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HomeMy WebLinkAbout12/19/2001 - STAFF REPORTS (4) DATE: DECEMBER 19, 2001 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: REDEVELOPMENT DIRECTOR APPROVAL OF FIRST AMENDMENT TO AN OWNER PARTICIPATION AGREEMENT WITH COACHELLA VALLEY HOUSING COALITION FOR THE CONSTRUCTION OF NINE SINGLE FAMILY HOMES IN THE COTTONWOOD/CHUCKWALLA NEIGHBORHOOD RECOMMENDATION: It is recommended that the Agency approve Amendment Number 1 to an Owner Participation Agreement with Coachella Valley Housing Coalition (CVHC), adding a Regulatory Agreement for affordability and amending the Project Activity Schedule, in Merged Project Area#1, formerly Project Area 9-B SUMMARY: This is a "clean up"amendment to an OPA with CVHC that faciltated the development of a nine-home self-help housing project in the Cottonwood/Chuckwalla neighborhood. It adds a Regulatory Agreement between the individual homeowners and the Agency, as well as resets the project schedule and pro forma to reflect the current project status. CVHC is nearly ready to commence construction on the project, which should be complete by the end of the summer, 2002. BACKGROUND: In 1999 the Agency approved an Owner Participation Agreement with Coachella Valley Housing Coalition (CVHC) to assist in the development of a "neo- traditional" single family home project in the Cottonwood/Chuckwalla neighborhood. This effort was part of the City and Agency's "Recapture Our Neighborhoods" program aimed at improving the housing stock in this targeted neighborhood. CVHC worked diligently on acquiring the development funds beyond the Agency's $303,000 participation, and in July of this year received the final piece of construction financing. CVHC received final development approvals on the project in October, 2001, with the exception of the subdivision map, which still needs City approval. With the approval of the map the project is ready to proceed. However, the Agency needs to do two things to "clean up" the OPA: (1) since the original OPA was an interim agreement that contemplated a revision to "parcel out" the participation among the nine homeowners, a Regulatory Agreement that will be executed and recorded between the homeowners and the Agency needs to be added to the Agreement; and (2) the facts of the original agreement, such as the Project Activity Schedule and the Sources and Uses of Funds, are amended to reflect the current project status. This project will be a welcome addition to the City's housing stock and will greatly improve one end of a "targeted neighborhood." Funds for this project were appropriated in Fiscal Year 1999-2000 and have been carried forward as a continuing appropriation in the Low/Mod Housing Fund. No new Agency funds are being committed to the project. JOHNS R YMOND Rede'veLnpment DirectoE APPROVEDA Executive Direci���r ATTACHMENTS: 1. Resolution 2. Owner Participation Agreement REVIEWED BY DEPT. OF FINANCE FIRST AMENDMENT TO OWNER PARTICIPATION AGREEMENT This First Amendment to an Owner Participation Agreement (the "First Amendment') is entered into by and between the Community Redevelopment Agency of the City of Palm Springs, a public body, corporate and politic ("the Agency") and Coachella Valley Housing Coalition, a California Corporation ("Developer"), and is intended by the parties hereto to effectuate the development of the intended nine home self help project in the Cottonwood/Chuckwalla neighborhood defined in the original Owner Participation Agreement. RECITALS WHEREAS, the Agency and Developer entered into that certain Owner Participation Agreement dated , 1998, which was approved by the Agency Board pursuant to Resolution No. _ on September 1, 1998, (the "Original DDA"), with respect to the acquisition and development of certain real property located in the City of Palm Springs and more particularly described in the Original OPA; and WHEREAS, as of the date of this First Amendment, the Developer has secured all necessary project financing; obtained architectural and project approvals from the City of Palm Springs; has completed the work necessary for the approval of a subdivision map, and is ready for the approval of the map by the City of Palm Springs; and, prequalified the nine families that will participate in the program; and WHEREAS, the Agency and Developer now desire to enter into this First Amendment to the OPA for purposes of approving the Regulatory Agreements necessary to ensure the continued affordability of the units, assigning a portion of the project loan to each of the individual homeowners, as well as amending the Schedule of Performance to reflect the current status of the project. NOW, THEREFORE, based upon the foregoing recitals and the terms, conditions, covenants, and agreements contained herein, the parties hereto agree as follows: Section 1. Developer and Agency agree that the following shall be added as new Section 2.5 to the Owner Participation Agreement. 2.5 Application for Development Funds. Participant agrees that Agency Loan is provided by Agency to Participant with the express understanding that Participant with the express understanding is to obtain at least FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) of funding from sources other than the Agency as may be necessary to complete the project ("Development Funds"), pursuant to the terms of the amended OPA to be negotiated and agreed upon by Participant and Agency, including but not limited to completing the requirements for securing the HOME funds and application to RCAC and other sources. Participant has now secured the necessary development funds from the HOME Program administered by the California Department of Housing and Community Development, and from the California Housing Finance Agency, and has the ability to proceed with the Project. IRV 011900,1 -t- �RR ew3 Section 6.2 Notices. Notices mailed to the Agency Counsel shall be mailed to: Burke, Williams & Sorensen, LLP 18301 Von Karman Avenue Suite 1050 Irvine, California 92612-1009 Attn: David J. Aleshire, Esq. Exhibit "B", Outline of Funding Sources and Uses of Funds, shall be modified as attached. Exhibit "E", Project Activity Schedule, shall be added. Exhibit "F", Regulatory Agreement, shall be added. The DDA is Deemed Modified to the Extent Inconsistent With the Provisions of This Third Amendment. Except as provided herein, the DDA continues unmodified and in full force and effect. [SIGNATURES ON NEXT PAGE] my 411900 vi -2- dXA c4• y IN WITNESS WHEREOF, the undersigned have executed this First Amendment, on the date set forth below. Dated: 12001 By: for Coachella Valley Housing Coalition Dated: , 2001 AGENCY By: Chairman Community Redevelopment Agency of the City of Palm Springs ATTEST: By: Assistant Secretary APPROVED AS TO FORM: Dated: 12001 BURKE WILLIAMS & SORENSEN, LLP By: Agency Counsel IRV#11900 vt -3- elew e os STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On 2001, before me, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (SEAL) STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On 2001, before me, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (SEAL) ury un 900 Vt -4- �A c►—G EXHIBIT"B" Outline of Funding Sources and Uses of Funds COACHELLA VALLEY HOUSING COALITION CHUCKWALLA SELF HELP PROJECT PROJECT PROPOSAL:GROUP 1 (9 SELF-HELP HOMES) DATE:06128/01 5%INTEREST RATE MORTGAGES 313R1213A 6 Bows 3SR12BA 3 Boors 9 Roars 2 Story I Story Use of Funds Hard Costs $78,150 s45111,900 $76,650 $235,950 $704.350 Lot Coat $20.000 $120.000 $20,000 $90,000 $1s0,000 Overhead i Super. $5,000 $30,000 $5,000 $15.000 $45.000 School Fees $2,900 $16.800 $2,100 590400 $25,200 Architectural i Engineering $11,000 $46,000 $11.000 $33.000 s99.000 City ParmitslOther Fees $9,050 $54,300 $9,050 $27,150 s91AW Interest Expanse $3,600 $22.900 $3,800 $11,400 $34,200 Construction Loan:FeealPoints $2,000 $12,000 $2.000 $6.000 $19,000 Closing/Escrow Costs $3,200 $19.200 $3,200 $9,600 $28.800 Total Construction Costs $135,000 $410,000 $133,500 $06,500 $1,219,500 Buyer Sweat Equity 1 $5,000 $30,000 $4,500 $13.500 543,500 Total $140,000 sM0,000 $140,000aS420.000 $1.260.000 Sources ofFundsCONSTRUCTION FINANCING Bank Loan:(let Lien) $29,199 $174,999 a+ s29.657 $261.000 CHFASHBAP(2nd Lien) $55,5S6 $333.333 $55,566 $500.000 HOME(3rd Lien) $17,111 $102,6Q $17,111 $154,000 CIry RDA Funda s37,6Q s202,002 537,6665303,000 Buyer Sweat Equlry $4,500 $27,000 $5.00S42.0011 Total $140.000 $11,110,000 $140,000 $420.000 $1,260.000 PERMANENT FINANCING CHFA(1st Llen) S89,739 $539.435 a89,169 $257.559 $1106,003 City RDA Funds(3rd Lien) $26,650 $171,900 $28,700 $86,100 $256,000 HOME(2nd Lien) $17,111 $102.667 $17,111 $51,333 $154.000 Buyer Sweat Equity S4,500 $27,000 $5,000 $15,000 $42,000 Sales Price(Appraisal) $140.000 ss40,000 $140,000 9420,000 51,260,000 TECHNICAL ASSISTANCE CSHHP $10,000 $60,000 $10,000 530,0o0 $90,000 City RDA Funds(3rd Lien) $5,000 $30,000 $5,000 $15,000 Il"Poo Family Deposit Closing $2,000 $12,000 $2.000 $6.000 $19.000 As needed: CHFA(Do payment Assistance) NOTES: Mortgage Amount Based on: 55%Mod 45%Mad Family SW 4 a 100%County Median Income $47400 $55,000 Family Median Income $26,070 $24,750 Monthly Housing Costs(30%) $652 $619 Less Property Taxes $116 silo ` Less Insurance $40 $40 _ Mortgage Insurance $0 s0 Buyer Repayment Ability $494 $461 Required Mortgage Payment $457 5457 Excess/ (Subsidy) $37 $4 Interest Rate 5.00% 5.00% Term 30 Years 30 years Mortgage Amount $85,000 $85,000 EXHIBIT "E" PROJECT ACTIVITY SCHEDULE Activity Completion Date Ownership Control July 2001 Financing Obtained Administrative March 2000 Acquisition November 2000 Predevelopment July 2001 Construction July 2001 Permanent May 2002 Local Planning Approval October 2001 Notice to Proceed December 2001 A. Site Improvements Grading January-February 2002 Sewer& Water January-February 2002 Dry Utilities January-March 2002 Street Improvements April-May 2002 B. Construction Slabs February 2002 Framing February-April 2002 Roof& Rough In March-May 2002 Plaster & Drywall April-June 2002 Finish June-August 2002 Landscaping July-August 2002 Final Inspection August-September 2002 Certificate of Occupancy August/September 2002 IRV#11900v1 -5- 69 v EXHIBIT "F" REGULATORY AGREEMENT [SEE FOLLOWING PAGES] IRV 916862 v1 (I of IS) Exhibit 1°F'"To Owner Participation Agreement dJ& 609 RECORDED AT THE ) REQUEST OF AND WHEN ) RECORDED RETURN TO: ) Palm Springs Community Redevelopment Agency P.O. Box 2743 3200 Tahquitz Canyon Way ) Palm Springs, CA 92263 ) Attn: Executive Director ) (SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE) (EXEMPT FROM RECORDING FEE PER GOV. CODE `6103) REGULATORY AGREEMENT PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY THIS REGULATORY AGREEMENT (the "Agreement") is made this day of 200 , by and between (`Owner") and the PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY (`Agency"). RECITALS A. Owner has entered into an agreement (the"Purchase Agreement") to purchase from the Coachella Valley Housing Coalition, (the "Developer") certain real property located at Palm Springs, California, which real property is more particularly described in Exhibit"1" attached hereto and incorporated herein(the"Property"). B. Agency has agreed to provide financial assistance in the development of the housing project in which the Property is located. Agency's activities in this regard are designed to implement Agency's effort to assist persons and families of moderate-income or lower (`Eligible Persons and Families") to purchase residential property and to increase, improve, and preserve the supply of moderate-income and lower housing available within the territorial jurisdiction of Agency, in accordance with the Community Redevelopment Law (California Health and Safety Code Sections 33000 et seq.). C. Agency and the Developer entered into an Owner Participation Agreement dated (the "OPA"). Pursuant to the terms of the OPA, title to the Property may be vested in Owner subject to this Regulatory Agreement, and the terms hereof shall be binding on the Owner and its successors in interest in the Property for so long as the Regulatory Agreement shall remain in effect. IRV#16862 vl (2 of 15) Exhibit"F"To Owner Participation Agreement e led 6y0/6 D. The Agency's financial assistance and the use and affordability restrictions imposed by Agency have enabled Owner to purchase the Property with financial assistance provided for in the OPA. In exchange for Agency's assistance, Owner agrees to the restrictions on the sale, resale, and occupancy of the Property created by this Agreement. NOW, THEREFORE, the Developer, Owner and Agency declare, covenant and agree, by and for themselves, their heirs, executors, administrators and assigns, and all persons claiming under or through them, that the Property shall be held, transferred, encumbered, used, sold, conveyed, leased and occupied, subject to the covenants and restrictions hereinafter set forth. 1. DFFTNTTIONC. (a) Agency Financial Accistanee. The term "Agency Financial Assistance" shall mean an amount determined necessary for the development of the project by the project pro forma, after all other sources of financing, public and private, have been included, and which have been assumed by the Agency to assist a Qualified Purchaser. The Agency Financial Assistance shall be applied to the down payment required to purchase the Property. The amount of Agency Financial Assistance is Dollars ($� .00). (b) Low Innnme Hrtm,bold_ The term "Low Income Household" shall mean a household earning no more than eighty percent (80%) of the median income for a household of the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, or its successor statute. (c) Moderate. Income Household. The term"Moderate Income Household" shall mean a household earning no more than one hundred twenty percent (120%) of the median income for a household of the size of a prospective Qualified Purchaser household living in Riverside County set forth in the regulations published by the California Department of Housing and Community Development pursuant to Health and Safety Code Section 50093, or its successor statute. (d) Purchase Price. The term "Purchase Price" shall mean that amount agreed upon by the Owner and Developer and approved by the Agency's Executive Director as the payment to be made by Owner to Developer for the purchase of the Property, which amount is (e) Qualified Purchaser. The term "Qualified Purchaser" shall mean those persons who satisfy all of the following requirements: (1) The potential owner's adjusted gross income, as shown on federal income tax return(s), for the full calendar year immediately preceding the calendar year in which the prospective purchaser seeks to acquire the Property, does not exceed the I'm Income Household for the preceding calendar year. (2) The potential owner certifies they intend to occupy the Property as their principal residence and for no other purpose and that they will not enter into an agreement, whether oral or written, for the rental or lease of the Property. IRV#16862 v1 (3 of 15) Exhibit"F"To Owner Participation Agreement (3) The potential owner(s) do not own any other residential real property at the time of purchase, and have not owned any other residential real property in the three preceding years. (4) The potential owner(s) demonstrate to the Agency's satisfaction that Agency Financial Assistance is required for the purchase of the Property. (0 Sale Proceeds. The term "Sale Proceeds" shall mean the net proceeds from the sale of the Property to a purchaser who is not a Qualified Purchaser. The formula for determining the Sale Proceeds is as follows: (Gross proceeds of sale) minus (costs of sale, such as escrow, title and broker fees) minus (balance remaining on the Purchase Price to retire any mortgages) minus (Owner's original investment) = Sale Proceeds. 2. INCOME INFORMATION. Owner has submitted an eligibility verification form to Agency prior to execution of this Agreement. Owner represents, warrants, and declares under penalty of perjury to Agency that all information Owner has provided and will provide in the future to Agency is and will be true, correct and complete. Owner acknowledges that Agency is relying upon Owner's representations that Owner is an Eligible Person or Family, and Agency would not have entered into this Agreement if Owner did not so qualify. 3. RESTRICTIONS ON SALF OF TAF PROPERTY. Developer and Owner covenant and agree for themselves and their successors and assigns to their interest in the Property that the sale, resale, and occupancy of the Property shall be restricted as follows: (a) Occupangy Standards. The Property shall be used as the principal residence of Owner and Owner's family and for no other purpose. Owner shall not enter into an agreement for the rental or lease of the Property. (I� Nntice to Agency of Intent to Sell. If Owner desires to sell, exchange, quitclaim, or in any manner dispose of the Property, or any part thereof ("Proposed Sale"), Owner shall first notify Agency in writing not less than thirty (30) days prior to entering into any binding agreement for such a Proposed Sale. (c) Cale to Qualified Purchaser. Except as expressly provided in this Agreement, the Property shall be sold, conveyed, assigned or otherwise transferred to a Qualified Purchaser for a sales price which is equal to or less than the maximum amount permitted by the California Department of Housing and Community Development for housing affordable to LaA Income Households ("Maximum Sales Price"). Agency shall cooperate with Owner in providing information to Owner and to qualifying lenders to enable them to calculate the Maximum Sales Price and whether a prospective purchaser meets the legal low or moderate income standard. IRV 916862 vI (4 of 15) Exhibit'Y'To Owner Participation Agreement eAm idw/�L (d) Agency Apnrnval of Prospective Purchasers. Owner shall submit to Agency all offers received by the Owner for the Property. The Agency may elect to schedule a meeting with the prospective purchaser. Based upon the information submitted by Owner and the prospective purchaser, the Agency shall verify that the prospective purchaser is a Qualified Purchaser and that the sales price is less than or equal to the Maximum Sales Price. The Owner and the prospective purchaser shall provide such supporting documentation the Agency reasonably deems appropriate, including an income tax return of the prospective purchaser. Upon Agency's approval, the Owner may thereafter sell the Property to the Qualified Purchaser upon the terms and conditions submitted to the Agency, and subject to the restrictions in this Agreement. If the Property is sold to a Qualified Purchaser, then Owner shall not be required to share any Sale Proceeds with Agency pursuant to Section 3(e) below. (e) Sale of Property to Non-Qualified Purchaser. Owner shall use best efforts to sell the Property to a Qualified Purchaser, including listing of the Property at or below the Maximum Sales Price. "Best efforts" includes obtaining a broker, listing the Property on the multiple listing service, holding open houses, advertising and such other methods as normally undertaken to sell residential property. If after ninety (90) days following the Agency's receipt of written notice of Owner's intent to sell, and despite Owner's best efforts, Owner has not received a bona fide offer from a Qualified Purchaser to purchase the Property at the lesser of(i) the Maximum Sales Price, or (ii) the appraised fair market value of the Property, Owner shall notify Agency in writing that the Property has not been sold. (1) Rejection of Offer from Qualified Purchaser. Owner's rejection of an offer from a Qualified Purchaser shall be subject to Agency's approval of the reasonableness of the rejection, which Agency approval shall not be unreasonably denied. Notwithstanding the foregoing, Owner shall not reject a bona fide offer from a Qualified Purchaser solely on the basis of the offered purchase price, provided that the offer is equal to the lesser of(i) the Maximum Sales Price, or(ii) the appraised fair market value of the Property. (2) Terminatinu of Escrow. Once an offer from a Qualified Purchaser has been accepted and escrow has been opened, and if escrow should thereafter be terminated for any reason prior to closing, then a new ninety(90) day period for marketing the Property to a Qualified Purchaser shall commence upon Agency's receipt of written notice from Owner that the escrow has been terminated. (3) Aaen4's Right of First Refiisal. If the Owner has not received an offer from a Qualified Purchaser within the time period set forth in Section 3(e), then Agency shall have the right of first refusal to purchase the Property, or to cause the sale of the Property to a third party who is a Qualified Purchaser, at a price not to exceed the lesser of: (i) the Maximum Sales Price, or (ii) the appraised fair market value of the Property. Agency's exercise of such right of first refusal shall be made by delivery of written notice to Owner within thirty (30) days after Agency receives written notice that the Property has not been sold. In the event Agency either purchases the Property or arranges the purchase by a Qualified Purchaser, an escrow shall be established to close within sixty (60) days after delivery of Agency's notice of exercise. At the election of Agency, Agency may appoint a certified, independent appraiser to conduct an appraisal of the Property, at Agency's expense, to assist Agency in determining if the Iav#16862 vl (5 of 15) Exhibit"F"To Owner Participation Agreement /� /4 4.. 4 "" w/ Maximum Sales Price is at or near the fair market value of the Property at such time. If the appraised fair market value is less than the Maximum Sales Price, then the Agency may purchase the Property at the appraised fair market value. If the appraised fair market value exceeds the Maximum Sales Price, then the Agency may still purchase the Property at the Maximum Sales Price. In the event Agency fails to agree in writing to purchase or to nominate a Qualified Purchaser within thirty (30) days of receipt of written notice from Owner, the Property may be marketed by Owner to non-Qualified Purchasers at a market rate that may exceed the Maximum Sales Price; provided, however, that Owner shall continue to use its best efforts to sell the Property to a Qualified Purchaser. Owner's failure to sell the Property to a Qualified Purchaser shall obligate Owner to share the Sale Proceeds, if any, with the Agency in accordance with the formula set forth in Section 3(e)(4)below. (4) Agen4's Share of Sale Prnreeds. If the Property is sold to a purchaser who is not a Qualified Purchaser, then the Agency shall receive a declining percentage of the Sale Proceeds at the time of the sale, depending on the year in which the Property is sold. The longer the Property is owned, the less Sale Proceeds are shared with the Agency. After the termination of this Agreement, no Sale Proceeds are due the Agency. The Agency shall receive its share of the Sale Proceeds at the close of escrow for the sale of the Property. The schedule for determining the Agency's share of the Sale Proceeds is as follows: %u/�3�dA4 ff AL'y'I! �r C7�/ L�� fl / MYW �.PR EI D ln 2002 100% (or prior) 2003 90% 2004 80% 2005 70% 2006 60% 2007 50% 2008 40% 2009 30% 2010 20% 2011 10% 2012 1% The sharing of Sale Proceeds with the Agency shall not apply when: (i) Owner sells or transfers the Property to a Qualified Purchaser; (ii) the transfer is due to the assumption of IRV 816862 v1 (6 of 15) Exhibit'F" To Owner Participation Agreement 8jjf#4 � -__/ C/ ownership by inheritance upon death of the Owner; (iii) the transfer is due to the assumption of ownership by one spouse in connection with a divorce; (iv) Agency purchases the Property pursuant to Section 3(e)(3) above; or (v) the transfer is due to some other circumstance that does not involve the exchange of consideration and is approved in writing by Agency. 4. Limitntion nn Fnenmbraneea. Notwithstanding anything to the contrary contained in this Agreement, Owner shall not mortgage the Property or any portion thereof or any interest therein, or enter into any other form of conveyance for financing during the term of this Agreement, except for the following purposes: (a) financing the purchase of the Property from Developer(the "First Lien"); or (b) refinancing of the First Lien for a loan amount not to exceed the then current loan balance secured by the First Lien; or (c) financing the construction of improvements on the Property but only if such improvements are approved in writing by Agency and do not exceed five percent (5%) of the then current loan balance secured by the First Lien. The Owner shall provide such documentation as may be reasonably required by Agency to show that the financing perm:acd by this Section 4(c) was used for the construction of the improvements approved in writing by Agency. The Owner shall not enter into any such conveyance for financing without the prior written approval of the Agency. Any lender approved by the Agency shall not be bound by any material amendment, implementation, or modification to this Agreement subsequent to the recordation of its mortgage without such lender giving its prior written consent thereto. 5. STTRORDINATIO . This Agreement shall be subordinate to any First Lien on the Property held by the First Lien's Holder ("Holder"), and shall not impair the rights of Holder, or Holder's assignee or successor in interest, to exercise its remedies under the First Lien in the event of a default under the First Lien by Owner. In the event of a foreclosure or deed in lieu of foreclosure of the First Lien, this Agreement shall be terminated and shall have no further force or effect on subsequent owners of the Property. Any person, including his or her successors or assigns (other than Owner or a related person or entity of Owner), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Lien shall receive title to the Property free and clear from the restrictions in this Agreement. Further, if the Holder acquires title to the Property pursuant to a deed in lieu of foreclosure, this Agreement shall be terminated upon Holder's acquisition of title, provided that (i) Agency has been given written notice of a default under the First Lien, and (ii) Agency shall not have cured the default under the First Lien, or diligently pursued curing the default as determined by the Holder, within the time period provided in such notice sent to Agency. 6. MAINTENANCE OF PROPF,RTV. IRV 916862 vt (7 of 15) Exhibit'F"To Owner Participation Agreement e4eA d uvAr Owner shall maintain the improvements and landscaping on the Property in a manner consistent with community standards which will uphold the value of the Property, in accordance with the Perris Municipal Code. Owner also agrees to comply with any and all covenants and agreements established by any Declaration of Covenants, Conditions, and Restrictions controlling the Property and to comply with all applicable federal, state and local laws. 7. FNFORCFMFNT. (a) Events of Default. In the event Owner defaults in the performance or observance of any covenant, agreement or obligation of Owner set forth in this Regulatory Agreement, and if such default remains uncured for a period of thirty (30) days after written notice thereof shall have been given by Agency, or, in the event said default cannot be cured within said time period, Owner has failed to commence to cure such default within said thirty (30) days and diligently prosecute said cure to completion, then Agency shall declare an "Event of Default" to have occurred hereunder, and, at its option, may take one or more of the following steps: (1) By mandamus or other suit, action or proceeding at law or in equity, require Owner to perform its obligations and covenants hereunder or enjoin any acts or things which may be unlawful or in violation of this Regulatory Agreement; or (2) Take such other action at law or in equity as may appear necessary or desirable to enforce the obligations, covenants and agreements of Owner hereunder. Failure or delay in giving notice shall not constitute a waiver of any default, nor shall it change the time of default. 8, COWNANTC TO RIJN WITH THE LAND Owner hereby subjects the Property to the covenants, reservations and restrictions set forth in this Regulatory Agreement. The Agency and the Owner hereby declare their express intent that all such covenants, reservations and restrictions shall be deemed covenants running with the land and shall pass to and be binding upon the Owner's successors in title to the Property; provided, however, that on the termination of this Regulatory Agreement said covenants, reservations and restrictions shall expire, except as otherwise expressly provided. All covenants without regard to technical classification or designation shall be binding for the benefit of the Agency, and such covenants shall run in favor of the Agency for the entire term of this Regulatory Agreement, without regard to whether the Agency is or remains an owner of any land or interest therein to which such covenants relate. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument. Agency and Owner hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Owner's legal interest in the Property is rendered less valuable thereby. Agency and Owner hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and IRV#16862 vi (8 of 15) Exhibit'T"To Owner Participation Agreement 6444 dlwAr increasing the possibility of enjoyment and use of the Property by Moderate Income Households, the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the public purposes for which the Agency was formed. 9. TERM; TREMINATION. The term of this Agreement shall commence upon the close of escrow for the sale of the Property from Seller to Owner, and shall continue until the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), unless terminated earlier. This Agreement shall automatically terminate without any further action of the parties upon the earlier of (a) the expiration of the land use controls in the Redevelopment Plan (December 29, 2028), or(b) the sale of the Property to a purchaser who is not a Qualified Purchaser, provided the Agency receives its share of the net equity pursuant to Section 3(e) above. 10. MISCELLANEOUS. (a) :Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: If to Agency: Palm Springs Community Redevelopment Agency P.O. Box 2743 Palm Springs, California 92263 Attn: Executive Director With a copy to: Burke, Williams & Sorensen, LLP 18301 Von Karman Avenue, Suite 1050 Irvine, California 92612 Attn: David J. Aleshire, Esq. If to Owner: With a copy to: Notices personally delivered or delivered by document delivery service shall be effective upon receipt. Mailed notice shall be effective at noon on the second business day IRV#16862 v1 (9 of 15) Exhibit'T"To Owner Participation Agreement L 44 d -/7 following deposit with the United States Postal Service. Either party may change its address for notice by giving written notice thereof to the other party. (b) Attorneys' Fees, In the event that a party to this Regulatory Agreement brings an action against the other party hereto by reason of the breach of any condition or covenant, representation or warranty in this Regulatory Agreement, or otherwise arising out of this Regulatory Agreement, the prevailing party in such action shall be entitled to recover from the other reasonably attorney's fees to be fixed by the court which shall render a judgment, as well as the costs of suits. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery. (c) Amendments.. This Regulatory Agreement shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Riverside. (d) Severability/Waiver/Tntegration. (1) If any provision of this Regulatory Agreement shall be invalid, illegal or unenforceable, the validity, legality an! enforceability of the remaining portions hereof shall not in any way be affected or impaired thereby. (2) A waiver by either party of the performance of any covenant or condition herein shall not invalidate this Agreement nor shall it be considered a waiver of any other covenants or conditions, nor shall the delay or forbearance by either party in exercising any remedy or right be considered a waiver of, or an estoppel against, the later exercise of such remedy or right. (3) This Agreement contains the entire Agreement between the parties and neither party relies on any warranty or representation not contained in this Agreement. 11. FITTTTRF ENFORCEMENT BY CITY, The parties hereby agree that should the Agency cease to exist as an entity at any time during the term of this Regulatory Agreement, the City of Palm Springs shall have the right to enforce all of the terms and conditions herein, unless the Agency had previously specified another entity to enforce this Regulatory Agreement. IN WITNESS WHEREOF, the Agency and Owner have executed this Regulatory Agreement as of the day and year written below. "OWNER" Date: By: Printed Name: Printed Title: IRV#16862 v1 (10 of 15) Exhibit'T"To Owner Participation Agreement do& C %,lg Date: By: Printed Name: Printed Title: "AGENCY" PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY, a public body corporate and politic Date: By: Executive Director ATTEST: Assistant Secretary APPROVED AS TO FORM: BURKE, WILLIAMS & SORENSEN, LLP Agency Counsel "DEVELOPER" COACHELLA VALLEY HOUSING COALITION, a California Non-profit Corporation Date: By: Printed Name: Printed Title: Date: By: Printed Name: Printed Title: [END OF SIGNATURES) IRV#16862 v1 (I 1 of 15) Exhibit"F"To Owner Participation Agreement C 94 C ,"/ STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose narne(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (SEAL) STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (SEAL) IRV#16862 vt (12 of 15) Exhibit"F"To Owner Participation Agreement ALM 0. - AID STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On before me, personally appeared, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (SEAL) IRV#16862 vl (13 of 15) Exhibit"F To Owner Participation wwAgeement Adu ` raftil ATTACHMENT "I" TO REGULATORY AGREEMENT LEGAL DESCRIPTION OF PROPERTY [TO BE INSERTED] IRV 916862 vI (14 of 15) Exhibit"F"To Owner Participattiio�n Agreement /� pw RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING AN OWNER PARTICIPATION AGREEMENT WITH COACHELLA VALLEY HOUSING COALITION ON A 9-HOME PROJECT IN THE COTTONWOOD/ CHUCKWALLA NEIGHBORHOOD (MERGED PROJECT AREA #1) 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, or rehabilitation of affordable housing to benefit the community; and WHEREAS, the development of a 9-home project in the Cottonwood/Chuckwalla neighborhood will improve the overall housing stock in the area and create affordable housing opportunities for nine families. WHEREAS, the property developers, Coachella Valley Housing Coalition, previously entered an Owner Participation Agreement with the Agency the facilitate the project, and now desire to amend the agreement. NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, as follows: An Owner Participation Agreement with Coachella Valley Housing Coalition, on a nine- home project on Cottonwood and Chuckwalla Roads, is hereby amended. ADOPTED this day of , 2001. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Chairman REVIEWED &APPROVED AS TO FORM