HomeMy WebLinkAboutFulton Court Partners Fulton Court Apartments Rehab ProjectRecorded at the Request of
and When Recorded Return to:
City of Fresno
City Clerk
2600 Fresno Street, Room 2133
Fresno, CA 93721-3603
(SPACE ABOVE THIS LINE FOR RECORDER'S USE ONL Y)
This Agreement is recorded at the request and for the benefit of the City of Fresno and is
exempt from the payment of a recording fee pursuant to Government Code Section 6103.
BY:~~
Mark Scott
It's: City Manager
Date:?-3 ttl '-/2-
CITY OF FRESNO
HOME INVESTMENT PARTNERSHIPS AGREEMENT
by and between
CITY OF FRESNO,
a municipal corporation
and
Fulton Court Partners, LLC
regarding
Fulton Court Apartments Rehabilitation Project
142 Fulton Street, Fresno,California 93701 (APN:459-303-18)
(Fulton/Lowell Area)
TABLE OF CONTENTS
ARTICLE 1.DEFINITIONS 2
ARTICLE 2.TERMS OF THE LOAN 6
ARTICLE 3.REPRESENTATIONS AND WARRANTIES OF DEVELOPER 7
(..ARTICLE 4.COVENANTS OF DEVELOPER 8
ARTICLE 5.PROPERTY MAINTENANCE 13
ARTICLE 6.DISBURSEMENT OF HOME FUNDS 16
ARTICLE 7.REHABILITATION 18
ARTICLE 8.PROJECT OPERATIONS ;23
ARTICLE 9.INSURANCE AND INDEMNITY 26
ARTICLE 10.DEFAULT AND REMEDIES 29
ARTICLE 11.GENERAL PROVISIONS ;31
HOME INVESTMENT PARTNERSHIPS PROGRAM AGREEMENT
This HOME Investment Partnerships Program Agreement(hereinafter referred to as the
"Agreement") is entered into this if:;rt-=",2012, by and between the CITY OF
FRESNO, a municipal corporatio~ough its Development and Resource
Management Department - Housing and Community Development Division (hereinafter
referred to as the "CITY"), and Fulton Court Partners,LLC, a California limited liability
company (hereinafter referred to as "DEVELOPER").
RECITALS
A. The CITY anticipates it will receive HOME Investment Partnerships
Program (hereinafter referred to as "HOME Program")grantfunds from the U.S. Departmentof
Housing and Urban Development (hereinafter referred to as "HUD"), under Title II of the
Cranston-GonzalezNattonal Affordable Rental Housing Act of 1990, as amended (hereinafter
referred to as the "Act").
B. To advance the supply of Affordable rental housing within the City of
Fresno, the CITY desires, among other things, to encourage private investment in the
affordable rental housing market.
D. The DEVELOPER desires to act as the owner/developer exercismq
effective project control, as to the moderate rehabilitation of the ten (10) unit Fulton Court
Apartments (hereinafter referred to as the "Project"),as more particularly described in the
Project Description and Schedule,attached heretoas EXHIBIT"B" and incorporated herein.
C. The Project will provide for the moderate rehabilitation of the existing ten
(10) unit Fulton Court Apartments, of which ten (10) units will be fixed HOME-assisted
affordable rental housing units at the Property identified in Property Description, attached
hereto as EXHIBIT "A" and incorporatedherein.
E. The Project will be rehabilitated on HOME Programeligible Property to be
owned by the DEVELOPER and located within the boundaries of the City of Fresno, as more
particularly described in the Project Description,attached hereto as EXHIBIT "B" and
incorporated herein..
F. To further its goal to increasethe supply of Affordable Rental Housing, the
CITY desires to assist the DEVELOPER by providing a total of up to Six Hundred Ninety Five
Thousand Eight HundredThirty Eight dollars and 00/100th ($695,838.00)in annually allocated
and available fiscal year 2012 HOME Programfunds for a HOME Program Loan to the Project
(hereinafter referred to as "Loan"), for payment of the HOME Program eligible costs, as further
identified in the Project Budget, attached as EXHIBIT "C" and incorporated herein, variously
secured by the underlying real property and the Affordable Housingcovenants, upon the terms
and conditions in this Agreement. The simple interest will be at 1% annually. Principal and
interest will be payable annually at times prior to the MaturityDate and in full upon the Maturity
Date in accordance with the terms and conditions set forth in the Promissory Note attached
hereto as EXHIBIT "F",
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G. A January 3, 2012, environmental review of the Project pursuant to the
National Environmental Policy Act ("NEPA")guidelines resulted in completion of a Statutory
Worksheet with complete consultation/mitigated requirements.Additionally,a January 3,
2012, environmental review of the Project pursuant to the California EnvironmentalQuality Act
("CEQA") guidelines resulted in an Exemption from the provisionsof the CEQA.
H. The CITY has determined that this Agreement is in the best interest of,
and will materially contribute to, the Housing Element of the General Plan. Further, the CITY
has found that the Project: (i) will have a positive influence in the neighborhood and
surrounding environs; (ii) is in the vital and best interest of the CITY, and the health, safety,
and welfare of CITY residents; (iii) complies with applicable federal, state, and local laws and
requirements; (iv) will increase,improve,and preserve the community's supply of Low-Income
Housing available at Affordable Rental Housing cost to Very Low- and Low-Income
households, as defined hereunder; (v) planning and administrative expenses incurred in
pursuit hereof are necessary for the production,improvement,or preservation of Low-Income
Housing; and (vi) will comply with any and all owner participation rules and criteria applicable
thereto.
I.-The CITY and DEVELOPER have determined that the Project's HOME
Assisted Units constitute routine programmatic/grantee lender activities utilizing available and
allocated program/grantee funding, outside the reach of California Constitution Article XXXIV
and enabling legislation.
J. On April 11, 2012 the Housing and Community Development Commission
of the City of Fresno reviewedthis Agreement and recommended approval.
K. On February 27, 2012 the Fulton Court Partners, LLC's governing
body/managing member reviewed and approved the development and authorized entry of a
HOME Program Project agreement.
NOW, THEREFORE, IN CONSIDERATION of the above recitals,which recitals
are contractual in nature, the mutual promises herein contained,and for other good and
valuable consideration hereby acknowledged,the parties agree as follows:
ARTICLE 1.DEFINITIONS
The follOWing terms have the meaning and content set forth in this Article wherever used in this
Agreement, attached exhibits or attachments that are incorporated into this Agreement by
reference.
1.1 ADA means the Americans with Disabilities Act of 1990, as most recently
amended.
1.2 Affirmative Marketing means a good faith effort to attract eligible persons of all
racial, ethnic and gender groups, in the housing market area, to rent the proposed Affordable
Project units, as hereinafter defined.
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1.3 Affordabilitv Period means fifty-five (55) years commencing from the date the
final Project Budget and tenant information is entered into HUD's Integrated Disbursement and
Information System (IDIS), provided as an administrative amendmentto the Agreement.
1.4 Affordable Unit means the ten (10) units rented as Very Low- and Low-Income
housing, each of which will be required to meet the affordabilityrequirements of this Agreement
and 24 CFR 92.252 which affordability requirements shall run with the land for the Affordability
Period subject to release as provided in this Agreement.
1.5 BUdget means the pro-forma Project Budget,attached hereto as EXHIBIT "C"
and incorporated herein, for the Project,as may be amended upon the approval of the CITY's
Housing and Community Development Division Manager,provided any increase in HOME
Program Funds hereuryder requiresCity CouncilApproval. .
1.6 Certificate of Completion means that certificate attached hereto as EXHIBIT "E"
and incorporated herein, to be issuedto the DEVELOPER by the CITY evidencing completion
of the Project, and release of construction related covenants for the purposes of the
Agreement.
1.7 CFR means the Code of Federal Regulations.
1.8 Commencement of Rehabilitation means the date that the DEVELOPER or
DEVELOPER's construction contractor begins moderate physical rehabilitation work on the
Property, including, without limitation,delivery of materials and any work, beyond maintenance
of the Property in its status quo condition which shall occur with respect to the Property at the
times set forth in the Project Schedule,attached hereto as EXHIBIT "B" and incorporated
herein.
1.9 Completion Date means the date that the CITY issues a recorded Certificate of
Completion for the Project. The Completion Date for the Project is identified in the Project
Schedule, attached hereto as EXHIBIT"B" and incorporated herein.
1.10 Debt Service means paymentsmade in a calendaryear pursuant to the financing
obtained for the acquisition,rehabilitation,operation and/or ownership of the Project, but
excluding payments made pursuantto the Note..
1.11 Declaration of Restrictions means the Declaration of Restrictions, as outlined
substantially in the form attached hereto as EXHIBIT "H" and incorporated herein, which shall
be recorded against the Property no later than the date of disbursement of Loan funds, setting
forth the requirements of this Agreement which shall run with the land. The DEVELOPER shall
record both the Declaration of Restrictions and record a deed restriction for the Declaration of
Restrictions.
1.12 Deed of Trust meansthat standardfirst (1st)position lien including assignment of
rents and security agreement given by the DEVELOPER,as Trustor, to the CITY as
beneficiary, issued through the First American title company escrow established by the
DEVELOPER at its sole cost and expense, with a title company acceptable to the CITY,
recorded against the Property, insured in the full amount of the Loan and acceptable to the
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City Attorney,as well as any amendments to,modifications of, and restatements of said Deed
of Trust.The terms of any such Deed of Trust shall be substantially the form attached hereto
as EXHIBIT "G" and incorporated herein.
1.13 Eligible Costs means any and all HOME Program'eligible Project costs as may
be reimbursed by the Loan,consistent with the Budget,attached hereto as EXHIBIT "C" and
incorporated herein,allowable under 24 CFR Part 92, as specified in 24 CFR 92.205 and
92.206 and not disallowed by 24 CFR 92.214, provided, however, that costs incurred in
connection with any activity that is determined to be ineligible under the Program by HUD or
the CITY shall not constitute Eligible Costs.
1.14 Event of Default shall have the meaning assigned to such term under Section
10.1 hereunder.
1.15 Family has the same meaning given that term in 24 CFR 5.403.
1.16 Federal HOME Investment Partnerships Funds (also referred to in this
Agreement as "HOME Funds" or "HOME Program Funds") means the federal HOME Program
monies consisting of the Loan, in an amount not to exceed the sum of Six Hundred Ninety Five
Thousand Eight Hundred Thirty Eight dollars and 00/100th ($695, 838.00) to be used for
eligible Project costs.
1.17 Funding Sources means: (i)The CITY's HOME Funds, (ii)Seller financing,as
defined below, in the form of a loan from the former property owner loan to the DEVELOPER,
and (iii)the deferred DEVELOPER fee referenced in the Budget as source(s)of funding for the
Project, and any other financing sources described in the Budget.
1.18 Hazardous Materials means any hazardous or toxic substances,materials,
wastes,pollutants or contaminants which are defined, regulated or listed as "hazardous
substances,""hazardous wastes,""hazardous materials,""pollutants,""contaminants"or "toxic
substances"under federal or state .environmental and health safety laws and regulations,
including without limitation,petroleum and petroleumbyproducts,flammable explosives,urea
formaldehyde insulation,radioactive materials,asbestos and lead.Hazardous Materials do
.not include substances that are used or consumed in the normal course of developing,
operating or occupying a housing project, to the extent and degree that such substances are
stored,used and disposed of in the manner and in amounts that are consistent with normal
practice and legal standards.
1.19 Household means one or more persons occupying a Unit in the proposed
Project.
1.20 HUD means the United States Department of Housing and Urban Development.
1.21 Loan means the non-assumable,loan of HOME Funds, in an amount not to
exceed the lesser of the sum of Six Hundred Ninety Five Thousand Eight Hundred Thirty Eight
.dollars and 00/100th ($695,838.00)and the aggregate HOME Program per unit cap (24 C.F.R.
92.250)for the Affordable Units, as determined by the CITY made available by the CITY to the
DEVELOPER for the Project pursuant to this Agreement,as more specifically described in the
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Budget attached hereto as EXHIBIT "C" and incorporated herein, and in the Note attached
hereto as EXHIBIT "F" and incorporatedherein.
1.22 Loan Documents are collectively this Agreement,the Note, Deed of Trust,
Declaration of Restrictions, and all related documents/instruments as they may be amended,
modified or restated from time to time along with all exhibits and attachments thereto, relative
to the Loan.
. 1.23 Low-Incomefor the purposes of this Agreement Low-Incomemeans those whose
annual income does not exceed fifty-five percent (55%) of the median income for the Fresno
County area as determined by HUD, except as HUD may establish income ceilings higher or
lower than fifty-five percent (55%) of the median for the area on the basis of HUD findings that
such variations are necessary.
1.24 Note means the non-assumable,HOME Program Loan Note in a principal
amount of the Loan, given by the DEVELOPER as promissor,in favor of the CITY as
promissee, evidencing the Loan, secured by the Deed of Trust and provided to the CITY no
later than the date of Project funding disbursement hereunder Promissory Note, attached
hereto as EXHIBIT "F" and incorporated herein, as well as any amendments to, modifications
of and restatements of said Note consentedto by CITY..
1.25 Notice to Proceed means that written notice providedto the DEVELOPER by the
CITY instructing the DEVELOPERto proceedwith physical rehabilitationwork at the Property.
1.26 Operating Expenses means actual,reasonable and customary (for comparable
quality, newly rehabiliated rental housing complexes in Fresno County) costs, fees and
expenses directly incurred, paid, and attributable to the operation, maintenance and
management of the Project in a calendar year,including,without limitation: painting, cleaning,
repairs, alterations, landscaping, utilities, refuse removal,certificates,permits and licenses,
sewer charges, real and personal property taxes,assessments,insurance, security,
advertising and promotion, janitorial services, cleaning and building supplies, purchase, repair,
servicing and installation of appliances, equipment, fixtures and furnishings which are not paid
from the capital replacement reserve,fees and expenses of property management and
common area expenses, fees and expenses of accountants,attorneys and other
professionals, the cost of social services, and other actual operating costs and capital costs
which are incurred and paid by Borrower,but which are not paid from reserve accounts.
1.27 Project Units mean the ten (10) housing units rehabilitated on the property of
which ten (10) units will be preserved as Affordable Units.
1.28 Project Schedule means the schedule for commencement and completion of the
Project included within the Project Description and Schedule, attached hereto as EXHIBIT "B"
and incorporated herein.
1.29 Property means the property located at 142 N. Fulton Street, Fresno, California
93701, (APN: 459-303-18), more specifically described in the Project Description, attached as
EXHIBIT "A", including four (4) existing structures arranged in an "L" shape formation and are
poured in place concrete buildings.
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1.30 Rent means the total monthly payment a tenant pays for an Affordable Unit
including the following: use and occupancy of the Unit and land and associated facilities,
including parking, any separately charged fees or service charges assessed by the
DEVELOPER which are required of all tenants (other than security deposits), the cost of an
adequate level of service for utilities paid by the tenant (including garbage collection, sewer,
water,common area electricity, but not telephone service), any other interest, taxes, fees or
charges for use of the land or associated facilities and assessed by a public or private entity
other than the DEVELOPER,and paid by the tenant. Rent does not include payments for any
optional services provided by the DEVELOPER.
1.31 Unit means a dwelling unit within the Project.
1.32 Verv Low-Income for the purposes of this Agreement Very Low-Income means
those whose annual income does not exceed fifty-percent (50%) of the median income for the
Fresno,California area as determined by HUD, except as HUD may establish income ceilings
higher or lower than 50% of the median income for the area on the basis of HUD findings that
such variations are necessary.
ARTICLE 2. TERMS OF THE LOAN
2.1 Loan of HOME Funds. The CITY agrees to provide a Loan of HOME Funds to
the DEVELOPER in an amount not to exceed Six Hundred Ninety Five Thousand Eight
Hundred Thirty Eight dollars and 00/100th ($695,838.00) under the terms and conditions
provided in this Agreement.The HOME Funds shall only be used for payment of HOME
Eligible Costs.
2.2 Loan Documents. The DEVELOPER shall execute and deliver the Note to the
CITY and the Deed of Trust to the Title Company for recordation against the Property, as
provided for in this Agreement.•
2.3 Term of Agreement. This Agreement is effective upon the Effective Date and
shall remain in force with respect to the Project for the duration of the Affordability Period
unless earlier terminated as provided herein.After the fifty-five (55) year Affordability Period,
this Agreement will expire,except as to financial obligations then due and owing. It is
understood and agreed upon, however, that if for any reason this Agreement should be
terminated in whole or in part as provided hereunder by the DEVELOPER prior to
disbursement of the Loan, the CITY agrees to record a Notice of Cancellation regarding this
Agreement and instruments recorded hereunder, upon the written request of the
DEVELOPER.
2.4 'Loan Repayment and Maturitv. The Loan will be due and payable in accordance
with the Note and not later than the maturity date provided in the Note.
2.5 Incorporation of Documents. The City Council approved Minutes of June 28,
2012 approving this Agreement, the Loan Documents, the Act and HUD regulations at 24 CFR
Part 92, and all exhibits, attachments, documents and instruments referenced herein, as now
in effect and as may be amended from time to time, constitute part of this Agreement and are
incorporated herein by reference. All such documents have been provided to the parties
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herewith or have been otherwise provided to/procured by the parties and reviewed by each of
them prior to execution hereof.
2.6 Covenants of DEVELOPER.The DEVELOPER for itself and its agents/assigns
covenants and agrees to comply with all the terms and conditions of this Agreement and the
.requirements of 24 CFR Part 92 that are applicableto the Project.
ARTICLE 3.REPRESENTATIONS AND WARRANTIES OF DEVELOPER
3.1 Existence and Qualification.The DEVELOPER represents and warrants to the
CITY as of the date hereof, that the DEVELOPER is a duly organized limited liability company
in good standing with the State of California; the DEVELOPER has the requisite power,right,
and legal authority to execute, deliver, and perform its obligations under this Agreement and
has taken all actions necessary to authorize the execution,delivery, performance, and
observance of its obligations under this Agreement. This Agreement,when executed and
delivered by the DEVELOPER and the CITY, shall constitute the legal,valid,and binding
obligations of the DEVELOPER enforceable against the DEVELOPER in accordance with its
respective terms, except as such enforceability may be limited by (a) bankruptcy, insolvency,
fraudulent conveyance,reorganization,moratorium,or other similar laws of general
applicability affecting the enforcement of creditors' rights generally,and (b) the application of
general principles of equity without the joinder of any other party..
3.2 No Litigation Material to Financial Condition.The DEVELOPER represents and
warrants to the CITY as of the date hereof that, except as disclosed to and approved by the
CITY in writing, no litigation or administrative proceeding before any court or governmental
body or agency is now pending, nor, to the best of the DEVELOPER's knowledge, is any such
litigation or proceeding now threatened, or anticipated against the DEVELOPER that, if
adversely determined, would have a material adverse effect on the financial condition,
business, or assets of the DEVELOPERor on performanceof this Agreement or the operation
of the Project.
3.3 No Conflict of Interest. The DEVELOPER represents and warrants to the CITY
as of the date hereof that no official, officer, agent, or employee of the CITY directly or
indirectly owns or controls any interest in the DEVELOPER,and no person, directly or
indirectly owning or controlling any interest in the DEVELOPER,is an official, officer, agent, or
employee of the CITY.
3.4 No Legal Bar. The DEVELOPER represents and warrants to the CITY as of the
date hereof that the execution, delivery,performance,or observance by the DEVELOPER of
this Agreement will not, to the best of the DEVELOPER's knowledge,materially violate or
contravene any provisions of: (a) any existing law or regulation,or any order of decree of any
court, governmental authority, bureau, or agency applicableto the DEVELOPER;(b) governing
documents and instruments of the DEVELOPER;or (c) any mortgage, indenture, security
agreement, contract, undertaking, or other agreementor instrumentto which the DEVELOPER
is a party or that is binding on any of its properties or assets, the result of which would
materially or substantially impair the DEVELOPER's ability to perform and discharge its
obligations or its ability to completethe Project under this Agreement.
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3.5 Assurance of Governmental Aoorovals and Licenses.The DEVELOPER
represents and warrants, as of the date hereof, that the DEVELOPER has obtained and, to the
best of the DEVELOPER's knowledge,is in compliance with all federal, state, local
governmental reviews, consents,authorizations,approvals,and licenses presently required by
law to be obtained by the DEVELOPERfor the Project.
ARTICLE 4. COVENANTSOF THE DEVELOPER
4.1 Affirmative Marketing. The DEVELOPER warrants, covenants and agrees that it
shall comply with all affirmative marketing requirements,including without limitation,those set
out at 24 CFR 92.350, 24 CFR 92.351, in order to provide information and otherwise attract
eligible persons from all racial, ethnic and gender groups in the housing market. The
DEVELOPER shall be responsible for complying with the CITY's "Affirmative Marketing Policy"
document, as amended from time to time. The DEVELOPER shall maintain records of actions
taken to affirmatively market units, and to assessthe resultsof these actions.
4.2 Availabilitv of HOME Funds. The DEVELOPER understandsand agrees that the
availability of HOME Funds is subject to the control of HUD, or other federal agencies, and
should the HOME Funds be encumbered,withdrawn or otherwise made unavailable to the
CITY, weather earned by or promised to the DEVELOPER,and/or should the CITY in any
fiscal year hereunder fail to allocate said HOME Funds,the CITY shall not provide said HOME
Funds unless and until they are made availablefor paymentto the CITY by HUD and the CITY
receives and allocates said HOME Funds. No other funds owned or controlled by the CITY
shall be obligated under this Agreement.
4.3 Compliance with Agreement. The DEVELOPER warrants, covenants and agrees
that, in accordance with the requirements of 24 CFR 92.252 and 24 CFR Part 85, upon any
uncured default, after the expiration of all applicable cure periods in accordance with Section
10.1 herein, by the DEVELOPER within the meaning of Article 10 of this Agreement, the CITY
may suspend or terminate this Agreement and all other agreements with the DEVELOPER
without waiver or limitation of rights/remedies otherwiseavailableto the CITY.
4.4 Conflict of Interest. The DEVELOPER warrants, covenants and agrees that it
shall comply with the Conflict of Interest requirements of 24 CFR 92.356 including, without
limitation, that no officer, employee, agent or consultant of the DEVELOPER may occupy any
of the ten (10) Affordable Units. The DEVELOPER understands and acknowledges that no
employee, agent, consultant, officer or elected official or appointed official of the CITY, who
exercises or has exercised any functions or responsibilities with respect to the Project, or who
is in a position to participate in a decision making process or gain inside information with
regard to these activities, may obtain a financial interest or benefit from the Project, or have an
interest in any contract, subcontract or agreement with respect thereto, or the proceeds
thereunder, either for him or herself or for anyone with which that person has family or
business ties, during his or her tenure or for one year thereafter. To the extent provided at 24
CFR 92.356(f), no owner, developer or sponsor of the Project,or officer, employee, agent or
consultant thereof, may occupy any of the ten (10) Affordable Units.
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4.5 Rehabilitation Standards.The DEVELOPER shall rehabilitate the ten (10)
Project Units assisted under this Agreement in compliance with all applicable local codes,
ordinances and zoning requirementsin effect at the time of issuanceof CITYbuilding permits.
4.6 Covenants and Restrictions to Run with the Land.The CITY and the
DEVELOPER expressly warrant, covenant and agree to ensure that the covenants and
restrictions set forth in this Agreement are recorded and will run with the land, provided,
however, that, on expiration of this Agreement such covenantsand restrictionsshall expire.
.A. The CITY and the DEVELOPER hereby declare their understanding and
intent that the covenants and restrictions set forth herein directly benefit the land by: (a)
making possible the obtaining of advantageous financing for the rehabilitation and (b)
enhancing and increasing the enjoyment of the proposed Project by certain Very Low- and
Low-Income households.
B. The DEVELOPER covenants and agrees that upon notification from the
CITY that the ten (10) Affordable Unit tenant information has been entered into HUD's
Integrated Disbursement and InformationSystem untilthe expiration of the Affordability Period,
it shall cause the ten (10) Units to be rented as Affordable Housing for Very Low- and Low-
Income households.
C. Without waiver or limitation,the CITY shall be entitled to injunctive or other
equitable relief against any violation or attempted violation of any covenants and restrictions,
and shall, in addition, be entitled to damages available under law or contract for any injuries or
losses resulting from any violations thereof.
D. 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 covenants and
restrictions. The acceptance of a deed of conveyance to the Property shall constitute an
agreement that the covenants and restrictions,as may be amended or supplemented from
time to time, are accepted and ratified by such future owners,tenant or occupant, and all such
covenants and restrictions shall be covenants running with the land and shall bind any person
having at any time any interest or estate in the Property,all as though such covenants and
restrictions were recited and stipulated at length in each and every deed,conveyance,
mortgage or lease thereof.
E. The failure or delay at any time of the CITY or any other person entitled to
enforce any such covenants or restrictions shall in no event be deemed a waiver ofthe 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.
4.7 Displacement of Persons.The DEVELOPER covenants and agrees with the
CITY that pursuant to 24 CFR 92.353, it will take all reasonable steps to minimize the
displacement of any persons (families, individuals,businesses,nonprofit organizations and
farms). The parties acknowledge and agree that the Property is partially occupied with
tenants.
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4.8 Initial and Annual Income Certification.The DEVELOPERcovenants and agrees
with the CITY that it shall comply with the procedures for annual income determinations at 24
CFR 92.203 for the ten (10) Affordable Units.The DEVELOPER shall obtain, complete and
maintain on file, immediately prior to initial occupancy,and annually thereafter, income
certifications from each tenant Household renting any HOME-assisted Unit. The DEVELOPER
shall make a good faith effort to verify that the income provided by an applicant or occupying
Household in an income certification is accurate by taking one or more of the following steps
as part of the verification process: (1) obtain a pay stub for the most recent pay period; (2)
obtain an income verification form from the applicant's current employer;(3) obtain an income
verification form from the Social Security Administration and California Department of Social
Services if the applicant receives assistance from either of such agencies; or (4) if the
applicant is unemployed, obtain another form of independent verification.Copiesof household
income certification and verification must be available for review by the CITY. The
DEVELOPER further warrants, covenants and agrees that it shall cooperate with the CITY in
the CITY's income certification/affordabilitymonitoringactivities.
4.9 Lead-Based Paint. The DEVELOPER covenants and agrees with the CITY that
it shall comply with all applicable requirements of the Lead-Based Paint Poisoning Prevention
Act of 42 U.S.C. 4821 et seq., 24 CFR Part 35, including the HUD 1012 Rule, and 24 CFR
982.4010),and any amendments thereto, and EPA Section402( c)(3) of the Toxic Substances
Control Act (TSCA) to address lead-based paint hazards created by renovation,repair, and
painting activities that disturb lead-based paint in target housing and child-occupied facilities.
Contractors performing renovations in lead-based paint units must be EPA-certified
renovators. These requirements apply to all Units and common areas of the Project. The
DEVELOPER shall incorporate or cause incorporation of this provision in all contracts and
subcontracts for work performed on the Project,which involve the application of paint. The
DEVELOPER shall be responsible for all disclosure,inspection,testing, evaluation, and control
and abatement activities.
4.10 Minority Outreach Activities. The DEVELOPER covenants and agrees with the
CITY that it shall comply with all federal laws and regulations described in Subpart H of 24
CFR Part 92, including, without limitation, any requirementthat the DEVELOPER comply with
the CITY's minority outreach program.
4.11 Other Laws and Regulations.The DEVELOPER covenants and agrees with the
CITY that, in addition to complying with the federal laws and regulations already cited in this
Agreement, the DEVELOPER has reviewed,and shall comply with, all other federal laws and
regulations that apply to the HOME Program,including,without limitation,requirements of 24
CFR 58.6 and the Flood Disaster Protection Act of 1973, as amended (42 U.S.C. 4001-4128)
and the following:
A.The DEVELOPER does not intend to use any financing that is secured by
a mortgage insured by HUD in connection with the Project as part of its rehabilitation of the
Project unless reflected in the Project Budget, attached hereto as EXHIBIT "C" and
incorporated herein, and approved by HUD and the CITY.
B. The Project is not located in a tract identified by the Federal Emergency
Management Agency as havinq special flood requirements.
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C. The Project requirements,Subpart F of 24 CFR Part 92, as applicable and
in accordance with the type of Affordable Units assisted,including,but not limited to, the limit
on the HOME per-unit subsidy amount at 24 CFR 92.250.
D. Theproperty standards at 24 CFR 92.251.
E The Project "Labor"requirements,as applicable, of 24 CFR 92.354
including Davis Bacon prevailing wage requirements (40 U.S.C. 276a - 276a-7), as
supplemented by Departmentof Laborregulations (29 CFR Part 5).
F. The provisions of Section 102 and 107 of the Contract Work Hours and
Safety Standards Act (40 U.S.C.327-333),as supplemented by Department of Labor
Regulations (29 CFR Part 5), in regardsto the construction and management of the proposed
Project.
G. The DEVELOPER and its contractors,subcontractors and service
providers for the Project, shall comply with all applicable local, state and federal requirements
concerning equal employment opportunity,including compliance with Executive Order ("EO.")
11246, Equal Employment Opportunity,as amended by EO.11375, "Amending Executive
Order 11246 Relating to Equal EmploymentOpportunity,"and as supplemented by regulations
at 41 CFR part 60, "Office of Federal Contract Compliance Programs,Equal Employment
Opportunity, Department of Labor."
H. The provisions of the Copeland "Anti-Kickback"Act (18 U.S.C. 874), as
supplemented by Department of Labor regulations (29 CFR Part 3, "Contractors and
Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or
Grants from the United States").
I.The provisions of the Clean Air Act (42 U.S.C. 7401 et seq.) and the
Federal Water Pollution ControlAct (33 U.S.C.1251 et seq.), as amended.
J.The provisions of the ByrdAnti-LobbyingAmendment (31 U.S.C. 1352).
K. The provision of E.O.s 12549 and 12689, "Debarment and Suspension,"
as set forth at 24 CFR Part 24.
L.The provisions of the Drug-Free Workplace Act of 1988 (42 U.S.C. 701),
in accordance with the Act and with HUD's rules at 24 CFR Part 24, Subpart F.
M.Title 8 of the Civil RightsAct of 1968 PL.90-284.
N.ExecutiveOrder 11063 on EqualOpportunity and Housing.
o.Section 3 of the Housing and Urban DevelopmentAct of 1968.
P.The Housingand Community DevelopmentAct of 1974.
Q.Clean Water Requirements 33 U.S.C. 1251.
11
R.Civil Rights Requirements, 29 U.S.C.§623, 42 U.S.C.§2000, 42 U.S.C.
§6102, 42 U.S.C.§12112,42 U.S.C.§12132,49 U.S.C.§5332, 29 CFR Part 1630, 41 CFR
Parts 60 et seq.
4.12 Faith Based Activities. DEVELOPER warrants, covenants and agrees that it
shall not engage in any prohibited activities described in 24 CFR 92.257.
4.13 Reporting Requirements. The DEVELOPER warrants, covenants and agrees
with the CITY that it shall submit performance reports to the CITY as detailed in Section 7.18.
Furthermore,the DEVELOPER agrees to provide, at the sole cost of the DEVELOPER, annual
audited Financial Statements for the Project expenses and ongoing financial transactions
which occur as a result of this Agreement as detailed in Section 5.6 of this Agreement. The
DEVELOPER agrees to account for the expenditure of HOME Funds using generally accepted
accounting principles, which financial documentation shall be made available to the CITY and
HUD, upon their respective written request(s).
4.15 Housing Affordabilitv. The DEVELOPER covenants and agrees with the CITY
that ten (10) of the Project Units will be affordable to Very Low- and Low-Income households
and other requirements of 24 CFR 92.252 during the Affordability Period. Two (2) of the ten
(10) Units shall, at a minimum, be rented to and occupied by, or, if vacant, available for rental
and occupancy by (a) person(s) whose annual household income at the time of initial
occupancy is not greater than fifty percent (50%), of the most 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 rent consistent with HOME Program regulations,
for the Affordability Period. Eight (8) of the ten (10) Units shall, at a minimum, be rented to
and occupied by, or, if vacant, available for rental and occupancy by (a) person(s) whose
annual household income at the time of initial occupancy is not greater than fifty-five percent
(55%), of the most 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
rent consistent with HOME Program regulations, for the Affordability Period. Provided that
upon foreclosure by a lender (or'other transfer in lieu of foreclosure, or assignment of an FHA-
insured mortgage to HUD), the Affordability Period shall be terminated if the foreclosure (or
other transfer in lieu of foreclosure or assignment recognizes any contractual or legal rights of
public agencies,nonprofit sponsors, or others) would avoid the termination of low-income
affordability.However, the requirements with respect to the Project shall be revived according
to their original terms, if during the original Affordability Period, the owner of record before the
foreclosure or other transfer, or any entity that includes the former owner or those with whom
the former owner has or had family or business ties, obtains an ownership interest in the
Project or the Property, the Affordability Period shall be revived according to its original terms.
In the event the DEVELOPER fails to comply with this Section or the Affordability Period is not
revived following transfer by foreclosure or transfer in lieu of foreclosure, the DEVELOPER
shall return to the CITY all HOME Funds disbursed to the DEVELOPER by the CITY.
4.16 Terminated Project. The DEVELOPER understands and agrees that, if the
Project is terminated before the completion, either voluntary or otherwise, such constitutes and
ineligible activity and the CITY, without waiver or limitation upon other rights and remedies will
not be required to provide any further HOME Funding to the Project Units.
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ARTICLE 5.PROPERTY MAINTENANCE
The DEVELOPER covenants and agrees with the CITY to the following, for the entire
term of the Agreement.
5.1 Adequate Repair and Maintenance.After completion of the rehabilitation Project,
the DEVELOPER shall maintain the Project and Property in compliance with all applicable
codes, laws, and ordinances.
5.2 Affordable Rental Housing.Shall constitute ten (10) Affordable rental housing
units preserved as Very Low- and Low-Income Rental Housing (as provided at 24 CFR
92.252) during the entire Affordability Period. This covenantshall remain in effect and runwith
and restrict the land during the entirety of the Affordability Period. In the event that the
DEVELOPER fails to comply with the time period in which the Affordable Units constitute
Affordable Housing, the CITY shall without waiver or limitation is entitled to injunctive relief, as
the DEVELOPER acknowledges that damages are not an adequate remedy at law for such
breach.
5.3 Compliance with Environmental Laws.The DEVELOPER shall cause the
Affordable Units to be in compliance with, and not to cause or permit the Project to be in
violation of, any Hazardous Materials law, rule,requlatlon,ordinance,or statute. Although the
CITY will utilize its employees and agents for regular inspection and testing of the eligible
Property, the DEVELOPER agrees that,if the CITY has reasonable grounds to suspect any
such violation, the DEVELOPER shall be entitled to thirty (30) days' notice and opportunity to -
cure such violation. If the suspected violation is not cured, the CITY shall have the right to
retain an independent consultant to inspect and test the Property for such violation. If a
violation is discovered; the DEVELOPER shall pay for the reasonablecost of the independent
consultant.
Additionally, the DEVELOPERagrees:
A. That the CITY shall not be directly or indirectly responsible, obligated or
liable with the inspection, testing, removal or abatement of asbestos or other hazardous or
toxic chemicals, materials,substances,or wastes and that all cost, expense and liability for
such work shall be and remainsolely with the DEVELOPER;
B. Not to transport to or from the proposed Property,or use, generate,
manufacture, produce, store,release,discharge, or dispose of on, under, or about the
Property, or surrounding real estate, or transport to or from the Property, or surrounding real
estate, any hazardous or toxic chemicals, materials,substance,or wastes or allow any person
or entity to do so except in such amounts and under such terms and conditions permitted by
applicable laws, rules,regulations,ordinances,and statutes;
C. To give promptwritten notice to the CITY of the following:
(i) Any proceeding or inquiry by any governmental authority with respect
to the presence of any hazardous or toxic chemicals,materials, substance, or waste in or on
13
the eligible Property or the surrounding real estate or the migration thereof from or to other
property; and
(ii) All claims made or threatened by any third party against the
DEVELOPER or such properties relating to any loss or injury resulting from any hazardous or
toxic chemicals, materials, substance, or waste; and
(iii) The DEVELOPER's discovery of any occurrence or condition on any
real property adjoining or in the vicinity of such properties that would cause such properties or
underlying or surrounding real estate or part thereof to be subject to any restrictions on the
.ownership, occupancy, transferability, or use of the property under any environmental law,
rule, regulation, ordinance or statute; and
D. To indemnify, defend, and hold the CITY harmless from any and all
claims, actions, causes of action, demands, judgments, damages, injuries, administrative
orders, consent agreements, orders,liabilities,penalties,costs, expenses (including attorney's
fees and expenses), and disputes of any kind whatsoever arising out of or relating to the
DEVELOPER or any other party's use or release of any hazardous or toxic chemicals,
materials, substance, or wastes on the Property regardless of cause or origin, including any
and all liability arising out of or relating to any investigation,site monitoring, containment,
cleanup, removal, restoration, or other remedialwork of any kind or nature.
5.4 Compliance with Laws. The DEVELOPERshall be responsible for and promptly
and faithfully comply with, conform to and obey all present and future federal, state and local
statutes, regulations, rules, ordinances and other legal requirements applicable by reason of
this Agreement or otherwise to the Project including without limitation as to prevailing wage
requirements. The DEVELOPER acknowledgesthat the use of federal funds on the Project is
subject to extensive federal regulation and covenants and agrees that it shall comply with,
conform to and obey (and take such steps as are required of the DEVELOPER to enable the
CITY to comply with, conform to and obey) all federal statutes,regulations,rules and policies
applicable to the Project.
5.5 Existence, Qualification, and Authority. The DEVELOPER shall provide to the
CITY any evidence required or requested by the CITY to demonstrate the continuing
existence, qualification, and authority of the DEVELOPER to execute this Agreement and to
perform the acts necessary to carry out the Project.
5.6 Financial Statements and Audits. The DEVELOPER (or its successor who shall
receive federal financial assistance), as a recipient of federal financial assistance, is required
to comply with the provisions of the SingleAudit Act of 1984 (31 U.S.C. Sections 7501 et seq.),
as amended. Annually, within one hundred and eighty (180) days following: 1) the end of fiscal
year(s) in which the federal funds are disbursed hereunder, and 2) the end of fiscal year(s) in
which this contract shall terminate, and otherwise upon the CITY's, written request during the
term of this Agreement, DEVELOPER, at its sole cost and expense shall submit to the CITY.
A.Audited annual financial statementsthat are current, signed, and prepared
according to generally accepted accounting principles consistently applied (except as
otherwise disclosed therein).
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B.AUdited Financial Statements covering the income and expenses, and the
financial transactions for the Affordable Project duringthe prior fiscal year.
5.7 Inspection and Audit of Books,Recordsand Documents,The DEVELOPER shall
be accountable to the CITY for HOME Funds disbursed for this Project pursuant to this
Agreement. Any duly authorized representative of the CITY or HUD shall, at all reasonable
times, have access to and the right to inspect, copy, make excerpts or transcripts, audit, and
examine all books of accounts,records,files and other papers or property, and other
documents of the DEVELOPER pertaining to the Project and for up to six (6) years after the
expiration or termination of this Agreement.
A. The DEVELOPER will maintain books and records for the Project using
generally accepted accounting principles.The DEVELOPER agrees to maintain books and
records that accurately and'fUlly show the date,amount,purpose and payee of all
expenditures financed with HOME Funds and to keep all invoices, receipts and other
documents related to expenditures financed with HOME Funds for not less than six (6) years
after the expiration or termination of the Agreement. Booksand records must be kept accurate
and current. For purposes of this section, "books, records and documents" include, without
limitation; plans, drawings, specifications, ledgers,journals,statements,contracts/agreements,
funding information, funding applications, purchase orders,invoices, loan documents,
computer printouts,correspondence,memoranda,and electronically stored versions of the
foregoing. This section shall survivethe termination of this Agreement..
B. The CITY may audit any conditions relating to this Agreement at the
CITY's expense, unless such audit shows a significant discrepancy in information reported by
the DEVELOPER in which case the DEVELOPER shall bear the cost of such audit. The
DEVELOPER shall also comply with any applicable audit requirements of 24 CFR 92.506.
This section shall survive the termination of this Agreement.
C. The DEVELOPER will cooperate fully with the CITY and HUD in
connection with any interim or final audit relating to the Programsand the Project that may be
performed relative to the performance of this Agreement.
5.8 Inspection of Property.Any duly authorized representative of the CITY or HUD
shall, at all reasonable times, have access and the right to inspect the Property until
completion of the Project and expiration of the applicable Affordability Period within seventy-
two (72) hours written notice, subjectto the rightsof the tenants.
5.9 No Other Liens. The DEVELOPER shall not create or incur, or suffer to be
created or incurred, or to exist, any additionalmortgage, pledge, encumbrance, lien, charge, or
other security interest of any kind on the eligible Property,other than those related to
rehabilitation in relation to the Project consistent with the Project Budget, attached hereto as
EXHIBIT "C" and incorporated herein.
5.10 Nondiscrimination. The DEVELOPER shall comply with and cause any and all
contractors and subcontractors to comply with any and all federal, state, and local laws with
regard to illegal discrimination, and the DEVELOPER shall not illegally discriminate against
15
any persons on account of race, religion, sex, family status, handicap, or place of national
origin in its performance of this Agreement and the completion of the Project.
5.11 Ownership. Except as required in pursuit hereof (leases to residents for one year
or less as described more fully herein) the DEVELOPER shall not sell, lease, transfer, assign
or otherwise dispose of (Transfer")all or any material part of any interest it might hold in the
Property or the Project without prior written consent of the CITY, which consent shall not be
unreasonably withheld or delayed.
5.12 Payment of Liabilities. The DEVELOPER shall pay and discharge in the ordinary
course of its business all material obligations and liabilities, the nonpayment of which could
have a material or adverse impact on its financial condition, business, or assets or on the
operation of the Project, except such obligations and liabilities that have been disclosed to the
CITY in writing and are being contested in good faith.
5.13 Report of Events of Default. The DEVELOPER shall promptly give written notice
to the CITY upon becoming aware of any Event of Default under this Agreement.
ARTICLE 6.DISBURSEMENT OF HOME FUNDS
Without waiver of limitation, the parties agree as follows, regarding disbursement of
HOME Funds:
6.1 Loan Commitments and Financing Plan. The DEVELOPER shall submit its most
current Finance Plan for the Project to the CITY within the time frame provided in the Project
Schedule. So long as the Finance Plan is consistent with the Budget, the CITY shall accept
the Finance Plan. If the Finance Plan is not consistent with the Budget, then within thirty (30)
days after receiving the Finance Plan, the CITY, through its Development and Resource
Management Department, Housing and Community Development Division, will review the
Finance Plan and deliver notice to the DEVELOPER either approving or disapproving the
Finance Plan in its reasonable discretion. If the CITY disapproves the Finance Plan, it will
specify the reason for the disapproval and ask the DEVELOPER to provide any additional
information the CITY may need to approve the Finance Plan. The failure of the CITY to send
notice within such thirty (30) day time period shall be deemed an approval of the Finance Plan.
6.2 Finance Plan Content. The Finance Plan shall contain all Project pre-
construction, construction and post-construction/permanent loans or letters of intent from one
or more qualified public/private lenders or funding sources, in sufficient amounts, combined
with any other developer financing, for the DEVELOPER to complete rehabilitation of the
Project. The total amount of the liens to be recorded against the Property as presented in the
Finance Plan shall not exceed the DEVELOPER's estimated construction Project Budget.
6.3 Use of HOME Funds. The DEVELOPER warrants, covenants and agrees that it
shall request HOME Funds only for reimbursement of eligible costs incurred as identified in the
attached Project Budget, limited to the amount needed for the Affordable Units, including costs
allowable under 24 CFR 92.206, aggregating not more than the Loan amount. The CITY's
obligations shall in no event exceed the HOME Funds amount specified in this Agreement.
16
A. If any such Funds shall be determined to have been requested and/or
. used by the DEVELOPER for costs other than for eligible costs, and subject to the notice and
cure provisions of Section 10.2 hereunder,an equal amount from nonpublic funds shall
become immediately due and payable by the DEVELOPER to the CITY; provided,however,
that the DEVELOPER shall, subject to its full cooperation with the CITY, be entitled to
participate in any opportunity to remedy,contest, or appealsuchdetermination.
B. In the event HOME Funds are requested to reimburse Eligible Costs
which subsequently lose eligibility as Eligible Costs, the DEVELOPER shall immediately return
such HOME Funds to the CITY.
C. The CITY will disburse HOME Funds, only to the DEVELOPER through
proper invoicing, for eligible rehabilitation costs of the Affordable Project as provided in this
Article 6.
6.4 Conditions Precedentto Disbursement.The CITY shall not be obligated to make
or authorize any disbursements of HOME Funds unless all the following conditions are
satisfied:
A. There exists no Event of Default as provided in Article 10, nor any act,
failure, omission or condition that with the giving of noticewould constitutean Event of Default.
B. The DEVELOPER has submitted evidencethat the combined monies from
the Funding Sources and the HOME Funds are not less than Nine Hundred Thirty Seven
Thousand dollars and 00/100 ($937,000.00)attached hereto in Exhibit "C", the amount
necessary to complete the project.
C. The CITY has approved the requested reimbursement of eligible Project
costs..
D..The DEVELOPER has obtained insurance coverage and delivered to the
CITY evidence of insurance as required in Article 9.
E.The DEVELOPER is current with its compliance of all reporting
requirements set forth in this Agreement.
F. The DEVELOPER has provided the CITYwith a written request for Funds
(in a CITY-approved Form), for reimbursement of eligible Project costs, and detailing such
Eligible Costs applicable to the request.
G. The CITY has received Certification required by Section 6.6 of this
Agreement.
H. The CITY has received,and continues to have the right to disburse,
HOME Funds.
6.5 Request for and Disbursementof HOME Funds.The DEVELOPERshall request
disbursement of HOME Funds using the CITY's Requestfor Disbursement of Funds form. The
DEVELOPER shall only request a maximumof the Loan amountin HOME Program assistance
.17
for the Project. All requests must provide in detail such Eligible Costs applicable to the
request. All requests for HOME Funds disbursement shall be accompanied with the
Certification required by Section 6.6 of this Agreement.
6.6 DEVELOPER Certification. The DEVELOPER shall submit to the CITY a written
certification that, as of the date of the Requestfor Disbursement ("Certification"):
A.The representations and warranties contained in or incorporated by
reference in this Agreement continue to be true, complete and accurate in all material
respects;
B. The DEVELOPER has carried out all of its obligations and is in
compliance with all the material obligations or covenants specified in this Agreement, to the
extent that such obligations or covenants are required to have been carried out or are
applicable at the time of the requestfor the Disbursement;
C. The DEVELOPER has not committed or suffered an act, event,
occurrence, or circumstance that constitutes an Event of Default or that with giving of notice
would constitute an Event of Default; and
D. The Disbursement requested will be used solely for reimbursement of
eligible costs and must be supported by the itemized obligations that have been properly
incurred and are properly chargeable in connectionwith the Project.,
6.7 Disbursement of Funds.Disbursements of HOME Program Loan proceeds shall
occur within thirty (30) days after the CITY receives the Certification and to the extent of
annually allocated and available HOME Funds.
ARTICLE 7.REHABILITATION
Without.waiver of limitation, the parties agreeas follows:
7.1 Pre-construction Meeting Regarding Program Processes and Procedures.The
CITY will schedule, and the DEVELOPER shall attend a meeting prior to construction with the
CITY for the purpose of outlining Project processesand procedures.
7.2 Commencement and Completion of Project.The DEVELOPER shall commence
rehabilitation/construction upon receipt of a Notice to Proceed from the CITY, and record a
Notice of Completion upon completion of the rehabilitation of the Project in accordance with
the Project Schedule, attached here to as EXHIBIT"B" and incorporatedherein.
7.3 Contracts and Subcontracts.Consistent with Section 5.3, all demolition,
hazardous waste abatement, construction work and professional services for the Project shall
be performed by persons or entities licensed or otherwise legally authorized to perform the
applicable work or service in the State of California and the City of Fresno. The DEVELOPER
shall provide the CITY.with copies of all agreements it has entered into with any and all
general contractors for the Project. The DEVELOPER shall require that each such general
contractor agreement contain a provision whereby the party(ies) to the agreement other than
the DEVELOPER agree to: (i) notify the CITY immediately of any event of default by the
18
DEVELOPER thereunder; (ii) notify the CITY immediately of the filing of a mechanic's lien; (iii)
notify the CITY immediately of termination or cancellation of the agreement; and (iv) provide
the CITY, upon the CITY's request, an Estoppel Certificate certifying that the agreement is in
full force and effect and the DEVELOPER is not in default thereunder. The DEVELOPER
agrees to notify the CITY immediately of termination or cancellation of any such agreement(s),
notice of filing of a mechanic's lien, or breach or default by other party(ies) thereto.
7.4 Damage to Property. To the extent consistent with the requirements of any
permitted encumbrance,or as otherwise approved by the CITY, and subject to Article 9 of this
Agreement,if any buildinq or improvement constructed on the Property is damaged or
destroyed by an insurable cause, the DEVELOPER shall, at its cost and expense, diligently
undertake to repair or restore said buildings and improvements consistent with the approved
Plans and Specifications for the rehabilitation Project. Such work or repair shall commence
within ninety (90) days after the insurance proceeds are made available to the DEVELOPER
and shall be complete within two (2) years thereafter. All insurance proceeds collected for
such damage or destruction shall be applied to the cost of such repairs or restoration and, if
such insurance proceeds shall be insufficient for such purpose, the DEVELOPER shall make
up the deficiency.
7.5 Fees, Taxes and Other Levies. The DEVELOPER shall be responsible for
payment of all fees, assessments, taxes, charges and levies imposed by any public authority
or utility company with respect to the Project Property, and shall pay such charges prior to
delinquency.However, the DEVELOPER shall not be required to pay and discharge any such
charge so long as: (a) the legality thereof is being contested diligently and in good faith and by
appropriate proceedings, and (b) if requested by the CITY, the DEVELOPER deposits with the
CITY any funds or other forms of assurances that the CITY, in good faith, may determine from
time to time are appropriate to protect the CITY from the consequences of the contest being
unsuccessful.The DEVELOPER shall have the right to apply for and obtain an abatement
and/or exemption of the Project from real property taxes in accordance with all applicable rules
and regulations, including Section 214(g) of the California Revenue and Taxation Code.
7.6 Financing. The DEVELOPER shall promptly inform the CITY of any new
financing or funding not included in the Budget for the Project, and the DEVELOPER shall
provide the CITY copies of all agreements with any and all Funding Sources for the Project.
The DEVELOPER shall requite each agreement with any and all Funding Sources not
included in the Budget to contain a provision whereby the party(ies) to the agreement other
than the DEVELOPER,if permitted by the parties' applicable rules and regulations, agree to:
(i)notify the CITY immediately of any event of default by the DEVELOPER thereunder; (ii)
notify the CITY immediately of termination or cancellation of the agreement; and (iii) provide
the CITY, upon CITY's request, an Estoppel Certificate certifying that the agreement is in full
force and effect and the DEVELOPER is not in default thereunder. The DEVELOPER agrees
to notify the CITY immediately of termination or cancellation of any such agreement(s)or
receipt of notice of default thereunder. The DEVELOPER shall comply with all obligations of
any such agreement(s)with any and all Funding Sources until the respective expiration of such
agreement(s).
7.7 Identification Signage. Before the start of rehabilitation/construction,the
DEVELOPER shall place a poster or sign, with a minimum four feet by four feet in size,
19
identifying the City of Fresno as a Project participant.The sign shall also include the CITY's
Housing Logo, as well as HUD's Equal Housing Opportunitylogo, as mandated by HUD. Font
size shall be a minimum of four (4) inches. The poster/sign shall be appropriately placed, and
shall remain in place throughout the Project construction.
7.8 Inspections. The DEVELOPERshall permit,facilitate, and require its contractors
and consultants to permit and facilitate observation and inspection at the job site by the CITY
and other public authorities during reasonablebusiness hours,for determining compliance with
this Agreement, including without limitationperiodicon-site inspections.
7.9 Utilities. The DEVELOPER shall be responsible,at its sole cost and expense, to
determine the location of any utilities on the Property and to negotiate with the utility
companies for and to relocatethe utilities, if any, as necessaryto complete the Project.
7.10 Insurance and Bonds. Upon the CITY's reasonable request, the DEVELOPER
shall submit for CITY approval, bonds,certificates,and/or applicable endorsements for all
insurance and bonds required by this Agreement in accordancewith Article 9.
7.11 Mechanic's Liens and Stop Notices.If any claim of lien is filed against the
Property or a stop notice affecting any financing,HOME Funds or Funding Sources for the
Project, is served on the CITY or any other third party in connection with the Project, the
DEVELOPER shall, within twenty (20) days of such filing or service, either pay and fully
discharge the lien or stop notice, effect the release of such lien or stop notice by delivering to
the CITY a surety bond in sufficient form and amount,or provide the CITY with other
assurance satisfactory to the CITY that the claim of lien or stop notice will be paid or
discharged.
A.If the DEVELOPERfails to discharge, bond or otherwise satisfy the CITY with
respect to any lien,encumbrance,charge or claim referred to in this Section 7.11, then, in
addition to any other right or remedy,the CITY may, but shall not be obligated to, discharge
such lien, encumbrance, charge, or claim at the DEVELOPER's expense. Alternatively, the
CITY may require the DEVELOPER to immediately deposit with the CITY the amount
necessary to satisfy such lien or claim and any costs, pending resolution thereof. The CITY
may use such deposit to satisfy any claim or lien that is adversely determined against the
DEVELOPER. The DEVELOPER hereby agrees to indemnify and hold the CITY harmless
from liability for such liens,encumbrances,charges or claims together with all related costs
and expenses.
7.12 Permits and Licenses.Upon CITY's reasonable request, the DEVELOPER shall
submit, for CITY approval, all the necessarypermits and licenses required for Commencement
of rehabilitation of the Project. As the CITY may reasonably request, the DEVELOPER,at its
sole cost and expense, shall provide to the CITY copies of.any and all permit approvals and
authorizations including plot plan, plat, zoning variances, sewer, building, and other permits
required by governmental authorities other than the CITY in pursuit of the Project, and for its
stated purposes in accordance with all applicable building, environmental, ecological,
landmark, subdivision, zoning codes, laws, and regulations.The DEVELOPER is responsible,
at its sole cost and expense, to determine the location of any utilities on the Property and to
20
negotiate with the utility companies 'for and to relocate the utilities,if any, as necessary to
complete the Project.
7.13 Plans and Specifications.
A. The DEVELOPER and the CITY have agreed upon and approved Plans
and Specifications for the rehabilitation of the Project. The DEVELOPER will rehabilitate the
Project in full conformance with the-approved Plans and Specifications and modifications
thereto approved by the CITY. The DEVELOPER shall obtainthe CITY's prior written approval
for any modifications to the Plans and Specifications.
B. Before commencementof rehabilitation,the DEVELOPERshall submit to
the CITY, a signed copy of the approvedPlans and Specifications for the Project. This
Agreement incorporates by reference the approved Plans and Specifications.
7.14 Project Responsibilities/Public Work-Prevailing Wage Requirements. The
DEVELOPER shall be solely responsible for all aspects of the DEVELOPER's conduct in
connection with the Project, including but not limited to, compliance with all local, state and
federal laws including without limitation,as to prevailingwage and public bidding requirements.
This Project is a "public work" project for federal purposes including David Bacon and Related
Acts wage requirements absent written direction/determination otherwise by U.S. HUD or a
court of competent jurisdiction.The Project is a "public work" project for state purposes
including California Labor Code Section 1720 et seq. wage requirements,to which Section
1771 applies, absent written direction/determination otherwise the California Department of
Industrial Relations or a court of competentjurisdiction. Basedthereon the DEVELOPER shall
cause the Project work to be performed as a "public work." The Council of the City of Fresno
has adopted Resolution No. 82-297 ascertainingthe general prevailing rate of per diem wages
and per diem wages for holidays and overtime in the Fresno area for each craft, classification
or type of workman needed in the executionof contractsfor the CITY. A copy of the resolution
is on file at the Office of the City Clerk. Actual wage schedules are available upon request at
the CITY's Construction Management Office.Without limiting the foregoing,the DEVELOPER
shall be solely responsible for the quality and SUitability of the work completed and the
supervision of all contracted work, qualifications and financial conditionsof and performance of
all contracts, subcontractors,consultants and suppliers. Any review or inspection undertaken
by the CITY with reference to the Project and/or payroll monitoring/auditing is solely for the
purpose of determining whether the DEVELOPER is properly discharging its obligation to the
CITY, and shall not be relied upon by the DEVELOPERor by any third parties as a warranty or
representation by the CITY as to governmental compliance and/or the quality of work
completed for the Project.
7.15 Property Condition. The DEVELOPER shall maintain the Property and all
improvements on site in reasonably good condition and repair (and, as to landscaping, in a
healthy condition), all according to the basic design and related plans, as amended from time
to time. The DEVELOPER and those taking direction under the DEVELOPER shall: (i)
maintain all on-site improvements according to all other applicable law, rules, governmental
agencies and bodies having or claiming jurisdiction and all their respective departments,
bureaus, and officials; (ii) keep the improvementsfree from graffiti;(iii)keep the Property free
21
from any accumulation of debris'or waste material; (iv) promptly make repairs and
replacements to on-site improvements; and (v) promptly replace any dead, or diseased plans
and/or landscaping (if any) with comparablematerials.
7.16 Qualitv of Work. The DEVELOPER shall ensure that rehabilitation of the
proposed Project employs building materials of a quality suitable for the requirements of the
Project. The DEVELOPER shall cause completionof the rehabilitation of the proposed Project
in full conformance with applicable local, state and federal laws, statutes,regulations,and
building and housing codes.
7.17 Relocation. If and to the extent that rehabilitation of the proposed Project results
in the permanent or temporary displacement of residential tenants, homeowners or
businesses, the DEVELOPER shall comply with all applicable local, state, and federal statutes
and regulatory with respect to relocation planning, advisory assistance and payment of
monetary benefits. The DEVELOPER shall be solely responsible for payment of any
relocation benefit to any displaced persons and any other obligations associated with
complying with said relocation laws.
7.18 Reporting Requirements. The DEVELOPER shall submit to the CITY the
following Project reports:
A. From the date of the execution of the Agreement, until issuance of the
recorded Certificate of Completion, the DEVELOPER shall submit a Quarterly Report, in a
form approved by the CITY, which will include the progress of rehabilitation of the Project and
affirmative marketing efforts (as applicable). The Quarterly Reports are due within fifteen (15)
days after each March 31st, June 30th, September 30th, and December 31st, during said
period.
B. Annually, beginning on the first day of the month following the CITY's
issuance of the recorded Certificate of Completion,and continuing until the termination of the
Agreement, the DEVELOPER shall submit an Annual Report to the CITY for the Project,
containing the following information: the rent, the annual income, and the family size of the
Households. The report shall also state the date tenancy commenced for each Affordable
rental Unit, certification from an officer of the DEVELOPER that the Affordable Project Units
are in compliance with the Affordable Rental Unit Requirements,and such other information
the CITY may be required by law to obtain. The DEVELOPER shall provide any additional
information reasonably requested by the CITY.
C. Annually, beginning on the first day of the month following the CITY's
issuance of the recorded Certificate of Completion for the Project,and continuing until the
expiration of the Agreement, the DEVELOPER shall submit proof of insurance as required in
Article 9.
7.19 Scheduling and Extension of Time;Unavoidable Delay in Performance.It shall
be the responsibility of the DEVELOPERto coordinate and schedulethe work to be performed
so that the Commencement of the Project and issuance of the Certificate of Completion will
take place in accordance with the provisions of the Agreement and Project Schedule. The
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time for performance contained in the Project Schedule shall be automatically extended upon
the following:
A.The time for performance of provisions of the Agreement by either party
shall be extended for a period equal to the period of any delay directly affecting the Project or
this Agreement which is caused by: war,insurrection,strike or other labor disputes,lock-outs,
riots,floods,earthquakes,fires,casualties,acts of God, acts of a public enemy,epidemics,
quarantine restrictions,freight embargoes,lack of transportation,suits filed by third parties
concerning or arising out of this Agreement,or unseasonable weather conditions.An
extension of time for any of the above specified causes shall be granted only if written notice
by the party claiming such extension is sent to the other party within thirty (30)calendar days
from the date the affected party learns of the commencement of the cause and the resulting
delay and such extension of time is accepted by the other party in writing. In any event,the
Projectmust be completed no later than one hundred eighty (180)calendar days after the
scheduled completion date specified in this Agreement,notwithstanding any delay caused by
that included in this section.
B.Any and all extensions hereunder shall be by mutual written agreement of
the CITY's Housing and'Community Development Division Manager and the DEVELOPER
and shall not cumulatively exceed one hundred eighty (180) days.
7.20 Certificate(s)of Completion.Upon completion of the rehabilitation Project,the
DEVELOPER shall: 1)certify in writing .to the CITY that the Project has been rehabilitated in
accordance with the Plans and Specifications;2)submit to the CITY a cost-certifying final
Project budget where the DEVELOPER shall identify the actual costs of rehabilitation of the
Project;3)submit to the CITY a recorded Notice of Completion for the Project; and 4)submit to
the CITY an Architect's certification in a form reasonably acceptable by the CITY. Upon a
determination by the CITY that the DEVELOPER is in compliance with all of the
DEVELOPER's rehabilitation obligations,as specified in this Agreement,the CITY shall
furnish,within thirty (30)calendar days of a written request by the DEVELOPER,a recorded
Certificate of Completion for the Project in the form attached as EXHIBIT "E".The CITY will
not unreasonably withhold or delay furnishing the recorded Certificate of Completion.If the
CITY fails to provide the recorded Certificate of Completion within the specified time,it shall
provide the DEVELOPER with a written statement indicating in what respects the
DEVELOPER has failed to complete the Project in conformance with this Agreement or has
otherwise failed to comply with the terms of this Agreement,and what measures the
DEVELOPER will need to take or what standards it will need to meet in order to obtain the
recorded Certificate of Completion.Upon the DEVELOPER taking the specified measures and
meeting the specified standards,the DEVELOPER will certify to the CITY in writing of such
compliance and the CITY shall deliver the recorded Certificate of Completion to the
DEVELOPER in accordance with the provisions of this section.
ARTICLE 8.PROJECT OPERATIONS
8.1 Operation of the Project. The DEVELOPER shall lease,operate and manage the
Project in full conformity with the terms of this Agreement.
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8.2 Occupancy Requirements.Two (2) of the ten (10) HOME-Assisted Affordable
Units shall be rented and occupied by, or if vacant,available for rental occupancy by those
whose annual household income at the time of initial occupancy is not greater than fifty
percent (50%) of the most 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 rent consistent with HOME Program regulations (as provided at 24 CFR 92.252) for
the term of this Agreement and eight (8) of the ten (10)HOME-Assisted Affordable Units shall
be rented and occupied by, or if vacant, availablefor rental occupancy by those whose annual
household income at the time of initial occupancy is not greaterthan fifty-five percent (55%) of
the most 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 rent
consistent with HOME Program regulations (as provided at 24 CFR 92.252) for the term of this
Agreement the DEVELOPER shall comply with the income targeting requirements of 24 CFR
92.216..
8.3 Leasing the HOME Units".Before leasing anyAffordable Units, the DEVELOPER
shall submit its proposed form of lease agreement for the CITY's review and approval. The
DEVELOPER covenants and agreesto utilizeonly leasesthat have been approved in advance
by the CITY. The CITY shall respond to the DEVELOPER's submission of a sample lease
agreement within thirty (30) days. Should the CITY not respond within thirty (30) days of the
lease agreement submittal, the DEVELOPER shall be authorized to use the submitted sample
lease agreement. Additionally, DEVELOPER agrees not to terminate the tenancy or to refuse
to renew or lease with a tenant of the Affordable Units assisted with HOME Funds except for
serious or repeated violation of the terms and conditions of the lease agreement, for violation
of applicable federal, state, or local law, or for other good cause. Any such termination or
refusal to renew must be preceded by not less than thirty (30) days' written notice served by
the DEVELOPER or its authorized managemententity upon the tenant specifying the grounds
for such action. The DEVELOPER agrees it shall annually report to the CITY the number of
leases that 'were not renewed or terminated and the reason for such non-renewal or
termination.
8.4 Lease Of HOME Units Provisions.In addition to the requirements of 24 CFR
92.253,the leases are subjectto the following:
A. The DEVELOPER shall include in its lease agreement for the Affordable
Units, provisions which authorize the DEVELOPER to immediately terminate the tenancy of
any Household of which one or more of members misrepresented any fact material to the
Household's qualification as a Very Low- or Low-Income household. Each such lease
agreement shall also provide that the Household is subject to annual certification, and that, if
the Household's annual income increases above the applicable limits for Low-Income,such
Household's rent may be subject to increaseto the lesser of: (1)the amount payable by tenant
under state or local law; or (2) thirty percent (30%) of the Household's actual adjusted monthly
income.
8.5 Final Management Plan. Before leasing and at least sixty (60) calendar days
prior to the Completion Date,the DEVELOPER shall submit to the CITY, for review and
approval, a plan for marketing and managingthe proposed Project ("Final Management Plan").
The Final Management Plan shall address in detail how the DEVELOPER or its designated
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management entity plans to market the availability of Affordable Units to prospective tenants
and how the DEVELOPER plans to certify the eligibility of potential Low-Income tenants. The
Final Management ~Ian shall also address how the DEVELOPER and/or the management
entity plan to manage and maintain the Affordable Project Units in accordance with HOME
Program regulations at Section 92.251 Property Standards, and shall include appropriate
financial information and documentation. The Final Management Plan shall contain detailed
descriptions of policies and procedures with respect to tenant selections and evictions. Topics
to be covered in these procedures shall include at a minimum the following:
• Interviewing procedures for prospective tenants;
• Previous rental history of tenants with references;
• Credit reports and checks;
• Criminal background checks;
• Deposit amounts, purpose, use and refund policy;
• EmploymenUlncome verification;
• Occupancy restrictions;
• Income Limits; _
• Equal Housing Opportunity Statement;
• Restrictions on use of the premises; and
• Tenant/Landlord dispute resolution procedures.
The Final Management Plan shall contain copies of all standardized forms associated
with the above listed topics. The Final Management Plan shall include a form lease agreement
that the DEVELOPER proposes to enter into with the Very Low and Low-Income tenants. The
DEVELOPER shall abide by the terms of this Final Management Plan, approved by the CITY,
in marketing, managing and maintaining the Affordable Project Units.
At least ninety (90) calendar days prior to the Project Completion Date, the
DEVELOPER shall also submit any proposed management contract to the CITY for prior
review. The CITY shall have the right to review any proposed amendments, other than
renewals to the management contract, and any new management contracts during the term of
this Agreement. Such management contract(s) shall contain a provision expressing this right.
8.6 Property Management. The DEVELOPER shall comply with the following:
A. Management Responsibilities.The DEVELOPER directly and/or through
its designated management entity, is specifically responsible for all management functions with
respect to the Project including, without limitation, the selection of tenants, certification and re-
certification of Household size and income, evictions, collection of Rents and deposits,
construction management, affirmative marketing, maintenance, landscaping, routine and
extraordinary repairs, replacement of capital items and security. The CITY shall have no
responsibility for such management of the Affordable Units.
8.7 Maintenance and Security. The DEVELOPER shall at its own expense maintain
the Project in good condition, in good repair and in decent, safe, sanitary, habitable and
tenantable living conditions for the benefit of the Unit occupants. The DEVELOPER shall not
commit or permit any waste on or to the Project, and shall prevent and/or rectify any physical
25
deterioration of the housing. The DEVELOPER shall maintain the Affordable Units in
conformance with all applicable federal, state and local laws, ordinances, codes and
regulations, the Final Management Plan, and this Agreement.The DEVELOPER agrees that
its failure to maintain the property in'accordance with this section will result in acceleration of
the HOME Loan.-
8.8 Nondiscrimination. All of the HOME Units shall be available for occupancy on a
continuous basis to households who are income eligible. The DEVELOPER shall not illegally
discriminate or segregate in the rehabilitation of the complex,the use,enjoyment,occupancy
or conveyance of any part of the Project or Property on the basis of race, color,ancestry,
national origin, religion, sex, marital status, family status, source of income/rental assistance
subsidy, physical or mental disability, Acquired Immune DeficiencySyndrome (AIDS) or AIDS-
related conditions (ARC), sexual orientation, or any other arbitrary basis. The DEVELOPER
shall otherwise comply with all applicable local, state and federal laws concerning
nondiscrimination in housing. Neither the DEVELOPER nor any person claiming under or
through the DEVELOPER, shall establish or permit any such practice or practices of illegal
discrimination or segregation with reference to the selection,location, number, use or
occupancy of tenants or vendees of any Unit or in connectionwith employment of persons for
the rehabilitation of any Affordable Unit. All deeds or contracts made or entered into by the
DEVELOPER as to the Affordable Units or the project or portion thereof, shall contain
covenants concerning nondiscrimination consistent with this section. The DEVELOPER shall
include a statement in all advertisements, notices and signs for availability of Affordable Units
for rent to the effect that the DEVELOPER is an Equal HousingOpportunity Provider.
A. Nothing in this section is intended to require the DEVELOPER to change
the character, design, use or operation of the Project;or to require the DEVELOPERto obtain
licenses or permits other than those requiredfor the Project.
8.9 Rent Schedule and Utility Allowances. The DEVELOPER covenants and agrees
not to charge rent to tenants for HOME Units in an amount which exceeds those rents
prescribed to the Affordable Units as they associate with particular income and rent limitations
levels as established annually by HUD, consistent with the HOME Program requirements
applicable to the Affordable Units in the Fresno, California area, as established by HUD, and
further covenants not to impose a monthly allowance for utility services to tenants of such
Affordable Units in excess of an amount approved by HUD in accordance with 24 CFR 92.252.
The DEVELOPER agrees to furnish to the CITY with a certificate setting forth the maximum
monthly rentals for HOME Units and the monthly allowances for utilities and services to be
charged during any annual period until the expiration of the Affordability Period. The
DEVELOPER shall reexamine the income of each tenant Household living in the Affordable
Units on an annual basis.
ARTICLE 9.INSURANCE AND INDEMNITY
Without waiver of limitation, the parties agree as follows regarding the DEVELOPER's
Insurance and Indemnity Obligations:.
9.1 Indemnification. DEVELOPER shall indemnify,hold harmless and defend the
CITY, HUD and each of their officers, officials, employees, agents and volunteers from any
26
and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort
or strict liability, including but not limited to personal injury, death at any time and property
damage) incurred by the CITY, HUD,DEVELOPER or any other person, and from any and all
claims, demands and actions in law or equity (includinq attorney's fees and litigation
expenses}, arising or alleged to have arisen directly or indirectly our of performance of this
Agreement. DEVELOPER's obligation under the preceding sentence shall apply regardless of
whether the CITY, HUD or any of their officers,officials, employees, agents or volunteers are
negligent, but shall not apply to any loss,liability,fines, penalties,forfeitures, costs or damages
caused solely by the gross negligence,or caused by the willful misconduct, of the CITY, HUD
or any of their officers, officials,employees,agents or volunteers.
A. If the DEVELOPER should contract all or any portion of the work to be
performed under this Agreement, the DEVELOPER shall require each contractor and
subcontractor to indemnify, hold harmless and defend the CITY and each of its officers,
officials, employees, agents and volunteers in accordance with the terms of the preceding
paragraph.
B. This section shall survive termination or expirationof this Agreement.
9.2 • Insurance. Throughout the life of this Agreement, the DEVELOPER shall itself
and/or through its consultant(s),assignee(s},nominee(s}, contractors and subcontractors pay
for and maintain in full force and effect all policy(ies}of insurance required hereunder with (an)
insurance company(ies} 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 CITY's Risk Manager.The following policies of insurance are
required:
A.Until issuanceof Certificate(s}of Completion, BUILDERS RISK (Course of
Construction) insurance in an amount equal to the completed value of the Affordable Project
with no coinsurance penalty provisions.
B. Following issuance of Certificate(s) of Completion,Commercial Property
insurance which shall be at least as broad as the most current version of Insurance Service
Office (ISO) Commercial Property Form CP 1030 (Cause of Loss - Special Form), with limits
of insurance in an amount equal to full one hundred percent (100%) replacement cost (without
deduction for depreciation) of the improvements with no coinsurance penalty provisions. Such
insurance shall include coverage for business income, including "rental value", in an amount
equal to the two (2) years of the annual rent generated by the improvements.Coverage for
business income, includinq "rental value",shall be at least as broad as the most current
version of Insurance Service Office (ISO)Commercial Property Form CP 00 30.
1. The above described policy(ies} of insurance shall be endorsed to provide
that the coverage shall not be cancelled,non-renewed,reduced in coverage or in limits except
after thirty (3D)calendar day written notice has been given to CITY an unrestricted thirty (3D)
day written notice in favor of the CITY, of policy cancellation,change or reduction of coverage.
Upon issuance by the insurer, broker, or agent of a notice of cancellation,non-renewal,
change or reduction in coverage, the DEVELOPER or its contractors/subcontractors,as the
case may be, shall furnish CITY with a new certificate and applicable endorsements for such
27
policy(ies). In the event the policy is due to expire during the term of this Agreement, the
DEVELOPER shall provide a new certificate,and applicable endorsements, a new certificate
evidencing renewal of such policy shall be provided not less than fifteen (15) days prior to the
expiration date of the expiring policy. Upon issuance by the insurer, broker, or agent of a
notice of cancellation, change or reduction in coverage,the DEVELOPER or its
contractors/subcontractors, as the case may be, shall file with the CITY a certified copy of the
new or renewal policy and certificatesfor such policy.
2. The Builders Risk (Course of Construction) and Property Insurance
policies shall name the CITY as loss payee.The insurance required herein shall contain no
special limitations on the scope of protection affordedto the City.
3. If at any time during the life of this Agreement or any extension, the
DEVELOPER fails to maintain the required insurancein full force and effect, all work under this
Agreement shall be discontinued immediately,until notice is received by the CITY that 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 CITY. Any failure to maintain the required
insurance, subject to notice and cure requirements herein, shall be sufficient cause for the
CITY to terminate this Agreement.
9.3 Bonds. DEVELOPER shall pay for and maintain good and sufficient surety bonds
from a corporate surety, admitted by the California InsuranceCommissioner to do business in
the State of California and Treasury-listed,in a form satisfactory to the CITY and naming the
CITY as Obligee.
A. The "Faithful Performance Bond" shall be at least equal to one hundred
percent (100%) of the DEVELOPER's estimated construction costs, as reflected in the
DEVELOPER's pro forma budget, attached hereto as EXHIBIT "C", to guarantee faithful
performance of the Project, within the time prescribed, in a manner satisfactory to the CITY,
consistent with this Agreement, and that all materials and workmanship will be free from
original or developed defects.
B. The "Material and Labor Bond" shall be at least equal to one hundred
percent (100%) of the DEVELOPER's estimated construction costs, as reflected in the
DEVELOPER's pro forma budget, attached hereto as EXHIBIT"C",to satisfy claims of material
supplies and of mechanics and laborers employed for this Project. The bond shall be
maintained by the DEVELOPER in full force and effect until the Project is completed, and until
all claims for materials and labor are paid,released,or time barred, and shall otherwise comply
with any applicable provisions of the California Civil Code.
C. In lieu of the bonds required above, CITY, in its sole discretion, may
accept from the DEVELOPER an Irrevocable Standby Letter of Credit issued with the CITY
named as the sole beneficiary in the amount(s) of the bonds required above. The Irrevocable
Standby Letter of Credit is to be issued by a bank, and in a form, acceptable to CITY.This
Irrevocable Standby Letter of Credit shall be maintained by the DEVELOPER in full force and
effect until CITY is provided with a recorded Notice of Completion for reconstruction of the
Project and shall be SUbject to and governed bythe lawsof the State of California."
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ARTICLE 10.DEFAULT AND REMEDIES
10.1 Events of Default. Each of the following shall constitute an "Event of Default" for
purposes of this Agreement after the cure period in Section 10.2has expiredwithout a cure:
A.DEVELOPER'sfailureto obtaina Noticeto Proceed from the CITY priorto
commencement of physical work on the Project Property..
B. DEVELOPER's use of HOME Funds,for costs other than Eligible Costs or
for uses not permitted by the terms of this Agreement;
. C. DEVELOPER's failure to maintain the property to HOME Program
standards as required under this Agreement;
D...DEVELOPER's failure to obtain and maintain the insurance coverage as
required under this Agreement;
E.Except as otherwise provided in this Agreement, the failure of the
DEVELOPER to punctually and properly perform any other covenant or agreement contained
in this Agreement including without limitationthe following: (1) the DEVELOPER's substantial
deviation in the rehabilitation of the Project from the Plans and Specifications,without the
.CITY's prior written consent; (2) the DEVELOPER's use of defectiveor unauthorized materials
or defective workmanship in pursuit of the Project;(3) the DEVELOPER'sfailure to commence
or complete the Project, unless delay is permitted under Section 7.19 of this Agreement; (4)
the cessation of work on the Project for a period of more than fifteen (15) consecutive days
(other than as provided at Section 7.19 of this Agreement) prior to submitting to the CITY,
pursuant to Section 7.20, certification that the Project is complete;(5) any material adverse
change in the financial condition of the DEVELOPER or the Project that gives the CITY
reasonable cause to believe that the Project cannot be completed by the Completion Date
according to the terms of this Agreement;(6) the DEVELOPER's failure to remedy any
deficiencies in record keeping or failure to provide records to the CITY upon the CITY's
request; (7) the DEVELOPER's failure to substantially comply with any federal, state or local
laws or applicable CITY restrictions governing the Project,including but not limited to
provisions of this Agreement pertaining to equal employment opportunity,nondiscrimination
and lead-based paint;
F. Any representation,warranty,or certificate given or furnished by or on
behalf of the DEVELOPER shall prove to be materially false as of the date of which the
representation, warranty, or certification was given, or that the DEVELOPER concealed or
failed to disclose a material fact to the CITY, provided,however,that if any representation,
warranty, or certification that proves to be materiallyfalse is due merely to the DEVELOPER's
inadvertence, the DEVELOPER shall have a thirty (30) day opportunity after written notice
thereof to cause such representation,warranty,or certificationto be true and complete in every
respect;
G. The DEVELOPER shall file, or have filed against it, a petition of
bankruptcy, insolvency, or similar law, state or federal, or shall file any petition or answer
seeking, consenting to, or acquiescing in any reorganization,arrangement,composition,
29
readjustment, liquidation, dissolution,or similar relief,and such petition shall not have been
vacated within ninety (90) days; or shall be adjudicated bankrupt or insolvent,under any
present or future statute, law,regulation,under state or federal law, and such judgment or
decree is not vacated or set aside within ninety(90) days;
. H. The DEVELOPER's failure, inability or admission in writing of its inability
to pay its debts as they become due or the DEVELOPER's assignment for the benefit of
creditors;
I. A receiver,trustee, or liquidatorshall be appointedfor the DEVELOPERor
any substantial part of the DEVELOPER's assets or properties,and not be removed within ten
(10) days;
J.DEVELOPER's breach of any other material condition, covenant,
warranty, promise or representation contained in this Agreement not otherwise identified within
this Section;
K. Any substantial or continuous breach by the DEVELOPER of any material
obligation owedby the DEVELOPER imposed by any other agreement with respect to the
financing, of the Project, whether or not the CITY is a party to such agreement after expiration
of all notice and cure periods contained within such document.
10.2 Notice of Default and Opportunitv to Cure.The CITY shall give written notice to
the DEVELOPER of any Event of Default by specifying:(1) the nature of the event or
deficiency giving rise to the default, (2) the action required to cure the deficiency, if any action
to cure is possible, and (3) a date, which shall not be less than the lesser of any time period
provided in this Agreement, or thirty (30) calendar days from the date of the notice, by which
such deficiency must be cured, provided that if the specified deficiency or default cannot
reasonably be cured within the specified time, the DEVELOPER shall have an additional
reasonable period to cure so long as it commences cure within the specified time and
thereafter diligently pursues the cure in good faith. The CITY acknowledges and agrees that
the DEVELOPER shall have the right to cure any defaults hereunder and that notice and cure
rights hereunder shall extend to any and all partners of the. DEVELOPER that are prior
identified in a writing delivered to the CITY in the mannerprovided in this Agreement.
10.3 Remedies Upon an Event of Default.Uponthe happening of an Event of Default
by the DEVELOPER and a failure to cure said Event of Default within the time specified, the
CITY's obligation to disburse any undisbursed Fundsshallterminate. The CITY may also at its
option and without notice institute any action, suit, or other proceeding in law, in equity or
otherwise, which it shall deem necessary or proper for the protection of its interests and may
without limitation proceed with any or all of the following remedies in any order or combination
that the CITY may choose in its sole discretion:
A.
DEVELOPER;
Terminate this Agreement immediately upon written notice to the
30
B. Bring an action in equitable relief seeking specific performance by the
DEVELOPER of the terms and conditions of this Agreement, and/or enjoining, abating or
preventing any violation of said terms and conditions, and/or seeking declaratory relief; and
C. Pursue any other remedy allowed by law or in equity or under this
Agreement.
ARTICLE 11.GENERAL PROVISIONS
Without waiver of limitation, the parties agree that the following general provisions shall
apply in the performance hereof:
11.1 Amendments. No modificationor amendment of any provision of this Agreement
shall be effective unless made in writing and signed by the parties hereto.
11.2 Attorney's Fees. If either party is required to commence any proceeding or legal
action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing
party will be entitled to recover from the other party its reasonable attorney's fees and legal
expenses.
11.3 Binding on All Successors and Assigns. Unless otherwise expressly provided in
this Agreement, all the terms and provisions of this Agreement shall be binding on and inure to
the benefit of the parties hereto, and their respective nominees, heirs, successors, assigns,
and legal representatives.
11.4 Counterparts. This Agreement may be executed in counterparts, each of which
when executed and delivered will be deemed an original, and all of which together will
constitute one instrument. The execution of this Agreement by any party hereto will not
become effective until counterparts hereof have been executed by all parties hereto.
11.5 Disclaimer of Relationship.Nothing contained in this Agreement, nor any act of
the CITY or of the DEVELOPER, or of any other person, shall in and by itself be deemed or
construed by any person to create any relationship of third party beneficiary,or of principal and
agent, of limited or general partnership,or of joint venture.
11.6 Discretionary Governmental Actions. Certain planning, land use, zoning and
other permits and public actions required in connection with the Project including, without
limitation, the approval of this Agreement,the environmental review and analysis under NEPA,
CEQA or any other statute, and other transactions contemplated by this Agreement are
discretionary government actions. Nothing in this Agreement obligates the CITY or any other
governmental entity to grant final approval of any matter described herein. Such actions are
legislative, quasi-judicial, or otherwise discretionary in nature. The CITY cannot take action
with respect to such matters before completing the environmental assessment of the Project
under NEPA, CEQA and any other applicablestatutes. The CITY cannot and does not commit
in advance that it will give final approval to any matter. The CITY shall not be liable, in
contract, law or equity, to the DEVELOPER or any of its executors, administrators,transferees,
successors-in-interest or assigns for any failure of any governmental entity to grant approval
on any matter subject to discretionary approval.
31
11.7 Effective Date. This Agreement shall be effective upon the date first above
written on Page 1, upon the Parties'complete execution following City Council approval.
11.8 Entire Agreement. This Agreement represents the entire and integrated
agreement of the parties with respect to the subject matter ·hereof. This Agreement
.supersedes all prior negotiations,representations or agreements,either written or oral.
11.9 Exhibits. Each exhibit and attachment referenced in this Agreement is, by the
reference, incorporated into and made a part of this Agreement.
11.10 Expenses Incurred Upon Event of Default.The DEVELOPER shall reimburse
the CITY for all reasonable expenses and costs of collection and enforcement, including
reasonable attorney's fees, incurred by the CITY as a result of one or more Events of Default
by the DEVELOPER under this Agreement.
11.11 Governing Law and Venue. Except to the extent preempted by applicable
federal law, the laws of the State of California shall govern all aspects of this Agreement,
including execution,interpretation,performance,and enforcement.Venue for filing any action
to enforce or interpret this Agreementwill be Fresno,California.
11.12 Headings. The headings of the articles,sections,and paragraphs used in this
Agreement are for convenience only and shall not be read or construed to affect the meaning
or construction of any provision.
11.13 Interpretation. This Agreement in its final form is the result of the combined
efforts of the parties. Any ambiguity will not be construed in favor or against any party, but
rather by construing the terms in accordancewith their generallyaccepted meaning.
11.14 No Assignment or Succession.The DEVELOPER shall not sell, lease, transfer,
assign or otherwise dispose of all or any material part of any interest it might hold in the
Property without the prior written consent of the CITY,which consent shall not be
unreasonably withheld or delayed.
11.15 No Third-Party Beneficiary.No contractor, subcontractor, mechanic,
materialman, laborer, vendor, or other person hired or retained by the DEVELOPER shall be,
nor shall any of them be deemed to be, third-party beneficiaries of this Agreement, but each
such person shall be deemed to have agreed (a) that they shall look to the DEVELOPER as
their sole source of recovery if not paid, and (b) except as otherwise agreed to by the CITY
and any such person in writing, they may not enter any claim or bring any such action against
the CITY under any circumstances. Except as provided by law, or as otherwise agreed to in
writing between the CITY and such person, each such personshall be deemed to have waived
in writing all right to seek redressfrom the CITYunder any circumstanceswhatsoever.
11.16 No Waiver. Neither failure nor delay on the part of the CITY in exercising any
right under this Agreement shall operate as a waiver of such right, nor shall any single or
partial exercise of any such right preclude any further exercise thereof or the exercise of any
other right. No waiver of any provision of this Agreement or consent to any departure by the
DEVELOPER therefrom shall be effective unlessthe same shall be in writing, signed on behalf
32
-,,
of the CITY by a duly authorized officer thereof, and the same shall be effective only in the
specific instance for which it is given. No notice to or demand on the DEVELOPER in any
case shall entitle the DEVELOPER to any other or further notices or demands in similar or
other circumstances,or constitute a waiver of any of the CITY's right to take other or further
action in any circumstances without notice or demand.
11.17 Nonreliance. The DEVELOPER hereby acknowledges having obtained such
independent legal or other advice as it has deemed necessary and declares that in no manner
has it relied on the CITY, it agents, employees or attorneys in entering into this Agreement.
11.18 Notice. Any notice to be given to either party under the terms of this Agreement
shall be given by certified United States mail, postage prepaid, return receipt requested, at the
addresses specified below, or at such other addresses as may be specified in writing by the
parties.-
If to the CITY: City of Fresno
Development and Resource Management Department
Housing and Community Development Division
Attn: Manager
2600 Fresno Street, Room 3070
Fresno, CA 93721-3605
If to DEVELOPER: Fulton Court Partners, LLC
Jeff Altimus, Member
49707 Stillmeadow Lane
Oakhurst, CA 93644
11.19 Precedence of Documents. In the event of any conflict between the body of this
Agreement and any exhibit or attachment hereto or document incorporated herein, the terms
and conditions of the body of this Agreement will control.
11.20 Recording of Documents. The DEVELOPER agrees to cooperate with the CITY
and execute any documents required, promptly upon the CITY's request, the Deed of Trust,
and any other documentslinstruments that the CITY requires to be recorded, in the Official
Records of Fresno County, California, consistent with this Agreement.
11.21 Remedies Cumulative. All powers and remedies given by this Agreement shall
be cumulative and in addition to those otherwise provided by law.
11.22 Severability. The invalidity, illegality, or un-enforceability of anyone or more of
the provisions of this Agreement shall not affect the validity, legality, or enforceability of the
remaining provisions hereof or thereof.
1/1
33
IN WITNESS WHEREOF, the parties have executed this Agreement in Fresno,
California,the day and year first above written.
CITY OF FRESNO, a Municipal Corporation
By:~~.
Mark Scott, City anager
(Attach'notary certificate of acknowledgment)
Date:9'-3 tJ -/2-
'QvYbt-llfNrdoet \P
l ~reJ ,uY\ot ~tbL
~~lJ'f~'-\'
r~'u ~~rf5(C~OJ
ClIl./I)?-QUo---Tv
DA~.
APPROVED AS TO FORM:
JAMES SANCHEZ
City Attorney
B~~,Depply C""Attorney
Date:y /S liz/')/2.-
By:-:--::::-:--:-c#~:q..J....6..:<~.:....!.:~__
Jeff AI'us Member
(Attach otary rtificate of acknowledgment)
Date:¢J!'7..--.
FULTON COURT PARTNERS, LLC ,
a California limited liability company
'JW\--,
-x
-\-,
Attachments:
EXHIBIT A:
EXHIBIT B:
EXHIBIT'C:
EXHIBIT D:
EXHIBIT E:--
EXHIBIT F:
EXHIBITG:
EXHIBIT H:
PROPERTY DESCRIF,
~~g~~~T DESCRIPTI~_~__._
ESTIMATED 55-YEAR CASH FLOW STATEMENT
FORM OF CERTIFICATE OF COMPLETION
PROMISSORY NOTE
-DEED OF TRUST •
DECLARATION OF RESTRICTIONS
.-
34 •
CALIFORNIA ALL-PURPOSE
CERTIFICATE OF ACKNOWLEDGMENT
State of California
County of _6..;,-<!-"'S"'f'JD=_
L.before me,----'o<..!.LI..'-'-'=-==-=--=-....,..7.--tc--'=--""-'"'-'=\--l-==-=-=----'
personally appeared -----<'-L--'-'---'--_.......'-="'-'--'--_
who proved to me on the basis of satisfactory evidence to be the person~whose name(&)isl,a'i"e subscribed to
the within instrument and acknowledged to me that he/~e1tltey executed the same in his/b<bE:ir authorized
capacity(i,e§),and that by hislh&/t4eir signatureis)on the instrument the person(.sf,or the entity upon behalf of
which the personjs)acted,executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
~m~L/{~b
Signature ofNotary Public (Notary Seal)
•I
ADDITIONAL OPTIONAL INFORMATION
INSTRUCTIONS FOR COMPLETING THIS FORM
DESCRIPTION OF THE AITACHED DOCUMENT
(Titleor description of attached document)
(Title or description ofattached document continued)
Any acknowledgment completed in California must contain verbiage exactly as
appears above in the notary section or a separate acknowledgment form must be
properly completed and attached /0 that document. The only exception is if a
document is 10be recorded outside of Caiifomia. in such instances, any alternative
acknowledgment verbiage as may be printed on such a document so long as the
verbiagedoes not require the notary to do something that is illegalfor a notary in
California (i.e. certifying the authorized capacity of the signer).Please check the
documentcarefullyfor proper notarialwordingandattach thisform ifrequired.
Number ofPages __Document Date,_
(Additional information)
CAPACIlY CLAIMED BY THE SIGNER
o Individual (5)
o Corporate Officer
(Title)
o Partner(s)
o Attorney-in-Fact
o Trustee(s)
o Other _
• State and County infonnation must be the State and County where the document
signer(s)personally appeared before the notary public for acknowledgrncnt
• Date of notarization must be the date that Ihe signer(s)personally appeared which
must also be the same date the acknowledgment is completed.
•The notary public must print his or her name lIS it appears within his or her
commission followed by a comma and then your title (notary public).
•Print the name(s)of document signer(s)who personalty appear at the time of
notarization.
•Indicate the correct singular or pluml forms by crossing off incorrect forms (i.e.
helshe/~is 1Me-)or circling the correct fonns.Failure to correctly indicate this
information may lead 10 rejection of document recording.
• The notary seal impression must be clear and photographically reproducible.
Impression must not cover text or lines. If seal impression smudges,re-seal if a
sufficient area permits,otherwise complete a different acknowledgment fonn.
•Signature of the notary public must match the signature on file with the office of
the county clerk.
0:.Additional infonnation is not required but could help to ensure this
acknowledgment is not misused or attached to a different document
.:.Indicate title or type of attached document,number ofpages and dote.
.:.Indicate the capacity claimed by the signer. If the claimed capacity is a
corporate officer,indicate the title (i.e.CEO,CFO,Secretary).
•Securely attach this document to the signed document
2008 Version CAPA vll.lO.07 800-873-9865 www.NotaIyClassc:s.com
CALIFORNIA ALL·PURPOSE ACKNOWLEDGMENT
State of California
County of rv-eSnO
On <a '.)..,~~o I ~before me,
"'Ie
personally appeared
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Name(s)of Signer(s)
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@ ERICA CASTANEDA
Commission 1#1837909
~.Notary Public·California ~
Fresno County !:1.....!1l :ocrfl}":x~rts ~a:t2}~1~1
who proved to me on the basis of satisfactory
evidence to be the person{el whose name(s)ishrre
subscribed tothewithin instrument and acknowledged
to me that he/sReltl,ey executed the same in
his!hef/tliefT authorized capacity(ies),and that by
his/hSl'AAGir signature(s)on the instrument the
person(st;or the entity upon behalf of which the
perso~acted,executed the instrument.
I certify under PENALTY OF PERJURY under lhe
laws of the State of California that the foregoing
paragraph is true and correct.
·1
)
1
I
I
I
WITNESS my hand and official seal.
Place Nolary Seal Above Signature of Nolsl)'Public
Signer Is Representing: _
·1
RIGHT THUMBPRINT
OF SIGNER
Though the information below is not required by law,it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Documend:\Um£-1\,rt.t.rnL0+-~~<'b ~s.,0 .~fl.c.!k..M-Pbs I
Document Date:_
Signer(s) Other Than Named Above:---,.....~_
Capacity(ies)Claimed by Signer(s)
Signer's Name:Sign '
D Corporate Officer - Title(s):/.-uCorporate Officer - Title(s):_
D Individual D Individual
D Partner -D Limited D General D Partner -D Limited D General Top ot thumb here
D Attorney in Fact D Attorney in Fact
D Trustee D Trustee
D Guardian or Conserv D Guardian or Conservator
D Other:D Other:_
,
Item #5907~"""'""""'''''''''''''''''~''''''''''''''''''''''''"""'''''''''''''''''''''''''=''"'''"~'''''''=='''''''=''''''''''''''''''''''''''''''''''''~'''''''=~C 2009 Natlonal Notary Association.NationaINolary.org·l-SOD-US NOTARY (1-SOD-676-6827)
EXHIBIT "A"
PROPERTY DESCRIPTION
APN:459-303-18
Legal Description:
Real Property in the City of Fresno, County of Fresno, State of California, described as
follows:.
LOTS 34, 35, 36 AND 37 IN BLOCK 1 OF FORTHCAMP ADDITION,ACCORDING TO
THE MAP THEREOF RECORDED IN BOOK1, PAGE 17 OF PLATS, FRESNO COUNTY
RECORDS.
Page 1 of 1
EXHIBIT "B"
PROJECT DESCRIPTION AND SCHEDULE
The Project will consist of related on- and off-site improvements, and rehabilitation of
ten (10)Very Low and Low-Income HOME Program housing units, in accordance
with the following chart:
HOME FUNDED FIXED UNITS
Percent of Studio One Bedroom Units
Median Income
50%1 1
55%1 7
Total 2 8
All ten (10) of the units will be reserved as Very Low- and Low-Income Affordable
Units for a period of fifty-five (55) years.
HOME Funds will be made available by the CITY for payment of HOME eligible costs
not to exceed the lesser of Six Hundred Ninety Five Thousand Eight Hundred Thirty
Eight dollars and 00/100th ($695,838.00), the aggregate HOME Program per unit cap
(24 C.F.R. 92.250) for the ten (10) HOME-assisted Units as determined by the CITY,
as needed, for HOME eligible project development costs.
PROJECT SCHEDULE
Finance Plan
June 30, 2012
Obtain Buildina Permits
September 15, 2012
Start Construction September 15, 2012
Complete Construction Auaust 15, 2013
Complete Lease Up September 15, 2013
Page 1 of 1
EXHIBIT "C"PROJECT BUDGET
Acquisition Costs:
Purchase Price 189000 110,000
liens
Closing,Title &Recording Costs 8,500
Extension Payment
Other:
SUBTOTAL :!.3.0.Z 50.0 197500 110000
Construction
Basic Construction Contract 481,837
Bond Premium 5,000
Infrastructure Improvements
Hazardous Abate.&Monitoring
Construction Contingency 8,863
SalesTaxes
Other Construction Costs:Appliances 2,638 3,362
Other Construction Costs:
SUBTOTAL 498338 3362
Development
Appraisal 850
Architect/Engineer 8,500
Environmental Assessment 4,650
Geotechnical Study
Boundary &Topographic Survey
Legal 5,000
Developer Fee 75,000
Project Management
Technical Assistance
Other Consultants:
Other:
SUBTOTAL 75000 19 000
Other Development
Real Estate Tax 3,800
Insurance
Relocation 28,000
Bidding Costs
Permits,Fees &Hookups 1,500
ImpaetlMitigation Fees
DevelopmentPeriod Utilities
Construction loan Fees
Construction Interest
Other Loan Fees (State HF, etc.)
L1HTC Fees
Accounting/Au~it
Marketing/leasing Expenses "500.500
Carryin9 Costs at Rent Up - I
Operating Reserves .illllt
Replacement Reserves:
SUBTOTAL . 3380.0 33800
Total Development Costs 1:'~37:066.1 695,838 75,000 1110,000 56,162
EXHIBIT "0"
55-YEAR CASH FLOW STATEMENT
EXHIBIT "0"
ESTIMATED 55-YEAR CASH FLOW STATEMENT
Inflation Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year7 Year 8 Year 9 Year 10 -Year 11
Factor 2014 2015 2016 2017 ~~2020 ~6Qll 2023 2024
INCOME:
Income from Rents 1.50%63,756 64,712 65,683 66,668 67,668 68,683 69,714 70,759 71,821 72,898 73,991
POTENTIAL GROSS REVENUE:63,756 64,712 65,683 66,668 67,668 68,683 69,714 70,759 71,821 72,898 73,991
Vacancy 10%6,376 6,471 6,568 6,667 6,767 6,868 6,971 7,076 7,182 7,290 7,399
NET iNCOME:57,380 58,241 59,115
60,001 .60,901 .61,815 62,742 63,683 64,639 65,608 66,592
OPERATING EXPENSES:
Annual Operating-Expenses 3.50%17,214 17,816 18,440 19,085 19,753 20,445 21,160 21,901 22,668 23,461 24,282
NET OPERATING INCOME:40,166 40,425 40,675 40,916 41,148 41,370 41,582 41,782 41,971'42,147 .42,310
DEBT SERVICE:
Seller Loan ($110,OOO@6.75%for to-yrs)2nd PL
.'"'~151481;,.,'.~",15'j481::>~.j ·15':481)::',:·:,-,,;;'15A81';~i<,~%15i481U,-;+:%~:"15;48t;-;;~~~t4:-·lS.'481);;:;_~';:'15{481~~y~.~tilS148r:~t.~';J~lS;481 Q
Developer Fee $75,000 (4 payments)18,750 18750 18.750 18,750 0 0 0 0 0 0 9
HOME ($695,838@1'10:pmts: Balloon at 55) 1st PL 5,935 6,194 6,444 6,685 16,550 16,550 16,550 16,550 16,550 16,550 16,550
CASH FLOW:0 0 0 0 9,117 9,339 9,551 9,752 9,940 10,116 25,761
Debt Coverage Ratio
Year12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23
Year24 Year 25 Year 26
2025 2026 2027 2028 2029 2030 2031 2032 2033 ~2035 ~2037 2038 2039
.
75,101 76,228 77,371 78,532 79,710 80,905 82,119 83,351 84,601 85,870 87,158
88,466 89,792 91,139 92,508
75,101 76,228 77,371 78,532 79,710 80,905 82,119 83,351 84,601 85,870 87,158 88,466 89,792 91,139 92,506
7,510 7,623 7,737 7,853 7,971 8,091 8,212 8,335 8,460 8,587 8,716 8,847 8,979 9,114 9,251
67,591 68,605 69,634 70,679
71,739 72,815 73,907 75,016 76,141 77,283 78,442 79,619 80,813 82,025 83,256
25,132 26,012 26,922 27,864 28,839 29,849 30,894 31,975 33,094 34,252 35,451 36,692 37,976 39,305 40,681
42,459 42,594 42,712 42,814 42,899
42,966 43,014 43,041 43,047 43,031 42,991
42,927 42,837 42,720 42,575.
Q Q Q Q Q Q
Q Q Q Q
Q Q Q Q Q
Q 0 0 0 0 0 Q Q Q Q
0 0 0 0 0
I 16,550 I 16,550 I 16,5501.16,550 I 16,550 I
16,550 I 16,550 I 16,550 I
16,550 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550
25,910 26,044 26,162 26,265 26,350 26,416 26,464 26,491 26,497 26,481 26,442 26,377 26,287 26,170 26,025
Year 27
2040
93,894
93,894
9,389
84,505
42,105
42,400
Year 28
2041
95,302
95,302
9,530
85,772
43,578
42,194
Year 29
2042
96,732
96,732
9,673
87,059
45,104
41,955
Year 30
2043
98,183
98,183
9,818
88,365
46,682
41,682
Year 31
~
99,656
99,856
9,966
89,690
48,316
41,374
Year 32
2045
101,151
101,151
10,115
91,036
50,007
41,028
Yeilr 33
2046
102,668
102,668
10,267
92,401
51,757
40,644
Year 34
2047
104,208
104,208
10,421
93,787
53,569
40,218
Year 35
2048
105,771
105,771
10,577
95,194
55,444
39,750
Year 36
~
107,358
107,358
10,736
96,622
57,384
39,237
Year 37
2050
108,968
108,968
10,897
98,071
59,393
38,678
Year 38
2051
110,602
110,602
11,060
99,542
61,472
38,071
Year 39
2052
112,261
112,261
11,226
101,035
63,623
37,412
Year 40
2053
113,945
113,945
11,395
102,551
65,850
36,701
Year 41
2054
115,655
115,655
11,565
104,089
68,155
35,934
Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
o 0 0 0 0 0 0 0 0 0 0 0 0 0 0I16,550-1 16,550 I 16,550 I 16,550-1 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I.16,550 I 16,550 I 16,550 I 16,550 I 16,550
25,850 25,644 25,405 25,133 24,824 24,479 24,094 23,668 23,200 22,688 22,128 21,521 20,862 20,151 19,385
.
.,'
Year 42 Year43 Year 44 Year 45 Year 46 Year 47 Year 48 Year 49 Year 50 Year 51 Year 52 Year 53 Year 54 Year 55
2055 2056 ~2058 2059 2060 2061 2062 ~2064 2065 2066 2067 2068
."117,389 119,150 120,937 122,752 124,593 126,462 128,359 130,284 132,238 134,222 136,235 138,279 140,353 142,458
117,389 119,150 120,937 .122,752 124,593 126,462 128,359 130,284 132,238 134,222 136,235 138,279 140,353 142,458
11,739 11,915 12,094 .12,275 12,459 12,646 12,836 13,028 13,224 13,422 13,624 13,828 14,035 14,246
105,650 107,235 108,844 110,476 112,134 113,816 115,523 117,256 119,014 120,800 122,612 124,451 126,318 .128,212
70,540 73,009"75,564 78,209 80,946 83,780 .86,712 89,747 92,888 96,139 99,504 102,986 106,591 110,322
35,110 34,226 33,279 32,267 31,187 30,038 28,811 27,509 26,127 24,661 23,108 21,464 19,727 17,891
Q Q Q Q Q Q Q Q Q Q
Q Q Q Q
0 0 0 0 0 Q 0 0 Q 0 0 Q 0 0
I 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550 I 16,550
18,561 17,676 16,730 15,718 14,637 "13,486 12,261 10,959 9,577 8,111
6,558 4,915 3,177 1,341
•
EXHIBIT "E"
RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO:
Cityof Fresno
City Clerk
2600 Fresno Street,Room 2133
Fresno,CA 93721-3603 City of Fresno
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
CERTIFICATE OF COMPLETION
This Certificate of Completion is recorded at the request and for the benefit of the City of
Fresno and is exempt from the payment of a recording fee pursuant to Government Code
Section 6103,
APN:459-303-18 .
City of Fresno
By:::==::::::==::=::;:====;:::=
Craig Scharton,Assistant Director
Development and Resource
Management Department
Date:_
Page 1 of 3
•
REHABILITATION HOUSING PROJECT
APN:459-303-18
Recitals:
A. By a HOME Investment Partnerships Program ("Program")Agreement dated-====-,:2012 ("HOME Agreement") between the City of Fresno, a California municipal
corporation ("CITY"), and Fulton Court Partners, LLC, a California limited liability company
(hereinafter referred to as "DEVELOPER"), as may be amended from time to time,
DEVELOPER agreed to rehabilitate the ten (10)unit Fulton Court Apartments, reserving all
units for rental by a Very Low and Low-Income household ("Project"), upon the premises
legally described in EXHIBIT "A", attached to the HOME Agreement made a part hereof by
this reference (the "Property"), with the assistance of HOME Funds while meeting the
affordable housing, income targeting and other requirements of 24 CFR 92 according to the
terms and conditions of the HOME Agreement and the Loan Documents and other
document/instruments referenced therein for the ten (10)Affordable Units.
B. The HOME Agreement or a memorandum of it was recorded on =====
as Instrument No.in the Official Records of Fresno County, California.
C.Under the terms of the HOME Agreement, after the DEVELOPER completes
the Project, the DEVELOPER may ask CITY to record a Certificate of Completion.
D. The DEVELOPER has asked CITY to furnish DEVELOPER with a recordable
Certificate of Completion.
E.The CITY's issuance of this Certificate of Completion is conclusive evidence
that the DEVELOPER has completed rehabilitation the Project as set forth in the HOME
Agreement.
NOW THEREFORE:
1. The CITY certifies that the DEVELOPER commenced the Project on
-:~:=':::::::;2.and completed the Project on 20 --and has done so in full compliance
with the HOME Agreement. .
2. This Certificate of Completion is not evidence of the DEVELOPER's
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 work 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 California Civil Code Section 3093.
•
4. Nothing contained herein modifies any provision of the HOME
Agreement.
Page 2 of 3
•
IN WITNESS WHEREOF,CITY has executed this Certificate of Completion as of this:::::======day of , 20 .
CITY OF FRESNO
By:..;::::;:::;:::;:::==;:::::::==::;::==:....-
Craig Scharton,Assistant Director
Development and Resource Management Department
ATTEST:
CITY CLERK
YVONNE SPENCE, CMC
By:~================
Deputy
Date:===================-
FULTON COURT PARTNERS,LLC
a California limited liability company
By:..;;:::;::::;:=:;:::;::::;::=:;::::;::=;::=
(Attach notary certificate of acknowledgment)
Date:===================-
APPROVED AS TO FORM:
JAMES SANCHEZ, CITY ATTORNEY
By:--================--_
Deputy City Attorney
Date:-================-
Page 3 of 3
EXHIBIT "F"
DO NOT DESTROY THIS NOTE: When paid, this note must be surrendered to Borrower for
Cancellation.
PROMISSORY NOTE
Loan Amount: $695,838.00
Fresno, California
Date:-=====:=;"",,2012
For value received, the undersigned, Fulton Court Partners, LLC, a California
limited liability company ("Borrower"), promises to pay to the order of the City of Fresno, a
California municipal corporation, ("Lender"), the sum of Six Hundred Ninety Five Thousand
Eight Hundred Eighty Three dollars and 00/100th ($695,838.00), to the extent that such funds
are loaned to Borrower, with interest on the unpaid principal balance running from the date of
the recorded Certificate of Completion at the rate of 1%annually in accordance with the
HOME Investment Partnerships Agreement dated , 2012, entered into between the
Borrower and Lender, ("Agreement"), with all the principal and interest due and payable
before the earlier of: (i) Borrower's uncured default under the Agreement with respect to the
Project, and (ii) fifty-five (55) years from the date of this Note, ("Maturity Date"), on which date
the unpaid balance of principal with unpaid interest thereon shall be due and payable, along
with attorney's fees and costs of collection, and without relief from valuation and
appraisement laws.
Principal and interest payments shall be due annually beginning one year from the
recordation of the Certificate of Completion, and said payment continues on May 1
51 of each
successive year thereafter until the Maturity Date, upon which all principal and interest shall
be due and payable (prorated amounts to be paid for the first and last year of the Note). Any
failure to make a payment required hereunder within ten (10) days after such payments are
due shall constitute a default under the Agreement with respect to the Project and this Note.
Additionally any failure to timely submit to Lender audited financial statements within thirty
(30) days after such financial statements are due shall constitute a default under the
Agreement with respect to the Project and Note. It shall not be a default hereunder if no
payment was made because of insufficient operating income for any particular year.
All capitalized terms used in this Note, unless otherwise defined, will have the
respective meanings specified in the Agreement. In addition, as used in this Note, the
following terms will have the following meanings:
Business Day means any day other than Saturday, Sunday, or public holiday or the
equivalent for banks generally under the laws of California. Whenever any payment
to be made under this Note is stated to be due on a day other than a Business Day,
that payment may be made on the next succeeding Business Day.
.This Note, and any extensions or renewals hereof, is secured by a Deed of Trust,
Security Agreement and Fixture Filing with Assignment of Rents on real estate in Fresno
County, California, that provides for acceleration upon stated events, dated as of the same
56929\126525v3 Page 1 of 4
date as this Note, and executed in favor of and delivered to the Lender ("Deed of Trust"),
insured as a first (1 5t )position lien on the Property.
Time is of the essence. It will be a default under this Note if Borrower defaults
under the Agreement, any other Loan Document with the Lender,or this Note and such
default continues beyond the notice and cure period as provided in such documents. In the
event of a default by Borrower with respect to any sum payable under this Note and the
failure to cure such default within ten (10) days, the Borrowershall pay a late charge equal to
.the lesser of 2% of any outstanding payment or the maximum amount allowed by law. All
payments collected shall be applied first to payment of any costs, fees or other charges due
under this Note or any other Loan Documents then to the interest and then to principal
balance. On the occurrence of an uncured default or on the occurrence of any other event
that under the terms of the Loan Documentsgive rise to the rightto 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,demand, protest, or notice of any
kind. Lender acknowledges and agrees that it shall send notice of any default hereunder to
the limited partners of Borrower and shall accept any cure offered by such limited partners on
the same basis as it would accept a curefrom Borrower.
The indebtedness evidenced by this Note may, at the option of the Borrower, be
prepaid in whole or in part 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 interestand then to the principal balance.
All Loan 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.
Borrower agrees to pay all costs including,without limitation, reasonable attorney
fees, incurred by the holder of this Note in the successfulenforcement of payment, whether
or not suit is filed, and inclUding,without limitation,all costs, reasonable attorney fees, and
expenses incurred by the holder of this Note in connection with any bankruptcy,
reorganization, arrangement, or other similar proceedings involving the Borrower that in any
way affects the exercise by the holder of this Note of its rights and remedies under this Note.
All costs incurred by the holder of this Note in any action undertaken to obtain relief from the
stay of bankruptcy statutes are specifically included in those costs and expenses to be paid
by Borrower.
Any notice, demand, or request relating to any matter set forth herein shall be in
writing and shall be given as provided inthe Agreement.
No delay or omission of Lender in exercising any right or power arising in
connection with any default will be construed as a waiver or as 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 Lender's rights under
this Note, but rather will be deemed to have been made in pursuance of this Note and not in
modification. No waiver of any default will be construedto be a waiver of or acquiescence in
or consent to any preceding or subsequentdefault.
56929\126525v3 Page 2 of 4
The.Deed of Trust provides as follows:
Except as provided herein or in the Agreement, if the TrustorlGrantor shall sell,
conveyor alienate said property, or any part thereof, or any interest therein, or shall
be divested of his title or any interest therein in any manner or way, whether
voluntarily or involuntarily, without the written consent of the Beneficiary being first
had and obtained, Beneficiary shall have the right, at its option, except as prohibited
by law, to declare any indebtedness or obligations secured hereby, irrespective of
the maturity date specified in any Note evidencing the same, immediately due and
p~b~..
Lender may transfer this Note and deliver to the transferee all or any part of the
Property then held by it as security under this Note, and 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 anyone 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 and Lender agree 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, altered, modified, or amended except as Lender and Borrower may consent to in a
writing duly signed by Borrower or Lender or its authorized agents.
This Note shall be nonrecourse to Borrower and all its constituent members and may
be prepaid at any time without penalty. Neither Borrower nor any of its members shall have
any personal liability for repayment of the Loan. The sole recourse of the Lender under the
Loan Documents for repayment of the Loan shall be the exercise of its rights against the
Property pursuant to the Deed of Trust and Lender shall have no right to seek or recover any
deficiency amount from Borrower or any partner of Borrower.
III
11/
11/
56929\126525v3 Page 3 of 4
IN WITNESS WHEREOF, Borrower has caused this Promissory Note to be executed
as of the date and year first above written.
FULTON COURT PARTNERS, LLC
a California limited liability company
By:====================-_
Name:(Attach notary certificate of acknowledgment)
Title:=======================-
Date:-==========
,
56929\126525v3 Page 4 of 4
EXHIBIT uG"
RECORDING REQUESTED BY
Chicago Title Company
AND WHEN RECORDED MAIL TO:
City of Fresno
Housing and Community Dev.Division
2600 Fresno Street,Room 3070
Fresno CA 93721-3605
(SPACE ABOVE TIllS LINE FOR RECORDER'S USE)
File No.:;;~;::;;::====
A.P.N.:459-303-18
DEED OF TRUST AND ASSIGNMENT OF RENTS
THIS DEED OF TRUST,made this --======:;-,2012,by
TRUSTOR:Fulton Court Partners.LLC.a California limited Iiabilitv company
whose address is 49707 Stillmeadow Lane,Oakhurst.CA 93644
TRUSTEE:First American Title Company.a California corporation
and BENEFICIARY:City of Fresno.a California municipal corporation
Witnesseth:That Trustor IRREVOCABLY GRANTS,TRANSFERS AND ASSIGNS to TRUSTEE IN TRUST,
WITH POWER OF SALE, that property in the City of Fresno, Fresno County, State of California,described as:
See Exhibit "A"attached hereto.
TOGETHER WITH the rents, issues, and profits thereof, SUBJECT, HOWEVER, to the right, power and
authority given to and conferred upon Beneficiary by paragraph 10 of the provisions,incorporated by
reference, to collect and apply such rents,.issues and profits.
FOR THE PURPOSE OF SECURING:
1.Performance of each agreement of Trustor, incorporated by reference or contained herein, including without
limitation the HOME Agreement entered between Fulton Court Partners, LLC, a California limited liability
company and Beneficiary dated ,2012.
2.Payment of the indebtedness evidenced by a Promissory Note of even date herewith, and any extension or
renewal thereof, in the principal sum of $695,838 to City of Fresno executed by Trustor in favor of Beneficiary
or order.
3.Payment of such further sums as the then record Owner of said property hereafter may borrow from
Beneficiary,when evidenced by another Note (or Notes) reciting it is so secured.
TO PROTECT THE SECURITY OF THIS DEED OF TRUST,TRUSTOR AGREES:
(1) To keep said property in good condition and repair; not to remove or demolish any building thereon; to
complete or restore promptly and in good and workmanlike manner any building which may be constructed,
damaged or destroyed thereon, and to pay when due all claims for labor performed and materials furnished
therefore; to comply with all laws affecting said property or requiring any alterations or improvements to be
made thereon; not to commit or permit waste thereof; not to commit,suffer or permit any act upon said
property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the
Page 1 of4
character or use of said property may be reasonably necessary,the specific enumerations herein not
excluding the general.
(2) To provide,maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to
Beneficiary.The amount collected under any fire or other insurance policy may be applied by Beneficiary
upon indebtedness secured hereby and in such order as Beneficiary may determine,or at option of
Beneficiary the entire amount so collected or any part thereof may be released to Trustor.Such application or
release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant
to such notice.
(3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or
powers of Beneficiary or Trustee; and to pay all costs and expenses,including cost of evidence of title and
attorneys'fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may
appear,and in any suit brought by Beneficiary to foreclose this Deed of Trust.
(4) To pay: at least ten days before delinquency,all taxes and assessments affecting said property,including
assessments on appurtenant water stock; when due, all encumbrances,charges and liens, with interest, on
said property or any part thereof,which appear to be prior or superior hereto; all costs, fees and expenses of
this Trust.
Should Trustor fail to make any payment or to do any act as herein provided,then Beneficiary or Trustee, but
without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from
any obligation hereof,may:make or do the same in such manner and to such extent as 'either may deem
necessary to protect the security hereof,Beneficiary or Trustee being authorized to enter upon said property
for such purposes;appear in and defend any action or proceeding purporting to affect the security hereof or
the rights or powers of Beneficiary or Trustee; pay, purchase,contest or compromise any encumbrance,
charge or lien which in the judgment of either appears to be prior or superior hereto;and, in exercising any
such powers,pay necessary expenses,employ counsel and pay his reasonable fees.
(5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee,with interest
from date of expenditure at the rate called for in the note secured hereby, or at the amount allowed by law at
date of expenditure,whichever is greater, and to pay for any statement provided for by law in effect at the date
hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the
maximum allowed by law at the time when said statement is demanded.
(6)That any award of damages in connection with any condemnation for public use of or injury to said
property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release
such moneys received by him in this same manner and with the same effect as above provided for disposition
of proceeds of fire or other insurance.
(7)That by accepting payment of any sum secured hereby after its due date,Beneficiary does not waive his
right either to require prompt payment when due of all other sums so secured or to declare default for failure
so to pay.
(8)That at any time or from time to time,without liability therefore and without notice, upon written request of
Beneficiary and presentation of this Deed of Trust and said note for endorsement,and without affecting the
personal liability of any person for payment of the indebtedness secured hereby,Trustee may:reconvey any
part of said property;consent to the making of any map or plat thereof;join in granting any easement thereon;
or join in any extension agreement or any agreement subordinating the lien or charge hereof.
(9)That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon
surrender of this Deed of Trust and said Note to Trustee for cancellation and retention and upon payment of
its fees,Trustee shall reconvey,without warranty, the property then held hereunder.The recitals in such
reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof.The Grantee is
such reconveyance may be described as "the person or persons legally entitled thereto."Five years after
issuance of such full reconveyance,Trustee may destroy said Note and this Deed of Trust (unless directed in
such request to retain them.)
(10)That as additional security,Trustor hereby gives to and confers upon Beneficiary the right,power and
authority,during the continuance of these Trusts, to collect the rents,issues and profits of said property,
reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured
hereby or in performance of any agreement hereunder,to collect and retain such rents,issues and profits as
Page 2 of4
they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in
person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any
security for the indebtedness hereby secured, enter upon and take possession of said property or any part
thereof, in his own name sue for or otherwise collect such rents, issues and profits, including those past due
and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable
attorneys' fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine.
The entering upon and taking possession of said property, the collection of such rents, issues and profits and
the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or
invalidate any act pursuant to such notice.
(11) That upon default by Trustor in payment of any indebtedness secured hereby or in perfonmance of any
agreement hereunder after expiration of all applicable cure periods, Beneficiary may declare all sums secured
hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for
sale and of written notice of default and of election to cause to be sold said property, which notice Trustee
shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed of Trust, said Note(s)
and all documents evidencing expenditures secured hereby.
After the lapse of such time as may then be required by law following the recordation of said notice of default,
and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell .
said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels,
and in such order as it may determine, at public auction to the highest bidder for cash in iawful money of the •
United States, payable at time of sale.
Trustee may postpone sale of all or any portion of said property by public announcement at such time and
place of sale, and from time to time thereafter may postpone such sale by public announcement at the time
fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property
so sold, but without any covenant or warranty, express or implied. The recitals in such deed of matters or
facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or
Beneficiary as hereinafter defined, may purchase at such sale.
After deducting all reasonable costs, fees and expenses of Trustee and of this Trust, including cost of
evidence of title in connection with sale, Trustee shall apply the proceeds of sale.to payment of: all sums
expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect
at the date hereof; all other sums then secured hereby; and the remainder, if any, to the persons or persons
legally entitled thereto,
(12) Beneficiary, or any successor in ownership of any indebtedness secured hereby may, from time to lime,
by instrument in writing, substitute a successor or successors to any Trustee named herein or acting
hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office
of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper
substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee
predecessor, succeed to all its title, estate, rights, powers and duties, must contain the name of the original
Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded and the
name and address of the new Trustee.
(13)That this Deed of trust applies to, inures to the benefit of, and binds all parties hereto, their heirs,
legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the
owner and holder, including pledgees, of the Note secured hereby, whether or not named as Beneficiary
herein. In this Deed of Trust, whenever the context so required, the masculine gender includes the feminine
and/or neuter, and the singular number includes the plural.
(14) That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a
public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any
other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be party
unless brought by Trustee.
(15) The Loan is a nonrecourse obligation of Trustor. Neither Trustor nor any of its general and limited
partners shall have any personal liability for repayment of the Loan. The sale recourse of the Lender under
the Loan Documents for repayment of the Loan shall be the exercise of its rights against the Property.
(16) The withdrawal, removal and/or replacement of (where applicable) a member of Trustor pursuant to the
terms of articles of organization and/or operating agreement due to a violation by a member of the terms
Page3 of4
thereof,or a voluntary withdrawal by a member, and any transfer of interests in the same, shall not constitute
a default under any of the Loan Documents, and any such actions shall not accelerate the maturity of the
Loan,
(17)Beneficiary agrees that the lien of this Deed of Trust shall be subordinate to any extended low-income
housing commitment (as such term is defined in Section 42(h)(6)(B) of the Internal Revenue Code) (the
"Extended Use Agreement')recorded against the Property, provided that such Extended Use Agreement, by
its tenns,must tenninate upon foreclosure under this Deed of Trust or upon a transfer of the Property by
instrument in lieu of foreclosure,in accordance with Section 42(h)(6)(E)of the Internal Revenue Code,subject
to the limitations upon evictions,terminations of tenancies and increases in gross rents of tenants of low-
income units as provided in that Section,.
(18) Prior to declaring or taking any remedy permitted under Loan Documents,(whereapplicable)Trustor's
members shall have an additional period of not less than thirty (30) days to cure such alleged default.
Notwithstanding the foregoing, in the case of a default that cannot with reasonable diligence be remedied or
cured within thirty (30) days,Trustor's members shall have such additional time as reasonably necessary to
remedy or cure such default, but in no event more than ninety (90) days from the expiration of the initial thirty
(30) day period above, and if the Trustor's members reasonably believe that in order to cure such default,
Trustor's members must remove Trustor's managing member(s) in order to cure such default,Trustor's
members shall have and additional thirty (30) days following the effective date of such removal to cure such
default.
(19)Beneficiary shall give the Trustor's members notice of any default under the Loan Documents at the
following address:
In accordance with Section 2924b, Civil Code, request is hereby made that a copy of any Notice of Default
and a copy of any Notice of Sale be mailed to Trustor at Trustor's address hereinbefore set forth, or if none
shown, to Trustor at property address,
NOTICE: A COPY OF ANY NOTICE OF DEFAULT AND OF ANY NOTICE OF SALE WILL BE SENT ONLY
TO THE ADDRESS CONTAINED IN THIS RECORDED REQUEST. IF YOUR ADDRESS CHANGES, A
NEW REQUEST MUST BE RECORDED.
Except as provided herein or in the HOME Agreement, if the Trustor/Grantor shall sell,conveyor alienate said
property,or any part thereof, or any interest therein, or shall be divested of his title or any interest therein in
any manner or way,whether voluntarily or involuntariiy, without the written consent of the Beneficiary being
first had and obtained,Beneficiary shall have the right, at its option, except as prohibited by law, to declare
any indebtedness or obligations secured hereby. irrespective of the maturity date specified in any Note
evidencing the same,immediately due and payable.
Signature of Trustor(s):
Its:
ALL SIGNATURES MUST BE NOTARIZED
BY::~~~
•Page 4 of 4
EXHIBIT "An TO DEED OF TRUST
PROPERTY DESCRIPTION
APN:459-303-18
Legal Description:
Real Property in the City of Fresno, County of Fresno, State of California,described as
follows:
LOTS 34, 35, 36 AND 37 IN BLOCK 1 OF FORTHCAMP ADDITION,ACCORDING TO
THE MAP THEREOF RECORDED IN BOOK1, PAGE 17 OF PLATS, FRESNO COUNTY
RECORDS.
Page 1 of 1
EXHIBIT H
RECORDING REQUESTED BY AND for the benefit
of the City of Fresno and is exempt from the
payment of a recording fee in accordance with
GovernmentCode Sections 6103 and 27383.
AND WHEN RECORDEDMAILTO:
CITY OF FRESNO
Downtown and Community Revitalization Dept.
Housingand Community DevelopmentDivision
2600 Fresno Street, Rm.3070
Fresno, CA 93721-3605
Title Order NoO':.=::==--Escrow No.===
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
DECLARATION OF RESTRICTIONS
THIS DECLARATIONOF RESTRICTIONS,("Declaration"),is executed as of this.==-
of , 2012 by Fulton Court Partners,LLC, a California limited liability company
("Declarant") in favor of the City of Fresno, acting by and through its Development and
Resource Management Department - Housing and Community Development Division,
("CITY").
WHEREAS, Declarant is the owner of the real estate in the county of Fresno, state of
California, consisting of APN: 459-303-18, which is more particularly described in Exhibit
"A", attached hereto and made a part hereof (the "Property");and
WHEREAS, Pursuant to a certain HOME Investment Partnerships Program
Agreement dated .-2012 incorporated herein ("HOME Agreement") and
instruments referenced therein, Declarant agrees to utilize, and CITY agrees to provide,
certain HOME Program Funds from the United States Department of Housing and Urban
Development (HUD), to Declarant and Declarant agrees to preserve the Project Units for
Very Low and Low-Income households (collectively "Affordable Units"), subject to the terms
and conditions set forth in the HOMEAgreement; and
WHEREAS, the HOME Program regulations promulgated by HUD, including without
limitation 24 CFR Section 92.252,and the HOME Agreement impose certain affordability
requirements upon Declarant-owned property,which affordability restrictions shall be
enforceable on the ten (10) Affordable Units for a fifty-five (55)year period; and
WHEREAS, these.restrictions are intended to bind Declarant and all purchasers and
their successors.
NOW THEREFORE, Declarant declares that the Property is held and will be held,
transferred, encumbered, used, sold, conveyed and occupied subject to the covenants,
restrictions, and limitations set forth in this Declaration,all of which are declared and agreed
to be in furtherance of the proposed Project. All of the restrictions,covenants and
limitations will run with the land and will be binding on all parties having or acquiring any
56929\126532v3 Page 1 of 5
right, title or interest in the Property or any part thereof,will inure to the benefit of the City,
and will be enforceable by it. Any purchaser under a contract of sale covering any right, title
or interest in any part of 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 Declaration commencing on
the date the final Project Budget and tenant information is entered into HUD's Integrated
Disbursement and Information System (lOIS), recorded as an administrative amendment to
this Agreement and continuing for fifty-fiv~(55) years thereafter ("Affordability Period").
1.Declarations.Declarant hereby declares that the Affordable Units are and
shall be subject to the covenants and restrictions hereinafter set forth, all of which are
declared to be in furtherance of the Project and the HOME Agreement, and are established
and agreed upon for the purpose of enhancing and protecting the value of the Property and
in consideration for CITY entering into the HOME Agreement with Declarant.
2.Restrictions.The following covenants and restrictions on the use and
enjoyment of 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 CITY, and shall run with the Property and be binding on any future owner's of
the Property and inure to the benefit of and be enforceable by the CITY.These covenants
and restrictions are as follows:
a.Declarant for itself and its successor(s)on title covenants and agrees
that from the date of recordation of the CITY's Certificate of Completion, until the expiration
of the Affordability Period it shall cause the ten (10)Project Units to be used as Affordable
Units.Declarant further agrees to file a recordable document setting forth the Project
Completion Date(s) and the Affordability Period when determined by the CITY.Unless
otherwise provided in the HOME Agreement,the term Affordable Project Units shall include,
without limitation,compliance with the followinq requirements:
(i)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 Declarant or any person
claiming under the Declarant,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 Project and/or Property.
(ii) Principal Residence. Each of the Affordable Units within the
Project upon the Property shall be leased only to eligible Very Low- and Low-Income
households,who shall occupy the Affordable Units as their a principal residence. The
foregoing requirement that the Property tenants occupy the Affordable Units as their
principal residence does not apply to persons, other than natural persons, who acquire the
Property or portion thereof by foreclosure or deed in lieu of foreclosure; or HUD qualified
entities that acquire the Property or portion thereof, with the consent of the CITY.
(iii) Income Requirements.Two (2) of the ten (10)Affordable Units
may be leased only to eligible households whose annual household income at the time of
initial occupancy is not greater than fifty percent (50%) of the most 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 rent consistent with the HOME
56929\126532v3 Page 2 of 5
Program regulations, and eight (8) of the ten (10) Affordable Units may be leased only to
eligible households whose annual household income at the time of initial occupancy is not
greater than fifty-five percent (55%) of the most 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 rent consistent with the HOME Program regulations.
3. Enforcement of Restrictions. Without waiver or limitation, the CITY shall be
entitled to injunctive or other equitable relief against any violation or attempted violation of
any Covenant and Restriction.'
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 Covenant and Restrictions. The acceptance of a deed of conveyance to the
Property shall constitute an agreement that the Covenant and Restrictions, as may be
amended or supplemented from time to time, are accepted and ratified by such future
owners, tenant or occupant, and such Covenant and Restriction 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 Covenant and Restriction was recited and stipulated at
length in each and every deed,conveyance,mortgage or lease thereof.
Notwithstanding the foregoing, upon foreclosure by a lender or other transfer
in lieu of foreclosure, or assignment of an FHA-insured mortgage to HUD, the Affordability
Period shall be terminated if the foreclosure or other transfer in lieu of foreclosure or
assignment recognizes any contractual or legal rights of public agencies, nonprofit
sponsors, or others to take actions that would avoid the termination of low-income
affordability. However, the requirements with respect to Affordable Rental Units shall be
revived according to their original terms, if during the original Affordability Period, the owner
of record before the foreclosure or other transfer, or any entity that includes the former
owner or those with whom the former owner has or had formerly, family or business ties,
obtains an ownership interest in the Project or the Property,the Affordability Period shall be
revived according to its original terms.
5. Benefit. This Declaration shall run with and bind the Property for a term
commencing on the date this Declaration is recorded in the Office of the Recorder 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 the CITY or any other person entitled to enforce
this Declaration 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.
6. Costs and Attorney's Fees. In any proceeding arising because of failure of
Declarant or any future owner of the Property to comply with the Covenant and Restrictions
required by this Declaration, as may be amended from time to time, the CITY shall be
entitled to recover its costs and reasonable attorney's fees incurred in connection with the
successful enforcement of such default or failure.
7. Waiver. Neither Declarant nor any future owner of the Property may exempt
itself from liability for failure to comply with the Covenant and RestriCtions required in this
Declaration; provided however, that upon the transfer of the Property, the transferring
owner shall be released from liability hereunder, upon CITY's written consent of such
56929\126532v3 Page 3 of 5
transfer, which consent shall not be unreasonablywithheld,conditioned or delayed.
8. Severability. The invalidity of the Covenant and Restrictions or any other
covenant, restriction, condition,limitation,or other provision of this Declaration shall not
impair or affect in any manner the validity,enforceability, or effect of the rest of this
Declaration and each shall be enforceableto the greatest extent permitted by law.
9. Pronouns. Any reference to the masculine,feminine,or neuter gender herein
shall, unless the context 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 Declaration are inserted herein for
ease and convenience of reference only and shall not be used as an aid in interpreting or
construing this Declaration or any provision hereof.
11.Amendment. No amendment or modification of this Declaration shall be
permitted without the prior written consent of the CITY and Declarant.
12. Recordation. Declarant acknowledges that this Declaration will be filed of
record in the Office of the Recorder of county of Fresno, State of California.
13. Capitalized Terms. All capitalized terms used in this Declaration,unless
otherwise defined herein, shall have the meanings assigned to such terms in the
Agreement.
14. Headings. The headings of the articles, sections, and paragraphs used in this
Agreement are for convenience only and shall not be read or construed to affect the
meaning or construction of any provision.
15. Neither Declarant nor any of its members shall have any personal liability for
the obligations under this Declaration. The sole recourse of the City shall be the exercise of
its rights against the Property pursuant to the Deed of Trust and Lender shall have no right
to seek or recover any deficiency amountfrom Declarantor any member of Declarant.
11/
11/
11/
56929\126532v3 Page4 of5
r--.:.'<'':,-,,-~.-'--j........~-
IN WITNESS WHEREOF,Declarant has executed this Declaration of Restrictions on
the date first written above.
DECLARANT:
FULTON COURT PARTNERS, LLC
a California limited liability company
By:-===================--Name:(Attach notary certificate of acknowledgment)
Title:=============-
Date:===========-:-
56929\126532v3 Page 5 of 5
EXHIBIT "A"TO DECLARATION OF RESTRICTIONS
PROPERTY DESCRIPTION
APN:459-303-18
Legal Description:
Real Property in the City of Fresno, County of Fresno, State of California,described as
follows:
LOTS 34, 35, 36 AND 37 IN BLOCK 1 OF FORTHCAMP ADDITION,ACCORDING TO
THE MAP THEREOF RECORDED IN BOOK1, PAGE 17 OF PLATS, FRESNO COUNTY
RECORDS.
•
Page 1 of 1
l\
June 14,2012
FROM: CRAIG SCHARTON,Assistant Di~
Development and ResourceManagement
AGENDA ITEM NO ..1:~OflYl.J;;21
COUNCIL MEETING~/;'_!L~P(~i
APPROVEDBY
DEPARTMENT DIRE~
CI1~
CLAUDIA CAZARES, DivisionMana 'LAMN~..,.-.-'(lA _
Housing and CommunityDevelopment -0
By:CORRINA NUNEZ, Project Manag r
Housingand Community Develop nt
RECOMMENDATIONS
SUBJECT: ADOPT FINDING OF CATEGORICAL EXEMPTION PURSUANT TO PUBLIC RESOURCE
CODE SECTIONS 21080(b)(9) AND 21084 OF THE CALIFORNIA.ENVIRONMENTAL
QUALITY ACT GUIDELINES, AND APPROVE A $733,025 HOME INVESTMENT
.PARTNERSHIPS PROGRAM AGREEMENT WITH FULTON COURT PARTNERS, LLC,
FOR ACQUISITION AND REHABILITATION OF THE FULTON COURT APARTMENTS,A
10-UNIT AFFORDABLE MULTI-FAMILY HOUSING BUNGALOW COURT LOCATED AT
142 N. FULTON AVENUE IN THE LOWELL NEIGHBORHOOD
Presented toCity Council
Date (,2.'1JI "l..
Disposition
Staff recommends the City Council:
1)Adopt Finding of Categorical Exemption Pursuant to Public Resource Code Sections 21080(b)(9)
and 21084 of the California Environmental Quality Act (CEQA) guidelines (please see Exhibit "G"
- CEQA Exemption Statement);and.
2) Approve a $733,025 HOME Investment Partnerships (HOME) Program Agreement (please see
Exhibit "B" - HOME Program Agreement),SUbject to the City Attorney's prior approval as to form,
with Fulton Court Partners, LLC (Developer),for acquisition and rehabilitation of the Fulton Court
Apartments,a 10-unit affordable multi-family housing bungalow court located at 142 N. Fulton
Avenue (APN:459-303-18),in the Lowell neighborhood (please see Exhibit "C" -Project Location
Map).
EXECUTIVE SUMMARY
Presented to City Council
Date "I'{.1"2-
Disoosition ~~U:I-fl'L.!.J!:c'--1=
~'Z-II
On April 15, 2011, the City received a HOME funding proposal from the Developer in response to the City's
HOME Program Notice of FundingAvailability (NOFA),published March, 2011. The Developer is proposingto .
perform moderate rehabilitation to the interior and exterior of the buildings, and grounds of the Fulton Court
Apartments. If the HOME Agreement is approved as recommended, HOME Program funds in the amount
of $733,025 will be provided to the Fulton Court Partners, LLC, in the form of a 1% percent interest loan
with principal and interest payable from net operating income. The project cost is estimated al $999,187, of
which $733,025 is proposed 10 be funded with HOME Programfunds (73% of Ihe acquisition and rehabilitation
cost). Of the $266,162 needed 10 complete project financing; $100,000 represents a deferred Developer fee,
$56,162 is from Developer equity, and $110,000 is aloanfrom the seller.
REPORT TO COUNCIL
HOME PROGRAM AGREEMENT FOR ACQUISITION AND REHABILITATION OFFULTONCOURT
June 14,2012
Page 2 0'3
BACKGROUND
Fulton Court was built in 1942 in a Spanish Revival style and includes ten units within four building
structures that are arranged in a double "L" Plan around an open courtyard (please see Exhibit "E" - Site
Plan). Fulton Court's tree-canopied courtyard fosters a sense of community with the doors and windows
opening onto a shared open space. A low rock wall rests at the entrance to the courtyard separating the
complex from North Fulton Street. Fulton Court sits on a .39-acre (17,000 sq. ft.) parcel and is comprised
of two studio units and eight one-bedroom units, which are in need of rehabilitation (please see Exhibit
"D" - Existing Conditions).
on April 15, 2011, the Developer submitted a HOME Program application requesting HOME Program
funds for acquisition and rehabilitation of Fulton Court. The Developer is proposing to perform moderate
rehabilitation to the interior and exterior of the structures, garages, backyard areas, and courtyard, and
install new appliances. The overall goal of the rehabilitation project is to preserve as much of the unique
architecture of the bungalow court while improving the condition of the City's affordable housing stock
(please see Exhibit "F" - Proposed Rehabilitation).
The project cost is estimated at $999,187,of which $733,025 is proposed to be funded by HOME Program
funds. A summary of the project's budget is shown in the attached Exhibit "A" - Project Cost Information
and Budget. If the HOME Program funding is approved as recommended, the HOME funds will be
provided to Fulton Court Partners, LLC, in the form of a 1% interest loan, with the principal and interest
payable from net property income.
The estimated completion date of the rehabilitation activities is scheduled for June 1,2013.Once the
rehabilitation is completed, the unitswill be affordable to households eaming50%to 55% of the area median
income, or below, for a period of 55 years.The rent for a one-bedroom unit will rangefrom $499to $643 per
month and the rent for a studio unit will range from $474 to $607 per month.The studio units have 481
square feet of living space and the one-bedroom units have 646 to 659 square feet of living space. The
cost per square foot is estimated at $162 ($999,187/6,160 sq. ft. of living space).
Since the apartment complex is currently 50% occupied, the budget includes a line item for relocation
costs to re-house the existing tenants within the complex. The Developer proposes to rehabilitate the
vacant units first. Once the vacant units are rehabilitated and ready for occupancy, the tenants in the
occupied units will be relocated to the newly rehabilitated units. The current on-site property manager will
continue to serve in this capacity after rehabilitation and will be responsible for maintaining the day-to-day
operations of the complex to ensure on-going compliance with the HOMEProgram requirements.
The Development team consists of Jeff Altimus and Mike Strausser. Both have over twenty-five years of
real estate. and construction contracting experience.Jeff Altimus is the founder and owner of Altimus
Construction,Inc. and Mike Strausser is the founder and owner of Strausser Construction,Inc.Strausser
Construction will serve as the general contractoron this rehabilitation project.The Fulton Court rehabilitation
project will be the developmentteam's second affordable housing project.The team's first affordable housing
project was the rehabilitation of the College Apartments on North College Avenue in the Fulton/Lowell
neighborhood.Both team members have completed many private and publicly-funded projects,such as
rehabilitation of the Clovis Post Office,shopping centers,and the Catholic Charities office (located acrossthe
l'REPORT TO COUNCIL
HOME PROGRAM AGREEMENT FOR ACQUISITION AND REHABILITATION OFFULTONCOURT
June 14,2012
Page 30'3
street from Fulton Court). It was while working on the Catholic Charities project that the development team
decided to submit a proposal to rehabilitate the Fulton Court apartments.
Once completed, the Fulton Court rehabilitation project will assist the City in meeting its affordable housing
goals as identified in the Housing Element of the 2025 General Plan and the 2010-2014 Consolidated Plan to
HUD, and is part of a larger effort by the City to revitalize the Lowellneighborhood.
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
The Housing and Community Development Commission recommended approval of the items on April 11,
2012.
ENVIRONMENTAL COMPLIANCE
In anticipation of funding approval and the subsequent commencement of the rehabilitation activities,a
National Environmental Policy Act assessment was completed on January 3, 2012, and resulted in the
completion of a Statutory Worksheet with consultation/mitigated requirements.Also on January 3, 2012,
a CEQA assessment was completed and resulted in a Categorical Exemption pursuant to Public
Resource Code Sections 21080(b)(9)and 21084 (please see Exhibit "G" - CEQA Exemption Statement).
FISCAL IMPACT
HOME Program funds for the proposed rehabilitation project are available in the Development and Resource
Management Department's Fiscal Year 2012 Budget.
Attachments:
Exhibit A - .Project Cost Information and BUdget
Exhibit B - HOME Program Agreement
Exhibit C - Project Location Map
Exhibit D -EXisting Conditions
Exhibit E - Site Plan
Exhibit F - Proposed Rehabilitation
Exhibit G - CEQA Exemption Statement
K:\HOUSINGIPROCEDURES MANUAL\CHAPTER 21 HCDC &COUNCIL\CounciI\5TAFF REPORTS\2012HCDC 6-14-12 FultonCourtProject
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