2010 Habitat for Humanity of the Coachella Valley, Inc. - Affordable HousingAFFORDABLE HOUSING AGREEMENT
by and between
LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate and politic,
and
HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC.
a California nonprofit public benefit corporation
882/015610-0046
1106784.02 a07/29/ 10
TABLE OF CONTENTS
Pave
SUBJECT OF AGREEMENT...
A. Purpose of Agreement....
B. The Redevelopment Plan
C. The Site ..........................
D.
Parties to the Agreement.......................................................................................2
E.
Representations by the Developer........................................................................3
H. AGENCY
FINANCIAL ASSISTANCE..........................................................................4
A.
Amount and Purpose of Assistance......................................................................4
B.
Conditions Precedent to the Agency Funding of the Agency Financial
Assistance.............................................................................................................4
C.
Disbursement Procedure.......................................................................................5
D.
Buyer Affordable Housing Documents................................................................5
E.
Source of Funds....................................................................................................6
111. DEVELOPMENT
OF THE PROJECT............................................................................6
A.
Scope of Development..........................................................................................6
B.
Site Plan................................................................................................................6
C.
Review and Approval of Plans, Drawings, and Related Documents....................7
D.
Cost of Development............................................................................................7
E.
Construction Schedule..........................................................................................8
F.
Indemnity..............................................................................................................
8
G.
Insurance Requirements........................................................................................8
H.
City and Other Governmental Agency Permits ..................................................
10
1.
Rights of Access.................................................................................................10
J.
Local, State and Federal Laws............................................................................10
K.
Anti-Discrimination............................................................................................12
L.
Taxes and Assessments.......................................................................................12
M.
Right of the Agency to Satisfy Other Liens on the Site(s).................................12
N.
Release of Construction Covenants....................................................................
12
IV. USE
OF THE SITE.........................................................................................................13
A.
Affordable Housing............................................................................................13
B.
Uses In Accordance with Redevelopment Plan..................................................17
C.
Nondiscrimination...............................................................................................17
D.
Effect of Violation of the Terms and Provisions of this Agreement
After Completion of Construction......................................................................18
E.
Maintenance of the Site......................................................................................
19
V. DEFAULTS
AND REMEDIES.....................................................................................19
A.
Defaults -- General..............................................................................................
19
B.
Legal Actions......................................................................................................
19
C.
Rights and Remedies Are Cumulative................................................................20
882/0156[0-0046
1106784.02 a07/29/10 -1-
Page
D.
Inaction Not a Waiver of Default........................................................................20
E.
Termination by the Agency................................................................................20
F.
Attorneys' Fees...................................................................................................21
VI. GENERAL PROVISIONS.............................................................................................21
A.
Notices, Demands and Communications Between Parties.................................21
B.
Conflicts of Interest.............................................................................................21
C.
Enforced Delay; Extension of Times of Performance........................................22
D.
Non -Liability of Officials and Employees of the Agency and the
Developer............................................................................................................22
E.
Agency Approvals and Actions..........................................................................22
F.
Counterparts........................................................................................................23
G.
Entire Agreement................................................................................................23
H.
Waivers...............................................................................................................23
I.
Severability.........................................................................................................23
J.
Successors and Assigns.......................................................................................23
K.
Reasonableness...................................................................................................23
L.
Calculation of Time Periods...............................................................................23
982/015610-0046
1106784.02 a07/29/ 10
Attachment No. 1
Attachment No. 2
Attachment No. 3
Attachment No. 4
Attachment No. 5
Attachment No. 6
Attachment No. 7
Attachment No. 8
882/015610-0046
1106784.02 a07/29/10
ATTACHMENTS
Scope of Development
Schedule of Performance
Promissory Note
Deed of Trust
Affordable Housing Agreement and Declaration of Covenants, Conditions
and Restrictions
Release of Construction Covenants
Notice of Affordability Restrictions on Transfer of Property
Sources and Uses of Funds
AFFORDABLE HOUSING AGREEMENT
This AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into as of
��- �-- j-01,0 , 2010 (the "Effective Date'), by and between LAQUINTA
REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency"), and
HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC., a California nonprofit
public benefit corporation (the "Developer"). The Agency and the Developer (collectively
referred to as the "Parties") hereby agree as follows:
I. SUBJECT OF AGREEMENT
A. Purpose of Agreement
The purpose of this Agreement is to effectuate the Redevelopment Plan for the La Quinta
Redevelopment Project No. I (the "Redevelopment Plan" or "Project Area," as applicable) by
providing for the improvement of that certain real property situated within the Project Area (the
"Site"). by assisting in the financing of the construction on each of the two parcels comprising
the Site of a single-family home (collectively, the "Homes"), and the long-term maintenance of
the Homes at affordable housing cost for very -low and low-income households (the "Project'),
all as more fully described in this Agreement. The Agency financial assistance in this
Agreement shall be utilized to effectuate a portion of the Agency's overall affordable housing
program pursuant to the requirements of California Health and Safety Code Section 33334.2 to
expend twenty percent (20%) of its increment funds to improve, increase and preserve the
community's supply of low- and moderate income housing. The development of the Site and the
occupancy of the Homes by households of limited incomes, all as provided in this Agreement,
are in the vital and best interests of the City of La Quinta (the "City") and the health, safety and
welfare of its residents, and in accord with the public purposes and provisions of applicable State
and local laws and requirements under which the Project Area has been established.
B. The Redevelopment Plan
The Redevelopment Plan was approved and adopted by Ordinance No. 43 of the City
Council of the City of La Quinta on November 29, 1983 and amended by Ordinance No. 258 on
December 20, 1994 and Ordinance No. 264 on March 7, 1995; said ordinances and the
Redevelopment Plan, as amended, are incorporated herein by reference.
C. The Site
The "Site" shall consist of two parcels of real property within the Project Area in the City
of La Quinta, County of Riverside (each, a "Parcel"). The Site is owned in fee by the Developer.
A maximum of one (1) detached, single-family home will be developed on each Parcel in
accordance with the "Scope of Development' and by the times set forth in the "Schedule of
Performance," which are attached hereto as Attachment No. I and Attachment No. 2,
respectively, and incorporated herein by this reference.
The Site is legally described in Exhibit "A" to the Deed of Trust attached hereto and
incorporated herein as Attachment No. 4 (the "Deed of Trust").
882/015610-0046
1106784.02 a07/29/10
Any material change, as reasonably determined by the Agency, in the Scope of
Development (Attachment No. 1) or in the approved site plan which affects the size, quality, or
type of development proposed for the Site shall require the prior written approval of the Agency,
which approval may be contingent upon the review and renegotiation of all of the economic and
financial terms of this Agreement and such other matters as the Agency shall deem appropriate.
D. Parties to the Agreement
1. 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, Division 24 of the California Health and Safety
Code. The principal office of the Agency is located at 78-495 Calle Tampico, La Quinta,
California 92253, or such other address as Agency shall hereafter designate in writing to
Developer.
"Agency", as used in this Agreement, includes the La Quinta Redevelopment
Agency and any and all assignees of or successors to its rights, powers and responsibilities.
2. The Developer
The Developer, Habitat for Humanity of the Coachella Valley, Inc., is a California
nonprofit public benefit corporation. The principal office and mailing addresses of the
Developer for purposes of this Agreement is P.O. Box 11738, Palm Desert, California 92255.
By executing this Agreement, each person signing on behalf of the Developer
warrants and represents to the Agency that the Developer has the full power and authority to
enter into this Agreement, that all authorizations required to make this Agreement binding upon
the Developer have been obtained, and that the person or persons executing this Agreement on
behalf of the Developer are fully authorized to do so.
Whenever the term "Developer" is used in this Agreement, such term shall
include any and all nominees, assignees, or successors in interests as herein provided.
3. Prohibition Against Change in Ownership Management and Control of
Developer and Prohibition Against Transfer of the Site or Agreement
The qualifications and identity of the Developer 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 Developer. Consequently, prior to the Agency's issuance of a Release of
Construction Covenants for the Project, no person, whether a voluntary or involuntary successor
of Developer, shall acquire any rights or powers under this Agreement nor shall the Developer
assign all or any part of this Agreement, the Site, or the Project without the prior written
approval of the Agency. A voluntary or involuntary sale or transfer of any interest in the
Developer, the Site, or the Project prior to the Agency's issuance of a Release of Construction
Covenants for the Project shall be deemed to constitute an assignment or transfer for the
purposes of this Section I.D.3, and the written approval of the Agency shall be required prior to
182/015610-0046 _
1106784 02 a07/29/10 -2
effecting such an assignment or transfer. Any purported transfer, voluntarily or by operation of
law, except with the prior written consent of the Agency, shall be absolutely null and void and
shall confer no rights whatsoever upon any purported assignee or transferee. Notwithstanding
any other provision of this Agreement to the contrary, Agency approval of an assignment of this
Agreement or transfer of the Site or Project or any interest therein shall not be required in
connection with the conveyance or dedication of any portion of the Site to the City of La Quinta
or other appropriate governmental agency, including public utilities, where the granting of such
easements permits or facilitates the development of the Site, or in connection with the sale of a
Home to an "Eligible Household" (as that term is defined in Section IV.A.2 below) consistent
with the terns of this Agreement.
E. Representations by the Developer
The Developer represents and warrants to the Agency as follows:
I. The Developer is duly established and in good standing under the laws of
the State of California and has duly authorized, executed and delivered this Agreement and any
and all other agreements and documents required to be executed and delivered by the Developer
in order to carry out, give effect to, and consummate the transactions contemplated by this
Agreement. This Agreement is enforceable against the Developer in accordance with its terms.
2. The Developer does not have any contingent obligations or contractual
agreements which could adversely affect the ability of the Developer to carry out its obligations
hereunder.
3. There are no pending or, so far as is known to the Developer, threatened,
legal proceedings to which the Developer is or may be made a party or to which it or any of its
property is or may become subject, which have not been fully disclosed in the material submitted
to the Agency, which could adversely affect the ability of the Developer to carry out its
obligations hereunder.
4. There is no action or proceeding pending or, to the Developer's best
knowledge, threatened, looking toward the dissolution or liquidation of the Developer and there
is no action or proceeding pending or, to the Developer's best knowledge, threatened by or
against the Developer which could affect the validity and enforceability of the terms of this
Agreement, or adversely affect the ability of the Developer to carry out its obligations hereunder.
5. The Developer has, and will as required by its obligations hereunder,
dedicate, allocate and otherwise make available, sufficient financial and other resources to
perform its obligations under this Agreement.
Each of the foregoing items 1 to 5, inclusive, shall be deemed to be an ongoing
representation and warranty. The Developer shall advise the Agency in writing if there is any
change pertaining to any matters set forth or referenced in the foregoing items I to 5, inclusive.
882/015610-0046
1106784 02.07/29/10 -3-
ll. AGENCY FINANCIAL ASSISTANCE
A. Amount and Purpose of Assistance
Agency shall provide financing in an amount not to exceed One Hundred Seventy -Four
Thousand Nine Hundred Forty Dollars ($174,940) for the construction of the Project by
Developer (the "Agency Financial Assistance") pursuant to the terms of this Agreement. The
Agency Financial Assistance shall be evidenced by a promissory note substantially in the form
attached hereto and incorporated herein as Attachment No. 3 (the "Promissory Note").
Repayment of the Promissory Note shall be secured by a deed of trust substantially in the form
of the Deed of Trust (Attachment No. 4 ).
Upon the Developer's sale of a Home to an Eligible Household, and the Eligible Household's
execution of a complete set of "Buyer Affordable Housing Documents" (as that term is defined
in Section 11.13 below), fifty percent (50%) of the Agency Financial Assistance that has been
disbursed to Developer shall be credited to Developer and deemed transferred to the Eligible
Household purchasing said Home.
B. Conditions Precedent to the Agency Funding of the Agency Financial Assistance
Prior to and as Agency's conditions to funding any portion of the Agency Financial
Assistance, the Developer shall complete each of the following by the respective times
established therefore in the Schedule of Performance:
I. The Developer shall have provided to the Executive Director insurance
certificates conforming to Section IILG of this Agreement;
2. The Developer shall have executed and delivered to the Agency the
Promissory Note (Attachment No. 3);
3. The Developer shall have executed and delivered to the Agency for
recordation the Deed of Trust (Attachment No. 4), the Affordable Housing Agreement and
Declaration of Covenants, Conditions and Restrictions concerning the use of and maintenance of
the Site (Attachment No. 5), and the Notice of Affordability Restrictions on Transfer of Property
(,Attachment No. 7);
4. The Developer shall have provided Agency with evidence that Developer
has obtained commitments for all of the financing necessary to develop the Project on the Site;
5. The Developer shall have obtained all entitlements and approvals required
to develop the Project on the Site, and shall be ready to pull grading and building permits upon
the payment of the fees therefor; and
6. The Developer shall not be in default of this Agreement.
The foregoing items numbered 1 to 6, inclusive, together constitute the
"Conditions Precedent to the Agency Funding of the Agency Financial Assistance."
982/0156[0-0046 1106784.02 a07/29/10 -4-
C. Disbursement Procedure
The Agency Financial Assistance shall be provided to Developer to reimburse Developer
for costs Developer incurs to construct the Project, provided such costs are described in the
Sources and Uses of Funds attached hereto and incorporated herein as Attachment No. 8. To
request a disbursement from the Agency, Developer shall submit to Agency itemized statements,
with the supporting information outlined below and any other such supporting information as
Agency may reasonably require, documenting the expenses incurred by Developer.
In connection with any request for a disbursement of Agency Financial Assistance,
Developer shall present to Agency's Executive Director or designee the following information:
An invoice, contract, or similar documentation verifying the costs incurred
by Developer and that the costs were incurred in accordance with the
terms of this Agreement and the Sources and Uses of Funds;
2. Appropriate conditional or unconditional lien releases and waivers,
including for mechanic's liens, materialman's liens, stop notice claims,
and equitable lien claims, with said lien releases and waivers to be in a
form reasonably required by Agency's Executive Director and in
conformance with the requirements of California Civil Code Section 3262;
and
3. Any other documentation or evidence that may be reasonably required by
Agency.
In the event Agency's Executive Director or designee determines that insufficient
supporting documentation has been submitted with the reimbursement request or that the request
will not be approved, Agency shall promptly notify Developer and the parties shall promptly
meet and confer in good faith in an effort to resolve the dispute. Payment of a disbursement
shall be made by Agency to Developer within twenty-one (21) days after Agency has approved a
payment request. Notwithstanding the foregoing, Developer shall not request more than one (1)
disbursement per calendar month.
Notwithstanding anything herein to the contrary, Developer shall diligently pursue
potential sources of funding for the Project that are in addition to those set forth in the "Sources"
section of the Sources and Uses of Funds (Attachment No. 8). In the event Developer obtains
funds or obtains a commitment for funds that are in addition to those set forth in the "Sources"
section of the Sources and Uses of Funds (Attachment No. 8), the amount of the Agency
Financial Assistance shall be reduced, on a dollar -by -dollar basis, by the amount of such
additional funds.
D. Buyer Affordable Housing Documents
In connection with the purchase of a Home by an Eligible Household, the Eligible
Household will be required to execute an affordable housing agreement ("Buyer AHA"),
a promissory note ("Buyer Promissory Note"), a deed of trust ("Buyer Deed of Trust"), and a
882/015610-0046
1106784.02 a0729/10 -5-
disclosure statement to assure the affordability of the Home to Eligible Households (collectively,
the "Buyer Affordable Housing Documents").
The Buyer Affordable Housing Documents shall be in a form approved by Agency
Counsel at the time of the sale of the Home to the Eligible Household. Agency shall have the
authority to revise the form at a staff level to be current with Fannie Mae, HUD or other
government or lender requirements. Basic terms of the Buyer Promissory Note shall include: (i)
zero percent interest; (ii) 45-year term; (iii) monthly payments determined to be affordable to
such Eligible Household pursuant to the provisions of Health and Safety Code Section 50052.5;
(iv) acceleration and repayment in the event of a sale to a nonqualified buyer or at a price that is
not deemed to be affordable; (v) assumability by an Eligible Household; and (vi) full credit of
the outstanding balance at the end of term if all conditions, covenants and restrictions have been
followed. The Agency will assign its rights to receive monthly payment under the Buyer
Promissory Note to Developer.
E. Source of Funds
The Agency Financial Assistance will be funded from the Agency's Low and Moderate
Income Housing Fund. Accordingly, Developer acknowledges and agrees that the use of the Site
shall be subject to all of the income and affordability restrictions set forth in this Agreement, and
the Declaration of Covenants, Conditions and Restrictions (Attachment No. 5).
Ill. DEVELOPMENT OF THE PROJECT
A. Scope of Development
The Project shall consist of Developer's development of each Parcel on the Site with a
Home, each of which shall be a detached, single-family housing unit as provided in the Scope of
Development (Attachment No. 1). The Project shall include construction of all on- and off -site
public improvements required by the City in connection with the development of the Project.
The Developer shall commence and complete construction of the Project on the Site by
the respective times established therefore in the Schedule of Performance (Attachment No. 2).
The Scope of Development (Attachment No. 1) shall be deemed to include any plans and
specifications submitted to the City and/or Agency for approval, and shall incorporate or show
compliance with all mitigation measures.
B. Site Plan
By the time set forth therefor in the Schedule of Performance (Attachment No. 2), the
Developer shall prepare and submit to the City for its approval a Site Plan and related documents
which conform to requirements of the City and which contain the overall plan for development
of the Project in sufficient detail to enable the City to evaluate the proposal for conformity to the
requirements of the La Quinta Municipal Code and this Agreement.
182/015610-0046
1106784.02 a07/29/10 -6-
The landscaping and finish grading plans shall be prepared by a professional landscape
architect or registered civil engineer who may be the same firm as the Developer's architect or
civil engineer.
During the preparation of all drawings and plans, staff of the City and the Agency and the
Developer shall hold regular progress meetings to coordinate the preparation of, submission to,
and review of drawings, plans and related documents by the City. The staff of City and the
Agency and the Developer shall communicate and consult informally as frequently as is
necessary to insure that the formal submittal of any documents to the Agency can receive prompt
and speedy consideration.
C. Review and Approval of Plans, Drawings, and Related Documents
The Agency and the City shall have the right to conduct all planning for the Project,
including plan check, and review of all plans and submissions, including any changes therein.
During each stage of the processing of plans for the Project, the Agency and the City
shall have the right to require additional information and shall advise the Developer if any
submittal of plans or drawings is not complete or not in accordance with City/Agency procedures
and/or requirements. If the Agency or the City determines that such a submittal is not complete
or not in accordance with procedures, such tender shall not be deemed to constitute a submittal
for purposes of satisfying the Schedule of Performance (Attachment No. 2).
Developer shall have the right, during the course of construction of the Project, to make
"minor field changes," without seeking theapproval of the Agency, if such changes do not affect
the type of use to be conducted within all or any portion of a structure. "Minor field changes"
shall be defined as those changes from the approved construction drawings, plans and
specifications that have no substantial effect on the Project and are made in order to expedite the
work of construction in response to field conditions. Notwithstanding the foregoing, however,
(i) nothing contained in this Section III.0 shall be deemed to constitute a waiver of or change in
any law governing any such "minor field changes" or in any approvals by any governmental
entity, including, without limitation, the City and/or Agency, otherwise required for any such
"minor field changes," and (ii) any changes that the City Building Department would, in their
reasonable discretion, consider material and/or wish to review, shall not constitute "minor field
changes." If the Developer desires to make any material changes in the construction plans after
their approval by the Agency and/or the City, the Developer shall submit the proposed change to
the Agency and the City for their approval. If the construction plans, as modified by the
proposed change, conform to the requirements of this Section II1.0 and the Scope of
Development (Attachment No. 1), the Agency and the City will approve the proposed change
and notify the Developer in writing within thirty (30) days after submission to the Agency and
the City.
D. Cost of Development
With the exception of the Agency Financial Assistance Agency has agreed to provide
Developer hereunder, all costs for planning, designing, and constructing the Project shall be
borne exclusively by the Developer. The Developer shall also bear all costs related to
892/015610-0046
1106/84.02 a07/29/10 -7-
discharging the duties of the Developer set forth in this Agreement. The Developer assumes the
responsibility to construct, and shall let contracts for or cause to be constructed, all off -site
public improvements developed pursuant to this Agreement, substantially in conformity with
procedures used by the Agency when competitive bidding is deemed to be required. The
Developer shall be responsible for all fees associated with development of the Project, including,
but not limited to, school facilities fees, park fees, and impact fees.
E. Construction Schedule
The Developer shall commence and complete the Project by the respective times
established therefore in the Schedule of Performance (Attachment No. 2).
F. Indemnity
Commencing with the Effective Date hereof and ending on the date Developer sells the
last Home, Developer shall defend, assume all responsibility for and hold the Agency and the
City, and their respective officers, officials, members, agents, representatives, and employees,
harmless from all claims or suits for, and damages to, property and injuries to persons, including
accidental death (including expert witness fees, attorneys fees and costs), which may be caused
by the activities or performance of Developer or any of Developer's employees, agents,
representatives, contractors, or subcontractors under this Agreement, whether such damage shall
accrue or be discovered before or after termination of this Agreement.
The Developer additionally agrees to and shall defend, assume all responsibility
for and hold the Agency and the City and their respective officers, officials, members,
employees, representatives, and agents harmless from any and all liability or responsibility for
damage, costs losses, or suit arising in any manner from the approval of this Agreement or the
development and activities conducted pursuant to this Agreement. This obligation and
indemnification shall constitute a covenant running with the land throughout the life of the
Redevelopment Plan.
G. Insurance Requirements
1. Commencing with the Effective Date, and ending on the date Developer
sells the last Home, Developer shall procure and maintain, at its sole cost and expense, in a form
and content satisfactory to the Executive Director, the following policies of insurance:
(a) A policy of commercial general liability insurance written on a per
occurrence basis in an amount not less than: One Million Dollars ($1,000,000) per occurrence
for all covered losses and Two Million Dollars ($2,000,000.00) general aggregate, as shall
protect the Developer, the City, and the Agency from claims for such damage.
(b) A policy of worker's compensation insurance in such amount as
will fully comply with the laws of the State of California and which shall indemnify, insure, and
provide legal defense for both Developer and Agency against any loss, claim or damage arising
from any injuries or occupational diseases occurring to any worker employed by or any persons
retained by Developer in the course of carrying out the work or services contemplated in this
Agreement.
8821015610-0046
1106784.02 a0729/10 �g-
(c) A policy of comprehensive automobile liability insurance written
on a per occurrence basis in an amount not less than, for bodily injury, One Million Dollars
($1,000,000.00) per person and One Million Dollars ($1,000,000.00) per occurrence, and
property damage liability limits of One Million Dollars ($1,000,000.00) per occurrence and Two
Million Dollars ($2,000,000.00) general aggregate. Said policy shall include coverage for
Developer's owned, non -owned, leased, and hired cars.
2. Commencing on the date Developer commences construction of the
Project and continuing until Developer completes construction of the Project, as evidenced by
Agency's issuance of a Release of Construction Covenants, the Developer shall procure and
maintain, at its sole cost and expense, in a form and content satisfactory to the Agency's
Executive Director, Builder's Risk (course of construction) insurance coverage in an amount
equal to the full cost of the hard construction costs of the Project. Such insurance shall cover, at
a minimum: all work, materials, and equipment to be incorporated into the Project; the Project
during construction; the completed Project until such time as the City issues a final certificate of
occupancy for the Project, and storage and transportation risks. Such insurance shall
protect/insure the interests of Developer/owner and all of Developer's contractor(s), and
subcontractors, as each of their interests may appear. If such insurance includes an exclusion for
"design error," such exclusion shall only be for the object or portion which failed. Agency shall
be a loss payee under such policy or policies and such insurance shall contain a replacement cost
endorsement.
The following additional requirements shall apply to all of the above
policies of insurance:
(a) All of the above policies of insurance shall be primary insurance
and noncontributing with any policy or coverage maintained or obtained by the Agency, and an
appropriate endorsement shall so state.
(b) Developer shall endorse the third party general liability coverage
required herein to include as additional insureds the Agency, City, and their respective officers,
officials, members, employees, agents, and representatives, using standard ISO endorsement No.
CG 2010 with an edition date of 1985, or equivalent and to provide evidence of such
endorsement to Agency. Developer shall require all contractors, subcontractors, and anyone else
involved in any way with the Project to provide a similar endorsement.
(c) The insurer shall waive all rights of subrogation and contribution it
may have against Agency, City, and their respective officers, officials, members, employees,
agents, and representatives, and their respective insurers.
(d) All of said policies of insurance shall provide that said insurance
may not be amended or cancelled without providing thirty (30) days' prior written notice to
Agency and City. In the event any of said policies of insurance are cancelled, Developer shall,
prior to the cancellation date, submit new evidence of insurance in conformance with this
Section to the Agency's Executive Director. In the alternative, Developer may show proof of a
certificate of consent to self -insure issued by the Director of the Department of Industrial
Relations according to California Labor Code Section 3800.
88M15610-0046
1106784.02 a07/29/ 10 -9-
(e) Within thirty (30) days after the Effective Date and prior to
Agency's provision of any of the Agency Financial Assistance to Developer, Developer shall
provide the Executive Director with Certificates of Insurance or appropriate insurance binders
evidencing the above insurance coverages, and said Certificates of Insurance or binders shall be
subject to the reasonable approval of the Agency's Executive Director.
(0 The policies of insurance required by this Agreement shall be
satisfactory only if issued by companies legally qualified to do business in California, rated "A"
or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal
Register, and only if they are of a financial category Class VII or better, unless such
requirements are waived by the Agency's Executive Director due to unique circumstances.
(g) The policies of insurance required by this Agreement shall not
require Developer to meet a deductible of more than Ten Thousand Dollars ($10,000) unless
approved in writing by Agency's Executive Director in his or her sole and absolute discretion.
(h) Developer agrees that the provisions of this Section III.G shall not
be construed as limiting in any way the extent to which Developer may be held responsible for
the payment of damages to any persons or property resulting from Developer's activities or the
activities of any person or persons for which Developer is otherwise responsible.
H. City and Other Governmental Agency Permits
Before commencement of construction or development of any buildings, structures or
other works of improvement upon the Site or in connection with any off -site improvement, the
Developer shall, at its 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 or with jurisdiction over
such construction, development or work. Developer shall pay all necessary fees and 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 reasonable efforts to
expedite issuance of building permits and certificates of occupancy for construction that meets
the requirements of the La Quinta Municipal Code.
I. Rights of Access
For purposes of assuring compliance with this Agreement, representatives of the Agency
and the City shall have the right of access to the Site without charges or fees, at normal business
hours during the construction of the Project, including, but not limited to, the inspection of the
work being performed in constructing the Project, so long as they comply with all safety rules.
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 Developer harmless from
any bodily injury or related damages arising out of the activities of the Agency and the City as
referred to in this Section IILI.
J. Local. State and Federal Laws
Developer shall carry out the construction of the Project in conformity with all applicable
laws, regulations, and rules of the governmental agencies having jurisdiction, including without
882/015610-0046
1106784.02 a07/29/ 10 -10-
limitation the City zoning and development standards, including, without limitation, building,
plumbing, mechanical and electrical codes, and all other provisions of the La Quinta Municipal
Code, and all applicable disabled and handicapped access requirements, including without
limitation the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government
Code Section 4450, et seq., Government Code Section 11135, et seq., the Unruh Civil Rights
Act, Civil Code Section 51, et seq., and the California Building Standards Code, Health and
Safety Code Section 18900, et seq., and all federal, state, and local labor laws and regulations,
including, without limitation, if applicable, the requirements to pay prevailing wages under
federal law (the Davis Bacon Act, 40 U.S.C. Section 3141, et seq., and the regulations
promulgated thereunder set forth at 29 CFR Part I (collectively, "Davis Bacon")) and California
law (Labor Code Section 1720, et seq.). The parties acknowledge that a financing structure
utilizing certain federal and/or state funding sources and financing scenarios may trigger
compliance with applicable state and federal prevailing wage laws and regulations.
Developer shall be solely responsible, expressly or impliedly, and legally and financially,
for determining and effectuating compliance with all applicable federal, state and local public
works requirements, prevailing wage laws, and labor laws and standards, and Agency makes no
representation, either legally and/or financially, as to the applicability or non -applicability of any
federal, state and local laws to the Project, either onsite or offsite. Developer expressly,
knowingly and voluntarily acknowledges and agrees that neither Agency nor City have
previously represented to Developer or to any representative, agent or affiliate of Developer, or
its contractor or any subcontractor(s) for the construction or development of the Project, in
writing or otherwise, in a call for bids or otherwise, that the work and construction undertaken
pursuant to this Agreement is (or is not) a "public work," as defined in Section 1720 of the Labor
Code or under Davis Bacon.
Developer knowingly and voluntarily agrees that Developer shall have the obligation to
provide any and all disclosures or identifications as required by Labor Code Section 1781 and/or
by Davis Bacon, as the same may be amended from time to time, or any other similar law or
regulation. In addition to any other Developer indemnifications of Agency set forth in this
Agreement, Developer shall indemnify, protect, pay for, defend (with legal counsel reasonably
acceptable to Agency and City) and hold harmless the Agency and the City and their respective
officers, employees, and agents, from and against any and all loss, liability, damage, claim, cost,
expense and/or "increased costs' (including reasonable attorneys fees, court and litigation costs,
and fees of expert witnesses) which, in connection with the development, construction (as
defined by applicable law) and/or operation of the Project, including, without limitation, any and
all public works (as defined by applicable law), results or arises in any way from any of the
following: (i) the noncompliance by Developer with any applicable local, state and/or federal
law or regulation, including, without limitation, any applicable federal and/or state labor laws or
regulations (including, without limitation, if applicable, the requirement to pay state and/or
federal prevailing wages); (ii) the implementation of Section 1781 of the Labor Code and/or of
Davis Bacon, as the same may be amended from time to time, or any other similar law or
regulation; and/or (iii) failure by Developer to provide any required disclosure or identification
as required by Labor Code Section 1781 and/or by Davis Bacon, as the same may be amended
from time to time, or any other similar law or regulation. It is agreed by the parties that, in
connection with the development and construction (as defined by applicable law or regulation) of
the Project, including, without limitation, any and all public works (as defined by applicable law
882/015610-0046
1106784 02 a07/29/ 10
or regulation), Developer shall bear all risks of payment or non-payment of prevailing wages
under applicable federal, state and local law or regulation and/or the implementation of Labor
Code Section 1781 and/or by Davis Bacon, as the same may be amended from time to time,
and/or any other similar law or regulation. "Increased costs," as used in this Section III.J, shall
have the meaning ascribed to it in Labor Code Section 1781, as the same may be amended from
time to time. The foregoing indemnity shall survive termination of this Agreement and shall
continue after completion of the construction and development of the Project by Developer.
K. Anti -Discrimination
Pursuant to Section 33050 of the California Community Redevelopment Law, the
Developer for itself and its successors and assigns, agrees, that in the construction of the Project
on the Site or other performance under this Agreement, the Developer shall not discriminate
against any employee or applicant for employment on any basis listed in subdivision (a) or (d) of
Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 and Section 12955.2 of
the Government Code.
L. Taxes and Assessments
Developer shall pay prior to delinquency all real estate taxes and assessments on the Site
so long as the Developer retains any interest thereon. Prior to the Developer's conveyance of a
Home to an Eligible Household, the Developer shall remove or have removed any levy or
attachment made on the underlying Parcel or any part thereof during its ownership, or assure the
satisfaction thereof within a reasonable time but in any event prior to said sale or transfer.
Notwithstanding the above, the Developer shall have the right to contest the validity or amounts
of any tax, assessment, or encumbrance available to the Developer in respect thereto.
M. Right of the Agency to Satisfy Other Liens on the Site(s)
At any time prior to the completion of construction, and after the Developer has had
written notice and has failed after a reasonable time, but in any event not less than forty-five (45)
days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on the
Site which are not otherwise permitted under this Agreement, the Agency shall have the right but
no obligation to satisfy any such liens or encumbrances. Notwithstanding the above, the
Developer shall have the right to contest the validity or amounts of any tax, assessment, or
encumbrance available to the Developer in respect thereto.
N. Release of Construction Covenants
Promptly after Developer's completion of construction of the Project in conformity with
this Agreement (as determined by the Executive Director of the Agency), upon the written
request of the Developer, the Agency shall furnish the Developer with a Release of Construction
Covenants (substantially in the form attached hereto as Attachment No. 6) which evidences and
determines the satisfactory completion of construction of the Project, pursuant to the provisions
and covenants specified in this Agreement, the Redevelopment Plan and the California
Community Redevelopment Law.
882/015610-0046
1106784.02.07/29/10 -12-
The issuance and recordation of a Release of Construction Covenants (Attachment No. 6)
shall not supersede, cancel, amend or limit the continued effectiveness of any obligations relating
to the maintenance, or uses, or payment of monies, or any other obligations, except for the
obligation to complete construction of the Project.
If the Agency refuses or fails to furnish a Release of Construction Covenants after written
request from the Developer, the Agency shall, within forty-five (45) days of the written request,
provide the Developer with a written statement of the reasons the Agency refused or failed to
furnish such Release of Construction Covenants.
Upon issuance of a Release of Construction Covenants (Attachment No. 6), construction
of the Project shall be deemed to have been completed in conformity with this Agreement. The
Release of Construction Covenants (Attachment No. 6) is not a notice of completion as referred
to in Section 3093 of the California Civil Code. The issuance of a Release of Construction
Covenants shall not affect the continued effectiveness of the Deed of Trust (Attachment No. 4)
and/or the Affordable Housing Agreement and Declaration of Covenants, Conditions and
Restrictions (Attachment No. 5) recorded pursuant to this Agreement.
►9t>t;fy we] 01:IINI11t
A. Affordable Housing
1. General
The Developer covenants that the Homes shall be subject to affordability
requirements that provide for the Homes to be owned and occupied by Eligible Households for a
period of forty-five (45) years, commencing with the initial sale of each Home to an Eligible
Household.
2. Definitions
(a) `Affordable Sales Price" shall be that sales price which would
result in an annual "Monthly Housing Cost" (as defined below) that does not exceed the
maximum percentage of income that can be devoted to housing costs by an Eligible Household
under California law. As of the date of this Agreement, the Affordable Sales Price is a purchase
price that would result in an annual Monthly Housing Cost that does not exceed the product of
thirty percent (30%) times fifty percent (50%) of the Riverside County area median income
adjusted for family size appropriate for the Home, all as more particularly set forth in Section
50052.5 of the California Health and Safety Code.
(b) "Affordability Period" shall be, for each Home, forty-five (45)
years from the date Developer transfers the Home to an Eligible Household.
(c) "Eligible Household" shall mean a person or family who meets the
income qualifications for either a "lower income household" or a "very low income household,"
adjusted for family size, as determined by the United States Department of Housing and Urban
Development from time to time, as set forth in Health and Safety Code Section 50079.5 or
50105, respectively.
882/015610-0046
1106784.02 a07/29/10 -13-
(d) "Proposed Transferee" shall mean a person or family determined
to be an Eligible Household to whom the Developer or any successor Owner desires and
proposes to Transfer a Home.
(e) "Monthly Housing Cost" of an Eligible Household purchasing a
Home shall include all of the following associated with the Home, estimated or known as of the
date of their proposed sale of the Home:
(i) Principal and interest on a mortgage loan including any
rehabilitation loans, and any loan insurance fees associated therewith.
property improvements.
(ii) Property taxes and assessments.
(iii) Fire and Casualty insurance covering replacement value of
(iv) Any homeowner association fees.
Monthly Housing Cost of a purchaser shall be an average of estimated costs for the next twelve
(12) months.
(f) "Transfer" shall mean any sale, assignment, conveyance, lease or
transfer, voluntary or involuntary, of any interest in a Home. Without limiting the generality of
the foregoing, Transfer shall include (i) a transfer by devise, inheritance or intestacy to a party
who does not meet the definition of Eligible Household; (ii) a life estate; (iii) creation of a joint
tenancy interest; (iv) a gift of all or any portion of the Home; or (v) any voluntary conveyance of
the Home. Transfer shall not include transfer to a spouse in a dissolution proceeding; however
any subsequent Transfer shall be subject to this restriction.
Initial Sale of Homes to Eligible Households
No later than ninety (90) days after completion of the Project, Developer shall sell
and transfer title to each Home to an Eligible Household at an Affordable Sales Price in
accordance with the procedures set forth in this Section IV.A.3; provided, however, that if
Developer has located an Eligible Household that wishes to purchase a Home from Developer,
but said Eligible Household has not yet satisfied all of Developer's program requirements,
Developer shall not be in default of this Section IV.A.3 if (i) Developer has entered into a lease
agreement with said Eligible Household (an `Interim Lease"); (ii) the term of the Interim Lease
is not longer than one (1) year; (iii) during the term of the Interim Lease Developer and the
Eligible Household are diligently proceeding with the satisfaction by the Eligible Household of
all of Developer's program requirements and the Eligible Household's purchase of the Home;
and (iv) prior to, or concurrent with the expiration of the term of the Interim Lease, Developer
and the Eligible Household complete the sale and transfer of title of the Home to the Eligible
Household. The procedures for the subsequent sale of Homes by the Eligible Households shall
be as set forth in the Affordable Housing Agreement and Declaration of Covenants, Conditions
and Restrictions (Attachment No. 5).
882/015610-0046
1106784 02 a07!29/ 10 -14-
Upon the sale of a Home to an Eligible Household and the Eligible
Household's execution of a complete set of Buyer Affordable Housing Documents, the
Agency and Developer shall cause the balance of the Promissory Note for the Agency Financial
Assistance to be reduced by fifty percent (50%). Thus, upon completion of the Project and sale
of the two (2) Homes to Eligible Households (and the Eligible Households' execution of a
complete set of Buyer Affordable Housing Documents), the balance of the Promissory Note for
the Agency Financial Assistance will be $0.00 (Zero and no/100 Dollars).
(a) Conditions to Transfer. Developer shall not transfer title to any
Home unless all of the following conditions are satisfied: (a) a certificate of occupancy has been
issued by the City building department for the Home; (b) Developer has obtained all approvals
required of the California Department of Real Estate; (c) Developer has determined and Agency
has confirmed the proposed buyer of the Home is an Eligible Household; (d) Developer has
determined and Agency has confirmed the purchase price for the Home is an Affordable Sales
Price; (e) Developer has determined that the Proposed Transferee intends to occupy the Home as
its principal residence; and (f) all other conditions and approvals required for the transfer shall
have been satisfied or obtained.
(b) Market Homes. Commencing as of the Effective Date, Developer
shall market the Homes to Eligible Households and shall establish a list of Eligible Households.
(c) Preference. To the extent permitted by law, Developer shall give a
preference in offering a Home to potential Eligible Households (who are eligible economically
and otherwise, including eligibility under Developer's selection criteria) who are eligible for
preference pursuant to Health & Safety Code Section 33411.3, or successor statute. Developer
shall use its best efforts to market the Homes to individuals currently residing or working within
the City of La Quinta. Subject to the immediately preceding sentence, should multiple buyers be
equally eligible for a Home, Developer shall offer the Home on a first -come, first served basis or
a lottery system established by Developer and approved by Agency.
(d) Determining Eligible Household Status. Prior to the sale of a
Home, Developer shall notify Agency in writing of the proposed transfer and the identity of the
Proposed Transferee. Developer shall not Transfer the Home until such time as Agency has
determined that the conditions set forth in Section IV.A.3(a) of this Agreement have been
satisfied, including the requirement that the Proposed transferee qualify as an Eligible
Household. Developer shall be responsible to determine whether a Proposed Transferee is an
Eligible Household. In order to verify the buyer's status as an Eligible Household, Developer
shall obtain the identity of the Proposed Transferee and adequate information evidencing the
income of the Proposed Transferee and the Proposed Transferee's status as an Eligible
Household. Said information shall be obtained not less than thirty (30) days prior to the
proposed transfer and shall include original or true copies of pay stubs, income tax records or
other financial documents in order that Developer may determine and verify the household
income and eligibility of the Proposed Transferee to determine Eligible Household status and
whether the Home is available to such buyer at an Affordable Sales Price. Developer shall
request any additional information reasonably required to verify the Proposed Transferee's
8821015610-0046
1106784.02 a0729/10 -1 5-
Eligible Household status. For each buyer whom Developer has determined constitutes an
Eligible Household, Developer shall submit to Agency a completed Request for Verification of
Proposed Buyer, substantially in the form attached to the Affordable Housing Agreement and
Declaration of Covenants, Conditions and Restrictions as Exhibit "B" (or, if Developer uses
forms that contain all of the same information as the Request for Verification of Proposed Buyer,
Developer may submit to Agency such forms in lieu thereof). If Developer is unable to verify
the Proposed Transferee's income as provided herein, then the Proposed Transferee's income
shall be deemed to exceed the maximum allowable income limit for Eligible Household status.
For purposes of satisfying the requirement that the Home shall be occupied by an Eligible
Household: (a) an individual or family who qualifies as an Eligible Household at the time he or
she first takes title to the Home will be deemed an Eligible Household as long as he or she
continues to hold title to the Home even though the individual or family subsequently ceases to
meet the income or other requirements of an Eligible Household, and (b) when an owner releases
title to the Home, the Home will be considered as occupied by an Eligible Household if it is held
vacant and available for such occupancy until title is transferred to another Eligible Household,
at which time the status of the new owner as an Eligible Household is to be determined.
(e) Notice to Agency: The owner of a Home shall send to the Agency
(or its successor), at P.O. Box 1504, La Quinta, California 92247, the Request for Verification of
Proposed Buyer form fully completed and executed by the owner and the Proposed Transferee.
(f) Buyer Affordable Housing Documents. Prior to or at the close of
escrow pursuant to which Developer transfers to an Eligible Household title to a Home,
Developer shall provide to said Eligible Household a complete set of Buyer Affordable Housing
Documents and shall require said Eligible Household to execute the same. The executed Buyer
Affordable Housing Documents shall be recorded against the Home at the close of escrow for the
Home.
(g) Partial Reconveyance of Deed of Trust. Provided that all of the
conditions to the transfer of a Home are satisfied, upon the transfer of title to a Home to an
Eligible Household, Agency shall partially reconvey the Deed of Trust as to that Home.
(h) Delivery of Documents. Upon the transfer of title to a Home to an
Eligible Household, Developer shall provide Agency with a certified copy of the recorded
documents (including the Buyer Affordable Housing Documents), a copy of the final sales
contract, settlement statement, escrow instructions, and any other documents which the Agency
may request.
(i) Developer's Continuing Obligations to Qualify Proposed Buyers.
Developer acknowledges that Agency has entered into this Agreement with the expectation that
Developer shall affirmatively manage and ensure the continued affordability of each of the
Homes during the term of the Affordable Housing Agreement and Declaration of Covenants,
Conditions and Restrictions (Attachment No. 5), whether or not Developer owns any portion of
the Site. In furtherance thereof, Developer shall be responsible to actively assist any owner of a
Home to locate, and resell the Home to, an Eligible Household. Such assistance shall include,
but not be limited to. Developer's repurchase from the owner and resale to another Eligible
Household, of the Home and completing and submitting to Agency all documentation required
982/015610-0046
1106784.02 a07/29/10 -1 6-
under the of Conditions, Covenants and Restrictions for the transfer of a Home, and performing
all tasks necessary to qualify proposed buyers, all as more fully described in the of Conditions,
Covenants and Restrictions.
B. Uses In Accordance with Redevelopment Plan
The Developer covenants and agrees for itself, its successors, its assigns, and every
successor in interest to the Site or any part thereof that the Developer and such successors and
assigns, shall devote the Site to the uses specified in the Redevelopment Plan, the Affordable
Housing Agreement and Declaration of Covenants, Conditions and Restrictions (Attachment
No. 5) and this Agreement for the periods of time specified in the applicable document. The
foregoing covenants shall run with the land.
C. Nondiscrimination
Nondiscrimination Covenants
Developer covenants 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 any basis
listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are
defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of the Site, or any part thereof, nor shall
Developer, 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 Site, or
any part thereof. The foregoing covenants shall run with the land.
2. Nondiscrimination Clauses in Agreements
Developer agrees for itself and any successor in interest that Developer shall
refrain from restricting the rental, sale, or lease of any portion of the Site, or contracts relating to
the Site, on the basis of race, color, creed, religion, sex, marital status, ancestry, or national
origin of any person. All such deeds, leases or contracts shall contain or be subject to
substantially the following nondiscrimination or nonsegregation clauses:
(i) 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 any basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code, as those bases
are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the
premises herein conveyed, nor shall the grantee or any person claiming under or
through him or her, establish or permit any practice or practices of discrimination
or segregation with reference to the selection, location, number, use or occupancy
892/015610-0046
1106784.02 ao7n9/10 -1 7-
of tenants, lessees, subtenants, sublessees, or vendees in the premises herein
conveyed. The foregoing covenants shall run with the land."
(ii) 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: "That there shall be no discrimination
against or segregation of any person or group of persons, on account of any basis
listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those
bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1)
of subdivision (p) of Section 12955, and Section 12955.2 of the Government
Code, 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."
(iii) In contracts pertaining to the realty: "There shall be no
discrimination against or segregation of, any person or group of persons on
account of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926.1,
subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and
Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer,
use, occupancy, tenure, or enjoyment of the premises which are the subject of this
agreement, nor shall the grantee or any person claiming under or through him or
her, establish or permit any 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 premises herein conveyed. The
foregoing covenants shall run with the land."
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 Site, together with any
property acquired by the Developer pursuant to this Agreement, or any part thereof. The
covenants against discrimination shall remain in effect in perpetuity.
D. Effect of Violation of the Terms and Provisions of this Agreement 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.
This Agreement and the covenants herein shall run in favor of the Agency, without regard to
technical classification or designation, and whether the Agency has been, remains or is an owner
of any land or interest therein in the Site or in the Project Area. The Agency shall have the right,
882/015610-0046 _ 1 g_
1106784. 02.07/29/10
if this 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 property proceedings to enforce the curing of
such breaches to which it or any other beneficiaries of this Agreement and covenants may be
entitled.
E. Maintenance of the Site
The Developer shall maintain the Project on the Site in conformity with the La Quinta
Municipal Code and the requirements of the Affordable Housing Agreement and Declaration of
Covenants, Conditions and Restrictions (Attachment No. 5), and shall keep the Site free from
any accumulation of debris or waste materials.
The Developer shall also maintain the landscaping required to be planted under the Scope
of Development (Attachment No. I) in a healthy and attractive condition. If, at any time,
Developer 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, either the Agency or the City
may perform the necessary maintenance and Developer shall pay such costs as are reasonably
incurred for such maintenance.
Upon the close of escrow transferring title to a Home from Developer to an Eligible
Household, the Developer's obligations under this Section VI.E with respect to such Home and
Parcel shall be assumed by the Eligible Household of such Home. This covenant shall run with
the land and shall remain in effect for the term of the Redevelopment Plan.
V. DEFAULTS AND REMEDIES
A. Defaults -- General
Subject to the extensions of time set forth in Section VI.C, 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 party claiming a
default shall not institute proceedings against the other party if the other party within thirty (30)
days from receipt of such notice immediately, 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 after receipt of such notice.
B. Legal Actions
Institution of Legal Actions
In addition to any other rights or remedies and subject to the notice and cure
provisions in Section V.A, either party may institute legal action to seek specific performance of
the terms of this Agreement, or to cure, correct or remedy any default or to obtain any other
remedy consistent with the purpose of this Agreement. Agency shall also have the right to
pursue damages for Developer's defaults. Notwithstanding the foregoing, however, in no event
shall Developer be entitled to damages of any kind from Agency, including damages for
economic loss, lost profits, or any other losses or consequential damages of any kind. Such legal
882/015610-0046 - 19-
1106/84.02 a07/29/10
actions must be instituted in the Superior Court of the County of Riverside, State of California or
in the Federal District Court in the Central District of California.
2. Applicable Law
The internal laws of the State of California shall govern the interpretation and
enforcement of this Agreement, without regard to conflict of law principles.
Acceptance of Service of Process
In the event that any legal action is commenced by the Developer against the
Agency, service of process on the Agency shall be made by personal service upon the Executive
Director or in such other manner as may be provided by law.
In the event that any legal action is commenced by the Agency against the
Developer, service of process on the Developer shall be made by personal service upon any
officer or director of the Developer and shall be valid whether made within or outside the State
of California or in such other manner as may be provided by law.
C. 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.
D. Inaction Not a Waiver of Default
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
deem necessary to protect, assert or enforce any such rights or remedies.
E. Termination by the Agency
In the event that prior to the Agency funding any portion of the Agency Financial
Assistance:
(a) The Developer (or any successor in interest) assigns or attempts to assign
this Agreement or any rights herein or in the Site in violation of this Agreement; or
(b) There is a change in the ownership of the Developer contrary to the
provisions of Section I.D.3 hereof; or
(c) The Developer does not submit certificates of insurance, construction
plans, drawings and related 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 or commenced to be cured within the time set forth in Section V.A hereof, or
882/015610-0046 _20_
1106784,02.07/29/10
(d) The Developer fails to satisfy the Conditions Precedent to the Agency
Funding of the Agency Financial Assistance by the time established therefor in the Schedule of
Performance (Attachment No. 2); or
(e) The Developer is otherwise in default under this Agreement and such
failure is not cured or commenced to be cured within the time set forth in Section V.A;
then, at the option of the Agency, upon written notice thereof to the Developer, this Agreement
shall be terminated, and thereafter neither party shall have any further rights or liability against
the other under this Agreement, except that Developer's indemnification obligations herein shall
survive such termination.
F. Attorneys' Fees
If either party to this Agreement is required to initiate or defend litigation in any way
connected with this Agreement, the prevailing party in such litigation, in addition to any other
relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys'
fees. If either party to this Agreement is required to initiate or defend litigation with a third party
because of the violation of any term or provision of this Agreement by the other party, then the
party so litigating shall be entitled to reasonable attorneys' fees from the other party to this
Agreement. Attorneys' fees shall include attorney's fees on any appeal, and in addition a party
entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such
action, retaining expert witnesses, taking depositions and discovery, and all other necessary costs
incurred with respect to such litigation. All such fees shall be deemed to have accrued on
commencement of such action and shall be enforceable whether or not such action is prosecuted
to judgment.
VI. GENERAL PROVISIONS
A. Notices Demands and Communications Between Parties
Written notices, demands and communications between the Agency and the Developer
shall be sufficiently given if delivered by hand, delivered by overnight delivery service that
provides a receipt with time and date of delivery, or dispatched by registered or certified mail,
postage prepaid, return receipt requested, to the principal offices of the Agency and the
Developer at the addresses specified in Sections I.D.1 and I.D.2, respectively. 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 VI.A.
Any written notice, demand or communication shall be deemed received immediately if
delivered by hand or by overnight delivery service, and shall be deemed received on the third
(3rd) business day from the date it is postmarked if delivered by registered or certified mail.
B. Conflicts of Interest
No member, official or employee of the Agency shall have any personal interest, direct or
indirect, in this Agreement, nor shall any member, official or employee participate in any
882/015610-0046 -2 1
1106/84 02 a07/29/ 10
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.
C. Enforced Delay' Extension of Times of Performance
In addition to specific provisions of this Agreement, performance by either party
hereunder shall not be deemed to be in default, and all performance and other dates specified in
this Agreement shall be extended, where delays or defaults are due to: war; insurrection; strikes;
lockouts; riots; floods; earthquakes; fires; acts of the public enemy; epidemics; quarantine
restrictions; freight embargoes; lack of transportation; governmental restrictions or priority;
litigation; unusually severe weather; inability to secure necessary labor, materials or tools; delays
of any contractor; subcontractor or supplier; acts or omissions of the other party; acts or failures
to act of the City of La Quinta or any other public or governmental agency or entity (other than
the acts or failures to act of the Agency, which shall not excuse performance by the Agency); or
any other causes beyond the control or without the default of the party claiming an extension of
time to perform. Notwithstanding anything to the contrary in this Agreement, an extension of
time for any such cause shall be for the period of the enforced delay and shall commence to run
from the time of the commencement of the cause, if notice by the party claiming such extension
is sent to the other party. Times of performance under this Agreement may also be extended in
writing by the mutual agreement of Agency and Developer.
Notwithstanding the foregoing portion of this Section VI.C, the Developer is not entitled
pursuant to this Section VI.0 to an extension of time to perform because of market conditions,
past, present, or future difficulty in obtaining suitable construction financing for the development
of the Site or the physical condition or suitability of the Site for the purposes of this Agreement.
D. Non -Liability of Officials and Employees of the Agency and the Developer
No member, official or employee of the Agency or the City shall be personally liable to
the Developer, 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 Developer or its successors, or on
any obligations under the terms of this Agreement.
E. Agency Approvals and Actions
Agency shall maintain authority of this Agreement and the authority to implement this
Agreement through the Executive Director (or his or her duly authorized representative). The
Executive Director shall have the authority to make approvals, issue interpretations, execute
documents, waive provisions, and/or enter into certain amendments of this Agreement on behalf
of Agency so long as such actions do not materially or substantially change the uses or
development permitted on the Site, add to the costs incurred or to be incurred by Agency as
specified herein, or decrease the revenues or other compensation to be received by Agency, and
such approvals, interpretations, waivers and/or amendments may include extensions of time to
perform as set forth in Section VI.C. All other material and/or substantive interpretations,
waivers, or amendments shall require the consideration, action and written consent of the
Agency Board.
882/015610-0046 _�^G.
1106784.02 a07/29/10
F. Counterparts
This Agreement may be executed in several counterparts, and all so executed shall
constitute one agreement binding on both parties hereto, notwithstanding that both parties are not
signatories to the original or the same counterpart.
G. Entire Agreement
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.
H. Waivers
All waivers of the provisions of this Agreement must be in writing by the appropriate
authorities of the Agency and the Developer, and all amendments hereto must be in writing and
signed by the appropriate authorities of the Agency and the Developer.
Severability
If any term, provision, covenant, or condition of this Agreement is held by a court of
competent jurisdiction to be invalid, void, or unenforceable, the remainder of this Agreement
shall not be affected thereby to the extent such remaining provisions are not rendered impractical
to perform taking into consideration the purposes of this Agreement.
Successors and Assigns
All of the terms, covenants and conditions of this Agreement shall be binding upon the
parties and their permitted successors and assigns
K. Reasonableness
In any circumstance where under this Agreement either party is required to approve or
disapprove any matter, approval shall not be unreasonably withheld.
L. Calculation of Time Periods.
Unless otherwise specified, all references to time periods in this Agreement measured in
days shall be to calendar days, all references to time periods in this Agreement measured in
months shall be to consecutive calendar months and all references to time periods in this
Agreement measured in years shall be to consecutive calendar years. Any reference to business
days in this Agreement shall mean and refer to business days of the Agency.
[End of Agreement — Signature Page follows]
882/015610-0046 -23-
1106784,02 a09/29/10
IN WITNESS WHEREOF, the Agency and the Developer have signed this Agreement
on the respective dates set forth below.
Dated:
49�3/e)
APPROVED AS.7TO FORM:
0
Dated: FIj Ff(2c j D
Dated:
182/015610-0046
1106784.02 a07/29/10
LA QUINTA REDEVELOPMENT AGENCY,
a public bod corporate pglit'
By
/ Executive Director
HABITAT FOR HUMANITY OF THE
COACHELLA VALLEY, INC., a California
nonprofit public benefit corporation
By: By: st^- j
' KA:Q -
Its: ST*,,jjW J Wt,�..tr2 ititw�w�+tC
By: /� r
Its:
-24-
ATTACHMENT NO. 1
SCOPE OF DEVELOPMENT
1. DEVELOPMENT
Developer shall cause the construction and installation of one single family home on each
Parcel comprising the Site (the "Homes"). The minimum livable space in the Homes shall be
approximately 1,523 square feet, and shall comply with the City's Cove Residential (RC)
District (Chapter 9.50). The Homes shall be developed in accordance with a 4-bedroom, 2-bath
floor plan and site elevations which have been or which shall have been approved by the City
and the Agency. Amenities include a front landscaped/irrigated yard; interior laundry with sink
and cabinets; a kitchen that features tile countertop, dishwasher, built-in range, oak cabinetry,
and nooks/pantry; tile roof, and concrete block perimeter fencing.
The developer shall commence and complete the Project by the respective times
established therefor in the Schedule of Performance (Attachment No. 2).
II. DEVELOPMENT STANDARDS
The following development standards shall apply to the Project:
A. Building Setbacks. Minimum building setbacks for building and parking areas
shall be as required by the Redevelopment Plan and approved by the Agency, and shall conform
to the La Quinta Municipal Code (the "City Code").
B. Building Coverage. The amount of land within the Site covered by buildings
shall be as required by the Redevelopment Plan and local zoning.
C. Building Height. Buildings shall not exceed the height as may be limited by the
Redevelopment Plan and local zoning.
D. Landscaping. The Developer shall provide and, until the sale of the Homes
maintain, landscaping on the Site.
Landscaping shall be subject to approval by the City's Planning Department prior to
planting.
E. Utilities. Sewer drainage and utility lines, conduits or systems shall not be
constructed or maintained above the ground level of the Site. Storm drainage for all hard
surfaced areas shall be drained or may be sheet flowed to storm sewers. All non -polluted waste
water, such as waste air conditioning water, shall be drained to the storm or sanitary drainage
systems as permitted by local codes.
ATTACHMENT NO. 1
182/015610-0046 Page 1 of 2
1106784,02 a07/29/10 g
F. Building Materials. All exterior walls shall be painted or covered by the
Developer with color(s) and materials subject to approval by the City's Community
Development Department. In satisfaction of this requirement, the Developer shall submit a color
and materials board for approval by the Agency.
G. Building Design, The Homes shall be constructed such that the Project shall
conform to the La Quinta Municipal Code, and shall be effectively and aesthetically designed.
111. PUBLIC IMPROVEMENTS AND UTILITIES
The Developer, at its own cost and expense, shall provide or cause to be provided the
public improvements as required by the City pursuant to the usual City building permit
requirements for on- and off -site improvements to residential development within the time set
forth for the completion of the Project in the Schedule of Performance (Attachment No. 2).
IV. AMENDMENTS
Any material change, as reasonably determined by the Agency, in this Scope of
Development or in the approved site plan which affects the size, quality, or type of development
proposed for the Site shall require the written approval of the Agency, which approval may be
contingent upon the review and renegotiation of all of the economic and financial terms of this
Agreement and such other matters as the Agency shall deem appropriate.
It shall be up to the discretion of the Agency Executive Director whether a proposed
material change to this Scope of Development requires approval by the Agency Board or
whether such change may be approved in writing by the Agency Executive Director.
ATTACHMENT NO. 1
882/015610-0046 Page 2 Of 2
1106784.02 a0729I10 g
ATTACHMENT NO.2
SCHEDULE OF PERFORMANCE
CONSTRUCTION DOCUMENTS AND
BUILDING PERMITS
Submittal of Site Plan. Developer shall
prepare and submit to the Agency the Site
Plan for the Project.
2. Execution of Documents. Developer shall
execute and deliver to Agency the Promissory
Note, Deed of Trust, Notice of Affordability,
and Affordable Housing Agreement and
Declaration of Covenants, Conditions and
Restrictions.
Within thirty (30) days after the Effective
Date.
Upon the earlier of (i) 20 days after the
Effective Date, and (ii) prior to requesting
any Agency Financial Assistance from
Agency.
Submission of Complete Construction Not later than thirty (30) days after
Drawings and Landscaping Plan. Developer Agency staff approval of Site Plan.
shall submit to the Agency complete
Construction (working) Drawings and
Landscaping Plan for the Project.
4. Obtaining of Building Permits. Developer Not later than thirty (30) days after
shall satisfy all requirements necessary to Agency approval of Complete
obtain, and shall obtain, all building and other Construction (working) Drawings and
permits needed to commence construction of Landscaping Plan.
the Project.
11. CONSTRUCTION PHASE
5. Commencement of Construction. Developer Not later than thirty (30) days after
shall commence construction of the Project. Developer obtains building permits.
6. Completion of Construction. Developer shall Within two hundred seventy (270) days
complete construction of the Project. after the commencement of construction
of the Project.
111. TRANSFER STAGE
Sales of Homes. The Homes shall be sold to Within ninety (90) days after City's
Eligible Households. issuance of certificate of occupancy.
Minor revisions to this Schedule of Performance, including extensions of time up to a maximum,
cumulatively, of one hundred eighty (180) days, may be approved in writing by the Agency
Executive Director.
11 1106784,02 a0729/10
5610-00 /2 ATTACHMENT NO. 2
11069
ATTACHMENT NO. 3
PROMISSORY NOTE
(See following document)
1
402 a0 /2 ATTACHMENT NO. 3
1106784. W a0729/10
PROMISSORY NOTE
$174,940
La Quinta, California
FOR VALUE RECEIVED, HABITAT FOR HUMANITY OF THE COACHELLA
VALLEY, INC., a California nonprofit public benefit corporation (`Borrower") promises to pay
to LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic
("Agency") at 78-495 Calle Tampico, La Quinta, California 92253, or at such other address as
Agency may direct from time to time in writing, the sum of One Hundred Seventy -Four
Thousand Nine Hundred Forty Dollars ($174,940) (the "Note Amount"), plus accrued interest (if
applicable), and other charges owing hereunder, or such lesser amount which shall from time to
time be owing hereunder pursuant to the terms of this Note.
Reference is made to:
(a) The Affordable Housing Agreement between Borrower and Agency dated
231, 2010, as may be amended from time to time ("AHA"),
which sets forth terms and conditions for Borrower's redevelopment of
that certain real property located in the City of La Quinta, County of
Riverside, State of California, more particularly described in the AHA as
the "Site." All terms not otherwise defined herein shall have the meaning
given in the AHA:
(b) The Affordable Housing Agreement and Declaration of Covenants,
Conditions and Restrictions between Agency and Borrower, recorded
against the Site in the Office of the Riverside County Recorder on or about
the date hereof, as may be amended from time to time ("Declaration").
(c) The Deed of Trust securing this Note executed by Borrower in favor of
Agency, recorded against the Site in the Office of the Riverside County
Recorder on or about the date hereof, as may be amended from time to
time ("Deed of Trust").
The AHA, Declaration, and Deed of Trust are collectively referred to herein as the "Agency _
Agreements." The Agency Agreements are incorporated herein as though set forth in full.
1. Note Amount; Interest.
(a) Note Amount. The principal amount of Agency's loan to Borrower is
One Hundred Seventy -Four Thousand Nine Hundred Forty Dollars ($174,940) ("Note
Amount"). The Note Amount represents the financial assistance provided by Agency to
Borrower to enable Borrower to develop the Project on the Site.
(b) Interest. Subject to Section 3 below, no interest shall accrue on the
outstanding principal Note Amount.
2. Term of Note; Repayment. Repayment of the Loan Amount shall be as follows:
882/01561"046
1106784.02 a07/29/ 10
(a) Subject to the provisions of Section 3 herein, which provide for
acceleration of the then outstanding principal and accrued interest and immediate payment
thereof in the event of a default by Borrower, Borrower shall not be required to make any
payments of principal or interest on this Note until such time as Borrower sells a Home to an
Eligible Household. Upon Borrower's sale of a Home to an Eligible Household at an Affordable
Sales Price and the Eligible Household's execution of a complete set of Buyer Affordable
Housing Documents, the Note Amount shall be reduced by fifty percent (50%). At such time,
the amount by which the Note Amount is reduced shall be deemed transferred to said Eligible
Household, in the form of a first trust deed loan. Upon Borrower's sale of the last Home in the
Project to an Eligible Household at an Affordable Sales Price and said Eligible Household's
execution of a complete set of Buyer Affordable Housing Documents, this Note shall be
automatically cancelled, as evidenced by Agency's return to Borrower of the original of this
Note marked "cancelled," and the Deed of Trust shall no longer secure the obligations hereunder.
(b) Borrower shall have the right to prepay all or any portion of this Note at
any time without penalty.
(c) Any payments made by Borrower in payment of this Note shall be applied
in the following order: (i) first to the interest then accrued and due on the unpaid principal
balance under this Note, (ii) second to reduction of the principal balance of this Note.
3. Default and Cross -Default. Borrower shall be deemed in default of this Note in
the event Borrower (a) fails to timely make a payment required by this Note within ten (10) days
following the due date of any payment due hereunder; or (b) Borrower is in material default of
any of the covenants, terms, or provisions of this Note, or any of the Agency Agreements, and
Borrower fails to timely cure such default under the terms of the applicable agreement, it being
understood and agreed by Borrower that a default of any of Agency Agreements (beyond any
applicable cure period) shall be a default of this Note. In the event of a default, all portions of
the Note Amount that have been disbursed to Borrower and all accrued interest thereon shall
become immediately due and payable. The rate of interest applicable to periods of default for
the defaults set forth in this Paragraph 3 shall be calculated at the lesser of ten percent (10%) per
annum or the maximum legal rate, and shall accrue as of the date such payment was originally
due.
4. Collection Costs; Attorneys' FI
paid, Borrower shall pay all costs of collection,
all expenses incurred in connection with the p
the payment hereof or enforcement of any gut
collection, whether or not suit is filed hereon.
es. If the Note Amount becomes due and is not
including, but not limited to, attorneys' fees and
otection or realization of the collateral securing
ranee, incurred by Agency on account of such
5. Waiver of Presentment, Etc. Borrower and all endorsers, guarantors and
persons liable or to become liable on this Note waive presentment, protest and demand, notice of
protest, demand and dishonor and nonpayment of this Note and any and all other notices or
matters of a like nature, and consent to any and all renewals and extensions near the time of
payment hereof and agree further that at any time and from time to time without notice, the terms
of payment herein may be modified or the security described in any documents securing this
Note released in whole or in part, or increased, changed or exchanged by agreement between
882/0156W0 046 _
1106784,02 a0729/10 -2'
Agency and any owner of the premises affected by said documents securing this Note, without in
any way affecting the liability of any party to this Note or any persons liable or to become liable
with respect to any indebtedness evidenced hereby.
6. Severability; Governing Law; Amendment. The unenforceability or invalidity
of any provision or provisions of this Note as to any persons or circumstances shall not render
that provision or those provisions unenforceable or invalid as to any other provisions or
circumstances, and all provisions hereof, in all other respects, shall remain valid and enforceable.
This Note has been executed and delivered by Borrower in the State of California and is to be
governed and construed in accordance with the laws thereof. Neither this Note nor any term
hereof may be waived, amended, discharged, modified, changed, or terminated orally; nor shall
any waiver of any provision hereof be effective except by an instrument in writing signed by
Borrower and Agency.
7. No Waiver by Agency. No waiver of any breach, default, or failure of condition
under the terms of this Note or the Deed of Trust or the obligations secured thereby shall be
implied from any failure of Agency to take, or any delay be implied from any failure by Agency
in taking action with respect to such breach, default, or failure from any prior waiver of any
similar or unrelated breach, default, or failure.
8. Usury. Notwithstanding any provision in this Note, the Deed of Trust, or other
document securing same, the total liability for payment of any interest shall not exceed the limit
imposed by applicable laws of the State of California.
9. Non -Recourse Obligation. In the event of any default under the terms of this
Note or any -of the Agency Agreements, the sole recourse of Agency for any and all such defaults
shall be by judicial foreclosure or by the exercise of the trustee's power of sale, and Borrower
and its partners shall not be personally liable for the payment of this Note or for the payment of
any deficiency established after judicial foreclosure or trustee's sale; provided, however, that the
foregoing shall not in any way affect any rights Agency may have (as a secured party or
otherwise) hereunder or under any of the Agency Agreements to recover directly from Borrower
any amounts secured by the Deed of Trust, or any funds, damages or costs (including without
limitation reasonable attorneys' fees and costs) incurred by Agency as a result of fraud,
intentional misrepresentation or bad faith waste, and any costs and expenses incurred by Agency
in connection therewith (including without limitation reasonable attorneys' fees and costs).
10. Assignment. Borrower may not transfer or assign this Note without the express
written consent of Agency, which may be given or withheld in Agency's sole and absolute
discretion. Agency may transfer or assign Agency's interest in this Note.
[End of Note — signature page follows]
882/015610-0046
1106784,02 a07/29110 _3_
Dated: �H I m ZO 10
Dated: O / / Y / 2U / U
Dated:
APPROVED AS TO FORM
Xnc
N & TU KE , P:
Counse
"Borrower"
HABITAT FOR HUMANITY OF THE
COACHELLA VALLEY, INC., a California
nonprofit public benefit corporation
By: Ste- A
Its: S"1�.VEN �', DWI-c/./c.,tcGTVL¢�lvxalL
By:
Its: 0
"Agency"
LA QUINTA REDEVELOPMENT GENCY,
a / b dy corporatrz?,�
By: ( Z,2�
Executive Director
882/015610-0046
u06784,02.07/29/10 -4'
ATTACHMENT NO.4
DEED OF TRUST
(See following document)
1
4 02 a 0 /2 ATTACHMENT NO. 4
1106984.02 a0'IR9/10
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:)
La Quinta Redevelopment Agency
P.O. Box 1504
La Quinta, CA 92247
Attn: RDA Secretary / City Clerk
DEED OF TRUST
DOC # 2010-0414646
08/30/2010 08:00A Fee:NC
Page 1 of 6
Recorded in Official Records
County of Riverside
Larry W. Ward
Assessor, County Clerk & Recorder
11111111111111 M 111111111111111111111111111111111101
S
R
U
PAGE
SIZE
DA
I MISC
I LONG
I RFD
I COPY
M
A
L
465
426
PCOR
NCOR
SMP
CHG
/EXAM
- 80
-IT
CTY
UNI
Exempt from Recordation Fee per Gov. Code § 27383
Y
IN
This DEED OF TRUST ("Deed of Trust') is made as of the J day of.Au&A5—t 12010,
by and among HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC.,
a California nonprofit public benefit corporation ("Trustor"), whose address is
PO Boxlli3$ Phr.M bCSE,k7 , CA`i2_255 ("Truster"), fif5T AMEQtcAnl rix C,3.>
•C_AL-WgP IIA CORP. ("Trustee"), and the LA QUINTA REDEVELOPMENT AGENCY,
a public body, corporate, and politic ("Beneficiary"), whose address is 78-495 Calle Tampico,
La Quinta, CA 92253.
1. Grant in Trust. Trustor grants to Trustee in trust, with power of sale and right of
entry and possession, that certain property in the City of La Quinta, County of Riverside, State of
California, described in Exhibit "A" attached hereto and incorporated herein by reference
("Property"), together with rents, issues and profits thereof.
2. Obligations Secured. Truster makes this grant and assignment for the purpose of
securing the following obligations: (a) payment of the sum of One Hundred Seventy -Four
Thousand Nine Hundred Forty Dollars ($174,940) (`Note Amount'), with interest thereon
according to the terns of a promissory note or notes of even date herewith made to Trustor,
payable to order of Beneficiary, and modifications, extensions or renewals thereof (`Note");
(b) performance of all obligations of Truster under the Note, the Affordable Housing Agreement
between Truster and Beneficiary dated g Z 3 , 2010 ("AHA"), the Affordable Housing
Agreement and Declaration of Covenants, Conditions and Restrictions between Truster and
Beneficiary, recorded against the Property on or about the date hereof (`Declaration"), this Deed
of Trust, and each agreement of Trustor incorporated by reference or contained herein, as such
agreements may be amended from time to time (collectively, the "Agency Agreements"); and
(c) payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or
its successors or assigns, when evidenced by a promissory note or notes reciting that they are
secured by this Deed of Trust. Terms not otherwise defined herein shall have the definitions
ascribed thereto in the AHA.
3. Acceleration of Note Amount Upon,Sale, Encumbrance, or Default. To the
extent permitted by applicable law, if Trustor shall: (a) directly or indirectly, voluntarily, or
involuntarily, sell, assign, transfer, dispose of, alienate, encumber, lease, or agree to sell, assign,
transfer, dispose of, alienate, encumber, or lease all or any portion of any interest in the Property
(excluding the transfer of the Homes to Eligible Households at an Affordable Sales Price, if done
in accordance with the A14A and the Declaration); (b) fail to complete construction of the
882/015610-0046 -
1106784.02 a07/29/10 ' 1'
Project, as evidenced by Beneficiary's issuance to Trustor of a Release of Construction
Covenants, within nine (9) months following the date Trustor commences construction of the
"Project" pursuant to the AHA; or (c) default on any of its obligations set forth in the Note,
AHA, Declaration, or this Deed of Trust, Beneficiary, at its option, may declare the entire
indebtedness evidenced hereby, including, without limitation, all accrued interest, to be
immediately due and payable and collectible then or thereafter as Beneficiary may elect.
AN EVENT OF ACCELERATION OR PAYMENT UNDER THE NOTE, WHETHER
VOLUNTARY OR DUE TO AN EVENT OF ACCELERATION, SHALL NOT TERMINATE
THE AFFORDABLE RESTRICTIONS OR THE FORTY-FIVE YEAR AFFORDABILITY
PERIOD SET FORTH IN THE AFFORDABLE HOUSING AGREEMENT. TRUSTOR
EXPRESSLY ACKNOWLEDGES THE FOREGOING.
Trustor's Initials /8-
4. No Cure. In the event Beneficiary collects and receives any rents under the Deed
of Trust upon any default hereof, such collection or receipt shall in no way constitute a curing of
the default, except if and to the extent the same are sufficient to cure all monetary defaults and
no other defaults then exist.
5. Possession Upon Default. Upon the occurrence of and during the continuation of
a default, Beneficiary, after having given notice and the applicable cure periods having expired
with the default having not been cured (hereinafter, a "default"), may, at its option, without any
action on its part being required and without in any way waiving such default, take possession of
the Property in accordance with applicable law and have, hold, manage, lease and operate the
same, on such terms and for such period of time as Beneficiary may deem proper, and may
collect and receive all rents and profits, with full power to make, from time to time, all
commercially reasonable alterations, renovations, repairs or replacements thereto as may seem
proper to Beneficiary, and to apply such rents and profits to the payment of (a) the cost of all
such alterations, renovations, repairs and replacements, and all costs and expenses incident to
taking and retaining possession of the Property, and the management and operation thereof, and
keeping the same properly insured; (b) all taxes, charges, claims, assessments, and any other
liens which may be prior in lien or payment of the Note, and premiums for insurance, with
interest on all such items; and (c) the indebtedness secured hereby, together with all costs and
attorney's fees, in such order or priority as to any of such items as Beneficiary in its sole
discretion may determine, any statute, law, custom or use to the contrary notwithstanding. Any
amounts received by Beneficiary or its agents in the performance of any acts prohibited by the
terms of this assignment, including, but not limited to, any amounts received in connection with
any cancellation, modification or amendment of any lease prohibited by the terms of this
assignment and any rents and profits received by Trustor after the occurrence of a default shall
be held by Trustor as trustee for Beneficiary and all such amounts shall be accounted for to
Beneficiary and shall not be commingled with other funds of the Trustor. Any person receiving
any portion of such trust funds shall receive the same in trust for Beneficiary as if such person
had actual or constructive notice that such funds were impressed with a trust in accordance
therewith.
6. Receiver. In addition to any and all other remedies of Beneficiary set forth under
this Deed of Trust or permitted at law or in equity, if a default shall have occurred and not have
882/015610-0046
1106784.02 a07/29/10 _2
been cured within any applicable cure period, Beneficiary, to the extent permitted by law and
without regard to the value, adequacy or occupancy of the security for the Note and other sums
secured hereby, shall be entitled as a matter of right if it so elects to the appointment of a receiver
to enter upon and take possession of the Property and to collect all rents and profits and apply the
same as the court may direct, and such receiver may be appointed by any court of competent
jurisdiction by ex parte application and without notice, notice of hearing being hereby expressly
waived. The expenses, including receiver's fees, attorneys' fees, costs and agent's
compensation, incurred pursuant to the power herein contained shall be secured by this Deed of
Trust.
7. Partial Reconveyances of Deed of Trust. Provided Trustor is not in default of
any of the Agency Agreements, upon the initial transfer of title of each Home on the Property by
Trustor to an Eligible Household at an Affordable Sales Price in accordance with the ARA, this
Deed of Trust shall be partially reconveyed as to that Home.
8. Incorporation of Fictitious 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, except as provided
below, 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, and 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
COUNTY
BOOK
PAGE
COUNTY
BOOK
PAGE
COUNTY
BOOK
PAGE
Alameda
1288
556
Kings
858
713
Placer
1028
379
Siena
38
187
Alpine
3
130-31
Lake
437
110
Plumes
166
1307
Siskiyou
506
,762
Arrador
133
438
Lassen
192
367
Riverside
3778
347
Solano
1287
621
Butte
1330
513
Los Angeles
T-3878
874
Sacramento
5039
124
Sonoma
2067
427
Calaveras
185
338
Modem
911
136
San Benito
300
405
Smnislaus
Iwo
56
Colusa
323
391
Maria
1949
122
San Bernardino
6213
768
sun.
655
585
Contra Costa
4684
1
Mariposa
90
453
sun Francisco
A-804
596
Tehama
457
183
Del Norte
101
549
Mendocino
667
99
San Joaquin
2855
283
Trinity
108
595
El Dorado
704
635
Merced
1660
753
San Luis Obispo
1311
137
Tulare
2530
108
Fresno
5052
623
Motion
191
93
San Mateo
4778
175
Tuolumne
177
160
Glenn
469
76
Mono
69
302
Santa Barbara
2065
881
Ventura
2607
237
Humboldt
801
83
Monterey
357
239
Santa Clam
6626
664
Yolo
769
16
Imperial
1189
701
Napa
704
742
Santa Cruz
1638
607
Yuba
398
693
Ingo
165
672
Nevada
363
94
Shasta
800
633
Kem
3756
69D
Orange
7182
18
San Diego
SERIES
5 Book 1964,
Page 149774
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,
and printed on pages 6 and 7 hereof) 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 therefore does not exceed the maximum allowed by law.
Notwithstanding the incorporation herein of subdivision A and Subdivision B of the
fictitious deed of trust referenced above (the "Fictitious Deed of Trust"):
(a) In the event of a fire or other casualty for which Trustor has procured
insurance, if, upon Trustor's receipt of the insurance proceeds thereunder, Trustor will be
882/015610-0046
1106784, 02 a0729/10 -3-
i
financially, and in all other respects, capable of rebuilding the Project on the Property, as
reasonably determined by Beneficiary, Trustor shall be entitled to retain the insurance proceeds
for the sole purpose of rebuilding the Project.
(b) In the event of a condemnation of any portion of the Property, if, upon
Trustor's receipt of the condemnation award in connection therewith, Trustor will be financially,
and in all other respects, capable of rebuilding the Project on the Property, as reasonably
determined by Beneficiary, Trustor shall be entitled to retain the condemnation award for the
sole purpose of rebuilding the Project.
(c) Partial reconveyances under this Deed of Trust are permitted.
(d) To the extent the provisions set forth in paragraph 5 of Subdivision B of
the Fictitious Deed of Trust are inconsistent with the provisions in Section 5 and/or Section 6 in
this Rider, the provisions in Section 5 and Section 6 in this Rider shall prevail.
IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the date set
forth above.
HABITAT FOR HUMANITY OF THE
COACHELLA VALLEY, INC., a California
nonprofit
{public benefit corporation
Dated: ��ZO ID By:
Its: STrz'yE.N S, ► kk L-e.VLI 12 c..s"Y LWL
Dated: �I I �� 2 0/ U By: T J
Its: �r
882/015610-0046
1106784.02 a07129110 -4-
State of California
County of Riverside
On q/1t /,a.OI O before me, �e ll.Qae �n w t ,
in�rt name and title of the o)
Notary Public, personally appeared 0 h S 4(� V
who 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.
1 certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal. CaaNmMon a 1697>'YM
CaBbedo
�O ,:
Signature .Q." y ITS
Yh� ITS M0.hial
*1l09779 to
State of California
County of Riverside
On g(, t/101010 before me, Q" 6n�
� �nsert name and titl�of the officer) V
Notary Public, personally appeared \T' + ' n ds� c— �`i% '� ,
who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature >Ls�
882/015610-0046
1106784 02 a07/29/10
(Seal)
P1fY1t161 ANM
C6mnPowan 0 16"M
Tway FWAC • cowa ilo
Evenkte Coady
*:*Cum. Dphim0cl 16,201
[W V 0 0 9 M
T%,y llls M&#dey
1b97744
EXHIBIT "A" TO DEED OF TRUST
LEGAL DESCRIPTION OF PROPERTY
Real property in the City of La Quinta, County of Riverside, State of California,
described as follows:
LOTS 13 AND 14 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;
EXCEPTING THEREFROM ONE -SIXTEENTH OF ALL COAL, OIL, GAS
AND OTHER MINERAL DEPOSITS IN SAID LAND, AS RESERVED IN
THE PATENT FROM THE STATE OF CALIFORNIA, RECORDED JULY 26,
1934 IN BOOK 182 PAGE 463 OF OFFICIAL RECORDS OF RIVERSIDE
COUNTY, CALIFORNIA.
APN: 774-044-012-3 and 774-044-011-2
882/01561M046
110678402.07/29/10
ATTACHMENT NO. 5
AFFORDABLE HOUSING AGREEMENT AND
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
(See following document)
882/015610-0046
1106784 02.07/29/10 ATTACHMENT NO. 5
a
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
La Quinta Redevelopment Agency
P.O. Box 1504
La Quinta, CA 92247
Attn: RDA Secretary / City Clerk
DOC # 2010-0414647
08/30/2010 08:00R Fee:NC
Page 1 of 27
Recorded in official Records
County of Riverside
Larry W. Ward
Assessor, County Clerk & Recorder
11111111111111111111111111111111111111111111111111111
S
R
U
PAGE
I SIZE
I DA
I MISC
I LONG I
RFD I
COPY
I
a
M
A
L
465
1 426
1 PCOR
NCOR
SMF
CNCHAEXAM
'V
T:
C T YJ
UNI
Exempt from Recordation Fee per Gov. Code § 27383 Q
AFFORDABLE HOUSING AGREEMENT AND DECLARATION (V!
OF COVENANTS, CONDITIONS AND RESTRICTIONS C30
This AFFORDABLE HOUSING AGREEMENT AND DECLARATION OF
COVENANTS, CONDITIONS, AND RESTRICTIONS FOR PROPERTY (the "Declaration")
is made by and between HABITAT FOR HUMANITY OF COACHELLA VALLEY, INC.,
a California nonprofit public benefit corporation (the "Developer") and the LA QUINTA
REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency") as of the
'3 day of AuCyuST 2010.
RECITALS
A. Developer owns fee title to that certain real property located in the City of
La Quinta, County of Riverside, State of California, legally described in the legal description
attached hereto as Exhibit "A" ("Property"). The Property is located in Project Area No. 1 (the
"Project Area") and is subject to the provisions of the Redevelopment Plan for the Project Area.
B. This Declaration is part of a redevelopment project described in that certain
Affordable Housing Agreepent (the "AHA"), entered into by and between Developer and
Agency on or about 21 23 , 2010, concerning Developer's construction on the
Property of two (2) single family detached affordable housing dwelling units (the "Homes"),
with each of the Homes restricted for sale to "Eligible Households" at an "Affordable Sales
Price" (as those terms are defined in Section 1 herein) (collectively, the "Project").
C. Pursuant to the AHA, and as further described in that certain promissory note
attached thereto as Attachment No. 3, the Agency has agreed to provide the Developer with
certain financial assistance, in the form of a loan, to construct the Project on the Property (the
"Agency Loan"). Upon the Developer's sale of each Home to an Eligible Household at an
Affordable Sales Price and said Eligible Household's execution of a complete set of "Buyer
Affordable Housing Documents" (as that term is described in Section I hereof), fifty percent
(50%) of the outstanding principle balance of the Agency Loan will be credited to the Developer
and deemed transferred to said Eligible Household, in the form of a first trust deed loan (each, a
"Homebuyer Loan").
882/015610-0046
1106784.02 a07/29/ 10 -1-
D. The AHA is available for public inspection and copying at City Hall, 78495
Calle Tampico, La Quinta, CA 92253. All of the terms, conditions, provisions and covenants of
the AHA are incorporated in this Declaration by reference as though written out at length herein
and the AHA and this Declaration shall be deemed to constitute a single instrument or document.
E. Agency is a public body, corporate and politic, exercising governmental functions
and powers and organized and existing under the Community Redevelopment Law of the State
of California (Health and Safety Code Section 33000, et seq.). Agency desires to increase,
improve and preserve affordable housing in the City of La Quinta ("City") and this Declaration
is in furtherance of Agency's goal to create long-term affordable housing units. This goal is
accomplished through the terms and conditions of this Declaration, which restrict the resale price
of the Homes to be developed on the Property to a level that is affordable to Eligible Households
for a period of forty-five (45) years.
NOW, THEREFORE, THE AGENCY AND THE DEVELOPER AGREE AS
FOLLOWS:
Definitions.
"Adjusted for Family Size Appropriate for the Property" shall mean, for purposes of
calculating an Affordable Sales Price, a household of three (3) persons for a two (2) bedroom
Home, a household of four (4) persons for a three (3) bedroom Home, and a household of five
(5) persons for a four (4) bedroom Home (California Health and Safety Code, Section 50052.5).
"Affordability Period" shall be, for each Home, forty-five (45) years from the date'the
Home is first transferred to an Eligible Household, as evidenced by the recordation of a Buyer
Affordable Housing Agreement by said Eligible Household.
"Affordable Sales Price" shall mean a sales price that would result in an annual Monthly
Housing Cost that does not exceed the maximum percentage of income that can be devoted to
housing cost by Eligible Households under California law. As of the date of this Declaration, the
Affordable Sales Price for an Eligible Household means a purchase price that would result in an
annual Monthly Housing Cost that is not more than the product of thirty percent (30%) times
fifty percent (50%) of the Median Income Adjusted for Family Size Appropriate for the
Property, all as more particularly set forth in Section 50052.5 of the California Health and Safety
Code.
"Agency Deed of Trust" shall mean the Deed of Trust in favor of Agency recorded
against the Property on or about the date of recordation of this Declaration, as may be amended
from time to time, which secures, among other things, Developer's obligations under this
Declaration.
"Buyer Affordable Housing Documents" shall collectively refer to the following
documents, all of which shall be required to be executed by each buyer of a Home to assure the
affordability of the Home to Eligible Households for the full 45-year term: (i) an affordable
housing agreement that prohibits the resale of the Home except to an Eligible Household or to
Developer and grants the Developer and Agency an option to purchase the Home ("Option to
Purchase") prior to the then -owner's sale to an Eligible Household ("Buyer Affordable Housing
882/015610-0046 1106784 02 a07/29/10 -2-
Agreement"); (ii) a promissory note ("Buyer Promissory Note") in the amount of fifty percent
(50%) of the Agency Loan; (iii) a deed of trust securing repayment under the Promissory Note
("Buyer Deed of Trust"); and (iv) a disclosure statement acknowledging and consenting to all of
the affordability restrictions contained in the aforementioned documents ("Buyer Disclosure
Statement"). The Buyer Affordable Housing Documents shall be in a form approved by Agency
counsel.
"Developer" shall mean Developer and any successor in interest of Developer to the
Property.
"HCD" shall mean the State of California Department of Housing and Community
Development.
"Median Income" shall mean the Riverside County area median income adjusted for
family size as established by the United States Department of Housing and Urban Development,
and as published periodically by HCD.
"Monthly Housing Cost" shall include all of the following associated with a Home,
estimated or known as of the date of the proposed sale of the Home: (a) principal and interest
payments to be paid in the form of loan proceeds; (b) property taxes and assessments; (c) fire and
casualty insurance covering replacement value of property improvements; and (d) a reasonable
utility allowance. The Monthly Housing Cost of a purchaser shall be an average of estimated
costs for the next twelve (12) months.
"Owner" shall mean an Eligible Household to whom Developer has conveyed fee title to
one of the Homes or any successor in interest to said buyer to all or any portion of the Home.
"Project" shall mean the grading of the Site, and the development of the Site with two (2)
Homes, and all other on -site and off -site improvements required for development of the Site, as
described more fully in the Scope of Development attached to the AHA as Attachment No. 1,
with all such improvements to be consistent with the development and building plans and
permits to be approved by the Agency and City. In the event of any inconsistency between the
description of the Project in this Declaration and the approved plans and permits, the approved
plans and permits shall govern.
"Proposed Buyer" shall mean a person or family determined to be an Eligible Household
to whom the Developer or any successor Owner desires and proposes to Transfer a Home.
"Eligible Household" shall mean a household whose annual income does not exceed the
qualifying limits under California law for either "lower income households" or "very low income
households" as established by HUD, and as published periodically by HCD.
"Sales Price" shall mean all sums paid by an Eligible Household to Developer for, or in
conjunction with, the acquisition of a Home, including the purchase price designated in any
purchase agreement, consideration for personal property and all other costs and fees paid by the
Eligible Household, to or for the benefit of the Developer.
882/015610-0046
1106784.02 a07/29/10 -3-
"Transfer" shall mean (i) any sale, assignment, or transfer of an interest in a Home,
including, without limitation, 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 Home, or (ii) any interest evidenced by a land contract.
2. Sale of Homes.
Developer agrees that Developer shall sell the Homes to Eligible Households at an
Affordable Sales Price and that during the Affordability Period each subsequent resale of a
Home by the then -Owner thereof shall be to either an Eligible Household or to Developer, in
either case at an Affordable Sales Price. Developer agrees to commence to market each Home at
the earliest feasible time, but not later than the commencement of construction of said Home.
Developer shall use its best efforts to market the Homes to residents of the City of La Quinta.
Escrow for the initial Transfer of a Home by Developer to an Eligible Household shall not close
until after issuance of a certificate of occupancy by the City building department for such Home.
For purposes of satisfying the requirement that all of the Homes shall be occupied by
Eligible Households: (a) an individual or family who qualifies as an Eligible Household at the
time he or she first takes title to a Home will be deemed an Eligible Household as long as he or
she continues to hold title to such Home even though said buyer subsequently ceases to meet the
applicable income requirements, and (b) when an Owner releases title to a Home, such Home
will be considered as occupied by an Eligible Household if it is held vacant and available for
such occupancy until title is transferred to an Eligible Household, provided Developer is
diligently pursuing the transfer of such Home to an Eligible Household.
Restrictions on Transfer by Sale of Any Home.
a. General. For the duration of the Affordability Period, Developer, for itself
and any subsequent Owner of a Home, hereby subjects the Property to certain restrictions and
limits the price at which Developer or any Owner of a Home may sell and/or resell the Home and
the persons to whom Developer or any Owner of a Home may sell the Home.
b. Determination of Affordable Sales Price.
DEVELOPER UNDERSTANDS THAT THE DETERMINATION OF THE
AFFORDABLE SALES PRICE CAN BE MADE ONLY AT THE TIME OF THE PROPOSED
TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, PROPERTY TAXES
AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED AND THAT
THE AFFORDABLE SALES PRICE PERMITTED HEREUNDER MAY NOT INCREASE OR
DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY
WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. DEVELOPER FURTHER
ACKNOWLEDGES THAT IN SETTING THE SALES PRICE, THE PRIMARY OBJECTIVE
OF THE AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE
HOUSEHOLDS AT AN AFFORDABLE SALES PRICE. THE AFFORDABLE SALES
PRICE MAY BE LESS THAN THE SALES PRICE OF OTHER SIMILAR PROPERTIES
WHICH HAVE NO RESTRICTIONS.
Developer's Initials 05
882/015610-0046
1106784.02 a0729/ 10 4-
C. Transfer of A Home.
Developer may transfer a Home only in strict accordance with the provisions of
this Declaration. Specifically, during the Affordability Period, Developer may only transfer a
Home to an Eligible Household. Any such transfer may be made only if (i) the sales price for the
Home does not exceed an Affordable Sales Price for said Eligible Household; and (ii) the
Transfer has previously been approved in writing by the Agency.
In order to comply with this Subsection 3(c), Developer must calculate the
Affordable Sales Price for the Proposed Buyer of the Home in accordance with the definitions
set forth in Section 1 of this Declaration. The Developer shall obtain final written approval from
the Agency housing staff on any such calculation.
Developer and Agency contemplate that Developer will sell each Home pursuant
to a purchase and sale agreement ("Developer Purchase Agreement"), and that in connection
with each sale the Proposed Buyer will also be required to execute an affordable housing
agreement that imposes resale restrictions (the "Developer AHA). Developer agrees that the
Developer AHA shall be recorded subsequent, and remain in a junior position, to each of the
Buyer Affordable Housing Documents executed by a Proposed Buyer and recorded against the
applicable Home.
Developer shall provide to Agency, and obtain Agency's approval of, the forms of
the Developer Purchase Agreement, the Developer AHA, and any other document Developer
requires to be executed and/or recorded by a Proposed Buyer (collectively, the "Developer
Affordable Housing Documents") prior to Developer's use or recordation of any of the same.
Developer acknowledges that a violation by an Owner of any of the provisions set forth in any of
the Developer Affordable Housing Documents shall constitute a default under the Buyer
Affordable Housing Documents entitling the Agency, subject to any express limitations set forth
herein, to exercise any of its remedies thereunder.
Developer agrees that the only financial consideration the Developer will receive
from the Eligible Household to whom Developer sells a the Home is the monthly payments to be
made by said Eligible Household under the Buyer Promissory Note executed by the Eligible
Household, the payments under which the Agency agrees to assign to Developer after the
Eligible Household takes title to the Home.
d. Successive Owner's Compliance with this Section. The foregoing
provisions will apply to every successive Transfer during the Affordability Period except that in
the event of a Transfer for which Developer fails to exercise the Developer's Option to Purchase
with respect to the subject Home, the then -Owner shall be responsible for complying with the
requirements of the Developer as set forth in this Section 3.
4. Process to Complete Transfer by Sale of Homes.
Prior to the Transfer by sale of a Home, Developer shall do all of the following:
a. Notice to Agency: Developer shall send to the Agency in care of City of
La Quinta (or its successor), at P.O. Box 1504, La Quinta, CA 92247, the form attached hereto
882/015610-0046
1106784.02 a07/29/10 -5-
and incorporated herein as Exhibit `B" ("Request for Verification of Proposed Buyer") fully
completed and executed by the Developer and the Proposed Buyer; provided, however, that if
Developer currently uses forms that contain all of the same information as the Request for
Verification of Proposed Buyer, Developer may submit to Agency such forms in lieu of the
Request for Verification of Proposed Buyer.
b. Qualification of Proposed Buyer. No Transfer shall occur unless and until
determination is made based on the Request for Verification of Proposed Buyer that the
Proposed Buyer is an Eligible Household who intends to occupy the Home as his/her principal
residence. Each Request for Verification of Proposed Buyer shall include a statement by the
Proposed Buyer certifying its intent with regard to the occupancy of the Home and as to the truth
and accuracy of all information supplied as to the Gross Income (calculated as set forth in 25
Cal. Code of Regs., Section 6914) of the Proposed Buyer. Developer shall certify pursuant to the
Request for Verification of Proposed Buyer the information provided on said request form.
Developer shall be entitled to rely on the information on the Request for Verification of
Proposed Buyer and attachments thereto in making the determination required by this subsection
4(b) unless the Developer has knowledge of, or a reasonable basis for belief as to, the inaccuracy
or falsehood of the Request for Verification of Proposed Buyer.
C. Home Sales Price. The Sales Price for the Homes shall not exceed an
Affordable Sales Price for the Proposed Buyer. In determining the Affordable Sales Price, the
family size of the Proposed Buyer shall be deemed to be 3 persons for each 2 bedroom Home, 4
persons for each 3 bedroom Home, and 5 persons for each 4 bedroom Home.
d. Certificates from Developer and Proposed Buyer. With respect to each
initial sale of a Home and each subsequent sale effected by or through Developer, Developer
shall submit to the Agency, not later than four (4) weeks prior to close of escrow on the sale of
the Home, a certificate that (i) the Developer has made the affirmative determinations required
by Section 4(b) above and (ii) the Sales Price conforms with Section 4(c) above. The Developer
shall concurrently submit to the Agency the Request for Verification of Proposed Buyer and all
attachments thereto and all other documents or material with regard to information required by
Section 4(a) and/or (b) above, whether or not relied on by the Developer. Further, the Developer
and Proposed Buyer each shall certify in writing, in a manner acceptable to the Agency, that the
Transfer shall be closed in accordance with, and only with, the terms of the sales contract and
other documents submitted to and approved by the Agency and that all consideration delivered
by the Proposed Buyer to Developer has been fully disclosed to the Agency. The written
certificate shall also include a provision that, in the event a Transfer is made in violation of the
terms of this Declaration or false or misleading statements are made in any documents or
certificate submitted to the Agency for its approval of the Transfer, the Agency shall have the
right to file an action at law or in equity to seek termination and/or rescission of the sales
contract and/or declare the sale void, notwithstanding the fact that the Transfer may have closed
and become final as between Developer and its Proposed Buyer. In the event Developer fails to
comply with Sections 4(a), 4(b) or 4(c) above, any costs, liabilities or obligations incurred by the
Developer and its Proposed Buyer for the return of any monies paid or received or for any costs
and legal expenses, shall be borne jointly and severally by the Developer and its Proposed Buyer
and such parties shall hold the City and the Agency harmless and reimburse their expenses, legal
882/015610-0046
1106784.02 a0 n9/10 -6-
fees and costs for any action and City and/or Agency take in enforcing the terms of this Section
4(d).
e. Execution of Buyer Affordable Housing Documents. Notwithstanding
anything to the contrary in this Declaration, at close of escrow for the initial sale of a Home to an
Eligible Household, the buyer shall execute a complete set of Buyer Affordable Housing
Documents. The Buyer Affordable Housing Documents require, among other things, that during
the Affordability Period for said Home, (i) the Home must be owner -occupied at all times and
cannot be rented or leased; (ii) the Home may only be Transferred to Developer or to an Eligible
Household at an Affordable Sales Price, and (iii) the maximum permitted sales price for the
Home may be less than fair market value. For each subsequent transfer of a Home to an Eligible
Household, said buyer shall execute an assignment and assumption agreement, in a form
approved by Agency, expressly assuming all the original buyer's obligations under the Buyer
Affordable Housing Documents executed by said original buyer.
f. Delivery of Documents. Upon the close of the proposed Transfer, the
Developer shall provide the Agency with a certified copy of the recorded documents, a copy of
the final sales contract, settlement statement, escrow instructions, all certificates required by this
Section 4 and any other documents which the Agency may request.
DEVELOPER UNDERSTANDS THAT THE DETERMINATION OF THE
AFFORDABLE SALES PRICE 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
BUYER 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. DEVELOPER FURTHER ACKNOWLEDGES
THAT IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE
AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE
HOUSEHOLDS AT AN AFFORDABLE SALES PRICE.
g. Developer's Option to Purchase. Notwithstanding anything herein to the
contrary and as further set forth in the Buyer Affordable Housing Agreement, during the
Affordability Period for each Home, commencing on the earlier of the date the then -Owner of a
Home has notified Developer and Agency of its desire to sell the Home or the date the then -
Owner places the Home for sale ("Option Commencement Date"), and continuing for a period of
sixty (60) days after the Option Commencement Date, the Developer shall have an option to
purchase the Home from the then -Owner, at an Affordable Sales Price, for the sole purpose of
locating an Eligible Household and reselling the Home thereto at an Affordable Sales Price
("Developer's Option to Purchase"). Developer shall be obligated to exercise Developer's
Option to Purchase, and shall so exercise by delivery of written notice to the then -Owner and to
Agency, and shall conclude the purchase from the Owner and the resale to an Eligible Household
within forty-five (45) days after Developer delivers Developer's written notice to Agency and to
Owner. Upon Developer's exercise of Developer's Option to Purchase, Developer shall
expressly assume, pursuant to an assignment and assumption agreement that has been approved
182/015610-0046
1106784.02 a07/29/10 -7-
by the Agency's legal counsel, the Homebuyer Loan provided to the Owner by Agency. Upon
Developer's resale of the Home to an Eligible Household at an Affordable Sales Price, the
Developer shall transfer the Homebuyer Loan to said Eligible Household. If Developer fails to
exercise Developer's Option to Purchase during the time specified herein, then commencing on
the expiration of such time period, Agency shall have an option to purchase the Home from the
then -Owner, at an Affordable Sales Price, for purposes of locating an Eligible Household and
reselling the Home to said buyer ("Agency's Option to Purchase"). Agency shall exercise
Agency's Option to Purchase by delivery of written notice to Developer and to the Owner.
Agency's Option to Purchase shall continue until such time as the Owner enters into a binding
purchase and sale agreement to sell the Home to an Eligible Household.
h. Developer's Continuing Obligations to Qualify Proposed Buyers.
Developer acknowledges that Agency has entered into the AHA and this Declaration with the
expectation that Developer shall affirmatively manage and ensure the continued affordability of
each of the Homes during the Affordability Period, whether or not Developer owns any portion
of the Property. In furtherance thereof, Developer shall be responsible, during the Affordability
Period for each Home, to actively assist any Owner of said Home to locate, and resell the Home
to, an Eligible Household. Such assistance shall include, but not be limited to, completing and
submitting to Agency all documentation required herein for the transfer of a Home, and
performing all tasks necessary to qualify proposed buyers.
The covenants contained in this Section 4 shall run with the land and shall automatically
terminate and be of no further force or effect upon the Expiration Date set forth in Section 19
hereof.
5. Nondiscrimination Covenants
a. General. Developer covenants 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 any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as
those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale,
lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any part
thereof, nor shall Developer, 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 Site, or any part thereof. The foregoing covenants shall run with the land.
b. Nondiscrimination Clauses in Agreements. Developer agrees for itself
and any successor in interest that Developer shall refrain from restricting the rental, sale, or lease
of any portion of the Property, or contracts relating to the Property, on the basis of race, color,
creed, religion, sex, marital status, ancestry, or national origin of any person. All such deeds,
leases or contracts shall contain or be subject to substantially the following nondiscrimination or
nonsegregation clauses:
i. 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
892/015610-0046
1106784.02 07/29/10 '8-
through them, that there shall be no discrimination against or segregation of, any person or group
of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein
conveyed, nor shall the grantee or any person claiming under or through him or her, establish or
permit any 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
premises herein conveyed. The foregoing covenants shall run with the land."
ii. 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: "That there shall be no discrimination against or segregation of any person or group
of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
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."
iii. In contracts pertaining to the realty: "There shall be no
discrimination against or segregation of, any person or group of persons on account of any basis
listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are
defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease,
transfer, use, occupancy, tenure, or enjoyment of the premises which are the subject of this
agreement, nor shall the grantee or any person claiming under or through him or her, establish or
permit any 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
premises herein conveyed. The foregoing covenants shall run with the land."
Nothing in this Section 5 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 Section 5 shall
run with the land in perpetuity.
6. Maintenance of Property
Developer 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:
(1) no lawns with grasses in excess of six (6) inches in height;
882/015610-0046
1106784.02 a07/29/10 -9-
(2) no untrimmed hedges;
(3) no trees, shrubbery, lawns, and other plant life dying from lack of
water or other necessary maintenance;
and
(4) no trees and shrubbery 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, including:
(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
areas.
(4) no vehicles parked or stored in areas other than approved parking
(c) No buildings may be left in an unmaintained condition, including:
(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: and
(5) no graffiti.
/
882/015610-0046
1106784.02 a07/29/10
_10_
7. General Use Provisions.
a. No Renting Homes. Each Home shall be used as the principal residence
of the Home's Owner and for no other purpose. No Owner shall be permitted to rent or lease its
Home. Developer shall ensure that the Homes remain owner -occupied.
b. Occupancy Standards. A Home may not be occupied by more than the
total number of persons allowed pursuant to the general requirements of the United States
Department of Housing and Urban Development which as of the date of this Declaration is equal
to the total number of bedrooms in the Home multiplied by 2, plus 1 (e.g., a two -bedroom Home
would be limited to occupancy by 5 persons and a three -bedroom Home would be limited to
occupancy by 7 persons). Each Owner shall, upon demand by Agency or Developer, be required
to submit an affidavit of occupancy verifying the Owner's compliance with this Section 7.
C. Nuisances. No obnoxious, illegal, or offensive activities shall be carried
upon or in any Home, or upon any part of the Property, nor shall anything be done thereon which
may be or may become an annoyance or a nuisance to, or which may in any way interfere with
the quiet enjoyment by, each of the Owners of his or her respective Home, or which will impair
the structural integrity of any building.
8. Annual Reports.
On or before August 1 of each year, Developer, at its expense, shall submit to Agency the
annual report required pursuant to Health and Safety Code Section 33418, as the same may be
amended from time to time, in the form prescribed by Agency, along with such other information
as Agency may reasonably require.
9. Property Taxes.
Developer and Developer's successors in interest in and to a Home shall not seek
exemption from the payment of property taxes and assessments for any portion of the Property or
take any other action that would result in any portion of the Property being exempt from the
imposition of property taxes and assessments. In addition, in the event any portion of the
Property is exempt from the payment of property taxes, Developer shall take all action necessary
to cause said portion to be subject to the imposition of property taxes and assessments.
Notwithstanding the.forgoing, Developer and Developer's successors in interest in and to each
Home shall have the right to appeal such obligation to the City Council of the City of La Quinta.
10. Indemnification.
Developer shall defend, indemnify and hold harmless Agency and City and their
respective officers, officials, agents, employees, representatives, and volunteers (the
"Indemnified Parties") from and against any loss, damage, costs, expenses, liability, claim, or
judgment relating in any manner to the Property or Developer's performance under this
Declaration, except to the extent caused by the sole negligence or willful misconduct of an
Indemnified Party.
882/015610A046
1106784,02 a0729/10
11. Insurance.
Developer shall procure and maintain the insurance set forth in the AHA for the times set
forth therein. Upon Developer's Transfer of a Home to an Eligible Household, Developer shall
require the Eligible Household to procure and maintain an all-risk property insurance policy
insuring his or her Home in an amount equal to the full replacement value of the structures
located thereon, with no coinsurance penalty provision, in a form, content and with companies
approved by Agency. Agency and City shall be a loss payee under such policy or policies and
such insurance shall contain a statement of obligation on behalf of the carrier to notify Agency of
any material change, cancellation or termination of coverage at least thirty (30) days in advance
of the effective date of such material change, cancellation or termination. In no event shall the
limits of any policy be considered as limiting the liability of Developer or an Owner, as
applicable, hereunder or limiting the indemnity obligation of Developer set forth in Section 10 of
this Declaration.
12. Repair of Damage.
If any improvements on the Property shall be totally or partially destroyed or rendered
wholly or partly uninhabitable by fire or other casualty while under the ownership of Developer,
Developer shall promptly proceed to obtain insurance proceeds and take all steps necessary to
begin reconstruction and, immediately upon receipt of insurance proceeds, to promptly and
diligently commence the repair or replacement of the improvements to substantially the same
condition as the improvements are required to be maintained in pursuant to this Declaration,
whether or not the insurance proceeds are sufficient to cover the actual cost of repair,
replacement, or restoration, and the Developer shall complete the same as soon as possible
thereafter so that the Project can continue to be operated and occupied as an affordable housing
project in accordance with this Declaration. In no event shall the repair, replacement, or
restoration period exceed six (6) months from the date or the destruction unless Agency's
Executive Director, in his or her sole and absolute discretion, approves a longer period of time.
13. Defaults and Remedies.
a. Defaults. Failure or delay by any party to perform any term or provision
of this Declaration which is not cured within thirty (30) days after receipt of notice from the
other party specifying the default (or 5 days with respect to certain defaults regarding inadequate
maintenance of the Property described in Section 6) constitutes a default under this Declaration;
provided, however, if such default is of the nature requiring more than thirty (30) days to cure,
the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30)
day period, and thereafter diligently pursuing such cure to completion. Except as required to
protect against further damages, the injured party may not institute proceedings against the party
in default until thirty (30) days after giving such notice. Failure or delay in giving such notice
shall not constitute a waiver of any default, nor shall it change the time of default.
b. Institution of Legal Actions. In addition to any other rights or remedies,
including without limitation Agency's rights under the Agency Deed of Trust, any party may
institute legal action to cure, correct, or remedy any default, to recover damages for any default,
or to obtain any other remedy consistent with the purposes of this Declaration; provided,
882/015610-0046
1106784.02 a0729nO -12-
however, that notwithstanding anything in the foregoing to the contrary, in no event shall
Developer be entitled to obtain monetary damages of any kind from Agency, including but not
limited to damages for economic loss, lost profits, or any other economic or consequential
damages of any kind. Such legal actions must be instituted and maintained in the Superior Court
of the County of Riverside, State of California, or in any other appropriate court in that county.
C. Developer's Obligations Secured by Agency Deed of Trust. Until such
time as the Agency Deed of Trust is reconveyed in full, Developer's performance of its
obligations under this Declaration is secured by the Agency Deed of Trust. The Agency Deed of
Trust will be partially conveyed as to each Home upon Developer's initial Transfer of the Home
to an Eligible Household in accordance with the AHA.
d. Rights and Remedies are Cumulative. The rights and remedies of the
parties are cumulative, and the exercise by any party of one or more of its 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 any other party.
14. Covenants Do Not Impair Liens.
No violation or breach of 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 instrument.
15. Conflict with Other Laws; Severability.
In the event that any provision of this Declaration is found to be contrary to applicable
law, then the contrary provisions of this Declaration 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 to Eligible Households at an Affordable Sales Price.
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.
16. Covenants for Benefit of City and Agency.
This Declaration is designed to create equitable servitudes and covenants running with
the Property, in accordance with the provisions of Civil Code Section 1468. The covenants,
conditions, restrictions, reservations, equitable servitudes, liens and charges set forth herein shall
run with the Property and shall be binding upon all persons having any right, title or interest in
the Property, or any part thereof, their heirs, successive owners and assigns; shall inure to the
benefit of the Agency and the City and their successors and assigns, shall be binding upon
Developer, its successors and assigns and successors in interest; and may be enforced by Agency
and City and their successors and assigns. Developer hereby declares its understanding and
intent that the burden of the covenants set forth herein touch and concern the land and that
882/01561M046.
1106794.02 aO7/29/10 -13-
Developer's interest in the Property is rendered less valuable thereby. Developer hereby further
declares its understanding and intent that the benefit of such covenants touch and concern the
land by enhancing and increasing the enjoyment and use of the Property by Eligible Households,
and by furthering the public purposes for which the Agency was formed.
In amplification and not in restriction of the provisions set forth hereinabove, it is
intended and agreed that Agency and City each are deemed a beneficiary of the agreements and
covenants provided herein both for and in its own right and also for the purposes of protecting
the interests of the community. All covenants without regard to technical classification or
designation shall be binding for the benefit of Agency and City and such covenants shall run in
favor of Agency and City for the entire period during which such covenants shall be in force and
effect, without regard to whether Agency or City is or remains an owner of any land or interest
therein to which such covenants relate. However, all such covenants and restrictions shall be
deemed to run in favor of all real property owned by the City and Agency which real property
shall be deemed the benefited property of such covenants. Furthermore, all of the covenants,
conditions, and restrictions contained herein shall also constitute easements in gross running in
favor of the Agency and City. Agency and City shall have the right, in the event of any breach
of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any
action at law or suit in equity or other proper proceedings to enforce the curing of such breach of
agreement or covenant.
17. Developer's Books and Records.
Agency, upon reasonable notice to Developer, shall have the right at all reasonable times
to inspect the books and records of Developer as pertinent to the purposes of this Declaration.
Developer agrees to make any and all financial information regarding the Eligible Households to
whom it has sold Homes available to any person or entity performing an audit of the Agency's
activities. Developer shall maintain all such financial information for a period of seven (7) years
after receipt of the same.
18. Notices. Demands and Communications
Written notices, demands and communications between the Developer and the Agency
shall be sufficiently given if (i) delivered by hand, (ii) delivered by reputable same -day or
overnight courier service that provides a receipt showing date and time delivery, or
(iii) dispatched by registered or certified mail, postage prepaid, return receipt, requested, as
follows:
Developer: Habitat for Humanity of the Coachella Valley, Inc.
P.O. Box 11738
Palm Desert, CA 92255
Attn: Executive Director
copy to:
982/015610-0046
1106784.02 a07/29/t0 -14-
Agency: Notices Delivered by U.S. Mail:
La Quinta Redevelopment Agency
P.O. Box 1504
La Quinta, CA 92247
Phone No.: 760-777-7108
Facsimile No.: 760-777-7101
Attention: Executive Director
Notices Delivered Personally or by Courier:
La Quinta Redevelopment Agency
78-495 Calle Tampico
La Quinta, California 92253
Phone No.: 760-777-7108
Facsimile No.: 760-777-7101
Attention: Executive Director
copy to: Rutan & Tucker, LLP
611 Anton Blvd., Suite 1400
Costa Mesa, CA 92626
Attn: M. Katherine Jenson, Esq.
Such addresses for notice may be changed from time to time upon notice to the other party
Any written notice, demand or communication shall be deemed received upon receipt if
delivered by hand, or by same -day or overnight courier, and shall be deemed received on the
third (3rd) calendar day from the date it is postmarked if delivered by registered or certified mail.
19. Expiration Date.
This Declaration shall automatically terminate and be of no further force or effect as to
each of the Homes as of forty-five (45) years from the date the Developer first sells the Home to
an Eligible Household.
20. Assgnment.
a. Assignment by Agency. Agency shall have the right to assign all or part
of its interest in this Declaration to a third party for the purpose of ensuring compliance with this
Declaration.
b. Assignment by Developer. The qualifications and identity of Developer
are of particular concern to Agency. It is because of those qualifications and identity that
Agency has provided financial assistance to Developer and entered into this AHA and this
Declaration with Developer. Accordingly, Developer shall not, whether voluntarily,
involuntarily, or by operation of law, and except as permitted in this Section 20.b, undergo any
significant change in ownership or assign all or any part of its obligations hereunder, without
Agency's prior written approval. Developer shall deliver written notice to Agency requesting
approval of any assignment. In considering whether it will grant approval to any assignment by
882/015610-0046
1106784,02 a07/29/10 -15-
Developer, Agency shall consider factors such as the proposed assignee's experience and
expertise in the operation of similar projects. Agency's approval of an assignment shall be made
in Agency's sole and absolute discretion. If Agency approves an assignment, the assignment
shall not be effective unless and until the proposed assignee executes and delivers to Agency an
agreement in a form satisfactory to Agency's legal counsel assuming the obligations of the
assignor which have been assigned. Nothing in this Section 20.b is intended to restrict
Developer from transferring a Home to an Eligible Household in accordance with the AHA and
this Declaration.
21. Attorneys' Fees and Costs.
If any party to this Declaration commences an action against any other party to this
Declaration arising out of or in connection with this Declaration, the prevailing party shall be
entitled to recover reasonable attorneys' fees, expert witness fees, costs of investigation, and
costs of suit from the losing party.
22. Entire Agreement, Waivers, and Amendments.
This Declaration, the AHA, and the agreements attached to the AHA, contain the entire
agreement between the parties relating to the subject matter hereof, and supersede all
negotiations and previous agreements between the parties with respect to all or part of the subject
matter hereof. All waivers of the provisions of this Declaration must be in writing and signed by
the appropriate authorities of the party to be charged. A waiver of the breach of the covenants,
conditions or obligations under this Declaration by any party shall not be construed as a waiver
of any succeeding breach of the same or other covenants, conditions or obligations of this
Declaration. Any amendment or modification to this Declaration must be in writing and
executed by the appropriate authorities of Agency and (i) Developer to the extent the
modification affects the rights or obligations of Developer under this Declaration, (ii) the
Association to the extent the modification affects the rights or obligations of the Association
under this Declaration, and (iii) any Owners of the Homes whose rights or obligations under this
Declaration are affected by the modification.
23. Interpretation; Governing Law.
This Declaration shall be construed according to its fair meaning and as if prepared by
both of the parties hereto. This Declaration shall be construed in accordance with the internal
laws of the State of California.
24. Agency Approvals and Actions.
Agency shall maintain authority of this Declaration and the authority to implement this
Declaration through the Executive Director (or his or her duly authorized representative). The
Executive Director shall have the authority to make approvals, issue interpretations, execute
documents, waive provisions, and/or enter into certain amendments of this Declaration on behalf
of Agency so long as such actions do not materially or substantially change the uses or
development permitted on the Property or add to the costs incurred or to be incurred by Agency.
All other material and/or substantive interpretations, waivers, or amendments shall require the
consideration, action and written consent of the Agency Board.
882/015610-0046
1106794.02 a07/29/10 -16-
25. Third Party Beneficiary.
City is an intended third party beneficiary of this Declaration and shall have the right but
not the obligation to enforce the provisions hereof.
26. Counterparts
This Declaration may be executed in counterparts each of which, when both Developer
and Agency have signed this Declaration, shall be deemed an original and shall constitute one
and same instrument.
[end — signature page follows]
982/015610-0046
1106784.02 a07/29/10 -17-
IN WITNESS WHEREOF, the Agency and Developer have caused this instrument to be
executed on their behalf of their respective officers hereunto duly authorized as of the date set
forth above.
RU N yr
UR, LLP
7
/Aoffclrneys for the
La Quinta Redevel6pment Agency
"AGENCY"
LA QUINTA
By: REDEVEL/OPME AGENCY,
apko , corporat`/p s
/:
Its: Executive Director
"DEVELOPER"
HABITAT FOR HUMANITY OF THE
COACHELLA VALLEY, INC., a California
nonprofit public benefitcorporation
Dated 2010 By: V V
Its: SI W � S, 1M�wtrvG, � fLeWw?.et2
Dated / 0 , 2010 By:
Its: / �� / AL cs k4le of l-
882/015610-0046
1106784.02 a07/29/10 -18-
State of California
County of Riverside
On �! 1 e 010 before me, , pZ 4 d} 1 y r4�,
(ise name and title of th officer) 11
Notary Public, personally appeared ca}o w 3• akb-� ,
who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct. PNvtus MadEY
WITNESS my hand and official seal. 1N
RWeiYde CouNy
WtyComm.oetla�ol
Signature (Seal)
State of California
County of Riverside
On 'g/B 19,010 , before me,
(inserQname and tidg of thaoff er) Q
Notary Public, personally appeared 'qG—A u�
who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
cs
(Seal)
-------------
M4VM NNVIEy
CammpYon M 109779A
WOtory K"c • CaNIM.
RNenue County r
982/015610-0046 —4w1� I11 S Mar, (ey
1106784.02 a07129/10 -19- 1
*A.9-7749
State of California
County of Riverside
On OS' 2-3• Zola before me. S;USAIJ HAVSELS. No`i�A90 ,
(insert name and title of the officer)
Notary Public, personally appeared I tfa MA5 C7Eh46d . ,
who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signaturewy1 YtiVQ�
I,- 18�N�t�q
882/015610-0046
1106784,02.07/29/10 -20-
1rr� t '.S
(Seal)
SVS4N 1421gels
# 124 qV-19
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
Real property in the City of La Quinta, County of Riverside, State of California,
described as follows:
LOTS 13 AND 14 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;
EXCEPTING THEREFROM ONE -SIXTEENTH OF ALL COAL, OIL, GAS
AND OTHER MINERAL DEPOSITS IN SAID LAND, AS RESERVED IN
THE PATENT FROM THE STATE OF CALIFORNIA, RECORDED JULY 26,
1934 IN BOOK 182 PAGE 463 OF OFFICIAL RECORDS OF RIVERSIDE
COUNTY. CALIFORNIA.
APN: 774-044-012-3 and 774-044-011-2
182/015610-0046
1106/84 02 a0W29/10 -21-
EXHIBIT "B"
REQUEST FOR VERIFICATION OF PROPOSED BUYER
THIS FORM MUST BE DELIVERED TO THE AGENCY BEFORE PROCEEDING WITH
ANY TRANSFER OF A HOME.
Date:
La Quinta Redevelopment Agency
P.O. Box 1504
La Quinta, CA 92247
Attn: Project Officer
Re: Request for Verification of Proposed Buyer
To Whom It May Concern:
Habitat for Humanity ("Habitat") desires to transfer the Home located at
(the "Property") and by this letter is requesting the
Agency to verify that the proposed buyer is a "Eligible Household" (as that term is defined in the
Affordable Housing Agreement and Declaration of Covenants, Conditions and Restrictions).
The Proposed Buyer is:
Name:
Current
Address:
Telephone
Number:
2. The terms of the proposed transfer are
(a) Sales price of $ . This sales price is based on the lesser of
(i) Fair market value; or
(ii) The maximum price which results in an Affordable Sales Price. 11
882/015610-0046
1106/84.02 a07/29/10 -22-
i
IN ORDER TO ANSWER QUESTION 2(a) YOU MUST CALCULATE THE
PROPOSED SALES PRICE BASED ON THE HOUSING COST LIMITATIONS SET FORTH
IN CALIFORNIA HEALTH & SAFETY CODE SECTION 50052.5, TAKING INTO
CONSIDERATION ALL ITEMS LISTED IN THE DEFINITION OF MONTHLY HOUSING
COST.
(b)
Price of any personal property being sold by Habitat to the proposed buyer:
. (If none, so state.)
(c) The price of $ to be paid by the proposed buyer for any services of
Habitat. (If none, so state).
(d) All other amounts of money or other consideration, if any, concerning the
Property or any other matter to be paid by the proposed buyer to Habitat: $ (If none,
so state.)
(e) Sources of payment of sales price:
Sales price $
Cash down payment $
1 st loan $
2nd loan $
Other (describe) $_
Total $
(f) The financing obtained by the proposed buyer to purchase the Property is as follows:
1 st Loan:
Loan amount $
Monthly payments: $
Interest rate
If variable interest, describe adjustment mechanism:
Due date:
Balloon payment amount:
Points and fees:
882/015610-0046
1106784 02 a07/29/10 -23-
Lender:
Lender's address:
2nd Loan:
Loan amount: $
Monthly payments: $
Interest rate
If variable interest, describe adjustment mechanism:
Due date:
Balloon payment amount:
Points and fees:
Lender:
Lender's address:
Other Loans: (describe, if none, so state)
(g) The Monthly Housing Cost to be paid by the proposed transferee:
1 st loan monthly payment: $
2nd loan monthly payment: $
Other loans monthly payment: $
Taxes and assessments (1/12 of yearly taxes and $
assessments):
Insurance (1/12 of yearly premium): $
Homeowner's dues: $
Total: $
3. The proposed buyer represents, warrants and covenants the following:
(a) The Property will be the principal residence of the proposed transferee.
882/015610-0046 _.L4_
1106/84.02 s0]29/10
(b) The combined maximum annual income for all household members of the
proposed buyer is $ . (This figure must include all sources of income.)
(c) The proposed buyer will deliver to the Agency a signed financial statement on a
form acceptable to the Agency.
4. The proposed buyer's household consists of the following persons who will reside in the
Property:
Adults (18 or over) - [name of each]:
Minors (under 18) [name of each]:
5. The proposed transferee must submit to Habitat, on a form available from Habitat, an
income certification so Habitat may determine if the proposed buyer is an Eligible Household.
6. A true and correct copy of the purchase and sale or other agreement between Habitat and
the proposed buyer is attached hereto.
882/015610-0046
1106784,02 a07/29/10 -25-
I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.
HABITAT FOR HUMANITY:
Date
signature
signature
print name
print name
street address
telephone
city
state zip code
PROPOSED BUYER:
Date
signature
signature
print name
print name
street address
telephone
city
state zip code
$82/015610-0046
1106784,02.07/29/10 -26-
1
Habitat for Humanity Certification
Based on the Proposed Buyer's Certificate above, and all documents attached hereto, Habitat
hereby certifies that:
(1) Proposed Buyer is an Eligible Household; and
(2) The purchase price to be paid by the Proposed Buyer is an Affordable Sales Price.
[Capitalized terms used above are defined in the Agreement to which this certificate is attached.]
OWNER:
[Name]
Date:
882/015610-0046
1106784 02 WW29/10 -27-
ATTACHMENT NO. 6
RELEASE OF CONSTRUCTION COVENANTS
(See following document)
11 11067 4,02.0ffi ATTACHMENT NO. 6
1106]84.02 a0]/29/10
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
LA QUINTA REDEVELOPMENT AGENCY
P.O. Box 1504
La Quinta, CA 92247
Attention: Executive Director
(Space Above for Recorder's Use)
Exempt from Recordation Fee per Gov. Code § 27383
RELEASE OF CONSTRUCTION COVENANTS
This RELEASE OF CONSTRUCTION COVENANTS ("Release") is made this _
day of , 2010, by the LA QUINTA REDEVELOPMENT AGENCY, a
public body, corporate and politic ("Agency"). in favor of HABITAT FOR HUMANITY OF
THE COACHELLA VALLEY, INC., a California nonprofit public benefit corporation
("Developer").
RECITALS
A. Developer is the owner of that certain real property located in the City of La
Quinta, County of Riverside, State of California, more particularly described in the legal
description attached hereto as Exhibit "A" ("Site").
B. On or about , 2010, Agency and Developer entered into that
certain Affordable Housing Agreement ("AHA") which provides for Developer to develop two
affordable single family residential dwelling units on the Site, more particularly described
therein as the "Project."
C. Pursuant to the AHA, Agency is required to furnish Developer with this Release
upon request by Developer after completion of construction of the Project.
D. The issuance by Agency of this Release shall be conclusive evidence that
Developer has complied with the terms of the AHA pertaining to the construction of the Project.
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated
herein by this reference, the parties hereto agree as follows:
1. As provided in the AHA, Agency does hereby certify that the construction of the
Project has been satisfactorily performed and completed, and that such development and
construction work complies with the AHA.
2. This Release does not constitute evidence of compliance with or satisfaction of
any obligation of Developer to any holder of a mortgage or any insurer of a mortgage security
money loaned to finance the work of construction of improvements and development of the Site,
or any part of thereof.
882/015610-0046 _
1106784. 02.0729/ 10 _ 1
3. This Release is not a notice of completion as referred to in Section 3093 of the
California Civil Code.
4. This Release does not terminate any other agreement or document executed by
Developer in connection with the AHA, including, without limitation, that certain Affordable
Housing Agreement and Declaration of Covenants, Conditions and Restrictions Agreement
recorded on , as Instrument No. , in the Official Records of the
County of Riverside (the "Official Records") and that certain Deed of Trust recorded on
, as Instrument No. in the Official Records, both of which
shall survive recordation of this Release.
IN WITNESS WHEREOF, Agency has executed this Release as of the date set forth
above.
ATTEST:
Agency Secretary
LA QUINTA REDEVELOPMENT AGENCY
By:
THOMAS P. GENOVESE, Executive Director
CONSENT TO RECORDATION
HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC., a California nonprofit
public benefit corporation, owner of the Site described herein, hereby consents to the recordation
of this Release against the Site.
HABITAT FOR HUMANITY OF THE
COACHELLA VALLEY, INC., a California
nonprofit public benefit corporation
Date: By:
Its:
Its:
882/015610-0046 _
1106 94.02 a09/29/ 10 _2
State of California
County of Riverside
On , before me,
name and title of the officer)
Notary Public, personally appeared
who 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.
1 certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
State of California
County of Riverside
On
before me,
name and title of the officer)
Notary Public, personally appeared
who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
882/015610-0046
1106784.02 a07/29/10 '3'
State of California
County of Riverside
On
before me,
(insert name and title of the officer)
Notary Public, personally appeared
who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
(Seal)
892/015610-0046 _
1106784 02.07129/10 _4
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
Real property in the City of La Quinta, County of Riverside, State of California,
described as follows:
LOTS 13 AND 14 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;
EXCEPTING THEREFROM ONE -SIXTEENTH OF ALL COAL, OIL, GAS
AND OTHER MINERAL DEPOSITS IN SAID LAND, AS RESERVED IN
THE PATENT FROM THE STATE OF CALIFORNIA, RECORDED JULY 26,
1934 IN BOOK 182 PAGE 463 OF OFFICIAL RECORDS OF RIVERSIDE
COUNTY, CALIFORNIA.
APN: 774-044-012-3 and 774-044-011-2
882/015610-0046 _
1106784.02 a07/29/10 -j
ATTACHMENT NO. 7
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
(See following document)
882/015610-0046 ATTACHMENT NO. 7
1106984.02 a09/29/ 10
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
La Quinta Redevelopment Agency S R
P.O. Box 1504
La Quinta, CA 92247
Attn: RDA Secretary / City Clerk M A
DOC # 2010-0414648
08/30/2010 08:OOA Fee:33.00
Page 1 of 7
Recorded in Official Records
County of Riverside
Larry W. Ward
Assessor, County Clerk & Recorder
111111111111111111111111111111111111111 I 1111111911111
tE SIZE DA MISC LONG RFD COPY
426 PCOR NCOR SMFI NCHGexgm
T: CTY UNI LA—t
g Fee Pursuant to Government Code & 2738
NOTICE OF AFFORDABILITY RESTRICTIONS
ON TRANSFER OF PROPERTY
Important notice to owners, purchasers, tenants, lenders, brokers, escrow and
title companies, and other persons, regarding affordable housing restrictions on
the real property described in this Notice: Affordable housing restrictions have
been recorded with respect to the property described below (referred to in this
Notice as the "Property") which require owner occupancy of the Property and
restrict the price and terms at which the Property may be sold. These restrictions
may limit the sales price of the Property to an amount which is less than the fair
market value of the Property. These restrictions limit the income of persons and
households who are permitted to purchase the Property.
Title of Document Containing Affordable Housing Restrictions:
Affordable Housing Agreement and Declaration of Covenants, Conditions and
Restrictions ("Agreement').
Parties to Agreement: Habitat For Humanity of the Coachella Valley, Inc.,
a California nonprofit public benefit corporation ("Owner"), and the La Quinta
Redevelopment Agency, a public body, corporate and politic.
The Agreement is recorded concurrently with this Notice, in the Official
Records of Riverside County.
Legal Description of Property: See Exhibit "A" attached hereto and
incorporated herein by this reference.
182/015610-0046
1106784.02 a07/29/10 -1-
Property Location: NE Corner of Calle Monterey and Avenida Alvarado.
Assessor's Parcel Numbers of Property: 774-044-011; and 774-044-012.
Summary of Agreement:
o The Agreement requires the Owner to develop the Property with two
single family detached dwelling units and to sell the units to
households whose annual income does not exceed the qualifying
limits under California law for either "lower income households" or
"very low income households" as established by HUD, and as
published periodically by HCD. The units are required to be sold at a
restricted sales price that results in the buyer paying no more than an
"affordable housing cost," as that term is defined in Health and Safety
Code Section 50052.5.
o The Agreement imposes the same income and price restrictions on all
subsequent resales of each unit during the term thereof.
o The term of the Agreement with respect to each unit is 45 years,
commencing on the date of the first sale by Owner to a qualified
buyer and terminating 45 years from said date.
This Notice does not contain a full description of the details of all of the
terms and conditions of the Agreement. You will need to obtain and read the
Agreement to fully understand the restrictions and requirements which apply to the
Property.
This Notice is being recorded and filed in compliance with Health and
Safety Code Section 333343(f)(3) and (4), and shall be indexed against the
Agency and the Owner of the Property.
[signatures on next page]
882/015610-0046
1106794.02 a07/29/10
"Agency"
LA QUINTA REDEVELOPMENT
AGENCY, a public body, corporate and
pBolit:
2010
Date: �3 , y.!
Executive Director
��
r
882/015610-0046
1106784.02 a07/29/10 -3-
State of California )
County of Riverside )
On OS• )-olo , before me, Sc(SAt MAYSUS , Notary Public,
(here insert name and title of the officer)
personally appeared (Ho M A S P C 4 0 V65 C
who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
(�wrnmvt �-vt l 4f t°F7�
182/015610-0046
1106784.02 a07/29/10 '4'
40
(seal)
BLIMI MAYlE
CennnNeks s 16au7e
Mown Pdft • Ce kwh
Rker" CMW
M r Comm. Ez lree r 11 M3
Sos4K M41.346
� 124447 4
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
Real property in the City of La Quinta, County of Riverside, State of California,
described as follows:
LOTS 13 AND 14 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;
EXCEPTING THEREFROM ONE -SIXTEENTH OF ALL COAL, OIL, GAS
AND OTHER MINERAL DEPOSITS IN SAID LAND, AS RESERVED IN
THE PATENT FROM THE STATE OF CALIFORNIA, RECORDED JULY 26,
1934 IN BOOK 182 PAGE 463 OF OFFICIAL RECORDS OF RIVERSIDE
COUNTY. CALIFORNIA.
APN: 774-044-012-3 and 774-044-011-2
882/015610-0046
1106784.02 a07/29/10 -5-
CONSENT TO RECORDATION
HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC., a
California nonprofit public benefit corporation ("Owner"), owner of the fee interest
in the real property legally described in Exhibit "A" hereto, hereby consents to the
recordation of the foregoing Notice of Affordability Restrictions on Transfer of
Property against said real property.
State of California )
County of Riverside )
On 8//e�2D►D before me,
"Owner"
By:
Its: S 1 fa%%/ EA�+ 11 V1n11- -L 2 I t� ec 4 0441—
By: /4Z
Its:
Public,
(here insert nanle and title of the oflicerQ -
personally appeared cS{ sya w 3. K& SLAD
who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS m hand and official seal.
Signature
news MM s
l)
cansMlaon 016"M
noun vtmsc • ca naaea
ftenM Carey
My Ca -ED*N"sOct 10.201
��111's Ma,lti
Itom 779(,e
882/015610-0046
1106784.02 a07129/10 _6_
State of California )
County of Riverside )
On 4 I W /'*"-DI O , before me, Sa, a : _1jA_►Notary Public,
(here inserdname and title oNthe otri=
personally appeared S: t,Z�0'q a-. ,
who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California
that the foregoing paragraph is true and correct.
WITNESS my hand and official seal. °XRVjW
CommWbn A 10"M
No1Gy Ktft - Comm"
RNartlo9 COuft
Lei
pCamm. E>tpkea Oct 16, t01
Signature ,JZQua
16cMI' 10 6 (seal)
8821015610-0046
1106784.02 a07/29/10 'T
ATTACHMENT NO. 8
SOURCES AND USES OF FUNDS
TOTAL FUNDING SOURCES (BOTH
HOMES)
Land (currently owned by HFH)
$50,000
Permits/Fees (HFH)
43,200
Building Plans (HFH)
18,500
Grants (HFH)
30,414
Material Donations (HFH)
24,000
Sweat Equity
8,400
La Quinta Redevelopment Agency
174,940
TOTAL FUNDING SOURCES
$349,454
TOTAL USES (BOTH HOMES)
Land
$50,000
General Requirements
91,334
Site Construction
25,800
Concrete
19,200
Masonry
15,000
Woods and Plastics
47,900
Thermal and Moisture
13,150
Doors and Windows
16,200
Finishes
41,380
Special Ties
750
Equipment
400
Mechanical
21,540
Electrical
6,800
TOTAL USES
$349,454
182/015610-0046
1106784.02 a07/29/10 ATTACHMENT NO. 8
PROMISSORY NOTE
$174,940 La Quinta, California
FOR VALUE RECEIVED, HABITAT FOR HUMANITY OF THE COACHELLA
VALLEY, INC., a California nonprofit public benefit corporation ("Borrower") promises to pay
to LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic
("Agency") at 78-495 Calle Tampico, La Quinta, California 92253, or at such other address as
Agency may direct from time to time in writing, the sum of One Hundred Seventy -Four
Thousand Nine Hundred Forty Dollars ($174,940) (the "Note Amount"), plus accrued interest (if
applicable), and other charges owing hereunder, or such lesser amount which shall from time to
time be owing hereunder pursuant to the terms of this Note.
Reference is made to:
(a) The Affordable Housing Agreement between Borrower and Agency dated
��23/0 2010, as may be amended from time to time ("AHA"),
which sets forth terms and conditions for Borrower's redevelopment of
that certain real property located in the City of La Quinta, County of
Riverside, State of California, more particularly described in the AHA as
the "Site." All terms not otherwise defined herein shall have the meaning
given in the AHA:
(b) The Affordable Housing Agreement and Declaration of Covenants,
Conditions and Restrictions between Agency and Borrower, recorded
against the Site in the Office of the Riverside County Recorder on or about
the date hereof, as may be amended from time to time ("Declaration").
(c) The Deed of Trust securing this Note executed by Borrower in favor of
Agency, recorded against the Site in the Office of the Riverside County
Recorder on or about the date hereof, as may be amended from time to
time ("Deed of Trust").
The AHA, Declaration, acid Deed of Trust are collectively referred to herein as the "Agency T
Agreements." The Agency Agreements are incorporated herein as though set forth in full.
Note Amount; Interest.
(a) Note Amount. The principal amount of Agency's loan to Borrower is
One Hundred Seventy -Four Thousand Nine Hundred Forty Dollars ($174,940) (`'Note
Amount"). The Note Amount represents the financial assistance provided by Agency to
Borrower to enable Borrower to develop the Project on the Site.
(b) Interest. Subject to Section 3 below, no interest shall accrue on the
outstanding principal Note Amount.
2. Term of Note; Repayment. Repayment of the Loan Amount shall be as follows:
882/015610-O046
1106784.02 a07/29/10
(a) Subject to the provisions of Section 3 herein, which provide for
acceleration of the then outstanding principal and accrued interest and immediate payment
thereof in the event of a default by Borrower, Borrower shall not be required to make any
payments of principal or interest on this Note until such time as Borrower sells a Home to an
Eligible Household. Upon Borrower's sale of a Home to an Eligible Household at an Affordable
Sales Price and the Eligible Household's execution of a complete set of Buyer Affordable
Housing Documents, the Note Amount shall be reduced by fifty percent (50%). At such time,
the amount by which the Note Amount is reduced shall be deemed transferred to said Eligible
Household, in the form of a first trust deed loan. Upon Borrower's sale of the last Home in the
Project to an Eligible Household at an Affordable Sales Price and said Eligible Household's
execution of a complete set of Buyer Affordable Housing Documents, this Note shall be
automatically cancelled, as evidenced by Agency's return to Borrower of the original of this
Note marked "cancelled," and the Deed of Trust shall no longer secure the obligations hereunder.
(b) Borrower shall have the right to prepay all or any portion of this Note at
any time without penalty.
(c) Any payments made by Borrower in payment of this Note shall be applied
in the following order: (i) first to the interest then accrued and due on the unpaid principal
balance under this Note, (ii) second to reduction of the principal balance of this Note.
3. Default and Cross -Default. Borrower shall be deemed in default of this Note in
the event Borrower (a) fails to timely make a payment required by this Note within ten (10) days
following the due date of any payment due hereunder; or (b) Borrower is in material default of
any of the covenants, terms, or provisions of this Note, or any of the Agency Agreements, and
Borrower fails to timely cure such default under the terms of the applicable agreement, it being
understood and agreed by Borrower that a default of any of Agency Agreements (beyond any
applicable cure period) shall be a default of this Note. In the event of a default, all portions of
the Note Amount that have been disbursed to Borrower and all accrued interest thereon shall
become immediately due and payable. The rate of interest applicable to periods of default for
the defaults set forth in this Paragraph 3 shall be calculated at the lesser of ten percent (10%) per
annum or the maximum legal rate, and shall accrue as of the date such payment was originally
due.
4. Collection Costs; Attorneys' Fees. If the Note Amount becomes due and is not
paid, Borrower shall pay all costs of collection, including, but not limited to, attorneys' fees and
all expenses incurred in connection with the protection or realization of the collateral securing
the payment hereof or enforcement of any guarantee, incurred by Agency on account of such
collection, whether or not suit is filed hereon.
5. Waiver of Presentment, Etc. Borrower and all endorsers, guarantors and
persons liable or to become liable on this Note waive presentment, protest and demand, notice of
protest, demand and dishonor and nonpayment of this Note and any and all other notices or
matters of a like nature, and consent to any and all renewals and extensions near the time of
payment hereof and agree further that at any time and from time to time without notice, the terms
of payment herein may be modified or the security described in any documents securing this
Note released in whole or in part, or increased, changed or exchanged by agreement between
882/01561M046 _
1106784.02 a07/29/10 _2
Agency and any owner of the premises affected by said documents securing this Note, without in
any way affecting the liability of any party to this Note or any persons liable or to become liable
with respect to any indebtedness evidenced hereby.
6. Severability; Governing Law; Amendment. The unenforceability or invalidity
of any provision or provisions of this Note as to any persons or circumstances shall not render
that provision or those provisions unenforceable or invalid as to any other provisions or
circumstances, and all provisions hereof, in all other respects, shall remain valid and enforceable.
This Note has been executed and delivered by Borrower in the State of California and is to be
governed and construed in accordance with the laws thereof. Neither this Note nor any term
hereof may be waived, amended, discharged, modified, changed, or terminated orally; nor shall
any waiver of any provision hereof be effective except by an instrument in writing signed by
Borrower and Agency.
7. No Waiver by Agency. No waiver of any breach, default, or failure of condition
under the terms of this Note or the Deed of Trust or the obligations secured thereby shall be
implied from any failure of Agency to take, or any delay be implied from any failure by Agency
in taking action with respect to such breach, default, or failure from any prior waiver of any
similar or unrelated breach, default, or failure.
8. Usury. Notwithstanding any provision in this Note, the Deed of Trust, or other
document securing same, the total liability for payment of any interest shall not exceed the limit
imposed by applicable laws of the State of California.
9. Non -Recourse Obligation. In the event of any default under the terms of this
Note or any of the Agency Agreements, the sole recourse of Agency for any and all such defaults
shall be by judicial foreclosure or by the exercise of the trustee's power of sale, and Borrower
and its partners shall not be personally liable for the payment of this Note or for the payment of
any deficiency established after judicial foreclosure or trustee's sale; provided, however, that the
foregoing shall not in any way affect any rights Agency may have (as a secured party or
otherwise) hereunder or under any of the Agency Agreements to recover directly from Borrower
any amounts secured by the Deed of Trust, or any funds, damages or costs (including without
limitation reasonable attorneys' fees and costs) incurred by Agency as a result of fraud,
intentional misrepresentation or bad faith waste, and any costs and expenses incurred by Agency
in connection therewith (including without limitation reasonable attorneys' fees and costs).
10. Assignment. Borrower may not transfer or assign this Note without the express
written consent of Agency, which may be given or withheld in Agency's sole and absolute
discretion. Agency may transfer or assign Agency's interest in this Note.
[End of Note — signature page follows]
882/015610-0046
1106/84.02.07/29/10 -3-
Dated: is� I M 2.0 10
Dated: O 1 / Y / 2,0/ 6
Dated:
4's Ito
APPROVED AS TO FORM
RUT N & TU KE P:
N
nc Counse
882/015610-0046
1106784.02.07/29/10 -4-
"Borrower"
HABITAT FOR HUMANITY OF THE
COACHELLA VALLEY, INC., a California
nonprofit public benefit corporation
By: A
By: — {»
"Agency"
LA QUINTA REDEVELOPMENT GENCY,
a /b y corporal o
Y. Executive Director
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
La Quinta Redevelopment Agency
P.O. Box 1504
La Quinta, CA 92247
Attn: RDA Secretary / City Clerk
DOC # 2010-0414647
08/30/2010 08:00ii Fee:NC
Page 1 of 27
Recorded in official Records
County of Riverside
Larry W. Ward
Assessor, County Clerk & Recorder
111111111111111111111111111111111111111111111111111111111
S
R
U
PAGE
I SIZE
DA
MISC
LONG
RFD
COPY
I
a
M
A
L
465
1 426
PCOR
NCOR
SMF
NCH
EXAM
D
T:
CTY
UNI
Exempt from Recordation Fee per Gov. Code § 27383 Q
AFFORDABLE HOUSING AGREEMENT AND DECLARATION
OF COVENANTS, CONDITIONS AND RESTRICTIONS 191
This AFFORDABLE HOUSING AGREEMENT AND DECLARATION OF
COVENANTS, CONDITIONS, AND RESTRICTIONS FOR PROPERTY (the "Declaration")
is made by and between HABITAT FOR HUMANITY OF COACHELLA VALLEY, INC.,
a California nonprofit public benefit corporation (the "Developer") and the LA QUINTA
REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency") as of the
23 day of AuCYuS-r 2010.
RECITALS
A. Developer owns fee title to that certain real property located in the City of
La Quinta, County of Riverside, State of California, legally described in the legal description
attached hereto as Exhibit "A" ("Property"). The Property is located in Project Area No. 1 (the
"Project Area") and is subject to the provisions of the Redevelopment Plan for the Project Area.
B. This Declaration is part of a redevelopment project described in that certain
Affordable Housing Agree ent (the "AHA"), entered into by and between Developer and
Agency on or about 21-3 , 2010, concerning Developer's construction on the
Property of two (2) single family detached affordable housing dwelling units (the "Homes"),
with each of the Homes restricted for sale to "Eligible Households" at an "Affordable Sales
Price" (as those terms are defined in Section I herein) (collectively, the "Project").
C. Pursuant to the AHA, and as further described in that certain promissory note
attached thereto as Attachment No. 3, the Agency has agreed to provide the Developer with
certain financial assistance, in the form of a loan, to construct the Project on the Property (the
"Agency Loan"). Upon the Developer's sale of each Home to an Eligible Household at an
Affordable Sales Price and said Eligible Household's execution of a complete set of "Buyer
Affordable Housing Documents" (as that term is described in Section I hereof), fifty percent
(50%) of the outstanding principle balance of the Agency Loan will be credited to the Developer
and deemed transferred to said Eligible Household, in the form of a first trust deed loan (each, a
"Homebuyer Loan" ).
892/015610-0046
1106784,02 a07/29/ 10 -1-
D. The AHA is available for public inspection and copying at City Hall, 78-495
Calle Tampico, La Quinta, CA 92253. All of the terms, conditions, provisions and covenants of
the AHA are incorporated in this Declaration by reference as though written out at length herein
and the AHA and this Declaration shall be deemed to constitute a single instrument or document.
E. Agency is a public body, corporate and politic, exercising governmental functions
and powers and organized and existing under the Community Redevelopment Law of the State
of California (Health and Safety Code Section 33000, et seq.). Agency desires to increase,
improve and preserve affordable housing in the City of La Quinta ("City") and this Declaration
is in furtherance of Agency's goal to create long-term affordable housing units. This goal is
accomplished through the terms and conditions of this Declaration, which restrict the resale price
of the Homes to be developed on the Property to a level that is affordable to Eligible Households
for a period of forty-five (45) years.
NOW, THEREFORE, THE AGENCY AND THE DEVELOPER AGREE AS
FOLLOWS:
Definitions.
"Adjusted for Family Size Appropriate for the Property" shall mean, for purposes of
calculating an Affordable Sales Price, a household of three (3) persons for a two (2) bedroom
Home, a household of four (4) persons for a three (3) bedroom Home, and a household of five
(5) persons for a four (4) bedroom Home (California Health and Safety Code, Section 50052.5).
"Affordability Period" shall be, for each Home, forty-five (45) years from the date'the
Home is first transferred to an Eligible Household, as evidenced by the recordation of a Buyer
Affordable Housing Agreement by said Eligible Household.
"Affordable Sales Price" shall mean a sales price that would result in an annual Monthly
Housing Cost that does not exceed the maximum percentage of income that can be devoted to
housing cost by Eligible Households under California law. As of the date of this Declaration, the
Affordable Sales Price for an Eligible Household means a purchase price that would result in an
annual Monthly Housing Cost that is not more than the product of thirty percent (30%) times
fifty percent (50%) of the Median Income Adjusted for Family Size Appropriate for the
Property, all as more particularly set forth in Section 50052.5 of the California Health and Safety
Code.
"Agency Deed of Trust" shall mean the Deed of Trust in favor of Agency recorded
against the Property on or about the date of recordation of this Declaration, as may be amended
from time to time, which secures, among other things, Developer's obligations under this
Declaration.
"Buyer Affordable Housing Documents" shall collectively refer to the following
documents, all of which shall be required to be executed by each buyer of a Home to assure the
affordability of the Home to Eligible Households for the full 45-year term: (i) an affordable
housing agreement that prohibits the resale of the Home except to an Eligible Household or to
Developer and grants the Developer and Agency an option to purchase the Home ("Option to
Purchase") prior to the then -owner's sale to an Eligible Household ("Buyer Affordable Housing
882/015610-0046
1106794 02 a07/29/10 -2-
Agreement"); (ii) a promissory note ("Buyer Promissory Note") in the amount of fifty percent
(50%) of the Agency Loan; (iii) a deed of trust securing repayment under the Promissory Note
(`Buyer Deed of Trust'); and (iv) a disclosure statement acknowledging and consenting to all of
the affordability restrictions contained in the aforementioned documents ("Buyer Disclosure
Statement'). The Buyer Affordable Housing Documents shall be in a form approved by Agency
counsel.
"Developer" shall mean Developer and any successor in interest of Developer to the
Property.
"HCD" shall mean the State of California Department of Housing and Community
Development.
"Median Income" shall mean the Riverside County area median income adjusted for
family size as established by the United States Department of Housing and Urban Development,
and as published periodically by HCD.
"Monthly Housing Cost" shall include all of the following associated with a Home,
estimated or known as of the date of the proposed sale of the Home: (a) principal and interest
payments to be paid in the form of loan proceeds; (b) property taxes and assessments; (c) fire and
casualty insurance covering replacement value of property improvements; and (d) a reasonable
utility allowance. The Monthly Housing Cost of a purchaser shall be an average of estimated
costs for the next twelve (12) months.
"Owner" shall mean an Eligible Household to whom Developer has conveyed fee title to
one of the Homes or any successor in interest to said buyer to all or any portion of the Home.
"Project" shall mean the grading of the Site, and the development of the Site with two (2)
Homes, and all other on -site and off -site improvements required for development of the Site, as
described more fully in the Scope of Development attached to the AHA as Attachment No. 1,
with all such improvements to be consistent with the development and building plans and
permits to be approved by the Agency and City. In the event of any inconsistency between the
description of the Project in this Declaration and the approved plans and permits, the approved
plans and permits shall govern.
"Proposed Buyer" shall mean a person or family determined to be an Eligible Household
to whom the Developer or any successor Owner desires and proposes to Transfer a Home.
"Eligible Household" shall mean a household whose annual income does not exceed the
qualifying limits under California law for either `lower income households" or "very low income
households" as established by HUD, and as published periodically by HCD.
"Sales Price" shall mean all sums paid by an Eligible Household to Developer for, or in
conjunction with, the acquisition of a Home, including the purchase price designated in any
purchase agreement, consideration for personal property and all other costs and fees paid by the
Eligible Household, to or for the benefit of the Developer.
882/015610-0046
1106784, 02 a07/29/10 -3-
"Transfer" shall mean (i) any sale, assignment, or transfer of an interest in a Home,
including, without limitation, 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 Home, or (ii) any interest evidenced by a land contract.
2. Sale of Homes.
Developer agrees that Developer shall sell the Homes to Eligible Households at an
Affordable Sales Price and that during the Affordability Period each subsequent resale of a
Home by the then -Owner thereof shall be to either an Eligible Household or to Developer, in
either case at an Affordable Sales Price. Developer agrees to commence to market each Home at
the earliest feasible time, but not later than the commencement of construction of said Home.
Developer shall use its best efforts to market the Homes to residents of the City of La Quinta.
Escrow for the initial Transfer of a Home by Developer to an Eligible Household shall not close
until after issuance of a certificate of occupancy by the City building department for such Home.
For purposes of satisfying the requirement that all of the Homes shall be occupied by
Eligible Households: (a) an individual or family who qualifies as an Eligible Household at the
time he or she first takes title to a Home will be deemed an Eligible Household as long as he or
she continues to hold title to such Home even though said buyer subsequently ceases to meet the
applicable income requirements, and (b) when an Owner releases title to a Home, such Home
will be considered as occupied by an Eligible Household if it is held vacant and available for
such occupancy until title is transferred to an Eligible Household, provided Developer is
diligently pursuing the transfer of such Home to an Eligible Household.
3. Restrictions on Transfer by Sale of Any Home.
a. General. For the duration of the Affordability Period, Developer, for itself
and any subsequent Owner of a Home, hereby subjects the Property to certain restrictions and
limits the price at which Developer or any Owner of a Home may sell and/or resell the Home and
the persons to whom Developer or any Owner of a Home may sell the Home.
b. Determination of Affordable Sales Price.
DEVELOPER UNDERSTANDS THAT THE DETERMINATION OF THE
AFFORDABLE SALES PRICE CAN BE MADE ONLY AT THE TIME OF THE PROPOSED
TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, PROPERTY TAXES
AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED AND THAT
THE AFFORDABLE SALES PRICE PERMITTED HEREUNDER MAY NOT INCREASE OR
DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY
WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. DEVELOPER FURTHER
ACKNOWLEDGES THAT IN SETTING THE SALES PRICE, THE PRIMARY OBJECTIVE
OF THE AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE
HOUSEHOLDS AT AN AFFORDABLE SALES PRICE. THE AFFORDABLE SALES
PRICE MAY BE LESS THAN THE SALES PRICE OF OTHER SIMILAR PROPERTIES
WHICH HAVE NO RESTRICTIONS.
Developer's Initials 05
882/O15610-0046
1106784.02 a09/29/ 10 4-
C. Transfer of A Home.
Developer may transfer a Home only in strict accordance with the provisions of
this Declaration. Specifically, during the Affordability Period, Developer may only transfer a
Home to an Eligible Household. Any such transfer may be made only if (i) the sales price for the
Home does not exceed an Affordable Sales Price for said Eligible Household; and (ii) the
Transfer has previously been approved in writing by the Agency.
1n order to comply with this Subsection 3(c), Developer must calculate the
Affordable Sales Price for the Proposed Buyer of the Home in accordance with the definitions
set forth in Section 1 of this Declaration. The Developer shall obtain final written approval from
the Agency housing staff on any such calculation.
Developer and Agency contemplate that Developer will sell each Home pursuant
to a purchase and sale agreement ("Developer Purchase Agreement"), and that in connection
with each sale the Proposed Buyer will also be required to execute an affordable housing
agreement that imposes resale restrictions (the "Developer AHA). Developer agrees that the
Developer AHA shall be recorded subsequent, and remain in a junior position, to each of the
Buyer Affordable Housing Documents executed by a Proposed Buyer and recorded against the
applicable Home.
Developer shall provide to Agency, and obtain Agency's approval of, the forms of
the Developer Purchase Agreement, the Developer AHA, and any other document Developer
requires to be executed and/or recorded by a Proposed Buyer (collectively, the "Developer
Affordable Housing Documents") prior to Developer's use or recordation of any of the same.
Developer acknowledges that a violation by an Owner of any of the provisions set forth in any of
the Developer Affordable Housing Documents shall constitute a default under the Buyer
Affordable Housing Documents entitling the Agency, subject to any express limitations set forth
herein, to exercise any of its remedies thereunder.
Developer agrees that the only financial consideration the Developer will receive
from the Eligible Household to whom Developer sells a the Home is the monthly payments to be
made by said Eligible Household under the Buyer Promissory Note executed by the Eligible
Household, the payments under which the Agency agrees to assign to Developer after the
Eligible Household takes title to the Home.
d. Successive Owner's Compliance with this Section. The foregoing
provisions will apply to every successive Transfer during the Affordability Period except that in
the event of a Transfer for which Developer fails to exercise the Developer's Option to Purchase
with respect to the subject Home, the then -Owner shall be responsible for complying with the
requirements of the Developer as set forth in this Section 3.
4. Process to Complete Transfer by Sale of Homes.
Prior to the Transfer by sale of a Home, Developer shall do all of the following:
a. Notice to Agency: Developer shall send to the Agency in care of City of
La Quinta (or its successor), at P.O. Box 1504, La Quinta, CA 92247, the form attached hereto
882/015610-0046
1106784.02 a07/29/10 -5-
and incorporated herein as Exhibit "B" ("Request for Verification of Proposed Buyer") fully
completed and executed by the Developer and the Proposed Buyer; provided, however, that if
Developer currently uses forms that contain all of the same information as the Request for
Verification of Proposed Buyer, Developer may submit to Agency such forms in lieu of the
Request for Verification of Proposed Buyer.
b. Qualification of Proposed Buyer. No Transfer shall occur unless and until
determination is made based on the Request for Verification of Proposed Buyer that the
Proposed Buyer is an Eligible Household who intends to occupy the Home as his/her principal
residence. Each Request for Verification of Proposed Buyer shall include a statement by the
Proposed Buyer certifying its intent with regard to the occupancy of the Home and as to the truth
and accuracy of all information supplied as to the Gross Income (calculated as set forth in 25
Cal. Code of Regs., Section 6914) of the Proposed Buyer. Developer shall certify pursuant to the
Request for Verification of Proposed Buyer the information provided on said request form.
Developer shall be entitled to rely on the information on the Request for Verification of
Proposed Buyer and attachments thereto in making the determination required by this subsection
4(b) unless the Developer has knowledge of, or a reasonable basis for belief as to, the inaccuracy
or falsehood of the Request for Verification of Proposed Buyer.
C. Home Sales Price. The Sales Price for the Homes shall not exceed an
Affordable Sales Price for the Proposed Buyer. In determining the Affordable Sales Price, the
family size of the Proposed Buyer shall be deemed to be 3 persons for each 2 bedroom Home, 4
persons for each 3 bedroom Home, and 5 persons for each 4 bedroom Home.
d. Certificates from Developer and Proposed Buyer. With respect to each
initial sale of a Home and each subsequent sale effected by or through Developer, Developer
shall submit to the Agency, not later than four (4) weeks prior to close of escrow on the sale of
the Home, a certificate that (i) the Developer has made the affirmative determinations required
by Section 4(b) above and (ii) the Sales Price conforms with Section 4(c) above. The Developer
shall concurrently submit to the Agency the Request for Verification of Proposed Buyer and all
attachments thereto and all other documents or material with regard to information required by
Section 4(a) and/or (b) above, whether or not relied on by the Developer. Further, the Developer
and Proposed Buyer each shall certify in writing, in a manner acceptable to the Agency, that the
Transfer shall be closed in accordance with, and only with, the terms of the sales contract and
other documents submitted to and approved by the Agency and that all consideration delivered
by the Proposed Buyer to Developer has been fully disclosed to the Agency. The written
certificate shall also include a provision that, in the event a Transfer is made in violation of the
terms of this Declaration or false or misleading statements are made in any documents or
certificate submitted to the Agency for its approval of the Transfer, the Agency shall have the
right to file an action at law or in equity to seek termination and/or rescission of the sales
contract and/or declare the sale void, notwithstanding the fact that the Transfer may have closed
and become final as between Developer and its Proposed Buyer. In the event Developer fails to
comply with Sections 4(a), 4(b) or 4(c) above, any costs, liabilities or obligations incurred by the
Developer and its Proposed Buyer for the return of any monies paid or received or for any costs
and legal expenses, shall be home jointly and severally by the Developer and its Proposed Buyer
and such parties shall hold the City and the Agency harmless and reimburse their expenses, legal
182/015610-0046
1106794,02 a07/29/10 -6-
fees and costs for any action and City and/or Agency take in enforcing the terms of this Section
4(d).
e. Execution of Buyer Affordable Housing Documents. Notwithstanding
anything to the contrary in this Declaration, at close of escrow for the initial sale of a Home to an
Eligible Household, the buyer shall execute a complete set of Buyer Affordable Housing
Documents. The Buyer Affordable Housing Documents require, among other things, that during
the Affordability Period for said Home, (i) the Home must be owner -occupied at all times and
cannot be rented or leased; (ii) the Home may only be Transferred to Developer or to an Eligible
Household at an Affordable Sales Price, and (iii) the maximum permitted sales price for the
Home may be less than fair market value. For each subsequent transfer of a Home to an Eligible
Household, said buyer shall execute an assignment and assumption agreement, in a form
approved by Agency, expressly assuming all the original buyer's obligations under the Buyer
Affordable Housing Documents executed by said original buyer.
f. Delivery of Documents. Upon the close of the proposed Transfer, the
Developer shall provide the Agency with a certified copy of the recorded documents, a copy of
the final sales contract, settlement statement, escrow instructions, all certificates required by this
Section 4 and any other documents which the Agency may request.
DEVELOPER UNDERSTANDS THAT THE DETERMINATION OF THE
AFFORDABLE SALES PRICE 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
BUYER 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. DEVELOPER FURTHER ACKNOWLEDGES
THAT IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE
AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE
HOUSEHOLDS AT AN AFFORDABLE SALES PRICE.
g. Developer's Option to Purchase. Notwithstanding anything herein to the
contrary and as further set forth in the Buyer Affordable Housing Agreement, during the
Affordability Period for each Home, commencing on the earlier of the date the then -Owner of a
Home has notified Developer and Agency of its desire to sell the Home or the date the then -
Owner places the Home for sale ("Option Commencement Date"), and continuing for a period of
sixty (60) days after the Option Commencement Date, the Developer shall have an option to
purchase the Home from the then -Owner, at an Affordable Sales Price, for the sole purpose of
locating an Eligible Household and reselling the Home thereto at an Affordable Sales Price
("Developer's Option to Purchase"). Developer shall be obligated to exercise Developer's
Option to Purchase, and shall so exercise by delivery of written notice to the then -Owner and to
Agency, and shall conclude the purchase from the Owner and the resale to an Eligible Household
within forty-five (45) days after Developer delivers Developer's written notice to Agency and to
Owner. Upon Developer's exercise of Developer's Option to Purchase, Developer shall
expressly assume, pursuant to an assignment and assumption agreement that has been approved
882/015610-0046
1106784 02 a0729/ 10 -7-
by the Agency's legal counsel, the Homebuyer Loan provided to the Owner by Agency. Upon
Developer's resale of the Home to an Eligible Household at an Affordable Sales Price, the
Developer shall transfer the Homebuyer Loan to said Eligible Household. If Developer fails to
exercise Developer's Option to Purchase during the time specified herein, then commencing on
the expiration of such time period, Agency shall have an option to purchase the Home from the
then -Owner, at an Affordable Sales Price, for purposes of locating an Eligible Household and
reselling the Home to said buyer ("Agency's Option to Purchase"). Agency shall exercise
Agency's Option to Purchase by delivery of written notice to Developer and to the Owner.
Agency's Option to Purchase shall continue until such time as the Owner enters into a binding
purchase and sale agreement to sell the Home to an Eligible Household.
h. Developer's Continuing Obligations to Qualify Proposed Buyers.
Developer acknowledges that Agency has entered into the AHA and this Declaration with the
expectation that Developer shall affirmatively manage and ensure the continued affordability of
each of the Homes during the Affordability Period, whether or not Developer owns any portion
of the Property. In furtherance thereof, Developer shall be responsible, during the Affordability
Period for each Home, to actively assist any Owner of said Home to locate, and resell the Home
to, an Eligible Household. Such assistance shall include, but not be limited to, completing and
submitting to Agency all documentation required herein for the transfer of a Home, and
performing all tasks necessary to qualify proposed buyers.
The covenants contained in this Section 4 shall run with the land and shall automatically
terminate and be of no further force or effect upon the Expiration Date set forth in Section 19
hereof.
5. Nondiscrimination Covenants
a. General. Developer covenants 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 any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as
those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale,
lease, sublease, transfer, use,, occupancy, tenure or enjoyment of the Property, or any part
thereof, nor shall Developer, 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 Site, or any part thereof. The foregoing covenants shall run with the land.
b. Nondiscrimination Clauses in Agreements. Developer agrees for itself
and any successor in interest that Developer shall refrain from restricting the rental, sale, or lease
of any portion of the Property, or contracts relating to the Property, on the basis of race, color,
creed, religion, sex, marital status, ancestry, or national origin of any person. All such deeds,
leases or contracts shall contain or be subject to substantially the following nondiscrimination or
nonsegregation clauses:
i. 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
882/015610-0046
1106784.02 a0729/ 10 '8-
through them, that there shall be no discrimination against or segregation of, any person or group
of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein
conveyed, nor shall the grantee or any person claiming under or through him or her, establish or
permit any 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
premises herein conveyed. The foregoing covenants shall run with the land."
ii. 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: "That there shall be no discrimination against or segregation of any person or group
of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926. 1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
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."
iii. In contracts pertaining to the realty: "There shall be no
discrimination against or segregation of, any person or group of persons on account of any basis
listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are
defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease,
transfer, use, occupancy, tenure, or enjoyment of the premises which are the subject of this
agreement, nor shall the grantee or any person claiming under or through him or her, establish or
permit any 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
premises herein conveyed. The foregoing covenants shall run with the land."
Nothing in this Section 5 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 Section 5 shall
run with the land in perpetuity.
6. Maintenance of Property
Developer 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:
(1) no lawns with grasses in excess of six (6) inches in height;
882/015610-0046
1106784.02 a07/29/10 -9-
(2) no untrimmed hedges;
(3) no trees, shrubbery, lawns, and other plant life dying from lack of
water or other necessary maintenance;
and
(4) no trees and shrubbery 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, including:
(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
areas.
(4) no vehicles parked or stored in areas other than approved parking
(c) No buildings may be left in an unmaintained condition, including:
(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; and
(5) no graffiti.
882/015610-0046
1106784.02 ao7/29/ 10 -10-
7. General Use Provisions.
a. No Rentinp Homes. Each Home shall be used as the principal residence
of the Home's Owner and for no other purpose. No Owner shall be permitted to rent or lease its
Home. Developer shall ensure that the Homes remain owner -occupied.
b. Occupancy Standards. A Home may not be occupied by more than the
total number of persons allowed pursuant to the general requirements of the United States
Department of Housing and Urban Development which as of the date of this Declaration is equal
to the total number of bedrooms in the Home multiplied by 2, plus 1 (e.g., a two -bedroom Home
would be limited to occupancy by 5 persons and a three -bedroom Home would be limited to
occupancy by 7 persons). Each Owner shall, upon demand by Agency or Developer, be required
to submit an affidavit of occupancy verifying the Owner's compliance with this Section 7.
C. Nuisances. No obnoxious, illegal, or offensive activities shall be carried
upon or in any Home, or upon any part of the Property, nor shall anything be done thereon which
may be or may become an annoyance or a nuisance to, or which may in any way interfere with
the quiet enjoyment by, each of the Owners of his or her respective Home, or which will impair
the structural integrity of any building.
8. Annual Reports.
On or before August I of each year, Developer, at its expense, shall submit to Agency the
annual report required pursuant to Health and Safety Code Section 33418, as the same may be
amended from time to time, in the form prescribed by Agency, along with such other information
as Agency may reasonably require.
9. Property Taxes.
Developer and Developer's successors in interest in and to a Home shall not seek
exemption from the payment of property taxes and assessments for any portion of the Property or
take any other action that would result in any portion of the Property being exempt from the
imposition of property taxes and assessments. In addition, in the event any portion of the
Property is exempt from the payment of property taxes, Developer shall take all action necessary
to cause said portion to be subject to the imposition of property taxes and assessments.
Notwithstanding the forgoing, Developer and Developer's successors in interest in and to each
Home shall have the right to appeal such obligation to the City Council of the City of La Quinta.
10. Indemnification.
Developer shall defend, indemnify and hold harmless Agency and City and their
respective officers, officials, agents, employees, representatives, and volunteers (the
"Indemnified Parties") from and against any loss, damage, costs, expenses, liability, claim, or
judgment relating in any manner to the Property or Developer's performance under this
Declaration, except to the extent caused by the sole negligence or willful misconduct of an
Indemnified Party.
882/015610-0046
1106784.02 a07/29/10 -11-
11. Insurance.
Developer shall procure and maintain the insurance set forth in the AHA for the times set
forth therein. Upon Developer's Transfer of a Home to an Eligible Household, Developer shall
require the Eligible Household to procure and maintain an all-risk property insurance policy
insuring his or her Home in an amount equal to the full replacement value of the structures
located thereon, with no coinsurance penalty provision, in a form, content and with companies
approved by Agency. Agency and City shall be a loss payee under such policy or policies and
such insurance shall contain a statement of obligation on behalf of the carrier to notify Agency of
any material change, cancellation or termination of coverage at least thirty (30) days in advance
of the effective date of such material change, cancellation or termination. In no event shall the
limits of any policy be considered as limiting the liability of Developer or an Owner, as
applicable, hereunder or limiting the indemnity obligation of Developer set forth in Section 10 of
this Declaration.
12. Repair of Damage.
If any improvements on the Property shall be totally or partially destroyed or rendered
wholly or partly uninhabitable by fire or other casualty while under the ownership of Developer,
Developer shall promptly proceed to obtain insurance proceeds and take all steps necessary to
begin reconstruction and, immediately upon receipt of insurance proceeds, to promptly and
diligently commence the repair or replacement of the improvements to substantially the same
condition as the improvements are required to be maintained in pursuant to this Declaration,
whether or not the insurance proceeds are sufficient to cover the actual cost of repair,
replacement, or restoration, and the Developer shall complete the same as soon as possible
thereafter so that the Project can continue to be operated and occupied as an affordable housing
project in accordance with this Declaration. In no event shall the repair, replacement, or
restoration period exceed six (6) months from the date or the destruction unless Agency's
Executive Director, in his or her sole and absolute discretion, approves a longer period of time.
13. Defaults and Remedies.
a. Defaults. Failure or delay by any party to perform any term or provision
of this Declaration which is not cured within thirty (30) days after receipt of notice from the
other party specifying the default (or 5 days with respect to certain defaults regarding inadequate
maintenance of the Property described in Section 6) constitutes a default under this Declaration;
provided, however, if such default is of the nature requiring more than thirty (30) days to cure,
the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30)
day period, and thereafter diligently pursuing such cure to completion. Except as required to
protect against further damages, the injured party may not institute proceedings against the party
in default until thirty (30) days after giving such notice. Failure or delay in giving such notice
shall not constitute a waiver of any default, nor shall it change the time of default.
b. Institution of Legal Actions. In addition to any other rights or remedies,
including without limitation Agency's rights under the Agency Deed of Trust, any party may
institute legal action to cure, correct, or remedy any default, to recover damages for any default,
or to obtain any other remedy consistent with the purposes of this Declaration; provided,
882/015610-0046
1106784,02 a07/29/10 -12-
however, that notwithstanding anything in the foregoing to the contrary, in no event shall
Developer be entitled to obtain monetary damages of any kind from Agency, including but not
limited to damages for economic loss, lost profits, or any other economic or consequential
damages of any kind. Such legal actions must be instituted and maintained in the Superior Court
of the County of Riverside, State of California, or in any other appropriate court in that county.
C. Developer's Obligations Secured by Agency Deed of Trust. Until such
time as the Agency Deed of Trust is reconveyed in full, Developer's performance of its
obligations under this Declaration is secured by the Agency Deed of Trust. The Agency Deed of
Trust will be partially conveyed as to each Home upon Developer's initial Transfer of the Home
to an Eligible Household in accordance with the AHA.
d. Rights and Remedies are Cumulative. The rights and remedies of the
parties are cumulative, and the exercise by any party of one or more of its 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 any other party.
14. Covenants Do Not Impair Liens.
No violation or breach of 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 instrument.
15. Conflict with Other Laws; Severability.
In the event that any provision of this Declaration is found to be contrary to applicable
law, then the contrary provisions of this Declaration 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 to Eligible Households at an Affordable Sales Price.
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.
16. Covenants for Benefit of City and Agency.
This Declaration is designed to create equitable servitudes and covenants running with
the Property, in accordance with the provisions of Civil Code Section 1468. The covenants,
conditions, restrictions, reservations, equitable servitudes, liens and charges set forth herein shall
run with the Property and shall be binding upon all persons having any right, title or interest in
the Property, or any part thereof, their heirs, successive owners and assigns; shall inure to the
benefit of the Agency and the City and their successors and assigns, shall be binding upon
Developer, its successors and assigns and successors in interest; and may be enforced by Agency
and City and their successors and assigns. Developer hereby declares its understanding and
intent that the burden of the covenants set forth herein touch and concern the land and that
882/015610-0046
1106784.02 a07/29/10 -13-
Developer's interest in the Property is rendered less valuable thereby. Developer hereby further
declares its understanding and intent that the benefit of such covenants touch and concern the
land by enhancing and increasing the enjoyment and use of the Property by Eligible Households,
and by furthering the public purposes for which the Agency was formed.
In amplification and not in restriction of the provisions set forth hereinabove, it is
intended and agreed that Agency and City each are deemed a beneficiary of the agreements and
covenants provided herein both for and in its own right and also for the purposes of protecting
the interests of the community. All covenants without regard to technical classification or
designation shall be binding for the benefit of Agency and City and such covenants shall run in
favor of Agency and City for the entire period during which such covenants shall be in force and
effect, without regard to whether Agency or City is or remains an owner of any land or interest
therein to which such covenants relate. However, all such covenants and restrictions shall be
deemed to run in favor of all real property owned by the City and Agency which real property
shall be deemed the benefited property of such covenants. Furthermore, all of the covenants,
conditions, and restrictions contained herein shall also constitute easements in gross running in
favor of the Agency and City. Agency and City shall have the right, in the event of any breach
of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any
action at law or suit in equity or other proper proceedings to enforce the curing of such breach of
agreement or covenant.
17. Developer's Books and Records.
Agency, upon reasonable notice to Developer, shall have the right at all reasonable times
to inspect the books and records of Developer as pertinent to the purposes of this Declaration.
Developer agrees to make any and all financial information regarding the Eligible Households to
whom it has sold Homes available to any person or entity performing an audit of the Agency's
activities. Developer shall maintain all such financial information for a period of seven (7) years
after receipt of the same.
18. Notices, Demands and Communications
Written notices, demands and communications between the Developer and the Agency
shall be sufficiently given if (i) delivered by hand, (ii) delivered by reputable same -day or
overnight courier service that provides a receipt showing date and time delivery, or
(iii) dispatched by registered or certified mail, postage prepaid, return receipt requested, as
follows:
Developer: Habitat for Humanity of the Coachella Valley, Inc.
P.O. Box 11738
Palm Desert, CA 92255
Attn: Executive Director
copy to:
882/015610-0046
1106784,02.07/29/10 -14-
Agency: Notices Delivered by U.S. Mail:
La Quinta Redevelopment Agency
P.O. Box 1504
La Quinta, CA 92247
Phone No.: 760-777-7108
Facsimile No.: 760-777-7101
Attention: Executive Director
Notices Delivered Personallv or by Courier:
La Quinta Redevelopment Agency
78-495 Calle Tampico
La Quinta, California 92253
Phone No.: 760-777-7108
Facsimile No.: 760-777-7101
Attention: Executive Director
copy to: Rutan & Tucker, LLP
611 Anton Blvd., Suite 1400
Costa Mesa, CA 92626
Attn: M. Katherine Jenson, Esq.
Such addresses for notice may be changed from time to time upon notice to the other party.
Any written notice, demand or communication shall be deemed received upon receipt if
delivered by hand, or by same -day or overnight courier, and shall be deemed received on the
third (3rd) calendar day from the date it is postmarked if delivered by registered or certified mail.
19. Expiration Date.
This Declaration shall automatically terminate and be of no further force or effect as to
each of the Homes as of forty-five (45) years from the date the Developer first sells the Home to
an Eligible Household.
20. Assignment.
a. Assignment by Agency. Agency shall have the right to assign all or part
of its interest in this Declaration to a third party for the purpose of ensuring compliance with this
Declaration.
b. Assignment by Developer. The qualifications and identity of Developer
are of particular concern to Agency. It is because of those qualifications and identity that
Agency has provided financial assistance to Developer and entered into this AHA and this
Declaration with Developer. Accordingly, Developer shall not, whether voluntarily,
involuntarily, or by operation of law, and except as permitted in this Section 20.b, undergo any
significant change in ownership or assign all or any part of its obligations hereunder, without
Agency's prior written approval. Developer shall deliver written notice to Agency requesting
approval of any assignment. In considering whether it will grant approval to any assignment by
882/015610-0046
1106784. 02.07/29/10 -1 5-
Developer, Agency shall consider factors such as the proposed assignee's experience and
expertise in the operation of similar projects. Agency's approval of an assignment shall be made
in Agency's sole and absolute discretion. If Agency approves an assignment, the assignment
shall not be effective unless and until the proposed assignee executes and delivers to Agency an
agreement in a form satisfactory to Agency's legal counsel assuming the obligations of the
assignor which have been assigned. Nothing in this Section 20.b is intended to restrict
Developer from transferring a Home to an Eligible Household in accordance with the AHA and
this Declaration.
21. Attorneys' Fees and Costs.
If any party to this Declaration commences an action against any other party to this
Declaration arising out of or in connection with this Declaration, the prevailing party shall be
entitled to recover reasonable attorneys' fees, expert witness fees, costs of investigation, and
costs of suit from the losing party.
22. Entire Agreement, Waivers, and Amendments.
This Declaration, the AHA, and the agreements attached to the AHA, contain the entire
agreement between the parties relating to the subject matter hereof, and supersede all
negotiations and previous agreements between the parties with respect to all or part of the subject
matter hereof. All waivers of the provisions of this Declaration must be in writing and signed by
the appropriate authorities of the party to be charged. A waiver of the breach of the covenants,
conditions or obligations under this Declaration by any party shall not be construed as a waiver
of any succeeding breach of the same or other covenants, conditions or obligations of this
Declaration. Any amendment or modification to this Declaration must be in writing and
executed by the appropriate authorities of Agency and (i) Developer to the extent the
modification affects the rights or obligations of Developer under this Declaration, (ii) the
Association to the extent the modification affects the rights or obligations of the Association
under this Declaration, and (iii) any Owners of the Homes whose rights or obligations under this
Declaration are affected by the modification.
23. Interpretation; Governing Law.
This Declaration shall be construed according to its fair meaning and as if prepared by
both of the parties hereto. This Declaration shall be construed in accordance with the internal
laws of the State of California.
24. Agency Approvals and Actions.
Agency shall maintain authority of this Declaration and the authority to implement this
Declaration through the Executive Director (or his or her duly authorized representative). The
Executive Director shall have the authority to make approvals, issue interpretations, execute
documents, waive provisions, and/or enter into certain amendments of this Declaration on behalf
of Agency so long as such actions do not materially or substantially change the uses or
development permitted on the Property or add to the costs incurred or to be incurred by Agency.
All other material and/or substantive interpretations, waivers, or amendments shall require the
consideration, action and written consent of the Agency Board.
882/01561M046
1106784,02 a07/29/10 -16-
25. Third Party Beneficiary.
City is an intended third party beneficiary of this Declaration and shall have the right but
not the obligation to enforce the provisions hereof.
26. Counterparts
This Declaration may be executed in counterparts each of which, when both Developer
and Agency have signed this Declaration, shall be deemed an original and shall constitute one
and same instrument.
[end —signature page follows]
882/01561 M046
1106784 02.07/29/10 -17-
IN WITNESS WHEREOF, the Agency and Developer have caused this instrument to be
executed on their behalf of their respective officers hereunto duly authorized as of the date set
forth above.
APPROVED AS TO FORM
RU,TjiN Y
UC R, LLP
eys for the
La Quinta Redevel6pment Agency
Dated �j I ' 2010
Dated J�/ / 0 12010
I82/015610-0046
1106784.02 a07/29/10
"AGENCY"
LA QUINTA REDEVELOPMENT AGENCY,
a pybkc�o ,corporate agQJp Ic
By: � � `J/
Its: Executive Director
)n%
"DEVELOPER"
HABITAT FOR HUMANITY OF THE
COACHELLA VALLEY, INC., a California
nonprofit public benefit corporation
By: StT-V,' 1
Its: S 1 iv L^J -T: VIA 16A.b Vc-/ a C,6, UVZ-
Its: 6�(x6;cj-/- 4:9 esilea
0131
State of California
County of Riverside
On cgllQ'0!D1O , before me, Lt �,
mse name and title of th officer)
Notary Public, personally appeared .oAo p .� M
who 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.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
Cwxr" n • 1697796
WITNESS my hand and official seal. Notary F, • CaNbtttla
!Q 6AYComn . F Oct 16, 201
Signature �Cir„=:., (Seal)
State of California
County of Riverside
On cg/2 /a-OIC) , before me,
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the persons) 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 signatures) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
(Seal)
�¢n/7,1
.
882/015610-0046 _P$11111S Mah'@l
1106784 02 a07/29/10 -19-
*169?-9�
State of California
County of Riverside
On o) , 23• Zola before me. SUSAW MAVS6 S. NAWU ,
(insert name and title of the officer) -�
Notary Public, personally appeared I t MAS P &6EJ041inR
who 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.
I certify under PENALTY OF PERJURY
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
under the laws of the State of California that
99d
IMP WCOM 1Iw
Signature
882/015610-0046
1106784 02.0729/10 -20-
(Seal)
GVS4N IA&AS6AS
124 44-7 9
Eve - Afcil 13, 7.015
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
Real property in the City of La Quinta, County of Riverside, State of California,
described as follows:
LOTS 13 AND 14 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;
EXCEPTING THEREFROM ONE -SIXTEENTH OF ALL COAL, OIL, GAS
AND OTHER MINERAL DEPOSITS IN SAID LAND, AS RESERVED IN
THE PATENT FROM THE STATE OF CALIFORNIA, RECORDED JULY 26,
1934 IN BOOK 182 PAGE 463 OF OFFICIAL RECORDS OF RIVERSIDE
COUNTY, CALIFORNIA.
APN: 774-044-012-3 and 774-044-011-2
882/015610-0046
1106784.02 a07/29/10 -21-
EXHIBIT "B"
REQUEST FOR VERIFICATION OF PROPOSED BUYER
THIS FORM MUST BE DELIVERED TO THE AGENCY BEFORE PROCEEDING WITH
ANY TRANSFER OF A HOME.
La Quinta Redevelopment Agency
P.O. Box 1504
La Quinta, CA 92247
Attn: Project Officer
Re: Request for Verification of Proposed Buyer
To Whom It May Concern:
Habitat for Humanity ("Habitat") desires to transfer the Home located at
(the "Property") and by this letter is requesting the
Agency to verify that the proposed buyer is a "Eligible Household" (as that term is defined in the
Affordable Housing Agreement and Declaration of Covenants, Conditions and Restrictions).
The Proposed Buyer is:
Name:
Current
Address:
Telephone
Number:
2. The terms of the proposed transfer are
(a) Sales price of $ . This sales price is based on the lesser of
(i) Fair market value; or
(ii) The maximum price which results in an Affordable Sales Price.
882/015610-0046
1106784.02 a07/29/ 10 -22-
IN ORDER TO ANSWER QUESTION 2(a) YOU MUST CALCULATE THE
PROPOSED SALES PRICE BASED ON THE HOUSING COST LIMITATIONS SET FORTH
IN CALIFORNIA HEALTH & SAFETY CODE SECTION 50052.5, TAKING INTO
CONSIDERATION ALL ITEMS LISTED IN THE DEFINITION OF MONTHLY HOUSING
COST.
(b) Price of any personal property being sold by Habitat to the proposed buyer:
$ (If none, so state.)
(c) The price of $ to be paid by the proposed buyer for any services of
Habitat. (If none, so state).
(d) All other amounts of money or other consideration, if any, concerning the
Property or any other matter to be paid by the proposed buyer to Habitat: $ (If none,
so state.)
(e) Sources of payment of sales price:
Sales price $
Cash down payment $
1 st loan $
2nd loan $
Other (describe) $
Total $
(f) The financing obtained by the proposed buyer to purchase the Property is as follows:
1st Loan:
Loan amount $
Monthly payments: $
Interest rate
If variable interest, describe adjustment mechanism:
Due date:
Balloon payment amount:
Points and fees:
882/015610-0046
1106784,02 a07/29/10 -23-
Lender:
Lender's address:
2nd Loan:
Loan amount: $
Monthly payments: $
Interest rate
If variable interest, describe adjustment mechanism:
Due date:
Balloon payment amount:
Points and fees:
Lender:
Lender's address:
Other Loans: (describe, if none, so state)
(g) The Monthly Housing Cost to be paid by the proposed transferee:
1 st loan monthly payment: $_
2nd loan monthly payment: $
Other loans monthly payment: $
Taxes and assessments (1/12 of yearly taxes and $
assessments):
Insurance (1/12 of yearly premium): $_
Homeowner's dues:
Total:
Q
3. The proposed buyer represents, warrants and covenants the following:
(a) The Property will be the principal residence of the proposed transferee.
8821015610-0046
1106I84 02 A7/29/ 10 -24-
(b) The combined maximum annual income for all household members of the
proposed buyer is $ . (This figure must include all sources of income.)
(c) The proposed buyer will deliver to the Agency a signed financial statement on a
form acceptable to the Agency.
4. The proposed buyer's household consists of the following persons who will reside in the
Property:
Adults (18 or over) - [name of each]:
Minors (under 18) [name of each]:
5. The proposed transferee must submit to Habitat, on a form available from Habitat, an
income certification so Habitat may determine if the proposed buyer is an Eligible Household.
6. A true and correct copy of the purchase and sale or other agreement between Habitat and
the proposed buyer is attached hereto.
882/015610-0046
1106784.02 a07/29/)0 -25-
I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.
HABITAT FOR HUMANITY:
Date
signature
print name
street address
signature
print name
telephone
city state zip code
PROPOSED BUYER:
Date
signature signature
print name print name
street address telephone
city state zip code
882/015610-0046
1106784.02 e07/29/10 -26-
Habitat for Humanity Certification
Based on the Proposed Buyer's Certificate above, and all documents attached hereto, Habitat
hereby certifies that:
(1) Proposed Buyer is an Eligible Household; and
(2) The purchase price to be paid by the Proposed Buyer is an Affordable Sales Price.
[Capitalized terms used above are defined in the Agreement to which this certificate is attached.]
OWNER:
[Name]
Date:
882/015610-0046
1106794. 02.07/29/10 -27-