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HomeMy WebLinkAbout02593 - ANGEL VIEW CRIPPLED CHILDREN GROUP HOME HUD GATEWAY ESTATES STATE OF CALIFORNIA �O�1sCTO1rS STANDARD AGREEMENT— rORNEDBYTHE CONTRACTNUMBER AM.NO. STD.2(REV.e-ea) +.frORNEY GENERAL 83-RHC-145 1 THIS AGREEMENT,made and entered into this 25 day of July 19 91 CONTRACTOR'S FEDERAL I.D.NUMBER in the State of California,by and between State of California,through its duly elected or appointed,qualified and acting TITLE OF OFFICER ACTING FOR STATE AGENCY Department of Housing Director and Community Development ,hereafter called the State and City of Palm Springs hereafter called the Contrator. WITNESSETH: That the Contractor for and in consideration of the covenants,conditions,agreements,and stipulations of the State hereinafter expressed, does hereby agree to furnish to the State services and materials as follows: (Set forth service to be rendered by Contractor,amount to be paid Contractor, time for performance or completion,and attach plans and specifications,if any.) Standard Agreement No. 83-RHC-145,dated June 22, 1944,between the Department of Housing and Community Development and the City of Palm Springs, is hereby amended as follows: Paragraph 18 (e) is amended to read: 18 (e) The amount encumbered by this Agreement for the purposes of annuity fund payment is S49,499 for fiscal year or portion thereof beginning January 1, 1991 and ending June 30, 1991. This Agreement shall he amended annually to reflect the revised amounts in the approved operating budget for succeeding fiscal years. r C � fl- O r All other terms and conditions shall remain as set forth in the original Agreement and amendments thereto. c o rn 1 r r r' LL th I T S- O I N rn CONTINUED ON SHEETS, EACH BEARING NAME OF CONTRACTOR AND CONTRACT NUMBER. c � n The provisions on the reverse side hereof constitute a put of this agreement. +' W0 -o ce IN WITNESS WHEREOF,this agreement has been executed by the.parties hereto,upon the date first above written. .¢ cts-m ¢ v STATE OF CALIFORNIA CONTRACTOR AGENCY CON kiACTOR(Ifwhgth.n.nMdlddu ,.file •core Mm.p d—ho'WC) Depart ent of Housing and Community Development i_ palm S rinas BY(AUT RIZEDS ,(JATp/RE) BY((A THORI D ON URE D I p PRI TED NAME OF PERSON SIGNING PRIF TED NA ITLE OF PERSON IGNING imothy L. Coyle Rob . Parkins, City Manager TITLE ADDRESS Director P.O. Box 1786 Palm S rings, CA 92263-1786 AMOUNT ENCUMBERED BY THIS PROGRAM/CATEGORY(CODE AND TITLE) FUND TITLE DOCUMENT Oepertment of General Services $ $49,499 20 CommunityAffairs RHCF Us*Only (OPTIONAL USE) PRIOR THIS AMOUNT ENCUMBEREDNCUMBERED FOR DOCUMENT 2139/40169 C ITEM CHAPTER STATUTE FISCAL YEAR �frm D,0rtfM�of TOTALAMOU T ENCUMBERED TO 2240-516-938 1043 1979 1991/92 aeneaal Serrieee op'•pooval DATE OBJECT OF EXPENDITURE(CODE AND TITLE) $ $169,499 66574 i I hereby certify upon my own personal knowledge that budgeted funds T.B.A.NO. B.R.NO. are available for the period and purpose of the expenditure stated above. 9 7 9992 SIGNATURE OF ACCOUNTING OFFICER DATE D 6 , �.a,��xuv� ` 3� ❑ CONTRACTOR ❑ STATE AGENCY DEPT.OF GEN.SER. CONTROLLER 89 54245 STATE OF CALIFORNIA M..y. � STANDARD AGREEMENT ST.P NO,W 1. Thc Contractor agrucstumdenutrfy,dctcod and sake harmlcsa the stale,its ofticcls.agcnts and enlplot;ec,,fr.nn any and all Claims and losses accruing or resulang to Q and all conmwurrs, suhm uraotors, matey udlnml, laborers and any of her person,firmorcorporati oil furl l sit i or sit pplyingkvorkscivices,matanalsor sit ppii(S inconnectionwhIl the perfornnanccofthis contract,and frolu;any Slid 311clwm,and lasa saccrumgOrresuhing to any person,firm or corporation who nray be injured or Iwinged by the Contractor in the perfonumwc of 110 contract. 2. The Contractor,and the agents and cmpk,pvas of Common in dtc performance or uw agreement,shall act in an independent capacity and not as ofticers or c ni-IMCan UT ag=S of AWO or Cah rorma. 3. The Stave may terminate this agreement and be relies'cd of thepaynunt ofa,)y consideration to Contractor should Contractor fail toperloml the COV"ann in min coniahwd dt tine time and in thy-manner bomb prodded. In the evcntnf;ccht:ru:una[un;dlo4tat:-rr.trvproccals>/uhthc.$niknnammanrcrd:emedproperb}the`;tale The eost to die State shall bo,deducted from any sum due the Contractor Linda Ihls a frconrcm and the hAnce, it any,shall be paid tha Contractor upon de;nand T Without the written consent of the State,thus agreemem tz not assrgnabb,b} Contractor eithar in whole or in part. 5_ Tune is(If the W Uti,a rcUnenl, 6. No tilt ration or kci-wuorl of the terms of dais contras t shad be cabd Ur" made in writing and signed by die Plows hereton and no oral undcrstmdmg or agreement not incorporated herein,shall i,:binding on an} of dIc p.trtiem hm L m 7. The aanr•_lc:rwom to bt pall l'onuzlctr,, .L, pro% h;.Icm, Shall he in "omp,'r.ahun fee all of Cuntractur'a expenses incurred Ill tha p,v'Iormancc mciudmg uavel and per diem, unlcas otherrwlse cxpnos;y so providd.l. City of Palm Springs 83-RHC-145, Amendment 1 Page 1 of 1 ANNUITY FUND PAYMENT SCHEDULE AMOUNT From: January 1, 1991 To: June 30, 1991 $49,499 TOTAL 549,499 Amount Encumbered $49,499 Total from Payment Schedule 549,499 a c x. c: = c V OFFICIAL BUSINESS �j Document entitled to free Angel View Crippled Childrens Z recording per Government Foundation, Inc. Code Section 6103 Group Home Regulatory Agr ' Gateway Estates RECORDING REQUESTED BY AGREEMENT #2593 AND WHEN RECORDED, MAIL TO: —R16360- 8-9-88- - ----. --_- Rob Auman, Program Manager Rental Housing Construction Program Department of Housing and Community Development 921 Tenth Street, 3H Sacramento, CA 95814-2774 ESCROW NO. ` GROUP HOME REGULATORY AGREEMENT - NUMBER 83-RHC-145 Rental Housing Construction Program V n This Regulatory Agreement, dated � AUG 9 1988 is made and entered into by and between Angel View Crippled Children's Foundation Inc. , a nonprofit organization (hereinafter the "Sponsor") and City of Palm Springs (hereinafter "the Local Finance Entity" or "LFE") , a political subdivision organized and operated under the Constitution and laws of the State of ('al i fnr_ n_i_a_ ana r_h__n nci�a ri-mont nP u..•,c:r..v .,A Deve?up.- ent, a public agency of the State of California (hereinafter the "Department") . RECITALS A. The Sponsor is or is about to become the owner of real property described in Exhibit A attached hereto and made a part hereof (the "Property") . On behalf of, and with the approval of the Sponsor, the LFE has applied to the Department for financial assistance for the acquisition of the Property and the development, construction, and operation on the Property of a six bedroom group home for mentally or developmentally disabled adults (the "Development") . Said financial assistance will be provided by the Department, pursuant to the Rental Housing Construction Program (the "Program") established by Chapter 9 of Part 2 , Division 31 of the Health and Safety Code (Sections 50735, et sea. ) and the rules and regulations adopted thereunder, Subchapter 10, Chapter 7, Part 1, Title 25 of the California Administrative Code (Section 7800, et sea. ) . The Sponsor and the LFE agree to be bound and to abide by all applicable statutes and rules and regulations cited above with respect to the Development and the financial assistance provided c'J by the Department. cI s-i B. The LFE and the Department have entered into a State 00 Contract, numbered 83-PIIC-145 dated June 22, 1984, regarding the U Development and the financial assistance to be provided therefor. Sponsor agrees that it is aware of the provisions of the State Contract and that the State Contract imposes certain obligations upon the :LFE which require the cooperation and assistance of the Sponsor. Sponsor will make all reasonable efforts necessary to assist the, LFE in meeting its obligations under the State Contract. C. Sponsor has or will execute a Note evidencing its obligation to repay Development Funds advanced by the Department for the acquisition and construction of the Development. Said Note is or will be secured by a Deed of Trust on the Property naming the Department as beneficiary. Sponsor agrees to abide by and be bound by all the terms, conditions and provisions of said Note and Deed of Trust. The rights and remedies of the Department thereunder are cumulative with the rights and remedies arising hereunder and no exercise of any right or remedy under this Agreement or under the Note and Deed of Trust shall constitute a waiver of any right or remedy contained therein. D. Pursuant to the terms of the State Contract and to the requirements of the Program, the LFE is providing or approving below-market interest rate financing (°BMIR") , or its equivalent, to be used in conjunction with financial assistance for the L'C`1C1V�I1::C11L �J1 VVILLCV Sly ie LCLJ t11111tC11�• 131C �311^ «113C3^...13;t1 to evidenced and governed by such other notes; deeds of trust, documents or agreements as may have been or will be executed by or between the Sponsor and the LFE. The Sponsor and the LFE mutually agree that any obligation, covenant, condition or restriction contained in such other note, deed of trust, document or agreement which is contrary to or inconsistent with the obligations, covenants, conditions or restrictions contained in this Agreement shall be governed by the terms of this Agreement, without otherwise rendering such other notes, deeds of trust, documents or agreements void or invalid. E. As an inducement to the LFE to provide the financial assistance made available under the Program, the Sponsor has agreed to enter into this Agreement and has consented to be regulated and restricted as provided herein. NOW, THEREFORE, the parties hereto agree as follows: 1. Recitals. The foregoing recitals are a part of this Agreement. 2 2. Compliance with Law. The Sponsor agrees that at all times i its acts regarding the Development and the use of funds provided herein, shall be in conformity with all provisions of the Program including the statutes, rules and regulations and such policies and procedures of the Department pertaining thereto, as amended and in effect from time to time. The Sponsor acknowledges that it is familiar with such applicable statutes, rules and regulations, and that professional advice is available as necessary for the purpose of enabling the Sponsor to fully comply with such statutes, rules and regulations. 3 . Definitions. (a) Unless the context requires otherwise, the terms used in this Agreement shall be governed by the definitions set forth in Section 7802 of. the Rental Housing Construction Program regulations, as amended, and in effect from time to time. All references to code sections refer to Title 25 of the California Administrative Code, as amended and in effect from time to time, unless otherwise noted. (b) In addition, the following terms shall have the meanings set forth below: "Annuity Fund Account" means the account established pursuant to Section 7808 for the payment of operating subsidies pursuant to Section 7834 . "Development ]Funds" means all cash, deposits and cash equivalent items received by or due to the Sponsor in connection with the ownership and management of the Development, including but not limited to; Gross Oneratina .�VC1EJ:.5, 1i254L Gi11l.:C PLQUeeds. cunleinnaLLVil GWdS:[d:i, tVdr2 proceeds , Development Payments, capital contributions, security deposits, and interest or other income earned on deposits or investments of the foregoing. "Development Payments" means payments pursuant to Section 7832 for Development Costs as defined in Section 7802 . "Development- Property" means all property real or personal, acquired with payment of Development Funds. "Eligible Household(s) " means a household(s) as defined in Sections 6926 and 6928 . "Excess Program Payments" means the amount by which the sum of Annuity Fund Account payments and project income received by or accruing to the Sponsor exceeds the approved audited operating Costs in any fiscal year. "Gross operating Receipts" means funds of the Development derived from operations and operating subsidies including, if applicable, Project Income; proceeds from loans made for the purpose of defraying operating Costs; Annuity Fund Account payments; Management Reserve Account funds; housing assistance payments pursuant to Section 8 of the Housing Act of 1937 (42 U.S.C. Section 1437, et sea. ) ; any other rental assistance subsidies provided in accordance with Federal, State, or local housing programs; and any 3 0 0 interest or other income earned on deposits or investments of the foregoing. The term "Gross Operating Receipts"' does not include proceeds from fire, extended coverage or any other insurance; condemnation awards; proceeds from loans, except short-term loans made for the purpose of defraying Operating Costs ; Development Payments ; capital contributions to the Sponsor from its shareholders, members, partners or other beneficial owners; any security deposit required of tenants until such time, if ever, as the deposit becomes the property of the Sponsor free of any claim by or derived from the tenant or tenants who made the deposit; or any interest or other income earned on security deposits, and funds deposited into any project account established in accordance with this Agreement. "Initial Occupancy" means the date that the Department notifies the sponsor in writing that the development has been approved for occupancy. "Management Reserve Account" means the account established pursuant to Section 7808 for payments made pursuant to Section 7836. "Operating Costs" shall have the meaning set forth in Section 7834 (d) . "Project Income" means all income, from whatever sources, generated by the Development, including but not limited to, dwelling unit rents, any other duly authorized tenant charges, commercial rents and net income from laundry room, vending machine operations and similar sources. Any and all rents accruing to the Sponsor from occun_ ied units aIlail Lc illl..l uucu ao ci u�oi.:i, iia�.viiic. 4. Term of Agreement_. The term of this Agreement shall commence on the date indicated above and shall continue for thirty (30) years from the date of Initial Occupancy. 5. Assisted Units. (a) The Sponsor shall provide within the Development the number, size and occupancy of Assisted Units described in Exhibit B attached hereto and made a part hereof. The Sponsor shall restrict the availability and occupancy of Assisted Units to Eligible Households. (b) The rents charged to tenants of Assisted Units may be increased to levels greater than those authorized by Section 7806 only with the approval of the LFE and the Department, and only if the Annuity Fund Account, or other Program funds cannot provide the assistance required by Paragraph 9 below. Any such increase shall be reviewed no less than annually as to its continued necessity. Upon such review, the Department and the LFE may require that the rents charged to tenants of Assisted Units be reduced to levels authorized by Section 7806. 6. Rents and Rent Adjustments. (a) The Sponsor shall establish and maintain affordable 4 rents for Assisted Units in accordance with the requirements of M Section 7806, as amended and in effect from time to time. (b) Rents, as specified in tenant leases, shall be adjusted T by Sponsor at the time the annual recertification is conducted in QO accordance with Paragraphs 6 (c) and 18 below and the current applicable base rent schedule published by the Department. (c) Rent shall be due on the first day of the rental period but will not be late until the sixth day of that period. Thirty (30) days written notice of any rent increase shall be provided to all affected tenants. 7 . SecuritV Deposits. (a) In the event the Sponsor requires a security deposit, the requirement shall be only in accordance with law and this agreement. (b) Any such security deposits collected by the Sponsor shall be kept separate and apart from all other funds of the Development in a trust account with a depository insured by the Federal Deposit Insurance Corporation (F.D. I.C. ) or the Federal Savings and Loan Insurance Corporation (F.S.L.I.C. ) , and shall be held and disbursed in accordance with California law. The balance of such account: shall at all times equal or exceed the aggregate of all outstanding obligations under said account, plus accrued interest thereon. 8 . (Reserved) g _ annn_i_tg Fund arrnnnt Payments- (a) t'ne Lrt; Snail_ aisburse Lo the -pansor -z e zinanclai assistance provided from the Department's Annuity Fund Account pursuant to the State Contract to subsidize approved annual Operating Costs of the Development. Prior to the completion of the Development, the Sponsor shall submit to the LFE a proposed project budget for the initial fiscal year, or portion thereof. For each subsequent fiscal year, the Sponsor shall submit a budget to the LFE in accordance with paragraph 14 of this Agreement. The initial and subsequent budgets shall be subject to the review and approval of the Department. (b) On the basis of the approved initial and subsequent budgets submitted by the Sponsor, payments shall be provided by the Department from the Annuity Fund Account in the amount of the difference between the approved projected Operating Costs and the projected project income received by or accruing to the Sponsor. These Annuity Fund Account payments shall be made at periodic intervals and deposited in the account established by Paragraph 10 (a) hereof. Such payments shall be utilized by the Sponsor only for the payment of approved Operating Costs. 10. Cash Flow from Operations. (a) Gross Operating Receipts. The Gross Operating Receipts received by the Sponsor or its agents shall be deposited promptly in , the name of the Sponsor in an institution and in an account 5 r y^S insured by the F.D.I.C. or the F.S.L.I.C. Withdrawals from the account shall be made only in accordance with the provisions of PJ this Agreement and shall be disbursed, applied, or reserved and set aside for payment when due, in the following priority, to the extent available: (1) salaries, wages and any other compensation due and payable to the employees of the Sponsor or any of its agents employed on site in connection with the maintenance, administration or operation of the Development, along with all withholding taxes, insurance premiums, Social Security payments and other payroll taxes or payments required in connection with such employees; (2) all payments for which the Sponsor is responsible :in connection with utilities, real estate taxes and assessments, and liability, fire and other hazard insurance; (3) all other expenses incurred to cover Operating Costs, including the fee of the managing agent, in accordance with the approved operating budget of the Development, but excluding deposits to the Reserve Fund for Replacements; (4) required deposits to the Reserve Fund for Replacements; and (5) funds required to be returned to the LFE or the Department as Excess Program Payments. The Sponsor may depart from the foregoing priorities of payment only upon the express written approval of the LFE and Department. (b) Excess Program Payments. (1) Excess Program Payments Account. The LFE shall establish an account in its name and under its exclusive control, subject to the direction of the Department, known as the Excess Program Payments Account. Based on the audited financial report, the Snnnspr shall provide to the LFE the amount of Excess Program raymenis on an anruai s�asis and siiaii depo5!� �uvir amuu..i Excess Program Payments Account on or before the 30th day following the submission of the report. Payment into the Excess Program Payments Account shall be made in accordance with the priorities established in subparagraph (a) of this paragraph. Interest earned, if any, on funds deposited in the Excess Program Payments Account shall be the sole property of the LFE, subject to the directions of the Department. (2) Use of Excess Program Payments. Upon approval of the budget for each fiscal year of the Development, the Department may direct either that all or any part of the funds remaining in the Excess Program Payments Account be applied in the budget year to offset Annuity Fund Account payments due the Development, or that the funds be returned to the Department for application to other purposes of the Program regardless of any direct or indirect benefit to the Davelopment or the LFE. (c) Reserve Fund for Replacements. (1) Commencing on the 20th day of the month following Initial Occupancy, or on such other date as the LFE shall designate in writing, the Sponsor shall create a Reserve Fund for Replacements by disbursing to the LFE from Gross Operating Receipts, in accordance with the priorities established in subparagraph (a) of this paragraph, funds for replacing structural elements or equipment of the Development considering 6 remaining useful life, deterioration, obsolescence, escalating costs of replacement and other factors as may be pertinent. This Reserve Fund for Replacements shall be maintained in the F.D.I.C. or F.S.L. I.C. insured account established by the LFE in its name sd and under its control, subject to the Department's direction. The monthly deposits to the Reserve Fund for Replacements of $78 per month shall be made on or before the 20th day of each C12 month. The adequacy of the monthly deposits shall be reviewed at least annually by the LFE and the Department, and the amount of such deposits adjusted accordingly; provided, however, that no increase in the amount of the deposits to the Reserve Fund for Replacements between any two consecutive fiscal years of the Development shall exceed 10%. All interest or other income earned by the Reserve Fund for Replacements shall be applied solely to the purposes of the fund, and disbursements from the fund shall be made only upon the approval or at the direction of the LFE and the Department. (2) Upon the expiration of the term of this Agreement or upon its sooner termination pursuant to the terms hereof, any funds remaining in the: Reserve Fund for Replacements and not expended or applied for the purposes of the Fund shall become the property of the Department. The Department may require the application of the Reserve Funds, in addition to the purposes stated herein, to cure any default or breach by Sponsor under this Agreement or under the Deed of Trust. All remaining Funds shall be remitted to the Department. (d) Residual Receipts. As of the end of each fiscal year the Residual R shll ha determined in arcnrrlanne With tha iJ2velopnent;s aualteu rinanclai report. aUGn Receipts snail ae set aside in the Operating Reserve Fund established in accordance with paragraph 12 of this Agreement. 11. Distribution to Sponsor. Neither the Sponsor, any officer, director, employee or agent of the Sponsor, nor any of its shareholders, members, partners or other beneficial owners, shall make, receive or retain any distribution of return of investment from Development Property or Development Funds. 12 . Unauthorized Possession of Development Funds or Property. If the Sponsor, any of its officers, directors, employees, agents, shareholders, members, partners, or other beneficial owners, or any other person, should receive or come into possession of Development Funds, other than in connection with the payment of Operating Costs or the repayment of Operating Loans or a Distribution, all as authorized by the provisions of this Agreement, such funds shall be deposited immediately in an account established by the Sponsor on behalf of the Development in accordance with this Agreement; if the Sponsor fails to do so, such funds shall be deemed to be held by the Sponsor in trust. If the Sponsor, any of its officers, directors, employees, agents, shareholders, members, partners, or other beneficial owners, or any other person should receive or come into 7 possession of Development Property in violation of this Agreement, such property shall be delivered immediately to the LFE; if the Sponsor fails to do so, such property shall be deemed Q0 to be held by the Sponsor in trust. Any Development Funds or �{ Development Property held in trust shall be held separate and Xapart from any other funds or property of the recipient or possessor for the sole benefit of the LFE subject to the direction of the Department. 13 . Reporting Requirements. The LFE shall file with the Department the reports listed below within the specified time frames. These reports are to be provided to the LFE by the Sponsor in a form approved by the Department. Separate reports shall be filed for each Development for which the Sponsor is responsible under the Program. All reports shall be subject to the approval of the Department. (a) An annual report shall be submitted no later than 90 days after the end of the Development's fiscal year. This report shall contain information about the following areas and any additional information requested by the LFE or the Department: (1) The substantial physical defects in the development including a description of any major repair or maintenance work undertaken in the reporting year; (2) The number and sizes of units available to and/or actually occupied by very low-income households, and if any, the handicapped and elderly; (3) The distribution of income of tenant households and households on waiting lists to occupy agSi steel, unit,, ! k4j 'rne epnnic groups to which eligible nausenoies belong if known; and (5) General management performance, including tenant relations and other relevant information consistent with the approved Management Plan. (b) An annual financial audit of the of the Development, shall be submitted no later than 90 days after the end of the Development' s fiscal year. The audit must contain a financial statement indicating surpluses or deficits in operating accounts, a detailed itemized listing of income and expenses, and the amounts of any fiscal reserves. This audit shall be prepared in accordance with the requirements of the LFE and the Department, certified at the Development' s expense by an independent Certified Public Accountant licensed in California or other accountant acceptable to the Department. (c) An operating report shall be submitted at such intervals as reasonably required by the Department and including such information as the Department may reasonably require. 14 . Annual Operating Budget. (a) The fiscal year for the Development shall commence on July 1 and conclude on June 30. (b) After the initial fiscal year, the Sponsor shall submit to the LFE an annual operating budget for the Development not 8 less than ninety (90) days prior to the beginning of each fiscal year of the Development:. The operating budget shall set forth <n the anticipated gross income of the Development, including such � payments as may be provided from the Program, and a detailed estimate of all Operating Costs thereof, which shall include an itemization of administrative expenses, maintenance expenses, cost of utilities, hazard insurance, taxes and assessments, and deposits to all funds, reserves or accounts required by the Department. The operating budget shall be subject to the review and approval of the LFE and the Department. (c) The operating budget shall be accompanied by a request for payments from the Annuity Fund Account, as described in Paragraph 9 above, to the extent that the budget indicates such funds are necessary to meet the operating costs as provided in Paragraph 9 hereof. , 15. Tenant Selection, Occupancy, Termination and Eviction and Appeal and Grievance Procedures. The Sponsor's policy and procedures for patient admission, tenant selection, tenant occupancy, appeal and grievance and termination and eviction shall be set forth in the management plan and shall be approved by the Department. The policy and procedures shall meet the requirements of Sections 7856, 7858, 7860 and 7862. 16. Unit Size Standards. (a) The general standards for determination of occupancy shall be one household member(s) for each bedroom. 17 . Tenant Income Certification. The income of a tenant in an Assisted Unit shall be recertified once each year in accordance with the procedures set: forth in Section 7858 (d) . Upon tenant recertification, the Sponsor shall take appropriate steps to ensure that all requirements of Section 7858 (d) and (e) are met with respect to income status, rent and occupancy eligibility. 18. Maintenance and Management. (a) The Sponsor shall perform or cause to be performed all management functions including, but not limited to: selection of tenants; recertification of family incomes; evictions and other terminations of tenants; collection of rent; all repair and maintenance functions, including ordinary and extraordinary maintenance; and replacement of capital items relating to the Development. (b) Prior to occupancy of the Development, the Sponsor shall prepare a management plan governing the management responsibilities of the Development. Such plan shall be in the form and contain such information as required by the LFE and the Department, and shall be subject to the approval of the LFE and the Department. The plan, at a minimum, shall meet the requirements of Section 7868 (d) . The plan shall be updated as necessary in conjunction with the annual report required by this 9 Agreement. The Sponsor- shall implement and comply with all provisions of the approved management plan. 00 (c) With the prior approval of the LFE and the Department, the Sponsor may contract with a private or public entity for the performance of the services or duties required in subparagraph (a) . However, such an arrangement shall not relieve the Sponsor of responsibility for proper performance of its management, repair and maintenance duties. (d) Any contract executed pursuant to subparagraph (c) shall contain a provision that it shall be subject to termination by the Sponsor, without penalty, upon not less than thirty (30) days prior written notice. At the request of the LFE or the Department, the Sponsor shall exercise such right of the termination forthwith and shall make immediate arrangements for the continuing management, repair and maintenance of the Development satisfactory to the LFE. 19 . Hazard Insurance. (a) The Sponsor shall at all times keep the Property and all improvements thereon insured against loss by fire and such other hazards, casualties, liabilities and contingencies as the LFE and the Department shall require, and in such amounts and for such periods as the LFE and the Department shall require. All insurance policies and renewals thereof shall be issued by a carrier in a form acceptable to the LFE and the Department. The LFE and Department shall be named as loss payees as their interest may appear, for an amount at least equal to the replacement value of the improvements assisted pursuant to this A rrraamant, tp) insurance prcceeas ana condemnation a:8aras ror any lass to or taking of the Development, or any portion_ thereof, shall be applied or utilized by the Department as provided in the Deed of Trust executed by Sponsor and referred to in the Recitals hereof. 20. Documents in Alternative Languages. The Sponsor shall ensure that all documents and instruments (including but not limited to : occupancy agreements , leases , notices , announcements, rules of occupancy, and grievance and appeal procedures) made available to or used by tenants, shall be available in the language or languages commonly spoken by residents of the area where the Development is located. The LFE may designate specific documents and languages which shall be made available as necessary and appropriate to meet the requirements of this paragraph. 21. Transfer of the Development. Express prior written approval of both the LFE and the Department is required for the sale, transfer, encumbrance or conveyance of the Development by the Sponsor. Such approval may be given provided that the following terms shall be incorporated in any transfer agreement: (a) The Sponsor' s successor in interest agrees to assume the obligations of the Sponsor relating to the Program, as set forth in this Agreement, the Development Agreement entered into 10 M by the parties hereto, and all other agreements relating to the f Development entered into by Sponsor with either the LFE or the Department. (b) The successor in interest is an eligible sponsor and U demonstrates to the satisfaction of both the Department and the LFE that it can successfully own and operate the Development. (c) The Department's approval of the sale, transfer, encumbrance or conveyance of the Development may, in such case, provide that the Promissory Note may be assumed by the approved transferee, and that the Department may waive its option to accelerate repayment of the note. (d) Any transfer of the Development shall include all of the transferror's right, title and interest in the Development or related thereunder, including rights to or interest in: all insurance policies and any claims thereto; all equipment and all manufacturer ' s warranties or guarantees pertaining to the Development; all funds in all accounts required by this Agreement; and all tenant security deposits held at the time of transfer. 22 . Non-Discrimination and Equal Opportunity. Occupancy of the Development shall be open to all regardless of race, sex, marital status, color, religion, national origin or ancestry. In addition, the Sponsor agrees to conduct its own affirmative action and affirmative marketing programs as provided herein. Additional responsibilities pertaining to civil rights and equal employment opportunity are provided in the Program and the rules and remnlatinns of tha Department. 23 . Certain. Acts Prohibited. The sponsor shall not make any sale, encumbrance, assignment or conveyance, or transfer in any other form, of the Development or any part thereof or of any of its interest therein other than in accordance with the terms of this Agreement and shall not, without the prior approval of the LFE and the Department: (a) Make any Distribution not permitted by the terms of this Agreement; (b) Assign or transfer any right to manage the Development; (c) Remodel, remove, add to, reconstruct or demolish any part of the Assisted Units in the Development or impair any real or personal property of the Development; (d) Require, as a condition of the occupancy or leasing of any dwelling unit in the Development, any consideration or deposit to guarantee the performance of the covenants of the lease other than permitted by the terms of this Agreement; (e) Permit the use of the dwelling units in the Development for any purpose except that which was originally intended, or permit any commercial use of the Development greater than that originally approved by the LFE and the Department; (f) Incur any liability or obligation in connection with the Development, contingent or otherwise, other than for current Operating Cost and for the indebtedness evidenced by the Note 11 ;w 00 executed on even date herewith, or incur any liability or a-4 obligation whatsoever that is secured in whole or in part by any Ninterest in or lien or encumbrance on the Development; (g) Enter into any contract or contracts for supervisory or managerial services; (h) Invest any Project Income in any property, real, personal or mixed, except as authorized by this Agreement or by the LFE and the Department or deposit any such funds in a depository not authorized by this Agreement or approved by the LFE and the Department; or (i) Fail to maintain reserves established or required by the LFE or the Department. 24 . Assignment of Rents for Security. As security for the performance of the Sponsor of all its obligations under this Agreement, the Sponsor hereby assigns and pledges to the LFE all of the Sponsor's right, title and interest in and to the rents, profits, income and charges of whatsoever kind or nature which it may receive or be entitled to receive from the operation of the Assisted Units in the Development; provided, however, that unless and until a default under this Agreement is declared by the LFE, the Sponsor shall be permitted to collect and retain such rents, profits, income and charges, subject to the provisions of this Agreement. 25. Violation of Regulatory Agreement by Sponsor. In the event of the violation of any of the provisions of this Agreement by the gnnnsnr- the LFF shall make an immediate report thereof to LPc uepart .cnL. AQalLlOnd!!y, Lile Lrr, slid!! give wrirC-en notice of said violation to the Sponsor by registered or certified mail, and if such violation is not corrected to the satisfaction of the LFE or the Department within thirty (30) days after the date such notice is mailed (or within such further time as the LFE or the Department, may permit) , the LFE or the Department may, without further prior notice, declare in writing a default under this Agreement effective on the date of such declaration of default. Upon any such declaration of default the LFE or Department may: (a) Collect all rents, profits, income and charges in connection with the operation of the Assisted Units in the Development and use the same or the proceeds thereof, in such order as the LFE or the Department may determine, toward satisfaction of the Sponsor' s obligations under this Agreement and toward payment of the necessary expenses of preserving and operating the Development; (b) Take possession of the Development; bring any action necessary to enforce any rights of the Sponsor growing out of the operation of the Development, and operate the Development in accordance with the terms of this Agreement until such time as the LFE, and the Department, shall determine that the Sponsor is again in a position to operate the Development in accordance with the terms of this Agreement. 12 (c) Apply to any State or Federal court: for specific performance of this Agreement; for an injunction against any C!J violation of this Agreement by the Sponsor; for the appointment of a receiver to take; over and operate the Development in GO U accordance with the terms of this Agreement; or for such other relief as may be appropriate, it being agreed by the Sponsor that the injury to the LFE or the Department arising from a default under any of the terms of this Agreement would be irreparable and that it would be extremely difficult to ascertain the amount of compensation to the LFE and the Department which would afford adequate relief, in light of the purposes and policies of the Program. 26. Amendment. This Agreement shall not be altered or amended except by writing . executed between the parties. No such amendment shall be effective without the prior approval of the Department and without meeting the requirements of Section 7852. 27 . Partial Invalidity. If any provision of this Agreement shall be found to be invalid, illegal or unenforceable by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby. 28. Binding on Successors. This Agreement shall bind, and the benefits thereof shall inure to, the respective parties hereto, their legal representatives, executors, administrators, successors in office or interest, and assians; nrpvidPd_, however, caac _ize apon�vr may zioi assiyn tiizi5 ayreeinenL or ar.} or iEs ohLigations hereunder; voluntarily or by operation of lay*, without the prior approval of the LFE and the Department. 29. Gender. The use of the plural in this Agreement shall include the singular and the singular shall include the plural, and the use of one gender shall be deemed to include all genders. 30. Recording Agreement. This Agreement shall, at the expense of ;.he Development, be acknowledged by each of the parties and recorded in the official records of the county in which the Development is situated. This Agreement shall be indexed in the grantor index to the name of the Sponsor and in the grantee index to the name of the LFE. 31. Election of Remedies; Events of Default. The remedies of the LFE and the Department hereunder and under any other instrument providing for or evidencing the financial assistance provided for the Development by the Department or the LFE are cumulative, and the exercise of one or more of such remedies shall not be deemed an election of remedies and shall not preclude the exercise by the LFE or the Department of any one or more of its other remedies. 13 32. Sponsor and its successor in interest agrees to indemnify, of defend and hold harmless the LFE, the Department and their 7-1� respective agents, employees and officers from any and all claims, losses, liabilities or causes of action (including reasonable attorney's fees) arising from or in connection with, Sponsor ' s management,, maintenance or operation of the Development. 33 . Waiver. No waives- by the LFE or the Department of any breach of or default under this Agreement shall be deemed to be a waiver of any other or subsequent breach thereof, or default hereunder. 34. Captions. The captions used in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope or the intent of the Agreement. 35. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California. 36. Notices. Written notices and other written communications by. and between the parties hereto shall be addressed as follows unless and until a party hereto has, in writing, communicated a different address to the: other party hereto. THEREFORE, the parties hereby aqree to and execute this LOCAL FINANCE ENTITY SPONSOR Name CITY OF PALM SPRINGS, CA Name ANGEL VIEW CRIPPLED Box 1786, Palm Springs, CA CHILDREN'S FOUNDATION AddressAddressl2-:;7-1) ,rt. , e—NI J I Rd_ Des . rt Hot S g° ,6Ca. 92240 Le By By P' et v •� Asst. City Manager Melvyn Ha4k-President itle) (Title) ATTEU,�_, (City Clerk) epartment of Housing and Community Development 921 Tenth Street °P(COL%, CIL Sacramento, CA 95814 By 0 Robert Au—man Program Manager HCF5RAI.GE 14 ACKNOWLEDGEMENT: PUBLIC AGENCY 4�) a STATE OF CALIFORNIA ) SS COUNTY OF RIVERSIDE ) On August 11, 1988 before me, the undersigned, a notary public in and for the State of California, personally appeared Dallas Flicek, and Judith Sumich , known to me (or proved to me on the basis of satisfactory evidence to be the Asst. City Mgr & City Clerkof the CITY OF PALM SPRINGS , and known to me to be the person s who executed the within instrument on behalf of said public agency and acknowledged to me that THE CITY OF PALM SPRINGS public agency name) executed the same. WITNESS my hand and official seal . > Signature: >/ n i Name typed or printed) �� >vf4'�l7 NO IA4iaUDLhq. _. jf' RHCP/04-11.1 _M3 ACKNOWLEDGEMENT: DEPARTMENT c-I STATE OF CALIFORNIA) ) SS COUNTY OF Sacramento ) On this Angnsl 79Rg= , before me, the undersigned, a Notary Public in ,and for the State of California, personally appeared Robert Auman, known to me (or proved to me on the basis of satisfactory evidence) to be the authorized designee of the Director of the Department of Housing and Community Development of the State: of California, and known to me to be the person who executed the within instrument on behalf of the Department therein named, and acknowledged to me that the Department of Housing and Community Development executed the same. WITNESS my hand and official seal. _ OFFICIAL SEAL. CHERYL L LIBERTI Signature: �)/ ` I Ik b "oT"pvAVENTOCwFoYNu 9ACPAMENTO COUNTY My Cemm&pins F.6.4l,19/t Cheryl L. Liberti C11 ACKNOWLEDGEMENT: CORPORATE (by officer other than President) n GO T-i 00 C�? STATE OF CALIFORNIA ) ) SS COUNTY OF Riverside) On Sep. 1988 before me, the undersigned, a Notary Public for the State of California, personally appeared Melvyn Haber , known to me (or proved to me on the basis of satisfactory evidence) to be the President of the corporation that executed the within instru- ment on behalf of the corporation therein named, and acknowledged to me that such corporation executed the same. WITNESS my hand and official seal . rt,. /r 7 F+ Signature: G�-if"<• _, l �ows;w'�� )'SE'�Z` 6q - ,�� oaiv�:kyAo ©f/7t p �m�� Pra,e °puN7j RNia Nome' typed ,or printed RHCP/04-11.6 City of Palm Springs 83-RHC-145 EXHIBIT A Legal Description Lot 33 , PALM SPRINGS GATEWAY ESTATES, UNIT NO. 1, as shown by Map on file in Book 39, pages 58 and 59 of Maps, Records of Riverside County, California. c� 0 UO Cet City of Palm Springs 83-RHC-145 EXHIBIT B Unit Description A 6-unit group home is to be occupied by very-low income mentally/developmentally disabled tenants. This development consists of a 6-bedroom congregate facility. For purposes of the RH(:P, each bedroom in a congregate facility serves as a living unit. For the purposes of determining income eligibility for this facility, each individual is considered a household.