HomeMy WebLinkAbout02139 - HUD RENTAL LOW INCOME HOUSING STANDARD AGREEMENT -*ROVED SY T.r.ii> C CONTRACTOR
ORNEY GENERA•ti 11 ®,�_ F>vv y^t 4. 5 ❑ STATE AGENCY
STATE OF CALIFORNIA R'
STD. z )REV.s/Bn Calif Dept Housing & Comm Dev- `
22nd June to prov financial asstnc for
THIS .AGREEMENT, made and entered into this day of dev & constr new rental hsng
in the State of California, by and between State of California, through its duly elected AGREEMENT �f2139 (Orig 11-15-84,
qualified and acting Res 15286, 10-3-84
TITLE OF OFFICER ACTING FOR STATE AGENCY ___ .._—
Director Department of Housing and Community Development 33-2,HC-145
hereafter called the State,and
City of Palm S rin s
hereafter called the Contractor , 01' F
WITN'ESSETH: 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.)
Authority: The Rental Housing Construction Program ("Program" ) has been established by the
California Legislature in the Department of Housing and Community Development ("Department") for
the purpose of assisting the construction of new rental housing developments and of ensuring that
assisted units in those developments are available on a priority basis to or occupied by
households of low and very low income. Assistance under the Program will be provided by the
Department pursuant to Chapter 9 of Part 2, Division 31 of the Health and Safety Code (Sections
50735 et seq. ) and the regulations adopted thereunder and set out as Subchapter 10, Chapter 7,
Part 1, Title 25 of the California Administrative Code (Section 7800 et seq.) , as amended and in
effect from time to time.
Purpose: To assist the construction of the Development, and to ensure that at least 30 percent
of the units (hereinafter the "assisted units") in the Development shall be made available on a
priority basis to or occupied by households of low and very low income, the Contractor (herein-
after the "Local Finance Entity" or IILFEII) has applied to the Department for financial assis- -
tance from the Program. The Department on June 22 approved application No.5R-16, subject to
the conditions hereinafter expressed and has eterm eE to provide financial assistance pursuant
to the Program.
The provisions on the reverse side hereof constitute a part of this agreement.
IN WITNESS WHEREOF, this agreement has been executed by the parties hereto,upon the date first above written.
STATE OF CALIFORNIA CONTRACTOR
.AGENCY CONTRACTOR IIF OTTER TNAN AN A CORNP..TON.
Department of Housing and Community Development """ E"'"I"'mar, City of Palmm Springs
Y(� ORIZEO SIGNATURE) BY IAUTHORIYE[J SIGN TUREr
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ADDRESS P.D. Box 1716
CONTINUED ON SHEETS EACH BEARING NAME OF CONTRACTOR Palm S rings, CA 102263
AMOUNT ENCUMBERED PROGRAM/CATEGORY (CODE AND TITLE) FUND TITLE
Department of General Services $ 120,000 20 Community Affairs RHCF-933
Use Only UNENCUMBERED BALANCE (OPTIONAL USE)
Ofttt1��J�T�{I'°..t.)�.I ADJ.INCREASING ENCUMBRANCE IT�uIO 24110 CHARTER STATUTE FISCAL YEAR
Generesl5erv^cesrl. rvcaa Sec. 50740
perr?.ioit1200of''oe t"r.r
Health
5e & Safety Code '
ADJ.DECREASING ENCUMBRANCE OBJECT OF EXPENDITURE )CODE AND TITLE)
Arll'o.ir:isVauSheP�<a t2o
O6 4 D
T.9.A NO. 9.R NO
1 hereby certify upon my oum personal knouledgz that budgeted funds are
available for the period and purpose of the expenditure stated abore,
SIGNATURE OF ACCOUNTING OFFICER GATE
1 hereby ce+tif y that all conditions for exemption set forth In State Admin>straf ice.5lcnua!action 1209 have
i �nl i1 Ni' been complied uvth and III is
d ment is ezernpi from rccicu by the Department of Finance
P�C���"li SIGNAT- E OF OFFICER 91GNIN .9 9EH,rL OF THE AGENCY GATE
(�.C-
8. As an inducement to the Department to provide the financial assistance
made available under the Program, the LFE has agreed to enter into this
State Contract, pursuant to Health and Safety Code Section 50745(a) , and
has consented to be regulated and restricted as provided herein.
9. The LFE has entered, or will enter into an agreement with
Doswell Inc. , a California corporation
hereina ter the ponsor , to provide to the Sponsor or approve below
market interest rate (hereinafter "BMIR") financing, or its equivalent,
for the purpose of assisting the Sponsor to acquire certain property
(hereinafter "the Property") described in Exhibit A, attached hereto and
made a part hereof, and to develop, construct and operate on the
Property a multi-unit rental housing development (hereinafter "the
Development") consisting of a 6 bedroom group home for
mentally/developmentally disabl d adults to be situated in the County of
Riverside , State of California.
10. Pursuant to the statutes and regulations governing the Program, the LFE,
the Department and the Sponsor will enter into a Regulatory Agreement
and a Development Agreement regarding the Development and the financial
assistance to be provided therefor. The provisions of those agreements
and of this State Contract shall control the use of Program funds and
other financial assistance to be provided to the Development, to ensure
the fiscal integrity of the Development and the continuing availability
of the assisted units to eligible persons for the period described _
below.
11. Nonassisted Units. All references to and provisions for nonassisted
units in this agreement shall not apply unless this Agreement is amended
to include nonassisted units.
12. Compliance with Law. The LFE agrees that, at all times, its acts
regarding t e eve opment 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 LFE acknowledges that it is
familiar with such applicable statutes, rules and regulations , and that
professional advice is available, as necessary, to enable the LFE to
fully ,comply with such statutes, rules and regulations.
13. Definitions.
(a) Unless the context requires otherwise, the terms used in this
contract shall be governed by the definitions set forth at Section 7802,
as amended and in effect from time to time. All references to code
sections refer to Title 25 of the California Administrative Code 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 Sec-
tion 7834.
(3)
"Attributable to the Assisted Units" means the factor based on the
ratio derived by dividing the gross square footage of the area with the
unit boundaries of the assisted units by the gross square footage of the
area within the unit boundaries of all the units in the Development,
common areas excepted. This factor may be adjusted to account for
unusual or temporary circumstances with the prior written approval of
the Department.
"Development Payments" means payments pursuant to Section 7832 for
development costs as defined in Section 7802.
"Excess Annuity Fund Payments" means the amount by which the annual
payments rom the Annuity Fund Account exceed approved Operating Costs
attributable to the assisted units less the accrued income from rent
from the assisted units, including accrued rents and a prorata share,
approved by the Department, of Project Income derived from sources other
than rents.
"Loan Closing" means the date on which the Sponsor executes, and
Department accepts, the note and deed of trust evidencing the financial
assistance provided herein as required by this Contract.
"Operatin Costs" shall have the meaning set forth in Section
7834 d , as amended and in effect from time to time.
"Project Income" means all income, from whatever sources, generated by the Development, including dwelling units rents, any other duly auth-
orized tenant charges, commercial rents and net income from laundry room
and vending machine operations and similar sources. Any and all rents
accruing to the Sponsor from occupied units shall be included as Project
Income.
14. Assisted Units.
(a) The LFE shall ensure that the Development shall contain the number
and size of assisted and unassisted units specified in Exhibit B,
attached hereto and made part hereof. The Sponsor shall ensure that
only those rents described below shall be charged to occupants of
assisted units, subject to rent adjustments in accordance with the
procedures set forth below.
(b) The LFE shall ensure that the program assistance to be provided
under this Contract -- including any and all present and future payments
from the Program's accounts -- shall be used to ensure that each and
every assisted unit remain available on a priority basis to, or occupied
by, eligible households at affordable rents for a period of 30 years or
the term of the BMIR financing, if any, provided by the LFE, whichever
is greater. The number of assisted units to be available on a priority
basis to or occupied by very low income households and the number of
RHCP/01-3.1 (4) (7/17/84)
assisted units reserved for elderly or handicapped households, if any,
shall be as set forth in Exhibit B.
(c) The number of assisted units in the Development may be reduced only
where all of the following conditions are met:
(i) The reduction is approved by both the LFE and the Department,
and
(ii ) Annuity Funds Payments or other Program payments cannot pro-
vide assistance to maintain the fiscal integrity of the housing
development. The determination of the need for a reduction in the
number of assisted units shall be at the sole discretion of the
Department.
Any reduction in the number of assisted units pursuant to this paragraph
shall be reviewed, at least annually, to determine its continued
necessity. Upon such review the Department or LFE may require that the
number of assisted units be increased to any number up to and including
the number of assisted units specified in Exhibit B.
15. Affordable Rents and Rent Adjustments
(a) The LFE shall ensure that only affordable rents and utility
allowances, if any, in accordance with the requirements of Section
7806, as amended and in effect from time to time shall be charged for
tenants of assisted units.
(b) Rents and utility allowances, if any, in assisted units shall be
adjusted as necessary in accordance with the requirements of Section
7864(a) , as amended and in effect from time to time.
16. Financial Assistance For Development Costs
(a) The Department agrees to provide or approve the financial assistance
to the LFE, in the form of Development Payments for the development and
construction of the Development, in the amount and according to the
manner, timing and other terms specified in full in Exhibit C, attached
hereto and made a part hereof. The Department is not required to
disburse or provide funds to the LFE until the Regulatory Agreement and
the Development Agreement referred to herein have received the approval
of the Department. In addition, all the conditions set forth in Exhibit
C shall be met to the satisfaction of the Department prior to loan
closing.
(b) The LFE agrees to provide the amount set forth in Exhibit C in the
form of a loan secured by a note and deed of trust to the Sponsor in
accordance with the terms of Exhibit C, and exclusively for the purposes
designated therein. The LFE is not obliged to provide Development
Payments except as specified in Exhibit C, and except as may be provided
for in such other documents or agreements, including those relating to
RHCP/01-3.1 (5) (7/17/84)
BMIR financing or its equivalent, as may be entered into from time to
time by the LFE and the Sponsor.
(c) The LFE agrees to cooperate with the Sponsor in applying to the
Department for such additional financial assistance from the Program as
may be necessary and available to ensure the Development's financial
integrity.
17. Disbursement of Development Payment Funds of LFE. The LFE shall deposit
t e eve opment ayments receivefrom the DiTpartment under this Program
into (a) special project account(s). Disbursements to the Sponsor shall
be made in accordance with Exhibit C of this Contract. Pending such
disbursements to the Sponsor, the LFE shall invest the funds, in
accordance with the terms of Exhibit C.
18. Annuity Fund Payments
(a) The Department shall provide financial assistance from the Annuity
Fund Account to subsidize approved annual Operating Costs of the Devel-
opment attributable to the assisted units. Prior to the completion of
the Development, the LFE shall submit to the Department a proposed oper-
ating budget, including projected Operating Costs attributable to the
assisted units and projected income from rents from the assisted units,
including accrued rents and Project Income derived from sources other
than rents, for the fiscal year, or portion thereof, immediately
following initial occupancy of the Development. The annual operating -
budget shall be deemed to be the operating budget submitted by the
Contractor to the Department together with such modifications,
additions, or deletions as may be directed by the Department. For
subsequent fiscal years, the LFE shall submit reports and budgets in
accordance with Paragraphs 26 and 27, respectively, of this Contract.
(b) On the basis of the approved initial and subsequent budgets submit-
ted by the LFE, the Department shall make payments from the Annuity Fund
Account for the following fiscal year in the amount of the difference
between the approved projected Operating Costs attributable to the
assisted units, and the projected income from the rents from assisted
units, including accrued rents of the Project Income derived from
sources other than rents, subject to the requirements of subparagraph
(c) below. Such payments shall be made in the amounts specified in the
payment' schedule attached as Exhibit D, and deposited in such accounts
and in such financial institutions as the Department may direct. The
total payments indicated in Exhibit D shall not exceed the amount
specified in the approved operating budget, including such amendments to
the budget as may be approved by the Department pursuant to the
Regulatory Agreement. Such payments shall be utilized by the LFE only
for the payment of approved Operating Costs attributable to assisted
units in the Development. The LFE shall disburse Annuity Fund Payments
to the Sponsor in accordance with the terms of the Regulatory Agreement
referred to herein.
(c) At the written request of the LFE, disbursements may be made
directly to the Sponsor pursuant to Section 7846(c) of the Program
Regulations for application and use in accordance with this Agreement
and the Regulatory Agreement.
RHCP/01-3.1 (7/17/84)
(6)
(d) Payments under this Agreement may be terminated or withheld by the
Department in the following circumstances:
(1) the termination of the Regulatory Agreement or the State
Contract in accordance with the terms thereof;
(2) failure of the LFE to fulfill its obligations under the
Regulatory Agreement or the State Contract;
(3) failure of the LFE to ensure that the Development is operated
and maintained in substantial conformity with (1) the approved
management plan required by the Regulatory Agreement as updated
from time to time, or (2) the Regulatory Agreement.
(e) The amount originally encumbered by this Contract for purposes of
Annuity Fund Payments is $ -0- . This Contract shall be amended to
reflect the amounts in the approved initial operating budget and shall
be amended annually thereafter for succeeding fiscal years.
(f) The LFE further agrees to provide the Department with an annual
audit as required by the Regulatory Agreement, and provide the
Department access to records regarding the development at all times
during the contract period and for three years following the termination
of the Regulatory Agreement. The reasonable cost of the audit shall be
considered an Operating Cost and shall be identified as a line item in
the approved annual budget.
(g) On the basis of the annual financial report submitted to the
Department pursuant to paragraph 26 of this Contract, the Department
shall determine the amount of Excess Annuity Fund Payments, if any,
received by the LFE in the preceeding fiscal year. The LFE agrees to
abide by the directives of the Department and applicable terms of the
Regulatory Agreement with respect to the disposition of such funds. The
directives may include, but are not limited to, direct reimbursement of
the funds to the Department or the reduction of future Annuity Fund
Payments.
(h) In the event that the Department determines that insufficient funds
are available in the Annuity Fund Account to pay the entire amount
described in subparagraph (b), the Department and the LFE agree to make
all reasonable efforts to secure funds from other sources, including the
Management Reserve Account. If the Department determines that funds
from other sources are not available, it may authorize the reduction of
the number of assisted units in the Development to the extent necessary
to maintain the fiscal integrity of the Development. Rental income from
such units shall be applied to Operating Costs and shall supplement
Annuity Fund Payments. Any reduction in assisted units shall be
reviewed by the Department at least annually as to its continued
necessity.
(i) In the event that income from the rents from assisted units,
including accrued rents and a prorata share, approved by the Department,
[7]
including accrued rents and Project Income derived from sources other
than rents, exceeds actual approved Operating Costs attributable to the
assisted units in a given fiscal year, the LFE agrees to return the
difference to the Department within thirty (30) days after the
Department's approval of the Annual Report required by paragraph 26 of
this Contract, subject to applicable terms of the Regulatory Agreement.
11 Mana ement Reserve Account. In order to maintain affordable rents in
the Deve opment's assisted units, the LFE may apply to the Department
for funds from the Management Reserve Account. Application shall be
made, and any management reserve account payments made to the LFE shall
be used in accordance with the Program Regulations, in particular,
Section 7836, as amended and in effect from time to time.
20. Rents for Non-Assisted Units.
(a) The LFE may fix and alter from time to time, a schedule of rents to
be charged for non-assisted units in the Development as may be necessary
to provide tenants of such units with affordable rents consistent with
the financial integrity of the Development. Such a rent schedule
shall be subject to approval by the Department prior to the
disbursement of any funds or financial assistance under this Contract.
(b) Where the LFE has established such a rent schedule for non-assisted
units, the LFE shall ensure that no rent increases shall take effect
without the approval of the LFE. Such rent increases shall be
permitted only where the Sponsor affirmatively demonstrates to the
reasonable satisfaction of the LFE and the Department that such rent
increases are necessary to defray increased operating costs or to avoid
jeopardizing the fiscal integrity of the Development.
21. Regulatory Agreement.
(a) At or prior to loan closing, the Sponsor, the Department and the
LFE shall execute a Regulatory Agreement which shall contain, at a
minimum, such terms as are required by the Program Regulations,
particularly Section 7822.
(b) The LFE shall ensure, through enforcement of the Regulatory Agree-
ment, oh otherwise, that assisted units remain available to or occupied
by eligible families, as specified in Exhibit 8, at affordable rents for
a period of 30 years from the date the Development is certified for
occupancy.
(c) The LFE shall fulfill its duties and responsiblities with respect
to the administration and monitoring of the Development as set forth in
this Contract and the Regulatory Agreement. In the event that there is
a breach or default by the Sponsor of any terms of the Regulatory Agree-
ment, the LFE shall notify the Department, within fifteen (15) days
after the LFE obtains knowledge of such breach, in writing, of (1) the
nature of such breach, and (2) the steps being undertaken by the LFE to
remedy such breach. _
RHCP/01-3.1 (8) (7/17/84)
(d) The LFE hereby assigns to the Department all of its rights to
enforce the provisions of the Regulatory Agreement for the Development,
provided that this assignment shall be of no force or effect unless and
until the Department, at its sole discretion, determines that the LFE
refuses, fails, or is otherwise unable to enforce such provisions. The
Department shall notify the LFE, in writing, of its determination to
effect this assignment, specifying the reasons therefor, at least fif-
teen (15) days prior to the Department undertaking any action to enforce
the Regulatory Agreement.
22. Sponsor's Return on Investment. Sponsor will not be entitled to any
return or distribution based on equity in the Development.
23. Development Agreement.
(a) The LFE, the Department and the Sponsor have entered or shall enter
into a Development Agreement regarding the acquisition of the Property
and the development and construction of the Development thereon. The
Development Agreement shall contain at a minimum such terms as are
required by the Program Regulations.
(b) Through compliance with and enforcement of the Development
Agreement, the LFE shall supervise the design and construction of the
Development.
(c) The LFE hereby assigns to the Department all its rights to enforce the provisions of the Development Agreement in the event as determined
by the Department at its sole discretion that the LFE fails, refuses or
is otherwise unable to enforce those provisions. The Development
Agreement shall provide for an express assignment the LFE's rights
thereunder to the Department in said event. The Department shall notify
the LFE, in writing, of its determination to effect assignment,
specifying the reasons therefor, at least fifteen (15) days prior to the
Department undertaking any action to enforce the Development Agreement.
24. BMIR Ili cin Document(s). The BMIR financing or its equivalent, to be
provide or approved by the LFE for the Sponsor shall be 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 LFE agrees 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 State Contract shall be
governed by the terms of this State Contract, without otherwise
rendering such other notes, deeds of trust, documents or agreements void
or invalid. The LFE shall notify the Department, in writing, of any
breach by the Sponsor of its obligations under any agreements, notes or
deeds of trust with respect to the BMIR financing or its equivalent.
Such notices shall be given within 15 days after the occurrence of such
breach.
25. Other A reements. The LFE shall not enter into any other agreements
inc uding, but not limited to, Regulatory and Development agreements, or
(7/17/34)
RHCP/o1-3.1 (9)
amendments thereto, with regard to the Development, without the prior
written approval of the Department.
26. Annual Report. The LFE shall file with the Department an annual report
in a form approved by the Department no later than 90 days after the end
of each fiscal year established for the Development. A separate report
shall be filed for each development for which the LFE is responsible
under the Program. The report shall contain such information with
respect to all units in the Development as the Department may then
require, including, but not limited to, the following:
(a) The fiscal condition of the Development, including an audited
financial statement indicating surplus or deficits in operating
accounts, a detailed itemized listing of income and expenses, and the
amounts of any fiscal reserves;
(b) the substantial physical defects in the rental housing development,
including a description of any major repair or maintenance work
undertaken in the reporting year;
(c) the occupancy of the rental housing development indicating
(1) the number and sizes of assisted units available to and/or
actually occupied by eligible households;
(2) the distribution of incomes of eligible households; and -
(3) the ethnic groups to which eligible households belong and the
distribution of income of households on waiting lists for assisted
units; and
(4) general management performance, including tenants relations
and other relevant information.
in addition to the annual report required above, the LFE shall file with
the Department an operating report provided by the Sponsor and
including such information as the Department may reasonably require and
submitted at intervals as directed by the Department.
27. Annual Budget.
(a) The LFE shall submit to the Department no later than 90 days before
the beginning of each fiscal year established for the Development, a
proposed budget, in a form approved by the Department, for each develop-
ment for which the LFE is responsible. The budget shall cover the
development's next fiscal year and shall include such information with
respect to all units in the Development for that period as the Depart-
ment may then require, including but not limited to the Development 's
projected rental income, other income, operating cost and utility cost.
(b) The proposed annual budget shall be accompanied by a request for
payments from the Annuity Fund Account, and/or an application for
Management Reserve Funds, all as described in paragraphs 18 and 19
RHCP/01-3.1 (10) (7/17/84)
•
above, respectively, if, in the LFE's opinion, such funds are required
to maintain the fiscal integrity of the development.
(c) Unless the Regulatory Agreement for the Development states other-
wise, the Development's fiscal year shall run from ,lulu 1 through
June 30
11, Mana ement Plan. The LFE shall submit to the Department a Management
P an for the Development in accordance with Section 7868(d) , as amended
and in effect from time to time. Said Management Plan shall be
sufficient to ensure operation and management of the Development in
accordance with the Regulatory Agreement and the Program Regulations.
Said Management Plan shall be revised and updated as necessary in
conjunction with the annual budget submitted to the Department pursuant
to Paragraph 27 of this Contract.
29. Term of Contract. The term of this Contract shall commence from the
date of Department approval and shall continue for the lesser of thirty-
five (35) years from the date of approval of this Contract or thirty
(30) years from the date that the Development is certified for
occupancy, unless terminated sooner in accordance with the terms hereof.
30. Prevailing Wage Rate. The LFE shall ensure, through enforcement of the
Development Agreement, that the prevailing wage rate is paid for labor
utilized in the construction of the Development pursuant to all
requirements, methods and definitions for prevailing wage rate payment
on public works construction found at Chapter 1, Part 7, Division 2 of
the Labor Code (Section 1720, et seg.) , as amended and in effect from
time to time.
31. Amendments. No amendment or other alteration of the terms of this Con-
tract shaTl be valid unless it is made in accordance with the provisions
set forth in_Section 7852; is in writing and signed by both parties
hereto. Neither party shall be bound by any oral representation or oral
agreement not incorporated herein.
32. Termination for Cause. The Department may terminate this Contract and
refuse to make any payment hereunder should the LFE fail to perform any
of the covenants of this Contract at the time and in the manner provided
herein. In the event of such termination, the Department, in its sole
discretion, may continue to provide Program assistance to the Develop-
ment in any manner it deems proper.
33. Partial Invalidit If any provision of this Contract shall be deemed
invalid,i e�r 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.
34. 8indin on Successors. This Contract shall bind, and the benefits
thereof shal inure to, the respective parties hereto, their legal
representatives, executors, administrators, successors in the office or
interest, and assigns; provided, however that the LFE may not assign
this Contract or any of its obligations hereunder, voluntarily or by
operation of law, without the prior approval of the Department,
RHCP/01-3.1 (11 ) (7117/84)
35. Gender. The use of the plural herein shall include the singular, use of
tie singular shall include the plural, and the use of one gender shall
be deemed to include all genders.
36. Recording Agreement. This Contract shall be acknowledged by each of the
parties and recorded, or recorded by reference,, in the official records
of the county in which the Development is situated, at the LFE's
expense. The recorded contract shall be indexed in the grantor index to
the name of the Sponsor and in the grantee index to the State of
California.
37. Lien. The recorded or referenced State Contract shall constitute a lien
on the Development for the performance of the covenants stated herein.
The term of the lien shall be identical to the term of this State
Contract, set forth in Paragraph 29, above.
38. Remedies. In the event of the violation or breach of any of the
provisions of this Contract, the Department may give written notice
thereof to the LFE and, if such violation is not corrected to the
satisfaction of the Department within 30 days after the date such notice
is mailed, the Department may, without further prior notice, declare in
writing a default under this Contract effective on the date of such
declaration of default and upon any such declaration of default into the
Department may:
(a) Assume all the powers, rights, duties and obligations of the LFE
under the Regulatory Agreement and undertake any actions necessary for
the enforcement of the Regulatory Agreement.
(b) Apply to any court of competent jurisdiction for specific perfor-
mance of this Contract; for an injunction against any violation or
breach by the LFE of this Contract; for the appointment of a receiver to
take over the duties and responsibilities of the LFE under the
Regulatory Agreement; or for such other relief as may be appropriate, it
being agreed by the LFE that the injury to the Department arising from a
default under any of the terms of this contract would be irreparable and
that it would be extremely difficult to ascertain the amount of
compensation to the Department which would afford adequate relief in
light of the purposes and policies of the Program.
39. Election of Remedies. The remedies of the Department hereunder or under
any other instrument providing for or evidencing the financial assis-
tance provided herein are cumulative. The exercise of one or more such
remedies shall not be deemed an election of remedies and shall not
preclude the exercise by the Department of any one or more of its other
remedies.
40. Waiver. No wavier by the Department of any breach of or default under
M'_ State Contract shall be deemed a waiver of any other or subsequent
breach thereof or default hereunder.
41. Captions. The captions used in this Contract are inserted only as a
matter of convenience and reference and in no way define, limit or
describe the scope or the intent of this Contract.
RHCP/01-3.1 (12) (7/17/84)
42. Governing Law. This Contract shall be construed in accordance with and
governed by the laws of the State of California.
43. 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, commmunicated a different address
to the other party hereto:
Rental Housing Construction Program
Department of Housing and Community Development
921 Tenth Street
Sacramento, CA 95814
44. Nondiscrimination Clause. Standard Form 17B, Nondiscrimination Clause
is attached hereto as Attachment E and made a part of this agreement.
RHCP/01-3.1 (13) (7/17/84)
City of Palm Springs
33-RHC-145
EXHIBIT A
Legal Description
Lot 33, PALM SPRIAS GATE161AY ESTATES, UNIT NO. 1 , as shown
by Hap on file in Book 39, pages 58 and 59 of Maps, Records
of Riverside County, California.
RHCP/01-3.1 (7/17/84)
City o•alm Springs
03-RFC-145
EXHIBIT B
Unit Description
A G unit group home is to be occupied by very-low income
ment a y/developmentally disabled tenants and resident assistant.
This development consists of a 6 bedroom congregate facility. For
purposes of the RHCP, each bedroom a congregate facility serves as a
living unit. For the purposes of determining income eligibility for this
facility, each individual is considered a household.
RHCP/01-3.1 (7/17/84)
City of * Springs
83-RHC-145
Page 1 of 2
EXHIBIT "C"
Development Payments
1. The Department shall provide Development Payments in the total amount of
120,000 from the Department's
Development Payments Account for the payment of development costs
approved by the Department for the proposed Development. The funds will
be provided in a form of a no interest, deferred payment loan to be
evidenced by a note and secured by a deed of trust on the Property.
2. The total amount of the loan shall be set forth in the Development
Agreement, and shall not exceed either the sum of all approved
development costs or exceed the sum of Development Payments stated
above.
3. The timing, method and manner of disbursement of the funds authorized
herein shall be set forth in the Development Agreement. All disburse-
ments of funds shall be deposited by the LFE in an account and in a
financial institution, both approved by the Department.
4. The Development Agreement shall authorize the Department to disburse an
amount not to exceed fifteen percent (15%) of the total loan amount, in
advance to pay initial or start-up development costs approved by the
Department. The exact amount of such initial disbursement, the allow-
able development costs to be paid therefrom and the method of payments
shall be set forth in the Development Agreement.
5. The balance of the loan amount shall be disbursed in accordance with the
following:
a) The Sponsor shall , on a regular basis, submit invoices for payment
of allowable development costs on a form approved by the Department.
Such invoices shall be accompanied by such supporting evidence and
documentation as the Department may require. The Department shall
make payment after its approval of the submitted invoices. The
exact timing and terms of the disbursement procedures shall be set
forth in the Development Agreement.
b) The Department shall retain ten percent (10%) of the total loan
amount for final payment of approved development costs after (1) the
development is certified for occupancy, (2) completion of an
RHCP/01-3.1 _ (7/17/84)
City .Palm Springs
o3-RHC-145
Page 2 of 2
approved certified cost audit, and (3) the release of all liens,
assessments and encumberances against the Development to the
satisfaction of the Department. The exact timing and terms of such
final payment shall be set forth in the Development Agreement.
6. The following contracts and legal agreements and other program
documents shall be completed and approved by the Department before
Department loan closing:
-(a) A State Contract between the Applicant and the Department.
(b) A Regulatory Agreement between the Department, Applicant and
Sponsor.
(c) A Development Agreement between the Department, Applicant and
Sponsor.
(d) A Promissory Note executed by the Sponsor in the amount of the
Development Payments.
(e) A deed of trust executed by the Sponsor with the Department as
beneficiary in the amount of the development payments which may be
subordinated to the deed of trust securing the BMIR financing.
(f) A construction contract executed by the Sponsor and construction
contractor.
(g) The final architectural drawings and specifications.
(h) The first year operational budget and management plan including a
description of and evidence of funding for the program supportive
services to be provided for the handicapped tenants during the
ensuing year.
(i ) Any additional agreements that the Department deems necessary.
7. The specific amount of the RHCP development payment at the time of
loan closing will be determined by the Department based on review of
final specifications and costs, but in no event shall it exceed
$ 120,000
8. Loan: closing shall take place on or before June 30, 1985.
9. Construction shall be completed within twelve (12) months of loan
closing.
1D. All documents relating to the below market interest rate financing
or its equivalent shall be subject to the review and approval of the
Department prior to loan closing.
11. The amount of development payments authorized by the State Contract
will not be increased, nor the number of units assisted be decreased
to accommodate increased project costs. All cost increases must be
borne by either the Sponsor or the Applicant.
RHCP/01-3.1 (7/17/84)
• City of Palm Springs
83-RU-145
Exhibit D
Rental Housing Construction Program Annuity Fund
Payment Schedule
Payment shall be made in accordance with the amounts and timing specified in
the Budget as approved by the Department and as set forth in Paragraph 18 of
this Contract.
RHCP/01-3.1 (7/17/84)
• of of Palm Springs
o3-�HC-145
EXHIBIT E
NONDISCRIMINATION CLAUSE
(OCP - 2)
I . During the performance of this contract, the recipient,
contractor and its subcontractors shall not deny the
contract's benefits to any person on the basis of religion,
color, ethnic group identification, sex, age, physical or
mental disability, nor shall they discriminate unlawfully
a ainst any employee or applicant for employment because
o race, religion, color, national origin, ancestry,
Physical handicap, mental disability, medical condition,
marital status, age or sex, Contractor shall insure that
the evaluation and treatment of employees and applicants
for employment are free of such discrimination ,
2. Contractor shall comply with the provisions of the Fair
Employment and Housing Act (Government Code, Section
12900 et seq. )., the regulations promulgated thereunder
(California Administrative Code, Title 2, Section 7285,0
et seq . ), the provisions of Article 9 , 5, Chapter 1, Part 1,
Division 3, Title 2 of the Government Code (Government
Code, Sections 11135-11139,5) and the regulations or stand-
ards adopted by the awarding State agency to implement such
article,
3. Recipient, contractor and its subcontractors shall give
written notice of their obligations under this clause to
labor organizations with which they have a collective
bargaining or other agreement ,
4. The contractor shall include the nondiscrimination and
compliance provisions of this clause in all subcontracts
to perform work under the contract .
STD. 178 (NEW 5-83