CV Land/Afford Housing 93-�� ORIGINAL
AFFORDABLE HOUSING AGREEMENT
BY AND AMONG
THE LA QUINTA REDEVELOPMENT AGENCY,
AND
COACHELLA VALLEY LAND,
AND
WILLIAM J. CUSACK,
AGENCY
PARTICIPANT
OWNER
TABLE OF CONTENTS
100. SUBJECT OF AGREEMENT
101. Purpose of Agreement
102. Defin_tions
103. The Agency
104. The Participant
105. Owner
106. Prohibition Against Change in Ownership, Management
and Control of Participant and Owner and
Prohibition Against Transfer of the Sites
107. Representations by the Participant and Owner
A. Participant Representations
B. Owner Representations
200. SITE CONTROL
201. Ownership of the Sites
202. Condition of Title
203. Condition of the Sites and Site Improvements
300. DISPOSITION OF THE SITES FOR AFFORDABLE HOUSING
301. Sale of Ownership Properties
302. Provision of Applicable Ownership Assistance
303. Rent of Rental Properties; Purchase Option
304. Provision of Applicable Rental Assistance
305. Maintenance of the Rental Properties
306. Indemnity, Bodily Injury and Property Damage
Insurance
307. City and Other Governmental Agency Permits
308. Rights of Access
309. Local, State and Federal Laws
310. Anti -Discrimination
311. Taxes and Assessments
312. Reporting Requirement
313. Conditions Precedent to Ownership Assistance
314. Conditions Precedent to Rental Assistance
400. USE OF THE SITES
401. Affordable Housing
A.
Commitment of Units for Affordable Housing
B.
Determination of Purchase-Price-
C.
Approval of Initial Purchasers
D.
Junior Trust Deed Loans
E.
Rental Units
F.
Subordination
G.
Covenants to Remain Affordable
H.
Marketing
- i -
402. Use in Accordance with Redevelopment Plan;
Nondiscrimination
403. Effect of Violation of the Terms and Provisions of
this Agreement After Completion of Construction
404. Maintenance of the Ownership Properties
405. Best Efforts to Sell Ownership Properties
500. DEFAULTS AND REMEDIES
501. Defaults -- General
502. Institution of Legal Actions
503. Applicable Law
504. Acceptance of Service of Process
505. Rights and Remedies Are Cumulative
506. Inaction Not a Waiver of Default
507. Damages
508. Specific Performance
509. Termination by the Participant and Owner
510. Termination by the Agency
511. Reentry and Revesting of Title in the Agency After
the Conveyances
600. GENERAL PROVISIONS
601. Notices, Demands and Communications Among the
Parties
602. Conflicts of Interest
603. Time of the Essence
604. Non -Liability of Officials and Employees of the
Agency
605. Obligations Joint and Several
606. Entire Agreement, Waivers
607. Executive Director to Act on Behalf of Agency
700. TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
ATTACHMENTS
Attacr:,ent
No.
1 -
Description of Ownership Properties
Attachment
No.
2 -
Declaration of Rental Properties
Attachment
No.
3 -
Buyer/Agency Note
Attachment
No.
4 -
Resale Restriction Agreement and Option to
Purchase
Attachment
No.
5 -
Promissory Note
Attachment
No.
6 -
Rental Properties Deed of Trust
Attachment
No.
7 -
Maintenance Agreement
Attac:ment
No.
8 -
Agency Deed of Trust
Attachment
No.
9 -
Property Covenants
Attachment
No.
10 -
Income Verification
Attachment
No.
11 -
Certification of Continuing Program
Compliance
Attachment
No.
12 -
Subordination Agreement
Attachment
No.
13 -
Buyer Disclosure
Attachment
No.
14 -
Memorandum of Agreement
Attachment
No.
15 -
Table of Base Values
Attachment
No.
16 -
Grant Deed
Attachment
No.
17 -
Spousal Waiver
AFFORDABLE HOUSING AGREEMENT
THIS AFFORDABLE HOUSING AGREEMENT (the "Agreement") is
entered into by and among the LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic (the "Agency"), the
COACHELLA VALLEY LAND, a Limited Partnership (the
"Participant"), and WILLIAM J. CUSACK, a married man
("Owner"). The Agency, the Participant, and Owner hereby agree
as follows:
100. SUBJECT OF AGREEMENT
101. Purpose of Agreement
A. The Agency is required by California Health and
Safety Code Section 33334.2, et ,seg., to expend a certain
percentage of property taxes allocated to it for the purpose of
increasing, improving and preserving the City of La Quinta's
supply of very low-, low- and moderate -income housing available
at an affordable housing cost.
B. The activities contemplated by this Agreement
consist of two components, a "for -sale" or ownership component
and a rental component.
C. Under the "for -sale" or ownership component,
Participant and the Owner will sell ten (10) existing units to
households having incomes not in excess of qualifying incomes
for affordable housing subject to long-term affordability
covenants. It is the intention of the parties that such
ownership units shall be available at affordable housing cost
throughout the Affordability Period, as hereinafter defined.
The Participant will obtain financing commitments for
ninety-five percent (95%) first trust deed financing from local
private lending institutions. It is contemplated that the
loans will be accomplished using documentation acceptable to
Fannie Mae. Subject to the satisfaction of conditions
precedent to the obligations of the Agency, and provided that
the same is acceptable to Fannie Mae, the Agency is to provide
loans of up to seven percent (7%) of the purchase price or
Seven Thousand Dollars ($7,000), whichever is less, to
qualifying homebuyers, covering the balance of the purchase
price remaining after the first trust deed financing (with the
purchase price of each unit not to exceed the amount for each
unit designated as "Maximum Purchase Price" as defined in
Section 102, below, ("Maximum Purchase Price") and closing
costs. The total amount of Agency assistance to be made
available with respect to the ownership component shall not
exceed Seventy Thousand Dollars ($70,000), as all such
assistance is aggregated.
D. Under the rental component, the Participant and
Owner will commit twenty (20) of the Rental Properties owned by
one of them for use solely for affordable housing to households
which qualify by their incomes for Section 8 Certificates, and
which may hold such Section 8 Certificates, as provided in
Section 303, below. The rental units are required to remain
available as affordable units for a period of five (5) years,
during which period of time the Agency shall have the option to
purchase one (1) or more of the rental properties at a price to
be determined pursuant to a formula set forth in this
Agreement. The Participant and Owner shall be responsible for
the maintenance of the rental units until they are sold
pursuant to the Agreement or until the Agency elects to make
other arrangements for the maintenance of the rental units
pursuant to this Agreement.
Subject to the satisfaction of conditions precedent to
the obligations of the Agency, the Agency is to loan to the
Participant the amount of Twenty Thousand Dollars ($20,000) per
rental unit (and not to exceed $400,000 as all rental units are
aggregated). The loan(s) by the Agency would bear interest on
terms set forth in the Agreement. The Agency loan(s) would be
secured by a junior deed of trust on each of the Rental
Properties as more particularly set forth in Section 304 of
this Agreement. Payment of the loan(s) would be due upon the
sale of a rental unit and as otherwise set forth in the
Agreement.
E. The activities contemplated by this Agreement are
of benefit to Redevelopment Project No. 1 (the La Quinta
Redevelopment Project) and Project No. 2 of the City of
La Quinta.
102. Definitions
"Affordability Period" means, as to each Ownership
Property sold pursuant to this Agreement, the period commencing
with the sale of such Ownership Property and ending on June 15,
2029, except that, in the event purchase money financing is
provided to a Qualifying Buyer by Fannie Mae or an
institutional lender for marketing to Fannie Mae, then, as
further provided in Section 401F of this Agreement, the
Affordability Period shall be deemed to end at the time
provided therefor in the Resale Restriction Agreement and
Option to Purchase as recorded in respect to such Ownership
Property.
"Affordable Housing Cost" has the meaning as set forth
in Section 50052.5(b) of the Health and Safety Code as in
effect as of the date of approval of this Agreement by the
Agency.
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"Affordable Rent" has the meaning as set forth in
Section 50053 of the Health and Safety Code as in effect as of
the date of approval of this Agreement by the Agency.
"Agency" means the La Ouinta Redevelopment Agency, a
public body, corporate and politic.
"Agency Assistance" means the Applicable Ownership
Assistance and the Applicable Rental Assistance.
"Agency Ownership Escrow Documents" means, as to each
sale or buyer receiving Applicable Ownership Assistance
pursuant to this Agreement, all of the following: (i) the
Resale Restriction Agreement and Option to Purchase, (ii) the
Property Covenants (including without limitation the
acknowledgment to such Property Covenants to be executed by the
Buyer), (iii) the Buyer/Agency Note, (iv) the Buyer Disclosure,
(v) the Agency Deed of Trust, and (vi) the Grant Deed.
"Applicable Median Income" means the median income
applicable to Riverside County as published from time to time
by the United States Department of Housing and Urban
Development, or if such determinations are discontinued, by the
Department of Housing and Community Development of the State of
California all as more particularly set forth in Section
50093(c) of the Health and Safety Code.
"Applicable Ownership Assistance" means an amount
equal to the lesser of (i) Seven Thousand Dollars ($7,000) or
(ii) seven percent (7%) of the purchase price of the Ownership
Unit including in the purchase price, for purposes of this
calculation, closing costs allowable to the Buyer, pursuant to
the terms more particularly set forth in Section 301 of this
Agreement.
"Applicable Required Period" is defined in Section 301
of this Agreement.
"Buyer/Agency Note" means a promissory note
substantially in the form of Attachment No. 3 to this Agreement.
"Buyer Disclosure" means Attachment No. 13 to this
Agreement.
"Certification of Income" means Exhibit B to the
Property Covenants (Attachment No. 9).
"Conditions Precedent to Ownership Assistance" are set
forth in Section 313 of this Agreement.
"Conditions Precedent to Rental Assistance" are set
forth in Section 314 of this Agreement.
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4331Q/2338/37 -3-
"Designated Ownership Properties" means ten (10) of
those parcels enumerated in Attachment No. 1 to this Agreement
as the Ownership Properties. The Participant shall from time
to time designate which ten (10) of those Ownership Properties
are to constitute the Designated Ownership Properties.
"Exceptions of Title" means all exceptions, clouds,
encumbrances, limitations, liens, deeds of trust, easements, or
covenants of record as to the Sites or any portion thereof.
"Existing Occupant" means a household which, as of the
approval of this Agreement by the Agency, occupies an Existing
Unit.
"Existing Units" means all buildings intended for or
used for human habitation physically present on the Sites as of
the approval of this Agreement by the Agency.
"Grant Deed" means to grant deed substantially in the
form of Attachment No. 16 to this Agreement.
"Maintenance Agreement" means Attachment No. 7 to this
Agreement.
"Maximum Purchase Price" means One Hundred Three
Thousand Five Hundred Dollars ($103,500.00).
"Memorandum of Agreement" means Attachment No. 14,
which shall be recorded with respect to the Rental Properties
pursuant to Section 314.
"Owner" means William J. Cusack, a married man.
"Owner Properties" means those Ownership Properties
and Rental Properties title to which is held by Owner according
to the official land records of the County Recorder of the
County of Riverside.
"Owners" means the Participant and Owner, collectively.
"Ownership Properties" means those parcels so
designated in Attachment No. 1 to this Agreement.
"Participant" means Coachella Valley Land, a Limited
Partnership.
"Permitted Exceptions" means those certain Exceptions
to Title as the Agency Executive Director may hereafter
determine, at his sole discretion, to be allowable to remain of
record and to not preclude provision of Agency Assistance.
"Qualified Project Period" means: (i) as to the
Rental Properties, the Rental Period, and (ii) as to the
Ownership Properties, the Affordability Period.
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"Qualifying Buyer" means a household having an income
of not greater than one hundred twenty percent (120%) of the
areawide median income, as determined by the Agency pursuant to
Section 50052.5 of the California Health and Safety Code.
"Qualifying Renter" means a household having an income
of not greater than fifty percent (50%) of the areawide median
income, as determined by the Agency pursuant to Section 50053
of the California Health and Safety Code.
"Rental Period" means the five-year period commencing
with the date of approval of this Agreement by the Agency.
"Rental Properties" means those parcels so designated
in Attachment No. 2 to this Agreement.
"Rental Properties Deed of Trust" means Attachment
No. 6 to this Agreement.
"Sale Period" is defined in Section 301 of this
Agreement.
"Site Improvements" means all improvements of any kind
on or to the Sites, including without limitation, buildings
designed for human occupancy, garages, carports, other
structures, landscaping, and any other physical improvements of
any kind.
"Sites" means the Rental Properties and the Ownership
Properties.
"Spousal Waiver" means Attachment No. 17 to this
Agreement.
"Table of Base Values" means Attachment No. 15 to this
Agreement.
103. The Agency
The Agency is a public body, corporate and
politic, exercising governmental functions and powers and
organized and existing under Chapter 2 of the Community
Redevelopment Law of the State of California. The principal
office of the Agency is located at 78-105 Calle Estado, P.O.
Box 1504, La Quinta, California 92253.
"Agency," as used in this Agreement, includes the
La Ouinta Redevelopment Agency and any and all assignees of or
successors to its rights, powers and responsibilities.
Whenever the Agreement refers to approvals or other actions to
be taken by the Agency, such approval or other action may be
performed by the Executive Director of the Agency or his or her
designee.
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104. The Participant
The Participant is Coachella Valley Land, a
Limited Partnership, in which the sole general partner is
William J. Cusack. The principal office and mailing address of
the Participant for purposes of this Agreement is Coachella
Valley Land, Attention: William J. Cusack, 74-225 Highway 111,
Suite C, Palm Desert, California 92261. The Participant
represents and warrants to the Agency that it is experienced in
the maintenance, operation, and rental of housing units to
households of low income and has the ability to aid and assist
the Agency in increasing and improving the supply of very low-,
low- and moderate -income housing within the City of La Quinta.
By executing this Agreement, each person signing
on behalf of the Participant warrants and represents to the
Agency that the Participant has the full power and authority to
enter into this Agreement, that all authorizations required to
make this Agreement binding upon the Participant have been
obtained, and that the person or persons executing this
Agreement on behalf of the Participant are fully authorized to
do so.
Whenever the term "Participant" is used in this
Agreement, such term shall include any and all nominees,
assignees, or successors in interest as herein provided.
105. Owner
Owner is William J. Cusack, a married man. The
principal office and mailing address of Owner for purposes of
this Agreement is William J. Cusack, 74-225 Highway 111, Suite
C, Palm Desert, California 92261. Owner represents and
warrants to the Agency that it is experienced in the
maintenance, operation, and rental of housing units to
households of low income and has the ability to aid and assist
the Agency in increasing and improving the supply of very low-,
low- and moderate -income housing within the City of La Quinta.
By executing this Agreement, Owner warrants and
represents to the Agency that Owner has the full power and
authority to enter into this Agreement, that all authorizations
required to make this Agreement binding upon Owner have been
obtained, and that the person or persons executing this
Agreement on behalf of Owner are fully authorized to do so.
Whenever the
Agreement, such term shall
assignees, or successors in
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M
term "Owner"
include any
interest as
is used -in this
and all nominees,
herein provided.
106. Prohibition Against Change in Ownership,
Manaaement and Control of Participant and Owner
and Prohibition Against Transfer of the Sites
The qualifications and identity of the
Participant are of particular interest to the Agency. It is
because of these qualifications and identity that the Agency
has entered into this Agreement with the Participant.
Consequently, for the Qualified Project Period, except as
otherwise expressly permitted below, no person, whether a
voluntary or involuntary successor of Participant, shall
acquire any rights or powers under this Agreement nor shall the
Participant assign all or any part of this Agreement or all or
any portion of the Sites without the prior written approval of
the Agency. In addition, Owner shall not assign or transfer
any of the Sites without the prior written approval of the
Agency. Any purported transfer, either voluntary or by
operation of law, in violation of this Section 107 shall
constitute a default hereunder and shall confer no rights
whatsoever under this Agreement upon any purported assignee or
transferee.
Notwithstanding the foregoing, (i) Participant
and Owner shall be entitled to make an assignment which
consists of a mortgage, deed of trust, sale and lease -back, or
other form of conveyance for financing, provided that the
Agency first approves such assignment in writing, and
(ii) Participant and Owner shall have the right to hire Cusack
Realty, Inc., a California corporation dba Cusack & Associates
("Cusack") as manager for each of the Sites.
Notwithstanding any other provision of this
Agreement to the contrary, Agency approval of an assignment of
this Agreement or transfer of the Sites or any interest therein
shall not be required in connection with the sale of individual
Ownership Properties in conformity with Sections 313 and 401 of
this Agreement.
In addition, prior Agency approval shall not be
required for the rental or lease of individual Rental
Properties for occupancy in the normal course of business in
accordance with Sections 314 and 401 of this Agreement.
A transfer of the Site and the improvements
thereon and/or the assignment of this Agreement may be made by
the Participant to another general or limited partnership or to
add limited partners to the existing partnership, or by Owner
to a general or limited partnership, if the purpose of the
transfer and/or assignment is to create a vehicle for limited
partners to invest in the Sites, so long as the managing
partner of the Participant and Owner continues to be the
managing and general partner of the new entity and the
purchaser and/or assignee agrees to be bound by the provisions
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of this Agreement and all other agreements Participant or Owner
and Agency have executed in connection herewith.
No assignment of the Participant's obligations,
or the obligations of Owner, with respect to any or all of the
Sites for which Agency approval is required, shall be effective
unless and until the proposed assignee executes and delivers to
the Agency an agreement in form reasonably satisfactory to the
Agency's legal counsel assuming the obligations of the
Participant or Owner which have been assigned. Thereafter, the
assignor shall remain responsible to the Agency for performance
of the obligations assumed by the assignee unless: (i) the
Agency releases the assignor in writing, or, (ii) all of the
requirements set forth in this Section 107 are fully satisfied
and the assignor is not then in default under this Agreement;
in which event the assignor shall remain responsible to Agency
only for performance of the obligations arising prior to the
effective date of the assignment or transfer, and shall be
released from any obligation or liability arising subsequent tc
the effective date of the assignment.
The Agency shall not unreasonably withhold its
approval of the conveyance or dedication of any portion of the
Site to the City or other governmental agency of relevant
jurisdiction, including public utility companies, in connection
with the provision of governmental services (or utilities) so
long as the use of the relevant Site as affordable housing for
then -existing or potential occupants is not materially
adversely affected thereby.
No consent or approval by the Agency of any
assignment or transfer requiring the Agency's approval shall
constitute a waiver of the provisions of this Section 107 with
respect to any subsequent assignment or transfer requiring the
Agency's approval.
107. Representations by the Participant and Owner
A. Participant Representations. The Participant
represents and warrants to the Agency as follows:
1. The Participant is a validly created limited
partnership and has and will in the future duly authorize,
execute and deliver this Agreement and any and all other
agreements and documents required to be executed and delivered
by Participant in order to carry out, give effect to, and
consummate the transactions contemplated by this Agreement.
2. The Participant does not have any material
contingent obligations or any material contractual agreements
which could materially adversely affect the ability of
Participant to carry out its obligations hereunder.
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3. There are no material pending or, so far as
is known to Participant, threatened, legal proceedings to which
Participant is or may be made a party or to which any of its
property is or may become subject, which have not been fully
disclosed in the material submitted to the Agency which could
materially adversely affect the ability of Participant to carry
out its obligations hereunder.
4. There is no action or proceeding pending or,
to Participant's best knowledge, threatened, looking toward the
dissolution or liquidation of Participant and there is no
action or proceeding pending or, to Participant's best
knowledge, threatened by or against Participant which could
affect the validity and enforceability of the terms of this
Agreement, or materially and adversely affect the ability of
Participant to carry out its obligations hereunder.
S. The Participant is the owner of record of
all of the Sites other than the Owner Properties. Record title
to the Owner Properties is held by Owner, but benefits and
burdens of ownership remain in the Participant. Title to all
Sites other than the Owner Properties is held by the
Participant. Except as otherwise expressly set forth in this
paragraph number 5 of Section 107A, and except for deeds of
trust in favor of institutional lenders and easements of record
no other entity holds any ownership interest in the Sites.
6. The Sites, and all of the buildings and
structures thereon, are habitable, and conform with the General
Plan land use designations, zoning, the Uniform Building Code,
the Uniform Housing Code, and all statutes, laws, regulations,
and ordinances having application to the occupancy of the
Existing Units.
7. All financial information delivered to
Agency, including without limitation, information relating to
the financial condition of the Participant, the Existing Units
or, partners or joint venturers of Participant, fairly and
accurately represents such financial condition and has been
prepared in accordance with generally accepted accounting
principles consistently applied, unless otherwise noted in such
information. No material adverse change in such financial
condition has occurred since the date the same were prepared.
8. All reports, documents, instruments,
information, and forms of evidence delivered to Agency
concerning the Agency Assistance or required by this Agreement
are accurate, correct, and sufficiently complete to give Agency
true and accurate knowledge of their subject matter, and do not
contain any misrepresentation or omission.
9. The Participant will file and shall continue
to file all required federal, state, county, and municipal tax
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returns with respect to the Sites and has paid all taxes owed
and payable with respect to the Sites, and Participant knows of
no basis for additional assessment with respect to any such
taxes.
10. The Participant had verified with the
Existing Occupants income of each Existing Occupant of the
Ownership Properties, and each such Existing Occupant has an
income of greater than eighty percent (80%) of the Applicable
Median Income.
11. Each individual executing this Agreement on
behalf of Participant is duly authorized to execute and deliver
this Agreement on behalf of Participant and this Agreement is
binding upon Participant.
12. Participant has a valid and binding
management agreement with Cusack for the management of the
Sites owned by Participant and Owner.
Each of the foregoing items (1) to (12), inclusive,
shall be deemed to be an ongoing representation and warranty.
The Participant shall advise the Agency in writing if there is
any change pertaining to any matters set forth or referenced in
the foregoing items (1) to (12), inclusive.
B. Owner Renresentations. Owner represents and
warrants to the Agency as follows:
1. Owner is permitted pursuant to applicable
law to enter into this Agreement, and will in the future duly
authorize, execute and deliver this Agreement and any and all
other agreements and documents required to be executed and
delivered by Owner in order to carry out, give effect to, and
consummate the transactions contemplated by this Agreement.
2. Owner does not have any material contingent
obligations or any material contractual agreements which could
materially adversely affect the ability of Owner to carry out
its obligations hereunder.
3. There are no material pending or, so far as
is known to Owner, threatened, legal proceedings to which Owner
is or may be made a party or to which any of its property is or
may become subject, which have not been fully disclosed in the
material submitted to the Agency which could materially
adversely affect the ability of Owner to carry out its
obligations hereunder.
4. There is no action or proceeding pending or,
to Owner's best knowledge, threatened, looking toward the
dissolution or liquidation of Owner and there is no action or
proceeding pending or, to Owner's best knowledge, threatened by
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or against Owner which could affect the validity and
enforceability of the terms of this Agreement, or materially
and adversely affect the ability of Owner to carry out its
obligations hereunder.
5. Record title to the Owner Properties is held
only by Owner, but the benefits and burdens of ownership remain
in the Participant. Title to all Sites other than the Owner
Properties is held by the Participant. Except as otherwise
expressly set forth in this paragraph number 5 of Section 107B,
and except for deeds of trust in favor of institutional lenders
and easements of record no other entity holds any ownership
interest in the Sites.
6. The Sites, and all of the buildings and
structures thereon, are habitable, and conform with the General
Plan land use designations, zoning, the Uniform Building Code,
the Uniform Housing Code, and all statutes, laws, regulations,
and ordinances having application to the occupancy of the
Existing Units.
7. All financial information delivered to
Agency, including without limitation, information relating to
the financial condition of Owner, the Existing Units or,
partners or joint venturers of Owner, fairly and accurately
represents such financial condition and has been prepared in
accordance with generally accepted accounting principles
consistently applied, unless otherwise noted in such
information. No material adverse change in such financial
condition has occurred.
8. All reports, documents, instruments,
information, and forms of evidence delivered to Agency
concerning the Agency Assistance or required by this Agreement
are accurate, correct, and sufficiently complete to give Agency
true and accurate knowledge of their subject matter, and do not
contain any misrepresentation or omission.
9. Owner will file and shall continue to file
all required federal, state, county, and municipal tax returns
with respect to the Owner Properties and has paid all taxes
owed and payable with respect to the Owner Properties, and
Owner knows of no basis for additional assessment with respect
to any such taxes.
10. Owner has verified with the Existing
Occupants income of each Existing Occupant of the Ownership
Properties, and each such Existing Occupant has an income of
greater than eighty percent (80%) of the Applicable Median
Income.
11. Owner has a valid and binding management
agreement with Cusack for the management of the Sites owned by
Owner.
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Each of the foregoing items (1) to (11), inclusive,
shall be deemed to be an ongoing representation and warranty.
Owner shall advise the Agency in writing if there is any change
pertaining to any matters set forth or referenced in the
foregoing items (1) to (11), inclusive.
200. SITE CONTROL; CONDITION OF SITES
201. Ownership of the Sites
Participant is the owner of record of all of the
Sites other than the Owner Properties. Owner is the owner of
record of all of the Owner Properties.
202. Condition of Title
The Participant and Owner each represent that
title to the Sites is, as of the approval of this Agreement by
the Agency, and shall be for so long as (i) one of the
Participant or Owner retains title to any of the Sites or
(ii) until the Ownership Properties are conveyed to Qualifying
Buyers in accordance with the provisions of this Agreement,
whichever shall later occur, free and clear of all recorded or
unrecorded liens, encumbrances, covenants, assessments,
easements, leases and taxes, except for those matters
enumerated in the Exceptions to Title. The Participant and
Owner agree that they shall cause the removal of all Exceptions
to Title other than the Permitted Exceptions prior to (i) the
payment by the Agency of any of the Agency Assistance or
(ii) the request by the Participant of any Agency Assistance,
whichever shall first occur.
203. Condition of the Sites and Site Improvements
As more particularly set forth in Section 107 of
this Agreement, the Participant and Owner have each represented
that the Sites and Site Improvements currently comply and will
continue to comply with all applicable laws. In the event any
conditions or circumstances should arise such that some or all
of the Site Improvements or Sites do not so comply, the
Participant and Owner shall within a reasonable time, but in no
event greater than sixty (60) days after the transmittal of
notice by the Agency to the Participant pursuant to Section 601
of this Agreement, cause all of the Sites and Site Improvements
to comply with all applicable laws.
The foregoing portion of this Section 203 shall
be inapplicable to particular Ownership Properties following
the conveyance of such particular Ownership Properties to
Qualifying Buyers in conformity with this Agreement.
As of the approval of this Agreement, some of the
Existing Units may be occupied. It is the practice of the
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Participant and Owner that as certain dwelling units within the
City owned by the Participant or Owner become vacant in the
normal course of business,.some of those units are retained as
vacant units which become part of an inventory maintained by
the Participant and Owner and offered for sale. It is the
intention of the Participant and Owner that no Existing
Occupants are to be displaced from the Existing Units by virtue
of this Agreement. Rather, occupants of Existing Units on
Ownership Properties are to be afforded the opportunity to
purchase those Parcels pursuant to this Agreement; and
occupants of Existing Units on Rental Properties are to be
afforded the opportunity to rent those Units pursuant to this
Agreement. The Participant has verified with Existing
Occupants the income of such Occupants. If, nevertheless, an
Existing Occupant of an Existing Unit on an Ownership Property
cannot afford to purchase the Existing Unit on the basis set
forth in the Agreement, then such Occupant shall not be
displaced on account of this Agreement, and no Agency
Assistance shall be available in respect to such Existing
Unit. The Participant and Owner agree to and shall defend,
indemnify, release, assume all responsibility for and hold
harmless the Agency and the City and their officers, employees
and agents, from and against all liability, loss, damage,
costs, claims, or expenses (including attorneys' fees and court
costs) arising from or in any way connected with this
Agreement, including without limitation, claims for relocation
assistance or benefits as may be asserted by any current or
former occupant of any portion of the Site pursuant to the
California Community Redevelopment Law (Health and Safety Code
Section 33000, et seg., the California Uniform Relocation Law)
Government Code Section 7260 et seq. the Uniform Relocation
Assistance and Real Property Acquisition Policies Act (42
U.S.C. Section 4601, et seq.) or any other federal, state or
local enactments providing for relocation assistance or
benefits in connection with rental or sale of the Units or in
connection with this Agreement.
300. DEVELOPMENT OF SITES FOR AFFORDABLE HOUSING
301. Sale of Ownership Properties
The Participant and Owner shall offer for sale
the Designated Ownership Properties to the Existing Occupants,
and as to those of the Ownership Properties which are or become
vacant, the Participant and Owner shall offer for sale the
Ownership Properties to other Qualifying Buyers at Affordable.
Housing Cost and subject to recorded covenants enforceable by
the Agency that the said Designated Ownership Properties shall
remain available at Affordable Housing Cost for not less than
the Applicable Required Period. Such recorded covenant shall
be substantially in the form of the Resale Restriction
Agreement and Option to Purchase.
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The "Applicable Required Period" shall mean the
period commencing with the conveyance of the particular Site by
the Participant or Owner to the Buyer pursuant to this
Agreement and terminating on June 15, 2029.
The Applicable Agency Assistance shall be
provided as a loan, on those terms more particularly set forth
in the Buyer/Agency Note. Pursuant to the Buyer/Agency Note,
the obligation to make repayment to the Agency does not bear
interest except for contingent interest as provided therein.
The Buyer/Agency Note shall be secured by a deed
of trust substantially in the form of the Buyer/Agency Deed of
Trust. The Buyer/Agency Deed of Trust shall be subordinated
only to the lien of an institutional lender providing purchase
money -financing where the principal amount of such senior
obligation is due not earlier than the tenth (loth) anniversary
of the recordation of the Buyer/Agency Deed of Trust securing
repayment of the corresponding Applicable Ownership Assistance.
Sales are to be completed, including close of
escrow, within the period commencing on the date of approval of
this Agreement by the Agency and ending upon the first
anniversary of such approval (the "Sale Period"). No Agency
Assistance shall be made available in respect to the Ownership
Properties or otherwise pursuant to this Section 301 after the
end of the Sale Period. Provided that Conditions Precedent to
Ownership Assistance are first satisfied, the Agency shall make
available the Applicable Ownership Assistance through escrow
upon request therefor in conformity with this Agreement.
302. Provision of the Applicable Ownership Assistance
The Applicable Ownership Assistance will be
funded by the Agency into escrow for the conveyance of the
relevant Ownership Property, with instructions to the escrow
holder that such funds may be released to the owner of record
(which shall be the Participant or Owner, only) upon
(i) confirmation by the Executive Director of the Agency, or
his designee, that except for execution, recordation and
delivery to the Agency of the Agency Ownership Documents, the
Conditions Precedent to Ownership Assistance have been
satisfied (or the instruction by the Executive Director or his
designee to the escrow holder that escrow may close and the
Applicable Ownership Assistance is to be provided without
regard to whether one or more designated conditions have been
satisfied), and (ii) confirmation by the escrow holder that the
Agency Ownership Escrow Documents have been duly executed by
the Buyer, and the Agency Deed of Trust, the Property
Covenants, and the Resale Restriction Agreement and Option to
Purchase have been recorded in accordance with the Agency
instructions to escrow. The Agency, Owner, and the Participant
agree to execute supplemental escrow instructions based upon
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the provisions of this Section 302. In addition, the Executive
Director of the Agency will provide to the escrow holder
information sufficient to complete the Agency Ownership Escrow
Documents. Unless otherwise instructed in writing by the
Agency, the contingent interest payable to the Agency pursuant
to Sections 3, 4 and 6 of the Buyer/Agency Note and Section 4
of the Rider to the Agency Deed of Trust shall be seven percent
(7%), but in no event greater than the maximum rate permitted
by law, and the place of payment shall be the address set forth
in Section 103 or such other address as may from time to time
be designated by the Agency.
303. Rent of Rental Properties; Purchase Option
The Participant and Owner shall offer for rent at
Affordable Rents for Qualifying Renters the Rental Properties
throughout the Qualified Project Period, except for those Sites
which are sooner sold to the Agency and subject to the further
limitation that, in the event a Section 8 Certificate is
terminated or not renewed as to any of the renters of the
Rental Properties, the corresponding Owner(s) of such Rental
Property shall: (i) continue to rent such Rental Property at
Affordable Rent to a Qualifying Renter, without provision of
further assistance or consideration by the Agency, or
(ii) repay to the Agency the Rental Assistance, with interest
thereon, earlier made available by Agency with respect to such
Rental Property pursuant to Section 304 of this Agreement, or
(iii) substitute another Ownership Property as a Rental
Property, as provided herein. In the event such Owner(s)
chooses to substitute another Ownership Property as a Rental
Property, such substitution shall be accomplished, if at all,
by written notice within ninety (90) days after the date the
Section 8 Certificate of the Applicable Qualifying Renter is
terminated or not renewed. In the event the Participant or
Owner receives notice of default or notice of sale with respect
to any encumbrance affecting any of the Rental Properties, the
obligation of the Participant and Owner to repay the Rental
Assistance to the Agency shall be deemed to be accelerated, and
the Participant and Owner shall, within fifteen (15) days after
receiving such notice, repay to the Agency the Rental
Assistance, with interest thereon. In the event the
Participant or Owner obtain refinancing as to one or more of
the Rental Properties, the Agency may, at its sole discretion,
elect to loan the principal amount earlier loaned and repaid in
respect to such Rental Properties, provided that such loan is
made on terms consistent with the original lien of the Rental
Assistance pursuant to this Agreement, including without
limitation lien position, loan -to -value ratio, due date, and
limitations of the Rental Properties for occupancy as
affordable rental housing by Qualifying Renters. The Owners
shall notify the Executive Director of the Agency in writing
within five (5) days after Participant or Owner receives notice
of (a) termination or non -renewal of a Section 8 Certificate or
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(b) the occurrence of any other events which are grounds to
accelerate repayment of any moneys made available pursuant to
Section 304 of this Agreement; provided that the failure to
provide such notice shall not limit the remedies of the
Agency. The Participant and Owner shall, subject to the
limitation set forth in the foregoing portion of this Section
303, use their best efforts to assure that all of the Existing
Units or the Rental Properties are occupied by Qualifying
Renters paying only Affordable Rents at all times during the
Qualified Project Period.
In the event the Participant or Owner desires to
substitute an Ownership Property for a Rental Property in which
the Qualifying Renter's Section 8 Certificate has been
terminated or not renewed pursuant to (iii), above, Agency's
encumbrance affecting the original Rental Property shall remain
in place unless the owner thereof requests in writing that the
encumbrance be transferred to the substituted Rental Property
in which event, provided all of the Conditions Precedent to
Rental Assistance contained in Section 314 below are met with
respect to such substituted Rental Property, (i) within fifteen
(15) days after Agency's receipt of such request, Agency shall
cause the trustee under the applicable Rental Properties Deed
of Trust to reconvey same, and (ii) concurrently therewith, the
Participant or Owner, as the case may be, shall execute a new
Promissory Note and Rental Properties Deed of Trust with
respect to the substituted Rental Property.
The Participant and Owner grant to the Agency the
option to purchase any or all of the Rental Properties at a
price to be determined for each Unit at the lower of methods
(i) and (ii) as follows: (i) the base price for each Rental
Property shall be as set forth in the Table of Base Values in
respect to such Rental Property, which base price shall not be
subject to increase until the first anniversary of the approval
by the Agency of this Agreement. On the first anniversary of
the approval of this Agreement by the Agency, the base price
shall be adjusted by the percentage change in the housing
component of the consumer price index for Los
Angeles -Anaheim -Riverside as against the preceding year; or
(ii) the Agency may retain a licensed appraiser who has
qualified to testify as an expert real estate appraisal or
valuation by the Riverside County, San Bernardino County, or
Orange County Superior Courts. The opinion of value as
determined by such appraiser shall, at the election of the
Agency, constitute the base price. The owner of the Rental
Property or Rental Properties in question shall have the
option, at its cost, to retain another appraiser similarly
qualified to determine his opinion of value as to the Rental
Property in question. In the event the appraisals are less
than five percent (5%) apart, the base price shall be deemed to
be the average of the two appraisals. In the event the
appraisals result in values equal to or greater than five
02/09/93
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percent (50;) apart, the Presiding Judge of the Riverside County
Superior Court shall appoint a third (3rd) appraiser or, if
such Judge fails within fourteen (14) days of request therefor
to designate an appraiser, the two appraisers earlier retained
by the Agency and the owner of such property shall mutually
select a third appraiser; if they are unable to agree, the City
Clerk shall randomly draw the name of one of the two appraisers
as originally retained by the Agency and the owner of such
property, which appraiser shall then designate a third
appraiser. Upon receipt of the third appraisal, the base price
shall be the average of the third appraisal and -whichever of
the two earlier appraisals is closer to the third appraisal.
The cost of the third appraisal shall be borne by the party
whose original appraisal value is further from the third
appraisal.
The base price, as determined pursuant to the
foregoing, shall be reduced three percent (3%) based upon
savings of the owner of such property in selling the Property
without costs for marketing or commissions.
The option of the Agency to purchase one or more
of the Rental Properties can be made by the Agency at any time
on one or more occasions during the Qualified Project Period by
giving written notice, executed by the Executive Director,
which provides that an election to purchase is being exercised
pursuant to this Section 303.
Upon exercise of the option to purchase pursuant
to this Section 303, the Agency may: (i) pay the purchase
price in cash (through escrow) taking free and clear of any
encumbrances, except for those encumbrances, if any, as the
Executive Director of the Agency shall, at his sole and
absolute discretion, deem to be acceptable, or (ii) pay the
difference between the purchase price and the existing
encumbrances into escrow, and take title subject to such
existing encumbrances, or (iii) take subject to the existing
encumbrances, with the Participant or Owner additionally
financing the remainder of the purchase price by a loan, which
amortizes five percent (5%) of the principal amount of such
loan each year, all due in five (5) years, with the interest
rate at the prevailing interest rate for first deeds of trust
on owner -occupied properties as published from time to time in
the Los Angeles Times, as reasonably determined by the
Executive Director upon consultation with the Participant (such
interest rates constituting "Prevailing Interest Rates"). Such
loan may be prepaid without penalty. Such loan by the
Participant shall be available only in the event the Agency
fails to obtain financing for such purchase from an
institutional lender based upon a seventy-five percent (75%)
loan. -to -value ratio and with an interest rate not in excess of
Prevailing Interest Rates. The Agency will consider in good
faith institutional lenders proposed by the Participant.
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All customary closing costs in connection with
such purchase shall be evenly shared by the seller and the
Agency (as buyer). Such costs shall be deemed to include,
without limitation, escrow fee, recording fees, documentary
transfer taxes, and the cost for a CLTA owner's policy of title
insurance based upon the purchase price and insuring that title
is conveyed subject only to those Permitted Encumbrances which
are allowable pursuant to this Section 303.
304. Provision of Applicable Rental Assistance
Upon satisfaction of the Conditions Precedent to
Rental Assistance, the Agency will loan to the Participant and
to Owner, jointly and severally, the amount of Twenty Thousand
Dollars ($20,000) for each Rental Unit, up to a maximum of
twenty (20) units, and an aggregate amount of Four Hundred
Thousand Dollars ($400,000). The loan shall be evidenced by a
promissory note substantially in the form of the Promissory
Note, and shall be secured by the Rental Properties Deed(s) of
Trust, which deed of trust shall be recorded as against the
Rental Properties, shall be in not lower than a third lien
position, and shall reflect a loan -to -value ratio (when
combined with any encumbrances having priority over the
Agency's lien) of not greater than eighty-five percent (85%).
The Participant and Owner shall execute deeds of trust in the
form of the Rental Properties Deed of Trust to be recorded
against those Rental Properties as to which they are owners of
record or hold any legal or equitable interest in the Rental
Properties. The interest rate shall be equal to the lesser of
(i) ten percent (10%) simple per annum or (ii) the rate charged
from time to time pursuant to the first deed(s) of trust, but
in no event greater than the maximum interest rate legally
allowable. Payment shall be due as set forth in the Promissory
Note. In the event the various Rental Properties are subject
to different first deeds of trust, the interest rate
attributable to such deeds of trust shall be deemed to be the
average of the first deeds of trust, as such rates may be
adjusted from time to time. Only first deeds of trust (and not
other encumbrances) will be includable for purposes of the
foregoing interest computation. The principal amount and all
interest shall be due -on sale or upon the end of the Qualified
Project Period as applicable to the Rental Properties, or upon
noncompliance by Participant or Owner with this Agreement,
whichever shall first occur.
The Agency shall obtain an ALTA lenders' title
insurance policy insuring its interest as secured by the Rental
Properties Deed of Trust based upon the amount of Four Hundred
Thousand Dollars ($400,000). The costs of such title insurance
shall be borne by the Agency.
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305. Maintenance of the Rental Properties
The Participant and Owner, through its agent,
Cusack, shall maintain the Rental Properties in a neat and
clean condition and in accordance with all applicable laws at
all times during the Qualified Project Period. In the event
the Agency (or its Executive Director) determines at its
discretion that the maintenance of one or more of the Rental
Properties is not satisfactory, it shall notify the Participant
in writing generally describing the matters of concern. The
Participant shall have a reasonable time, but not to exceed
forty-five (45) days from delivery or mailing of notice as set
forth in Sections 601 and 104 of this Agreement to remedy such
matters of concern. If such matters are not satisfied to the
reasonable satisfaction of the Executive Director of the Agency
within such time period, the Agency may terminate the
Maintenance Agreement, and, at its election, designate a
replacement service provider for the provision of such
maintenance.
If a replacement provider is designated, the
Participant and Owner shall not thereafter be deemed
responsible to the Agency for the maintenance of the Rental
Properties pursuant to the Maintenance Agreement; provided that
the Rental Properties shall, and Owner and the Participant
shall, remain subject to all applicable laws, including without
limitation these laws which pertain to property maintenance.
In addition, the Agency shall be responsible for any damage to
the Rental Properties caused by such replacement provider so
designated by the Agency to replace the Participant and Owner.
If the Agency terminates the Maintenance Agreement but does not
designate a replacement provider, no such responsibility by the
Agency is to be applicable and all obligations of the
Participant and Owner pursuant to this Agreement shall remain
in full force and effect, excepting only the obligation to
maintain the Rental Properties in accordance with this Section
305.
306. Indemnity, Bodily Injury and Property Damage
Insurance
Each of the Participant and Owner shall
indemnify, defend, protect, and hold harmless the Agency, and
its members, officers, employees and agents, from and against
any and all claims, losses, proceedings, damages, causes of
action, liabilities, costs and expenses (including attorneys'
fees) arising from or in connection with, -or caused by (i) any
act, omission or negligence of the Participant or Owner or any
of the Participant's or Owner's respective contractors,
licensees, invitees, agents, servants or employees, including
the occupants, prospective occupants, tenants and other
volunteers, wheresoever the same may occur; (ii) any use of the
Sites, or any accident, injury, death or damage to any person
02/09/93
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or property occurring in, on or about the Sites or any part
thereof, or from the construction or use by the Participant or
Owner of the Sites, or from any activity, work or thing done,
permitted or suffered by the Participant or Owner or its
contractors, employees, servants, or invitees, in or about the
Sites or elsewhere; (iii) any breach or default in the
performance of any obligations on the Participant's or Owner's
part to be performed under the terms of this Agreement, or
arising from any negligence of the Participant or Owner, or any
such claim or any action or proceeding brought thereon and
(iv) the effect of any easement or encroachment, whether of
record or not, which negatively affects the use of a Site as a
dwelling or impairs the security of Agency hereunder; provided
that the Participant or Owner shall not be required to
indemnify the Agency and its members, officers, employees and
agents from claims based solely on acts or omissions occurring
in or on Ownership Properties after such Ownership Properties
have been conveyed to Qualified Buyers in conformity with this
Agreement; and in case any action or proceeding be brought
against the Agency by reason of any such claim, the Participant
and Owner upon notice from the Agency shall defend the same at
the Participant's or Owner's expense by counsel satisfactory to
the Agency. These provisions are in addition to, and not in
lieu of, the insurance required to be provided by this Section
306.
The Participant and Owner shall procure and
maintain until the end of the Qualified Project Period for the
Rental Properties or the acquisition by the Agency of fee title
to all of the Rental Properties, whichever shall first occur, a
comprehensive liability policy in the amount of Two Million
Dollars ($2,000,000) combined single limit policy, including
contractual liability, as shall protect the Participant, the
Owner, the City, and the Agency from claims for such damages.
The Participant and Owner shall furnish Agency a
certificate of insurance from the insurer evidencing compliance
with this Section 306 and providing that the insurer shall not
cancel or modify the policy without thirty (30) days' written
notice to Agency. The Participant and Owner shall give Agency
prompt and timely notice of any claim made or suit instituted.
Agency, City, and their officers, employees and agents, shall
also be named as additional insured in any policies of
Participant's and/or Owner's contractors covering work under
this Agreement, and such policies shall comply with this
paragraph. Coverage shall be primary and not contributing with
any policy or coverage maintained by or obtai::ed by the Agency,
and an appropriate endorsement shall so state. The policy
shall contain a waiver of subrogation.
If they directly employ anyone to perform some or
all of their obligations hereunder, the Participant and Owner
shall comply with all of the provisions of the Workers'
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Compensation Insurance and Safety Acts of the State of
California, the applicable provisions of Divisions 4 and 5 of
the California Labor Code, and all amendments thereto, and all
similar State or Federal acts or laws applicable, and the
Participant and Owner shall hold Agency and City harmless from
anv claims arising thereunder. In addition, Participant and
Owner shall cause Cusack to comply with the provisions of this
paragraph with respect to Cusack's employees. Prior to
undertaking any work on the Sites, Participant and Owner shall
furnish to Agency a certificate of workers' compensation
insurance for Cusack and, if applicable, themselves, providing
that the insurer shall not cancel or modify the policy without
thirty (30) days' prior written notice to Agency. In the
alternative, the Participant and Owner may show proof of a
certificate of consent to self -insure issued by the Director of
Industrial Relations according to California Labor Code Section
3800. If anyone other than those persons covered by the
workers' compensation insurance obtained by the Participant or
Owner performs any of the construction work contemplated by
this Agreement (including, but not limited to Cusack), the
Participant or Owner shall cause such person or persons to be
covered by the comprehensive liability policy required above,
prior to such person or persons' performance of such
construction work.
The Participant and Owner additionally agree to
and shall save the Agency and the City and their officers,
employees, representatives and agents harmless from and assume
all responsibility for any representatives and all liability or
responsibility for damage, costs, losses, or suit arising in
any manner from the approval of this Agreement or the
activities conducted pursuant to this Agreement, except for any
such damage, costs, losses or suit which arises from the sole
negligence or wilful misconduct of the Agency, the City or
their officers, employees, representatives and agents.
307. Citv and Other Governmental Agency Permits
Before commencement of any construction or
development of any buildings, structures or other works of
improvement upon the Sites, the Participant and Owner shall, at
their own expense, secure or cause to be secured any and all
permits which may be required by the City or any other
governmental agency affected by such construction, development
or work. If required by the City, the Participant and Owner
shall prepare any parcel map or maps for one or more of the
Sites. It is understood that the Participant and Owner are
obligated to pay all necessary fees and to timely submit to the
City final drawings with final corrections to obtain building
permits; the Agency will, without obligation to incur liability
or expense therefor, use its best efforts to expedite issuance
of building permits and certificates of occupancy for
construction that meets the requirements of the City Code.
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308. Riahts of Access
For the purpose of assuring compliance with this
Agreement, representatives of the Agency and the City shall
have the right, without prior notice, of access to the Sites
without charges or fees, at normal business hours during the
"period of this Agreement for the purposes of this Agreement,
including, but not limited to, the inspection of the Sites and
the improvements thereon. Such representatives of the Agency
or of the City shall be those who are so identified in writing
by the Executive Director of the Agency. The Agency shall hold
the Participant harmless from any bodily injury or related
damages caused by the negligence or willful misconduct of the
Agency and the City in connection with the activities referred
to in this Section 308.
The Participant and Owner shall, if requested by
the Executive Director of the Agency, place and maintain on the
Sites, signs indicating the respective roles of the Participant
and the Agency in the Project. The cost of the signs shall be
borne by the Agency.
309. Local, State and Federal Laws
The Participant and Owner shall perform under
this Agreement and carry out their performance under this
Agreement, in conformity with all applicable Federal and State
laws and local ordinances.
310. Anti -Discrimination
Pursuant to Sections 33435 and 33050 of the
California Community Redevelopment Law, each of the Participant
and Owner, for themselves and their successors and assigns,
agrees that in the performance under this Agreement, the
Participant and Owner will not discriminate against any
employee or applicant for employment because of sex, marital
status, race, color, religion, ancestry, or national origin.
311. Taxes and Assessments
The Participant and Owner shall pay prior to
delinquency all real estate taxes and asseassments on all of the
Sites so long as the Participant or Owner retain any interest
therein. Prior to the sale or transfer of the Sites, or any
portion thereof, the Participant or Owner shall remove or have
removed any levy or attachment made on any of the Sites or any
part thereof, or assure the satisfaction thereof within a
reasonable time but in any event prior to said sale or transfer.
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Revor='_na Reauirement
Prior to the rental or lease of any dwelling unit
on any of the Rental Properties to a tenant, and annually
thereafter within thirty (30) days of the anniversary date of
such tenant's occupancy, the Participant and Owner shall submit
to the Agency completed income computations and certification
form in the form of the Income Verification(s) and the
Certification of Continuing Program Compliance in the form of
Attachment Nos. 10 and 11. Upon the mutual agreement of the
parties, the Certification of Continuing Program Compliance
Certificate may be provided during July of each year in respect
to the immediately preceding fiscal year ending as of June 30.
The Participant and Owner shall certify that each tenant
leasing or renting a unit on any of the Rental Properties is a
Qualifying Renter. The Participant and Owner shall obtain an
income certification from the tenant of each such unit and
shall certify that, to the best of the Participant's and
Owner's knowledge, the income of the tenant is truthfully set
forth in the income certification form. Reporting by the
Participant and Owner shall conform to Section 33418 of the
California Health and Safety Code, and shall further provide
information to the Agency with respect to the operation of the
Sites that will enable the Agency to make appropriate reports
pursuant to Section 33080.4 of the California Health and Safety
Code, or alternatively, Participant and the Owner may submit a
letter from the Department of Housing and Urban Development
certifying compliance by each Qualifying Renter of all Section
8 requirements. The Participant shall verify the income
certification of the tenant in one or more of the methods as
specifically set forth in the Income Vertification.
A person or family who at the time of income
certification qualified as a Qualifying Renter shall continue
to be deemed so qualified, until such time as the person or
family's income is redetermined and the person or family is
determined by the Agency to no longer be so qualified, even if
such person or family's income has subsequently increased to an
amount above the applicable income level. Upon the Agency's
determination that the tenant*of a dwelling unit on one of the
Rental Properties is no longer qualified as a Qualifying Renter
the next available unit must be rented to (or held vacant and
available for immediate occupancy by) a Qualifying Renter. The
Participant and Owner shall promptly notify the Executive
Director if it has reason to believe that a renter or renters
of one or more of its rental units do not qualify as Qualifying
Renters. _
313. Conditions Precedent to Ownership Assistance
As conditions precedent to the provision of any
of the Applicable Ownership Assistance for each Ownership
Property, the Participant and Owner shall satisfy or shall
cause to be satisfied each of the following:
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1. the proposed homebuyers shall have a household
income not in excess of one hundred twenty
percent (120%) of the areawide median income, as
determined by the Agency pursuant to Section
50052.5 of the California Health and Safety Code,
as confirmed by the Executive Director of the
Agency or his designee upon submittal of
Certification of Income (including without
limitation all attachments thereto) by the
Participant;
2. The Participant and Owner shall cause the
prospective owner(s) to execute and deposit into
escrow for recordation the Agency Ownership
Escrow Documents;
3. The Buyer/Agency Deed of Trust shall be
subordinated only to the lien of an institutional
lender providing purchase money financing where
the principal amount of such senior obligation is
not due earlier than the tenth (loth) anniversary
of the recordation of the Buyer/Agency Deed of
Trust, and First American Title Company or
another reputable title company reasonably
acceptable to the Agency is prepared to issue an
ALTA lenders' policy for the benefit of the
Agency upon receipt of its customary charge
therefor;
4. The spouse of Owner shall duly execute,
acknowledge and deposit into escrow the Spousal
Waiver; and
5. The Participant and Owner shall not be or have
been in default of this Agreement, including
without limitation the Attachments hereto.
The foregoing constitute the "Conditions
Precedent to Ownership Assistance".
314. Conditions Precedent to Rental Assistance.
As conditions precedent to the release of the
Applicable Rental Assistance for each Rental Property from
escrow, the Participant and Owner shall satisfy or cause to be
satisfied each of the following:
1.
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4331Q/2338/37
the Promissory Note shall have been executed and
deposited with escrow for delivery to the Agency
and the Rental Properties Deed(s) of Trust shall
have been executed, deposited in escrow,
recorded, and ready for delivery to the Agency,
together with title insurance conforming to
Section 304 of this'Agreement;
-24-
2. the Participant shall have obtained approval by
the Aaencv Executive Director or his designee of
Income Verifications and the lease for not less
than five (5) Rental Properties, and Income
Verifications showing the renter to be a
Qualifying Renter and leases in respect to each
additional rental unit in respect to which Rental
Assistance is sought;
3. The Agency Deed of Trust shall have a lien
position not below third position and a
loan -to -value ratio not in excess of eighty-five
percent (85%) (including all encumbrances
including the Agency Deed of Trust), and First
American Title Company or another reputable title
company reasonably acceptable to the Agency is
prepared to issue an ALTA lenders' policy for the
benefit of the Agency upon receipt of its
customary charge therefor; and
4. the Participant and Owner shall execute and cause
to be recorded the Memorandum of Agreement;
5. the Participant shall have provided evidence
substantiating to the reasonable satisfaction of
the Agency Executive Director that any
encumbrances to which the Rental Properties Deed
of Trust is to be junior have due dates later
than the due date of the Promissory Note; and
6. The spouse of Owner shall duly execute,
acknowledge and deposit into escrow the Spousal
Waiver.
7. the Participant and Owner shall not be or have
been in default of this Agreement, including
without limitation the Attachments hereto.
The foregoing constitute the "Conditions
Precedent to Rental Assistance".
400. USE OF THE SITE
401. Affordable Housing
A. Commitment of Units for Affordable Housing. The
Participant and Owner covenant and agree to make the Designated
Ownership Properties available for sale and the Rental
Properties available for rental to Qualifying Renters. The
respective ownership and rental units are to remain affordable
for the respective periods of time set forth in Sections 301
and 303 of.this Agreement.
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4331Q/2338/37 -25-
B. Determination of Purchase Price. The Participant
and Owner shall sell all Ownership Properties at an Affordable
Housing Cost to Qualifying Buyers.
C. Approval of Initial Purchasers. No transfer of
an Ownership Property from the Participant or Owner to a
purchaser shall occur until the Agency determines that (a) the
proposed purchaser intends to occupy the Ownership Property as
the proposed purchaser's principal residence, (b) the proposed
purchaser is a Qualifying Buyer, and (c) the proposed transfer
occurs at an Affordable Housing Cost. Prior to the conveyance
of each Ownership Property, the Participant and Owner shall
obtain and deliver to the Agency from each such proposed
purchaser such information and completed forms as the Agency
shall request to certify the transfer price, proposed
purchaser's intent with respect to its residence in the
Ownership Property, and its gross income. The Participant and
Owner shall cooperate with the Agency in assisting such
purchasers to prepare such forms and provide any required
information to the Agency in connection with the Participant's
or Owner's original sale of the Ownership Property. The Agency
shall approve or disapprove such proposed purchasers within
fifteen (15) days of its receipt of all requested information,
forms and disclosure statements from such proposed purchasers.
The Agency's approval or disapproval shall be based only on the
criteria set forth above in subsections (a), (b) and (c). If
the Agency shall fail to approve or disapprove any such
proposed purchaser within such fifteen (15) day period, unless
such time has been extended in writing by the Agency, the
proposed purchaser shall be deemed disapproved.
D. Junior Trust Deed Loans. The Agency shall loan
each Qualifying Buyer in a Very Low Income Household who
purchases an Ownership Property directly from the Participant
or Owner the Applicable Ownership Assistance, as more
particularly provided in Section 302 of this Agreement.
Notwithstanding anything provided herein to the
contrary, however, the Agency agrees to forgive interest on
each such promissory note and to limit its right to share in
the appreciation of each Ownership Property as may be necessary
to avoid situations in which the applicable homebuyer's
obligations under the first deed of trust, plus the Agency
Loan, plus federal recapture tax, exceed the fair market value
of the applicable Ownership Property. The term "federal
recapture tax" as used herein shall mean the purchaser's
recapture liability, if any, under Section 143(m) of the
Internal Revenue Code of 1986 (as amended), provided, however,
that for the purposes of complying with this paragraph, the
recapture amount shall not be reduced pursuant to Section
143(m)(5), and provided further that if the Agency's loan is
repaid but no "disposition" is occurring (as such term is used
in said Section 143(m)), then gain shall be determined as if
the Ownership Property was being sold for its fair market value.
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E. Rental Units
1. Selection of Tenants. The Participant shall,
either itself or through its agent, Cusack, maintain all of the
Rental Properties and restrict the occupancy of such units to
Very Low income households. As specified hereinbelow,
Participant and Owner shall demonstrate to the satisfaction of
the Agency that the proposed tenants of the Affordable Units
are Qualifying Renters.
Prior to the rental or lease of an Affordable Unit to
a tenant, and as set forth in Section 403, the Participant and
Owner shall require the tenant to execute a written lease and
to complete an Income Verification certifying that the
tenant(s) occupying the Affordable Unit is/are Qualifying
Renters and meet(s) the eligibility requirements established
for the Affordable Unit. The Participant and Owner shall
verify the Income Verification of the tenant(s) in one or more
of the following methods as specifically set forth in the
Income Verification.
The procedures to be followed by the parties in
respect to the Applicable Rental Assistance are generally as
follows:
Step 1: Participant or Owner, as the case may be,
enters into a lease agreement with a Section
8 certified tenant.
Step 2: Participant submits the following
information to the Agency:
A) Copy of executed lease.
B) Copy of Public Housing Authority
approval.
C) Copy of Tenant Section 8 Certification.
D) Copy of Move -In Inspection Checklist.
E) Projected 12-month cash flow statement
for the subject property.
E) Preliminary Title Report for subject
property.
G) Verification of Mortgage balance and
property taxes.
H) Copy of escrow instructions to be
reviewed and signed by Agency.
I) Income Vertification.
Step 3: Agency reviews, makes appropriate changes
to, and approves documentation.
(Anticipated time frame: 10 days from
receipt)
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Step 4: Agency deposits in Escrow the prescribed
loan amount along with the signed escrow
instructions. (Anticipated time frame: 3
days from approval of loan documents)
Step 5: Participant or Owner signs Promissory Note
and Participant or Owner sign the Rental
Properties Deed of Trust for the subject
property in favor of the Agency along with
escrow instructions. (Within three (3) days
after delivery of Agency approval of loan
documents)
Step 6: Escrow shall record the Deed of Trust, the
title insurer will issue a title policy to
the Agency, and escrow will issue a check to
Participant and forward the signed
Promissory Note to Agency.
The Participant and Owner acknowledge that the
anticipated time frames as set forth above in this Section 401
are estimates, only, and that the time taken to complete those
tasks may differ from those set forth above in this Section 401.
Escrow fees shall be evenly shared by the parties.
Any costs for title insurance with respect to the Rental
Properties Deed of Trust shall be borne by the Agency.
For purposes of satisfying the requirement that all of
the dwelling units on the Rental Properties be maintained as
affordable to Qualifying Renters, a tenant who qualifies as a
Qualifying Renter at the time he or she first occupies such a
rental unit shall be deemed to continue to be so qualified
until demonstrated otherwise by the tenant's annual Income
Verification. At such time as the tenant ceases to meet the
income qualifications of a Qualifying Renter, the unit occupied
by such tenant shall cease to be an affordable unit. The
Participant and Owner shall replace such unit by making
available as an affordable unit another unit owned by the
Participant and Owner at rent which is Affordable Rent to a
Qualifying Renter for the remainder of the Rental Period.
The Participant and Owner shall give notice to the
Agency of the vacancy of each and any rental unit from the
Rental Properties. The Agency may, but is in no way obligated
to, notify prospective tenants of such vacancy. The
Participant shall not be required to lease such affordable
units to a tenant referred by the Agency, but the Participant
or Owner shall accept or reject any such tenant based solely
upon lawful and reasonable evaluation criteria.
2. Determination of Affordable Rent for the Rental
Units. The Rental Units shall be rented or leased at a rent
not in excess of Affordable Rent to Qualifying Renters.
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THE TARTICIPANT :"ND OWNER UNDERSTAND AND KNOWINGLY
AGREE THAT THE r1AXID;UM RENTAL FOR THE AFFORDABLE UNITS
EST:%BLISHED BY THIS AGREETENT AS AN AFFORDABLE RENT IS NOT
NECESSARILY EQUAL TO THE _AIR MARKET RENT FOR THE AFFORDABLE
UNITS, AND MAY BE SUBSTANTIALLY BELOW THE FAIR MARKET RENT.
Participant Initials: Owner Initials: Cl�
3. Records and Program Compliance. Participant and
Owner shall maintain on file the tenant(s) executed Income
Verification(s) and all rental records for the Rental
Properties. The Participant or Owner shall prepare and submit
to the Agency on the first anniversary of the issuance of the
approval of this agreement by the Agency and annually
thereafter throughout the Qualified Project Period, a
Certification of Continuing Program Compliance. Such
documentation shall state for each unit the unit size, the
rental amount, the number of occupants and the income of the
occupants and any other information which may be used to
determine compliance with the terms and conditions of this
Agreement. If any rental unit is no longer subject to
Affordable Rent restrictions, such documentation shall state
the date of such cessation and the reason therefor and shall
specify whether a replacement affordable unit has been
designated. Participant and Owner shall permit the Agency at
any time during normal business hours to inspect Participant's
or Owner's records in connection with the operation of the
Rental Properties.
The Participant and Owner covenant and agree for
their successors, its assigns and every successor in interest
to the Site or any part thereof to use, maintain, and operate
the Rental Properties in accordance with this Agreement for the
Qualified Project Period. None of the Rental Properties shall
at any time be utilized on a transient basis nor shall any of
the Rental Properties ever be used as a hotel, motel,
dormitory, fraternity or sorority house, rooming house,
hospital, nursing home, sanitarium or rest home. Neither
Participant nor Owner shall convert the Rental Properties to
condominium ownership during the Qualified Project Period
without the prior written approval of the Agency, which
approval the Agency may grant, withhold, conditionally grant,
or deny in its sole and absolute discretion.
4. Failure to Comply. In the event the Participant
or Owner maintains less than all of the Rental Properties
available at Affordable Rent to Oualifying Renters, the
Participant or Owner shall be in noncompliance with this
Agreement. In the event the Participant or Owner remains in
noncompliance for more than ninety (90) days, then the
Participant or Owner shall, without necessity of demand
therefor by the Agency, repay the Agency the Applicable Rental
Assistance; and the Agency shall have additional remedies
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pursuant to this Agreement, including without limitation the
Maintenance Agreement.
F. Subordination. Participant intends to obtain a
commitment from one or more institutional lenders to provide
primary and secondary mortgage financing to facilitate the
acquisition by Qualifying Buyers to purchase the Ownership
Properties. Such financing will not be available unless
offered on terms and conditions acceptable to the Federal
National Mortgage Association ("FNMA", or "Fannie Mae"). The
Agency agrees to subordinate the Agency Deed of Trust, and, if
required by Fannie Mae, the Resale Restriction Agreement and
Option to Purchase, and -the Property Covenants, to a first deed
of trust which secures loans of an amount not to exceed
ninety-five percent (95%) of the applicable Maximum Purchase
Price, and which loan is by an institutional lender at a fixed
rate of less than ten percent (10%) (or such other rate as the
Executive Director shall confirm reflects current market
conditions). The Agency further agrees, subject to
satisfaction of the Conditions Precedent for Ownership
Properties, to execute the Subordination Agreement together
with such similar documentation consistent with this Section
401F as Fannie Mae may require.
G. Covenants to Remain Affordable. Prior to the
conveyance of each of the Ownership Properties to the
Qualifying Buyers, the Participant and Owner shall execute and
record the Property Covenants in the Official Records of
Riverside County, California, which shall provide all of the
following:
1. Each Ownership Property shall be
owner -occupied and the owner shall be a Qualifying Buyer and
each Ownership Property shall only be conveyed at an Affordable
Housing Cost to a Qualifying Buyer;
2. Prior to any transfer of any portion of the
Ownership Property, the owners of the Ownership Property shall
submit to the Agency a request for approval of the proposed
transferee and the Agency shall determine if the proposed
transferee is a Qualifying Buyer, and if so shall approve the
proposed transferee;
3. There shall be no discrimination against any
person on account of race, color, religion, sex, marital
status, national origin or ancestry in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the
Ownership Property;
4. The owner(s) of any portion of the Ownership
Property shall properly maintain the buildings, landscaping and
yard areas on such portion of the Ownership Property owned by
such owner(s), and if such buildings, landscaping and yard
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areas are not so maintained, and such condition is not
corrected as soon as possible after notice from the Agency or
the City, then either the Agency or the City may perform the
necessary maintenance and the owner(s) shall pay such costs as
are reasonably incurred For such maintenance;
5. The Property Covenants shall, throughout
their term, be binding for the benefit of the Agency and the
Citv without regard to whether the Agency or the City is an
owner of any land to which the Property Covenants relate; and
6. The Property Covenants shall be binding for
a period terminating upon the expiration of the Affordability
Period.
To the extent permissible under applicable
law, the Agency shall permit sales of the Ownership Property
prior to the expiration of the term of the Property Covenants
for a price in excess of an Affordable Housing Cost, provided
that the seller of the Ownership Property pays to the Agency
the shared appreciation amount as determined pursuant to the
Buyer/Agency Note.
In the event that any provision in this
Section 401(G) is found to be contrary to applicable law or the
Resale Restriction Agreement and Option to Purchase or
provisions of the Fannie Mae Community Partnership Program as
in effect as of the date of approval of this Agreement by the
Agency, then this Section 401(G) shall be deemed to mean those
provisions which are enforceable under and consistent with such
laws and policies. The remaining provisions of this Agreement
shall be deemed modified in a manner which is consistent with
the goals and intent of this Agreement to provide housing at an
Affordable Housing Cost to low -and moderate -income households.
Every provision of this Section 401 is intended to be
severable. In the event any term or provision of this
Section 401 is declared by a court of competent jurisdiction to
be unlawful, invalid or unenforceable for any reason, such
determination shall not affect the balance of the terms and
provisions of this Section 401, which terms and provisions
shall remain binding and enforceable.
H. Marketing. The Participant and Owner shall
market the Ownership Properties first to Existing Occupants,
and thereafter, if necessary, to persons who live and work
within the City, through communication with employers within
the City, to the extent permitted by law.
402. Use In Accordance with Redevelopment Plan;
Nondiscrimination
1. The Participant and Owner covenant and agree for
themselves, their successors, their assigns, and every
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successor in interest to the Sites or any part thereof that the
Participant and Owner and such successors and assignees, shall
devote the Sites only to those uses specified or permitted in
the Redevelopment Plan, if the Sites are within a redevelopment
area, and this Agreement for the periods of time specified
therein. The foregoing covenants shall run with the land.
Each of the Participant and Owner covenant by and
for itself and any successors in interest that there shall be
no discrimination against or segregation of any person or group
of persons on account of race, color, creed, religion, sex,
marital status, handicap, national origin or ancestry in the
sale, lease, sublease, transfer, use, occupancy, tenure or
enjoyment of the Sites, nor shall the Participant itself or any
person claiming under or through it establish or permit any
such practice or practices of discrimination or segregation
with reference to the selection, location, number, use or
occupancv of tenants, lessees, subtenants, sublessees or
vendees of the Sites. The foregoing covenants shall run with
the land.
Agency Initials:
Participant Initials:
Owner initials:
The Participant and Owner shall refrain from
restricting the rental, sale or lease of the Sites on the basis
of race, color, creed, religion, sex, marital status, handicap,
national origin or ancestry of any person. All such deeds,
leases or contracts shall contain or be subject to
substantially the following nondiscrimination or nonsegregation
clauses:
(a) In deeds: "The grantee herein covenants by
and for himself or herself, his or her heirs, executors,
administrators and assigns, and all persons claiming under or
through them, that there shall be no discrimination against or
segregation of, any person or group of persons on account of
race, color, creed, religion, sex, marital status, handicap,
national origin or ancestry in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of the land
herein conveyed, nor shall the grantee himself or herself or
any person claiming under or through him or her, establish or
permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number,
use or occupancy of tenants, lessees, subtenants, sublessees or
vendees in the land herein conveyed. The foregoing covenants
shall run with the land."
(b) In leases: "The lessee herein covenants by
and for himself or herself, his or her heirs, executors,
administrators and assigns, and all persons claiming under or
through him or her, and this lease is made and accepted upon
and subject to the following conditions:
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"There shall be no discrimination against or
segregation of any person or group of persons on account of
race, color, creed, religion, sex, marital status, handicap,
ancestry or national origin in the leasing, subleasing,
transferring, use, occupancy, tenure or enjoyment of the
premises herein leased nor shall the lessee himself or herself,
or any person claiming under or through him or her, establish
or permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number,
use or occupancy of tenants, lessees, sublessees, subtenants or
vendees in the premises herein leased."
(c) In contracts: "There shall be no
discrimination against or segregation of, any person, or group
of persons on account of race, color, creed, religion, sex,
marital status, handicap, ancestry or national origin, in the
sale, lease, sublease, transfer, use, occupancy, tenure or
enjoyment of the premises, nor shall the transferee himself or
herself or any person claiming under or through him or her,
establish or permit any such practice or practices of
discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees or vendees of the premises."
The covenants established in this Agreement shall,
without regard to technical classification and designation, be
binding for the benefit and in favor of the Agency, its
successors and assigns, the City and any successor in interest
to the Sites, together with any property acquired by the
Participant or Owner pursuant to this Agreement, or any part
thereof. The covenants against racial discrimination shall
remain in effect in perpetuity.
403. Effect of Violation of the Terms and Provisions
of this Aareement After Completion of Construction
The Agency is deemed the beneficiary of the terms and
provisions of this Agreement and of the covenants running with
the land, for and in its own rights and for the purposes of
protecting the interests of the community and other parties,
public or private, in whose favor and for whose benefit this
Agreement and the covenants running with the land have been
provided. The Agreement and the covenants shall run in favor
of the Agency, without regard to whether the Agency has been,
remains or is an owner of any land or interest therein in the
Sites. The Agency shall have the right, if the Agreement or
covenants are breached, to exercise all rights and remedies,
and to maintain any actions or suits at law or in equity or
other proper proceedings to enforce the curing of such breaches
to which it or any other beneficiaries of this Agreement and
covenants may be entitled.
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404. Maintenance of the Ownership Properties
The Participant and Owner shall maintain the
improvements on the Sites in conformity with the La Quinta
Municipal -Code and shall keep the Sites free from any
accumulation of debris or waste materials.
The Participant and, Owner shall also maintain the
landscaping required to be planted on the Sites in a healthy
condition. If, at any time, Participant fails to maintain the
Site or any portion thereof, and said condition is not
corrected as soon as reasonably possible after written notice
from the Agency or the City, either the Agency or the City may
perform the necessary maintenance and Participant and Owner
shall pay such costs as are reasonably incurred for such
maintenance.
Upon the sale of each Ownership Property by the
Participant or Owner to Qualifying Buyers, Participant's or
Owner's obligations to the Agency with respect to such sold
Properties under this Section 404 shall terminate.
405. Best Efforts to Sell Ownership Properties
The Participant and Owner agree to exercise best
efforts consistent with prudent business practices to sell all
of the Ownership Properties as soon as practical. The
Participant and Owner agree that the Ownership Properties shall
not be leased by the Participant and Owner or any party related
to the Participant or Owner without the prior written approval
of the Agency.
S00. DEFAULTS AND REMEDIES
501. Defaults -- General
Failure or delay by either party to perform any term
or provision of this Agreement constitutes a default under this
Agreement. A party claiming a default shall give written
notice of default to the other party, specifying the default
complained of and the actions required to correct such default.
The claimant shall not institute proceedings against
the other party if the other party, within thirty (30) days
from receipt of such notice, immediately and with due diligence
commences to cure, correct or remedy such failure or delay and
completes such cure, correction or remedy as soon as reasonably
practicable thereafter.
502. Institution of Legal Actions
In addition to any other rights or remedies and
subject to the restrictions in Section 501, either party may
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seek specific performance of the terms of this Agreement, or to
cure, correct or remedy any default, to recover damages for any
default, or to obtain any other legal or equitable remedy
consistent with the purpose of this Agreement. Such legal
action must be instituted in the Superior Court of Riverside
County, California, in an appropriate municipal court in that
county, or in the Federal District court in the Central
District of California.
503. Applicable Law
The laws of the State of California shall govern the
interpretation and enforcement of this Agreement.
504. Acceptance of Service of Process
In the event that any action is commenced by the
Participant or Owner against the Agency, service of process on
the Agency shall be made by personal service upon the Executive
Director of the Agency or in such other manner as may be
provided by law.
In the event that any action is commenced by the
Agency against the Participant or Owner, service of process on
the Participant or Owner, if applicable, shall be made by
personal service upon any partner or officer or director of the
Participant or Owner and shall be valid whether made within or
without the State of California or in such other manner as may
be provided by law. Service of any of the foregoing natural
persons accomplished by or on behalf of the Agency shall be
deemed to effect service on all of the Participant and Owner.
Owner irrevocably designates the Participant as agent to
receive process on its behalf, and service upon Owner may be
effected by service upon the Participant which designates Owner
as the entity being served, as well as by any other means to
effect service of process as may be authorized by law.
505. Rights and Remedies Are Cumulative
Except as otherwise expressly stated in this
Agreement, the rights and remedies of the parties are
cumulative, and the exercise by either party of one or more of
such rights or remedies shall not preclude the exercise by it,
at the same or different times, of any other rights or remedies
for the same default or any other default by the other party.
506. Inaction Not a Waiver of De -fault
Any failures or delays by either party in asserting
any of its rights and remedies as to any default shall not
operate as a waiver of any default or of any such rights or
remedies, or deprive either such party of its right to
institute and maintain any actions or proceedings which it may
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deem necessary to protect, assert or enforce any such rights or
remedies.
507. Damages.
If either party defaults with regard to any of the
provisions of this Agreement, the non -defaulting party shall
serve written notice of such default upon the defaulting
party. If the default is not cured within thirty (30) days
after service of the notice of default as set forth in
Section 501, the defaulting party shall be liable to the other
party for any damages caused by such default, except as
provided in Section 202 and 510 herein.
508. Specific Performance
Subject to the applicable cure provisions contained in
Section 501 herein, if either party defaults under any of the
provisions of this Agreement, the non -defaulting party shall
serve written notice of such default upon the defaulting
party. If the default is not cured by the defaulting party
within thirty (30) days of service of the notice of default, or
such other time limit as may be set forth herein with respect
to such default, the non -defaulting party at its option may
thereafter (but not before) seek specific performance of terms
of this Agreement in accordance with Section 502 herein.
509. Termination by the Participant and Owner
In the event that the Participant and Owner are not in
default of the Agreement and:
(a) The Agency is in default of the Agreement
and has not cured or commenced to cure such
default within the time period set forth in
Section 501 hereof
then, subject to the applicable cure provisions contained in
Section 501 herein, at the option of the Participant and Owner,
thirty (30) days after written notice thereof is delivered to
the Agency, all provisions of this Agreement shall terminate
and be of no further force and effect. Thereafter, neither the
Agency nor the Participant nor Owner shall have any further
rights against or liability to the other with respect to this
Agreement.
510. Termination by the Agency
In the event that the Agency is not in default of this
Agreement and:
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(a) The Participant (or any successor in
interest) or Owner assigns or attempts to
assign the Agreement or any rights therein
or in the Sites in violation of this
Agreement; or
(b) There is a change in the ownership of the
Participant, contrary to the provisions of
Section 107 hereof; or
(c) The Participant or Owner does not submit
certificates of insurance documents as
required by this Agreement, in the manner
and by the dates respectively provided in
this Agreement therefor and such default or
failure shall not be cured within thirty
(30) days after the date of written demand
therefor by the Agency;
(d) The Participant or Owner fail to satisfy the
Conditions Precedent to Ownership Assistance
by the time established therefor in this
Agreement; or
(e) The Participant or Owner fail to satisfy the
Conditions Precedent to Rental Assistance by
the time established therefor in this
Agreement; or
(f) The Participant or Owner are otherwise in
default under this Agreement and have not
cured or commenced to cure such default
within the time period set forth in
Section 501 herein;
then, at the option of the Agency, thirty (30) days after
written notice thereof is delivered to the Participant or
Owner, this Agreement shall be terminated, and thereafter no
party shall have any further rights against any other party
under this Agreement.
600. GENERAL PROVISIONS
601. Notices, Demands and Communications Among the
Parties
Written notices, demands and communications between the
Agency, the Participant and Owner shall be sufficiently given
if delivered by hand or dispatched by registered or certified
mail, postage prepaid, return receipt requested, to the
principal offices of the Agency, Owner and the Participant at
the addresses specified in Sections 103 and 104, respectively.
In addition to the foregoing, Owner irrevocably designates the
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Participant as authorized to receive notices on behalf of
Owner, and notice given to the Participant shall be deemed to
have been given to Owner as well as the Participant. Such
written notices, demands and communications may be sent in the
same manner to such other addresses as either party may from
time to time designate by mail as provided in this Section 601.
Any written notice, demand or communication shall be
deemed received immediately if delivered by hand and shall be
deemed received on the date actually received or the third day
from the date it is postmarked if delivered by registered or
certified mail.
602. Conflicts of Interest
No member, official, employee or agent of the Agency
shall have any personal interest, direct or indirect, in this
Agreement, nor shall any member, official or employee
participate in any decision relating to the Agreement which
affects his personal interests or the interests of any
corporation, partnership or association in which he is directly
or indirectly interested.
603. Time of the Essence
Time is of the essence as to each and every
provision of this Agreement.
604. Non -Liability of Officials and Employees of the
Agency
No member, official, employee or agent of the Agency
or the City shall be personally liable to the Participant, the
Owner, or any successor in interest, in the event of any
default or breach by the Agency or the City or for any amount
which may become due to the Participant or its successors, or
the Owner or its successors or on any obligations under the
terms of this Agreement.
605. Obligations Joint and Several
Notwithstanding any provision of this Agreement to
contrary effect, wherever in this Agreement, including without
limitation the Attachments hereto, there is an obligation,
duty, or liability of the Participant, or Owner, each of the
Participant and Owner shall be jointly and severally liable
without regard to the manner by which such obligations, duty,
or liability is set forth.
606. Entire Agreement, Waivers
This Agreement is executed in four (4) duplicate
originals, each of which is deemed to be an original. This
02/09/93
4331Q/2338/37 -38-
Aareement includes pages 1 through 40 and Attachment Nos. 1
through 17, ;,•hich attac,--meats are incorporated herein by
reference, which constitutes the entire understanding and
agreement cf the parties.
This agreement integrates all of the terms and
conditions mentioned herein or incidental hereto, and
supersedes all negotiations or previous agreements between the
parties or their predecessors in interest with respect to all
or any part of the subject matter hereof.
All waivers of the provisions of this Agreement must
be in writing by the appropriate authorities of the Agency, the
Participant and Owner, and all amendments hereto must be in
writing by the appropriate authorities of the Agency, the
Participant and Owner.
607. Executive rirector to Act on Behalf of Agency
Unless the context of this Agreement or
applicable law requires otherwise, anytime this Agreement
provides for action to be taken by the Agency, such action may
be taken by the Executive Director of the Agency on behalf of
the agency.
700. TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY
This Agreement, when executed by the Participant and
Owner and delivered to the Agency, must be authorized, executed
and delivered by the Agency within twenty (20) days of such
execution and delivery by the Participant and Owner or this
Agreement shall be void, except to the extent that the
Participant and Owner shall consent in writing to a further
extension of time for the authorization, execution and delivery
of this Agreement. The date of this Agreement shall be the
date when it shall have been signed by the Agency.
IN WITNESS WHEREOF, the Agency, Owner and the
Participant have signed this Agreement on the respective dates
set forth below.
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic
Dated: ' �— By
si� &MW
Chair n XA
"AGENCY"
AT T:
Agency Se etary
(Signatures continued on next page]
02/09/93
4331Q/2338/37 -39-
[Signatures continued from previous page]
COACHELLA VALLEY LAND, a Limited
Partnership
z �
Dated: By:
Its:
Dated: By:
Its:
"PARTICIPANT"
WILLIAM J. CUSACK
Dated:
(William J. Cusack
"OWNER"
02/09/93
43319/2338/37 -40-
ATTACHMENT NO. 1
DESCRIPTION OF OWNERSHIP PROPERTIES
[To Be Inserted; separately identify those Ownership
Properties title to which is held by the Participant
or Owner]
02/09/93
4247Q/2338/37 ATTACHMENT NO. 1
ATTACHMENT NO. 2
DESCRIPTION OF RENTAL PROPERTIES
[To Be Inserted; separately identify those Ownership
Properties title to which is held by the Participant
or Owner]
02/09/93
4247Q/2338/37 ATTACHMENT NO. 2
NOT'.CE:
ATTACHMENT NO. 3
BUYER/AGENCY NOTE
This Note requires payment of the principal and
contingent interest if certain events occur.
COMMUNITY PARTNERSHIP PROGRAM
(SHARED APPRECIATION SECOND MORTGAGE MODEL)
19
Property Address
NOTE
California
City State
Zip Code
FOR VALUE RECEIVED, the undersigned,
hereinafter called
"Borrower," hereby jointly and severally promise to pay to
LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and
politic, hereinafter called "Lender," or to Lender's order, at
such place as Lender may designate, lawful money of the United
States of America as hereafter set forth.
1. DEFINITIONS. The following definitions shall apply
throughout this Note:
(A) Appraiser. An appraiser who is a MAI member of the
American Institute of Real Estate Appraisers or a SRPA member
of the Society of Real Estate Appraisers (or in case such
professional designations are modified or discontinued, the
most nearly equivalent successor designations).
(B) Original Sales Price. $
(C) Principal Sum. $
(D) Property. The real property described in Exhibit A
attached to this Note and made a part hereof.
(E) Sale or Transfer. Any sale or transfer of any part --of
the Property or any interest in it, except a sale or transfer
which under federal law, would not, by itself, permit Lender to
exercise a due on sale or due on encumbrance clause.
(F) Sales Price. The price of the Property on which the
transfer tax is paid, plus the amount of any existing financing
that the purchaser of the Property assumes or takes subject to.
02/09/93 ATTACHMENT NO. 3
4247Q/2338/37 (Page 1 of 4)
(G) This Date.
2. TIME OF PAYMENT. This Note shall
full on the date of the first Sale or
This Date, provided that in the event
occurs within forty (40) years of This
automatically and completely forgiven.
19
be due and payable in
Transfer to occur after
no Sale or Transfer
Date, this Note shall be
3. AMOUNT OF PAYMENT. If and when this Note becomes due
pursuant to Section 2 above, Borrower shall pay to Lender the
Principal Sum, together with contingent interest equal to even
percent (7%) of the amount, if any, by which the Sales Price in
the Sale causing payment to become due and payable exceeds the
Original Sales Price from this Date until the date paid in full.
4. PREPAYMENT. Borrower shall have the right at any time to
repay this Note, provided that any prepayment must be in full
and not in part. In the event of prepayment, the amount
payable in full by Borrower shall be the Principal Sum and
other amounts owing, together with contingent interest equal to
seven percent (7%) of the amount, if any, by which the fair
market value of the Property at the time of prepayment (less
the depreciated value of any documented, permanent capital real
estate or fixture improvements to the Property) exceeds the
Original Sales Price. To determine the fair market value of
the Property for purposes of this Section 4, Borrowers and
Lender shall endeavor to agree upon an Appraiser. If the
parties are unable to agree upon an Appraiser within ten (10)
days after Borrower's written notice to Lender that it desires
to repay the Note, the Lender shall have an appraisal made by
an Appraiser of its choice to establish the fair market value.
The Borrower may also, at Borrower's expense, have an appraisal
made by an Appraiser of the Borrower's choice to establish the
market value. If agreement cannot be reached, the average of
the two appraisals shall be deemed to be the market value.
S. SECURITY. This promissory note is secured by a deed of
trust of even date herewith ("Deed of Trust").
6. DEFAULT UNDER DEED OF TRUST. Notwithstanding any other
provisions of this Note, if default occurs in any of the
covenants or agreements contained in the Deed of Trust securing
this Note, this Note shall immediately become due and payable
in full at the option of Lender. In the event Lender exercises
such option, the amount due and payable shall be the Principal
Sum and other amounts owing, together with contingent interest
equal to seven percent (7%) of the amount, if any, by which the
fair market value of the Property at the time of Lender's
exercise exceeds the Original Sales Price. For purposes of
this Section 6, the Lender shall select the Appraiser whose
determination of fair market value shall be final and
conclusive, if approved by the Lender. Failure by Lender to
exercise its option to accelerate in the event of a default
02/09/93 ATTACHMENT NO. 3
4247Q/2338/37 (Page 2 of 4)
4
shall not constitute waiver of the right to exercise such
option in the event of the same or any other default.
7. JOINT AND SEVERAL. The undersigned, if more than one,
shall be jointly and severally liable hereunder.
8. ATTORNEYS FEES. If any default is made hereunder, Borrower
further promises to pay reasonable attorney fees and costs and
expenses incurred by the Lender in connection with any such
default or any other action or other proceeding brought to
enforce any of the provisions of this Note. The Lender's right
to such fees shall not be limited to or by its representation
by staff counsel, and such representation shall be valued at
customary and reasonable rates for private sector legal
services.
9. TIME. Time is of the essence herein.
10. AMENDMENTS. This Note may not be modified or amended
except by an instrument in writing expressing such intention
executed by the parties sought to be bound thereby, which
writing must be firmly attached to this Note so as to become a
permanent part thereof.
11. SEVERABILITY. The covenants of this Note are severable.
Invalidation of any covenant or any part thereof by law,
judgment, or court order shall not affect any other covenant.
12. PLACE OF PAYMENT. Borrower will make payment of all
amounts due to Lender under this Note to Lender at
or such other address
as Lender may designate in writing to Borrower.
13. BORROWER'S WAIVERS. Borrower waives any rights to require
the Lender to do certain things. Those things are: (A) to
demand payment of amounts due (known as "presentment"); (B) to
give notice that amounts due have not been paid (known as
"notice of dishonor"); (C) to obtain an official certification
of nonpayment (known as a "protest").
14. GIVING OF NOTICES. Any notice that must be given to
Borrower under this Note will be given by delivering it or by
mailing it by certified mail addressed to Borrower at the
Property Address above. A notice will be delivered or mailed
to Borrower at a different address if Borrower gives the Lender
written notice of Borrower's different address. Any notice
that must be given to the Lender under this Note will be given
by mailing it certified mail to the Lender at the address
stated in Section 12 above. A notice will be mailed to the
Lender at a different address if Borrower is given written
notice of that different address.
02/09/93 ATTACHMENT NO. 3
4247Q/2338/37 (Page 3 of 4)
15. SUCCESSORS. The covenants and agreements contained in this
Note shall bind, and the rights hereunder shall inure to, the
respective successors and assigns of Borrower and Lender.
BORRO`.I --RS
BORROWERS
BORROWERS
02/09/93 ATTACHMENT NO. 3
4247Q/2338/37 (Page 4 of 4)
ATTACHMENT NO. 4
RESALE RESTRICTION AGREEMENT AND OPTION TO PURCHASE
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
(Space above for Recorder's use.)
This document exempt from a
recording fee pursuant to
Government Code Section 6103.
RESALE RESTRICTION AGREEMENT
AND
OPTION TO PURCHASE
Section 1. Parties. This Resale Restriction Agreement
and Option to Purchase (the "Agreement") is entered into as of
this day of , 19_, by and between the
La Ouinta Redevelopment Agency, a public body, corporate and
politic (the "Agency") and
(the "Owner" and "Transferee").
Section 2. Definitions. The following defined terms
have the meaning indicated in Section 2. Exhibits to this
Agreement are hereby incorporated by reference. All recordings
required by this Agreement shall be in the official records
where deeds are recorded in the county where the land described
on Exhibit A is located.
(a) "A enc " means the La Quinta Redevelopment Agency, a
public body, corporate and politic.
(b) "Agreement" means this resale restriction agreement
and option to purchase.
(c) "Appraiser" means an appraiser who is a MAI member of
the American Institute of Real Estate Appraisers or a SRPA
member of the Society of Real Estate Appraisers (or in case
such professional designations are modified or discontinued,_
the most nearly equivalent successor designations.).
(d) "Business Day" means a day other than a Saturday or
Sunday on which banks located in the county in which the
Residence is located are not required or authorized to remain
closed.
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 1 of 12) Partnership Program
(e) "BMR Unit" means the Residence, which has been
designated as a a below -market rate unit by Section 4 of this
Agreement.
(f) "Designee" means a government or nonprofit
organization which the Agency has desiG_--ated to become the
Optionee pursuant to Section 6.
(g) "The term "including"" or variants thereof shall mean
'including without limitation.'
(h) "Index" means the housing component of the Consumer
Price Index for All Urban Consumers (CPI-UO) as published
periodically by the United States Department of Housing and
Urban Development.
(i) "Optionee" means the party who, pursuant to Section 6,
is entitled to exercise the Purchase Option as provided in this
Agreement. As provided in Section 6, the Optionee may be: (i)
the Agency; (ii) a Designee; or (iii) an individual private
buyer who meets the Agency's eligibility qualifications and to
whom the Agency's rights as optionee have been assigned by the
Agency, its Designee, or a prior Optionee.
(j) "Owner" means
(k) "Prepayment Fees" means
(1) "Prohibited Transfer" has the meaning stated in
Section 7.
(m) "Purchase Option" means the option to purchase granted
by the Owner, as optionor, to the Optionee, as optionee, by
this Agreement.
(n) "Residence" means the real property described on
Exhibit A, including all improvements and appurtenances.
(o) "Transfer" has the meaning stated in Section 7.
Section 3. Recitals. The following recitals of facts
are a material part of this Agreement.
(a) WHEREAS, the Agency has developed a program to provide
housing opportunities to low and moderate income purchasers of
homes to be offered for sale at prices which are below those
otherwise prevailing in the market; and
(b) WHEREAS, the intent of the Agency is to preserve the
affordability of the homes for persons of low and moderate
income for as long as possible.
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 2 of 12) Partnership Program
(c) NOW THEREFORE, in consideration of the benefits
received 'v the Owner, and for other good and valuable
consideration, -z:he receipt and sufficiency of which is hereby
acknowledged, and intending to be bound, the Owner and the
Agency agree as follows:
Section 4. The Residence. The Residence which is the
subject of this Agreement has a street address of
and its legal description
is set forth on "Exhibit A" attached to this Agreement and
incorporated herein. The Residence is hereby designated as a
below -market rate unit (the "BMR Unit") and shall be subject to
the terms and conditions herein set forth.
Section 5. Owner Representations and Warranties. The
Owner represents and warrants to the Agency that the financial
and other information previously provided to the Agency by the
Owner for the purpose of qualifying to purchase the Residence
was true and correct at the time it was given and remains true
and correct as of the date of this Agreement.
Section 6. Purchase Option. The Owner hereby grants to
the Agency, as optionee (the "Optionee"), an option to purchase
the Residence (the "Purchase Option") on the terms of this
Agreement. The Agency may designate a governmental or
nonprofit organization (the "Designee") to exercise the
Purchase Option. The Designee, when so designated, shall then
be the Optionee. The Agency or its Designee, as the case may
be, may assign the Purchase Option to an individual private
buyer who meets the Agency's eligibility qualifications, who
shall then become the Optionee. After the exercise of the
Purchase Option by the then-Optionee in the manner hereinafter
prescribed, the Optionee may assign the Purchase Option to any
substitute individual private buyer who meets the Agency's
eligibility requirements and is approved by the Agency;
provided, however, that such subsequent assignment shall not
extend any time limits contained herein. Upon approval by the
Agency, such substitute buyer shall become the Optionee. The
Agency shall give the Owner notice of any designation of a
Designee. The Agency, the Designee or the Optionee, as the
case may be, shall give the Owner notice of any assignment to
an Optionee. In addition to giving notice to the Owner, any
designation of a Designee or assignment by the then Optionee of
the Purchase Option shall be by a written instrument executed
and acknowledged by the parties, in recordable form, which
shall be recorded in the Official Records of the County
Recorder in the County where the Residence is located.
Section 7. Transfer by Owner. Any attempt by the Owner
to make a Prohibited Transfer of'title to or any interest in
the Residence in violation of this Agreement shall be void and
subject to exercise by the Optionee of the Purchase Option
described in Section 6.
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 3 of 12) Partnership Program
(a) "Transfer" means any voluntary or involuntary sale,
assignment or transfer of ownership of or any interest in the
Residence, including a fee simple interest, tenancy in common,
joint tenancy, community property, tenancy by the entireties,
life estate, or other limited estate, leasehold interest or any
rental of the Residence, or any interest evidenced by a land
contract. Any Transfer without satisfaction of the conditions
of this Agreement shall be deemed a "Prohibited Transfer".
(b) The following Transfers are not considered Prohibited
Transfers and therefore are not subject to exercise by the
Optionee of the Purchase Option: (i) transfer by gift, devise,
or inheritance to the Owner's spouse or natural or adopted
children; (ii) transfer of title by an Owner's death to a
surviving joint tenant, tenant by entireties, or a surviving
spouse of community property; (iii) transfer of title to a
spouse as part of divorce or dissolution proceedings;
(iv) granting of a leasehold interest or rental of the
Residence for a period of less than one year; or (v) transfer
of title or an interest in the Residence to the spouse in
conjunction with marriage; providing, however: (a) that these
covenants shall continue to run with the title to the Residence
following said Transfers; and (b) that an instrument be
executed, acknowledged and recorded by the transferee
containing the following covenant: "This Residence is subject
to the Resale Restriction Agreement and Option to Purchase (the
"Agreement") and transferee, on behalf of transferee, and
transferee's successors and assigns, covenants and agrees to be
bound by and perform the Agreement, and to include in any
further Transfer of the Residence the covenant required by
Section 7(b) of the Agreement." A transferee who satisfies the
conditions of this Section 7(b) shall then be the Owner.
Section B. Other Permitted Transfers by Owner. The
Owner also may Transfer the Residence if the following
conditions are satisfied:
(a) The Transferee intends to occupy the Residence as its
principal place of residence; the Transferee may not
collectively earn more than % of the then current median
income for the area in which the property is located as defined
by the United States Department of Housing and Urban
Development.
(b) The Owner must notify the Agency at least fifteen (15)
business days prior to the date of Transfer of the Residence
and otherwise comply with all the eligibility requirements of
the Agency's program described at Section 3(a) of this
Agreement, including the earnings limitations applicable to the
transferee contained in Section 8(a) of this Agreement. The
Agency shall approve or disapprove of the proposed transferee
within fifteen (15) business days. In the event the Agency
does not disapprove of the proposed transferee by notice to the
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 4 of 12) Partnership Program
Owner within fifteen (15) business days after receiving the
Owner's notice, the Agency shall be deemed to have approved the
proposed transferee.
(c) Within fifteen (15) business days after approval
pursuant to Section 8(b) the transferee shall execute an
agreement under the terms of which the transferee shall assume
the obligations and duties and agree to be bound by the
restrictions of this Agreement, by a written and recorded
instrument as provided in Section 7(b). A transferee who
satisfies the conditions of this Section 8 shall then be the
Owner.
Section 9. Procedure on Sale. Whenever the Owner of
the Residence no longer desires to own the Residence, and
intends to make a Transfer of title to or any interest in the
Residence which, unless the Owner complies with this Section 9,
would be a Prohibited Transfer, the Owner shall notify the
Optionee to that effect. The Optionee, upon receipt of said
notice, shall then have the right to exercise its Purchase
Option by delivery of notice to the Owner of such exercise at
any time within thirty (30) days from the receipt by the
Optionee of such written notice from the Owner of intent to
sell or otherwise Transfer the Residence.
If the Optionee exercises its right to purchase the
Residence, closing shall be through an escrow with the title
insurance company issuing the owners title insurance policy
required by Section 11 of this Agreement, utilizing the form of
escrow agreement customarily used by such escrowee in
residential transactions with the Agency, modified to the
extent necessary to conform to this transaction. The closing
of escrow ("Closing") shall be within sixty (60) days of the
opening of escrow by both parties. The escrow shall be opened
upon delivery by the Optionee to the Owner of notice of the
Optionee's exercise of the Purchase Option or as soon
thereafter as possible. In the event the Optionee decides to
assign the Purchase Option, the Optionee may postpone opening
of escrow until selection of the new Optionee pursuant to
Section 6, or as soon thereafter as possible, provided that th
opening of the escrow shall occur no later than thirty (30)
business days after the Owner is notified by the Optionee of
the Optionee's exercise of its Purchase Option. In the event
the Optionee postpones opening of escrow and is unable to
select such an assignee, the Optionee retains the right to open
escrow and complete the purchase provided that such escrow is
opened within thirty (30) business days and the sales
transaction is completed within ninety (90) days from the
Owner's notice of intent to sell.
Up to ten (10) days before close of escrow, the Owner may
give notice to the Optionee of the Owner's intent to terminate
the escrow. The Optionee shall retain the right by notice to
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 5 of 12) Partnership Program
the Owner to complete the purchase of the Residence for an
additional period of ten (10) days commencing from the date of
receipt of notice of the Owner's intent to terminate the escrow.
Section 10. Transfer by Owner if Purchase Option is not
Exercised. In the event the Optionee does not exercise its
Purchase Option within thirty (30) days of the Owner's notice
pursuant to Section 9, the Owner may offer the Residence for
sale to anyone, regardless of income criteria. The Owner,
however, will be subject to the Purchase Price limitation
contained in Section 11. The proposed buyer must purchase the
property subject to this Agreement and will be required to
execute, acknowledge and record an agreement in the form
provided in Section 7(b) under the terms of which the
transferee shall assume the obligations and duties of, and
agree to be bound by, the restrictions of this Agreement.
Section 11. Purchase Price; Owner's Warranties; Title
Insurance.
(a) Closing costs and title insurance premiums shall be
paid pursuant to the custom and practice in the Agency at the
time of the opening of such escrow. At the Closing the Owner
shall furnish the Optionee an ALTA owner's residential title
insurance policy, subject to its Exclusions from Coverage,
special exceptions for current taxes and assessments not yet
due, and such matters (other than taxes, assessments, and
encumbrances created or suffered by the Owner who signed this
Agreement and all those claiming through Owner) which were
exceptions to title on the date of this Agreement. At the
Closing Owner shall convey title to the Optionee or the
Optionee's nominee by grant deed, or its equivalent which
warrants title against matters created or suffered by the Owner
and those claiming under the Owner.
(b) The purchase price (the "Purchase Price") of the
Residence shall be fixed at the lower amount arrived at via the
following two methods:
(i) The Optionee shall have an appraisal made by a
neutral professional Appraiser of its choice to establish the
market value.
The Owner may also, at Owner's own expense, have an
appraisal made by a neutral professional Appraiser of the
Owner's choice to establish the market value. If agreement
cannot be reached, the average of the two appraisals shall be
deemed to be the market value.
(ii) Dollars
($ ) plus the amount of any Prepayment Fees paid by
the Owner who initially entered into this Agreement at the time
that Owner purchased the Residence (base price), plus an
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 6 of 12) Partnership Program
amount, if any, to compensate for any increase in the housing
component for all Urban Consumers (CPI-U) of the Consumer Price
Index as published periodically by the United States Department
of Housing and Urban Development (the "Index"). For that
purpose, the Index prevailing on the date of the purchase of
the Residence by the Owner who initially entered into this
Agreement shall be compared with the latest Index available on
the date of receipt by the Optionee of the Owner's notice of
intent to sell. The percentage increase in the Index, if any,
shall be computed and the base price shall be increased by that
percentage; provided, however, that the price in no event shall
be lower than the purchase price paid by the selling Owner when
he purchased the Residence.
This adjusted price shall be increased by the value of
any documented, permanent capital real estate or fixed
improvements approved by Agency.
No price adjustment will be made except upon
presentation to the Agency of written documentation of all
expenditures made by Owner for which an adjustment is requested.
(c) Any sale price determined through the use of the
method described in Section 11(b)(ii) (base price adjusted by
the Index and value of improvements, applications, fixtures or
equipment added) shall be adjusted by decreasing said price by
an amount to compensate for deferred maintenance costs, which
amount shall be determined as follows: Upon receipt of notice
of Owner's intent to sell, the Optionee shall have fifteen (15)
days to determine whether any violations of applicable
building, plumbing, electric, fire or housing codes or any
other provisions of the La Quinta Municipal Code exist. Owner
hereby grants Optionee the right, upon reasonable prior notice
to Owner and to any occupants of the Residence, the right to
enter and inspect the Residence to determine if any such
deficiencies exist.
In the event deficiencies are noted, the Optionee
shall obtain estimates to cure the observed deficiencies. The
Owner shall cure the deficiencies in a reasonable manner
acceptable to the Optionee within forty-five (45) days of being
notified of the results of the inspection, but in no event
later than the Closing. Should Owner fail to cure such
deficiencies prior to the scheduled date of the Closing, at the
option of the Optionee, exercised on or before the Closing, the
escrow may be closed, title passed and money paid to the Owner
subject to the condition that such funds as are necessary to
pay for curing such deficiencies (based upon written estimates
obtained by the Optionee) shall be withheld from the money due
the Owner and held by the escrow holder for the purpose.of
curing such deficiencies. The Optionee shall cause such
deficiencies to be cured and upon certification of completion
of work by the Agency, the escrow holder shall utilize such
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 7 of 12) Partnership Program
funds to pay for said work. Any remaining funds shall be paid
to the Owner. No other payment shall be due to the Owner.
(d) in no event shall the Agency become in any way liable
to the Owner, nor become obligated in any manner to any other
party, by reason of the assignment of its Purchase Option, nor
shall the Agency be in any way obligated or liable to Owner for
anv failure of the then Optionee to consummate a purchase of
the Residence or to comply with the terms of the Purchase
Option.
(e) Until such time as the Optionee's Purchase Option is
exercised, waived, or expired, the. Residence shall not be
Transferred, as defined in Section 7 above, except as provided
in Section 7(b) or except with the express written consent of
Agency or its Designee, which consent shall be consistent with
the Agency's goal of creating, preserving, maintaining, and
protecting housing for persons of low and moderate income.
This provision shall not prohibit the Owner from encumbering
title for the sole purpose of securing financing; however, in
the event of foreclosure or transfer by deed in lieu of
foreclosure, the provisions of Section 13 of this Agreement
shall govern.
Section 12. Termination of Purchase Option. The
provisions set forth in this Agreement relating to the
Optionee's Purchase Option shall terminate and become void
automatically forty (40) years following the date of execution
of this Agreement.
Section 13. Default and Foreclosure. A request for,
notice of default and any notice of sale under any deed of
trust or mortgage with power of sale encumbering the Residence
shall be recorded by the Agency, any Designee and any other
Optionee. Any notice of default given pursuant to Civil Code
Section 2924b, as amended, shall constitute an Owner's notice
of intent to sell under Section 9 of this Agreement, and the
Optionee may exercise its Purchase Option pursuant to the
provisions of this Agreement; provided, however, that,
notwithstanding any language contained in this Agreement to the
contrary, with regard to the rights of the lien holder, the
Optionee must complete such purchase no later than the end of
the period established by California Civil Code Section 2924c
for reinstatement of a monetary default under the deed of trust
or mortgage.
In the event of default and foreclosure, the-Optionee shall
have the same right as the Owner to cure defaults and redeem
the Residence prior to foreclosure sale. Such redemption shall
be subject to the same fees, charges and penalties which would
otherwise be assessed against the Owner. Nothing herein shall
be construed as creating any obligation on the part of the
Agency to cure any such default, nor shall this right to cure
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
42470/2338/37 (Page 8 of 12) Partnership Program
and redeem operate to extend any time limitations in the
default provisions of the underlying deed of trust or mortgage.
In the event that no recruest for notice is recorded, the
Optionee's Purchase Option shall run from the date the notice
of default is given to the Owner, and any such purchase must be
completed within the period established by this Section 13. In
the event the Optionee elects not to exercise its rights to
purchase upon default, and a foreclosure sale is consummated,
any surplus proceeds to which the Owner may be entitled
following foreclosure under California state law shall be paid
as follows: After any required payment of encumbrances, that
portion of surplus, if any, up to but not exceeding the net
amount that the Owner would have received after any required
payment of encumbrances under the formula set forth above had
the Optionee exercised its right to purchase the Residence on
the date of the foreclosure sale, shall be paid to the Owner on
the date of the foreclosure sale; the balance of the surplus,
if any, shall be paid to the Optionee.
In the event that the Optionee does not elect to purchase
the Residence pursuant to the provisions of this Section 13 and
the Residence is sold through foreclosure, the provisions of
Section 18 below pertaining to subordination shall apply.
Section 14. Distribution of Insurance and Condemnation
Proceeds. In the event that the Residence is condemned or
destroyed (or in the event that the Residence consists of a
unit in a condominium project and the condominium project is
destroyed and insurance proceeds are distributed to the Owner,
instead of being used to rebuild, or in the event of
condemnation, if proceeds thereof are distributed to the Owner,
or in the event of termination of the condominium, liquidation
of the association and distribution of the assets of the
association to the members thereof, including the Owner), any
surplus proceeds from insurance or condemnation so distributed
remaining after payment of encumbrances on the Residence shall
be distributed as follows:
That portion of the surplus up to but not to exceed the net
amount that Owner would have received under the formula set
forth above had the Optionee exercised its Purchase Option on
the date of the destruction, condemnation valuation date, or
liquidation, shall be distributed to the Owner, and the balance
of such surplus, if any, shall be distributed to the Optionee.
Section 15. Notice of Prohibited Transfer. Within -
thirty (30) days after receiving notification of a Prohibited
Transfer, the Optionee will give written notice to the Owner,
specifying the nature of the Prohibited Transfer. If the
violation is not corrected to the satisfaction of the Optionee
within ten (10) days after the date of the notice, or within
such further time as the Optionee determines is necessary to
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 9 of 12) Partnership Program
correct the violation, the Optionee may declare a default under
this Agreement. Upon the declaration of a default, the
Optionee may apply to a court of competent jurisdiction for
specific performance of this Agreement, for an injunction
prohibiting a proposed sale or transfer in violation of this
Agreement, for a declaration that the Prohibited Transfer is
void, or for any such other relief as may be appropriate.
Section 16. Attorney Fees and Costs. If any action is
brought to enforce the terms of this agreement, the prevailing
party shall be entitled to reasonable attorneys' fees and cost.
Section 17. Controlling Agreement. The Owner covenants
that the Owner has not executed, and will not execute any other
agreement with provisions contradictory to or in opposition to
the provisions hereof, and that in any event, the Owner
understands and agrees that this Agreement shall control the
rights and obligations between and among the parties.
Section 18. Subordination. This Agreement is
subordinate to any deed of trust or mortgage on the Property
made by or held by an institutional lender or investor. Any
party, and its successors and assigns, receiving title to the
Property through a trustee's sale, a judicial foreclosure sale
or deed in lieu of foreclosure, or such deed of trust or
mortgage, and any conveyance or transfer thereafter, shall
receive title free and clear of the provisions of this
Agreement.
Section 19. Severability. If any one or more of the
provisions contained in this Agreement shall for any reason be
held to be invalid, illegal or unenforceable in any respect,
then such provision or provisions shall be deemed severable
from the remaining provisions contained in this Agreement, and
this Agreement shall be construed as if such invalid, illegal
or unenforceable provision(s) had never been contained herein.
Section 20. Time of the Essence. Time is of the essence
of this entire Agreement. Whenever under the terms of this
Agreement the time for performance falls on a day which is not
a business day, such time for performance shall be on the next
day that is not a business day.
Section 21. Notices. All notices required herein shall
be in writing and shall be considered as given when personally
delivered or one (1) business day following the day on which
notice is delivered to Federal Express or similar overnight
delivery service with all delivery charges paid, addressed to
the parties as follows:
If to Agency: La Quinta Redevelopment Agency
Attention: Executive Director
78-105 Calle Estado
La Quinta, California 92253
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 10 of 12) Partnership Program
If to Owner:
If to Optionee: At the address specified in the
(other than designation or assignment required
the Agency) by Section 6.
The address of a party for notices may be changed by that
party's written designation to all other parties of the new
address and the recording of the designation, including the
recording reference of this Agreement and its legal
description, Exhibit A.
Section 22. Covenants as to Use of and Title to the
Residence. The Owner covenants and agrees with the Agency that
the Owner will use and maintain the Residence as a single
family residence and will perform all obligations of any
consensual lien encumbering the Residence, until a permitted
Transfer, purchase by the Optionee pursuant to this Agreement
or Termination of this Agreement.
Section 23. Captions and Pronouns. The captions and
headings of the various Sections of this Agreement are for
convenience only, and are not to be construed as confining or
limiting in any way the scope or intent of the provisions
hereof. Whenever the context requires or permits, the singular
shall include the plural, the plural shall include the
singular, and masculine, feminine and neuter shall be freely
interchangeable.
Section 24. Runnina of Benefits and Burdens. All
provisions of this Agreement, including the benefits and
burdens, run with the land described in Exhibit A and are
binding upon the heirs, successors, assigns and personal
representatives of the parties hereto and inure to the benefit
of the heirs, personal representatives and permitted successors
and assigns of the parties hereto.
Section 25. Construction. The rule of strict
construction does not apply to this Agreement. This Agreement
shall be given a reasonable construction so that the intention
of the parties, to create a valid and enforceable Purchase
Option and to prevent any Prohibited Transfer or any use of the
Residence in violation of this Agreement is carried out.
Section 26. Termination. This Agreement shall terminate
on the earlier of conveyance to the Optionee or its nominee
pursuant to exercise of the Purchase Option, acquisition of
title through a foreclosure of any consensual lien to which
this Agreement has been subordinated, or termination of the
Purchase Option pursuant to Section 12 (collectively
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 11 of 12) Partnership Program
"Termination"). Upon Termination of this Agreement, on request
of the then record owner of the fee title to the Residence, the
Agency and any other Optionee shall execute, acknowledge and
record a termination of this Agreement. To the extent
permitted by law, any unfulfilled obligations of any Owner
shall survive the Termination of this Agreement, but this
Agreement shall no longer affect title to the Residence.
IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first written above.
THE LA QUINTA REDEVELOPMENT
AGENCY, a public body, corporate
and politic
By:
Attest:
Agency Secretary
Executive Director of the
Agency
(Agency's and Owner's Signature must
be acknowledged by a Notary Public)
"AGENCY"
"OWNER"
02/09/93(XA-1) ATTACHMENT NO. 4 FNMA Community
4247Q/2338/37 (Page 12 of 12) Partnership Program
EXHIBIT A
PROPERTY DESCRIPTION
The land referred to herein is situated in the State of
California, County of Riverside, City of La Quinta, and is
described as follows:
02/09/93 EXHIBIT "A" TO
4247Q/2338/37 ATTACHMENT NO. 4
ATTACHMENT NO. 5
PROMISSORY NOTE
$400,000 La Quinta, California
FOR VALUE RECEIVED, COACHELLA VALLEY LAND, a Limited
Partnership ("Participant") and WILLIAM J. CUSACK ("Owner"),
collectively, "Makers" promises to pay to LA QUINTA
REDEVELOPMENT AGENCY, a public body, corporate and politic
("Holder") at 78-105 Calle Estado, P.O. Box 1504, La Quinta,
California 92253, or at such other address as Holder may direct
from time to time in writing, the sum of Four Hundred Thousand
Dollars ($400,000) (the "Note Amount"), together with interest
thereon at the rate set forth herein. All sums payable
hereunder shall be payable in lawful money of the United States
of America. This Promissory Note ("Note") is made in
connection with the provision by the Holder of funds equal to
the Note pursuant to that certain Affordable Housing Agreement
by and among Makers, Other Owner, and the Holder, dated as of
1993 (the "Agreement").
1. Disbursements.
The Note Amount shall be disbursed pursuant to Section
304 of the Agreement. The record of such disbursements shall
be recorded from time to time by the Agency Executive Director
or his designee on Exhibit A to this Promissory Note.
2. Interest Rate.
Simple interest shall accrue on the Note Amount from
the date of disbursement at the rate of ten percent (10%) per
annum, but in no event greater than the maximum interest rate
permitted by law and provided further that the interest rate
shall be subject to adjustment (reduction below 10%, but not
increase above 10%) based upon the first deeds of trust, as
more fully provided in Section 304.
3. Due Date.
The principal amount of the Note Amount shall be
payable in increments of Twenty Thousand Dollars ($20,000) upon
the sale of each of the Rental Properties (as defined in the
Agreement) until the Note Amount is paid in full. In addition,
the principal amount of the Note Amount, plus all interest then
accrued upon the Note Amount, shall be immediately due and
payable upon (i) any default of the Agreement which is not
cured within the time set forth in Section 501 of the Agreement
and, if not sooner paid in full, (ii) on the fifth (5th)
anniversary of the date first above written.
02/09/93 ATTACHMENT NO. 5
4247Q/2338/37 (Page 1 of 3)
4. Prepayment of Note Amount.
Maker may prepay to Holder the full Note Amount,
together with all accrued and unpaid interest thereon at the
rate set forth in section 2 hereof, at any time prior to the
due date of the Note Amount without penalty.
S. Application of Payments.
Each payment hereunder shall be credited first to
interest then accrued and the remainder, if any, to principal.
Interest shall cease to accrue upon principal so credited.
6. Security.
This Note is secured by a Deed of Trust by and between
Makers, as trustor, and Holder, as beneficiary (the "Rental
Properties Deed of Trust").
7. Holder May Assign.
Holder may, at its option, assign its right to receive
payment under this Note without necessity of obtaining the
consent of the Makers.
8. Makers Assignment Prohibited.
In no event shall Makers assign or transfer any
portion of this Note without the prior express written consent
of the Holder, which consent may be given or withheld in the
Holder's sole discretion.
9. Attorneys' Fees and Costs.
In the event that any action is instituted with
respect to this Note, the prevailing party promises to pay such
sums as a court may fix for court costs and reasonable
attorneys' fees. Holder's right to such fees shall not be
limited to or by its representation by staff counsel, and such
representation shall be valued at customary and reasonable
rates for private sector legal services.
10. Non -Waiver.
Failure or delay in giving any notice required
hereunder shall not constitute a waiver of any default or late
payment, nor shall it change the time for -any default or
payment.
11. Successors Bound.
This Note shall be binding upon the parties hereto and
their respective heirs, successors and assigns.
02/09/93 ATTACHMENT NO. S
4247Q/2338/37 (Page 2 of 3)
12. Terms.
Any terms not separately defined herein shall have the
same meanings as set forth in the Agreement.
COACHELLA VALLEY LAND, a Limited
Partnership
Dated: , 1993
Dated: , 1993
Dated: , 1993.
Dated:
By:
Its:
By:
Its.
WILLIAM J. CUSACK
William J. Cusack
"MAKERS"
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and
politic
1993 By:
Executive Director
"HOLDER"
ATTEST:
Agency Secretary
02/09/93 ATTACHMENT NO. S
4247Q/2338/37 (Page 3 of 3)
EXHIBIT "A"
DISBURSEMENT RECORD
Acknowledgement of
Disbursement Amount Date Receipt of Maker
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
02/09/93 EXHIBIT "A" TO
4247Q/2338/37 ATTACHMENT NO. 5
ATTACHMENT NO. 6
RENTAL PROPERTIES DEED OF TRUST
RECORDING REQUESTED BY AND )
When Recorded Mail To: )
Stradling, Yocca, Carlson )
& Rauth )
660 Newport Center Drive )
Suite 1600 )
Newport Beach, CA 92660-6441)
Attn: Mark J. Huebsch, Esq. )
(Space Above Provided For Recorder)
DEED OF TRUST WITH ASSIGNMENT OF RENTS
(SHORT FORM)
This DEED OF TRUST, made ,
between COACHELLA VALLEY LAND, a Limited Partnership and
WILLIAM J. CUSACK, a married man as his sole and separate
property, collectively herein called TRUSTOR, whose address is
74-225 Highway 111, Suite C, Palm Desert, California 92261,
FIRST AMERICAN TITLE INSURANCE COMPANY, a California
corporation, herein called TRUSTEE, and LA OUINTA REDEVELOPMENT
AGENCY, herein called BENEFICIARY,
WITNESSETH: That Trustor grants to Trustee in Trust, with Power
of Sale, that property in the City of La Ouinta, County of
Riverside, State of California, described as:
See attached Exhibit A, incorporated herein
Together with the rents, issues and profits thereof, subject,
however, to the right, power and authority hereinafter given to
and conferred upon Beneficiary to collect and apply such rents,
issues and profits.
For the Purpose of Securing (1) payment of the sum of
$ with interest thereon according to the terms of
a promissory note or notes of even date herewith made by
Trustor, payable to order of Beneficiary, and extensions or
renewals thereof, and (2) the performance of each agreement of
Trustor incorporated by reference or contained herein (3)
Payment of additional sums and interest thereon which may
02/09/93 ATTACHMENT NO. 6
4247Q/2338/37 (Page 1 of 3)
hereafter be loaned to Trustor, or his successors or assigns,
when evidenced by a promissory note or notes reciting that they
are secured by this Deed of Trust.
To protect the security of this Deed of Trust, and with respect
to the property above described, Trustor expressly makes each
and all of the agreements, and adopts and agrees to perform and
be bound by each and all of the terms and provisions set forth
in subdivision A, and it is mutually agreed that each and all
of the terms and provisions set forth in subdivision B of the
fictitious deed of trust recorded in Orange County August 17,
1964, in all other counties August 18, 1964, in the book and at
the page of Official Records in the office of the county
recorder of the county where said property is located, noted
below opposite the name of such county, namely:
COUNTY
BOOK
PAGE
Alameda
1288
556
Alpine
3
130-31
Amador
133
438
Butte
1330
513
Calaveras
185
338
Colusa
323
391
Contra Costa
4684
1
Del Norte
101
549
E1 Dorado
704
635
Fresno
5052
623
Glenn
469,
76
Humboldt
801
83
Imperial
1189
701
Inyo
165
672
Kern
3756
690
Kings
Lake
Lassen
Los Angeles
Madera
Marin
Mariposa
Mendocino
Merced
Modoc
Mono
Monterey
Napa
Nevada
Orange
858
437
192
T-3878
911
1849
90
667
1660
191
69
357
704
363
7182
713
110
367
874
136
122
453
99
753
93
302
239
742
94
18
COUNTY
Placer
Plumas
Riverside
Sacramento
San Benito
San Bernardino
San Francisco
San Joaquin
San Louis
Obispo
San Mateo
Santa Barbara
Santa Clara
Santa Cruz
Shasta
San Diego
Sierra
Siskiyou
Solano
Sonoma
Stanislaus
Sutter
Tehama
Trinity
Tulare
Tuolumne
Ventura
Yolo
Yuba
02/09/93 ATTACHMENT NO. 6
4247Q/2338/37 (Page 2 of 3)
BOOK
1028
166
3778
5039
300
6213
A-804
2855
1311
4778
2065
6626
1638
800
SERIES 5 Book
Page
38
506
1287
2067
1970
655
457
108
2530
177
2607
769
398
PAGE
379
1307
347
124
405
768
596
283
137
175
881
664
607
633
1964,
149774
187
762
621
427
56
585
183
595
108
160
237
16
693
shall inure to and bind the parties hereto, with respect to the
property above described. Said agreements, terms and
provisions contained in said subdivision A and B, (identical in
all counties), are by the within reference thereto,
incorporated herein and made a part of this Deed of Trust for
all purposes as fully as if set forth at length herein, and
Beneficiary may charge for a statement regarding the obligation
secured hereby, provided the charge therefor does not exceed
the maximum allowed by law.
The undersigned Trustor, requests that a copy of any notice of
default and any notice of sale hereunder be mailed to him at
his address hereinbefore set forth.
The Deed of Trust Rider executed by Trustor is attached hereto,
marked as Exhibit A, and made part of this Deed of Trust.
Signature of Trustor(s)
COACHELLA VALLEY LAND, a Limited
Partnership
By:
Its:
By:
Its:
William J. Cusack
02/09/93 ATTACHMENT NO. 6
4247Q/2338/37 (Page 3 of 3)
EXHIBIT "A" TO
ATTACHMENT NO. 6
DEED OF TRUST RIDER
This Deed of Trust Rider is attached to and made a part
the Deed of Trust with Assignment of Rents dated
199_ ("Deed of Trust") made payable to
LA QUINTA REDEVELOPMENT AGENCY, as Beneficiary, and executed
COACHELLA VALLEY LAND, a Limited Partnership and WILLIAM J.
CUSACK, a married man as his sole and separate property,
collectively as Trustor.
of
by
1. Deed of Trust. Trustor agrees to the provisions
of this Deed of Trust Rider in addition to those of the Deed of
Trust.
2. Affordable Housing Agreement. On
199_, Trustor and Beneficiary entered into
that certain "Affordable Housing Agreement" ("AHA") by and
among Beneficiary and Trustor. In addition to securing the
obligation of Trustor to repay the sum(s) set forth in the Deed
of Trust, upon the terms and conditions set forth in Sections
303, 304 and 305 of the AHA, the Deed of Trust shall also
secure performance of the entire AHA by Participant and Owner
as defined in the AHA (collectively, "Promisors"), and upon
default by Promisors of any term or provision of the AHA, and
failure to cure within the prescribed time period(s) set forth
in the AHA, Beneficiary shall have the right to cause Trustee
to enforce all of the rights and remedies of Trustee or
Beneficiary under the Deed of Trust, including, but not limited
to, acceleration of all sum(s) secured by the Deed of Trust,
invocation of the power of sale and any other right or remedy
of Beneficiary or Trustee set forth in the Deed of Trust.
COACHELLA VALLEY LAND, a Limited
Partnership
By:
Its:
By:
Its:
William J. Cusack
02/09/93 EXHIBIT "A" TO
4247Q/2338/37 ATTACHMENT NO. 6
STATE OF CALIFORNIA
ss.
COUNTY OF
On , before me,
(name, title, e.g., "Jane Doe, Notary Public"),
personally appeared
(name(s) of signer(s)),
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.
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Officer(s):
Partner(s):
Attorney -in -Fact
Trustee(s)
Guardian/Conservator
Other:
(Signature of Notary)
Title(s)
Limited General
SIGNER IS REPRESENTING:
Name of Person(s) or Entity(ies)
ATTENTION NOTARY: Although the information requested below
is OPTIONAL, it could prevent fraudulent attachment of this
certificate to another document.
THIS CERTIFICATE
MUST BE ATTACHED
TO THE DOCUMENT
DESCRIBED
AT RIGHT:
02/09/93
42479/2338/37
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above:
ATTACHMENT NO. 6
ATTACHMENT NO. 7
MAINTENANCE AGREEMENT
This Maintenance Agreement ("Maintenance Agreement") is
entered into as of the day of , 1993, by
and among Coachella Valley Land, a Limited Partnership (the
"Participant"), William J. Cusack, a married man ("Owner") and
the La Quinta Redevelopment Agency, a public body, corporate
and politic (the "Agency").
RECITALS
WHEREAS, the Agency, the Participant and Owner have entered
into that certain Affordable Housing Agreement dated as of
(the "AHA"), which provides for the
maintenance of the Rental Properties for rent to Qualifying
Rents at Affordable Rents;
WHEREAS, the AHA also provides that the Rental Properties,
including without limitation the improvements thereon, are to
be maintained by the Participant and Owner, and provides that
certain remuneration is to be provided by the Agency to the
Participant in connection therewith;
WHEREAS, the AHA is incorporated herein by this reference
and any capitalized term not defined herein shall have the
meaning established therefor in the AHA; and
WHEREAS, the Participant and Owner are the owners of the
Rental Properties;
NOW, THEREFORE, the Participant and Owner agree to maintain
the Rental Properties in conformity with this Maintenance
Agreement.
ARTICLE I
DEFINITIONS
The definitions provided herein shall be applicable to this
Maintenance Agreement and also to any amendment or supplemental
Maintenance Agreement (unless the context implicity or
explicitly shall prohibit).
Section 1. "Agency" shall mean the La Quinta Redevelopment
Agency and its successors in interest.
Section 2. "City" shall mean and refer to the City of
La Quinta, a third party beneficiary to this Declaration.
02/09/93 ATTACHMENT NO. 7
42479/2338/37 (Page 1 of 7)
Section 3. "City Code" shall mean and refer to the City of
La Ouinta Municipal Code as revised from time to time.
Section 4. "House" means a dwelling for human habitation.
Section S. "Mortgage" shall mean and include a deed of
trust, an installment land contract with power of Sale, a
sale/leaseback for financing purposes, as well as a mortgage in
the conventional sense.
Section 6. "Mortgagee" shall mean a person or entity to
whom a mortgage is made and shall include the beneficiary of a
deed of trust, the vendor under an installment land contract
with power of sale and the lessor under a sale/leaseback
arrangement; "mortgagor" shall mean a person or entity who
mortgages his or its property to another, i.e., the maker of a
mortgage, and shall include the trustor of a deed of trust, the
vendee under an installment land contract with power of sale
and the lessee under a sale/leaseback arrangement.
ARTICLE II
LAND USE RESTRICTIONS
The Rental Properties and improvements thereon, hereinafter
sometimes referred to as "premises", shall be occupied and used
as follows for the periods required pursuant to the AHA:
Section 1. Permitted Uses. The Rental Properties shall be
used only for rental to Qualifying Renters at Affordable Rents,
and for no other purposes except as the Agency may otherwise
prescribe as to any of the Rental Properties which the Agency
may hereafter elect to purchase pursuant to the AHA.
_a Participant or Owner shall not convert or allow the
conversion of the Rental Properties to condominium ownership
during the term of this Maintenance Agreement without the prior
written approval of the Agency, which approval the Agency may
grant, withhold or deny in its sole and absolute discretion.
ARTICLE III
OBLIGATION TO MAINTAIN, REPAIR AND REBUILD
Section 1. Maintenance by Participant and Owner. The
Participant and Owner shall, at their sole cost and expense,
maintain and repair the Rental Properties and the improvements
thereon or cause the same to be maintained and repaired through
Cusack Realty, Inc. dba Cusack & Associates ("Cusack") keeping
the same in good condition and making all repairs as may be
required by this Maintenance Agreement and by all applicable
City Code and Uniform Code provisions.
02/09/93 ATTACHMENT NO. 7
4247Q/2338/37 (Page 2 of 7)
Section 2. Interior Maintenance. The Participant and
Owner shall maintain the interior of buildings, including
carpet, drapes, and paint, in clean and habitable condition in
conformity with all applicable laws.
Section 3. Exterior Maintenance. All exterior, painted
surfaces shall be maintained at all times in a clean and
presentable manner, free from chipping, cracking and defacing
marks. Any such defacing marks shall be cleaned or removed
within a reasonable period of time as set forth herein.
a. Front and Side Exteriors. The Participant and
Owner shall at all times maintain the front exteriors and yards
in a clean, safe and presentable manner, free from defacing
marks or any disrepair and any visible side exteriors. The
Participant and Owner shall hire maintenance personnel to
maintain and/or repair any front exterior or yard or visible
side yard and exterior of any lot or building.
b. Graffiti Removal. All graffiti, and defacement
of any type, including marks, words and pictures, must be
removed and any necessary painting or repair completed within
seventy-two (72) hours of their creation or within seventy-two
(72) hours after notice to the Participant or Owner.
C. Driveways. All driveways must be paved and
maintained with impervious material in accordance with the City
Code. In addition, all water must be made to drain freely to
the public part of the waterway without any pooling.
d.
not buildings,
appropriately
standards set
Front
Setbacks. All front setback areas that are
driveways or walkways shall be adequately and
landscaped. The landscaping shall meet minimum
from time to time by the Agency.
e. Trash. All trash shall be collected and placed
in appropriate areas for pick-up by refuse haulers on normal
trash pick-up days.
Section 4. Damage and Destruction Affecting Lots - the
Participant's Duty to Rebuild. If_ all or any portion of the
Rental Properties and the improvements thereon is damaged or
destroyed by fire or other casualty, it shall be the duty of
the Participant and Owner to rebuild, repair or reconstruct
said improvements in a timely manner which will restore it to
Code compliance condition.
Section 5. Variance in Exterior Appearance and Design. In
the event physical damage to one or more of the Rental
Properties is suffered, the Participant or Owner may apply to
the City for approval to reconstruct, rebuild or repair in a
manner which will provide different exterior appearance and lot
design from that which existed prior to the date of the
casualty.
02/09/93 ATTACHMENT NO. 7
4247Q/2338/37 (Page 3 of 7)
Section 6. Time for Reconstruction. Upon damage to the
Rental Properties or the improvements thereon, the Participant
and Owner shall be obligated to proceed with all due diligence
hereunder and shall commence reconstruction within two (2)
months after the damage occurs and complete reconstruction
within six (6) months after damage occurs or demolish and
vacate the damaged Rental Properties within two (2) months
after the damage occurs, unless prevented by causes beyond
their reasonable control.
Section 7. Long Term Property Management of the Rental
Properties. During the Qualified Project Period defined and
described in the Agreement affecting the Rental Properties, the
Participant shall obtain the approval of the Agency for any and
all changes in the property manager or property management of
the Rental Properties.
ARTICLE IV
COMPENSATION
Section 1. Remuneration Payable. The amounts payable by
the Agency to the Participant with respect to the Rental
Properties shall be that amount determined pursuant to Exhibit
"A" to this Maintenance Agreement.
Payment shall be made once per month, thirty (30) days in
arrears; provided that the Agency may elect to refrain from
making payment pursuant to this Section 1 with respect to any
Rental Property and period of time as to which the Participant
is in default of the AHA or this Maintenance Agreement. No
other payments shall be made by the Agency pursuant to this
Maintenance Agreement.
ARTICLE V
ENFORCEMENT
Section 1. Remedies. Breach of the covenants contained in
this Maintenance Agreement may be enjoined, abated or remedied
by appropriate legal proceedings.
Section 2. Rights of the City. The City of La Quinta is
hereby made a third party beneficiary to this Maintenance
Agreement and the covenants herein and is entitled, inter alia:
a. The City has the right to enforce all of the provisions
of this Maintenance Agreement.
b. Any amendment to this Maintenance Agreement shall
require the written consent of the City.
02/09/93 ATTACHMENT NO. 7
4247Q/2338/37 (Page 4 of 7)
C. This Maintenance Agreement does not in any way infringe
on the right or duties of the City to enforce any of the
provisions of the City Code including, but not limited to, the
abatement of dangerous buildings.
Section 3. Nuisance. The result of every act or omission
whereby any of the covenants contained in this Maintenance
Agreement are violated in whole or in part is hereby declared
to be and constitutes a nuisance, and every remedy allowable at
law or equity, against a nuisance, either public or private,
shall be applicable against every such result and may be
exercised by any owner or its successors in interest, without
derogation of the City's rights under law.
Section 4. Right of Entry. In addition to the above
general rights of enforcement, the Agency and the City shall
have the right through its agents and employees, to enter upon
any part of the Rental Properties for the purpose of enforcing
the ordinances and other regulations of the City, and for
maintenance and/or repair of any or all publicly -owned
utilities, and to monitor the performance of the Participant
hereunder.
Section S. Removal of the Participant. In the event the
Agency is dissatisfied with the services provided pursuant to
this Maintenance Agreement, it can, upon first giving
forty-five (45) days' written notice and an opportunity to
cure, either (i) terminate this Maintenance Agreement, but the
AHA (including the Attachments thereto, excepting only this.
Maintenance Agreement) shall remain in full force and effect,
or (ii) perform such services itself and charge the same to
Participant and Owner, which charges shall be paid by
Participant and Owner within fifteen (15) days after receipt of
a bill for same, and if such amount is not paid within such
fifteen (15)-day period, Agency may cause a lien to be recorded
on the applicable Rental Property(ies) for all such charges
incurred by Agency in performing such maintenance.
If the Agency desires to terminate this Maintenance
Agreement and have an entity other than the Participant or
Owner perform property maintenance on the Rental Properties,
the Agency shall first consult with the Participant or Owner as
to the identity, qualifications and experience of such service
provider. The costs of such alternative provider so propounded
by the Agency would be borne by the Agency. In addition, the
Agency would assume the responsibility for any damages to the
improvements on the Rental Properties as such alternative
service provider may cause.
Section 6. Cumulative Remedies. The remedies herein
provided for breach of the covenants contained in this
Maintenance Agreement shall be deemed cumulative, and none of
such remedies shall be deemed exclusive.
02/09/93 ATTACHMENT NO. 7
4247Q/2338/37 (Page 5 of 7)
Section 7. Failure to Enforce. The failure to enforce any
of the covenants contained in this Maintenance Agreement shall
not constitute a waiver of the right to enforce the same
thereafter.
This
until _
of date
writing
ARTICLE VI
DURATION
Maintenance Agreement shall
[insert date
first above written] unless
by the parties.
remain in effect
which is fifth anniversary
mutually extended in
ARTICLE VII
GENERAL PROVISIONS
Section 1. Construction. The provisions of this
Maintenance Agreement shall be liberally construed to
effectuate its purpose of providing for the orderly maintenance
of the Rental Properties promoting the affordable housing
objectives of the AHA.
Section 2. Amendments. This Maintenance Agreement may
only be amended by the written agreement of the Participant and
the Agency and the City.
Section 3. Notices. Any notice permitted or required to
be delivered as provided herein to Owner shall be in writing
and may be delivered either personally or by first-class or
registered mail. If delivery is made by mail, it shall be
deemed to have been delivered seventy-two (72) hours after a
copy of same has been deposited in the United States Mail,
postage prepaid, addressed to any person being served such
notice in the manner set forth in Section 601 of the AHA.
Dated:
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic
By
Executive Director
[Signatures continued on next page]
02/09/93 ATTACHMENT NO. 7
4247Q/2338/37 (Page 6 of 7)
[Signatures continued from previous page]
Dated: •
Dated:
COACHELLA VALLEY LAND, a Limited
Partnership
By:
WILLIAM J. CUSACK,
General Partner
WILLIAM J. CUSACK
William J. Cusack
02/09/93 ATTACHMENT NO. 7
4247Q/2338/37 (Page 7 of 7)
EXHIBIT "A"
TO ATTACHMENT NO. 7
(Maintenance Agreement)
The parties to the Maintenance Agreement have agreed that,
but for this Maintenance Agreement, the remuneration which
would be realized by the Participant or the Owner from the
Rental Properties would not constitute a return adequate to
induce the Participant or Owner to causq the Rental Properties
to continue to be rented to Qualifying Renters at Affordable
Rent. As part of the inducement for the Owners to make the
Rental Properties available to Qualifying Renters at Affordable
Rents as more particularly provided in the AHA, the Agency
agrees to absorb a portion of the costs of the Owners to
maintain the Rental Properties, in an amount equal to the
lesser of (i) One Hundred Sixty -Seven Dollars ($167.00) per
each of the Rental Properties per month, or (ii) the "Cumulated
Shortfall", as defined below.
The Owners have provided the Agency with a pro forma for
the Rental Properties, which is attached hereto as Exhibit "B"
(the "Rental Pro Forma"). The Rental Pro Forma indicates that
the revenues to be realized by the Participant and the Owner in
respect to the rental of the Rental Properties will fall short
of satisfying the costs which will be incurred by the
Participant and the Owner in respect to such Rental Properties;
the foregoing difference has been determined without regard to
any costs to the Participant and the Owner or payments which
are to be made by the Participant and the Owner to the Agency
in satisfaction of the loan of the Applicable Rental Assistance
pursuant to the AHA. The difference between the costs
identified in the Rental Pro Forma ("Allowable Costs") and
"Revenues" shall be determined separately with respect to each
of the Rental Properties. "Revenues" shall mean any revenues,
remuneration, or compensation of any kind including without
limitation amounts payable, received or receivable in respect
to the corresponding Rental Property. The sum of the
differences for all of the Rental Properties, including any
instances in which Revenues meet or :xceed Allowable Costs,
shall be computed on a monthly basi- by the Agency Executive
Director or his designee fifteen (15) days following the
submittal by the Owners of a statement of Revenues and
Allowable Costs in respect to each full calendar month during
such time as the Agreement remains in effect in respect to the
Rental Properties, which shall continue in effect until no
later than the fifth (5th) anniversary of the approval of the
AHA by the Agency. The Agency shall have the right to audit
the business records of the Participant and the -Owner for the
purposes of this Agreement, utilizing an accountant or
accounting firm of the Agency's choosing. In the event such
audit determines that the payments to the Participant or Owner
by the Agency pursuant to this Maintenance Agreement have
exceeded by three percent (3%) or more those which the
02/09/93 EXHIBIT "A" TO
4247Q/2338/37 ATTACHMENT NO. 7
Participant or Owner should have received pursuant to this
Maintenance Agreement, the cost of the audit shall be borne by
the Participant and Owner. Otherwise, the cost of such audit
shall be borne by the Agency.
02/09/93 EXHIBIT "A" TO
42479/2338/37 ATTACHMENT NO. 7
EXHIBIT "B" TO
ATTACHMENT NO. 7
(Maintenance Agreement)
[To Be Inserted; Pro Forma should be annotated to the
effect that the management charges per the Pro Forma shall
not exceed 9 of revenues from the units.]
02/09/93 EXHIBIT "B" TO
42479/2338/37 ATTACHMENT NO. 7
ATTACHMENT NO. 8
AGENCY DEED OF TRUST
WHEN RECORDED MAIL TO: )
(Space above this line for Recorder's Use)
DEED OF TRUST
THIS DEED OF TRUST ("Deed of Trust") is made this day
of 19_, among the Trustor,
(herein "Borrower"),
(herein "Trustee"), and the Beneficiary,
LA OUINTA REDEVELOPMENT AGENCY, a public body, corporate and
politic, whose address is 78-105 Calle Estado, La Quinta,
California 92253 (herein "Lender").
BORROWER, in consideration of the indebtedness herein
recited and the trust herein created, irrevocably grants and
conveys to Trustee, in trust, with power of sale, the following
described property located in the City of La Ouinta, County of
Riverside, State of California:
(Legal Description To Be Inserted Here]
which has the address of
California
(Zip Code)
(Street)
La O_uinta,
(City)
(herein "Property Address");
TOGETHER with all the improvements now or hereafter erected
on the property, and all easements, rights, appurtenances and
rents (subject however to the rights and -authorities given
herein to Lender to collect and apply such rents), all of which
shall be deemed to be and remain a part of the property covered
by this Deed of Trust; and all of the foregoing, together with
said property (or the leasehold estate if this Deed of Trust is
on a leasehold) are collectively hereinafter referred to as the
"Property";
02/09/93 ATTACHMENT NO. 8
4247Q/2338/37 (Page 1 of 11)
TO SECURE to Lender the repayment of the indebtedness
evidenced by Borrower's note dated and
extensions and renewals thereof (herein "Note"), in the
principal sum of U.S. $ , with interest
thereon, and the payment of all other sums, with interest
thereon, advanced in accordance herewith to protect the
security of this Deed of Trust; and the performance of the
covenants and agreements of Borrower herein contained.
Borrower covenants that Borrower is lawfully seized of the
estate hereby conveyed and has the right to grant and convey
the Property, and that the Property is unencumbered except for
encumbrances of record. Borrower covenants that Borrower
warrants and will defend generally the title to the Property
against all claims and demands, subject to encumbrances of
record.
A. UNIFORM COVENANTS. Borrower and Lender covenant and
agree as follows:
1. Payment of Principal and Interest. Borrower shall
promptly pay when due the principal and interest indebtedness
evidenced by the Note and late charges as provided in the Note.
2. Funds for Taxes and Insurance. Subject to applicable
law or a written waiver by Lender, Borrower shall pay to Lender
on the date prescribed below a sum (herein "Funds") equal to
one -twelfth of the yearly taxes and assessments (including
condominium and planned unit development assessments, if any)
which may attain priority over this Deed of Trust, and ground
rents on the Property, if any, plus one -twelfth of yearly
premium installments for hazard insurance, plus one -twelfth of
yearly premium installments for mortgage insurance, if any, all
as reasonably estimated initially and from time to time by
Lender on the basis of assessments and bills and reasonable
estimates thereof. Borrower shall not be obligated to make
such payments to the holder of a prior mortgage or deed of
trust if such holder is an institutional Lender. Said payments
shall be made on the first day of each month commencing on
If Borrower pays Funds to Lender, the Funds shall be held
in an institution the deposits or accounts of which are insured
or guaranteed by a Federal or state agency (including Lender if
Lender is such an institution). Lender shall apply the Funds
to pay said taxes, assessments, insurance premiums and ground
rents. Lender may not charge for so holding and applying the
Funds, analyzing said account or verifying and compiling said
assessments and bills, unless Lender pays Borrower interest on
the Funds and applicable law permits Lender to make such a
charge. Borrower and Lender may agree in writing at the time
of execution of this Deed of Trust that interest to be paid on
the Funds shall be paid to Borrower, and unless such agreement
02/09/93 ATTACHMENT NO. 8
4247Q/2338/37 (Page 2 of 11)
is made or applicable laws requires such interest to be paid,
Lender shall not be required to pay Borrower any interest or
earnings on the Funds. Lender shall give to Borrower, without
charge, an annual accounting of the Funds showing credits and
debits to the Funds and the purpose for which each debit to the
Funds was made. The Funds are pledged as additional security
for the sums secured by this Deed of Trust.
If the amount of the Funds held by Lender, together with
the future monthly installments of Funds payable prior to the
due dates of taxes, assessments, insurance premiums and ground
rents, shall exceed the amount required to pay said taxes,
assessments, insurance premiums and ground rents as they fall
due, such excess shall be, at Borrower's option, either
promptly repaid to Borrower or credited to Borrower on monthly
installments of Funds. If the amount of the Funds held by
Lender shall not be sufficient to pay taxes, assessments,
insurance premiums and ground rents as they fall due, Borrower
shall pay to Lender, within fifteen (15) days after Lender's
written request therefor, any amount necessary to make up the
deficiency in one or more payments as Lender may require.
Upon payment in full of all sums secured by this Deed of
Trust, Lender shall promptly refund to Borrower any Funds held
by Lender. If under paragraph 17 hereof the Property is sold
or the Property is otherwise acquired by Lender, Lender shall
apply, no later than immediately prior to the sale of the
Property or its acquisition by Lender, any Funds held by Lender
at the time of application as a credit against the sums secured
by this Deed of Trust.
3. Prior Mortgages and Deeds of Trust; Charges; Liens.
Borrower shall perform all of Borrower's obligations under any
mortgage, deed of trust or other security agreement with a lien
which has priority over this Deed of Trust, including
Borrower's covenants to make payments when due. Borrower shall
pay or cause to be paid all taxes, assessments and other
charges, fines and impositions attributable to the Property
which may attain a priority over this Deed of Trust, and
leasehold payments or ground rents, if any.
4. Hazard Insurance. Borrower shall keep the
improvements now existing or hereafter erected on the Property
insured against loss by fire, hazards included within the term
"extended coverage," and such other hazards as Lender may
require and in such amounts and for such periods_ as Lender may
require.
The insurance carrier providing the insurance shall be
chosen by Borrower subject to approval by Lender; provided,
that such approval shall not be unreasonably withheld. All
insurance policies and renewals thereof shall be in a form
acceptable to Lender and shall include a standard mortgage
02/09/93 ATTACHMENT NO. 8
4247Q/2338/37 (Page 3 of 11)
clause in favor of and in a form acceptable to Lender. Lender
shall have the right to hold the policies and renewals thereof,
subject to the terms of any mortgage, deed of trust or other
security agreement with a lien which has priority over this
Deed of Trust.
In the event of loss, Borrower shall give prompt notice to
the insurance carrier and Lender. Lender may make proof of
loss if not made promptly by Borrower.
If the Property is abandoned by Borrower, or if Borrower
fails to respond to Lender within thirty (30) days from the
date notice is mailed by Lender to Borrower that the insurance
carrier offers to settle a claim for insurance benefits, Lender
is authorized to collect and apply the insurance proceeds at
Lender's option either to restoration or repair of the Property
or to the sums secured by this Deed of Trust.
S. Preservation and Maintenance of Property; Leaseholds;
Condominiums; Planned Unit Developments. Borrower shall keep
the Property in good repair and shall not commit waste or
permit impairment or deterioration of the Property and shall
comply with the provisions of any lease if this Deed of Trust
is on a leasehold. If this Deed of Trust is on a unit in a
condominium or a planned unit development, Borrower shall
perform all of Borrower's obligations under the declaration or
covenants creating or governing the condominium or planned unit
development, the by-laws and regulations of the condominium or
planned unit development, and constituent documents.
6. Protection of Lender's Security. If Borrower fails to
perform the covenants and agreements contained in this Deed of
Trust, or if any action or proceeding is commenced which
materially affects Lender's interest in the Property, then
Lender, at Lender's option, upon notice to Borrower, may make
such appearances, disburse such sums, including reasonable
attorneys' fees, and take such action as is necessary to
protect Lender's interest. If Lender required mortgage
insurance as a condition of making the loan secured by this
Deed of Trust, Borrower shall pay the premiums required to
maintain such insurance in effect until such time as the
requirement for such insurance terminates in accordance with
Borrower's and Lender's written agreement or applicable law.
Any amounts disbursed by Lender pursuant to this paragraph
6, with interest thereon, at the Note rate, shall become
additional indebtedness of Borrower secured by this Deed of
Trust. Unless Borrower and Lender agree to other terms of
payment, such amounts shall be payable upon notice from Lender
to Borrower requesting payment thereof. Nothing contained in
this paragraph 6 shall require Lender to incur any expense or
take any action hereunder.
02/09/93 ATTACHMENT NO. 8
4247Q/2338/37 (Page 4 of 11)
7. Inspection. Lender may make or cause to be made
reasonable entries upon aNd inspections of the Property,
provided that Lender shall give Borrower notice prior to any
such inspection specifying reasonable cause therefor related to
Lender's interest in the Property.
8. Condemnation. The proceeds of any award or claim for
damages, direct or consequential, in connection with any
condemnation or other taking of the Property, or part thereof,
or for conveyance in lieu of condemnation, are hereby assigned
and shall be paid to Lender, subject to the terms of any
mortgage, deed of trust or other security agreement with a lien
which has priority over this Deed of Trust.
9. Borrower Not Released; Forbearance by Lender Not a
Waiver. Extension of the time for payment or modification of
amortization of the sums secured by this Deed of Trust granted
by Lender to any successor in interest of Borrower shall not
operate to release, in any manner, the liability of the
original Borrower and Borrower's successors in interest.
Lender shall not be required to commence proceedings against
such successor or refuse to extend time for payment or
otherwise modify amortization of the sums secured by this Deed
of Trust by reason of any demand made by the original Borrower
and Borrower's successors in interest. Any forbearance by
Lender in exercising any right or remedy hereunder, or
otherwise afforded by applicable law, shall not be a waiver of
or preclude the exercise of any such right or remedy.
10. Successors and Assigns Bound; Joint and Several
Liability; Co-signers. The covenants and agreements herein
contained shall bind, and the rights hereunder shall inure to,
the respective successors and assigns of Lender and Borrower.
All covenants and agreements of Borrower shall be joint and
several. Any Borrower who co-signs this Deed of Trust, but
does not execute the Note, (a) is co-signing this Deed of Trust
only to grant and convey that Borrower's interest in the
Property of Trustee under the terms of this Deed of Trust,
(b) is not personally liable on the Note or under this Deed of
Trust, and (c) agrees that Lender and any other Borrower
hereunder may agree to extend, modify, forbear, or make any
other accommodations with regard to the terms of this Deed of
Trust or the Note, without that Borrower's consent and without
releasing that Borrower or modifying this Deed of Trust as to
that Borrower's interest in the Property.
11. Notice. Except for any notice required under
applicable law to be given in another manner, (a) any notice to
Borrower provided for in this Deed of Trust shall be given by
personally delivering it or by mailing such notice by certified
mail addressed to Borrower at the Property Address or at such
other address as Borrower may designate by notice to Lender as
provided herein, and (b) any notice to Lender shall be given by
02/09/93 ATTACHMENT NO. 8
4247Q/2338/37 (Page 5 of 11)
certified mail to Lender's address stated herein or to such
other address as Lender may designate by notice to Borrower as
provided herein. Any notice provided for in this Deed of Trust
shall be deemed to have been given to Borrower or Lender when
given in the manner designated herein.
12. Governing Law; Severability. The state and local laws
applicable to this Deed of Trust shall be the laws of the
jurisdiction in which the Property is located. The foregoing
sentence shall not limit the applicability of Federal law to
this Deed of Trust. In the event that any provision or clause
of this Deed of Trust or the Note conflicts with applicable
law, such conflict shall not affect provisions of this Deed of
Trust or the Note which can be given effect without the
conflicting provision, and to this end the provisions of this
Deed of Trust and the Note are declared to be severable. As
used herein, "costs," "expenses" and "attorneys' fees" include
all sums to the extent not prohibited by applicable law or
limited herein.
13. Borrower's Copy. Borrower shall be furnished a
conformed copy of the Note and of this Deed of Trust at the
time of execution or after recordation hereof.
14. Rehabilitation Loan Agreement. Borrower shall fulfill
all of Borrower's obligations under any home rehabilitation,
improvement, repair, or other loan agreement which Borrower
enters into with Lender. Lender, at Lender's option, may
require Borrower to execute and deliver to Lender, in a form
acceptable to Lender, an assignment of any rights, claims or
defenses which Borrower may have against parties who supply
labor, materials or services in connection with improvements
made to the Property.
B. NON -UNIFORM COVENANTS. Borrower and Lender further
covenant and agree as follows:
1. Acceleration; Remedies. Upon Borrower's breach of any
covenant or agreement of Borrower in this Deed of Trust,
including the covenants to pay when due any sums secured by
this Deed of Trust, Lender prior to acceleration shall give
notice to Borrower as provided in paragraph A.11 hereof
specifying: (i) the breach; (ii) the action required to cure
such breach; (iii) a date, not less than ten (10) days from the
date of notice is mailed to Borrower, by which such breach must
be cured; and (iv) that failure to cure such breach on or
before the date specified in the notice may result in
acceleration of the sums secured by this Deed of Trust and sale
of the Property. The notice shall further inform Borrower of
the right to reinstate after acceleration and the right to
bring a court action to assert the nonexistence of a default or
any other defense of Borrower to acceleration and sale. If the
breach is not cured on or before the date specified in the
02/09/93 ATTACHMENT NO. 8
4247Q/2338/37 (Page 6 of 11)
notice, Lender, at Lender's option, may declare all of the sums
secured by this Deed of Trust to be immediately due and payable
without further demand and may invoke the power of sale and
acceleration of the sums secured by this Deed of Trust and sale
of the Property. The notice shall further inform Borrower of
the right to reinstate after acceleration and the right to
bring a court action to assert the nonexistence of a default or
any other defense of Borrower to acceleration and sale. If the
breach is not cured on or before the date specified in the
notice, Lender, at Lender's option, may declare all of the sums
secured by this Deed of Trust to be immediately due and payable
without further demand and may invoke the power of sale and any
other remedies permitted by applicable law. Lender shall be
entitled to collect all reasonable costs and expenses incurred
in pursuing the remedies provided in this paragraph B.1,
including, but not limited to, reasonable attorneys' fees.
If Lender invokes the power of sale, Lender shall execute
or cause Trustee to execute a written notice of the occurrence
of an event of default and of Lender's election to cause the
Property to be sold and shall cause such notice to be recorded
in each county in which the Property or some part thereof is
located. Lender or Trustee shall give public notice of sale to
the persons and in the manner prescribed by applicable law.
After the lapse of such time as may be required by applicable
law, Trustee, without demand on Borrower, shall sell the
Property at public auction to the highest bidder at the time
and place and under the terms designated in the notice of sale
in one or more parcels and in such order as Trustee may
determine. Trustee may postpone sale of all or any parcel of
the Property by public announcement at the time and place of
any previously scheduled sale. Lender or Lender's designee may
purchase the Property at any sale.
Trustee shall deliver to the purchaser Trustee's deed
conveying the Property so sold without any covenant or
warranty, expressed or implied. The recitals in the Trustee's
deed shall be prima facie evidence of the truth of the
statements made therein. Trustee shall apply the proceeds of
the sale in the following order: (a) to all reasonable costs
and expenses of the sale, including, but not limited to,
reasonable Trustee's and attorneys' fees and costs of title
evidence; (b) to all sums secured by this Deed of Trust; and
(c) the excess, if any, to the person or persons legally
entitled thereto.
2. Borrower's Right to Reinstate. Notwithstanding
Lender's acceleration of the sums secured by this Deed of Trust
due to Borrower's breach, Borrower shall have the right to have
any proceedings begun by Lender to enforce this Deed of Trust
discontinued at any time prior to five (5) days before sale of
the Property pursuant to the power of sale contained in this
Deed of Trust or at any time prior to entry of a judgment
02/09/93 ATTACHMENT NO. 8
4247Q/2338/37 (Page 7 of 11)
enforcing this Deed of Trust if: (a) Borrower pays Lender all
sums which would be then due under this Deed of Trust and the
Note had no acceleration occurred; (b) Borrower cures all
breaches of any other covenants or agreements of Borrower
contained in this Deed of Trust; (c) Borrower pays all
reasonable expenses incurred by Lender and Trustee in enforcing
the covenants and agreements of Borrower contained in this Deed
of Trust, and in enforcing Lender's and Trustee's remedies as
provided in paragraph B.1 hereof, including, but not limited
to, reasonable attorneys' fees; and (d) Borrower takes such
action as Lender may reasonably require to assure that the lien
of this Deed of Trust, Lender's interest in the Property and
Borrower's obligation to pay the sums secured by this Deed of
Trust shall continue unimpaired. Upon such payment and cure by
Borrower, this Deed of Trust and the obligations secured hereby
shall remain in full force and effect as if no acceleration had
occurred.
3. Assignment of Rents; Appointment of Receiver; Lender
in Possession. As additional security hereunder, Borrower
hereby assigns to Lender the rents of the Property, provided
that Borrower shall, prior to acceleration under paragraph B.3
hereof or abandonment of the Property, have the right to
collect and retain such rents as they become due and payable.
Upon acceleration under paragraph B.3 hereof or abandonment
of the Property, Lender, in person, by agent or by judicially
appointed receiver shall be entitled to enter upon, take
possession of and manage the Property and to collect the rents
of the Property including those past due. All rents collected
by Lender or the receiver shall be applied first to premiums on
receiver's bonds and reasonable attorneys' fees, and then to
the sums secured by this Deed of Trust. Lender and the
receiver shall be liable to account only for those rents
actually received.
4. Reconveyance. Upon payment of all sums secured by
this Deed of Trust, Lender shall request Trustee to reconvey
the Property and shall surrender this Deed of Trust and all
notes evidencing indebtedness secured by this Deed of Trust to
Trustee. Trustee shall reconvey the Property without warranty
and without charge to the person or persons legally entitled
thereto. Such person or persons shall pay all costs of
recordation, if any.
5. Substitute Trustee. Lender, at Lender's option, may
from time to time appoint a successor trustee to any Trustee
appointed hereunder by an instrument executed and acknowledged
by Lender and recorded in the office of the Recorder of the
county where the Property is located. The instrument shall
contain the name of the original Lender, Trustee and Borrower,
the book and page where this Instrument is recorded and the
name and address of the successor trustee. The successor
02/09/93 ATTACHMENT NO. 8
4247Q/2338/37 (Page 8 of 11)
trustee shall, without conveyance of the Property, succeed to
all the title, powers and duties conferred upon the Trustee
herein and by applicable law. This procedure for substitution
of trustee shall govern to the exclusion of all other
provisions for substitution.
6. Recruest for Notices. Borrower requests that copies of
the notice of default and notice of sale be sent to Borrower's
address which is the Property Address. Lender requests that
copies of notices of foreclosure from the holder of any lien
which has priority over this Deed of Trust be sent to Lender's
address, as set forth on page one of this Deed of Trust, as
provided by Section 2924(b) of the Civil Code of California.
7. Statement of Obligation. Lender may collect a fee not
to exceed $50 for furnishing the statement of obligation as
provided by Section 2943 of the Civil Code of California.
S. Deed of Trust Rider. The Deed of Trust Rider executed
by Borrower is attached hereto, marked as Exhibit A, and made
part of this Deed of Trust.
Borrower and Lender request the holder of any mortgage,
deed of trust or other encumbrance with a lien which has
priority over this Deed of Trust to give Notice to Lender, at
Lender's address set forth on page one of this Deed of Trust,
of any default under the superior encumbrance and of any sale
or other foreclosure action.
IN WITNESS WHEREOF, Borrower has executed this Deed of.
Trust.
Borrower
Borrower
02/09/93 ATTACHMENT NO. 8
4247Q/2338/37 (Page 9 of 11)
STATE OF CALIFORNIA
ss.
COUNTY OF
On , before me,
(name, title, e.g., "Jane Doe, Notary Public"),
personally appeared
(name(s) of signer(s)),
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 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.
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Officer(s): _
Partner(s): _
Attorney -in -Fact
Trustee(s)
Guardian/Conservator
Other:
(Signature of Notary)
Title(s)
Limited General
SIGNER IS REPRESENTING:
Name of Person(s) or Entity(ies)
ATTENTION NOTARY: Although the information requested below
is OPTIONAL, it could prevent fraudulent attachment of this
certificate to another document.
THIS CERTIFICATE
MUST BE ATTACHED
TO THE DOCUMENT
DESCRIBED
AT RIGHT:
02/09/93
4247Q/2338/37
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above:
ATTACHMENT NO. 8
(Page 10 of 11)
REQUEST FOR RECONVEYANCE
TO TRUSTEE:
The undersigned is the holder of the note
or notes secured by this Deed of Trust. Said note or notes,
together with all other indebtedness secured by this Deed of
Trust, have been paid in full. You are hereby directed to
cancel said note or notes and this Deed of Trust, which are
delivered hereby, and to reconvey, without warranty, all the
estate now held by you under this Deed of Trust to the person
or persons legally entitled thereto.
Dated:
02/09/93 ATTACHMENT NO. 8
42479/2338/37 (Page 11 of 11)
EXHIBIT "A"
DEED OF TRUST RIDER
This Deed of Trust Rider is attached to and made a part of the
Deed of Trust dated , 19_ made payable to
LA QUINTA REDEVELOPMENT AGENCY as Lender, and executed by
as Borrower.
1. DEED OF TRUST. Borrower agrees to the provisions of this
Deed of Trust Rider in addition to those of the Deed of Trust.
2. DEFINITIONS. The following definitions shall apply
throughout this Deed of Trust Rider:
2.1 Appraiser. An appraiser who is a MAI member of the
American Institute of Real Estate Appraisers or a SPRA member
of the Society of Real Estate Appraisers (or in case such
professional designations are modified or discontinued, the
most nearly equivalent successor designations.).
2.2 Original Sales Price. $
2.3 Principal Sum. $
2.4 Property. The real property described in Exhibit A
attached and made a part hereof.
2.5 Sale or Transfer. Any sale or transfer of any part of
the Property or any interest in it, except a sale or transfer
which under federal law, would not, by itself, permit Lender to
exercise a due on sale or due on encumbrance clause.
2.6 Sales Price. The price of the Property on which the
transfer tax is paid, plus the amount of any existing financing
that the purchaser of the Property assumes or takes subject to.
2.7 This Date. 19
3. TIME OF PAYMENT. The Note shall be due and payable in full .
on the date of the first Sale or Transfer to occur after This
Date, provided that in the event no Sale or Transfer occurs
within forty (40) years of This Date, the Note shall be
automatically and completely forgiven.
4. AMOUNT OF PAYMENT. If and when the Note becomes due
pursuant to Section 2 above, Borrower shall pay to Lender the
Principal Sum, together with contingent interest equal
to percent ( %) of the amount, if any, by
which the Sales Price in the Sale causing payment to become due
and payable exceeds the Original Sales Price from This Date
until the date paid in full.
02/09/93 EXHIBIT "A" TO
4247Q/2338/37 ATTACHMENT NO. 8
S. PREPAYMENT. Borrower shall have the right at any time to
repay the Note, provided that any prepayment must be in full
and not in part. In the event of prepayment, the amount
payable in full by Borrower shall be the Principal Sum and
other amounts owing, together with contingent interest equal
to percent ( %) of the amount, if any, by
which the fair market value of the Property at the time of
prepayment (less the depreciated value of any documented,
permanent capital real estate or fixture improvements to the
Property) exceeds the Original Sales Price. To determine the
fair market value of the Property for purposes of this Section
4, Borrowers and Lender shall endeavor to agree upon an
Appraiser. If the parties are unable to agree upon an
Appraiser within ten (10) days after Borrower's written notice
to Lender that it desires to repay the Note, the Lender shall
have an appraisal made by an Appraiser of its choice to
establish the fair market value. The Borrower may also, at
Borrower's expense, have an appraisal made by an Appraiser of
the Borrower's choice to establish the market value. If
agreement cannot be reached, the average of the two appraisals
shall be deemed to be the market value.
6. DEFAULT UNDER DEED OF TRUST. Notwithstanding any other
provisions of the Note, if default occurs n any of the
covenants or agreements contained in the Deed of Trust securing
this Note, this Note shall immediately become due and payable
in full at the option of Lender. In the event Lender exercises
such option, the amount due and payable shall be the Principal
Sum, together with contingent interest equal
to percent ( %) of the amount, if
any, by which the fair market value of the Property at the time
of Lender's exercise exceeds the Original Sales Price. For
purposes of this Section 6, the fair market value of the
Property shall be that determined by an Appraiser appointed by
Lender. Failure by Lender to exercise its option to accelerate
in the event of a default shall not constitute waiver of the
right to exercise such option in the event of the same or any
other default.
7. This Deed of Trust is subordinate to any deed of trust
or mortgage on the property made by or held by an institutional
lender or investor. Any party, and its successors and assigns,
receiving title to the Property through a trustee's sale, a
judicial foreclosure sale or deed in lieu of foreclosure, of
such deed of trust or mortgage, and any conveyance of transfer
thereafter, shall receive title free and clear of the
provisions of this Deed of Trust.
02/09/93 EXHIBIT "A" TO
4247Q/2338/37 ATTACHMENT NO. 8
NOTICE TO BORROWERS:
Do not sign this Deed of Trust Rider if it contains blank
spaces. All spaces should be completed before you sign.
BORROWER
BORROWER
BORROWER
DATE OF SIGNATURE
DATE OF SIGNATURE
DATE OF SIGNATURE
02/09/93 EXHIBIT "A" TO
4247Q/2338/37 ATTACHMENT NO. 8
ATTACHMENT NO. 9
PROPERTY COVENANTS
DECLARATION OF CONDITIONS, COVENANTS
AND RESTRICTIONS FOR PROPERTY
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
FOR
and
(Space above for Recorder's use.)
This document exempt from a
recording fee pursuant to
Government Code Section 6103.
THIS DECLARATION OF CONDITIONS, COVENANTS, AND RESTRICTIONS
PROPERTY (the "Declaration") is made by and between
(the "Buyer" or "Covenantor")
the LA QUINTA REDEVELOPMENT AGENCY, a public body,
corporate and politic (the "Agency" or "Covenantee") as of the
day of , 1993.
R E C I T A L S
A. The Buyer is fee owner of record or has entered into
an agreement for the purchase of that certain real property
(the "Property") located in the City of La Quinta, County or
Riverside, State of California legally described in the
attached Exhibit "A". The Property was the subject, in part,
of an Affordable Housing Agreement (the "Housing Agreement")
entered into by and among (i) the Agency, (ii) Coachella Valley
Land, a Limited Partnership ("CVL"), and (iii) William J.
Cusack ("Owner") dated as of , 1993, a copy of
which is on file with the Agency as a public record. Pursuant
to the Housing Agreement, the Buyer has executed an Agreement
entitled "Resale Restriction Agreement and Option to Purchase"
(the "Affordability Restriction") which has been or shall be
recorded among the official land records of the County of
Riverside. The Affordability Restriction requires that the
Buyer, as of the purchase of the Property, have an income not
in excess of 120% of areawide median income.
B. The Property is within the La Quinta Project Area (the
"Project") in the City of La Quinta and is subject to the
provisions of the "Redevelopment Plan" for the Project.
02/09/93 ATTACHMENT NO. 9
4247Q/2338/37 (Page 1 of 9)
C. The Housing Agreement provides for the execution and
recordation of this document. Except as otherwise expressly
provided in this Declaration, all terms shall have the same
meanings as set forth in the Housing Agreement. References to
"Attachments" shall refer to attachments to the Agreement.
D. The Community Redevelopment Law (California Health and
Safety Code 33000 et sea.) provides that a redevelopment agency
shall establish covenants running with the land in furtherance
of redevelopment plans.
NOW, THEREFORE, THE AGENCY AND THE BUYER AGREE AS FOLLOWS:
1. Affordable Housing.
The Property is to be used for housing of a household
paying not more than "Affordable Housing Cost" for the
Property, and having an income not greater than one hundred
twenty percent (120,1) of areawide median income. The Property
has been made available, in part, with financial assistance
provided by the Agency. In consideration of its participation,
the Agency requires that the dwelling unit on the Property be
maintained as an affordable housing resource until June 15,
2029. The terms and conditions relating to such use and
occupancy are set forth in the Affordability Restriction and
the Housing Agreement. The Affordability Restrictions, the
Housing Agreement, and this Declaration shall be construed as
consistent and not in conflict to the greatest extent feasible;
in the event of conflict involving the Agency and the Buyer,
the Affordability Restrictions shall control.
2. Affordability Covenants.
Covenantor agrees for itself, and its successors and
assigns, and every successor to Covenantor's interest in the
Property, or any part thereof that until June 15, 2029 (the
"Expiration Date"):
(a) The Property shall only be owned and
occupied by Covenantors or by households which, as of the time
of purchase of the Property, have an income which does not
exceed One Hundred Twenty Percent (120%) of the Riverside
County monthly median income (which households shall, for
purposes of this Declaration, constitute "Qualifying Income
Households").
(b) The Property may be sold at an Affordable
Housing Cost (as defined below) to Qualifying Income
Households. Affordable Housing Cost shall mean, as to each
Qualifying Income Household, that purchase price which would
result in monthly housing payments which do not exceed an
amount under any currently prevailing conventional home
mortgage lending rates applied by any reputable institutional
02/09/93 ATTACHMENT NO. 9
4247Q/2338/37 (Page 2 of 9)
home mortgage lender, or the lending rates of any
government -subsidized or special mortgage program for which
such person or family qualifies and has obtained a first trust
deed loan, which do not exceed: (i) thirty percent (30%) of
fifty percent (500.) of the Riverside County monthly median
income (as determined by the United States Department of
Housing and Urban Development) (the "Median Income") for a
household having an income which does not exceed fifty percent
(501") of the Median Income; with respect to households having
an income which does not exceed eighty percent (80%) of the
Median Income, thirty percent (30%) of Seventy Percent (70%) of
the Median Income; and with respect to households having an
income which does not exceed one hundred twenty percent (120%)
of the Median Income, thirty-five percent (35%) of one hundred
ten percent (110'0) of the Median Income, all as more
particularly set forth in Section 50052.5 of the California
Health and Safety Code.
(c) The covenant contained in this Section 1
shall run with the land and shall automatically terminate and
be of no further force or effect upon the Expiration Date.
(d) On the first anniversary of the recordation
of this Declaration, and each succeeding anniversary until June
15, 2029, the Buyer and its successor in interest to the
Property shall execute and deliver to the Agency a
Certification of Income substantially in the form of Exhibit B,
hereto. The purpose of such Certification is to facilitate the
ability of the Agency to obtain information necessary or
convenient for the rendering of reports pursuant to Sections
33080.1, 33080.4, and 33418 of the California Health and Safety
Code concerning housing.
(e) This Declaration shall be deemed to be
subordinant to the hffordability Restrictions; in the event of
conflict, the Affordability Restrictions shall prevail. The
Agency will, upon receipt of written request therefor, prepare
additional documentation further evidencing such subordination.
3. Transfer of Property.
No transfer of the Property shall occur until the
Agency determines (a) that the proposed purchaser intends to
occupy the Property as the proposed purchaser's principal
residence, (b) that the proposed purchaser is a Qualifying
Income Household, and (c) that the proposed transfer occurs at
an "Affordable Housing Cost" as determined pursuant to the
Affordability Restriction and the Housing Agreement. The
Agency shall not be obligated to approve a transfer until and
unless the proposed purchaser has submitted to the Agency such
information and completed such forms as the Agency shall
recruest to certify the proposed purchaser's intent with respect
to its residency of the Property and its gross income and the
02/09/93 ATTACHMENT NO. 9
42479/2338/37 (Page 3 of 9)
proposed purchaser has submitted an affidavit disclosing and
certifying the amount of the proposed purchase price. Prior to
conveyance of the Property, each approved purchaser shall
submit to the Agency an executed disclosure statement which
certifies that the purchaser is aware that the purchaser buying
may only sell the unit at an Affordable Housing Cost to a low
to moderate income person or family, that the maximum permitted
sales price may be less than fair market value and that the
units must be owner -occupied at all times and cannot be rented
or leased. Covenantor shall cooperate with the Agency in
providing such forms to proposed purchasers and in assisting
proposed purchasers to prepare such forms and to provide any
required information to the Agency in connection with the
Covenantor's original sale of the Property, provided that the
Covenantor shall not be obligated to incur any out-of-pocket
costs in connection therewith, other than employee time
dedicated to providing such assistance.
COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE
AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE
PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES,
THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF
THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE
ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED
HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE
PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS
OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS
RESTRICTION. COVENANTOR FURTHER ACKOWLEDGES THAT AT ALL TIMES
IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE
AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO LOWER
INCOME HOUSEHOLDS AT AN AFFORDABLE HOUSING COST.
The covenant contained in this Section 2 shall run
with the land and shall automatically terminate and be of no
further force or effect upon the Expiration Date.
4. Non -Discrimination Covenants.
Covenants covenants by and for itself, its successors
and assigns, and all persons claiming under or through them
that there shall be no discrimination against or segregation of
any person or group of persons on account of race, color,
religion, sex, marital status, national origin or ancestry in
the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of the Property, nor shall Covenantor itself or any
person claiming under or through it, establish or permit any
such practice or practices of discrimination or segregation
with reference to the selection, location, number, use or
occupancy of tenants, lessees, subtenants, sublessees, or
vendees in the Property.
Covenantors and its successors and assigns, shall
refrain from restricting the rental or lease (if permitted by
02/09/93 ATTACHMENT NO. 9
4247Q/2338/37 (Page 4 of 9)
Covenantee) or sale of the Property on the basis of race,
color, religion, sex, marital status, national origin or
ancestry of any person. All such deeds, leases or contracts
shall contain or be subject to substantially the following
nondiscrimination or nonsegregation clauses:
(a) In deeds: "The grantee herein covenants by
and for himself or herself, his or her heirs, executors,
administrators and assigns, and all persons claiming under or
through them, that there shall be no discrimination against or
segregation of, any person or group of persons on account of
race, color, religion, sex, marital status, national origin or
ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the land herein conveyed, nor
shall the grantee himself or herself or any person claiming
under or through him or her, establish or permit any such
practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy
of tenants, lessees, subtenants, sublessee or vendees in the
land herein conveyed. The foregoing covenants shall run with
the land."
(b) In leases: "The lessee herein covenants by
and for himself or herself, his or her heirs, executors,
administrators and assigns, and all persons claiming under or
through him or her, and this lease is made and accepted upon
and subject to the following conditions:
"There shall be no discrimination against or
segregation of any person or group of persons on account of
race, color, religion, sex, marital status, ancestry or
national origin in the leasing, subleasing, transferring, use,
occupancy, tenure or enjoyment of the premises herein leased
nor shall the lessee himself or herself, or any person claiming
under or through him or her, establish or permit any such
practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy
of tenants, lessees, sublessees, subtenants or vendees in the
premises herein leased."
(c) In contracts: "There shall be no
discrimination against or segregation of, any person, or group
of persons on account of race, color, religion, sex, marital
status, ancestry or national origin in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the
premises, nor shall the transferee himself or herself, or any
person claiming under or through him or her, establish or -
permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number,
use or occupancy of tenants, lessees, sublessees or vendees of
the premises."
02/09/93 ATTACHMENT NO. 9
42479/2338/37 (Page 5 of 9)
Nothing in this Section 4 shall be construed to
authorize the rental or lease of the Property if such rental or
lease is not otherwise permitted. The covenants in this
paragraph 4 shall run with the land in perpetuity.
S. Maintenance of Property.
Covenantor shall properly maintain the buildings,
landscaping and yard areas on the Property, as follows:
(a) No improperly maintained landscaping shall
be visible from public rights of way, including:
including:
1. no lawns with grasses in excess of six (6)
inches in height;
2. no untrimmed hedges;
3. no trees, shrubbery, lawns, and other plant
life dying from lack of water or other
necessary maintenance;
4. no trees and shubbery grown uncontrolled
without proper pruning;
5. no vegetation so overgrown as to be likely
to harbor rats or vermin;
6. no dead, decayed or diseased trees, weeds
and other vegetation.
(b) No yard areas shall be left unmaintained,
1. no broken or discarded furniture, appliances
and other household equipment stored in yard
areas for periods exceeding one (1) week;
2. no packing boxes, lumber, trash, dirt and
other debris stored in yards for periods
exceeding one (1) week in areas visible from
public property or neighboring properties;
3. no unscreened trash cans, bins or containers
stored for unreasonable periods in areas
visible from public property or neighboring
properties; and
4. no vehicles parked or stored in other than
approved parking areas.
(c) No buildings may be left in an unmaintained
condition, including:
02/09/93 ATTACHMENT NO. 9
4247Q/2338/37 (Page 6 of 9)
1. no violations of state law, Uniform Codes,
or City ordinances;
2. no condition that constitutes an unsightly
appearance that detracts from the aesthetics
or property value of the subject property or
constitutes a private or public nuisance;
3. no broken windows or chipped, cracked or
peeling paint; and
4. no conditions constituting hazards and/or
inviting trespassers or malicious mischief.
If such buildings, landscaping or yard areas are not
so maintained, and such condition is not corrected as soon as
possible after notice thereof from Covenantee or the City of
La Quinta, then either Covenantee or the City may perform the
necessary maintenance and Covenantor shall pay such costs as
are reasonably incurred for such maintenance.
6. Notification As To Capital Improvements.
In the event the Covenantor makes capital improvements
to the Property, such capital improvements may affect the
amount payable by the Covenantor (or its successors) to the
Agency pursuant to the Housing Agreement, as set forth in
greater detail in the "Buyer Disclosure", which is Attachment
No. 13 to the Housing Agreement. In order for the capital
improvements to be countable for such purposes, the Covenantor
shall, prior to undertaking such improvements inform the Agency
in writing as to the general character, extent, and estimated
costs of the improvements, and shall further provide invoices,
paid bills, and other evidence to substantiate to the
reasonable satisfaction of the Executive Director of the Agency
the costs incurred. Notice shall reference this Section 6, and
shall be mailed or delivered to the La Quinta Redevelopment
Agency, Attention: Executive Director, as more fully set forth
in Section 10 hereof.
7. Covenants Do Not Impair Lien.
No violation of breach of the covenants, conditions,
restrictions, provisions or limitations contained in this
Declaration shall defeat or render invalid or in any way impair
the lien or charge of any mortgage or deed of trust or security
interest.
8. Conflict with Other Laws; Severability.
In the event that any provision of this Declaration is
found to be contrary to applicable law or the Affordability
Restriction, then the contrary provisions of this Declaration
02/09/93 ATTACHMENT NO. 9
4247Q/2338/37 (Page 7 of 9)
shall be deemed to mean those provisions which are enforceable
and consistent with such laws and policies. The remaining
portions of this Declaration shall be deemed modified in a
manner which is consistent with the goals and intent of this
Declaration to provide housing at an affordable housing cost to
low -and moderate -income households.
Every provision of this Declaration is intended to be
severable. In the event any term or provision of this
Declaration is declared by a court of competent jurisdiction to
be unlawful, invalid or unenforceable for any reason, such
determination shall not affect the balance of the terms and
provisions of this Declaration, which terms and provisions
shall remain binding and enforceable.
9. Covenants For Benefit of City and Agency.
All covenants without regard to technical
classification or designation shall be binding for the benefit
of the Covenantee and the City of La Quinta (the "City") and
such covenants shall run in favor of the Covenantee and the
City for the entire period during which such covenants shall be
in force and effect, without regard to whether the Covenantee
or the City is or remains an owner of any land or interest
therein to which such covenants relate. The Covenantee and the
City, in the event of any breach of any such covenants, shall
have the right to exercise.all the rights and remedies and to
maintain any actions at law or suits in equity or other proper
legal proceedings to enforce and to cure such breach to which
it or any other beneficiaries of these covenants may be
entitled during the term specified for such covenants, except
the covenants against discrimination which may be enforced at
law or in equity at any time in perpetuity.
10. Notices, Demands and Communications
Written notices, demands and communications between
the Covenantor and the Covenantee shall be sufficiently given
if delivered by hand or dispatched by registered or certified
mail, postage prepaid, return receipt requested, as follows:
Covenantor: [insert address of residence]
Covenantee: La Quinta Redevelopment -Agency
Executive Director
78-105 Calle Estado
La Quinta, California 92253
Such addresses for notice may be changed from time to time upon
notice to the other party.
02/09/93 ATTACHMENT NO. 9
4247Q/2338/37 (Page 8 of 9)
Any written notice, demand or communication shall be
deemed received immediately if delivered by hand and shall be
deemed received on the fifth (5th) calendar day from the date
it is postmarked if delivered by registered or certified mail.
11. Expiration Date.
This Declaration shall automatically terminate and be
of no further force or effect as of June 16, 2029, except as
otherwise provided in this Declaration.
IN WITNESS WHEREOF, the Covenantee and Covenantor have
caused this instrument to be executed on their behalf by their
respective officers hereunto duly authorized as of the date set
forth above.
ATTEST:
Agency Secretary
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic
By:
Its:
By:
Its.
By:
Its.
"COVENANTEE"
"COVENANTOR" or "BUYER"
02/09/93 ATTACHMENT NO. 9
4247Q/2338/37 (Page 9 of 9)
STATE OF CALIFORNIA )
ss.
COUNTY OF )
On , before me,
(name, title, e.g., "Jane Doe, Notary Public")
personally appeared
(name(s) of signer(s)),
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.
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Officer(s):
Partner(s):
Attorney -in -Fact
Trustee(s)
Guardian/Conservator
Other:
(Signature of Notary)
Title(s)
Limited General
SIGNER IS REPRESENTING:
Name of Person(s) or Entity(ies)
ATTENTION NOTARY: Although the information requested below
is OPTIONAL, it could prevent fraudulent attachment of this
certificate to another document.
THIS CERTIFICATE
MUST BE ATTACHED
TO THE DOCUMENT
tsi t�ivni
02/09/93
4247Q/2338/37
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above:
ATTACHMENT NO. 9
STATE OF CALIFORNIA )
ss.
COUNTY OF )
On , before me,
(name, title, e.g., "Jane Doe, Notary Public"),
personally appeared
(name(s) of signer(s)),
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.
(Signature of Notary)
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Officer(s):
Title(s)
Partner(s): Limited General
Attorney -in -Fact
Trustee(s)
Guardian/Conservator
Other:
SIGNER IS REPRESENTING:
Name of Person(s) or Entity(ies)
ATTENTION NOTARY: Although the information requested below
is OPTIONAL, it could prevent fraudulent attachment of this
certificate to another document.
THIS CERTIFICATE
MUST BE ATTACHED
TO THE DOCUMENT
DESCRIBED
AT RIGHT:
02/09/93
4247Q/2338/37
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above:
ATTACHMENT NO. 9
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
[To Be Inserted]
02/09/93 EXHIBIT "A" TO
4247Q/2338/37 ATTACHMENT NO. 9
EXHIBIT "B"
Certification of Income
Part I -- General Information
1. Project Location:
2. Property Owner's Name:
Part II -- Unit Information
3. Property 4. Number of 5. Monthly 6. Number of
Address Bedrooms Payment Occupants
Part III -- Affidavit of Purchaser
I/We, , and as
applicants for purchase of a dwelling unit at the
above -described location, do hereby represent and warrant as
follows:
j
A. (My/Our) total combined gross income (anticipated total
annual income) does not exceed fifty percent (50%) of the
median income for the Riverside Primary Metropolitan
Statistical Area as such income levels are established and
amended from time to time pursuant to Section 8 of the
United States Housing Act of 1937 and published by the
State Department of Housing and Community Development in
the California Code of Regulations. (I/We) understand that
the applicable median income is $ The
following computation includes all income (I/we) anticipate
receiving for the 12-month period beginning on the date
(I/we) execute a purchase agreement for an Affordable Unit
or the date on which (I/we) will initially occupy such
unit, whichever is earlier.
PurchasersInitials
B. (My/Our) total combined gross income (anticipated total
annual income) does not exceed eighty percent (80%) of the
median income for the Riverside Primary Metropolitan
02/09/93 EXHIBIT "B" TO ATTACHMENT NO. 9
4247Q/2338/37 (Page 1 of 5)
or
Statistical Area as such income levels are established and
amended from time to time pursuant to Section 8 of the
United States Housing Act of 1937 and published by the
State Department of Housing and Community Development in
the California Code of Regulations. (I/We) understand that
the applicable median income is $ The following
computation includes all income (I/we) anticipate receiving
for the 12-month period beginning on the date (I/we)
execute a purchase agreement for an Affordable Unit or the
date on which (I/we) will initially occupy such unit,
whichever is earlier.
Purchasers' Initials
C. (My/Our) total combined gross income (anticipated total
annual income) does not exceed one hundred twenty percent
(120%) of the median income for the Riverside Primary
Metropolitan Statistical Area as such income levels are
established and amended from time to time pursuant to
Section 8 of the United States Housing Act of 1937 and
published by the State Department of Housing and Community
Development in the California Code of Regulations. (I/We)
understand that the applicable median income is
$ The following computation includes all income
(I/we) anticipate receiving for the 12-month period
beginning on the date (I/we) execute a purchase agreement
for an Affordable Unit or the date on which (I/we) will
initially occupy such unit, whichever is earlier.
or
Purchasers' Initials
D. (My/Our) total combined gross income (anticipated total
annual income) does exceed one hundred twenty percent
(120%) of the median income for the Riverside Primary
Metropolitan Statistical Area as such income levels are
established and amended from time to time pursuant to
Section 8 of the United States Housing Act of 1937 and
published by the State Department of Housing and Community
Development in the California Code of Regulations. (I/We)
understand that the applicable median income is $
Purchasers' Initials
02/09/93 EXHIBIT "B" TO ATTACHMENT NO. 9
4247Q/2338/37 (Page 2 of 5)
4. Purchasers qualifying under A, B and C, above, must
complete the following. For the Purchasers and all family
members include:
(a) amount of wages, salaries, overtime pay,
commissions, fees, tips and bonuses, and
payments in lieu of earnings, such as
unemployment and disability compensation,
worker's compensation and severance pay
(before payroll deductions)
(b) net income from business or profession or
rental of property (without deduction for
repayment of debts or expansion of
business)
(c) interest and dividends
(d) periodic receipts such as social security,
annuities, pensions, retirement funds,
insurance policies, disability or death
benefits, alimony, child support, regular
contributions or gifts from persons not
occupying the unit
(e) public assistance allowance or grant plus
excess of maximum allowable for shelter or
utilities over the actual allowance for
such purposes
(f) regular and special pay and allowances of
a member of armed services (whether or not
living in the dwelling) who is head of the
family or spouse
Subtotal (a) - (f)
Less: portion of above items which
is income of a family member who is
less than 18 years old or a full-time
student
Total Eligible Income
Note: The following items are not considered income: casual
or sporadic gifts; amounts specifically for or in reimbursement
of medical expenses; lump sum payment such as inheritances,
insurance payments, capital gains and settlement for personal
or property losses; educational scholarships paid directly to
the student or educational institution; government benefits to
a veteran for education; special pay to a serviceman head of
family away from home and under hostile fire; foster child care
02/09/93 EXHIBIT "B" TO ATTACHMENT NO. 9
4247Q/2338/37 (Page 3 of 5)
payments; value of coupon allotments for purpose of food under
Food Stamp Act of 1964 which is in excess of amount actually
charged the eligible household; relocation payments under
Title II of Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970; payments received pursuant to
participation in the following programs: VISTA, Service
Learning Programs, and Special Volunteer Programs, SCORE, ACE,
Retired Senior Volunteer Program, Foster Grandparent Program,
Older American Community Services Program, and National
Volunteer Program to Assist Small Business Experience.
5. This affidavit is made with the knowledge that it will be
relied upon by the Property Owner to determine maximum income
for eligibility and (I/we) warrant that all information set
forth in this document is true, correct and complete and based
upon information (I/we) deem reliable and that the estimate
contained in paragraph 1 of this Part III is reasonable and
based upon such investigation as the undersigned deemed
necessary.
6. (I/We) will assist the Property Owner in obtaining any
information or documents required to verify the statements made
in this Part III and have attached hereto the following:
(a) True copy of federal income tax returns, including
W-2's, for the past two years
(b) Copy of last 2 pay stubs for each employed member of
the household
(c) Completed Employer Income Verification Certification
in the form attached
7. (I/We) acknowledge that (I/we) have been advised that the
making of any misrepresentation or misstatement in this
affidavit will constitute a material breach of (my/our)
agreement with the Property Owner to purchase the unit and will
additionally enable the Property Owner and/or La Quinta
Redevelopment Agency to initiate and pursue all applicable
legal and equitable remedies with respect to the unit and to
me/us.
(I/We) do hereby swear under penalty of perjury that the
foregoing statements are true and correct.
Date
Date
02/09/93
4247Q/2338/37
Signature of Purchaser
Signature of Purchaser
EXHIBIT "B" TO ATTACHMENT NO. 9
(Page 4 of 5)
EMPLOYER INCOME VERIFICATION CERTIFICATION
(for employed persons)
The undersigned employee has applied for purchase of a
dwelling unit located in a redevelopment project area in the
City of La Quinta. Every income statement of a prospective
purchaser must be stringently verified. Please indicate below
the employee's current annual income from wages, overtime,
bonuses, commissions or any other form of compensation received
on a regular basis.
Annual wages
Overtime
Bonuses
Commissions
Total current
income
I hereby certify that the statements above are true and
complete to the best of my knowledge.
Signature Date Title
I hereby grant permission to disclose my income to the
La Quinta Redevelopment Agency and , the
property owner/seller, in connection with my proposed purchase
of a dwelling unit located in their project.
Signature Date
Please send to the following address, or to such other address
as may from time to time be designated by the La Quinta'
Redevelopment Agency for this purpose:
Rosenow Spevacek Group
Attention: Nancy Madrid
540 North Golden Circle, Suite 305
Santa Ana, California 92705-3914
02/09/93 EXHIBIT "B" TO ATTACHMENT NO. 9
4247Q/2338/37 (Page 5 of 5)
ATTACHMENT NO. 10
INCOME VERIFICATION
LA QUINTA REDEVELOPMENT AGENCY
RENTER OCCUPIED UNIT
1. Property Owner:
Address:
Pa
Street City Zip
Telephone:
Tenant Information: Property Address:
Head of Household Name:
Age: Estimated Annual Gross Income:
Employer:
Address:
Annual Gross Income for Prior Year (1992):
How many other individuals reside in your home?
Please identify each individual (including children)
Name:
Age: Estimated Annual Gross Income:
Name of Employer:
Address:
Name Name
Name Name
Name Name
The following items as listed as items A or B below should be
attached to this application:
A. Proof that the Household holds a Section 8 Certificate
which was first made available after January 1, 1985;
or
02/09/93 ATTACHMENT NO. 10
4247Q/2338/037 (Page 1 of 3)
B. (1) A true copy of the most recent federal income tax
return, including W-2's
(2) Copy of last 2 pay stubs for each employed member
of the household
(3) Completed employer income verification
certification
(I/We) acknowledge that (I/we) have been advised that the
making of any misrepresentation or misstatement in this
affidavit will constitute a material breach of (my/our)
agreement with the Property Owner to rent the unit and will
additionally enable the Property Owner and/or La Quinta
Redevelopment Agency to initiate and pursue all applicable
legal and equitable remedies with respect to the unit and to
me/us.
(I/We) do hereby swear under penalty of perjury that the
information provided above is to (my/our) best knowledge
truthful and accurate. This application shall be sent to the
following address, or to such other address as may from time to
time be designated for the La Quinta Redevelopment Agency for
this purpose:
Date
Rosenow Spevacek Group
Attention: Nancy Madrid
540 North Golden Circle, Suite 305
Santa Ana, California 92705-3914
Signature
Date Signature
02/09/93 ATTACHMENT NO. 10
4247Q/2338/037 (Page 2 of 3)
INCOME VERIFICATION
(for employed persons)
The undersigned employee has applied for rental of a
dwelling unit located in a redevelopment project area in the
City of La Quinta. Every income statement of a prospective
renter must be stringently verified. Please indicate below the
employee's current annual income from wages, overtime, bonuses,
commissions or any other form of compensation received on a
regular basis.
Annual wages
Overtime
Bonuses
Commissions
Total current
income
I hereby certify that the statements above are true and
complete to the best of my knowledge.
Signature Date Title
I hereby grant permission to disclose my income to the
La Quinta Redevelopment Agency and , the
project operator (Property Owner), in connection with my
proposed rental of a dwelling unit located in their project.
Signature
Date
Please send to the following address, or to such other address
as may from time to time be designated by the La Ouinta
Redevelopment Agency:
Rosenow Spevacek Group
Attention: Nancy Madrid
540 North Golden Circle, Suite 305
Santa Ana, California 92705-3914
02/09/93 ATTACHMENT NO. 10
4247Q/2338/037 (Page 3 of 3)
ATTACHMENT NO. 11
CERTIFICATION OF CONTINUING PROGRAM COMPLIANCE
The undersigned, , being duly
authorized to execute this certificate on behalf of Coachella
Valley Land, a Limited Partnership, and William J. Cusack, on
his own behalf, hereby represents and warrants that:
1. He/she has read and is thoroughly familiar with
the provisions of the Affordable Housing Agreement
("Agreement") by and among the La Quinta Redevelopment Agency
(the "Agency"), Coachella Valley Land, a Limited Partnership
(the "Participant"), and William J. Cusack, a married man
("Owner") of which this certification is an attachment.
2. As of the date of this certificate, the following
number of residential units on the Rental Properties (i) are
currently occupied by tenants qualifying as a Very Low Income
Household at Affordable Rents (as such terms are defined in the
Agreement) or (ii) are currently vacant and being held
available for occupancy by Qualifying Renters and have been so
held continuously since the date Qualifying Renters vacated
such unit, as indicated:
3. The unit size, the rental amount charged and
collected by Participant or Owner, the number of occupants and
the income of the occupants for each unit on the Rental
Properties is set forth below. All units on the Rental
Properties are rented at Affordable Rent:
Dated:
COACHELLA VALLEY LAND, a Limited
Partnership
By:
[Signatures continued on next page]
02/09/93 ATTACHMENT NO. 11
4247Q/2338/037 (Page 1 of 2)
Dated:
[Signatures continued from previous page]
WILLIAM J. CUSACE
William J. Cusack
02/09/93 ATTACHMENT NO. 11
4247Q/2338/037 (Page 2 of 2)
STATE OF CALIFORNIA
ss.
COUNTY OF
On , before me,
(name, title, e.g., "Jane Doe, Notary Public")
personally appeared
(name(s) of signer(s)),
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.
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Officer(s):
Partner(s):
Attorney -in -Fact
Trustee(s)
Guardian/Conservator
Other:
(Signature of Notary)
Title(s)
Limited General
SIGNER IS REPRESENTING:
Name of Person(s) or Entity(ies)
ATTENTION NOTARY: Although the information requested below
is OPTIONAL, it could prevent fraudulent attachment of this
certificate to another document.
THIS CERTIFICATE Title or Type of Document
MUST BE ATTACHED
TO THE DOCUMENT
nVCt1nTacn
rat nivni
Number of Pages
Date of Document
Signer(s) Other Than Named Above:
02/09/93
4247Q/2338/037 ATTACHMENT NO. 11
ATTACHMENT NO. 12
SUBORDINATION AGREEMENT
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO: )
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT MAY RESULT IN THE
SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO
AND OF LOWER PRIORITY THAN THE LIEN OF A SECURITY
INSTRUMENT.
This Subordination Agreement ("Subordination") is made as of
1993 by and among the
public body, corporate and politic (the "Agency"), and
("Owner") and
("Lender").
R E C I T A L S
A. Owner and the Agency have entered into a certain
Resale Restriction Agreement and Option to Purchase dated
, 19, (the "Agreement") pursuant to which the Owner
has agreed to subject certain real property (the "Property"),
as more particularly described in Exhibit "A" attached hereto
and incorporated herein by reference to said Agreement.
B. Lender has agreed to make a loan to the
Participant in the amount of $ (the "Loan") on the
condition that it shall secure such loan with a deed of trust
in a first lien position (the "First Deed of Trust").
a
C. Lender desires to sell the Loan and First Deed of
Trust to an Institutional Lender that will not purchase the
Loan and First Deed of Trust unless the Agreement is
subordinated to the First Deed of Trust.
D. The Agency has found and declared, by Resolution
No. dated , 19 , that an economically
feasible alternative method of financing, refinancing or
assisting properties pursuant to the
and conditions, but
available.
02/09/93
42479/2338/037
Program on substantially comparable terms
without subordination, is not reasonably
ATTACHMENT NO. 12
( Page 1 of 3 )
E. The parties to this Subordination desire by this
Subordination to subordinate the provisions of the Agreement to
the First Deed of Trust.
NOW, THEREFORE, in consideration of the mutual benefits
accruing to the parties hereto and other valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, it is hereby declared, understood and agreed as
follows:
1. Subordination. The First Deed of Trust shall be prior
and superior to the Agreement. Any party, and its successors
and assigns, receiving title to the Property through a
trustee's sale, a judicial foreclosure sale or deed in lieu of
foreclosure, and any conveyance or transfer thereafter, shall
receive title free and clear of the provisions of the Agreement.
2. Only Agreement. This Subordination shall be the whole
and only agreement with regard to the subjection and
subordination of the provisions of the Agreement to the First
Deed of Trust.
3. Intent of Agency and Owner. In accordance with the
conditions set forth in this Subordination, the Agency and the
Owner intentionally waive, relinquish, subject and subordinate
the provisions of the Agreement together with all rights and
privileges of the Agency thereunder in favor of the lien or
charge upon said Property of the First Deed of Trust and
understand that in reliance upon, and in consideration of, this
waiver, relinquishment, subjection and subordination, specific
loans and advances will be or have been made and, as part and
parcel thereof, specific monetary and other obligations have
been entered into which would not have been made or entered
into but for said reliance upon this waiver, relinquishment,
subjection and subordination.
4. Applicable Law. This Subordination shall be
interpreted in accordance with the laws of the State of
California.
5. Successors and Assigns. The covenants, agreements,
terms and conditions of this Subordination shall be binding
upon and inure to the benefit of the successors and assigns of
all of the parties hereto.
6. Attorneys' Fees. In the event of any controversy,
claim or dispute between the parties hereto affecting or
relating to the purposes or subject matter of this
Subordination, the prevailing party shall be entitled to
recover from the nonprevailing party all of its reasonable
expenses, including, without limitation, reasonable attorneys'
fees.
02/09/93 ATTACHMENT NO. 12
4247Q/2338/037 (Page 2 of 3)
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date set forth above.
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and polizic
By:
Executive Director
"AGENCY"
ATTEST:
By:
Secretary
APPROVED AS TO FORM
(LENDER)
By:
Its:
"LENDER"
(OWNER)
By:
Its:
"OWNER"
02/09/93 ATTACHMENT NO. 12
4247Q/2338/037 (Page 3 of 3)
ATTACHMENT NO. 13
BUYER DISCLOSURE
Creditor: LA OUINTA REDEVELOPMENT AGENCY
78-105 Calle Estado
La Quinta, California 92253
Borrower:
Itemization of Amount Financed: You have the right to receive
at this time an itemization of
the Amount Financed.
[ ] I want an itemization
Your Payment Schedule Will Be:
Number of Amount of
Payments Pavments
[ ] I do not want an itemization.
When Payments Are Due
One (1) Forty (40) years from the date the
loan is made, unless the loan is
accelerated pursuant to Section 6
of the Property Covenants, a copy
of which is attached hereto, in
which case payment will be due at
the time of acceleration.
Property: You must obtain property insurance in an amount
equal to the full replacement value of the
structures on the Property and name the La Quinta
Redevelopment Agency as a loss payee.
Security: You are giving a security interest in the home
you are purchasing which is located
at La Quinta, California
Filing Fees: $ Non -Filing _ Insurance: $
Late Charge: If a payment is late, you will be charged $ /
of the payment.
02/09/93 ATTACHMENT NO. 13
4247Q/2338/037 (Page 1 of 6)
Prepayment: If you pay off early, you
[X] may [ ] may not have to pay principal,
accrued simple interest and
contingent deferred interest.
[ ] may [X] may not have to pay a penalty.
Interest Rate: The Agency Loan has a base interest rate that
is
[ ] fixed at zero percent 0% per year.
[ ] variable. Disclosures about the variable -rate
feature have been provided to you earlier.
Equity Share:
In addition to the base interest rate, if the Agency Loan is
accelerated prior to maturity or is paid at maturity, the La
Quinta Redevelopment Agency is entitled to a percentage of the
appreciation ("contingent deferred interest") of the secured
real property as defined pursuant to Section of the
Resale Restriction Agreement and Option to Purchase. The
complete terms of the Agency Loan are fully set forth in the
"INFORMATION ABOUT THE AGENCY LOAN," the Loan Agreement,
Promissory Note, Agency Deed of Trust, Declaration of CC&Rs,
Disclosure Statement and other loan documents. READ ALL OF
THESE DOCUMENTS CAREFULLY. ALL OF THESE DOCUMENTS AFFECT YOUR
LEGAL RIGHTS.
Assumption: Someone buying your house
[ ] may, subject to conditions, be allowed to assume
the remainder of the mortgage on the original
terms.
[ ] cannot assume the remainder of the mortgage on the
original terms.
Demand Feature: This obligation
[ ] [is payable on demand] or [has a demand feature]
[ ] [is not payable on demand] or [has no demand
feature]
Examples:
Example No. 1 shows what your payment would be if you borrowed
$7,000 from the Agency, bought a house for $100,000, and sold
this house one year later for $110,000 without making any
Qualified Capital Improvements to the Property. This does not
02/09/93 ATTACHMENT NO. 13
4247Q/2338/037 (Page 2 of 6)
necessarily indicate how your house will appreciate in the
future.
Example No. 1 is based on the following assumptions:
Amount of Agency Loan . . . . . . . . . $ 7,000
Purchase Price of house . . . . . . . . $100,000
Sales Price of house one year later . . $110,000
Under the above assumptions, you would owe the following
amounts to the Agency:
Simple interest at 0% per annum . . . . $ 000
Contingent deferred interest . . . . . $ 700*
Principal . . . . . . . . . . . . . . . $7, 000
Total amount owed by you . . . . . . . $7,700
* Contingent deferred interest =
Agency Loan
Purchase Price x (Sales Price - Purchase Price) _
$ 7,000
$100,000 x ($110,000 - $100,000) _
7% x $10,000 = $700
Example No. 2 shows what your payment would be if you borrowed
the same $7,000 from the Agency as in Example No. 1 and
purchased the same house for $100,000 and sold that house five
years later for $110,000. You added a patio and patio cover
which increased the appraised fair market value of the Property
$2,000 (from $108,000 to $110,000) and you followed the
notification requirements of Section 6 of the Property
Covenants (Attachment No. 9). This does not necessarily
indicate how your house will appreciate in the future.
Example No. 2 is based on the following assumptions:
Amount of Agency Loan . . . . . . . . . . $ 7,000
Purchase Price of house $100,000
Value of Qualified Capital Improvements $ 2,000
Sales Price of house . . . . . . . . . . $110,000
Under the above assumptions you would owe the following amounts
to the Agency:
Simple interest at 0% per annum . . . . . $ 000.00
Contingent Deferred Interest . . . . . . $ 560.00*
Principal . . . . . . . . . . . . . . . . $7, 000.00
Total Amount Owed By You . . . . . . . . $7,560.00
02/09/93 ATTACHMENT NO. 13
4247Q/2338/037 (Page 3 of 6)
* Contingent Deferred Interest =
Aaencv Loan
Purchase Price x Sales Price - (Purchase Price + Qualified
Capital Improvements)
S 7,000 x 5110,000 - ($100,000 + 2,000)
$100,000
7% x $3,000 = $560.00
See your loan documents for any additional information about
the terms for the provision of the Applicable Ownership
Assistance by the Agency, nonpayment, default and penalties and
any required repayment in full before the scheduled date.
02/09/93 ATTACHMENT NO. 13
4247Q/2338/037 (Page 4 of 6)
ITEMIZATION OF THE AMOUNT FINANCED OF $
$ Amount given to you directly
$ Amount paid on your account
Amount paid to others on your behalf:
$ to [credit bureau] [appraiser] [title
insurance company] [escrow]
$ to (name of another creditor)
$ to (other)
$ prepaid finance charge
I have carefully reviewed the Buyer Disclosure, consisting of
five pages, plus a copy of the Property Covenants.
Dated:
Buyer Initials
02/09/93 ATTACHMENT NO. 13
4247Q/2338/037 (Page 5 of 6)
PROPERTY COVENANTS
[Attach copy of Property Covenants and have them
initialled by Buyer at time Buyer Disclosure is reviewed
and initialled by Buyer]
02/09/93 ATTACHMENT NO. 13
42479/2338/037 (Page 6 of 6)
ATTACHMENT NO. 14
MEMORANDUM OF AGREEMENT
Recording Requested By and
When Recorded Return To:
LA QUINTA REDEVELOPMENT AGENCY )
78-105 Calle Estado )
P.O. Box 1504 )
La Quinta, California 92253 )
MEMORANDUM OF AFFORDABLE HOUSING AGREEMENT
THIS MEMORANDUM OF AFFORDABLE HOUSING AGREEMENT
("Memorandum") dated for identification purposes as of
1993, is entered into by and between the
LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and
politic ("Agency"), COACHELLA VALLEY LAND, a Limited
Partnership (the "Participant"), and WILLIAM J. CUSACK, a
married man ("Owner").
1. Agency, the Participant and Owner have executed an
Affordable Housing Agreement dated for identification purposes
as of , 1993, covering, among other property,
that certain real property located in the City of La Quinta,
County of Riverside, State of California, more fully described
in Exhibit "A" attached hereto and incorporated herein by this
reference. All of the terms, conditions, provisions and
covenants of the Affordable Housing Agreement are incorporated
in this Memorandum by reference as though written out at length
herein, and the Affordable Housing Agreement and this
Memorandum shall be deemed to constitute a single instrument or
document. Pursuant to the Affordable Housing Agreement, the
dwelling units on the real property described in Exhibit "A"
are to be available at Applicable Rent to Qualifying Renters,
all as defined pursuant to the Affordable Housing Agreement.
2. Purpose of Memorandum. This Memorandum is prepared for
recordation purposes only, and in no way modifies the terms,
conditions, provisions and covenants of the Affordable Housing
Agreement. In the event of any inconsistency between the -
terms, conditions, provisions and covenants of this Memorandum
and the Affordable Housing Agreement, the terms, conditions,
provisions and covenants of the Affordable Housing Agreement
shall prevail.
02/09/93 ATTACHMENT NO. 14
4247Q/2338/037 (Page 1 of 2)
The parties have executed this Memorandum on the dates
specified immediately adjacent to their respective signatures.
COACHELLA VALLEY LAND, a Limited
Partnership
Dated:
Dated:
Dated:
ATTEST:
Agency Secretary
1993.
1993.
By:
Its:
By:
Its:
"PARTICIPANT"
WILLIAM J. CUSACK, a married man
William J. Cusack
LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic
1993. By:
Chairman
"AGENCY"
02/09/93 ATTACHMENT NO. 14
4247Q/2338/037 (Page 2 of 2)
EXHIBIT "A"
LEGAL DESCRIPTION
[To Be Inserted; insert description of the
Rental Properties]
02/09/93 EXHIBIT "A" TO
4247Q/23.38/037 ATTACHMENT NO. 14
ATTACHMENT NO.
15
TABLE OF BASE VALUES
Address/Legal
Base Value
1.
53-775
Ave. Alvarado
$101,525.00
Lot 2,
Block 201
2.
52-625
Ave. Rubio
$102,445.00
Lot 6,
Block 165
3.
52-565
Eisenhower Dr.
$101,525.00
Lot 3,
Block 150
4.
51-805
Ave. Cortez
$101,525.00
Lot 3,
Block 29
S.
52-605
Ave. Carranza
$102,445.00
Lot 4,
Block 155
6.
53-780
Ave. Vallejo
$102,445.00
Lot 23,
Block 237
7.
53-275
Ave. Ramirez
$101,525.00
Lot 2,
Block 223
S.
53-541
Ave. Ramirez
$101,525.00
Lot 2,
Block 244
9.
52-195
Ave. Mendozo
$101,525.00
Lot 10,
Block 95
10.
51-395
Ave. Vallejo
$101,525.00
Lot 9,
Block 66
11.
52-705
Ave. Obregon
$101,525.00
Lot 10,
Block 163
12.
54-900
Ave. Vallejo
$101,525.00
Lot 17,
Block 312
13.
52-085
Ave. Alvarado
$101,525.00
Lot 4,
Block 3
14.
54-245
Ave. Herrera
$103,565.00
Lot 12,
Block 283
15.
52-225
Ave. Vallejo
$103,565.00
Lot 11,
Block 77
02/09/93
4247Q/2338/037
ATTACHMENT NO. 15
(Page 1 of 2)
16.
53-195
Ave. Carranza
$102,445.00
Lot 9,
Block 221
17.
53-785
Ave. Ramirez
$101,525.00
Lot 4,
Block 235
18.
53-155
Ave. Obregon
$102,445.00
Lot 8,
Block 175
19.
53-795
Ave. Herrera
$102,445.00
Lot 3,
Block 237
20.
53-940
Eisenhower Dr.
$102,445.00
Lot 15,
Block 247
02/09/93
4247Q/2338/037
ATTACHMENT NO. 15
(Page 2 of 2)
ATTACHMENT NO. 16
GRANT DEED
RECORDING REQUESTED BY AND
When Recorded Mail To:
Stradling, Yocca, Carlson
& Rauth
660 Newport Center Drive
Suite 1600
Newport Beach, CA 92660-6441'
Attn: Mark J. Huebsch, Esq.
(Space Above Provided For Recorder)
MAIL TAX STATEMENTS TO: DOCUMENTARY TRANSFER TAX $
Computed on the consideration
or value of property conveyed; OR
Computed on the consideration
or value less liens or
encumbrances remaining at time of
sale.
Signature of Declarant or Agent
determining tax - Firm Name
j
GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby
acknowledged,
hereby GRANT(S) to
the real property in the City of County
of , State of Calizornia, described as
Dated:
02/09/93 ATTACHMENT NO. 16
4247Q/2338/037 (Page 1 of 1)
STATE OF CALIFORNIA )
ss.
COUNTY OF )
On , before me,
(name, title, e.g., "Jane Doe, Notary Public")
personally appeared
(name(s) of signer(s)),
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.
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Officer(s):
Partner(s):
Attorney -in -Fact
Trustee(s)
Guardian/Conservator
Other:
(Signature of Notary)
Title(s)
Limited General
SIGNER IS REPRESENTING:
Name of Person(s) or Entity(ies)
ATTENTION NOTARY: Although the information requested below
is OPTIONAL, it could prevent fraudulent attachment of this
certificate to another document.
THIS CERTIFICATE
MUST BE ATTACHED
TO THE DOCUMENT
DESCRIBED
AT RIGHT:
02/09/93
4247Q/2338/037
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above:
ATTACHMENT NO. 16
ATTACHMENT NO. 17
SPOUSAL WAIVER
I, Gail Cusack, am the wife of William J. Cusack, a
party to that certain Affordable Housing Agreement dated
199_, by and among the La Quinta Redevelopment
Agency ("Agency"), Coachella Valley Land and William J. Cusack
("Owner") ("AHA"). I hereby represent and warrant the
following with the understanding that Agency shall be relying
on same in performing its obligations under the AHA:
1. I am not a party to the AHA and have no
interest therein or to any of the proceeds of the Agency
Assistance (as such term is defined in the AHA).
2. I have no ownership, leasehold or equitable
interest in any of the properties described on Exhibit "A",
attached hereto and incorporated herein.
3. I consent to the execution by William J.
Cusack of the AHA and all Attachments thereto.
Dated: , 199
GAIL CUSACK
02/09/93
4247Q/2338/037 ATTACHMENT NO. 17
EXHIBIT "A" TO
ATTACHMENT NO. 17
PROPERTY DESCRIPTIONS
02/09/93 EXHIBIT "A" TO
4247Q/2338/037 ATTACHMENT NO. 17
ATTACHMENT NO. 1
DESCRIPTION OF OWNERSHIP PROPERTIES
1. 52-641 Avenida Bermudas, La Quinta
(Lot 5 of Block 140)
2. 52-965 Avenida Carranza, La Quinta
(Lot 11 of Block 156)
3. 52-975 Avenida Carranza, La Quinta
(Lot 12 of Block 156)
4. 53-121 Avenida Obregon, La Quinta
(Lot 6 of Block 175)
5. 53-205 Avenida Navarro, La Quinta
(Lot 10 of Block 205)
6. 53-755 Avenida Navarro, La Quinta
(Lot 1 of Block 250)
7. 54-045 Avenida Alvarado, La Quinta
(Lot 2 of Block 254)
8. 54-045 Avenida Carranza, La Quinta
(Lot 2 of Block 286)
9. 54-395 Avenida Juarez, La Quinta
(Lot 6 of Block 261)
10. 54-905 Avenida Diaz, La Quinta
(Lot 9 of Block 276)
02/26/93 ATTACHMENT N0, 1
2785q/2338/037
ATTACHMENT NO. 2
DECLARATION OF RENTAL PROPERTIES
[All units are situated in the City of La Quinta, Riverside
County, California]
1. LOT 12 IN BLOCK 283 OF SANTA CARMELITA AT VALE LA QUINTA
UNIT NO. 26, AS SHOWN BY MAP ON FILE IN BOOK 20 PAGE 50 of
MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS
54-245 AVENIDA HERRERA, LA QUINTA.)
2. LOT 17 IN BLOCK 312 OF UNIT NO. 28, SANTA CARMELITA AT VALE
LA QUINTA, AS SHOWN BY MAP ON FILE IN BOOK 19 PAGES 59 AND
60 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN
AS 54-900 AVENIDA VALLEJO, LA QUINTA.)
3. LOT 4 IN BLOCK 3 OF SANTA CARMELITA AT VALE LA QUINTA UNIT
NO. 1, AS SHOWN BY MAP ON FILE IN BOOK 18 PAGE 46 OF MAPS,
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS 52-085
AVENIDA ALVARADO, LA QUINTA.)
4. LOT 15 IN BLOCK 247 OF SANTA CARMELITA AT VALE LA QUINTA
UNIT NO. 23, AS SHOWN BY MAP ON FILE IN BOOK 20 PAGE 25 OF
MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS
53-940 EISENHOWER DRIVE, LA QUINTA, CALIFORNIA.)
5. LOT 3 OF BLOCK 237 OF SANTA CARMELITA AT VALE LA QUINTA,
UNIT NO. 22 AS SHOWN BY MAP ON FILE IN BOOK 20 PAGE 24 OF
MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS
53-795 AVENIDA HERRERA, LA QUINTA.)
6. LOT 8 IN BLOCK 175 OF SANTA CARMELITA AT VALE LA QUINTA
UNIT NO. 18, AS SHOWN BY MAP ON FILE IN BOOK 19 PAGES 30
AND 31 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
(KNOWN AS 53-155 AVENIDA OBREGON, LA QUINTA.)
7. LOT 4, BLOCK 235 OF SANTA CARMELITA UNIT NO. 22, AS SHOWN
BY MAP ON FILE IN BOOK 20 PAGE 24 OF MAPS, RECORDS OF
RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS 537785 AVENIDA
RAMIREZ, LA QUINTA.)
8. LOT 2, BLOCK 244 OF SANTA CARMELITA UNIT NO. 23 IN THE
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA AS SHOWN BY MAP ON
FILE IN BOOK 20 PAGE 25 OF MAPS, RECORDS OF RIVERSIDE
COUNTY, CALIFORNIA. (KNOWN AS 53-541 AVENIDA MARTINEZ,
LA QUINTA.)
9. LOT 2 IN BLOCK 223 OF SANTA CARMELITA AT VALE LA QUINTA,
UNIT NO. 21, AS SHOWN BY MAP ON FILE IN BOOK 20 PAGE 22 OF
MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS
53-275 AVENIDA RAMIREZ, LA QUINTA,)
02/26/93 ATTACHMENT NO. 2
2782q/2338/037 (Page 1 of 3)
10. LOT 10 IN BLOCK 163 OF UNIT NO. 17, SANTA CARMELITA AT VALE
LA QUINTA, AS SHOWN BY MAP ON FILE IN BOOK 19 PAGES 19 AND
20 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN
AS 52-705 AVENIDA OBREGON, LA QUINTA.)
11. LOT 9 IN BLOCK 66 OF UNIT NO. 6, SANTA CARMELITA AT VALE LA
QUINTA, AS SHOWN BY MAP ON FILE IN BOOK 18 PAGE 67 OF MAPS,
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS 51-395
AVENIDA VALLEJO, LA QUINTA.)
12. LOT 3, BLOCK 150, UNIT 16, SANTA CARMELITA AT VALE LA
QUINTA, AS SHOWN BY MAP ON FILE IN BOOK 18 PAGE 99 OF MAPS,
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS 52-565
EISENHOWER, LA QUINTA.)
13. LOT 23 BLOCK 237 OF SANTA CARMELITA AT VALE LA QUINTA, UNIT
NO. 22, AS SHOWN BY MAP ON FILE IN BOOK 20 PAGE 24 OF MAPS,
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS 53-780
AVENIDA VALLEJO, LA QUINTA.)
14, LOT 10, BLOCK 95 OF SANTA CARMELITA AT VALE LA QUINTA, UNIT
11, AS SHOWN BY MAP ON FILE IN BOOK 18 PAGE 75 OF MAPS,
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS 52-195
AVENIDA MENDOZA, LA QUINTA.)
15, LOT 9, BLOCK 221 OF SANTA CARMELITA AT VALE LA QUINTA, UNIT
NO. 21, AS SHOWN BY MAP ON FILE IN BOOK 20 PAGE 22 OF MAPS,
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS 53-195
AVENIDA CARRANZA, LA QUINTA.)
16, LOT 11 IN BLOCK 77 OF SANTA CARMELITA AT VALE LA QUINTA,
UNIT NO. 10, AS SHOWN BY MAP ON FILE IN BOOK 13 PAGE 70 OF
MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS
52-225 AVENIDA VALLEJO, LA QUINTA.)
17. LOT 4 IN BLOCK 155 OF SANTA CARMELITA AT VALE LA QUINTA,
UNIT NO. 16, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 18 PAGE 99 OF
MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS
52-605 AVENIDA CARRANZA, LA QUINTA.)
18. LOT 3 IN BLOCK 29 OF SANTA CARMELITA AT VALE LA QUINTA,
UNIT NO. 2, AS SHOWN BY MAP ON FILE IN BOOK 18 PAGES 55 AND
56 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN
AS 51-805 AVENIDA CORTEZ, LA QUINTA.)
19. LOT 2 IN BLOCK 201 OF UNIT NO. 19, SANTA CARMELITA AT VALE
LA QUINTA, AS SHOWN BY MAP ON FILE IN BOOK 19 PAGES 33 AND
34 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA;
EXCEPTING THEREFROM 1/16TH OF ALL COAL, OIL, GAS AND OTHER
MINERAL DEPOSITS CONTAINED IN SAID LAND AS RESERVED IN
PATENT FROM THE STATE OF CALIFORNIA, DATED JULY 19, 1934
AND RECORDED JULY 26, 1934 IN BOOK 182 PAGE 463 OF OFFICIAL
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS 53-775
AVENIDA ALVARADO, LA QUINTA.)
02/26/93 ATTACHMENT NO. 2
2782q/2338/037 (Page 2 of 3)
20. LOT 6, BLOCK 165, UNIT NO. 17, SANTA CARMELITA AT VALE LA
QUINTA, AS SHOWN BY MAP ON FILE IN BOOK 19 PAGE 19 OF MAPS,
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. (KNOWN AS 52-625
AVENIDA RUBIO, LA QUINTA.)
02/26/93 ATTACHMENT NO. 2
2782q/2338/037 (Page 3 of 3)