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1994 E.G. Williams Development Corp - Affordability Agrmt4 lr „r AFFORDABILITY AGREEMENT 5fvc ou;o,� �250 2 B.:... O RECORDING REQUESTED BY ) W Y rn a: j p » AND WHEN RECORDED MAIL TO: ) W cm !?+ LA QUINTA REDEVELOPMENT AGENCY 78-495 Calle Tampico ) La Quinta, California 92253 Attention: Executive Director ) �% [Space above for recorder.] This document is exempt from the j payment of a recording fee pursuant to ,ri) Government Code Section 6103. AFFORDABILITY AGREEMENT (AGENCY REGULATORY AGREEMENTI b.µ,_ THIS AFFORDABILITY AGREEMENT ("AGREEMENT") is entered into this') ' day of *� Le- 4— 1994, by and between the LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic (the "Agency") and E. G. WILLIAMS DEVELOPMENT CORPORATION, a California corporation (the "Developer"). RECITALS WHEREAS, Developer has acquired that certain real property located within the City of La Quinta as more particularly described in Exhibit "A" attached hereto and incorporated by referece (the "Property"); and WHEREAS, the Developer has agreed to construct sixty (60) detached single-family homes, ninety (90) rental units designed for occupancy by senior citizens, one (1) manager unit and streets, gutters, drainage and other off -site facilities; and WHEREAS, a purpose of this Agreement is to ensure that the units developed pursuant to the requirements of the DDA shall be available at an Affordable Housing Cost for Ownership Units and at an Affordable Rent for Rental Units for the period from the issuance of a Certificate of Occupancy for the Affordable Units until June 15, 2029 and that all sales or rentals of the units shall be made only in accordance with the provisions of this Agreement. PUBL:20471_111871 B2338.22 1 10/24/94 415017 NOW, THEREFORE, in consideration of their mutual covenants and conditions, the parties hereto agree as follows: ARTICLE 1 1.1. "Affordability Period" means, as to each Ownership Property sold pursuant to this Agreement, the period commencing with the initial sale of such Ownership Property and ending on June 15, 2029. 1.2. "Affordable Housing Cost" has the meaning as set forth in Section 50052.5(b) of the Health and Safety Code as in effect as of the date of approval of the DDA by the Agency. 1.3. "Affordable Rent" has the meaning as set forth in Section 50053 of the Health and Safety Code as in effect as of the date of approval of the DDA by the Agency. 1.4. "Agency" means the La Quinta Redevelopment Agency, a public body, corporate and politic. 1.5. [Intentionally Omitted] 1.6. "Agency Ownership Escrow Documents" means, as to each sale or buyer receiving Ownership Assistance pursuant to this Agreement, all of the following: (i) the Resale Restriction Agreement and Option to Purchase, (ii) the Declaration of Conditions, Covenants and Restrictions (including without limitation the acknowledgment to such Declaration of Conditions, Covenants and Restrictions to be executed by the Buyer), (iii) the Buyer/Agency Note, (iv) the Buyer Disclosure, (v) the Subordination Agreement (if applicable), (vi) the Grant Deed, (vii) the Request for Notice of Delinquency, and (viii) this Affordability Agreement. 1.7. "Agreement" means this Regulatory Agreement. 1.8. "Applicable Median Income" means the median income applicable to Riverside County as published from time to time by the United States Department of Housing and Urban Development, or if such determinations are discontinued, by the Department of Housing and Community Development of the State of California all as more particularly set forth in Section 50093(c) of the Health and Safety Code. 1.9. [Intentionally Omitted] 1.10. "Applicable Required Period" is defined in Section 301 of the DDA. 1.11. 'Buyer" means a Qualifying Buyer that purchases an Ownership Property pursuant to the DDA. 1.12. 'Buyer/Agency Loan" means a loan from the Agency to a Buyer as evidenced by a Buyer/Agency Note. PURL:20471_111871 B2338.22 2 10/24/94 41501'7 1.13. 'Buyer/Agency Note" means a promissory note substantially in the form of Attachment No. 9 to the DDA. 1.14. 'Buyer Disclosure" means Attachment No. 19 to the DDA. 1.15. "Certification of Income' means Exhibit B to the Declaration of Conditions, Covenants and Restrictions (Attachment No. 15 to the DDA). 1.16. "Certificate of Occupancy" means the certificate of occupancy to be issued by the Building Official of the City upon the final completion of the Ownership Units and Rental Units on the Property pursuant to the terms of the DDA. 1.17. "City" means the City of La Quinta, California. 1.18. "City Development Approvals" means, collectively, all approvals by the City, including without limitation CUP 94-014, maps, plans, drawings, determinations and requirements pursuant to the California Environmental Quality Act, and includes all conditions of approval required by the City in connection therewith. 1.19. [Intentionally Omitted] 1.20. [Intentionally Omitted] 1.21. "DDA" means the First Restated and Amended Disposition and Development Agreement by and between the Agency and the Developer which was executed by the Developer on September 30, 1994. 1.22. "Declaration of Conditions, Covenants and Restrictions" means Attachment No. 15 to the DDA. 1.23. "Detention Basin Area" means that approximately five (5) acre portion of the La Quinta Redevelopment Project Area designated as the cross -hatched area on the Site Map which is attached to the DDA as Attachment No. 1. 1.24. "Detention Basin Assistance" means an amount not to exceed Four Hundred Seventy - Three Thousand Dollars ($473,000) to be disbursed by the Agency to the Developer pursuant to Section 330 of the DDA. 1.25. 'Detention Basin Improvements" means all improvements of any kind on or to the Detention Basin Area, including without limitation, buildings, structures, landscaping and any other physical improvement of any kind. 1.26. 'Developer" means E. G. Williams Development Corporation, a California corporation. 1.27. "Exceptions of Title" means all exceptions, clouds, encumbrances, limitations, liens, deeds of trust, easements, or covenants of record as to the Site or any portion thereof. PUBL:20471 111871 B2338.22 3 10/24/94 415017 1.28. "Fannie Mae" means the Federal National Mortgage Association, a federally chartered corporation. 1.29. "Low Income Buyer" means a Qualifying Buyer having an income not greater than eighty percent (80%) of the areawide median income, as determined by the Agency pursuant to Section 50052.5(b)(2) of the California Health & Safety Code. 1.30. "Low Income Renters" means a household having an income of not greater than eighty percent (80%) of the areawide median income as determined by the Agency pursuant to Section 50053 of the California Health and Safety Code. 1.31. "Maintenance Agreement" means Attachment No. 13 to the DDA. 1.32. "Maximum Purchase Price" means as to Model 1, One Hundred Six Thousand Nine Hundred Dollars ($106,900), as to Model 2, One Hundred Eleven Thousand Nine Hundred Dollars ($111,900), and as to Model 3, One Hundred Fifteen Thousand Nine Hundred Dollars ($115,900). Each of the foregoing Model 1, Model 2, and Model 3 shall be of a quality and size as specified by the terms of the City Development Approvals. 1.33. "Memorandum of Agreement" means Attachment No. 20 to the DDA which shall be recorded with respect to the Rental Properties. 1.34. "Off -Site Improvements" means those improvements so designated in the Scope of Development, including, without limitation, the Detention Basin Improvements. 1.35. "Ownership Assistance" means an amount equal to the lesser of (i) Sixty -Eight Thousand Nine Hundred Dollars ($68,223) or (ii) fifty-nine percent (59%) of the purchase price of the applicable Ownership Unit including in the purchase price, for purposes of this calculation, closing costs allowable to the Buyer. 1.36. "Ownership Property" means that portion of the Site on which the Ownership Units shall be located and which is legally described in Attachment No. 2 to the DDA. 1.37. "Ownership Conveyance Area Deed of Trust" means Attachment No. 21 to the DDA. 1.38. "Ownership Conveyance Area Promissory Note" means Attachment No. 22 to the DDA. 1.39. "Ownership Units" means those parcels enumerated in Attachment No. 3 to the DDA as the Ownership Units. 1.40. "Permitted Exceptions" means those certain Exceptions to Title as the Agency Executive Director may hereafter determine, at his sole discretion, to be allowable to remain of record. 1.41. "Qualified Project Period" means: (i) as to the Rental Property, the Rental Period, and (ii) as to the Ownership Property, the Affordability Period. ruBL:20471 111871 B2338.22 4 10/24/94 415017 1.42. "Qualifying Buyer" means a household having an income of not greater than one hundred twenty percent (120%) of the areawide median income, as determined by the Agency pursuant to Section 50052.5 of the California Health and Safety Code. Qualifying Buyers shall contribute at least three percent (3 %) of the purchase price plus applicable closing costs towards the purchase of each applicable Ownership Unit. 1.43. "Qualifying Renter" means a household having an income of not greater than eighty percent (80%) of the areawide median income, as determined by the Agency pursuant to Section 50053 of the California Health and Safety Code. Furthermore, the Developer shall restrict occupancy to Senior Citizens and "Qualified Permanent Residents" (as defined in Section 51.3 of the California Civil Code) in the rental of all Rental Units. Except as otherwise provided herein, at least one person in residence in each dwelling unit must be a Senior Citizen, and other residents in the same dwelling unit who are not Senior Citizens must be Qualified Permanent Residents. Temporary guests of a Senior Citizen or Qualified Permanent Resident shall be allowed for a period of not more than sixty (60) days in any twelve (12) month period. Upon the death, dissolution of marriage, hospitalization or other prolonged absence of the Senior Citizen in a dwelling unit, any Qualified Permanent Resident who has continuously resided in the dwelling unit with such Senior Citizen shall be permitted to continue as a resident of that dwelling unit. "Permitted Health Care Residents" (as that term is defined in California Civil Code Section 51.3) shall be permitted to occupy any dwelling unit during any period that such person is actually providing live-in, long-term or hospice health care to a Senior Citizen occupant or Qualified Permanent Resident occupant for compensation. 1.44. "Rental Assistance" means an amount equal to the obligation evidenced by the Rental Conveyance Area Promissory Note (Attachment No. 11 to the DDA). 1.45. "Rental Improvements" means all improvements required pursuant to this Agreement to be developed on the Rental Property. 1.46. "Rental Period" means the period commencing with the date on which a certification of occupancy is issued for the Rental Units and ending on June 15, 2029. 1.47. "Rental Property" means that portion of the Site on which the Rental Units shall be located and which is described in Attachment No. 2 to the DDA. 1.49. "Rental Units" means those senior rental units (each a "Rental Unit"; in the aggregate also the "Rental Units") constructed on the Rental Property and so designated on Attachment No. 2 to the DDA. 1.49. "Rental Property Loan" means the Agency loan to the Developer as more fully set forth in Section 201 of the DDA and evidenced by the Rental Conveyance Area Promissory Note (Attachment No. 11 to the DDA). 1.50. "Rental Conveyance Area Deed of Trust" means Attachment No. 12 to the DDA. 1.51. "Rental Conveyance Area Promissory Note" means Attachment No. 11 to the DDA. ruBL:20471_111871 B2338.22 5 10/24/94 41501'7 1.52. "Request for Notice of Delinquency" means a request for written notice of delinquencies on any lien which is senior to the Agency deeds of trust pursuant to Section 2924(e) of the California Civil Code, substantially in the form attached to the DDA as Attachment No. 14. 1.53. "Sale Period" means the period commencing upon the execution of the DDA and ending on the third anniversary of such date. 1.54. "Senior Citizen" shall mean persons sixty-two (62) years of age or older, subject to applicable law. 1.55. "Site" means that approximately twenty and twenty-three one -hundredths (20.23) acre portion of the La Quinta Redevelopment Project Area designated on the Site Map and described in the Legal Descriptions which is attached to the DDA as Attachment No. 2. The Site shall consist of two areas: the Ownership Property of approximately eleven and twenty-three one -hundredths (11.23) acres on which the Ownership Units will be constructed and the Rental Property of approximately nine (9) acres on which the Rental Units shall be constructed. 1.56. "Site Improvements" means all improvements of any kind on or to the Site, including without limitation, buildings designed for human occupancy, garages, carports, other structures, landscaping, and any other physical improvements of any kind as so designated in the Scope of Development (Attachment No. 7 to the DDA). 1.57. "Tax Credits" means Low Income Housing Tax Credits which are (i) described pursuant to Section 42 of the Internal Revenue Code and (ii) approved for the development of the Rental Units by the California Tax Credit Allocation Committee. 1.58. "Tax Credit Program" means the administration by state or federal agencies of Tax Credits, and includes the recordation of a regulatory agreement ("Tax Credit Regulatory Agreement") which concerns operation of housing projects in conformity with applicable laws which govern Tax Credits. 1.59. "Tax Credit Regulatory Agreement" means a regulatory agreement required by applicable state or federal enactments in connection with the use of Tax Credits in connection with the financing, development or operation of the Rental Units. 1.60. "Very Low Income Renter" means a Qualifying Renter having an income not greater than Fifty percent (50%) of the areawide median income, as determined by the Agency pursuant to Section 50053 of the California Health & Safety Code. ARTICLE 2 LAND USE RESTRICTIONS 2.1. Commitment of Units for Affordable Housing. The Developer covenants and agrees to make the Ownership Units available for sale to Qualifying Buyers and the Rental Units available for rental to Qualifying Renters. The respective ownership and rental units are to remain affordable for the respective periods of time set forth in Sections 324 and 326 of the DDA. PUBu20471_1 11871 B2338.22 6 10/24/94 415017 2.2. Determination of Purchase Price. The Developer shall sell all Ownership Units at an Affordable Housing Cost to Qualifying Buyers. 2.3. Approval of Initial Purchasers. Ten (10) Ownership Units shall be sold to households having incomes not in excess of fifty percent (50%) of the area wide median income, (the "Lower Income Ownership Units"); ten (10) of the Ownership Units shall be sold to households having incomes not in excess of eighty percent (80%) of the area wide median income, (the "Low Income Ownership Units"); the remaining forty two (42) Ownership Units shall be sold to households having incomes not in excess of one hundred twenty percent (120%) of areawide median income (the "Moderate Income Ownership Units"), all as defined by the Agency pursuant to Section 50052.5 of the California Health and Safety Code. No transfer of an Ownership Unit from the Developer or Owner to a purchaser shall occur until the Agency determines that (a) the proposed purchaser intends to occupy the Ownership Unit as the proposed purchaser's principal residence, (b) the proposed purchaser is a Qualifying Buyer, and (c) the proposed transfer occurs at an Affordable Housing Cost. Prior to the conveyance of each Ownership Unit, the Developer shall obtain and deliver to the Agency from each such proposed purchaser such information and completed forms as the Agency shall request to certify the transfer price, proposed purchaser's intent with respect to its residence in the Ownership Unit, and its gross income, and the Owner shall execute and deposit into escrow for delivery to the Agency the Agency Ownership Escrow Documents. The Developer shall cooperate with the Agency in assisting such purchasers to prepare such forms and provide any required information to the Agency in connection with the Developer's original sale of the Ownership Unit. The Agency shall approve or disapprove such proposed purchasers within seven (7) days of its receipt of all requested information, forms and disclosure statements from such proposed purchasers. The Agency's approval or disapproval shall be based only on the criteria set forth above in subsections (a), (b) and (c). If the Agency shall fail to approve or disapprove any such proposed purchaser within such seven (7) day period, unless such time has been extended in writing by the Agency, the proposed purchaser shall be deemed disapproved. 2.4. Buyer/Agency Documents. In connection with each conveyance to a Qualifying Buyer, the Qualifying Buyer shall execute the Agency Ownership Escrow Documents. Notwithstanding anything provided herein to the contrary, however, the Agency agrees to forgive interest on each such promissory note and to limit its right to share in the appreciation of each Ownership Unit as may be necessary to avoid situations in which the applicable homebuyer's obligations under the first deed of trust, plus the Buyer/Agency Note, exceed the fair market value of the applicable Ownership Property. 2.5. Covenants to Remain Affordable. Prior to the conveyance of any of the Ownership Units to the Qualifying Buyers, the Developer shall execute and record the Declaration of Conditions, Covenants and Restrictions in the Official Records of Riverside County, California, which shall provide all of the following: a. Each Ownership Unit shall be owner -occupied and the owner shall be a Qualifying Buyer and each Ownership Unit shall only be conveyed at an Affordable Housing Cost to a Qualifying Buyer; ruBL:20471_111871B2338.22 7 10/24/94 41501'7 b. Prior to any transfer of any portion of the Ownership Unit, the Owner shall submit to the Agency (i) a request for approval of the proposed transferee , (ii) the proposed sale price, and (iii) written acknowledgement of the proposed transferee that the Ownership Unit would be transferred to such transferee subject to a Promissory Note payable to the Agency which provides in part for shared appreciation, whereupon the Agency shall determine if the proposed transferee is a Qualifying Buyer, and if such matters conform to this Agreement, the Agency shall approve the proposed transferee; C. There shall be no discrimination against any person on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Ownership Unit; d. The owner(s) of any portion of the Ownership Unit shall properly maintain the buildings, landscaping and yard areas on such portion of the Ownership Unit owned by such owner(s), and if such buildings, landscaping and yard areas are not so maintained, and such condition is not corrected as soon as possible after notice from the Agency or the City, then either the Agency or the City may perform the necessary maintenance and the owner(s) shall pay such costs as are reasonably incurred for such maintenance; e. The Declaration of Conditions, Covenants and Restrictions shall, throughout their term, be binding for the benefit of the Agency and the City without regard to whether the Agency or the City is an owner of any land to which the Declaration of Conditions, Covenants and Restrictions relate; and f. The Declaration of Conditions, Covenants and Restrictions shall be binding for a period terminating upon the expiration of the Affordability Period. To the extent permissible under applicable law, the Agency shall permit sales of the Ownership Unit prior to the expiration of the term of the Declaration of Conditions, Covenants and Restrictions for a price in excess of an Affordable Housing Cost, provided that the seller of the Ownership Unit pays to the Agency the shared appreciation amount as determined pursuant to the Buyer/Agency Note. In the event that any provision in this Section 2.5 is found to be contrary to applicable law or the Resale Restriction Agreement and Option to Purchase or provisions of the Fannie Mae Community Partnership Program as in effect as of the date of approval of this Agreement by the Agency, this Section 2.5 shall be deemed to mean those provisions which are enforceable under and consistent with such laws and policies. The remaining provisions of this Agreement shall be deemed modified in a manner which is consistent with the goals and intent of this Agreement to provide housing at an Affordable Housing Cost to low -and moderate -income households. Every provision of this Section 2.5 is intended to be severable. In the event any term or provision of this Section 2.5 is declared by a court of competent jurisdiction to be unlawful, invalid or unenforceable for any reason, such determination shall not affect the balance of the terms and provisions of this Section 2.5, which terms and provisions shall remain binding and enforceable. 2.6. Marketing. The Developer shall market the Ownership Units to persons who live and work within the City, through communication with employers within the City, to the extent permitted by law. ruaL:20471_111871 B2338.22 8 10/24/94 415017 2.7. Best Efforts to Sell Ownership Units. The Developer agrees to exercise best efforts consistent with prudent business practices to sell all of the Ownership Units as soon as practical. The Developer agrees that the Ownership Units shall not be leased by the Developer or any party related to the Developer without the prior written approval of the Agency. 2.8. Rental Units a. Selection of Tenants. The Developer shall, either itself or through its agent, maintain all of the Rental Units and restrict the occupancy of such units to senior citizens. Eighty- two (82) of the Rental Units shall be one bedroom units; the remaining nine (9) Rental Units shall be two bedroom units. Forty (40) of the one bedroom Rental Units shall be made available for rent to Very Low Income Renters; twenty-six (26) of the one bedroom Rental Units shall be made available to Low Income Renters; the remaining fifteen (15) one bedroom units, not inclusive of one of which shall be made available to the manager of the Rental Units, shall also be maintained as dwelling units occupied throughout the Rental Period by households which are Qualifying Renters except that those households occupying such fifteen (15) units shall have an income of not greater than one hundred twenty percent (120%) of the areawide median income. Five (5) of the two bedroom Rental Units shall be made available to Very Low Income Renters; the remaining four (4) two bedroom Rental Units shall be made available to Low Income Renters of Very Low or Low Income Households. As specified hereinbelow, Developer shall demonstrate to the satisfaction of the Agency that the proposed tenants of the Rental Units are Qualifying Renters. Prior to the rental or lease of Rental Unit to a tenant, the Developer shall require the tenant execute a written lease and complete an Income Verification certifying that the prospective tenant(s) occupying the Rental Unit is/are Qualifying Renters and meet(s) the eligibility requirements established for the Rental Unit. The Developer shall verify the Income Verification of the tenant(s) in one or more of the following methods as specifically set forth in the Income Verification. A person or family who at the time of income certification qualified as a Qualifying Renter shall continue to be deemed so qualified, until such time as the person or family's income is redetermined and the person or family is determined by the Agency to no longer be so qualified, even if such person or family's income has subsequently increased to an amount above the applicable income level. Upon the Agency's determination that the tenant of one of the Rental Units is no longer qualified as a Qualifying Renter the next available unit must be rented to (or held vacant and available for immediate occupancy by) a Qualifying Renter. The Developer shall promptly notify the Executive Director if it has reason to believe that a renter or renters of one or more of its Rental Units do or does not qualify as Qualifying Renters. For purposes of satisfying the requirement that all of the Rental Units be maintained as affordable to Qualifying Renters, a tenant who qualifies as a Qualifying Renter at the time he or she first occupies such a rental unit shall be deemed to continue to be so qualified until demonstrated otherwise by the tenant's annual Income Verification. At such time as the tenant ceases to meet the income qualifications of a Qualifying Renter, the unit occupied by such tenant shall not be countable as an affordable unit for so long as the income qualifications are not met; provided that such circumstance shall not be deemed to constitute a default by the Developer so long as (i) upon becoming vacant, the same unit is rented to a Qualifying Renter and (ii) the next available unit is rented to a Qualifying Renter. PUBL:20471_111871 B2338.22 9 10/24/94 41531'7 The Developer shall give notice to the Agency of the vacancy of each and any of the Rental Units. The Agency may, but is in no way obligated to, notify prospective tenants of such vacancy. The Developer shall not be required to lease such affordable units to a tenant referred by the Agency, but the Developer shall accept or reject any such tenant based solely upon lawful and reasonable evaluation criteria. b. Determination of Affordable Rent for the Rental Units. The Rental Units shall be rented or leased at a rent not in excess of Affordable Rent to Qualifying Renters. THE DEVELOPER UNDERSTANDS AND KNOWINGLY AGREES THAT THE MAXIMUM RENTAL FOR THE RENTAL UNITS ESTABLISHED BY THIS AGREEMENT AS AN AFFORDABLE RENT IS NOT NECESSARILY EQUAL TO THE FAIR MARKET RENT FOR THE RENTAL UNITS, AND MAY BE SUBSTANTIALLY BELOW THE FAIR MARKET RENT. THE DEVELOPER FURTHER UNDERSTANDS AND KNOWINGLY AGREES THAT THE TAX CREDIT PROGRAM MAY IMPOSE ADDITIONAL RESTRICTIONS AND LIMITATIONS UPON THE RENTS WHICH MAY BE CHARGED AS TO THE RENTAL UNITS. Developer Initials: C. Records and Program Compliance. Developer shall maintain on file the tenant(s) executed Income Verification(s) and all rental records for the Rental Properties. The Developer shall prepare and submit to the Agency on the first anniversary of the issuance of the approval of the DDA by the Agency and annually thereafter throughout the Qualified Project Period, a Certification of Continuing Program Compliance. Such documentation shall state for each unit the unit size, the rental amount, the number of occupants and the income of the occupants and any other information which may be used to determine compliance with the terms and conditions of this Agreement. Developer shall permit the Agency at any time during normal business hours to inspect Developer's records in connection with the operation of the Rental Properties. The Developer covenants and agrees for its successors, its assigns and every successor in interest to the Site or any part thereof to use, maintain, and operate the Rental Properties in accordance with this Agreement for the Qualified Project Period. None of the Rental Properties shall at any time be utilized on a transient basis nor shall any of the Rental Properties ever be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest home. Developer shall not convert the Rental Properties to condominium ownership during the Qualified Project Period without the prior written approval of the Agency, which approval the Agency may grant, withhold, conditionally grant, or deny in its sole and absolute discretion. d. Failure to Comply. In the event the Developer maintains less than all of the Rental Properties available at Affordable Rent to Qualifying Renters, the Developer shall be in noncompliance with this Agreement. In the event the Developer remains in noncompliance for more than ninety (90) days following the transmittal of notice, then the Developer shall, without necessity of demand therefor by the Agency, repay the Agency the Additional Rental Assistance; and the Agency shall have additional remedies pursuant to this Agreement, including without limitation the Maintenance Agreement. PUBL:20471_1 11871 B2338.22 to 10/24/94 415017 Anything which pertains to the Rental Units in this Agreement to the contrary notwithstanding, to the extent the Tax Credit Regulatory Agreement is more restrictive in its requirements applicable to tenant selection and on -going tenant eligibility than provided in this Agreement with respect to the Rental Units, such Tax Credit Regulatory Agreement shall control and the Developer's compliance therewith shall not be a default hereunder. 2.9. Maintenance of the Rental Units. The Developer shall maintain the Rental Units in a neat and clean condition and in accordance with all applicable laws at all times during the Qualified Project Period. In the event the Agency (or its Executive Director) determines at its discretion that the maintenance of one or more of the Rental Units is not satisfactory, it shall notify the Developer in writing generally describing the matters of concern. The Developer shall have a reasonable time, but not to exceed forty-five (45) days from delivery or mailing of notice as set forth in Sections 501 and 105 of the DDA to remedy such matters of concern. If such matters are not satisfied to the reasonable satisfaction of the Executive Director of the Agency within such time period, the Agency may terminate the Maintenance Agreement, and, at its election, designate a replacement service provider for the provision of such maintenance. 2.10. Reporting Requirement. Prior to the rental or lease of any of the Rental Units to a tenant, and annually thereafter within thirty (30) days of the anniversary date of such tenant's occupancy, the Developer shall submit to the Agency completed income computations and certification form in the form of the Income Verification(s) and the Certification of Continuing Program Compliance in the form of Attachment Nos. 18 and 19 to the DDA. Upon the mutual agreement of the parties, the Certification of Continuing Program Compliance Certificate may be provided during July of each year in respect to the immediately preceding fiscal year ending as of June 30. The Developer shall certify that each tenant leasing or renting any of the Rental Units is a Qualifying Renter. The Developer shall obtain an income certification from the tenant of each such unit and shall certify that, to the best of the Developer's knowledge, the income of the tenant is truthfully set forth in the income certification form. Reporting by the Developer shall conform to Section 33418 of the California Health and Safety Code, and shall further provide information to the Agency with respect to the operation of the Site that will enable the Agency to make appropriate reports pursuant to Section 33080.4 of the California Health and Safety Code. The Developer shall verify the income certification of the tenant in one or more of the methods as specifically set forth in the Income Verification. 2.11. Use In Accordance with Redevelopment Plan: Nondiscrimination. 1. 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 assignees, shall devote the Site only to those uses specified or permitted in the Redevelopment Plan and this Agreement for the periods of time specified therein. The foregoing covenants shall run with the land. The 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 account of race, color, creed, religion, sex, marital status, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall the Developer itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy PUBL:20471_111871 B2338.22 11 10/24/94 41501'7 of tenants, lessees, subtenants, sublessees or vendees of the Site. The foregoing covenants shall run with the land. Agency Initials: Developer Initials: KJ The Developer shall refrain from restricting the rental, sale or lease of the Site on the basis of race, color, creed, religion, sex, marital status, handicap, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, handicap, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, marital status, handicap, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises." The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of the Agency, its successors and assigns, the City and any successor in interest to the Site, together with any property acquired by the Developer pursuant to the DDA, or any part thereof. The covenants against racial discrimination shall remain in effect in perpetuity. PUBL:20471_111871 B2338.22 12 10/24/94 41501'7 2.12. 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. The Agreement and the covenants shall run in favor of the Agency, without regard to whether the Agency has been, remains or is an owner of any land or interest therein in the Site. The Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. 2.13. Maintenance of the Site. The Developer shall maintain the improvements on the Site in conformity with the La Quinta Municipal Code 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 on the Site in a healthy 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 or the City, 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 sale of each Ownership Unit by the Developer to Qualifying Buyers, Developer's obligations to the Agency with respect to such sold Ownership Units under this Section 2.13 shall terminate provided that the Homeowners Association as set forth in the Declaration of Conditions, Covenants and Restrictions is established at the time of such sale. PUBu20471_1 11871 B2338.22 13 10/24/94 415017 IN WITNESS WHEREOF, the parties herein have caused this Agreement to be executed as of the day and year first above written. APPROVED AS TO FORM: Stradling, Yocca, Carl on & Rauth, Agency Counsel REDEVELOPMENT AGENCY OF THE CITY OF LA QUINTA By: S� — Chairman "AGENCY" E. G. LIAMS DEVELOPMENT COR RA'IMN, a California corporation By: Its: "DEVELOPER" BUBL:20471_111871 B2338.22 14 10/24/94 415017 7- LEGAL DESCRIPTION ALL THAT PORTION OF PARCEL 3 OF PARCEL MAP NO. 19730 AS RECORDED IN PARCEL MAP PON OF OK 122RTPAGES QUARTER90F SECTION 6FTOWNSHIPD6 COUNTY SOUTH, AND RANGE 7 EAST, SAN BERNARDINO MERIDIAN DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID PARCEL 3; THENCE NORTH 000 00' 40" WEST, A DISTANCE OF 30.00 FEET; THENCE NORTH 89° 58' 39" A DISTANCE OF 520.00 FEET EAST, TO THE ORTHERLY AND HAVING A RADIUS OF 300.00 BEGINNING OF A CURVE CONCAVE N FEET; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 21° 32' 2011, A LENGTH OF 112.78 FEET; THENCE NORTH 680 26' 19" AND HAVING A RADIUS OF EAST, A DISTANCE OF FEET TO THE BEGINNING OF A CURVE CONCAVE NORTHWESTERLY A 400.00 FEET; THENCE NORRTHEASTERLYH OF ALOG TO THBEGINNINGEOFRALANGLE OF O° NON -TANGENT 03' 41", CURVE CONCAVE SOUTHWESTERLY, AND HAVING A RADIUS 51'004860.00 EAST;FEET, RADIAL LINE TO SAID BEGINNING BEARS NORTH 71° ANGLE THENCE NORTHWESTERLY OF 240-03SAID FEETCURVE THETHROUGH BEGINNINGEOFRALCOMPOUNDF150 CURVE, 59' 29", 35" EAST, SAID CURVE BEING TO WHICH A RADIAL LINE BEARS NORTH 55° 51' CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1140.00 FEET; CE THENCE NORATLENGTHROF CTUTHR CURVE 30' 27", HL CONCAVEHEASTADIALALINE BEARSASRADIUS30F2210o00 FEET;SAID CURVE BEI THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 50° 32' 22", A LENGTH OF 185.24 FEET TO A NON -TANGENT LINE; THENCE SOUTH 890 58139" WEST, A DISTANCE OF 322.26 FEET; THE FOLLOWING THIRTEEN (13) COURSES BEING ALONG THE NORTHERLY AND EASTERLY LINE OF SAID PARCEL 3; THENCE NORTH 42° 46' 47" EAST, A DISTANCE OF 269.49 FEET TO THE BEGINNING OF A CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 481.50 FEET; NORRTHEASTERLYH OF ALONG FEEDT;COVE THROUGH A CENTRAL ANGLE OF 090 THENCE SA 02' 03", THENCE NORTH 510 48' 50" EAST, A DISTANCE OF 259.18 FEET TO THE BEGINNING OF A CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 181.50 FEET; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 59° 17' 1811, A LENGTH OF 187.81 FEET; 415017 LEGAL DESCRIPTION PAGE (2) CONT. THENCE SOUTH 68° 53' 52" EAST, A DISTANCE OF 365.45 FEET TO THE BEGINNING OF A CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 481.50 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 040 51' 33", A LENGTH OF 40.84 FEET; THENCE SOUTH 640 02' 19" EAST, A DISTANCE OF 297.34 FEET TO THE BEGINNING OF A CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 111.50 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 270 28' 5511, A LENGTH OF 53.48 FEET; THENCE SOUTH 360 33' 24" EAST, A DISTANCE OF 50.00 FEET TO THE BEGINNING OF A CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 38.50 FEET; THENC311 24", ATLENGTHRLY ALONG SAID OF 48.06 FEET TORAETHROUGH A NON-TANGENTCLINEAL ANGLE OF 710 ; THENCE SOUTH 180 04' 48" EAST, A DISTANCE OF 11.50 FEET TO THE BEINNING A RADIUS OFG2920.00OFEET, A RADIAL TLINE VTOCSAID VBEGINNING LBEARS HAVINGY ANSOUTH180 04' 48" EAST; ZZEN3E1SOATHWNGTHROF 3ALG2ON995FEETC OVA NON-TANGENTELINE; ANGLE OF 060 THENCE SOUTH 000 00' 23" EAST, A DISTANCE OF 825.20 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL 3; THENCE CONTINUING SOUTH 00° 00' 23" EAST, A DISTANCE OF 305.30 FEET; THENCE ANCE .29 SOUTHEASTUTH 890 CORNER OF'PARCELE4TOFASAIDT ARCELFMAP019730; TO THE THENCE NORTH 000 01' 19" WEST, A DISTANCE OF 435.37 FEET ALONG THE EAST LINE OF SAID PARCEL 4 TO THE SOUTHERLY LINE OF PARCEL 3 OF SAID PARCEL MAP NO. 19730; THENCE SOUTH 890 WEST, ALONG THE OFUTHERLY LINE OF 566.33 FEET TO THEDPOINTEOF3BEG58' 39" INNING# i 4,5o:i 7 STATE OF CALIFORNIA ) ) ss. COUNTY OF RIVERSIDE) %V On l 2�tU%L i before me, , cy7, /ei 4�16a,l personally appeared 1,,x Z. and , i1T%1 /Ga , . it r.� , �%J1�2 ✓,if +� 7��G personally known to me -- OR -- proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. Witness my hand and official seal. J TONI TERESA BROWN Q. COMM. ilr)21641 a-' Notary Pt�liC — Co RIVERSIDE COUNTY My Comm. bores MAR 27,1998 CAPACITY CLAIMED BY SIGNER: _ Individual Corporate Officer(s): Title(s) Partner(s): _ Limited _ General Attorney -in -Fact Trustee(s) Guardian/Conservator X Other: Agency Chairman and Secretary of the La Quinta Redevelopment Agency SIGNER IS REPRESENTING: Name of Perso fig) or Entity(i* La Quinta Redevelopment Agency (Signature of Notary) ATTENTION NOTARY: Although the information requested below is OPTIONAL, it could prevent fraudulent attachment of this certificate to another document. THIS CERTIFICATE Title or Type of Document /_i. MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document /='�—'� %> AT RIGHT: Signer(s) Other Than Named Above: PuaL:2047I 111871 B2338.22 10/24/94 CALI-FCRNIA ALL-PURPOSE ACKNOWLEDGMENT 41501'7 No, 5907 State of California County Of Riverside On 10/27/94 before me, Marie T. Jones/Notary Public DATE NAME, TITLE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC" personally appeared E.G. Williams NAME(S) OF SIGNER(S) personally known to me - to be the persorv(s) whose nameW ism subscribed to the within instrument and ac- knowledged to me that WshegltSty, executed the same in iairsdherkkDeir authorized capacity(ita), and that byxhis(herAbil l signature(s) on the instrument the person(r), or the entity upon behalf of which the persons) acted, executed the instrument. MARIE T. )ONES COMM' #988825 * No" Public -California WITNESS my hand and official seal. RIVERSIDE COUNTY O My Cavminibrl Ex IM March 24, 19�7 ,.. '. l SIGNATUFE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL CORPORATE OFFICER E.G. Williams -Chairman & CEO TITLES) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) E.G. Williams Development Corp. Affordability Agreement TITLE OR TYPE OF DOCUMENT 20 (22 with notarizations) NUMBER OF PAGES 10/25/94 DATE OF DOCUMENT Sandra Juhola and Stanley Sniff Redevelopment Agency, City of SIGNER(S) OTHER THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION - 8236 Remmet Ave., P.O. Box 7184 - Canoga Park, CA 91309-7184