR VALUE RECEIVED, the undersigned, the COACHELLA VALLEY HOUSING COALITION, a California nonprofit corporation ("Maker"), does hereby promise to pay to THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic or order ("Holder"), at a place designated by Holder, the principal sum of AND 00/100 DOLLARS ($ .00), without interest except as provided below. If not sooner paid, Maker shall pay to Holder in lawful money of the United States, the entire unpaid principal balance and accrued interest, if any, hereunder on or before , 1999. This Note is secured by a Deed of Trust encumbering certain real property located in the County of Riverside, State of California, more particularly described therein ("Property"), and any other instruments, now or hereafter executed by Maker in favor of Holder, which in any manner constitute additional security for this Note ("Deed of Trust"). Any payments made by Maker in payment of this Note shall be applied first to the interest then accrued and due on the unpaid principal balance under this Note, and the remainder of each payment shall be applied to the reduction of the unpaid principal. Upon the failure to make payment of any payment due under this Note as and when the same become due and payable (whether by extension, acceleration or otherwise), or in event of default under the Deed of Trust or any breach of any other promise or obligation in this Note or in any other instrument now or hereafter securing the indebtedness evidenced hereby, then, and in any of such events, Holder may, at its option, declare this Note and the entire indebtedness hereby evidenced, including, without limitation, all accrued interest, to be immediately due and payable and collectible then or thereafter as Holder may elect, regardless of the date of maturity, and notice of the exercise of said option is hereby expressly waived by Maker. If this Note is not paid when due, whether at maturity or by acceleration, Maker promises to pay all costs of collection, including, but not limited to, attorneys' fees and all expenses incurred in connection with the protection or realization of the collateral securing the 627/014084-0012/3176258.1 a08/29 99 EXHIBIT "C" TO OQT E PARTICIPATION AND LOAN AGREEMENT payment hereof or enforcement of any guaranty, incurred by Holder on account of such collection, whether or not suit is filed hereon. Maker and all endorsers, guarantors and persons liable or to become liable on this Note waive presentment, protest and demand, notice of protest, demand and dishonor and nonpayment of this Note and any and all other notices or matters of a like nature, and consent to any and all renewals and extensions near the time of payment hereof and agree further that at any time and from time to time without notice, the terms of payment herein may be modified or the security described in any documents securing this Note released in whole or in part, or increased, changed or exchanged by agreement between Holder and any owner of the premises affected by said documents securing this Note, without in any way affecting the liability of any parry to this Note or any persons liable or to become liable with respect to any indebtedness evidenced hereby. Maker may, with the express written consent of Holder, enter into a subsequent grant lien and regulatory agreement to assign the loan to qualified buyers pursuant to the terms of the development agreement to be executed by Holder and Maker. In the event Maker shall, directly or indirectly, voluntarily, involuntarily or by operation of law, sell, assign, transfer, dispose of, hypothecate, further encumber, enter into option to sell or lease with option to sell or agree to sell, assign, transfer, dispose of, further encumber, enter into option to sell or lease with option to sell or suffer to exist any other lien against all or any portion of the Property, or any interest therein without Holder's express written consent thereto, then, or at any time thereafter, Holder, at its sole option and in its sole and absolute discretion, may, by written notice to Maker, declare all amounts due under this Note immediately due and payable, except to the extent that such acceleration and in such particular circumstances where exercise of such a right by Holder is prohibited by law. The provisions hereof shall prevail notwithstanding any contrary provisions in any other instrument which evidences the obligations hereby secured. In the event of any default or breach of this Note or the Deed of Trust, the entire principal remaining unpaid hereunder, shall automatically bear an annual interest rate equal to the lesser of ten percent (10%) per annum or maximum amount allowed by law. Notwithstanding anything to the contrary herein contained, (i) the liability of Maker shall be limited to its interest in the Property and any rents, issues, and profits arising the Property and, in addition, with respect to any obligation to hold and apply insurance proceeds, proceeds of condemnation or other monies hereunder, any such monies received by it to the extent not so applied in accordance with the terms of this Note; (ii) no other assets of Maker shall be affected by or subject to being applied to the satisfaction of any liability which Maker may have to Holder or to another person by reason of this Note; and (iii) any judgment, order, decree or other award in favor of Holder shall be collectible only out of, or enforceable in accordance with, the terms of this Note by termination or other extinguishment of Maker's interest in the Site. Notwithstanding the foregoing, it is expressly understood and agreed that the aforesaid limitation on liability shall in no way restrict or abridge Maker's continued personal liability for: (A) fraud or willful or grossly negligent misrepresentation made by Maker in connection with this Note or any of the Agency/City Agreements; (B) misapplication of (a) proceeds of insurance and condemnation or (b) rent received by Maker under rental agreements entered into for any portion EXHIBIT "C" ez i"iao"4-o" 2i3 ,6T0 OWNEf29PARTIcrPATION AND LOAN AGREEMENT of the Property; (C) the retention by Maker of all advance rentals and security deposits of tenants not refunded to or forfeited by such tenants; (D) the indemnification undertakings of Maker under the Owner Participation Agreement between Maker and Holder executed concurrently herewith; and (E) material waste by Maker with respect to the Property. The unenforceability or invalidity of any provision or provisions of this Note as to any persons or circumstances shall not render that provision or those provisions unenforceable or invalid as to any other provisions or circumstances, and all provisions hereof, in all other respects, shall remain valid and enforceable. Neither this Note nor any term hereof may be waived, amended, discharged, modified, changed or terminated orally; nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by Maker and Holder. No delay or omission on the part of Holder in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Note. Notwithstanding any provision in this Note or the Deed of Trust or other document securing same, the total liability for payment in the nature of interest shall not exceed the limit now imposed by applicable laws of the State of California. This Note has been executed and delivered by Maker in the State of California and is to be governed and construed in accordance with the laws thereof. IN WITNESS WHEREOF, Maker has executed this Note as of the date and year first above written. COACHELLA VALLEY HOUSING COALITION, a California nonprofit corporation By: Its: By: Its: "Maker" 627/014069-0012/3156250.6 a10/os se EXHIBIT "C" TO OWNER PARTICIPATION AND LOAN AGREEMENT EXHIBIT "D" Order No. Escrowflo. Loan No. FREE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Community 9edevelopmentA9ency of the City of Palm Sprinos,California 3200 E Ta0qu9z Canyon Way Palm SPFIU9s,CA 92263 Attn:Eyecudve Director SPACEABOVETHIS ONE FOR RECORDERS USE DEED OF TRUST (SHORT FORM) This DEED OF TRUST, made 1999, between COACHELLA VALLEY HOUSING COALITION, a California nonprofit public benefit corporation, herein called TRUSTOR, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called TRUSTEE, and the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,CALIFORNIA,a public body,corporate and politic,herein called BENEFICIARY, WITNESSETH: 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: [TO BE INSERTED] together with the 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 $ ", with interest thereon, according to the terms of a Promissory Note of even date herewith by Trustor to order of Beneficiary, and extensions or renewals thereof,• (21 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 successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in Orange County August 17, 1964, and in all other counties August 18, 1964, 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., 62 7/014 0 84-0 012/317625 8.6 a08/29 99 EXHIBIT "D" TO O)N E PARTICIPATION AND LOAN AGREEMENT COUNTY BOON PACE COOK* BOON PAGE COUNTY 300 PACE COUNTY BOON PACE Alameda 1188 556 Kings 958 713 Placer 1828 319 Sierra 38 lei Alpine 3 130-31 Lake 437 110 Plumas 166 1307 Slsklyou 506 762 Amodor 133 438 lessen 192 361 BwOrsttle 3718 347 Solana 1287 621 Butte 1330 513 LosAn➢alas T-387B 014 Sacramento 5039 124 Sonoma 2067 427 Calaveres 185 330 Madera 911 136 Saneaulln 300 405 S[anlslaus 1910 56 Boless 323 391 Morin IB49 122 San Bernardino 6213 fall Sunar 655 525 call"Basic 4684 1 Millions 90 453 San Francisco A-004 596 Teheran 457 183 Bol Nona 101 549 Mendocino 667 99 Sabloallula 2855 283 Trinity 100 595 EIOo"do 704 635 Merced 1660 153 Sao Luis Obispo 1311 137 Tulare 2530 log Fresno 5852 623 Maiden 191 93 San Mateo 4770 175 Tuolumne 177 160 Glenn 469 16 Mona fig 302 Seuta Barbara 2055 881 Venture 2601 231 Bamholdt 901 83 Monterey 351 239 Santa Clara 6626 664 Yale 769 16 Imperial line 101 Nape 104 742 Santa Cruz 1638 607 Yuba 398 693 live 165 672 Nevada 363 94 Shasta 800 533 Kern 3156 690 orange 7182 18 Sin Diego SERIES Book 1964,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 subdivisions A and B[identical in all counties,and printed on pages 3 and 4 hereofl 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 therefor does not exceed the maximum allowed by law. The undersigned Truster,requests that a Copy of any notice of default and any notice of sale hereunder he mailed to him at his address hereinbefore setforth. STATE OFCAIIFORN[A ] )as Signature of Trustor COUNTY OF ? On before me, COACHELLA VALLEY HOUSING COALITION, Personallyappeared a California nonprofit corporation personally known to me for proved m me on the basis BI sadsfactory evidence) to be the Persoa[sl whose name[s1 is/are subscribed to the within Instrument By: Bud Acknowledged tome that he/Sho/eley executed the same In his/her/their authorized capachyeesl, and that by hiS/her/thelr sivnamrefsl ➢n me instrument the permn[slor the enutyupen behalf Of which the IMIS9n[Slatted, Its: executed IRA lfiStmmenL WITNESS my hand and OUicial seal. By: Signature Its: [This area for Binclal nomrial seal[ 627/014084-0012/3176258 6 a10/05/99 (CONTINUED ON NEXT PAGE) 115811/94) Page 2 Of 4 BoxoreEooxB • The lollowbut Is a copyolSubdbdslonsit and B of the DCtlttous Deed of Trustrecomed in each county In California as stated In the foregoing Deed of Trust and Incorporated bymference In said Deed olTrustas being a parituereof as If setfoM at length therein. A Toproleclthe security of this Deed ofTrns4Tmstoragrees: it TO keep sold properly In good condition and repair,not to remove Or demolish any building[hereon;to COmP1Ole Or restore Promptly and in a good and workmanlike manner any building which may be constructed,damaged Or destroyed thereon and to may when due all Claims for labor performed and materials furnished therefor,to Comply with all laws offecdo➢sold property Or requiring ally alterations or Improvements to be made thereon;not to commit or Permit waste thereof;not to commit super or Permit any act upon said property In violation of law;to cuitfvale,Irrigate,fertilize,fumigate,prone and do all other acts which from me character or use of said property may he reasonably necessary,Me specific enumerations herein not excluding the general. 21 To provide,maintain and deliver to Beneficiary fire Insurance satisfactory to and with loss payable to Beneficlary. The amount collected under any tire or other Insurance policy may be applied by Beneficiary upon any Indebtedness secured hereby and In such order as Beneficiary may determine,or at the option of Beneficiary the entire amount so collected Or any part thereof may he released to Truster. Such application or release shall not cure or waive any default or notice of defauhbereunder orlhwalfdate amacidone pursuant to such notice. S) To appear In and defend any action or proceeding purporting to affect me security hereof or the rights Or powers or Beneficiary or Trustee;and 10 pay all costs and expenses,Including cost of evidence of rite and attorneys fees In a reasonable sum,in any such action or proceeding in which Beneficiary or Trustee may appear,and in any suitbrouBhlhy Beneficiary to foreclose this Deed. 41 To pay:at least ton days before delinquency all loxes and assessments affecting said property,Including assessments on appurtenant water stock;when due,all encumbrances,charges and Ifens,with Interest on said property or any part thereof,which appear to be prior or superior hereto;all costs,fees and expenses of this Trust Should Truster fail to make any payment or to do any act as herein provided then Beneficiary of Trustee,but without obligation so to do and without notice to or demand upon Truster and without releasing Truster from any obligation hereof,may;make or do the same is such manner and to such extent as either may deem necessary to protect the security hereof,Beneficiary or Trustee being authorized to enter upon said Property for such purposes;appear In and defend any action or Proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee;pay,purchase,contest or compromise any encumbrance,charge or lien which In the Judgment Of either appears to be prior or superior hereto;and In exercising any such Powers,pay necessary expenses,employ Counsel and pay his reasonablelees. 51 To pay Immediately and without demand all sums so expended by Beneficiary orTrustee,with interest from date of expenditure at the amount allowed by law In affect at Me date hereof,and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficlary got 10 exceed the maximum allowed by law at the time when said statement is demanded B. fffsmutuallyagreed. 11 That airy amid In connection wftu any condemnation lot public use of or injury to said properly or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply Or release such moneys received by him in the same manner and with We same effect as above provided for disposition Of proceeds of fire Or otherinsumnce. 21 That by accepting payment of any sum secured hereby after Us due date,Beneficiary does not waive his right efUler tO require prompt payment when due of all other sums so secured or to declare default for failure so to pay. 91 That at any time or from time to time,without tlability therefor and without notice,upon written request Of Beneficiary and Presentation Of lilts good and said note for endorsement,and without affecting the personal liability Of any person for payment of time indebtedness secured hereby,Trustee may:reCOgvey any part of said property;consent to the making of any map or plat thereof,Join In granting any easement thereon,or Join In any extension agreement or any agreement subordinating the lien or charge hereof. 41 That upon written request of Beneficiary staling that all sums secured hereby have been paid,and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee In its sole discretion may choose and upon payment of Us fees,Trustee shall recxmey,without warranty,the property then held hereunder. The recitals In such recomevance of any matters or facts shall be conclusive Proof of the truthfulness thereof. The Grantee In such reconvellance may he described as"We person or persons legally entitled Margin." 51 That as additional security,Truster hereby gives to and confers upon Beneficiary fie right Power and authority,during the continuance Of these Trusts,to collect the reins,Issues and profits of said property,mseryfnD unto Truster the right prior to any default by Truster In payment of any Indebtedness secured hereby or in Me performance of ama➢reemembemunder,lo collecland retain such rents Issues and profits astheli become due and payable.Upon any such default Beneficiary may It am time without notice,either In person,by agent or be a receiver to be appointed by a court and without regard to me adequacy of any security for the Indebtedness herokysecnmd enter upon and take possession of said property or any Partmereol,In his own name sue for or otherwise collect such rents,Issues,and profits,Including Those pas[due and upheld and apply the same,less Costs and expenses of operation and Collection,Including reasonable 2UomelW fees,upon any indebtedness secured hereby,and tu such order as Benefclary may determine.The entering upon and taking possession of said property,the eollat finD of such rents,issues and profits and the application thereof as aforesaid shall not cure or waive any default or notice of default hereunder or Imalidate any act done pursuant to such notice. 61 That upon default by Truster In payment of say Indebtedness secured hereby or In the performance of any agreement hereunder,Beneficiary may declare all sums secured hereby Immediately due and payable by delf rmy to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to he said said property,which notice Trustee shall cause to be filed for retard Beneficiary also shall deposit with Trustee this Deed,saitl note and all documents evidencing expenditures secured hereby. After the lapse of such rime as may then he required by law following the recordation of said notice of default and notice of sale having been Dhmn as men required by 18w,Tmstee.wltuoat demand on Trusmr,shall sell said property altue time and place Poled by it In said notice Of sale,either as 8 whole Or In separate parcels, and In such order as it may determine,at public auction to me highest bidder for cash In lawful money of me United state%Payable aldme of sale.Trustee may postpone sale Of all or any portion of sold property by public announcement at such time and place of sale,and from time to time thereafter may postpone such sale by public 8nnouncomemaltle time Poled byre preceding Postponement.Trustee shall deliver to such purchaser Its deed comeving Poe Properly so sold hutWIMOnt any covenant or warranty,express or Implied The recitals In such deed of any matters or facts shall be Conclusive proof of the truthfulness thereat Any person,Including Trestor, Trustee,orlieneffelaryas heminalterdefined,maypurohase Branch sale. After deducting all costs,fees and expenses of Trustee and of[his Trust Including cost of evidence of title In Connection with sale,Trustee shall apply the proceeds of sale to payment of:all sums expended under The terms hereof,nelmen repaid with accrued Interest at the amount allowed by law In effect atthe date hereof; aB other sums then secured herehr,andthe remainder,If any,to the person or persons legally entitled thereto. 11 Beneficiary,or any successor In ownership of any Indebtedness secured hereby,may from Ume to time,by Instrument In writing,substitute a successor or 627/014 0 64-0012/317625 8.6 a06/29/99 (CONTINUED ON NEXT PAGE) 115811/941 Page a o14 r successors to any Trustee named herein or acdng0nder,which Instrument executed by Ike Beneficiary ahl*acknowledged and recorded In the office of titre recorder or Ike county or counties whom said property is situated shall he conclusive proof of proper substitution i f such successor Trustee or Trustees,who shall, without conveyance hom the Trustee predecessor,succeed to all Ds title,estate,rights,powers and duties.Said Instrument must contain the name of the original Truster, Trustee and Beneficiary hereunder,the hook and page where Oils need Is recorded and the name and address of the newTrustee. Bl That this need applies to,Inures to the benefit of,and hinds all parties hereto,their heirs,legatees,devlsees,administrators,executors,successors and assigns.The[am Beneficiary shall mean the owner and holder,Including pledgees,of the note secured hereby,Whether or not named as Beneficiary herein.In this need, whenever the context so reutdret Ike masculine pander Includes the feminine and/or Holder,and the singular number Includes the plural 91 That Trustee accepts this Trust when this Deed,duly executed and acknowledged,Is made a Public record as provided by law. Trustee Is not obligated to nodly any party hereto of pending sale under any other Deed of Trust or of any action or proceeding In which Truster,Beneficiary or Trustee shall he a parry unless brought bvTrustee. 00 NOT RECORO REQUEST FOR Full RECONYEYANCE TO FIRST AMERICAN TITLE INSURANCE COMPANY,TRUSTEE: The undersigned Is the legal owner and holder aline note or notes and of all indebtedness secured by the foregoing Deed of Trust Said note or notes,together with all other Indebtedness secured by said Deed of Trust,have been fully paid and safisfied;and you are hereby requested and directed,on payment to you of any sums owing to you under the terms of said Deed of Trust,to cancel said note or notes above mentioned,an all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith,together with The said Deed of Trust and to reconvev,without warranty,to the parties designated by the terms of said Deed of Trust,all the estate now held by you under the same. Dated Please mail Deed of Trust Note and Recom eyance to Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be delivered to the Trustee for cancellation before reconveyance will be made. 115811/941 627/014064-0012/3176256.6 .08/27/99 Page4ol4 DEED OF TRUST WITH POWER OF SALE First American Title Insurance Company TRUSTEE 627/014084-0012/3176256.6 a08/29/99 11501//941 Page 5 014 0 EXHIBIT "E" 0 CERTIFIED COPY OF CORPORATE RESOLUTIONS TO ENTER OWNER PARTICIPATION AGREEMENT AND EXECUTE NOTE AND DEED OF TRUST The undersigned, as Secretary of the COACHELLA VALLEY HOUSING COALITION, a California nonprofit corporation existing under the laws of California, hereby certifies that at a meeting of the Board of Directors of said corporation, duly called and held on the _ day of 1999, at which meeting a quorum of Members was present and acting throughout, the following resolutions were duly adopted by the unanimous vote of all the Members present, and the same have not since been rescinded or modified, and are presently in full force and effect: WHEREAS, this corporation desires to enter into an Owner Participation Agreement (the "Agreement") providing for a loan of funds ("Loan") by THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA,a public body, corporate and politic ("Agency"), in the amount of THREE HUNDRED THREE THOUSAND AND 00/100 DOLLARS ($ 303,000.00) for the purpose of acquiring real property located in the County of Riverside, State of California. WHEREAS, this corporation desires to enter into a promissory note ("Note") and deed of trust ("Deed of Trust")in connection with the Loan by Agency. NOW, THEREFORE, BE IT RESOLVED, that any officer or the Executive Director, acting alone, is authorized on behalf of and in the name of this corporation, to enter into the Agreement and all documents incorporated therein by reference upon such terms as such officer may agree upon in his discretion. RESOLVED FURTHER, that any officer or the Executive Director of this corporation, acting alone, is authorized to execute the Note for the repayment of the Loan in the event of a default, a Deed of Trust and any other security agreements securing the Note, and such other instruments or documents as such officer or officers in their discretion may deem necessary or desirable. RESOLVED FURTHER, that this corporation ratifies the actions previously taken by the officers of this corporation or any one of them acting alone, in connection with the Agreement, actions taken to comply with such requirements, and all other actions taken incidental thereto. RESOLVED FURTHER, that the authority conferred upon the aforesaid officers by this resolution shall remain in full force and effect until written notice of revocation by further resolution of the Board of Directors shall have been received by Agency, and that a copy of this resolution certified by the Secretary be delivered to Agency. The undersigned further certifies that the officers of this corporation hereunder set forth have been duly elected and hold the offices set forth next to their names with this corporation: 627/014064-0012/3176258 6 a1a/05 EXHIBIT"Ell Ib OWNER PARTICIPATION AND LOAN AGREEMENT Name Board Position IN WITNESS WHEREOF, this certification has been signed 'on behalf of this corporation by its Secretary thereunto duly authorized as of this _ day of 1999. Secretary 620/014084-0012/3196258.6 a30/05/99 _2 OF PALM S h -2 City of Palm Springs Office of the City Clerk 'Alt 3200 Tah lu rz Canyon Way• Palm Sprmgs,California 92262 TEL:(760)323-8204 •TDD:(760)864-9527 November 1, 1999 Coachella Valley Housing Coalition 45701 Monroe Street, Suite G Indio, CA 92201 Attn: Executive Director Attached is one executed copy of the Owner Participation Agreement regarding acquisition of real property located on Avenida Caballeros and Cottonwood, between Coachella Valley Housing Coalition and the Community Redevelopment Agency of the City of Palm Springs, approved by the City Council on September 1, 1999, by Resolution No. 1078. Agreement#394C. Certificates of Insurance should be provided, naming the City of Palm Springs as an additional insured, for General Liability for $1,000,000 CSL; and Worker Compensation in California Statutory requirements. Further, the cancellation clause shall state as follows: Should any of the above-described policies be canceled before the expiration date thereof, the issuing company will mail 30 days written notice to the certificate holder named to the left. Should you have any questions, please let me know. Sincerely, n EVELY C. CLARK, CMC Assistant City Clerk cc: Community Redevelopment Agency w/agreement Finance w/agreement Post Office Box 2743 • Palm Springs, California 92263-2743 A CORD N DATE(MM/DO/YY) CERTIFICATE OF LIABILITY INSURANCE 10/22/1999 PRODUCER 503-227-0491 GALES CREEK INSURANCE SERVICES, INC. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 800 NW 6TH AVENUE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR SUITE 335 .---;�_ ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. PORTLAND, OR 97209 'JUw 5lti'- INSURERS AFFORDING COVERAGE INsuRED („ INSURERA CALIBER ONE INDEMNITY COMPANY IES COACHELLA VALLEY HOUSING U CO,•INSURER B: \ 45-701 MONROE STREET ,SUITE G _C_I 1, D / INSURERC L INDIO, CA 92201 \ 7—! INSURER D. �Y�1�(�e�• INSURER E. � / COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. �LTR TYPE OF INSURANCE POLICYNUMBER DATE MWD /OCYY DATE MMIDD/YY LIMITS GENERAL LIABILITY EACH OCCURRENCE $ 3,000,000 A X COMMERCIAL GENERAL LIABILITY CG0001266-01 10/18/99 10/18/00 FIREDAMAGE(Anyonefire) $ 50,000 CLAIMS MADE OCCUR MED EXP(Anyone person) $ 5,000 PERSONAL&ADV INJURY S 3,000,000 GENERAL AGGREGATE $ 3,000,000 r7POUCY GREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OP AGG $ 3,000,000 PRO- JECT LOC AUTOMOBILE LIABILITY CMINEDA ANY AUTO CGO 01266-01 10/18/99 10/18/00 (Ee arcd..t)INGLE LIMIT $ 1 000 000 ALL OWNED AUTOS ILY SCHEDULED AUTOS (Per pomon)URV $ X HIRED AUTOS X NON-OWNED AUTOS BODILY INJURY (Peraccdent) $ PROPERTY DAMAGE $ Feraccident) GAR AGE LIABILITY AUTO ONLV-EAACCIDENT $ ANYAUTO OTHER THAN EA ACC $ AUTO ONLY AGG $ EXCESS LIABILITY EACH OCCURRENCE $ OCCUR CLAIMS MADE AGGREGATE $ DEDUCTIBLE RETENTION 5 _ WORKERS COMPENSATION AND TORV LIMITS ER EMPLOYERS'LIABILITY E L EACH ACCIDENT $ E.L DISEASE-EA EMPLOYEE $ OTHER E.L.DISEASE-POLICY LIMIT $ DESCRIPTION OF OPERATIONS/LOCATIONSIVEHICLES/EXCLUSIONS ADDED BY ENDORSEMENTISPECIAL PROVISIONS THE CERTIFICATE HOLDER IS AN ADDITIONAL INSURED. CERTIFICATE HOLDER X I ADDITIONAL INSURED;INSURER LETTER: _ CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION CITY OF PALM SPRINGS DATE THEREOF,THE ISSUING INSURER WILL)9IYfUVv0X)f9�M�[A,yILy)3�/0��yDAYS WRITTEN OFFICE OF THE CITY CLERK NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT/6¢IWAILUI( XKY"&YX PO BOX 2743 ��` �X� *+� �1'+� �DY+YcNFXYsYdfxX`Y.v`CAIYT %6X PALM SPRINGS, CA 92263-2743 )�MM"XMCXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX AUTHORIZED REPRESENTATIVE 0 ---- - -- - --------- ACORD CERTIFICATE 0 LIABILITY INSURANCE 0 GATE(MWDDM) 10/15/1999 Paocueea THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Johnston Insurance Agency NLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 9 Y Inc.. HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 69-035 Dinah Shore Drive ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Cathedral City, CA 92234 INSURERS AFFORDING COVERAGE 760-328-3106 INSURED COACHELLA VALLEY HOUSING COALITIO INSURERA. MID-CENTURY INSURANCE COMPANY INSURER B 45701 MONROE STREET, STE. G INSURER INDIO, CA 92201 INSURER —1 INSURER E COVERAGESTHE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS INSR POLIGY-EF.EECTIVE POLICY URINATION LT-R„- TYPE OF INSURANCE POLICY NUMBER .DATE�MMI0'm DATE IMMIDDIYYI _ LIMITS T ra_!'6j GENERAL LIABILITY ryf `r'y(}` Ll� EACH OCCURRENCE 'e COMMERCIAL GENERAL LIABILITYr FIRE DAMAGE(Any one fire) $ CLAIMS MADEOCCUR J-a T ° MED UP(Any one person) S f; PERSONAL&ADV INJURY S GENERAL AGGREGATE S GEHL AGGREGATE LIMIT APPLIES PER "T'�p ��6 PRODUCTS COMP/OP AGG 5 PRO- POLICY JECT FLOC AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ ANY AUTO (Ea accident) $ ALL OWNED AUTOS BODILY INJURY SCHEDULEDAUTOS (Per person) $ HIREDAUTOS BODILY INJURY $ NON OWNEDAUTOS (Peracmdent) PROPERTY DAMAGE $ (Per accident) GARAGE LIABILITY — — - AUTO ONLY-EA ACCIDENT $ ANY AUTO EA ACC $ OTHER THAN AUTO ONLY. -- AGG S EXCESS LIABILITY EACH OCCURRENCE $ OCCUR CLAIMS MADE AGGREGATE $ $ DEDUCTIBLE $ RETENTION $ $ WORKERS COMPENSATION AND - s�-mac "NTH-- X WC STATU- OTH- TORVLIMITS ER EMPLOYERS'LIABILITY _ B2007-43-70_ _- _ 10/10/99 I0/10/00-- E.L.EACNACCIDRNT 00-2, OQO. C EL DISEASE-EA EMPLOYEE 51, 00�, 000. EL DISEASE-POLICY LIMIT $1, 000, 000. r OTHER .,.......,.......�� ,e..n....,....w.�. �,.....tiw.......,� _�.<. DESCRIPTION OF OPERATIONSILOCATIONSNEHICLES/EXCLUSIONS ADDED BY ENDORSEMENTISPECIAL PROVISIONS CERTIFICATE HOLDER ADDITIONAL INSURED; INSURER LETTER: CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION CITY CLERK, CITY OF PALM SPRINGS DATE THEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL 10 DAYS WRITTEN P.O. BOX 2743 NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,BUT FAILURE TO DO SO SHALL PALM SPRINGS, CA 922 63-2743 IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER,ITS AGENTS OR REPRESENTATIVES. T O{tIZ O REPRES T TNE, � ''y`p�F ACORD 25S(7197) ----- - - ----- - -- � t l y --- aIr AC RD CORPORATION 1988� WAllstate. 6039(yC, Page 1of2 Allstate Mortgage Relations Curter PO Box 660649 Dallas Tx 75266-0649 1611111111111111111111111111'11111111111111111111111115111111111 COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS 3200T E TAHQUITZ WAY PALM SPRINGS CA 92262-6959 Allstate Insurance Company Mortgagee Dec Summary Insured and Poli Information Mortgagee Relations Center (972)915-5254 Loan Number: 5312870 Insured Name: Adan Sahagun,lulia Sahagun Insured Mailing Address: 970 Chuckwalla St Palm Springs CA 92264 Property Address: 970 Chuckwalla St Palm Springs CA 92264 Policy Effective Date: 02/20/2023 Policy Expiration Date: 02/20/2024 Document Produced: 12/30/2022 Renewal Payor Type: Mortgagee Annual Premium: $1,018.00 Policy Number: 904 642 245 (please refer to policy number in future) Control Number: 000080304925273 Policy Type: Deluxe Homeowners Coverage Limits of Liability Applicable Deductible(s) Dwelling Protection - with Building $340,035 • $500 Wildfire Structure Reimbursement Extended Limits • $500 All other perils Other Structures Protection $34,004 • $500 Wildfire • $500 All other perils Building Codes $34,004 documents • Deluxe Homeowners Policy - AP2 • Lender's Loss Payable Endorsement - AU319 • Amendment of Policy Provisions - AP425 • California Standard Fire Policy Provisions - AP1862-2 • Marijuana Amendatory Endorsement - AVP504 RECEIVED JAN 10 2023 • California Paperless Disclosure - AU14943 • California Deluxe Homeowners Amendatory Endorsement - AP4482-4 • Building Structure Reimbursement Extended Limits Endorsement - AP445 • Wildfire Deductible Endorsement - AP4886 • California Workers' Compensation And Employers' Liability Coverage For Residence Employees Coverage Form - AP1127 City Hall rev "+ Reception Desk Page 2 of 2 Mortgagee Relations Center (972)915-5254 Mortgagee(s) First: CALIFORNIA HOUSING FINANCE AGENCY ITS SUCCESSORS &/OR ASSIGNS P 0 Box 961292, Fort Worth, TX 76161-0292 Second: BANK OF AMERICA NA ITS SCRS &/OR ASSIGNS ATIMA P 0 Box 961291, Fort Worth, TX 76161-0291 Third: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS 3200 T Tahquitz Cay, Palm Springs, CA 92262-6959 Message(s) ► Do not pay. Mortgagee has been billed. Office Use Space Mortgagee Short Code #