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2011 08 02 RDA00 4 4V adja Redevelopment Agency agendas are available on the City' web page @ www.la-quinta.org REDEVELOPMENT AGENCY AGENDA CITY COUNCIL CHAMBERS 78-495 Calle Tampico La Quinta, California 92253 Regular Meeting TUESDAY, AUGUST 2, 2011 AT 4:00 P.M. Beginning Resolution No. RA 2011-031 CALL TO ORDER Roll Call: Agency Board Members: Adolph, Evans, Franklin, Sniff, Chairperson Henderson CLOSED SESSION — NONE PUBLIC COMMENT At this time members of the public may address the Redevelopment Agency on any matter not listed on the agenda. Please complete a "request to speak" form and limit your comments to three minutes. CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1. APPROVAL OF MINUTES OF JULY 19, 2011 CONSENT CALENDAR NOTE: Consent Calendar items are considered to be routine in nature and will be approved by one motion. 1. APPROVAL OF DEMAND REGISTER DATED AUGUST 2, 2011 001 REDEVELOPMENT AGENCY AGENDA 1 AUGUST 2, 2011 2. APPROVAL OF AMENDMENT NO. 2 TO THE AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE LA QUINTA REDEVELOPMENT AGENCY AND HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC., FOR THE CONSTRUCTION OF AFFORDABLE HOMES AND APPROPRIATION OF FUNDING BUSINESS SESSION - NONE STUDY SESSION - NONE CHAIR AND BOARD MEMBERS' ITEMS - NONE PUBLIC HEARINGS - NONE ADJOURNMENT THE FOLLOWING REGULAR MEETINGS OF THE REDEVELOPMENT AGENCY HAVE BEEN CANCELLED: AUGUST 16, 2011 and SEPTEMBER 6, 2011. The next regular meeting of the Redevelopment Agency will be held on September 20, 2011 commencing with closed session at 3:00 p.m. and open session at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that the foregoing agenda for the La Quinta Redevelopment Agency meeting of August 2, 2011, was posted on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630 Highway 111, on July 29, 2011. DATED July 29, 2011 VERONICA . MONTECINO, City Clerk City of La Quinta, California Public Notice Any writings or documents provided to a majority of the Redevelopment Agency regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quints, California, 92253, during normal business hours. 002 REDEVELOPMENT AGENCY AGENDA 2 AUGUST 2, 2011, AGENDA CATEGORY: RDA MEETING DATE: August 2, 2011 BUSINESS SESSION ITEM TITLE: Approval of Demand Register Dated CONSENT CALENDAR August 2, 2011 STUDY SESSION PUBLIC HEARING RECOMMENDATION: It is recommended the Redevelopment Agency Board: Receive and File the Demand Register Dated August 2, 2011 of which $157,155.74 represents Redevelopment Agency Expenditures. PLEASE SEE CONSENT CALENDAR ITEM NUMBER 1 ON CITY COUNCIL AGENDA •" 003 COUNCIL/RDA MEETING DATE: August 2, 2011 ITEM TITLE: Approval of Amendment No. 2 to the Affordable Housing Agreement by and between the La Quinta Redevelopment Agency and Habitat for Humanity of the Coachella Valley, Inc., for the Construction.of Affordable Homes and Appropriation of Funding RECOMMENDATION: AGENDA CATEGORY: BUSINESS SESSION: CONSENT CALENDAR: 2 STUDY SESSION: PUBLIC HEARING: Approve Amendment No. 2 to the Affordable Housing Agreement between the La Quinta Redevelopment Agency and Habitat for Humanity of the Coachella Valley, Inc., subject to minor modifications approved by the Agency Counsel and Executive Director, and authorize the appropriation of $5,100 from the Redevelopment Project Area No. 1 Low- and Moderate -Income Housing Fund. FISCAL IMPLICATIONS: The original Affordable Housing Agreement ("Agreement") approved an expenditure of $174,940 to construct two single family affordable houses. Construction has been completed; however, Habitat for Humanity ("HFH") experienced minor cost increases due to Coachella Valley Water District fees and the increased cost of stucco. The cost increases total $5,100 and are broken out as follows:. $2,900 for 53220 Avenida Alvarado $2,200 for 53240 Avenida Alvarado Per the Agreement, upon HFH's sale of each of the affordable homes to an income - qualified affordable buyer, fifty percent of the Agency loan would be credited to HFH and transferred to the buyer in the form of a first trust deed loan. Per the proposed amendment, the additional financial assistance will also be credited to HFH and transferred to the buyers, so that the first trust deeds will be recorded with the following amounts: $90,370 for 53220 Avenida Alvarado $89,670 for 53240 Avenida Alvarado „a 004 To amend the agreement as proposed, $5,100 will need to be appropriated from the Redevelopment Project Area No. 1 Low- and Moderate -Income Housing Fund. BACKGROUND AND OVERVIEW: The Agency Board approved the Agreement between the La Quinta Redevelopment Agency and HFH, in August of 2010, which appropriated $174,940 to assist with the construction of two homes affordable to very -low income buyers on properties owned by HFH. As of July 21, 2011, the homes have been completed and RSG is working on qualifying buyers to purchase the homes. The first amendment that followed in February 2011, appropriated $1,100,000 over five years, to assist with the construction of five additional homes within the City. All five of the additional houses are required to be sold to very low-, low- or moderate - income families, which is consistent with the existing Agreement. Due to unanticipated fees related to the Coachella Valley Water District and the increased cost of stucco, HFH has incurred additional expenses and has asked the Agency for additional funding. Because of HFH's good track record, and diligent work with the Agency and other funding partners to contain the costs of constructing these homes, staff recommends that the Agency Board approve the request. FINDINGS AND ALTERNATIVES: The alternatives available to the Agency Board include: 1. Approve Amendment No. 2 to the Affordable Housing Agreement between the La Quinta Redevelopment Agency and Habitat for Humanity of the Coachella Valley, Inc. subject to minor modifications approved by the Agency Counsel and Executive Director, and authorize the appropriation of $5,100 from Redevelopment Project Area No.1 Low- and Moderate -Income Housing Fund to implement the Amendment; or 2. Do not approve Amendment No. 2 to the Affordable Housing Agreement between the La Quinta Redevelopment Agency and Habitat for Humanity of the Coachella Valley, Inc. ; or 3. Provide staff with alternative direction. Respectfully submitted, Debbie,Powell Economic Development/Housing Manager '»"•� 005 Approvedforsubmission by: � l Thomas P. Genovese, Executive Director Attachment: 1. Amendment No. 2 to Affordable Housing Agreement •-° 006 ATTACHMENT AMENDMENT NO.2 TO AFFORDABLE HOUSING AGREEMENT by and between LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic, HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC. a California nonprofit public benefit corporation 007 882/015610-0046 2233639.2 a0L27/11 This AMENDMENT NO. 2 TO ("Amendment") is entered into as of August _ the LA QUINTA REDEVELOPMENT AGEN "Agency"), and HABITAT FOR HUMANIT a California nonprofit public benefit corporation FFORDABLE HOUSING AGREEMENT 2011 (the "Effective Date"), by and between ', a public body, corporate and politic (the OF THE COACHELLA VALLEY, INC., le "Developer"). RECITALS: A. On August 23, 2010, the Agency I and the Developer entered into an Affordable Housing Agreement (the "Original Agreement), pursuant to which the Agency agreed to provide financial assistance to the Developer for the Developer's development and sale of two single-family homes within La Quinta Project Area No. 1 ("Home 1 and Home 2") to income - qualified households at a sales price affordable to (such households. B. On or about February 1, 2011, the Amendment No. 1 to Affordable Housing Agree the Agency agreed to provide additional fit Developer's development and sale of five (5) ac Project Area No. 1 during the five-year period June 30, 2018. The Original Agreement, as n referred to as the "Agreement." All capitalized the meanings ascribed thereto in the Agreement. C. In completing Home 1 and Hon Agency Financial Assistance provided to Deve Developer and Agency now wish to provide for in the amount of Five Thousand One Hundred D [cy and Developer entered into that certain ("Amendment No. 1"), pursuant to which I assistance to the Developer for the ial single-family homes within La Quinta nencing on July 1, 2013, and ending on ed by Amendment No. 1, is hereinafter. not specifically defined herein shall have 2, Developer incurred costs in excess of the per pursuant to the Original Agreement, and i increase in the Agency Financial Assistance ars ($5,100) to cover such excess costs. AGREEMENT: NOW, THEREFORE, in consideration herein by this reference, and for other valuat which is hereby acknowledged, the Agency and 1. The Agreement is hereby am Financial Assistance for the development of Hundred Dollars ($5,100) (the "Additional Hot 2. The Additional Home 1 and Hot from the Agency's Low and Moderate Income Additional Home 1 and Home 2 Agency Finan accordance with the disbursement provisions in 3. Prior to, and as a condition to and Home 2 Agency Financial Assistance, De Agency (i) a replacement promissory note 8821015610-0046 2233639.2 a07/27/11 he foregoing Recitals, which are incorporated consideration, the receipt and sufficiency of weloper hereby agree as follows: led to increase the amount of the Agency ome 1 and Home 2 by Five Thousand One 1 and Home 2 Agency Financial Assistance"). 2 Agency Financial Assistance will be funded )using Fund. Subject to Section 3 below, the l Assistance will be disbursed to Developer in ticle II of the Original Agreement. 's disbursement of the Additional Home 1 shall be obligated to execute and deliver to ntially in the form attached hereto and "• 008 incorporated herein as Exhibit "A" (the "Replacement Promissory Note"); (h) a modification to the Deed of Trust substantially in the form attached hereto and incorporated herein as Exhibit "B" ("Modification to Deed of Trust"), and (iii) an amendment to the Affordable Housing Agreement and Declaration of Covenants, Conditions and Restrictions substantially in the form attached hereto and incorporated herein as Exhibit "C" ("Amendment No. 1 to Declaration"). 4. Upon Developer's sale of Home 1 (53220 Avenida Alvarado) to an Eligible Household, and the Eligible Household's execution of a complete set of Buyer Affordable Housing Documents, Two Thousand Nine Hundred Dollars ($2,900) of the Additional Home I and Home 2 Agency Financial Assistance (in addition to fifty percent (50%) of the Agency Financial Assistance disbursed to Developer pursuant to the Original Agreement) shall be credited to Developer and deemed transferred to the Eligible Household purchasing Home 1. Upon Developer's sale of Home 2 (53240 Avenida Alvarado) to an Eligible Household, and the Eligible Household's execution of a complete set of Buyer Affordable Housing Documents, Two Thousand Two Hundred Dollars ($2,200) of the Additional Home 1 and Home 2 Agency Financial Assistance (in addition to fifty percent (50%) of the Agency Financial Assistance disbursed to Developer pursuant to the Original Agreement) shall be credited to Developer and deemed transferred to the Eligible Household purchasing Home 2. 5. In the event of any action between Agency and Developer seeking enforcement of any of the terms and conditions to this Amendment No. 2, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation its expert witness fees and reasonable attorney's fees. 6. This Amendment No. 2 shall be construed according to its fair meaning and as if prepared by both parties hereto. 7. This Amendment No. 2 shall be governed by the internal laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in such county, shall have exclusive jurisdiction of any litigation between the parties concerning this Amendment No. 2. Service of process on Agency shall be made in accordance with California law. Service of process on Developer shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. 8. Time is of the essence of this Amendment No. 2 and of each and every term and provision hereof. 9. A waiver of a provision hereof, or modification of any provision herein contained, shall be effective only if said waiver or modification is in writing, and signed by both Agency and Developer. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default unless expressly provided herein or in the waiver. 10. This Amendment No. 2 may be executed in counterparts, each of which, when this Amendment No. 2 has been signed by all the parties hereto, shall be deemed an original, and such counterparts shall constitute one and the same instrument. '�"• i - 009 8821015610-0046 _ 2233639.2 a07/27/11 _2 11. The person(s) executing this Amendment No. 2 on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 2 on behalf of said party, (iii) by so executing this Amendment No. 2 such party is formally bound to the provisions of. this Amendment No. 2, and (iv) the entering into this Amendment No. 2 does not violate any provision of any other agreement to which such party is bound. . 12. Except as otherwise expressly provided in this Amendment No. 2, all of the terms and conditions of the Agreement shall remain in full force and effect. [End — Signatures on next page] �". 010 882/015610-0046 2233639.2 a0727/11 IN WITNESS WHEREOF, the Agency and the Developer have signed this Amendment No. 2 on the respective dates set forth below. Dated: ATTEST: Veronica J. Montecino, CMC Agency Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP M. Katherine Jenson, Agency Counsel Dated: Dated: LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and politic IN Thomas P. Genovese, Executive Director HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC., a California nonprofit public benefit corporation By: Its: By: Its: '"n 882/015610-0046 � ''� 2233639.2 a07/27/11 _4 Oil EXHIBIT "A" REPLACEMENT PROMISSORY NOTE [See following document] 012 882/015610-0046 2233639.2 a07/27/11 REPLACEMENT PROMISSORY NOTE $180,040 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 Eighty Thousand Forty Dollars ($180,040) (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) That certain Affordable Housing Agreement between Borrower and Agency dated August 23, 2010, as may be amended from time to time ("Original 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 Original AHA as the "Site." (b) That certain Amendment No. 1 to Affordable Housing Agreement between Borrower and Agency dated February 1, 2011 ("Amendment No. I"), which provides for Borrower's redevelopment of additional real property located, or to be located, in the City of La Quinta, County of Riverside, State of California. (c) That certain Amendment No. 2 to Affordable Housing Agreement between Borrower and Agency dated August _, 2011 ("Amendment No. 2"), which provides for Agency's provision of additional financial assistance to cover certain excess costs incurred by Developer in developing the Site. The Original AHA, as amended by Amendment No. I and Amendment No. 2, is hereinafter referred to as the "AHA." All terms not otherwise defined herein shall have the meanings given in the AHA. (d) That certain Promissory Note executed by Borrower on August 18, 2010, that evidences Borrower's repayment obligations for the Agency Financial Assistance provided to Borrower by Agency pursuant to the Original AHA (the "Original Note"). (e) That certain 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 (the "Official Records") on August 30, 2010, as Instrument No. 2010- 0414647 ("Original Declaration"). '�"• - 013 8821015610-0046 2233639.2 a07/27/11 _ 1 _ (f) That certain Amendment No. 1 to Affordable Housing Agreement and Declaration of Covenants, Conditions and Restrictions between Agency and Borrower, recorded against the Site in the Official Records on or about the date hereof ("Amendment No. 1 to Declaration"). The Original Declaration, as modified by Amendment No. 1 to Declaration, is hereinafter referred to as the "Declaration.") (g) That certain Deed of Trust securing the Original Note executed by Borrower in favor of Agency, recorded against the Site in the Official Records on August 30, 2010, as Instrument No. 2010-0414646 ("Original Deed of Trust"). (h) That certain Modification to Deed of Trust executed by Borrower in favor of Agency, recorded against the Site in the Official Records on or about the date hereof ("Modification to Deed of Trust"). The Original Deed of Trust, as modified by the Modification, is hereinafter referred to as the "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. Replacement of Original Note. This Replacement Note replaces, in its entirety, the Original Note. 2. Note Amount; Interest. (a) Note Amount. The principal amount of Agency's loan to Borrower is One Hundred Eighty Thousand Forty Dollars ($180,040) ("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 4 below, no interest shall accrue on the outstanding principal Note Amount. 3. Term of Note; Repayment. Repayment of the Loan Amount shall be as follows: (a) Subject to the provisions of Section 4 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 Home 1 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 Ninety Thousand Three Hundred Seventy Dollars ($90,370). Upon Borrower's sale of Home 2 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 Eighty -Nine Thousand Six Hundred Seventy Dollars ($89,670). Upon the occurrence of either of such sale and corresponding reduction in the Note Amount, the amount by which the Note Amount is reduced 882/015610-0046 2233639.2 a07/27/11 -2- shall be deemed transferred to the applicable 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. 4. 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 the 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 4 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. 5.. 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. 6. 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 Agency and any owner of the premises affected by said documents securing this Note, without in any affecting the liability of any party to this Note or any persons liable or to become liable with respect to any indebtedness evidenced hereby. 7. 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 '-" 015 882/015610-0046 _ 2233639.2 a07/27/11 -3 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 internal 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. 8. No Waiver by Agency. No waiver of any breach, default, or failure of condition under the terms of this Replacement 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. 9. Usury. Notwithstanding any provision in this Replacement 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. 10. Non -Recourse Obligation. In the event of any default under the terms of this Replacement 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 Replacement 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). 11. Assignment. Borrower may not transfer or assign this Replacement 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 Replacement Note. 12. Counterparts. This Replacement Note may be executed in counterparts, each of which, when this Replacement Note has been signed by all the parties hereto, shall be deemed an original, and such counterparts shall constitute one and the same instrument. [End of Replacement Note — Signature page follows] 016 882/015610-0046 2233639.2 a0727/11 -4- Dated: Dated: Dated: ATTEST: Agency Secretary APPROVED AS TO FORM RUTAN & TUCKER, LLP: Agency Counsel "Borrower" HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC., a California nonprofit public benefit corporation By: Its: By: Its: "Agency" LA QUINTA REDEVELOPMENT AGENCY, a public body corporate and politic By: Executive Director •,.a 017 882/015610-0046 2233639.2 a07/27/11 511 EXHIBIT "A" TO ATTACHMENT NO.3 DISBURSEMENT RECORD Disbursement Amount Date Acknowledgment of Receipt of Borrower 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 8821015610-0046 22336392 a07/27/11 _] EXHIBIT `B" MODIFICATION TO DEED OF TRUST [See following document] 0119 882/015610-0046 _ 2233639.2 a07/27/11 _ RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO:) La Quinta Redevelopment Agency P.O. Box 1504 La Quinta, CA 92247 Attn: Executive Director Exempt from Recordation Fee per Gov. Code § 27383 MODIFICATION OF DEED OF TRUST This MODIFICATION OF DEED OF TRUST ("Modification") is dated as of August , 2011, and made by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency" or "Beneficiary"), and HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC. ("Trustor"). RECITALS A. Trustor, as "Trustor," executed that certain Deed of Trust With Assignment of Rents dated September 15, 1992, in favor of First American Title Company, as Trustee, and Beneficiary, as the beneficiary thereunder, recorded on August 30, 2010, as Instrument No. 2010-0414646, in the Official Records of Riverside County, California ("Deed of Trust"), pursuant to which they granted to the Trustee, for the benefit of Beneficiary, certain real property more particularly described in the Deed of Trust ("Property"). B. Trustor and Beneficiary now desire to amend the Deed of Trust as more particularly described herein. NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows: 1. Modification to Deed of Trust. The Deed of Trust is hereby modified as follows: a. To replace the clause (a) of the second paragraph on page 1, in its entirety, with the following: (a) payment of the sum of One Hundred Eighty Thousand Forty Dollars ("Note Amount'), with interest thereon according to the terms 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. No Other Modification. Except as expressly modified by this Modification, the Deed of Trust shall remain unmodified and in full force and effect. ".» 020 882/015610-0046 _ 2233639.2 a0727/11 -1 C. Counterparts. This Modification may be executed in counterparts, each of which, when this Modification has been signed by all the parties hereto, shall be deemed an original, and such counterparts shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Modification as of the date set forth above. "Beneficiary" LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic Executive Director ATTEST: Agency Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP Agency Counsel "Trustor" HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC., a California nonprofit public benefit corporation By: Its: By: Its: '""•J 021 882/015610-0046 2233639.2 a0727/11 EXHIBIT "C" AMENDMENT NO. I TO DECLARATION [See following document] 882/015610-0046 ',•� 022 2233639.2 a07/27/11 _I RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: La Quinta Redevelopment Agency P.O. Box 1504 La Quinta, CA 92247 Attn: Executive Director (Space Above for Recorder's Use) Exempt from Recordation Fee per Gov. Code § 27383 AMENDMENT NO. 1 TO AFFORDABLE HOUSING AGREEMENT AND DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS This AMENDMENT NO. 1 TO AFFORDABLE HOUSING AGREEMENT AND DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS (this "Amendment No. 1") is made by and between HABITAT FOR HUMANITY OF THE 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 day of August, 2011. RECITALS A. Developer and Agency are parties to that certain Affordable Housing Agreement and Declaration of Covenants, Conditions and Restrictions dated August 23, 2010, and recorded in the Official Records of the County of Riverside on August 30, 2010, as Instrument No. 2010- 0414647 (the "Declaration"). Unless otherwise defined herein, terms used in this Amendment No. 1 shall have the meanings ascribed thereto in the Declaration. B. The Declaration was executed pursuant to an Affordable Housing Agreement entered into by and between Developer and Agency and dated August 23, 2010, which was later amended by that certain Amendment No. 1 to Affordable Housing Agreement dated February 1, 2011 (as amended, the "Original AHA"). The Original AHA provides for Developer's construction on the real property encumbered by the Declaration of an affordable housing project referred to in the Declaration as the "Project". C. Pursuant to the Original AHA, (i) the Agency agreed to provide Developer with a loan in the amount of One Hundred Seventy -Four Thousand Nine Hundred Forty Dollars ($174,940) (the "Original Agency Loan Amount") to construct the Project, and (ii) 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, fifty percent (50%) of the outstanding principle balance of the Original Agency Loan Amount was to be credited to the Developer and deemed transferred to said Eligible Household, in the form of a first trust deed loan. 882/015610-0046 _ 11." 023 2233639.2 a07/27/11 -] D. On or about August _, 2011, Agency and Developer entered into that certain Amendment No. 2 to Affordable Housing Agreement ("Amendment No. 2 to AHA"), pursuant to which Agency agreed to increase the amount of the Agency's financial assistance to Developer by Five Thousand One Hundred Dollars ($5,100) (the "Additional Agency Financial Assistance"). E. Agency and Developer now wish to amend the Declaration to provide that, upon the transfer of the two Homes to Eligible Households, the Additional Agency Financial Assistance shall be credited to the Developer and transferred to said Eligible Households, all as more fully described herein. NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Agency and Developer hereby agree as follows: 1. The Declaration is hereby amended as follows: A. As used in this Amendment No. 1 and in the Declaration, the term "Agency Loan" shall mean and refer to the sum of the Original Agency Loan Amount and the Additional Agency Financial Assistance. B. Upon Developer's sale of the Home to be constructed at 53220 Avenida Alvarado to an Eligible Household at an Affordable Sales Price and the Eligible Household's execution of a complete set of Buyer Affordable Housing Documents, Ninety Thousand Three Hundred Seventy Dollars ($90,370) of the Agency Loan shall be credited to the Developer and deemed transferred to said Eligible Household, in the form of a first trust deed loan. Upon Developer's sale of the Home to be constructed at 53240 Avenida Alvarado to an Eligible Household at an Affordable Sales Price and the Eligible Household's execution of a complete set of Buyer Affordable Housing Documents, Eighty -Nine Thousand Six Hundred Seventy Dollars ($89,670) of the Agency Loan shall be credited to the Developer and deemed transferred to said Eligible Household, in the form of a first trust deed loan. As used in the Declaration, the term "Homebuyer Loan" shall refer to the portion of the Agency. Loan transferred to the Eligible Buyer in question pursuant to this paragraph. 2. In the event of any action between Agency and Developer seeking enforcement of any of the terms and conditions to this Amendment No. 1, the prevailing party in such action. shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, including without limitation its expert witness fees and reasonable attorney's fees. 3. This Amendment No. 1 shall be construed according to its fair meaning and as if prepared by both parties hereto. 4. This Amendment No. 1 shall be governed by the internal laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Superior Court of the State of California in and for the County of Riverside, or such other appropriate court in such county, shall have exclusive jurisdiction of any litigation between the parties concerning this Amendment No. 1. Service of process on Agency shall be made in 882/015610-0046 2233639.2 a0727/11 -2 accordance with California law. Service of process on Developer shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. 5. Time is of the essence of this Amendment No. 1 and of each and every term and provision hereof. 6. A waiver of a provision hereof, or modification of any provision herein contained, shall be effective only if said waiver or modification is in writing, and signed by both Agency and Developer. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default unless expressly provided herein or in the waiver. 7. This Amendment No. 1 may be executed in counterparts, each of which, when this Amendment No. 1 has been signed by all the parties hereto, shall be deemed an original, and such counterparts shall constitute one and the same instrument. 8. The person(s) executing this Amendment No. 1 on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1 such party is formally bound to the provisions of this Amendment No. 1, and (iv) the entering into this Amendment No. 1 does not violate any provision of any other agreement to which such party is bound. 9. Except as otherwise expressly provided in this Amendment No. 1, all of the terms and conditions of the Declaration shall remain in full force and effect. [End — Signature page follows] 882/015610-0046 •ob. 2233639.2 a07/27/11 .3 O 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. "Agency" LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic Dated 2011 By: ATTEST: Agency Secretary APPROVED AS TO FORM RUTAN & TUCKER, LLP Attorneys for the La Quinta Redevelopment Agency Its: Executive Director "Developer" HABITAT FOR HUMANITY OF THE COACHELLA VALLEY, INC., a California nonprofit public benefit corporation Dated 2011 By: Its: Dated 2011 By: Its: • 882/015610-0046 076 _ - 2233639.2 a07/27/11 -4 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. State of California County of Riverside On before me, (Seal) (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. Signature (Seal) 882/015610-0046 •Y 027 2233639.2 a07/27/11 -5-