HomeMy WebLinkAbout0225C - COACHELLA VALLEY HOUSING COALITION - SECTION 10 CV Housing Coalition (CVHC)
Agr to Imple Sec 10 of A171
On-Going Affordability
AGREEMENT #225
Res. 649, 10-4-89
AGREEMENT
THIS AGREEMENT is entered into this day of
/may [ti/ 1 8, by and between the COMMUNITY REDE-
VELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public
body, corporate and politic (the "Agency") , and the
COACHELLA VALLEY HOUSING COALITION, a California non-profit
corporation (the "Coalition" ) .
RECITALS
A. The Agency and the Coalition entered into an
Agreement, dated Sentember 2 , 1987 ( the "Program Agree-
ment") , providing for the development by the Coalition of a
self-help housing program (the "Self-Help Housing Program")
within the City of Palm Springs (the "City" ) with certain
financial assistance by the Agency in order to provide an
increased supply of low and moderate income housing within
the City.
B. Pursuant to Section 10 of the Program Agreement,
prior to final approval by the Agency of the use of
additional funding described in Section 6 thereof by the
Coalition, the Agency and the Coalition shall jointly
develop and agree to provisions to ensure the ongoing
affordability of the housing developed under the Self-Help
Housing Program.
AGREEMENTS
NOW, THEREFORE, THE AGENCY AND THE COALITION AGREE AS
FOLLOWS :
1 . The "Covenants Respecting Ongoing Affordability, "
attached hereto as Exhibit A and incorporated herein by
reference, shall be applicable to all housing developed as
part of the Self-Help Housing Program pursuant to the
Program Agreement .
2. No real property designated for development as
part of the Self-Help Housing Program pursuant to the
Program Agreement shall be sold or conveyed except by grant
deed containing the provisions set forth in the Covenants
Respecting Ongoing Affordability.
3 : ' - The Coalition shall be responsible for implement-
ing the requirements of this Agreement, and shall provide
the Agency with recorder' s endorsed copies of all grant
deeds conveying real property subject to this Agreement .
4 . This Agreement implements Section 10 of the
Program Agreement.
IN WITNESS WHEREOF, the Agency and the Coalition have
executed this Agreement as of the date first above written
which shall be the date this Agreement was approved for
execution by the Agency.
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS
' -
By �w1�21-Vz-a,
Chair an
ATTES'Tj///,// /
Secretary
COACHELLA VALLEY HOUSING
COALITION
/ ity Alrorne}+
Oate
By
P-zes dent:
ATTES .
Secretary
2072r :NM
-2-
. 042288
F-KHIBIT "A"
COVENANTS RESPECT.NG ONGOING AFFORDABILITY
A. Use of the Premises
The Grantee, by and for himself or herself and any
successors in interest, hereby covenants and agrees that
for a period of thirty (30) years from the date of recorda-
tion of this grant deed the real property conveyed hereby
and any improvements thereon (the "Premises" ) shall be used
solely for occupancy by persons and families of low and
moderate income (herein "Eligible Households" ) . As used
herein, the term "persons and families of low and moderate
income" shall mean persons and families whose income does
not exceed 120 percent of area median income (as annually
estimated by the U. S. Department of Housing and Urban
Development) , adjusted for family size in accordance with
adjustment fac:ers adopted and amended from time to time by
the U.S . Department of Housing and Urban Development pursu-
ant to Section 8 of the National Housing Act of 1937 . The
foregoing covenant shall ran with the land .
a . Obligation to Refrain From Discrimination
The Grantee, by and for himself or herself and any
successors in interest, covenants and agrees that there
shall be no discrimination against or segregation of any
person or group of persons on account of race, color,
creed, religion, sex, marital status , ancestry or national
origin in the sale, lease, sublease, transfer, use, occu-
pancy, tenure or enjoyment of the Premises , nor shall the
Grantee himself or herself or any person claiming under or
through him or her establish or permit any such practice or
practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of
tenants , lessees , subtenants , sublessees of vendees of the
Premises . The foregoing covenants shall run with the land
and shall remain in effect in perpetuity.
C. Form of Nondiscrimination and Nonsecregation Clauses
The Grantee shall refrain from restricting the rental,
sale or lease of the Premises on the basis of race, color,
creed, religion, sex, marital status , ancestry or national
origin of any person. All such deeds , leases or contracts
shall contain or be subject to substantially the following
nondiscrimination or nonsegregation clauses :
1. In deeds : "The grantee herein covenants by and
for himself or herself, his or her heirs , execu-
tors , 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, creed , religion, sex, marital
status , national origin or ancestry in the sale,
lease, sublease, transfer, use, occupancy, tenure
or enjoyment of the premises herein conveyed, nor
shall the grantee himself or herself , or any per-
son claiming under or through him or her, estab-
lish or permit any such practice or practices of
discrimination or segregation with reference to
the selection, location, number, use or occupancy
of 'tenants , lessees , subtenants , sublessees or
vendees in the premises herein conveyed. The
foregoing covenants shall run with the land. "
2. In leases : "The lessee herein covenants by and
for himself or herself , his or her heirs ,
executors , administrators and assigns , and all
persons claiming under or through him or her, and
this lease is made and accepted upon and subject
to the following conditions :
"That there shall be no discrimination against or
segregation of any person or group of persons on
account of race, color, creed, religion, sex,
marital status , national origin or ancestry, in
the leasing, subleasing, transferring, use, occu-
pancy, tenure or enjoyment of the premises herein
leased, nor shall the lessee himself or herself,
or any person claiming under or through him or
her , establish or permit any such practice or
practices of discrimination or segregation with
reference to the selection, location, number, use
or occupancy of tenants , lessees , subtenants,
sublessees or vendees in the premises herein
leased. "
3 . In contracts : "There shall be no discrimination
against or segregation of any person or group of
persons on account of race, color, creed, reli-
gion, sea, marital status , national origin or
ancestry in the sale, lease, sublease, transfer,
use, occupancy, tenure or enjoyment of the
premises , nor shall the transferee himself or
herself , or any person claiming under or through
him or her, establish or permit any such practice
or practices of discrimination or segregation
with reference to the selection, location,
number , use or occupancy of tenants , lessees,
subtenants , sublessees or vendees of the land. "
D . Rights of Acencv
As used in this grant deed, "Agency" means and refers
to the Community Redevelopment Agency of the City of Palm
Springs , a public body, corporate and politic , and shall
include any assignee of or successor to its rights , powers
and responsibilities .
The Grantee, by and for himself or herself and any
successors in interest, covenants and agrees that for the
period of time specified in Section A hereof there shall be
no sale, lease, rental or other transfer of the Premises
except after written notice thereof given to the Agency at
least sixty ( 60 ) days prior thereto , which notice shall
specify the terms and conditions of the proposed transfer,
the identity of the proacsed transferee and whether such
proposed transferee is an Eligible Household . ANY SALE,
LEASE, RENTAL OR OTHER TRANSFER OF THE PREMISES IN VIOLA-
TION OF THIS COVENANT SHALL BE VOID . In the event of a
sale of the Premises to a person or entity other than an
Eligible Household, the Agency shall be entitled to demand
immediate reimbursement from the Grantee or his or her
successor in interest ( the "Seller" ) , from and only to the
extent of the "proceeds of the sale" ( as defined below) , of
an amount calculated as the sum of the following:
(1) The amount of $ , which amount
represents the financial investment of the Agency
toward the development of and ownership
opportunity created in the Premises ; and
(2) An amount equal to _ percent (_%) of the
" appreciated value of the Premises" (as defined
below) , which amount represents a return on the
investment of the Agency identified in (1) ,
above, in the same proportion that its investment
bore to the value of the Premises at the time of
original purchase by and conveyance to the
Grantee.
The term "proceeds of the sale" shall mean the value
of any and all consideration, however denominated, received
or to be received by the Seller from the sale of the
Premises after the payment of all mortgage or deed of trust
debt.
The "appreciated value of the Premises' shall mean the
difference between ( 1) the purchase price paid by the Seller
-3-
for the Premises and (2) the value of any and all considera-
tion, however denominated, received or to be received by
the Seller from the sale of the Premises ; provided,
however, that the "appreciated value of the Premises' shall
be reduced by any amount determined to represent the amount
by which any substantial structural or permanent fixed
improvement ( the cost of which was paid by the Seller and
was not a part of the purchase price paid by the Seller for
the Premises) has contributed to the value of the Premises
at the time of sale ( "Improvements Value") . The
Improvements Value may either be agreed upon between the
Agency and the Seller or, if they cannot agree, shall be
established by appraisal .
The following transfers of title or any interest
therein are not subject to this Section D: transfer by
gift , devise or inheritance to Seller ' s spouse or issue;
taking of title by surviving joint tenant; transfer of
title to spouse as part of divorce or dissolution proceed-
ings ; acquisition of title or interest therein in conjunc-
tion with marriage; or taking of title by foreclosure or
deed in lieu of foreclosure.
The Agency' s right to demand reimbursement as provided
for in this Section D shall be exercised within one hundred
twenty ( 120 ) days from the later to occur of (1) the close
of escrow for such sale or (2) receipt by the Agency of
written notice of such proposed sale as provided in this
Section D, or shall be deemed to have expired, but only as
to such sale.
E. Effect of Covenants
The Agency shall be deemed the beneficiary of the
covenants running with the land contained herein for and in
its own rights and for the purposes of protecting the
interest of the community and other parties, public or pri-
vate, in whose favor and for whose benefit the covenants
running with the land have been provided. Such covenants
shall run in favor of the Agency for the entire period dur-
ing which such covenants shall be in force and effect,
without regard to whether the Agency has been or is an
owner of the Premises or any interest therein. The Agency,
in the event of any breach of any such covenants , shall
have the right to exercise any and all rights and remedies
and to maintain any actions at law or suits in equity or
other proper proceedings to encore the curing of such
breach.
No violation or breach of such covenants shall defeat
or render invalid or otherwise impair the lien or charge of
any mortgage , deed of trust or other financing or security
-4-
instrument entered into with respect to the Premises;
provided, however, that in the event ownership of the
Premises has vested in the holder of any mortgage, deed of
trust or other security interest creating a lien or encum-
brance on the Premises , the Agency, if it so desires , shall
be entitled to a conveyance of the Premises from such
holder upon payment to the holder of an amount equal to the
sum of the following :
1. The unpaid mortgage, deed of trust or other
security interest debt at the time title became vested in
the holder ( less all appropriate credits , including those
resulting from collection and application of rentals and
other income received during foreclosure proceedings) ;
2 . All expenses with respect to foreclosure;
3 . The net expenses , if any (exclusive of general
overhead) , incurred by the holder as a direct result of the
subsequent :management of the Premises; and
4 . An amount ecuivalent to the interest that would
have accrued on the aggregate of such amounts had all such
amounts become part of the mortgage or deed of trust debt
and such debt had continued in existence to the date of
payment by the Agency.
F. Notices
Notices required to be sent to the Agency hereunder
shall be sent by certified mail, return receipt requested,
to the following address :
Executive Director
Community Redevelopment Agency
of the City of Palm Springs
P .O . Box 1786
Palm Springs , CA 92263-1786
THE GRANTEE HEREBY SPECIFICALLY ACZNOWLEDGES AND
AGREES TO BE BOUND BY THE COVENANTS RESPECTING ONGOING
AFFORDABILITY CONTAINED HEREIN.
By
Grantee
2071r/NM
-5-
CHICAGO TILE
625 CARNEGIE DR., SUITE 100, SAN BERNARDINO, CA 92408 (714) 884-0448/1-800-722-0824
i
August 22, 1989
Coachella Valley Housing Coalition
73280 Hwy. 111, Ste. 107
Palm Desert, CA 92260
RE: 8920010-25
Dear Customer:
Enclosed please find our standard Revolving Indemnity
Agreement, in duplicate, for your signature. Proper
Execution and approval of the Indemnity Agreement will
allow Chicago Title Insurance Company to issue its policy
' of Title Insurance or Indorsement prior to expiration of
the lien period. Please sign the original as indicated
and return it to my attention. The extra copy is for
your records .
Also, please provide us with a copy of your most recent
financial statement. Your attention is directed to the
fact that approval of the Indemnity Agreement is not
automatic; but requires review of the financial
statement and other pertinent facts.
The Indemnity Agreement is a credit underwriting instrument,
and therefore, requires the appropriate consideration as
A business reply envelope is enclosed for your K
convenience .
Very truly yours ,
CHICAGO TITLE INSURANCE
i
�1 1
Deniseewride - - Title Officer
MC:
Enc.
Date wugust 22, 1989
Number
INDEMNITY
THIS INDEMNITY IS EXECUTED BY: COACHELLA VALLEY HOUSING COALITION,
A CALIFORNIA CORPORATION
("Indemnitor")
with reference to the following facts:
(a) Certain works of improvement have been or will be commenced upon the land
as described in Exhibit A attached hereto and incorporated herein, hereinafter
called "the Land".
(b) Indemnitor -has an interest in--the -land, and/or the works of improvement
thereon, or thereon to be constructed, as owner, contractor, shareholder of owner
or contractor, or otherwise, and desires that CHICAGO TITLE INSURANCE COMPANY
("Title Company") issue its policies of title insurance without mechanic's lien
exclusions insuring marketability of title and/or priority of encumbrances upon
the terms and conditions hereinafter set forth.
NOW, THEREFORE, Indemnitor agrees as follows:
1. COVENANTS
1.1 Indemnitor will hold harmless, protect and indemnify Title Company
from and against any and all liabilities, losses, damages, expenses and charges
including attorney's fees and expenses of litigation, which Title Company may sus-
tain under any policy of insurance respecting the land resulting directly or
indirectly from any mechanic's lien, or claim thereof, or which Title Company may
sustain in the enforcement of this Agreement .
1.1.1 Indemnitor will pay, or cause to be paid, all bills, charges
or expenses of any works of improvement on the land and promises to file
or cause to be filed proper Notices of Completion within the time (a)
prescribed by law for the earliest possible termination of the time (s)
for filing claims of lien.
1.1.2 If a claim of lien affecting the land for which a title policy
has been issued in reliance on this Agreement is filed, a priority lien
established, or an action to foreclose a priority lien commenced, Indemni-
tor will within 20 days after the first occurring event above-mentioned
cause such lien to be released of record and/or such action to be dismissed
with prejudice, or in lieu thereof will obtain a statutory lien bond and, if
appropriate, record same in the office of the county recorder in which the
land is situated.
1.1.3 If Indemnitor fails in its obligations under subparagraph 1. 1.2
above, Title Company may, but is not obligated to, do anything reasonable,
convenient or necessary to remove said lien of record, obtain a satisfaction
of judgment, prevent foreclosure, or otherwise protect its insured and
itself. Indemnitor hereby names, constitutes and appoints Title Company its
attorney in fact to do all things necessary and convenient to carry out the
provisions of this subparagraph. Indemnitor will reimburse Title Company
for all amounts expended hereunder, which amounts will be due and payable
without demand when expended, and shall bear interest at the rate of 10% per
annum from the time expended.
1-A-19
• -2-
1.2 Title Company is hereby granted the right, at any time or from time
to time, to examine the book, accounts and ',records of Indemnitor, pertaining to
any works of improvement upon the land, andllndemnitor will, upon request, promptly
furnish Title Company with copies of all. receipted bills or other evidence of
payment or set off for works of improvementlupon the land and such other and
further assurances and/or security as may be reasonably requested by Title Company
for its protection from liability.
1.3 Title Company is hereby granted the right to rely upon this whether
or not indemnitor is the person ordering the same, regardless of any change in own-
ership, title or interest in the land or the works of improvement thereon, or of
any change of Indemnitor 's interest therein: Said right shall extend to subsequent
policies issued with respect to the land. However, nothing contained herein shall
be construed so as to obligate Company to issue any policies of title insurance in
the form above desired, but, should Company issue any such policies of title insur-
ance it will do so in reliance upon the undertakings of the undersigned hereunder
and in consideration thereof.
2. ADDITIONAL PROVISIONS
2.1 As used herein the term "land" includes any part, parcel, or subdiv-
ision of the described real property and any part, parcel or subdivision of the
legal or equitable interest in said real property.
2.2 As used herein the terms "Works of Improvement", "Mechanic's Lien"
and "Claim of Lien" shall be deemed to refer to the applicable statutes of the state
in which the land is situated that enable mechanics, materialmen, artisans, and
laborers to have a lien and/or enforce such, against the land and any improvements
constructed thereon for the value of labor bestowed thereon and/or materials fur-
nished thereto.
2.3 The term "policy of title insurance" includes such policies as are
customarily issued by title companies insuring priority of liens, and marketability
of title, and all endorsements thereon. The term also includes other documents and
reports customarily issued by title companies concerning the state of title, owner-
ship, or interest in real property.
2.4 Indemnitor may request the extension of this agreement to include
within the term "land" other real property by executing and delivering to Title
Company additional Exhibit A's for attachment hereto and incorporation herein.
2.5 Whenever the context so requires, the singular includes the plural;
the masculine, the feminine or neuter.
2.6 If more than one person signs 'this AgreemenL as Indemnitor, the
obligation hereunder shall be joint and several,
INDEMNITOR EXECUTES THIS AGREEMENT BECAUSE IOF THE BENEFITS DIRECTLY AND INDIRECTLY
ACCRUING TO HIM BY REASON OF THE ISSUANCE OF SAID POLICIES.
DATE: !/— xq
i
PRESI��
SECRETARY:
1-A-20
EXHIBIT A
REQUEST TO INCLUDE LAND
UNDER INDEMNITY
TO: CHICAGO TITLE INSURANCE COMPANY DATE August 22, 1989
RE: TITLE ORDER NO. 8920010-25 COUNTY Riverside
INDEMNITY NO. DATED
The undersigned agrees to include the following described land under the terms of
the above-referenced Indemnity by and between the undersigned and Chicago Title
Insurance Company.
The land requested to be included is described as follows:
Lots 163, 168, 179, 190, 191, 196, 197, 258, 270, and 272 of Desert Highland
Estates, as per riaps recorded in Book 24, Pages 53 and 54 of Maps in the
offices of the County Recorder in said County.
Excepting any interest in oil, gas, and mineral rights previously reserved.
It is the intent of the undersigned, upon which you may rely, that the land des-
cribed herein be included within the terms of the above-referenced Indemnity as
though originally set forth therein.
You are hereby authorized to do all things which you would ordinarily do in
reliance on said Indemnity as if said land had been specifically described therein.
PRESIDENT: SECRETA Y:�
1-B-15