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Corporte Fund for Housing/Miraflores 09RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: La Quinta Redevelopment Agency P.O. Box 1504 La Quinta, California 92247 Attention: Executive Director DOC`# 2009-0666172 12/29/2009 08:00R Fee:NC Page 1 of la Recorded in Official Records County of Riverside Larry W. Ward Assessor, County Clerk & Recorder III 1II11111111II111111III 111111111 1111 S R U PAGE SIZE DA MISC LONG RFD j COPY 8 M A L 465 426 PCOR NCOR SMF EXAM a UNI 0U2. ;;gp pP N�i*& CC, T: CTY tnxempt trom Recordation Fee per Gov. Code § 27383) AFFORDABLE HOUSING IMPLEMENTATION AGREEMENT Eoltfl Pf (SENIOR APARTMENTS DEVELOPMENT) This Affordable Housing Implementation Agreement (Senior Apartments Development) ("Implementation Agreement') is entered into as o�, , 2009 (the "Effective Date"), by and among LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency"), CORPORATE FUND FOR HOUSING, a California nonprofit public benefit corporation ("Corporate Fund"), and MIRAFLORES, L.P., a California limited partnership ("Developer"). Developer, Corporate Fund and Agency are hereinafter collectively referred to as the "Parties." RECITALS: A. Developer is the fee owner of that certain real property located in the City of La Quinta, County of Riverside, State of California, legally described in Exhibit "A", which is attached hereto and incorporated herein by this reference (the "Property"). The Property is developed with a senior affordable housing rental development (the "Project'). B. Agency and Developer are parties to that certain Affordable Housing Agreement dated December 20, 2000 (the "AHA"), as amended and assigned by that certain Assignment and Assumption of Affordable Housing Agreement (Senior Apartments Development), dated June 11, 2001 (the "Assignment'), and as further amended by that certain First Amendment to Affordable Housing Agreement (Senior Apartments Development) (the "First Amendment'). The AHA, as amended and assigned by the Assignment and as further amended by the First Amendment, is hereinafter referred to as the "AHA." C. Pursuant to the AHA, the Agency provided "Agency Assistance" (as defined in the AHA), in the amount of Nine Million Five Hundred Thousand Dollars ($9,500,000) towards development of the Project. The AHA requires Developer to repay the Agency Assistance pursuant to that certain Replacement Promissory Note, dated April 1, 2002 (the "Existing Note"). Repayment under the Existing Note is secured by that certain Replacement Deed of Trust and Security Agreement with Assignment of Rents and Agreements, executed by Developer as 112/015610-0026 985899.05.11/ 3/09 '1- Trustor, and recorded on April 3, 2002, as Instrument No. 2002-171478, in the Official Records of Riverside County (the "Existing Deed of Trust")- D. In connection with Agency providing the Agency Assistance, Developer's predecessor -in -interest in and to the Property entered into with the Agency that certain Regulatory Agreement and Declaration of Covenants, Conditions, and Restrictions, on December 20, 2000, which was recorded on January 26, 2001, as Instrument No. 2001-035561 (the "Agency Regulatory Agreement"). Upon Developer's acquisition of the Property on or about June 11, 2001, Developer assumed all of the obligations of the "Participant" under the Agency Regulatory Agreement. E. The Parties now wish to (i) clarify that the Agency Assistance was intended to be provided in the form of a grant from the Agency rather than in the form of a loan, and (ii) restructure the AHA and related documents to effect the same. In connection with such restructuring, Developer has directed the Agency to restructure the transaction as a grant to the Corporate Fund instead of as a grant to the Developer. Simultaneously with such grant, the Corporate Fund will loan the Agency Assistance to the Developer. To simplify the documentation involved in effecting this transaction, Developer has requested that Agency assign the Existing Note and Existing Deed of Trust to the Corporate Fund. F. To accomplish the restructuring, the Parties now desire to provide for (i) Agency's assignment of the Existing Note and Existing Deed of Trust to the Corporate Fund pursuant to an assignment and assumption agreement in the form attached hereto and incorporated herein as Exhibit "B" (the ("Assignment Agreement"); (ii) the repayment by Agency to the Corporate Fund of the first payment made by Developer to Agency under the Existing Note, plus interest; and (iii) the Developer's deposit of a certain portion of Developer's net operating income into a new Project account used to fund Project improvements, social programs, and amenities. AGREEMENT In consideration of the foregoing Recitals, which are incorporated herein by this reference, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties hereto agree as follows: 1. Agency's Grant and Assignment to Corporate Fund. Agency hereby states that the Agency Assistance was intended to be a grant provided to the Corporate Fund. Concurrently with the execution hereof, the Agency and the Corporate Fund shall execute the Assignment Agreement. The Parties acknowledge and agree that notwithstanding the execution by Agency and the Corporate Fund of the Assignment Agreement, (i) the intention of the Parties is for the Agency to grant the Agency Assistance to Corporate Fund and for the Corporate Fund to simultaneously loan the Agency Assistance to the Developer, (ii) the effect of this transaction on the Agency is cancellation of the Existing Note, and (iii) said execution is solely for the purpose of simplifying the documentation involved in this transaction and avoiding the necessity of preparing and executing new loan documentation between Developer and the Corporate Fund. 882,015610-0026 985899,05 a11/23/09 -2- 2. Agency's Return of Cash Flow Payment. Within fifteen days after the Effective Date, the Agency shall pay to the Corporate Fund from its Low and Moderate Housing Fund the sum of Fifty -Six Thousand One Hundred Ninety -Eight Dollars ($59,560.64) (the "Agency Payment"), which is the sum of the one (1) Cash Flow payment that has been made by Developer to Agency under the Existing Note plus three percent (3%) interest. 3. Project Enhancement Account. 3.1. Establishment of Project Enhancement Account. Within fifteen (15) days after the Effective Date, Developer shall establish a new account for the Project (the "Project Enhancement Account"). Commencing as of calendar year 2008, in each calendar year in which there is positive "Cash Flow" (as the term "Cash Flow" is defined below), Developer shall deposit SEVENTY FIVE PERCENT (75%) of that calendar year's Cash Flow into the Project Enhancement Account. With the exception of the yearly payment for calendar year 2008, each such yearly payment shall be due not later than the April I" that follows the end of each such calendar year, or, if such April 1' is a Saturday, Sunday, or legal holiday, the payment shall be due the next succeeding business day. Developer shall deposit into the Project Enhancement Account the yearly payment for calendar year 2008 within fifteen (15) days after Developer establishes the Project Enhancement Account. For purposes of this Section 3.1, the term "Cash Flow" means: (A) all income derived by Developer from the Property including, without limitation, all tenant rent, all rental subsidy payments made by governmental agencies, and income from any source related to Developer's owning, leasing, maintenance, and operation of the Property and improvements thereon ("Gross Income"); less (B) (i) expenses actually and reasonably incurred by Developer in owning, leasing, operating, maintaining, and repairing the Property (excluding insurance proceeds and any costs or expenses paid or reimbursed by third parties), including without limitation, insurance, taxes, maintenance and repair expenses for the Property, services to the residents specified in Developer's application to the State of California Tax Credit Allocation Committee, capital improvements not funded from the "Capital Replacement Reserve" (as that term is defined below) (the Capital Replacement Reserve shall be the first source of funds used by Developer for capital improvements to the Property), management costs, an annual Issuer Fee paid to Agency of one eighth of a percent (0.125%) of the outstanding balance on the "Senior Note" (as that term is defined below) (which shall be paid prior to the payment of any partnership management fee or any general partner or managing general partner asset management fee), a general partner or managing general partner asset management fee not to exceed one and a quarter percent (1.25%) of Gross Income, a partnership management fee not to exceed Ten Thousand Dollars ($10,000) per calendar year, developer fees, reasonable accounting and legal fees, and cost of debt service on loans secured by deeds of trust recorded against the Property as of the Effective Date, and any loans recorded after the Effective Date if such loans are approved in advance by the Agency; (ii) the net amount of deposits, if any, into the Capital Replacement Reserve; and (iii) a property management fee which shall not exceed six percent (6%) of the Gross Income generated by the Property. Cash Flow shall be calculated on an accrual basis without regard to any carry-over of profit or loss from any prior calendar year. As used herein, the terms "Capital Replacement Reserve," shall have the meaning ascribed thereto in the Agency Regulatory Agreement; and the term "Senior Note" shall mean, 882/015610-0026 9 8 5899.05 .11/23/09 -3- collectively, (i) that certain Multifamily Note in the principal amount of $5,000,000 (including any addenda, the "Variable Rate Note") and (ii) that certain Multifamily Note in the principal amount of $3,000,000 (including any addenda, the "Fixed Rate Note"), issued in connection with the Project financing and payable to Agency as assigned to Wells Fargo Bank, National Association, as Trustee and Fannie Mae. 3.2. Use of Proiect Enhancement Account Funds. Funds in the Project Enhancement Account shall be used only for the following purposes: To upgrade or expand existing amenities or facilities at the Project or at another affordable rental housing development located in the City of La Quinta and owned by Developer or one of the principals of Developer (a "Related Development"); To construct or install new amenities at the Project or at a Related Development; To upgrade or expand existing social service programs at the Project or at a Related Development; To establish new social service programs at the Project or at a Related Development; Other enhancements or capital improvements to the Project, to a Related Project, or to any other affordable rental housing development located in the City of La Quinta, which has been approved, in writing, by the Agency. 3.3. Annual Updates to the City. On or before each April l during the fifty-five (55) year term of the Agency Regulatory Agreement, Participant shall provide Agency with an accounting of the Project Enhancement Account, including the account balance as of the date of the report, and the expenditures of Project Enhancement Account funds during the prior calendar year. 3.4. Corporate Fund's Acknowledgement Regarding Project Enhancement Account. The Corporate Fund acknowledges that the funds required hereunder to be deposited into the Project Enhancement Account are the same funds that are required to be paid by Developer to the Corporate Fund under the Existing Note. The Corporate Fund agrees that Developer's deposit of such funds into the Project Enhancement Account and expenditure consistent with the terms hereof shall constitute payment by Developer to the Corporate Fund under the Existing Note. 4. Time of Essence. Time is of the essence in the performance of this Implementation Agreement. Defaults: Remedies 5.1. Legal Actions. In addition to any other rights or remedies, any party may, subject to Section 5.6 below, institute legal action to cure, correct or remedy any default, or to obtain any other remedy consistent with the purposes of this Implementation Agreement. Such legal actions 882/015610-0026 985899.05 al 1/23/09 -4- must be instituted and maintained in the Superior Court of the County of Riverside, State of California, or in any other appropriate court in that county. 5.2. Applicable Law. The internal laws of the State of California shall govern the interpretation and enforcement of this Implementation Agreement, without regard to conflict of law principles. 5.3. Acceptance of Service of Process. In the event that any legal action is commenced by the Developer or the Corporate Fund against Agency, service of process on Agency shall be made by personal service upon the Executive Director or Agency Secretary, or in such other manner as may be provided by law. In the event that any legal action is commenced by Agency against the Developer and/or the Corporate Fund, service of process on the Developer and/or the Corporate Fund shall be made by personal service upon the Developer and/or the Corporate Fund or in such other manner as may be provided by law, and shall be valid whether made within or outside the State of California. 5.4. Attorneys' Fees. In the event that a party to this Implementation Agreement brings an action against any other party hereto by reason of the breach of any obligation arising out of this Implementation Agreement, the prevailing party in such action shall be entitled to recover from the other party(ies) expert witness fees, and its reasonable attorney's fees and costs. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, including the conducting of discovery. 5.5. Rights and Remedies are Cumulative. Except as otherwise expressly stated in this Implementation Agreement, the rights and remedies of the Parties are cumulative, and the exercise by any party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by another party. 5.6. Defaults. if any party defaults with regard to any of the provisions of this Implementation Agreement, the nondefaulting party shall serve written notice of such default upon the defaulting party. If the default is not cured or commenced to be cured within thirty (30) days after the defaulting party's receipt of such notice, the nondefaulting party may thereafter (but not before) commence an action for damages against the defaulting party with respect to such default; provided, however, that Developer's and the Corporate Fund's damages shall be jointly, severally, and collectively limited to the Agency Payment and in no event shall Developer and/or the Corporate Fund be entitled to lost profits, consequential damages, or any damages of such like kind or nature. 6. Executive Director Authority. The Agency hereby delegates to the Executive Director the authority to execute all documents and agreements required to implement this Implementation Agreement. 7. Effect of Implementation Agreement on AHA. Except as set forth herein, the terms and conditions of the AHA shall remain in full force and effect. 182/015610-0026 985899,05 al 1/23/09 -5- 8. Counterparts. This Implementation Agreement may be fully executed in counterparts, each of which shall constitute one original and all of which shall be one and the same instrument. 9. Nonliability of Agency and City Officials. No member, official, officer, employee, agent, representative, or consultant of Agency or the City of La Quinta shall be personally liable to Developer or the Corporate Fund, or any successor in interest of either of said entities, in the event of any default or breach by Agency or City or for any amount which may become due to Developer or the Corporate Fund to any successor of either of such entities, or on any obligations under the terms of this Implementation Agreement. 10. Waivers. All waivers of the provisions of this Implementation Agreement must be in writing and signed by the appropriate authorities of Agency, the Corporate Fund, and/or Developer. [end — signature page follows] 882/015610-0026 9 8 5899.05 .11/23/09 -6- IN WITNESS WHEREOF, the Parties hereto have entered into this Implementation Agreement as of the date first above written. "Developer" MIRAFLORES, L.P., a California limited partnership By: LINC HOUSING CORPORATION, a California nonprofit public benefit corporation, its wlna ' General Partner unter L. ohnson, its President "Corporate Fund" CORPORATE FUND FOR HOUSING, California no blic benefit corporation y. Hunter L. Johnson President and Chief Executive Officer "Agency" LA QUINTA REDEVELOPMENT AGENCY, public bo�e a�oli ' B � Thomas P. Genovese Executive Director APPROVED AS TO FORM: RUTTAAN & TUCKER, LLP Attorneys for the La Quinta Redevelopment Agency 882/015610-0026 985899.05 al1/23/09 State of California ) County of midee-444P"— ) 5 5 2oo4 before me ,yz'tl fd, On-- ¢ Ce BA-b2.r � 1 , insert name and title of the officer) Notary Public, personally appeared er `• J04(-S who proved to me on the basis of satisfactory evidence to be the persor4s�mhose namp(s) isT;? subscribed to the within instrument and acknowledged to me that he/§Ileltheyexecuted the same in his/berg authorized capacity(, and that by his/herhheir signature(rMn the instrument the persoU(e' ,, or the entity upon behalf of which the persoa(T acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Seal) State of California fib County ofiaerside— ra.. e ELIZABETH A. DAVIS G COMMISSIONS 1764282p Wary Public - CSIibmia V ORANGE COUNTY NW21 2 My Comm. EM M AuS. 28, 20 On�cew.�bw /S_ 2009 before me, & rza e r A S L nsea name and title of the officer) Notary Public, personally appeared Err e A� s r� who proved to me on the basis of satisfactory evidence to be the person(&) -whose name,Kis/3F' subscribed to the within instrument and acknowledged to me that he/she4vy executed the same in his/beTll4c2r authorized capacity(iesj, and that by his/her?SIe signaturekR) nn the instrument the persoriksj, br the entity upon behalf of which the persqu(e)tcted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official cal. ELIZABETH A. DAVIS • COMMISSIONS 1764282 0 Signature.a—(deal) O NOWry Public CaM1bmfS 9 ORANGE COUNTY My Cantu.Etpil Aup. 28.201/ 112/015610-0026 985899.05 at 1/23/09 -g' State of California County of Riverside On tall � lapp9 before me, nn ,n,L, name and title of Ilic officer) Notary Public. uersonally anneared Nu.- � &o.tr t' . Ol� who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) I "t 882/015610-0026 985899.05 M1/23/09 -9- plMtls fMf Commbala+ • 1697M :j Notary public • CditM O 2 Riverside CouNN My Comm - n Oct 16.201 r � I�15 IA &v61��1 Contra . 4 11b9 ri ct (P 1 EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY The land referred to herein is situated in the State of California, County of Riverside, City of La Quinta, described as follows: REMAINDER PARCEL, OF TRACT 28601-1, AS SHOWN BY MAP IN FILE IN BOOK 278, PAGES 86 THROUGH 90, INCLUSIVE, OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. 182/015610-0026 995899.05 a] 1/23/09 EXHIBIT "A" EXHIBIT `B" ASSIGNMENT AGREEMENT [See following pages] 89Z 015610-0026 985899,05 al 1/23/09 EXHIBIT "B" Recording Requested By And When Recorded Mail To: LA QUINTA REDEVELOPMENT AGENCY 78-495 Calle Tampico La Quinta, California 92253 Attention: Executive Director Space above this line for Recorder's use only This Assignment and Assumption is recorded at the request and for the benefit of the La Quinta Redevelopment Agency and is exempt from the payment of a recording fee pursuant to Government Code Section 27383. ASSIGNMENT AND ASSUMPTION AGREEMENT This ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Agreement") is entered into as of this _ day of , 2009 ("Effective Date"), by and between LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency") and CORPORATE FUND FOR HOUSING, a California nonprofit public benefit corporation ("Assignee"), and with reference to the following facts: RECITALS A. Mira Flores, L.P., a California limited partnership, is the fee owner of that certain real property located in the City of La Quinta, County of Riverside, State of California, legally described in Exhibit "A", which is attached hereto and incorporated herein by this reference (the "Property"). The Property is developed with a senior affordable housing rental development (the "Project'). B. Agency and Developer are parties to that certain Affordable Housing Agreement dated December 20, 2000 (the "AHA"), as amended and assigned by that certain Assignment and Assumption of Affordable Housing Agreement (Senior Apartments Development), dated June 11, 2001 (the "Assignment'), and as further amended by that certain First Amendment to Affordable Housing Agreement (Senior Apartments Development) (the "First Amendment"). The AHA, as amended and assigned by the Assignment and as further amended by the First Amendment, is hereinafter referred to as the "AHA." C. Pursuant to the AHA, the Agency provided "Agency Assistance" (as defined in the AHA), in the amount of Nine Million Five Hundred Thousand Dollars ($9,500,000) towards development of the Project. The AHA requires Developer to repay the Agency Assistance pursuant to that certain Replacement Promissory Note, dated April 1, 2002 (the "Existing Note"). Repayment under the Existing Note is secured by that certain Replacement Deed of Trust and Security Agreement with Assignment of Rents and Agreements, executed by Developer as Trustor, and recorded on April 3, 2002, as Instrument No. 2002-171478, in the Official Records of Riverside County (the "Existing Deed of Trust"). 882/015610-0026 Page 1 of 2 985899 a 05 al 1/23/09 g D. Concurrently with the execution hereof, Agency, Developer, and Assignee entered into that certain Affordable Housing Implementation Agreement (Senior Apartments Development), pursuant to which they (i) clarified that the Agency Assistance was intended to be provided in the form of a grant from the Agency rather than in the form of a loan, and (ii) agreed to restructure the AHA and related documents to effect the same. In connection with such restructuring, Developer directed the Agency to restructure the transaction as a grant to the Assignee. instead of as a grant to the Developer, such that the Assignee could then loan the Agency Assistance to the Developer. To simplify the documentation involved in the transaction and avoid the processing of additional loan documentation, Developer requested that Agency assign the Existing Note and Existing Deed of Trust to the Assignee. E. Agency now desires to assign to Assignee, and Assignee desires to accept from Agency, all of the rights and related obligations of Agency under the Existing Note and Existing Deed of Trust (collectively, the "Agency Documents"). AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and of the mutual promises of the parties hereto and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties mutually agree as follows: I. Assignment. Agency hereby assigns and delegates to Assignee all of Agency's right, title, and interest in and obligations under the Agency Documents. 2. Acceptance of Assignment. Assignee hereby accepts the above assignments and hereby assumes, agrees, and undertakes to perform all of the obligations, covenants, and agreements of Agency pursuant to the Agency Documents. Any reference to Agency in the Agency Documents shall be deemed a reference to Assignee. 3. Release of Agency. As of the Effective Date, Agency shall be released from all obligations imposed under the Agency Documents. 4. Effective Date. This Agreement shall be effective as of the Effective Date listed in the preamble hereof. 5. Representations. Agency hereby represents and warrants that it has not previously assigned, pledged, hypothecated or otherwise transferred any of its rights under the Agency Documents. 6. California Law. This Agreement shall be governed by and interpreted in accordance with the internal laws of the State of California, without regard to conflict of law principles. 7. Invalidity. Any provision of the Agreement which is determined by a court to be invalid or unenforceable shall be deemed severed herefrom, and the remaining provisions shall remain in full force and effect as if the invalid or unenforceable provision had not been a part hereof. 882/015610-0026 Page 2 of 2 985899.05 a]1/23/09 g 8. Headings. The headings used in this Agreement are for convenience only and shall be disregarded in interpreting the substantive provisions of this Agreement. 9. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. [End — Signature page follows] 882/015610-0026 Page 3 of 2 985899,05 al 1/23/09 g IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. ATTEST: Agency Secretary APPROVED AS TO FORM: RUTAN & TUCKER, LLP Attorneys for the La Quinta Redevelopment Agency "Agency" LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic Thomas P. Genovese Executive Director "Assignee" CORPORATE FUND FOR HOUSING, a California nonprofit public benefit corporation Title: 882/015610-0026 Page 4 of 2 985899.05 .11/23/09 g State of California County of Riverside On , before me, (insert name and title of the officer) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) State of California County of Riverside before me, (insert name end title of the officer) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 882/015610-0026 Page 5 of 2 985899.05 a] 123/09 ii CONSENT TO RECORDATION MIRA FLORES, L.P., a California limited partnership ("Owner"), owner of the fee interest in the real property legally described in Attachment No. 1 hereto, hereby consents to the recordation of the foregoing Assignment and Assumption Agreement against said real property. MIRAFLORES, L.P., a California limited partnership By: LINC HOUSING CORPORATION, a California nonprofit public benefit corporation, its Managing General Partner Hunter L. Johnson, its President State of California County of Riverside On , before me, (insert name and title of the officer) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 882/015610-0026 Page 6 of 2 985899.05 a11/23/09 g EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY The land referred to herein is situated in the State of California, County of Riverside, City of La Quinta, described as follows: REMAINDER PARCEL, OF TRACT 28601-1, AS SHOWN BY MAP IN FILE IN BOOK 278, PAGES 86 THROUGH 90, INCLUSIVE, OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. 882/015610-0026 Page 7 of 2 985899.05 al 1123/09 g Recording Requested By And When Recorded Mail To: LA QUINTA REDEVELOPMENT 78-495 Calle Tampico La Quinta, California 92253 Attention: Executive Director DOC # 2009-0666173 12/29/2009 08:00A Fee:NC Page 1 of 7 Recorded in Official Records County of Riverside Larry W. Ward Assessor, County Clerk & Recorder 1111111111111111111111111111111111111111111111111111111 AGENCY S R U PAGE I SIZE I DA I MISC LONG RFD I COPY 465 426 PCOR NCOR SMF NCHG �ElXl,AM 'rM^''nA� 1` C14 �(1L & CQ.., T: CTY UNI This Assignment and Assumption is recorded at the request and for the benefit of the La Quinta Redevelopment Agency and is exempt from the payment of a recording fee pursuant to Government Code Section 27383. ASSIGNMENT AND ASSUMPTION AGREEMENT 062 This ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Agreement") is entered into as of this%S day of T,kL , 2009 ("Effective Date"), by and between LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ("Agency") and CORPORATE FUND FOR HOUSING, a California nonprofit public benefit corporation ("Assignee"), and with reference to the following facts: RECITALS A. Mira Flores, L.P., a California limited partnership, is the fee owner of that certain real property located in the City of La Quinta, County of Riverside, State of California, legally described in Exhibit "A", which is attached hereto and incorporated herein by this reference (the "Property"). The Property is developed with a senior affordable housing rental development (the "Project'). B. Agency and Developer are parties to that certain Affordable Housing Agreement dated December 20, 2000 (the "AHA"), as amended and assigned by that certain Assignment and Assumption of Affordable Housing Agreement (Senior Apartments Development), dated June 11, 2001 (the "Assignment'), and as further amended by that certain First Amendment to Affordable Housing Agreement (Senior Apartments Development) (the "First Amendment'). The AHA, as amended and assigned by the Assignment and as further amended by the First Amendment, is hereinafter referred to as the "AHA." C. Pursuant to the AHA, the Agency provided "Agency Assistance" (as defined in the AHA), in the amount of Nine Million Five Hundred Thousand Dollars ($9,500,000) towards development of the Project. The AHA requires Developer to repay the Agency Assistance pursuant to that certain Replacement Promissory Note, dated April 1, 2002 (the "Existing Note"). Repayment under the Existing Note is secured by that certain Replacement Deed of Trust and Security Agreement with Assignment of Rents and Agreements, executed by Developer as Trustor, and recorded on April 3, 2002, as Instrument No. 2002-171478, in the Official Records of Riverside County (the "Existing Deed of Trust'). 882/015610-0026 985899.05.11123/09 Page 1 of 2 D. Concurrently with the execution hereof, Agency, Developer, and Assignee entered into that certain Affordable Housing Implementation Agreement (Senior Apartments Development), pursuant to which they (i) clarified that the Agency Assistance was intended to be provided in the form of a grant from the Agency rather than in the form of a loan, and (ii) agreed to restructure the AHA and related documents to effect the same. In connection with such restructuring, Developer directed the Agency to restructure the transaction as a grant to the Assignee instead of as a grant to the Developer, such that the Assignee could then loan the Agency Assistance to the Developer. To simplify the documentation involved in the transaction and avoid the processing of additional loan documentation, Developer requested that Agency assign the Existing Note and Existing Deed of Trust to the Assignee. E. Agency now desires to assign to Assignee, and Assignee desires to accept from Agency, all of the rights and related obligations of Agency under the Existing Note and Existing Deed of Trust (collectively, the "Agency Documents"). AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and of the mutual promises of the parties hereto and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties mutually agree as follows: 1. Assignment. Agency hereby assigns and delegates to Assignee all of Agency's right, title, and interest in and obligations under the Agency Documents. 2. Acceptance of Assignment. Assignee hereby accepts the above assignments and hereby assumes, agrees, and undertakes to perform all of the obligations, covenants, and agreements of Agency pursuant to the Agency Documents. Any reference to Agency in the Agency Documents shall be deemed a reference to Assignee. 3. Release of Agency. As of the Effective Date, Agency shall be released from all obligations imposed under the Agency Documents. 4. Effective Date. This Agreement shall be effective as of the Effective Date listed in the preamble hereof. 5. Representations. Agency hereby represents and warrants that it has not previously assigned, pledged, hypothecated or otherwise transferred any of its rights under the Agency Documents. 6. California Law. This Agreement shall be governed by and interpreted in accordance with the internal laws of the State of California, without regard to conflict of law principles. 7. Invalidity. Any provision of the Agreement which is determined by a court to be invalid or unenforceable shall be deemed severed herefrom, and the remaining provisions shall remain in full force and effect as if the invalid or unenforceable provision had not been a part hereof. 982/015610-0026 985899,05 al1/23/09 Page 2 of 2 8. Headings. The headings used in this Agreement are for convenience only and shall be disregarded in interpreting the substantive provisions of this Agreement. 9. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. [End — Signature page follows] 112/015e10-002e 985899.05 al 1/23,09 Page 3 of 2 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. APPROVED AS TO FORM: RUT N & TUCKER, LLP Attorneys for the La Quinta Redevelopment Agency "Agency" LA QUINTA REDEVELOPMENT AGENCY, public body, corporate and pol' is Byy Thomas P. Genovese Executive Director "Assignee" CORPORATE FUND FOR HOUSING, California none[ ft pubfic,benefit corporation Title: i unter L. Johnson Pe esiurni and C ueecnxcCu[ivc-O Officer 982/0156104026 985899.05 a11/23/09 Page 4 of 2 State of California County of Riverside On tall (at,\M9 before me, D (>:io tame and title of the Icer) Notary Public, personally anneared 94.. I.S-W P. who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signat State of California County of44vo s dw Eat2— oro+ a Seal 2 Colalan III16077N (Seal) Notary Public - CditMi0ide WenCounty Mmm y Comm. Expires Oct 16, 2011 7�ef��llG %�4h�@4 COmAwk 169?79(m &C? . Doi-. tto,aolo On-Dece oA 6�5— 15, 2009 before me, Eli 2-A.�"- 4' A- u IJ (insen name and title of the officer) Notary Public, personally appeared w �. Jo l..is ova who proved to me on the basis of satisfactory evidence to be the person(krwhose nameW is/arm subscribed to the within instrument and acknowledged to me that heL%hc1k-3r-executed the same in his/herllkq authorized capacity4esj 8nd that by his/her/SLr signature4Nj't)n the instrument the persotl(a-Ybr the entity upon behalf of which the persouKacted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. 4,Slpature— ELIZABFTHX DAVIS _ COMMISSION# 178e282 D = Q j Nowry WOIk - CalibmW y O ORANGE COUNTY (Seal) My Comm. Eyq ea Au#. 2a. 2011 882/015610-0026 985999.05 eI V27/09 Page 5 of 2 CONSENT TO RECORDATION MIRA FLORES, L.P., a California limited partnership ("Owner"), owner of the fee interest in the real property legally described in Attachment No. I hereto, hereby consents to the recordation of the foregoing Assignment and Assumption Agreement against said real property. MIRAFLORES, L.P., a California limited partnership By: LINC HOUSING CORPORATION, a California no fi benefit corporation, it M a ing Ge eral Partner By: unter L. Johnson, its President State of California ) County of+versiAe On 15, Tou9 before me, k`7r4 . bA.I.AS (insert name and title of the officer) Notary Public, personally appeared �J'e✓ L • -/,)" J: who proved to me on the basis of satisfactory evidence to be the person(g)-Whose nam%(<is/area subscribed to the within instrument and acknowledged to me that he4slii�xecuted the same in his/betlA3er authorized capacity(ies)r and that by his/hertFAci1'signature(s)'bn the instrument the persotl(s)'or the entity upon behalf of which the person(sj acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ELRAeEnI A. OAvs G COMMISSION#1M4282n WITNESS my hand and official seal. 3 "°"^ P °1'0a0�"" a tr ORANGE COONTY _ MY Comm. EivAm Aug. 28.2011 Signature v (Seal) 882/015610-0026 Page 6 of 2 985899.05 al I/23/09 g EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY The land referred to herein is situated in the State of California, County of Riverside, City of La Quinta, described as follows: REMAINDER PARCEL, OF TRACT 28601-1, AS SHOWN BY MAP IN FILE IN BOOK 278, PAGES 86 THROUGH 90, INCLUSIVE, OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. 882/015630-0026 985899.05.11/23/09 Page 7 of 2