HomeMy WebLinkAboutFresno 1101 Parkway LP State & Local Fiscal Recovery Funds (Part of the American Rescue Plan) Agreement 1/6/23Recorded at the Request of
and When Recorded Return to :
City of Fresno
City Clerk's Office
2600 Fresno Street, Room 2133
Fresno , CA 93721-3603
1111 WJ~..,~~"~ ""'~.,~~,,~~r~~u.,,·111~~~1wi 11111
2023-0002673
FRESNO Counly Recorder
Paul Diclos, CPA
Wednesday, Jan 11, 2023 10:05:47 AM
Titles: 1 Pages: 77
Fees: 0 .00
CA SB2 Fee: 0.00
Taxes: 0 .00
Total: 0.001CITY OF FRESNO
(SPACE ABOVE THIS LINE FOR RECORDER'S USE ONLY)
This SLFRF 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
CITY OF FRESNO
By:_-+--l~~___:~~:......=...___
Geo g a n ne A White, City Manager
Date : I f UJ fcJ:2, I
CITY OF FRESNO
STATE AND LOCAL FISCAL RECOVERY FUNDS
(PART OF THE AMERICAN RESCUE PLAN)
AGREEMENT
by and between
CITY OF FRESNO,
a municipal corporation
and
Fresno 1101 Parkway, LP,
a California limited partnership
regarding
Sun Lodge Apartments
1101 N. Parkway Drive, Fresno, CA 93728
(APN: 449-270-41)
CLN8/10/22/RiskB/16/22
TABLE OF CONTENTS
RECITALS ............................................................................................................................ 1
ARTICLE 1. DEFINITIONS ................................................................................................ .. 2
ARTICLE 2. TERMS OF THE LOAN ................................................................................... 6
ARTICLE 3. REPRESENTATION AND WARRANTIES OF DEVELOPER. ....................... .. 7
ARTICLE 4. WARRANTIES AND COVENANTS BY DEVELOPER. ................................... 8
ARTICLE 5. PROPERTY MAINTENANCE ........................................................................ 13
ARTICLE 6. DISBURSEMENT OF SLFRF FUNDS ........................................................... 17
ARTICLE 7. REHABILITATION AND CONSTRUCTION OF THE PROJECT ................... 19
ARTICLE 8. OPERATIONS OF THE PROJECT ............................................................... 25
ARTICLE 9. INSURANCE AND INDEMNITY AND BONDS .............................................. 27
ARTICLE 10. DEFAULT AND REMEDIES ........................................................................ 32
ARTICLE 11. GENERAL PROVISIONS ............................................................................ 34
CLNB/10/22/RiskB/16/22
STATE ANO LOCAL FISCAL RECOVERY FUNDS
(PART OF THE AMERICAN RESCUE PLAN)
AGREEMENT
/ This Sta~ Local Fiscal Recovery Funds Agreement (Agreement) is entered into
this -¥2-day of D~ 20 '2j:;by and between the City of Fresno , a municipa l corporation ,
acting through its Planning and Development Department -Housing and Commun ity
Development Division (CITY), and FRESNO 110 1 PARKWAY, LP , a Californ ia limited
partnership (hereinafter referred to as DEVELOPER).
RECITALS
A. WHEREAS, the CITY has received State and Local Fiscal Recovery Funds
(SLFRF) from the U.S. Department of the Treasury under the American Rescue Plan Act
(Pub. L. 117-2) (Act) and is subject to any constraints set forth therein including but not limited
to, the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Final Rule (31 CFR
Part 35).
B. WHEREAS, the City has elected to use a portion of the SLFRF allocation to
support the COVID-19 Public Health and Economic Response to address impact on
households by using funds to support affordable housing development, an eligible use of
funds under the Act.
C. WHEREAS, the Project, as defined below, serves the intent of the SLFRF
Program by serving households that meet the qualifications of the U.S Department of
Housing and Urban Development, HOME Investment Partnerships Program .
D. WHEREAS, to advance the supply of affordable rental housing within the City
of Fresno, the CITY desires, among other things, to encourage investment in the affordable
rental housing market.
E. WHEREAS, the DEVELOPER desires to act as the owner/developer
exercising effective project control, as to the conversion/rehabilitation of the former 98-unit
Days Inn Motel into a 64-unit apartment complex (Project) of which one unit will be reserved
for an on-site property manager and 11 units will be SLFRF-assisted "floating" units
preserved as Very Low-and Low-Income rental housing, as defined by the HOME Program,
and related on-site and off-site improvements as more particularly described in EXHIBIT "B"
-Project Description and Schedule, incorporated herein.
F. WHEREAS, the Project will be converted/rehabilitated upon SLFRF Program-
eligible Property (Property) owned by the DEVELOPER, as more specifically described in
Exhibit "A".
G. WHEREAS, to further its goal to increase the supply of Affordable Housing
within the City of Fresno, the CITY desires to assist the DEVELOPER by providing a Two
Million Five Hundred Thousand Dollar and 00/100 ($2,500,000.00) residual receipts SLFRF
Program Loan to the Project (Loan), at 3% interest for a period of 55 years for eligible SLFRF
Project Property eligible soft and hard construction costs, upon the terms and conditions in
this Agreement, as further identified in EXHIBIT "C" -Budget, to be secured by the underlying
Property and the Affordable Housing covenants attached as EXHIBIT "D" -Exemplar
Declaration of Restriction, and Note, Exemplar Note attached as EXHIBIT "F" -Promissory
Note loan, upon the terms and conditions in this Agreement.
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H. WHEREAS, the Housing Authority of the City of Fresno, a project partner,
completed an environmental review of the Sun Lodge Project pursuant to the National
Environmental Policy Act (NEPA) guidelines and received Authorization to Use Grant Funds
on September 17, 2021. An amendment to the NEPA was completed on July 21, 2021 , for
the additional federal HOME Program funding to the Project.
I. WHEREAS, 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 Very
Low-to Low-Income Housing available at an affordable cost to Very Low-to Low-Income
households, as defined hereunder, (v) planning and administrative expenses incurred in
pursuit hereof are necessary for the production, improvement, or preservation of Very Low-
to Low-Income Housing, and (vi) will comply with any and all owner participation rules and
criteria applicable thereto.
J. WHEREAS, the CITY and DEVELOPER have determined that the Project's
SLFRF-Assisted Units constitute routine programmatic/grantee lender activities utilizing
available and allocated program/grantee funding, outside the reach of the California
Constitution Article XXXIV and enabling legislation.
K. WHEREAS , the parties acknowledge and agree that the obligations and
liabilities of the DEVELOPER hereunder shall be joint and several unless and except to any
extent expressly provided otherwise.
L. WHEREAS, on June 28, 2021, the Housing Authority for the City of Fresno,
California's Board reviewed and approved the development of the Project and Application
for funding.
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 acknowledge, 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 Acquisition means vesting of the Property in fee title to the DEVELOPER.
1.2 ADA means the Americans with Disabilities Act of 1990, as most recently
amended.
1.3 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 Housing
Units proposed for construction and rehabilitation on the eligible Property, as hereinafter
defined.
1.4 Affordability Period means the minimum period of 55 years commencing from
the date the CITY records a Certification of Completion.
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1.5 Affordab le Housing means all the units (excluding a manager unit) in the
Project required to meet the affordability requirements of the SLFRF .
1.6 Budget means the Budget for the development of the Project, as may be
amended upon the approval of the CITY's Housing and Community Development Division
Manager, provided any increase in SLFRF hereunder requires City Council Approval,
attached hereto as EXHIBIT "C".
1.7 Certificate of Completion means that certificate issued, in the form attached as
EXHIBIT "E" (Exemplar Certificate of Completion), to the DEVELOPER by the CITY
evidencing completion of the Project and a release of construction related covenants for the
purposes of the Agreement.
1.8 CFR means the Code of Federal Regulations.
1.9 Commencement of Constr ucti on means the time the DEVELOPER or the
DEVELOPER's construction contractor begins substantial physical 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 take place in accordance with the Project
Schedule.
1.10 Comp letion Date means the date the City issues a recorded Certificate of
Completion for the Project. The Completion of the Project is identified in EXHIBIT "B".
1.11 Debt Service means payments made in a calendar year pursuant to the
financing obtained for the acquisition, rehabilitation, and construction, operation and/or
ownership of the Project, but excluding payments made pursuant to the Note.
1.12 Dec laration of Restrict ions means the Declaration of Restrictions in the form
attached hereto as EXHIBIT "D", which contains the affordability covenants and requirements
of this Agreement which shall run with the land and which the DEVELOPER shall record or
cause to be recorded against the Property no later than the date within 30 days of the
effective date of this Agreement.
1.13 Deed of Trust means that standard form Deed of Trust (including the security
agreement) given by the DEVELOPER as Truster, to the CITY as beneficiary, and recorded
against the Property to ensure the Note, together with the Deed of Trust in a substantially
similar form and attached as EXHIBIT "G" and approved as to form by the City Attorney, as
well as any amendments to, modification of and restatements of said Deed of Trust, which
Deed of Trust shall be subordinated to Project lenders per the Budget attached as EXHIBIT
"C". The terms of any such Deed of Trust are hereby incorporated into this Agreement by
this reference.
1.14 Eligible Costs means the SLFRF eligible conversion/rehabilitation costs funded
by the Loan, consistent with the Project Budget attached as EXHIBIT "C", allowable under
SLFRF regulations, however, that costs incurred in connection with any activity that is
determined to be ineligible under the SLFRF or the CITY shall not constitute Eligible Costs.
1.15 Event of Default shall have the meaning assigned to such term under Section
10.1 hereunder.
1.16 Family has the same meaning given that term in 24 CFR 5.403.
1.17 Federal SLFRF Funds (also referred to in this Agreement as "SLFRF Funds"
means the federal SLFRF monies consisting of the Loan, in an amount not to exceed the
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sum of Two Million Five Hundred Thousand Dollars and 00/100 ($2,500,000.00) to be used
for eligible Project construction costs.
1.18 Funding Sources means the CITY's SLFRF Fund, HOME Funds, conventional
construction loan, State of California HomeKey Program funds for acquisition and closing
costs, Housing Relinquished Fund Corporation loan, accrued interest on soft loans, Low
Income Housing Tax Credit Equity, and any other funds that may become available to the
Project.
1.19 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 petroleum byproducts, 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.
1.20 Househol d means persons occupying the SLFRF-Assisted Units within the
Project.
1.21 HUD means the United States Department of Housing and Urban
Development.
1.22 Loan means the Project Loan of SLFRF Funds provided under the Coronavirus
State Fiscal Recovery Fund and the Coronavirus Local Fiscal Recovery Fund established
under the American Rescue Plan Act of 2021, as amended, in the total amount not to exceed
Two Million Five Hundred Thousand Dollars and 00/100 ($2,500,000 .00), made available by
the CITY to the Project pursuant to this Agreement, as more specifically described in the
Budget and in the Promissory Note attached as EXHIBIT "F". The Loan shall be payable in
accordance with the terms of the Note, shall be secured by a deed of trust on each parcel
constituting the Property, and shall be subject to the Deed of Trust attached as EXHIBIT "G".
1.23 Loan Docume nt s are collectively this Agreement, Promissory Note -EXHIBIT
"F", Deed of Trust -EXHIBIT "G", and Declaration of Restrictions -EXHIBIT "D", attached
hereto 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.
1.24 Low-Income Househol d means households at or below 185% of the federal
poverty guidelines for household size.
1.25 Note means that certain Two Million Five Hundred Thousand Dollars and
00/100 ($2,500,000.00), SLFRF Loan Note as determined by the CITY, given by the
DEVELOPER as promiser, in favor of the CITY as promisee, evidencing the Loan and
performance of the affordability and other covenants and restrictions set forth in this
Agreement, secured by the Deed of Trust as no worse than 5th position lien upon the
Property, naming the CITY as beneficiary and provided to the CITY, no later than the date of
the Project funding hereunder, an exemplar of which is attached hereto as EXHIBIT "F", and
incorporated herein, as well as any amendments to, modifications of and restatements of
said Note consented to by the CITY.
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1.26 Operating Expenses means actual, reasonable and customary (for comparable
quality, construction of rental housing in Fresno County) costs, fees and expenses directly
incurred, paid and attributable to the operation, maintenance and management of the
completed Project in a calendar year, including, without limitation; painting, cleaning, repairs,
alterations, landscaping, utilities, refuse removal, certifications, permits and licenses, sewer
charges, real and personal property taxes, assessments, insurance, security, advertising and
promotion, janitorial services, cleaning and building supplies, purchasing, 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, repayment of any completion of operating loans including any and all
deferred contractor's fees per the Budget, made to the DEVELOPER, its successors or
assigns, and other actual operating costs and capital costs which are incurred and paid by
the DEVELOPER, but which are not paid from reserve accounts.
1.27 Project Schedule means the schedule for commencement and completion of
the Project included in EXHIBIT "B".
1.28 Project Units means the rehabilitation of 64 rental units (63 affordable rental
units and 1 on-site manager's unit) of which 11 shall be preserved as Affordable SLFRF-
assisted Units.
1.29 Property means the former Days Inn Motel structure located at 1101 N.
Parkway Drive, Fresno, CA 93728 (APN: 449-270-41) as more specifically described in the
EXHIBIT "A" -Property Description.
1.30 Rent means the total monthly payment a tenant pays for an Affordable SLFRF
Unit including the following: use and occupancy of the Unit and land and associated facilities,
including parking, provided by the DEVELOPER (other than parking services acquired by
tenants on an optional basis), 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 tenants (including garbage collection,
sewer, water, common area electricity, but not telephone or internet 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 Senior Financing means the financing for the Project set forth on the Budget
and Finance Plan which shall be senior to the SLFRF Loan.
1.32 Senior Lender means lenders providing the Senior Financing for the Affordable
Project.
1.33 Unit or Affordable Units means the 11 SLFRF-assisted Units to be constructed
or rehabilitated upon the Property and preserved as Affordable Housing Units for the duration
of the 55-year Affordability Period.
1.34 U .S . Department of Treasury means the United States Department of Treasury.
ARTICLE 2. TERMS OF THE LOAN
2.1 Loan of SLFRF Funds. The CITY agrees to provide a loan of SLFRF Funds to
the DEVELOPER, in an amount not to exceed Two Million Five Hundred Thousand Dollars
and 00/100 ($2,500,000.00), all under the terms and conditions provided in this Agreement.
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The SLFRF Funds shall be used for payment of eligible pre-development, soft and hard
construction costs.
2.2 Loan Documents . The DEVELOPER shall execute and deliver the Loan
Documents including the Promissory Note to the CITY, and notarized Deed of Trust to First
American Title Company for recordation against the Property, as provided for in this
Agreement.
2.3 Term of Agreement. This Agreement is effective upon the date of full execution
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 55 year Affordability Period, this
Agreement will expire. 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, without default,
the CITY agrees to record a Notice of Cancellation regarding this Agreement upon the written
request of the DEVELOPER.
2.4 Loan Repayment and Maturity. The Loan will accrue interest commencing on
the date provided for in the Promissory Note and shall be due and payable in accordance
with the Promissory Note and in full not later than the Maturity date provided in the
Promissory Note.
2.5 Incorporation of Documents. If applicable, the DEVELOPER's SLFRF
application, the CITY Council approved Minutes, approving this Agreement, the Loan
Documents, the SLFRF regulations 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 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 the Act, as such may be amended from time to time.
2.7 Subordination. This Agreement, Declaration of Restrictions, and Deed of Trust
may be subordinated to certain approved financing (in each case, a "Senior Lender"), to no
worse than 5th position, but only on condition that all of the following are satisfied: (a) All of
the proceeds of the proposed Senior Loan, less any transaction costs, must be used to
provide construction financing for the Project consistent with an approved financing plan; (b)
the subordination agreement must provide the CITY with adequate rights to cure any defaults
by the DEVELOPER including providing the CITY or its successor with copies of any notices
of default; (c) upon a determination by the City Manager that the conditions in this Section
have been satisfied, the City Manager or his/her designee will be authorized to execute the
approved subordination agreement, inter-creditor agreements, standstill agreements, and/or
other documents as may be reasonably requested by the Lender to evidence subordination
to the Project financing, without the necessity of any further action or approval provided that
such agreements contain written provisions that are no more onerous and which are
consistent with the customary standard requirements imposed by the financing source(s), on
subordinate cash flow obligations under their then existing senior financing policies, and
further provided that the City Attorney approves such document(s) as to form.
ARTICLE 3. REPRESENTATIONS AND WARRANTIES OF DEVELOPER
3.1 Existence and Qualification . The DEVELOPER represents and warrants to the
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CITY as of the date hereof, that the DEVELOPER is a duly organized California limited
partnership 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 the
SLFRF 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, is 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 DEVELOPER or on 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 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; (b) governing
documents and instruments of the DEVELOPER; or (c) any mortgage, indenture, security
agreement, contract, undertaking, or other agreement or instrument to 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 complete the Project under this Agreement.
3.5 No Violation of Law. The DEVELOPER represents and warrants to the CITY as
of the date hereof that, to the best of the DEVELOPER's knowledge, this Agreement and the
operation of the Project as contemplated by the DEVELOPER, do not violate any existing
federal, State, or local laws of regulations.
3.6 No Litigation Material to Project. The DEVELOPER represents and warrants
to the CITY as of the date hereof, except as disclosed to, and approved by the CITY in writing,
there is no action, proceeding, or investigation now pending, or any basis therefor known or
believed to exist by the DEVELOPER that questions the validity of this Agreement, or of any
action to be taken under this Agreement, that would, if adversely determined, materially or
substantially impair the DEVELOPER's ability to perform and observe its obligations under
this Agreement, or that would either directly or indirectly have an adverse effect or impair the
completion of the Project.
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3. 7 Assurance of Governmental Approvals and Licenses. The DEVELOPER
represents and warrants to the CITY, 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, and local governmental reviews, consents, authorizations, approvals, and licenses
presently required by law to be obtained by the DEVELOPER for the Project as of the date
hereof.
ARTICLE 4. WARRANTIES AND COVENANTS OF THE DEVELOPER
The DEVELOPER, for itself and its development team covenants and warrants that:
4.1 Accessibility . The DEVELOPER covenants and agrees with the CITY that it
shall comply with 24 CFR Part 8, which implements Section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794), including, without limitation, the construction of the Project so that it
meets the applicable accessibility requirements, including, but not limited to, the following:
A. At least 5% of the dwelling units, or at least four of the Units, whichever
is greater, must be constructed to be accessible for persons with mobility disabilities .
An additional 2% of the dwelling units, or at least two units, whichever is greater, must
be accessible for persons with hearing or visual disabilities. These units must be
constructed in accordance with the Uniform Federal Accessibility Standards
(U.F.A.S.) or a standard that is equivalent or stricter.
B. The design and construction requirements of the Fair Housing Act (Title
VIII of the Civil Rights Act of 1968, as amended}, including the following seven
requirements of the Fair Housing Accessibility Guidelines:
i. Provide at least one accessible building entrance on an
accessible route.
ii. Construct accessible and usable public and common use areas.
iii. Construct all doors to be accessible and usable by persons in
wheelchairs.
iv. Provide an accessible route into and through the covered
dwelling unit.
v. Provide light switches, electrical outlets, thermostats and other
environmental controls in accessible locations.
vi. Construct reinforced bathroom walls for later installation of grab
bars around toilets, tubs, shower stalls and shower seats, where
such facilities are provided.
vii. Provide usable kitchens and bathrooms such that an individual
who uses a wheelchair can maneuver about the space .
C. Title Ill of the Americans with Disability Act of 1990 (ADA) as it relates
to the required accessibility of public and common use area of the Project.
D. The design and construction requirements as required by the CITY's
Universal Design Ordinance pursuant to Fresno Municipal Code 11-110, including,
but not limited to the following requirements:
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i. No step accessible entryway;
ii. All interior doorways and passageways at least 32 inches wide;
iii. One (1) downstairs "flex room" and accessible bathroom with
reinforcements for grab bars;
iv. Six square feet of accessible kitchen counter space; and
v. Hallways at least 42 inches wide.
4.2 Affirmative Marketing . The DEVELOPER warrants, covenants and agrees with
the CITY that it shall comply with all affirmative marketing requirements, including without
limitation, those set out at 24 CFR 92.350 and 92.351, in order to provide information and
otherwise attract eligible persons from all racial, ethnic and gender groups in the housing
market in the rental of the Project Units. The DEVELOPER shall maintain records of actions
taken to affirmatively market units constructed in the future, and to assess the results of these
actions.
4.3 Ava i lability of SLFRF Funds . The DEVELOPER understands and agrees that
the availability of SLFRF Funds is subject to the control of the Department of the Treasury,
or other federal agencies, and should said Funds be encumbered, withdrawn or otherwise
made unavailable to the CITY, whether earned by or promised to the DEVELOPER, and/or
should the CITY in any fiscal year hereunder fail to allocate said Funds, the CITY shall not
provide said Funds unless and until they are made available for payment to the CITY by the
Department of the Treasury and the CITY receives and allocates said Funds. No other funds
owned or controlled by the CITY shall be obligated under this Agreement.
4.4 Compliance with Agreement. The DEVELOPER warrants, covenants and
agrees that, in accordance with the requirements of the Act, upon any uncured default by the
DEVELOPER within the meaning of Article 10.1 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 otherwise available to the CITY.
4 .5 Conflict of Interest. The DEVELOPER warrants, covenants and agrees that it
shall comply with the Conflict-of-Interest requirements including , without limitation, that no
officer, employee, agent, or consultant of the DEVELOPER may occupy an Affordable Unit.
The DEVELOPER understands and acknowledges that no employee, agent, consultant,
officer or elected official or appointed official of the CITY, who exercises 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.
4.6 Construction Standards. The DEVELOPER shall cause construction of the
proposed Project Units assisted under this Agreement to be performed in compliance with
all applicable local codes, ordinances, and zoning requirements in effect at the time of
issuance of CITY building permits.
4. 7 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,
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however, that, on expiration of this Agreement such covenants and restrictions shall expire,
provided that such agreements contain written provisions that are no more onerous and
which are consistent with the customary standard requirements imposed by the financing
source(s), on subordinate cash flow obligations under their then existing senior financing
policies, and further provided that City Attorney approves such document(s) as to form .
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) enhancing and increasing the enjoyment and ownership of the proposed Project
by certain Very Low-to Low-Income Households, and (b) making possible the
obtaining of advantageous financing for the conversion/rehabilitation.
B. The DEVELOPER covenants and agrees with the CITY that after
issuance of a recorded Certification of Completion for the Project until the expiration
of the Affordability Period it shall cause 11 Affordable Units to be rented as Affordable
Housing for Very Low-to 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 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.
4.8 Displace ment of Persons . The DEVELOPER covenants and agrees with the
CITY that pursuant to 24 C.F.R. 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 Project located at 1101 N. Parkway
Drive, Fresno, CA 93728 is currently occupied with tenants. The Parties agree that
Developer shall be solely responsible for relocation of any/all tenants as a result of this
Project, as set forth in Section 7.17.
4.9 Initial and Annual Income Certification and Reporting. The DEVELOPER
covenants and agrees with the CITY that it shall comply with the procedures for annual
income determination at 24 CFR 92.203. The DEVELOPER, shall obtain, complete and
maintain on file, immediately prior to initial occupancy, and annually thereafter, income
certifications from the Project Unit Household members. 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
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the verification process: (1) obtain a pay stub for the three (3) most recent pay periods; (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; (4) obtain
income tax return for the most recent three years ; or (5) if the applicant is unemployed, obtain
another form of independent verification. Copies of Household income certification and
verification must be available for review and approval by the CITY . The DEVELOPER further
warrants, covenants and agrees that it will cooperate with the CITY in the CITY's income
certification/affordability monitoring activities.
4.10 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 amendment thereto , and Environmental Protection Agency (EPA)
Section 402 (c)(3) of the Toxic Substances Control Act (TSCA) to address lead-based
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.
4.11 Mi nori ty Outreach A cti vi ti es. 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 requirement that the DEVELOPER comply
with the CITY's minority outreach program .
4.12 Oth e r Laws and Re g ulations . 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 and require all its
contractors and subcontractors on the Project to comply with, all other federal laws and
regulations that apply to the SLFRF , including , without limitation , requirements of the Act
(Pub.L. 117-2), CSLFRF Final Rule (31 CFR Part 35), 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 land
acquisition and construction costs of the Project.
8. The Project is not located in a tract identified by the Federal Emergency
Management Agency as having special flood requirements .
C. The property standards at 24 CFR 92.251.
D . The Project "Labor" requirements, as applicable, of 24 C.F.R. 92.354
including Davis Bacon prevailing wage requirements (40 U.S.C. 276a -276a-7), as
supplemented by Department of Labor regulations (29 CFR Part 5).
E. 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 regards to the construction and management of the
proposed Project.
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F. 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 (E.O.) 11246, "Equal Employment Opportunity", as amended by E.O.
11375, (amending E.O . 11246 Relating to Equal Employment Opportunity), and as
supplemented by regulations at 41 CFR chapter 60, "Office of Federal Contract
Compliance Programs, Equal Employment Opportunity, Department of Labor".
G. 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").
H. The provisions of the Clean Air Act (42 U.S.C. 7401 et seq.) and the
Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), as amended.
I. The provisions of the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352).
J. The provision of E.O.s 12549 and 12689, "Debarment and Suspension,"
as set forth at 24 CFR part 24 .
K. 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.
L. Title 8 of the Civil Rights Act of 1968 PL. 90-284.
M. E.O. 11063 on Equal Opportunity and Housing.
N . Section 3 of the Housing and Urban Development Act of 1968.
0. The Housing and Community Development Act of 1974.
P. Clean Water Requirements 33 U.S.C. 1251.
Q. 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 C.F.R. Part 1630, 41
C.F.R. and Part 60 et seq.
R. Recipients of SLFRF Funds shall comply, to the extent required by the
Act and the SLFRF, with 2 CFR Part 200, Office of Management and Budget's (0MB)
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (commonly called the 'Uniform Guidance').
S. Violence Against Women Act (VAWA), 24 CFR 92.359 and 24 CFR
92 .504(c)(3)(v)(F), including but not limited to notice requirements, obligations under
emergency transfer plan, bifurcation of lease requirements, imposition of
requirements for the duration of the period of affordability, and inclusion of VAWA
lease addendum requirements.
T. DEVELOPER shall comply with broadband infrastructure requirements
for new housing and rehabilitation projects as set forth in 24 CRF 92.251.
4.13 Faith Based Activities . The DEVELOPER warrants, covenants and agrees with
the CITY that it shall not engage in any prohibited activities described in 24 CFR 92.257 .
4.14 Reporting Requ irements . The DEVELOPER warrants, covenants and agrees
with the CITY that it shall submit performance reports to the CITY as detailed in Section 7.18.
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Furthermore, the DEVELOPER agrees to provide, at the sole cost of the DEVELOPER, an
annual audited Financial Statement and residual receipts calculation for the Project
expenses and ongoing financial transactions which occur as a result of this Agreement as
detailed in Section 5.6. The DEVELOPER agrees to account for the expenditure of SLFRF
Funds using generally accepted accounting principles, which financial documentation shall
be made available to the CITY and HUD upon their respective written request(s). Recipients
of SLFRF Funds shall comply, to the extent required by the Act and the SLFRF, with 2 CFR
Part 200, Office of Management and Budget's (0MB) Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (commonly called the "Uniform
Guidance").
4.15 Housing Affordability. The DEVELOPER covenants and agrees with the CITY
that eleven (11) of the Project Units will be affordable to Very Low-to Low-Income
households and other requirements during the Affordability Period. The Project Units, at a
minimum, shall 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 185% of the Federal Poverty Guideline for Household size and at an affordable
rent consistent with SLFRF Program regulations, for the Affordability Period except upon
foreclosure or other transfer in lieu of foreclosure following default under a Deed of Trust.
However, if at any time following a transfer by foreclosure or transfer in lieu of foreclosure,
but still during the Affordability Period, the owner of record prior to the foreclosure or transfer
in lieu of foreclosure, or any newly formed entity that includes such owner of record those
whom such owner of record has or had 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 SLFRF Funds disbursed to the DEVELOPER by
the CITY.
4.16 Terminated Projects . The DEVELOPER understands and agrees that, if the
Project is terminated before completion, either voluntarily or otherwise, such constitutes an
ineligible activity, and the CITY will not be required to provide any further SLFRF assistance
funding to the Project Units.
ARTICLE 5. PROPERTY MAINTENANCE
The DEVELOPER covenants and agrees to the following, for the entire term of the
Agreement.
5.1 Adequate Repair and Mai ntenance . The DEVELOPER during its time on title
shall cause the maintenance to the Project and Property to be in compliance with all
applicable codes, laws, and ordinances. The CITY reserves the right to require the
DEVELOPER to change the property management company for the Property if it is
determined through annual property monitoring that the property management company is
not performing satisfactorily.
5.2 Affordable Rental Housing . The DEVELOPER covenants and agrees that the
Project shall constitute 64 Project Units with 11 Affordable Units for rent and preserved as
"floating" Very Low-to Low-Income Rental Household as provided at 24 C.F.R . 92.252 during
the entire Affordability Period. This covenant shall remain in effect and run with and restrict
the land during the entirety of the Affordability Period. In the event the DEVELOPER fails to
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comply with the time period in which the Affordable Units constitute Affordable Housing, the
CITY shall without waiver or limitation, be entitled to injunctive relief, as the DEVELOPER
acknowledges that damages are not 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, regulation, 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 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 eligible Property for such violation . If a
violation is discovered, the DEVELOPER shall pay for the reasonable cost of the
independent consultant.
Additionally, the DEVELOPER agrees:
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 remain solely 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 Project site, 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 prompt written 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 the eligible Property or the surrounding real estate
or the migration thereof from or to other property;
(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, demand, 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 of
14
release of any hazardous or toxic chemicals, materials, substance, or waste 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 related remedial work of any kind or nature.
5.4 Compl ian ce with La ws. The DEVELOPER shall 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 prevailing wage requirements. The
DEVELOPER acknowledges that the use of SLFRF Funds subjects the Project to extensive
federal regulation and covenants and agrees that it shall comply with, conform to, and obey
(and take steps as are required of the DEVELOPER to enable the CITY to comply with,
conform to and obey) all federal statues, regulations, rules and policies applicable to the
Project.
In the absence of existing applicable State or local code requirements and ordinances,
at a minimum, DEVELOPER shall comply with all inspectable items and inspectable areas
specified by HUD based on the HUD physical inspection procedures (24 CFR 92.2, Uniform
Physical Condition Standards (UPCS)) prescribed by HUD pursuant to 24 CFR 5.705. UPCS
means uniform national standards established by HUD pursuant to 24 CFR 5.703 for housing
that is decent, safe, sanitary, and in good repair. Standards are established for inspectable
items for each of the following areas: site, building exterior, building systems, dwelling units,
and common areas, but do not require the use of any scoring, item weight, or level of
criticality.
5.5 Existence, Qualifica ti on, 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 . Annually, within 180 days following: 1) the
end of fiscal year(s) in which the SLFRF 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, the DEVELOPER, at its sole cost and expense
shall submit to the CITY:
A. Audited annual financial statements with notes that are current, signed,
and prepared according to generally accepted accounting principles consistently
applied (except as otherwise disclosed therein).
B. Audited Financial Statements with the management notes covering the
income and expenses, and the financial transactions for the Project during the prior
fiscal year.
5. 7 Inspection and Audit of Books, Records and Documents . The DEVELOPER
shall account for all SLFRF Funds disbursed for the 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 or all matters covered in this Agreement 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
15
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 SLFRF Funds and to keep all invoices,
receipts and other documents related to expenditures financed with SLFRF Funds for
not less than six years after the expiration or termination of the Agreement. Books
and 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 survive the 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 in connection with
any interim or final audit relating to 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 shall,
at all reasonable times and with 72 hours' written notice, have access and the right to inspect
the Property until completion of the Project and expiration of the applicable Affordability
Period, subject to the rights of 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 additional mortgage, pledge, lien, charge, or other
security interest of any kind on the eligible Property, other than those related to the Project's
rehabilitation and construction loans in relation to the Project, consistent with the attached
Budget, without the prior written consent of the CITY.
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
any persons on account of race, religion, sex, family status, age, handicap, or place of
national origin in its performance of this Agreement and the completion of the Project.
5.11 Owne rsh ip. Except as required in pursuit hereof, the DEVELOPER shall not
sell, lease, transfer, assign or otherwise dispose (Transfer) all or any material part of any
interest it might hold in the Property or the Project without the prior written consent of the
CITY, which consent shall not be unreasonably withheld or delayed. "Transfer" shall exclude
the leasing of any single Unit in the Project.
A. The DEVELOPER shall request CITY's written approval of the granting
of the security interests in the Property described in Section 5.9 above.
B. The DEVELOPER anticipates syndicating the Low-Income Housing Tax
Credits allocated to the Project which will require the transfer of the limited partnership
interests. The CITY hereby approves the initial Transfer of the limited partner interest
16
to affiliates of the limited partner and the CITY hereby approves any subsequent
transfers of limited partner interest to affiliates of the limited partner, provided that in
each instance the CITY is given prior written notice.
5.12 Payment of Liabi liti es . 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 Defau lt. 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 SLFRF FUNDS
Without waiver of limitation, the parties agree as follows, regarding SLFRF Funds:
6 .1 Loan Commitments and Fina ncing 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 contained in
EXHIBIT "C", the CITY shall accept the Finance Plan. If the Finance Plan is not consistent
with the Budget, then within 30 days after receiving the Finance Plan, the CITY, through its
Planning and Development 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 30 day time period shall be deemed an approval
of the Finance Plan.
6.2 F inance Plan Co ntent. The Finance Plan shall contain all Project pre-
construction and post-construction, and 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 construction 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 Budget.
6.3 Use of SLFRF Funds. The DEVELOPER warrants, covenants and agrees that
it shall request SLFRF Funds only for reimbursement rehabilitation costs incurred as
identified in the attached Budget, attached hereto as EXHIBIT "C", including costs allowable
under the SLFRF, aggregating not more than Two Million Five Hundred Thousand Dollars
and 00/100 ($2,500,000.00). The CITY's obligations shall in no event exceed the SLFRF
amount specified in this Agreement. Funds must be used to cover costs incurred by the
recipient between March 3 , 2021, and December 31 , 2024, and funds must be expended by
December 31, 2026. The recipient may use funds for only the projected cost of the Loan.
A. If any such Funds shall be determined to have been requested and/or
used by the DEVELOPER for costs other than for eligible rehabilitation 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 appeal such determination .
17
B. In the event SLFRF Funds are requested to reimburse Eligible Costs
which subsequently lose eligibility as Eligible Costs, the DEVELOPER shall
immediately return such SLFRF to the CITY.
C. The CITY will disburse SLFRF Funds to the DEVELOPER through
proper invoicing for eligible construction costs of the Affordable Units as provided in
this Article 6.
6.4 Conditions Precedent to Disbursement. The CITY shall not be obligated to
make or authorize any disbursements of SLFRF Funds unless the following conditions are
satisfied:
A. Prior to execution of this Agreement by the CITY, DEVELOPER has
permitted CITY staff to conduct a risk assessment, as required under the Uniform
Guidance (2 CFR 200.332(b)). Failure to allow City staff to conduct this risk
assessment may result in the City terminating this Agreement in accordance with
Section 4.4. Additionally, the GRANTEE's failure to be certified by City staff at the
end of the risk assessment as having adequate internal controls to manage the
funding provided in this agreement may result in the City terminating this Agreement
in accordance with Section 4.4.
B. There exists no Event of Default as provided in Article 10, nor any act,
failure, omission, or condition that with the passage of time or the giving of notice or
both would constitute an Event of Default.
C. The DEVELOPER has received and delivered to the CITY firm
commitments of, or Agreements for, sufficient funds to finance the Project.
D. The CITY has approved the requested reimbursement of eligible Project
construction costs.
E. The DEVELOPER has obtained insurance coverage and delivered to
the CITY evidence of insurance as required in Article 9.
F. The DEVELOPER is current with its compliance of reporting
requirements set forth in this Agreement.
G. The DEVELOPER has provided the CITY with a written request for
SLFRF Funds (provided by the CITY), for reimbursement of eligible Project
construction costs, and detailing such Eligible Costs applicable to the request.
H. The CITY has received certification required by Section 6.6 of this
Agreement.
I. The CITY has received, and continues to the have the right to disburse,
SLFRF Funds.
6.5 Requests for Reimbursement of SLFRF Funds. The DEVELOPER shall
request that the CITY reimburse funds for eligible rehabilitation cost using the CITY's
Request for Disbursement of Funds form. The DEVELOPER shall only request a maximum
of Two Million Five Hundred Thousand Dollars and 00/100 ($2,500,000) in SLFRF assistance
for the Affordable Units. All requests should provide in detail such Eligible Costs applicable
to the request. All requests for SLFRF reimbursement shall be accompanied with the
Certification required by Section 6.6 of this Agreement.
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6.6 DEVELOPER Certification. The DEVELOPER shall submit to the CITY a
written certification that, as of the date of the Request for Reimbursement (Certification):
A. The representations and warranties contained in or incorporated by
reference in this Agreement continue to be true, complete and accurate in material
respects.
B. The DEVELOPER has carried out all of its obligations and is in
compliance with all the 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 Request for Reimbursement; and
C. The DEVELOPER has not committed or suffered an act, event,
occurrence, or circumstance that constitutes an Event of Default or that with the
passage of time or giving of notice or both would constitute an Event of Default; and
D. The disbursement of funds shall be used solely for reimbursement of
Eligible construction Costs identified in this Agreement and must by supported by the
itemized obligations that have been properly incurred, expended and are properly
chargeable in connection with construction of the Project.
6.7 Disbursement of Funds. The disbursement of SLFRF Program Loan Funds
shall occur within the normal course of CITY business (approximately 30 days) after the CITY
receives the Certification and Request for Reimbursement with correct supporting
documentation and to the extent of annually allocated and available SLFRF Funds.
ARTICLE 7. REHABILITATION OF THE PROJECT
Without waiver of limitation, the parties agree as follows:
7.1 Pre-Construction Meeting Regarding Processes and Procedures. The CITY
may schedule, and the DEVELOPER shall attend, or the DEVELOPER may schedule, and
the CITY shall attend a meeting prior to construction for the purpose of outlining the Project
processes and procedures.
7 .2 Commencement and Completion of Proiect. The DEVELOPER shall commence
rehabilitation of the Project, and when completed, record a Notice of Completion of
construction of the Project in accordance with the Project Schedule as identified in EXHIBIT
"B", and provide the CITY with a copy of the recordation.
7.3 Contracts and Subcontracts. Consistent with Section 5.3, all 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
or subcontractors for this 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
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 construction agreement
on the Project, 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
19
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 t o Prope rt y. 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 building 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 original
Plans and Specifications of the Project. Such work or repair shall occur within 90 days after
the insurance proceeds are made available to the DEVELOPER and shall be completed
within two 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 use its best efforts to 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 Property or the Project 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 with copies of all agreements with any and all funding sources for the
Project. The DEVELOPER shall require 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 party(ies) applicable rules and regulations,
agree to notify the CITY immediately of any event of default by the DEVELOPER thereunder .
Should the DEVELOPER not comply with all the obligations of this section , the Loan shall
become immediately due and payable as provided for in this Agreement. This Section shall
survive expiration or termination of this Agreement.
7.7 Ide nti fi ca ti o n Sig n age . Before the start of rehabilitation , the DEVELOPER shall
place a poster or sign, with a minimum four feet by four feet in size, identifying the City of
Fresno Planning and Development Department, Housing and Community Development
Division as a Project participant. The sign shall also include the CITY's Housing logo, as
well as the Equal Housing Opportunity logo, as mandated by HUD. The font size shall be a
minimum of 4 inches. The poster/sign shall be appropriately placed and shall remain in place
throughout the Project construction.
7.8 Insp ecti ons . The DEVELOPER shall permit, facilitate, and require its
contractors and consultants to permit and facilitate observation and inspection at the Project
site by the CITY and other public authorities during reasonable business hours, for the
purpose of determining compliance with this Agreement, including without limitation those
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annual on-site inspections required by the CITY.
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 relocate the utilities, if any, as necessary to complete the Project.
7.10 Insurance and Bonds . The DEVELOPER shall submit for CITY approval
bonds, certificates and applicable endorsements for all insurance and bonds required by this
Agreement in accordance with 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, SLFRF Program 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 DEVELOPER fails to discharge, bond or otherwise satisfy the
CITY with respect to any lien, encumbrance, charge or claim referred to in Section
7.11 above, 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 . The DEVELOPER shall submit, for CITY approval, all
the necessary permits and licenses required for Commencement of Construction. 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 negotiate with the
utility companies for and to relocate the utilities, if any, as necessary to complete the Project.
7.13 Plans and Specifications. The DEVELOPER will rehabilitate the Project in full
conformance with the CITY-approved plans and specifications and modifications thereto
approved by the CITY. The DEVELOPER shall obtain the CITY's prior written approval for
any modifications to the plans and specifications.
A. The SLFRF Agreement shall contain by reference the design and site
plan of the Project; such design must be approved by the CITY Council with the
SLFRF Agreement.
B. The DEVELOPER will construct the Affordable Housing in full
conformance with the Plans and Specifications and modifications thereto approved by
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the CITY. The DEVELOPER shall obtain the CITY's prior written approval for any
modifications to the 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 prevailing wage and public bidding
requirements . The Council of the City of Fresno has adopted Resolution No. 82-297
ascertaining the 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 execution of contracts for 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 conditions of 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 DEVELOPER or 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 Project and all
improvements on site in a 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 improvements free from graffiti; (iii) keep the Project
Property free from any accumulation of debris or waste material; (iv) promptly make repairs
and replacements to on-site improvements; (iv) promptly replace any dead, or diseased
plants and/or landscaping (if any) with comparable materials, and (v) enforce tenant lease
terms .
7.16 Quality of Work . The DEVELOPER shall ensure that construction of the Project
employs building materials of a quality suitable for the requirements of the Project. The
DEVELOPER shall cause completion of the construction of the Project on the Property 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 the rehabilitation of the proposed Project
results in the permanent or temporary displacement of residential tenants, the DEVELOPER
shall comply with all applicable local, State, and federal statutes and regulations with respect
to relocation planning, advisory assistance, and payment of monetary benefits. The
DEVELOPER shall be solely responsible for payment of any relocation benefits to any
displaced persons and any other obligations associated with complying with said relocation
laws.
7.18 Reporting Requirements. The DEVELOPER shall submit to the CITY the
following Project reports :
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A. From the date of execution of this Agreement, until issuance of the final
Certificate of Completion, the DEVELOPER shall submit a Quarterly Report, in a form
approved by the CITY, which will include, at a minimum, the following information :
progress of the Project and affirmative marketing efforts . The Quarterly Reports are
due 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 Certificate of Completion, and continuing until the termination of the
Agreement, the DEVELOPER shall submit an Annual Rent Roll Report to the CITY,
in a form approved by the CITY. The Annual Report shall include, at a minimum, the
following information: occupancy of each Project Unit including the annual income and
the household size, the date occupancy commenced, certification from an officer of
the DEVELOPER that the Project is in compliance with the Affordability 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 upon request and at the annual monitoring of the Property .
C. Annually , beginning on the first day of the month following the CITY's
issuance of the final Certificate of Completion, evidencing the construction of the
Project , and continuing until the expiration of the Agreement, the DEVELOPER shall
submit proof of property and liability insurance, as required in Article 9, listing the CITY
as loss payee .
D. For the avoidance of doubt, the DEVELOPER may submit the required
reports described in this section pursuant to the City of Fresno HOME Investment
Partnership Program Agreement, between the CITY and DEVELOPER , dated June
1, 2022 . The DEVELOPER is not required to make duplicate submissions.
7 .19 Sc hed uling and Exte nsio n of T ime ; Unavoid a b le De lay in Performance . It shall
be the responsibility of the DEVELOPER to coordinate and schedule the work to be
performed so that the Commencement of the Construction and issuance of the Notice of
Completion will take place in accordance with the provisions of the Agreement and Project
Schedule. The 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 (force majeure). An extension of time for any of
the above specified causes will be granted only if written notice by the party claiming
such extension is sent to the other party within ten 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
Project must 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.
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B. Any and all extensions hereunder shall be by mutual written agreement
between CITY and DEVELOPER. The City's Planning Director may administratively
extend deadlines for up to 180 days cumulatively. An extension beyond the Director's
180-day cumulative extension shall require City Council approval.
7.20 Certificate of Complet ion . Upon completion of the construction of the Project,
the DEVELOPER shall submit to the CITY: 1) certification in writing that the Project has been
substantially rehabilitated in accordance with the plans and specifications, approved by the
CITY; 2) a recorded Notice of Completion ; 3) a cost-certifying final budget where the
DEVELOPER shall identify the actual costs, in line-item format consistent with the Project
Budget, of construction of the Project; and 4) a request for a recorded Certification of
Completion. Upon a determination by the CITY that the DEVELOPER is in compliance with
all of the DEVELOPER's construction obligations, as specified in this Agreement, the CITY
shall furnish, within thirty (30) calendar days of a written request by the DEVELOPER, a
recordable Certificate of Completion for the Project in the form attached hereto as EXHIBIT
"E". The CITY will not unreasonably withhold or delay furnishing the Certificate of
Completion. If the CITY fails to provide the Certificate of Completion within the specified
time, it shall provide the DEVELOPER 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
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 recordable Certificate of Completion to the
DEVELOPER in accordance with the provisions of this Section.
ARTICLE 8. OPERATIONS OF THE PROJECT
8.1 Operati on of t he Pro ject. The DEVELOPER shall lease, operate, and
manage the Project in full conformity with the terms of this Agreement.
8.2 Occupancy Req ui reme nts. Eleven of the SLFRF-Assisted Affordable Units
shall be rented and occupied by, or if vacant, available for rental occupancy by Very Low-to
Low-Income households, at or below [185% of the Federal Poverty Guideline], that have
been disproportionally impacted by Covid-19 and are presumed to continue experiencing
lack of affordable housing . The DEVELOPER shall comply with the income targeting
requirements of the SLFRF.
8.3 Leasing the SLFRF-Assisted Affordable Units. Before leasing any SLFRF-
Assisted Affordable Units, the DEVELOPER shall submit its proposed form of lease
agreement for the CITY's review and approval. The DEVELOPER covenants and agrees to
utilize only leases that 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 30 days of the lease agreement submittal, the
DEVELOPER shall be authorized to use the submitted sample lease agreement.
Additionally, the DEVELOPER agrees not to terminate the tenancy or to refuse to renew or
lease with a tenant of the Units assisted with SLFRF Funds except for serious or repeated
violations 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 30 days' written notice served by the DEVELOPER or its
authorized management entity upon the tenant specifying the grounds for such action. The
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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 SLFRF-Assisted Affordable Units Provisions. In addition to the
SLFRF requirements and the VAWA lease addendum required in accordance with 24 CFR
92.359(e), the leases are subject to the following:
A. The DEVELOPER shall include in its Leases for the SLFRF-assisted
Affordable Units, provisions which authorize the DEVELOPER to immediately
terminate the tenancy of any Household of which one or more of its members
misrepresented any fact material to the Household's qualification as a Very Low-to
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 a Very Low-to Low-Income
Household, such Household's rent may be subject to increase to the lesser of: 1) the
amount payable by tenant under State or local law; or 2) 30% of the Household's
actual adjusted monthly income, except that, tenants of SLFRF-assisted Affordable
Units that have also been allocated Low Income Housing Tax Credits by a housing
credit agency pursuant to section 42 of the internal Revenue Code of 1986 (26 U.S.C.
42) must meet both program rules .
8.5 Final Mana gemen t Pla n. Before leasing and at least 60 calendar days prior to
the rehabilitation Completion Date, the DEVELOPER shall submit to the CITY, for review
and approval, a plan for marketing and managing the proposed Affordable Units (Final
Management Plan). The Final Management Plan shall address in detail how the
DEVELOPER or its designated management entity plans to market the availability of the
Affordable Units to prospective tenants and how the DEVELOPER plans to certify the
eligibility of potential tenants . The Final Management Plan shall also address how the
DEVELOPER and/or the management entity plan to manage and maintain the Affordable
Units in accordance with SLFRF regulations for 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;
• Criminal background checks;
• Deposit amounts , purpose, use and refund policy;
• Employment/Income 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 lower income tenants. The
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DEVELOPER shall abide by the terms of this Final Management Plan, approved by the CITY,
in marketing, managing, and maintaining the SLFRF-Assisted Affordable Units.
At least 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 Project.
8.7 Maintenance and Security. The DEVELOPER shall (i) 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 Affordable Unit occupants. The
DEVELOPER shall not commit or permit any waste on or to the Project and shall prevent
and/or rectify any physical deterioration of the Project. The DEVELOPER shall maintain the
Units in conformance with all applicable federal, State, and local laws, ordinances, codes
and regulations, the Final Management Plan , and this Agreement.
8.8 Nondiscrimination. Eleven of the SLFRF-Assisted Affordable 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 constructed 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 Deficiency
Syndrome (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 Affordable Unit or in connection with
employment of persons for the construction 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 Housing
Opportunity 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 DEVELOPER
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to obtain licenses or permits other than those required for the Project.
8.9 Rent Sc hedule and Utility Allowances . The DEVELOPER covenants and
agrees not to charge rent to tenants for SLFRF-Assisted Units in an amount which exceeds
those rents prescribed to the Project as they associate with particular income and rent
limitations levels as established annually by the Department of the Treasury, consistent with
the SLFRF Program requirements applicable to the Affordable Units in the Fresno, California
area, 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. The DEVELOPER
agrees to furnish the CITY with a certificate setting forth the maximum monthly rentals for
the SLFRF-Assisted 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 at least
annually.
8.10 Renta l Ho usi ng Fees . The DEVELOPER covenants and agrees not to charge
fees that are not customarily charged in rental housing such as laundry room access fees,
and other fees in accordance with 24 CFR 92 .504(c)(3)(xi).
ARTICLE 9. INSURANCE AND INDEMNITY AND BONDS
Without waiver of limitation, the parties agree as follows regarding the DEVELOPER'S
Insurance and Indemnity Obligations:
9.1 Insurance Requi remen ts. Throughout the life of this Agreement, the
DEVELOPER shall pay for and maintain in full force and effect all policies of insurance
hereunder with an insurance company(ies) either (i) 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 (ii) authorized by the CITY's Risk Manager. The following
policies of insurance are required:
Best's Insurance Rating Guide, or (ii) authorized by the CITY's Risk Manager. The following
policies of insurance are required:
(i) COMMERCIAL GENERAL LIABILITY insurance which shall be at least as
broad as the most current version of Insurance Services Office (ISO) Commercial
General Liability Coverage Form CG 00 01 and include insurance for "bodily injury,"
"property damage" and "personal and advertising injury" with coverage for premises
and operations (including the use of owned and non-owned equipment), products and
completed operations, and contractual liability (including, without limitation, indemnity
obligations under the Agreement) with limits of liability of not less than the following:
$2,000,000 per occurrence for bodily injury and property damage
$2,000,000 per occurrence for personal and advertising injury
$4,000,000 aggregate for products and completed operations
$4,000,000 general aggregate applying separately to work performed
under the Agreement
(ii) COMMERCIAL AUTOMOBILE LIABILITY insurance which shall be at least
as broad as the most current version of Insurance Service Office (ISO) Business Auto
Coverage Form CA 00 01, and include coverage for all owned , hired , and non-owned
automobiles or other licensed vehicles (Code 1-Any Auto) with limits of liability of not
less than $1,000,000 per accident for bodily injury and property damage.
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(iii) WORKERS' COMPENSATION insurance as required under the California
Labor Code.
(iv) EMPLOYEE LIABILITY insurance with limits of liability of not less than
$1,000,000 each accident, $1,000,000 disease policy limit and $1,000,000 diseased
each employee.
(v) BUILDERS RISK (Course of Construction) insurance, obtained by the
DEVELOPER or subcontractor in an amount equal to the completion value of the
Project with no coinsurance penalty provisions. (Only required if the project includes
new construction of a building; or renovation of, or addition to, an existing building.)
(vi) CONTRACTOR POLLUTION LIABILITY (Unless waived in writing by the
CITY's Risk Manager or his/her designee, Pollution Liability is required, by the
DEVELOPER or the Contractor for all environmental and water remediation work and
for all work transporting fuel. Pollution insurance shall provide coverage for bodily
injury, property damage or pollution clean-up costs that could result from of pollution
condition, both sudden and gradual. Including a discharge of pollutants brought to the
work site, a release of pre-existing pollutants at the site, or other pollution conditions
with limits of liability of not less than the following:
$1,000,000 per occurrence or claim
$2,000,000 general aggregate per annual policy period
In the event the DEVELOPER purchases an Umbrella or Excess insurance policy(ies) to
meet the minimum limits of insurance set forth above, this insurance policy(ies) shall "follow
form" and afford no less coverage than the primary insurance policy(ies). In addition, such
Umbrella or Excess insurance policy(ies) shall also apply on a primary and non-contributory
basis for the benefit of the CITY, its officers, officials, employees, agents, and volunteers.
In the event the DEVELOPER involves any lead-based, mold or asbestos environmental
hazard, either the Automobile Liability insurance policy or the Pollution Liability insurance
policy shall be endorsed to include Transportation Pollution Liability insurance covering
materials to be transported by the DEVELOPER pursuant to the SLFRF Agreement.
In the event the DEVELOPER involves any lead-based environmental hazard (e.g., lead-
based paint), the DEVELOPER's Pollution Liability insurance policy shall be endorsed to
include coverage for lead based environmental hazards. In the event the DEVELOPER
involves any asbestos environmental hazard (e.g., asbestos remediation), the
DEVELOPER's Pollution Liability insurance policy shall be endorsed to include coverage for
asbestos environmental hazards. In the event the SLFRF Agreement involves any mold
environmental hazard (e.g., mold remediation), the Pollution Liability insurance policy shall
be endorsed to include coverage for mold environmental hazards and "microbial matter
including mold" within the definition of "Pollution" under the policy.
The DEVELOPER shall be responsible for payment of any deductibles contained in any
insurance policies required hereunder and the DEVELOPER shall also be responsible for
payment of any self-insured retentions. Any deductibles or self-insured retentions must be
declared to, and approved by, the CITY's Risk Manager or his/her designee. At the option
of the CITY's Risk Manager or his/her designee, either (i) the insurer shall reduce or eliminate
such deductibles or self-insured retentions as respects to the CITY, its officers, officials,
employees, agents, and volunteers; or (ii) the DEVELOPER shall provide a financial
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guarantee, satisfactory to the CITY's Risk Manager or his/her designee, guaranteeing
payment of losses and related investigations, claim administration and defense expenses.
At no time shall the CITY be responsible for the payment of any deductibles or self-insured
retentions.
All policies of insura nce required hereunder shall be endorsed to provide that the coverage
shall not be cancelled, non-renewed, reduced in coverage or in limits except after thirty (30)
calendar day written notice has been given to the CITY. Upon issuance by the insurer,
broker, or agent of a notice of cancellation, non-renewal, or reduction in coverage or in limits,
the DEVELOPER shall furnish the CITY with a new certificate and applicable endorsements
for such policy(ies). In the event any policy is due to expire during the work to be performed
for the CITY, the DEVELOPER shall provide a new certificate, and applicable endorsements,
evidencing renewal of such policy not less than fifteen (15) calendar days prior to the
expiration date of the expiring policy .
The General Liability and Automobile Liability insurance policies shall be written on an
occurrence form. The Pollution Liability insurance policy shall be written on either an
occurrence form, or a claims-made form . The General Liability, Automobile Liability and
Pollution Liability insurance policies shall name the CITY, its officers, officials, agents,
employees, and volunteers as an additional insured. All such policies of insurance shall be
endorsed so the DEVELOPER's insurance shall be primary and no contribution shall be
required of the CITY. The coverage shall contain no special limitations on the scope of
protection afforded to the CITY, its officers, officials, employees, agents, and volunteers. If
the DEVELOPER maintains higher limits of liability than the minimums shown above, the
CITY requires and shall be entitled to coverage for the higher limits of liability maintained by
the DEVELOPER. The General Liability insurance policy shall also name the CITY, its
officers, officials, agents, employees, and volunteers as additional insureds for all ongoing
and completed operations. The Builders Risk (Course of Construction) insurance policy shall
be endorsed to name the CITY as loss payee. All insurance policies required including the
Workers' Compensation insurance policy shall contain a waiver of subrogation as to the City,
its officers, officials, agents, employees, and volunteers.
The DEVELOPER shall furnish the CITY with all certificate(s) and applicable endorsements
effecting coverage required hereunder. All certificates and applicable endorsements are to
be received and approved by the CITY's Risk Manager or his/her designee before work
commences. Upon request of the CITY, the DEVELOPER shall immediately furnish the
CITY with a complete copy of any insurance policy required under this Agreement, including
all endorsements, with said copy certified by the underwriter to be a true and correct copy of
the original policy. This requirement shall survive expiration or termination of this Agreement.
Claims-Made Policies -If any coverage required is written on a claims-made coverage form:
(i) The retroactive date must be shown and must be before the effective
date of the commencement of work by the DEVELOPER.
(ii) Insurance must be maintained and evidence of insurance must be
provided for at least five (5) years after completion of the work or termination of the
Agreement, whichever first occurs.
(iii) If coverage is canceled or non-renewed, and not replaced with another
claims-made policy form with a retroactive date prior to the effective date of the
Agreement, or work commencement date, the DEVELOPER must purchase extended
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reporting period coverage for a minimum of five (5) years after completion of the work
or termination of the SLFRF Agreement, whichever first occurs.
(iv) A copy of the claims reporting requirements must be submitted to the
CITY for review.
(v) These requirements shall survive expiration or termination of the
Agreement.
If at any time during the life of the Agreement or any extension, the DEVELOPER, its
contractor, or any of its subcontractors fail to maintain any required insurance in full force
and effect, all work under this Agreement shall be discontinued immediately, and all
payments due or that become due to the DEVELOPER shall be withheld 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 shall be sufficient cause for the CITY to terminate
this Agreement. No action taken by CITY hereunder shall in any way relieve the
DEVELOPER of its responsibilities under this Agreement. The phrase "fail to maintain any
required insurance" shall include, without limitation, notification received by the CITY that an
insurer has commenced proceedings, or has had proceedings commenced against it,
indicating that the insurer is insolvent.
The fact that insurance is obtained by the DEVELOPER shall not be deemed to release or
diminish the liability of the DEVELOPER, including, without limitation, liability under the
indemnity provisions of this Agreement. The duty to indemnify the CITY shall apply to all
claims and liability regardless of whether any insurance policies are applicable. The policy
limits do not act as a limitation upon the amount of indemnification to be provided by the
DEVELOPER. Approval or purchase of any insurance contracts or policies shall in no way
relieve from liability nor limit the liability of the DEVELOPER, its principals , officers, agents,
employees, persons under the supervision of the DEVELOPER, vendors, suppliers, invitees,
consultants, sub-consultants, subcontractors, or anyone employed directly or indirectly by
any of them.
In the event of a partial or total destruction by the perils insured against of any or all of the
work and/or materials herein provided for at any time prior to the final completion of the
Agreement and the final acceptance by the CITY of the work or materials to be performed or
supplied thereunder, the DEVELOPER shall promptly reconstruct, repair, replace, or restore
all work or materials so destroyed or injured at his/her sole cost and expense. Nothing herein
provided for shall in any way excuse the DEVELOPER or his/her insurance company from
the obligation of furnishing all the required materials and completing the work in full
compliance with the terms of this Agreement.
SUBCONTRACTORS -If DEVELOPER subcontracts any or all of the services to be
performed under this Agreement, DEVELOPER shall require, at the discretion of the CITY
Risk Manager or designee, subcontractor(s) to enter into a separate Side Agreement with
the City to provide required indemnification and insurance protection . Any required Side
Agreement(s) and associated insurance documents for the subcontractor must be reviewed
and preapproved by CITY Risk Manager or designee . If no Side Agreement is required ,
CONTRACTOR will be solely responsible for ensuring that its subcontractors maintain
insurance coverage at levels no less than those required by applicable law and is customary
in the relevant industry.
30
A. The above-described policies of insurance shall be endorsed to provide
an unrestricted 30 day written notice in favor of the CITY, of policy cancellation,
change or reduction of coverage. In the event any policy is due to expire during the
term of this Agreement, a new certificate evidencing renewal of such policy shall be
provided not less than 15 days prior to the expiration date of the expiring policy(ies).
Upon issuance by the insurer, broker, or agent of a notice of cancellation, change or
reduction in coverage, the DEVELOPER or its contractors, as the case may be , shall
file with the CITY a certified copy of the new or renewal policy and certificates for such
policy.
B. The DEVELOPER shall furnish the CITY with the certificate(s) and
applicable endorsements for ALL required insurance prior to the CITY's execution of
this Agreement. The DEVELOPER shall furnish the CITY with copies of the actual
policies upon the request of the CITY at any time during the life of the Agreement or
any extension.
At all times hereunder the DEVELOPER shall maintain the required insurance
in full force and effect.
9.2 Indemnity . To the furthest extent allowed by law, the DEVELOPER shall
indemnify, hold harmless and defend the CITY and each of its officers, officials, employees,
agents and volunteers from any 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, the DEVELOPER or any other
person, and from any and all claims, demands and actions in law or equity (including
attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly
out of performance of this Agreement. The DEVELOPER's obligations under the preceding
sentence shall apply regardless of whether the CITY or any of its officers, officials,
employees, agents, or volunteers are passively negligent, but shall not apply to any loss,
liability, fines, penalties, forfeitures, costs, or damages caused by the active negligence or
by the willful misconduct of the CITY or any of its officers, officials, employees, agents , or
volunteers.
This section shall survive termination or expiration of this Contract.
9.3 Prope rty Insu ra nce . The DEVELOPER shall maintain in full force and effect,
throughout the remaining life of this Agreement , a policy or policies of property insurance
acceptable to the CITY, covering the Project premises , with limits reflective of the value of
the Project premises upon issuance of the Certificate of Completion or substantial completion
of the project referenced in this agreement, including fire and Extended Comprehensive
Exposure (EGE) coverage in an amount, form, substance, and quality as acceptable to the
CITY's Risk Manager. The CITY shall be added by endorsement as a loss payee thereon.
9.4 Bo nd Ob ligations. The DEVELOPER or its General Contractor shall obtain,
pay for and deliver good and sufficient payment and performance bonds along with a Primary
Obligee, Co-Obligee or Multiple Obligee Rider in a form acceptable to the CITY from a
corporate surety, admitted by the California Insurance Commissioner 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 100% of the
total amount of the Loan as reflected in the DEVELOPER's pro forma budget,
31
attached hereto as EXHIBIT "C", to the guarantee faithful performance of the Project,
within the time prescribed, in a manner satisfactory to the CITY, consistent with this
Agreement, and that all material and workmanship will be free from original or
developed defects.
B. The "Payment Bond" shall be at least equal to 100% of the total amount
of the Loan to satisfy claims of material supplies and of mechanics and laborers
employed for this Project. The bond, along with any other form of security, such as a
letter of credit related to the Project 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 and as required by the applicable provisions of Chapter 7, Title 15, Part
4, Division 3 of the California Civil Code.
ARTICLE 10. DEFAULT AND REMEDIES
10.1 Events of Default. The parties agree that each of the following shall constitute
an "Event of Default" by the DEVELOPER for purposes of this Agreement after the cure
period in Section 10.2 has expired without a cure:
A. The DEVELOPER's use of SLFRF Funds for costs other than Eligible
Costs or for uses not permitted by the terms of this Agreement; except that there shall
be no Event of Default if the DEVELOPER's use of the SLFRF were for costs that
were Eligible Costs at the time they were incurred but subsequently lose eligibility;
B. The DEVELOPER's Failure to obtain and maintain the insurance
coverage required under this Agreement;
C. 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 limitation the following: (1) the
DEVELOPER's material deviation in the Project work specified in the Project
Description as identified in this Agreement, without the CITY's prior written consent;
(2) the DEVELOPER's use of defective or unauthorized materials or defective
workmanship in pursuit of the Project; (3) the DEVELOPER's failure to commence or
complete the Project, as specified in this Agreement, unless delay is permitted under
Section 7.19 of this Agreement; (4) cessation of the Project for a period of more than
15 consecutive days (other than as provided at Section 7.19 of this Agreement) prior
to submitting to the CITY certification that the Project is complete; (5) any material
adverse change in the condition of the DEVELOPER or its development team, or the
Project that gives the CITY reasonable cause to believe that the Project cannot be
completed by the scheduled 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; or (7) the
DEVELOPER's failure to 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;
D. 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
32
any representation, warranty, or certification that proves to be materially false is due
merely to the DEVELOPER's inadvertence, the DEVELOPER shall have a 30 day
opportunity after written notice thereof to cause such representation, warranty, or
certification to be true and complete in every respect;
E. 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, readjustment, liquidation, dissolution, or similar relief, and such petition
shall not have been vacated within 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 90 days;
F. The DEVELOPER's failure, inability or admission in writing of its inability
to pay its debts as they become due or the DEVELOPER assignment for the benefit
of creditors;
G. A receiver, trustee, or liquidator shall be appointed for the DEVELOPER
or any substantial part of the DEVELOPER's assets or properties, and not be removed
within ten days;
H. The DEVELOPER's breach of any other material condition, covenant,
warranty, promise or representation contained in this Agreement not otherwise
identified within this Section.
I. Any substantial or continuous breach by the DEVELOPER of any
material obligation owned by 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 Opportunity to Cure. The CITY shall give written notice
to the DEVELOPER and the limited partner of 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, any time period
provided for in the notice no less than ten days, or 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, with the CITY's written consent,
the DEVELOPER and its limited partner 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 previously identified in writing
delivered to the CITY in the manner provided in this Agreement. Additionally, the limited
partner of DEVELOPER shall have such notice and cure rights afforded to it in Section 22 of
the Deed of Trust and the CITY agrees to accept any cure by limited partner of DEVELOPER
as if DEVELOPER had cured such Event of Default.
10.3 Remedies Upon an Event of Default. Upon the happening of an Event of
Default and a failure to cure said Event of Default within the time specified , the CITY's
obligation to disburse SLFRF shall terminate. The CITY may also at its option and without
33
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. Terminate this Agreement immediately upon written notice;
B. Bring an action in equitable relief: (1) seeking specific performance of
the terms and conditions of this Agreement, and/or (2) enjoining, abating or preventing
any violation of said terms and conditions, and/or (3) seeking declaratory relief;
C. Pursue any other remedy allowed by law or in equity or under this
Agreement; and
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 modification or amendment of any provision of this
Agreement shall be effective unless made in writing and signed by the parties hereto. The
CITY recognizes that other Project funders and equity investors may require revisions to the
Loan Documents to be consistent with their funding and investing requirements. The CITY
agrees to reasonably consider and negotiate as to any reasonable amendments to this
Agreement to address such requirements, subject to approval as to form by the City
Attorney's Office.
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 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 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
34
with respect to such matters before completing the environmental assessment of the Project
under NEPA and any other applicable statutes. 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.
11.7 Effective Da te . This Agreement shall be effective upon the date first above
written, upon the CITY and the DEVELOPER's complete execution following City Council
approval and recordation of related documents .
11.8 Enti re Agreemen t. 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 Upo n Eve nt 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 Govern i ng 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 Agreement will 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 Interp retatio n. 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 accordance with their generally accepted meaning .
11.14 No Assignment or Succession. The DEVELOPER shall not sell, transfer,
assign or otherwise dispose of all or a 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. Notwithstanding the foregoing, upon prior written notice to the CITY,
the DEVELOPER shall be permitted to assign its rights and obligation under this Agreement
with respect to the Project without the CITY's consent.
11.15 No T hird -Pa rty 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 person shall
be deemed to have waived in writing all right to seek redress from the CITY under any
circumstances whatsoever.
35
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 unless the same shall be in writing, signed on
behalf 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, its agents , employees, or attorneys in entering into this
Agreement.
11. 18 Noti ce . 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
Planning and Development Department
Housing and Community Development Division
2600 Fresno Street, Room 3065
Fresno, CA 93721-3605
If to DEVELOPER: Fresno 1101 Parkway, LP
c/o Housing Authority of the City of Fresno
Attn: Executive Director
1331 Fulton Street
Fresno, CA 93721
With a copy to limited partner of DEVELOPER:
U.S . Bancorp Community Development
Corporation, its successors and assigns
USS Project No: 28242
1307 Washington Avenue
Suite 300
Mail Code: SL MO RMCD
St. Louis, MO 63103
Attn: Director of LIHTC Asset Management
Phone: (314) 335-2600
And :
Kutak Rock LLP
1650 Farnam Street
Omaha, NE 68102
36
Attn: Jill H. Goldstein, Esq .
11.19 Precedence of Documents. In the event of any conflict between the body of
this Agreement and any exhibit or attachment hereto, 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, and to
promptly effectuate the recordation of this Agreement, the Declaration of Restrictions, the
Deed of Trust, and any other documents/instruments 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 any one or more of
the provisions of this Agreement shall not affect the validity, legality, or enforceability of the
remaining provisions hereof or thereof.
[SIGNATURE PAGE TO FOLLOW]
37
IN WITNESS WHEREOF, the parties have executed this Agreement in Fresno,
California, the day and year first above written.
CITY OF FRESNO,
A California municipal corporation
eorgeanne A. White
Manager
(Attach notary certificate of acknowledgment)
APPROVED AS TO FORM :
ANDREW JANZ
, City Attorney
By:
Name: Tracy arvanian
Title: Supervisi Deputy City Attorney
Date: \ -L{ -&~
ATTEST:
TODD STERMER, CMG
City Clerk
By:
Fresno 1101 Parkway, LP
a California limited partnership
By: Silvercrest, Inc., a California non-profit
public benefit corporation, its Managing
General Partner
By ~r¥-fe, ~ Tyr~ eRodeick Willia ~ s
Seer tary/Director
By: Fresno 1101 Parkway AGP, LLC, a
California limited liability company, its
Administrative General Partner
By: Housing Authority of the City of
Fresno, California, a public body
corporate and politic, its sole Member and
Manager
By ~ ,/ewd.,,M~
Na :Tyrone Rodrick Williams
Title : Chief Executive Officer
(Attach notary certificate of acknowledgment)
Date: _ ___.}'---_.__)l_-_~_3___
Attachments:
EXHIBIT A: PROPERTY DESCRIPTION
EXHIBIT B: PROJECT DESCRIPTION AND SCHEDULE
EXHIBIT C: PROJECT BUDGET AND CASH FLOW STATEMENT
EXHIBIT D: EXEMPLAR DECLARATION OF RESTRICTIONS
EXHIBIT E: EXEMPLAR CERTIFICATE OF COMPLETION
EXHIBIT F: EXEMPLAR PROMISSORY NOTE
EXHIBIT G: EXEMPLAR DEED OF TRUST ASSIGNMENT OF RENTS
CLERK'S CERT/FICA T/ON
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document, to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document
State of California )
County of Fresno )
On January 11. 2023 before me, Tina M. Your. Records Supervisor, personally appeared,
Georgeanne A. Wh ite. City Manager. City of Fresno. who proved to me on the basis of
satisfactory evidence, to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s),
or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal
Todd Stermer, CMG
City Clerk, City of Fresno
EXHIBIT "A"
LEGAL DESCRIPTION
The land described herein is situated in the State of California, County of Fresno, City of
Fresno, described as follows:
Parce l One :
Parcel C of Parcel Map No. 71-34, according to the map thereof recorded in Book 2 Page 90 of Parcel Maps,
Fresno County Records, together with all improvements thereon.
Parce l Two:
A non-exclusive easement appurtenant for access, ingress and egress by vehicles (including, without limitation,
buses and trucks) and pedestrians over that portion of Parcel B of said Parcel Map No. 7134, more particularly
described as follows:
Beginning at the most Easterly corner of said Parcel B; thence South 53° 19' 25" West, along the Southeasterly
line of said Parcel B, a distance of 115.45 feet; thence North 90° 00' 00'' West a distance of 98.41 feet; thence
South 00° 00' 00" East a distance of 20 .65 feet to a point on the South line of said Parcel B; thence North 90° 00'
00"West, along said South line, a distance of 27.00 feet; thence North 00° 00' 00" East a distance of 42.65 feet;
thence North 90° 00' 00" East a distance of 118.12 feet; thence North 53° 19' 25" East a distance of 60.25 feet;
thence North 38° 02 ' 15" East a distance of 33 .87 feet; thence North 52° 52' 16" East a distance of 15 .24 feet to a
point on the Northeasterly line of said Parcel B; thence South 36° 40' 35" East, along said Northeasterly line, a
distance of 31.05 feet to the point of beginning.
Parcel Three :
A non-exclusive easement over that portion of the hereinabove described easement as shown on Exhibit A-I
attached to that Partnership Grant Deed recorded September 9, 1992 as Instrument No. 92135559 of Official
Records, and made a part hereof for the maintenance of an existing encroachment for supporting pillars, wood
beams and a roof overhang of a portico near the entrance of Parcel C; provided, however, that upon the
removal, destruction or relocation of the currently existing portion on Parcel C, both of the foregoing easements
shall expire and shall be of no force or effect.
APN: 449-270-41
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of
that document.
STATE OF (q\'\ft{YltC\ )SS
COUNTY OF ffJ)S {)t )
On I V a-0)-~ .before me, gvaJ1 W,.Qj()
~~----t-----,-' I\0
Notary Public, personally appeared -~c:J-J--=--'---t-:J;.-""-'.L'!....Ll-=-----\i'-~1-+Jl-t-'--¥---------
____________________, who proved to me on the basis of satisfactory
evidence to be the person(s) whose narne(s) is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their authorized capacity(ies ), and that by his/her/their
signature( s) on the instrument the person( s ), or the entity upon behalf ofwhich the person( s) acted, executed
the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
SARAH BOREN ·······-~ Notary Public • California z
Fresno County ~
Commission# 2287920 -
My Comm . Expirl!'S May 9, 2023
This area for official notarial seal
------------
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached , and not the truthfulness , accuracy, or
valid ity of that document.
State of California
County of Fresno
On 12-20-2022 before me, Debbie Granum, Notary Public
(insert name and title of the officer)
personally appeared Tyrone Roderick Williams
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted , executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature ~~ (Seal)
------------
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validi ty of that document.
State of California
County of Fresno
On 12-20-2022 before me, Debbie Granum, Notary Public
(insert name and title of the officer)
personally appeared Tyrone Roderick Williams
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)&~
eeeooee0:e•••1
~ • .•• ,.,. DEBBIE GRAIIUM
·· !'lotary Pub lic • Ca lffornia z
Fresno County
Comm [s-sion :# 2177339
EXHIBIT "B"
PROJECT DESCRIPTION, INCOME LEVELS, SCHEDULE
I. PROJECT DESCRIPTION
The Sun Lodge Apartments (Project) consists of the rehabilitation of the former Days Inn
Motel , a 98-room motel structure , into a 64-unit apartment complex , and on -site and off-site
improvements and amenities . Of the 64 units in the Project, 11 (3-bed/1-bath) will be SLFRF-
assisted units reserved for Very Low to Low-income households earning 185% of the Federal
Poverty Guidelines for Household size (approximately 50-60% of area median income).
One of the 64 units will be reserved for an on-site property manager. The Project site is
located 1101 N. Parkway Drive, Fresno, CA 93728 (APNs: 449-270-41).
SLFRF-FUNDED FLOATING UNITS
% of Median Unit
50% or less 3
60 % o r less 8
T0tals 11
SLFRF Funds will be made available by the CITY for payment of SLFRF eligible rehabilitation
costs not to exceed Two Million Five Hundred Thousand dollars and 00/100 ($2,500,000.00),
the aggregate SLFRF for the 11 floating SLFRF-assisted Units as determined by the CITY ,
as needed, for SLFRF eligible project construction costs.
II. PROJECT SCHEDULE
A. Commencement of Construction: July 2022
B. Completion of Construction : Decemb er 2023
C. Rent Up Completion : Ja nuary 2024
11. INCOME LEVEL
Up to 185% for Household Size
Federal Poverty Levels March 2022 through March 2023
HH Size 100% 125% 130% 138% 150% 185%
1 13 ,590 16 ,988 17 ,667 18 ,754 20,385 25 ,142
2 18,310 22,888 23 ,803 25 ,268 27,465 33,874
3 23 ,030 28 ,788 29 ,939 31 ,781 34 ,545 42 ,606
4 27 ,750 34 ,688 36,075 38 ,295 41 ,625 51 ,338
5 32 ,470 40 ,588 42,211 44 ,809 48 ,705 60 ,070
6 37 ,190 46 ,488 48 ,347 51 ,322 55 ,785 68 ,802
7 41,910 52,388 54,483 57 ,836 62 ,865 77 ,534
8 46 ,630 58 ,288 60 ,619 64,349 69 ,945 86 ,266
Each
add'I 4,720 5,900 6,136 6,514 7,080 8,732
AC(luisition Costs:
Purchase Price
Liens
Closing , Tille & Recording Costs
Extension Payment
Legal Acquisllion
Other: Off-site Improvements
SUBTOTAL
Construction
Construction Contract
Bond Premium
Infrastructure Improvements
Hazardous Abate & 1,loniloring
Construcbon Contingency
Sales Taxes
other Construction Cost:
Other Construction Cost:
SUBTOTAL
Development
Appraisal
Archllect/Engineer
HK-Admin
HK-Architectural
HK-Legal
HK-Construction
Environmental Assessment
Geotechnical Study
Boundary & Topographic Sur,ey
Legal
Developer Fee
Project r.tanagement
Technical Assistance
Other: r.tarket Study
Other: Syndication Consultant
Other: Prevadmg Wage l,ionilor
Other: HomeKey Fee
Other: Soft Cost Contingency
SUBTOTAL
Other Development
Rea I Estate Tax
Insurance
Relocation
Tille/ Recording/ Escrow
Permits, Fees & Hookups
lrnpact/l,titigation Fees
Impact Fee Waiver
Development Period Ut1lll1es
Construction Loan Fees
Construction Interest
Other Loan Fees (State HF, etc)
LIHTC Fees
Accounting/Aud II
High Speed Internet Construction
Furnishings
r.t arkeling/Leasin g Expenses
Carrying Costs at Rent Up
Operating Reser;es
Replacement Reser;es:
SUBTOTAL
Tota l Deve lop men t Costs
Total OeVelap<nenl
Co,sls
s ' s 4,790,000
s -
s -
s -s 14,209
s 165,000
s 4,969c209
s 2 1,089,949
s -
s -
s -
s 2,242.466
s -
s -s -
s -
s Zl.332.415
s 4,000
s 546,500
s 75,000
s 30,000
s 75.301
$ 888,,478
s. ~Lsoo
$ .
s -
s 242,500
s 2,200,000
$ -
s .
s 4,000
s 11?500
s 100,000
s -
$ 250,000
$ 4,559,779
s 42,350
s 44,604
s 200,000
s 50,000
s 80,000
s 242.140
s 248,428
s 350,000
s 243,744
Sc 1,021 ,469
-S 30,000
s 130,434
s 25,000
s 95,000
_$ 195,000
s 45,000
s .
s 218,032
s .
s 3,261,401
EXHIBIT "C"
PROJECT BUDGET
Sun Lodge
Fumfno Sources
Ctyof
Residenlilll Cly of Fresno Fresno HA Fresno Fresno HA )n1pa,.;t Fee
Total HOME (HRFC) {SlFRf) HomeKey Waivet"
s -s -s -s -s -s -s 4,790,000 s -$ -s -S4.790,00 0 s
s -s -s . s -s -s -
s -s -s . s -s -s
s . s -s -s -s -s -
s 14 ,209 s -$ -s . s -s -
s 165,000 s -s -s -5 -5 -
S 4,969,208 s -·s -s -$4790,000 s -
S21 .0B9,!'49 s 2,700,000 54,425,00 0 S2.500,000 s -s -
s -s -s -s . s -s -
s -s -s -s -s -s -
s . s -s -s s -s .
s 2 ,242,466 s . s -s . s -s -
s -s -s . s s -s -
s -$ -s -s -s -s .
s -s -s . s . s -s -
s -s -s -5 s -5 .
$23,332,415 $ 2.700,000 $4,425,000 $2,500.000 s . $ -
s 4,000 s -s -s . s -s -
s 546,500 s s . s -s -s .
s 75,000 s -s -s -5 7 5,000 s .
s 30 ,000 s -s . s . s 2,0 ,000 s -
s 75,3 0 1 s -s . s . s 7 5,301 s -
s BSB.47 8 s -$ -5 -5 8.88.47 8 s .
s 51.50 0 s -s . s . s . 5 -
s -s -s . s -s -s -
s . s -5 -s . s . s -
s 242,500 s -s . s -s . s -
s 2,200 .000 s -s -s . s . s -s -s -s -s . s . s -
s -s s . 5 -s . s -
5 4,000 s -s -s . 5 . s -
s 82,500 s . s -s . s -s .
s 100,000 s -s -s -s -s -
s -s -s . 5 . s . s -s 250,000 s -s -s -s -s -
s 4.559,779 s -s . s -$1,0tiS,779 s .
s 42,3:,0 s -s -s . s . s .
s 44,804 5 -s -s . s -s -s 200,000 s -s -s -
s S0,000 s -s . s -s . s .
s BO.ODO s . 5 -s . s . s -s 242,1 40 s -s -5 -s -s. -s 248 ,428 s -s . s -s . 5248.426
s 350 ,000 s . s . s . s -s .
s 243,744 s . s -s -5 -s -
s 1.02 1.469 s -s -s -s -s .
s 30,000 s -s -s -s -s .
s 130 ,434 s . s -s . s . s -s 25,000 s -s . s -s . s -
s 95,000 s -s -s -s -s -
s 195,00 0 s . s . s -s -s -
s 45,000 s . s -s -s -s -
s . s -s -s . s -s -
s 2 18 ,032 s -s -s -
s -s -s -s -s -s .
s 3.26 1,4 01 s -s . s -s . 5248,42 8
Deferred
Develol)el" USB&rlkl..ned
Fee Pa!tneis Equly
s -s -
s . s -
s -s -
s -s .
s -s -
s s 14 ,209
s -s 165,000
s . s 179,209
s s 11,464 .949
s . s -
s s -
s . s .
s -s 2 ,242,466
s -s -
s -s -
s . s -s -s -
s -s 13,707,415
s . s 4 ,000
s -s 546.500
s -s .
s . s -
s . s
s . s -
s . s 6 1,500
s -s .
s . s .
s -s 242,500
S 1,100,000 s 1,100,000
s -s -
s . s -
s -s 4,000
s -s 82,500
s -s I 00 ,000
s . s -
s -s 2:,0 ,000
1 1,100,000 s 2.391 .000
s -s 42,350
s -s 44 ,804
s . s 200,00(1
s -s 50,00 0
s . s 80,000
s. . s 242,140
s -s -
s -s 350.000
s . s 243,744
s -s 1.02 1,469
s . s 30 ,000
s . s 130,434
s . s 2S,OOO
s -s 95.000
s -s 195,000
s -s 45,000
s -s -
s -s 218,032
s -s -
s -s 3,012,973
$ :l!i ,122,604 $:l!i,122,804 S 2,700,000 $4,425,000 $2,500,000 $5,B58,TT9 $248,428 $1 ,100,000 $ 19,290,597
EXHIBIT "D"
EXEMPLAR DECLARATION OF RESTRICTIONS
Recorded at the Request of
and When Recorded Return to:
City of Fresno
Planning and Development Dept.
Housing and Community Development Division
2600 Fresno Street, Room 3065
Fresno, CA 93721-3605
(SPACE ABOVE T HIS LINE FOR RECORDER'S USE ONLY)
The document is exempt from the payment of a recording fee in accordance with Government Code
Sections 6103 and 27383.
APN: 449-270-41
DECLARATION OF RESTRICTIONS
THIS DECLARATION OF RESTRICTIONS (Declaration) is executed as of this __ day of
December, 2022, by the Fresno 1101 Parkway, LP, a California limited partnership
(DECLARANT), in favor of the CITY OF FRESNO, a California municipal corporation (CITY).
WHEREAS, the DECLARANT is the owner of the real estate in the City of Fresno,
County of Fresno, California, located at 1101 N. Parkway Drive, Fresno, CA 93728 (APN :
449-270-41 ), which is more particularly described in EXHIBIT "A" -Property Description,
attached hereto and made a part hereof, including the improvements thereon (Property); and
WHEREAS, pursuant to a certain City of Fresno State and Local Fiscal Recovery
Funds (SLFRF) Agreement dated December_, 2022, incorporated herein by reference
(SLFRF Agreement) and instruments referenced therein, the DECLARANT agrees to utilize,
and the CITY agrees to provide, certain SLFRF from the United States Department of the
Treasury, to the DECLARANT and the DECLARANT agrees to rehabilitate a 98-unit motel
into a 64-unit Affordable rental housing project of which one unit will be reserved for an on-
site property manager, and 11 will be SLFRF-assisted units and reserved as Affordable
Housing units available as Very Low-and Low-Income units, subject to the terms and
conditions set forth in the SLFRF Agreement for Low-Income households earning 185% of
the Federal Poverty Guideline for Household Size.
WHEREAS, the SLFRF regulations promulgated by the Department of the Treasury,
impose certain affordability requirements upon property owned by the DECLARANT, which
affordability restrictions shall be enforceable for a 55-year period; and
WHEREAS, these restrictions are intended to bind the DECLARANT, and all
purchasers of the Property and their successors.
NOW THEREFORE, the 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 Project. All of the restrictions, covenants and limitations will run
with the land and will be binding on all parties having or acquiring any right, title or interest in
the 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, covenant, and
limitations set forth in this Declaration commencing on the date the DECLARANT is notified
by the CITY that the Affordable Unit Household information has been obtained and verified,
constituting the commencement of the 55-year Affordability Period.
1. Declarations. The DECLARANT hereby declares that the Property is 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 SLFRF Agreement, and are established and agreed
upon for the purpose of enhancing and protecting the value of the Property and in
consideration of the CITY entering into the SLFRF Agreement with the 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 the CITY and shall run with the Property and be binding on any future owners
of the Property and inure to the benefit of and be enforceable by CITY. These covenants
and restrictions are as follows:
a. The DECLARANT for itself and its successor(s) on title covenants and
agrees that from the date of the recordation of the Certificate of Completion, until the
expiration of the Affordability Period, it shall cause a minimum of 11 Affordable housing units
to be used as rental affordable housing to Very Low-to Low-Income Households. The
DECLARANT further agrees to file a recordable document setting forth the Project
Completion Date when determined by the CITY. Unless otherwise provided in the
Agreement, the term Affordable Housing shall include, without limitation, compliance with the
following requirements:
i. Nondiscrimination. There shall be no discrimination against nor
segregation of any persons 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 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. The Housing Units constituting the
Affordable Units upon the Project Property shall be leased only to eligible natural persons,
who shall occupy the Affordable housing units as the tenants' principal place of residence.
The forgoing requirement that the tenant of unit occupy the unit as their principal residence
does not apply to (i) persons, other than natural persons, who acquire the Project Property
or portion thereof by foreclosure or deed in lieu of foreclosure; or qualified entities that acquire
the Property or portion thereof with the consent of the CITY.
iii. Household Income Requirements. The 11 Affordable Housing
units constructed on the Project Property may be rented only to a natural person(s) whose
annual Household income at the time of rental is not greater than 185% of the Federal
Poverty Guideline by household's size.
Item (a) above is hereinafter referred to as the Covenant and Restriction.
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 Ra tifi ca ti on . 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 Restriction. The acceptance of a deed of conveyance to the Property shall
constitute an agreement that the Covenant and Restriction, as may be amended or
supplemented from time to time, are accepted and ratified by 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 unless 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 affordability. However, the
requirements with respect to an Affordable Unit 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 of those with whom the former
owner has or had formally, 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 of 55
years from the date of recordation of the Notice of Completion. The failure or delay at any
time of CITY and/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 the
DECLARANT or any future owner of the Property to comply with the Covenant and
Restriction required by this Declaration, as may be amended from time to time, the CITY
shall be entitled to recover its respective costs and reasonable attorney's fees incurred in
connection with such default or failure.
7. Waiver. Neither the DECLARANT nor any future owner of the Property may
exempt itself from liability for failure to comply with the Covenant and Restriction required in
this Declaration; provided however, that upon the transfer of the Property, the transferring
owner may be released from liability hereunder, upon the CITY's written consent of such
transfer, which consent shall not be unreasonably withheld, conditioned, or delayed.
8. Seve rab ili ty . The invalidity of the Covenant and Restriction 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 enforceable to the greatest extent permitted by law.
9. Pro nouns . 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 the DECLARANT.
12. Recordation. The DECLARANT acknowledges that this Declaration will be
filed of record in the Office of the Recorder of County of Fresno, State of California.
13. Capita lized Terms . All capitalized terms used in this Declaration, unless
otherwise defined herein, shall have the meanings assigned to such terms in the SLFRF
Agreement.
14. Headings. The headings of the articles, sections, and paragraphs used in this
Declaration are for convenience only and shall not be read or construed to affect the meaning
or construction of any provision.
15. Declarant Liability. The DECLARANT shall not have any personal liability for
the obligations under this Declaration. The sole recourse of the CITY shall be exercised by
its rights against the Property pursuant to the Deed of Trust and the CITY shall have no right
to seek or recover any deficiency amount from DECLARANT.
II
IN WITNESS WHEREOF, DECLARANT has executed this Declaration of Restrictions
on the date first written above.
DECLARANT:
FRESNO 1101 PARKWAY, LP,
a California limited partnership
By: Silvercrest, Inc.,
a California non-profit public benefit corporation,
its Managing General Partner
By :
Name: Tyrone Roderick Williams
Title: Secretary/Director
By: Fresno 1101 Parkway AGP, LLC,
a California limited liability company,
its Administrative General Partner
By: Housing Authority of the City of Fresno, California,
a public body corporate and politic,
its sole Member and Manager
By:
Name: Tyrone Roderick Williams
Title: Chief Executive Officer
(Attach notary certificate of acknowledgment)
EXHIBIT "A"
Legal Description
To Declaration of Restrictions
The land described herein is situated in the State of California, County of Fresno, City of
Fresno, described as follows:
Parcel One :
Parcel C of Parcel Map No . 71-34, according to the map thereof recorded in Book 2 Page 90 of Parcel Maps,
Fresno County Records , together with all improvements thereon.
Parcel Two:
A non-exclusive easement appurtenant for access, ingress and egress by vehicles (including, without limitation,
buses and trucks) and pedestrians over that portion of Parcel B of said Parcel Map No . 7134, more particularly
described as follows :
Beginning at the most Easterly corner of said Parcel B; thence South 53• 19' 25 " West, along the Southeasterly
line of said Parcel B, a distance of 115.45 feet; thence North 90° 00' 00" West a distance of 98.41 feet; thence
South oo• 00' 00 " East a distance of 20.65 feet to a point on the South line of said Parcel B; thence North 90° 00'
OO"West, along said South line, a distance of 27.00 feet; thence North oo• 00' 00" East a distance of 42.65 feet;
thence North 90° 00' 00" East a distance of 118.12 feet; thence North 53° 19' 25" East a distance of 60.25 feet;
thence North 38° 02' 15" East a distance of 33.87 feet; thence North 52° 52' 16" East a distance of 15.24 feet to a
point on the Northeasterly line of said Parcel B; thence South 36° 40' 35" East, along said Northeasterly line, a
distance of 31.05 feet to the point of beginning.
Parcel Three :
A non-exclusive easement over that portion of the hereinabove described easement as shown on Exhibit A-I
attached to that Partnership Grant Deed recorded September 9, 1992 as Instrument No. 92135559 of Official
Records, and made a part hereof for the maintenance of an existing encroachment for supporting pillars, wood
beams and a roof overhang of a portico near the entrance of Parcel C; provided, however, that upon the
removal, destruction or relocation of the currently existing portion on Parcel C, both of the foregoing easements
shall expire and shall be of no force or effect.
APN : 449-270-41
EXHIBIT "E"
CERTIFICATE OF COMPLETION
Recorded at the Request of
and When Recorded Return to :
City of Fresno
Planning and Development Department
Housing and Community Development Division
2600 Fresno Street, Room 3065
Fresno, CA 93721-3605
(SPACE ABOVE THIS LINE FOR RECORDE R'S USE ONLY)
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: 449-270-41
City of Fresno
By : ______________ _
Planning and Development Department
Date: ---------------
Certificate of Completion
APN: 449-270-41
Recitals:
A. By a State and Local Fiscal Recovery Funds (SLFRF) Agreement dated December
___ , 2022, (SLFRF Agreement) between the City of Fresno, a municipal corporation (CITY), and
the Fresno 1101 Parkway, LP, a California limited partnership (DEVELOPER), the DEVELOPER
agreed to rehabilitate the existing 98-unit Days Inn Motel and property into the 64-unit Sun Lodge
apartment complex of which one unit will be reserved for an on-site property manager, and of which 11
(3-bed/1-bath) units are to be SLFR-assisted units, and related on-site and off-site improvements upon
the Property described in EXHIBIT "A" attached to the SLFRF Agreement, and made part hereof by
this reference (the "Property"), with assistance of SLFRF while meeting the affordable housing, income
targeting and other requirements of the SLFRF and according to the terms and conditions of the SLFRF
Agreement and Loan Documents and other documents/instruments referenced therein.
B. The SLFRF Agreement was recorded on _____ , as Instrument No . ___ _
in the Official Records of Fresno County, California.
C. Under the terms of the SLFRF Agreement, after the DEVELOPER completes the Project,
the DEVELOPER may ask the CITY to record a Certificate of Completion.
D. The DEVELOPER has asked the CITY to furnish the 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 the Project as set forth in the SLFRF Agreement.
NOW THEREFORE:
1. The CITY certifies that the DEVELOPER commenced construction of the Project on July
25, 2022 and completed construction of the Project on ____ 20XX, and has done so in full
compliance with the SLFRF 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 SLFRF Agreement.
II
IN WITNESS WHEREOF, CITY has executed this Certificate of Completion as of this
____ day of _________ , 20.XX.
CITY OF FRESNO
By : ____________ _
Planning & Development Department
(Attach notary certificate of acknowledgment)
ATTEST:
TODD STERMER, CMC
CITY CLERK
By : _____________ _
__________ __. Deputy
Date : -------------
FRESNO 1101 PARKWAY, LP,
a California limited partnership
By : Silvercrest, Inc.,
Date: ------------
APPROVED AS TO FORM :
ANDREW JANZ
Interim City Attorney
By : _______________ _
Tracy N. Parvanian, Supervising Deputy City Attorney
Date: ______________ _
a California non-profit public benefit corporation,
its Managing General Partner
By:
Tyrone Roderick Williams
Secretary/Director
By: Fresno 1101 Parkway AGP, LLC,
a California limited liability company,
its Administrative General Partner
By: Housing Authority of the City of Fresno, California,
a public body corporate and politic,
its sole Member and Manager
By :
Tyrone Roderick Williams
Chief Executive Officer Date :
(Attach notary certificate of acknowledgment) ----------
(Attach notary certificate of acknowledgment)
EXHIBIT "F"
PROMISSORY NOTE
DO NOT DESTROY THIS NOTE: When paid, this note, must be surrendered to Borrower for
Cancellation.
Loan Amount: $2,500 ,000.00
Fresno, California
PROMISSORY NOTE
Secured by Deed of Trust
Date : -------
For value received, the undersigned, Fresno 1101 Parkway, LP, a California limited partnership,
(BORROWER), promises to pay to the order of the City of Fresno, a California municipal corporation,
(Lender), the sum of Two Million Five Hundred Thousand Dollars and 00/100 ($2,500,000.00), to the
extent that such funds are loaned to the BORROWER, with interest on the unpaid principal balance
running from the date of disbursement with simple interest at the rate of 3% annually in accordance
with the State and Local Fiscal Recovery Funds (SLFRF) Agreement dated ____ , 2022, entered
into between the Lender and the BORROWER, (Agreement), with the balance of principal and interest
due and payable on or before the earlier of (i) the BORROWER's uncured default under the Agreement
with respect to the Project, or (ii) 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.
This is a Residual Receipts Note. Principal and interest payments equal to 13% of annual 100% of
Residual Receipts, to the extent that Residual Receipts exist and are itemized in audited financial
statements supplied to Lender with each payment hereunder, shall be due 180 days following the end
of the year in which the Project is completed, and said payment continues 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 days after such payments are due shall constitute a default under the
Agreement with respect to the Project and this Note. It shall not be a default hereunder if no payment
was made because the Project Residual Receipts did not exist for any particular year. Additionally,
any failure to timely submit to Lender annual audited financial statements with the management notes
and residual receipts calculation within thirty (30) days after such financial statements are due shall
constitute a default under the Agreement with respect to the Project and Note.
Residual Receipts means in each operating year 100% of the sum of: (i) all cash received by the Project
from rents, lease payments, and all sources generally considered in the apartment industry to be "other
income" (which does not include payments for optional services provided by BORROWER), (ii)
payments from HUD under a Housing Assistance Program Section 8 Contract, if any, excluding tenant
security or other deposits required by law to be segregated and restricted, and interest on reserves not
available for distribution, and the net proceeds of any insurance (including rental interruption
insurance), other than fire and extended coverage and title insurance, to the extent not reinvested, less
the sum of: (i) all payments on account of any loans (including unpaid principal and accrued reasonable
interest) made for the benefit of the Project by the BORROWER, (ii) contributions to any prudent and
reasonable cash reserves for working capital, operating expenses, capital expenditures, repairs,
replacements and anticipated expenditures, in such amounts as may be reasonably required by the
lenders to the Project for the operation of the Project not to exceed the amount required by the Project's
permanent lender, annually adjusted in proportion to the average increase of the following indices (a)
the United States Bureau of Labor Statistics for Hourly Wage Rates of all workers in manufacturing,
and (b) of all Commodity Wholesale Prices, said indices shall be re-defined to the mutual satisfaction
of the parties in the event of change in form and basis of indices, all increases shall use the indices for
calendar year 2010 as their base; and (iii) the payment of principal and interest, and any associated
fees, expenses, and costs, with respect to the senior Financing.
Operating Expenses means actual, reasonable and customary (for comparable quality, newly
constructed rental housing developments in Fresno County) costs, fees and expenses directly incurred,
paid, and attributable to the operation, maintenance and management of the Affordable 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, repayment of any completion or operating loans including any and all
deferred fees (including deferred developer fee) per the Budget, made to the BORROWER, its
successors or assigns, limited partner Asset Management Fee, GP Partnership Management Fee, and
other actual operating costs and capital costs which are incurred and paid by the BORROWER, but
which are not eligible for payment from reserve accounts.
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.
Note Maturity Date means 55 years from the Note date.
This Note, and any extensions or renewals hereof, is secured by a Deed of Trust and Assignment of
Rents, on real estate in Fresno County, California, that provides for acceleration upon stated events,
dated as of the same date as this Note, and executed in favor of and delivered to the Lender (Deed of
Trust), insured as a 5th position lien on the Property.
Time is of the essence. It will be a default under this Note if the 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 the BORROWER
with respect to any sum payable under this Note and the failure to cure such default within ten days,
the BORROWER shall 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 Documents give rise to the right to accelerate the balance of the
indebtedness, then, at the option of Lender, this Note or any notes or other instruments that may be
taken in renewal or extension of all or any part of the indebtedness will immediately become due without
any further presentment, 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 the BORROWER and shall
accept any cure offered by such limited partners on the same basis as it would accept a cure from
Borrower. Any limited partner of BORROWER has the right, but not the obligation, to cure any default
on behalf of 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 interest and 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.
The BORROWER agrees to pay all costs including, without limitation, reasonable attorney fees,
incurred by the holder of this Note in the successful enforcement 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 the BORROWER.
Any notice, demand, or request relating to any matter set forth herein shall be in writing and shall be
given as provided in the Agreement.
No delay or omission of the 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. The Lender may waive any of the conditions in this Note and no waiver will be
deemed to be a waiver of the 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 construed to
be a waiver of or acquiescence in or consent to any preceding or subsequent default.
The Deed of Trust provides as follows:
Except as provided herein or in the Agreement, if the Trustor/Grantor shall sell, convey
or 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 payable.
The Lender, with the consent of the BORROWER and the limited partner of BORROWER, 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 the Lender;
and the Lender will then be forever relieved from any liability or responsibility in the matter, but the
Lender will retain all rights and powers given by this Note with respect to Property not transferred.
If any one or more of the provisions in this Note is held to be invalid, illegal, or unenforceable in any
respect by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining
provisions will not in any way be affected or impaired. This Note will be binding on and inure to the
benefit of the BORROWER, Lender, and their respective successors and assigns.
The 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 the Lender and BORROWER may consent to in a writing duly signed by the BORROWER
or Lender or its authorized agents.
This Note shall be nonrecourse to the BORROWER and all its constituent partners and may be prepaid
at any time without penalty. Neither the BORROWER nor any of its general or limited partners 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 the Lender shall have no right to seek or recover any deficiency amount from
the BORROWER or any partner of the BORROWER.
II
IN WITNESS WHEREOF, the BORROWER has caused this Promissory Note to be executed
as of the date and year first above written.
FRESNO 1101 PARKWAY, LP,
a California limited partnership
By: Silvercrest, Inc.,
a California non-profit public benefit corporation,
its Managing General Partner
By:
Name: Tyrone Roderick Williams
Title: Secretary/Director
By: Fresno 1101 Parkway AGP, LLC,
a California limited liability company,
its Administrative General Partner
By: Housing Authority of the City of Fresno, California,
a public body corporate and politic,
its sole Member and Manager
By:
Name: Tyrone Roderick Williams
Title: Chief Executive Officer
Date: -----
(Attach notary certificate of acknowledgment)
EXHIBIT "G"
EXEMPLAR DEED OF TRUST
Recorded at the Request of
and When Recorded Return to :
City of Fresno
Planning and Development Department
Housing and Community Development Division
2600 Fresno Street, Room 3065
Fresno , CA 93721-3605
TITLE ORDER NO. _____ _
A .P .N .:449-270-41
(SPACE ABOVE THIS LINE FOR RECORDER'S USE ON LY)
ESCROW NO. _______ _
DEED OF TRUST ASSIGNMENT OF RENTS
THIS DEED OF TRUST (Deed of Trust) made this_ day of December, 2022, by and between Fresno
1101 Parkway, LP, a California limited partnership (Borrower), Fidelity National Title Company, a
California Corporation (Trustee), and the City of Fresno, a Municipal Corporation
organized and existing under the laws of the State of California whose address is 2600 Fresno Street,
Fresno, California 93721 (Beneficiary and Lender).
The Borrower, in consideration of the indebtedness herein recited and the trust herein created, does
irrevocably grant and convey to Trustee, in trust, with power of sale, all the Borrower's right, title, and
interest now owned or hereafter acquired in the real property (Land) known known as 1101 Parkway
Drive, Fresno, CA 93728, located in Fresno County, California and more particularly described in the
Attached EXHIBIT "A", incorporated by reference to the Land later acquired during the term of this Deed
of Trust will be subject to this Deed of Trust), together with the rents, issues, and profits, subject
however, to the right, power, and authority granted and conferred on the Borrower in this Deed of Trust
to collect and apply the rents, issues, and profits; and
The Borrower also irrevocably grants, transfers, and assigns to the Trustee, in trust, with power of sale,
all of the Borrower's right, title and interest now owned or later acquired to the following property
(including the rights or interests pertaining to the property) located at the Property:
(1) All buildings ("Buildings") and improvements now or later on the land and all easements,
rights, appurtenances, water and water rights, minerals and mineral rights; all machinery,
equipment, appliances, and fixtures for the generation or distribution of air, water, heat,
electricity, light, fuel, or refrigeration or for ventilating or sanitary purposes or for the
exclusion of vermin or insects or for the removal of dust, refuse, or garbage; all wall safes,
built-in furniture, and installations, window shades and blinds, light fixtures, fire hoses and
brackets, screens, linoleum, carpets, furniture, furnishings, fixtures, plumbing, laundry
tubs and trays, refrigerators, heating units, stoves, water heaters, incinerators, and
communication systems and installations for which any Building is specially designed; all
of these item, whether now or later installed, being declared to be for all purposes of this
Deed of Trust a part of the Land, the specific enumerations in this Deed of Trust not
excluding the general; and
(2) The rents, issues, profits, and proceeds relating to the foregoing; and
(3) The Property to the extent not included on clauses (1) and (2) above.
TO SECURE, in order of priority that the Beneficiary determines:
(1) Payment of the indebtedness evidenced by a note of the Borrower of even date with this
Deed of Trust in the principal amount of Two Million Five Hundred Thousand Dollars and
00/100 ($2,500,000.00) (Note), payable to the Beneficiary or order, and all extensions,
modifications, or renewals of that Note;
(2) Payment of the interest on that indebtedness according to the terms of the Note;
(3) Payment of all other sums (with interest as provided herein) becoming due and payable
to the Beneficiary or the Trustee pursuant to the terms of this Deed of Trust;
(4) Performance of every obligation contained in this Deed of Trust, the Note, the SLFRF
Agreement dated the _ of_, 2022 (SLFRF Agreement), and its related documents,
the Declaration of Restrictions dated the _ of __ , 2022, any instrument now or later
evidencing or securing any indebtedness secured by this Deed of Trust, and any
agreements, supplemental agreements, or other instruments of security executed by
Borrower as of the same date of this Deed of Trust or at any time subsequent to the date
of this Deed of Trust for the purpose of further securing any indebtedness amending this
Deed of Trust or any instrument secured by this Deed of Trust (collectively, the "Loan
Documents"); and
(5) Payment of all other obligations owed by Borrower to Beneficiary that by their terms recite
that they are secured by this Deed of Trust, including those incurred as primary obligor
or as guarantor.
The Borrower covenants that the Borrower is lawfully seized of the estate hereby conveyed and has
the right to grant and convey the Property, and that the Property is unencumbered except for
encumbrances of record. The Borrower covenants that the Borrower will forever warrant and will
defend the grant made in this Deed of Trust against all claims and demands, subject to encumbrances
of record. The Borrower covenants that the Borrower will maintain and preserve the lien of this Deed
of Trust until all the indebtedness under the Note is paid in full.
The Borrower represents and warrants to the Beneficiary that as of the date of this Deed of Trust, the
Borrower is a validly existing and is in good standing under the laws of the State of California and is
qualified to do business in the State of California; that the Borrower has the requisite power and
authority to own, develop, and operate the property; and that the Borrower is in compliance with all
laws, regulations, ordinances, and orders of public authorities applicable to it.
The Borrower represents and warrants to the Beneficiary that as of the date of this Deed of Trust the
execution, delivery, and performance by the Borrower and the borrowings evidenced by the Note are
within the power of the Borrower; have been duly authorized by all requisite corporate or partnership
actions, as appropriate; has received all necessary governmental approvals; and will not violate any
provision of law, any order of any court or agency of government, the charter documents of the
Borrower, or any indenture , agreement, or any other instrument to which the Borrower is a party or by
which the Borrower or any of it property is bound, nor will they conflict with, result in a breach of, or
constitute (with due notice and lapse of time) a default under any indenture, agreement, or other
instrument, or result in the creation or imposition of any lien, charge, or encumbrance of any nature on
any of the property or assets of the Borrower, except as contemplated by the provisions of the Loan
Documents; and each of the Loan Documents, when executed and delivered to the Beneficiary, will
constitute a valid obligation, enforceable in accordance with its terms.
The Borrower represents and warrants to the Beneficiary that as of the date of this Deed of Trust that
the Property is not used principally for agricultural or grazing purposes; that the Borrower is engaged
in the development and operation of Improvements to the Property; and that the principal purpose of
the Loan is the construction of affordable housing and improvements to the Property.
UNIFORM COVENANTS. The Borrower and the Lender covenant and agree as follows:
1.
2 .
3 .
Payment of Principa l. The Borrower shall promptly pay when due the principal indebtedness
evidenced by the Note.
Ha zard Insu rance . The Borrower, at its sole cost and expense, for the mutual benefit of the
Borrower and Beneficiary, shall keep the improvements now existing or hereafter erected on the
Property insured against loss by fire, hazards included within the term "extended coverage", and
such other hazards as the Lender may require and in such amounts and for such periods as the
Lender may require as set forth in the SLFRF Agreement referenced above. The insurance
carrier providing the insurance shall be chosen by the Borrower subject to approval by the
Lender; provided that such approval shall not be unreasonably withheld. All insurance policies
and renewals thereof shall be in a form acceptable to the Lender and shall include a
standard mortgage clause in favor of and in a form acceptable to the Lender. The Lender shall
have the right to hold the policies and renewals thereof, subject to the terms of any mortgage,
deed of trust or other security agreement with a lien which has priority over this Deed of Trust.
In the event of loss, the Borrower shall give prompt notice to the insurance carrier and the
Lender. The Lender may make proof of loss if not made promptly by the Borrower. If the
Property is abandoned by the Borrower, or if the Borrower fails to respond to the Lender within
30 days from the date notice is mailed by the Lender to the Borrower that the insurance carrier
offers to settle a claim for insurance benefits, the Lender is authorized to collect and apply the
insurance proceeds at the Lender's option either to restoration or repair of the Property or to the
sums secured by this Deed of Trust.
Preservation and Mai ntenance of Property . Leasehol ds : Co ndom iniums : Planne d Unit
Develo pmen ts. The Borrower shall keep the Property in good repair and shall not commit waste
or permit impairment or deterioration of the Property and shall comply with the provisions
of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a
condominium or a planned unit development, the Borrower shall perform all of the Borrower's
obligations under the declaration or covenants creating or governing the condominium or
planned unit development, the by-laws and regulations of the condominium or planned unit
development, and constituent documents. The Borrower shall not permit overcrowded
conditions to exist as defined by the U.S. Department of Housing and Urban Development.
4. Protection of Lender's Security. If the Borrower fails to perform the covenants and agreements
contained in this Deed of Trust, or if any action or proceeding is commenced which materially
affects the Lender's interest in the Property, then the Lender, at the Lender's option, upon
notice to the Borrower, may make such appearances, disburse such sums, including reasonable
attorney's fees, and take such action as is necessary to protect the Lender's interest. If the
Lender requires mortgage insurance as a condition of making the loan secured by this Deed
of Trust, Borrower shall pay the premiums required to maintain such insurance in effect until
such time as the requirement for such insurance terminates in accordance with the Borrower's
and Lender's written agreement or applicable laws. Any amounts disbursed by the Lender
pursuant to this Paragraph 4 shall become additional indebtedness of the Borrower secured by
this Deed of Trust. Unless the Borrower and Lender agree to other terms of payment, such
amounts shall be payable upon notice from the Lender to the Borrower requesting payment
thereof. Nothing contained in this paragraph 4 shall require the Lender to incur any expense or
take any action hereunder.
5 . Inspection. The Lender may make or cause to be made reasonable entries upon and inspections
of the Property, provided that the Lender shall provide the Borrower notice prior to any such
inspection specifying reasonable cause therefore related to the Lender's interest in the Property.
6 . Condemnation . The proceeds of any award or claim for damages, direct or consequential, in
connection with any condemnation or other taking of the Property, or part thereof, or for
conveyance in lieu of condemnation, are hereby assigned and shall be paid to the Lender,
subject to the terms of any mortgage, deed of trust or other security agreement with a lien which
has priority over this Deed of Trust.
7. Borrower Not Released: Forbearance By Lender Not a Waiver. The extension of the time for
payment or modification of amortization of the sums secured by this Deed of Trust granted by
the Lender to any successor in interest of the Borrower shall not operate to release, in any
manner, the liability of the original Borrower and the Borrower's successors in interest. The
Lender shall not be required to commence proceedings against such successor or refuse to
extend time for payment or otherwise modify amortization of the sums secured by this Deed of
Trust be reason of any demand made by the original Borrower and the Borrower's successors
in interest. Any forbearance by the Lender in exercising any right or remedy hereunder, or
otherwise afforded by applicable law, shall not be waiver of or preclude the exercise of any such
rig ht of remedy.
8 . Successors and Assignees Bound: Joint and Several Liability; Co-Signers. The covenants and
agreements herein contained shall bind, and the rights hereunder shall inure to the respective
successors and assignees of the Lender and the Borrower. All covenants and agreements of
the Borrower shall be joint and several. Any borrower who co-signs this Deed of Trust, but does
not execute the Note is: (a) co-signing this Deed of Trust only to grant and convey that the
Borrower's interest in the Property of Trustee under the terms of this Deed of Trust, and
(b) not personally liable on the Note or under this Deed of Trust or the Note, without that
Borrower's consent and without releasing that Borrower or modifying this Deed of Trust as to
that Borrower's interest in the Property.
9 . Transferabi lity. One of the inducements to the Beneficiary for making the Loan is the identity of
the Borrower. The existence of any interest in the Property other than the interests of the
Borrower and Beneficiary and any encumbrance permitted in this Deed of Trust, even though
subordinate to the security interest of the Beneficiary, and the existence of any interest in the
Borrower other than those of the present owners, would impair the Property and the security
interest of the Beneficiary, and, therefore, except as provided herein or in the Loan Documents,
the Borrower will not sell, convey, assign, transfer, alienate, or otherwise dispose of its interest
in the Property, either voluntarily or by operation of law, or agree to do so, without the prior
written consent of the Beneficiary. The consent to one transaction by the Beneficiary will not be
deemed a waiver of the right to require consent to further or successive transactions. If the
Bo rrower is a corporation , any sale, transfer, or disposition of 50% or more of the voting interest
of the Borrower or of any entity that directly or indirectly owns or controls ihe Borrower, including,
without limitation, the parent company of the Borrower, and the parent company of the parent
company of the Borrower, will constitute a sale of the Property for purposes of this article. Except
as permitted in Section 16 hereof, if the Borrower is a partnership any change or addition of a
general partner of the Borrower, change of a partnership interest of the Borrower with the
exception of a limited partner transfer, which shall not require the Beneficiary's consent, or sale,
transfer, or disposition of 50% or more of the voting interest or partnership interest of any general
partner of the Borrower or of any corporation, partnership or entity that directly or indirectly owns
or controls any general partner of the Borrower, including, without limitation, each parent
company of a general partner of the Borrower and each parent company of any parent company
of a general partner of the Borrower, will constitute a sale of the Property for purposes of this
section. If the Borrower is a limited liability company, any change of the manager or any sale,
transfer or disposition of 50% or more of the partnership interests of the Borrower, or disposition
of 50% or more of the voting interest of the Borrower or of any corporation, partnership or entity
that directly or indirectly owns or controls any member of the Borrower, including without
limitations, each parent company of the Borrower and each parent company of any parent
company of a member of the Borrower, will constitute a sale of the Property for purposes of this
section. Any transaction in violation of this section will cause all Indebtedness, irrespective of
the maturity dates, at the option of the Beneficiary and without demand or notice, immediately
to become due, together with any prepayment premium in accordance with the terms of the Note
except as prohibited by law.
10 . Notice. Except for any notice required under applicable law to be given in another manner, (a)
any notice to the Borrower and to the limited partner of Borrower provided for in
this Deed of Trust shall be given by delivering it or by mailing such notice by certified mail
addressed to the Borrower at the Property Address or at such other address as the Borrower
may designate by notice to the Lender as provided herein, and (b) any notice to the Lender shall
be given by certified mail to the Lender's address stated herein or to such other address as the
Lender may designate by notice to the Borrower as provided herein. Any notice provided for in
this Deed of Trust shall be deemed to have been given to the Borrower or Lender when given
in the manner designated herein.
11 . Govern ing Law ; Severability . The state and local laws applicable to this Deed of Trust shall be
the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not
limit the applicability of Federal law to this Deed of Trust or if the Note conflicts with applicable
law, such conflict shall not affect other provisions of this Deed of Trust or the Note which can be
given effect without the conflicting provision, and to this end the provisions of this Deed of Trust
and the Note are declared to be severable. As used herein, "costs", "expenses", and "attorney's
fees" include all sums to the extent not prohibited by applicable law or limited herein.
12. Borrower's Copy. The Borrower shall be furnished a conformed copy of the Note and of this
Deed of Trust at the time of execution or after recordation thereof.
NON-CONFORMING COVENANTS. Borrower and Lender further covenant and agree as follows:
13 . Acceleration ; Remed ies . Upon the Borrower's breach of any covenant or agreement of the
Borrower in this Deed of Trust, including the covenants to pay when due any sums secured by
this Deed of Trust, the Note or the Program restrictions, the Lender, prior to acceleration shall
give notice to the Borrower and to the limited partner of Borrower as provided in paragraph 10
hereof specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, not less
than ten (10) days from the date notice is mailed to the Borrower, by which such breach must
be cured or thirty (30) days for a non-monetary default; and (4) that failure to cure such breach
on or before the date specified in the notice may result in acceleration of the sums secured by
this Deed of Trust and sale of the Property. The notice shall further inform the Borrower of the
right to reinstate after acceleration and the right to bring a court action to assert the nonexistence
of a default or any other defense of the Borrower to acceleration and sale. If the breach is not
cured on or before the date specified in the notice, the Lender, at the Lender's option may declare
all of the sums secured by this Deed of Trust to be immediately due and payable without further
demand and may invoke the power of sale and any other remedies permitted by applicable law.
The Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing
the remedies provided in this paragraph 13, including, but not limited to, reasonable attorney's
fees. If the Lender invokes the power of sale, the Lender shall execute or cause the Trustee to
execute a written notice of the occurrence of an event of default and of the Lender's election to
cause the Property to be sold and shall cause such notice to be recorded in each county in which
the Property or some part thereof is located. The Lender or the Trustee shall mail copies of such
notice in the manner prescribed by applicable law. The Trustee shall give public notice of sale
to the persons and in the manner prescribed by applicable law. After the lapse of such
time as may be required by applicable law, the Trustee, without demand on the Borrower, shall
sell the Property at public auction to the highest bidder at the time and place and under the terms
designated in the notice of sale in one or more parcels and in such order as Trustee
may determine. The Trustee may postpone sale of all or any parcel of the Property by public
announcement at the time and place of any previously scheduled sale. The Lender or the
Lender's designee may purchase the Property at any sale. The Trustee shall deliver to the
purchaser the Trustee's deed conveying the Property so sold without any covenant or warranty,
expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the
truth of the statements made therein. The Trustee shall apply the proceeds of the sale in the
following order: (a) to all reasonable costs and expenses of the sale, including, but not limited
to, reasonable Trustee's and attorney's fees and costs of title evidence; (b) to all sums secured
by this Deed of Trust; and (c) the excess, if any, to the person or persons legally entitled thereto.
14. Borrower's Right to Reinstate. Notwithstanding the Lender's acceleration of the sums secured
by this Deed of Trust due to the Borrower's breach, the Borrower shall have the right to have
any proceedings begun by the Lender to enforce this Deed of Trust discontinued at any time
prior to five (5) days before sale of the Property pursuant to the power of sale contained in this
Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (a) the
Borrower pays the Lender all sums which would be then due under this Deed of Trust and the
Note had no acceleration occurred; (b) the Borrower cures all breaches of any other covenants
or agreements of Borrower contained in this Deed of Trust; (c) the Borrower pays all reasonable
expenses incurred by the Lender and Trustee in enforcing the covenants and agreements of
Borrower in paragraph 13 hereof, including but not limited to, reasonable attorney's fees; and
(d) the Borrower takes such action as the Lender may reasonably require to assure that the lien
of this Deed of Trust, Lender's interest in the Property and the Borrower's obligation to pay the
sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure
by the Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force
and effect as if no acceleration had occurred.
15 . Nonrecourse. Neither the Borrower, nor any of Borrower's partners, 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.
16 . Withd rawal, Removal and/or Replacemen t. The General Partner of the Borrower may be
removed pursuant to the terms of a partnership agreement due to violation by a general partner
of the terms of a partnership agreement, or a voluntary withdrawal from a partnership by a
general partner, and any transfer of limited partnership interest or 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 . Lien of Deed of Trust. The Beneficiary agrees that the lien of this Deed of Trust shall be
subordinated 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 terms, must terminate
upon foreclosure under this Deed of Trust or upon a transfer of the Property by instrument of
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 . Assignment of Rent: Appointment of Rece iver: Lender in Possession . As additional security
hereunder, the Borrower hereby assigns to the Lender the rents of the Property, provided that
the Borrower shall, prior to acceleration under paragraph 13 or abandonment of the Property,
have the right to collect and retain such rents as they become due and payable. Upon
acceleration under paragraph 13 hereunder or abandonment of the Property, the Lender, in
person, by agent or by judicially appointed receiver shall be entitled to enter upon, take
possession of and manage the Property and to collect the rents of the Property including those
past due. All rents collected by the Lender or the receiver shall be applied first to premiums on
receiver's bonds and reasonable attorney's fees, and then to the sums secured by this Deed of
Trust. The Lender and the receiver shall be liable to account only for those rents actually
received.
19 . Reconveyance . Upon payment of all sums secured by this Deed of Trust, the Lender shall
request the Trustee to reconvey the Property and shall surrender this Deed of Trust, and all
notes evidencing indebtedness secured by this Deed of Trust to Trustee. The Trustee shall
reconvey the Property without warranty and without charge to the person or persons legally
entitled thereto. Such person or persons shall pay all costs of recordation, if any.
20 . Substitute Trustee. The Lender at the Lender's option, may from time to time, appoint a
successor trustee to any Trustee appointed hereunder by an instrument executed and
acknowledged by the Lender and recorded in the Fresno County Recorder's Office. The
instrument shall contain the name of the original the Lender, Trustee and Borrower, the book
and page where this Instrument is recorded and the name and address of the successor trustee.
The successor trustee shall, without conveyance of the Property, succeed to all the title, powers
and duties conferred upon the Trustee herein and by applicable law. This procedure for
substitution of trustee shall govern to the exclusion of all other provisions for substitution.
21 . Statement of Obl igation . The Lender may collect a fee not to exceed fifty dollars ($50.00) for
furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California.
22 . Event of Defau lt. Prior to declaring or taking any remedy permitted under Loan Documents,
(where applicable) the Borrower's limited partners shall have an additional period of not less
than 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 30 days, the Borrower's
limited partner shall have such additional time as reasonably necessary to remedy or cure such
default, but in no event more than 90 days from the expiration of the initial 30 day period above,
and if the Borrower's limited partners reasonably believe that in order to cure such default, the
Borrower's limited partner must remove one or more of the Borrower's general partners in order
to cure such default, the Borrower's limited partner shall have an additional thirty (30) days
following the effective date of such removal to cure such default. To the extent that there is a
conflict between this paragraph 22 and any remedy permitted by the SLFRF Agreement, Loan
Documents, or Loan, the terms of this paragraph 22 shall control.
The following events are each an "Event of Default":
(a) Default in the payment of any sum of principal or interest when due under the Note or any
other sum due under the Loan Documents .
(b) Failure to maintain insurance as provided in Section 2 hereof.
(c) The failure (without cure during the applicable period, if any, for cure) of any the Borrower
to observe, perform, or discharge any obligation, term, covenant, or condition of any of
the Loan Documents, any agreement relating to the Property, or any agreement or
instrument between any Loan Party and the Beneficiary.
(d) The assignment by the Borrower, as lessor or sublessor, as the case may be, of the rents
or the income of the Property or any part of it (other than to Beneficiary) without first
obtaining the written consent of the Beneficiary.
(e) The following events:
(i) the filing of any claim or lien against the Property or any party of it, whether or not
the lien is prior to this Deed of Trust, and the continued maintenance of the claim
or lien for a period of 30 days without discharge, satisfaction, or adequate bonding
in accordance with the terms of this Deed of Trust;
(ii) the existence of any interest in the Property other than those of the Borrower,
Beneficiary, any tenants of the Borrower, and any one listed in a title exception
approved by the Beneficiary in writing; or
(iii) the sale, hypothecation, conveyance, or other disposition of the Property except
with the express written approval of the Beneficiary, any of which will be an Event
of Default because the Borrower's obligation to own and operate the Property is
one of the inducements to the Beneficiary to make the Loan;
(f) Default under any agreement to which the Borrower is a party, which agreement relates
to the borrowing of money by the Borrower from Beneficiary.
(g) Any presentation or warranty made by any Loan Party or any other Person under this
Deed of Trust or in, under, or pursuant to the Loan Documents, is false or misleading in
any material respect as of the date on which the representation or warranty was made.
(h) Any of the Loan Documents, at any time after their respective execution and delivery and
for any reason, cease to be in full force or are declared null and void, or the validity or
enforceability is contested by the Borrower or any stockholder or partner of the Borrower,
or the Borrower denies that it has any or further liability or obligation under any of the
Loan Documents to which it is a party.
If one or more Event of Default occurs and is continuing, then the Beneficiary may declare all
the Indebtedness to be due and the Indebtedness will become due without any further
presentment, demand, protest, or notice of any kind, and the Beneficiary may:
(i) in person, by agent, or by a receiver, and without regard to the adequacy of
security, the solvency of the Borrower, or the existence of waste, enter on and take
possession of the Property or any party of it in its own name or in the name of
Trustee, sue for or otherwise collect the rents, issues, and profits, and apply them,
less costs and expenses of operation and collection, including reasonable
attorneys' fees, upon the Indebtedness, all in any order that the Beneficiary many
determine. The entering on and taking possession of the Property, the collection
of rents, issues, and profits, and the application of them will not cure or waive any
default or notice of default or invalidate any act done pursuant to the notice;
(ii) commence an action to foreclose this Deed of Trust in the manner provided by law
for the foreclosure of mortgages of real property;
(iii) deliver to the Trustee a written declaration of default and demand for sale, and a
written notice of default and election to cause the Property to be sold, which notice
the Trustee or the Beneficiary will cause to be filed for record;
(iv) with respect to any Personalty, proceed as to both the real and personal property
in accordance with the Beneficiary's rights and remedies in respect of the Land, or
proceed to sell the Personalty separately and without regard to the Land in
accordance with the Beneficiary's rights and remedies; or
(v) exercise any of these remedies in combination or any other remedy at law or in
equity.
23 . Prot ecti on of Secur ity. If an Event of Default occurs and is continuing, the Beneficiary or Trustee,
without notice to or demand upon the Borrower, and without releasing the Borrower from any
obligations or defaults may:
(a) enter on the Property in any manner and to any extent that either deems necessary to
protect the security of this Deed of Trust;
(b) appear in and defend any action or proceeding purporting to affect, in any manner, the
Obligations or the Indebtedness, the security of this Deed of Trust, or the rights or powers
of Beneficiary or Trustee;
(c) pay, purchase, or compromise any encumbrance, charge, or lien that in the judgment of
Beneficiary or Trustee is prior or superior to this deed of Trust; and
(d) pay expenses relating to the Property and its sale, employ counsel, and pay reasonable
attorneys' fees.
The Borrower agrees to repay on demand all sums expended by the Trustee or the Beneficiary
pursuant to this section with interest at the Note Rate of Interest, and those sums, with interest, will
be secured by this Deed of Trust.
24 . Effect of Assig nmen t. The assignment of rents as provided herein will not impose on the
Beneficiary any duty to produce rents, issues, or profits from the Property, or cause the
Beneficiary to be:
II
(a) a "mortgagee-in-possession" for any purpose;
(b) responsible for performing any of the obligations of the lessor under any of the Leases;
or
(c) responsible for any waste committed by lessees or any other parties, any dangerous or
defective condition of the Property, or any negligence in the management, upkeep, repair,
or control of the Property.
The Beneficiary will not be liable to the Borrower or any other party as a consequence of the
exercise of the rights granted to the Beneficiary under this assignment or the failure of the
Beneficiary to perform any obligation of the Borrower arising under Leases.
IN WITNESS WHEREOF, Borrower has executed this Deed of Trust on the day and year set forth
above. By signing below, Borrower agrees to the terms and conditions as set forth above.
BORROWER:
FRESNO 1101 PARKWAY, LP,
a California limited partnership
By: Silvercrest, Inc.,
a California non-profit public benefit corporation,
its Managing General Partner
By:
Name: Tyrone Roderick Williams
Title: Secretary/Director
By: Fresno 1101 Parkway AGP, LLC,
a California limited liability company,
its Administrative General Partner
By: Housing Authority of the City of Fresno, California,
a public body corporate and politic,
its sole Member and Manager
By:
Name: Tyrone Roderick Williams
Title: Chief Executive Officer
Date : --------------
(Attach notary certificate of acknowledgment)
EXHIBIT "A"
Legal Description
To Deed of Trust
The land described herein is situated in the State of California, County of Fresno, City of
Fresno, described as follows:
Parcel One :
Parcel C of Parcel Map No. 71-34, according to the map thereof recorded in Book 2 Page 90 of Parcel Maps,
Fresno County Records, together with all improvements thereon.
Parcel Two :
A non-exclusive easement appurtenant for access, ingress and egress by vehicles (including, without limitation,
buses and trucks) and pedestrians over that portion of Parcel B of said Parcel Map No. 7134, more particularly
described as follows:
Beginning at the most Easterly corner of said Parcel B; thence South 53 ° 19' 25 " West, along the Southeasterly
line of said Parcel B, a distance of 115.45 feet; thence North 90° 00' 00" West a distance of 98.41 feet; thence
South 00° 00' 00" East a distance of 20 .65 feet to a point on the South line of said Parcel B; thence North 90° 00'
OO"West, along said South line, a distance of 27 .00 feet; thence North oo• 00' 00" East a distance of 42 .65 feet;
thence North 90° 00' 00" East a distance of 118.12 feet; thence North 53° 19' 25" East a distance of 60.25 feet;
thence North 38° 02' 15" East a distance of 33.87 feet; thence North 52 ° 52' 16" East a distance of 15.24 feet to a
point on the Northeasterly line of said Parcel B; thence South 36° 40' 35" East, along said Northeasterly line, a
distance of 31.05 feet to the point of beginning.
Parcel Three :
A non -exclusive easement over that portion of the hereinabove described easement as shown on Exhibit A-I
attached to that Partnership Grant Deed recorded September 9, 1992 as Instrument No. 92135559 of Official
Records, and made a part hereof for the maintenance of an existing encroachment for supporting pillars, wood
beams and a roof overhang of a portico near the entrance of Parcel C; provided, however, that upon the
removal, destruction or relocation of the currently existing portion on Parcel C, both of the foregoing easements
shall expire and shall be of no force or effect.
APN : 449-270-41
The following is a copy of provisions (1) to (14), inclusive, of the fictitious deed of trust, recorded
in each county in California, as stated in the foregoing Deed of Trust and incorporated by
reference in said Deed of Trust as being a part thereof as if set forth at length therein
To Protect the Security of This Deed of Trust, Truster (Borrower) 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 therefor, 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 violations of law to cultivate, irrigate, fertilize, fumigate, prune and do all other
acts which from the 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 the Beneficiary fire insurance satisfactory
to and with loss payable to the Beneficiary. The amount collected under any fire
or other insurance policy may be applied by the Beneficiary upon indebtedness
secured hereby and in such order as the Beneficiary may determine, or at option
of the Beneficiary the entire amount so collected or any part thereof may be
released to the Borrower. 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 the Beneficiary or the Trustee, and to
pay all costs and expenses including cost of evidence of title and attorney's fees
in a reasonable sum, in any such action or proceeding in which the Beneficiary
or the Trustee may appear, and in any suit brought by the Beneficiary to foreclose
this Deed of Trust.
(4) To pay at least ten (10) 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 the Borrower fail to make any payment or to do any act as herein
provided, then the Beneficiary or the Trustee, but without obligation to do so and
without notice to or demand upon the Borrower and without releasing the
Borrower 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
the Beneficiary or the 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 the Beneficiary or the 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 the
Beneficiary or the Trustee, with interest from date of expenditure at the amount
allowed by law in effect at the date hereof, 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 the Beneficiary who may apply or release such moneys received by it
in the 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, the
Beneficiary does not waive its rights 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 therefor and without
notice, upon written request of the Beneficiary and presentation of this Deed and
said Note for endorsement, and without affecting the personal liability of any
person for payment of the indebtedness secured hereby, the Trustee may
reconvey any part of said property, consent to the making of any map or plot
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 the Beneficiary state that all sums secured
hereby have been paid, and upon surrender of this Deed and said Note to the
Trustee for cancellation and retention and upon payment of its fees, the 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 in such reconveyance may be described as
"The person or persons legally entitled thereto." Five (5) years after issuance of
such full reconveyance, the Trustee may destroy said note and this Deed (unless
directed in such request to retain them).
(10) That as additional security, the Borrower hereby gives to and confers upon
the Beneficiary the right, power and authority, during the continuance of these
Trusts, to collect the rents, issues and profits of said property, reserving unto the
Borrower the right, prior to any default by the Borrower in payment of any
indebtedness secured hereby or in performance of any agreement hereunder, to
collect the rents, issues and profits of said property, reserving unto the Borrower
the right, prior to any default by the Borrower in payment of any indebtedness
secured hereby or in performance of any agreement hereunder, to collect and
retain such rents, issues and profits as they become due and payable. Upon any
such default, the 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 its 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 attorney's fees. Upon any indebtedness secured hereby,
and in such order as the 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 done pursuant to such notice.
(11) That upon default by the Borrower in payment of any indebtedness secured
hereby or in performance of any agreement hereunder. The Beneficiary may
declare all sums secured hereby immediately due and payable by delivery to the
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 the
Trustee shall cause to be filed for record. The Beneficiary also shall deposit with
Trustee this Deed, said note 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, the Trustee, without demand on the Borrower, 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 lawful money of the United States, payable at
time of sale. The 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 any matters or facts shall be conclusive proof
of the truthfulness thereof. Any person, including the Borrower, Trustee, or the
Beneficiary as hereinafter defined, may purchase at such sale.
After deducting all costs, fees and expenses of the Trustee and of this Trust,
including cost of evidence of title in connection with sale, the 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 person or persons legally entitled thereto.
(12) The Beneficiary, or any successor in ownership of any indebtedness secured
hereby, may from time to time, 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. Said instrument must contain the name
of the original Borrower, Trustee and the Beneficiary hereunder, the book and
page where this Deed is recorded and the name and address of the new Trustee.
(13) That this Deed 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 the Beneficiary
herein in this Deed, whenever the context so requires, 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, duly executed and
acknowledged, is made a public record as provided by law. The 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 the Borrower, Beneficiary or Trustee shall
be a party unless brought by Trustee.
DO NOT RECORD
REQUEST FOR FULL RECONVEYANCE
To be used only when note has been paid:
To __________ Title Company, Trustee:
Dated ---------------
The undersigned is the legal owner and holder of all indebtedness secured by the within Deed
of Trust. All sums secured by said Deed of Trust have been fully paid and satisfied; and you
are hereby requested and directed, on payment to you of any sums owing to you under the
terms of said Deed of Trust, to cancel all evidences of indebtedness, secured by said Deed of
Trust, delivered to you herewith together with said Deed of Trust, and to reconvey, without
warranty, to the parties designated by the terms of said Deed of Trust, the estate now held by
you under the same.
MAIL RECONVEYANCE TO:
By ___________________ _
Do not lose or destroy this Deed of Trust OR THE NOTE which it secures. Both must be
delivered to the Trustee for cancellation before reconveyance will be made.