HomeMy WebLinkAboutAltimus Jeffrey - 122 N College Ave. OPA - 20101/-00a IA
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RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO:
Redevelopment Agency of the City of Fresno
2344 Tulare St., Suite 200
2 Fresno, Ga. 93721
E Attention: ExeCntive Director
E8 [SPACE ABOVE THE USE FOR RECORDERS WE)
a This Agreement Is recorded at the request and for Ne benefit of the
Redevelopment Agency of the City of Fresno and is exempt from the payment of a
recording fee pursuant to Government Code Section 6103.
REDEVELOPMENT AGENCY OF THE
CITY OF FRESNO
By.
Its: Executive Director
Da es:
OWNER PARTICIPATION AGREEMENT
by and beivreen
Redevelopment Agency of the City of Fresno,
a public body, corporate and politic
and
Jeffrey Altimus, an Individual
122 North Collage Avenue
Residential Rental Project
Fresno, CA 93701
F V G[5:lkT:(M
1.
Exhibit A:
Legal Description of Pmper y
2.
Exhibit B:
Schedule of Performance/Payment Schedule
3.
Exhibit C:
BudgeVFlnancial Plan
4.
Exhibit D:
Certificate of Completion
5.
Exhibit E:
Scope of Work
6.
Exhibit F:
Regulatory Agreement and Declamtion of Covenants and
Restrictions
7.
Exhibit G:
Promissory Note
6.
Exhibit H:
Deed of Trust
9.
Exhibit I:
Certificate of Continuing Program Compliance
10.
Exhibit J:
Income Certification Fom
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OWNER PARTICIPATION AGREEMENT
THIS OWNER PARTICIPATION AGREEMENT ("Agreari is entered as of
the Effective Dale (defined in this Agreement), between the REDEVELOPMENT
AGENCY OF THE CITY OF FRESNO, a public body, corporate and polibc, ("Agency)
and JEFFREYALTIMUS, an Individual ("Owner').
The parties enter this Agreement based on the following fads, understandings,
and intentions:
A. By authority granted under California Redevelopment Law (the "Law'), the
Agency has prepared and is responsible for carrying out Me redevelopment plan for the
Freeway -99 Golden State Corridor Redevelopment Project Area (the "Pian').
B. To the extent provided in or allowed by the Law Including Califemla Health and
Safety Code ("Cal. HAS.C.') Sections 33334.2 and 33449, as provided by joint
resolutions of the Fresno City Council and the Agency, findings and determinations
pursuant to Cal. HAS.C. Section 33334.2.(g), the Plan and limited to the terms and
conditions therein, the Agency may make improvements upon and/or construct and
improve structures in order to provide housing for persona and families of low or
moderate income. including related on-sBe and oft -we Improvements, by variously (1)
allowing the use of Housing Set Aside Funds outside the Airport Area Revitalcation,
Cental Business District, Cental City Commercial Revitalization, Chinatown Expanded,
Convention Center, Freeway 99 -Golden State Corridor, FruiVChumh, Mariposa,
Reeding Business Park, South Fresno Industrial Revdalleation, South Van New
Industrial, Southeast Fresno Revitalization, Wert Fresno 1, West Fresno II, and West
Fresno III redevelopment plans; (2) restricting the use of the Housing Set Aside Funds
to certain of the Community Development Block Gant eligible areas of the City; and (3)
placing a priority on the use of the Housing Set Aside Funds from contain Project Areas
to be used either within or adjacent to Me Cental Area or adjacent to contain Project
Areas.
C. Agency administers Me Low and Moderate Income Housing Fund established
pursuant to Cal. HAS. C. Sections 33334.2 at seq.
D. The Agency shall permit owner participation in the redevelopment of property in
the Plan area in conformity with the Plan and all owner participation rules and critena, M
the extent provided by Cal. HAS.C. Sections 33339, 33339 .5, 33380 and 33381.
E. Owner holds all rights, title and interest in fee W the certain real property
described in Exhibit 'A" attached hecto and Incorporated herein (me 'Property'),
including improvements located thereon which shall be improved by Owner as
contemplated by this Agreement and known as the College Apartments located at 122
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North College Avenue, Fresno, California (the "Project'). The Property is located within
the temporal jurisdiction of the Agency.
F. Owner proposes to renovate a residential rental project an the Property
consisting of four (4) residential units. All of the residential units (the "Affordable Unita")
are to be rented and Preserved as Affordable Rental Housing.
G. Owner agrees to undertake Improvements in accordance with the combined
Performance and Payment Schedule described in Exhibit "B" attached hereto and
Incorporated herein (the "Performance and Payment Schedule').
H. To the extent Housing Set Aside Funds will exceed 50 percent of Me cast of
producing the Affordable Units, the Agency has determined based on substantial
evidence, Mat the use of the Funds is necessary because the Agency or Owner of the
Affordable Units has made a good faith attempt but been unable to obtain commercial
or private means of financing Me units at the same level of affordability and quantity.
The Project Is not feasible and cannot be completed and restricted to the affordable
rental housing purposes and uses provided under Law and this Agreement absent the
financial support of the Agency.
I. The Property and associated on site and off site Improvements are collectively
retained to in this Agreement as the "Improvements' or the'Projecl,' all of which will
directly benefit the Property and the Plan area, cannot otherwise be reasonably paid for
or financed solely through private financing, and are necessary to eliminate blight.
J. Agency is willing to assist Owner's construction of the Affordable Units by making
avallable to Owner as a loan certain Housing Set Aside (Tax Increment) Funds In the
amount of Sixly Nina Thousand Dollars ($69,000) (the "Loan') upon the terms and
conditions specified this Agreement.
K. The Loan shall be paid in accordance with Me schedule set out in Exhibit "e" to
the Agreement and repaid in accordance with the promissory note a specimen of which
is attached hereto as Exhibit "G." The Loan and Performance of the affordability and
other covenants and restrictions set font in this Agreement shall be evidenced by this
Agreement, the Regulatory Agreement and Declaration of Covenants and Restrictions,
attached hereto as Exhibit "F;and Dead of Trust, attached hereto as Exhibit "H," which
shall be recorded against and run with and encumber the Property.
L. The Housing and Community Development Commission reviewed the Project
and this Agreement on June 9, 2010, and recommended that Council approve k.
M. The Plan program has been environmentally assessed and has been
determined to be eligible fora Categorical Exemption under Section 15301/Class 1 of
the California Environmental Duality Act (CEOA). Under Section 15301/Class 1,
restoration or rehabilitation of a deteriorated or damaged stmdum to meet current
standards of public health and safely is exempt from CEQA. More specific, the Class 1
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exemption applies to the operation, repair, maintenance, permitting, leasing, licensing,
or minor allocation of existing public or private structures, facilities, mechanical
equipment, or topographical features, Involving negligible or no expansion of use
beyond Nat existing at the time of the lead agency's determination.
This Project is the rehabilitation of an existing fourplex. The building was constructed In
1970 and is approximately 3,520 square feet in two stories on a parcel of 5,750 square
feet. The Owner is acquiring the Property through a foreclosure and will undertake the
rehabilitation of the four (4) residential units. There "do be no change to the existing
use. The financial transaction between the Owner and the Agency for the acquisition
add rehabilitation of the Property will not result in direct or indirect increase In
environmental impacts.
N. Agency has further determined this Project is in the best Interests of, and will
materially contribute to, Plan Implementation. Further, Agency has found the Project: (i)
Will have a positive influence in the Pian Area, and surrounding environs; (II) is in the
vital and best interests of Agency antl the health, safety, and welfare of City residents,
(iii) complies with applicable federal, slate, and local laws and requirements; IN) will
help eliminate blight; (v) will Improve arta preserve the community's supply of low and
moderate Income housing available at affordable rent,. as defined by Cel. H.BS.C.
Sections 50052.5 and 50053, to persons and families of low or moderate Income, as
defined In Cal. H.BS.C. Section 50093 of Code; (vi) will be available to meet the
replacement housing provisions in Cal. H &S. C. Section 33413; (vii) will apply funds
solely within the respective Plan areas except to the extent otherwise provided herein
add allowed by law; (viii) all planning and administrative expenses incurred in pursuit
hereof are necessary for the production, improvement, or preservation of low and
moderate income housing; fix) will comply with all owner participation miss am criteria
of Agency and the Plan; and, (x) will comply with any and all applicable review and
other requirements of nine City's Historical Preservation Commission.
O. The Owner and the Agency have determined that this Agreement is not subject
to Article XXXIV of the California Constitution.
AGREEMENT
DEFINITIONS. Besides definitions contained elsewhere In this Agreement, the
definitions in this Section will govern the construction, meaning, application and
interpretation of the various terms used in this Agreement.
1.1 "ADA" means the Americans with Disabilities Act of 1990.
1.2 "Affordability Period" means a period of fifty-five (55) years commencing
from the date Agency records the Certificate of Completion.
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1.3 "Affordable Rental Housing" or "Affordable Units" means the Units
available at affordable rant, as defined by Cal. H.BS.C. Section 50052.5
(4), to persons and families of low and moderate Income, as defined in
Cal. H.BS.C. Section 50093 of Cade, consistent with Recite l F above
which requirements shall be enforceable by covenants running with the
Ianc. As used in this Agreement, the term "Affordable Low Income Rerd"
shall mean annual rentals whose amount does Trot exceed the maximum
Percentage of income that can be devoted to rent as set forth by Health 8
Safely Code Section 50053, or its successor. which is currently thirty
percent (30N) of sixty percent (60%) of the Fresno County Median Income
adjusted for the family size appropriate for the Unit.
1.4 "Agency" means the Redevelopment Agency of the City of Fresno, a
public body, corporate and politic, organized and existing under the Law,
and any assignee of or successor to its rights, powers and responsibilities.
1.5 "Agreement' means this Owner Participation Agreement.
1.6 "Budget" means the Budget/Financial Plan for the Project attached hereto
and incorporated herein as Exhibit "C" (the "Budget").
1] "Certificate of Completion" means that Certificate issued in the form
attached as Exhibit "D" to Owner by Agency evidencing completion of the
Project for purposes of this Agreement.
1.8 "City" shall mean the City of Fresno, California, a municipal corporwon.
1.9 "Contlltions Precedent of Agencymeans the conditions precedent to the
effectiveness of this Agreement against the Agency.
1.10 "Day" whether or not capitalized, means a calendar day, unless stated
otherwise.
1.11 "Restrictions" means the affordability restrictions contained in this
Agreement and Exhibit "F" thereto, containing all conditions, covenants,
and restrictions required by the Law, any other applicable laws and
regulations, the Plan, and this Agreement, running with the Property and
the Affordable Units thereon and burdening such for the Affordability
Period.
1.12 "Deed of Trust" shall mean the Dead of Trust recorded against me
Property securing the Loan, as shown in Exhibit "H" of this Agreement.
1.13 "Default" means a party's failure to timely perform any action or covenant
required by this Agreement following notice and opportunity to cure.
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1.14 "Director" means the Executive Director of Agency.
1.15 "Entitlements" mean all permits and fees that the City, County of Fresne,
and other governmental agencies with jurisdiction over the Project the
Improvements or the Property may require.
1.16 "Effective Data" means the date of complete execution of the Agreement
following Agency Board approval thereof.
1.17 "Environmental Laws" means any federal, state, or local law, statute,
ordinance or regulation pertaining to environmental regulation,
contamination or cleanup of any Hazardous Materials or waste including,
without limitation, any state or federal lien or "super lien" law, any
environmental cleanup statute or regulation, or any governmentally
required permit, approval, authorization, license, variance or permission.
1.18 "Funding Source" means the Loan and other funding sources secured by
Owner to construct the Improvements.
1.19 "Financing Plan" means the Budget including sources and uses of funds
sufficient for Owner to complete me Improvements according to the
Performance and Payment Schedule.
1.20"Hazardous Materials" means any substance, material, or waste which Is or
becomes regulated by any local governmental authority, the State of
California, or the United States Government including, without limitation,
any material or substance which Is: (a) definetl as a "hazardous waste,"
"extremely hazardous waste," or "restricted hazardous waste" under
Sections 25115, 25117, or 25122.7, or listed pursuant to Section 25140 of
the California Health and Safety Code, (b) dented as a "hazardous
substance" under Section 25318 of the California Health and Safety Code,
(c) defined as a 'hazardous material," "hazardous substance," or
"hazardous wasteunder Section 25501 of the California Health and
Safety Cade, (d) defined as a "hazardous substance' under Section 25281
of the CafBomia Health and Safety Code, (e) petroleum, (f) friable
asbestos, (g) polychlorinated byphenyfs, (h) listed under Atllcle 9 or
defined as "hazardous' or "extremely hazardous' under Article 11 of This
22, California Administrative Code, (p designated as "hazardous
substances" pursuant to Section 311 of the Clean Water Ad (33 U.S.C.
§1317), (j) defined as a "hazardous waste" pursuant to Section 1004 of the
Resource Conservation and Recovery Act (42 U.S.C. §6901 of seq., or (k)
defined! as "hazardous substances" pursuant to Section of the
Comprehensive Environmental Response, Compensation, and Liability
Act (42 U.S.C. §9601, at seq.): provided, however, hazardous matenals
shall not include: (1) construclfon materials, gardening materials,
household products, office supply products of lanannal supply products
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cuslomanly used in the construction, maintenance, rehabilitation, or
management of residential rental housing or associated buildings and
grounds, or typically used in household activities, in a manner typical of
other residential rental housing developments which are comparable ta
the Improvements; and (2) certain substances which may contain
chemicals listed by the State of California pursuant to Health and Safety
Code Sections 25249.8 at see., which substances are commonly used by
a significant portion of the population living within the region of the
Property, Including, but not limited to, alcoholic beverages, aspirin,
tobacco products, NutraSweet and saccharine.
1.21 "Household"means one or more persons occupying an Affordable Unit
1.22 "Housing Set -Aside Funds" means these California Health and Safety
Gods Section 33334.2 monies held and administered by Agency a portion
of which shall be made available as the Loan to Owner for eligible costs
and expenses incurred by Owner In constructing the Impmvements in
such amounts, and upon such terns and conditions specified In this
Agreement.
1.23 "Imprevements" mean the rehabilitation of the Affordable Units and other
units that Owner will complete on the Property as part of the Project,
including associated fencing, and landscaping Improvements.
1.24 "Lawmeans the Community Redevelopment Law of the State (California
Health and Safety Code Sections 33000 at seq.).
1.25 "Loan" means the principal sum of $69.00 provided by Agency to Owner
as a loan, upon the terms and conditions set forth in this Agreement and
the Promissory Note attached hereto as Exhibit "G" to be secured by a no
worse than 12nd position) dead of trust lien against the Property. If the
dead of trust securing the Promissory Note is recorded prior to the
recordation of the deed or deeds of trust securing the other Funding
Sources consistent with the Financing Plan, the Agency shall subordinate
such deed of trust to such otherdeed(s) of trust.
1.26 "Loan Documents" are collectively this Agreement and all exhibits and
attachments thereto any dead of trust given as security, as they may be
amended, modifed or restated from time to time.
1.27 Watenal Change- means a change, modification, revision or alteration to
the Loan Documents that significantly deviates from those previously
approved by the Agency, provided that fully funded change(s) which do
not result In a change in the number or type (i.e. residential, affordable) of
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Units and/or an increase In the total Loan funding provided In Nis
Agreement shall not constitute Material Change(s).
1.28 "Owner' means Jeffrey Altimus, an Individual,
1.29 'Plan" means the Redevelopment Plan for the Freeway -99 Golden State
Corridor Redevelopment Project Area.
1.3WPmject" means the rehabilitation of 4 residential Units on the Property, all of
which shall be Affordable Rental Housing as defined by Section 1.3 of this
Agreement.
1.31 "Project Area' means the Freeway -99 Golden State Corridor
Redevelopment Project Area.
1.32 "Project Completion Date" means the date Nat Agency shall have
determined the Project has reached completion in accordance with the
plans and specifications in the Performance and Payment Schedule, as
evidenced by Agency's issuance of a Certificate of Complefion.
1.33 "Property' means the real property described in Ezhiblt 'A", attached
hereto.
1.34 'Release of Restrictions" means a release of those covenants, conditions
and restrictions contained in this Agreement.
1.35 "Performance and Payment Schedule" means the schedule attached as
Exhibit "B," setting forth the dates and times by which the parties must
accomplish cortain obligations under this Agreement. The parties may
revise the Performance and Payment Schedule from time to time on
mutual written agreement of Owner and Agency, but any delay or
extension of the Project CDmplelion Date is subject to the requirements in
this Agreement.
1.36 "Security Financing Interesr means a security interest which Owner
grants In the Property and the Improvements thereon before the Agency
issues and records a Release of Restrictions.
i 37 'Unit mean a residenlial unit constituting the Project.
1.38 "Urban Core" means the area within the Agencys Merged Project Area
No. 1 boundaries. Including any of the following project areas: Central
Business District, Chinatown Expended, Convention Center, Fulton,
Jefferson, Mariposa, South Van Ness Industrial, West Fresno I, or West
Fresno II.
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2. CONDITIONS PRECEDENT TO AGENCY'S OBLIGATION TO PERFORM
UNDER THIS AGREEMENT. The following are conditions precedent to
Agency's obligation to. perform under this Agreement. Until each and all of the
conditions are satisfied, Agency is not obligated to take any action, or provide
any funding under this Agreement. Agency, In wtltlng by its authorized
representative, may waive any condition or agree to extend the time for
satisfaction of any condition set forth in this Section 2. Agency may terminate
this Agreement as provided herein for the failure of a condition.
2.1 Owner shall pay for and provide a file report, reconded dead or other
evidence acceptable to Agency that Owner owns the Property.
2.2 Owner has entered into, and provided Agency copies of agreements with
any and all funding sources and the general contractor for the Project. All
such funding source agreements shall contain a prevision whereby the
pady(ies) to each such agreement, other than Owner, agree to make
reasonable efforts to (i) notify Agency immediately of any event of default
by Owner under such agreement; (ii) notify, Agency Immediately of
termination or cancellation of such agreement; and (Iii) provide Agency,
upon Agency's request, an estoppel certificate codifying that such
agreement is in full force and effect and Owner is not in default under such
agreement.
2.3 Owner has submitted evidence that the combined monies from the
Funding Sources am not less than me greater of a total development cost
of Two Hundred Forty One Thousand Five Hundred Fifty Dollars
($241,550) or the amount which Agency determines is necessary to
complete Me Project. If Agency detenrines that mid funs are not
sufficient to complete the Project. Owner may satisfy this condition as
agreed to by Owner and Agency in writing.
2.4 Owner will submit Its Financing Plan to the Agency for review and
acceptance provided that the purpose of Agency's review is solely to
confirm Owner has sufficient funds available to complete the
Improvements and maintain Pmjecl as this Agreement requires.
Aker Agency accepts the Financing Plan, Owner will not make any
Matelot Change In the Financing Plan without first submitting such
change to Agency for review and acceptance, which shall not be
unreasonably withheld, delayed or conditioned.
2.5 Owner, at Owner's expense, shall have Investigated and determined all
environmental, soil, seismic, and other surface and subsurface conditions
of the Property and the suitability of such conditions for the Project.
Owners responsibility and due diligence includes, but is not limited to,
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determining the presence of Hazanlous Materials. Both Owner and
Agency will promptly give the other copies of all reports and test results.
Owner will indemnify, defend, and hold Agency harmless from any
damages or claims arising out of Owners inspections and tests.
2.8 Should Owner's property assessmentlinspection reveal any Hazardous
Materials or environmental conditions requiring remediation, Owner will
promptly. notify Agency. Not later than len (10) days from and after such
notice, Owner shall, at its sole cost and expense, commence to make
required submittals, develop requiretl remedial action plans, and thereafter
pursue remediation activities as to such Hazardous Materials or
environmental conditions and to diligently prosecute such to completion as
required by applicable federal. state and local law and In a manner and
according a reasonable time frame agreeable to Agency. Without limiting
the foregoing, any remediation will be performed pursuant to a remedial
action plan, if needed, approved by the governmental agencies having
jurisdiction and will be Performed according to applicable environmental
laws and governmental requirements.
2.7 Omer shall not be in default of this Agreement and all representations
and warranties of Owner contained herein shall be "a and cored In all
material respects.
2.8 Owner will have signed and delivered all documents required hereunder.
2.9 Owner will have received all land use and development approvals,
variances, permits and the like required by this Agreement.
2.10 Owner will have provided proof of Insurance as required by this
Agreement.
2.11 This Agreement, including the Dead of Trust, shall have been recorded
with the Fresno County Recorder's Office.
3. OWNER OBLIGATIONS AFTER SATISFACTION OF CONDITIONS
PRECEDENT. The following obligations of Owner will ran with the land and survive this
Agreement:
3.1 Owner will take all reasonable precautions to prevent Me release Into the
environment of any Hazardous Materials in, on or under the Property in
violation of applicable laws or regulations. Owner will comply with all
governmental requirements with respect to Hazardous Materials. In
addition, If necessary. Owner shall Install and use equipment and
implement and follow procedures that are consistent with reasonable
standards for the disclosure, storage, use, removal and disposal of
Hazardous Materials.
3.2 Owner will notify the Agency and give Agency a copy of all environmental
permits, disclosures, applications. entitlements or inquiries relating to the
Property Including, without limitation, notices of violation, notices to
comply, citations, inquiries, cleanup or abatement orders, cease and
desist coders, reports flied pursuant to seff-reporting requirements and
reports filed or applications made pursuant to any governmental regulation
relating to Hazardous Materials. Wthin 3 days after each incident, Owner
will report to Agency any unusual or potentially important incidents
respecting the environmental condition of the Property.
If a release of any Hazardous Materials into the environment occurs,
Owner will, es soon as possible after the release, famish Agency with a
copy of any reports relating thereto and copies of all correspondence with
governmental agencies relating to the release. Upon request, Owner will
furnish Agency with a copy of any other environmental entitlements or
Inquines relating to or affecting the Property Including, without limitation,
all permit applications, permits and reports, even reports and other
matters.
3.3 From the Effective Date of this Agreement, Owner shall Indemnify, hold
harmless and defend Agency, City and each of their officers, officials,
employees, agents and volunteers from any and all claim, action, suit,
Proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive
damage, or expense (including, without limitation, reasonable attorneys'
fees), arming out of (1) the presence, release, use, generation, discharge,
storage or disposal of any Hazardous Materials on, under, in or about the
Property, or the transportation of any Hazardous Materials to or from the
Property, or (li) the violation, or alleged violation, of any statute, ordinance.
order, rule, regulation, permit, judgment or license relating to any use,
generation, release, discharge, storage, disposal or transportation of
Hazardous Materials on, under, in or about, to or from, the Property. This
indemnity will Include, without limitation, any damage, liability, fine,
penalty, parallel indemnity after closing, cost or expense arising from or
out of any claim, action, suit or proceeding for personal injury (Including
sickness, disease or death), tangible or intangible property damage,
compensation for lost wages, business income, profits or other economic.
loss, damage to the natural resource or the environment, nuisance,
contamination leak, spill, release or other adverse effect an the
environment. Owner's obligations under Me preceding sentence shall
apply regardless of whether Agency, City or any of their officers, officials,
employees, agents or volunteers are negligent, but shall net apply to any
claim, action, suit, proceeding, loss, cast, damage, liability, deficiency,
fine, penalty, punitive damage, or expense caused solely by the gross
negligence, or caused by the willful misconduct, of Agency, City or any of
their officers, officials, employees, agents or volunteers. This section shall
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survive expiration or termination of this Agreement
3.4 The status and qualifications of Owner are of particular concern to
Agency. From the Effective Date of this Agreement until the Restrictions
expire, no voluntary or involuntary successomn-interest of Owner will
argWre any rights or powers under this Agreement, provided that the
parties acknowledge the Owner shall hold the Affordable Units for rental
as Affordable Rental Housing as provided In this Agreement.
Notwithstanding anything to the contrary herein, Owner shall have the
right to transfer ownership of the Property to another person or amity
having experience In the ownership and operation of Affordable Rental
Housing, as reasonably determined by Agency, upon written approval of
the Agency, which approval shall cot be unreasonably withheld delayed
ormndilioned.
4. DEVELOPMENT OF THE PROPERTY.
4,1 Except as set forth in Nis Agreement, before Owner begins the
rehabilitation of the Improvements or undertakes any other work of
improvement on the Property, Owner, at its own cost and expense, will
secure all lard use and other entitlements, permits, and approvals that
Agency or any other governmental agency with jurisdiction over the
Project requires for rehabllitabon of the Project. Wtthout waiver or
limitation. Owner will secure and pay all costs, charges and fees
associated with, the following:
4.1.1 All permits and fees that the City, County of Fresno, and
other governmental agencies with jurisdiction over the Project, the
Improvements or the Property may require.
4.1.2 ADABamers to the Disabled. The Project shall comply with
all applicable federal, state and local accessibility requirements.
For purposes of this Agreement the number of accessible dwelling
units shall be aero (Of unless a greater number of units shall be
required by law, whereupon such granter number of units shall
apply.
4.2 Basic Design. Owner has submitted a Scope of Work to Agency, which
Agency has approved. and a copy of which is attached as Exhibit "E" (the
"Scope of Wall Owner will complete the Improvements on the Property
in one phase, according to the Scope, and the plans, drawings, and
documents that Owner submits to Agency. Owner shall carry out
construction of the Project including the Improvements in accordance with
all applicable local, state and federal laws, codes, ordinances and
regulations, Including without limitation all applicable state and federal
labor standards.
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4.3 Books and Records. Owner shall make available for examination at
reasonable intervals and during normal business hours, all books,
accounts, reports, files and other papers or property with respect to all
matters covered by this Agreement, and shall permit Agency to sued,
examine and make excerpts or transcripts from such records. Agency
may audit any conditions relating to this Agreement at Agencys expense,
unless such audit shows a materially significant discrepancy in information
reported by Owner to Agency in which case Owner shall bear the cost of
such audit. Owner shall also reasonably cooperate with and assist the
Agency In Agency's compliance with any applicable audit requirements of
the California Redevelopment Law including California Health and Safety
Code Sections 33080 and 33080.1. This section shall survive for a period
of four years after the expiration or temnination of this Agreement.
4.4 Financial Records. Owner shall be accountable to Agency for all Loan
fundis disbursed to Owner pursuant to itis Agreement. Owner will
cooperate fully with Agency and the State of Caldomia in connection with
any interim or final spot relating to Ude Project that may be performed.
Owner will maintain accurate and current books and records for the
Project using generally accepted accounting principles. Owner agrees to
maintain books and records that accurately and fully show the date,
amount, purpose and payee of all expenditures financed with Loan fundis
and to keep all invoices, receipts and other documents related to
expenditures financed with Loan funds for not less than four (4) years after
the fiscal year in which such expenditures are incurred. For purposes of
this section, 'books, records and documents" include, wthout limitation,
plans, drawings, specifications, ledgers, journals, statements,
contracts/agreements, funding Information, purchase orders, invoices,
ban documents, computer printouts, correspondence, memoranda and
electronically stared versions of the foregoing. This section shall survive
for a period of four years after the expiration or termination of this
Agreement.
4.5 Owner shall cause the issuance of all necessary discretionary
govemmental permits, approvals and entitlements, close any implicated
funding or other escrow and begin and complete rehabilitation of the
Improvements according to the Performance and Payment Schedule.
4.5.1 Project Completion. Agency, acting through and in the
discretion of Its Director, may extend the completion date of the
Project for that period of time that Agency, in its reasonable
discretion, determines necessary to overcome any delay if and to
the extent such delay is due to a cause which is beyond Owners
reasonable control, and t Owner could not, with reasonable
diligence. have foreseen and avoided such cause for delay. Such
14.
causes include, without limitation, acts of God, unusually severe
weather or hood, war, terrorism, Not or ad of the public enemy,
labor disputes, unavoidable Inability in secure labor, materials,
supplies, tools or transportation, or acts or omissions of any
governmental autlrorily having jurisdiction. Agency will not extend
the completion date for acts or omissions occurring through the
fault of Owner, or for acts of Agency permitted or contemplated by
this Agreement. An extension of time as provided In this
subsection will be Owners sole remedy for any delays in the
Performance and Payment Schedule the Project completion date.
As a condition precedent to any extension requested by Owner,
Owner will give the Agency notice within ten (10) days after any
cause for delay occurs, stating the rause and the additional time
Owner anticipates needed to complete the Project. Any extension
by Agency must be in writing and signed by the Director or the
Directors designee, which approval shall not be unreasonably
withheld, delayed or conditioned.
4.6 Subject to the terms of this Agreement, the Loan shall be disbursed to
Owner according to the Performance and Payment Schedule. All Loan
funs shall be used solely for costs of the Project and Improvements.
4.7 Certificate of Completion. Owner will notify Agency when Owner deems
the Project complete. Will ten (10) business days after such notice,
Agency will inspect the Improvements. When Agency reasonably
determines Owner has completed the Improvements as required in this
Agreement, the Plan, and the Law, Agency will fumish Owner with the
Certfcate of Completion. Agency will not unreasonably delay, condition
or refuse to issue the Certificate of Completion. The recorded Certificate
of Completion will be a conclusive determination that Owner has
satisfactorily completed the Improvements required under this Agreement -
Any parties than owning or subsequently purchasing, leasing or otherwise
acquiring any interest in the Property will not (because of that ownership,
purchase, lease or acquisition) after the recording, incur any obligation or
liability under this Agreement for rehabilitating the Improvements, but will
take such interest m the Property subject to the continuing covenants set
forth in this Agreement.
4.7A If Agency determines not to furnish the Certificate of
Completion, in accordance with Section 4.7 above, Agency will give
Owner a women notice stating why Agency has decided not to issue
the Certificate of Completion, or why it is delaying the issuance.
an the reasonable actions that, In Agency opinion, Owner must
take before Agency can Issue the Certificate of Completion.
Agency's failure to give the notice within ten (10) days, however,
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will not cause the Owner to be entitled to the Cartifcate of
Completion. The Certificate of Completion is not a notice of
completion as refereed to in Section 3093 of the California Civil
Code.
4.7.2 The following are conditions precedent to Agency issuing
the Certificate of Completion, and each submission will be in form
and substance satisfactory to the Director: Evidence that the time
to file all mechanicsliens or material men's liens has expired and
any such liens recorded against the Property or Improvements
have been released or, if not released, sufficiently bonded (i.e.
150%) against as required! by law.
4.8 To the extent economically Feasible, consistent with the requirements of
any permitted encumbrance, or as otherwise approved by Agency or
Provided in the Agreement, If any building or improvement on the Property
is damaged or destroyed by an insurable cause, Owner shall, at its cost
and expense, diligently undertake to repair or restore said buildings and
improvements consistent with the Scope of Work for the Project. Such
work or repair shall commence within ninety (90) days after the insurance
proceeds are made available to Owner and shall be complete within one
(1) year thereafter. All insurance proceeds collected for such damage or
destruction shall be applied to the cost of such repairs or maturation and,
ff such Insurance proceeds shall be insufficient for such purpose, Owner
shall make up the deficiency.
4.9 Inspections. Upon at least one days notice from Agency to Owner during
the rehabilitation of the Improvements and two day s notice after, Owner
shall permit, facilitate and require its contractors to permit and facilitate
observation and inspection of the Project by Agency during reasonable
business hours and upon reasonable noises for the purpose of determining
compliance with this Agreement
4.10 If and to me extent that development of the Project results in the
permanent or temporary displacement of residential tenants, homeowners
or businesses, Owner shall comply with all applicable local, state and
federal statutes and regulations with respect to relocation planning,
advisory assistance and payment of monetary benefits. Owner shall be
solely responsible for payment of any relocation benefits to any displaced
Persons and any other obligations associated with complying with said
relocation laws.
4.11 Reporting Requirements. Owner shall submit to Agency the following
reports:
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4.11.1 Annual Reports. Annually, beginning in the year
following Agency's issuance of the Certificate of Completion, and
continuing until the expiration of this Agreement, on such dates as
are agreeable between the parties and consistent with all federal
and state reporting requirements applicable to the Project, Owner
shall submit an annual report to Agency. In a form approved by
Agency. Such annual report shall include for each of the
Affordable Units: the rent, the annual income and the family size
of the Household occupying the Affordable Unit. Such annual
report shall also state the data the tenancy commenced for each
Affordable Unit, celcation from an officer of Owner that the
Affordable Unit is in compliance with the Afordable Rental
Housing requirements, and such other information the Agency
may be required by Law to obtain. Owner shall provide any
additional information reasonably requested by the Agency
provided such information is directly related to Owner's
compliance with this Agreement.
4.11.2 Annual Proof of Insurance. Annually, beginning in the
year following Agency a issuance of the Certiflcate of Completion,
and continuing until the expiration of the Agreement, Owner shall
submit proof of insurance as required by this Agreement.
4.12 All Leases used to rent the four (4) Affordable Units are subject to the
following:
4.12.1 Annual Income Certification and Reporting. Owner
shall Include in leases for all Affordable Units provisions which
authorize Owner to immediately terminale the tenancy of any
Household one or more of whose members misrepresented any
fad material to the Household's qualification as a Household for
low to moderate income family. Each such lease shall also
provide that the Household is subject to annual certification. and
that, it the Household's annual income Increases above the
applicable limits for low to moderate income family such
Households rent may be subject to increase to the amount
payable by tenant under federal, state or local law, except that,
consonant with the Law, tenants of the Affordable Units Nat have
been allocated to low Income housing tax credits by a housing
credit agency pursuant to section 42 of the Internal Revenue Code
of 1986 (26 U.S.C. 42) must pay rent governed by Section 42.
4.12.2 The leases for the Affordable Units shall provide that
if the Pmlect is subject to state or federal rules governing low
Income housing tax cretlits, the provision of those rules regarding
continued occupancy by, and increases In rent for, Households
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whose Incomes exceed the eligible income limitation shall apply In
place of the provisions set forth in subsection 4.12.1 above.
4.13 With respect to the Project, Owner shall comply with the following:
4.13.1 Except to any extent otherwise provided In this
Agreement, Owner Is specifically responsible for all management
functions with respect he the Affordable Units including, without
limitation. the selection of tenants, pettAication and recertification
of Household size and income, evictions, collection of rents and
deposits, maintenance, landscaping, routine add extraordinary
repairs, replacement of capital Items and security. Agency shall
have no responsibility for management of the Affordable Units of
the Project. Notwithstanding the foregoing, Owner shall be
allowed to hire a third party property management company to
manage the Project.
4.14 Omer covenants and agrees the Affordable Units shall constitute
Affordable Rental Housing during the entire Affordability Period. If Owner
fails to comply with the requirement to lease the Affordable Units only to
qualified Households during the Affordability pence, Agency shall be
entitled to enjoin Owner from leasing the Affordable Units in the Project,
as Owner acknowledges that damages are not an adequate remedy at law
for such breach.
4.14.1 Prior to each Household's occupancy of an Affordable
Unit. Owner shall comply with all of the Income Computation and
Certification Reporting requirements, as specified in me Regulatory
Agreement and Declaration of Covenants and Restrictions,
attached hereto as Exhibit "P'. Owner shall obtain add maintain on
file an Income Computation and Certification form, attached hereto
as Exhibit Wand a Certificate of Continuing Program Compliance,
attached hereto as Exhibit "X from each such Household, as
specified in said Regulatory Agreement and Declaration of
Covenants and Restrictions.
5, INDEMNITY; INSURANCE
5.1 Owner shall indemnify, hold harmless and defend Agency, City and each
of their officers, officials, employees, agents from any and all loss, liability,
fines, penalties, forfeitures, costs and damages (whether in contract, ted
or strict liability, including but not limited to personal injury, death at any
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time and property damage) Incuned by Agency, City, Owner, or any other
person, and from any and all claims, demands and actions in law or equity
(including abomey's fees and litigation expenses), arising or alleged to
have arisen directly or indirectly out of Owners performance of this
Agreement. Owners oblgalions under the preceding sentence shall not
apply to any loss, Ilabllity, fines, penalties, fodeftures, costs or damages
caused solely by the gross negligence, or caused by the willful
misconduct, of Agency, City or any of their officers, officials, employees,
agents or volunteers. This section shall survive expiration or termination
of this Agreement.
5.2 Throughout me life of this Agreemmrt, the Owner shall .pay for and
maintain in full force and effect all policy(ies) of insumnce required
hereunder with (an) insurance company(les) either (1) admitted by the
California Insurance Commissioner to do business in the State of
California and rated not less than'A-VII' In Best's Insurance Rating Guide,
or (2) authorized by the Agency s Risk Manager or his/her designee. The
following policies of insurance are required
5.2.1 Until the Certificate of Completion is recorded,
Builders Risk (Course of Construction) insurance in an
amount equal to the completed value of the Project with no
coinsurance penalty provisions.
5.2.2. Following the recording of the Certificate of
Completion,
Owner shall be responsible for t of any deductibles t etl I
any Insurance Policies reaulred hereunder and Owner shall also be
mumons ble for payment of any seB-Insured retentlons Any deductibles r
I9-
solf-Insured retentions must be declared t ntl approveal by, the
Paencv's Risk Manager or his/her designee
All policies of Insurance required hereunder shall be endorsed to provide
that the coverage shall not be cancelled, non -renewed, reduced In
coverage or in limits except after 30 calendar day written notice has been
given to Agency. Upon Issuance by the insurer, broker, or agent of a
notice of cancellation, non -renewal, or reduction In coverage or in limits,
Owner shall furnish Agency with a new certificate and applicable
endorsements far such policy(ies). In the event any policy Is due to expire
during the term of this Agreement, Owner shall provide a new certificate,
mM applicable endorsements, evidencing renewal of such policy act less
than 15 calendar days priorta the expiration date of the expiring policy.
The Builders Risk (Course of Construction) and Commercial Property
insurance policies shall be endorsed to name Agency as a loss payee.
Owner shall furnish Agency wtth all certificates) and applicable
endorsements effecting coverage required hereunder. All certificates
and applicable endorsements are to be received and approved by the
Agency's Risk Manager or his/her designee prior to Agency's execution of
this Agreement
If at any time Owner falls to maintain the required Insurance in full force
and effect, Owner shall immediately discontinue all work under this
Agreement until Agency receives notice Nat the required insurance has
been restored to full force and effect and that the premiums therefore have
been paid for a period satisfactory to the Agency. Owner's failure to
maintain any required insurance shall be sufficlenl cause for Agency to
terminate this Agreement.
The fact That Insurance Is obtained by Owner shall not be deemed to
release or diminish the liability of Owner, including without limitation,
liability under the indemnity provisions of this Agreement. The duty to
Indemnify Agency, City and each of their officials, officers, employees,
agents and volunteers shall apply to all claims and liability regardless of
whether any insurance policies are applicable. The policy limits do not act
as a limitation upon the amount of indemnification to be provided by
Owner. Approval or purchase of any Insurance contracts or policies shall
in no way relieve from liability nor limit the liability of Owner.
Upon request of Agency, Owner shall immediately fumish Agency with a
complete copy of any insurance policy required under this Agreement,
including all endorsements. with mid copy certified! by the underwriter to
be a true and correct copy of the original policy. This requirement shall
survive expiration or temrination of this Agreement.
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5.3 Owner will obtain and deliver payment and Performance bonds issued by
an insurance company admitted In California in good standing as a surety
and meeting the criteria for Owners other insurance under this
Agreement. Each bond shall be in an amount at least equal to 100% of
Owners estimated construction costs, provided that the Agency hereby
waives any requirement for said bonds at all times during which Owner is
in full compliance with this Agreement and the Project remains fully
funded.
5.4 Until Agency issues the Certificate of Completion Agency will have access
to the Property, after one day's written notice to the Owner (except In
emergencies), without charge or fee, during normal construction hours, for
purposes of assuring compliance with this Agreement. Agency
representatives will comply with all safety miss while on the Project or the
Property.
5.5 Owner will design and rehabilitate the Improvements, and after that, prior
to any allowable transfer or sale thereof. Owner will mainu iln the Property
according to all applicable laws including, without limitation, all applicable
state labor standards, Agency zoning and development standards,
building, plumbing, mechanical and electrical codes, all provisions of to
Fresno Municipal Code and all applicable access requirements. Agency
makes no representation about which, it any, of each laws, ordinances,
regulations or standards apply to development of the Project.
Owner acknowledges that Owner, not Agency, is responsible for
determining applicability of and compliance with all local, state, and
federal laws including, but not limited te, any applicable provisions of the
California Labor Code, Public Contract Code, and Government Coda.
Agency makes an express or Implied representation as to the applicability
or inapplicability of any such laws to this Agreement or to the parties'
respective rights or obligations hereunder including, but not limited to,
payment of prevailing wages, competitive bidding, subcontractor listing, or
similar or different matters. Owner further acknowledges that Agency
shall not be liable or responsible at law or in equity for any failure by
Owner to comply with any such laws, regardless of whether Agency knew
or should have known of the need for such compliance, or whether
Agency failed to notify Owner of the need for such compliance.
5.6 Owner will take reasonable efforts to not permit any lien or stop notice to
be filed against the Property, provided Owner may masonably determine
to contest any such lien or stop notice. If a claim of lien or step notice is
receded against the Property or Improvements, Owner, within 30 days
after recordation of a claim of lien or stop notice or within 5 days after
Agency's demand, whichever first occurs, will do the following:
5.6.1 Pay and discharge the same; or
5.6.2 Effect the release of such lien by recording and delivering to
Agency a surety bond In sufficient form and amount (i.e. 151 or
otherwise; or
56.3 Give Agency other assurance which Agency, in its sole
discretion, deems satisfactory to protect the Agency from the effect
of the lien or bonded stop notice.
6. SECURITY FINANCING AND RIGHTS OF HOLDERS.
6.1 Notwithstanding any other provision of this Agreement, Owner may not
grant a security interest in the Property before the Agency Issues and
records a Candidate of Completion, without the written consent of Agency,
provided that Agency hereby approves the recommended security Interest
of Owners financial institutions, including their respective successors or
assigns, as described in the Financing Plan.
7. CONTINUING OWNER OBLIGATIONS
7.1 In its performance of this Agreement, Owner covenants by and for itself
and its successors and assigns, and all persons claiming under or through
them, that there shall be no discrimination against or segregation of any
Person, including contractors, subcontractors, bidders and vendors, on
account of race. color, religion, ancestry, national origin, sex, sexual
preference, age, pregnancy, childbirth or related medical condition,
medical condition (e.g.. cancer related) or physical or mental disability,
and in compliance with all applicable federal, state and local laws,
regulations and rules Including without limitation Title VII of the Civil Rights
Act of 1964, 42 U.S.C. Section 2000, of seq., the Federal Equal Pay Act of
1963, 29 U.S.C. Section 201 the Age Discrimination in Employment
Act of 1967. 29 U.S.C. Section 621, at see, the Immigration Reform add
Control Act of 1986, 8 U.S.C. Section 1324b, at seq., 42 U.S.C. Section
1981, the California Fair Employment and Housing Ad, Cel. Government
Code Section 12900, at seq., the California Equal Pay Law. Cal. Labor
Code Section 1197.5, Cal. Government Code Section 11135, the
Americans with Disabilities Act, 42 U.S.C. Section 12101, at seq., and all
other applicable anti -discrimination laws and regulations of the United
States and the State of California as they now exist or may hereafter be
amended. Owner will allow Agency representatives access to its
employment records related to this Agreement during regular business
hours and upon reasonable notice to early compliance with these
provisions when so requested by the Agency.
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7.2 Owner will pay before delinquency all ad valorem real estate taxes and
assessments on the Property, subject to the Owners right to contest in
good faith any such taxes. Owner will remove any levy or attachment on
the Property or any part of s, or assure the satisfaction of the kvy or
attachment within a reasonable time. Owner will notify Agency prior to
applying for or receiving any exemption from the payment of property
taxes or assessments on any interest in or to the Property or the
Improvements. Owner further agrees that the prior consent of Agency
shall be required if the basis for such exemption is other than for qualified
property held by a nonprofit entity that has been tleearni ned to be exempt
from federal and state income taxation, which consent shall not be
unreasonably withheld.
8. COVENANTS AND RESTRICTIONS RUNNING WITH THE LAND. The
following covenants shall con with the land and shall bind Owner, and Owners
successors in interest to the Property for the periods stated, and shall be fully
binding for the benefit of the Plan, community, and Agency without regard to
technical classification or designation, legal or otherwise.
8.1 Owner covenants for shell Its successors, assigns, and every successor
in Interest to the Property or any part of it that, after closing of any
applicable escrow, during construction, and after completing the
Improvements, the Owner shall devote the Affordable Units on Ne
Property to the uses specified in this Agreement for the Affordability
Period. All uses of the Affordable Units including, without limitation, all
activities Owner undertakes pursuant to this Agreement, shall conform
with this Agreement and the Law. Without waiver or limitation, each of the
Affordable Units to be constructed pursuant to this Agreement shall be
maintained as Affordable Rental Housing pursuant to this Agreement and
the Restrictions.
8.2 Owner and those taking under Owner will maintain the Property and all
Improvements on stte in commercially reasonable good condition and
repair (and, as to landscaping, l any, in a healthy condition), all accoMing
to the Scope of Work and related plans, as -amended from time to time.
Owner and those taking under Owner shall: (i) maintain all on-site
Improvements according to all other applicable laws, rules, ordinances,
orders, and regulations of all federal, state, county, municipal, and other
governmental agencies and bodies having or claiming junsdiction and all
their respective departments, bureaus, and officials; (ii) keep the
Improvements free from graffiti; (Iii) keep the Property free from any
accumulation of debris or waste matenal. (iv) promptly make repairs and
replacements to the on-site Improvements; and (v) promptly replace any
dead, or diseased plants and/or landscaping (if any) with comparable
materials.
Agency will give Owner written notice of any breach of this Section 8.2.
Within 10 days from receipt of such notice, Agency and Owner will meet
and confer, and agree to corrective actions and a schedule of
performance for such corrective actions. Owner must cure the default
within the agreed schedule or within (a) 20 days after the Agency s notice
for any default involving landscaping, gref8ti, debris, waste material, or
general maintenance on the Property: or, (b) 30 days after Agency's
notice for any default involving the Improvements. If Owner does not cure
the default wlthln the agreed schedule, Agency, without obligation tD, may
enter the Property, cure the default, and protect, maintain, and preserve
the Improvements and landscaping.
Agency may lien or assess the Property for the Agencys expenses In
protecting, maintaining, and preserving the on-site Improvements and
aesthetics of the Property, including any lawful administrative charge in
the manner used by the Agency in the abatement of public nuisances.
The notice and opportunity to cure provided for herein will supplement the
noticing, hearing, and nuisance abatement order used by Agency. Omer
will promptly pay all such amounts to Agency upon demand.
8.3 During the Affordablliry Period Owner covenants to use and operate the
Affordable Units on the Property as Affordable Rental Housing pursuant to
this Agreement.
84 Owner covenants for itself and any successors in Interest and all persons
claiming by, through or under them, in perpetuity, that there shall be no
discrimination against or segregation of any person or group of gemons
because of race, color, creed, religion, sex, sexual preference, mantel
status, national origin or ancestry in the sale, lease, sublease, transfer,
use, occupancy, tenure or enjoyment of the Affordable Units, nor shall
Owner ltself or any person claiming under or through Owner establish or
permit any such practice or practices of discrimination or segregation
concennIN the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees or vendees of the Affordable Units.
8.5 All deeds, leases, or contracts concerning the Affordable Units shall
contain or be subject to substantially the following nondiscrimination or
nonsegregation clauses:
In deeds: The grantee herein covenants by and for himself or
herself, his or her heirs, ei administrates and assigns, and
all persons claiming under or through them, that there shall be no
discrimination against or segregation of, any person or group of
persons because of race, color, creed, religion, sex, sexual
preference, marital status, national origin or ancestry in the sale,
lease, sublease, transfer, use, occupancy, tenure or enjoyment of
]a.
the land herein conveyed, nor shall the grantee or any parson
claiming under or through him or her, establish or permit any such
practice or practices of discrimination or segregation concerning the
selection, location, number, use or occupancy of tenants, lessees,
subtenants, sublessees or vendees in the land herein, conveyed.
The foregoing covenants shall ran with the land"
In leases: 'The lessee herein covenants by and for himself or
herself, his or her heirs, executors, administrators, and assigns,
and all persons claiming under or through him or her, and this lease
is made and accepted upon and subject to the following conditions:
That there shall be no discrimination against or segregation
of any person or group of persons, because of race, color,
creed, religion, sex, sexual preference, marital status,
national origin, or ancestry in the leasing, subleasing,
transferring, use, occupancy, tenure, or enjoyment of the
premises herein leased nor shall the lessee himself or
herself, or any person Calming under or through him or her,
establish or permit any such practice or practices of
discrimination or segregation concerning the selection,
location, number, use, or occupancy of tenants, lessees,
sublessees, subtenants, or venders in Me premises herein
leased"
In contracts: 'There shall be no discrimination against or
segregation of, any person, or group of persons because of race,
color, creed religion, sex, sexual preference, matter status,
national origin, or ancestry, in the sale, lease, sublease, transfer,
use, occupancy, tenure or enjoyment of me premises, nor shall the
transferee himself or herself or any person claiming under or
through him or her, establish or permit any such practice or
practices of discrimination or segregation concerning the selection,
location, number, use or occupancy of tenants, lessees,
subtenants, sublessees or ventlees of the premises."
8.6 Agency Is the beneficiary of the covenants nothing with the land for itself
and for protecting the Interests of the community and other padres, public
or private, in whose favor and for whose benefit the covenants are
provided, without regard to whemer Agency has any interest in the
Affordable Units on the Property. Agency may exercise all rights and
remedies, and maintain any actions or suits at law or in equity or other
proceedings to enforce the covenants for itself or any other beneficianes.
9. DEFAULTS AND REMEDIES
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9.1 Subject to the extensions of time permitted under this Agreement, either
party's failure to perform any material action or material covenant as
required by this Agreement, following notice and failure to cure, is a
"Default" under this Agreement. A party claiming a Default shall give
written notice of Default to the other party specifying the Default
complained of, and the cure demanded. Except as otherwise expressly
providetl in this Agreement, the noticing party shall not begin any
proceeding against the other party until the other party is given an
opportunity to cure the Default The other party will have 30 calendar
days after receiving the notice to cure the Default, or, If Ne party cannot
reasonably cure the Default within such 30 days, the other party must
begin to cure within the 30 days and diligently pursue the cure to
completion, whereupon there shall be no event of Default.
9.2 Subject to first giving the notice and opportunity to cure, a party may begin
an action at law to enforce, or in equity to seek specific performance of.
the terms of this Agreement, or to cure, correct, or remedy any Default, to
recover damages for any Default, or to obtain any other remedy consistent
with the purpose of this Agreement. A party must bring any legal action In
the Superior Court of the County of Fresno, State of California, in an
appropriate municipal count in Fresno County, or in the District of the
United States District Court serving Fresno County.
9.3 If Owner begins any legal action against Agency, 9 shall serve process on
Me Agency by personal service on the Director, or in any other manner
the law permits. If Agency begins any legal action against the Owner, it
will serve process on the Owner by personal service on Owner, O.mers
Agent or in any other manner the law permits.
9.4 Except as otherwise expressly stated in this Agreement, the rights and
remedies of the parties are cumulative, and a parWs exercise of one or
more rights or remedies will not preclude the partya exercise, at the same
or different times, of any other rights or remedies for the same or any
other Default of the other party.
9.5 A party's failure or delay in asserting any right or remedy will not be a
waiver of any Default or of any fight or remetly, and will not captive the
party of Its right to begin and maintain any action or proceeding to prelect
assert or enforce any right or remedy.
9.8 The laws of the State of California shall govern the Interpretation and
enforcement of this Agreement.
10. GENERAL PROVISIONS
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10.1 Any notice, demand, or other communication permitted or required under
this Agreement will be In writing and given by personal delivery, or by first-
class U.S. mall, postage prepaid, to a party at its respective address
below:
To Agency
Executive Director
Redevelopment Agency of the City of Fresno
2344 Tulare Street, Suite 200
Fresno, CA 93721
To Owner.
Jeffrey Altimus
261 N Van Ness Avenue
Fresno, CA 93701
A party may change its address for notices, demands and
communications by giving notice of the new address as provided In this
section. Any written notice, demand or communication shall be deemed
received immediately If delivered personally, and shall be deemed
received on the third day after it is postmarked 9 delivered by regular,
registered or certRed mall, or on the date of receipt, If return receipt is
requested and available to confirm the date.
10.2 All of the terms, covenants and conditions of this Agreement shall be
binding upon the Owner and its permitted successors and assigns.
Whenever the tens "Owner' is used in this Agreement, such term shall
include Owners successors and assigns as permitted under this
Agreement.
10.3 The Agency may assign or transfer any of its merests, rights, or
obligations hereunder at any time to any public agency without the
consent of the Owner.
10.4 No member, official or employee of the Agency shall be personally liable
to the Owner, or any successor in Interest to Owner, for any Default or
breach by the Agency_
10.5 The relationship between the Agency and the Owner Is that of
redevelopment agency and redeveloper respectively, as permitted by law,
and not that of a partnership orjoinl venture. Agency and Owner shall not
be deemed or construed for any purpose to be the agent of the other.
2]-
108 Whenever this Agreement references an action or approval required or
penniffed by the Agency, the Director or his or her designee is authorized
to act for the Agency as agent of the Agency unless this Agreement, the
Law, Constitutional and/or local law provide otherwise, or the context
otherwise requires.
10.7 This Agreement may be signed In multiple counterparts which, when
signed by all parties, will be one binding agreement. The parties will sign
three copies of this Agreement, each of which is deemed to be original.
10.8 This Agreement includes the exhibits and attachments referenced and
incorporated in it. This Agreement contains the entire agreement between
the parties relating to the transaction contemplated by this Agreement and
supersedes all prior or contemporaneous agreements, understanding,
representation and statements, whether oral or written.
10.9 If either party begins a lawsuit or arbitration proceeding in law or equity, to
enforce or inleryret any prevision of this Agreement, the prevailing party
will be entitled to recover from the other party reasonable attorneys' fees,
court costs, and legal expenses as detannined by the court or tribunal
having junsdlctlon.
10.10 Any waiver, alteration, change or modification of of to this Agreement, to
be effective, must be in writing, and signed by each party.
10.11 If any term, provision, condition or covenant of this Agreement or its
application to any party or circumstances Is held invalid or unenforceable.
the remainder of this Agreement and its application to persons or
circumstances, other than those about whom or which it is held Invalid or
unenforceable, shall not be a/fected, and shall remain valid and
enforceable to the fullest extent permitted by law.
10.12 Each party represents and warrants to the other that (a) each has read
this Agreement, and (b) is signing this Agreement with full knowledge of
any rights and obligations each may have, and (c) each has received
independent legal advice from their respective legal counsel as to the
Madera set forth in this Agreement, or has knowingly chosen not to
consult legal counsel, and (d) has signed this Agreement Milhaud relying
on any agreement, promise, statement or representation by or for the
other party, or their respective agents, employees, or attorneys, except as
specifically set forth in this Agreement. and without duress or coercion,
whether economicor otherwise.
10 13 No member, official or employee of Agency has or shall have any personal
interest. direct or indirect, in this Agreement. nor shall any such member,
official or employee participate h any decision relating to the Agreement
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which affects his personal Interests or the interests of any corporation,
partnership or association in which he is directly or Indirectly Interested.
Owner represents and warrants that it has not paid or given, and will not
pay or give, to any third parry any money or other consideration for
obtaining this Agreement, other than normal costs of conducting business
and costs of professional services such as architects, consultants.
engineers and attorneys.
10.14 The parties will execute such other and further documents, and will take
any other steps, necessary, helpful, or appropriate to tarty out the
provisions of this Agreement.
10.15 No contractor, subcontractor, mechanic, material man, laborer, vendor, or
other person hired or retained by Owner shall be, nor shall any of them be
deemed to be, Thad -party benericianes of this Agreement, rather each
such person shall he deemed to have agreed (a) that they shall look to
Owner as their sole source of recovery if not paid, and (b) except as
otherwise agreed to by Agency and any such person in writing, they may
not enter any claim or bring any such action against Agency under any
circumstances. Except as provided by law, or as otherwise agreed to in
writing between Agency and such person, each such person shall be
deemed to have waived in writing all right to seek redress form Agency
under any circumstances whatsoever.
10.16 Owner hereby covenants and warrants that he is an ino Mdual and that he
has the full right, power and authority to enter into this Agreement and to
tarty out all actions an its par[ contemplated by this Agreement; that the
execution and delivery of this Agreement were duly authorized by proper
action of the Owner and no consent, authorization or approval of any
person is necessary in connection wtih such execution and delivery or to
carry out all actions of the Owners part contemplated by this Agreement,
except as have been obtained and are in full force and effect; and that this
Agreement constitutes the valid, binding and enforceable obligation of the
Owner.
10.17 In the event of any conflict between the body of this Agreement and any
exhibit or attachment to it, the terms and conditions of the body of this
Agreement will control.
-39-
IN WITNESS WHEREOF, Agency and Owner have signed this Agreement, and
Me Agency has approved this Agreement, on the dates and in the year set forth below.
Redevelopment Agency of the City of Fresno,
A public body, m rale ago politic
By:
Madene mo he
Exebuthm Director
ATTEST:
REBECCA KLISCH
Ex -Officio Clerk
Redevelopment Agency of the City of Fresno
By: </yli>�a/i NAL/..1
Deputy 17yw/o
Attachments:
Jeffrey Altimus,
an Inch E I
Mob
Je y ififinus
APPROVED AS TO FORM:
JAMESO.SANCHEZ
Ex -Officio Attorney
Redevelopment Agency of me City of
Fresno
By: Icls Io
Deputy
Exhibit A: Legal Description of Property
Exhibit B: Performance and Payment Schedule
Exhibit Cc Budget/Financial Plan
Exhibit D. Certificate of Completion
Exhibit E: Scope of Work
Exhibit F: Regulatory Agreement and Declaration of Covenants and Restrictions
Exhibit G: Promissory Note
Exhibit H: Deed of Trust
Exhibit I: Certificate of Program Compliance
ExhibdJ: Income Certification Form
-30-
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of S n O I
On Noa /% C70/0 "fare me. ei e-etit iicKW - CFar/✓on Noia.r✓� 5�
personality amd J2 Ff
Idw.,la
sisaedsi Omer T,an Named Runs, —
Cap icltyges) Claimed Ey Signege)
Signers Name:
who provep to me an the more of satisfactory aelJetve to
- Iresedual
To the amounted whose remelPl lasser subscri oed to Me
morporbe OMcer—Thous)
within instruna l and adnowledged to me Thai
_ Pannet= Limited General
FgW itwy a ecutee me same In Fislriffi ledrr euthorlxa
Altomey In Fear
rapacTy(Ivsl, and that by hlsme item slgrletural on the
Means ueeFxseutsox
informal the personeef, or the entity upon Whall of
Commlulen 1119003
which the personpoll fair eaecu red the instrument.
WON Intel canon I
mom �mmn ra.
fmm cou
I county under PENALTY OF PERJURY wtler the laws
Camr =J2Trz
M me Sime of Common that the foregoing paragreph is
true am eorem
WITNESS my no officials
f Other
Sign l nub. rube
6iBnar 18 Gepresanhrg:
OPTIONAL
ibmgd No Ntirmxr;m bebw u bar real
by lew, ?r On of reNede mperi rwv*f? be Mn do"l
a Poaoalem re.wr«la,d
mescal of has m;m 0 notable aaaraar.
Description OF Af abo eel Decurrent
The or type of Dommenc
Doamem oat
xumi M Peps:
sisaedsi Omer T,an Named Runs, —
Cap icltyges) Claimed Ey Signege)
Signers Name:
Signers Name'.
- Iresedual
-. Filvie l
morporbe OMcer—Thous)
— Cmpamre Ghat—Trial'
_ Pannet= Limited General
_Parmer—rLabitl IOanwall
Altomey In Fear
_ Anorney in Fact
_ Tmsta
'mwu..,ummc
Tmtleo
mom �mmn ra.
F Gurl or Comments
Gaboder, or Owmen'ator
I One,:.
f Other
6iBnar 18 Gepresanhrg:
Sgrler Is napmsetntng
CALIFORNIA ALL-PURPOSE ACKNOWLEOOMENT
State of C Aifimniaa�
co,lnty of 145eSii u
cn/alfto"' i0 batch, me, 4y ettc &L'ee%(�,
personally appegrea /i4 /enP_lo-ii if
who prweo to Per on the basis N satlstanwy deradded N
Ind the personlai whose newel IAi aulscdlrea to Ne
within insWment and acknowledged to me that
aatsnerYmr arrowed Me same in+nsmomn:raulnorliea
uxerrt Itcrtm.upeax capecityflpe), and that dyw2merrtharc sgnatureta) on Ne
cemmwmn r veeW) instrument the pereon}e{, or the arty upon behalf of
Malory sumo co ,ro 1 which the persorrf$j acted, exec.red the inrnumenr.
na.ne cw y
m e IZ=i I certify under PENALLY OF PENURY under the laws
of Me Sateof Calrrorme Mat the Standing paragraph Is
true and correct.
WITJESS my 'dna onlriat seal
,... ry Signa v» nfrous
w iu uv�
OPTIONAL
rough me rewrree by Art, n may PMAM math a do"i rri on lne emmrnrr
^dmrip
a omrr,rapmrmrWianaam rmnn.mannremuonmenrorrnhmmr marmuarmeumenc
Deunptfon of A r had Document
Title of Type of Document:
Document Dale.
Slgnarlxl Other Than Named Pbcae:
Capecityrlee) Clallred by Shaming)
Number of All
Signers Name:
Signers Name_
_ mdrvidual
Individual
— Cap ...le OBcar— Fill .
_Lorymate Officer —IMM)
Partner— Ilmnad _General
—summer— Ibmil JGoniond
- Murray in Fact
Fnomey in Fact
Trustee
' r1m
_Trustee
vO°VO9
_ Guardian Or Conservator
_ Guardroom or communal
— Other
..Other
Signer Is dandruff
signer Is Peprbanling:
EXHIBIT "N'
LEGAL DESCRIPTION OF PROPERTY
THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA. COUNTY
OF FRESNO, CITY OF FRESNO, AND IS DESCRIBED AS FOLLOWS:
LOTS 29 AND 30 IN BLOCK A, OF ELM GROVE ADDITION TO FRESNO CITY, IN THE CITY
OF FRESNO, COUNTY OF FRESNO, ACCORDING TO THE MAP THEREOF RECORDED IN
BOOK 1 PAGE 31 OF PLATS, RECORDS OF SAID COUNTY.
APN 459-312-19
WE
EXHIBIT "B"
Performance and Payment Schedule
SCHEDULE OF PERFORMANCE
Items Completed
Time for Performance
Estimated Dell
Agency agendlres Item for f/oueng and
On or before June 4, 2010
June 4, 2010
CommunityDevelopment Commission
Housing and Community Development
June 9. 2010
Commissbn hears item and makes
recommendation to City Coundl
Agencyagendizesitemfor AgenryB M
September29,2010
meeting
Agency Sherd hears ism
October 21 2010
Submission -Certifi ms ofl The
Within 15 days after approval
of this Agreement by the
November 5, 2010.
Owner furnishes to the Agency appropriate
ownfvates of bodily injury and property
Agency Boand.
damage insurance policies.
November 15, 2010.
Approval- Carfifcates of lnsu ince
Within 10 days after receipt
Agency approves or disapproves Owner's
thereof by the Agency,
submission of appropriate certificates of
bodily injury and property damage insurance
policies;
Agencir executrusligneament
October 21, 2010
Commencement of Rehabilitation of Owner's
On a schadvle that will
coordinate wife the Owners
Navrmber 14, 2010
Improvements. Within 30 days after receipt
of building permits by the Owner,
construction schedule.
rehabilitation shall commence on the units
on the Project Site.
WiUln the specified months
after commencement thereof
February 14, 2011
Completion of Remarilitatiorl
Improvements The Owner shall complete
rehabilitation at the Improvements to be
by the Owner, not to exceed 6
constructed on the Project Site
martins after commencement
of construction
Prompdyaftercbmpletlonofall
rehabilitation and upon written
Issuance-Cendlciiteof Completion The
March14,2011
Agency shell furnish the Owner with a
Certalrate of Completion on the Project.
request thereof by the Owner.
32 -
SCHEDULE OF LOAN DISBURSEMENTS
Disbursements are to be made in two payments:
Concurrently wltb Issuance of Building Pertness: [$34,500 Loan]
At Completion of Construction and Issuance of
Certificate of Completion by Agency: [$34,500 Loan]
SCHEDULE OF LOAN REPAYMENT
Months 1-36 After Certificate of Completion: $0.00/Month
Months37-276 After Cenifoate of Completion: $34906/Month
-33-
EXHIBIT "C'
xov` e
Total Cost per unit
BudgeUFinancial Plan
Net Operating income(N01)
60% $ 36,500
Sources of Funds
14,739
Debt Service Coverage Ratio
1,23
Permanent Loan (lst Tmst Deed)
$
1O9,425
Gap Financing
5
69,000
Developer Equity
$
63,125
Total Sources
$
241,550
Uses of Funds
210,552
Loan to Value (LTV)
52%
Project Acquisition
$
149,000
Closing Costs and Soft Costs
$
14,852
Direct Rehabilitation Costs
$
72,053
General Requirements
$
2,161
Contractor Overhead
$
2,161
Contractor Profit
5
4.323
ram uses 5 241,550
Return on Equity/Gap Calculations
xov` e
Total Cost per unit
100% 5 60,389
Net Operating income(N01)
60% $ 36,500
5
14,739
Debt Service Coverage Ratio
1,23
Allowable not Service Based on NOI
5
11,952
Typical Cap Hate
T.o%
Fair Market Project Value based on Cap Rate
5
210,552
Loan to Value (LTV)
52%
Loan based on LTV
5
109.425
Total Project Cast
$
241,550
Less inherit Wan based on LTV
5
(109,425)
Less Developer Equity
5
(63,125)
Equity/Gap Financing Needed
$
691"
ota�l Assistance Request $ 69p00
Cash On Cash Return 4.4%
Cost Per Unit Calculations
xov` e
Total Cost per unit
100% 5 60,389
Toni Acquisition cost per Unit (4)
60% $ 36,500
-34-
Total Closing Cost& Soft Cost per Unit (4)
6%
$
3,713
Total Hard Cost per Unit (4)
30%
$
18,013
Total Soh Cost per Unit (4)
2%
$
1,081
Contactor Profit per Unit (4)
2%
S
1,081
Requested Subsidy per affocEable unR)4)
$
17,250
Annual Agency Debt Sedice)20 years, 2%)
$418@.71
Monthly Agenry Debt Service
$
34906
Annual Mortgage Debt Service (30 years, GS%)
$7,76339
Monthly Mortgage Debt Service
$
646,94
- 35 -
EXHIBIT"D"
Certificate of Completion
CERTIFICATE OF COMPLETION
RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO:
Redevelopment Agency of the City of Fresno
2300 Tulare St., Sulte 200
Fresno, Ca. 93121
Attention: Executive Dxector
(SPACE A60vE 110S UNE rdi RECORDERS VSE)
This Certificate of Completion is recorded at the request and for the benefit of the
Redevelopment Agency of the City of Fresno and is exempt from the payment of a
recording fee pursuant to Government Code Section 6103.
Redevelopment Agency of the City of Fresno.
A public body, corporate and politic
By:
Marlene Murphey
Its: Executive Director
-46-
Cedficate of Completion
College Apartments, 122 N. College Avenue
Residential Rental Project
RECITALS:
A. By an Owner Participation Agreement (the "AgreemenP) dated
I 1, 2010 between Jeffrey Altimus, an Individual ('Owner') and the
Redevelopment Agency of the City of Fresno, a public body corporate and politic
('Agency'), Owner agreed to rehabilitate certain residential units on the premises legally
described in Attachment -1' hereto (the "Property') and preserve the Affordable Units,
as defined In the Agreement as rental housing for Low- and Moderate -Income
Households with the assistance of Agency housing set aside funds while meeting the
Affordable Housing, income targeting and other requirements of the Community
Redevelopment Law act forth at California Health and Safety Code Sections 33000 at
seq. for a fifty-five (55) year Affordability Period according to the terms and conditions of
the Agreement
B. The Agreement was recorded on L 1, 2010 In the Official
Records of Fresno County, California as Instrument No.
C. Under the terms of the Agreement, after Owner completes me rehabilitation on
the Property, Owner may ask Agency to record a Certficate of Completion.
O. Owner has asked Agency W furnish Owner with a recordable Certificate of
Completion.
E. Agency s issuance of this Certificate of Completion is conclusive evidence that
Owner has completed the construction on the Property as set forth in the Agreement
NOW THEREFORE:
1. Agency coffee that Owner commenced the construction wont an the
Project on I 1, 20, and completed the construction
3]-
work on the. Project on , 20, and has done so in full compliance
Nth the Agreement.
2, This Certd'mate of Completion is not evidence of Ownees compliance with,
or satisfaction of any obligation to any mortgage or security interest holder, or any
mortgage or security interest Insurer, securing money lent to finance wmk on the
Property or Project, or any part of the Property or Project.
3. This Certificate of Completion is not a notice of completion as referred to
In CalHomia Civil Code section 3093.
4. Nothing contained herein modRas any provision of the Agreement.
IN WITNESS WHEREOF, the Agency has executed this Certificate of
Completion as of this _ day of , 20
Redevelopment Agency of the City of Fresno
A public body, corporate am politic
Mariene Murphey
Executive Director
1Al
Owner hereby consents to rewrding this Cedif,de of Completion against the
Property described herein.
Dated.201
Jeffrey Altimus, an Individual
Jeffrey Altimus
THE ABOVE PARTIES ARE TO SIGN THIS INSTRUMENT BEFORE A NOTARY
PUBLIC.
ATTEST: APPROVED AS TO FORM:
REBECCA KLISCH JAMES C. SANCHEZ
Ex -Officio Clerk Ex -Officio Attorney
Redevelopment Agency of the City of Fresno Redevelopment Agency of the City of
Fresno
By: By:
Deputy Deputy
Dated Dated
-39-
ATTACHMENT
LEGAL DESCRIPTION
Real property in the City of Fresno, Fresno County, California, described as inflows'
THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY
OF FRESNO, CITY OF FRESNO, AND IS DESCRIBED AS FOLLOWS:
LOTS 29 AND 30 IN BLOCK A, OF ELM GROVE ADDITION TO FRESNO CITY, IN THE CITY
OF FRESNO, COUNTY OF FRESNO. ACCORDING TO THE MAP THEREOF RECORDED IN
BOOK 1 PAGE 31 OF PLATS. RECORDS OF SAID COUNTY,
APN 459-312-19
4p_
EKH8R "E"
SCOPE OF WORK
Unit
azz N. College AW Breakdown
four 2 Bedroom/a Bath
Fresno, GlHemb UnNs.
-41-
Unit
Extended
_
Quantic
Price
Price
FINISHES
4 1,690
Carpet and Vinyl
Drywall Repair add Complete interior Paint in
q
1,200
4,600
Re lace Damaged Wood and Complete Exterior Palrohng
4500
UPDAM FRONT EIEV7.TIDx
Roof Pop Out
1,500
2,500
450
Stairway Half Wall
Corbles
Shingle Siding
31500
3.,DDC
Stucco
Facia
Center Ttlm (Belly Bandl
Frchdesz
Flashing
560
300
Spp
375
pmmits
_s_PECINLTIES
Restroom gccessories Including: Medicine Cabinets, TP
_ Holders and Towel Bar
Kitchen and Bath Gdrets& Plastic
50_D
_4
230
1,pLM1
-41-
L .Aminate CounterTops
Appllances(stove and rehigeaton
4
1,929
2,316
a
450
316M
Install Kitchen& Bath bdmusts
a
320
960
FURNISHINGS
Window Blinds
4
M)
2,000
ME_CHMIM
Kitchen Sing Garbage Disposal and Faucetthmom
lavatory and Faucet, Shower Valves
4
1,233
4,932
New AC and Heading Unit
4
3,500
14,IX0
ROOFING
Replace Roof
2ra00
ELECFRIGL
4
450
1,800
Ught Fixtures
SU9-T0TAL
22,053
GENERAL RE0UIREIA N
3%
2,162
mmmm
3%
6% 1
2,162
IRPOFIT
4,323
_
TMAL RENMIWATION
$09;699
-42-
PROPOSED CONDITIONIEXTERIOR
44-
EXHIBIT "F"
REGULATORY AGREEMENT AND
DECLARATION OF COVENANTS AND RESTRICTIONS
FREE RECORDING REQUESTED BY
AND WHEN RECORDED MIL TO:
REDEVELOPMENT AGENCY
OF THE CITY OF FRESNO
2344 TulareSVM
Fresno. CA 93721
Am: Executive Director
(speaaw ml.wa mr mluxlsreomsu® w
REGULATORY AGREEMENT AND
DECLARATION OF COVENANTS AND RESTRICTIONS
THIS REGULATORY AGREEMENT AND DECLARATION OF COVENANTS
AND RESTRICTIONS ("Agreement") is made and entered Into this _ day of
by and between the REDEVELOPMENT AGENCY OF THE
CITY OF FRESNO, a public body, corporate and polific ("Agency), and JEFFREY
ALTIMUS, an Individual ("Owner').
RECITALS:
A. Pursuant to an Owner Participation Agreement by and between Agency
and Owner dated 2010 (the "OPA"), Agency has provided to
Owner financial assistance in the amount of Sixty Nine Thousand Dollars ($69,000,0)
in loan funds (the "Agency Assistance"), for the purpose of assisting Owner in the
rehabilitation of a residential apartment complex thereon wherein one hundred percent
(100%) of the units shall be rented to low income households. on that certain real
property located in me City of Fresno, County of Fresno, State of California, more
particularly described In Attachment '1" attached hereto and incorporated herein by
reference (the "Site").
B. Pursuant to the OPA, Owner has agreed to rehabilitate and maintain a
rental apartment housing project consisting of four (4) total residential units (hereinafter
referred to collectively as the "Project") on the Property. The Project is also referred! to
-45-
in the OPA as the "Project; and is further described in the Scope of Wod attached to
the OPA.
C. Agency, City, and Owner now desire to place restrictions upon the use
and operation of the Project, in order to ensure that the Project shall be opereted
continuously as a rental apartment housing project available for rental by low Income
persons for the term of this Agreement.
AGREEMENT:
NOW, THEREFORE, the Owner and Agency declare, covenant and agree, by
and for themselves, their helm, executors, administrator: and assigns, and all persons
claiming under or through them, that the Property shall be held, transferred,
encumbered, used, sold, conveyed, leased and occupled, subject to the covenants and
restrictions hereinafter set forth, all of which are declared to be In furtherance of a
common plan for the Improvement and sale of the Property, and are established
expressly and exclusively for the use and benefit of the Agency, the residents of the City
of Fresno, and every person renting a dwelling unit an the Property.
AFFORDABILITY RESTRICTIONS RUNNING WITH LAND
In addition to the covenants and conditions contained In the Agreement, the
following California Community Redevelopment Law (California Health 8 Safety Code
Section 33000 at seq.) affordability requirements shall be imposed upon the 4
Affordable Units on the Property funded under the Agreement and shall bind the Owner
and all purchasan; of the Property and their successors for a fifty-five (55) year period.
The Affordable Units on the Property are held and will be held. transferred,
encumbered, used, sold, conveyed and occupied subject to the covenants, restrictions,
and limitations set forth in this Agreement, all of which are in furtherance of the Project,
the Agency's Community Redevelopment Law and Plan Area obligations including
Agency's obligations set forth at California Health 8 Safety Code sections 33334.2 at.
seq. and 33413 (a) with respect to Housing Set Aside Funds and replacement dwelling
units at affordable rent within the jurisdiction of the Agency. All of the restrictions,
covenants and limitations will run with the land and will be binding on all parties having
or acquiring any right, title or interest in the Affordable Units upon the Property or any
-0-
part thereof, will Inure to the benefit of the Agency, and will be enforceable by R. Any
purchaser under a contract of sale or other transferee of an interest covering any right,
title or interest in any pad of the Affordable Unfis upon the Property, by accepting a
deed or a contract of sale or agreement of purchase, accepts the document subject to,
and agrees to be bound by, any and all restrictions, covenants, and limitations set forth
In this Agreement for the period of Ir ty-five (55) years running tram and after recordation
of Agency's Certificate of Completion constituting fine Affordability Period.
1. Restrictions. The following covenants and restrictions ("Restrictions") on the use
and enjoyment of the Affordable Units upon the Property shall be in addition to any
other covenants and restrictions affecting the Property, and all such covenants and
restrictions are for the benefit and protection of the Agency and shall con with the
Affordable Units upon the Property and be binding on any future owners of the Property
and inure to the benefit of and be enforceable by Agency. These covenants and
restrictions are as follows:
a. From the date of recordation of Agency s Certfficate of Completion untl
the expiration of the Affordability Period me four (4) Affordable Units funded under the
OPA are to be used as Affordable Rental Housing and affordable replacement dwellings
as provided for In me OPA and this Agreement. Owner agrees to file a recordable
document setting forth the Project Completion Date as contemplated by me OPA. The
Affordability Period shall commence as of the Project Completion Date. Unless
otherwise provided in the DPA, the lens "Affordable Rental Housing' shall include
without Ilmdztion compliance with the following requirements
Nondiscrimination. There shall be no discrimination against nor
segregation of any person or group of persons on account of race, color,
creed, religion, sex, marital status, national origin, ancestry, or handicap in
the sale, transfer, use. occupancy, tenure, or enjoyment of any of the
Property, nor shall Owner or any person claiming under the Owner,
establish or permit any practice of discrimination or segregation with
reference to the selection, location, number, use or occupancy of owners
or vendees of the Properly.
Principal Res tlence. Each of the Affordable Units upon the Property shall
be leased only to natural persons, who shall occupy such as a principal
residence.
-47-
Income Requirement . Each of the 4 Units constituting Low Income
Affordable Rental Housing upon the Property may be leased only to (a)
natural persons) whose annual household income at Me bme of initial
occupancy is not greater than sixty percent (60%) of the =at recent
annual median income calculated and published by HUD for the Fresno
Metropolitan Statistical Area applicable to such household's size, and at
an affordable price consistent with the applicable California
Redevelopment Law.
Inlunct've Relief d Receptors. Should any of the 4 Affordable Units
constituting Low Income Affordable Rental Housing upon the Property not
continue to be the principal residence of a Household that qualifies as a
low-income household during the Affordability Period, such Units) shall
bemade available for subsequent lease only to Households that qualify as
a very low-income for use as the Household a principal residence.
2. Income
Computation and Certification
Reporting. Prior
to each Household's
occupancy of
an Affordable Unit, Owner
shall comply with
all of the following
requirements:
a. Income Computation. Immediately prior to a Household's
occupancy of an Affordable Unit, Owner shall obtain and maintain on file
an Income Computation and Certification form, attached hereto as
Attachment "2", tram each such Household dated immediately prior to the
date of initial occupancy in the Project by such Household. In addition, the
Owner will provide such further information as may be required in the
future by the Agency. Owner shall use Its best efforts to verify that the
income provided by an applicant is equate by taking the following steps
as a part of Me verification process: (i) obtain three (3) pay stubs for the
most recent pay periods; (it) obtain a will verification of income and
employment from applicant's current employer, (iii) obtain an income
verifcallon forth from Me Social Security Administration and/or California
Department of Social Services K the applicant receives assistance from
either agency; (iv) if an applicant is unemployed or did not file a tax return
for the previous calendar year, obtain other verification of such applicant's
income as is satisfactory to the Agency; or (v) such other information as
may be requested by the Agency. A copy of each such completed Income
Computation and Certification form shall be fled with the Agency prior to
the occupancy of an Affordable Unit by a Household whenever possible,
but in no event more than thirty (30) days after initial occupancy by said
Household-
-4H-
b. Income Recertification. Immediately prior to the first anniversary
date of the occupancy of an Affordable Unit by a Household and on each
anniversary date thereafter. Owner shall recertify fine Income of such
Household by obtaining a completed Income Computation and
Certificated based upon the current income of each occupant of line
Affordable Ung. In the event the recertification demonstrates that such
Household's Income exceeds the income at which such Household would
qualify to rent the Affordable Unit, such Household will ria longer qualify
for Affordable Moderate Income Reid. Owner shall provide the Agency
with a copy of each such completed recertification with the neat
submission of Certificate of Continuing Program Compliance, as specified
herein.
a Certificate of Continuing Program Compliance. Upon the issuance
of the Certificate of Completion and annually by January 31 of each year,
or at any time upon the written request of Agency, Owner shall advise the
Agency of the occupancy of the Project by delivering a Contests of
Continuing Program Compliance, attached hereto as Attachment "S,
certifying: (i) the number of Affordable Units of the Project which were
occupied or deemed occupied pursuant to this Agreement by a Household
during such period: and (ii) to the knowledge of Owner either. (a) no
unremedied default has occurred under this Agreement; or (b) a default
has occurred, in which event the Cedificate of Continuing Program
Compliance shall describe the nature of the default and set forth the
measures being taken by the Owner to remedy such default.
J. Maintenance of Records. Owner shall maintain complete and
accurate recons pertaining to the Affordable Units, and shall permit any
duly authorized representative of the Agency to inspect the books and
recons of Owner pertaining for the Project including, but not limited to,
those recons pertaining b the occupancy of the Affordable Units.
e. Reliance on Tenant Representations. Each lease between Owner
and a Household shall contain a provision to the effect that Owner has
relied an the income certRcation and supporting information supplied by
the Household in determining qualification for occupancy of the Affordable
Unit, and that any material misstatement in such codification (whether or
not Intentional) will be cause for Immetliale termination of such lease.
3. Enforcement of Restrictions Without waiver or limitation, the Agency shall be
entitled to injunctive or other equitable relief against any violation or attempted violation
of the Restrictions, and shall, in addition, be entitled to damages for any injuries or
losses resulting from any violations thereof.
-49-
4. Acceptance and Ratification All present and future owners of the Property and
other persons claiming by, through, or under them shall be subject to and shall comply
with the above Restrictions. The acceptance of a dead of conveyance to the Property
shall constitute an agreement that the Restrictions, as such may be amended or
supplemented from time to time, Is accepted and ratified by such future owners, tenant
or occupant, and such Restrictions shall be a covenant running with the land and shell
bind any person having at any time any interest or estate in the Property, all as though
such Restrictions were recited and stipulated at length In each and every deed,
conveyance, mortgage or lease thereof.
S. Benefit. This Agreement and the Restrictions herein shall run with and bind the
Property for a term commencing on the date which this Agreement Is recorded in the
Office of the Recorder of the County of Fresno, State of California, and expiring upon
the expiration of the Affordability cannot. The failure or delay at any time of Agency
and/or any other person counted to enforce these Restrictions shall In no event be
deemed a waiver of the same, or of the right to enforce the same at any time or from
time to time thereafter, or an estoppel against the enforcement thereof.
8. Costs and Attomev's Fees, In any proceeding arising because of failure of
Owner or any future owner of the Property to comply with the Restrictions required by
this Agreement, as may be amended from time to time. Agency shall be entitled to
recover its respective costs and reasonable attorney's fees incurred in connection with
such default or failure.
7. Waiver. Neither Owner nor any future owner of the Property may exempt itself
from liability for failure to comply with the Restrictions required in this Agreement.
8. Seveabllity. The invalidity of the Restrictions or any other covenant, castration,
condition, limitation, or other provision of this Agreement shall not impair or affect in any
manner the valdi enforceability, of effect of the rest of this Agreement and each shall
be enforceable to the greatest extent permitted by law.
9. Pronouns. Any reference in this Agreement and the Restrictions therein to the
masculine, feminine, or neuter gentler herein shall, unless the context clearly requires
the contrary, be deemed to refer to and include all gerWers. Wards in the singular shall
include and refer to the plure. and vice versa, as appropriate.
-so-
10. Intemretation The captions and titles of the various articles, sections,
subsections, paragraphs, and subparagraphs of this Agreement are inserted herein for
ease and convenience of reference only and shall not be used as an aid In interpreting
or construing this Agreement or any provision hereof.
11. Capitalized Terms. All capitalized terms used in this Agreement, unless
otherwise defined herein, shall have the meanings assigned to such terms in the OPA.
12. Amendments. This Agreement shall be amended only by a written Instrument
executed by the parties hereto or their successors in title, and duly recorded in the real
Property records of the County of Fresno.
13, Notice. Any notice required to be given hereunder shall be made in writing and
shall be given by personal delivery, certified or registered mail, postage prepaid, return
reoeipl requested, at the addresses specified below, or at such other addresses as may
he specified in wrifing by me parties hereto:
Agency
Redevelopment Agency
of the City of Fresno
2349 Tulare Street, Suite 200
Fresno, CA 93721
Attn: Executive Director
Copy to:
Agency Ex -Officio Attorney
do Fresno City Attorney
Fresno City Hall
2600 Fresno Street
Fresno, CA 93721
Owner:
JEFFREY ALTIMUS
261 N Van Ness Avenue
Fresno, CA 93701
The notice shall be deemed given three (3) business days after the date of
mailing, or, If personally delivered, when received.
14. GOVERNING IAW. This Agreement shall be governed by the laws of me State
of California.
-51 -
15. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall constitute one original and all of which shall be one
and the same instrument.
16. FURTHER ASSURANCES. The parties will execute such other and further
documents and will take other steps necessary, helpful, or appropriate to carry out the
provisions of this Agreement.
[END— SIGNATURES ON NEXT PAGE]
-52-
IN WITNESS WHEREOF, the Agency and Owner have executed this Regulatory
Agreement and Declaration of Covenants and Restrictions by duly authohzed
representatives on the date first written hereinabove.
"AGENCY"
ATTEST:
REBECCA KLISCH
Ex-ORclo Clerk
Redevelopment Agency of the City of
Fresno
By:
Deputy
APPROVED AS TO FORM:
JAMES C. SANCHEZ
Ex -Officio Agency Attorney
Redevelopment Agency of the City of
Fresno
REDEVELOPMENT AGENCY
OF THE CITY OF FRESNO
a public body, corporate and politic
By:
Marlene Murphey
Executive Director
"OWNER"
JEFFREY ALTIMUS, an Individual
JEFFREY ALTIMUS
SEND OF SIGNATURES]
g3 -
Attachments:
Attachment 1: Legal Description of Property
Attachment 2: Income Computation and Certification loom
Attachment 3: Certificate of Continuing Program Compliance
-54-
STATE OF CALIFORNIA )
)as.
COUNTY OF
On before me, , personally
appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose names) is/am subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(les), and that by hislherttheir signatures(s) on the instrument the person(s) or
the entity upon behalf of which the persons) acted, executed the Instrument.
Witness my hand and official seal.
Notary Public
[SEAL)
STATE OF CALIFORNIA )
ss.
COUNTY OF
On
appeared
Personally
personally known to me (or proved to me on the basis of satisfactory evidence) to be
the persons) whose names) is/am subscrbed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her%heir authorized
capacity(les), and that by his/her/their signatums(s) on the Instrument the person(s) or
the entity upon behalf of which the persons) added, executed the Instrument.
Widneas my hand and official seal.
Notary Public
[SEAL]
-55-
ATTACHMENT
LEGAL DESCRIPTION
Real property in the City of Fresno, Fresno County, Callfomla, descbbetl as follows:
THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA. COUNTY
OF FRESNO, CITY OF FRESNO, AND IS DESCRIBED AS FOLLOWS:
LOTS 29 AND 30 IN BLOCK A, OF ELM GROVE ADDITION TO FRESNO CITY, IN THE CITY
OF FRESNO, COUNTY OF FRESNO, ACCORDING TO THE MAP THEREOF RECORDED IN
BOOK 1 PAGE 31 OF PLATS, RECORDS OF SAID COUNTY.
APN 459-312-19
-56-
EXHIBIT "G"
PROMISSORY NOTE
DO NOT DESTROY THIS NOTE: When paid, this note must be surrendered to
Borrower for cancellation.
$69,000.00 Fresno, California
2010
For value received, the undersigned, Jeffrey Altimus, an Individual, ("Borrower"),
promises to pay to the order of the Redevelopment Agency of the City of Fresno
("Lends'), the sum of Sixty -Nine Thousand Dollars ($69,000.00), to the extent that such
funds are loaned to Borrower, with Interest in the amount of 2% per annum on the
unpaid principal balance, YOM interest accruing thirty six (36) months from the data of
the recordation of the Certificate of Completion, payable penodically as described
herein. This Promissory Nate ("Note") is made and entered into In accordance with the
lentis of the Owner Participation Agreement dated ( 12010, entered into
between BonowerarW Lender("Agreement")
Commencing on the First day of the thirty seventh (37th) month from the data the
"Certificate of Completion" for the "Project" as described in the Agreement is recorded in
the Official Records of Fresno County, California (the "Payment Commencement Date'),
and continuing on the same date of each month thereafter until the date which Is twenty
three (23) years after the data of the recordation of the Certificate of Completion
("Maturity Date"), Borrower shall pay the principal and Interest in monthly installments
equal to $349.06 (N the principal balance of this Note on the Payment Commencement
Date Is $69,000.00). Such monthly payments shall continue until the Maturity Date at
which time the entire remaining unpaid balance of principal, together with interest and
unpaid penalties or late charges where applicable thereon shall be all due and payable,
along with allomey's fees and costs of collection, and wkhout relief from valuation and
appraisement laws.
Any failure to make a payment required hereunder shall constitute a default
under this Note.
All capitalized terms used In this Note, unless otherwise dented, will have the
respective meanings specified in the Agreement.
This Note, and any extensions or renewals hereof, is secured by a [Deed of
Treat, Security Agreement and Fixture Filing with Assignment of Rents] on real estate in
Fresno County, California (the Property I, dated as of the same date as this Note, and
executed in favor of and delivered to the Lender ('Deed of Trust'). The Dead of Trust
provides for acceleration upon stated events.
-58-
Time Is of the essence. It will be a default under this Note If Borrower defaults
under the Agreement or other Project Loan Documents (as defined In the Agreement) if
Borrower fails to pay when due any sum payable under this Note or under any other
obligation secured by a deed of trust or other lien senior to the dead of heal which
secures this note. In the event of a default by Borrower, the Borrower shall pay a late
charge equal to 2% of any outstanding payment. All payments collected shall be
applied first to payment of any costs, fees or other charges due under this Note or any
other Project Loan Documents then to the interest and then b principal balance. On the
occurrence of a default or on the occurrence of any other event that under the terns of
the project loan documents give rise to the right to accelerate the balance of the
indebtedness, then, at the option of Lender, this Note or any notes or other Instruments
that may be taken In renewal or extension of all or any part of the Indebtedness will
immediately become due without any further presentment, demarm, protest, or miles of
any kind.
The indebtedness evidenced by this Note may, at the option of the Bormwer, be
prepaid In whole or in pan, at any time, without penalty. Lender will apply all the
prepayments first to the payment of any costs, fees, late charges, or other charges due
under this Note or under any of the other Loan Documents and then to the interest and
then to Ne principal balance.
All payments are payable in lawful money of the United States of America at any
place that Lender or the legal holders of this Note may, from time to time, in writing
designate, and in the absence of that designation, then the Lender at its address of
record provided in the Agreement.
Borrower agrees to pay all costs including, without limitation, attorney fees.
incurred by the holder of this Note in enforcing payment, whether or not suit is fled and
including, without limitation, all costs, atlpmey fees, and expenses incurred by the
holder of this Note In connection with any bankruptcy, reorganization, arrangement, or
other similar proceedings involving the undersigned that in any way affects the exercise
by the holder of this Note of its rights antl remedies under this Note. All costs Incurred
by the holder of this Note in any action undertaken to obtain relief from the may of
bankruptcy statutes are specifically included in those costs and expenses to be paid by
Borrower. Borrower will pay to Lender all attorney fees and other costs marred to in
this paragraph on demand.
Any notice, demand, or request relating to any matter set forth herein shall he in
writing and shall be given as provided In the Agreement.
No delay or omission of Lender in exercising any right or power mixing In
connection with any default will be construed as a waiver or as an acquiescence, nor
will any single or partial exercise preclude any further exercise. Lender may waive any
of the conditions in this Note and no waiver will be deemed to be a waiver of Lenders
rights under this Note, but rather will be deemed to have been made in pursuance of
59 -
Nis Note and not In modification. No waiver of any default will be construed to be a
waiver of or acquiescence In or consent to any preceding or subsequent default,
The Deed of Trust provides as follows:
DUE ON SALE -CONSENT BY BENEFICIARY. Beneficiary may, at its
option, declare immediately due and payable all sums secured by this
Deed of Trust upon the sale or transfer, without the Beneficiary's prior
written consent, of all or any part of the Land, or any interest in the Land.
A "sale or transfermeans the conveyance of Property or any night, title or
Interest therein; whether legal, beneficial or equitable; whether voluntary
or involuntary; whether by outright sale, deed, installment sale contact,
land contact, contact for deed, leasehold interest with a tens greater
than three (3) years, lease -option contact, or by sale, assigmment, or
transfer of any beneficial Interest in or to any land trust holding title to the
Property, or by any other method of conveyance of Property interest. If
any Trustor is a corporation, partnership or limited liability company,
transfer also Includes any change in ownership of more than fifty percent
(50%) of the voting stock, partnership interests or limited liability company
interests, as the case may be, of Trustor, other than a transfer to the
managing member of Trustor or an affiliate of the managing member,
However, this option shall not be exercised by Beneficiary H such exercise
is prohibitetl by applicable law.
Lender may transfer this Note and deliver to the transferee all or any part of the
Property then held by It as seventy under this Note, antl the transferee will then become
vested with all the powers and rights given to Lender, and Lender will then be forever
relieved from any liability or responsibility in the matter, but Lender will retain all rights
and powers given by this Note with respect to Property not transferred.
If any one or more of the provisions in this Note is held to be invalid, illegal, or
unenforceable in any respect by a court of competent jurisdiction, the validity, legality,
and enforceability of the remaining provisions will not in any way be affected or
Impaired. This Note will be binding on and inure to the benefit of Borrower, Lender, and
their respective successors and assigns.
Borrower agrees that this Note will be deemed to have been made under and will
be governed by the laws of California in all respects, including matters of construction,
validity, and performance, and that none of its terms or provisions may be waived,
closed, modified, or amended except as Lender may consent to in a writing duly signed
by Lender or its authorized agents.
The Loan shall be non-recourse to the Borrower and all constituent members of
the Borrower.
ulb
IN WITNESS WHEREOF, Borrower has caused this Note to be executed by
Borrower or Borrowers authorized agerdfs) as of the date and year fast above writler.
Borrower.
Jeffrey Altlmus, an Individual
61 .
EXHIBIT 'His
DEED OF TRUST
RECORDING REQUESTED BY:
Title CamVany
Eacrew all
Locate No.:
TRIS No.
When Recor4ed Mall Oocunrem To:
Redevelopment Agency of tire City of Fresno
23" Tulare St, Suite 200
Fremq n Exeir 1
Fron o,AftentiCag 3721 Director
APN: 45&312-19 SrAce neovc.nllS USE MR
RECORISCS USE
INSTRUCTIONS TO COUNTY RECORDER:
Index the Instrument as
(I) a Dees W Tmat and
IIP a Fbwre Fling
DEED OF TRUST AND ASSIGNMENT OF RENTS
This DEED OF TRUST AND ASSIGNMENT OF RENTS ("Deed of Trust") is
entered into between Jeffrey Altimus, an Individual, whose principal office is at 261
North Van Ness Avenue, Fresno, California 93701 (the "Trusto/'), in favor of
TITLE COMPANY, whose address is Fresrw,
CA 93711 (the 'Trustee"), for the herrefit of the REDEVELOPMENT AGENCY OF THE
CITY OF FRESNO (the "Beneficiary'), with offices at 2344 Tulare St., Suite 200,
Fresno, Calhomla 93721.
THE TRUSTOR IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS TO
THE TRUSTEE, in trust, with the power of sale, the real property in the City of Fresno,
Fresno County, Califomia, more particularly described in Attachment 1 attached hereto
and made part hereof by reference (Me "Property'), together with.
(i) All tenements, heredhaments and appurtenances of or to the Property,
Including without limitation all easements and rights used in Connection therewith or as
a means of access thereto, all right, fitle and Interest of the Trustor, now owned or
hereafter acquired, in any land lying within the right-okway of any street, open or
Proposed, adjoining the Pmpeny, and any and all sidewalks, alleys, strips and other
areas of land adjacent to or Used in Connection wtth the Property:
-62-
(II) All oil and gas or other mineral rights in or pertaining to the Property and
all loyalty, leasehold and other rights of the Truster pertaining thereto;
(Iii) All water rights pertaining to the Property and shares of stock evidencing
the same, and all deposits made with or other security given to utility companies by the
Trustor with respect to the Property;
IN) The rents, issues and profits thereof, subject, however, to the right, power
and authority of Trustor to collect and apply such rents, Issues and profits and set forth
in this Dead of Treat;
(v) All buildings and improvements of every kind and descrildon now or
hereafter erected or placed on the Property, and all fixtures thereon, including, but not
limited to, all gas and electric fixtures, engines and machinery, radiators, heaters,
furnaces, heating equipment, laundry equipment, steam and hot water bailers, stoves,
ranges, elevators and motors, bath tubs, sinks, water closets, basins, pipes, faucets and
other plumbing and heating fixtures, mantels, cabinets, refrigeration plant and
refrigerators, whether mechanical or otherwise, cooking apparatus and appurtenances,
and all shades, awnings, screens, blinds and other furnishings, it being hereby agreed
that all such fixtures and furnishings shall to the extent permitted by law be deemed
permanently affixed to and a part of the really
(vi) All building materials and equipment now or hereafter delivered to the
Properly and intended to be Installed themon; and
(vii) All articles of personal property owned by the Trustor and now or hereafter
attached to or used in and about the building or buildings now erected or hereafter to be
reacted on the Property which are necessary to the complete and comfortable use and
occupancy of such building or buildings for the purposes for which they were or are to
be erected and all other goods, chattels and personal property as are ever used or
furnished in operating a building, or the activities conducted therein, similar to the ones
herein described and referred to, and all renewals or replacements thereof or articles in
substitution therefor, whether or not the same are or shall be attached to the building or
buildings in any manner, subject, however, to (and only lo) any purchase money
security interests In such personal property.
Said real property and personal property described above, together with appurtenances.
are referred to collectively in this Deed of Trust as the "Collateral"
FOR THE PURPOSE OF SECURING THE FOLLOWING OBLIGATIONS:
(a) Payment to the Beneficiary of an indebtedness in the principal amount of
Sixty Nine Thousand Dollars ($69,000.00), evidenced by a promissory note executed by
the Trustor and payable to the order of the Beneficiary, bearing the same date as this
Deed of Trust, and any and all modifications, extensions or renewals thereof or
-61-
substitutions therefor (the "Note"), and performance and satisfaction of each and all
other obligations of the Trustor under Me Note;
(b) Performance of every obligation or Trustor in this Deed of Trust, the Note,
the Owner Participation Agreement between Beneficiary and Trustor related to the
Property (the "Owner Participation Agreement," dated ) contemplating Ne
Improvement of the "Project" (as that tens is defined in the Owner Participation
Agreement); and
(c) Payment of all sums, If any, and interest thereon that may hereafter be
loaned or advanced by the Beneficiary to or for the benefit of the Trustor or to its
successors, transferees and assigns, made to the Trustor while the Trustor Is the owner
Of recortl of fee title to the Property, or any portion thereof, or to the successors,
transferees or assigns of the Trustor while they are the owners of record of such fee
tale, and evidence! by one or more notes or written instruments which recite that they
are secured by this Deed of Trust.
TO PROTECT THE SECURITY OF THIS DEED OF TRUST, THE TRUSTOR
COVENANTS AND AGREES AS FOLLOWS:
1. The Trustor shall not use or permit the use of any of the Collateral for any
purpose other than the use for which it was intended at the time this Deed of Trust was
executed, as provided in the Owner Participation Agreement.
2. Upon default under this Dead! of Trust or the Note (following delivery of
notice and expiration of the cure period, if any, pmvided therein), the Beneficiary, at as
option, may declare the whole of the obligations and sums secured hereby to be
Immediately due and payable.
3. The persons) or entay(ies) who have executed this Deed of Trust are fully
authorized, and have obtained any and all written authorizations, approvals or consents
necessary, to bind the Trustor to this Dead of Trust.
d. All rents, profits and income from the Collateral covered by this Deed of
Trust are hereby assigned to the Beneficiary for the purpose of discharging the
obligations hereby secured. However, the Trustor shall be pennided, so long as no
default exists hereunder or under the Note, to collect such rants, profits and Income for
use consistent with the provisions of the Owner Participation Agreement.
5. Upon default hereunder or under the Note (following delivery of notice and
expiration of the cure period if any, provided heroin or therein), for me purpose of
protecting Its interests hereunder, the Beneficiary will be entitled to the appointment by
a court having jurisdiction. without further notice and without regard to adequacy of any
security for the indebtedness secured hereby, of a receiver to take possession of and
protect the Collateral described herein and operate same and wiled the rents, profits
and income therefrom. The entering upon and taking possession of the Property or
-m_
other Collateral by such receiver, the collection of such rents, profits and income and
the applicafion thereof shall not cure or waive any default or notice of default hereunder
or invalidate any act done pursuant to such notice.
6. The Trustor, at Its sole cost and expense, shall provide and maintain on
the entire Property, including all buildings and improvements thereon: (i) a policy of
broad -form builder's risk insurance sufficient to cover 100 percent of the replacement
value of all buildings and improvements on the Property including; without limitation,
labor and materials in place or to be used as pert of the permanent construction
(including, without limitation, surplus miscellaneous materials and supplies incidental to
the work, and scaffolding, staging, towers, fors and equipment not owned or named
by the Beneficiary, the cost of which is not included in the cost of work), insuring against
lOSS or damage by fire, extended coverage perils and such other hazards, casualties or
other contingencies as from time to time may be reasonably required by the Beneficiary;
(ii) a polloy of commercial general liability Insurance that Includes contractual, products
and completed operations coverages, bodily injury and property damage liability
Insurance with combined single limits of rot less than $1,000,000 per occurrence; and
(iii) such other insurance as may be reasonably required by the Beneficiary, in each
case in such amounts, In such manner and with such companies as the Beneficiary and
Trustor may reasonably approve. The foregoing minimum insurance coverage limits
shall be subject to reasonable adjustment from time to time by the Beneficiary. Each
such policy shall be endorsed with a standard mortgage clause with loss payable to the
Beneficiary and the Trustor, and shall provide that the policy shall not he canceled or
materially changed without at least thirty(30) days' prior notice to the Beneficlary. Upon
request by dre Beneficiary, the Trustor immediately shall deposit with the Beneficiary
certificates evidencing such policies.
7. The Trustor shall pay: (i) at least ten days before delinquency, all taxes
and assessments affecting the Collateral, including assessments on appurtenant water
stock; (ii) when due, all encumbrances, charges and liens, with interest, on the
Collateral or any pan thereof which appear to be prior or superior hereto; and (iii) all
costs, fees and expenses of the Trustee or the Beneficiary reasonably incurred In
connection with the Wsts created under this Deed of Trust.
8. The Trustor shall: (i) keep the Collateral in good condition and repair and
not remove or demolish any buildings on the Property; (it) to the extent insurance or
condemnation proceeds are available, complete or restore promptly and in good and
workmanlike manner the buildings and improvements and any other building or
improvement which may be constructed, damaged or destroyed thereon; (iii) pay when
due all claims for labor performed and materials furnished therefore; (iv) comply in all
material respects with all laws affecting the Collateral or requiring any alterations or
Improvements to be made thereon; (v) not commit or peril waste of or on the
Collateral; and (vi) not commit, suffer or peril any act upon the Property In violation of
law and/or any covenants, conditions or restrictions affecting the Collateral.
-65-
9. The Trustor shall appear in and defend any action or proceeding
purporting to affect the security hereof or the rights or powers of the Beneficiary of the
Trustee, and shall pay all costs and expenses, including cost of seconds of file and
reasonable attorneys' fees, in any such action or proceeding in which the Beneficiary or
the Trustee may appear, or in any suit brought by the Beneficiary to foreclose this Deed
of Trust.
10. Should the Trustor fall to make any payment or do any act as herein
provided, then the Beneficiary or the Trustee, without obligation to do so, and following
notice to or demand on the Truster, and without releasing the Trustor tram any
obligation hereof: (1) may make or do the same in such manner and to such extent as
either may deem necessary to protect the secudly hereof, the Beneficiary orthe Trustee
being authorized to enter on the Property for such purposes; (ii) may commence,
appear in and/or defend any action or proceeding purporting to affect the security hereof
or the rights or powers of the Beneficiary or the Trustee; (iii) may pay, purchase, contest
or compromise any encumbrance, charge or lien which in the judgment of either
appears to be prior or superior hereto (except for the codes of trust, encumbrances and
liens securing the Construction/Permanent Financing Loan(s) and the Agency Loan, as
such terms are definetl below); and (iv) in exercising any such powers, may pay
necessary expenses, employ legal counsel and pay such counsel's reasonable fees.
All such amounts paid by the Beneficiary or the Trustee hereunder shall be added to the
obligations secured by this Deed of Trust.
The term "Constrvction/Pennament Financing Loan" means, collectively, the
construction financing and takeout financing, and any refinancing or replacement of
that financing from time to time, to be provided by a commercial or other institutional
lender(s); provided, however, that (i) before entering into any Construction/Permanent
Financing Loan, the Trustor shall give the Beneficiary notice of the
Construction/Permanent Financing Loan and copies of the loan agreement and all other
loan documents evidencing the Construdbn/Permanent Financing Loan: (it) the funds
disbursed from each Construction/Pernanend Financing Loan shall be used only for
costs and charges associated with the loan and for the operation, maintenance and/or
improvement of the Project or the Property as provided in the Owner Participation
Agreement or to railroads existing Indebtedness; (iii) the interest on each
Construction/Permanent Financing Loan shall be at a reasonable rate based on all the
facts and circumstances; and (iv) the combined amounts of all Construction/Permanent
Financing Loans or any re -financing thereof and the Note secured by this Deed of Trust
shall not exceed one hundred percent (100%) of the fair market value of the Property, as
Improved by the Project under the Owner Participation Agreement (such value to be
detemlined by a qualified appraiser reasonably acceptable to Trustor and Beneficiary).
Notwithstanding any limitations set forth above. in the event of any subsequent
refinancing of a ConstmctionlPermanent Financing Loan, Trustor may use force from
any refinancing that are in excess of the original principal of the innal
Construction/Permanent Financing Loan to compensate Trustor for any negative cash
Flow of the Project; or, provided Truster is not In default of any of the provisions of the
Owner Participation Agreement or this Deed of Trust pay Tesler a developer fee in an
-66-
amount not to exceed $20,000 (less any distributions made to Trustor from the cash
Flow of the Property); or, to fund other projects by Truster or a related entity in an
Agency Project Area within the Urban Care of the City of Fresno, subject to the poor
written approval of Beneficiary, which approval shall act be unreasonably wfthheld. (By
way of illustration only, and without Ilmking the foregoing, If the Initial
ConstructionlPemlanent Financing Loan for the Project is $4,000,000 and, while
satisfying the rate and loan -to -value limits set forth In subparagraphs (iii) and IN),
Trustor subsequently obtains refinancing In the amount of $5,000,000, Trustor may use
the additional $1,000,000 in excess of the original ConstructioNPermanent Financing
Loan to compensate Trustor for negative cash flow; or, provided Truster is not in default
of any of the provisions of the Owner Parficlpatlon Agreement or this Dead of Trust, to
pay Trustor a developer fee in an amount not to exceed $20,000 (less any distributors
made to Trustor from the cash Flow of the Property); or, for another project in the Urban
Core without making any prepayment on the Note secured by this Deed of Trust)
11. The Beneficiary shall have the right, but not the obligation, to pay when
due fire or other insurance premiums required hereunder if the Trustor fails to make
such payments. All such amounts paid by the Beneficiary hereunder shall be added to
the Dbligalbns secured by this Deed of Trust.
12, The Trustor shall pay Immediately upon demand all sums so expended by
the Beneficiary or the Trustee under this Deed! of Trust, with interest from date of
expenditure at the legal rate.
13. if (he Truster falls to pay any amount required by the Note or this Dead of
Trust when due and payable, or fails to perform all other covenants, conditions and
agreements of the Note, this Deed of Trust or the Owner Participafion Agreement
(following delivery of notice and expiration of the cure period, If any, provided therein),
the amount of the Note, Including unpaid principal and late charges, and all other
charges and amounts required by the Note and this Deed of Trust shall, at the option of
the Beneficiary, become immediately due and payable. This shall be in addition to and
without limitation on any other remedy or right available to the Beneficiary for such
failure.
14. The Truster shall not voluntarily create or permit to be created against the
Collateral any lien or liens except as Specifically permitted by this Dead of Trust or
otherwise authorized by the Beneficiary. The Truster shall keep and maintain the
Collateral free from the claims of all persons supplying labor or materials who will enter
into (he construction, rehabilitation, renovation or repair of any and all buildings or
improvements now existing or to be erected on the Property.
15. By accepting payment of any sum secured by this Deed of Trust after its
due date or by accepting partial payment of any such sum, the Beneficiary does not
waive Its tight either to require prompt payment when due of all other sums so secured
or to declare default for the Trustors failure to pay.
-61-
15. If Me Trustor, wtthout Me prior written consent of the Beneficiary: (1)
agrees to or actually sells, conveys, transfers or disposes of the Collateral or any
Interest therein or portion thereof, or (ii) assigns or delegates any right or obligation
under the Agreement, the Note or this Deed of Trust, than all amounts secured by this
Dead of Trust may be declared immediately due and payable, at the option of the
Beneficiary. The Beneficiary shall not unreasonably withhold its consent to any such
transaction. The Beneficiary's consent to one transaction of this type shall not be a
waiver of Me right to require consent to future or successive transactions.
17. DUE ON SALE—CONSENT BY BENEFICIARY. Beneficiary may, at its
option, declare immediately due and payable all sums secured by this Dead of Trust
upon the sale or transfer, without the Beneficiary's prior written consent, of all or any
part of the Land, or any interest In the Land. A "sale or rensfer" means the conveyance
of Property or any right, bull or interest therein; whether legal, beneficial or equitable;
whether voluntary or involuntary; whether by outright sale, deed, Installment sale
contract, land contract, mntracl for used, leasehold interest with a lens greater Man
three (3) years, lease -option contract, or by sale, assignment, or transfer of any
beneficial interest in or to any land trust holding title to Me Property, or by any other
method of conveyance of Property interest. If any Trustor is a corporation, partnership
or limited liability company, transfer also Includes any change In ownership of more than
fifty percent (50%) of the voting stock, partnership interests or limited liability company
Interests, as the case may be, of Trustor, other than a transfer to the managing member
of Truster or an affiliate of the managing member. However, this option shall not be
exercised by Beneficiary If such exercise is prohibited by applicable law.
18. As further security for the full and complete perfomunce of each and
every obligation, covenant, agreement and duty of the Trustor contained herein or in the
Note, the Trustor hereby grants and conveys to the Beneficiary a security interest In and
lien on all of the Collateral. This Dead of Trust shall serve as a security agreement and
financing statement created pursuant to Me CalHamia Commercial Code, and Me
Beneficiary will have and may exercise all rights. remedies and powers of a secured
party under the California Commercial Code. Further, this Deed of Trust is filed as a
fixture filing pursuant to the California Commercial Code and other applicable law, and
covers goods which are or are to become figures.
19. Should the Property, the buildings or Improvements thereon, or any part of
any of them be taken or damaged by reason of any public improvement or
condemnation proceeding, or damaged by fire or earthquake or In any other manner.
the Beneficiary will be entitled, subject to the rights of Me holder of any senior dead of
trust securing a Construction/Permanent Financing Loan, to all of the Trustors interest
in compensation, awards and other payments or relief morale; and, following the
occurrence of a default as defined in the Note, the Beneficiary shall be entitled, jointly
with the Trustor, at the Beneficiary's option, to commence, appear in and prosecute In
its own name, any action or proceeding, or to make any compromise or settlement, in
connection with such taking or damage. All such compensation, awards, damages,
rights of action and preceads, including the proceeds of any fire and other insurance
-ntl-
affecting the Property or the buildings or improvements thereon, are hereby assigned to
the Beneficiary, subject to the rights of Ne holder of any senior deed of trust securing a
Construction/Pennanen( Financing Loan. After deducting therefrom all Its expenses,
including reasonable atiomeys fees, and if there has not occurred a default under the
Note, the Beneficiary shall apply all such Proceeds to restoring the Property or me
buildings or improvements thereon, or if there has been such default, or if the Trustor
detennines not to rebuild, the Beneficlary shall retain the proceeds to the extent of the
amount due under the Note and any amounts due under this Deed of Trust. Any
balance of such proceeds Mill remaining shall be disbursed by the Beneficiary to the
Trustor.
20. If Ne Trustor falls to perforin any covenant or agreement in this Dead of
Treat or Ne Owner ParticipationAgreement, or if a default occurs under the Note, the
Beneficiary may declare all obligations and sums secured hereby imme Mately due and
payable by delivery to the Trustee of written declaration of default and demand for sale
and written notice of default and of election to cause the Collateral to be sold, which
notice the Trustee shall cause to be duty filed for record, and the Beneficiary may
foreclose this Dead of Trust; provided, however that the Trustor shall not be deemed to
be in default hereunder for failure to make any payment when due or for failure to
perform any other covenant or agreement contained herein until thirty (30) days alter
written notice of such failure is given to the Trustor and Truster is afforded a reasonable
opportunity to cure the default. The Beneficiary shall also deposit with the Trustee this
Deed of Trost, the Note and all other documents evidencing the obligations or sums
secured hereby.
21. After the lapse of such time as may then be required by law following the
recomation of the nonce of default, and notice of sale having been given as then
required by law, the Trustee, without demand on the Trustor, shall sell the Property at
the time and place fixed by the Trustee In the notice of sale, either as a whole or in
separate parcels, and in such Omer as it may determine, at public auction to the highest
bidder for cash in lawful money of the United Stales, payable at time of sale. The
Trustee may postpone sale of all or any potion of the Property by publlc announcement
at the time and place of sale, and from time fo time thereafter may further postpone the
sale by public announcement at the time fixed by the preceding postponement. The
Trustee shall deliver to the purchaser its dead conveying fee title to the Property or
portion thereof so sold, but without any covenant or warranty, express or implied. The
recitals In the Trustee's deed of any matters or facts shall be conclusive proof of the
truthfulness thereof. Any person, including the Trustor, the Trustee and the Beneficiary,
may purchase at the sale. The Trustee shall apply the proceeds of the sale to payment
of: (i) the expenses of the sale, together with the reasonable expenses of the trust
created by this Deed of Trust, including reasonable Trustee s fees and attorneysfees
for conducting the sale, and the actual cost of publishing, recording, mailing and posting
notice of the sale; (ill the cost of any search and/or other evidence of title procedure In
connection with the sale and Of revenue stamps on the Trustee's deed; (Iii) all sums
expanded under the terms hereof not than repaid, with accrued interest at the legal rate:
69-
(iv) all other sums then secured hereby; and (v) the remainder, If any, to the person or
persons legally enirtled thereto.
22. The Beneficiary may from time to time substitute a successor or
successors to the Trustee named herein or acting hereunder to execute the trusts under
this Deed of Trust. Upon such appointment, and Whir l conveyance to the successor
trustee, the latter shall be vested! wim all title, powers and duties conferred upon any
Trustee herein named or acting hereunder. Each such appointment and substitution
shall be made by written Instrument executed by the Beneficiary, containing reference
to this Deed of Trust and its place of record, which Instrumerl when duly recorded in
Fresno County, California, shall be conclusive proof of proper appointment of the
successortrustee.
23. Upon written request of fire Beneficiary stating that all obligations secured
hereby have been satisfied and all sums secured hereby have been paid, and upon
surrender of this Dead of Trust and the Note to me Trustee for cancellation and
retention, and upon payment of its fees, the Trustee shall recorvey, without warranty,
the Collateral then held hereunder. The recitals in such reconveyance of any matters or
facts shall be conclusive proof of the truthfulness thereof. The grantee in such
reconveyance may be described as "the person or persons legally entitled thereto."
24. The trusts created by this Deed of Trust are irrevocable by the Trustor.
25. This Dead of Trust applies to, inures to the bereft of, and binds of the
Trustor, the Beneficiary and the Trustee and their respective administrators, executors,
officers, directors, transferees, successors and assigns. The term "Beneficiary" shall
Include not only the original Beneficiary hereunder but also any future owner and holder,
Including pledges, of the Note secured hereby. In this Dead of Trust, whenever the
context so requires, the masculine gander Includes the feminine and/or neuter, and the
.singular Includes the plural.
26. In addition to and without inflation on any other rights or remedies of the
Trustee or the Beneficiary, if the Trustee or the Beneficiary commences any legal action
or proceeding to enforce or interpret any provision of this Deed of Trust or the Note, the
Trustor shall pay all costs and expenses incurred by the Trustee or the Beneficlary in
connection with such action or proceeding. Including legal expenses and reasonable
allomeys' fees and court costs.
27. The Trustee accepts the trusts hereunder when this Deed of Trust, duly
executed and acknowledged, is made public recom as provided by law. Except as
otherwlse provided by law, the Trustee is not obligated to notify any party hereto of
pending sale under this Dead of Trust or of any action or proceeding in which the
Trustor, the Beneficiary or the Trustee is a party, unless brought by the Trustee.
28. The Trustor requests that a copy of any notice of default and of any notice
of sale hereunder be mailed to it at 261 North Van Ness Avenue, Fresno, CA 93701.
-70-
29. The Truster shall cause a copy of each dead of trust securiig a
Construction/ Permanent Financing Loan to be provided to the Beneficiary immediately
upon its recordation, so that the Beneficiary may prepare and record a request for
notice of default and notice of sale thereunder pursuant to California Civil Cade Sedlon
2924b.
30. PROVIDED THAT NO NOTICE OF DEFAULT HEREUNDER THEN
APPEARS OF RECORD AND SUBJECT TO THE CONDITIONS IN SECTION 10
ABOVE AND/OR IN THE OWNER PARTICIPATION AGREEMENT, THIS DEED OF
TRUST SHALL BE SUBORDINATE AND SUBJECT TO ANY DEED OR DEEDS OF
TRUST SECURING A CONSTRUCTIONIPERMANENT FINANCING LOAN.
BENEFICIARY SHALL, UPON REQUEST OF TRUSTOR, EXECUTE SUCH
SUBORDINATION AGREEMENT OR OTHER DOCUMENTATION REASONABLY
NECESSARY TO SUBORDINATE THE LIEN AND CHARGE OF THIS DEED OF
TRUST TO THE LIEN OF ANY DEED OR DEEDS OF TRUST SECURING A
CONSTRUCTIOWPERMANENT FINANCING LOAN.
31. This Deed of Trust shall be interpreted and enforced, and the rights and
duties (both procedural and substantive) of the parties hereunder shall he determined!
accaming to California law.
32. Capitalized terms not otherwise defined herein shall have the meanings
given them in the Owner Participation Agreement or the Note.
IN WITNESS WHEREOF, Truster has executed this Deed of Trust as of the date
set forth above.
TRUSTOR:
Jeffrey Altimus, an Individual
ACKNOWLEDGMENTS
STATE OF CALIFORNIA )
)as.
COUNTY OF FRESNO )
On 201_, before me,
Notary Public, personally appeared
who proved to me on the
basis of satisfactory evidence to be Me person(s) whose name(s) Islam subscribed to
the vrilhin instrument and acknowledged to me that he/she/they executed the same in
NoMertthelr authonzed capacily(les), and that by hlslhentheir signature(s) on the
instrument the commit), or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under Me laws of the State of California that the
foregoing paragraph is two and correct.
(SEAL)
WITNESS my hand and official seal.
TL-
ATTACHMENT
LEGAL DESCRIPTION
Real Preperty in the City of Fresno, Fresno County, California, described as folloWs:
THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF
FRESNO, CITY OF FRESNO, AND IS DESCRIBED AS FOLLOWS:
LOTS 29 AND 30 IN BLOCK A, OF ELM GROVE ADDITION TO FRESNO CITY, IN THE CITY OF
FRESNO, COUNTY OF FRESNO, ACCORDING TO THE MAP THEREOF RECORDED IN BOOK 1
PAGE 31 OF PLATS, RECORDS OF SAID COUNTY.
APIN 459-312-19
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Exhibit I
Certificate of Continuing Pmaram c monanrn
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COMFLIANCE
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Exhibit J
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REGULATORY AGREEMENT AND
DECLARATION OF COVENANTS AND RESTRICTIONS
$ a FREE RECORDING REQUESTED BY
k5 AND WHEN RECORDED MAIL TO
u� REDEVELOPMENT AGENCY
J OF THE CITY OF FRESNO
2344 Tulare Street
Fresno, CA 93721
A" Executive Director
—(SPM AciAe Tris Una for —R fdera OF.m Use Only)
REGULATORY AGREEMENT AND
DECLARATION OF COVENANTS AND RESTRICTIONS
THIS REGULATORY AGREEMENT AND DECLARATION OF COVENANTS
AND RESTRICTIONS ("Agreement") is made and entered into this 16th day of
November, 2010 by and between the REDEVELOPMENT AGENCY OF THE CITY OF
FRESNO, a public body, corporateand politic ("Agency"), and JEFFREY ALTIMUS, an
Individual ("Owner').
RECITALS.
A Pursuant to an Owner Participation Agreement by and between Agency
and Owner dated November 16, 2010 (the "OPA"), Agency has provided to Owner
financial assistance in the amount of Sixty Nine Thousand Dollars ($69,000.00) in loan
funds (the "Agency Assistance'), for the purpose of assisting Owner in the rehabilitation
of a residential apartment complex thereon wherein one hundred percent (100%) of the
units shall be rented to low income households, on that certain real property located in
the City of Fresno, County of Fresno, State of California, more particularly described in
Attachment "1" attached heretoand incorporated herein by reference (the "Bite").
B. Pursuant to the OPA, Owner has agreed to rehabilitate and maintain a
rental apartment housing project consisting of four (4) total residermal units (hereinafter
referred to collecgvely as the "Project') on the Property. The Project is also referred to
in the OPA as the "Project," and is further described! in the Scope of Work attached to
the OPA.
C. Agency, City, and Owner now desire N place restrictions upon the use
and operation of the Project, In order to ensure that the Project shall be operated
continuously as a rental apartment housing project available for rental by low Income
persons for the fens of this Agreement.
AGREEMENT.
NOW, THEREFORE, the Owner and Agency declare, covenant and agree, by
and for themselves, their heirs, executors, administrators and assigns, and all persons
claiming under or through them, that the Property shall be held transferred,
encumbered, used, sold conveyed, leased and occupied, subject to the covenants and
restrictions hereinafter set forth, all of which are declared to be In furtherance of a
common plan for the improvement and sale of the Property, and are established
expressly and exclusively for the use and benefit of the Agency, the residents of the City
of Fresno, and every person renting a dwelling unit on the Property.
AFFORDABILITY RESTRICTIONS RUNNING WITH LAND
In addition to the covenants and conditions contained in the Agreement, the
following California Community Redevelopment Law (California Health & Safety Code
Section 33000 at seq.) affordability requirements shall be imposed upon the 4
Affordable Units on the Property funded under the Agreement and shall bind the Owner
and all purchasers of the Property and their successors far a fifty-five (55) year period.
The Affordable Units on the Property are held and will be held trensfemed,
encumbered. used, sold, conveyed and occupied subject to the covenants, restrictions,
and Ilmitations set forth in this Agreement, all of which are In furtherance of the Project,
the Agency's Community Redevelopment Law and Plan Area obligations including
Agency's obligations set forth at California Health & Safety Code sections 33334.2 at,
seq, and 33413 (a) with respect to Housing Set Aside Funds and replacement dwelling
units at affordable rent within the jurisdiction of the Agency. All of the restrictions,
covenants and limitations will run with the land and will be binding on all parties having
or acquiring any right, title or interest in the Affordable Units upon the Property or any
part thereof, will Inure to the benefit of the Agency, and will be enforceable by it. Any
purchaser under a contract of sale or other transferee of an Interest covering any night,
title or interest in any part of the Affordable Units upon the Property, by accepting a
deed or a contract of sale or agreement of purchase, accepts the document subject to,
and agrees to be bound by, any and all restrictions, covenants; and limations set form
in this Agreement for the period of fifty-five (55) years nursing from and after recordation
of Agency's Certificate of Completion constituting the Affordability Pence,
1. Restrictions. The following covenants and restrictions ('Restrictions') on the use
and enjoyment of the Affordable Units upon the Property shall be in addition to any
other covenants and restrictions affecting the Property, and all such covenants and
restrictions are for the benefit and protection of the Agency and shall run with the
Affordable Units upon the Property and be binding on any future owners of the Property
and inure to the benefit of and be enforceable by Agency. These covenants and
restrictions are as follows:
a. From the date of recordation of Agency's Certificate of Completion until
the expiration of the Affordability Penod the four (4) Affordable Units funded under the
ORA are to be used as Affordable Rental Housing and affordable replacement dwellings
as previded for In the OPA and this Agreement. Owner agrees to file a recordable
document setting forth the Project Completion Date as contemplated by the OPA. The
Affordability Period shall commence as of the Protect Completion Date. Unless
otherwise provided in the ORA, the term 'Affordable Rental Housing' shall Include
without limitation compliance with the following requirements_
Nondiscrimination. There shall be no discrimination against nor
segregation of any person or group of persons on account of race, color,
creed religion, sex, marital status, national or gin, ancestry, or handicap in
the sale, transfer, use, occupancy, tenure, or enjoyment of any of the
Property, nor shall Owner or any person claiming under the Owner,
establish or permit any practice of discrimination or segregation with
reference to the selection, location, number use or occupancy of owners
or vendees of the Property.
Principal Residence Each of the Affordable Units upon the Property shall
be leased only to natural persons, who shall occupy each as a principal
residence.
Income Requirements. Each of the 4 Units constituting Low Income
Affordable Rental Housing upon the Property may be leased only to (a)
natural person(s) whose annual household income at me time of initial
occupancy is not greater than sixty percent (130%) of the most recent
annual meets income calculated and published by HUD for me Fresno
Metropolitan Statistical Area applicable to such household's size, and at
an affordable pace consistent with the applicable California
Redevelopment Law.
Injunctive Relief and Recapture. Should any of the 4 Affordable Units
constituting Low Income Affordable Rental Housing upon the Property not
continue to be the principal residence of a Household that qualifies as a
low-income household, during the Affordability Period, such Units) shall
be made available for subsequent lease only to Households that qualify as
a very low -Income for use as the Household a principal residence.
2. Income
Computation and Certification
Reporting. Prior
to each Household's
occupancy, of
an Affordable Unit. Owner
shall comply with
all of the following
requirements:
a. Income Compulafion. Immediately prior to a Household's
occupancy of an Affordable Unft, Owner shall obtain and maintain on file
an Income Computation and Certification form, attached berate as
Attachment "2", from each such Household dated immediately prior to the
date of Initial occupancy in the Project by such Household. In addition, the
Owner will provide such further Information as may. be required in the
future by the Agency. Owner shall use its best efforts to verify that the
income provided by an applicant is accurate by taking the following steps
as a part of the verification process: (i) obtain three (3) pay stubs for the
most recent pay porous; (it) obtain a written verification of Income and
employment from applicant's current employer; (iii) obtain an income
verification form from the Social Security Administration and/or California
Department of Social Services if the applicant recelves. assistance from
either agency: (iv) if an applicant is unemployed or did not file a tax return
for the previous calendar year, obtain other verification of such applicant's
income as Is satisfactory to the Agency; or (v) such other information as
may be requested by the Agency. A copy of each such completed Income
Computation and Certification forth shall be filed with the Agency prior to
the occupancy of an Affordable Unit by a Household whenever possible,
but in no event more than thirty (30) days after initial occupancy by said
Household.
b, Income Recertification. Immediately icor to the first anniversary
date of the occupancy of an Affordable Unit by a Household and on each
anniversary date thereafter, Owner shall recertify the income of such
Household by obtaining a completed Income Computation and
Certification based upon the current income of each occupant of the
Affordable Unit. In the event the recertification demonstrates that such
Househoi income exceeds the income at which such Household would
qualify to rent the Affordable Unit, such Household will no longer qualify
for Affordable Moderate Income Rent. Owner shall provide the Agency
with a copy of each such completed recertification with the next
submission of Certificate of Continuing Program Compliance, as speciffe i
herein.
C. Complicate of Continuing Program Compliance. Upon the issuance
of the Certificate of Completion and annually by January 31 of each year,
or at any time upon the written request of Agency, Owner shall advise the
Agency of the occupancy of the Project by delivering a Certificate of
Continuing Program Compliance, attached hereto as Attachment "3".
certifying: (i) the number of Affordable Units of the Project which were
occupied or deemed occupied pursuant to this Agreement by a Household
during such period; and (ii) to the knowledge of Owner either. (a) no
unremedied default has occurred under this Agreement; or (b) a default
has occurred, In which event the Certificate of Continuing Program
Compliance shall describe the nature of the default and set forth the
measures being taken by the Owner to remedy such default.
d. Maintenance of Records. Owner shall maintain complete and
accuraterecords pertaining to the Affordable Units, and shall permit any
duly authorized representative of the Agency to inspect the books and
records of Owner pertaining to the Project including, but not limited to,
those records pertaining to the occupancy of the Affordable Units.
e. Reliance on Tenant Representations. Each lease between Owner
and a Household shall contain a provision to the effect that Owner has
relied on the income codification and supporting Information supplied by
the Household in determining qualification for occupancy of the Affordable
Unit, and that any material misstatement in such certification (whether or
not Intentional) will be cause far Immediate termination of such lease.
3. Enforcement of Restrictions. Without waiver or limitation, the Agency shall be
entttlect to injunctive or other equitable relief against any violation or attempted violation
of the Restrictions, and shall, In addition, be entitled to damages for any injuries or
losses resulting from any violations thereof.
4. Acceptance and Ratification All present and future owners of the Property and
other persons claiming by, through, or under them shall be subject to and shall comply
with the above Restrictions. The acceptance of a deed of conveyance to the Property.
shall constitute an agreement that the Restrictions, as such may be amended or
supplemented from time to time, is accepted and ratified! by such future owners, tenant
or occupant, and such Restrictions shall be a covenant running with the land and shall
bind any person having at any time any interest or estate in the Property, all as though
such Restrictions were recited and stipulated at rea lh in each and every dead,
conveyance, mortgage or lease thereof.
5. Benefit. This Agreement and the Restrictions herein shall run with and third the
Property for a term commencing on the date which this Agreement is recorded In the
Office of the Reporter of the County of Fresno, State of California, and expiring upon
the expiration of the Affordability Period The failure or delay at any time of Agency
and/or any other person entitled to enforce Nese Restrictions shall in no event be
deemed a wall of the same, or of the right to enforce the same at any time or from
time to time thereafter, or an estoppel against the enforcement thereof.
6. Costs and Attorney's Fees In any proceeding arising because of failure of
Owner or any future owner of the Property to comply with the Restrictions required by
this Agreement, as may be amended from time to time, Agency shall be entitled to
recover its respective costs and reasonable attorney's fees incurred in connection with
such default or failure.
7. Waiver Neither Owner nor any future owner of the Property may exempt Itself
from liability for failure to comply with the Restrictions required in this Agreement.
a. Severability. The Invalidity of the Restrictions or any other covenant, restriction,
condition, limitation, or other provision of this Agreement shall net impair or affect in any
manner the validity, enforceability, or effect of the rest of this Agreement and each shall
be enforceable to the greatest extent permitted by law.
9. Pronouns. Any reference in this Agreement and the Restrictions therein to the
masculine, feminine, or neuter gender herein shall, unless the contest clearly requires
the contrary, be deemed to refer to and include all genders. Words in the singular shall
include and refer to the plural, and vice versa, as appropriate_
10. Interpretation. The captions and titles of the various articles, sections,
subsections, paragraphs, and subparagraphs of this Agreement are incensed herein for
ease and convenience of reference only and shall not be used as an aid in interpreting
or construing this Agreement or any prevision hereof.
it. Capitalized Terms. All capitalized terns used in this Agreement, unless
otherwise defined herein, shall have the meanings assigned to such terms in the OPA.
12. Amendments. This Agreement shall be amended only by a written instrument
executed by the parties hereto or their successors in title, and duly rammed in the real
property records of the County of Fresno.
13. Notice. Any notice required to be given hereunder shall be made in writing and
shall be given by personal delivery, certified or registered mall, postage prepaid, return
recelpt requested, at the addresses specified below, or at such other addresses as may
be specified In writing by the parties hereto:
Agency. Redevelopment Agency
of the City of Fresno
2344 Tulare Street, Suite 200
Fresno, CA 93721
Ann. Executive Director
Copy to: Agency Ex -Officio Attorney
Go Fresno City Attorney
Fresno City Hall
2600 Fresno Street
Fresno, CA 93721
Owner: JEFFREY ALTIMUS
261 N Van Ness Avenue
Fresno, CA 93701
The notice shall be deemed given three (3) business days after the date of
mailing, or, if personally delivered, when received.
14. GOVERNING LAW. This Agreement shall be governed by the laws of the State
of California.
15. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall constitute one original and all of vi shall be one
and the same instrument.
16. FURTHER ASSURANCES. The parties will execute such other and further
documents and will lake other steps necessary, helpful, or appropriate ou carry out the
provisions of this Agreement.
[END—SIGNATURES ON NEXT PAGE]
IN WITNESS WHEREOF, the Agency and Owner have executed this Regulatory
Agreement and Declaration of Covenants and Restrictions by duly authorized
rapresentafives on the data first written hereinabove.
"AGENCY'
REDEVELOPMENT AGENCY
OF THE CITY OF FRESNO
a public body, coryor a polillc
By:
Marlene Murphey
Executive Director
ATTEST:
REBECCA KLISCH
Ex -Officio Clerk
Redevelopment Agency of the City of
Fresno
%4 OAA>,. (�/�
�/AfiM/14d�
cty
APPROVED AS TO FORM:
JAMES C. SANCHEZ
Ex -Officio Agency Attorney
Redevelopment Agency of me City of
Fresno
By
lal,u
Deputy to
Deputy
'OWNER"
JEFFREY ALTIMUS/, an II"nnddiivviy✓dual
J R LTIMUS
(END OF SIGNATURES
Attachments:
Attachment 1:
Legal Description of Pmpedy
Attachment 2:
Income Computation and Certification inch
Attachment 3:
Certificate of Continuing Program Compliance
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
state of Caltlomia�r
Cooper of /"y' a
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al
No+ ry F✓5/r�-
r� mM
perronally appeared My/enc eful'i ✓
Who proved to me m me hard M satlrectory avltlence to
the the persongp whose r arreal Wm6 suhscnbea In fire
within instrument and acknowledged to me that
LYNFIIE LILYFRB.CNI]OX he!ia'd I1Ey Wed the same In hlSherflhelr aWlq¢ed
'7 eammlFlaF I lnua� capaderpee7. and that by hlsmerm ag dgnatri on me
Fairy MIIC - ealXwMo 1 instrument the perspnlpl, or me emXy upon behalf of
ry which the parsoned added. executed the instrument.
Corm cour
At]
terry under PENALTY OF PERJURY under the laws
Of the State of Carbrica that the tooffieng paragraph Is
true and capest.
WITNESS fear hand 9pd official seal.
.�.Nkwi Sfanatul
OPTIONAL
racogh aomemmov, whir nor nn,smm. raw, rinaVpare ✓rivers, la persarS MYmpon IM ax,mml
ennmrM areal hauMbnlrem�releMrwlletlinnnlolllru Porte to enoNw Mcmrenl.
Description of AXeahetl Oacument
Time or Type of Document.
Document Dare: Number of Pages:
Sanar(sl Olney Than Named Abee e.
Cspadty( and Oatmed Ey Signers)
Signer shame'.
Signer'a Name
Individual
I Inorvdeal
L corporate Offer —Ti ls):
Lcwparate Cal —Tmalm-
Ponner—I noted I Demand
I Pai Limited _ Omelet
Ali In Fad
L ApornBy m Fetl
F Luise,Jn.u.
e.
ry, rpm
Fmdal
ai.mn.x
Grumman or Conservator
Il Germans Or Canczrvaror
L Other
L Other.
Signer is Rapruscromp
Signer is RepmsanXny
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
state Of catikent/
County of eY0
orb c -f ,25 oto be/ro�r�e me.rLYndYc_,Lea4r�—�.,/✓oef",, .PSvfa—
Presently appeared �eT'r ntin� A/-Erninji ie ^•rimmegnip
Ly DCeve"Aasoal
Commarnn • 1)9659]
Naory Ii -0011i
Musa County
para. 1n12A13
who proved to me on trre belle of satisfactory evidence to
Me the peressi wasee namaerylantersubsedbed to Me
within instrument and undertaker to me Met
heasIFJlhey answer the same in hlsMerai atMomeal
cepeor r ia%). and Nat by hisNmdir segeaturei on the
instumem Ne parsonte, or the entity upon thenen of
which the foun (e{ acted, eraculed the instrument.
I nearly under PENALTY OF PERJURY under the IaWs
of Me SMte of California that the Mi paragraph G
time and correct
WITNESS my bane and omctal seal.
SOnature —i
.1 nals
OPTIONAL
ThW , OrenNnnydion ci la rpt Weitun II may WRe Nuaw ami stand we reaai
me Nei saaduam"i we researchers arve, arra w waveresheareer.
Description OI ANcherl Document
The oRype of Document:
Document Date.
Demand) Other Than Named Above:
C rpeclrypea) calmed by Slgnat
Number at Preece:
Siere a Name:
Signets Name:
Individual
individual
_Corpogteonlwr—Tnalsl
_wrpomta Offer — iiagaj
Partner— Limped Gent
- Perms—i Llmited FGene21
_ Attorney m Fut
Attorney In Fact
—Tms
rnrni.�rr
_Trustee
..owner
Great or Conservetw
German or Consona0r
_ ome,:
_ cedar:
Sighs is Representing-
Super is Represenf ng:
STATE OF CALIFORNIA )
)as
COUNTY OF
On before me, , personally
appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be
the persons) whose names) lWare subscribed to the within Instrument and
acknowledged to me that he/she/they executed the. same in hisrhen their authmlzed
capacity(ies), and that by his/herltheir signatures(s) on the Instrument the person(s) or
Me entity upon behalf of which the persons) acted executed the instrument.
Witness my hand and official seal.
Notary Public
[SEAL)
STATE OF CALIFORNIA )
)as.
COUNTY OF
On
appeared
personally
Personally known to me (or proved to me on the basis of satisfactory evidence) to he
the person(s) whose names) is/am subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their aulhonzed
capacity(ies), and that by his/herhhelr signatures(s) on the instrument the person(s) or
the entity upon behalf of which the pen:on(s) acted executed the Instrument.
Witness my hand and official seal.
Notary Public
(SEAL]
ATTACHMENT
LEGAL DESCRIPTION
Real property in the City of Fresno, Fresno County, California, desontred as follows:
THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA COUNTY
OF FRESNO, CITY OF FRESNO, AND IS DESCRIBED AS FOLLOWS:
LOTS 29 AND 301N BLOCK A, OF ELM GROVE ADDITION TO FRESNO CHV, IN THE CITY
OF FRESNO. COUNTY OF FRESNO, ACCORDING TO THE MAP THEREOF RECORDED IN
BOOK 1 PAGE 31 OF PLATS, RECORDS OF SAID COUNTY
APN 459-312-19
Attachment 2
Income Certification Form
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HCDC ITEM NO. I/:00am-A "
REPORT TO THE COUNCIL MEETING: 10/21/10
REDEVELOPMENT AGENCY BOARD gnvacvsosv
� a crag
DATE: October 21, 2010
FROM: MARLENE MURPHEY, Executive Director
By: Debra Badefta, Project Manager
SUBJECT:
1. Adopt a finding of a Categorical Exemption per staff determination, pursuant to Section
15301 Class I of the CEPA Guidelines, for the rehabilitation of a Fourylex located at 122
North College Avenue,
2. Recommend approval of an Owner Participation Agreement (OPA) between the
Redevelopment Agency of the City of Fresno and Jeffrey Akimus for the redevelopment
of a Fourylex at 122 North College Avenue In the Freeway -99 Golden State Corridor
Redevelopment Project Area
EXECUTIVE SUMMARY
Redevelopment Agency Staff recommend that the Agency approve the attached Owner
Participation Agreement with Jeffrey Animus or an affiliated legal entity (the "Developer") which
would lead to the redevelopment of a fourplex in the Lowell neighborhood (Freeway -99 Golden
State Corridor Redevelopment Project Area) by authorizing Agency participation in the
renovation of 122 North College Avenue (APN 459-312-19).
The Developer has requested to enter into an Owner Participation Agreement ("Agreement") with
the Agency that will provide 55 year covenants for four (4) low-income units. Under the
Agreement's proposed terms a loan in the amount of $09,000 would be made to Me project by
the Agency. The building was constructed In 1970 and is approximately 3,520 square feet In two
stones on a parcel of 5,750 square feet. The Developer has acquired the property through a
foreclosure and will undertake the renovation of the four (4) residential units this fall.
The project helps to leverage and protect the Agency's Investment of Low- and Moderate Income
Housing Funds in the Loweli area. This area is within the boundaries of the Agency s target area
for the federal Neighborhood Stabilization Program, under which it has scqulred, rehabbed and
resold foreclosed or abandoned single family homes in the Lowell neighborhood. Through the
NSP, the Agency completed renovation of a Mme directly across the street at 137 North College
Avenue_ Through housing set aside funds, the Agency will renovate the home next door at 129
North College this summer. In addition. renovation will commence on 237 North Park Avenue in
the next month. These four projects represent the single largest concentration of revitaluration
activity In Lowell.
REPORT TO THE REDEVELOPMENT AGENCY BOARD
Omer Panlclpetim Agreement -122 N. College
Crusher 21. 2010
Page 2
This project will remove blight from the Lowell neighborhood, stabilme the area and deliver
needed affordable housing units in Gose proximity to jobs, educational opportunities, and
community resources. The Agency will additionally benefit from the receipt of 55 year
affordability for 4low-income units.
The Project has been environmentally assessed and has been determined to be eligible for a
Categorical Exemption under Section 15301/Class 1 of the California Environmental Quality Act
(CEOA). Under Section 15301/Class 1, restoration or rehabilitation of a deteriorated or
damaged structure to meet current standards of public health and safety is exempt from CEOA.
More specific, the Class 1 exemption applies to the operation, repair, maintenance, pennffing
leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical
equipment, or topographical features, Involving negligible or rw expansion of use beyond that
existing at the time of the lead agency's determination.
BACKGROUND
This Agreement with Jeffrey Altlmus (or an aRllated legal entity) is for the purpose of
rehabilitating a fourplex in the Lowell neighborhood (Freeway -99 Golden State Corridor
Redevelopment Project: Area).
The Agreement dentes the scope ofwatk of the project and sets forth condNons that include
developers obligation to obtain all development approvals, vadances and permits required by
the Agreement; and, fo provide evidence of sufficient financing. The Developer Is required to
complete the project as proposed and dedicate four (4) of the units, or one hundred percent
(100%). as affordable to households gaming no mare than 60% of the area median income, for a
period of 55 years.
In furtherance of the Agency s goals and objectives under the Freeway -99 Golden State Corridor
Redevelopment Plan, the rehabill alion of the subject properly will serve to help reverse and/or
mitigate conditions which have over several decades contributed to the physical and soclo-
economic decline of the project area by a) enhancing the visual character of the project area by
creating a positive urban Image that Is in keeping with the City's adopted plans; b) encouraging
owner participation in the revitalization of existing rembitable structures; c) preserving and
enhancing the area s affordable housing resource; and. d) encouraging owner participation in the
rehabilitation of existing economically salvageable structures.
At their regularly scheduled meeting of June 9, 2010, the Housing and Community Development
Commission recommended approval of this Hem.
FINANCING
The total development cost of the project is approximately $241,550. The Developer s financing
plan calls for a permanent ban of $109,425, the $69p00 Agency contribution (28.57% of total
cost) and 26.13% developer equity.
REPORT TO THE REDEVELOPMENT AGENCY BOARO
Owner ParliNpetlon Agreement- M N. College
October 21, 2010
Page 3
The Agency's $69,D00 loan will be 0% interest Years 1 - 3 and 2% Interest Years 4 through 23.
Payments of principal and interest will commence at the beginning of Year 4 with principal
amortized over 20 years and shall be all due and payable in 23 years. Funds from the Agency
Housing Set -Aside are available and are budgeted in 2010-2011.
Attachments:
1. Area Map
2. Categorical Exemption
3. Draft OPA
CURRENT Cl
;}
All
REDEVELOPMENT AGENCY OF THE CITY OF FRESNO
CATEGORICAL EXEMPTION
REHABILITATION OF FOURPLEX LOCATED AT 122 NORTH COLLEGE AVENUE
IN THE CITY OF FRESNO
THE PROJECT DESCRIBED HEREIN IS DETERMINED TO BE CATEGORICALLY
EXEMPT FROM THE PREPARATION OF ENVIRONMENTAL DOCUMENTS
PURSUANT TO ARTICLE 19 OF THE STATE LEDA GUIDELINES.
APPLICANT: ReOevebpment Agency of Joe Gly of Fresno
2344Tulale r beet, Smile 200
Fleseo, CA 93721
PROJECT LOCATION: 122 NOM Cdlege Avenue. Freeno, California 93701
Lomlee north of Dlvasome Sheet
(APPI 459-31219)
Carl Dlebict 3, Coun,garrmber Sbtllrg)
PROJECT The Dema per (JeMey Momus) proposes to purchase aM rebaBlltlale a foui Imalee at In
DESCRIPTION: mIRCOMISBASOme The subjeCl pmgmry is bwteeln the Lowell netghMro In For Fressay
93 Golden State COMeor Redevelopment Pmlod Area.
This proper I9 exempt under Secllon i5301Claee t Of the CaNromla Envlronmenul puallry Past (CEOA) Guidelir .
EXPLANATION: Under me Section 15301/Claes, 1 exemption restoration or renabl111a0on o1 a eelerlmeted or
damaged a luclure to meal cunni Standards of Public health and safely is exempl from ADDS.
More specific, the eta" 1 exemption applies to the operallon. repair, maintenance something,
leasinglicensing, or minor Wlemban of existing Public m pnvale strueturee frenties, mechanics
equipmentor topographical factures. Involving nardepare or no expanemn of use deyoM mal
causing at The time of he lead agenNs determination.
TMS Projects; the rebaphdagon ads entling Tourplex ITS building was mnsbucledin 1970 and is
a Pou rralely 3 520 $quare kef in Mn Simms on a parcel of 5,750 square feel The Ocvempttis
aW airing me properly through a foreclosure and will uncle ke the rehab hmiron of the four (a)
redieemel wne. There womeceno mange to me exHlmg aaa.
The Pdgect does at meet any of the Exceptions to Cale np l momptlona under CEOA
mal Neel so the
cumulative Mpe[ts would
'illeggimusualcrogyropence ID,$Profedpnvolvesrehahi@Nonofan
lOteletl on resltlenllal street and surrounded by singlefamllynomesll
any Applies w noxious lane uses
The loezunn of me Projen.O union a sc¢mc mgnway
=¢`les. The Prosect does not contain nor is it can any Fnwm amorphous
The City had examined a
hutoncelsed TMspmpedyls
ladlslntl Harasser, trnter
A adolig us effect on nearby
The proposed acauagon of this; property Is for rebamuerse and wlu smart me Agency iefores to
eliminate pleph nd mo overall revbrlhaton once Freeway Be Golden State Redevelopment Proper
Date. f9eplemoer 30 2010 1
SuEmmPd By. — 11 I L `�
Marene Murphey
[Di Director
Fresno Redevlpment Agency
2344 Twam Street sane 200
F rema. CA 93721
w i5shi 4600
F 15591498 1870