Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Hyder Co/Mgmt. Serv Washington St Apts 08
Washington Street Apartments Management Contract This Management Contract (the "Contract") is made this 20th day of August, 2008 (the "Effective Date"), by and between La Quinta Redevelopment Agency and Hyder & Company to provide management services for the rental housing development consisting of land, buildings, and other improvements as noted below. Project Name: Washington Street Apartments Address: 42-800 Washington Street No. of Units: 73 Definitions. a. "Agent" means Hyder & Company who is a broker or corporation licensed by the California Department of Real Estate. b. "Owner" means La Quinta Redevelopment Agency. c. "Party" means either Owner or Agent, individually, and "Parties" mean Owner and Agent, collectively. d. "Project" means the Washington Street Apartments. e. "Residential Lease" means the approved residential lease, a copy of which shall be executed by Agent on behalf of Owner, and by each household. 2. Appointment and Acceptance. Owner hereby appoints Agent as exclusive agent for the management of the Project and Agent hereby accepts the appointment, both appointment and acceptance being subject to the terms and conditions set forth in this Contract. 3. Agent's Compensation. Agent shall be compensated for its services under this Contract as shown in the "Agent's Compensation" attached hereto as Exhibit "A" and incorporated herein by this reference. 4. Term of Agreement. This contract shall be in effect for a period of one year(s) beginning when the Owner obtains fee title to the Project and will be renewed automatically for additional one-year terms until terminated on an anniversary by either party, or as provided in the contract subject, however, to the following conditions: a. This contract may be terminated by mutual consent of the Parties as of the end of any calendar month. b. Owner may terminate this contract upon written notice to Agent if Owner determines in its reasonable judgment that the project is not being managed in accordance with the terms of this contract and Agent has failed, within thirty (30) days after receiving written notice from owner of the specific terms hereof in default by Agent, to cure or correct the specified items. C. In the event that a petition in bankruptcy is filed by or against either of the Parties, or in the event that either Party makes an assignment for the benefit of creditors or takes advantage of any insolvency act, the other Party may terminate this agreement with written notice to the other. d. Upon termination of this contract, the Agent will submit to the Owner all Project books and records. After the Parties have accounted to each other with respect to all matters outstanding as of the date of termination, the Owner will be responsible and reimburse Agent for any obligations or liabilities that the Agent may properly have incurred on behalf of the Owner hereunder. 5. Employees. The number of employees, their job descriptions, and salaries, shall be determined by Agent using the provisions of the "Management Plan" developed for the Project which Management Plan is attached hereto as Exhibit `B" and incorporated herein by this reference. The employees shall be hired, supervised, and discharged by Agent. The Owner will reimburse Agent for employee costs as set forth in the Management Plan. The Management Plan maybe amended only upon the written approval of the Parties. Any such amendments shall be in writing and shall, upon approval of the Parties, automatically be incorporated herein. 6. Transfer of Records and Accounts. Upon termination of the Contract for any reason, the following procedures shall apply: a. The accounting records of the Project, even if maintained and housed at the office of the Agent, shall be deemed to be the official records and property of the Owner. All such records shall be turned over to the Owner immediately upon termination of the Contract or whenever a change in agent occurs. The records include, but are not limited to, resident and project files, the general ledger, all original books of entry, invoices, canceled checks, payroll records, and contracts. b. The Agent shall retain for three (3) years copies of trust records and other pertinent documents (as required by Business and Professions Code Section 10148). c. All cash, bank accounts, and trust accounts must be accounted for in writing and turned over to the Owner or its representative within five (5) business days after the termination of this Contract. 7. Resident Selection/Affirmative Marketing Plan. Agent and Owner agree to cooperate in 2 the implementation of the resident selection and affirmative marketing provisions of the Management Plan. In carrying out these provisions, Agent shall: a. Lease units in compliance with the Management Plan including provisions for any special needs such as elderly or adapted units. b. Assure that occupancy shall be open to all, regardless of race, color, ancestry, religion, national origin, sex, marital status, handicap, or other arbitrary factors. c. Assure that all advertising, including letterheads, brochures, and media advertising, shall include a reference to "this institution is an equal opportunity provider, and employer." d. Notify applicants of their eligibility status, and advise rejected or ineligible applicants of the reason for denial. e. Assure that resident selection is carried out without favoritism or partiality and that the public interest is served at all times. 8. Compliance with Proiect Contracts and Procedures. Owner has entered into and/or assumed regulatory and other agreements governing the operations, management, and maintenance of the Project, including, without limitation, that certain Restrictive -Use Agreement (§ 3560.662(b)(3)) (collectively, the "Project Agreements"). The Project Agreements are incorporated herein by this reference, and the Agent agrees to comply with them. The Agent also agrees to comply with the requirements of Section 42 of the I.R.S. Code, if applicable. 9. Collection of Rents and Other Receipts. Agent shall collect when due all rents, charges, and other amounts receivable in connection with the management and operation of the Project. Such receipts shall be deposited in the General Operating Account. 10. Accounts. Agent shall establish separate accounts as trustee for the Owner for Project funds. These accounts shall be the General Operating Account, the Security Deposit Account, and any other accounts that may be required by the Owner. Funds from these accounts shall be kept in depositories whose deposits are insured by an agency of the federal government or other comparable federally -insured program. Agent is authorized to open all of the required accounts without prior approval of the Owner or written authorization or resolutions by the Owner. Owner will not appear on the signature cards. a. General Operating Account: The General Operating Account shall contain the gross operating receipts received by the Agent or Owner and/or its representatives pursuant to Paragraphs 9 and 26 of this Contract. These funds shall be deposited promptly in the Account. b. Security Deposit Account: Agent shall collect security deposits in accordance with requirements of the Residential Lease. In collecting, handling, and disbursing these funds, Agent shall comply with the requirements of the California Civil Code, Section 1950.5 and Business and Professions Code Section 10145. These funds shall be kept in an account that is insured by an agency of the federal government or other comparable federal program. They shall at all times be equal to the total amount held by the Agent for the resident. 11. Disbursements. Agent may disburse funds from the accounts described in Paragraph 10 of this Contract only for the purposes noted below. Agent shall draw no checks nor incur any obligation in an amount exceeding Three Thousand and no/100 Dollars ($3,000.00), without the express written permission of Owner, except as necessary for emergency repairs required to avoid injury to persons or property. Upon receipt of notice by Agent, Owner will promptly make up any shortage in operating cash. a. General Operating Account: Disbursements may be made from this account in accordance with the budget, and shall be disbursed, applied, or reserved and set aside for payment when due, in the following priority, to the extent available: (1) salaries, wages, and any other compensation due and payable to the employees or agents of the Owner employed on site in connection with the maintenance, administration, or operation of the Project, along with all withholding taxes, insurance premiums, Social Security payments and other payroll taxes or payments or charges required in connection with such employees; (2) all charges incurred in the operation of the Project in connection with utilities, real estate taxes and assessments, and liability, fire and other hazard insurance; (3) payments of required interest, principal, impounds, fees and charges, if any, on loans which are secured by liens on the Project; (4) all other expenses incurred to cover operating costs, including the fee of the Agent and any extraordinary expenses, in accordance with the approved annual operating budget of the Project or as otherwise approved by the Owner; (5) deposits to the required bank accounts; and (6) distributions, in accordance with the direction of the Owner. b. Security Deposit Account: Disbursements may be made from this account only to: (1) pay the cost of any unpaid rent, damage, or unreasonable wear and tear caused by the resident, after the resident vacates the unit, or to reimburse the General 0 Operating Account for payment of these costs; or (2) return to the resident upon termination of the tenancy the portion of the deposit not used in accordance with (1) above. 12. Insurance. Owner shall procure and maintain property and liability insurance covering the Property. Agent shall be named as an additional insured on such policy, and shall, from time to time, be provided a certificate of liability insurance reflecting the same. Agent acknowledges and agrees that the premiums for, and any deductible required under, said policy shall be expenses of the Project. Agent shall promptly remit all payments for premiums and deductibles at such time as either of the same are due and payable. Agent shall promptly investigate and promptly report in detail to the Owner all accidents and claims for damage relating to the ownership, operation, or maintenance of the Project, and any damage or destruction to the Project and the estimated costs of repair, and shall prepare for approval by the Owner all reports required by an insurance company in connection with any such accident, claim, damage, or destruction. These reports shall be given to the Owner promptly and in any case within ten (10) days after the occurrence of any such accident, claim, damage, or destruction. Agent shall procure workers' compensation insurance in accordance with the laws of the State of California and employer's liability insurance applicable to and covering all employees of the Agent at the Project and all persons engaged in the performance of any work required under this Contract with limits of liability required by law. If any work under this Contract is subcontracted, Agent shall include in each subcontract a provision that the subcontractor shall carry workers' compensation insurance. Agent shall procure insurance, including Errors and Omissions Insurance and Property Manager's General Liability Insurance, with respect to the Project and the operations of or on behalf of Agent, in an amount not less than: (A) for Errors and Omissions Insurance, One Million Dollars ($1,000,000) per occurrence, and One Million Dollars ($1,000,000) in aggregate, and (B) for General Liability Insurance, Two Million Dollars ($2,000,000) per occurrence, and Six Million Dollars ($6,000,000) in aggregate. Unless otherwise approved in advance by the Agency's Executive Director, the insurance to be provided by Agent may provide for a deductible or self -insured retention of not more than Twenty -Five Thousand Dollars ($25,000), with such maximum amount to increase at the same rate as the periodic increases in the minimum amount of total insurance coverage set forth above. 13. Records and Reports. In addition to requirements specified elsewhere in this Contract, Agent shall have the following responsibilities with respect to records and reports: a. Agent shall establish and maintain a comprehensive system of records, books, and accounts in a manner prescribed by generally acceptable accounting practices after consultation with the Owner. All records, books, and accounts shall be subject to examination during regular hours of business by any authorized representative of the Owner. b. Agent shall make additional reports of income and expenses in a time and manner satisfactory to the Owner and consistent with acceptable accounting practices. c. Agent shall at all times keep all financial records, books, accounts, and other financial material relating to the operation of the Project in safe condition and accessible to the Owner. d. Agent shall prepare and submit operating reports to the Owner in a form and time frame to be mutually agreed on. e. Agent shall cause the financial records of the Project to be available to be audited annuallyby an independent certified public accountant licensed in California designated by the Owner. 14. Annual Budget. Agent shall submit to the Owner for approval, a proposed operating budget for the Project. The proposed budget shall be submitted prior to the beginning of each fiscal year. The proposed budget shall set forth the anticipated gross income of the Project and a detailed estimate of all expenses of the Project. The budget shall cover generally those expenses listed in Paragraph 11 of this Contract. Upon approval by the Owner, this proposed budget shall be the operating budget for the next fiscal year of the Project. 15. Maintenance and Repair. Agent shall cause the Project to be maintained and repaired in a condition at all times acceptable to the Owner. Obligations under this paragraph shall include, but not be limited to, cleaning, painting, decorating, plumbing, carpentry, grounds care, and all such other maintenance and repairs as may be necessary, subject to (i) any limitations imposed by the Owner and (ii) to those limitations contained herein. The following provisions shall apply to maintenance and repair of the Project: a. A preventive maintenance schedule shall be developed by Agent for approval by the Owner. This Schedule shall be incorporated into the Management Plan. b. Agent shall contract with qualified independent contractors for the maintenance and repair of items beyond the capability of regular maintenance employees. c. Agent shall systematically and promptly receive and investigate all requests for maintenance or repair from residents, take action thereon as may be justified, and keep records of the same. Agent shall inform residents of procedures to obtain maintenance services if an emergency occurs after normal office hours. Agent shall maintain a log book containing all service requests and maintenance repairs provided, copies of which shall be subject to inspection by the Owner. d. Subject to the spending limitations set out in this Contract, Agent is authorized to purchase all materials, equipment, tools, appliances, supplies, and services necessary to ensure proper maintenance and repair of the Project. e. Owner shall furnish Agent with a complete set of plans and specifications accurately reflecting the Project as built and copies of all valid guarantees and warranties pertinent to construction, fixtures, and equipment. With the aid of this information and inspection by competent personnel, Agent shall familiarize itself with the character, location, construction, layout, plan, and operation of the Project and especially of the electrical, heating, plumbing, air conditioning and ventilating systems, and all other mechanical equipment and systems. 16. Rent Adjustments. Agent will adjust the rents each year pursuant to the requirements of the Owner. 17. Utilities and Services. Agent shall make arrangements for all common areautilities, sewage, rubbish collection, vermin extermination, decorating, and laundry equipment. Agent has the authority to execute such contracts on behalf of Owner as may be necessary to secure such services, subject to the limitations described in Paragraph 11 of this Contract. 18. Enforcement of Residential Lease. Agent is responsible for securing the full compliance of each resident with the terms of the Residential Lease, the standard language of which is attached hereto as Exhibit "C" and incorporated herein by this reference. 19. Orientatlon[Trainin¢. Agent and appropriate personnel shall attend orientation or training sessions as may be required by the Owner. 20. Resident Counseffn¢. Agent shall, consistent with sound management of the Project, counsel residents and make referrals to available community social service agencies in cases of financial hardship or under similar circumstances that could lead to termination of a tenancy or eviction. 21. Termination of Tenancies or Evictions. Agent may take action to terminate or evict any residents where in Agent's judgment, sufficient cause for such termination or eviction exists under the terms of the Residential Lease. Agent is authorized to retain legal counsel to bring action necessary to carry out the decision to terminate or evict with prior authorization of Owner's legal Counsel. Agent shall keep Owner informed of the progress of such actions if requested. 22. Compliance with Government Orders. Agent shall take such action as may be necessary to comply promptly with all governmental orders or requirements affecting the Project, whether imposed by federal, state, county, or municipal authority, subject however, to the limitations stated in Paragraph 11 of this Contract. Agent shall take no action to comply with such orders or requirements if Owner is contesting, or has informed Agent of its intention to contest, any such orders or requirements within Seventy-two (72) hours of the time of their receipt of Agent. 23. Nondiscrimination. In the performance of its obligations under this Contract, Agent shall comply with the provisions of all federal, state, or local laws prohibiting discrimination in housing on the basis of race, color, ancestry, religion, national origin, sex, marital status, or handicap, including Title VI of the Civil Rights Act of 1964 (Public Law 88-352) and the regulations issued pursuant thereto (24 CFR Part I); Executive Order 11063 and the regulations issued pursuant thereto (25 CFR 570.601); and Title VIII of the 1968 Civil Rights Act (Public Law 90-384). 24. Fidelity Bond. Agent shall furnish, as a Project expense, a fidelity bond. 25. Inspection of Units. Agent shall inspect all units in the Project at least annually. 26. Bids, Discounts, Rebates, and Commissions. Agent shall obtain contracts, materials, supplies, and services on the most advantageous terms available to the Project, and shall solicit formal bids for each major item or service as required by the Owner and/or regulatory agreement(s). Agent shall secure and credit to the General Operating Account all discounts, or commissions obtainable with respect to purchases, service contracts, and other transactions on Owner's behalf. 27. Indemnification Requirements. A. Agent has certain due diligence requirements in the marketing of apartment units and subsequent annual recertification of the household in each unit. Agent will publish these marketing and recertification procedures so that not only its employees but also the Owner will be aware of the specific screening procedures entailed in such due diligence. Of particular importance is screening for resident income to ensure compliance with the Project Agreements. Agent shall indemnify, defend and hold the Owner and the City of La Quinta and each of their respective officials, members, employees, agents, and representatives harmless from and against all damages, losses, actions, causes of action, liabilities, claims, costs and expenses, including, without limitation, attorney's fees and court costs, in the event Agent leases any unit to a third party or parties who fail to satisfy the eligibility or income requirements, dictated by USDA Rural Development, which are established for such units, or Agent charges rent for any unit in excess of the amount allowed under the Project Agreements. Agent shall not be responsible under this paragraph for the fraudulent acts of any third party or parties if the Agent properly followed the income verification procedures as approved by the Owner. Furthermore, Agent shall indemnify and hold the Owner and the City of La Quinta and each of their respective officials, members, employees, agents, and representatives harmless from any and all losses, costs, damages, liabilities and expenses, including, without limitation, reasonable attorney's fees, arising directly or indirectly out of (i) any gross negligence and willful misconduct of Agent, or any of its officers, partners, directors, agents, or employees, in connection with this Contract or Agent's services or work hereunder, whether within or beyond the scope of its duties or authority hereunder, (ii) any claims for personal injuries to employees incurred during the course of their employ if such claims are covered by workers' compensation insurance required herein or (iii) all employment relations between Agent and its employees, provided, however, that the Owner does not interfere in such relationship. The provisions of this paragraph shall survive the termination of this Contract. B. Notwithstanding any provision of this Contract or any obligation of Agent hereunder, the following are understood and agreed by the Parties: 1. Owner has assumed and will maintain its responsibility and obligation throughout the term of this contract for the finances and the financial stability of the Project; 2. Agent shall have no obligation, responsibility, or liability to fund authorized Project costs, expenses, or accounts other than those funds generated by the Project itself or provided to the Project or to Agent by Owner. In accordance with the foregoing, Owner agrees that Agent shall have the right at all times to secure payment of its compensation, as provided for under this Contract, from the General Operating Account, immediately when such compensation is due and without regard to other Project obligations or expenses provided the Agent has satisfactorily discharged all duties and responsibilities under this Contract. Moreover, Owner hereby indemnifies Agent and agrees to hold it harmless with respect to Project costs, expenses, accounts, liabilities, claims and obligations during the term of this Contract to the extent that the Project's General Operating Account is insufficiently funded for this purpose; provided, however, that the foregoing indemnification obligation shall only apply if Agent notifies Owner immediately upon discovering the insufficiency (or potential insufficiency) of the project's General Operating Account. Failure of Owner at any time to abide by and to fulfill the foregoing shall be a breach of this Contract entitling Agent to obtain from Owner, upon demand, full payment of all compensation owed to Agent through the date of such breach and entitling Agent, at its option, to terminate this Contract forthwith. 28. Interpretative Provisions. a. At all times, this Contract shall be enforceable by and constitute a binding obligation upon the Parties and their respective successors and assigns. b. This Contract constitutes the entire agreement between the Owner and the Agent with respect to the management and operations of the Project and no change will be valid unless made by supplemental written contract, approved and executed by the Parties. c. This Contract has been executed in several counterparts, each of which shall constitute a complete original contract, which may be introduced in evidence or used for any other purpose without production of any of the other counterparts. IN WITNESS WHEREOF, the Parties have executed this Contract as of the Effective Date. OWNER AGENT La Quinta Redevelopment Agency HYDER & COMPANY, O a California corporation By:e'/ ��lisc By: `/✓y� v Name: / jowegs ET/ol/NSE Name: 6- 7Pw ^ /6 Its: L= X EC kL 7► ✓C-Its: e- H:/Mgmt.Agree.Washington Street RDA 3 12/24/08 Revised 10 Exhibit "A" AGENT'S COMPENSATION Agent's Compensation. Agent shall be compensated for its services under this contract by a monthly fee (the "Management Fee") to be paid out of the General Operating Account. The monthly fee shall be $52.00 per unit per month from November 1, 2008 to December 31, 2008 and $53.50 per unit per month from January 1, 2009 to December 31, 2009. Agent's services to be covered by the Management Fee include the following: Off -site overhead Supervision Preparation of financial statements and reports as agreed Payroll and benefit processing Off -site computer processing Project bookkeeping and accounting Services not covered by the fee include the following: Employee costs including payroll, benefits, taxes, social security, bond, E.P.L. & workers compensation insurance Operating expenses Maintenance & repairs On -site telephone & computer costs including software & hardware maintenance costs Annual audit and other owner reports not required by this contract. On -site computer costs & processing Initialed: Agent: Owner: Exhibit "A" Exhibit `B" MANAGEMENT PLAN Exhibit `B" Exhibit "C" RESIDENTIAL LEASE Exhibit "C" s 12y EQUAL HOUSING i 1 OPPORTUNITY RESIDENT SELECTION PROCEDURE Update effective 12/2007 A. MARKETING & EOUAL OPPORTUNITY It is anticipated that additional marketing efforts will be necessary to maintain a sufficient waiting list. The resident manager will maintain contact with local agencies and community groups to make certain that all members of the community are aware of the project and are encouraged to apply. All persons requesting an application are given one. Particular attention in Marketing will be paid to any Affirmative Fair Housing Marketing Plan and Income Targeting requirements. We are an Equal Housing Opportunity Provider. We provide rental housing without discrimination on the basis of race, color, creed, national origin, gender, marital status, sexual orientation, source of income, disability, age or any other protected class as defined by the laws of the Federal or State Government, either now in place or put in place at a later date. In addition to ensuring that projects are operated in a manner that protects against discrimination and promotes accessibility for persons with disabilities to enable them to participate fully in community programs, services and resident activities, Hyder & Company also assures physical accessibility of properties by providing accessible routes to and throughout the property. Each Hyder & Company community makes common use facilities, or parts of facilities, and public spaces accessible to persons with disabilities, as long as such improvements do not result in an undue financial and administrative burden. We do everything feasible to make these areas accessible up to the point at which any further modifications or improvements would result in an undue financial and administrative burden. Reasonable Accommodation Requests are readily available to applicants, as well as to existing residents at the time of initial application for residency, at the time of re -certification and at any such time a resident deems it necessary to make a special request for accommodation. Hyder & Company complies with Section 504 of the Rehabilitation Act of 1973 and The Fair Housing Act Amendments of 1988. a. Section 504 of the Rehabilitation Act of 1973 prohibits discrimination on the basis of disability in any program or activity receiving federal financial assistance from HUD. b. The Fair Housing Act prohibits discrimination in housing and housing related transactions based on race, color, religion, sex, national origin, disability and familial status. It applies to housing, regardless of the presence of federal financial assistance. C. Title VI of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color or national origin in any program or activity receiving federal financial assistance from HUD. B. OCCUPANCY STANDARDS In order to be eligible for occupancy, an applicant must meet the following initial requirements: 1. Income: See Income Limits for this particular property attached. Income limits varies by county and family size. 2. Household Size: An appropriate size unit must be available. Occupancy standards are set by the owner after reviewing the Agency Guidelines and Fair Housing requirements, but in some cases there are situations where the manager and applicant must make a decision on the size unit to assign to a particular household. The following standards will be used in determining the correct number of occupants: NUMBER OF OCCUPANTS UNIT SIZE MINIMUM MAXIMUM 0 Bedroom 1 2* 1 Bedroom 1 3 2 Bedroom 2 5 3 Bedroom 3 7 4 Bedroom 4 9 *Only to accommodate a Live-in Attendant as a result of a Reasonable Accommodation. There can be no exception to the maximum number of occupants listed herein except as noted below: For MIIP assisted units only: NUMBER OF OCCUPANTS UNIT SIZE MINIMUM MAXIMUM 3 Bedroom 4 7 4 Bedroom 6 9 3. Student Eligibility for Head or Co -Head of Household: A. The individual must be of legal contract age under state law. B. The individual must have established a household separate from parents or legal guardians for, at least, one year prior to application for occupancy or the individual meets the U. S. Department of Education's definition of an independent student which is defined as: 1. Be at least 24 years old by December 31 of the award year for which aid is sought; or 2. Be an orphan or a ward of the court through the age of 18; or 3. Be a veteran of the U.S. Armed Forces; or 4. Have legal dependents other than a spouse (for example, dependent children or an elderly dependent parent); or 5. Be a graduate or professional student; or 6. Be married. C. The individual must not be claimed as a dependent by parents or legal guardians pursuant to IRS regulations. D. The individual must obtain a certification of the amount of financial assistance that will be provided by parents, guardians or others signed by the individual providing the support. This certification is required even if no assistance will be provided. The financial assistance 2 provided by persons not living in the unit is part of annual income that must be verified to determine eligibility and at annual recertification to determine rent. C. CITIZENSHIP HUD PROPERTIES ONLY By law, only U.S. citizens and eligible non -citizens may benefit from federal rental assistance. Compliance with these rules ensures that only eligible families receive subsidy. These requirements apply to families making application to the property, families on the waiting list, and tenants. This paragraph describes the procedures owners must use to determine applicant eligibility based on citizenship/immigration status. Key Requirements Assistance in subsidized housing is restricted to the following: a. U.S. citizens or nationals; and b. Non -citizens who have eligible immigration status. 2. All applicants for assistance must be given notice of the requirement to submit evidence of citizenship or eligible immigration status at the time of application. 3. All family members, regardless of age, must declare their citizenship or immigration status. 4. Non -citizens (except those ages 62 and older) must sign a Verification Consent Form and submit documentation of their status or sign a declaration that they do not claim to have eligible status. Non -citizens age 62 and older must sign a declaration of eligible immigration status and provide a proof of age document. U.S. citizens must sign a declaration of citizenship. 5. A mixed family —a family with one or more ineligible family members and one or more eligible family members —may receive prorated assistance, continued assistance, or a temporary deferral of termination of assistance. If a family is eligible for prorated assistance and is not receiving continued assistance, and if the termination of the family's assistance is not temporarily deferred, the amount of assistance the family receives is adjusted based on the number of family members who are eligible compared with the total number of family members. The prorated assistance is calculated by multiplying a family's full assistance by a fraction. 6. Applicants who hold a non -citizen student visa are ineligible for assistance, as are any non -citizen family members living with the student. For non -citizen ' students with a citizen spouse or citizen children, this family may receive prorated assistance. For example, a family that includes a non - citizen student married to a U.S. citizen is a mixed family. 7. Assistance may be denied or terminated if ALL family members are determined to be ineligible for assistance. NON HUD PROPERTIES 1. USDA Section 514-516: The Farm Labor tenant(s) that is/are qualifying the familyunder Section 514- 516 is/are required to be a U. S. citizen(s) or eligible non-citizen(s). 2. USDA Section 515: No citizenship requirements. (NOTE: see social Security Number Requirements) 3. TCAC Properties: No citizenship requirements. (NOTE: see Social Security Number Requirements) 4. Other Properties: No citizenship requirements. (NOTE: see Social Security Number Requirements) Where a property, is both HUD and Non HUD, the HUD requirements will be in effect. D. 50CIAL SECURITY NUMBER REQUIREMENTS HUD PROPERTIES ONLY Applicants must disclose social security numbers (SSNs) for all family members at least 6 years of age and older, or, if no SSN has been assigned, the member must complete a certification that no SSN has been assigned. The documentation necessary -to verify the SSN of an individual who is required to disclose his other SSN is a valid SSN card issued by the Social Security Administration or a Self -Declaration certifying that one of the following documents attached to the declaration is complete and accurate: o Driver's License with SSN o Identification Card issued by a federal, State, or local agency, a medical insurance provider, or an employer or trade union. o Earnings statements on payroll stubs o Bank Statement o Form 1099 o Benefit Award Letter o Life Insurance policy o Court Records • In the event an individual has applied for legalization under the immigration and Reform Control Act of 1986, the individual will be able to disclose the social security numbers, but unable to supply the cards for documentation. Social security numbers are assigned to these persons when they apply for amnesty. The cards go to the Department of Homeland Security (DHS) until the persons are granted temporary lawful resident status. Until that time, their acceptable documentation is a letter from the DHS indicating social security numbers have been assigned. • Although we may accept an application with the above self -declaration and documentation, the application will not be processed until the required SSN documentation is provided for all adult applicants. If all adult applicants are unable to provide such documentation within 60-days of the initial acceptance of the application, they will be removed from the waiting list. • We will extend the time period for an additional 60 days if the applicant is at least 62 years old and unable to submit the required documentation within the first 60-day period. NON HUD PROPERTIES 1. USDA Section 514-516: The Farm Labor tenant that is qualifying the family under Section 514-516 must have a social security number in order to allow us to check both the credit status and criminal background of the tenant. 2. USDA Section 515: At least one (1) of the adult Tenants must have a social security number in order to allow us to check both the credit status and criminal background of the tenant. 3. TCAC Properties: At least one (1) of the adult Tenants must have a social security number in order to allow us to check both the credit status and criminal background of the tenant. 4. Other Properties: At least one (1) of the adult Tenants must have a social security number in order to allow us to check both the credit status and criminal background of the tenant. E. INCOME TARGETING 1. For USDA properties — See your AFMHP (Affumatve Fair Housing Marketing Plan) 2. For all Other Properties — See your AFMHP (Affirmative Fair Housing Marketing Plan) 3. For HUD Properties and Combination HUD AND USDA/TCAC/BOND/FIJHCD Properties. We must market to extremely low-income households (households earning 30% or less of the median income). At least 40% of the units at our site that become available each calendar/fiscal year must be rented to extremely low-income (30%) households, if possible. If an applicant advises you that they believe they may be entitled to an admissions priority please contact your supervisor so that they can review the documents submitted. Annotate your waiting list to give extremely low-income households priority, remaining within the guidelines for recording by date and time for this particular category. They will be selected first from your wait list. Explain to the applicant the following: 1) Based on our existing waiting list we will admit, in chronological order, the extremely low-income (30% of median income) first until the 40% target of expected vacancies is met. 2) Once this target is met we will then start with those applicants that were over 30% in chronological order. 3) On a quarterly basis we will look at our percentage of move -ins and adjust our admissions according to the 40% rule. 4) Those applicants that were "skipped over" due to higher incomes will be admitted in chronological order after all 30% applicants have had an opportunity to be admitted onto the property. F. INITIAL APPLICATIONS Applications are processed on a first come - first serve basis, except for projects which require Regulatory Preferences or Income Targeting. The application is designed to give the resident manager basic information about the applicant so that he/she can determine if there are factors of income or household size which would effectively eliminate the applicant from consideration. At the time a completed application is received by the manager, the date and time is noted on the application. No incomplete application can be accepted, all questions must be answered or the application will be returned to the applicant for completion. Applicants must be able to provide proof of identity. At the time the completed application (including Social Security numbers) is received, it is reviewed for initial eligibility only, i.e., the household size and qualifying income. The applicant will then be notified within 10 days by mail of one of the following: 1. If an appropriate unit is available, the application can be processed immediately. 2. The application has been placed on a waiting list and the approximate length of time it is anticipated before the application can be processed, or; 3. A letter of rejection stating clearly: a) That the applicant is not eligible for occupancy and the reason why. b) The applicant's right to request a hearing (if applicable) in accordance with all grievance and appeals procedures (see Handbook for correct letter based on program requirements) and that they have: HUD PROPERTIES: 14 days to appeal our decision. NON HUD PROPERTIES: 10 days to appeal our decision G. WAIT LIST All completed applications determined to be initially eligible are placed on a master waiting list. Separate lists will also be kept by bedroom size for each different size unit in the complex. If an applicant qualifies for more than one size unit and has no preference, they will be placed on both lists as well as the master list. The wait list form and instructions can be found in the forms section. The master wait list will be updated at least semi-annually by sending a letter to each applicant on the master list who has not updated his or her interest in remaining on the wait list (See Forms Section for letter). When a unit(s) will not be available for a new applicant for at least a year you may be allowed to close your waiting list with the approval of your supervisor. The closing process is different depending on your property: HUD Properties: Upon closure, you must advise potential applicants that the waiting list is closed and refuse to take additional applications. Also, at this time you must publish a notice in a publication likely to be read by potential applicants that the waiting list is closed due to excessive wait times for available units. Upon opening the waiting list, an announcement notice in the same (or same type) of publication mentioned above must be made notifying potential applicants that you are once again accepting applications. Make sure that you state the rules for applying, where and when to apply, and the order in which applications will be processed. USDA Properties: USDA has no regulations regarding Opening and Closing of Waiting Lists. However, you should consider "purging" your waiting list of applicants upon approval of your supervisor. This involves a specific set of mailings, via First Class Mail, and documentation. Please contact your supervisor for this procedure. OTHER Properties: You should consider "purging" your waiting list of applicants upon approval of your supervisor. This involves a specific set of mailings, via First Class Mail, and documentation. Please contact your supervisor for this procedure. H. PROCESSING APPLICATI0NS The first one or two applications on the wait list for each size unit should be processed so that a tenant will be ready to move in should there be an unexpected vacancy. Income verification is valid for up to 90-days. The steps for processing an application are: Re -verify that the application indicates that all requirements are met for occupancy as to household size, household composition and income. If not, then a rejection letter will be sent immediately notifying the rejected applicant that they have: HUD PROPERTIES: 14 days to respond to our decision. NON HUD PROPERTIES: 10 days to respond to our decision 2. Call the applicant to verify that they are still interested, and if so they must come in to update the information on their original application. If the original application is over 60 days old, you must have the applicant complete the Application Update and Revision form or complete a new application in order to be sure the information is current. At the same time, have the Mlicant and all household members over 18 years of age sign one set of all necessary employment income; bank, asset, rental history and any other necessary verification release forms so that you can send out all of the verifications necessary to complete the process. Once you'have updated the application and have all of the necessary release forms signed, you can start the employment, legal status and income verification procedures by mailing the set of verifications. Run a Credit Report and Criminal Background Check on all applicants over the age of 18 concurrent (at the same time) with mailing out the verifications and rental history. A minimum Credit Score of is required to live on this property. Credit scores between _ and accepted "w will be ith conditions". Those conditions may include 1) Requiring that the applicant show that they are making payments on past debts, 2) If no debts, requiring 3 letters of recommendation of their character. The credit score is determined by using a resident screening program called SafeRent that uses a mathematical formula to determine the risk to the community for renting to a particular tenant. SafeRent uses the income from the applicant, the rent amount, the credit history and rental history of the applicant and determines a score. For applicants who have no credit at all they must supply (3) letters of recommendation as to their character. Any applicant rejected because of a bad credit report may request a meeting with management to explain errors or corrections that would change the status of the applicant. If an applicant is rejected because of credit the rejection letter must give the name and address of the reporting agency so the rejected applicant can get a copy of the report. The rejected applicant also has: HUD PROPERTIES: 14 days to respond to our decision. NON HUD PROPERTIES: 10 days to respond to our decision Criminal Background Checks are to be run for all adult household members at initial move -in for all properties. Run the criminal background check after you have run the credit report and received an "accept". Obtain a report from each county listed on the application where the applicant(s) was/were a resident. Applicants are ineligible for tenancy for the following reasons: a) Any household containing a member(s) who was evicted in the last seven years from PROCESSING APPLICATIONS (continued federally assisted housing for drug -related criminal activity; there are two exceptions to this provision: (1) The evicted household member has successfully completed an approved, supervised drug rehabilitation program; or (2) The circumstances leading to the eviction no longer exist (e.g., the household member no longer resides with the applicant household). b) A household in which any member is currently engaged in illegal use of drugs or for which the owner has reasonable cause to believe that a member's illegal use or pattern of illegal use of a drug may interfere with the health, safety, and right to peaceful enjoyment of the property by other residents; "Reasonable cause to believe" means some measure between mere suspicion and a preponderance of the evidence c) Any household member if there is reasonable cause to believe that member's behavior, from abuse or pattern of abuse of alcohol, may interfere with the health, safety, and right to peaceful enjoyment by other residents. The screening standards must be based on behavior, not the condition of alcoholism or alcohol abuse; "Reasonable cause to believe" means some measure between mere suspicion and a preponderance of the evidence d) Any household member who has been convicted of a felony for any reason in the last 7 years; and e) Any household member who is subject to a state sex offender lifetime registration requirement. With respect to verifications keep in mind the following: a. All verifications must be third party unless approved in advance by the Supervisor. Immediately mail one set of income verifications to all income or asset sources shown on the updated application, enclose aproperly stamped, self-addressed envelope in each mailing. Do not give the verification(s) to the applicant to deliver to their employer. Send verifications only to sources shown on the application or update form. For example, do not send a verification form to the Welfare Department if the applicant does not show any anticipated income from AFDC or TANF on their application or update form; or to the EDD if the applicant does not show any anticipated income from unemployment during the coming year. b. All verifications and other signed documents must be in the English Language. The Spanish version is only to assist an applicant who negotiated the lease in Spanish understand what they are signine. It is required that you have the Spanish version in the file in addition to the English version to prove that the applicant was given a Spanish Language document, but the primary document must be in English. Any subsequent document that substantially changes the parties, rights and obligations must be sent to tenant in both languages and a copy of both PROCESSING APPLICATIONS (continued) will be kept in the file. C. If you have not received the completed income verification within ten -days, call the reference on the phone to verify that they received the first verification request and ask them to expedite the return of the document. If they indicate that they did not receive the verification form, ask them if you have the correct address and mail or fax them the second verification that you had the applicant sign. At this time, you must contact the applicant and advise them that their application is in jeopardy because we are unable to verify their income or assets; this will perhaps encourage the applicant to assist the source in speeding up the process. If the second verification is not returned within ten -days, call the employer and try to get a phone verification. If this fails, with your Supervisor's prior permission, use a second party verification for certain kinds of income. If you are unable to verify income and assets, we must reject the applicant because we are unable to verify the information shown on the application. It is mandatory that you keep a copv of all verifications that Vou mail in order to prove when and where they were sent. d. In rare instances, you mayhave an applicant who claims to be self-employed. In these cases, you will advise the applicant that they must provide a certified profit and loss statement for the business from an independent accountant for the past two years together with copies of the applicant's Federal and State Income Tax returns for the same periods. In addition, they must sign an affidavit that declares under penalty of perjury that the information given is true and correct. Always contact your supervisor before approving a self-employed applicant. e. There are many adult applicants or household members who will claim that they are unemployed and have zero income. These applicants must provide a signed, notarized Zero Income Verification and an affidavit stating that they do not qualify for any type of assistance or unemployment compensation, and explain why. If an entire household is claiming zero income, the property manager will be required to complete a Zero Income verification checklist with the applicant/tenant household during the interview process and thereafter on a quarterly basis as long as the tenant continues to be a zero income household. if we have compelling evidence of income, we will send negative verifications to selected agencies. f. After you have collected all of the verifications required to compute the gross household income, you will then do the Tenant Certification. In doing any certification, you must remember one very important rule: All Certifications and Re -certifications must reflect income for 52 weeks for all adult household members unless they can verify conclusively that they will have no income for part of the year. The burden of proof is on the applicant to verify in writing that they will have no income or a reduced income for any part of the year. You will have applicants who work at several different jobs during the year, which does not add up to 52 weeks; in these cases you will add up the income from the Employment Verifications and to that total add unemployment income for the number of weeks during which they have no income verification. The only departure from this procedure will be in cases where an applicant can prove that they will not be eligible for income from any source. S 5. Check with current and prior landlords far enough back to get 5-years of history. You must mail a Rental HistoryForm to request the information in writing to each prior Landlord for the past 5-years. If you use a telephone verification, fill out the form and enter the information and the name and phone number of the person giving the reference as per #7 below in this section. Applicants evicted PROCESSING APPLICATIONS (continued) for any lease violation (cause) will be rejected and advised of their right to request a hearing (if applicable) and the applicant will have: HUD PROPERTIES: 14 days to respond to our decision. NON HUD PROPERTIES: 10 days to respond to our decision 6. An interview must be held with each eligible applicant and, if available, members of the household. At this interview, the nature of the program and their responsibilities as tenants is explained. If the household cannot come for disability reasons, then a home visit maybe in order. For convenience, if the wait list is very short and it appears that a unit maybe available within 60 days, you may conduct the interview and obtain necessary verifications forms at the time the application is submitted. All verbal information obtained regarding an applicant must be documented in writing. Information from individuals, references from landlords, etc., will be noted as to who gave the information, the date and signature of the management personnel receiving the information. Details of subsequent contacts with applicants must also be dated and initialed. All information must be written on the contact log or separate paper and placed in the file! 8. If an applicant refuses aunit when offered, they will be informed that their name is being withdrawn from the wait list and they are welcome to reapply. The exception to this is a reason beyond the applicant's control such as health or disability. Should we be unable to reach an applicant, a 10-day letter will be sent asking thetas to contact us and advising them that their application may be withdrawn should they fail to respond. The next person on the wait list will then be contacted. 11 CONFIDENTIALITY All information received by or about any applicant must be treated as highly confidential. Under no circumstances will you reveal any information without prior consent of your Supervisor. If a Police Officer presents you with what appears to be a legal document, immediately call the Compliance Department at Hyder Property Management Professionals. All Tenant and Applicant files, both current and former, must be filed in locked cabinets with limited access by the Property Manager and office staff only. Any tenant and/or application information that is not needed MUST BE SHREDED... DO NOT DISCARD INTO THE TRASH WITHOUT SHREDDING IT. 12 J. APPLICANT SCREENING AND TENANT SELECT[O]N The process of screening applicants and selecting future residents is a crucial one. Time and care must be exercised to screen applicants and to select applicants,who will be responsible residents and meet eligibility requirements. Careless selections can result in vandalism, high repair costs, costly evictions, and increased vacancies. Each housing program has its own requirements and the manager must be totally familiar with the qualifying criteria of his/her project program, bearing in mind that you must comply with all Regulatory Requirements as well as all Federal, State, and Local fair housing laws and with all equal opportunity requirements. Guidelines, which we use to determine eligible applicants, are as follows: The Applicant's Willingness to Pay Rent in a Timely Manner The applicant's willingness to pay rent in a timely manner can be judged by the applicant's current and past history of rent payments. This information will be obtained from the current and prior Rental History. The applicant's credit review will indicate their attitude toward financial obligations. Occasionally an applicant has no credit history or rental history (e.g. young people renting their first apartment). It will be necessary in these cases to check their Credit References to make a determination as to the applicants understanding and appreciation of the importance of timely rent payments. An in-depth applicant interview will aid in this determination. Poor credit is unacceptable unless applicant can satisfy a complete scrutiny at a hearing and explain that all reasons have been removed. Where there is a deep rent subsidy available (Rental Assistance, HUD Section 8, or HUD rent supplement) the tenant's rent is based on a percentage of income; therefore, ability to pay rent is significantly improved, since there is no minimum income requirement for admission at these properties. An applicant's ability to pay rent can be determined by reviewing the applicant's income and the percentage of income the applicant will be paying in rent. As a general rule, an applicant should not pay more than 40% of their income to rent. This is a reasonable guideline for income requirements for each size unit where no deep subsidy is available. If an applicant will be paying more than 40% of income to rent, you must satisfy yourself that they will have adequate income to provide food, clothing and medicine. Reviewing their other obligations on the application and their current rent and payment history will aid you in making this determination. In the case of a senior citizen with no payments or other monthly bills, the percentage could be considerably higher. Many seniors pay over 50% of their income to rent. 2. The Applicant's Ability and Willingness to Care for the Unit The question of ability to care for the unit may be a factor. The best source for this information is past and present landlords and the household interview. 3. The Applicant's Ability and Willingness to Abide by the Lease 13 While this is very general language, it is a critical area of applicant evaluation. It covers such broad subjects as interfering with the rights and enjoyments of other tenants or keeping a pet or allowing illegal acts to be performed on the premises. The main source of this information will be prior landlords. Another source of information on the applicant (or household member) may be police officers, the credit review or the references provided by the applicant. Applicants who have been APPLICANT SCREENING AND TENANT SELECTION (continued) evicted for a lease violation or receive a poor rental history report are unacceptable. 4. The Applicant must be of Legal Age In the case of a married couple only one must be of legal age. The person of legal age must sign all documents. If a minor applicant claims to be "emancipate(f", contact your supervisor so that they may help you confirm this before proceeding further. A person under the age of 18 years is an emancipated minor if any of the following conditions is satisfied: a) The person has entered into a valid marriage, whether or not the marriage has been dissolved. b) The person is on active duty with the armed forces of the United States. c) The person has received a declaration of emancipation pursuant to section 7122. 5. The Applicant Interview This is a very important part of the selection process. Sometimes there is very little verifiable information on the applicant so this interview will be a key factor in determining the applicant's eligibility. You must require all household members to be present for this interview. It is at this interview that the program will be explained to the applicant and their responsibilities as a tenant. Sometimes an applicant will decide at this time they cannot abide by the regulations of the program and voluntarily withdraw their application. 14 K. UNIT TRANSFERS There are two acceptable types of unit transfers within the same project. 1. MANDATORY TRANSFER 2. TENANT REQUESTED TRANSFER MANDATORY TRANSFER —Always initiated by the manager for changes in household size or composition. This transfer requires that the security deposit be transferred from the old unit to the new unit and any differences be collected or refunded to the tenant. REQUESTED TRANSFER — Must be initiated by tenant in writing. Reasons for transfer can only be: 1) Need for deeper subsidy covered by another unit 2) Medical reason certified by a doctor 3) Need for an accessible unit. 4) Need for a different size unit that the household qualifies for, Upon determination that the transfer is approved you will place the tenant's name on the top of the transferwait list. The list will be taken in chronological order (oldest on the list gets first apartment). This will be done before ANY non -tenant is accepted. No Non -Resident applicant takes precedence over either type of transfer. If a tenant under notice of an occupancy violation refuses to move, their lease may be terminated with a 30-Day Notice and the next tenant on the transfer list will be notified. If you have no names on the transfer list, you will select the top name on the regular wait list. FOR HUD PROPERTIES ONLY: When it is determined that a transfer is required, the tenant: a. May remain in the unit and pay the HUD -approved market rent; or b. Must move within 30 days after the tenant is notified that a unit of the required size is available within the property. It is unacceptable to request a transfer because of "bad relations with neighbors" or "poor view" or "accessibility to laundry", etc. SECURITY DEPOSIT AMOUNT: MANDATORY TRANSFERS- Maintain the old Security Deposit amount and transfer to new unit. We will not charge the tenant for any additional security deposit or refund any differences. TENANT REQUESTED TRANSFERS -Collect the difference in the security deposit from the old to the new unit. In both cases, charge damages to the new unit. If necessary, you may set up a payment plan. 15 Complete the "Immediate Notice of Move Out or Transfer" form on the date of the move -out from the old unit. (NOTE: RD properties must not use the 1't of any month as the move out date). The date of the move m will be the following date ... a tenant cannot move out and move in on the same date. Transfer the tenant's old file to the new unit file. UNIT TRANSFERS (continued) For all transfers, conduct a pre -transfer meeting with the tenant and explain what is going to happen. When a vacant unit becomes available, make arrangements with the tenant to conduct apre-move out physical inspection of the old unit for damages beyond normal wear and tear and cleaning. Don't' forget that other problems may show up that you cannot know about until the unit is completely vacant. If charges are major, tenant cannot transfer without all problems resolved. The tenant has 2 days to complete the transfer. Day 1: move -out date from old unit. Rent on old unit is paid through move -out date. Day 2: move -in date to new unit. Rent on new unit begins with move -in date. Treat the paperwork as you would a brand new move -in: 1) Tenant Certification 2) Lease and Amendments 3) House Rules 4) Move -in inspection 5) Collect Rent 6) Collect Security Deposit (as prescribed for the type of transfer) 7) Turn over keys 8) Mail all appropriate documents: "Immediate Notice of Move Out or Transfer", CAM security deposit disposition, vacate report, Tenant certification, etc. If you are a TCAC property and the tenant is moving to another BIN # building then you must treat this as a move - out and move -in, with all new initial certification paperwork. If the tenant is not income qualified then they cannot transfer. 16 L. REJECTION One Strike Polic No applicant will be admitted if any member has been evicted from any other housing within the last 7-years for cause. No applicant will be admitted who currently uses illegal substances, illegally abuses alcohol or is required to register as a sex offender or falsifies any information on the application. No applicant household will be admitted if any member has a criminal history within the last 7 years including, but not limited to any acts of violence against persons or property, unlawful drug related activity of any kind, is fleeing from prosecution or other acts which would threaten the health, safety or well-being of residents, owners, employees, or agents or in any way disrupt the resident's peaceful enjoyment of the site. Rejected applicants will receive written notice stating the reason for rejection. The notice will contain the following 1. Reason for rejection and appeal rights (U.S.D.A. & H.U.D.) 2. HCD Grievance and Appeals Procedures to be included with rejection letter. Prop.84 projects only. 3. In Ca1HFA projects, the applicants right to request a conference with Ca1HFA. Should a rejected Applicant request a hearing within three days of receiving the letter, the Agency's policy on rejection set forth in the CalHFA Eviction Procedure will be followed. 17 \W ORD\ResidentSelectionProcedure 12-07 RESIDENT SELECTION PROCEDURE Section 8 Income Targeting A. We must market to extremely low-income households (households earning 30% or less of the median income). At least 40% of the units at your site that become available each calendar/fiscal year must be rented to extremely low-income (30%) households, if possible. B. Explain to all future applicants that your site is required to rent 40% of its vacancies to households that earn 30% or less of the median income. C. Invite applicants to advise you immediately if they believe they may be entitled to an admissions priority. D. Annotate your waiting list to give extremely low-income households priority, remaining within the guidelines for recording by date and time for this particular category. They will be selected first from your wait list. STEPS TO DETERMINE COMPLIANCE: Step 1: Estimate annual turnover for the property based on turnover history. Annual Turnover Calculation: (The calculation below must be completed annually before the last day of the year) a) Total number of vacancies in last 12 months = b) Total number of units in your property = c) Divide a by b (alb) = turnover rate for this period = % d) Total number of vacancies 2 years ago = e) Total number of units in your property = ) Divide d by a (d/e) = turnover rate for this period = % g) Total c + fand divide by 2 = Average Turnover rate = % h) Average Turnover rate x total number of units in your property = Next year's projected vacancies Multiply "Next Year's Projected Vacancies" by .40—this resulting number must be filled with extremely low income tenants. a) Total number of vacancies in last 12 months = 10 b) Total number of units in your property = 175 i) Divide a by b (alb) = turnover rate for this period = 5.7 % j) Total number of vacancies 2 years ago = 8 k) Total number of units in your property = 175 1) Divide d by e (d/e) =turnover rate for this period = 4.5 % m) Total c + fand divide by 2 = Average Turnover rate = 5.1 % n) Average Turnover rate x total number of units in your property = 9 Next year's projected vacancies Multiply "Next Year's Projected Vacancies" by 40—this resulting number must be filled with 18 extremely low income tenants = 4. Step 2: Analyze the waiting list by income category, starting at the top of the list, that is, those applicants who are likely to be offered units during the coming year. Use the "Income Targeting Tracking Log" (example below) to determine if 40% of the projected vacancies will be filled by your waiting list in chronological order. Transfers do not count towards the Income Targeting requirements. income -Targeting Tracking Log A: B: C: D: E: Type of Family Name Extremely Low- Very Low- or Percentage of Admission - Income Low-income Total Admissions Based Upon That Are Targeting Extremely Low - Methodology (check if family is (check if family is Income* ELI) LI or VLI) Extremely Low Smith, Tara Income (ELI) Top of Waiting List Roth, Jessy TOL) ELI Gonzales, Tina OL Brown, Rita ELI Mills, Jean OL Green, Debby ELI Solis, Randy OL Myers, Meghan ELI Crabtree, Lauren OTAL 5 *NOTE: The percentage in Column E is calculated by dividing the number of extremely low-income families admitted (Column C) by the total number of families admitted (Column C plus Column D). Step 3: Take no action if at least 40% of the applicants on the waiting list who are expected to be offered units during the year have incomes at or below the extremely low-income limit. Applicants may be admitted 19 in order, and compliance with the income -targeting rules will likely be achieved. Monitor quarterly to confirm compliance. Section 8 Income Targeting (continued) Step 4: If at least 40% of the applicants who are expected to be offered units in the next year do not have incomes at or below the extremely low-income limit, then the property must establish tenant selection procedures to ensure that the 40% requirement is met. Owners should also consider increasing their efforts to market to extremely low-income applicants to ensure that a sufficient number of applicants on the waiting list meet the income -targeting requirements. Step 5: If after giving priority to all extremely low-income households, you still can't fill 40% of the available units, you may rent to other eligible households. HUD rules state that if you've actively tried to market 40% of the available units to extremely low-income households, after a reasonable market period expires and all reasonable steps have been taken, you may rent to other eligible households. (Do this only after getting approval from your Supervisor!) HUD requires you to keep records showing that you took all reasonable steps to fill those units with extremely low-income households, this includes copies of any and all advertising material, fact sheets, wait list and revising your Affirmative Fair Housing Marketing Plan and information given to potential renters. All information regarding your project must include this income targeting information.' Your goal is to have an on -going marketing and information distribution system in place that affords the households in this income group the opportunity to get onto your wait list so you can process their application as soon as you have a vacancy. This procedure requires a separate folder that you will be required to maintain and keep for inspection by your supervisor. The Income Targeting Tracking Log can be found in the Manager's Handbook in Section 3. 20 \W ORD\ResidentSelectionProcedure 12/07 /WORD/Section8lncomeTargeting 4-2-07 Income Limits The applicant's income must be equal to or less than the below stated limits, adjusted for household size, dependent upon which property you are applying to: Coachella Community Homes Madonna Road Merced Meadows Montecito Oroville Peppertree Spring/Encino Sunrise Tamarisk Willows 50% of HUD median income 30% of HUD median income 30% of HUD median income 50% of HUD median income 50% of HUD median income 50% of HUD median income 50% of HUD median income 50% of HUD median income 50% of HUD median income 50% of HUD median income 21 INSTRUCTIONS FOR MAINTAINING WAITING LISTS You must maintain a master waiting list AND a separate sub -waiting list: • If RD/FL property, must have separate sub -waiting list for bedroom size and transfers. • If HUD property, must have separate sub -waiting list. This means that if you are a RD/FL property, you will have three (3) waiting lists: the "Master" waiting list AND the "RD Bedroom -Size" sub -waiting list and/or "RD Transfer" sub -waiting list. Transfers are considered priority tenants over new move -ins. If you are a HUD property, you will have two (2) waiting lists: the "Master" waiting list AND the "HUD" sub -waiting list. If you are RD/FL/HUD, you will have four (4) waiting lists: the "Master" waiting list, the "RD Bedroom -Size" sub -waiting list, the "RD Transfer" sub -waiting list, and the "HUD" sub -waiting list. The MASTER WAITING LIST, under 'Date/Status" points the person reading the waiting list to the appropriate sub -lists. (Bedroom -Size, Transfer or HUD) • As an example, Mr. Smith (applicant) hands you an application and you place his name on the "Master" waiting list. Under 'Date/Status", you note that you have placed him on the "RD Bedroom -Size" sub -waiting list on a specific date. If you are a HUD property, you will also place Mr. Smith on the "HUD" sub - waiting list, and note that on the "Master" waiting list as well. The forms discussed above will immediately follow. Upon receiving the application, immediately note the date and time of day you received the application in the box at the top of the application. Review the application for basic eligibility only. If it is determined that the applicant is not eligible for one of the following two reasons, you may send a rejection letter as outlined in the section on rejections. The two reasons for rejection at this point are: Family Size: There are maximum and minimum family sizes for your project according to the size of units available. Refer to the occupancy section for a detailed chart. 2. Income Limits: There are maximum income limits set for your project. Refer to the section on Occupancy. Applicants will remain on the wait list until they are rejected, withdrawn, moved in, or purged. Allow at least two lines per applicant; skip a line in between. Do not number the applicants because as people are removed, the numbers will have no significance. Once a person is removed from the wait list, draw a line through the name - that way it is easy to see who is next in line. Make certain that you do this on the "Master" as well as the sub -lists noted above. Once a person nears the top of the wait list (#1 or 2), you should begin processing the application in order to have a tenant ready to move in should a vacancy occur (remember an income verification is good for 90 days). The contact sheet attached to the application should be used for details of all contacts with an applicant and details of all background checks. The contact record on the wait list will be used to note reasons a tenant may have been passed over or special instructions such as "can't move in now, but wants to stay on list". A person should be moved to the bottom of the list if they refuse a unit without good cause. The disposition column must be filled in before a person's name is removed from the list. The applications to back up all of those rejected and withdrawn must be kept in folders marked "rejected" and "withdrawn" for at least three years. Detailed reasons for rejection or withdrawals will be noted on the contact sheet along with the date and the initials of the manager. \WORD\Waitlist.instructions 4/6/05 0 U m 5= N � d Ka d d J � JNC IN O T ` 8 p U O h d 2 wZ rd aB x5o Rm' W U W W o � Fd- N 'c 8 E = o� Yp Q J J E I Project Name Address Telephone Date: To: Dear Applicant: Thank you for applying for admission to Apartments. At this time we are filling all vacancies length of the wait is may be longer or shorter depending on unit turnover. from the waiting list. The average , however, your wait Please notify us immediately if any of the following events occur, as any change may effect your admission: 1. You move to a new address. 2. You get a new telephone number. 3. The size of your family changes. 4. Your income changes (increases or decreases). You should contact us every six months from the date at the top of this letter to reaffirm your interest in being admitted. If we do not hear from you and cannot contact you, we must remove your application from the waiting list and place it in the inactive file. You may call, drop us a line, or stop into the office. Resident Manager \WORD\WaitlistAll.letter 7/30/02 UNIT INSPECTION REPORT Project Name: Date of Inspection: In Out Tenant Name: Unit # Number of BedroomsNumber _ of Baths_ Move -In Date: Move -Out Date: bl � Acce table? Acce table? Kitchen Acce Yes hi/Out No In/Out Bedroom # 2 Yes In/Out No In/Out Bathroom #1 Yes In/Ont No In/Out Ceiling Doors Doors Doors Walls Walls & Towel Bar Walls Ceiling Ceilin Floor Floor Floor Stove/Oven Light Fixtures Toilet & Pa er Reel Range/Hood Window & Screen Basin & Stopper Refrigerator Window Covers Tub or Shower Counter Tops Bedroom #3 Li t Fixtures/ GFI Sink/Disposer Doors Window/VentFan Light Fixtures/ GFI Walls Bathroom #2 Cabinets & Under Ceiling Doors Refrigerator Pan Floor Walls & Towel Bar " Lijzht Fixtures Ceilin Lv Rm/Dining Window & Screen Floor Ceiling Fan Window Covers Toilet & Paper Reel Doors Incl. Screen Bedroom #4 Basin & Stopper Walls Doors Tub or Shower Ceiling Walls Light Fixtures/GFI Floor Ceiling Window/Vent Fan Electric Fixtures Floor Miscellaneous Window/Screen I Light Fixtures Smoke Alarm s Window Cover Window & Screen Electrical Panel Bedroom #1 Window Covers Porch/Patio Doors Heating Equip Stairs Walls Furnace & A/C Stora e Area Ceiling Filter orbell Floor Thermostat rds Light Fixtures Hot Water Tank IlBack nt Window & Screen Water Heat 120F indowCovers Water Heater Vent e Was the required Moisture Inspection conducted at Move m"t , Move Ouu is the Moisture Inspection attached for Move In? , Move Out? Was any Mold detected at Move -In? , Move Out? Explanation of items that are NOT ACCEPTABLE (all items listed as not acceptable must be explained below): I certify that the unit contains working smoke detectors. I agree to replace batteries as needed and notify Manage- ment of any failures. I further certify that the foregoing report correctly represents the condition of the above -identified unit. Any deficiencies identified in this report will be remedied within 30 days of the date the tenant moves into the unit. Tenant Signature at Move -In Date Manager Signature at Move -In Date Tenant Signature at Move -Out Manager Signature at Move -Out Date Date WORD\Unitlnspmtion.All 7/15/05 MOISTURE INSPECTION The purpose of this inspection is to determine of any units have Mold or any condition that is conducive to the growth of Mold. Mold will be treated as a SERIOUS INCIDENT! All apartments must be inspected for Mold or conditions that could lead to Mold at all Semi -Annual Inspections, Move -In and Move -Out Inspections. Work Orders and all other occasions when we are in a unit. By inspecting the units as frequently as possible, we have the best chance to detect Mold conditions before any Mold has actually formed. Once Mold has formed, the problem becomes more complex. This Moisture Inspection Report is to be attached to all Semi -Annual Inspections, Move -In and Move -Out Inspections, and Vacant Unit Inspections. You must additionally fill out the Moisture Inspection Report each time a Maintenance Work Order is completed in any unit. This means that all work orders com leted inside a unit will have a Moisture Inspection attached. Each Moisture Inspection Report will be put in the permanent tenant file and in cases where Mold is detected, you must immediately file a Serious Incident Report, which must include a copy of the Moisture Inspection Report and call your Regional Manager. When the report indicates that no Mold exists, but does indicate that there is a condition that could lead to Mold, you must remedy that condition immediately and report the action to your Regional Manager. Use the following responses when filling out the form: (List specifics in the Comments) Dry and no sign of mold = NO Odor = NONE, SOME OR STRONG Signs of mold = YES Damp but no mold = DAMP MOISTURE INSPECTION PROJECT Unit Number Date of Inspection msPuvL" Reason for Inspection: (Circle) Tenant Call, Semi -Annual, Move -In, Move -Out, Work Order, Kitchen: Walls & Ceiling Floor Grouting Under Sink Cabinets Floor Under Refrigerator (tray) Refrigerator Seal Pantry Walls Open Food Bathroom(s): Walls & Ceiling Floors Grout Shower Curtain Stall Fan Under Sink Base of Toilet Behind Toilet Tub Vent All Rooms: Standing Water Moisture Signs (condensation) Discoloration Carpet Stains Carpet Moisture Ceilings Walls Sills Base Vents Filter(s) A/C Drain Odor Light Fixtures Hot Water Area Floor Hot Water Area Walls Comments (List locations and HYDER & COMPANY SMOKE DETECTOR TEST LOG DISABLED OR MISSING SMOKE DETECTORS MUST BE REPLACED WITHIN 24 HOURS Project name Lease violations must be sent for each disabled or missing smoke detector UnftE Date Tested Working Not Data Unit 9 Date Tested Working Not Date Tested by working Repairs Tested. by Working Repairs d THIS AGREEMENT is entered into on the between and Ck.� LEASE day of .20 by and those certain premises within the "Housing Community" known as and located at County of hereinafter called "Owner", hereinafter called "Tenant", covering State of California, hereinafter called "premises". 1. The terms Owner, Landlord, Agent and Management are used interchangeably in this Agreement. 2. TERM: The term of this Agreement shall commence on and ends at midnight on This Agreement will automatically renew on a monthto month basis unless either party gives written notification of termination of tenancy as provided herein. 3. RENT: A. The Owner has entered into certain Agreements with the USDA, Rural Development (USDA-RD) which provide that USDA-RD Rural Housing Service Agency will provide assistance such that below market rate rents are available to qualified tenants. Tenant's rental payment will be calculated based upon Tenant's Household Total Annual Income. The Owner must certify the Tenant as eligible to live in the Housing Community. The Rural Housing Service Agency has the right to further verify information provided by the Tenant. Details regarding income included and exempted, deductions from income and method of rent calculation are defined by USDA-RD and, in certain circumstances, Section 8 regulations. Basic and/or note rate monthly rental amounts are determined in accordance with USDA-RD regulations and will not be changed without prior USDA-RD approval in accordance with current USDA-RD and or Section 8 regulations. B. TENANT'S RENT. The total rent charge to Tenant shall be $ per month as determined by the following checked applicable program: _USDA-RD Interest Credit _Congregate Housing USDA-RD Rental Assistance _State of California RHCP Subsidy _Farm Labor Housing _PHA -Section 8 Housing Assistance Payments —HUD-Section 8 Housing Assistance Payments . A, Rur21 Dev IopmeM�� . t J C. DUE DATE. Tenant agrees to pay his/her monthly rent charge promptly on the first (1") day of each month without any obligation on the part of Owner to make demand for payment. D. PAYMENT ADDRESS. Rent and all other charges due Landlord shall be payable to: [state name of property, street address and telephone number where payment is to be deliveredl. E. PAYMENT TYPE. Payments may be made by: check, cashier's check, and/or money order. F. RENTAL OFFICE HOURS. The normal hours available to make payment in person are from [insert time to [insert time], Mondav through Friday, or at such other place or in such other manner as Landlord may from time to time designate. G. TENDER OF RENT BY TENANT. The Owner agrees to accept a Tenant's rent payment without regard to any other charges owed by Tenant to Owner; Owner agrees to seek separate legal remedy for the collection of any other charges which may accrue to owner from Tenant. H. LATE CHARGE/NSF CHARGE. In the event Tenant fails to pay the required monthly rent charge in full to Owner on or before the tenth (10h) day of each month of the term, Tenant agrees to pay to Owner the additional sum of $10.00 as a reimbursement for the administrative expenses incurred in processing the late payment. The Owner may collect a fee of $ each time a check is not honored. I. BASIC/NOTE RENT. The Basic/Note Rent (Market Rent) for the premises is $ . Should Tenant no longer qualify for rental assistance, Tenant shall be liable for the full Basic/Note rent. J. USDA-RD ESCALATION CLAUSE: The USDA-RD approved basic/note rate rent for this complex may be changed during the term of this Lease with USDA-RD approval, Such approved rent change would affect the rent charge only of tenants who are not receiving USDA-RD rental assistance, RHCP rental assistance or Section 8 assistance. K. SECTION 8 HOUSING PAYMENTS. For those Tenants receiving Section 8 Housing Assistance Payments, the amount of assistance that HUD pays on behalf of the Tenant may be changed during the term of this Agreement if: (1) HUD or the Public Housing Agency (PHA) determines, in accordance with HUD procedures, that an increase in rents is needed; (2) HUD or the PHA changes any allowance for utilities or services considered in computing the Tenant's share of the rent; (3) the income, the number of persons n the Tenant's household or other factors considered in calculating the Tenant's rent change and HUD procedures provide that the Tenant's rent or assistance payment be adjusted to reflect the change; (4) changes in the Tenant's rent or assistance payment are required by HUD's recertification or subsidy termination procedures; (5) HUD's procedures for computing the Tenant's assistance payment or rent change; (6) the Tenant fails to provide information on his/her income, family composition or other factors as required by the Owner or PHA. 2 4. UTILITY SERVICES: Utilities and Services shall be paid by the party indicated below: Owner Tenant Electricity Gas Water Garbage Collection Other (Specify): Sewer Telephone Cable Satellite Dish/Cable The Tenant shall not waste utilities or use utilities or equipment for any unauthorized purpose. Attached to this agreement is an allowance per month for the utilities designated to be paid by the Tenant and such allowance has been taken into consideration in determining Tenant's monthly rent charge and housing assistance payments. The Tenant is responsible to pay utility charges promptly when due. Failure to pay utility charges constitutes Material Non -Compliance as defined by paragraph 19C. 5. SECURPi Y DEPOSIT: Tenant agrees to pay a refundable security deposit of $ to the Owner at the time this Agreement is executed. The Tenant understands that the Tenant cannot use the Security Deposit for unpaid rent during the term of the tenancy. Upon surrender of possession of the premises, the deposit is to be refunded to the Tenant within 21 days, except as may be used by the Owner toward reimbursement of the cost of repairing any damage to the property (normal wear and tear excepted) caused by the Tenant or his family or guests, cleaning of the premises necessary to return the unit to the same level of cleanliness it was in at the inception of the tenancy, and any rent or other charges owed. The Owner shall provide the Tenant with an itemized statement of any security deposit retention as required by California law. If the premises is rented by more than one person, the Tenants agree that they will work out the details of dividing any refund among themselves. 6. DELAY IN POSSESSION. If Owner cannot deliver possession of the premises to you on the Commencement Date for any reason, Owner will not be liable for the delay, nor will this affect this Agreement's validity, or extend the term of the Agreement. However, Tenant will not be obligated to pay rent until Owner tenders possession of the premises to you. r " u l_I� ► u 1 - A. Tenant acknowledges that Tenant has thoroughly examined the premises and all personal property situated therein, and that no statements or representations not herein expressed as to the past, present, or future condition or repair thereof, or of any building of which premises is a part have been made by or on behalf of Management. By taking possession hereunder, Tenant acknowledges that the premises is ready for occupancy and is in good, sanitary order, condition and repair, and hereby waives any claim or right on account of the condition or repair of such personal property except as noted in the Move In/Move Out Inspection Form, a copy of which shall be given to Tenant at the time of move -in. The Tenant has been given the opportunity to accompany the Resident Manager to inspect the premises at the time of move -in and has helped the Resident Manager fill out the form. Tenant's signature on the Move -In Inspection form acknowledges that form accurately shows the condition of the premises. At the time of move -out the Tenant may have the opportunity to accompany the Resident Manager to inspect the premises. Tenant's signature on the Move -Out Form will acknowledge that the form accurately shows the condition of the premises at the time of move -out. B. The Tenant agrees to surrender the premises (including keys) to Management at the end of occupancy in as good condition as when received, reasonable wear and tear excepted. 8. ' OCCUPANCY. The Tenant shall occupy the premises as his or her primary place of residence. Tenant shall use the premises only as a private residential dwelling for himself/herself and the individuals listed on this Agreement and the Certificate of Eligibility. Tenant agrees to permit other individuals to reside in the premises only after, obtaining the prior written approval of Owner. Without the Owner's written consent, the Tenant shall not assign this Agreement, give accommodation to any roomers, lodgers, or other persons not listed on the Tenant Certification form, or permit the use of the premises for any purpose other than as a private dwelling solely for the Tenant and his/her family. This provision does not exclude reasonable accommodation of the Tenant's guests and/or visitors. A guest will be considered a member of the household to be added to the Tenant Certification who remains in the unit for more than 14 consecutive days or 45 days in any 12 month period. R_1►Y_ _ a ► _ A. TENANT'S MAINTENANCE RESPONSIBILITIES. (1) Tenant shall keep the premises in a clean and sanitary condition, and shall comply with all laws, health and policy requirements with respect to the maintenance of the rented premises. (2) All appliances, fixtures and equipment shall be used in a safe manner and only for the purposes for which they are intended. (3) Tenant shall not commit waste on the premises or destroy, deface, damage or remove any part of the premises or common areas, and further agrees not to litter the grounds or common areas of the property. (4) Tenant agrees to give the Owner prompt notice of any defects in the premises, including, but not limited to, plumbing, fixtures, appliances, heating and cooling equipment or any other part of the unit or related facilities. (5) The lack of proper maintenance or failure to maintain sanitary conditions in the premises or failure to timely report defects may be grounds for termination of tenancy. (6) If damage to the property is caused by acts or neglect of Tenant and/or his/her guests, the Tenant agrees to pay the total cost of repairs performed by management or their agents within 30-days of receipt of invoice from management. Failure to pay within 30 days of said invoice constitutes Other Good Cause for termination of tenancy. B. OWNERS' MAINTENANCE RESPONSIBILITIES (1) The property and all equipment provided therewith, as well as common areas, facilities and equipment provided for the use and benefit of the Tenant shall be maintained in a decent, safe and sanitary condition. (2) The Owner shall respond in a reasonable time to calls by the Tenant for services consistent with said obligation. When applicable (as in cases of multi -unit buildings), such maintenance with respect to common areas, facilities and equipment shall include cleaning, maintenance of lighting and equipment, and maintenance of grounds, lawns and shrubs. (3) In addition to any remedy available to Tenant under Federal, State or Local Law for, a grievance maybe filed by a Tenant or Tenants for failure of the Management to provide adequate maintenance (see #20, Grievances). 10. ELIGIBILITY: The following conditions and/or standards are agreed to in determining rents and continued eligibility for occupancy: A. Tenant understands that he/she will no longer be eligible for occupancy in this project if their income exceeds the maximum allowable adjusted income as defined periodically by the USDA -Rural Development or successor Agency. Tenant agrees to vacate the premises within 30 days of being notified by the Owner that Tenant is no longer eligible for occupancy or at the end of the lease term whichever is greater. B. Tenant understands that income certification is a requirement of occupancy and he/she agrees to promptly provide any certifications and income verifications required by Management to permit determination of eligibility and, when applicable, the monthly Tenant rent charge. C. Tenant further agrees to fulfill all of the Tenant income verification and certification requirements established under 7 CFR 3560.152, which includes the following provisions: (1) Tenant households must be recertified and must execute a tenant certification form at least annually or whenever a change in household income of $100 or more per month occurs. Owner must recertify for changes of $50 per month, if the Tenant requests that such a change be made. (2) Tenants must authorize Owner to verify information provided to establish their eligibility or determination of tenant contribution. (3) Tenants must report all changes in household status that may affect their eligibility to borrowers, including all additional occupants. (4) Tenants who fail to comply with Tenant certification and recertification requirements will be considered ineligible for occupancy and will be subject to termination of tenancy and, if applicable unauthorized assistance claims. D. Tenant understands that should Tenant receive occupancy benefits to which he/she is not entitled due to Tenant's failure to provide information or due to incorrect information provided by Tenant or on the behalf of others, or for any other household member, Tenant may be required to make restitution and agrees to repay any amount of benefits to which he/she was not entitled. E. Tenant understands that income certification is a requirement of occupancy and Tenant agrees to promptly provide any certifications and income verifications required by the owner or cooperative board to permit determination of eligibility and, when applicable, the monthly tenant or member contribution to be charged. F. Tenant agrees that should the unit become overcrowded or underutilized or should the Tenant no longer meet the eligibility requirements of the project during the term of the Lease Agreement, he/she will be required to vacate the unit at the end of the Lease term unless eligibility can be established following specified steps, such as moving to an appropriate size unit, or an exception is granted by Management. If the Tenant is or becomes eligible for a different size unit, and the required size unit 5 becomes available, the Tenant agrees to move to the required size unit within 30 days after the Owner notifies him or her that the unit of the required size is available within the project. G. Knowing or willing misrepresentation by the Tenant of the facts upon which rent or eligibility determinations are based may subject the Tenant to termination of tenancy and/or repayment of benefits to which not entitled and/or a fine of not more than $10,000 or imprisonment of not more than 5 years, or both. H. Rent changes (other than due to changes in household income and/or composition) and/or notice of ineligibility shall become effective 30 days after service of notice or no later than the 1' of the month following expiration of such 30-day period unless California law requires the service of a 60 day notice of rent increase. 11. PLANNED ABSENCE. The Tenant agrees to advise Management of any planned absence for extended period(s) usually of 2 weeks or more. 12. DEFAULT. In the event Lessee breaches the Agreement and abandons the property before the end of the term, or if Lessee's right to possession is terminated by Lessor because of a breach of the lease, the lease terminates. Lessor may recover from Lessee the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award, exceeds the amount of such rental loss for the same period that Lessee proves could be reasonable avoided. 13. CREDIT. A negative report reflecting on your credit record may be submitted to credit-reporting agencies if you fail to fulfill the terms of your obligations under this Agreement. 14. ACCESS BY OWNER Upon receipt of prior notice from Management, the Tenant shall permit the Owner, or Owner's agents, or any representative of a holder of a mortgage on the property, to enter the Premises for the purpose of making reasonable inspections and repairs, EXCEPT that the Owner, or Owner's agents, shall have the right to enter the Premises without prior notice if Management reasonably believes that an emergency exists which requires such entrance. Other than in emergencies, 24-hour advance notice shall be presumed to be reasonable notice. Tenant understands that the premises is subject to Federal Regulations which may require the Owner to enter the premises for the purpose of conducting annual inspections. 15. RENTERS INSURANCE. Owner recommends that Tenant obtain a Renters Insurance Policy. Tenant understands that Owner does not insure Tenant or Tenant's personal property from loss. Tenant hereby agrees to indemnify and hold Owner harmless from all claims arising from Tenant's negligence on the premises. 16. WATERBEDS AND AQUARIUMS. Waterbeds are permitted only with our written permission, which will be provided in accordance with California Law. Permission may be conditioned upon insurance protecting us, an increase in the security deposit equal to one-half month's Basic/Note rent, and installation and maintenance in accordance with industry standards. You must also obtain our permission to have an aquarium more than five gallons. 17. ALTERATIONS: Without prior written approval of Management, the Tenant shall not make any alterations to the premises, including but not limited to: (1) paint, paper, or otherwise redecorate or make alterations, additions, or improvements in or to the property; (2) install a washing machine, dryer, air- conditioning units, or any other electrical equipment; (3) place fixtures, signs or fences in or about the Premises; (4) change or add locks. 18. DISCRINIINATION: The Owner shall not discriminate against the Tenant in the provision of services, or in any other manner, on the grounds of race, color, creed, religion, sex, national origin, age, familial status, marital status or physical or mental handicap (tenant must possess capacity to enter into legal contract). This complex is financed by the USDA Rural Development and is subject to Title VI of the Civil Rights Act of 1964, Title V11 of the Fair Housing Act, Section 504 of the Rehabilitation Act of 1973 and the Age Discrimination Act of 1973. The address of the management agent to which the Tenant may direct complaints is: Hyder FmRerty Management Professionals, 1649 Capalina Road, Suite 500, San Marcos, CA 92069-1226. However, complaints of Fair Housing violations may be sent to the Secretary of Housing and Urban Development, Washington, DC 20410. 19. TERMINATION OF AGkEEMENT: A. Termination by Tenant. In order to terminate this agreement the Tenant must give the Owner written notice of Tenant's intent not to renew this agreement at least 30 days prior to the expiration date set forth in Paragraph 2. The Tenant must move out on the expiration date as stated in his or her notice and pay all rent due and owing through that period. If the tenant fails to vacate on or before the date set forth in Tenant's notice, the Owner may immediately file a lawsuit for unlawful detainer to regain possession of the premises. B. No Fault Termination. This Agreement may be terminated prior to the end of the term without the termination being deemed a default under the following circumstances: 1. Death of the sole Tenant of unit. 2. By the Tenant giving no less than 30-days written notice of his/her intention to terminate to Owner at Owner's office of the Resident Manager on the Premises or such other address as Owner has designated in writing for "Good Cause" such as moving to another location for employment, loss of job, severe illness, death of spouse, or other reasons customary or mandatory in the community or notification by borrower of intent to prepay. Tenant hereby agrees to vacate the Premises not later than the date specified in such notice, If Tenant fails to vacate on or before the date set forth in Tenant's notice, the Owner may immediately file a lawsuit for unlawful detainer to regain possession of the premises. 3. By fire or other disaster rendering the premises untenable. In such case, the Lease shall be automatically terminated unless the building can be repaired or rehabilitated within 120 days. C. Termination by Owner. The Owner may terminate or refuse to renew any occupancy only for Tenant's Material Non -Compliance with this Agreement or Other Good Cause. 1. MATERIAL NON-COMPLIANCE: Material non-compliance with the Agreement includes but is not limited to: a. one or more substantial violation of the Agreement; b. nonpayment or repeated late payment of rent or occupancy charge or any other financial obligation due under the Lease (including any portion thereof) beyond any grace period. c. submitting false information on any application,, certification or request for interim changes in household income or other factors required to be reported by this Agreement 7 d. behavior by the Tenant, members of the Tenant's household, or the Tenants' visitors or guests that adversely affect the health and safety of any person or the right of any tenant to the quiet enjoyment to the leased premises and related project facilities, including, but not limited to, creating or maintaining a nuisance on the premises as defined by California Civil Code section 3479. e. drug related criminal activity engaged in on or near the premise, by any tenant, household member, or guest, or any other person under the control of a tenant; f, criminal activity by a tenant, household member, or guest on or near the premises that threatens the health, safety, or right to peaceful enjoyment of the premises by other residents or staff; g. use of the premises for any unlawful purpose; h. committing waste on the premises; i. failure to carry out any material obligation under Federal, California or local Landlord -Tenant law. 2. OTHER GOOD CAUSE. Conduct cannot be considered as other good cause unless the Borrower or project manager has given the tenant prior notice that the conduct will constitute a basis for termination. Other Good Cause includes, but is not limited to: a. Repeated minor violations of the Lease or Occupancy Agreement which disrupts the livability and harmony of the project; b. failure of the tenant to timely supply all required information on the income acid composition, or eligibility factors, of the tenant household including, but not limited to, failure to sign and submit consent forms for the obtaining of wage and claim information from State Wage Information Collection Agencies; c. where, based upon the Tenant's certification paperwork, Tenant is no longer financially eligible to remain in the unit; d, failure to maintain the premises in a clean and sanitary condition; e. failure to transfer to a required size unit within 30 days after the Owner notifies him/her that a unit of the required size is available within the project; g. remaining in possession after the Owner deems the Premises untenable and unable to be repaired within 120 days; D. NOTICE OF TERMINATION: 1. The notice of Termination of Tenancy must include: a. A statement of the basis for lease termination with specific reference to the provisions of the lease or occupancy rules that, in the borrowers judgment, have been violated by the tenant in a manner constituting material non-compliance or good cause b. A specific date by which lease termination will occur; c. Advise the Tenant that if he or she has not vacated by the date specified, the Owner may seek to terminate the Lease or Occupancy Agreement by bringing forth a judicial action, at which time the Tenant or member may present a defense. 2. NOTICE TIME PERIOD a. Material Non -Compliance. The notice period for Material Non -Compliance shall run according to the time frames set forth in California Code of Civil Procedure 1161. Accordingly, the Owner may terminate tenancy upon a minimum of 3 days written notice for non-payment of rent (unless otherwise required), maintaining a nuisance on the premises, committing waste, criminal activity on or near the premises, using the premises for an illegal purpose or failure to comply with a material covenant contained in this Agreement or mandated by law. Tenant understands that Owner may serve Tenant a 3 day notice to terminate tenancy if Tenant submits false information on any application, certification or request for interim changes in household income or other factors required to be reported by this Agreement. b. Other Good Cause. The notice period for Other Good Cause shall be a minimum of 30. days. 20. GRIEVANCES: Owner and Tenant agree that any Tenant grievance or appeal from management's actions, inaction's or decisions shall be resolved in accordance with Rural Development Tenant Grievance and Appeals procedure, Rural Development Instructions (a copy of which is posted in the rental office and is available for the Tenant's inspection). The Grievance and Appeals procedure shall not apply to Management decisions to terminate tenancy, including the initiation of eviction proceedings. 21. TRANSFER OF LEASE: Tenant understands that should the complex be sold to a buyer approved by Rural Development, the Lease will be transferred to the new Owner. 22. PREPAYMENT OF LOAN BY OWNER: In the event of prepayment of the Rural Development loan, this Lease will be honored until the date your Lease expires or the date of prepayment, whichever occurs last, providing the Owner has complied with proper notification and prepayment procedures as contained in Rural Development Instruction 1965-B. No Tenant contribution to rent may be increased by reason of prepayment for the term of the Lease. 23. SUSPENSION OR CANCELLEATION OF FEDERAL SUBSIDIES DUE TO THE BORROWER DEFAULT: Should any Federal subsidies paid to the Owner on behalf of Tenants be suspended or canceled due to a monetary or non -monetary default by the Owner, the monetary payment made by the Tenant to the Owner (or, when applicable, the monetary payment received by the Tenant from the Owner) shall not change over that which would have been required had the subsidy remained in place. 24. LEASE TERMINATION — NATURAL DISASTER: Owner shall not be liable if, because of fire or other disaster, the Premises become untenable. In such case, the Lease shall be automatically terminated unless the building can be repaired or rehabilitated within 120 days. If the premises can be repaired within 120 days then Tenant agrees to co-operate with the Owner's repair efforts, including temporary relocation if necessary. 25. MODIFICATION OF RENTAL AGREEMENT: The Agreement may be modified by serving an appropriate notice to Tenant together with the tender of a revised Lease or an addendum revising the existing Lease. A 30-day notice is required. The modified rental agreement or addendum shall be delivered to the tenant along with the notice either by first-class mail or hand delivered to the premises to an adult member of the household. The date on which the revised rental agreement or addendum shall be deemed to be received by the Tenant shall be the date it was placed in the mail or hand delivered to Tenant. The notice must advise the Tenant that the Tenant has a right to appeal any Lease modification in accordance with USDA Rural Development Tenant Grievance and Appeals Procedure (see #20, Grievances), if the modification will result in a denial, substantial reduction, or termination of benefits being received. 26. ABANDONMENT OF UNIT AND PERSONAL PROPERTY: Any and all property of Tenant which may be left in the apartment or the buildings after the termination of this Lease or termination of Tenant's right of possession for any reason may be handled, removed, or otherwise disposed of by Owner according to State law. Owner shall in no event be responsible for any property left in the apartment or the buildings by Tenant. Tenant shall pay to Owner upon demand all expenses incurred in such disposition, including a reasonable charge for storage. Tenant household's tenancy still exists during the time that the Tenant household's personal possessions remain in the apartment unit after the Tenant household has personally ceased occupancy with the intent to vacate and leave the project, until such time the personal possessions have been removed voluntarily or by legal means, subject to the provisions of State or Local law. 27. NOTICES: All notices required by this Agreement shall be in writing and shall be delivered personally or sent by prepaid mail as follows: To the Tenant: At the Premises. To the Management Agent/Owner: 28. LAWSUITS: In the event of any legal action to enforce any provisions of this Lease, the prevailing party shall be awarded court costs and reasonable attorney's fees. 29. WAIVER OF AGREEMENT PROVISIONS: Failure of the Owner to insist upon the strict performance of the terms, covenants, Agreements and conditions herein contained, or any of them, shall not constitute or be construed as a waiver or relinquishment of the Owner's right thereafter to enforce any such term, covenant, Agreement, or condition, but the same shall continue in full force and effect. 30. TIME IS OF THE ESSENCE. Time is of the essence as to each obligation under this Agreement. 31. RIGHT TO ORGANIZE: Owner agrees to allow Tenant and tenant organizers to conduct on the property the activities related to the establishment or operation of a tenant organization set out in accordance with USDA or HUD requirements. 32. PROPOSITION 65 WARNING. The State of California requires that we warn you that the property contains chemicals known to the state of California to contain cancer, and birth defects, and other reproductive harm. These chemicals may be contained in emissions and fumes from building materials, products and materials used to maintain the property, and emissions, fumes, and smoke from resident and guest activities, including but not limited to the use of motor vehicles, barbecues, and tobacco products. Theses chemicals may include, but are not limited to carbon monoxide, formaldehyde, tobacco smoke, unleaded gasoline, soots, tars, and mineral oils. rut 33. PEST CONTROL. (OWNER TO CHECK ONE) a. [ ] No Pest Control Contract. We have not contracted with a pest control Property is Covered by a Pest Control Ccompany to provide services. b• [ ] ontract. We have contracted with a registered structural pest control company to provide pest control services to the property on a periodic basis, and you have been provided with a written notice regarding the use of the pesticides used as provided under California Business and Professions Code Section 8538 and Civil 34. MECode Section 1940.b. GAN'S LAW; Assembly Bill 488 and the California Depardnent of Justice, sheriffs departments, police departments servicing jurisdictions of 200,000 or more provides the public with Internet access to detailed information on registered sex offenders pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in an punish the offender and specifically y neighborhood. The law is not intended to against an offender. ham;/ ecifically Prohibits using the information to harass or co /wwcv me anslaw ca ov, mmit any crime 35. APARTMENT RULES & REGULATIONS: The Apartment Rules & Regulations attached hereto are made a part of this Agreement, and Tenant agrees to abide by each and all such rules and by any amendment thereto of which Tenant is properly notified in writing as provided in #25 of this Agreement. T also applies to "Pet Rules" for projects designated for elderly persons. 36. RECEIPT OF SIGNED AGREEMENT AND ATTACHMENTS: By affixing his or her signature hereto, Tenant acknowledges receipt of an executed copy of this Agreementa co Rules and regulations and all Addendum's listed below andment marked as attached' PY of the Apartment 37.ATTAC ' 1TMENT TO AGREEMENT (if applicable): B a copy of the addendum referred to and has read and understands the Tenant nt,acknow and 2) the ad receipt of incorporated into the Agreement as thou stands the document, and 2 though fully set forth at length, ()the addendum is a. Apartment Rules & Regulations b• _ Attachment "B" Drug Violation & Illegal Activity. C. Attachment "C" FmHA Interest Credit e- Attachment "D" FmHA Rental Assistance e -____Tenancy Addendum -Section s T 9- -_ Attachment "F., enant Based Housing Choice Voucher Program g• __,__, Attachment GHUD — Sectionnls Housing Assistance Payment, Rent Subsidy h. " RHCP Rental Assistance A�hment "P' FmHA Labor Housing . k _ Lease Addendum of Drug and Crime -Free Housing 1 Mold & Mildew Addendum and Disclosure Statement __ Satellite Dish Installation m __ Live In Aide/Assistant Addendum n• Rent Concession Lease o __ Amendment ____ Agreement to Move for Over -Income Household q. --__ Agreement to Move from Handicapped Accessible Unit Tenant Certification r• _ Utility Allowance 11 Other persons to occupy Premises with Tenant(s): Age: _ Age: Age: Age: Age: Age: The undersigned expressly understand(s) that this Agreement contains provisions under which this Lease may automatically continue as on a year to year term upon the expiration of the term hereof. OWNER/AGENT DATE TENANT DATE AUTHORIZED REPRESENTATIVE DATE TENANT DATE USDALews Aug 2006 12 TENANT DATE ATTACHMENT "B" DRUG VIOLATION & ILLEGAL ACTIVITY The following additional provisions are incorporated in full in the lease between , hereinafter called "Owner/Agent" and hereinafter called "Tenant", for the premises known as Apartment # . at California In case of any conflict between these and any other provisions of the these provisions shall prevail. The tenant agrees to the following: lease, Not to engage or permit guests or other household members to engage in unlawful activities in the unit, in the common areas, or on the project grounds. These unlawful activities include but are not limited to the possession, use and/or sale of illegal drugs and disturbances or acts of violence that damage or destroy the dwelling unit or injure other residents. 1$e tenant further agrees not to engage personally in unlawful activities in the unit, in the common areas or ou or off the project grounds. Such activities include, but are not limited to, those listed in (1) above. It is understood that the use, attempted use, or possession, manufacture, sale, distribution of an illegal controned substance (as defined by local, state, or federal law) while in or on any part of this apartment complex is an illegal act. It is further understood that such action is a material lease violation. Such violations (hereinafter called "drug violations") may be evidence upon the admission to or conviction of a drug violation. The landlord may require any lessee or other adult member of the tenant household occupying the unit (or other adult or nonadult person outside the tenant household who is using the unit) who commits a drug violation to vacate the leased unit pemumently, within time frames set by the landlord, and not thereafter eater upon the landlord's premises or the lessee's unit without the landlord's prior consent as a condition for continued occupancy by members of the tenant household. The landlord may deny consent for entry unless the person agrees to not commit a drug violation in the future and is either actively participating in a counseling or recovery program, complying with court orders related to a drug violation, or.completed a counseling or recovery program. The landlord may require any lessee to show evidence that any nonadult member of the tenant household occupying the unit, who committed a drug violation, agrees to not commit a drug violation in the future, and to show evidence that the person is either actively seeking or receiving assistance through a counseling or recovery program, complying with court orders related to a drug violation, completed a counseling or recovery program within time frames specified by the landlord as a condition for continued occupancy in the unit Should a further drug violation be committed by an nonadult person occupying the unit, the landlord may require the person to be severed from tenancy as a condition for continued occupancy by the lessee. MM- If a person vacating the unit, as a result of the above policies, is one of the lessees, the person shall be severed from the tenancy and the lease shall continue among any other remaining lessees and the landlord. The landlord may also, at the option of the landlord, permit another adult member of the household to be a lessee. Should any of the above provisions governing a drug violation be found to violate any of the laws of the land, the remaining enforceable provisions shall remain in effect. The provisions set out above do not snppiaat any rights of tenants afforded by law. own gent Tenant Date Atdhorized Represe<ttative Tenant Date i Tenant \WP52\Attchmt&.Ise 4/22194 (Rev.5/10/94) 8-18A Date FrnHA RENTAL ASSISTANCE The following additional provisions are incorporated in full in the lease between . hereinafter called "Owner/Agent" and hereinafter called "Tenant", for the premises known as Apartment at California. In case of any conflict between these and any other provisions of the lease, these provisions shall prevail. The Tenant agrees to the following: I understand and agree that as long as I receive rental assistance, my gross monthly tenant contribution, as determined on the latest Form FmHA 1944-9, which must be attached to this lease, for rent and utilities will be $ ,If I pay any or all utilities directly (not including telephone or cable TV), a utility allowance of $ will be deducted from my gross monthly tenant contribution and my resulting net monthly contribution will be $ . If my net monthly tenant contribution would be less than zero, the lessor will pay me $ I also understand and agree that my monthly tenant contribution under this lease may be raised or lowered, based on changes in the household income, failure to submit information necessary to certify income, changes in the number and age of persons living in the household, and on the escalation clause m this loess. Should I no longer receive rental assistance as a result of these changes, or the rental assistance agreement executed by the Owner/Agent and FmHA expires, I understand and agree that my monthly tenant contribution may be adjusted to no less than $ (Basic Kent) nor more than $ (Note Rate Rent) during the remaining term of this lease except that based on the escalation clam in this lease, these remai rates may be changed by a Farmers home Administration approved rent change. (Note: Eligible borrowers with LH loans and grants, direct RRH loans, or insured RRH loans approved before August 1, 1%8, may omit the words "no I= than $ (Basic Rent) nor more then" from the last sentence of the above statement. I understand that every effort will be made to provide rental assistance so long as I remain eligible and the rental assistance agreement between the Owner and FmHA remains in effect. However, should this assistance to be terminated, I may arrange to terminate this lease, giving proper notice as set forth elsewhere in this lease. (Note: The following clause is applicable only to Plan I direct or insured RRH loans approved before August 1, 1968.) I further agree that should I be permitted to occupy when my income exceeds maximum limits, I shall pay a 25 percent rental rate surcharge in addition to my rental rate of $ Authorized Representative Date renant Tenant \WP521AttchmtD.lse 8-20 Date Date G 0 LEASE ADDENDUM OF DRUG AND CRIME -FREE HOUSING In consideration of the execution of renewal of a lease of the dwelling unit identified in the lease, Owner and Tenant agree as follows: 1. Tenant, any members of the tenant's household, or a guest or other person under the tenant's control shall not engage in criminal activity, including drug -related criminal activity, on or near the propertys premises. "Drug -related criminal activity" means the illegal manufacture, sale, distribution, use or possession with intent to manufacture, sell, distribute, or use of a controlled substance (as deemed in Section 102 of the Controlled Substance Act (21 U.S.C. 802). 2. Tenant, any member of the tenant's household, or a guest or other person under tenant's control shall not engage in any act intended to facilitate criminal activity, including drug -related criminal activity, gang activity, or illegal defacement of property with graffiti, on or near public property and premises. 3. Tenant or members of the household will not permit the dwelling unit to be used for or to facilitate criminal activity, including drug -related criminal activity, regardless of whether the individual engaging in such activity is a member of the household or a guest. 4. Tenant or members of the household will not engage in the manufacture, sale, or distribution of illegal drugs at any location, whether on or near project premises or otherwise. 5. Tenant or members of the household, or a guest or other person under tenant's control shall not engage in acts of violence, including but not limited to, the unlawful dischargeof firearms, threatening and/or brandishing of weapons likely to cause serious bodily injury, or acts likely to provoke an act of violence on or near property premises. 6. VIOLATION OF THE ABOVE PROVISIONS SHALL BE A MATERIAL VIOLATION OF THE LEASE AND GOOD CAUSE FOR TERMINATION OF TENANCY. A single violation of any of the provisions of this added addendum shall be deemed a serious violation and a material noncompliance with the lease. It is understood and agreed that a single violation shall be good cause for termination of the lease. Unless otherwise provided by law, proof of violation under this Addendum shall not require criminal conviction, but may exist by a preponderance of the evidence. 7. In case of conflict between the provisions of this Addendum and any other provisions of the lease, the provisions of the Addendum shall prevail, 8. This Lease Addendum is incorporated into and shall become a part of the original lease or any renewal of said Lease between Owner and Tenant. Date: Date: OWNER TENANT WORD\Drug-CrimeFreeLeaseAddendum This mold and mildew addendum dated lease dated and Mold & Mildew Addendum Apartment # (the "Lease") by and between Apartments. L Apartments is attached to and made part of the As a part of the on -going maintenance control at Apartments, please understand that the above -stated apartment was inspected, cleaned and painted prior to your move -in. Resident(s) acknowledge that is necessary for resident(s) to provide appropriate climate control, keep the unit clean, and take other measures to retard and prevent mold and mildew from accumulating in the unit. Resident(s) agrees to clean unit on a regular basis to remove visible moisture accumulation on windows, walls and other surfaces as soon as reasonably possible. Resident(s) agrees not to block heating, ventilation or air- condition ducts in the unit. Resident also agrees to immediately report to the management office: 1. Any evidence of water leak or excessive moisture in the unit as well as in any storage room, garage or common area. 2. Any evidence of mold or mildew -like growth that cannot be removed by simply applying a common household cleaner and wiping the area. 3. Any failure or malfunction of the heating, ventilation or air conditioning system in the unit. 4. Any inoperable windows and doors. Resident further agrees that resident shall be responsible for damage to the unit and Resident's property as well as injury to Resident and Occupants resulting from Resident's failure to comply with terms of this Addendum. A default under the terms of this Addendum shall be deemed material default under the terms of the Lease, and the Lessor shall be entitled to exercise all the rights and remedies by law or in equity. Except as specifically stated here, all other terms and conditions of the Lease shall remain unchanged. In the event of any conflict between the terms of this agreement and the terms of the Lease, the terms of this Addendum shall control. Any term that is capitalized but not defined in this Addendum that is capitalized and defined in the Lease shall have the same meaning for purposes of this Addendum as it has for the purposes of the Lease. Resident Resident Resident Date Date Date \WORD\mold&mildew.addendum 1/28/03 Owner/Agent Date MOLD/MOISTURE DISCLOSURE STATEMENT 1. What are molds? Molds are simple, microscopic organisms; present virtually everywhere indoors and outdoors. Mold are fungi and are needed to break down dead material and recycle nutrients. For molds to grow and reproduce, they need only a food source (any organic material, such as leaves, wood, paper or dirt) and moisture. Mold growth on surfaces can often been seen in the form of discoloration, frequently green, gray, brown or black, white and other colors. Molds release countless tiny, lightweight spores, which travel through the air. 2. How are You groused to mold? Everyone is exposed to some mold on a daily basis, most without evident harm. It is common to find mold spores in the air inside homes, and most of the airborne spores found indoors come from outdoor sources. The California Department of Health Services has stated that Mold spores can cause health problems when they are present in large numbers and people inhale many of them, and that health problems can occur when there is active mold growth within home where people live, however, contrary views exist on this topic. The California Department of Health Services has stated that people can also be exposed to mold by touching contaminated materials or by eating contaminated foods. 3. How can mold become a problem in Your apartment unit? Molds will grow and multiply whenever conditions are right (sufficient moisture is available and organic material is present). Be on the lookout for indoor moisture that may lead to mold problems. Common indoor moisture sources include, but are not limited to: condensation, plumbing leaks, overflow from tubs, sinks or toilets; humidifier use; inadequate venting of kitchen and bath; failure to keep bathtub areas, shower areas, sink areas, dishwasher and washing machine areas property cleaned and dried ayfer usage; line drying laundry indoors; watering of house plants indoors; flooding, roof leaks; steam from cooking; and shower/bath steam Rater, moisture and mold MUST be dealt with immediately. 4. Can von tell if you have mold in your unit? You may suspect that you have mold if you see discolored patches or cottony or speckled growth on walls or furniture or if you smell an earthy or musty odor. You may also suspect mold growth if mold -allergic individuals experience allergic reactions. Look for signs of moisture or water and/or moisture damage, i.e. water leaks, standing water, water stains, or condensation problems. Search behind and underneath materials, furniture or stored items. 5. What to do if You suspect that mold is within your unit. IMMEDIATELY NOTIFY MANAGEMENT if you suspect the existence of mold within your unit. Management staff has specific procedures and steps to follow in handling the detection, testing, and cleanup of mold. 6. What are your responsibilities in vreventine Indoor mold problems? As a resident, YOU are responsible for preventing Indoor mold problems within your unit. Such responsibility includes performing or preventing the following tasks or conditions: a. Inspect your unit regularly for the indications and sources of indoor moisture, including your shower curtain, rob and shower. b. CONDENSATION, WHICH DEVELOPS ON/IN ANY AREA OR ON ANY SURFACE FROM INDOOR MOISTURE MUST BE WIPED DOWN IMMEDIATELY. These areas and surfaces include, but are not limited to windows, window tracks (condensation on windows indicates that fresh air is not being circulated in your unit) walls, tile surfaces and tub/shower areas. To help prevent moisture build-up, open your windows and air out your unit for short periods of time to keep fresh air present. (Excessive running of your heater will cause condensation in your unit.) c. When showerinWhathing, always utilize the bathroom fan or open a bathroom window and leave on or open until bathroom steam is gone. d. Water plants outdoors. e. Do not dry wet clothes indoors. f. Leave adequate space for ventilation between all walls and furniture, appliances and other objects within your apartment. Do not allow furniture, appliances or other objects to come into contact with walls. g. Always utilize stove hood vents when cooking items that may cause steam; and It. If a leak or flooding occurs, it is essential for you to act quickly In doing the following: (1) IMMEDIATELY CONTACT MANAGEMENT. (2) Remove excess water with mops or wet vacuum. (3) If possible, move wet items to a dry and well -ventilated area or outside to expedite drying; move rugs and pull up areas of wet carpet as soon as possible. (4) Open closet and cabinet doors and move furniture away from walls to increase circulation. (5) Run portable fans to increase air circulation (Do NOT use fans if you believe mold may have already started to grow). (6) DO NOT turn up the heat or use heaters in confined areas, as higher temperatures increase the rate of mold growth. \WORD\Molddisclosure.stmt 11/25/03 SATELLITE DISH INSTALLATION Renters are now allowed to install dishes or certain other antennas in specific locations. The Federal Communication Coumrission (FCC) Wiling enables tenants to install certain dishes on private balconies, porches or other area where the individual tenant has the exclusive use and other tenants do not share such area. DISHES ARE PROHIBITED IN THE FOLLOWING AREAS: 1. Rooftops or fascias 2. Window sills 3. Common use areas such as balconies, stairways or yards 4. Outside walls or fences Dishes may be installed on private patios or balconies; however no part of the dish or antennae may extend beyond the patio or balcony railing line. Noboles maybednlledinpabo orbalcony railings or window insiallabom.No boles maybe drilled in any part of the roof No holes may be dolled in any exterior wall without prior written consent of the lessor. .. «. , i . ,. ,..::. • Fire codes, which prevent installation for evacuation reasons. • Installations requiring a certain distance from power lines. • Electrical codes that require certain types of grounding. • Proper methods of securing antenna Tenants who wish to install a dish or antenna must secure written consent from the management office before Droceedin2! By signing below I agree to ask management's approval prior to Installing any type of Satellite Dish: Co -Tenant Co -Tenant Date Date Co -Tenant Date Co -Tenant [�::ma� r+�rrnarrna Date 60�v RULES AND REGULATIONS Project Name I�iT:�L'l�iilt7 The rules and regulations contained in this handbook are an important addition to the lease agreement that you have signed. Each tenant is responsible to become acquainted and comply with its contents. It should be retained on file with your copy of the lease agreement. This apartmentproject is operated in accordance with the laws, policies and standards prescribed by the Governing Agency. The information in this handbook defines tenant -management responsibilities. The responsibilities stated herein to be accomplished by the tenant are not considered more than could be expected ofany prudent homeowner or tenant. Your support will enable us to continue to administer this project and maintain a high standard which will merit your pride as an individual in this community. The insurance policy that the owner carries does not insure the property of the tenants. Your Personal Property (furniture. clothes, vehicles etc.) is not covered by our insurance. We urge you to buy a Renters Insurance Policy to cover your personal belongings. These policies are inexpensive and available from almost any general insurance agent. HYDER PROPERTY MANAGEMENT PROFESSIONALS RULES AND REGULATIONS L General Information A. Rental Office Location: B. Phone Number for Rental Office: C. Office hours are posted at the office and are subject to change from time to time. In case of emergency you may reach the managers at their apartment, or call 911. D. The following common are facilities are available to Tenants: E. If you need our assistance from the Managing Agent's Headquarters, please contact us at 1649 Capalina Road, Suite 500, San Marcos, CA 92069-1226 or call us at (760) 591-9737. We are open Monday through Friday 9 AM to 5 PM. In case of emergency please dial 911. II. Tenant Complaints A. Management has established a set of procedures designed to ensure thatthere is a fair and equitable process for addressing tenant concerns and to ensure fairtreatmetit oftenants in the event that an action or inaction by the Owner adversely affects the your tenancy. Ifyou wish to lodge a complaint regarding your tenancy to management, please submit your complaint in writing to the rental office or to the Agent's Headquarters listed above. Management will investigate all Tenant complaints in a fair and impartial manner and take the appropriate action within a reasonable time frame. B. You also have the right to utilize the Grievance and Appeal procedures set forth in 7 CFR 1350.160. A copy of the Grievance and Appeal procedures is posted in the rental office for your inspection M. Rent Payment Please refer to your Rental Agreement for information regarding rental payments. The manager is required to give each tenant a numbered receipt, showing the project name upon payment of the tent or any otherpayments except redeeming a bad check. The receipt must be dated and for the exact amount paid. KEEP YOUR RECEIPTS - THEY ARE FOR YOUR PROTECTION: IV. TenanPs Riehts and Responsibilities & General Rules and Regulations. No pets or animals of any kind are permitted on the premises without the prior written consent of the manager. 2. To use the laundry facilities at their own risk and to assist in keeping these facilities clean. Not to use the laundry for storage, entertainment or play area. The project owner or manager is not responsible for loss or damage to Personal Property. Hallways, balconies, railings, fences and patios will not be used for the drying of clothes. 3. Not to allow the firing of firearms, air rifles, pellet guns, sling shots or other projectile devices on the property, orthrow objects at, or from the apartments. 4. To deliver to the manager at least 30 days prior to termination two signed copies of your written notification of termination of your lease. Have the manager sign and date one copy and retain it for your file - give the other DOPY to the manager. This will provide you with proof you gave a 30-day Notice to Vacate. 6. No water lines and/or electrical extension cords are to be extended outside the apartment 7. Not to allow any guest to stay on the premises beyond that allowed in the lease. Tenant understands that if a guest stays more than 14 consecutive days or more than 45 days in any twelve month period that the guest will be deemed a household member and the Tenant will be required to add said individual as a household member on the Tenant Certification. 8. Not to store any personal property anywhere except inside their unit patios and balconies are not storage areas, however, bicycles may be kept on patios and balconies. 9. There will be a charge of $25.00 to any tenant who needs assistance in re-entering his apartment because he locked himself out after 8:00 P.M. Tenants may hire a locksmith at their own expense to open their apartment but not to change the lock. 10. Not to allow objects to be hung, placed on, or suspended from the buildings, fences, or rails on the premises. 11. Not to alter any lock or install a new lock on any door of the premises without the prior written consent of the manager. In case such consent is given, tenant shall provide the manager with akey for the use ofmanagement Pursuant to management's right to access the premises. 12. Door, mailbox keys, and security keys must be returned to the manager at the time resident vacates. If not, the tenant will be charged the cost of changing the locks and replacing the keys. 13. Exterior antennas of any kind are prohibited except as allowed by law. 14. Any alteration that will affect the apartment community's outward appearance, such as installing drapes, must be approved in advance by the manager in writing. No foil, sign, advertisements or similar display shall be affixed to any door, window or exterior wall so as to be visible from the outside of the building. 15. Not to allow the posting of signs, notices or advertisements on the premises except on the bulletin board. 16. Not to violate any laws, ordinances or other legal provisions ofFederal, State, County or Local Community, and not to conduct a business or any type of "Sales" on the property. 17. Tenants are responsible for the proper control of their guests and to ensure respect for the neighbors' right to privacy. 18. No wading pools will be placed on lawns or any other landscaped areas. B. Parking & Parldng Areas. 1. To register with the office the current vehicle description and license number of all vehicles parked on the complex and provide proof of insurance. Uninsured vehicles may not park on premises. , 2. No repairs or fluid changes may be performed on vehicles anywhere on the premises. 3. The parking of house trailers, camper shells, motor homes, boats, utility trailers or similar type vehicles or any vehicle used for storage is prohibited. 4. No vehicle may be parked on the premises that is longer than 18 feet or wider than 6 feet or higher than 6 feet without prior written approval of the manager. 5. Car washing is not permitted on the premises. 6. Inoperative vehicles and vehicles without a current legal license plate or uninsured vehicles are not allowed in parking areas. Tenant agrees that such vehicles will be towed away at tenant's expense after placing notification on vehicle three (3) days in advance, (72 hours), including all weekends and holidays. 7. Do not park in "no parking" areas. These areas must remain clear at all times to permit access by emergency vehicles and service vehicles. Vehicles parked in these areas will be towed away immediately at the owners expense without notice! 8. Always park between striped lanes only. No parking in any other areas. 9. No unit will have more than the approved number of vehicles on the project at anytime without the prior written approval of the manager. The approved number for this project is 10. No gas -operated vehicles or machines will be stored inside the unit or on patios, breezeways or balconies at any time. 11. Vehicles causing damage to the parking areas from oil or other leaks must be removed. Tenant agrees that such vehicles may be towed away at tenant's expense after 72-hours notice, including weekends and holidays. C. Maintenance and Inspection Maintenance of the apartment units and cleanliness of the adjoining grounds is a joint responsibility of the tenant and manager. Both are obligated to take care of and to prevent damage to the apartment, the apartment building, and the adjoining grounds, shrubbery and trees. 2. Should you wish to make ainntenance request you may either come into the office during regular business hours of call in such a request by phone. If you agree to allow Management to enter your premises at the time of the request, a service technician will respond as soon as is reasonably possible, usually within 24 hours. If you do not agree upon a date or time during which Management may enter your premises, Management will post a 24 hour notice of intent to enter the premises for the purposes of repair any reported defect. The federal regulations which govern your tenancy require that Management inspect your unit on an annual basis. Management will give you reasonable advanced written notice ofany such inspection, but in no event shall the notice be less than 24 hours. 4. Tenants are responsible for the minor, routine maintenance, servicing, and cleanliness of their apartment as would be expected of a prudent homeowner. Maintenance and repair beyond the capability of the tenant must be reported to the manager. Requests for maintenance must be made by phone or in person to the office during normal office hours. No maintenance orders can be taken except through the office. The manager and/or agency will make periodic inspections of each unit upon giving you a 24-hour prior written notice. 5. Fine nail picture hangers may be used (not to exceed 3/4" long). Large nails or screws are not permitted. 6. Window covers: Tenants are responsible for damage beyond normal wear and tear to window coverings. Water stains are the responsibility of the tenant, so please close windows when it is raining. Tenants may install their own drapes or other window covering only with the prior written consent of the manager. 7. Replacement of interior light bulbs is the tenant's responsibility. S. Place all trash in dumpsters. Flatten or tear apart all boxes and cartons before placing in dumpsters. Garbage not suitable for the garbage disposers should be thoroughly wrapped and placed inside dumpsters. 9. The control of insects and rodents is a joint responsibility of the tenant and manager. Insects and rodents must have food and water to exist and multiply. Good housekeeping practices and cleanliness will eliminate the source of food and water thus reducing the pest population. The tenant is responsible to take preventative measures such as periodic placement of roach tablets, and spraying in appropriate places. If this fails, assistance should be obtained from the manager. D. Mail Fumish a change of address card to the Post Office. 2. Advise all your correspondents to include your apartment number in the address. 3. Notify manager of all prolonged absences. All mail must be held for you by the post office. Manager cannot accept or hold your mail or any other deliveries. Any such delivery will be rejected. E. Quiet Enjoyment No tenant will make any disturbing noises upon the premises nor permit anything to be done by such persons that will interfere with the rights, of other tenants. V. Reasonable Accommodations The Owner and Management proudly comply with all Fair Housing and ADA requirements. Accordingly, should any Tenant or member of Tenant's household wish to request a reasonable accommodation, simply notify management of your request. Management will consider each and every request for a reasonable accommodation and notify you within a reasonable time frame of their decision. If according to the applicable federal or state law, more information is needed, management will notify you accordingly. VI. Waiver. Failure of the management or owner to insist on the strict performance of the requirements in the rental agreement or the rules and regulations or any of them will not constitute a waiver or relinquishment of the mangers or owners rights thereafter to enforce any such agreement or rule, but the same shall continue in full force and effect, In accordance with the Rental Agreement, these House Rules now become a part of that Rental Agreement. IN WITNESS WHEREOF, the parties have executed this agreement in duplicate on the date set forth below at , California TENANT TENANT I0041►11 DATE DATE �� MANAGEMENT/OWNER DATE \WORD\RulesReg.all 12/08/05 MANAGEMENT PLAN COVER LETTER FOR WASHINGTON STREET APARTMENTS Please note that proposed Management Plan is a USDA Rural Development pre - approved document for Hyder & Company managed projects. The term "Agency" noted throughout the Management Plan is defined as USDA Rural Development. MANAGEMENT PLAN FOR WASHINGTON STREET APARTMENTS The Role and Responsibility of the Owner and the Relationship and Delegations of Authority to the Managing Agent. The Owner has entered into a Management Agreement with Hyder & Company, hereinafter referred to as Agent or Managing Agent. A copy of the Management Agreement is included in this Management Plan. a. There is no legal or corporate relationship between the Owner and the Agent with the exception of the Management Agreement. There is no identity of personnel, proximity or sharing of offices, or any other identity of interest. There is no relationship that would create a conflict of interest. b. The Site Manager will supervise the activities of the administrative and maintenance staff on the, project. The Site Manager will be directly responsible to the Managing Agent who will set forth the responsibilities of day-to-day operations. The Managing Agent will be directly responsible to the Owner. The Agent will make all decisions regarding the day-to-day operations of the project without consulting the Owner or in the event of extreme emergency, make decisions without consulting the Owner. The Agent will notify the Owner as soon as possible after any emergency decisions are implemented. C. The Agent will consult the Owner regarding all policy matters or those which the Agent is not authorized to handle under the terns of the Management Agreement, and on all other matters which are of significance to the project. The Agent will meet with the Owner at regular intervals established by the Owner to review all project business and to update the Management Plan as directed by the Agency. d. The Owner will name an authorized contact person who will have total authority to act on behalf of the Owner and make all necessary decisions on Owner's behalf. The Owner will notify the Agent in writing of the name of the contact person prior to the inception of the Management Agreement, and thereafter when the contact person is changed. Agent will deal directly and exclusively with the authorized contact person. e. The Management Agreement identifies decisions and requirements of the Owner including but not limited to disbursement amounts requiring Owner approval and documents required from the Owner. f. The responsibilities of the Owner and the Agent are clearly set forth in the Management Agreement. There should be no overlapping of responsibilities or duties. All basic responsibilities and duties are clearly covered and assigned in the Management Agreement and Agency's rules and regulations. g. The pro-rata division of singularly -incurred operating expenses that are common to the parties and purchased by the Managing Agent are: 1.) The fidelity insurance, which is allocated to each project and the corporate office by number of employees at each location. 2.) The professional liability insurance, which is allocated to each project and the corporate office by number of employees at each location. 2. Personnel Policy and Staffing Arrangements. a. All employees will be employees of the Agent, not the Owner. All hiring will be in strict conformance with equal employment opportunity requirements provided by the Department of Fair Employment and Housing with regard for race, color, religion, sex, handicap, familial status, or national origin. b. The staffing plan for this property will include a manager and office staff as necessaryto operate the project together with maintenance staff as required and as approved in the budget. Employees are never "on call" outside ofnormal duty hours, unless specifically required to cover emergency calls on a particular project. Job Descriptions: Site Managers: The Site Manager is in sole charge of the housing complex and as such must manage and direct operations of the housing project in accordance with the policies and procedures prescribed by the Owner, the governing agency and the Managing Agent. In order to qualify for this position, an employee must be competent in typing, spelling, telephone techniques and basic mathematics. In some instances, the employee will be required to be bilingual in English and Spanish or whatever language is predominate in a given community. The following responsibilities of the Site Manager are listed below: Make certain that all outside contractors or sub -contractors provide current certificates of liability and workers compensation insurance before any work can be done on the property. Prepare payment requests and accounts payable. Purchase approved supplies and arrange for approved outside services, such as trash collection, utility service, mail service, telephone installation, exterminators, etc., as required. Become proficient in the operation of the project computer and software. Computer literacy is preferred. Assist prospective tenants in preparing applications for initial eligibility and Recertification, rent apartments, complete lease agreement form and conduct entry interviews with new tenants, outlining conditions and terms for occupancy. Review housing applications, select tenants, and assign dwelling units. Is responsible to collect rents and issue receipts to tenants. Implement the Management Plan. Be totally familiar with company policy and the Manager's Handbook provided by employer. Establish good tenant relation policies and adhere to housing assignment procedures. Promote harmonious relationships among tenants, housing personnel, and persons of neighboring communities. Resolve complaints of tenants. Maintain good working relations with the local police and fire departments, governing officials, and other community resources that are programmed and designed to assist the tenants. Must attend educational courses as directed and pass Agency -required or Employer tests. Must become fully competent in agency rules and procedures. Must be able and willing to follow all procedures in Manager's Handbook and Agency Instructions. Assistant Site Manager: The Site Manager and Assistant Site Managers are in charge of the housing complex and as such must manage and direct operations of the housing project in accordance with the policies and procedures prescribed by the Owner, the governing agency and Management Agent. hi order to qualify for this position an employee must be competent in typing, spelling, telephone techniques and basic mathematics. In some instances, the employee will be required to be bilingual in English and Spanish. The Assistant Site Manager will follow the instructions of the Site Manager in all of the following areas: Make certain that all outside contractors or sub -contractors provide certificates that provide proof of liability and workers compensation insurance before any work can be done on the property. Prepare payment requests and accounts payable, receive and account for funds. Purchase approved supplies and arrange for approved outside services, such as trash collection, utility service, mail service, telephone installation, exterminators, etc., as required. Become proficient in the operation of the project computer and software. Computer literacy is preferred. Assist prospective tenants in preparing applications for initial eligibility and recertification. Rent apartments. Complete lease agreement form and conduct entry interviews with new tenants, outlining conditions and terms for occupancy. Review housing applications, select tenants, and assign dwelling units. Collect rent and issue receipts. Implement the Management Plan and the Affirmative Fair Housing Marketing Plan. Be totally familiar with company policy and the Manager's Handbook provided by employer. Establish good tenant relation policies and adhere to housing assignment procedures. The Assistant Manager is a key part of promoting harmonious relationships among tenants, housing personnel, and persons of neighboring communities. Resolving complaints of tenants. Maintaining good working relations with the local police and fire departments, governing officials, and other community resources and social programs designed to assist the tenants and enhance the quality of life at the complex. Must attend educational courses as directed and pass Agency -required and Employer tests. Must become fully competent in agency rules and procedures. Must be able and willing to follow all procedures in Managers Handbook and Agency Instructions. Mandatory Prerequisites: Must possess high moral character, sound fiscal integrity, and qualify for fidelity bond. The position requires a great deal of personal contact with other people. The assistant manager must be able to handle problems with discretion and fairness. Their independent judgment can determine the success or failure of the project. Must be able to speak, read, write and understand English at least to the level of understanding The Injury and Illness Prevention Plan, and the ability to read all safety and warning labels and follow written or verbal instructions. Must have the specific ability to follow technical instructions such as installing hot water tanks, furnaces, disposers, stoves, air conditioners and other items found at an apartment complex. Must be able to report in English to supervisory staff and authorities any emergency conditions that may exist from time to time. Must additionally be able to understand and comply with both written and verbal instructions given in English regarding office operations, computer operations and technical Agency Requirements. Office Clerk: In order to qualify for this position an employee must be competent in typing, spelling, telephone techniques and basic mathematics. In some instances, the employee will be required to be bilingual in English and Spanish. The employee will assist the Site Manager in qualifying applicants and leasing units in compliance with the appropriate agency requirements. Additionally, the employee must be competent in filing and all other office procedures. The clerk will be trained in computer operations for the specific program of the apartment complex. The employee must have good "people skills" in order to deal with the public in an efficient and courteous manner. The clerk will represent the "front line" in meeting the public and in dealing with tenant complaints. This position requires a person with a professional and friendly disposition who can work with people on a regular daily basis, follow instructions, and learn reasonably quickly. All clerical staff members must be trained in the program requirements and pass all required tests so as to be certified in the appropriate subsidy program. Employee must be able to speak, read, write and understand English in order to read and understand the Injury and Illness Prevention Plan and to converse with others in case of emergencies. Must also be able to follow written and spoken instructions regarding office and computer procedures and the handbook instructions. This position does not include showing apartments, inspecting apartments, maintenance work or any other activities outside the office. Maintenance Director: Assist in the development of the maintenance plan for the overall efficient operation of the project, perform all necessary work, inspect and evaluate physical condition of buildings and grounds and schedule and provide continuing repair and maintenance work as prescribed below. Plan and perform maintenance work. Direct and supervise work of maintenance personnel. Prepare and post daily work schedule, including working hours for staff. Conduct follow-up inspections to ascertain that all work is performed. Plan all maintenance work with Site Manager prior to implementation. Regional Supervisor must approve all purchases prior to any purchase of supplies, equipment or services. Maintain on a daily basis the time records of all maintenance employees so as to conform to the requirements of the Federal and State Governments. Make certain that all maintenance employees update their time cards daily. Assist in planning and implementation of apreventive maintenance program. Take prompt corrective action on deficiencies. Respond to written requests from tenants reporting a need for repairs (work orders). Coordinate activities of all workers to assure timely accomplishment of repairs on buildings, electrical, plumbing, heating, ventilating, air-conditioning, watering systems, and mechanical equipment. Maintain and clean public areas such as halls and laundry rooms. Develop a plan for tenant assistance and support in keeping the project clean and safe in accordance with prescribed standards. Responsible for safeguarding, accounting and inventorying of supplies, tools, equipment and all property owned by the project. Obtain labor and material costs and completion estimates for major repairs, renovations or replacement of equipment. Be responsible for the completion of any such work once approved by the Regional Supervisor. Make certain that no purchases of supplies, equipment or services are made by anyone without the prior approval of the Site Manager and Regional Supervisor. Plan, schedule and perform all interior and exterior janitorial work, repair and maintenance at no additional labor cost to the project, including but not limited to: Repairing, plumbing and electrical systems, painting and cleaning apartments, repairing doors, locks, screens, windows, and cabinets as well as tools and equipment belonging to the project, policing and cleaning of all common areas and laundry rooms, maintaining plantings and irrigation system including all mowing, trimming, edging, pruning, cultivating, aerating, fertilizing, and watering if applicable. Also, maintaining parking lots and other common areas to include sweeping, striping, patching, and policing, as well as playground equipment maintenance and repair. All maintenance personnel must be of strong and sound body and mind, and possess the following: 1. The ability to work on a continuous basis and be prompt. 2. Be courteous to the tenants, guests, and other employees. 3. Dress according to the dress code and standards established by Managing Agent. 4. Always work on behalf of your employer, follow instructions, and do nothing to harm your employer. S. Always comply with instructions given by manager and with company policy. Other Requirements: This position requires excellent physical and mental health and considerable strength. There is a great deal of lifting, bending, stooping, twisting, reaching, grasping, manual dexterity with both hands and arms, climbing stairs, ladders, and walls and moving heavy objects. On a dailybasis, it may be necessary to move heavy objects such as furniture, major appliances or other items weighing over 50 pounds. The employee must be knowledgeable in all safety precautions to be taken when doing this heavy work, and be capable of handling heavy loads within the requirements of the Injury & Illness Prevention Plan. Any violation of the Company Safety Policies is cause for immediate termination. Must be able to speak, read, write and understand English at least to the level of understanding the Injury and Illness Prevention Plan, and the ability to read all safety and warning labels and follow written or verbal instructions. Must have the specific ability to follow technical instructions such as installing hot water tanks, furnaces, disposers, stoves, air conditioners and other items found at an apartment complex. Must be able to report in English to supervisory staff and authorities any emergency conditions that may exist from time to time. Maintenance III Employees: All maintenance personnel must be of strong and sound body and mind, and possess the following: I . Adequate strength to perform continuous manual labor during an eight (8) hour shift. 2. The ability to lift a heavy object exceeding 50 pounds on a regular basis, using legs and arms and place it overhead; twist, balance, reach, bend, stretch, grasp, walk rapidly and possess manual dexterity with both hands. Climb stairs, ladders, trees and over walls. Perform all janitorial and maintenance functions as directed by their supervisor. 3. The ability to work on a continuous basis and be prompt. 4. Be courteous to the tenants, guests, and other employees. 5. Dress according to the dress code and standards established by Managing Agent. 6. Always work on behalf of your employer, follow instructions, and do nothing to harm your employer. 7. Always comply with instructions and company policy. Other Requirements: The maintenance work requires excellent physical and mental health and considerable strength. There is a great deal of lifting, bending, stooping twisting, reaching, grasping, manual dexterity with both hands and arms, climbing stairs, ladders, and walls and moving heavy objects. On a daily basis, it maybe necessary to move heavy objects such as furniture, appliances or other items weighing over 50 pounds, such as major appliances. The employee must be knowledgeable in all safety precautions to be taken when doing this heavy work, and be capable of handling heavy loads within the requirements of the Injury & Illness Prevention Plan. Any violation of the Company Policies is cause for immediate termination. Must be able to speak, read, write and understand English at least to the level of understanding the Injury and Illness Prevention Plan, and the ability to read all safety and warning labels and follow written or verbal instructions. Must have the specific ability to follow technical instructions such as installing hot water tanks, furnaces, disposers, stoves, air conditioners and other items found at an apartment complex. Must be able to report in English to supervisory staff and authorities any emergency conditions that may exist from time to time. All Employees: Employees will conform to all Agency requirements as well as the policies established by the Owner, 11 which become part of the Agent's policies. All employees will be paid by the Agent including state and federal payroll taxes and unemployment taxes, FICA taxes, and all other costs of employment including workers compensation insurance, employment practices liability insurance, employee medical insurance, overtime pay, bond and any other compensation or related costs. Agent will be reimbursed for all costs made to or on behalf of all employees including, but not limited to, the aforementioned list. Agent will advise Owner of all employee or former employee claims for compensation that Agent believes are unwarranted. Owner will instruct Agent as to Owner's desire in the disposition of the claim (payment, negotiation, hearing, or litigation). Agent will proceed according to Owner's directive. Any compensation or award to any employee or former employee including all related costs, legal fees and other fees, will be paid to Agent from the project operating account upon final disposition of the claim. C. The Site Manager will be directly accountable to the Managing Agent. All other on -site personnel will be directly accountable to the Site Manager. d. All employees (and contractors) will be oriented to comply with the program requirements. All managers are fully trained in the Agency rules and regulations. The Managing Agent is fully trained and knowledgeable in all aspects of assisted housing management and regulations. The Agent trains all management employees in the certification process and all management functions. The Agent sends staff personnel to training programs on HOME, RDS, HCD, CaIHFA, Fair Housing, Section 504, and L.I.H.T.C., as appropriate. 3. PLANS & PROCEDURES FOR MARKETING UNITS; ACHIEVING AND MAINTAINING FULL OCCUPANCY AND MEETING HUD FORM 935.2 AFFIRMATIVE FAIR HOUSING MARKETING PLAN" REQUIREMENTS. a. The Agent is in charge of marketing the property. We will make certain that all groups, both minority and nonaninority, handicapped persons and those least likely to apply are given the opportunity to have the knowledge that our subsidized housing project exists and that they will notbe discriminated against on any basis. b. The Site Manager will place new applicants on the waiting list after complying with the procedures established. The waiting list will conform to the requirements of the Agency. The "Fair Housing" poster, "Justice for All" poster, will be displayed on site. A Project Information Package will be prepared. This will contain the following: A description of the project location. The size and number of dwelling units. A summary of eligibility requirements. Application Form. C. Should it be necessary, marketing will be done by local radio and newspaper advertising in both English and in non-English media where there is a concentration of non-English speaking residents. Any advertising, electronic or printed, will identify the project with the international symbol of handicapped accessibility and contain the Fair Housing Logo or Equal Opportunity Slogan. Per USDA requirements, the project will be advertised at least once per year. Marketing material will be sent to the appropriate social services agencies listed on the AFHMP. Listed below is a sample local newspaper ad for your approval. Now Accepting Applications WASHINGTON STREET APARTMENTS 1 bdrm apts and also apts with special design features for individuals with a disability. Must be 62 years of age or older, or disabled, regardless of age. Inquire as to the availability of subsidy. Call (760) 345-5573 , Mon -Fri, 9am - 5pm or TDD #1-800-735-2929. 1 bdrm apt and also apt with special design features for individuals with a disability. Must be 62 years of age or older, or disabled, regardless of age. Inquire as to the availability of subsidy. d. To ensure effective communications with applicants, residents and members of the public that have sight or hearing impairments, each project will contact the California Relay Service at (800) 735-2929 when necessary. The Managing Agent will provide sign language interpreters for the hearing impaired if requested and if available within the community. Other reasonable accommodations will be available for visually impaired. Assistance will be given for completing the application when necessary. e. The office and all community areas are equipped with lever handle door knobs, handicap accessibility ramps for access to the office, laundry room, common areas and mail boxes. Assigned handicap reserved parking space as near to that person's dwelling unit as possible will be provided. In addition, management is willing to make additional reasonable accommodations once the applicant is approved. Every effort by management will be made to accomplish applicants' needs by modifying faucets, kitchenfbath fixtures, doorknobs, and any other changes within economic reality. f. Reasonable accommodations must be requested in writing. Appropriate modifications, if not already installed, and within reason, will be made if at all possible if it does not impose a financial or administrative overburden. Structural changes would require consultation with the Owner and architect; therefore, each case would be reviewed based on its own merit and the economic hardship to the property. g. The Agent will use the attached waiting list format. 11 It. The attached Apartment Inspection Report will be used for all move-in's and move-out's. Prior to occupancy, each approved applicant will inspect his/her assigned unit with the manager who will be required to fill out and sign the Apartment Inspection Report. This is a certification on the part of the applicant that the premises is in good and clean condition prior to their occupancy. Each tenant will receive a copy of the Apartment Inspection Report and another copy will be kept in the tenant's file at the project office. Applicants are initially notified in writing as to their status detailing selection, rejection, or waiting list placement. Once selected, and at the time each applicant executes their lease, they will be given a thorough orientation with regard to the terms and conditions of the lease, toles and regulations, all addendums, and also will receive instructions on how to operate various appliances found in each unit during their walk-through inspection of the premises. j. It is the primary responsibility of the Site Manager and Regional Supervisor to select tenants using the policies and guidelines established by the Agent and the Owner and approved by the Agency. However, if there is a question regarding which applicant should be selected they will request assistance from the Managing Agent. All applicants are notified in writing as to their status on the waiting list. k. All tenants are selected in accordance with this Management Plan and the attached Resident Selection Procedure. In projects where there are tax credit designated units, tax credit eligible households will be selected for units assigned the tax credits. 4. PROCEDURES FOR DETERMINING TENANT ELIGIBILITY AND FOR CERTIFYING AND RECERTIFYING INCOMES. a. All interested persons may obtain and submit an application for housing. All personnel in the project office are required to be knowledgeable and have on hand a copy of the agency's management handbook which encompasses the occupancy and continuing occupancy requirements of the Agency. Completed applications are processed in chronological order of the date the fully completed application was received based on eligibility within each income group and unit size category. Additionally, applications will be logged by date and time when received, and placed on the waiting list or processed for a vacancy. The attached Resident Selection Procedure details the process. No application fees are anticipated. b. The Site Manager will be thoroughly trained by the Managing Agent and/or Agency in program requirements and State Law including but not limited to, the following: interviews, tenant selection, certification and recertification requirements and leases. Each month the project will be audited by the Managing Agent for compliance to make certain that all requirements are closely adhered to regarding tenant qualifications and certifications. In addition, Site Managers will attend Agency - sponsored training courses. 5. LEASING & OCCUPANCY POLICIES: a. A description of occupancy standards for the project is described in the Resident Selection Procedure. Refer to attached selection criteria. b. Prospective tenants will complete an application. This is designed to give the Site Manager basic data about the tenant with which the Site Manager can determine whether there are factors of income, family size, or others which would effectively eliminate the applicant from further consideration. A credit report and criminal background check will be obtained for each applicant after it is determined that the family qualifies with regard to the Agency regulations. Income verification authorization forms will be signed by the prospective tenant. It will be explained at that time that their credit, criminal background will be thoroughly investigated. The Site Manager will request that the prospective tenant give information in advance of any unusual situation that the manager is likely to encounter in investigating the tenant. In this way prospective tenants have an opportunity to explain in advance, any unresolved credit problems, criminal records, unfavorable reports from former landlords, employment problems and other factors, which might otherwise disqualify them. As confirniation from the application is completed, the tenant's file is assembled. The Site Manager will evaluate each tenant in light of the information in his or her file as well as the program requirements and objectives established for the project by the Owner. The Site Manager and Agent will determine which tenants are to be accepted based on program requirements, Owner's objectives and criteria identified in the Resident Selection Procedures. Having determined to accept a prospective tenant, the Site Manager will then assign that tenant to an apartment matching as closely as possible the tenants desired accommodations. At this time, the tenant certification will be completed in its final form, approved by upper management and then executed by the tenant. The policies for the apartment project are then reviewed in detail, including their rights and responsibilities. The tenant is then advised of the apartment in which he has been placed, and the Site Manager goes with the tenant to the specific apartment selected and they complete the unit inspection referred to above. All the supporting documentation and data are placed in that particular tenant's file. C. The Site Manager is knowledgeable in all areas regarding Agency rules and regulations and personally trained in the certification process and in all management functions. In addition, Site Managers are aware of State Law and Low Income Housing Tax Credit regulations. d. In areas where there is a concentration of Spanish speaking individuals, rules and regulations, addendums, etc. for the project are written both in English and Spanish. The tenant will have the opportunity to understand the Lease Agreement in their language through an interpreter. 6. RENT OCCUPANCY CHARGE AND OCCUPANCY SURCHARGE COLLECTION POLICIES AND PROCEDURES. a. Rent payments are due on the first day of each month and are delinquent after the first of each month. Any tenant who has not paid their rent by the end of 10 days (USDA Regulations) will be assessed a late charge. Three-day notices are delivered on the 11 m day of each month to tenants who have not paid by the 10's day of each month. All rent payments are to be made to the Site Manager at the office during normal office hours, which are posted in the office. If this is impossible, the tenant may pay their rent by the U. S. Mail. Any tenant who has not paid their rent before the end of the tenth day of the month will receive a late charge assessment. Said late charge will be levied against the tenant, however, eviction proceedings will not be instituted against the tenant for nonpayment of late charges. The Site Manager is responsible for the collection of all rents and the issuance of all rent receipts. As stated above, rents will be paid at the office on the complex or by U. S. Mail. Cash payment is 10 unacceptable for security reasons. All payments are made by check, cashier's check or money order. Rent payments, as they are received, are entered electronically into the accounting system through the onsite computer terminal. If necessary, rent payments are entered into the accounting system by way of a rent receipt which carbons through to the tenant's ledger card which in turn carbons through to the cash receipts journal. The rent receipt that the tenant receives is stamped with the name of the project or printed on the computerized receipt, the amount of money receipted for, and is signed by the authorized person receiving the funds. We encourage all tenants to keep their receipts for their own protection. All funds received are deposited in a separate account depending on the nature of the deposit. The project maintains an operating account as well as a separate security deposit account. b. The required security deposit will be in an amount equal to the approved basic rent for the size unit. Upon termination of the lease, the deposit is to be refunded to the tenant within 21 days, except as may be used by the Owner toward reimbursement of the cost of repairing any damage to the property (normal wear and tear excepted) caused by the tenant, his family or guests and any rent or other charges owed as per state law. The Owner shall provide the tenant with an itemized statement of any security deposit retention. For HUD projects only, interest earned on the Security Deposit account will accrue to the account and then be transferred as necessary to the Project Operating Account. PROCEDURES FOR REQUESTING AND IMPLEMENTING A RENT OR OCCUPANCY CHARGE. a. Rent increases shall be anticipated and implemented as the needs of the Project dictate, in conjunction with the preparation of the Annual Operating Budget. The Project's senior management representative, in consultation with the Regional Supervisor and Site Manager, shall prepare the Annual Operating Budget for approval by the Owner. Rent increases shall be implemented in conformance with the requirements of the Agency regulations, and in conformance with State and Federal low-income housing programs relating to Tax Credits. Rent increases for units occupied by holders of Section 8 certificates shall be coordinated with the local Housing Authority. Rent increase requests normally will be processed 60-90 days prior to the end of the borrower's fiscal year. It is anticipated that a rent increase would not be necessary more than once a year. Once it has been determined by an Owner that a rental increase is necessary, the Managing Agent will adhere to the Agency's instructions and conform to the requirements. The Managing Agent will develop the information necessary so that a request can be made to the Agency that gives: Facts demonstrating the need and justification for a rent increase. 2. A new operating budget for borrower's fiscal year showing: a) current approved budget b) actual income and expenses to date c) proposed new budget with new basic rents Current tenant certifications must be on file. The Agent will provide utility allowance survey data each time they are revised. Tenants will be notified of a rent/utility allowance increase with the use of Agency's rent increase exhibit at the time the proposed rent increase is being forwarded to the Agency. This form will be posted in a conspicuous place and will, in addition, be delivered to all effected tenants. Tenants will be advised that during the waiting period in which the notice will be posted, they have the 11 opportunity to inspect, copy, and make written comments and objections to all materials justifying the proposed rental increase. Additionally, in accordance with California State Law, tenants will be advised in writing in advance of any rental increase. b. The Managing Agent will be responsible for all processing of rental increases and/or changes. C. If expenses increase during the budget year, a rent increase may be requested at that time. Normal rent increases will be submitted 90 days prior to implementation. Prior to requesting a rent increase, the Managing Agent will carefully review the existing comparable rents and potential effect on existing residents and applicants. PLANS FOR CARRYING OUT AN EFFECTIVE MAINTENANCE AND REPAIR PROGRAM. a. Preventative maintenance will be an important part of the maintenance program. All appliances, water heaters. AC/heaters, weatherstripping, windows, fans, and smoke detectors are inspected on a regular basis. Each unit is inspected at least once a year to ascertain the condition of all items. This is a part of the normal preventative maintenance program. In addition, all appliances and mechanical equipment will be inspected prior to initial occupancy and prior to each tenant occupying the unit thereafter. b. Copies of the "as -built" plans will be provided by the Owner and maintained on site. In the case of any future work, it will be the responsibility of the contractor or subcontractor to provide the Owners and Agent with "as -built" updated plans and specifications upon the completion of their work. The manager will notify the Owner of all construction defects as soon as possible. C. General Maintenance Procedures: (1) All appliances and mechanical equipment are inspected on a regular basis. Each unit is inspected at least once a year to ascertain the condition of all of the appliances. This is a part of the normal preventive maintenance program. In addition, all appliances and mechanical equipment will be inspected prior to initial occupancy and prior to each new tenant occupying the unit thereafter. Should a warranty item or plumbing/electrical problern be involved, a local professional or the building contractor will be contacted. Anyregularly scheduled major improvements, such as repaving, will be coordinated with the Managing Agent and Owner for approval prior to commencement of work. (2) City, State, and Federal regulations will be complied with as to the installation and maintenance of smoke detectors and fire extinguishers. Smoke detectors are checked at least twice a year during maintenance inspections. The Regional Supervisor also inspects smoke detectors of vacant units during their monthly inspection. Fire extinguishers are checked during monthly inspection visits to ensure service dates are current and have not lapsed. Outside lighting will be provided as required for proper security on the project. Outside lighting is checked on a regular basis to ensure proper light coverage and bulbs are operational. (3) When a tenant gives notice to vacate the unit and immediately after a move -out, the Site Manager is required to inspect each unit including the appliances of that unit to ascertain whether or not there has been any damage or any maintenance is required. Any necessary 12 work is entered to a work order, which then is performed by the maintenance staff. All work must be completed prior to re -renting the unit. (4) Each unit is inspected at least once a year to determine the need for any maintenance work. If the unit is in need of repainting, it is then put on the paint schedule and completed by our staff or an outside vendor. Repainting of a unit will include doors and trim. Window coverings are inspected each time a unit is vacated. If the window coverings are worn, they are replaced at that time. For long-term tenants, the window coverings are inspected at the time of the semi-annual inspection. After five years, the unit would become eligible for new window coverings. The exterior of the project is monitored regularly to determine the need for repainting. The repainting of exterior trim, fences, and doors will begin as needed. (5) All major repairs that are beyond the capabilities of our own maintenance staff will be handled on a bid basis notwithstanding emergencies. We will solicit bids from at least three qualified subcontractors on all major repairs and replacements, if possible. to be assured the best possible quality and price. In case of emergency, the Site Manager will use good judgement on how to best handle the situation. In any emergency situation, the Site Manager will contact the Managing Agent as soon as possible with a full report. The grounds upkeep and maintenance will be carried out by a landscape subcontractor in most cases. When it is more cost effective, the on -site staff will perform the grounds upkeep and maintenance. In most instances, outside contract labor or contractors may be used for exterior painting, parking lot sweeping, major landscape renovation, exterminating, and plumbing. (6), (7) The on -site staff will also be responsible for the cleanliness of the common areas of the complex. The first item on the agenda on the daily maintenance schedule will be policing the grounds and common areas. This will be accomplished by staff members. The on -site staff will also be responsible for maintaining indoor common areas such as the laundries and recreation room. d. The tenants will be instructed to make reports to the office for any maintenance or repairs needed. When a tenant comes to the office or telephones with a problem, a work order is filled out by the office staff and entered into the maintenance schedule. Upon completion of the work, the tenant is notified that the work is completed, given a copy of the completed work order and a copy is entered into the permanent maintenance log. An additional copy of the completed work order is also placed in the tenant's file. Except when required parts are not readily available, work orders should be completed within 72 hours and emergencies within 24 hours. C. All equipment and supplies are purchased only after shopping for the best price. A minimum of three bids will be required, if possible, for any major equipment purchase. Neither the Owner nor the Agent have any identity of interest with any supplier of products or services on the project. Our projects do not have a purchase order system. Goods and services are ordered by the Site Manager and/or the Regional Supervisor. Invoices are verified by the Site Manager to ensure goods were received, and services were accomplished and were acceptable. Site Manager prepares a payment request and forwards to the corporate office along with the invoice for Regional Supervisor approval and payment. 13 £ Reserve for replacement requests are made with appropriate supporting documentation, bids and justifications, for approval by Managing Agent and Owner where necessary. g. Non Applicable PLANS AND PROCEDURES FOR PROVIDING SUPPLEMENTAL SERVICES a. Laundry and vending machines are provided from vendors. All vending services and equipment are owned by the vendor. Cash collected is paid in the form of checks to the appropriate projects and are deposited into the general operating account of those projects. b. All equipment will be owned by vendor. C. Vendor forwards a monthly check to be deposited into the operating account of the project. No cash is accepted. d. Vendor will be responsible for all maintenance, servicing, and stocking any machines. e. Laundry contracts are normally initiated for a five-year term and renewed every five (5) years at which time the terms and conditions are renegotiated. A new contract is written and signed by both parties. This is a Managing Agent standard contract. Vending machine contracts are negotiated in the same fashion as laundry contracts. 10. PLANS FOR ACCOUNTING RECORD KEEPING AND MEETING RURAL DEVELOPMENT REPORTING REQUIREMENTS. a. All project records will be developed by the Agent and maintained in accordance with Agency regulations and policies governing fiscal operations, accounting and financial reports for multifamily housing projects, and will comply with generally -accepted accounting procedures. Required reports will be prepared and submitted from the Managing Agent to the Owner using a modified cash reporting system. The Agent will be responsible for the preparation and submission of the monthly financial statements. The Owner will contract for the annual audit. The Agent will cooperate with and make all records available to the CPA for the preparation of the audit. The accounting records will be set up and maintained by the Agent in the Agenfs office. The records will be kept on a modified cash basis and will comply with generally -accepted accounting practices. b. Project funds will not be co -mingled. C. The project chart of accounts and bank accounts are either directly or indirectly (through our mapping strategy) compatible with Form RD 3560-7 "Multiple Family Housing Project Budget". d. The accounting department will be responsible for the preparation and submission of the quarterly and annual reports to the lender, if necessary. e. An independent CPA not associated with the project will provide the annual audit or review. Individual folders will be kept on the project site for all tenants and will contain completed 14 applications, verification of income and certification, lease agreement, credit and criminal reports, security deposit data, rent receipts, work orders, and correspondence. All folders for tenants who have vacated an apartment will be kept a minimum of three (3) years and/or a maximum of seven (7) years. Originals of all initial tenant certifications are maintained at the Agent's office in accordance with Tax Credit guidelines. g. Tenant records and copies of initial tenant certifications will be retained at the Site Manager's office and will be available during normal business hours for review. Accounting records will be maintained at the Agent's office and will be available during normal working hours for review. All records are maintained for a minimum of seven years. 11. ENERGY CONSERVATION MEASURES. a. Each tenant will be in direct control over their consumption of gas and electricity. The manager will carry out orientation programs to educate the tenants in regard to the conservation procedures. Each tenant will be advised how to best maintain their equipment to the best of their ability and to call the office for assistance for those who are unable to maintain the equipment. Items such as filter changes, thermostat settings, and water temperature control will be an integral part of the program. The manager will develop orientation programs that will include energy conservation measures that consider not only the items listed here, but also optimum times of cooking and not cooking, as well as doing laundry and other household chores. This information will be included at the tenant move -in orientation. b. Management will be involved in conservation at all levels. Particular attention will be paid to conservation of energy in all common areas of the project. C. Management will be involved in all energy conservation programs on the complex. All-night lighting systems will be on photoelectric cells to go on at dark and off at daybreak; and all watering systems will be set to not over water to the extent that water consumption is escalated and water runs down the street. Upon a tenant moving out, prior to re -renting the unit, all hot water tanks will be reset to a maximum of 120 degrees. The management will provide filters as necessary to keep the HVAC clean and efficient as well as make service calls on all HV AC that are not operating properly. At the time of the maintenance visit, the maintenance staff is instructed to educate the tenants with regard to conservation of utilities. Additionally, with each visit to a unit the maintenance staff is instructed to inspect the hot water tank for malfunctions. The manager will make available free pamphlets distributed through the utility companies with household hints on conservation when available. 12. PLANS FOR TENANT PARTICIPATION IN RURAL RENTAL HOUSING (RRH) AND TENANT'S RELATIONSHIP WITH MANAGEMENT. a. Every effort will be made to encourage residents to initiate, conduct and participate in neighborhood watch programs, resident councils and/or resident social activities. Managers are likewise, encouraged and prompted to facilitate such activities. b. The Tenant Grievance and Appeals Procedure is posted in the Site Manager's office. The tenant/member will submit all grievances to the manager who will be responsible for initial review of the complaint, discussion with their Regional Supervisor and coordination and delivery of the response. 15 13. a. Non Applicable b. Non Applicable C. Non Applicable d. Non Applicable 14. PLANS FOR CARRYING OUT MANAGEMENT TRAINING PROGRAMS. a. We maintain our own training program. Regional Supervisors will thoroughly train new hires in the areas of Tax Credit regulation, Manager's Handbook, company policies and procedures. All new managers are required to attend and pass Agent -sponsored training courses. b. When a new manager is hired at any complex, the manager trainee is put through our training program which includes all aspects of the particular program under which he or she will be working as well as our management and safety programs. In addition, we conduct periodic safety programs. Agency approved training programs are utilized for training managers in regulations, certification, and continuing education programs. An annual company conference is held to keep Site Managers and Maintenance Directors up to date in their respective areas of expertise. C. Non Applicable d. Non Applicable 15. TERMINATION OF LEASE OR OCCUPANCY AGREEMENTS AND EVICTIONS. a. The lease agreement clearly outlines all provisions and procedures for the Managing Agent to evict a tenant. Within the Managing Agent's organization the Regional Supervisors are responsible for determining and overseeing evictions. b. The Regional Supervisor and Site Manager are knowledgeable in all legal requirements regarding notification of State laws in evictions. Additionally, all personnel are trained in State and Local laws regarding tenant evictions and lease terminations. Included in this training are requirements regarding notification that must be given to a tenant when termination of the lease or eviction is proposed. When violations occur, violation notices are served prior to an actual eviction notice. 16, INSURANCE a. The Managing Agent is knowledgeable and is responsible for fidelity bond coverage. All employees will be covered by the Agent's fidelity bond in the amount of $500,000 per instance. b. The Managing Agent is knowledgeable and is responsible for the continuing knowledge of the Agency's insurance requirements for all phases of insurance regarding the project. At the direction of owner, all insurance policies will be kept at the Agent's office and will be in amounts equal to or greater than the minimum established by the Agency. 17. MANAGEMENT AGREEMENT. A copy of the proposed Management Agreement is attached as a subpart of the Management Plan. it- 18. Not Applicable 19. MANAGEMENT COMPENSATION. The Management Agreement sets forth the responsibilities as well as the compensation and how the compensation is to be paid to the Managing Agent. All management fees will be paid monthly. a. Non Applicable b. Non Applicable 20. ON -SITE MANAGEMENT. a. The Site Manager will perform on -site management duties. b. The Site Manager and staff job descriptions begin on Page 2, Item 2b. C. The Site Manager or a maintenance person must live on site in a rent-free apartment. d. Office hours will be established to meet the needs of the tenants within the limits set by the approved budget. Current hours will be posted on the office door. 17 21. VALIDITY OF THE MANAGEMENT PLAN. This plan has been prepared in accordance with Tax Credit and/or USDA Rural Development requirements as required. I hereby certify this plan addresses all aspects of project management. 6Managing Agent Title V / G IPW�W6(1� Date L9 Owner Title Oe fc," 2 j I/d Zil& 4-- %O/L Date Z/�3/a 9 Rural Development Official T \WORD\Mgmtplan.Washington Street 08l2008 18 Washington Street Apartments Management Plan Attachments 1. Resident Selection Procedure 2. Waiting List Format & Instructions 3. Waiting List Contact Letter 4, Unit Inspection Report 5. Moisture Inspection Report 6. Smoke Detector Test Log ATTACHMENTS 19 pa& (aoa.o( FORM RD 3560-13 (Rev.03-11) FORM APPROVED OMB NO 0575-0189 MULTI -FAMILY PROJECT BORROWER'S/MANAGEMENT AGENT'S MANAGEMENT CERTIFICATION Borrowers of multifamily housing loans are required by 7 C.F.R. §3560.102 0) to submit certain data for review by the Servicing Official for approval of a new management agent. These requirements apply to all multifamily projects. Effective Date (xx-xx-20xx): 07-01-2011 ProjectName: Washington Street Apts. Borrower Case#/Project ID: 04-033-617701420 City/State: La Quinta, CA Acting on behalf of La Quinta Redevelopment Agency , the project borrower (Borrower), and Hyder & Company , the management agent (Agent), make the following certifications and agreements to the United States Department of Agriculture regarding management of the above project. 1. We certify that: a. We will comply with Rural Development requirements and contract obligations, and agree that no payments have been made to the Borrower in return for awarding the management contract to the Agent, and that no such payments will be made in the future. b. We have executed or will execute, within 30 days a management agreement (Agreement) for this project. The Agreement provides that the Agent will manage the project for the term and for the Per Unit Per Month (PUPM) management fee described below. Changes in the management fee will be implemented only in accordance with Rural Development's requirements. (I) Tenn of Agreement (xx-xx-20xx through xx-xx-20xx): 7 / 1 / 2 011- 6 / 3 0 / 2 012 (2) Fees: a) ❑+ PUPM fee as specified in FIB-2-3560, Attachment 3-F, as revised, for the term specified above (applied to revenue producing occupied units only). b) ❑ PUPM fee is below the PUPM fee specified in FIB-2-3560, Attachment 3-17, as revised, for the tens specified above (applied to revenue producing occupied units only) Fee Amount: S c) ❑ Add -On Fees as specified in FIB-2-3560, Check all that apply. Include total add -on fees below. (applied to all revenue producing units regardless of occupancy) ❑ Management of properties with 15 units or less ❑ One project that has buildings located on different noncontiguous parcels of land (i.e. across town or in another town). ❑ Management of properties in a remote location. ❑ Troubled properties with workout plans and new management only. c. We will disburse management fees from project income only after: (1) We have submitted this certification to Rum] Development: - (2) Rural Development has approved the Agent to manage this project d. We understand that no fees may be earned or paid after Rural Development has terminated the Agreement e. If Rural Development notifies me of a management fee above that listed in FIB-2-3560; Attachment 3-F the Agent will within 30 days of the notice either: (1) Reduce the compensation to an amount Rural Development determines to be reasonable and (2) Require the Agent to refund to the project all excessive fees collected, or (3) Appeal the decision and abide by the results of the appeal process, making any required reductions and refunds within 30 days after the date of the decision letter on the appeal. 2. We will select and admit tenants, compute tenant rents and assistance payments, recertify tenants and carry out other subsidy contract administrative responsibilities in accordance with FIB-2-3560 and Rural Development regulations. According to the Paperwork Reduction Act of 1995, an agency may not conduct or.sponsor, a da person is not required to respond m, a allecton afinfonnntian unless it displays a valid OMB control number. The valid OMB control rmmberfor this information collection is 0575-0189. The time regoiredto complete this information collection is esttmatedm average 30 minutes per response, including the time jar reviewing instructions, searching existing data sources, gathering and maintaining the data needed and completing and reviewing the collection ofinformation. 3. We agree to: a. Comply with this projects Mortgage and Promissory Note, and Loan Agreement/Resolution or Workout Agreement. b. Comply with Rural Development Handbooks and other policy directives that relate to the management of the project. c. Comply with Rural Development requirements regarding payment and reasonableness of the management fee and the project account. d. Refrain from purchasing goods or services from entities that have identity of interest with us unless the requirements of 7C.F.R. §3560.102(g) are met. 4. The Agent agrees to: a. Ensure that all expenses of the project are reasonable and necessary. b. Exert reasonable effort to maximize project income and to take advantage of discounts, rebates and similar money -saving techniques. c. Obtain contracts, materials, supplies and services including the preparation of the annual financial reports on terms most advantageous to the project d. Credit the housing project with all discounts, rebates or commissions including any sales or property tax relief granted by the State or local government received. e. Obtain the necessary verbal or written cost estimates and document reasons for accepting other than the lowest bid. f Maintain copies of the documentation and make such documentation available for inspection during normal business hours. g. Invest project funds that Rural Development policies require to be invested and take reasonable effort to invest other project funds unless the Borrower specifically directs the Agent not to invest those funds. 5. We certify that the types of insurance policies checked below are enforceable and will be maintained to the best of our ability at all times. Fidelity bonds and hazard insurance policies will name Rural Development as co -payee in the event of loss. Note: for any box not checked, Rural Development may require an explanation as to why a certain type of insurance was not obtained. a. 0 Fidelity bond or employee dishonesty coverage for: (1) all principals of the Agent and (2) all persons who participate directly or indirectly in the management or maintenance of the project and its assets, accounts and records. b. El Hazard insurance coverage required by 7 C.F.R. §3560.105. c• ❑+ Public liability insurance required by 7 C.F.R. §3560.105. d. ❑ Other (specify) as may be required by 7 C.F.R. §3560.105. 6. The Agent agrees to: a. Furnish a written response to Rural Development's supervisory visit review reports, physical inspection reports, and written inquiries regarding the project's annual financial statements or monthly accounting reports within 30 days after receipt of the report or inquiry. b. Establish and maintain the project's accounts, books and records in accordance with: (1) Rural Development's administrative requirements; and (2) Accounting principles under 7 C.F.R. §3560.302(b). We agree that: a. All records related to the operation of the project' regardless of when they are housed, shall be considered the property of the project. ... - b. Rural Development, the Office of Inspector General (OIG), and those agencies' representatives may inspect: (1) Any records which relate to the project's purchase of goods or services, (2) The records of the Borrower and the Agent, and (3) The records of companies having an identity -of -interest with the Borrower, Rural Development and the Agent. c. The following clause will be included in any contract entered into with an identity -of -interest individual or business for the provision of goods or services to the project: "Upon request by Rural Development, the Borrower or Agent, the contractor or the supplier will make available to Rural Development at a reasonable time and place, its records and records of identity -of -interest companies which relate to goods and services charged to the project. Records and information will he sufficient to permit Rural Development to determine the services performed, the dates the services were performed, the location at which the services were performed, the time consumed in providing the services, the charges made for materials, and the per unit and total charges levied for said services." The Borrower agrees to request from the contractor or supplier such records within seven (7) days of receipt of Rural Development's request. 8. We agree to include the following provisions in the Agreement and to be bound by them: a. Rural Development has the right to terminate the Agreement for failure to comply with the provisions of this Certification, or other good cause. b. If Rural Development exercises this right of termination, 1, the Borrower, agree to promptly make arrangements for providing management to the property that is satisfactory to Rural Development. c. If there is a conflict between the Agreement and Rural Development's rights and requirements, Rural Development's rights and requirements will prevail. d. If the Agreement is terminated, I, the Agent, will give to the Borrower all of the projeces cash, trust accounts, investments and records within 30 days of the date the Agreement is terminated. 9. I, the Borrower, agree to submit a new management certification to Rural Development before taking any of the following actions: a• Authorizing the agent to collect a fee different from the fees specified in Paragraph 1 of this Certification. b. Changing the expiration date of the Agreement; c Renewing the Agreement; d. Permitting anew Agent to operate the project; - - - - e. Permitting a new Agent to collect a fee; f. Undertaking self -management of the project. 10. We agree to: a. Comply with all Federal, State, or local laws prohibiting discrimination against any persons on grounds of race, color, creed, familial status, handicap, sex or national origin, including Title VI of the Civil Rights Act of 1964, Fair Housing Act, Executive Order 11063 and all regulations implementing those laws. b. When the head of household or spouse is otherwise eligible, give families with children equal consideration for admission. c. Give handicapped persons priority for subsidized units that were built and equipped specifically for the handicapped. d. The project will comply with the provisions of Section 504 of the Rehabilitation Act of 1973, as amended, the Age Discrimination Act of 1975 and all regulations and administrative instructions implementing these laws. The Agent understands that these laws and regulations prohibit discrimination against applicants or tenants who are handicapped or of a certain age. e. Furnish Rural Development any reports and information required to monitor the projects compliance with Rural Development's fair housing and affirmative marketing requirements. f Not discriminate against any employee, applicant for employment or contractor because of race, color, handicap, religion, sex or national origin. 9. Provide minorities, women, and socially and economically disadvantaged firms equal opportunity to participate in the project's procurement and contracting activities. 11. We certify that we have read and understand Rural Development's definition of"identity-o£-interest' m defined in 7 C.F.R §3560.11 and that the statements) checked and information entered below is true. a.�� No identityof-interest exists among the Borrower, the Agent and any individuals or companies that regularly do business with the project, or b. ❑ Only the individuals and companies listed on Forth RD 3560-31 have an identity-ofinterest with the Borrower or the Agent. 12. The items checked below are attached: a. ❑ Management Plan b. ❑ Idenfityof-Interest (IOI) Disclosure Qualification Certificate or Certification of No Identityof-Interest (IOI) c. ❑ Other (Specify): Warnings: There are fines and imprisonment for anyone who makes false, fictitious, or fraudulent statements or entries in any matter within the jurisdiction of the Federal Government (18 U.S.C. 1001). There are fines and imprisonment for anyone who misuses rents and proceeds in violation of Rural Development regulations relative to this project. (Section 543 of the Housing Act of 1949). Rural Development may seek a "double damages" civil money damages remedy for the use of assets or income in violation of any Loan Agreement/Resolution or any applicable Rural Development regulations. Rural Development may seek additional civil money penalties to be paid by the mortgagor through personal funds pursuant to 7 C.F.R. §3560.461(b). The penalties could be as much as $50,000 per violation (Section 543 (b) of the Housing Act of 1949). By Project Borrower: La Quinta Redevelopment Agency Name/title: s P. Gen/ow/9se Stecutive Director Signatu ,!/ - - - Dater By Management Agent: Hyder & Company Name/fine: Gary DaPrato, vice President Signature: , Date: By Servicing Official: Name/ritle: Signature: Date: rortn RD i560-3o (oz-us) Position 3 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL DEVELOPMENT . RURAL HOUSING SERVICE CERTIFICATION OF NO IDENTITY OF INTEREST (10I) Applicant/Borrower Name: Project Name: LA QUINTA REDEVELOPMENT AGENCY WASHINGTON STREET APTS. Location: (Town, County, State) LA QUINTA , CALIFORNIA IDENTITY OF INTEREST S'LAIEMEN'I An Identity of Interest occurs: (1) When there is any financial interest between the applicant/borrowm and/or management entity and the supplying entity. (z) When one or more of the officers, directors, stockholders or, partners of the applicantt/borroweir or management entity is also an officer, director, stockholder, or partner of the supplying entity. (3) When any officer, director, stockholder, or partner of the applicant/bor ower and/oi management entity has a 10 percent or more financial interest in the supplying entity. (a) When the supplying entity advances any funds to the applican0borrower and/or management entity. (5) When the supplying entity provides or pays on behalf of the applicantiborrower and/or management entity the cost of an materials andlor services in connection with obligations under the management plan/management agretmlent. (a) When the supplying entity takes stock or any interest in the applicant/borrower and/or management entity as part of the consideration to be paid them. ..,, (i) When there exists or comes into being any side deals, agreements, contracts or understandings entered into thereby altering, annending, or canceling any of the management plarvmanagement agreement documents, organization documents or other legal documents pertaining to the property, except as approved by the Agency. 1, (please print name), hereby certify that 1 have read the identity of interest statement above and understand what the. USDA, loured Development, Rural Housing Service (herein referred to as the Agency), has determined constitutes an identity of interest. I further certify that NO identify of interest relationship exists... 1 also hereby certify, under penalty of law*, and with knowledge that this information may be verified, that the information submitted is true and accurate. t further understand that failure to disclose any identity of interest to the Agency will also subject me to any administrative remedies availableto the Agency. Such remedies mar include suspension and debarment from. participating in any Federal program. I further understand and agree that I will complete an Identity of interest Disclosure/Qualification Certificateif at any time my circumstances change, and an identity of interest relationship is formed Applicant/Borrower Signature Date Applicant/Bonower Signature Dntc 'Warning: Section 1001 oriole 18. United States code provides'. "WToever, to anv matter within the jurisdiction of the executive, legislative. or Judicial branch of the Gnvenori m at the tinned States. knowingly and willfully fatxifiea, enncesis. or covers up by any trick, scheme, ar device u material fact. makes any materially falseficlaious, or fraudulent statement or represenulion, or makes or uses any false writing or document knowing the same to conmin any notarially false, fiction., in fraudulent statement or entry shall be fined under this title or imprisoned eat mare than 5 years, or bmh." FORM RD 3560-13 FORM APPROVED (Rev. 12-08) OMB NO 0575-0189 MULTI -FAMILY PROJECT BORROWER'S/MANAGEMENT AGENT'S MANAGEMENT CERTIFICATION Borrowers of multifamily housing loans are required by 7 C.F.R. §3560,102 0) to submit certain data for review by the Servicing Official for approval of a new management agent. These requirements apply to all multifamily projects. Effective Date (xx-xx-20xx): 07 - 01- 2 00 9 Project Name:WashincIton Street Apartments Borrower Case#(Project 1D:04-033-617701420 City/State: _La Quinta, CA Acting on behalf of La Quinta Redevelopment Agency , the project borrower (Borrower), and Hyder S Company , the management agent (Agent), make the following certifications and agreements to the United States Department of Agriculture regarding management of the above project. 1. We certify that: a. We will comply with Rural Development requirements and contract obligations, and agree that no payments have been made to the Borrower in return for awarding the management contract to the Agent, and that no such payments will be made in the future. b. We have executed or will execute, within 30 days a management agreement (Agreement) for this project. The Agreement provides that the Agent will manage the project for the term and for the Per Unit Per Month (PUPM) management fee described below. Changes in the management fee will be implemented only in accordance with Rural Development's requirements. (1)Term of Agreement (xx-xx-20xx through xx-xx-20xx): 7/1/2009 - 6/30/2010 (2) Fees: a) ❑ PUPM fee as specified in HB-2-3560, Attachment 3-F, as revised, for the term specified above (applied to revenue producing occupied units only). b) PUPM. fee is below the PUPM fee specified in HB-2-3560, Attachment 3-F, as revised, for the term spccitied above (applied to revenue producing occupied units only) Fee Amount: $ 52.00 . c) ❑ Add -On Fees as specified in HB-2-3560, Check all that apply. Include total add -on fees below. (applied to revenue producing occupied units only) ❑ Management of properties with 15 units or less. ❑ One project that has buildings located on different noncontiguous parcels of land (i.e. across town or in another town). ❑ Management of properties in a remote location. ❑ Troubled properties with workout plans and new management only. c. We will disburse management fees from project income only after: (1) We have submitted this certification to Rural Development: (2) Rural Development has approved the Agent to manage this project d. We understand that no fees may be earned or paid after Rural Development has terminated the Agreement c. If Rural Development notifies me of a management fee above that listed in HB-2-3560; Attachmern 3-F the Agent will within 30 days of the notice either: (1) Reduce the compensation to an amount Rural Development determines to be reasonable and (2) Require the Agent to refund to the project all excessive fees collected, or (3) Appeal the decision and abide by the results of the appeal process, making any required reductions and refunds within 30 days after the date of the decision letter on the appeal. 2. We will select and admit tenants, compute tenant rents and assistance payments, recertify tenants and carry out other subsidy contract administrative responsibilities in accordance with HB-2-3560 and Rural Development regulations. the Po��erwork Reduction Act of 1995, an agenor nary not conduct or sponsor, and a person is not �,cpondto, a collection of information unless it dis lays a valid OMB control number. The valid 01B er for this in ornwtion coil ection is 057 -0189, TKe time required to complete this information col ection 2 average 30 minutes pe/ response, intruding the time for reviewing instructions, searchin existing data erinv and maintabrinz the data needed, and completing and reviewing the collection of ir-rmation. 3. We agree to: a. Comply with this project's Mortgage and Promissory Now, and Loan Agreement/Resolution or Workout Agreement. b. Comply with Rural Development Handbooks and other policy directives that relate to the management of the project. c. Comply with Rural Development requirements regarding payment and reasonableness of the management fee and the project account. d. Refrain from purchasing goods or services from entities that have identity of interest with us unless the requirements of 7C.F.R. §3560.102(g) are met. 4. The Agent agrees to: a. Ensure that all expenses of the project are reasonable and necessary. b. Exert reasonable effort to maximize project income and to take advantage of discounts, rebates and similar money -saving techniques. c. Obtain contracts, materials, supplies and services including the preparation ofthe annual financial reports on terms most advantageous to the project. d. Credit the housing project with all discounts, rebates or commissions including any sales or property tax relief granted by the State or local government received. c. Obtain the necessary verbal or writtencost estimates and document reasons for accepting other than the lowest bid. f. Maintain copies of the documentation and make such documentation available for inspection during normal business hours. g. Invest project funds that Rural Development policies require to be invested and take reasonable effort to invest other project funds unless the Borrower specifically directs the Agent not to invest those funds. 5. We certify that the types of insurance policies checked below are enforceable and will be maintained to the best of our ability at all times. Fidelity bonds and hazard insurance policies will name Rural Development as co -payee in the event of loss. Note: for any box not checked, Rural Development may require an explanation as to why a certain type of insurance was not obtained. a. 0 Fidelity bond or employee dishonesty coverage for: (1)all principals of the Agent and (2)all persons who participate directly or indirectly in the management or maintenance of the project and its assets, accounts and records. b. El Hazard insurance coverage required by 7 C.P.R. §3560.105. C. El Public liability insurance required by 7 C.F.R. §3560.105. d. ❑ Other (specify) as may be required by 7 C.F.R. §3560.105. 6. The Agent agrees to: a. Furnish a written response to Rural Development's supervisory visit review reports, physical inspection reports, and written inquiries regarding the project's annual financial statements or monthly accounting reports within 30 days after receipt of the report or inquiry. b. Establish and maintain the project's accounts, books and records in accordance with: (I) Rural Development's administrative requirements; and (2) Accounting principles under C.F.R. §3560.302(b). 7. We agree that: - a. All records related to the operation of the project, regardless of where they are housed, shall be considered the property of the project. b. Rural Development, the Office of Inspector General (OIG), and those agencies representatives may inspect: (1) Any records which relate to the project's purchase of goods or services, (2) The records of the Borrower and the Agent, and (3) The records of companies having an identity -of -interest with the Borrower, Rural Development and the Agent. c. The following clause will be included in any contract entered into with an identity -of -interest individual or business for the provision of goods or services to the project: "Upon request by Rural Development, the Borrower or Agent, the contractor or the supplier will make available to Rural Development at a reasonable time and place, its records and records of identity -of -interest companies which relate to goods and services charged to the project. Records and information will be sufficient to permit Rural Development to determine the services performed, the dates the services were performed, the location at which the services were performed, the time consumed in providing the services, the charges made for materials, and the per unit and total charges levied for said services." The Borrower agrees to request from the contractor or supplier such records within seven (7) days of receipt of Rural Development's request. S. We agree to include the following provisions in the Agreement and to be bound by them: a. Rural Development has the right to terminate the Agreement for failure to comply with the provisions of this Certification, or other good cause, b. If Rural Development exercises this right of termination, 1, the Borrower, agree to promptly make arrangements for providing management to the property that is satisfactory to Rural Development. c. If there is a conflict between the Agreement and Rural Development's rights and requirements, Rural Development's rights and requirements will prevail. d. If the Agreement is terminated, I, the Agent, will give to the Borrower all of the project's cash, trust accounts, investments and records within 30 days of the date the Agreement is terminated. 1, the Borrower, agree to submit a new management certification to Rural Development before taking any of the following actions: a. Authorizing the agent to collect a fee different from the fees specified in Paragraph I of this Certification. b. Changing the expiration date of the Agreement; c. Renewing the Agreement; d. Permitting a new Agent to operate the project; e.'Permitting a new Agent to collect a fee; f Undertaking self -management of the project. 10. We agree to: a. Comply with all Federal, State, or local laws prohibiting discrimination against any persons on grounds of race, color, creed, familial status, handicap, sex or national origin, including Title VI of the Civil Rights Act of 1964, Fair Housing Act, Executive Order 11063 and all regulations implementing those laws. b. When the head of household or spouse is otherwise eligible, give families with children equal consideration for admission. c. Give handicapped persons priority for subsidized units that were built and equipped specifically for the handicapped. d, The project will comply with the provisions of Section 504 of the Rehabilitation Act of 1973, as amended, the Age Discrimination Act of 1975 and all regulations and administrative instructions implementing these laws. The Agent understands that these laws and regulations prohibit discrimination against applicants or tenants who are handicapped or of a certain age. c. Furnish Rural Development any reports and information required to monitor the project's compliance with Rural Development's fair housing and affirmative marketing requirements. f. Not discriminate against any employee, applicant for employment or contractor because of race, color, handicap, religion, sex or national origin. 9 Provide minorities, women, and socially and economically disadvantaged firms equal opportunity to participate in the pmject's procurement and contracting activities. 11. We certify that we have read and understand Rural Development's definition of "identity -of -interest" as defined in 7C.F.R §3560.11 and that the statements) checked and information entered below is true. a. El No identity -of -interest exists among the Borrower, the Agent and any individuals or companies that regularly do business with the project, or b. ❑ Only the individuals and companies listed on Form RD 3560-31 have an identity -of -interest with the Borrower or the Agent. 12. The items checked below are attached: a. ❑ Management Plan b. ❑ Identity -of -Interest (IOI) Disclosure Qualification Certificate or Certification of No Identity -of -Interest (101) c. ❑ Other (Specify): Warnings: There are fines and impprisonment for anyone who makes false, fictitious, or fraudulent statements or entries in any matter within thejurisdiction of the Federal Government (I8 U.S.C. 1001). There are tines and imprisonment for anyone who misuses rents and proceeds in violation of Rural Development regulations relative to this project. (Section 543 of the Housing Act of 1949). Rural Development may seek a "double damages" civil money damages remedy for the use of assets or income in violation of any Loan Agreement/Resolution or any applicable Rural Development regulations. Rural Development may seek additional civil money penalties to be paid by the mortgagor through personal funds Musing to 7 C.F.R. §3560.461(b). The penalties could be as much as $50,000 per violation (Section 543 (b) of the Housing Act of 1949). III By Project Borrower: La Quinta Redevelopment Agency Name/Title: /!' -Imn.5 F'GENO ✓L3Zr11 ce retireer 47ii2E4To2 Signature`' l/ Date: 111 Q//D By Management Agent: Hyde & Company Name/Title: Signature: Date: By Servicing Official: Name/Title: Signature: Date: FORM RD 3560-13 FORM APPROVED (02-05) OMB NO 0575-0189 MULTI -FAMILY PROJECT, OWNER'S/MANAGEMENT AGENT'S MANAGEMENT CERTIFICATION Owners of insured and assisted multifamily housing projects are required by administrative guidelines as found in HB-2- 3560, the Rural Housing Multi - Family Asset Management Handbook, to submit certain data for review by the Servicing Official's approval of a new management agent. These requirements apply to insured multifamily projects and subsidized, non-insured projects that are not financed by State Agencies or the Department of Housing and Urban Development Project Name Washington Street Apartments Borrower Case Number/Project Number 04-033617701420 City, State Bermuda Duees, California Date (ram/dd/yyyy) 10 30/08 Acting on behalf of La Ouinta Redevelopment Aeencv . the Project Owner (Owner), and Hvder & Company the Management Agent (Agent), we make the following certifications and agreements to the United States Department of Agriculture regarding management of the above project 1. We certify that: a. We will comply with Rural Development requirements and contract obligations, and agree that no payments have been made to the owner in return for awarding the management contract to the agent, and that such payments will not be made in the town b. We have executed or will execute, within 30 days after receiving the approval(s) required by paragraph b below, a Management Agreement for this project. The Agreement provides / will provide that the Management Agent will manage the project for the term and The described below. Changes in the fee will be implemented only in accordance with Rural Development's requirements. (1) Term of Agreement: 12 months (2)Fees: (a) PUMP Fee (Occupied Units Only) S 52.00 (b) Add On Fees (3) Calculation of Estimated Yield (See Attachment 1.) c. We will disburse management foes from project income only after. (1) We have submitted this Certification to Rural Development; (2) Rural Development has approved the Agent to manage this project; and (3) Rural Development has approved the management fee (if required). d. We understand that no fees may be earned or paid after Rural Development has terminated the Management Agreement. e. If Rural Development notifies me of an excessive management fee, the Agent, will within 30 days of the notice either: (1) Reduce the compensation to an amount Rural Development determines to be reasonable and (2) Require the Agent to refund to the project all excessive fees collected, or (3) Appeal the decision and abide by the results of the appeal process, making any required reductions and refunds within 30 days after the date of this decision letter on the appeal. 2. We will select and admit tenants, compute tenant rents and assistance payments, recertify tenants and carry out other subsidy contract administration responsibilities in accordance with HB-2-3560 and other Rural Development regulations. We agree to: a. Comply with this project's Mortgage and Promissory Note, and Loan Agreement/Resolution or Workout Agreement. It. Comply with Rum] Development Handbooks or other policy directives that relate m the management of the project. c. Comply with Rural Development requirements regarding payment and reasonableness of management fees and allocation of management costs between the management fee and the project account d. Reftain from purchasing goods or services from entities that have identity -of -interest with us unless the costs are as low as or lower than arms -length, open -market purchases. 4. The Agent agrees to: a. Ensure that all expenses of the project are reasonable and necessary. b. Exert reasonable effort to maximize project income and to take advantage of discounts, rebates and similar money -saving techniques. c. Obtain contracts, materials, supplies and services, including the preparation of the annual financial reports, on terms most advantageous to the project. d. Credit the project with all discounts, rebates or commissions including any sales or property tax relief granted by the State or local government received. e. Obtain the necessary verbal or written cost estimates and document the reasons for accepting other than the lowest bid. f Maintain copies of such documentation and make such documentation available for your inspection during normal business boom. g. Invest project funds that Rural Development policies require to be invested and take reasonable effort to invest other project funds unless the owner specifically directs the Agent not to invest those other funds. We certify that the types of insurance policies checked below are in force and will be maintained to the best of our ability at all times. Fidelity bonds and hazard insurance policies will name Rural Development as a co -payee in the event of loss. Note: For any box not checked, attach an explanation as to why you cannot obtain that type of insurance. Such situations should be extremely rare. a.@ Fidelity bond or employee dishonesty coverage for (1) all principals of the Agent and; (2) all persons who participate directly or indirectly in the management and maintenance of the project and its assets, accounts and records. b.21 Hazard insurance coverage required by Rural Development regulations. c.® Public liability coverage required by Rural Development Regulations. 6. The Agent agrees to: a. Furnish a response to Rural Development's supervisory visit review reports, physical inspection reports, and written inquiries regarding the projects annual financial statements or monthly accounting reports within 30 days after receipt ofthe report or inquiry. b. Establish and maintain the Droject's accounts, books and records in accordan"with: (1) Rural Development's administrative requirements; (2) generally accepted accounting principles; and (3) in a condition that will facilitate financial reporting. 7. We agree that: a. All records related to the operation of the project, regardless of where they are housed, shall be considered the property of the project. b. Rural Development, the General Accountability Office (GAO), and those agencies' representatives may inspect : According m the paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required m respond to. a collection ofinformitown unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0575-0189. The time required to complete this information collection is estimated to average 30 minutes per response, including the time for reviewing instructions, searching existing dam sources, gathering maintaining the data needed, and completing and reviewing the collection of information. (1) any records which relate to the projCdS pumb ant of goods or services, (2) the records of the Owner and the Agent, and (3) the mcmds of companies having an identity -of -interest with the owner and the agent. c. The following clause will be included in any contract entered into with an identity -of -interest individual or business for the provision of goods or services to the project: "Upon request of Rural Development or bourne of owner or Agent), (name of contractor or supplier) will make available to Rural Development, at a reasonable time and place, its moords and mmirds of identityof- interest companies which relate to goods and services charged to the project. Records and information will be sufficient to permit Rural Development to determine the services performed, the dates the services were performed, the location at which the services were performed, the time consumed in providing the services, the charges made for materials, and the per unit and total charges levied for said services." The owner agrees to request such records within seven (7) days ofreceipt of Rural Development's request to do so. 8. We certify that any Management Agreement does not contain the types of "hold harmless" clauses prohibited by Rural Development. 9. We agree to include the following provisions in the Management Agreement and to be bound by them: a. Rural Development has the right to terminate the Management Agreement for failure to comply with the provisions ofthis Certification, or other good cause, 30 days after Rural Development has mailed the owner a written notice of its desire to terminate the Management Agreement. h. In the event of a default under the Mortgage, Note or Loan Agreement/Resolution, Rural Development has the right to terminate the Management Agreement immediately upon Rural Development's issuance of a notice of termination to the Owner and Agent. c. If Rural Development exercises this right of termirution, I, the Owner, agree to promptly make arrangements for providing management that is satisfactory to Rural Development. d. If there is a conflict between the Management Agreement and Rural Development's rights and requirements, Rural Development's rights and requirements will prevail. e. If the Management Agreement is terminated, I, the Agent, will give to the Owner all of the projects cash, Imst accounts, investments and records within 30 days of the date the Management Agreement is terminated. - 10. 1, the Owner, agree to submit a new Management Certification to Rum] Development before taking any of the following actions: a. Authorizing the agent to collect a fee different from the fees specified in Paragraph 1 ofthis Certification. b. Changing the expiration date of the Management Agreement. c. Renewing the Management Agreement. d. Permitting a new Agent to operate the project. e. Permitting a new Agent to collect a fee. - f. Undertaking self -management of the project. 11. We agree to: a Comply with all Federal, State, or local laws prohibiting discrimination against any persons on grounds efface, color, creed, familial status, handicap, sex or national origin, including Title VI of the Civil Rights Act of 1964, Fair Housing Act, Executive Order 11063 and all regulations implementing those laws. b. When the head ofhousehold or spouse is otherwise eligible, give families with children equal consideration for admission. c. Give handicapped persons priority for subsidized units that were built and equipped specifically for the handicapped. d. If the project receives any form of direct Federal financial assistance, comply with the provisions of Section 504 ofthc Rehabilitation Act of 1973, as amended, the Age Discrimination Act of 1975 and all regulations and administrative instmmions implementing these laws. The Agent understands that these laws and regulations prohibit discrimination against applicants or tenants who are handicapped or of certain age. e. Famish Rural Development any reports and information required to monitor the project's comphadce with Rural Development's fair housing and affirmative marketing requirements. f. Not discriminate against any employee, applicant for employment or contractor because of race, color, handicap, religion, sex or national origin. g. Provide minorities, women and socially and economically disadvantaged firms cqual opportunity to participate in the project's procurement and contracting activities. 12. We certify that we have Lead and understand Rural Development's definition of "identity -of -interest" and that the statement(s) checked and information entered below are true. a. O No identity -of -interest exists among the Owner, Agent and any individuals or companies that regularly do business with the project, or b.0 Only the individuals and companies listed on Form RD 3560- 31 have an identity -of -interest with the Owner. 13. The items checked below are attached: O Management Plan ® Ideotityof-ofDisclosure Qualification Certificate or Certification ofNO Identity-oSlntemst (IOI) ❑ Other(Specify): Waminp: There are fines and imprisonment for anyone who makes false, fictitious, or fraudulent statements or entries in any matter within the jurisdiction ofthe Federal Government (18 U.S.C. 1001). There are fines and imprisonment for anyone who misuses rents and proceeds in violation of Rural Development regulations relative to this project. This applies when the mortgage note is in default or when the project is in a non - surplus cash position (Section 543 of the Housing Act of 1949). Rural Development may seek a "double damages" civil remedy for the use of assets or income in violation of any Loan Agreement/Resolution or any applicable Rum] Development regulations. Rural Development Dray seek additional civil money penalties to be paid by the mortgagor through personal funds for: (1) Violation of an agreement with Rural Development to use non -project funds for certain specified purposes as a condition of receiving transfers of physical assets, Flexible subsidy loan, capital improvement loan, modification of mortgage terms or workout. The penalties could be as much as the USDA Secretary's loss at foreclosure sale or sale after foreclosure. (2) Certain specific violations of the Loan AgmemenNResolution. The penalties could be as much as $50,000 per occurrence (Section 543 (b) of the Housing Act of 1949). By Project Owner: Name/Title: Li eh, as -6 F G ✓E /7 'C !L Signatur % ,,,-� P/L1i41'e=.L- Date (mm/dd/yyyy) G/y g��p By Management Agent: Name/Title: Gary DaPrato/Vice President Signature Date (mm/d� FORM RD 3560-13 FORM APPROVED (Rev. 03-11) OMB NO 0575-0189 MULTI -FAMILY PROJECT BORROWER'S/MANAGEMENT AGENT'S MANAGEMENT CERTIFICATION Borrowers of multifamily housing loans are required by 7 C.F.R. §3560.102 0) to submit certain data for review by the Servicing Official for approval of a new management agent. These requirements apply to all multifamily projects. Effective Date (xx-xx-20xx): 0 7 - 01- 2 016 Project Name: Washington Street Apts. Borrower Case#/Project ID: 04-033-764165310 City/State: La Quinta, CA Acting on behalf of La Quinta Housing Authority , the project borrower (Borrower), and Hyder & Company , the management agent (Agent), make the following certifications and agreements to the United States Department of Agriculture regarding management of the above project. 1. We certify that: a. We will comply with Rural Development requirements and contract obligations, and agree that no payments have been made to the Borrower in return for awarding the management contract to the Agent, and that no such payments will be made in the future, b. We have executed or will execute, within 30 days a management agreement (Agreement) for this project. The Agreement provides that the Agent will manage the project for the term and for the Per Unit Per Month (PUPM) management fee described below. Changes in the management fee will be implemented only in accordance with Rural Development's requirements. (1) Term of Agreement (xx-xx-20xx through xx-xx-20xx): 7 / 1 / 2 016 - 6 / 3 0 / 2 017 (2) Fees: a) ❑ PUPM fee as specked in HB-2-3560, Attachment 3-F, as revised, for the term specified above (applied to revenue producing occupied units only). b) ❑ PUPM fee is below the PUPM fee specified in HB-2-3560, Attachment 3-F, as revised, for the term specified above (applied to revenue producing occupied units only) Fee Amount: $ c) ❑ Add -On Fees as specified in HB-2-3560, Check all that apply. Include total add -on fees below. (applied to all revenue producing units regardless of occupancy) ❑ Management of properties with 15 units or less. ❑ One project that has buildings located on different noncontiguous parcels of land (i.e. across town or in another town). ❑ Management of properties in a remote location. ❑ Troubled properties with workout plans and new management only. c. We will disburse management fees from project income only after: (1) We have submitted this certification to Rural Development: (2) Rural Development has approved the Agent to manage this project d. We understand that no fees may be earned or paid after Rural Development has terminated the Agreement e. If Rural Development notifies me of a management fee above that listed in HB-2-3560; Attachment 3-F the Agent will within 30 days of the notice either: (1) Reduce the compensation to an amount Rural Development determines to be reasonable and (2) Require the Agent to refund to the project all excessive fees collected, or (3) Appeal the decision and abide by the results of the appeal process, making any required reductions and refunds within 30 days after the date of the decision letter on the appeal. 2. We will select and admit tenants, compute tenant rents and assistance payments, recertify tenants and carry out other subsidy contract administrative responsibilities in accordance with HB-2-3560 and Rural Development regulations. According to the PapervorkReduction Act of1995, an agency may not conduct orsponsor, and a person is not required to respond to, a collection ofinfornation unless it displays a valid OMB control number. The valid OMB control ntun berfor this infw7nation collection is 0575-0189. The time required to complete this information collection is estimated to average 30 minutesper response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection ofinfortnation. 3. We agree to: a. Comply with this prcject's Mortgage and Promissory Note, and Loan Agreement/Resolution or Workout Agreement. b. Comply with Rural Development Handbooks and other policy directives that relate to the management of the project. c. Comply with Rural Development requirements regarding payment and reasonableness of the management fee and the project account. d. Refrain from purchasing goods or services from entities that have identity of interest with us unless the requirements of 7C.F.R. §3560.102(g) are met. 4. The Agent agrees to: a. Ensure that all expenses of the project are reasonable and necessary. - b. Exert reasonable effort to maximize project income and to take advantage of discounts, rebates and similar money -saving techniques. c. Obtain contracts, materials, supplies and services including the preparation of the annual financial reports on terms most advantageous to the project. d. Credit the housing project with all discounts, rebates or commissions including any sales or property tax relief granted by the State or local government received. e. Obtain the necessary verbal or written cost estimates and document reasons for accepting other than the lowest bid. f. Maintain copies of the documentation and make such documentation available for inspection during normal business hours. g. Invest project funds that Rural Development policies require to be invested and take reasonable effort to invest other project funds unless the Borrower specifically directs the Agent not to invest those funds. We certify that the types of insurance policies checked below are enforceable and will be maintained to the best of our ability at all times. Fidelity bonds and hazard insurance policies will name Rural Development as co -payee in the event of loss. Note: for any box not checked, Rural Development may require an explanation as to why a certain type of insurance was not obtained. a. El Fidelity bond or employee dishonesty coverage for. (1) ail principals of the Agent and (2) all persons who participate directly or indirectly in the management or maintenance of the project and its assets, accounts and records. b• El Hazard insurance coverage required by 7 C.F.R. §3560.105. c• El Public liability insurance required by 7 C.F.R. §3560.105. d. ID Other (specify) as may be required by 7 C.F.R. §3560.105. 6. The Agent agrees to: a• Furnish a written response to Rural Development's supervisory visit review reports, physical inspection reports, and written inquiries regarding the project's annual financial statements or monthly accounting reports within 30 days after receipt of the report or inquiry. b. Establish and maintain the project's accounts, books and records in accordance with: (1) Rural Development's administrative requirements; and (2) Accounting principles under 7 C.F.R. §3560.302(b). We agree that: a. All records related to the operation of the project, regardless of where they are housed, shall be considered the property of the project. b. Rural Development, the Office of Inspector General (OIG), and those agencies' representatives may inspect: (1) Any records which relate to the projects purchase of goods or services, (2) The records of the Borrower and the Agent, and (3) The records of companies having an identity -of -interest with the Borrower, Rural Development and the Agent. c• The following clause will be included in any contract entered into with an identity -of -interest individual or business for the provision of goods or services to the project: "Upon request by Rural Development, the Borrower or Agent, the contractor or the supplier will make available to Rural Development at a reasonable time and place, its records and records of identity -of -interest companies which relate to goods and services charged to the project. Records and information will be sufficient to permit Rural Development to determine the services performed, the dates the services were performed, the location at which the services were performed, the time consumed in providing the services, the charges made for materials, and the per unit and total charges levied for said services." The Borrower agrees to request from the contractor or supplier such records within seven (7) days of receipt of Rural Development's request. 8. We agree to include the following provisions in the Agreement and to be bound by them: a. Rural Development has the right to terminate the Agreement for failure to comply with the provisions of this Certification, or other good cause. b. If Rural Development exercises this right of termination, I, the Borrower, agree to promptly make arrangements for providing management to the property that is satisfactory to Rural Development. c• If there is a conflict between the Agreement and Rural Development's rights and requirements, Rural Development's rights and requirements will prevail. d• If the Agreement is terminated, I, the Agent, will give to the Borrower all of the projects cash, trust accounts, investments and records within 30 days of the date the Agreement is terminated y I, the Borrower, agree to submit a new management certification to Rural Development before taking any of the following actions: a. Authorizing the agent to collect a fee different from the fees specified in Paragraph 1 of this Certification. b. Changing the expiration date of the Agreement; c• Renewing the Agreement; d• Permitting a new Agent to operate the project; e• Permitting a new Agent to collect a fee; f Undertaking self -management of the project. 10. We agree to: a. Comply with all Federal, State, or local laws prohibiting discrimination against any persons on grounds of race, color, creed, familial status, handicap, sex or national origin, including Title VI of the Civil Rights Act of 1964, Fair Housing Act, Executive Order 11063 and all regulations implementing those laws. b. When the head of household or spouse is otherwise eligible, give families with children equal consideration for admission. c. Give handicapped persons priority for subsidized units that were built and equipped specifically for the handicapped. d• The project will comply with the provisions of Section 504 of the Rehabilitation Act of 1973, as amended, the Age Discrimination Act of 1975 and all regulations and administrative instructions implementing these laws. The Agent understands that these laws and regulations prohibit discrimination against applicants or tenants who are handicapped or of a certain age. e• Furnish Rural Development any reports and information required to monitor the projects compliance with Rural Development's fair housing and affirmative marketing requirements. f Not discriminate against any employee, applicant for employment or contractor because of race, color, handicap, religion, sex or national origin. g• Provide minorities, women, and socially and economically disadvantaged firms equal opportunity to participate in the project's procurement and contracting activities. 11. We certify that we have read and understand Rural Development's definition of "identity -of -interest" as defined in 7 C.F.R §3560.11 and that the statements) checked and information entered below is true. a. 0 No identity -of -interest exists among the Borrower, the Agent and any individuals or companies that regularly do business with the project, or b. ❑ Only the individuals and companies listed on Form RD 3560-31 have an identity -of -interest with the Borrower or the Agent. 12. The items checked below are attached: a. ❑ Management Plan b. 0 Identity -of -Interest (IO1) Disclosure Qualification Certificate or Certification of No Identity -of -Interest (I01) c. ❑ Other (Specify): Warnings: There are fines and imprisonment for anyone who makes false, fictitious, or fraudulent statements or entries in any matter within the jurisdiction of the Federal Government (18 U.S.C. 1001). There are fines and imprisonment for anyone who misuses rents and proceeds in violation of Rural Development regulations relative to this project. (Section 543 of the Housing Act of 1949). Rural Development may seek a "double damages" civil money damages remedy for the use of assets or income in violation of any Loan Agreement/Resolution or any applicable Rural Development regulations. Rural Development may seek additional civil money penalties to be paid by the mortgagor through personal funds pursuant to 7 C.F.R. §3 560.46 1 (b). The penalties could be as much as $50,000 per violation (Section 543 (b) of the Housing Act of 1949). By Project Borrower: La Quinta Housing Authority Name/Title: Frank J. Spev Executive Director Signatur . Date: a;5 By Management Management Ag Hyder & Company Name/Tide: Gary DaPrato,Viilce 4Pesident Signature: '%(�/�, Date: 03-31-2016 By Servicing Official: Name/Tide: Signature: Date: La Quinta Housing Authority 78-495 CALLE TAMPICO LA QUIINTA, CALIFORNIA 92253 April 27, 2016 Ms. Marcia Brooks United States Department of Agriculture Rural Development 22690 March Memorial Drive, Suite 280 Moreno Valley, CA 92553 RE: MANAGEMENT OVERSIGHT FEE JUSTIFICATION (WASHINGTON STREET APARTMENTS) Dear Ms. Brooks: TEL (760) 777-7120 FAX (760) 777-7011 The La Quinta Housing Authority and its staff provide management oversight for Washington Street Apartments. The following functions are performed for this project annually: Executive Oversight: • Review and approval of project's annual operating budget, including proposed repairs and replacement reserves expenditures. • Hiring of Independent Certified Public Accountant for the performance of project's annual financial and compliance audit. • Review and approval of audited financial statements and monitoring of management comments noted in the audit. • Monthly review of project's occupancy and tenant waiting lists. Financial Oversight: • Assist in the preparation of the annual operating budget. • Monitoring monthly operating financial statements, including budget to actual analysis. • Monitoring the adequacy and cost of property, liability and other insurance needs of the project. Review and monitoring of long term capital improvement plan. WSA Management Oversight Fee Justification April 27, 2016 Page 2 of 2 • Monitoring of replacement reserve accounts for maximization of investment earnings. Program Oversight: • Regular meetings with property management personnel to discuss project status. Review and approval of project's staffing needs. • Quarterly physical inspections of the project. • Annual unit inspection, including follow-up on unit deficiencies. Community Services: • Organizing and providing resident activities and programs. • Coordination, design and implementation to enhance the onsite community center. • Production of a monthly newsletter for residents. We hereby request the maximum amount allowed for Asset Management Fees to fund a portion of expense associated with the aforementioned. Should you have any questions or need further information, please do not hesitate to contact me. Sincerely, THE,LA QUINTA HOG AUTHORITY l=rdn k ExecutiveMrecS p.e� r La Quinta Housing Authority OF 78-495 CALLE TAMPICO LA QUINTA, CALIFORNIA 92253 MANAGEMENT OVERSIGHT FEE JUSTIFICATION PH: (760) 777-7125 FAX: (760) 777-7011 Project: Washington Street Apartments Fiscal Year Address: 42-800 Washington Street La Quinta, CA 92253 2016/2017 EXECUTIVE OVERSIGHT Department Hours Expended I Hourly Rate I Total Cost Finance Department Finance Director 1 5 1 $143.00 1 $ 715.00 TOTAL 1 $2,431.00 FINANCIAL OVERSIGHT PROGRAM OVERSIGHT Department Hours Expended Hourly Rate Total Cost. Contract Housing Specialist 10 $143.00 $1,430.00 COMMUNITY SERVICES Department Hours Expended Hourly Rate Total Cost m TOTAL $1,430.00 Form RD 3560-30 (02-05) Position 3 UNITED STATES DEPARTMENT OF AGRICULTURE RURAL DEVELOPMENT RURAL HOUSING SERVICE CERTIFICATION OF NO IDENTITY OF INTEREST (101) Applicant/Borrower Name: LA QUINTA HOUSING AUTHORITY Name: WASHINGTON STREET APTS Location: (Town, Country, State) LA QUINTA, CALIFORNIA IDENTITY OF INTEREST STATEMENT An Identity of Interest occurs: (1) When there is any financial interest between the applicant/borrower and/or management entity and the supplying entity. When one or more of the officers, directors, stockholders or partners of the applicant/borrower or management entity is also an officer, director, stockholder, or partner of the supplying entity. When any officer, director, stockholder, or partner of the applicant/borrower and/or management entity has a 10 percent or more financial interest in the supplying entity. When the supplying entity advances any funds to the applicant/borrower and/or management entity. When the supplying entity provides or pays on behalf of the applicant/borrower and/or management entity the cost of any materials and/or services in connection with obligations under the management plan/management agreement. When the supplying entity takes stock or any interest in the applicant/borrower and/or management entity as part of the consideration to be paid them. When there exists or comes into being any side deals, agreements, contracts or understandings entered into thereby altering, amending, or canceling any of the management plan/management agreement documents, organization documents or other legal documents pertaining to the property, except as approved by the Agency. I, Frank J . Spevacek (please print name), hereby certify that I have read the identity of interest statement above and understand what the USDA, Rural Development, Rural Housing Service (herein referred to as the Agency), has determined constitutes an identity of interest. I further certify that NO identity of interest relationship exists. I also hereby certify, under penalty of law*, and with knowledge that this information may be verified, that the information submitted is true and accurate. I further understand that failure to disclose any identity of interest to the Agency will also subject me to any administrative remedies available to the Agency. Such remedies may include suspension and debarment from participating in any Federal program. I further understand and agree that I will complete an Identity of Interest Disclosure/Qualification Certificate if at any time my circum- stances change, and an ' y of interest relationship is formed. c o S ature Applicant/Borrower Signature Date Date *Warning: Section 100 I of Title 18, United States Code provides: "Whoever, in any matter within the jurisdiction of the executive, legislative, or Judicial branch of the Government of the United States, knowingly and Wiurwiy falsifies, conceals, or covers up by any trick, scheme, or device a material fact, makes any materially false, fictitious, or fraudulent statement or representation, or makes or uses any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry shall be fined under this title or imprisoned not more than 5 years, or both." Client#: 138854 .VAr7�10101fi :1I ACORD. CERTIFICATE OF LIABILITY INSURANCE DATE(MM(DDNYYY) 8/27/2015 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTA NAME:CT Shaneeza Johnson ' Propel Insurance PHONE 800 499-0933 FAX 866.577.1326 E A/c, No Seattle Commercial Insurance E-MAIL ADDRESS: shaneeza.johnson@propelinsurance.com 925 4th Ave, Suite 3200 Seattle, WA 981 O4 INSURER(S) AFFORDING COVERAGE NAIC # INSURER A: National union Fire 19445 INSURED Hyder and Company INSURERS: 1649 Capaiina Rd #500 INSURER C : San Marcos, CA 92069 INSURER D : INSURER E : INSURER F COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TYPE OF INSURANCE ADDLTRR NSRL WVD POLICY NUMBER MMIDDY EFF MWDDY EXP LIMITS GENERAL LIABILITY EACH OC7CpURRENCE $ COMMERCIAL GENERAL LIABILITY PREMISS FzEcNcc�urrDence $ MED EXP (Any one person) $ CLAIMS -MADE OCCUR PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ - GEN'LAGGREGATE LIMIT APPLIES PER: PRODUCTS -COMPIOPAGG $ POLICY PEC- LOC $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT Ea accident BODILY INJURY (Per person) $ ANYAUTO ALL OWNED SCHEDULED AUTOS AUTOS BODILY INJURY (Per accident) $ FAUTOS HIRED AUTOS NON -OWNED PROPERTYDAMAGE Per accident $ $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ AGGREGATE $ EXCESS LIAB CLAIMS -MADE DED RETENTION$ $ WORKERS COMPENSATION I WC STLA - OTH- AND EMPLOYERS' LIABILITY YIN ANY PROPRIETORIPARTNERIEXECU IVE OFFICER/MEMBER EXCWDED7 N I A TO I - E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ A Crime 016022274 8/01/2015 081011201C $750,000 Ded. $5,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) Evidence of insurance Evidence of Insurance SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS, AUTHORIZED REPRESENTATIVE ©1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010105) 1 Of 1 #S1838203/M1838201 The ACORD name and logo are registered marks of ACORD SJ00 Client#: 138854 HYDECOMPI ACORD., CERTIFICATE OF LIABILITY INSURANCE D011202016YY) o1/zo/zols THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER NAME CT Shaneeza Johnson Propel Insurance PHONE 800 499-0933 F 866.577.1326 A/C, No. Ext : A/C, No Seattle Commercial Insurance E-MAIL h h Saneeza. onson ro ADDRESS: @pelinsurance.com p 925 4th Ave, Suite 3200 Seattle, WA 98104 INSURER(S) AFFORDING COVERAGE NAIC # INSURER A: Underwriters At Lloyd's London 15792 INSURED Hyder and Company INSURER B : 1649 Capalina Rd #500 INSURER C San Marcos, CA 92069 INSURER D : INSURER E : INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSR SUBR WVD POLICY NUMBER POLICY EFF MM/DD POLICY EXP MMIDD LIMITS GENERAL LIABILITY EACH OCCURRENCE $ COMMERCIAL GENERAL LIABILITY DAMAGE MINTED -PREMISES Ea occurrence I + $ MED EXP (Any one person) 1 $ CLAIMS -MADE OCCUR i PERSONAL&ADV INJURY Is ` GENERAL AGGREGATE j$ GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS -COMP/OPAGG $ POLICY E 0. El LOC $ AUTOMOBILE LIABILITY 11 ! COMBINED SINGLE LIMIT Ea accident $ BODILY INJURY (Per person) $ ANY AUTO ` ALL OWNED SCHEDULED AUTOS i AUTOS j BODILY INJURY t) ( Per accident) $ " HIRED AUTOS i NON -OWNED AUTOS PROPERTYDAMAGE (Per accident)--.— $ 1— $ UMBRELLA LIAR OCCUR I j � EACH OCCURRENCE Is EXCESS LIAR CLAIMS -MADE AGGREGATE Is DED RETENTION $ $ I � WORKERS COMPENSATION j WC STATU- OTH- AND EMPLOYERS' LIABILITYER ANY PROPRIETOR/PARTNER/EXECUTIVE YIN OFFICERIMEMBER EXCLUDED? ❑ N I A f ' E.L. EACH ACCIDENT $ I E.L. DISEASE- EA EMPLOYEE $ (Mandatory In NH) It yes, describe under 'y E.L. DISEASE- POLICY LIMIT $ DESCRIPTION OF OPERATIONS below ! ! A Errors &Omissions ! 000000151112D 810112015108/011201 $2,000,000/$2,000,000 Retro Dates: Ded: $10,000 7/1106 $1M/$1M 19/23/13 $1M/$2M f Reto Date: 8/01114 DESCRIPTION OF OPERATIONS I LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) Evidence of Insurance SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ©1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010/05) 1 of 1 The ACORD name and logo are registered marks of ACORD #S2026284/MI820539 SJ00 uvnernuoe ACORD,.,, EVIDENCE OF COMMERCIAL PROPERTY INSURANCE DATE(MMIDDIYYYY) 04118/2016 THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. PRODUCER NAME, " No ExI : 206-676.4233 COMPANY NAME AND ADDRESS NAIC NO: 13544 CONTACT PERSON AND ADDRESS California Capital Insurance Company Propel Insurance 2300 Garden Road Seattle Commercial Insurance Monterey, CA 93940 925 4th Ave, Suite 3200 Seattle, WA 98104 IF MULTIPLE COMPANIES, COMPLETE SEPARATE FORM FOR EACH FAX Nu : 866.577.1326 ADDRESS: shaneezajohnson@propolinsurance.con CODE: SUB CODE: POLICYTYPE Business Owners Policy AGENCYER ID M. 138854 -CUSTOMNAMED INSURED AND ADDRESS LOAN NUMBER - POLICY NUMBER La Quinta Redevelopment Agency c/o 2580P11800230 Hyder 8t. Company 1649 Capalina Rd #500 EFFECTIVE DATE EXPIRATION DATE San Marcos, CA 92069 CONTINUED UNTIL 08/01/2015 08/0V2016 TERMINATED IF CHECKED ADDITIONAL NAMED INSURED($) - - THIS REPLACES PRIOR EVIDENCE DATED: YK+VYtK ICY INI'UKMAI IUN (Use KtMAKKS on Page z, it more space Is requires) UU CUILLIINii: UK UU UU0I114C00 t-=K,�UNAL YKUMMI T t nreT11 nrxnFCCR1PTInN THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. rnvooer_c 1urn0eeAT1nru--- ........... — I I I I COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE $ $6,630,000 DED: $5,000 YES NO NIA ® BUSINESS INCOME ® RENTAL VALUE X If YES, LIMIT: Actual Loss Sustained: # of months 24 BLANKET COVERAGE X If YES, indicate value(s) reported on property identified above: $ TERRORISM COVERAGE X Attach Disclosure Notice 1 DEC IS THERE A TERRORISM -SPECIFIC EXCLUSION? X IS DOMESTIC TERRORISM EXCLUDED? x LIMITED FUNGUS COVERAGE X If YES, LIMIT: DED: FUNGUS EXCLUSION (IF "YES", specify organization's form used) X REPLACEMENT COST X AGREED VALUE X COINSURANCE X If Yes, % EQUIPMENT BREAKDOWN (If Applicable) X If YES, LIMIT: INCLUDED DED: $5,000 ORDINANCE OR LAW -Coverage for loss to undamaged portion of bldg X If YES, LIMIT: INCLUDED DED: $5,000 Demolition Costs X If YES, LIMIT: INCLUDED DED: $5,000 - Incr. Cost of Construction X If YES, LIMIT: INCLUDED. DED: $5,000 EARTH MOVEMENT (if Applicable) X If YES, LIMIT: DED: FLOOD (IfApplicable) X If YES, LIMIT: DED: WINDMAIL (If Subject to Different Provisions) X If YES, LIMIT. $5,000 DED: $5,000 PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGE HOLDER PRIOR TO LOSS X 124% Extended Replacement Cost X SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE I DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST 7 MORTGAGEE CONTRACT OF SALE LENDER SERVICING AGENT NAME AND ADDRESS LENDERS LOSS PAYABLE .. NAME AND ADDRESS Evidence of Insurance AUTHORIZED �REPRESENTATIVE ACORD 28 (2011/11) S 113040 Page 1 of 2 © 2003-2011 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD SJ00 ACORD,. EVIDENCE OF COMMERCIAL PROPERTY INSURANCE DATE (MMfDDfYYYYi 04118/2016 THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. PRODUCER NAME, I PHONE A/C No Ext : 206-676-4233 COMPANY NAME AND ADDRESS NAIC NO: 13544 CONTACT PERSON AND ADDRESS California Capital Insurance Company Propel Insurance 2300 Garden Road Seattle Commercial Insurance Monterey, CA 93940 925 4th Ave, Suite 3200 Seattle, WA 98104 m IF MULTIPLE COMPANIES, COMPLETE SEPARATE FORM FOR EACH FAX No): 866.577.1326 OppDAD Bless; Shaneeaa.johnson@propelinsurance.co CODE: SUB CODE: POLICYTYPE Business Owners Policy AGENCY ID 138854 NAMED INSURED AND ADDRESS La Quinta Redevelopment Agency c/o LOAN NUMBER POLICY NUMBER Hyder $ Company 25BOP11800230 1649 Capalina Rd #500 EFFECTIVE DATE EXPIRATION DATE San Marcos, CA 92069 CONTINUED UNTIL 08/01/2015 08/01/2016 TERMINATED IF CHECKED ADDITIONAL NAMED INSURED(S) THIS REPLACES PRIOR EVIDENCE DATED: rKUrCKI T IIVr'VKMAI IUN Use KtMAKKS on Page Z, it more space is required) I& 13UILUINU UK IN bUSINk55I-kKSUNALYKUYEKIY LOCATIONIDESCRIPTION THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ftr1VPRA(AF II1JF/1RMATIAAI 11.,.,, � �.1-,,- ...,....I I Iv ____... COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE: $ $6,630,000 DED: $5,000 YES NO NIA ® BUSINESS INCOME ® RENTAL VALUE x if YES, LIMIT: Actual Loss Sustained: # of months 24 BLANKET COVERAGE X If YES, indicate value(s) reported on property identified above: $ TERRORISM COVERAGE X Attach Disclosure Notice I DEC IS THERE A TERRORISM -SPECIFIC EXCLUSION? X IS DOMESTIC TERRORISM EXCLUDED? X LIMITED FUNGUS COVERAGE X If YES, LIMIT: DED: FUNGUS EXCLUSION (IF "YES", specify organization's form used) X REPLACEMENT COST X AGREED VALUE X COINSURANCE X If Yes, % EQUIPMENT BREAKDOWN (If Applicable) X If YES, LIMIT: INCLUDED DED: $5,000 ORDINANCE OR LAW -Coverage for loss to undamaged portion of bldg X If YES, LIMIT: INCLUDED DED: $5,000 -DemolitionCosts X If YES, LIMIT: INCLUDED DED: $5,000 -Incr.CostofConstruction X If YES, LIMIT: INCLUDED DED: $5,000 EARTH MOVEMENT (if Applicable) X If YES, LIMIT: DED: FLOOD (If Applicable) X If YES, LIMIT: DED: WIND/HAIL (if Subject to Different Provisions) X If YES, LIMIT: $5,000 DED: $5,000 PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGE HOLDER PRIOR TO LOSS X 124% Extended Replacement Cost X GAIVGCLLA 1 [UN SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. MORTGAGEE CONTRACT OF SALE LENDER SERVICING AGENT NAME AND ADDRESS LENDERS LOSS PAYABLE NAME AND ADDRESS Evidence of Insurance reserved. The ACORD name and logo are registered marks of ACORD WOO April 14, 2015 Hyder Property Management Professionals 16490 Capalina Road, Suite 500 San Marcos, CA 92069-1226 RE: Washington Street Apartments Earthquake Insurance for 02/07/15 — 02/07/16 To Whom It May Concern: Please consider this letter the City of La Quinta's request for the 02/07/15 — 02/07/16 Washington Street Apartments Earthquake Insurance Policy Premium in the amount of $12,476.88. Please make check payable to "City of La Quinta" reference "WSA Earthquake Policy Premium and mail to: City of La Quinta Finance Department 78-495 Calle Tampico La Quinta, CA 92253 If you have any questions or require additional information, please feel free to give me a call at (760)777-7150, Sincerely, Rita Conrad Finance Director Attachments: 1. Hayward Tilton & Rolapp Insurance Associates Invoice #409026 dated 02/06/15 2. Copy of Payment — Check #106107 02/20/15 78-495 Calle Tampico I ,La Quinta ( California 92253 1 760.777.7000 Client#: 138854 HYDECOMP1 ACORDTM CERTIFICATE OF LIABILITY INSURANCE DATE (MMIDDIYYYY) 8E(MM/D17 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Debbi Hodgs-Creed Propel Insurance PHONE 800 499-0933 FAX 866 577-1326 A/C, No, Ext : A/C, No Seattle Commercial Insurance E-MAIL debbi.hodges-creed@propelinsurance.com 925 4th Ave, Suite 3200 INSURER(S) AFFORDING COVERAGE NAIC # Seattle, WA 98104 INSURERA: Philadelphia Indemnity Ins Comp 18058 INSURED INSURER B : INSURER C : c/o Hyder and Company INSURER D 1649 Capalina Road #500 INSURER E : San Marcos, CA 92069 INSURER F COVERAGES CERTIFICATE NUMBER: 17/18 GL/HNOA - APTS REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSR SUBR WVD POLICY NUMBER POLICY EFF MM/DD/YYYY POLICY EXP MM/DD/YYYY LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE � OCCUR PHPK1690600 8/01/2017 08/01/2018 EACH OCCURRENCE $1 000 000 PREMISES ERENTED ccr nce $100,000 MED EXP (Any one person) $ 5,000 PERSONAL & ADV INJURY $1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: POLICY JEt° � LOC OTHER: GENERAL AGGREGATE $2,000,000 PRODUCTS - COMP/OPAGG $2,000,000 $ A AUTOMOBILE LIABILITY ANY AUTO ALL OWNED SCHEDULED AUTOS AUTOS HIRED AUTOS X NON -OWNED AUTOS PHPK1690600 8/01/2017 08/01/201 MBINED (CEO, cidentSINGLE LIMIT ac $ 1r r OOO OOO BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ X PROPERTY DAMAGE Per accident $ UMBRELLA LIAB EXCESS LIAB OCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DED RETENTION $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below N / A PER OTH- E.L. EACH ACCIDENT $ E.L. DISEASE - EA EMPLOYEE $ E.L. DISEASE - POLICY LIMIT $ DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Loc# 42 - 42800 Washington Street; Bermuda Dunes, CA Building # 1 Washington Street Apartments l.tK I It -ILA I t HULUtK L AINL r-LLA I IUN USDA Rural Development Moreno Valley Office 22690 March Memorial Drive, Suite #280 Moreno Valley, CA 92553-9035 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ACORD 25 (2014/01) 1 of 1 #S2800025/M2799802 © 1988-2014 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD RRL00 HYDECOMPI ACORD- EVIDENCE OF COMMERCIAL PROPERTY INSURANCE DATE(MM/DD/YYYY) 08/03/2017 THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. PRODUCER NAME, PHONE 206 676-4221 A/C No Exc : COMPANY NAME AND ADDRESS NAIC NO: 18058 CONTACT PERSON AND ADDRESS Philadelphia Indemnity Ins Company Propel Insurance One Bala Plaza Suite 100 Seattle Commercial Insurance Bala Cynwyd, PA 19004-1403 925 4th Ave, Suite 3200 Seattle, WA 98104 om IF MULTIPLE COMPANIES, COMPLETE SEPARATE FORM FOR EACH 866 577-1326 aDORIEss: Debbi.Hodges-Creed@propelinsurance. aC No , CODE: SUB CODE: POLICY TYPE AGENCY Package CUSTOMER ID #: 138854 LOAN NUMBER POLICY NUMBER NAMED INSURED AND ADDRESS PHPK1690600 Hyder and Company EFFECTIVE DATE EXPIRATION DATE 1649 Capalina Road #500 San Marcos, CA 92069 CONTINUED UNTIL 08/01/2017 08/01/2018 TERM INATEDIFCHECKED ADDITIONAL NAMED INSURED(S) THIS REPLACES PRIOR EVIDENCE DATED: PROPERTY INFORMATION Use REMARKS on Page 2, if more space is required IXI BUILDING OR [J BUSINESS PERSONAL PROPERTY LOCATION/DESCRIPTION Location #42 42800 Washington Street Bermuda Dunes, CA 92203 Washington Street Apartments THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. rr)\/FRAr;F INF(IRMATIr)N D-11 a inim corn I 1 ❑Heir f I n An X I QD-Ai COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE: $ See Below**** See Below**** DED: $5,000 YES NO N/A ® BUSINESS INCOME ® RENTAL VALUE X If YES, LIMIT: $25,196,818 Actual Loss Sustained; # of months 12 BLANKET COVERAGE X If YES, indicate value(s) reported on property identified above: $ TERRORISM COVERAGE X Attach Disclosure Notice / DEC IS THERE A TERRORISM -SPECIFIC EXCLUSION? X IS DOMESTIC TERRORISM EXCLUDED? X LIMITED FUNGUS COVERAGE X If YES, LIMIT: $15,000 DED: $5,000 FUNGUS EXCLUSION (IF "YES", specify organization's form used) X REPLACEMENT COST X AGREED VALUE X COINSURANCE X If Yes, % EQUIPMENT BREAKDOWN (If Applicable) X If YES, LIMIT: $373,952,181 DED: $5.000 ORDINANCE OR LAW -Coverage for loss to undamaged portion of bldg X If YES, LIMIT: BIdg.Limit DED: $5,000 Demolition Costs X If YES, LIMIT: 10% of Bldg. DED: $5,000 Incr. Cost of Construction X If YES, LIMIT: 100FBLDG DED: $5,000 EARTH MOVEMENT (If Applicable) X If YES, LIMIT: DED: FLOOD (If Applicable) X If YES, LIMIT: DED: WIND/HAIL (If Subject to Different Provisions) If YES, LIMIT: DED: PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGE HOLDER PRIOR TO LOSS CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST LENDERS LOSS PAYABLE CONTRACT OF SALE See Remarks LENDER SERVICING AGENT NAME AND ADDRESS VMORTGAGEE X X NAME AND ADDRESS USDA Rural Development; Moreno Valley Office 22690 March Memorial Drive, Suite #280 AUTHORIZED REPRESENTATIVE Moreno Valley, CA 92553-9035 ACORD 28 (2011/11) S 146583 Page 1 of 2 © 2003-2011 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD RRL00 EVIDENCE OF COMMERCIAL PROPERTY INSURANCE REMARKS - Including Special Conditions (Use only if more space is required) ****Blanket Coverage Information**** Blanket #1 Building Amt: $347,121,063 Blanket #2 Business Personal Property Amt: $1,261,000 Blanket #3 BI/EE Including Rental Value Amt: $25,196,818 ACORD 28 (2011/11) S 146583 Page2 of 2 RRL00