HomeMy WebLinkAbout5/15/2002 - STAFF REPORTS (4) DATE: MAY 15, 2002
TO: COMMUNITY REDEVELOPMENT AGENCY
FROM: DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT
APPROVAL OF A SUBORDINATION AGREEMENT WITH THE LOCAL INITIATIVES
SUPPORT CORPORATION ("LISC") IN CONNECTION WITH A LOAN TO THE
COACHELLA VALLEY HOUSING COALITION FOR NINE AFFORDABLE HOUSES IN
PALM SPRINGS
RECOMMENDATION:
It is recommended that the Agency approve a Subordination Agreement with the
Local Initiatives Support Corporation ("LISC") relative to the financing of a
construction loan to the Coachella Valley Housing Coalition for the development
of nine (9) single family affordable houses in Project Area #1 (formerly#913), in
the Cottonwood/Chuckwalla neighborhood.
BACKGROUND:
As a part of the City's Recapture Our Neighborhoods program, staff has worked
with the Coachella Valley Housing Coalition on the revitalization of the
Cottonwood/Chuckwalla neighborhood. This project consists of the
development of 4 lots subdivided into nine single family lots and is currently
under construction.
On September 1, 1999, CVHC and the Agency entered into an agreement
project. In addition to setting forth terms of development, the Agreement
provides up to $303,000 in Housing Set Aside funds to CVHC towards the
development of the nine homes. The Agreement was amended on December
19, 2001, resetting the Schedule of Performance to correspond to the current
schedule, as well as adding a Regulatory Agreement adding the affodability
provisions.
As part of the construction financing project, CVHC has secured a $261,000
loan from Local Initiatives Support Corporation (LISC), a $154,000 grant from
the State HOME Program for permanent financing, and $500,000 construction
loan from the California Housing Finance Agency-Self Help Builder Assistance
Program (CHFA-SHBAP).
On April 23, 2002, staff received communication from the attorney representing
CVHC requesting that the attached draft of a Subordination Agreement be
executed by the Community Redevelopment Agency subordinating our loan
($114,500 to CVHC for land acquisition) to LISC's construction loan. The
attached Exhibit "B" of Amendment#1 to OPA with CVHC, A394C outlines the
Funding Sources and Uses of Funds.
The Agency typically subordinates its note to the first deed of trust, and
sometimes to the second deed of trust. In both of these loans, the lenders are
governmental or quasi-governmental entities that contain strict provisions on the
subordination of their notes. The most recent subordination agreement the
Agency has been asked to approve was in June, 2000 on the Palos Verdes
Villas project as part of a CHFA refinancing. ORA b
The permanent loan made to CVHC will be divided and assigned to the nine
individual homeowners upon the completion of the project and the close of
escrow. The Agency loan would continue to subordinated under the terms of
that deal.
The subordination does not require any additional Agency assistance beyond
what has already been provided. Staff is pleased that this project is underway
and will be completed and ready for occupancy this year.
71 �
JgHN SAAYNbO D
Di ector of Community and Economic Development
ExecutiJ eD66tor
ATTACHMENTS:
1. Resolution
2. Subordination Agreement
3. Exhibit "B° of Amendment#1 to OPA with CVHC
REVIEWED BY DEn OF FINANCE
RESOLUT10NNO. /o7k
OlF THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AN
OWNER PARTICIPATION AND LOAN AGREEMENT WITH
THE COACHELLA VALLEY HOUSING COALITION FOR THE
DEVELOPMENT OF SEVEN SINGLE-FAMILY HOMES IN
REDEVELOPMENT PROJECT AREA#9B.
WHEREAS,the Community Redevelopment Agency of the City of Palm Springs(the"Agency")
has established an affordable housing setaside fund in accordance with Section 33000 et seq. of the
California Health and Safety Code;and
WHEREAS,the funds are earmarked for the acquisition,construction,rehabilitation of affordable
housing to benefit the community;and
WHEREAS,CVHC has studied the neighborhood and'ias determined that the Project Area
would benefit from the new residential construction and new family homeownership;and
WHEREAS,the Coachella Valley Housing Coalition("CVHC")desires to participate with the
Agency in its affordable:housing program by constructing up to nine single-family homes for low income
families in the Cottonwood/Chuckwalla neighborhood which is within Redevelopment Project Area 4913;
and
- WHEREAS,CVHC has acquired three lots in the Project Area,specifically APN's 507-042-011,
507-042-022,and 507-042-010,for the development of this project,and are negotiating on a fourth lot;
and
WHEREAS,CVHC submitted an application to the State of California for Federal HOME funds
for this project and was awarded$154,000;
WHEREAS,CVHC will be applying for additional funding through the Rural Community
Assistance Corp.,the Local Initiative Support Corporation,and/or Bank of America.
NOW,THEREFORE,BE IT RESOLVED by the Community Redevelopment Agency of the City of
Palm Springs,as follows:
SECTION L An Owner Participation Agreement with CVHC for the development of up to nine
affordable single-family homes in the Cottonwood/Chuckwalla neighborhood,which is within
Redevelopment Project Area#913,is approved.
SECTION 2. The Agency authorizes an allocation of Housing Set Aside Funds up to$303,000 towards
the development of this project.
SECTION 2, The Executive Director,or his designee,is hereby authorized to execute on behalf of the
Agency the Owner Participation Agreement and all other documents necessary to effectuate the
Agreement,and make minor changes as may be deemed necessary in a form approved by the Agency's
legal counsel.
ADOPTED this day of , 1999.
AYES:
NOES:
ABSENT
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS,CALIFORNIA
By;
Assistant Secretary Chairman
Reviewed and Approved:_
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Outline of Funding`SO rces and Uses of Funds
COACHELLA VALLEY HOUSING COALITION 'CHUCKWALLA SELF HELP PROJECT
PROJECT PROPOSAL GROUP 1(p SELF KELP 140i(ES)
DATE:OM MI
i%*UEREST RATE MORTGAGES
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NOTES:
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Recording Requested By
And When Recorded Return To:
Local Initiatives Support Corporation
73 Third Avenue
New York, New York 10017
Attention: Jenny Rodriguez
LISC P.A. No. 41182-0017
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN THE LIEN OF A DEED
OF TRUST ON THE PROPERTY BECOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
THIS SUBORDINATION AGREEMENT (this "Agreement"), is dated as of this
day of , 2002 by THE COACHELLA VALLEY HOUSING
COALITION, a California nonprofit corporation ("Borrower"), "), and THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate
and politic ("Agency"), in favor of LOCAL INITIATIVES SUPPORT CORPORATION, a New York
not-for-profit corporation ("LISC");
11ECITALS:
A. Borrower is the owner in fee simple of that certain real property described in
Exhibit A attached hereto and incorporated (the "Land") which, together with the improvements
Borrower intends to construct thereon (the "Improvements"), collectively, are referred to herein
as the "Property".
B. In furtherance of Borrower's charitable purposes and goals, Borrower intends to
inprove the Land with a subdivision of 9 single-family houses (each a "House " and collectively,
the "Houses"). Borrower's development and sale of the Houses is sometimes referred to herein
as the "Project".
C. Agency has made a loam to Borrower (the "Agency Loan") evidenced by a
promissory note dated September 1, 1999 in the principal amount of One Hundred Fourteen
Thousand Five Hundred and No/100 Dollars ($114,500.00) (the "Agency Note") secured by that
certain deed of trust dated September 1, 1999 made by Borrower for the benefit of the Agency
and recorded on November 17, 1999 as Instrument No. 1999-507788 ("the "Agency Deed of
Trust") in the official records of Riverside County, California ("Official Records"). The Agency
Note, the Agency Deed of Trust and all other documents which evidence, guaranty, secure, or
otherwise pertain to the Agency Loan, collectively constitute the "Agency Loan Documents."
D. Borrower desires that LISC make a construction loan (the "LISC Loan") to
Borrower in the principal amount of Two (Hundred Sixty-One Thousand and No/100 Dollars
($261,000.00) to pay a portion of the construction costs of the Project. The LISC Loan is being
2
01A 1)
made under a construction loan agreement (the "LISC Loan Agreement") between LISC and
Borrower dated as of _, 2002.
E. The LISC Loan is evidenced by a promissory note (the "LISC Note") made
payable to LISC in the principal amount of the LISC Loan. The LISC Note is secured by a deed
of trust (the "LISC Deed of Trust") encumbering the Property, being recorded concurrently
herewith. The LISC Loan Agreement, the LISC Note, the LISC Deed of Trust, this Agreement, and
all other documents which evidence, guaranty, secure, or otherwise pertain to the Loan,
collectively constitute the "LISC Loan Documents." All capitalized terms used herein and not
defined shall have the meanings set forth in the LISC Loan Agreement.
F. It is a material condition to LISC's making the LISC Loan to Borrower that (i) the
LISC Deed of Trust unconditionally be and remain at all times a lien, claim, and charge upon the
Property unconditionally prior and superior to the lien, claim, and charge of the Agency Deed of
Trust, and (ii) the Agency Loan and Agency Loan Documents shall, at all times and in all
respects, be wholly subordinate and inferior in claim and right to the LISC Loan and LISC Loan
Documents.
H. It is to the mutual benefit of the parties that LISC make the LISC Loan to
Borrower, and Borrower is willing that the LISC Deed of Trust constitute a lien, claim, and
charge upon the Property unconditionally prior and superior to the lien, claim, and charge of the
Agency Deed of Trust, and that the Agency Loan and Agency Loan Documents shall, at all times
and in all respects, be wholly subordinate and inferior in claim and right to the LISC Loan and LISC
Loan Documents.
NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties
hereto and other valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and in order to induce LISC to make the Loan, the parties hereby agree as
follows:
AGREEMENT
1. The term "Obligations" !is used in this Agreement in its broadest and most
comprehensive sense and shall mean all present and future indebtedness of Borrower(or either
of them) which may be, from time to times, incurred by Borrower, including, but not limited to, any
negotiable instruments evidencing the same, all guaranties, debts, demands, monies,
indebtedness, liabilities and obligations owed or to become owing, including interest, principal,
costs, and other charges, and all claims, rights, causes of action, judgments, decrees,
remedies, security interests, or other obligations of any kind whatsoever and howsoever arising,
whether voluntary, involuntary, absolute, contingent, direct, indirect, or by operation of law.
2. The term "Agency Obligations" shall mean all Obligations owing at any time by
Borrower to Agency under the Agency Loan Documents, whether evidenced by one or more
promissory notes or otherwise.
3. Except as provided in Section 5, below, the Agency Obligations are hereby
subordinated and subject, in the manner and to the extent described below, to any and all
Obligations owed by Borrower to LISC; pursuant to the LISC Loan Documents (the "LISC
Obligations"), so long as any LISC Obligations shall remain unpaid, in whole or in part, or LISC
is committed or otherwise obligated to extend credit to Borrower under the LISC Loan
Documents.
dKo 1
4. So long as any of the LISC Obligations remain unpaid, in whole or in part, or so
long as LISC is committed or otherwise obligated to extend credit to Borrower, Agency agrees
that, except to the extent that payments of the Agency Obligations are permitted under Section
5 below, Agency shall not: (a) collect, or receive payment upon, by setoff or in any other
manner, all or any portion of the Agency Obligations; (b) without LISC's prior written consent,
enforce or apply any security, now or hereafter existing for the Agency Obligations; (c) without
prior written notice to LISC, commence, prosecute or participate in any administrative, legal or
equitable action against Borrower covering the Agency Obligations; (d) join in any petition for
bankruptcy; (e) without LISC's prior written consent join in any assignment for the benefit of
creditors, or creditors' agreement; (f) take, maintain or enforce any lien or security, which is
senior to LISC's interest, in any property, real or personal, to secure the Agency Obligations; or
(g) without LISC's prior or contemporaneous written consent, incur any obligation to, or receive
any loans, advances, dividends, payments of any kind or gifts from, Borrower.
5. Notwithstanding the preceding section, so long as Borrower has made each and
every payment of principal and interest due and owing to LISC, Borrower is not in default under
any of Borrower's agreements with LISC: and none of the following payments would cause such
default, then Agency shall be entitled to receive payments with respect to the Agency
Obligations in accordance with the terms of the Agency Loan Documents; provided, however
that Agency shall not be entitled to receive a prepayment of all of the Agency Obligations
whether such prepayment is made voluntarily by the Borrower or is a consequence of Agency's
acceleration of the Agency Obligations following a default under the Agency Loan Documents.
6. Except as otherwise expressly agreed to herein, all of the LISC Obligations now
or hereafter existing shall be first paid by Borrower before any payment shall be made by
Borrower on the Agency Obligations. This priority of payment shall apply at all times until all of
the LISC Obligations have been repaid in full. In the event of any assignment by Borrower for
the benefit of Borrower's creditors, any bankruptcy proceedings instituted by or against
Borrower, the appointment of any receiver for Borrower or Borrower's business or assets, or any
dissolution or other or other winding up of the affairs of Borrower or of Borrower's business, and
in all such cases, the officers of Borrower and any assignee, trustee in bankruptcy, receiver or
other person or persons in charge, respectively, are hereby directed to pay to LISC the full
amount of the LISC Obligations before making any payments to Agency.
7. Following a default in Borrower's obligations under the LISC Note or Borrower's
obligations under the LISC Deed of Trust, all amounts owing under the LISC Note shall be paid
in full before Borrower pays any of the Agency Obligations. Agency shall take no steps directly
or indirectly to use, or to cause any other person or entity to use, any state or federal law or
regulation (including, without limitation, the Bankruptcy Code and Rules, or any plan of
reorganization proposed or confirmed pursuant thereto) to circumvent the intent of the
preceding sentence.
8. Agency agrees to execute any additional recordable subordination agreements,
financing statement amendments or other documents reasonably required by LISC to provide
notice to others of this Agreement, and agrees to the recording of any such documents as LISC
may require.
9. Except as otherwise expressly agreed herein, Agency agrees that LISC shall
have absolute power and discretion, to deal in any manner with the LISC Obligations, including,
interest, costs and expenses payable by Borrower to LISC, and any security and guaranties
therefor including, but not limited to, release, surrender, extension, renewal, acceleration,
094 Z)7
compromise, or substitution. Agency hereby waives and agrees not to assert against LISC any
rights which a guarantor or surety could exercise; but nothing in this Agreement shall constitute
Agency a guarantor or surety. Agency hereby waives the right, if any, including, without
limitation, any rights Agency may have under any applicable state law, to require that LISC
marshal, or otherwise proceed to dispose of or foreclose upon, collateral LISC may have in any
manner or order.
10. If, at any time hereafter, LISC shall, in its own judgment, determine to
discontinue the extension of credit to or on behalf of Borrower, LISC may do so. This
Agreement, the obligations of Agency owing to LISC, and LISC's rights and privileges
hereunder shall continue until payment in full of all of the LISC Obligations notwithstanding any
action or non-action by LISC with respect to the LISC Obligations or with respect to any
collateral therefor or any guaranties thereof. All rights, powers and remedies hereunder shall
apply to all past, present and future LISC Obligations including under successive transactions,
any of which may continue, renew, increase, decrease or from time to time create new LISC
Obligations and notwithstanding that from time to time LISC Obligations theretofore existing
may have been paid in full.
11. Agency further agrees that in case Agency should, contrary to Section 4 above,
take or receive any additional security interest in, or additional lien by way of attachment,
execution, or otherwise on any property, real or personal, or should take or join in any other
measure or advantage contrary to this Agreement, at any time prior to the payment in full of all
of the LISC Obligations, LISC shall be entitled to have the same vacated, dissolved and set
aside by such proceedings at law, or otherwise, as LISC may deem proper, and this Agreement
shall be and constitute full and sufficient grounds therefor and shall entitle LISC to become a
party to any proceedings at law, or otherwise, initiated by LISC or by any other party, in or by
which LISC may deem it proper to protect its interests hereunder. Agency agrees that if Agency
violates this Agreement, Agency shall be liable to LISC for all losses and damages sustained by
LISC by reason of such breach.
12. Agency represents and warrants that the Agency Loan Documents are in full
force and effect, and except as specifically noted herein, have not been amended, and there is
no breach, event of default or default existing under the Agency Loan Documents, or any event,
omission or failure of condition which would constitute such a breach, default or event of default
after notice or lapse of time, or both.
13. Except as otherwise expressly agreed herein, if Agency shall receive any
payments, security interest, or other rights in any property of Borrower in violation of this
Agreement, such payment or property shall be received by Agency in trust for LISC and shall
forthwith be delivered and transferred to LISC.
14. Agency represents and warrants that Agency has not previously subordinated
the Agency Obligations for the benefit of any other party, and agrees that any such
subordinations hereafter executed shall be expressly made subject and subordinate to the
terms of this Agreement. Agency further warrants having established with Borrower adequate
means of obtaining, on an ongoing basis, such information as Agency may require which may
affect the ultimate satisfaction by Borrower of the Agency Obligations. LISC shall have no duty
to provide any such information to Agency.
UA T)S
15. The LISC Deed of Trust :securing the LISC Note, and any renewals or extensions
thereof, unconditionally shall be and remain at all times a lien or charge on the Property, prior
and superior to the liens or charges of the Agency Deed of Trust.
16. Agency intentionally and unconditionally waives, relinquishes and subordinates
the liens or charges of the Agency Deed of Trust in favor of the lien or charge of the LISC Deed
of Trust upon the Property, and understands that in reliance upon, and in consideration of this
waiver, relinquishment and subordination, specific loans and advances are being and will be
made and, in reliance thereon, specific monetary and other obligations are being and will be
entered into which would not be made or entered into but for said reliance upon this waiver,
relinquishment and subordination. Agency unconditionally and absolutely subordinates its
interest under the Agency Deed of Trust to all sums due or to become due under the LISC Note,
including without limitation interest and all subsequent modifications, extensions and renewals
of the LISC Note.
17. Agency acknowledges that LISC would not make the LISC Loan without this
Agreement.
18. Agency approves and consents to the provisions of the LISC Note and the LISC
Deed of Trust, and all agreements, including but not limited to any construction loan or escrow
agreements, between Borrower and LISC for the disbursement of the proceeds of the LISC
Loan.
19. LISC in making disbursements pursuant to any agreement between Borrower
and LISC for the disbursement of the proceeds of the LISC Loan is under no obligation or duty
to, nor has LISC represented that it will, see to the application of such proceeds by the person
or persons to whom LISC disburses such proceeds and any application or use of such proceeds
for purposes other than those provided for in such agreement or agreements shall not defeat
the subordination herein made in whole or in part.
20. LISC's rights and Agency's obligations under this Agreement shall in no way be
impaired, altered or diminished and shall remain fully effective regardless of any act or omission
by LISC that might otherwise directly or indirectly result, by operation of law or otherwise, in the
discharge or release in whole or in part of Borrower, or the discharge, release, or impairment of
any collateral now or hereafter held as :security for any of the obligations under the LISC Note,
the LISC Deed of Trust or any other related loan documents.
21. This Agreement shall be binding upon the successors and assigns of Agency
and shall inure to the benefit of LISC's successors and assigns.
22. This Agreement and all rights and liabilities of the parties hereto shall be
governed as to validity, interpretation, enforcement and effect by the laws of the State of
California.
23. This Agreement shall be, the whole and only agreement between the parties
hereto with regard to the subordination of the lien or charge of the Agency Deed of Trust to the
lien or charge of the LISC Deed of Trust, and shall supersede and cancel any prior agreements
as to such, or any, subordination, including, but not limited to, those provisions, if any, contained
in the Agency Deed of Trust, which provide for the subordination of the lien or charge thereof to
a deed or deeds of trust or to a mortgage or mortgages to be executed thereafter.
dRd Z)9
24. LISC declares, agrees and acknowledges that:
a. It shall give written notice to Agency, or its successor, concurrently with
Borrower, of any event of default under the LISC Deed of Trust. Except for defaults, which are
capable of being cured solely by the payment of money, Agency shall have the right to cure
defaults under the LISC Deed of Trust, which are susceptible to being cured within the time
period specified in the LISC Deed of Trust.
b. LISC agrees that if, prior to foreclosure of the LISC Deed of Trust, Agency
cures the event of default in a timely manner, then LISC will not exercise any right it may have
to accelerate the LISC Note by reason of the event of default so cured by Agency or as a result
of the transfer of title to the Property to Agency. This paragraph 24(b) shall not prohibit LISC
from accelerating the indebtedness evidenced by the LISC Note by reason of a later uncured
default.
25. This Agreement may be executed in two or more counterparts each of which
shall be deemed an original and all of which taken together shall constitute but one and the
same instrument.
NOTICE: THIS SUBORDINATION( AGREEMENT CONTAINS A PROVISION WHICH
ALLOWS THE OWNER OF THE PROPERTY WHICH IS THE SUBJECT OF
THIS SUBORDINATION AGREEMENT TO OBTAIN A LOAN A PORTION OF
WHICH MAY BE (EXPENDED FOR OTHER PURPOSES THAN
IMPROVEMENT OF THE LAND. IT IS RECOMMENDED THAT, PRIOR TO
THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES
CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
IN WITNESS WHEREOF, the undersigned have executed this Subordination Agreement
as of the day and year first above written.
BORROWER:
THE COACHELLA VALLEY HOUSING COALITION,
a California nonprofit public benefit corporation
By:
Name:
Title:
By:
Name:
Title:
[Signatures continue on following page]
61404 afo
AGENCY:
THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS
By:
Name:
Title:
APPROVED AS TO FORM:
By:
Name:
Title:
LISC:
LOCAL INITIATIVES SUPPORT CORPORATION,
a New York not-for-profit corporation
By:
Name:
Title:
[ALL SIGNATURES MUST BE ACKNOWLEDGED]
STATE OF )
) ss.
COUNTY OF )
On before me,
Notary Public, personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) subscribed to the within instrument and acknowledged to
me that executed the same in authorized capacity(ies), and
that by 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.
Notary Public
My Commission Expires
STATE OF )
ss.
COUNTY OF )
On before me,
Notary Public, personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) subscribed to the within instrument and acknowledged to
me that executed the same in authorized capacity(ies), and
that by 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.
Notary Public
My Commission Expires
STATE OF )
ss.
COUNTY OF )
On before me,
Notary Public, personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) subscribed to the within instrument and acknowledged to
me that executed the same in authorized capacity(ies), and
that by 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.
Notary Public
My Commission Expires
STATE OF )
) ss.
COUNTY OF )
On before me,
Notary Public, personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) subscribed to the within instrument and acknowledged to
me that executed the same in authorized capacity(ies), and
that by 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.
Notary Public
My Commission Expires
64A �/3
STATE OF )
) ss.
COUNTY OF )
On before me,
Notary Public, personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) subscribed to the within instrument and acknowledged to
me that executed the :same in authorized capacity(ies), and
that by 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.
Notary Public
My Commission Expires
STATE OF )
ss.
COUNTY OF )
On before me,
Notary Public, personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) subscribed to the within instrument and acknowledged to
me that executed the same in authorized capacity(ies), and
that by 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.
Notary Public
My Commission Expires
04 *0
E)UMIT "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.
All t � "
EDIT "A"
627/014 0 84-0 012/3176Yb O ft&PARTICIPATION AND LOAN AGREEMENT
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING A SUBORDINATION AGREEMENT WITH
COACHELLA VALLEY HOUSING COALITION, A
CALIFORNIA CORPORATION, AND THE LOCAL
INITIATIVES SUPPORT CORPORATION, TO
FACILITATE A LOAN MODIFICATION OF THE
COTTONWOOD/CHUCKWALLASELF-HELP HOUSING
PROJECT, IN MERGED PROJECT AREA No. 1
(FORMERLY PROJECT AREA #9-B)
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs (the
"Agency")has established an affordable housing setaside fund in accordancewith Section
33000 et. seq. of the California Health and Safety Code; and
WHEREAS, the Agency entered an Owner Participation Agreementwith Coachella Valley
Housing Coalition (the "Developer") on September 1, 1999 and a Regulatory Agreement
and Declaration of Covenants and Restrictions on December 19, 2001; and
WHEREAS, the Developer,Agency, and the Local Initiatives Support Corporation ("LISC")
desire to enter a Subordination Agreement, whereby the Agency agrees to subordinate its
Use Restrictions to the LISC Deed of Trust and the Regulatory Agreement; and
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the
City of Palm Springs, as follows:
SECTION 1. A Subordination Agreement between the Community Redevelopment
Agency of the City of Palm Springs, Coachella Valley Housing Coalition, a
California Corporation, and the Local Initiatives Support Corporation, is
approved in a form acceptable to the Agency Counsel.
SECTION 2. The Executive Director, or his designee, is hereby authorized to execute on
behalf of the Agency the Subordination Agreement and other documents
necessary to the Agreement, and make minor changes as may be deemed
necessary, in a form approved by Agency Counsel.
ADOPTED this day of_ , 2002.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENTAGENCY
OF THE CITY OF PALM SPRINGS,
CALIFORNIA
By _
Assistant Secretary Executive Director
REVIEWED & APPROVED AS TO FORM
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