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Home My WebLink AboutCDC/1999-19 1 RESOLUTION NO: CDC 199q-19 2 3 4 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING THE ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM CONTRACTORS LIST AND AUTHORIZING THE AGENCY EXECUTIVE DIRECTOR TO EXECUTE THE NEW ARR PARTICIPATION AGREEMENT, IN SUBSTANTIAL FORMAT ATTACHED HERETO, WITH EACH APPROVED ARR CONTRACTOR 5 6 7 8 9 BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 10 11 12 SECTION 1. The Agency Executive Director is hereby authorized and directed 13 to execute on behalf of said Agency the ARR Agreement with the eight (8) ARR Contractors as depicted in the staff report attached hereto, marked Exhibit "A" and incorporated herein by reference as though fully set forth at length. 14 15 16 SECTION 2. The authorization to execute the above referenced Agreements is 17 rescinded if the parties to the Agreement fail to execute it within sixty (60) days of the passage 0 this resolution. 18 19 IIII IIII IIII IIII IIII 20 21 22 23 24 NAME ANR Industries, Inc. AFCOM Park Vill e Partners Alvarez & Associates KSR Financial Nei borhood Housin Services Pacific Gold Coast Real R.E. Blewett Com anies Vizcarra Construction BUSINESS LOCATION 10170 Artesia Place, Bellflower,Ca. PO Box 1568, Sunset Beach, Ca. 201 N. "E" Street, San Bernardino, Ca. 11661 San Vicente Boulevard, Los An eles, Ca. 1390 N. "D" Street, San Bernardino, Ca. 556 N. Diamond Bar, Diamond Bar, Ca. 2305 Reddin Wa , U land, Ca. 1135 E. Alosta Avenue, Glendora, Ca. 25 26 27 28 Page 1 of 2 CDC 1999-19 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING THE ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM CONTRACTORS LIST AND AUTHORIZING THE AGENCY EXECUTIVE DIRECTOR TO EXECUTE THE NEW ARR PARTICIPATION AGREEMENT, IN SUBSTANTIAL FORMAT ATTACHED HERETO, WITH EACH APPROVED ARR CONTRACTOR 2 3 4 5 6 7 I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community 8 Development Commission of the City of San Bernardino at a joint regular meeting 9 thereof, held on 21st day of June , 1999 by the following vote, 10 to wit: 11 12 COMMISSION MEMBERS: AYES 13 ESTRADA x LIEN 14 MCGINNIS x SCHNETZ x 15 DEVLIN 16 ANDERSON x MILLER x 17 18 19 NAYS ABSTAIN ABSENT x x day of 20 The foregoing resolution is hereby approved this June . 1999. 21 22 23 les, Chairperson omm ity Development Commission City of San Bernardino 24 25 26 Approved as to form and Legal Content: Agency Counsel 27 28 ~~ By: \. -' - 3f"\~ ~,""'ol Page 2 of 2 CDC 1999-19 ACQUISITION, REHABILITATION RESALE (ARR) AGREEMENT By and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO And ACQUISITION, REHABILIT A nON RESALE (ARR) ("ARR Participant") ~ Per Gary Van Osdel - The following documents are exhibits only, and do not require execution. )1 CDC 1999-19 TABLE OF CONTENTS 1. [100] SUBJECT OF AGREEMENT .................................................................................. 2 A. [101] Purpose of Agreement......................................................................................... 2 B. [102] The HUD Units ...................................................................................................3 C. [103] Parties to the Agreement ..................................................................................... 3 1. [104] The Agency ................................................................................................... 3 2. [105] The Participant .............................................................................................. 3 3. [106] Prohibition Against Change in Ownership, Management and Control of the Participant............................................................................................................... 4 4. [107] Benefits ofProject......................................................................................... 4 II. [200] AGENCY ASSISTANCE .........................................................................................4 A. [201] The Project .......................................................................................................... 4 B. [202] Agency Assistance .............................................................................................. 5 C. [203] Term of Agreement ............................................................................................. 5 D. [204] Participant Assistance ......................................................................................... 5 E. [205] HUD Escrow .......................................................................................................7 F. [206] Affordable Housing Cost ....................................................................................7 III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS .................................. 7 A. [301] Rehabilitation by Participant............................................................................... 7 1. [302] Cost of Rehabilitation.................................................................... ................ 8 2. [303] Bodily Injury and Property Damage Insurance............................................. 8 3. [304] Rights of Access............................................................................................ 9 4. [305] Local, State and Federal Laws ...................................................................... 9 5. [306] Anti-Discrimination During Rehabilitation .................................................. 9 B. [307] Taxes, Assessments, Encumbrances and Liens................................................... 9 C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit............................... 9 CDC 1999-19 D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders.................... 10 [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation.................................................................................................... 10 E. [311] Right of Agency to Satisfy Other Liens on the Project..................................... 10 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS ......... 11 A. [401] Uses - Covenants Running with the Land......................................................... 11 B. [402] Maintenance of the HUD Units......................................................................... 11 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation............................................................................. 13 V. [500] GENERAL PROVISIONS...................................................................................... 13 1. [501] Termination and Breach.................................................................................... 13 2. [502] Notice ................................................................................................................ 14 3. [503] Conflicts ofInterest; Nonliability ..................................................................... 14 4. [504] Inspection of Books, Records and Reports ....................................................... 14 5. [505] Indemnification ................................................................................................ 15 VI. [600] SPECIAL PROVISIONS ........................................................................................ 15 1. [601] Submission of Documents to Agency for Approval......................................... 15 2. [602] Successors in Interest ........................................................................................ 15 VII. [700] ENTIRE AGREEMENT, WAIVERS ..................................................................... 15 VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCy........................... 16 [801] Time for Acceptance ............................................................................................... 16 EXHIBIT A - EXHIBIT B - EXHIBIT C - EXHIBIT D - EXHIBIT E EXHIBIT F Map of ARR Zone Current Household Income Listings For Qualified Homebuyers ARR Program - Steps and Process for Circulation of HUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant HUD Escrow Documents (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents ARR Rehabilitation Standards for Each HUD Unit HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents CDC 1999-19 ACOUlSITION. REHABILITATION. & RESALE (ARR) P ARTICIP ATION AGREEMENT THIS AGREEMENT(the "Agreement") this day of , 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and (the "Participant"). Agency and Participant hereby agree as follows: RECITALS WHEREAS, Agency is a California Redevelopment Agency engaged in carrying out its public purposes, including, without limitation, increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City"); and WHEREAS, the U.S. Department of Housing & Urban Development (HUD) has designated that certain area within the City shown on the map attached hereto as Exhibit "A" as the Acquisition, Rehabilitation and Resale (ARR) Revitalization Zone (the "Zone"), and has granted the City exclusivity to purchase directly from HUD, certain single family dwelling units owned by HUD REO's (the "HUD Units") at a discount off the As Is Value of each such HUD Unit (the "ARR Program") which the Agency as administrator for the City under the ARR Program, shall concurrently transfer title to the HUD Unit to the Participant for rehabilitation and resale pursuant to the terms and conditions of this Agreement; and WHEREAS, the Agency has also been designated by the Mayor and Common Council as the administrator of the HOME Program (the National Affordable Housing Act of 1990) on behalf of the City, with specific intent to expand the supply of decent, safe, sanitary and affordable housing, within a City's jurisdiction; and WHEREAS, the Agency may use either federal HOME Program funds or State Redevelopment low and moderate income funds to financially assist qualified first-time homebuyers (herein "Qualified Homebuyer") in the acquisition of HUD Units purchased directly from the Participant; provided however that the value of the HUD Unit to be acquired by a Qualified Homebuyer for which the Agency may provide purchase money mortgage assistance under either the HOME Program or under the other affordable housing assistance programs of the Agency (herein "MAP Program") must have a value that does not exceed 95% of the area median purchase price; and WHEREAS, with respect to the HUD Units, Agency desires to implement the ARR Program pursuant to which: a. Agency would buy one or more HUD Units directly from HUD on condition that the Participant purchases each such HUD Unit from the Agency at the discounted price which HUD offers to the Agency; and 1 CDC 1999-19 b. The Participant shall promptly rehabilitate the HUD Unit in accordance with rehabilitation standards set forth herein, and thereupon sell the HUD Unit, to an eligible low or moderate income buyer (e.g., a Qualified Homebuyer) at affordable housing costs pursuant to State or Federal requirements, depending on the source of funding (i.e., if Qualified Homebuyer uses HOME funds their income shall not exceed 80% of median income and State Redevelopment Low/Moderate Income Funds shall not exceed 120% of median income); and c. Prior to purchasing a HUD Unit from Agency, Participant shall provide satisfactory evidence to the Agency of all financing which shall include all costs associated with the acquisition, rehabilitation and disposition of the HUD Unit by the Participant. Based on receipt of such evidence of financing, the Agency shall accept or reject any offer received from the Participant to acquire a HUD Unit. The Participant shall complete the steps noted in Exhibit "C", attached hereto and incorporated herein by reference with respect to its acquisition and disposition of each HUD Unit to a Qualified Homebuyer; and d. If the Agency accepts any offer from Participant to purchase a HUD Unit, the Agency and Participant will open escrows (the "HUD Escrow") which shall close concurrently such that the escrow by which HUD shall transfer a HUD Unit to the Agency shall close concurrently with the escrow through which the Agency shall transfer that HUD Unit to the Participant; and e. Promptly after the closing of the HUD Escrow, the Participant will rehabilitate the HUD Unit within the timeframe herein, and sell it at affordable costs (the "Affordable Housing Costs") to a person or family of low or moderate income for owner occupancy purposes at the close of an escrow by and between the Participant and the Qualified Homebuyer (the "New Home Escrow"). The maximum income criteria applicable to a Qualified Homebuyer will be based on the type of financial assistance, if any, which the Agency provides to the respective Qualified Homebuyer at the close of a New Home Escrow (i.e., State Redevelopment Low/Moderate Income Funds up to 120% of median income or HOME Funds up to 80% of median income). The current 1999 Income Limits are noted in Exhibit "B". WHEREAS, Participant is a well established housing provider that has the experience, qualifications and desires to participate in the above described ARR Program. NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, Agency and Participant agree as follows: 1. [100] SUBJECT OF AGREEMENT A. [101] Purpose of Agreement The purpose of this Agreement is to effectuate various redevelopment plans for the City of San Bernardino (the "City"), by providing for Agency assistance to Participant in connection with 2 CDC 1999-19 the acquisition, rehabilitation and disposition of the HUD Units hereinafter set forth. The acquisition, rehabilitation and resale of the HUD Units pursuant to this Agreement is in the vital and best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting on behalf of the Agency, has determined that the acquisition, rehabilitation, resale and uses contemplated by this Agreement will benefit the low-and moderate- income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Program and the goals and objectives of the affordable housing programs of the Agency. B. [102] The HUD Units Each HUD Unit shall be located within the Zone and shall be designated from time to time by the Agency. Each of the HUD Units shall be pre-approved by the Agency and identified on a list in writing, as available for transfer to the Participant subject to the terms of this Agreement. No HUD Unit shall be transferred to the Participant unless the Participant has submitted a timely and complete acceptance to purchase such HUD Unit to the Agency, as set forth herein. It is the express intent of the parties hereto that the Participant will attempt to acquire those HUD Units within the Zone which evidence the highest degrees of blight, are most in need of redevelopment, and are financially feasible. The Agency's purchase approval of each HUD Unit will be based upon compliance with this intent. C. [103] Parties to the Agreement 1. [104] The Agency The Agency is a public body, corporate and politic, exerclSlng governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et seq.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [105] The Participant The Participant is licensed to do business in the State of California. The principal office and mailing address of the Participant for purposes of this Agreement is: 3 CDC 1999-19 3. [106] Prohibition Against Change in Ownership. Management and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure for the benefit of the Agency. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 106 shall terminate with respect to each HUD Unit at the close of the New Home Escrow for that particular HUD Unit. Nothing in this Section 106 shall act to restrict the sale of rehabilitated HUD Units to Qualified Homebuyers if such sale is otherwise in compliance with the terms of this Agreement. 4. [107] Benefits of Proiect The Agency has determined that the purchase, rehabilitation and sale of HUD Units in accordance with this Agreement will eliminate blight, provide needed low- and moderate-income housing to the various project areas of the Agency, as well as the City and also increase homeownership opportunities for low- to moderate income households thereby stabilizing the community and decreasing rental housing in the City. II. [200] AGENCY ASSISTANCE A. [201] The Proiect The Agency agrees that with regard to any HUD Unit that it has approved in writing, and which the Participant has agreed to purchase as evidenced by the completed form of a "HUD Unit Purchase Agreement" in the form included in Exhibit "D", that the Agency shall, subject to the terms and conditions of this Agreement, acquire the HUD Unit from HUD and shall thereafter immediately transfer title to the Participant through the HUD Escrow. 4 CDC 1999-19 The Project, and specifically the Agency's obligation to acquire any HUD Unit, shall only arise to the extent funds are available from the Participant (or the "Participant's Lender" as hereinafter defined), to provide for the acquisition, rehabilitation and resale of the HUD Unit by the Participant at the close of the HUD Escrow. Moreover, the Agency shall only offer to transfer HUD Units to the Participant to the extent that the Agency, in its sole discretion, deems that the purchase price, associated rehabilitation and disposition costs are fair, equitable, comparable and that the Participant has funds sufficient to close the HUD Escrow and thereafter to complete the rehabilitation of the HUD Unit. B. [202] Agencv Assistance In order to assist in the implementation of the Project and marketability of the Project, the Agency agrees to provide certain Agency assistance (the "Agency Assistance") as follows: (i) provide for the concurrent transfer of each HUD Unit which the Participant may agree to acquire as evidenced by a completed HUD Unit Purchase Agreement; provided however that purchase price for each HUD Unit and all escrow costs in connection with the HUD Escrow for that particular HUD Unit shall be payable solely by the Participant; and (ii) in addition to acquiring and thereafter immediately transferring title to any given HUD Unit to the Participant, the Agency may provide on a first come-first served basis to any Qualified Homebuyer certain down payment and closing costs, not to exceed ten percent (10%) of the Participant's sales price of the HUD Unit being sold, from either available funds of the Agency under the HOME Program or the Agency MAP Program, as applicable. c. [203] Term of Agreement The term of the Agreement shall be one (1) year from the date of this Agreement and ending June 30, 2000, except as set forth in Section 501. The Executive Director of the Agency (the "Director") shall have the option to renew this Agreement for an additional one (1) year period provided Participant is in compliance with the provisions of this Agreement. D. [204] Participant Assistance The Participant will select HUD Units based upon a list of available HUD Units prepared from time to time by the Agency. The Participant shall be solely responsible for obtaining all information in connection with the proposed acquisition and rehabilitation of each HUD Unit. Participant will take all action necessary to ensure the availability of funding for the acquisition, rehabilitation and resale of each HUD Unit prior to submitting any offer to purchase to the Agency and shall provide evidence to the Agency of such financing at the time it delivers a completed HUD Unit Purchase Agreement to the Agency (see Exhibit "D"). Participant will be responsible for the preparation and submission of all necessary paperwork required in connection with the acquisition of each HUD Unit (i.e., all of the HUD Escrow documents as assembled in Exhibit "D") and all other necessary documentation required for the close of escrow for any HUD Unit to be purchased by Participant from the Agency. Participant shall have not more than seven (7) days from receipt of the HUD listing from the Agency to select any HUD Unit for purchase and return 5 CDC 1999-19 the HUD Unit Purchase Agreement for such HUD Unit to the Agency as executed by the Participant. The Participant shall cause each HUD Escrow to be closed within forty-five (45) days from the date of execution of the HUD Unit Purchase Agreement and the other HUD Escrow documents by the Participant. No extension of time for the close of a HUD Escrow will be granted by the Agency and if a HUD Escrow does not close within the forty-five (45) day period after the HUD Unit Purchase Agreement has been fully executed for any reason not attributed to the fault or delay ofHUD or the Agency, then in such event this Agreement will be subject to termination. The Participant agrees that upon its acquisition of each HUD Unit from by the Agency, the Participant shall promptly commence and thereafter diligently complete the rehabilitation of the HUD Unit. Unless a longer period of time is approved by the Agency in its sole discretion at the time of the submission of the Participant acceptance of an offer to purchase a HUD Unit, the Participant shall complete the work of rehabilitation of each such HUD Unit within ninety (90) days following the close of the HUD Escrow. (i) Scope of Rehabilitation - The Participant shall rehabilitate all HUD Units acquired from the Agency in accordance with the ARR Rehabilitation Standards noted in Exhibit "E". Furthermore, the Participant shall prepare a Scope of Rehabilitation for each HUD Unit setting forth in detail the work that Participant agrees to perform on each HUD Unit purchased by Participant. The Scope of Rehabilitation shall be submitted by the Participant to the Agency concurrently with the executed HUD Unit Purchase Agreement and related HUD Escrow documents. (ii) HOME Program or Agency MAP Program Assistance to Oualified Homebuyer - All HUD Units acquired and rehabilitated under the ARR Program, wherein the Qualified Homebuyer has applied for either HOME Program or Agency MAP Program assistance, will be reserved for sale to and occupancy by low- and moderate-income households, to be sold at affordable housing cost as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, or Part 92 HOME Investment Partnerships Subpart 7. (92.206), which requires that the value of the HOME assisted property to be acquired by the Qualified Homebuyer must have a value that does not exceed 95% of the area median purchase price of the HUD Unit, whichever funding source is used for the Participant's Qualified Homebuyer. (iii) Disposition of HUD Units and Oualified Homebuyer Eligibility - The Participant will cause the marketing of each HUD Unit to prospective purchasers. Participant will screen prospective purchasers for eligibility in accordance with this Agreement, specifically to insure that Buyer meets the applicable HOME Program and/or Agency MAP Program Income Guidelines in accordance with Exhibit "B". Participant shall cause the opening of a New Home Escrow with prospective purchasers and will take all steps necessary to ensure each New Home Escrow is closed within forty-five (45) days from the date of its opening. At the close of the New Home Escrow, the ARR Covenant shall be fully executed and filed for recordation. The form of the ARR Covenant is included in Exhibit "D". 6 CDC 1999-19 E. [205] HUD Escrow The Participant is under no obligation to purchase any HUD Unit from the Agency and the Agency is under no obligation to transfer any HUD Unit to the Participant unless the Participant has first completed a HUD Unit Purchase Agreement for the particular HUD Unit as identified on a list of HUD Units as submitted by the Agency to the Participant. The parties will open simultaneous escrows (e.g., the HUD Escrow) to provide the acquisition by the Agency of each specific HUD Unit which the Participant has agreed to purchase from the Agency. The parties shall execute the escrow instructions and documents as set forth in Exhibit "D" as may be necessary to accomplish the foregoing. F. [206] Affordable Housing Cost For the purposes of complying with this Agreement, all HUD Units shall be sold to low- and moderate-income households (e.g., Qualified Homebuyers) at affordable housing costs as such term is defined in Health and Safety Code Section 50052.5, or Section 8, (24 CFR 813), whichever is applicable to the Qualified Homebuyer's HOME Program or Agency MAP Program assistance, if any. The Participant agrees to be bound by all limitations for Qualified Homebuyers as set forth and in each Agency Quitclaim Deed for a HUD Unit. The form of the Agency Quitclaim Deed is included in Exhibit "D". The Participant shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency by a date no later than forty-five (45) days following the opening of the New Home Escrow, including but not limited to the HOME Program or Agency MAP Program Checklist, Verification for Applicant Eligibility, First-Time Homebuyer Disclosure Statement, Application Affidavit as applicable under the HOME Program or the Agency MAP Program as included in Exhibit "F". III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS A. [301] Rehabilitation bv Participant Participant and Agency agree that the central purpose of this Agreement it to provide for quality rehabilitation of each HUD Unit purchased from the Agency in a manner consistent with the terms and standards of this Agreement. Each HUD Unit acquired by the Participant shall be rehabilitated in accordance with the rehabilitation standards noted in Exhibit "E", attached hereto and incorporated herein. With respect to each HUD Unit, the Agency shall approve in writing all specifications, and plans, if any, including but not limited to landscaping plans, designs, and specifications of each HUD Unit to be rehabilitated as well as the proposed Marketing Plan for each HUD Unit prior to the commitment of the Agency to acquire any HUD Unit pursuant to a HUD Unit Purchase Agreement. Such approval of the Agency shall be evidenced by the Director in his/her reasonable discretion as consistent with the goals and objectives of the ARR Program, or his/her designee. 7 CDC 1999-19 1. [302] Cost of Rehabilitation The cost of undertaking the Project, including the costs of acquisition, rehabilitation, marketing and sales of each HUD Unit shall be borne solely by Participant. The Agency shall have no obligation to pay for any cost of the Project. The Participant acknowledges and agrees that the profit, if any, to be made by Participant from the disposition of each HUD Unit to a Qualified Homebuyer shall be limited to no more than fifteen percent (15%) of the gross sales price at the time resale of each such HUD Unit after rehabilitation to a Qualified Homebuyer. 2. [303] Bodilv Iniury and Property Damage Insurance Participant shall indemnify defend and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency as additional insureds for claims for damages arising from the Project. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on any HUD Unit or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 8 CDC 1999-19 3. [304] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City as designated by the Director shall have the right of access to each HUD Unit, without charge or fee, at normal construction hours during the period of work for the purposes of the inspection of the work being performed in constructing the rehabilitation on the HUD Unit. The Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 304 resulting from the gross negligence or willful misconduct of the City or Agency while on the HUD Unit. This Section 304 shall not be deemed to diminish or limit any right which the City or Agency may have by operation of law irrespective of the Agreement. Nothing in this Section 304 shall be deemed to make either the City or the Agency a guarantor of the work of rehabilitation or improvement of any HUD Unit. 4. [305] Local. State and Federal Laws Participant shall carry out the Project and all related activities on any HUD Unit in conformity with all applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. 5. [306] Anti-Discrimination During Rehabilitation Participant, for itself and successors and assigns, agrees that in the rehabilitation of the HUD Unit provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [307] Taxes, Assessments, Encumbrances and Liens Prior to the issuance of a Certificate of Occupancy for any HUD Unit, Participant shall not place or allow to be placed on such HUD Unit any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on a HUD Unit, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to a Qualified Homebuyer. C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit 1. Prior to the recordation of a Certificate of Completion by the Participant for a HUD Unit, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of any HUD Unit. This prohibition shall not be deemed to prevent a transfer of a 9 CDC 1999-19 HUD Unit to a Qualified Homebuyer or the granting of temporary or permanent easements or permits to facilitate the rehabilitation of the Project. 2. Upon obtaining a Certificate of Occupancy from the City for a completed rehabilitation of a HUD Unit, the Participant shall sell such HUD Unit to a Qualified Homebuyer in accordance with and subject to the restrictions set forth in this Agreement. 3. The deed or other instrument of transfer by the Participant to any purchasers of the HUD Unit shall require that the unit be owner occupied by persons living in the units as their principal residences and shall further require that such unit shall remain available at affordable housing costs to the families of low- and moderate-income for a period of not less than ten (10) years subject to any other exceptions as may be provided by the Agency. 4. The Participant may not rent or lease any HUD Unit to a third party and during the time that the Participant may hold title to a HUD Unit, no person may use the HUD Unit for any residential dwelling purpose. D. [309] Mortgage, Deed of Trust. Sale and Financing; Rights of Holders [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation Mortgages, deeds of trust other encumbrances of each HUD Unit are to be permitted before completion of the rehabilitation of a HUD Unit but only for the purpose of securing loans of funds to be used by the Participant for financing the acquisition or rehabilitation of improvements on the HUD Unit. Participant shall not enter into any other conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar lending institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 310, executed by the Director. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. E. [311] Right of Agencv to Satisfy Other Liens on the Proiect Prior to the completion of the rehabilitation on any given HUD Unit, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on a HUD Unit which are not otherwise permitted under this Agreement, Agency shall have the right, but not the obligation, to satisfy any such lien or encumbrance. 10 CDC 1999-19 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS A. [401] Uses - Covenants Running with the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to any HUD Unit, that for the period of time set forth in the Agency Quitclaim Deed, each of the HUD Units acquired by Participant shall be devoted to and available for sale solely to persons or families with an income which are very low, low and moderate, as those terms are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "C", or 24 CFR 813 whichever funding source is applicable to the Participant's prospective Qualified Homebuyer for the HUD Unit. The Participant further covenants and warrants that Participant shall undertake the rehabilitation on the HUD Units in accordance with the standards set forth in this Agreement. Participant covenants to obtain all necessary permits and rehabilitate each HUD Unit in conformity with all applicable laws. Failure to obtain all necessary permits shall be a default under this Agreement. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any HUD Unit, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any of the HUD Units. The foregoing covenants shall run with the land. These covenants shall be expressly incorporated in the Quitclaim Deed from the Agency to the Participant. B. [402] Maintenance of the HUD Units Maintenance Condition of Each HUD Unit. Between the date of the close of each HUD Escrow and the date of the close of the New Home Escrow for each such HUD Unit the Participant for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of each HUD Unit which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of close of a HUD Escrow, there is an occurrence of an adverse condition on any area of a HUD Unit which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as 11 CDC 1999-19 identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Participant has failed to comply with the provision of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the HUD Unit and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HUD Unit authorized by this Section shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in Subsection(c), below. (b) Graffiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or improvement on a HUD Unit which is visible from any public right-of-way adjacent or contiguous to the HUD Unit, shall be removed by the Participant by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HUD Unit and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HUD Unit authorized by this Subsection(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection( c ),below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HUD Unit, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably necessary to restore the HUD Unit to the maintenance standard required under Subsection(a) or Subsection(b), including attorneys fees and costs of the Office of Agency Counsel (including salaries and wages of the legal staff and pursuant of this Office of Agency Counsel) as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section, shall be a covenant running with the land, and each HUD Unit, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section shall be deemed to preclude the Participant from making any alteration, addition, or other change to any structure or improvement or landscaping on the HUD Unit, provided that such changes comply with applicable zoning and building regulations of the City. 12 CDC 1999-19 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement with respect to each Participant HUD Unit shall remain in effect for the term as set forth in the Agency Quitclaim Deed. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PROVISIONS 1. [501] Termination and Breach (a) Termination Without Default or Breach. This Agreement may be terminated for the convenience of by either party who is not then in default upon thirty (30) days notice to the other party; provided however, that for any HUD Unit for which a HUD Escrow is then open, such HUD Escrow transaction shall be closed and the HUD Unit shall thereafter be rehabilitated and offered for resale to a Qualified Homebuyer as set forth in this Agreement. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or 13 COC 1999-19 more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary . 2. [502] Notice Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party under this Agreement shall be in writing and shall be delivered to the appropriate party by personal service or u.s. Mail at its address as follows: Participant: Agency: Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 92401 3. [503] Conflicts of Interest N onliabilitv No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participate, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. 4. [504] Inspection of Books. Records and Reports Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to any HUD Unit as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to any HUD Unit as pertinent to the purposes of the Agreement. 14 eDe 1999-19 The Participant shall provide quarterly reports to the Agency regarding all HUD units acquired and sold under this Agreement. 5. [505] Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the Agency's and the City's members, officials, employees and agents from and against any and all claims or liability arising from Participant's actions under this Agreement or from the conduct of Participant's business or from any activity, work or things done, permitted or suffered by Participant and shall further indemnify and hold harmless the Agency and City and their officers, employees and agents from and against any and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this Agreement arising from any negligent or wrongful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to environmental conditions, that may arise as a result of the Agency's acquisition and/or ownership of any HUD Unit that is the subject of the Agreement. VI. [600] SPECIAL PROVISIONS 1. [601] Submission of Documents to Agencv for Approval Whenever this Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 2. [602] Successors in Interest The terms, covenants, conditions and restriction of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. VII. [700] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Exhibit "A" through Exhibit "F", which together with this Agreement constitute the entire understanding and agreement of the parties. 15 CDC 1999-19 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city statues, or it is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this agreement shall not be affected thereby. All waivers of the provisions of this Agreement must be in writing by the Director of the Agency or the Participant, and all amendments thereto must be in writing by the Director of the Agency or the Participant, except that the Director may only agree to non-substantive changes hereto with concurrence by Agency Special Counsel. Substantial changes to this Agreement shall require the prior approval of the governing body of the Agency. Each individual signing below represents and warrants that he or she has the authority to execute this Agreement on behalf of and bind the party helshe purports to represent. VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [801] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Director as evidenced by the date first above shown. IIII IIII IIII IIII IIII IIII 16 CDC 1999-19 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. "AGENCY" Redevelopment Agency of the City of San Bernardino By: Gary Van asdel, Executive Direct r Approved as to Form: By: / Agency ~nsel "PARTICIPANT" By: Title: By: ,"' Title: By: Title: 17 CDC 1999-19 EXHIBIT "A" 1999 ARR AGREEMENT [Map of ARR Zone] lBG-l~9-19 1"1 ! L; (" J9NVIIO o '" ~ :~ .!!! OE ::J .2:' U .2:' .0 .!!! c: ;s ~ o~ en E ~ Cl o ..... a... a... <{ ~ ell IT: IT: <{ m!lSI'\W9YlV .2:' .0 c: ;s -~ III OJ Ca >- C :::I o U ,01 f"l uu ~ ~ ~J:~ I-~ a::: og zg- ::;: '1!-'I:>'" c'f;.\'- '0,,'-S w > < o z < '" '" " z ~ - en E CG "- ~C) o c e ~oc.. ...Nc.. ~c~ Co .g 2 m- cCG"C ctl .!::! c (/)(tjCG 0::0:: >,>0:: :<.::::::CI)~ 00::_ CDC 1999-19 EXHIBIT "B" 1999 ARR AGREEMENT [Current Household Income Listings for Qualified Homebuyers] CDC 1999-19 EXHIBIT "B" 1999 Income Limits Income HOUSEHOLD SIZE Level 1 2 3 4 5 6 7 8 Very Low $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 (50%) Lower* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 (80%) Median $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 (100%) Moderate* * $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 (120%) * If Participant's Buyer is using HOME Federal Funds the Maximum Annual Income afamily can earn is 80% of median income according to household size. ** If Participant's Buyer is using State Low/Moderate Income Housing Funds the maximum annual income a family can earn is J 20% of median income according to household size. CDe 1999-19 EXHIBIT "C" 1999 ARR AGREEMENT [ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant] CDC 1999-19 City of San Bernardino . ECONOMIC DEVELOPMENT AGENCY .'_._.._,......__..4_..,.._.~......,......,.'-.-.......... ACQUIsmON, REHABILITATION & RESALE PROGRAM (ARR) . Redevelopment . Community Development . Housing . Business: - Recruitment - Retention - Revitalization . Main Street, Inc. A. ARR PROCESS 1. Tuesday evenings HUD list properties on the Internet (Direct Sales Internet Lottery Process) 2. Uninsurable properties on Direct Sales List are located in revitalization zone and available at 30% discount. 3. EDA approved Contractors must express interest to purchase properties by 3PM Friday (3 days after HUD's posting of Direct Sales List). Contractors must perform due diligence of properties (completed economics and inspection form - see attached). 4. Contractor must retain HUD lottery number/confirmation number of transmission. HUD will select winner by Wednesday evening (1 week after posting Direct Sales List). 5. List of winner will be posted Wednesday evening. Contractor should check this list promptly to verify whether they have been declared the winner. 6. Upon verification of HUD winning lottery number, Contractor will have until end of business day on Friday (2 days after HUD posts winners) to deliver a complete sales package to EDA include: - HUD Sales Contract (Original) - HUD Addendum A & B - HUD Land Use Restriction Addendum - Property Investment Worksheet (EDA Form) - Request for Inspection/Property Analysis Form (See Exhibit "1") 7. EDA will review and execute sales package by 12:00 p.m., Monday. Contractor to pick up Monday and overnight complete executed sales package to Santa Ana Homeownership Center 721 South Parker Street (2nd Floor Reception Area), Santa Ana, California 92668. Arrowhead Escrow can also provide this service. 201 North E Street, Suite 301' San Bernardino, CafifJnia 92401-1507' (909) 384-5081' FAX (909) 888-9413 CDC 1999-19 EXHIBIT "D" 1999 ARR AGREEMENT [HUD Escrow Documents: (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents] CDC 1999-19 Sales Contract Property Disposition Program I. U.S. Department of Housing and Urban Office of Housing Federal Housing Commissioner Development I (Wel. (Pun..:h~lscr{~)) agree tn purchase \)11 the tcrrns ~ct fnrlh hcn:in. the following properlY. ~IS more partll:ularly J~s~rihcJ tnthe Jccu clHlvcying the property to the Secretary l)f IllHlsing anu Urhall Dcvcll1pmcnt: HUD C..tse No i ------ (stre€t number. street name, unit number. If applicable. city, county, State) The Secrct:lry of Housing and Urban Development (Seller) agrees tt) sell the property at the price and terms set forth herein. :lnd to prepare a deed cOlll:!ining a covenant which warrants against the acts of the Seller and all d:l1ming hy. through or under him. Title will be taken in the fnlh'lwlng name( ,) and style: , The:lgrced purchase pnce of the property is ................................................................................................................ > 3. $ Purchaser has p:lid S as e:lJ'nest money to be :lpplied on the purchase price. and agrees to pay the balance of the purchase price. plus nr mUlUS prorations. at the time tlf closing. in cash to Seller. The carnest money deposit shall be held by 4. __; Purchaser is applYUlg for FHA insured financmg I ii 20,(b). ~ 203(b) repair escrow. == 203(kJ) willl:l cash In\vn payment of S Ju~ at closing and the halance secured by :1 mortgage in th~ amount of S for___ months (docs not include FHA Mnrtgage [nsurance Premium. prepaid expenses llr dosing costs Seller has agrl.:co to fund into mortgage.). -: Said Int)rtgagc involves a repair escrow anwlJllting to S ----, flUrchascr is paying (:ash Of :1pplying for conventional or other financing not Involving FHA. 5. Scllcr will pay reasonable and customary C\1StS. but not more {h:m al.:lual costs. nor more than paiJ by .1 typical Sclli:r in Ihe arC:I. of obtaining tin ant..: ing and/or closing lcxcluJing hroker's commission) in an :unl)Unt nol to exceed .........>> 5. S 6a. Upon s:1ks closing. Seller agrees to pay to the hrokcr idcntificJ helow a commission (including sclling honus. if oft'cred by seller) of ............... ........................ .. ................................. ....... > 6h. If broker iJcnlificJ hclllw is not the hroad listing broker. broad listing hrnk~rwill receive a ~ommissinn of: ....)-- 7. Thc net :lm,'unt due Sdl~r is (Purchase price I Item 3 J less Itcms 5 and II) .. ............................................... .. > H. Purchaser IS: r: owner-occupant (will occupy this property as primary resiJence) C~.J investor :~ nonprofit organization [J public housing agency :-: olher government ag~ncy. Disi.:ollnt at dosing: ___~"~__. \r l>ixcoun( will reduced hy amounts. Jf any. lix(ed Oil [.ifH' I(t'ms 5 alld 6. 9. Time is of the csscni.:C as to dosing. The :-;al~ :-;hall d~l:-;e not lat~r than ___ days from Scll~r's ai.:C~pt;Hlce nl' contract. Cl(lSl[l~ shall he hclJ 31 the office of St:ller's designated closing agent or IlJ.IfScllertlt)esnotacc~ptthisoffer.Sellcr 0 may 0 may not holdsuchoft'crasaback-uptoacceptctloffer. II. Lcad based paint addendum 0 IS C is not attached; Other atltl~ndum I:J is [J is not attached hereto :lnd made part of tillS conlract. 12. Should Purchaser refuse or otherwise fail to perform in accordance with this contract, including the tinle Iimitotion, Seller may, at Seller's sole option, rel1tin all or a portion of the deposit as liquidated damages. The Seller reserves the right to apply the carnest money, or allY portion thereof, 10 allY sums which may he owed by the Purchaser to the Seller for rent. Purchaser(s) Initials: Seller's Initials: 13. This contr:lct is subject to the Conditions of Sale on the reverse hereof. which ar<' incorporated herein and madc part of this contract. Certification of Purchaser: The undersigned certifies that in affixing hislher/its signature to this contract helshe/it understands: (1) all the contents thereof (including the Conditions of Sale) and is in agreement therewith without protest; (2) helshe/it is responsible for sati.fying it.<;elf a~ to the full condition of the property; and (3) that Seller will not, perform repairs after acceptance of thi. contract. Purchaser(s): (type or print names & sign) i Purchaser(s) Address: I , 6n.$ 6h.$ 7. $ _L Purchaser(s) Social Security Number (SSN) or Employer Identification Number (E1N) (include hyphens) I Phone No: Seller: Secretary of Housing and Urban Development X By; (type name & litle. & sign) I Dale Purchaser(s)Signed Conlrac!. ! Date Contract Accepted by HUD: I Certification of Broker: The undersigned certifies that: (I) neither he/she nor anyone authorized to act for him/her has dedined to sell the pruperty described herein to or to m:lke it available for inspection or consideration by a prospective purchaser because of hIS/her race. color. religion. s~x. familial status. n:ltion:ll origin. or disability; (2) he/she has both provided and explained to th~ purchaser the notice regarding use of Seller's closing agent: (3) he/she h:ls explained fully to the purch:lser the entire terms of the contract. including Condition B on the reverse hereof; and (4) he/she IS in compliance with Seller's e:lmest money policy as set forth on HUD forms SAMS-llll. P:lyee Namc and Address. and SAMS-IIII-A. Sclling Broker Certification. which he/she h:ls executed and filed with Seller. Broker's Business Name & Address: (lor IRS reporting) (include Zip Code) Broker's EIN or SSN: (include hyphens) SAMS NAID: x I Broker's Phone No: Signature of Broker: Type or print the name and phone number of sales person: This section tor HUD use only. Broker notified of: [] Acceptance [] Back-Up No. _________ [) Rejection [J Return Earnest Money Deposit Previous editions are obsolete I Authorizing Signature & Date: Ix ref. Handbook 4310.5 form HUD-9548 (1/99) roc. 1999-19 Conditions of Sale \ \;1 .hS':...;smt:llh. llh..:luJlng iJl1rHl1\'~J:l':ll[ ,1.\S';s.";IIl~llh '.v!lIcll ,lr~ .1\'.lJl.lhlc ~'l'r r~lymL:l1[ ',\"1[lwu[ 111h..'I"~sl dr penalty ;"01' :HJ'::tlh':~ p:IY' :w:nt. t..L\':S. rent. and .t.l'ound rcnt. if .ury. .;h;1I1 he prorakd :IS (If Ih..: dusmg date. H. Seller makes no representations or warrnnties conloerninj!; the l'ondition of the property, including but not limited to mechanical systcnls.. dry bllscmcnl. foundation, structural, or compliance with code, zonin;: or building requirements and will make no repnirs to the property after execution of this contmct. Pur- chaser understands that regardless of whether the property is being financed with an FHA-insured mortgage, Seller does not ;:uaruntee or warrant that the property is free of visihle or hidden structurul defects, termite damage, lead-based paint, or any other condition that may render the property uninhabitable or otherwise unusable. Purchaser acknowledges responsibility for taking such action as it believes necessary to satisfy itself that the property is in a condition acceptable to it, orIaws, regulations and ordinances affectinj!; the property, and aj!;rees to accept the prop- erty in the condition existing on the date of this contract. It is important for Purchaser to have a home inspection performed on the property iu order to identify any possible defects. If FHA insured financing is used, up to $200 of the cost to perform the inspection may be financed into the mortj!;al!;e. Names of home inspection companies can be found in the yellow pal!;es of your telephone directory under the headinj!; "Home Inspection Services. C. If fin:lncing is invnlvl'd in this lransaclinn ([tl.:lTI 4). Purdl:lscr agrees that shnulJ hdsh~/il fad to provide documcn{;llinn indicating that proper Inan :lppticali(lll was madc in good l"aith within 10 caknd;lr \bys of the date thi.... contract was accepted hy SL'ikr. and/or therC~lncr otlH:rwi:->c tn put forth good faith errort:-> to nhlain necessary financing. Seller shall have the option of rescindin,l; this cDntrad ~lnd retaining all or a portion of Purchaser's earnest money deposit. D. Seller may rescind this contract and return all or a pl1rtlon of Purchaser's earnest money deposit under the followmg conditions: I. Sclkr has not acqulrcd thc propcrty. 2. Seller is unahle or unwilling 10 remove v~t1ld ohJcctions 10 the title prior to closing.. ~. Seller uetermincs that purchaser is not an accepl:1blc horrowcr. Tcnder of thc dcposit shall rclc:lSc thc Sellcr from any and all d:llms arising from this transaction. E. Purchascr may not perform rcpairs nor takc posscs"oo ,)f thc prop- erty until s~tlc IS closed. Risk of loss or damage IS assumet.! hy Sclkr untd sale is dosed, unless Purchaser lakes possession of the property prior thercto. in whIch casc Statc law shall apply. (I) If ,ak involvcs FHt\ Insured financing and after damage the property no longer mccts thc intcnt vf Minimum Propcrty Standards (MPS). Sellcr may. at its option. perform repairs or can<:e1 the contract and n:turn Purdnscr's full c~rncst moncy dcposit. If. aftcr damagc. thc prnp- crty still mects the intent of MPS, Purch~scr has thc ,)ption of acccpting thc property as-is, with a purchasc pricc adjustment at Sellcr's sole discrction, or cancelling thc contract and rccciving refund of full carnest money deposit. (2) If sale docs not involve FHA insured financing. Scller will not rep~ir damagc but may, at Sellcr's solc discrction. reducc the sale pricc. Purchascr has option to cancel thc contract and rcceivc refund of full earnest money depoSIt. T endcr of the earnest money shall release Seller from any claims arism~ from this transaction. F If II1IS pr"loenv i, helng ,'I'fcred '''/1111 fo11\ In,,mod :lwrlg:1gc f'll'IIlC- 111:; ;\v;llldbk, Sl'llcr'-; ,1l....cl..'pl;Uli..:e nf tillS c():~lrac: cI1n"titut~s ~l commitmcnt to insure. ..:ondlt!nned upon PlIn..:h:1Sl....r hClIlg determined by Seller \lr Dir~ct EnJor'icmcnt Undcnvnler In he an acc::ptahk horrower and further (onditlllllcd Urh'll S....lkr'c; .luthonty to ilhure the mortt!age at the ILme the sale is dllsed. G. Purchaser understands that Seller's Iistinl!; prke is Seller's esti- mate of current fair market value. I!. ~l~ memhcr \If or Delegate to Congress OJ" R~sidenl C\'mmissi,ln....r :~hall ;'e admitted t~) .my c;lure dr part nr (his cont::-ac: '.lr t~) an;, henefit that may ar:se thercfn)In. hill this provisiun "hailrwt he construeJ to .~xt....nJ :0 thIs contract if :t:ad.... \vith a cC1rpor:lti(ln flJr it:~ gClll..:rJ.I hl..:nef(t. 1. Purch:.J.s~r anu Seller agn:e that this contract "hall be hilll.hn~ up~ln lheir r~spedive heirs. ex....~attJrs. adminIstrators. Sllccessnrs nr ~IS~ signs hut is assignable only hy \vritten consent or the Seller. J. If this property was (on"tnli..:kd pril)r tll I l)i'X. Seller has inspeckd f()r Jd.....ctivc paint slIrfacl..:s (J....fined as cracking. scaling. chlpplOg. peeling t1r l~lnsl..: paint on all inkrior and ~xterii.lr surf;lcl..:s). Sdkr's inspection f(lund nn defective pamt surfaces. dr If defective paint surface:; were found. Scller has treated \)r \vlll tr-:at "uch defective snrLlt:es in a lllannl..:r prescnhed by Seller pflnr to c!osil1.~. Purchaser understands and aj!;rees that the Seller's inspcction and/or treat- IllCl1t is not intended to, nor docs it guarantee or warrant that all lead-hased pnint and nil potentiallead-hased paint hazards have heen eliminated from this property. Purchaser ~lckn\lWkdges lh;lt Iicishciit has recclved a copy (If a pamphlet \vhich discllsses kad- hased paint li:l/anl" and has signt.:d. till nr hefore the d;ltC \If IhlS C(lntract. the: Ll..:ad-Basl..:d Pamt Addcndum to Sales Contad - Prop- crty Budt Beforc I 'J7X. Purchascr undcrslands Ih:1I Ihe Lcad-IJ'Lscd Paint Addendum mllst he ."igned by all Purchasers and fOf\varded to Selkr with this contract. Contracts which are not in confurmance \vith these requirements will not be accepted hy Seller. K. Thc cllcclive dalc of thLs contract IS the date it is accepted (signcd) hy thc Scllcr. L. If the amount slaled in Item:) exceeds ac.:tual and typical financing and/or chs1l1g costs. such cxccss shall nol he p:l1d hy Sellcr and may not he lIsed hy Purchaser to rcutlce amounl(s) due Seller. ~.1. S..:Uer's policies and requirements with regard tn earnest money (including forfeilure thereof). extl:I1sions uf time III which 10 close the sale. back-up uffers. ant..! allnwahll..: financing and/or clllsing CllstS arc detailed in inslructions isslIed to selling brokers. N. Sdlcr makes no representations or guarantees that thL' property \\."111. in the future. he eligible for rI-iA insurl..:d tnortgagl..: fin~lIlc:l1g. regardless of its condition or the repalrs which may hc madl..:. O. Warninj!;: Falsifying information on this or nny other form of the nepartment of Housing and Urban nevelopment is felony. It is punishable by a fine not to eXl'eed $250,000 nnd/or a prison sentence of not more than two years. (18 U.S.c. 1010, 3559; 3571) P. This conlract contams thc final and cntlfc agrccmcnt betwcen Pur- chaser and Sellcr and they shall not bc bound by an)' terms, condi- tions. statements. or represl..:ntalions. oral nr wrnten. not cuntaineJ in this contract. Previous editions are obsolete form HUD-9548 (1/991 ref. Handbook 4310.5 COC 1999-19 HUD UNIT PURCHASE AND SALE AGREEMENT Property Address: THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is dated for identification purposes only, as of , 199_, and is made and entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and (the "Participant"), with reference to the following: RECITALS A. WHEREAS, the Agency and the Secretary of Housing and Urban Development (the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition Program a copy of which is attached hereto as Exhibit "A" (the "HUD Contract") regarding sale by the Secretary to the Agency of that certain property commonly known as San Bernardino, California (the "HUD Unit"). A legal description of the HUD Unit is attached hereto as Exhibit "B"; and B. WHEREAS, subj ect to the terms and conditions of that certain Acquisition, Rehabilitation and Resale (ARR) Agreement dated 1999 (the "ARR Agreement"), by and between the Participant and the Agency and this Agreement, Agency desires to sell the HUD Unit to the Participant and the Participant desires to purchase the HUD Unit from the Agency at the close of the "HUD Escrow" as set forth herein. NOW, THEREFORE, IN ~ONSIDERATION OF THE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS: 1. Warranty of Authority by Participant. The Participant warrants that it is a under the laws of the State of California, and is authorized to execute this Agreement and all of the documents and instruments contemplated hereby, including, without limitation, supplemental escrow instructions and the Acceptance of Agency Quitclaim Deed; and that this transaction has been approved by [resolution of its board of directors]. A certified copy of that [resolution] which remains in effect, will be delivered to Agency before the close of the HUD Escrow as set forth herein. SBEO/0001/DOC/3515 6/15/99 245 ct 1 CDC 1999-19 2. Agreement to Sell and to Purchase. Subject to the terms and conditions of this Agreement, the Agency agrees to sell and the Participant agrees to purchase the HUD Unit. 3. Purchase Price. The "Purchase Price" for the HUD Unit is the same sum in cash or immediately available funds in United States Currency as the discounted purchase price which the Agency has agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit. The Purchaser Price shall be payable by the Participant's delivery of the full amount to the escrow holder in cash or by wire transfer of immediately available funds at least one (1) business day before close of the HUD Escrow or by cashier's check during business hours at least three(3) business days before the close the HUD Escrow. 4. HUD Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees to pay all of the costs of the escrow holder in the HUD Escrow including all amounts charged to the account of the Secretary and the Agency. The escrow holder is hereby instructed to collect such costs and charges from the Participant at the close of the HUD Escrow. 5. Conditions for the Benefit of the Agency. The obligation of the Agency to perform this Agreement is subject to the satisfaction of the following conditions, which are for the Agency's benefit only: (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen(15) days after the date hereof; (b) that the Secretary perform under the HUD Contract and the ti tle of the HUD Unit actually be transferred from HUD to the Agency within forty-five(45) days after the date hereof; (c) the Agency shall have received, satisfactory to the Executive Director, a the insurance required pursuant to Section in form and substance certificate evidencing 16 of this Agreement; (d) that the Participant has duly execute and deliver to the escrow holder, in recordable form the Acceptance of the Participant of the Agency Quitclaim Deed. (e) that the Participant not otherwise be in default under its other obligations to the Agency under the ARR Agreement. SBEO/0001/DOC/3515 6/15/99 245 ct 2 CDC 1999-19 The conditions set forth above are for the Agency's benefit only and the Executive Director of the Agency (the "Executive Director") may waive all or any part of such rights by written notice to the Participant and escrow holder. If any of said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Executive Director, the Agency may thereafter terminate this Agreement without any liability on the part of the Agency by giving written notice of termination to the escrow holder, with a copy to the Participant. Escrow holder shall thereupon, without further consent from the Participant, return to each party the documents, if any, deposited by them. 6. Conditions for Participant's Benefit. Participant to perform this Agreement satisfaction of the following conditions, Participant's benefit only: The obligation of is subj ect to which are for the the the (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract wi thin fifteen (15) days after the date hereof; and (b) HUD Uni t after the that the Secretary actually transfer date hereof. perform under the HUD Contract and the from HUD wi thin forty-five (45) days The conditions set forth above are for the Participant's benefit only and the Participant may waive all or any part of such rights by written notice to the Agency and the escrow holder. If any said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Participant, subject to the approval of the Secretary and the Agency, the Participant may thereafter terminate this Agreement without any liability on the part of the Participant by giving written notice of termination to the escrow holder, with a copy to the Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each party the documents, if any, deposited by them. 7. Escrow. The transfer of the HUD Unit to the Participant shall be consummated through an escrow established with the escrow agent engaged by the Secretary to handle the transfer of the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a schedule coordinated with the closing or the transfer of the HUD Unit between the Secretary and the Agency under the HUD Contract. This Agreement shall constitute the escrow instructions to the escrow holder of the Participant and the Agency with respect to the HUD Unit. The Agency and the Participant shall execute such SBEO/0001/DOC/3515 6/15/99 245 ct 3 CDC 1999-19 additional escrow instructions as may be reasonably required by the escrow holder. 8. Term of Escrow. Escrow shall close concurrently with the close of escrow under the HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the County of San Bernardino, California. 9. Condition of Title. The Agency shall convey to the Participant by quitclaim deed all of the right, title and interest in the HUD Unit which the Agency receives from the Secretary under the HUD Contract. The form of the Agency Quitclaim Deed is attached hereto as Exhibit "c" and incorporated herein by this reference. 10. Title Insurance. The Agency shall not be responsible for providing any title insu~ance to the Participant in connection with the transfer of title in the HUD Unit to the Participant. Any title insurance desired by the Participant shall be ordered and paid for by the Participant at its sole cost and expense. 11. Prorations. All assessments, including improvement assessments which are available for payment without interest or penalty for advance payment, taxes, rent, and ground rent, if any, shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently with the escrow under the HUD Contract, through which escrow such items will be prorated between the Secretary and the JI.gency, the parties acknowledge. and agree that the Participant shall be charged for such prorations in precisely the same amount as the Agency is charged under the HUD Contract. 12. Escrow Closing Costs. The Participant shall pay all escrow closing costs of both parties, including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the Participant shall pay all closing costs and expenses charged to the Agency in the escrow by which HUD transfers the HUD Unit to the Participant. 13. Closing. At the Close of Escrow, (a) the Agency shall deliver to the Participant through escrow a the Agency Quitclaim Deed conveying the HUD Unit to the Participant, (b) the Participant shall deliver to the Agency through escrow the acceptance of the Agency Quitclaim Deed, and (c) the escrow holder shall collect and pay the SBEO/0001/DOC/3515 6/15/99 245 ct 4 CDC 1999-19 sums indicated for the transfer of the HUD Unit under the HUD Contract and this Agreement and deliver such other documents to the parties in accordance with the instructions of each of them. At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed to be recorded in the Official Records of the County of San Bernardino, California. 14. Condition of the HUD Unit. The Agency makes no representation or warranty to the Participant or to any third party concerning the condition of the HUD Unit, including, without limitation, mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and the Agency will make no repairs to the HUD Unit either before or after execution of this Agreement. The Participant understands that the Agency does not guarantee or warrant that the HUD Unit is free of visible or hidden structural defect, termite 'damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or otherwise usable. Participant acknowledges responsibility for taking such action and conducting such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit in the same condition delivered to the Agency by the Secretary, in an "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS" condition. 15. Possession: Repairs. The Participant may not perform repairs nor take possession of the HUD Unit until the escrow is closed. At the close of the HUD Escrow, the Participant may take possession of the HUD Unit and promptly commence the work of rehabilitation as required for the HUD Unit under the ARR Agreement. 16. Insurance. Prior to the Close of Escrow, the Participant shall obtain and shall thereafter maintain in full force and effect at all times a broad-form comprehensive general liability policy with a limit of not less than $1,000,000.00. Such insurance shall provide for a 30-day notice to the Agency before cancellation of the policy and shall name the Agency as an additional insured as to claims arising out of the work to be performed on the HUD Unit following the Close of Escrow pursuant to the ARR Agreement. 17. Assignment. The Participant and the Agency each agree that this Agreement shall be binding upon their respective, heirs, executors, administrators, successors or assigns and is not assignable by the Participant unless the written consent of the Executive Director is first obtained, which consent the Executive Director may withhold in his or her sole and absolute discretion. SBEO/0001/00C/3515 6/15/99 245 ct 5 CDC 1999-19 18. Notices. All notices, demands and requests which may be given by either party to the other or to the escrow holder shall be in writing and shall be deemed to be given upon personal delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt requested, postage prepaid, addressed to the party to be notified at the address following the party's signature or if addressed to the escrow holder, at the address set forth in the supplemental escrow instruments signed by the parties. Either party may designate by written notice to the other party in the manner set forth in this Agreement another address for notice. 19. Miscellaneous Provisions. 19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to enforce, any provision of this Agreement shall not be a waiver of any further breach of such provision hereof. The waiver by either or both parties of the time for performing an act shall not be a waiver of the time for performing any other act or acts required hereunder. 19.2 Modifications. No change or addition to this Agreement or any part hereof shall be valid unless in writing and signed by each of the parties. 19.3 Governing Law. California law. This Agreement shall be governed by 19.4 Headings. The headings in this Agreement are for convenience only and shall not be used to interpret this Agreement. 19.5 Further Acts. Each party agrees to take such further action and to execute and deliver such further documents as may be necessary to carry out the purposes of the ARR Agreement with respect to the HUD Unit and this Agreement. 19.6 Attorneys' Fees. If either party incurs attorneys' fees to enforce this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees as set by the court from the other party. 19.7 No Real Estate Brokers Commission Payable By the Agency. The Agency shall not be responsible for the payment of any real estate brokers commission or finders fee in connection with the escrow or the transfer of the HUD Unit to the Participant. SBEO/0001/DOC/3515 6/15/99 245 ct 6 CDC 1999-19 19.8 Time. Agreement. Time is of the essence with respect to this IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. AGENCY Redevelopment Agency of the City of San Bernardino Dated: '"" By: I Executive Dibector PARTICIPANT By: Its: By: Its: SBEO/0001/DOC/3515 6/15/99 245 ct 7 CDC 1999-19 [address of Participant under the ARR Agreement] ) ) ) ) ) ) ) ) ) ) ) (Space above line reserved for use by Recorder) RECORDING REQUESTED BY Redevelopment Agency of the City of San Bernardino AND WHEN RECORDED MAIL PROPERTY TAX BILL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS [ARR Program: (Name of Grantee/Participant)] PART A THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS (the "Quitclaim Deed") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") in certain real property situated at , San Bernardino, California (the "Property") to (the "Participant"), subject to the community redevelopment affordable single family housing conditions, covenants and restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the community redevelopment affordable single family housing conditions, covenants and restrictions of this Quitclaim Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 1 of 7 CDC 1999-19 (-- The Property--) \ 'on Official Records of the Office of San Bernardino County. file in the of the Recorder PART B The quitclaim of the Property by the Agency to the Participant is expressly subject to the satisfaction of the following community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain Acquisition, Rehabilitation, Resale Agreement dated (the "ARR AgreementU) by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty-five (25) years commencing on the date of recordation of this Quitclaim Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated for occupancy only to a "personu or a "familyU who is a "Quali fied HomebuyerU for a term of the shorter period of either: (i) twenty-five (25) years from the date of recordation of this Quitclaim Deed; or (ii) the term, as provided in the ARR Agreement Covenant described in subparagraph 3, below. The words "Qualified HomebuyerU refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first-time homebuyer,U as defined in Health and Safety Code Section 50068.5, and whose annual income during the twelve (12) months preceding the date of initial occupancy of the Property by the Qualified Homebuyer does not exceed the income qualification limits for "lower income householdsu, as defined in Health and Safety Code Section 50079.5 (Statutes of 1979: Chapter 96). Health and Safety Code Section 50079.5 provides: "'Lower Income households' means persons and families whose income does not exceed the qualifying limits for lower income SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 2 of 7 CDC 1999-19 families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limi ts shall be published by the department in the California Administrative Code as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. As used in this section, 'area median income' means the median family income of a geographic area of the state." 3. As a condition precedent to any transfer, sale, conveyance, grant or other hypothecation by the Participant of the Property to a Qualified Homebuyer the "Acquisition, Rehabilitation Resale Affordability Use and Occupancy Covenant" (the "ARR Covenant"), substantially in the form attached hereto as Exhibit "A-1" or Exhibit "A-2," as applicable and as incorporated herein by this reference shall be fully executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The final form of the ARR Covenant shall be consistent with the terms and conditions of the ARR Agreement as applicable to the Qualified Homebuyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the ARR Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the ARR Covenant shall be a separate community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and assign of the Qualified Homebuyer for the term as provided in the ARR Covenant. 4. Prior to the recordation of the ARR Covenant as provided in subparagraph 3 of PART B of this Quitclaim Deed, the Property shall not be offered for sale or sold to a Qualified Homebuyer for a sale price which exceeds more than Dollars ($ ) , exclusive of customary and reasonable "escrow" and sales SBE010001/DOC/3513.1 6/15199 1200 ct Page 3 of 7 CDC 1999-19 transactional costs which may be normally allocated to a Qualified Homebuyer by an owner-builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of PART B of the Quitclaim Deed shall have no further force or effect upon the property after the date of the complete execution and recordation of the ARR Covenant. 5. The Property shall be subject to the following affordable housing redevelopment covenant in perpetuity and the text which appears in this Quitclaim Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PART C During the term of subparagraph 2 of PART S, but prior to the recordation of a fully-executed copy of the ARR Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales and ancillary business activity on the Property associated with the improvement and sale by the Developer, pursuant to the ARR Agreement, of an affordable single family dwelling unit on the Property prior a Qualified Homebuyer. The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the ARR Covenant. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 4 of 7 CDC 1999-19 PART D The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an increase, improvement and preservation of the community I s supply of low- and moderate-income housing. The transfer of the Property by the Agency to the Developer for this purpose and the recordation of this Quitclaim Deed is authorized by Health and Safety Code Sections 33334.2 and 33334.3, and other applicable law and actions of the Agency, including without limitation, the ARR Agreement. PART E Upon the delivery of this Quitclaim Deed to the Participant, the communi ty redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by either the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(f) (2) against the Participant and each successor in interest or assignee of the Participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 5 of 7 CDC 1999-19 THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized signatures of the Executive Director of the Agency. AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic - Dated: By: Executive Director Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] [NOTE: Exhibit "A-I/l MAP Assistance) General Form of ARR Covenant (Agency Exhibi t "A-2/1 Program) ] General Form of ARR Covenant (HOME SBEO/000l/DOC/3513.1 6/15/99 1200 ct Page 6 of 7 CDC 1999-19 ACCEPTANCE OF QUITCLAIM DEED AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT (the "Participant"), hereby accepts the deli very of the instrument identified above as the "Quitclaim Deed of a Public Agency and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Quitclaim Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San Bernardino, subject to the conditions, covenants and restrictions contained in the Quitclaim Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property to be improved and rehabilitated as set forth in the ARR Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Quitclaim Deed which touch and concern the Property and are community redevelopment covenants which run with the land. PARTICIPANT Its: Dated: By By: Its [NOTARY JURAT ATTACHED] SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 7 of 7 CDC 1999-19 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Suite 301 San Bernardino, CA 92401 Attn: Executive Director (Space Above Line Reserved For Use By Recorder) RECORDATION OF THIS INSTRUMENT IS EXEMPT FROM ALL FEES AND TAXES REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS FOR THE ARR PROGRAM (Name of Oualified Homebuyer) , 200 Dated as of ---ARR PROGRAM: [NAME OF DEVELOPER/PARTICIPANT]--- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp CDC 1999-19 COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS (FOR THE ARR PROGRAM) THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS, (the "ARR Covenant") is made and entered into as of , 200 , by and among (the "Participant"), the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency"), and (the "Qualified Homebuyer"), and this ARR Covenant relates to the following facts set forth in Recitals. R E C I TAL S A. The Qualified Homebuyer proposes to acquire a single family residence (the "New Horne"), located within the City of San Bernardino (the "City"), from the Participant, to be owned and occupied by the Qualified Homebuyer as their principal residence. The legal description of the New Home is attached hereto as Exhibit "A" and incorporated herein by this reference. B. The Agency has made this property on which the New Home is situated available to the Participant for the purposes as set forth under that certain Aquisition, Rehabilitation Resale (ARR) Agreement dated as of (the "ARR Agreement") in order to make the New Horne available for acquisition by the Qualified Homebuyer from the Participant subject to the terms and conditions of this ARR Covenant; and C. The terms of the ARR Agreement mandate that the acquisition, use and occupancy of the New Horne shall be restricted in certain respects for the term as provided herein (the "Qualified Residence Period") in order to ensure that the New Horne will be used and occupied in accordance with the ARR Agreement and the affordable single family residential dwelling unit development goals and objectives of the Agency. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 1 CDC 1999-19 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, THE PARTICIPANT AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. Covenant, the following words and terms shall provided in the Recitals or in this Section 1 context of usage of a particular word or require: As used in this ARR have the meaning as unless the specific term may otherwise Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for family size) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167(k) 3b)(3) under the Code, as adj usted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 50052.5. At the time of the close of the New Home Escrow, or later when a proposed Successor-In-Interest acquires the new home the amount of the maximum Affordable Housing Cost payable in connection with the acquisition of the New Home at any time during the Qualified Residence Period shall be calculated as set forth in Health and Safety Code 50053.5(b) (1) or (2), as applicable. Code. The word "Code" means the Internal Revenue Code of 1986, as amended, and any regulation, rulings or procedures with respect thereto. Delivery Date. The words "Delivery Date" mean the date of deli very of title and possession of the New Home from the Participant to the Qualified Homebuyer at the close of the New Home Escrow. Lower-Income Household The words "Lower Income Household" mean persons and families whose income does not exceed the qualifying limits for lower income families as established and amended form time to time pursuant to Section 8 of the Uni tE}d States Housing Act of SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 2 CDC 1999-19 1937. The limits shall be published by the department in the California Administrative Code as soon as' possible after adoption by the Sectretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjsuted for family size and revised annually. As used in this section, "area median income" means the median family income of a geographic area of the state. New Home. The words "New Home" mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as rehabilitated and completed by the Participant and sold to the Qualified Homebuyer. New Home Escrow. The words "New Home Escrow" mean and refer to the real estate conveyance transaction or escrow by and between the Participant and the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In- Interest). The transfer of the New Home from the Participant to the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. Notice of Agency Concurrence. The words "Notice of Agency Concurrence" mean and refer to the acknowledgment in recordable form in which the Agency confirms that the proposed Successor-In-Interest of the Qualified Homebuyer satisfies all of the Adjusted Family Income and other requirements of this ARR Covenant for occupancy of the New Home by the Successor- In-Interest at any time during the Qualified Residence Period. Qualified Homebuyer. The words "Qualified Homebuyer" mean the purchaser of the New Home from the Developer (e. g. : all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Homebuyer shall: (i) have an annual Adjusted Family Income which does not exceed the household income qualification limits of a Lower-Income Household: (ii) shall be a first- time homebuyer, as this term is defined in Health and Safety Code Section 50068.5; and (iii)pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, including all sums SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 3 CDC 1999-19 payable by the Qualified Homebuyer for mortgage financing, insurance, .escrow costs. its purchase money and other fees and Qualified Residence Period. The words "Qualified Residence Period" mean the period of time beginning on the Delivery Date and ending on the date which is ten (10) years after the Delivery Date. ARR Covenant. The words "ARR Covenant" mean these Redevelopment Agency of the City of San Bernardino Community Redevelopment Housing Affordability Covenants and Restrictions by and among the Qualified Homebuyer, the Participant and the Agency pertaining to the New Home. Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person, family or household which may acquire the New Home from the Qualified Homebuyer at any time during the Qualified Residence Period by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a "first-time homebuyer" and shall have an income level for the twelve (12) months prior to the date on which the Successor- In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for a Lower-Income Household. Upon acquisition of the New Home the Successor- In-Interest shall be bound by each of the covenants, conditions and restrictions of this ARR Covenant. The titles and headings of the sections of this ARR Covenant have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict the meaning any of the terms or provisions hereof. Section 2. Acknowledgments and Representations of the Oualified Homebuyer. The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery Date: (a) the total household income for the Qualified Homebuyer does not exceed the maximum amount permitted as Adjusted Family Income for a Lower-Income Household, adjusted for family size; (b) the Qualified Homebuyer intends to promptly occupy the New Home after the Delivery Date as the principal place of residence for a term of at least two (2) years following the Delivery Date and the Qualified Homebuyer has not entered into any arrangement and has no present intention to rent, sell, transfer or assign the New Home to any third party during the Qualified SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 4 CDC 1999-19 Residence Period so as to frustrate the purpose of this Section 33334.3 Co~enant; (c) the Qualified Homebuyer has no present intention to lease or rent any room or sublet or rent a portion of the New Home to any relative of the Qualified Homebuyer or to any third person at any time during the Qualified Residence Period; (d) the sum payable each month by the Qualified Homebuyer following the close of the New Home Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Home does not exceed the Affordable Housing Cost for the household; (e) the Qualified Homebuyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax returns filed by all persons who reside in the New Home for the calendar year preceding the close of the New Home Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all person residing in the New Home at the close of the New Home Escrow; (f) The Qualified Homebuyer has been informed by the Participant that this ARR Covenant imposes certain restrictions on the use and occupancy of the New Home during the term of this Section ARR Covenant and that thisARR Covenant imposes certain restrictions on the resale of the New Home during the Qualified Residence Period. The Qualified Homebuyer acknowledges and understands that these restrictions shall be applicable to the New Home and to any resale of the New Home from the Delivery Date to the end of the Qualified Residence Period which is \ , 201 \ \ Initials 0 Qualified H Dated: Section 3. Covenant of the Qualified Hornebuyer to Maintain Affordabilitv of the New Horne During the Qualified Residence Period and Covenant Relating to Sale or Transfer of the New Horne During the Qualified Residence Period to a Successor-In-Interest. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 5 CDC 1999-19 (a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the New Home shall be used and, occupied by the Qualified Homebuyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or for another Lower-Income Household as a Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as provided in this Section 3 to verify that each proposed Successor-In-Interest of the Qualified Homebuyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of a Lower- Income Household (based upon the Adjusted Family Income of each household), and that the completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the "Notice of Agency Concurrence" as provided in Section 3 (d) . (b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any interest therein) to a Successor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least sixty (60) days prior to the date on which the Qualified Homebuyer proposes to transfer title in the New Home to a Successor-In-Interest, the Qualified Homebuyer shall send a written notice to the Agency as provided in Section 17 of the intention of the Qualified Homebuyer to sell the New Home to a Successor-In-Interest which includes the following true and correct information: (i) name of the proposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); (ii) copies of State and federal income tax returns for the Successor-In-Interest for the calendar year preceding the year in which the notice of intention to sell the New Home is given to the Agency; (iii) resale price of the New Home payable by the Successor-In-Interest, including the terms of all purchase money mortgage financing to be assumed, SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 6 CDC 1999-19 provided or obtained by the Successor-In- Interest, escrow costs and charges, realtor broker fees and all other resale costs or charges payable by either the Qualified Homebuyer or the Successor-In-Interesti (iv) name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Homebuyer to the Successor-In-Interesti (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such referencei and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c). (c) Within twenty (20) days following receipt of the notice of intention described in Section 3(b), the Agency shall provide the Qualified Homebuyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In- Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adjusted Family Income and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) has been provided to the Agency. In the event that the Agency may request additional information relating to the confirmation of the matters described in Section 3(b), the Qualified Homebuyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Home, the Agency shall deliver a written acknowledgment and approval of the resale of the New Home to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3 (b) (iv) above, and thereafter the Successor-In-Interest may acquire the New Home subject to the satisfaction of the following conditions: (i) the recordation of the Concurrence executed by the and the Agency at the close Notice of Agency Successor-In-Interest of the resale escrOWi SBEO/DDD1/DOC/3514.2wpd 6/14/99 116 rp 7 CDC 1999-19 (ii) the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Homebuyer and the final escrow closing statement for the Successor-In-Interesti and (iii) :the other conditions established by the Successor-In-Interest of the resale escrow as Qualified Homebuyer and shall have been satisfied. (e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants and agrees that during the Qualified Residence Period the New Home shall not be leased, subleased, or rented to any third person, except for a temporary period (not to exceed 12 months) in the event of an emergency or other unforseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Homebuyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event within not more than (60) days following the commencement of a temporary rental occupancy of the New Home by a third party, which notice shall set forth the grounds on which the Qualified Homebuyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. Section 4. Maintenance Condition of the New Horne. The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that: (a) The exterior areas of the New Home which are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the term of the Qualified Residence Period, there is an occurrence of an adverse condition on any area of the New Home which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Qualified Homebuyer in writing of the Maintenance Deficiency and give the Qualified Homebuyer thirty (30) days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiency" include without limitation the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property use restrictions: SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 8 CDC 1999-19 failure to properly maintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of wed and debris; parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on any other parts of the property which are not covered by a paved and impermeable surface; the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Home. In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Homebuyer ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has failed to comply with the provision of this Section 4(a). If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Home (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) shall become a lien on the New Home. If the amount of the lien is not paid wi thin thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c). SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 9 CDC 1999-19 (b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the New Home shall be removed by the Qualified Homebuyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the New Home (exterior areas only) and such graffiti is visible from an adjacent or contiguous public right-of-way and thereafter such graffiti is not removed within 72 hours following the time of its application; then in such event and without notice to the Qualified Homebuyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Section 4(b) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4 (a) or Section 4 (b), including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. In any legal proceeding for enforcing such a lien against the New Home, the prevailing path shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4, shall be a covenant running with the land for the Qualified Residence Period and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable law. Nothing in the foregoing provisions of this Section 4 shall be deemed to preclude the Qualified Homebuyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 10 CDC 1999-19 Section 5. [RESERVED/NO TEXT] Section 6. [RESERVED/NO TEXT] Section 7. Foreclosure of Purchase Money Mortgage Loan and Agency Right of First Refusal. (a) During the Qualified Residence Period the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Home at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period the Agency shall have the right of first refusal to purchase the New Home from the Qualified Homebuyer on the same terms which the Qualified Homebuyer may propose to offer the New Home for resale to a Success-In- Interest. The Agency must exercise such a right of first refusal within thirty (30) days following written notification of the intention of the Qualified Homebuyer to resell the New Home, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Homebuyer and close an escrow for the transfer of the New Home to the Agency within sixty (60) days following written notification of the intention of the Qualified Homebuyer to resell the New House. Section 8. Covenants to Run With the Land. The Participant, the Agency. and the Qualified Homebuyer hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a common plan for the rehabilitation of affordable single family housing improvements within the territorial jurisdiction of the Agency and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Home and each Successor-In-Interest of the Qualified Homebuyer in the New Home for the term provided in Section 10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this ARR Covenant. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Home or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 11 CDC 1999-19 and restrictions are set forth in such contract, deed or other instrument. Section 9. Burden and Benefit. The Participant, the Agency and the Qualified Homebuyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Homebuyer's legal interest in the New Horne is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Homebuyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Horne by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable single family housing development goals and objectives of the Agency and in order to make the New Horne available for acquisition and occupancy by the Qualified Homebuyer. Section 10. Term. This ARR Covenant shall apply to the New Horne and the Qualified Homebuyer and to each Successor-In-Interest as of the Delivery Date for the Qualified Residence Period -- e.g.: this ARR Covenant shall remain in full force and effect for ten (10) years after the Delivery Date. Any provision or section hereof, may be terminated after the Delivery Date upon agreement by the Agency and the Qualified Homebuyer (or the Successor-In- Interest in the New Horne), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in its reasonable discretion will not adversely affect the affordable single family housing and development goals of the Agency. Section 11. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Homebuyer to honor or perform any material term or provision of this ARR Covenant shall constitute a breach under this Agreement; provided however, that if the Qualified Homebuyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days after the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Homebuyer written notice of breach specifying the alleged breach which if uncured by the Qualified Homebuyer within thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 12 CDC 1999-19 shall not constitute a waiver of any breach or event of default nor shall it change the time of breach or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 11. Except with respect to rights and remedies expressly declared to be exclusive in this ARR Covenant, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Homebuyer may remain incurred for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 as related to a Maintenance Deficiency at the New Home, upon the occurrence of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Qualified Homebuyer to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (ii) by other action at law or in or convenient to enforce covenants and agreements Homebuyer to the Agency. equity as necessary the obligations, of the Qualified (b) No third party shall have any right or power to enforce any provision of this ARR Covenant on behalf of the Agency or to compel the Agency to enforce any provision of this ARR Covenant against the Qualified Homebuyer on the New Home. Section 12. Governing Law. This Section 33334.3 Covenant shall be governed by the laws of the State of California. Section 13. Amendment. This ARR Covenant may be amended after the Delivery Date only by a written instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as applicable) and by the Agency. The Participant shall have not any SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 13 COC 1999-19 right or power to approve any such amendment to this ARR Covenant, and the execution by the Participant of any such amendment after the Delivery Date shall not be required. Section 14. Attorney's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this ARR Covenant or otherwise arising out of this ARR Covenant, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 15. Severability. If any provision of this ARR Covenant shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this ARR Covenant which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Section 16. Time is of the Essence. For each provision of this ARR Covenant which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 17. Notice. Any notice required to be given under this ARR Covenant shall be given by the Agency or by the Qualified Homebuyer, as applicable, by personal delivery or by First Class Uni ted States mail at the addresses specified below or at such other address as may be specified in writing by the parties hereto: _.~ If to the Agency: Executive Director Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Suite 301 San Bernardino, CA 92401 Phone: (909) 384-5081 If to the Qualified Homebuyer: Attn: Phone: Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personall~ delivered, when received SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 14 CDC 1999-19 by the Executive Director of the Agency or the Qualified Homebuyer, as applicable. SBEO/0001/DOC/3514.2wpd ti/14/99 116 rp 15 CDC 1999-19 IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer and the Agency have caused this Covenant to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this ARR Covenant is authorized under Health and Safety Code Section 33334.3 (g) . QUALIFIED HOMEBUYER By: Dated: By: PARTICIPANT \ By: Dated: AGENCY Redevelopment Agency of the City of San Bernardino Dated: I By: Executive Dir ctor [ALL SIGNATURES MUST BE NOTARIZED] Approved as to Form: By: Agency ~ounsel SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 16 CDC 1999-19 EXHIBIT "An Legal Description of the New Home SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 17 CDC 1999-19 EXHIBIT "E" 1999 ARR AGREEMENT [ARR Rehabilitation Standards for Each HUD Units] CDC 1999-19 ARR REHABILIT AnON STANDARDS 1. GENERAL DESCRIPTION The Participant will acquire HUD Units and cause the rehabilitation and resale of the housing thereon. II. REHABILITATION STANDARDS All ofthe improvements to be provided by the Participant on the HUD Units constitute the "Project". The Project shall be developed in accordance with applicable building and safety codes. III. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Project Site, and the suitability of the Project Site. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Project Site entirely suitable for such development. Participant has undertaken all investigation of the Project Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the rehabilitation of the Project. IV. AMENITIES Each HUD Unit shall have full amenities and shall include the following: front year landscaping and automatic sprinklers, side and rear yard fencing. V. REHABILITATION STANDARDS Rehabilitation standards shall include, but are not limited to: 1. Interior work to make structures more livable, such as, plastering, painting, new subflooring and tile work. 2. Repair, restoration or replacement of important parts of structures, such as, heating systems, plumbing systems, electrical wiring and built-in kitchen appliances. 3. Installation of water/energy conservation devices. 4. Installation of security devices. CDC 1999-19 5. Wheelchair ramps, kitchen and/or bathroom modifications related to a disability of a household member. The following list contains some of the typical repair items and replacement activities: 6. Replacement of plumbing fixtures. 7. Addition of electrical outlets and/or wiring. 8. Insulation. 9. Repair or replacement of roof. 10. Repair and/or enlargement of inadequate kitchen and/or bathroom. 11. Repair/replacement of furnaces and air conditioners. 12. Plaster and dry rot repair. 13. Repair/replacement of porches, steps, fences and walkways. 14. Termite, rodent or vermin fumigation. 15. Addition of closets or other minor built-ins. 16. Chimney repair/replacement 17. Repair/replacement of railing. 18. Repair/replacement of windows and doors 19. New ceilings. 20. Weather stripping for windows and doors. 21. Repair/replacement/addition of gutters or down spouts. 22. Repair/replacement of exterior trim. 23. Repair/replacement of stucco. 24. Repair of foundation, structural repair. 25. Replacement of existing toilets, tub and shower. : CDC 1999-19 26. Carpeting and other flooring. Ineligible activities for all federal funds and the low-moderate housing fund include, but are not limited to, the following luxury items: 1. Swimming pools and spas 2. Construction of Patios and decks. 3. Elimination of garages without replacement. 4. Barbecues 5. Greenhouses CDC 1999-19 EXHIBIT "F" 1999 ARR AGREEMENT [HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents] CDe 1999-19 MORTGAGE ASSISTANCE PROGRAM (MAP) ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM Date: Property Address: Borrower(s): MAP Amount: FIRST TIME HOME BUYER PROGRAM - MAP CHECKLIST step1...F6.rReservatioiiofFtJrldsLetter..bvEDAX........... I Latest Tax Return (1040's) and 2 Current Pay Stubs 0 Application Affidavit - Signed by Borrower 0 Verification for Applicant Eligibility (Completed by Lender) 0 Preliminary Escrow Instructions 0 . . Sij!p2AF()rEOAtoReQgeSt.fcH'MAPQhecI{PREkluesff9rFLl.r'ldst..~ttEH.<..... Complete Demand for Funds Letter 0 Submit MAP Docs (Loan Agreement, Deed of Trust, Promissory Note, CC & Rs) 0 Seller (ARR Contractor) must call EDA Inspector for a Final Inspection (10 days prior to close of escrow) $tepa+f'QI"t=I:}A!~QRelea$~MARqlleG~tc:f~$Ar9W Final Escrow Documents (Includes Amendments) 0 First Time Home Buyers Class Certificate 0 Lender Representative: \\EO"'_SAN BEROO\PUBUC\FOl'TM\Map-ARR\MAP-Che'Ck Listdoc 02J16199MP CDC 1999-19 CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY ACQUISITION, REHABILITATION AND RESALE PROGRAM (ARR) AND MORTGAGE ASSISTANCE PROGRAM (MAP) VERIFICATION FOR APPLICANT ELIGffiILITY Property Addrcss to be Purchased City/State San Bernardino, California \ \ \ Phone Number Family Size # of Minor Children Zip Codc Name of Applicant Current Addrcss Name of Lender \ Contact Person \ Loan Number \ Phone Number Fax Number \ * Annual & Monthly Income (Per Applicant Application) $ /Ycar $ /Month Incomc uscd by the lender to qualify for the loan, if different than annual incomc of aoolication. $ /Year $ /Month MonUlly Consumer Debt $ l1'v[onUl Max Loan Amount $ Principal & Interest $ flylonUl Sales Price $ Est. Property Taxes $ /Month Buyer Down $ Est. Insurance $ /MonUl Map Amount $ Mort. Ins (If Applicable) $ /Month TYPE OF LOAN DFNMA 0 FHA 0 Other Total PITI $ /Month Debt-ta-Income Ratios as Calculated by Lender: Housing Costs % Terms of Loan Interest Rate Desired Ratios 33% Total Debt % # of Years 38% o Fixed o Variable Notc: Variable Loans are Not Permitted. ",V ore: [11 order rll qlla/ifjIor tile .VAP YOllr iI/come mOJ' 1Iot exceed tile followi1lg: Signaturc of Applicant \ \ Lcnder/Escrow Re resentati\"c - Signature MAP 1999 INCOME LIMITS Family of: 1 - $26,450 2 - $30,200 3 - $34,000 4 - $37,750 5 - $40,800 6 - $43,800 7 - $46,800 8 - $49,850 OTHER ASSIST ANCE CATEGORIES (Please chcck as man\" as appropriate) o Sf. Citizen{s) - 62 or Older o Femalc Head of Household o Disabled One or More PLEASE CHECK THE FOLLOWING (Optional) o Black o American Indian o Hispanic o White o Other o Asian or Pacific Islander ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGffiILITY FOR THE CITY OF SAN BERNARDINO'S MAP IS THE SOLE RESPONSffiILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. SHOULD YOU HAVE ANY QUESTIONS CALL (909) 384-5081. CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM ACQUISITION/REHABILITATION & RESALE PROGRAM APpLICATION AFFIDAVIT NOTE: ALL BLANKS ON THIS FORM MUST BE COMPLETED! THERE ARE IMPORTANT LEGAL CONSEQUENCES TO THIS AFFIDAVIT; READ IT CAREFULLY BEFORE SIGNING. I. I (we) the undersigned, as part of my (our) application for Acquisition, Rehab, Resale (A.R.R.) and Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of San Bernardino, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we), being first duly sworn, state the following: I (we) certify that the following are: a. b. c. d. My (our) legal Name(s): Social Security # Current residences: Telephone # \ \ \ \ The Unit (the "Residence") being purchased is a single-family home located in the City of San Bernardino at the following address: 2. I (we) certify that my (our) current gross annual household income, including income of al1 adult persons intending to occupy the Residence, is $ . I (we) understand that I (we) am (are) not eligible for a ARR- MAP unless my (our) gross annual household income does not exceed 80% of the median income for San Bernardino, and as specifical1y set forth in the Verification of Applicant Eligibility form. 3. I (we) certify that the Residence wil1 be occupied and used as my (our) principal place of residence within forty-five (45) days after the date the ARR-MAP loan has closed. I (we) certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not more than fifteen percent (15) of the area of the Residence will be used in a trade or business. I (we) certify that I (we) will notify the Agency in writing if the Residence ceases to be my (our) principal Residence. Failure to occupy the Residence will result in the Agency accelerating the repayment of the Agency ARR-MAP Loan. CDC 1999-19 4. If the loan application is for a loan on a newly constructed home, I (we) certify that the Residence has not and will not be occupied prior to loan commitment from the Agency. 5. I (we) understand that I (we) am (are) not eligible for a ARR-MAP from the Agency under this program if I (we) individually or together had a present ownership interest in a principal residence within three (3) years prior to date of application. I (we) also understand that I (we) cannot have an ownership interest in a principal residence between the date of application and closing. Forthis purpose, a principal residence includes a single family residence, condominium, share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law), or occupancy in a multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by any means, whether outright or partial, including property subject to mortgage or other security interest. An ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy by the entirety, or a life estate interest. I (we) certify that I (we) have listed below all places of residence, whether owned or not, for a three-year period from date of application. 6. Previous Address: (Past Three Years) Owned Rented Other Beginning/Ending Date of Residency From: End: Address of Residence All answers of "Other" must be fully explained; use additional paper if necessary. 7. Name, address and telephone of the owner/landlord who can verify each residence listed above which was not owned by the applicant. Landlord Name Address Telephone No. 8. I (we) certify that the total purchase price of the Residence and land, including all construction items, all commissions, all builder's fees, hook-up and tap-in fees, pemlits, arcl1itectural fees, all site improvements, discount points paid by the seller, work credit, subcontracted items, or construction loan interest, but excluding any closing costs and other pem1aIlent financing charges will not exceed the purchase price linlitation applicable to the Residence below: Maximum Sales Price (Single FamilJ Unit) $150,000. 9. I (we) further certify that no other agreement, eit~er verbal or written is presently contemplated for the completion of the purchase of the Residence. CDC 1999-19 10. I (we) further certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified mortgage bond or a qualified veteran's mortgage bond. No person related to me (as defined in applicable federal or state laws and regulations) has or is expected to have an interest as a creditor in the Mortgage loan being acquired for the Residence. 1 I. I (we) understand and agree that if a ARR-MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 12. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the ARR-MAP guidelines. 13. I (we) understand that the decision to make a first mortgage loan is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan. 14. 1 (we) cannot close my (our) loan prior to receiving a ARR-MAP loan approval. 15. I (we) acknowledge and understand that this Application Affidavit will be relied upon for the purpose of determining my (our) eligibility for a ARR-MAP. (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me (us) in connection with an application for a ARR-MAP may constitute a federal violation punishable by a fine and/or denial of my (our) application for a ARR-MAP loan. If a ARR- MAP loan commitment has been issued prior to discovery of the false statement, immediate cancellation of the ARR-MAP will occur which will be in addition to any criminal penalty imposed by law. Dated: Signature of Applicant(s) Dated: Signature of Applicant(s) APPLICATION AFFIDAVIT 1/5/9%IP CDC 1999-19 FIRST TIME HOME BUYER MORTGAGE ASSISTANCE PROGRAM DISCLOSURE STATEMENT IIWe (Participant) understand and agree that the provision of financial assistance from the Redevelopment Agency of the City of San Bernardino (the "'Agency") under the First Time Home Buyer Mortgage Assistance Program (the "Program") is conditioned on a number of factors, including, but not limited to (all terms not otherwise defined herein shall have the meaning provided in the Loan Agreement by and between the Agency and the Participant): · I/We must fmd a single-family detached home within the City of San Bernardino which I/We can afford (the "Property"). · I/We must qualifY for a home loan from an institutional lender acceptable to the Agency. · I/We must qualifY for assistance under the guidelines of the Program. · I/We must not have owned any interest in any residential real property during the past three (3) years. I/We further understand and agree that: I/We will be responsible for repaying the amount of the Note. The Note will be due and payable upon: (i) the sale of the Property, (ii) the transfer of any interest in the Property, (iii) refinancing of any lien or encumbrance to which the Agency Deed of Trust is subordinate, or (iv) I/We are no longer an occupant of the Property or are in default of any obligation under the Loan Agreement. · lAVe have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the Agreement is signed by sending a notice of my/our decision to rescind or cancel the Agency Loan to: Redevelopment Agency of the City of San Bernardino Housing Division 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 Attn: Housing Division Manager · An appraisal fee may be payable upon the following: (i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) I/We no longer occupy the Property, or (iv) I/We are/am in default of any provision of the Loan Agreement. · The Agency shall not be held responsible for any costs associated with the home I/We purchase with such assistance including, but not limited to, any loan fees or charges, any 1 CDe 1999-19 charges for appraisals, or any escrow costs or other costs relating to the transfer of the Property. · The Agency cannot ensure that infonnation provided by or on my/our behalf will be confidential. · The Agency shall not be responsible for the selection of a home, the selection of a lender providing funds assisting in the purchase of the home, provide infonnation concerning other public or private sources ofloans, or the competitiveness of the tenns of the Program. I1We assume all responsibility for detennining whether I1We will infonn myself70urselves as to the availability and tenns of other public or private loans. · The Agency shall not be charged with the knowledge of the contents of the ocuments of the lender. DATED 19 DATED 19 DATED 19 2 CDe 1999-19 I / .' {~~:,,~Z' (I:cY';_l L ^ ,.1 .. 1>~t.'7.d " '-_'.if A'.> .,.\-", /''''':l .,' ./' '~(. ,'- .-ji!' ,'iJf,:.ff 1""'" .' ' , }i If. ,~ ""~,~ ,/, ,~, ", .-" ~.. .,~",-,,' t P , ,I' ~. I .I. "'.,.," 1/"1' ".. ACQUISITION, REHABILITATION RESALE (ARR) AGREEMENT By and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO And ;,. ~~JJb,~~m6~~IIl .... ACQUISITION, REHABILIT A nON RESALE (ARR) ("ARR Participant") ,~, fII"" /.~ ,I"" CDC 1999-19 TABLE OF CONTENTS I. [100] SUBJECT OF AGREEMENT ..................................................................................2 A. [101] Purpose of Agreement......................................................................................... 2 B. [102] The HUD Units ................................................................................................... 3 C. [103] Parties to the Agreement ..................................................................................... 3 1. [104] The Agency ...................................................................................................3 2. [105] The Participant .............................................................................................. 3 3. [106] Prohibition Against Change in Ownership, Management and Control of the Participant............................................................................................................... 4 4. [107] Benefits of Project................................................................. ........................4 II. [200] AGENCY ASSISTANCE ......................................................................................... 4 A. [201] The Project.......................................................................................................... 4 B. [202] Agency Assistance ..............................................................................................5 C. [203] Term of Agreement ............................................................................................. 5 D. [204] Participant Assistance......................................................................................... 5 E. [205] HUD Escrow....................................................................................................... 7 F. [206] Affordable Housing Cost .................................................................................... 7 III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS .................................. 7 A. [301] Rehabilitation by Participant............................................................................... 7 1. [302] Cost of Rehabilitation................................................................ .................... 8 2. [303] Bodily Injury and Property Damage Insurance............................................. 8 3. [304] Rights of Access............................................................................................9 4. [305] Local, State and Federal Laws ...................................................................... 9 5. [306] Anti-Discrimination During Rehabilitation .................................................. 9 B. [307] Taxes, Assessments, Encumbrances and Liens................................................... 9 C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit............................... 9 CDC 1999-19 D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders.................... 10 [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation.................................................................................................... 10 E. [311] Right of Agency to Satisfy Other Liens on the Project..................................... 10 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS ......... 11 A. [401] Uses - Covenants Running with the Land......................................................... 11 B. [402] Maintenance of the HUD Units......................................................................... 11 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation............................................................................. 13 V. [500] GENERAL PROVISIONS...................................................................................... 13 1. [501] Termination and Breach.................................................................................... 13 2. [502] Notice................................................................................................................ 14 3. [503] Conflicts ofInterest; Nonliability ..................................................................... 14 4. [504] Inspection of Books, Records and Reports ....................................................... 14 5. [505] Indemnification................................................................................................ 15 VI. [600] SPECIAL PROVISIONS ........................................................................................15 1. [601] Submission of Documents to Agency for Approval......................................... 15 2. [602] Successors in Interest ........................................................................................ 15 VII. [700] ENTIRE AGREEMENT, WAIVERS..................................................................... 15 VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCy........................... 16 [801] Time for Acceptance............................................................................................... 16 EXHIBIT A - EXHIBIT B - EXHIBIT C EXHIBIT D - EXHIBIT E EXHIBIT F Map of ARR Zone Current Household Income Listings For Qualified Homebuyers ARR Program - Steps and Process for Circulation of HUD Unit Listings by the Agency and Selection of HUD Units for Purchase by Participant HUD Escrow Documents (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents ARR Rehabilitation Standards for Each HUD Unit HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents CDC 1999-19 ACQUISITION. REHABILITATION. & RESALE (ARR) PARTICIPATION AGREEMENT THIS AGREEMENT(the "Agreement") this day of , 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and Paul Chiavatti (the "Participant"). Agency and Participant hereby agree as follows: RECITALS WHEREAS, Agency is a California Redevelopment Agency engaged in carrying out its public purposes, including, without limitation, increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City"); and WHEREAS, the U.S. Department of Housing & Urban Development (HUD) has designated that certain area within the City shown on the map attached hereto as Exhibit "A" as the Acquisition, Rehabilitation and Resale (ARR) Revitalization Zone (the "Zone"), and has granted the City exclusivity to purchase directly from HUD, certain single family dwelling units owned by HUD REO's (the "HUD Units") at a discount off the As Is Value of each such HUD Unit (the "ARR Program") which the Agency as administrator for the City under the ARR Program, shall concurrently transfer title to the HUD Unit to the Participant for rehabilitation and resale pursuant to the terms and conditions of this Agreement; and WHEREAS, the Agency has also been designated by the Mayor and Common Council as the administrator of the HOME Program (the National Affordable Housing Act of 1990) on behalf of the City, with specific intent to expand the supply of decent, safe, sanitary and affordable housing, within a City's jurisdiction; and WHEREAS, the Agency may use either federal HOME Program funds or State Redevelopment low and moderate income funds to financially assist qualified first-time homebuyers (herein "Qualified Homebuyer") in the acquisition of HUD Units purchased directly from the Participant; provided however that the value of the HUD Unit to be acquired by a Qualified Homebuyer for which the Agency may provide purchase money mortgage assistance under either the HOME Program or under the other affordable housing assistance programs of the Agency (herein "MAP Program") must have a value that does not exceed 95% of the area median purchase price; and WHEREAS, with respect to the HUD Units, Agency desires to implement the ARR Program pursuant to which: a. Agency would buy one or more HUD Units directly from HUD on condition that the Participant purchases each such HUD Unit from the Agency at the discounted price which HUD offers to the Agency; and 1 CDC 1999-19 b. The Participant shall promptly rehabilitate the HUD Unit in accordance with rehabilitation standards set forth herein, and thereupon sell the HUD Unit, to an eligible low or moderate income buyer (e.g., a Qualified Homebuyer) at affordable housing costs pursuant to State or Federal requirements, depending on the source of funding (i.e., if Qualified Homebuyer uses HOME funds their income shall not exceed 80% of median income and State Redevelopment Low/Moderate Income Funds shall not exceed 120% of median income); and c. Prior to purchasing a HUD Unit from Agency, Participant shall provide satisfactory evidence to the Agency of all financing which shall include all costs associated with the acquisition, rehabilitation and disposition of the HUD Unit by the Participant. Based on receipt of such evidence of financing, the Agency shall accept or reject any offer received from the Participant to acquire a HUD Unit. The Participant shall complete the steps noted in Exhibit "C", attached hereto and incorporated herein by reference with respect to its acquisition and disposition of each HUD Unit to a Qualified Homebuyer; and d. If the Agency accepts any offer from Participant to purchase a HUD Unit, the Agency and Participant will open escrows (the "HUD Escrow") which shall close concurrently such that the escrow by which HUD shall transfer a HUD Unit to the Agency shall close concurrently with the escrow through which the Agency shall transfer that HUD Unit to the Participant; and e. Promptly after the closing of the HUD Escrow, the Participant will rehabilitate the HUD Unit within the timeframe herein, and sell it at affordable costs (the "Affordable Housing Costs") to a person or family of low or moderate income for owner occupancy purposes at the close of an escrow by and between the Participant and the Qualified Homebuyer (the "New Home Escrow"). The maximum income criteria applicable to a Qualified Homebuyer will be based on the type of financial assistance, if any, which the Agency provides to the respective Qualified Homebuyer at the close of a New Home Escrow (i.e., State Redevelopment Low/Moderate Income Funds up to 120% of median income or HOME Funds up to 80% of median income). The current 1999 Income Limits are noted in Exhibit "B". WHEREAS, Participant is a well established housing provider that has the experience, qualifications and desires to participate in the above described ARR Program. NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, Agency and Participant agree as follows: 1. [100] SUBJECT OF AGREEMENT A. [101] Purpose of Agreement The purpose of this Agreement is to effectuate various redevelopment plans for the City of San Bernardino (the "City"), by providing for Agency assistance to Participant in connection with 2 CDC 1999-19 the acqUisItion, rehabilitation and disposition of the HUD Units hereinafter set forth. The acquisition, rehabilitation and resale of the HUD Units pursuant to this Agreement is in the vital and best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting on behalf of the Agency, has determined that the acquisition, rehabilitation, resale and uses contemplated by this Agreement will benefit the low-and moderate- income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Program and the goals and objectives of the affordable housing programs of the Agency. B. [102] The HUD Units Each HUD Unit shall be located within the Zone and shall be designated from time to time by the Agency. Each of the HUD Units shall be pre-approved by the Agency and identified on a list in writing, as available for transfer to the Participant subject to the terms of this Agreement. No HUD Unit shall be transferred to the Participant unless the Participant has submitted a timely and complete acceptance to purchase such HUD Unit to the Agency, as set forth herein. It is the express intent of the parties hereto that the Participant will attempt to acquire those HUD Units within the Zone which evidence the highest degrees of blight, are most in need of redevelopment, and are financially feasible. The Agency's purchase approval of each HUD Unit will be based upon compliance with this intent. C. [103] Parties to the Agreement 1. [104] The Agency The Agency is a public body, corporate and politic, exerclSlng governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et seq.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [105] The Participant The Participant is licensed to do business in the State of California. The principal office and mailing address of the Participant for purposes of this Agreement is: 3 CDC 1999-19 3. [106] Prohibition Against Change in Ownership. Management and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure for the benefit of the Agency. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 106 shall terminate with respect to each HUD Unit at the close of the New Home Escrow for that particular HUD Unit. Nothing in this Section 106 shall act to restrict the sale of rehabilitated HUD Units to Qualified Homebuyers if such sale is otherwise in compliance with the terms of this Agreement. 4. [107] Benefits of Proiect The Agency has determined that the purchase, rehabilitation and sale of HUD Units in accordance with this Agreement will eliminate blight, provide needed low- and moderate-income housing to the various project areas of the Agency, as well as the City and also increase homeownership opportunities for low- to moderate income households thereby stabilizing the community and decreasing rental housing in the City. II. [200] AGENCY ASSISTANCE A. [201] The Proiect The Agency agrees that with regard to any HUD Unit that it has approved in writing, and which the Participant has agreed to purchase as evidenced by the completed form of a "HUD Unit Purchase Agreement" in the form included in Exhibit "D", that the Agency shall, subject to the terms and conditions of this Agreement, acquire the HUD Unit from HUD and shall thereafter immediately transfer title to the Participant through the HUD Escrow. 4 CDe 1999-19 The Project, and specifically the Agency's obligation to acquire any HUD Unit, shall only arise to the extent funds are available from the Participant (or the "Participant's Lender" as hereinafter defined), to provide for the acquisition, rehabilitation and resale of the HUD Unit by the Participant at the close of the HUD Escrow. Moreover, the Agency shall only offer to transfer HUD Units to the Participant to the extent that the Agency, in its sole discretion, deems that the purchase price, associated rehabilitation and disposition costs are fair, equitable, comparable and that the Participant has funds sufficient to close the HUD Escrow and thereafter to complete the rehabilitation of the HUD Unit. B. [202] Agencv Assistance In order to assist in the implementation of the Project and marketability of the Project, the Agency agrees to provide certain Agency assistance (the "Agency Assistance") as follows: (i) provide for the concurrent transfer of each HUD Unit which the Participant may agree to acquire as evidenced by a completed HUD Unit Purchase Agreement; provided however that purchase price for each HUD Unit and all escrow costs in connection with the HUD Escrow for that particular HUD Unit shall be payable solely by the Participant; and (ii) in addition to acquiring and thereafter immediately transferring title to any given HUD Unit to the Participant, the Agency may provide on a first come-first served basis to any Qualified Homebuyer certain down payment and closing costs, not to exceed ten percent (10%) of the Participant's sales price of the HUD Unit being sold, from either available funds of the Agency under the HOME Program or the Agency MAP Program, as applicable. C. [203] Term of Agreement The term of the Agreement shall be one (1) year from the date of this Agreement and ending June 30, 2000, except as set forth in Section 501. The Executive Director of the Agency (the "Director") shall have the option to renew this Agreement for an additional one (1) year period provided Participant is in compliance with the provisions of this Agreement. D. [204] Participant Assistance The Participant will select HUD Units based upon a list of available HUD Units prepared from time to time by the Agency. The Participant shall be solely responsible for obtaining all information in connection with the proposed acquisition and rehabilitation of each HUD Unit. Participant will take all action necessary to ensure the availability of funding for the acquisition, rehabilitation and resale of each HUD Unit prior to submitting any offer to purchase to the Agency and shall provide evidence to the Agency of such financing at the time it delivers a completed HUD Unit Purchase Agreement to the Agency (see Exhibit "D"). Participant will be responsible for the preparation and submission of all necessary paperwork required in connection with the acquisition of each HUD Unit (i.e., all of the HUD Escrow documents as assembled in Exhibit "D") and all other necessary documentation required for the close of escrow for any HUD Unit to be purchased by Participant from the Agency. Participant shall have not more than seven (7) days from receipt of the HUD listing from the Agency to select any HUD Unit for purchase and return 5 CDC 1999-19 the HUD Unit Purchase Agreement for such HUD Unit to the Agency as executed by the Participant. The Participant shall cause each HUD Escrow to be closed within forty-five (45) days from the date of execution of the HUD Unit Purchase Agreement and the other HUD Escrow documents by the Participant. No extension of time for the close of a HUD Escrow will be granted by the Agency and if a HUD Escrow does not close within the forty-five (45) day period after the HUD Unit Purchase Agreement has been fully executed for any reason not attributed to the fault or delay ofHUD or the Agency, then in such event this Agreement will be subject to termination. The Participant agrees that upon its acquisition of each HUD Unit from by the Agency, the Participant shall promptly commence and thereafter diligently complete the rehabilitation of the HUD Unit. Unless a longer period of time is approved by the Agency in its sole discretion at the time of the submission of the Participant acceptance of an offer to purchase a HUD Unit, the Participant shall complete the work of rehabilitation of each such HUD Unit within ninety (90) days following the close of the HUD Escrow. (i) Scope of Rehabilitation - The Participant shall rehabilitate all HUD Units acquired from the Agency in accordance with the ARR Rehabilitation Standards noted in Exhibit "E". Furthermore, the Participant shall prepare a Scope of Rehabilitation for each HUD Unit setting forth in detail the work that Participant agrees to perform on each HUD Unit purchased by Participant. The Scope of Rehabilitation shall be submitted by the Participant to the Agency concurrently with the executed HUD Unit Purchase Agreement and related HUD Escrow documents. (ii) HOME Program or Agency MAP Program Assistance to Oualified Homebuver - All HUD Units acquired and rehabilitated under the ARR Program, wherein the Qualified Homebuyer has applied for either HOME Program or Agency MAP Program assistance, will be reserved for sale to and occupancy by low- and moderate-income households, to be sold at affordable housing cost as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, or Part 92 HOME Investment Partnerships Subpart 7. (92.206), which requires that the value of the HOME assisted property to be acquired by the Qualified Homebuyer must have a value that does not exceed 95% of the area median purchase price of the HUD Unit, whichever funding source is used for the Participant's Qualified Homebuyer. (iii) Disposition of HUD Units and Oualified Homebuyer Eligibility - The Participant will cause the marketing of each HUD Unit to prospective purchasers. Participant will screen prospective purchasers for eligibility in accordance with this Agreement, specifically to insure that Buyer meets the applicable HOME Program and/or Agency MAP Program Income Guidelines in accordance with Exhibit "B". Participant shall cause the opening of a New Home Escrow with prospective purchasers and will take all steps necessary to ensure each New Home Escrow is closed within forty-five (45) days from the date of its opening. At the close of the New Home Escrow, the ARR Covenant shall be fully executed and filed for recordation. The form of the ARR Covenant is included in Exhibit "D". 6 CDC 1999-19 E. [205] HUD Escrow The Participant is under no obligation to purchase any HUD Unit from the Agency and the Agency is under no obligation to transfer any HUD Unit to the Participant unless the Participant has first completed a HUD Unit Purchase Agreement for the particular HUD Unit as identified on a list of HUD Units as submitted by the Agency to the Participant. The parties will open simultaneous escrows (e.g., the HUD Escrow) to provide the acquisition by the Agency of each specific HUD Unit which the Participant has agreed to purchase from the Agency. The parties shall execute the escrow instructions and documents as set forth in Exhibit "D" as may be necessary to accomplish the foregoing. F. [206] Affordable Housing Cost For the purposes of complying with this Agreement, all HUD Units shall be sold to low- and moderate-income households (e.g., Qualified Homebuyers) at affordable housing costs as such term is defined in Health and Safety Code Section 50052.5, or Section 8, (24 CFR 813), whichever is applicable to the Qualified Homebuyer's HOME Program or Agency MAP Program assistance, if any. The Participant agrees to be bound by all limitations for Qualified Homebuyers as set forth and in each Agency Quitclaim Deed for a HUD Unit. The form of the Agency Quitclaim Deed is included in Exhibit "D". The Participant shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency by a date no later than forty-five (45) days following the opening of the New Home Escrow, including but not limited to the HOME Program or Agency MAP Program Checklist, Verification for Applicant Eligibility, First-Time Homebuyer Disclosure Statement, Application Affidavit as applicable under the HOME Program or the Agency MAP Program as included in Exhibit "F". III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS A. [301] Rehabilitation bv Participant Participant and Agency agree that the central purpose of this Agreement it to provide for quality rehabilitation of each HUD Unit purchased from the Agency in a manner consistent with the terms and standards of this Agreement. Each HUD Unit acquired by the Participant shall be rehabilitated in accordance with the rehabilitation standards noted in Exhibit "E", attached hereto and incorporated herein. With respect to each HUD Unit, the Agency shall approve in writing all specifications, and plans, if any, including but not limited to landscaping plans, designs, and specifications of each HUD Unit to be rehabilitated as well as the proposed Marketing Plan for each HUD Unit prior to the commitment of the Agency to acquire any HUD Unit pursuant to a HUD Unit Purchase Agreement. Such approval of the Agency shall be evidenced by the Director in his/her reasonable discretion as consistent with the goals and objectives of the ARR Program, or his/her designee. 7 CDC 1999-19 1. [302] Cost of Rehabilitation The cost of undertaking the Project, including the costs of acquisition, rehabilitation, marketing and sales of each HUD Unit shall be borne solely by Participant. The Agency shall have no obligation to pay for any cost of the Project. The Participant acknowledges and agrees that the profit, if any, to be made by Participant from the disposition of each HUD Unit to a Qualified Homebuyer shall be limited to no more than fifteen percent (15%) of the gross sales price at the time resale of each such HUD Unit after rehabilitation to a Qualified Homebuyer. 2. [303] Bodily Iniury and Property Damage Insurance Participant shall indemnify defend and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency as additional insureds for claims for damages arising from the Project. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on any HUD Unit or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 8 CDC 1999-19 3. [304] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City as designated by the Director shall have the right of access to each HUD Unit, without charge or fee, at normal construction hours during the period of work for the purposes of the inspection of the work being performed in constructing the rehabilitation on the HUD Unit. The Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 304 resulting from the gross negligence or willful misconduct of the City or Agency while on the HUD Unit. This Section 304 shall not be deemed to diminish or limit any right which the City or Agency may have by operation of law irrespective of the Agreement. Nothing in this Section 304 shall be deemed to make either the City or the Agency a guarantor of the work of rehabilitation or improvement of any HUD Unit. 4. [305] Local. State and Federal Laws Participant shall carry out the Project and all related activities on any HUD Unit in conformity with all applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. 5. [306] Anti-Discrimination During Rehabilitation Participant, for itself and successors and assigns, agrees that in the rehabilitation of the HUD Unit provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [307] Taxes. Assessments, Encumbrances and Liens Prior to the issuance of a Certificate of Occupancy for any HUD Unit, Participant shall not place or allow to be placed on such HUD Unit any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on a HUD Unit, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to a Qualified Homebuyer. C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit 1. Prior to the recordation of a Certificate of Completion by the Participant for a HUD Unit, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of any HUD Unit. This prohibition shall not be deemed to prevent a transfer of a 9 CDC 1999-19 HUD Unit to a Qualified Homebuyer or the granting of temporary or permanent easements or permits to facilitate the rehabilitation of the Project. 2. Upon obtaining a Certificate of Occupancy from the City for a completed rehabilitation of a HUD Unit, the Participant shall sell such HUD Unit to a Qualified Homebuyer in accordance with and subject to the restrictions set forth in this Agreement. 3. The deed or other instrument of transfer by the Participant to any purchasers of the HUD Unit shall require that the unit be owner occupied by persons living in the units as their principal residences and shall further require that such unit shall remain available at affordable housing costs to the families of low- and moderate-income for a period of not less than ten (10) years subject to any other exceptions as may be provided by the Agency. 4. The Participant may not rent or lease any HUD Unit to a third party and during the time that the Participant may hold title to a HUD Unit, no person may use the HUD Unit for any residential dwelling purpose. D. [309] Mortgage. Deed of Trust. Sale and Financing; Rights of Holders [310] No Encumbrances Except Mortgages. Deeds of Trust or Sale for Rehabilitation Mortgages, deeds of trust other encumbrances of each HUD Unit are to be permitted before completion of the rehabilitation of a HUD Unit but only for the purpose of securing loans of funds to be used by the Participant for financing the acquisition or rehabilitation of improvements on the HUD Unit. Participant shall not enter into any other conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar lending institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 310, executed by the Director. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. E. [311] Right of Agencv to Satisfv Other Liens on the Proiect Prior to the completion of the rehabilitation on any given HUD Unit, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on a HUD Unit which are not otherwise permitted under this Agreement, Agency shall have the right, but not the obligation, to satisfy any such lien or encumbrance. 10 CDC 1999-19 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS A. [401] Uses - Covenants Running with the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to any HUD Unit, that for the period of time set forth in the Agency Quitclaim Deed, each of the HUD Units acquired by Participant shall be devoted to and available for sale solely to persons or families with an income which are very low, low and moderate, as those terms are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "C", or 24 CFR 813 whichever funding source is applicable to the Participant's prospective Qualified Homebuyer for the HUD Unit. The Participant further covenants and warrants that Participant shall undertake the rehabilitation on the HUD Units in accordance with the standards set forth in this Agreement. Participant covenants to obtain all necessary permits and rehabilitate each HUD Unit in conformity with all applicable laws. Failure to obtain all necessary permits shall be a default under this Agreement. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any HUD Unit, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any of the HUD Units. The foregoing covenants shall run with the land. These covenants shall be expressly incorporated in the Quitclaim Deed from the Agency to the Participant. B. [402] Maintenance of the HUD Units Maintenance Condition of Each HUD Unit. Between the date of the close of each HUD Escrow and the date of the close of the New Home Escrow for each such HUD Unit the Participant for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of each HUD Unit which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of close of a HUD Escrow, there is an occurrence of an adverse condition on any area of a HUD Unit which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as 11 CDC 1999-19 identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Participant has failed to comply with the provision of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the HUD Unit and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HUD Unit authorized by this Section shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in Subsection(c), below. (b) Graffiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or improvement on a HUD Unit which is visible from any public right-of-way adjacent or contiguous to the HUD Unit, shall be removed by the Participant by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HUD Unit and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HUD Unit authorized by this Subsection(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection( c ),below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HUD Unit, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably necessary to restore the HUD Unit to the maintenance standard required under Subsection(a) or Subsection(b), including attorneys fees and costs of the Office of Agency Counsel (including salaries and wages of the legal staff and pursuant of this Office of Agency Counsel) as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section, shall be a covenant running with the land, and each HUD Unit, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section shall be deemed to preclude the Participant from making any alteration, addition, or other change to any structure or improvement or landscaping on the HUD Unit, provided that such changes comply with applicable zoning and building regulations of the City. 12 CDe 1999-19 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement with respect to each Participant HUD Unit shall remain in effect for the term as set forth in the Agency Quitclaim Deed. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PROVISIONS 1. [501] Termination and Breach (a) Termination Without Default or Breach. This Agreement may be terminated for the convenience of by either party who is not then in default upon thirty (30) days notice to the other party; provided however, that for any HUD Unit for which a HUD Escrow is then open, such HUD Escrow transaction shall be closed and the HUD Unit shall thereafter be rehabilitated and offered for resale to a Qualified Homebuyer as set forth in this Agreement. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or 13 CDC 1999-19 more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary. 2. [502] Notice Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party under this Agreement shall be in writing and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as follows: Participant: Paul Chiavatti 1733 S. Douglass Road, Suite 1 Anaheim, California 92806 Agency: Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 92401 3. [503] Conflicts ofInterest Nonliabilitv No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participate, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. 4. [504] Inspection of Books, Records and Reports Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to any HUD Unit as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to any HUD Unit as pertinent to the purposes of the Agreement. 14 CDC 1999-19 The Participant shall provide quarterly reports to the Agency regarding all HUD units acquired and sold under this Agreement. 5. [505] Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the Agency's and the City's members, officials, employees and agents from and against any and all claims or liability arising from Participant's actions under this Agreement or from the conduct of Participant's business or from any activity, work or things done, permitted or suffered by Participant and shall further indemnify and hold harmless the Agency and City and their officers, employees and agents from and against any and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this Agreement arising from any negligent or wrongful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to environmental conditions, that may arise as a result of the Agency's acquisition and/or ownership of any HUD Unit that is the subject of the Agreement. VI. [600] SPECIAL PROVISIONS 1. [601] Submission of Documents to Agency for Approval Whenever this Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 2. [602] Successors in Interest The terms, covenants, conditions and restriction of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. VII. [700] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Exhibit "A" through Exhibit "F", which together with this Agreement constitute the entire understanding and agreement of the parties. 15 CDe 1999-19 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city statues, or it is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this agreement shall not be affected thereby. All waivers of the provisions of this Agreement must be in writing by the Director of the Agency or the Participant, and all amendments thereto must be in writing by the Director of the Agency or the Participant, except that the Director may only agree to non-substantive changes hereto with concurrence by Agency Special Counsel. Substantial changes to this Agreement shall require the prior approval of the governing body of the Agency. Each individual signing below represents and warrants that he or she has the authority to execute this Agreement on behalf of and bind the party helshe purports to represent. VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [801] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Director as evidenced by the date first above shown. IIII IIII IIII IIII IIII IIII 16 CDC 1999-19 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. "AGENCY" Redevelopment Agency of the City of San Bernardino Approved as to Form: By: ~),~ ~-[3-<=7c; Agency Counsel ~ "PAR TICIP ANT" By: ..~:,.---c-CC::c-=.:..:..h.. ................-". I9v~ C / r-Jt//f r.?' C)wtJ6/L ') Title: By: Title: By: Title: 17 CDC 1999-19 EXHIBIT "A" 1999 ARR AGREEMENT "Map of ARR Zone" CDC 1999-19 -::00 )>Cl);::+: ::0<'< ::0 -. 0 - -- me-(/) ::3 -. OJ a.~:J ::;:l:!:lJJ )>o~ ::3 :J "'CNa "'C 0 -- -.: ::3 :J o Cl) 0 <.0 en -.: m 3 en - !Z~ =>0 ~:JJ O-i ~:r: iF nn UU o Q g "< ~ r ~ 3 CD m 1>> ~ ::T 5'" Q. -< )> :II :II "" 3:: )> "'ll "'ll ... o o ... n> 3 en ~ ~: 5" m ~ '< [ ijj > '" :z: ~\.'0- ~ ,,\y,~J" ~ 0~~' '" ;i /' I I I 1 ~'l ~ ~ ~I AlAB~\t~ STBEf! OR\~'(1 CDC 1999-19 EXHIBIT "B" 1999 ARR AGREEMENT "Current Household Income Listings for Qualified Homebuyers" CDC 1999-19 EXHIBIT "B" 1999 Income Limits Income HOUSEHOLD SIZE Level I 2 3 4 5 6 7 8 Very Low $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 (50%) Lower* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 (80%) Median $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 (100%) Moderate** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 (120%) * If Participant's Buyer is using HOME Federal Funds the Maximum Annual Income afamily can earn is 80% of median income according to household size. ** If Participant's Buyer is using State Low/Moderate Income Housing Funds the maximum annual income a family can earn is 120% of median income according to household size. P:I.FormsIARR Program\ARR blcvme Um;t.\".duc CDC 1999-19 EXHIBIT "C" 1999 ARR AGREEMENT "ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection of HUD Units for Purchase by Participant" CDC 1999-19 ECONOMIC DEVELOPMENT AGENCY CITY OF SAN BERNARDINO "Acquisition Check List" o COPY OF HUD SALES CONTRACT (Land Use & Part A-D) o REQUEST FOR PROPERTY INSPECTION ANALYSIS FORM To be executed and returned to EDA five (5) days from the date of list of properties is provided to participant D COPY OF ESCROW INSTRUCTIONS (HUD TO EDA) D COPY OF ESCROW INSTRUCTIONS (EDA TO PARTICIPANT) D PARTICIPANT CONSTRUCTION/REHABILITATION WORK WRITE UP TO EDA INSPECTOR D PRELIMINARY TITLE REPORT D (2) SETS OF ESCROW INSTRUCTIONS TO SIGN AND RETURN EXHIBIT "1" \\EDA_SAN BEROO\PUBUC\Forms\ARR program\ARR Process.doc _7/99 3 CDC 1999-19 Economic Development Agency City of San Bernardino ACQUIsmON, REHABILITATION & RESALE PROGRAM (ARR) ARR PROCESS A. Exclusive Sales 1. EDA will receive weekly (Thursday evening) an exclusive list from HUD of units available within the Revitalization Zone. 2. EDA will distribute exclusive list to Participant no later than Friday A.M., following receipt of Thursday's list. 3. EDA has seven (7) days from receipt of list in which to express interest in any property. Thus, Participant will notify EDA within five (5) days (Tuesday, 5:00 p.m.) of receipt of list from EDA interest in property. 4. On fifth day, Participant will submit to EDA: (1) Request for Property & Inspection Analysis form. (2) HUD Sales Contract and attachments for signature by EDA staff. 5. EDA will notify Participant by ih day (Thursday, noon), when documents are ready for pick-up. B. Direct Sales 1. Tuesday evenings HUD list properties on the Internet (Direct Sales Internet Lottery Process) 2. EDA approved Participants must express interest to purchase properties by 3PM Friday (3 days after HUD's posting of Direct Sales List). Participant must perform due diligence of properties (completed property and inspection form). 3. Participant must retain HUD lottery number/confirmation number of transmission. HUD will select winner by Wednesday evening (1 week after posting Direct Sales List). 4. List of winner will be posted Wednesday evening. Participant should check this list promptly to verify whether they are the winner of the property. 1 CDC 1999-19 5. Upon verification of HUD winning lottery number, Participant will have until end of business day on Friday (2 days after HUD posts winners) to deliver a complete sales package to EDA include: - HUD Sales Contract (Original) (Include HUD Addendum A-D - HUD Land Use Restriction Addendum - Request for Property Inspection Analysis Form 6. EDA will review and execute sales package by 12:00 p.m., Monday. Participant to pick up Monday and overnight complete executed sales package to: Golden Feather, C/O Tammy Massone, 225 East Airport Drive, Suite 100, San Bernardino, California 92408, (909) 890-2370, (909) 890-3831 FAX. 7. Close of Escrow - HUD executes contracts and opens escrow at Arrowhead Escrow, 935 South Mt. Vernon, Suite 106, Colton, California 92324. (45 day maximum for closing) C. General Notes 1. Important - EDA purchases property under the name of "The Redeveloment Agency of the City of San Bernardino, a public body, corporate and politic." Therefore, all HUD contracts and documents must reflect this entity. 2. EDA's purchase is funded by Participants private lender or other funding sources with a concurrent escrow to close from EDA to the Contractor. (EDA does not provide any funding for HUD purchases or rehabilitation). 3. After close of escrow from EDA to ARR Participant, Contractor performs rehabilitation on house per the original construction work write-up and markets property for sale. Contractor is responsible for obtaining permits with building and safety for all repairs to the house. 4. EDA Inspector performs a final inspection of the property (after rehabilitation in accordance with "Contractor Construction Work Write-up'') to insure all work is completed as per these specifications. 5. Assuming the buyer has been qualified and pre-approved for the Mortgage Assistance Program (MAP), by the primary lender and EDA, and a final inspection has been performed by EDA Inspector, EDA will issue a check and fund the MAP for the buyer. P:\Forms\ARR Program\ARR Process. doc (Revised 7/99) 2 CDC 1999-19 EXHIBIT "2" Economic Development Agency City of San Bernardino "Request for Property and Inspection Analysis Form" (10 be submitted by Partidpanllo EDA with HUD Sales Contract and Attachments) . '~;\lP/iftlCi nt nfdririation, rifofina on, HUD Case #: Status: 0 Uninsured Check Approximate Location in Revitalization Zone (See Map - Exhibit "AU). Property Address: City/Zip: Bedrooms: o Insured Bath(s): Total Sq. Ft. Actual Costs Estimated Costs HUD SALES PRICE $ ELECTRONIC BID PRICE (IF APPLICABLE) $ HUD DISCOUNT PRICE $ REHABILITATION COSTS (L & M) $ PARTIGPANTS OVERHEAD $ TOTAL PROJECT COSTS $ ARR SALES PRICE $ ARR PARTICIPANT PROm $ $ $ $ $ $ $ $ $ % Profit (Maximum profit is 15% of Total Project Costs) Amount of Loan for Property (Acquisition & Rehabilitation Loan) ARR Participant Lender: Address: Phone Number: Buyer( s) Name: Family Size: MAP Loan: (Not to exceed 10% of Purchase Price) $ Annual Gross Income: Buyer's Contribution: (Minimum of $SOO) $ Participant Contribution: Closing Date Lender Name/Contact Lender Address: Lender Phone: City: Lender Fax: Please check Appropriate Categories: Sr. Citizen(S) 62 Or Older 0 Female Head of Household 0 Hispanic 0 White 0 Asian or Pacific Islander 0 Disabled Family Member 0 American Indian 0 Black 0 I OFFICE USE ONLY: % of Median = ARR Participant Signature EDA Representative Signature Date EDA Review Contract/Inspection Form/Date EDNPre-Acquisition Inspection Signature/Date EDNPost-Acquisition Inspection Signature/Date \\fDA_SAN BfROO\PUBUC\Forms\ARR Program\AAR Process.doc (Revtsed 7/99) 4 CDC 1999-19 EXHIBIT "D" 1999 ARR AGREEMENT HUD Escrow Documents: (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents CDe 1999-19 l:.S. DEPT. OF 1I0l'SI\C & URBAi\ DE\TLOP\IEr\T Addendum A I RI\' <1 1(0) .........FORFEITURE A:'.'D EXTENSION POLiCy......... t\lllll.'[) Pr,'p~ns 1)',poS'IIOIl SJks 01 111'f):lcqllll~d 1""i'c'IlI'" :Ire 10 close WIII\111 <1" dJSS 01' JCcL'pUllc'e ,d:l 1Il'1) I)"<1~ ( I (9) SJk, COlltr:lCl oi'ln 10 purch:ls~ Forf~il\Jr~ of EJrll~,t :'-IOll~Y D~posil\. Th~ IJ1IuI~ b\ a PlIlchas~r 10 clos~ all the S:l1e 01 pr<'!','!l\ ",tllIlllhe allowable [Iln~ p~rlod. Illcllldlll~ Jll\ nl,'IlSIOllS ~1:llll~d b, IlljD. w 111 r~suh III [h~ fOlfelture of [h~ ~JfIle,[ 1l101lC\ ,'q'P"1. nc"pl w here [h~ purcluser pr~s~llIs dOdlll,ellUIII'" to Ill'f) tlul 1,11,' of the specIal ClfcumstallCes d~scllb~d Ir1 para~l:lphs 1:1 I :llld (b) b~low of tillS S~CI1011 h:ls occllrred (a) Illv~slor Purchasers (I) Th~ fJ1Iure by JIl Illvestor Purchaser [a close OIl all ulllllsured sale w1l1 result III forf~ltur~ of the ellllfe eamest mOlley d~poslt (21 hfty percent of th~ earnest money depoSlI OIl JIl II1sured sale will be returned 10 an In'~stor Purchaser where IlUD (01 a Dlfect [ndor\~menllender uSIng III 'I) gUldellll~sl d~terll1111eS thatlhe Purchaser IS ll,lt all acceptahle borrower (b) (I) Ow n~r-Occupant Purchasers The ~nl1r~ ~amest money depOSIt w ill be r~tlir",'d to In owner-occupant Purchaser w Ih) fail, [0 c1()S~ w her~. s'nc~ th~ (untrJ(t of s:1k \\"35 SIgned 1 he're has be~ll a death III th~ Imnll'dlal~ Lllllli'. ICI\lllrJct IllJlder. spouse, or childrell 11\ IIl~ In Ih~ sam~ household I. (I) (Il) Ihne hJS b~en a r~cent se[lous i1ln~)s III Ih,' If'"nedlat~ fallllly that has resulted Ifl S1~IlII-I(;lllt m~dlcal ~Xp~IIS~S or 5llbsulltlJllolS of ,ncome. thus ad'~ls~h' a 1'1,', :Ing the purchaser's fInancIal abilIty to cl,he the sale (1111 Ihne has been a loss of Job \1\ one 1,1 [he' pI"'U!S ble:l,h Iflners. or substanllalloss of IllCPllle thlPugh nu fJul1 "l the Purchas~r. (l\) In th~ case of an 1I1sured sale. IILD (or J Illl,.~t [1l,1,"S~l1lent lender uSIng HUD gUldehn~s) (ktenlllnes th,lIth~ Purchaser IS not an acceptable borro"er. 01 (\) f'01 other gllod cause, as deterrlllned b.. th<, (,eld OtTk~ (21 In the case 01 an un1l1sured luan w her~. despite good fJlth crforts by [he Purchaser, there IS an 1I1ablhty to oblJln J mortgage loan from a recognIzed 11l0rtgag~ lenckr. 50 percent of the earnest money depuslt w III be returned (3) On eIther type of sale, forfel[ 100 perce1\\ ul Ihe depOSit 111 those 1I1stanees where n,) dt)cul1lentatlon IS submItted, \\ helc th~ docurnenlJllOn fa1ls to provld~ an acc~pubk CJuse for the l3uyer's failure to cluse, or where docume1\tallon IS not pro\1d~d wllhll\ a reasonable [Ime fl)llowl1\g C01\\IJC\ ca1\cellatloll (e g, 30 daysl Extensions. llle Golden FeJ\h~r Realty off,ce w1l1 gra1\t ext~lblllllS of 1l11le upon wntte1\ request from purchaser ExtenSIons of tlllle to close the SJIe ar~ en\lrdy wIthin the Seller's dlSCrel101\ .'\n n:~1\S1on. ,I' grallted, w1I1 be under the full1\wlng cllndltlons (JI ..\ \\lItte1\ re'luesl lor an eXI~nSlOlll1lU'\ he' 'c', ,'l\ <,d b.. (jol,kn Feather ReJlty 1\U blt'l thJ1\ fl\~ ,\Jvs bet',,,e Ih~ scheduled deJ,lIl1\~ fur clOSIng (b) Ih~ d,JCul1lentallu1\ subl1lltt~d wI\h Ih,' lecluc"\ Illl"t t"t.1hI15h the CJuse 01 debs' a1\d that murlgJg~ Jppro\JII' 11\1I11lne1\1 dUllng the ext~nSlO1\ perIOd (CI ,\n nt~1\sJ\\1l ,\III be for a p~llod oll-II'tl'~1\ ..1[,'1\.1.11 c!.Iys at a fee ofS375 Oil (20'K,O dJvs. 57"0 00) I'ecs I(~l\lf,cd funds I w1l1 bc (kpoSlted 11\ eser1\" 1I1111\cdlJl':;' Up<1\1 .Ippru'.Il (ti, 1.,tl'!1')IOIl fl..'C'\ stull bl...' rt.:tJlfH:d t'\ ~\.'lk'l 11 J ,';\\'iII1:; d\.h.'':> !lot U(LUf (el :\Irhe IlIlIe ul clo'l1\g. unused nt,'I\\I01\ Il'c', ,.,111 he proral~d to [he f'urchJ,el .llId [~lulI,led by e,ClOW (1'1 Ihe ~rJrlllllg ul olle cxtellSlull ,1lJll'l<l( "hl,,'.I:" th,' S,'ller tll grallt add,[ltlrl.lI <,\[ell"I"\\. and the S~ller shJl1 declJre J IkLlldt for lilt' PUrdlJ"ll'I'l' LIIh.:I( III \...1\1'..... ::',\..' ,>J!\.' U{'tHl tilL" t.:\PIL.ltllHl Oflhc ()rl~IIUI \.:I\l'.lll~ PCfll,d nr tl['1111l t'\j1IIJtl\\fl tll thl..' 1..'\tt'lhHIll CDe 1999-19 Allowable Closing Costs. The following closing costs with a combined value of not more than 3% of Ime 3 of the 9548 (1/99) Sales Contract may be credited to Line 5 of the Sales Contract Funds not consumed WIll be credited to the Seller 10'0 Loan OflgllJ:ltlon Fee CredIt Report Impounds Interest Hazard Insurance Lenders Coverage Poilcv Ow ners Coverage Poilcy ~otary Taxes (Current tax year) HOA Dues (Current month plus one) AUTOMATICALL Y PAID BY HUD (not inclllded on line 3) Recordmg Fees - Deed and \Iortgage City/County Tax/Stamps Escrow Closing Fee WIre Transfer Fee to Washington. DC HUD Case ~o Property Address' CI1Y' Seller Disclosure. Seller makes no representations or warranties conceming the condition of the property, mcludmg but not ilmited to mechanrcal systems, dry basement, foundation, structural. or compliance with code, zoning or buildmg requirements and will make no repairs to the property after execution of this conTract Purchaser understands that regardless of whether the property is being fmanced with an FHA-insured mortgage, Seller does not guarantee or warrant that the property is free of visible or hidden structural defects, termite damage, lead-based pamt, or any other condition that may render the property uninhabitable or otherwise unusable. purchaser acknowledges responsIbility for taking such action as it believes necessary to satisfy itself that the property is in a condition acceptable to it, of laws, regulations and ordinances affecting the property, and agrees to accept the property in the condition existing on the date of thiS contract Seller disclosure concerning HOA dues, Mello Roos taxes, assessments, or any tax concerning HUD homes is based on avarlable informatIon but not deemed complete or accurate It is the responsibility of the Buyer to obtain all infornlation concern 109 these issues. Walk-Thru Inspection, All purchasers are strongly encouraged to perform a walk through inspection PRIOR to the close of escrow. If a purchaser discovers a property condition that did not exist at the time of sale they must immedIately notify HUD's property manager, Golden Feather Realty, of the damage. The buyer assumes full responsibility for the property and its condition on the date of close of escrow The Department assumes no responsibrll1Y, and will make no settlement, for damages reported to HUD after the close of escrow. (See item # 13E of !-IUD Sales Contract) Buyer Certlt1c;Jtlon I. \w certify thaI !.\ve have been Interviewed, completed a loan application, veflt1catlon of employments and obtained a full credit report from the lendn that has prOVIded the attached Letter of Commitment liwe understand that L'we WIll forfeit our earnest money dep<lSI1 If" center mto thiS contract \\ Ithout completmg tillS qualification proce,ss Signatures (Purchaser) (Purchaser) _._---~------ - ..--~-- (Purchaser) (Purchaser) CDe 1999-19 LAND USE RESTRICTION ADDENDUM Thi, Addendum IS Incorporated by reference to the FHA Sales Contract for Ihe properry located al ..____, execured on thl$ same day of ~____, 199 be~een (Purch"ser) and the Depar1ment of HousIng and Urban Development (Seller) Unless an exception is pantcd In writing by tile Seller <1 The Purc/ld,er IS expected, at a minimum, to rtpalr the propeny according 10 local code, after which II shall resell the propeny only tn a person who inlends to occupy as his or her prinCipal rcsldenee and whosc Income is at o[ below 115 percenl of [he median income in the area, when adjusted for family Size, or a State, government entiry, [Tine, or agency thereof, or a private nonprofit organiz.ation as dcfined in 24 CFR 291.405. b. The purchaser shall not resell the propeny for an amoun! in excess of liD percent of tile net development cost. Net developmerH cost is the total cost of Ihe prOject, including items such as acqUisition cost, archllectural fees, permits Hnd survey expenses, insur<lnce, rehabIlitation, and taxes It does not Include a developer's fee. Total costs incurred by the Purchaser, tncluding those for acquisition fUlliI1cing, management, rehabilitation, and selling expenses, are expecled to be reasonable and cu,lomary for the area in which this property I~ located. e The developer's fee provides for Purchaser's overhead anu staffing cosls related 10 the project, and may not exceed 10 percent of the net development cost d fhe property may not be occupied by or resold 10 any of the Purchaser's officer." directors, ekcteu ur MPpointed omcials, employees, business associates. or to Mny individual who is relaled hy blood. marriage, or law to any of the above. e There m,~y be no conflict of Interest with individuals or firms that may provide acqUISition or rehabilitMllon funding, management or sales services, or other associated with the project. 2. Purchaser must provide pmodic reports, as specified by 24 CFR 291.110 and in ule format and frequency specified by HUD, regarding the purchase and resule of propcrtles subject to this Addendum. 3. TIti, Auuendum survives the expiflltion, if any, by operation of law or otherwise, ot the FHA Sales Contract, and shallterminale five years from the date contained herein. Purchaser Witness Secretary of Housinj:( and Urban Development Seller Witness By'~ CDe 1999-19 LEAD-BASED PA!:-;T ADDE:-;Dl:\! TO SALES CO:-;TRACT - PROPERTY BUILT BEFORE 1978 A rr ACH:-'IENT A Page 1 of 4 FHA CASE NO PROPERTY ADDRESS ;\OTE TO PU{C1L\SERS. REAL EST..\. TE BROKERS A:"D AGE:"TS: 771/5 addendum 15 mandalOry for any propar} budr before /978 and can5r5f5 affaur paru PlIrt A.DlSclosure of Information on Lt'ad-Based Pain! Qnteor l.ead-Bascd Pmnt fla:ards. Part B. Sales Contracr Lead Based Patnl Eva/uar/on Conungl.'ncy. Part C Oh"ner-OcClJpanl (crt/jleal/on. and Part D. Purchaser's Addendl4m /0 rhe Sales Contract - Re{t~l1se of Lead Bllsed POInt E~'alua(lOn Contingency. All paris !t11.st bt! comp!C(t't{ as sho\\"n l1w Lt'ad-8ascd Paint Addendum musl be complCICd on or b(1ore the dllle of the Sales Contract, and forwarded 10 HUD .....ith the Sales ConrrGClfor am property bUill b,/ore /978 Sales Contracts 'KUIrOlJllhl5 Addend/,m .....", not be accepted br /It'D 77//5 Addendum survi\'l'sthe closing oflhe salt! PART A DISCLOSl'RE OF INFORJIATlO.v ON LEAD-BASED PAI,'v'T AND/OR LEAD BASED PAINT flAZ.jRDS LEAD \\'AR~I:\C STATE\If:"\T. En-ry purchaser afany intert'st In rC5uh'nl/a! real propaty all \\hlch II re~j(!enlial d.n'lImg .,,"as builr pnor to 197815 nOl/fled ilwt nu."h proflt'ro mll\ prt.'sen: CXpO\14re to It'ad from lead-based Ihal may place young children at fisk of dc~"claplng lead pOIsoning Lead poisonIng in young children ma} produce pt'rml:rh'nl r:t.urologlcd damage. mclL~dlng learning dj5ahilull's, reduced Inrelllgt>nce quOtlenl. behanoral problems. and Impatred memory. Lead pOison/fig nl.scJ po.\t'S 11 pfJrfltu!,Jr rL\/... IV p'-t':sntlnf h'omerl Tne sellt'r of any Infl'rC51 III rt'sldt'f/11111 proper(\ 15 rt"i.jlllred lO prvvuie lhe buyer .,,-Ill! any Informal/on on ll!ad-vmed pmnl ha:ards from risk ilsst'ssm,'nlS or Inspections in the sdler's pOSSCHlOn and nouf) the bl.yer of any kno"n Icad-based palnl hn:ards A risk assessmenl or inspectwnfor possd)/c !t'ad- bajcd pamt ha:ards IS rt'commended pnor to purchase SELLER'S DISCLOSCRE A Presence of kad-based paint and/or lead-based pamt hazards (check one below) 1 Known lead-based paint and/or lead-based paint hazards are present in the property (explain): 2, Seller has no actual knowledge of lead-based paint and'or lead-based paint hazards in the property, B Records and reports available to the seller (check one below) I, Seller has prOVIded the purchaser with all a\'ailable records and reports pertaimng to lead-based pamt andJor lead- based paint hazards in the property (list documents below), 2 Seller has no reports or records pertaIning to lead-based paint and'or lead-based paint hazards U1 the property PURCHASER'S ACK."\O\\"LEDGEl\IENT (initlal) C. Purchaser has recel\'ed copies of all infomlation listed above D, Purchaser has received the pamphlet Protect Your Family from Lead In Your Home, L Purchaser has (check one below): I, Requested a 15 day opportUmty to conduct a rISk assessment or mspectlon for the presence of lead-based paint and or lead-based paint hazards; or 2 Waned the opportUnity to conduct a rISk assessment or inspection for the presence of lead-based paint andJor lead- based paint hazards, BROKERJAGE1'\T ACK."\O\VLEDGEl\IEi'iT (mitlal) F Broker/agent has informed the seller of the seller's obligations under 42 USe. 4852d and is aware of his/her responSibility to ensure compl1ance, CERT!FICATIO:-; OF ACCURACY The following parties ha\'e reviewed the infomution ahO\T and certify. to the best of their knowledge, that the information they haw provided is true and accurate, Seller Date Purchaser Date Purchaser Date Broker' Agent Date 9/96 CDe 1999-19 Attachment A Page 2 of 4 PART B SALES co:"aRACT LEAD-BASED PAI:"<T EVALUATION CONTINGENCY This contract is contingent upon a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-based paint hazards at the Purchaser's expense until 12 noon on the 15th calendar day after acceptance, on [Insert date] This contingency will tem1inate at the above predctcrmll1ed deadline unless the Purchaser or Purchaser's agent delivers to the Seller or Seller's agent Part D of this addendum listing the specific lead-based paint hazards and corrections needed, together with a copy of the inspection and/or risk assessment report. The Seller may, at the Seller's option, within fi\'e days after delivery of Part D of this Addendum, elect in v,,'riting whether to correct the hazards(s) prior to settlement. If the Seller will correct the hazard(s), the seller shall furnish the Purchaser with certification from a risk assessor or inspector demonstrating that the hazard(s) have been remedied before the date of the settlement. If the Seller does not elect to make repairs, or if the Seller makes a counter-offer, the Purchaser shall have five days to respond to the counter offer or remove this contingency and take the property in its "as is" condition or this contract shall become void. The Purchaser may remove this contingency at any time without clause. INTACT LEAD-BASED P AIi\T THAT IS IN GOOD CONDITION IS NOT i\ECESSARIL Y A HAZARD See EPA pamphlet Protect Your Family From Lcad ill Your Home for more information. Lead-Based Pamt Addendum to the Sales Contract - Property BUIlt Before 1978, including Part A, Disclosure of InformatIOn on Lead-Based Paint and/or Lead Based Paint H!l~anls. Part C. 0" n~r-Occupant Certification (if applicable), and Part D. Purc!/(lSa's Add~ndum 10 the Sales COn/ract _ Reli'asi' of Lead-Basi'd P,IInl EnIiuallOn Contingency, if applicable, must also be completed and made a part of this Sales Contract. 9/96 CDC 1999-19 Attachment A Page 3 of 4 PART C OWl"ER-OCCL'PAl"T CERTIFICA TIOl'i TO BE CO\lPLETED B'{ ALL OWNER-OCCUPANT PURCHASERS ONLY Chcck anJ complete the folloWIng, as appropriate _ Uwe do not ha\ c a chIld under the age of SC\Tn years _ Uwe do ha\'e a child under the age of sevcn years Thclr names and ages are as follows Name Age Check only one of the following blocks if children under seven are indicated above: _ I/we understand that within 15 days after acceptance by HUD of my/our offer to purchase, Uwe will at my/our expense, have each of the above-named children tested for an elevated blood level (EBL) and that Uv.;e will provide these tests to HUD, If Uwe fail to provide the test results to HUD within the 15 day time frame, the contract will be canceled immediately without further notice, Further, Uwe understand that if an EBL condition is identified, U\ve have the option to: I) cancel this contract and receive our earnest money deposit back, or 2) complete the sale of the property within the understanding that Uwe will, at a minimum, have the property tested for the presence of lead-based paint on all chewable surfaces and, where lead-based paint on chewable surfaces is identi fied, ha\'e such paint surfaces abated _ I/we fully understand that if a blood lead level screening program is not reasonably available or if L\ve refuse to have my/our child(ren) tested, I/we have the option of closing this sale. I/we hereby acknowledge that this property Uwe am/are purchasing from the Department of Housing and Urban Development may contain lead-based paint. However, despite this possibility, IIwe elect to close the sale on this property. Further, I/we agree to hold HUD harmless for this action. Signature of Purchaser Signature of Purchaser Date Signature of Witness Date ') ')6 CDC 1999-19 Attachment A Page 4 of 4 L\D BASED PAIYf ADDE:\'Dl::\1 TO SALES CO:\'TRACT - PROPERTY BUILT BEFORE 1978 FilA CASE NO. PROPERTY ADDRESS PART D PURCHASER'S ADDE.\'DUAf TO THE SALES CONTRACT- RELEASE OF LEAD-SHED PAI1\T EVALUATION CONTlNCn,;Cr Ifpurch(25er lIllI/aled ParI A Ift'f1l E I uf/he Lcod-Rased Plli"l Addendum tv thl! SJ/es Contracl - Propl.!rtlt's BUlIl ilt/uTe /973 f..lddc?ndumJ. rlus Part D ,,/III[ bt' COmph'lCd as shu\\'ll Qnd pro\'ided to rhe St!!Icr on or before the du/e ShOH fl in the Addendum, Purl B. or the COf/llI/gene} is tcrmlfl.z.'I..,d Ifpurchu5t!r Jfllualed Par! A, Item E. 2 tllt'lI (11l5 Pdrl D is Ullneccssan- dnd !1l'ed flot to At' complered or pro ~-Idl..'d Iv lhe Seller PURCHASER'S ACKJ'iOWLEDGEi\lEl"T (check appropriate boxes) [ ] Purchaser acknowledges that he/she has received a 15 day opportunity (or other mutually agreed upon period) to conduct a risk assessment or lead-based paint inspection for the presence of lead-based paint and/or lead-based pamt hazards, that such a risk assessment or lead-based paintmspectlon has been made [ ] Purchaser acknowledges that Seller is under no oblIgation to correct any lead-based paint and/or lead- based paint hazards identified by the lead-based pamt mspection and/or risk assessment and hereby removes the contingency and accepts the property 111 its "as is" condition, without warranty, as described in item B, Conditions of Sale of the contract [ ] Purchaser requests that Se Iler take the following action to correct the lead-based pamt hazards noted Lead-Based Paint Hazard Correetive Aetion Requested Purchaser has attached the risk assessment or inspection report. [I' Seller refuses thiS request, Purchaser reserves the nght to contmue WIth the purchase or request cancellation of the sales contract. [ ] Purchaser requests cancellation of the sales contract due to the following defiCiencies indicated Ulthe attached report(s): CERTlFICA TlO:\' OF ACCUR~CY The followmg parties have reviewed the infomlation above and certify, to the best of their knowledge, that the informatlon they have provided is true and accurate. Purchaser Date Purchaser Date Broker/ Agent Date 9% CDC 1999-19 HUD UNIT PURCHASE AND SALE AGREEMENT Property Address: THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is dated for identification purposes only, as of , 199 , and is made and entered into by and between the REDEVELOPMENT AGENCY OF THE CITY 01' SAN BElWARDINO (the "Agency") and (the "participant"), with reference to the following: RECtTAJi,S A. WHEREAS, the Agency and the Secretary of Housing and Urban Development (the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition Program a coPY of which is attached hereto as E~hibit "A" (the "HUD Contract") regarding sale by the Secretary to the Agency of that certain property commonly known as , San Bernardino, California (the "HUD Unit"). A legal description of the HUD Unit is attached hereto as Exhibit "B"; and B. WHEREAS, subj ect to the terms and conditions of that certain Acquisition, Rehabilitation and Resale (ARR) Agreement dated 1999 (the "ARR ~greement"), by and between the Participant and the Agency and this Agreement, Agency desires to sell the HUD Unit to the Participant and the Participant desires to purchase the HUD Unit from the Agency at the close of the "HUD Escrow" as set forth herein. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS; 1. Warrantv of Authority by Pl';!,rticipant. The Participant warrants that it is a under the laws of the State of California, and i$ authorized to execute this Agreement and all of the documents and instruments contemplated hereby, including, without limitation, supplemental escrow instructions and the Acceptance Of Agency Quitclaim Deed; and that this transaction has been approved by [resolution of its board of directors]. A certified copy of that (resolution] which remains in effect, will be delivered to Agency before the close of the HUD Escrow as set forth herein. SBEO/OOOlfOOC/3515 6/15/99 245 ct 1 CDC 1999-19 2. Agreement to Sell and to Purchase. Subject to the terms and conditions of this Agreement, the Agency agrees to sell and the Participant agrees to purchase the HUD Unit. 3. Pu:;ohase Price. The "Purchase Price" for the HUD Unit is the same sum in cash or immediately available funds in United States Currency as the discounted purCha$e price which the Agency has agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit. The Purchaser Price shall be payable by the Participant's delivery of the full amount to the escrow holder in cash or by wire transfer of immediately available funds at least one(1) business day before close of the HUD Escrow or by cashier's check during business hours at least three(3) business days before the close the HUD Escrow. 4. HQtl Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees to pay all of the costs of the escrow holder in the HUD Escrow inclllding all amounts charged to the account of the Secretary and the A.gency. The escrow holder is hereby instructed to collect such costs and charges from the Participant at the close of the HUD Escrow. 5. Conditions for the B1lmefit of the Agency. The obligation of the Agency to perform this Agreement is subject to the satisfaction of the following conditions, which are for the Agency's benefit only: (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen(15) days after the date hereof; (b) ,'that the Secretary perform under the HUD Contract and the title of the HUD Unit actually be transferred from HUD to the Agency within forty-five(45) days after the date hereof; (c) the Agency shall have received, satisfactory to the Executive Director, a the insurance required pursuant to Section in form and substance certificate evidencing 16 of this Agreement; (d) that the Participant has duly execute and deliver to the escrow holder, in recordable form the Acceptance of the Participant of the Agency Quitclaim Deed. (e) that the Participant not otherwise be in default under its other obligations to the Agency under the ARR Agreement. SBEO/OOOI/DOC/3515 6/15/99 245 ct 2 CDC 1999-19 The conditions set forth above are for the Agency's benefit only and the Executive Director of the Agency (the ~Executive DirectorH) may waive all or any part of such rights by written notice to the Participant and escrow holder. If any of said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Executive Director, the Agency may thereafter terminate this Agreement without any liability on the part of the Agency by giving written notice of termination to the escrow holder, with a copy to the Participant. Escrow holder shall thereupon, without further consent from the Participant, return to each party the documents, if any, deposited by them. 6. Conditions for Participant's Participant to perform this satisfaction of the following Participant's benefit only: Benefit. Agreement condi tions, The obligation of is subj ect to which are for the the the (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen (15) days after the date hereof; and (b) HUD Uni t after the that the Secretary perform under the HUD Contract and the actually transfer from HUD within forty-five (45) days date hereof. The conditions set forth above are for the Participant's benefit only and the Participant may waive all or any part of such rights by written notice to the Agency and the escrow holder. If any said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Participant, subject to the approval of the Secretary and the Agency, the Participant may thereafter terminate this Agreement without any liability on the part of the Participant by giving written notice of termination to the escrow holder, with a copy to the Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each party the documents, if any, deposited by them. 7. E~crow. The transfer of the HUD Unit to the Participant shall be consummated through an escrow established with the escrow agent engaged by the Secretary to handle the transfer of the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a schedule coordinated with the closing or the transfer of the HUD Unit between the Secretary and the Agency under the HUD Contract. This Agreement shall constitute the escrow instructions to the escrow holder of the Participant and the Agency with respect to the HUD Unit. The Agency and the Participant shall execute such SBEO/0001/DOC/3515 6/15/99 245 ct 3 CDC 1999-19 additional escrow instructions as may be reasonably required by the escrow holder. 8. Term of Escrow. Escrow shall close concurrently with the close of escrow under the HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the County of San Bernardino, California. 9. Co~diti~n of Title. The Agency shall convey to the Participant by quitclaim deed all of the right, title and interest in the HUD Unit which the Agency receives from the Secretary under the HUD Contract. The form Of the Agency Quitclaim Deed is attached hereto as Exhibit "c" and incorporated herein by this reference. 10. Title Insurance. The Agency shall not be responsible for providing any title insurance to the Participant in connection with the transfer of title in the HOD Unit to the Participant. Any title insurance desired by the Participant shall be ordered and paid for by the Participant at its sole cost and expense. 11. p~~rations. All assessments, including improvement assessments which are available for payment without interest or penalty for advance payment, tax~s, rent, and ground rent, if any, shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently with the escrow under the HUD Contract, through which escrow such items will be prorated between the Secretary and the Agency, the parties acknowledge and agree that the Participant shall be charged for such prorations in precisely the same amount as the Agency is charged under the HUD Contract. 12. E~crow Closing Costs. The Participant shall pay all escrow closing costs of both parties, including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the Participant shall pay all closing costs and expenses charged to the Agency in the escrow by which HUD transfers the HUD Unit to the Participant. 13. C~osin9. At the Close of Escrow, (a) the Agency shall deliver to the Participant through escrow a the Agency Quitclaim Deed conveying the HUD Unit to the Participant, (b) the Participant shall deliver to the Agency through eScrow the acceptance of the Agency Quitclaim Deed, and (c) the escrow holder shall collect and pay the SBEO/0001/DOC/3515 6/15/99 245 ct 4 CDC 1999-19 sums indicated for the transfe;r of the HUD Unit under the HUD Contract and this Agreement and deliver such other documents to the parties in accordance with the instructions of each of them. At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed to be recorded in the Official Records of the County of San Bernardino, California. 14. Condition of the HUD Unit. The Agency makes no representation or warranty to the Participant or to any third party concerning the condition of the HUD Unit, including, without limitation, mechanical systems, dry basement, foundation, structural, or compliance with code, zoning Or building requirements and the Agency will make no repairs to the HUD Unit either before or after execution of this Agreement. The participant understands that the Agency does not guarantee or warrant that the HUD Unit is free of visible or hidden structural d~fect, termite damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or otherwise us~ble. Participant acknowledges responsibility for taking such action and conducting such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit in the same condition delivered to the Agency by the Secretary, in an "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS" condition. 15. Possessipn; Repairs. The Participant may not perform repairs nor take possession of the HUD Unit until the escrow is closed. At the close of the HUD Escrow, the Participant may take possession of the HUD Unit and promptly commence the work of rehabilitation as required for the HUD Unit under the ARR Agreement. 16. Insurance. Prior to the Close of Escrow, the Participant shall obtain and shall thereafter maintain in full force and effect at all times a broad-form comprehensive general liability policy with a limit of not less than $1,000,000.00. Such insurance shall provide for a 3D-day notice to the Agency before cancellation of the policy and shall name the Agency as an additional insured as to claims arising out of the work to be performed on the HUD Unit following the Close of Escrow pursuant to the ARR Agreement. 17. As~ianment. The Participant and the Agency each agree that this Agreement shall be binding upon their respective, heirs, executors, administrators, successors or assigns and is not assignable by the Participant unlesS the written consent of the Executive Director is first obtained, which consent the Executive Director may withhold in his or her sole ,and absolute discretion. SBEO/0001/DOC/3515 6/15/99 245 ct 5 CDC 1999-19 18. Notices. All notices, demands and requests which may be given by either party to the other or to the escrow holder shall be in writing and shall be deemed to be given upon personal delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt requested, postage prepaid, addressed to the party to be notified at the address following the party's signature or if addressed to the escrow holder, at the address set forth in the supplemental escrow instruments signed by the parties. Either party may designate by written notice to the other party in the manner set forth in this Agreement another address for notice. 19. Miscellaneous Provisions. 19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to enforce, any provision of this Agreement shall not be a waiver of any further breach of such provision hereof. The waiver by either or both parties of the time for performing an act shall not be a waiver of the time for performing any other act or acts required hereunder. 19.2 Modifications. No change or addition to this Agreement or any part hereof shall be valid unless in writing and signed by each of the parties. 19.3 Governing Law. California law. This Agreement shall be governed by 19.4 Headinas. The headings in this Agreement are for convenience only and shall not be used to interpret this Agreement. 19.5 Further Acts. Each party agrees to take such further action and to execute and deliver such further documents as may be necessary to carry out the purposes of the ARR Agreement with respect to the HUD Unit and this Agreement. 19.6 Attorneys' Fees. If either party incurs attorneys' fees to enforce this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees as set by the court from the other party. 19.7 No Real Estate Brokers Commission Payable By the Agency. The Agency shall not be responsible for the payment of any real estate brokers commission or finders fee in connection with the escrow or the transfer of the HUD Unit to the Participant. SBEO/0001/DOC/3515 6/15/99 245 ct 6 CDC 1999-19 19.8 Time. Agreement. Time is of the essence with respect to this IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director PARTICIPANT By: Its: By: Its: SBEO/0001/DOC/3515 6/15/99 245 ct 7 CDC 1999-19 [address of Participant under the ARR Agreement] ) ) ) ) ) ) ) ) ) ) ) (S~ace above line reserved for use by Recorder) RECORDING REQUESTED BY Redevelopment Agency of the City of San Bernardino AND WHEN RECORDED MAIL PROPERTY TAX BILL TO: REDEVELOPMENT AGENCY OF tHE CITY OF SAN BERNARDINO QUI~CLAIM DEED OF A PUBLIC AGENCY AND COMMUNI~Y ~DllIVELOPMB:NT AFFORDABLE SINGLE FAMILY RESIDEN~IAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS [ARR Program: (Name of Grantee/Participant)] PART A THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS (the "Quitclaim Deed") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") in certain real property situated at , San Bernardino, California (the "Property") to , (the "Participant"), subject to the community redevelopment affordable single family housing conditions, covenants ano restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the community redevelopment affordable single family housing conditions, covenants and restrictions of this Quitclaim Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 1 of 7 CDC 1999-19 (-- The property--) , on Official Records of the Office of San Bernardino County. file in the of the Recorder PART B The quitclaim of the Property by the Agency to the Participant is expressly subject to the satisfaction of the fol~owing community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain Acquisition, Rehabilitation, Resale Agreement dated (the "ARR Agreement") by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty-five (25) years commencing on the date of recordation of this Quitclaim Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated for occupancy only to a "person" or a "family" who is a "Qualified Homebuyer" for a term of the shorter period of either: (i) twenty-five (25) years from the date of recordation of this Quitclaim Deed; or (ii) the term, as provided in the ARR Agreement Covenant described in subparagraph 3, below. The words "Qualified Homebuyer" refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first-time homebuyer," as defined in Health and Safety Code Section 50068.5, and whose annual income during the twelve (12) months preceding the date of initial occupancy of the Property by the Qualified Homebuyer does not eXC$ed the income qualification limits for "lower income households", as defined in Health and Safety Code Section 50079.5 (Statutes of 1979: Chapter 96). Health and Safety Code Section 50079.5 provides: "'Lower Income households' means persons and families whose income does not exceed the qualifying limits for lower income SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 2 of 7 CDC 1999-19 families as established and amended from time to time pursuant to Section 8 of the United States Ho~sing Act of 1937. The limits shall be published by the department in the California Administrative COde as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. As used in this section, I area median income' means the median family income of a geographic area of the state." 3. As a condition precedent to any transfer, sale, conveyance, grant oir other hypothecation by the Participant of the Property to a Qualified Homebuyer the "Acquisition, Rehabilitation Resale Affordability Use and Occupancy CovenantH (the MARR CovenantH), substantially in the form attached hereto as Exhibit "A-1H or Exhibit "A-2,H as applicable and as incorporated herein by this reference shall be fUlly executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The final form of the.ARR Covenant shall be consistent wi th the terms and conditions ot the ARR Agreement as applicable to the Qualified Homeb.uyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the ARR Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the ARR Covenant shall be a separate community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and aS$ign of the Qualified Homebuyer for the term as provided in the ARR Covenant. 4. Prior to the recordation of the ARR Covenant as provided in subparagraph 3 of PART B of this Quitclaim Deed, the Property shall not be offered for sale or sold to a Qualified Homebuyer for a sale price which exceeds more than Dollars ($ ) , exclusive of customary and reasonable "escrow" and sales SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 3 of 7 CDC 1999-19 transactional costs wh~ch may be normally allocated to a Qualified Homebuyer by an owner-builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of PART B of the Quitclaim Deed shall have no further force or effe~t upon the property after the date of the complete execution and recordation of the ARR Covenant. 5. The Property shall be subject to the following affordable housing redevelopment 40venant in perpetuity and the text which appears in this Quitclaim Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herselr, his or her heirs, executors, administr~tors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, anY person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenur~ or enj oyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PAAT C During the term of subparagrapl'1 2 of PART B, but prior to the recordation of a fully-executed copy of the ARR Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales ~nd ancillary business activity on the Property associated with the improvement and sale by the Developer, pursuant to the ARR Agreement, of an affordable single family dwelling unit on the Property prior a Qualified Homebuyer. The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the ARR Covenant. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 4 of 7 COC 1999-19 pAAT 0 The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an increase, improvement and preservation of the community I s supply of low- and moderate-income housing. The transfer of the Property by the Agency to the Developer for this purpose and the recordation of this Quitclaim Deed is authorized by Health and Safety Code SectionS 33334.2 and 33334.3, and other applicable law and actions of the Agency, including without limitation, the ARR Agreement. PAAT ~ Upon the delivery of this Quitclaim Deed to the Participant, the community redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by eith~r the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(fl (2) a9ainst the Participant and each successor in interest or assignee of the participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property. SBEO/0001/00C/3513.1 6/15/99 1200 ct Page 5 of 7 CDC 1999-19 THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized signatures of the Executive Director of the Agency. Dated: Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] [NOTE: Exhibit "A-I" MAP Assistance) Exhibit "A-2" Program) ] SBEO/0001/DOC/3513.1 6/15/99 1200 ct AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic General Form of ARR Covenant (Agency General Form of ARR Covenant (HOME Page 6 of 7 CDC 1999-19 ACCEPTANCE OF QUITCLAIM DEED AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDEUTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT (the "Participant"), hereby accepts the delivery of the instrument identified above as the "Quitclaim Deed of a Public Agency and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Quitclaim Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San BernardinQ, subject to the conditions, covenants and restrictions contained in the Quitclaim Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property to be improved and rehabilitated as set forth in the ARR Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Quitclaim Deed which touch and concern the Property and are community redevelopment covenants which run with the land. PARTICIPANT Dated: By Its: By: Its [NOTARY JURAT ATTACHED] SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 7 of 7 CDC 1999-19 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of San Bernardino 201 North -E" Street, Suite 301 San Bernardino, CA 92401 Attn: Executive Director (Space Above Line Reserved For Use By Recorder) RECORDATION OF THI~ INSTRUMENT IS EXEMPT FROM ALL FEES AND TAXES REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS FOR THE ARR PROGRAM (Name of Oua1ified Home~uver) Dated as of 200 \ ---ARR PROGRAM: (~AME OF DEVELOPER/PARTICIPANT1--- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SBEO/0001/DOC/3514.2wpd ~/1~/QQ "h rn CDC 1999-19 COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS (FOR THE ARR PROGRAM) THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS, (the "ARR Covenant") is made and entered into as of , 200_, by and among (the "Participant"), the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency"), and (the "Qualified Homebuyer"), and this ARR Covenant relates to the following facts set forth in Recitals. R E C I TAL S A. The Qualified Homebuyer proposes to acquire a single family residence (the "New Home"), located within the City of San Bernardino (the "City"), from the Participant, to be owned and occupied by the Qualified Homebuyer as their principal residence. The legal description of the New Home is attached hereto as Exhibit "A" and incorporated herein by this reference. B. The Agency has made this property on which the New Home is situated available to the Participant for the purposes as set forth under that certain Aquisition, Rehabilitation Resale (ARR) Agreement dated as of (the "ARR Agreement") in order to make the New Home available for acquisition by the Qualified Homebuyer from the Participant subject to the terms and conditions of this ARR Covenant; and c. The terms of the ARR Agreement mandate that the acquisition, use and occupancy of the New Home shall be restricted in certain respects for the term as provided herein (the "Qualified Residence Period") in order to ensure that the New Home will be used and occupied in accordance with the ARR Agreement and the affordable single family residential dwelling unit development goals and objectives of the Agency. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 1 CDC 1999-19 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, THE PARTICIPANT AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. Covenant, the following words and terms shall provided in the Recitals or in this Section 1 context of usage of a particular word or require: As used in this ARR have the meaning as unless the specific term may otherwise Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for family size) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167 (k) - 3b) (3) under the Code, as adjusted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 50052.5. At the time of the close of the New Home Escrow, or later when a proposed Successor-In-Interest acquires the new home the amount of the maximum Affordable Housing Cost payable in connection with the acquisition of the New Home at any time during the Qualified Residence Period shall be calculated as set forth in Health ,and Safety Code 50053.5 (b) (1) or (2), as applicable. Code. The word "Code" means the Internal Revenue Code of 1986, as amended, and any regulation, rulings or procedures with respect thereto. Delivery Date. The words "Delivery Date" mean the date of delivery of title and possession of the New Home from the Participant to the Qualified Homebuyer at the close of the New Home Escrow. Lower-Income Household The words "Lower Income Household" mean persons and families whose income does not exceed the qualifying limits for lower income families as established and amended form time to time pursuant to Section 8 of the United States Housing Act of SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 2 CDe 1999-19 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Sectretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjsuted for family size and revised annually. As used in this section, "area median income" means the median family income of a geographic area of the state. New Home. The words "New Horne" mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as rehabilitated and completed by the Participant and sold to the Qualified Homebuyer. New Home Escrow. The words "New Home Escrow" mean and refer to the real estate conveyance transaction or escrow by and between the Participant and the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In- Interest). The transfer of the New Home from the Participant to the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. Notice of Agency Concurrence. The words "Notice of Agency Concurrence" mean and refer to the acknowledgment in recordable form in which the Agency confirms that the proposed Successor-In-Interest of the Qualified Homebuyer satisfies all of the Adjusted Family Income and other requirements of this ARR Covenant for occupancy of the New Home by the Successor- In-Interest at any time during the Qualified Residence Period. Qualified Homebuyer. The words "Qualified Homebuyer" mean the purchaser of the New Home from the Developer (e.g.: all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Homebuyer shall: (i) have an annual Adjusted Family Income which does not exceed the household income qualification limits of a Lower-Income Household: (ii) shall be a first- time homebuyer, as this term is defined in Health and Safety Code Section 50068.5; and (iii)pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, inel uding all sums SBEO/0001/DOC/3514.2wpd 6/14/99 116 J:p 3 CDC 1999-19 payable by the Qualified Homebuyer for mortgage financing, insurance, escrow costs. its purchase money and other fees and Qualified Residence Period. The words "Qualified Residence periodH mean the period of time beginning on the Delivery Date and ending on the date which is ten (10) years after the Delivery Date. ARR Covenant. The words "ARR CovenantH mean these Redevelopment Agency of the City of San Bernardino Community Redevelopment Housing Affordability Covenants and Restrictions by and among the Qualified Homebuyer, the Participant and the Agency pertaining to the New Home. Successor-In-Interest. The words "Successor-In-InterestH mean and refer to the person, family or household which may acquire the New Home from the Qualified Homebuyer at any time during the Qualified Residence Period by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a "first-time homebuyer" and shall have an income level for the twelve (12) months prior to the date on which the Successor- In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for a Lower-Income Household. Upon acquisition of the New Horne the Successor- In-Interest shall be bound by each of the covenants, conditions and restrictions of this ARR Covenant. The titles and headings of the sections of this ARR Covenant have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict the meaning any of the terms or provisions hereof. Section 2. Acknowledgments and Representations of the Qualified Homebuyer. The Qualified Homebuyer hereby acknowledges and represents that, as of the Oelivery Date: (al the total household income for the Qualified Homebuyer does not exceed the maximum amount permitted as Adjusted Family Income for a Lower-Income Household, adjusted for family size; (b) the Qualified Homebuyer intends to promptly occupy the New Horne after the Delivery Date as the principal place of residence for a term of at least two (2) years following the Delivery Date and the Qualified Homebuyer has not entered into any arrangement and has no present intention to rent, sell, transfer or assign the New Horne to any third party during the Qualified SBEO/0001/DOC/3514.2wpd 6/14199 116 tp 4 CDC 1999-19 Residence Period so as to frustrate the purpose of this Section 33334.3 Covenant; (c) the Qualified Homebuyer has no present intention to lease or rent any room or sublet or rent a portion of the New Home to any relative of the Qualified Homebuyer or to any third person at any time during the Qualified Residence Period; (d) the sum payable each month by the Qualified Homebuyer following the close of the New Home Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Home does not exceed the Affordable Housing Cost for the household; (e) the Qualified Homebuyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax returns filed by all persons who reside in the New Home for the calendar year preceding the close of the New Home Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all person residing in the New Home at the close of the New Home Escrowi (f) The Qualified Homebuyer has been informed by the Participant that this ARR Covenant imposes certain restrictions on the use and occupancy of the New Home during the term of this Section ARR Covenant and that this ARR Covenant imposes certain restrictions on the resale of. the New Home during tl;1e Qualified Residence Period. The Qualified Homebuyer acknowledges and understands that these restrictions shall be applicable to the New Home and to any resale of the New Home from the Delivery Date to the end of the Qualified Residence Period which is , 201 Dated: Initials of Qualified Homebuyer Section 3. Covenant of the Qua~ifi.d Homebuyer to Maintain Affordability of the New Home During the Qualified Residence Period and Covenant Relating to Sale or Transfer of the New Home During the Qualified Residence Per~od ~o a Succ~ssor-In-Interest. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 5 CDC 1999-19 (a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the New Home shall be used and, occupied by the Qualified Homebuyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or for another Lower-Income Household as a Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as provided in this Section 3 to verify that each proposed Successor-In-Interest of the Qualified Homebuyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of a Lower- Income Household (based upon the Adjusted Family Income of each household), and that the completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the MNotice of Agency Concurrence" as provided in Section 3 (d) . (b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any interest therein) to a Successor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least sixty (60) days prior to the date on which the Qualified Homebuyer proposes to transfer title in the New Home to a Successor-In-Interest, the Qualified Homebuyer shall send a written notice to the Agency as provided in Section 17 of the intention of the Qua!ified Homebuyer to sell the New Home to a Succes~or-In-Interest which includes the following true and correc.t information: (i) name of the p~oposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); (ii) copies of State and federal income tax returns for the Successor-In-Interest for the calendar year preceding the year in which the notice of intention to sell the New Home is given to the Agency; (iii) resale price of the New Home payable by the Successor-In-Interest, including the terms of all purchase money mortgage financing to be assumed, SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 6 CDC 1999-19 provided or obtained by the Successor-In- Interest, escrow costs and charges, realtor broker fees and all other resale costs or charges payable by either the Qualified Homebuyer or the Successor-In-Interest; (ivl name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Homebuyer to the Successor-In-Interest; (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such reference; and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c). (cl Within twenty (20) days following receipt of the notice of intention described in Section 3(b), the Agency shall provide the Qualified Homebuyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In- Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adjusted Family !ncome and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) has been provided to the Agency. In the event that the Agency may request additional information relating to the. confirmation of the matters described in Section 3(b), the Qualified Homebuyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Home, the Agency shall deliver a written acknowledgment and approval of the resale of the New Home to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3(b) (iv) above, and thereafter the Successor-In-Interest may acquire the New Home subject to the satisfaction of the following conditions: (i) the recordation of the Notice of Agency Concurrence executed by the Successor-In-Interest and the Agency at the close of the resale escrow; SBEO/0001/DOC/3514.2wpd 6/14/99 116 ~p 7 CDC 1999-19 (ii) the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Homebuyer and the final escrow closing statement for the Successor-In-Interest; and (iii) the other conditions established by the Successor-Tn-Interest of the resale escrow as Qualified Homebuyer and shall have been satisfied. (e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants and agrees that during the Qualified Residence Period the New Home shall not be leased, subleased, or rented to any third person, except for a temporary period (not to exceed 12 months) in the event of an emergency or other unforseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Homebuyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event within not more than (60) days following the commencement of a temporary rental occupancy of the New Home by a third party, which notice shall set forth the grounds on which the Qualified Homebuyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. Section 4. Maintenance Condition of the New Home. The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that: (a) The exterior areas of the New Home which are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinaty wear and tear excepted. In the event that at any time during the term of the Qualified Residence Period, there is an occurrence of an adverse condition on any area of the New Home which is sub] ect to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Qualified Homebuyer in writing of the Maintenance Deficiency and give the Qualified Homebuyer thirty (30) days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiencyff include without limitation the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property Ilse restrictions: SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 8 CDC 1999-19 failure to properly JIlaintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of wed and debris; parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on any other parts of the property which are not covered by a paved and impermeable surface; the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Horne. In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Homebuyer ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has failed to comply with the provision of this Section 4(a). If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Horne (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) shall become a lien on the New Horne. If the amount of the lien is not paid wi thin thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c).. SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 9 CDC 1999-19 (b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the New Home shall be removed by the Qualified Homebuyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is appl1ed, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the New Home (exterior areas only) and such graffiti is visible from an adjacent or contiguous public right-of-way and thereafter such, graffiti is not removed within 72 hours following the time of its application; then in such event and without notice to the Qualified Homebuyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Sectibn 4(b) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4 (a) or Section 4 (b), including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the ~gency in connection with such action. In any legal proceeding for enforcing such a lien against the New Home, the prevailing path shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4, shall be a covenant running with the land for the Qualified Residence Period and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable ~aw. Nothing in the foregoing provisions of this Section 4 shall be deemed to preclude the Qualified Homebuyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 10 CDC 1999-19 Section 5. [RESERVED/NO TEXT] Section 6. [RESERVED/NO TEXT] Section 7. Forec~osure of pu~chase Money Mortaage Loan and Agency Ri9ht of First Refusal. (a) During the Qualified Residence Period the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Home at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period the Agency shall have the right of first refusal to purchase the New Home from the Qualified Homebuyer on the same terms which the Qualified Homebuyer may propose to offer the New Home for resale to a Success-In- Interest. The Agency must exercise such a right of first refusal within thirty (30) days following written notification of the intention of the Qualified Homebuyer to resell the New Home, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Homebuyer and close an escrow for the transfer of the New Home to the Agency within sixty (60) days following written notification of the intention of the Qualified Homebuyer to resell the New House. Section 8. Covenants to Ru~ W~th the Land. The Participant, the Agency and the Qualified. Ho~ebuyer hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a common plan for the rehabilitation of affordable single family housing improvements within the terri torial jurisdiction of thl:! Agency and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Home and ~ach Successor-In-Interest of the Qualified Homebuyer in the New Home for the term provided in Section 10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this ARR Covenant. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Home or any interest therein shall conclusiv'ely be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations SBEO!DDDllDOC/3514.2wpd 6/14/99 116 rp 11 COC 1999-19 and restrictions are set forth in such contract, deed or other instrument. Section 9. Burden apd Benefit. The Participant, the Agency and the Qualified Homebuyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Homebuyer's legal interest in the New Home is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Homebuyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Home by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable single family housing development goals and objectives of the Agency and in order to make the New Home available for acquisition and occupancy by the Qualified Homebuyer. Section 10. ~. This ARR Covenant shall apply to the New Home and the Qualified Homebuyer and to each Successor-In-Interest as of the Delivery Date for the Qualified Residence Period -- e.g.: this ARR Covenant shall remain in full force and effect for ten (10) years after the Delivery Date. Any provision or section hereof, may be terminated after the Delivery Date upon agreement by the Agency and the Qualified Homebuyer (or the Successor-In- Interest in the New Home), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in its reasonable discretion will not adversely affect the affordable single family housing and development goals of the Agency. Section 11. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Homebuyer to honor or perform any material term or provision of this ARR Covenant shall constitute a breach under this Agreement; provided however, that if the Qualified Homebuyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days after the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Homebuyer written notice of breach specifying the alleged breach which if uncured by the Qualified Homebuyer within thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 12 CDC 1999-19 shall not constitute a waiver of any breach or event of default nor shall it change the time of breqch or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 11. Except with respect to rights and remedies expressly declared to be exclusive in this ARR Covenant, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Homebuyer may remain incurred for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 as related to a Maintenance Deficiency at the New Home, upon the occurrence of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Qualified Homebuyer to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (ii) by other action at law or in or convenient to enforce covenants and agreements Homebuyer to the Agency. equity as necessary the obligations, of the Qualified (b) No third party shall have any right or power to enforce any provision of this ARR Covenant on behalf of the Agency or to compel the Agency to enforce any provision of this ARR Covenant against the Qualified Homebuyer on the New Home. Section 12. Governing Law. This Section 33334.3 Covenant shall be governed by the laws of the State of California. Section 13. Am~ndment. This ARR Covenant may be amended after the Delivery Date only by a written instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as applicable) and by the Agency. The Participant shall have not any SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 13 CDC 1999-19 right or power to approve any such amendment to this ARR Covenant, and the execution by the Partic~pant of any such amendment after the Delivery Date shall not be required. Section 14. Attorney's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this ARR Covenant or otherwise arising out of this ARR Covenant, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 15. Severability. If any provlslon of this ARR Covenant shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this ARR Covenant which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Seotion 16. Time is of tqe Essenoe. For each provision of this ARR Covenant which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 17. Notice. Any notice required to be given under this ARR Covenant shall be given by the Agency or by the Qualified Homebuyer, as applicable, by personal delivery or by First Class Uni ted States mail at the addresses specified below or at such other address as may be specified in writing by the parties hereto: If to the Agency: Executive Director Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Suite 301 San Bernardino, CA 92401 Phone: (909) 384-5081 If to the Qualified Homebuyer: Attn: Phone: Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personally delivered, when received SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 14 CDC 1999-19 by the Executive Director of the Agency or the Qualified Homebuyer, as applicable. SBEO/OOOI/DOC/3514.2wpd 6/14/99 116 rp 15 CDC 1999-19 IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer and the Agency have caused this Covenant to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this ARR Covenant is authorized under Health and Safety Code Section 33334.3(g). QUALIFIED HOMEBUYER Dated: By: By: PARTICIPANT Dated: By: AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director [ALL SIGNATURES MUST BE NOTARIZED] Approved as to Form: By: Agency Counsel SBEO/0001/DOC/3514.2wpd 6/14199 116 rp 16 CDC 1999-19 EXHIBIT "A" Legal Description of the New Home SEEO/0001/DOC/3514.2wpd 6/14/99 116 rp 17 CDC 1999-19 EXHIBIT "E" 1999 ARR AGREEMENT "ARR Rehabilitation Standards for Each HUn Units" CDC 1999-19 ARR REHABILITATION STANDARDS I. GENERAL DESCRIPTION The Participant will acquire HUD Units and cause the rehabilitation and resale of the housing thereon. II. REHABILITATION STANDARDS All of the improvements to be provided by the Participant on the HUD Units constitute the "Project". The Project shall be developed in accordance with applicable building and safety codes. III. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Project Site, and the suitability of the Project Site. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Project Site entirely suitable for such development. Participant has undertaken all investigation of the Project Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the rehabilitation of the project. IV. AMENITIES Each HUD Unit shall have full amenities and shall include the following: front yard landscaping and automatic sprinklers, side and rear yard fencing. Vo REHABILITATION STANDARDS Rehabilitation Standards shall include Section 8 Housing Quality Standard (HQS) Minimums and are not limited to: 1. Interior work to make structures more livable, such as, plastering, painting, new subflooring and tile work. 2. Repair, restoration or replacement of important parts of structures, such as, heating systems, plumbing systems, electrical components, kitchen appliances (stoves, refrigerator). 3. Installation of water/energy conservation devices. 4. Installation of security devices. 1 \\fDA_SAN BERDO\PUBLlC\forms\ARR Program\ARR Rehabilitation Standards.doc CDC 1999-19 5. Wheelchair ramps, kitchen and/or bathroom modifications related to a disability of a household member. The following list contains some of the typical repair items and replacement activities: 6. Replacement of plumbing fixtures. 7. Addition of electrical outlets and/or wiring. 8. Insulation. 9. Replacement of roof. 10. Repair and/or enlargement of inadequate kitchen and/or bathroom. 11. Repair/replacement of furnaces and air conditioners. 12. Plaster and dry rot repair. 13. Repair/replacement of porches, steps, fences and walkways. 14. Termite, rodent or vermin fumigation. 15. Addition of closets or other minor built-ins. 16. Chimney repair/replacement. 17. Repair/replacement of railing. 18. Repair/replacement of windows and doors. 19. New ceilings. 20. Weather stripping for windows and doors. 21. Repair/replacement/addition of gutters and down spouts. 22. Repair/replacement of exterior trim. 23. Repair/replacement of stucco (wrap & stucco of wood siding structures). 24. Repair of foundation, structural repair. 25. Replacement of existing toilets, tub and shower, lavatories (cabinets). 26. Carpeting and other flooring. All other items are optional, per agreement, between contractor and buyer. 2 \\EDA_SAN BERDO\PUBLlC\Forms\ARR Program\ARR Rehabilitation Standards.doc CDC 1999-19 EXHIBIT "F" 1999 ARRAGREEMENT "HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents" CDe 1999-19 MORTGAGE ASSISTANCE PROGRAM (MAP) ACQUISITION, REHABILITATION AND RESAt..E (ARR) PROGRAM Date: Property Address: Borrower(s): MAP Amount: FIRST TIME HOME BUYER PROGRAM - MAP CHECKLIST Latest Tax Return (1040's) and 2 Current Pay Stubs Application Affidavit. Signed by Borrower Verification for Applicant Eligibility (Completed by Lender) Preliminary Escrow Instructions o o o o . 'Pi' Jj~dk~~eqUQ$rforFu.nds<Lettei' Complete Demand for Funds Letter 0 Submit MAP Docs (Loan Agreement. Deed of Trust, Promissory Note, CC & Rs) 0 Seller (ARR Contractor) must call EDA Inspector for a Final Inspection (10 days prior to close of escrow) Final Escrow Documents (Includes Amendments) First Time Home Buyers Class Certificate o o Lender Representative: \IEDA..SAN BE/lOO'I'lJIIUCIF__ARRIMAP.Ch.'" Uat.cloe 021'.... UP CDC 1999-19 City of San Bernardino . ECONOMIC DEVELOPMENT AGENCY ACQUISITION, REHABILITATION AND RESALE PROGRAM (ARR) AND MORTGAGE ASSISTANCE PROGRAM (MAP) VERIFICATION FOR APPLICANT ELIGIBILITY . Redevelopment . Community Development . Housing . Business: - Recruitment - Retentian - Revitalization . Main Street, Inc, Phone Number Household Size # of Minor Children Zip Code Name of Applicant Current Address Property Address to be Purchased CitylState San Bernardino, California Name of Lender Contact Person Loan Number Phone Number Fax Number .Annual & Monthly Income (See Below) $ Near $ !Month Income used by the lender to qualify for the loan, if different than annual income of application. $ Near $ !Month Monthly Consumer Debt $ !Month Max Loan Amount $ Principal & Interest $ /Month Sales Price $ Est. Property Taxes $ /Month Buyer Down $ ($500 Min.) Est. Insurance $ !Month Map Amount $ Mort. Ins (If Applicable) $ /Month TYPE OF LOAN DFNMA 0 FHA 0 Other Total PITI $ !Month Check Applicable 50% or less 0 51% -80% 0 81% - \15% 0 Debt-ta-Income Ratios as Calculated by Lender: Housing Costs % Total Debt % Terms of Loan Interest Rate # of Years o Fixed Note: Variable Loans are Not Permitted. .Note: In order to qualify for tile MAP your income may not exceed the following: Lender/Escrow Representative - Signature Date Signature of Applicant Date Signature of Applicant Date 201 North E Street, Suite 301' San Bernardino, California 92401-1507' (909) 384-5081. FAX (909) 888-9413 CDC 1999-19 1999 Income Level HOUSEHOLD SIZE ] 2 3 4 5 6 7 8 Very Low (50%) $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Lower (80%)* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Median (100%) $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 Moderate (120%)++ $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 * The maximum income level for MAP assistance under federal HOME. Under MAP HOME - property value at the time of sales must not exceed 95% of the County's median purchase price. ** The maximum income level for MAP assistance under State Redevelopment Law. Under MAP State Redevelopment Law the affordable housing costs apply (Complete Housing Affordability Worksheet) PLEASE CHECK THE FOLLOWING o Sr. Citizen(s) - 62 or Older o Black o American Indian o Female Head of Household o Hispanic o White o Disabled One or More o Other o Asian or Pacific Islander ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGIBILITY FOR MAP IS THE SOLE RESPONSIBILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. ANY QUESTIONS CALL (909) 384-5081. P:\Fonnl\Moltgl.8t ~iIUlnGC\MAP.^pplicant Eligibility.doc (Reviled 7199) CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM ACQUISITION/REHABILITATION & RESALE PROGRAM APPLlCA nON AFFIDAVIT NOTE: ALL BLANKS ON THIS FOlW MUST BE COMPLETED! THERE ARE IMPORT ANT LEGAL CONSEOUENCES TO TIDS AFFIDAVIT: READ IT CAREFULLY BEFORE SIGNING. 1. I (we) the undersigned, as part of my (our) application for Acquisition, Rehab, Resale (A.R.R.) and Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of San Bernardino, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we), being first duly sworn, state the following: I (we) certify that the following are: a. My (our) legal Name(s): b. Social Security # c. Current residences: d. Telephone # The Unit (the "Residence") being purchased is a single-family home located in the City of San Bernardino at the following address: 2. I (we) certify that my (our) current gross annual household income, including income of all adult persons intending to occupy the Residence, is $ . I (we) understand that I (we) am (are) not eligible for a ARR- MAP unless my (our) gross annual household income does not exceed 80% of the median income for San Bernardino, and as specifically set forth in the Verification of Applicant Eligibility form. 3. I (we) certify that the Residence will be occupied and used as my (our) principal place of residence within forty-five (45) days after the date the ARR-MAP loan has closed. I (we) certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not more than fifteen percent (15) of the area of the Residence will be used in a trade or business. I (we) certify that I (we) will notify the Agency in writing if the Residence ceases to be my (our) principal Residence. Failure to occupy the Residence will result in the Agency accelerating the repayment of the Agency ARR-MAP Loan. 4. Ifthe loan application is for a loan on a newly constructed home, I (we) certify that the Residence has not and will not be occupied prior to loan commitment from the Agency. CDC 1999-19 5. I (we) understand that I (we) am (are) not eligible for a ARR-MAP from the Agency under this program if I (we) individually or together had a present ownership interest in a principal residence within three (3) years prior to date of application. I (we) also understand that I (we) cannot have an ownership interest in a principal residence between the date of application and closing. For this purpose, a principal residence includes a single family residence, condominium, share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law), or occupancy in a multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by any means, whether outright or partial, including property subject to mortgage or other security interest. An ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy by the entirety, or a life estate interest. I (we) certify that I (we) have listed below all places of residence, whether owned or not, for a three-year period from date of application. 6. Previous Address: (Past Three Years) Owned Rented Other BeginninglEnding Date of Residencv From: End: Address of Residence All answers of "Other" must be fully explained; use additional paper if necessary. 7. Name, address and telephone oftheowner/lalldlord who can verify each residence listed above which was not owned by the applicant. Landlord Name Address Telephone No. 8. I (we) certify that the total purchase price ofthe Residence and land, including all construction items, all commissions, all builder's fees, hook-up and tap-in fees, permits, architectural fees, all site improvements, discount points paid by the seller, work credit, subcontracted items, or construction loan interest, but eXCluding any closing costs and other permanent financing charges will not exceed the purchase price limitation applicable to the Residence below: Maximum Sales Price (Single Family Unit) $150,000. 9. I (we) further certify that no other agreement, either verbal or written is presently contemplated for the completion of the purchase of the Residence. 10. I (we) further certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified mortgage bond or a qualified veteran's mortgage bond. No person related to me (as defined in CDe 1999-19 applicable federal or state laws and regulations) has or is expected to have an interest as a creditor in the Mortgage loan being acquired for the Residence. 11. I (we) understand and agree that if aARR-MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 12. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the ARR-MAP guidelines. 13. I (we) understand that the decision to make a first mortgage loan is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan. 14. I (we) carulOt close my (our) loan prior to receiving a ARR-MAP loan approval. 15. I (we) acknowledge and understand that this Application Affidavit will be relied upon for the purpose of determining my (our) eligibility for a ARR-MAP. (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me (us) in connection with an application for a ARR-MAP may constitute a federal violation punishable by a fine and/or denial of my (our) application for a ARR-MAP loan. If a ARR- MAP loan commitment has been issued prior to discovery of the false statement, immediate cancellation of the ARR-MAP will occur which will be in addition to any criminal penalty imposed by law. Dated: Signature of Applicant(s) Dated: Signature of Applicant(s) P:\FonnslMortgagc AssislancelMAP-Applicalion Affid.vil,doc CDe 1999-19 FIRST TIME HOME BUYER MORTGAGE ASSISTANCE PROGRAM DISCLOSURE STATEMENT I/We (Participant) understand and agree that the provision of financial assistance from the Redevelopment Agency of the City of San Bernardino (the "Agency") under the First Time Home Buyer Mortgage Assistance Program (the "Program") is conditioned on a number of factors, including, but not limited to (all terms not otherwise defined herein shaIl have the meaning provided in the Loan Agreement by and between the Agency and the Participant): . I1We must find a single-family detached home within the City of San Bernardino which I/We can afford (the "Property"). . I/We must qualify for a home loan from an institutional lender acceptable to the Agency. . I/We must qualify for assistance under the guidelines of the Program. . IlWe must not have owned any interest in any residential real property during the past three (3) years. I/W e further understand and agree that: I/We will be responsible for repaying the amount of the Note. The Note will be due and payable upon: (i) the sale of the Property, (ii) the transfer of any interest in the Property, (iii) refinancing of any lien or encumbrance to which the Agency Deed of Trust is subordinate, or (iv) IfWe are no longer an occupant of the Property or are in default of any obligation wlder the Loan Agreement. . I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the Agreement is signed by sending a notice of my/our decision to rescind or cancel the Agency Loan to: Redevelopment Agency of the City of San Bernardino Housing Division 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 Attn: Housing Division Manager . An appraisal fee may be payable upon the fonowing: (i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) IfWe no longer occupy the Property, or (iv) IfWe are/am in default of any provision of the Loan Agreement. . The Agency shall not be held responsible for any costs associated with the home I/We 1 \\EOA _SAN BERDO\PUBLlCIFonnslMortgage Assislancc\2-MAP-DISCLOSURE.d~ CDC 1999-19 purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of the Property. . The Agency cannot ensure that information provided by or on my/our behalf will be confidential. . The Agency shall not be responsible for the selection of a home, the selection of a lender providing funds assisting in the purchase of the home, provide information concerning other public or private sources ofloans, Or the competitiveness of the terms of the Program. I/We assume all responsibility for determining whether I/We will inform myself/ourselves as to the availability and terms of other public or private loans. . The Agency shall not be charged with the knowledge of the contents of the ocuments of the lender. DATED 19 DATED 19 DATED 19 2 \\EDA _SAN DERDOIPUBLlClForm,lMortgage Assistance\2.MAP.D1SCLOSURE.doc CDC 1999-19 tl of 8 ACQtJISITION, REHABILITATION RESALE (ARR) AGREEl\1ENT By and Bet'Neen REDEVELOPMENT AGENCY OF THE CITY OF SAN BERJ~ARDINO And L ':'~1~ ll'~f)USTl)TE '" IN "', ,.At""~~!",(~,~J~,},b:"';'~~"'r ,,~c:;: '" ~ .., "r T" 'n, .', r " ,. I " ( 'T' A , .", . , /.\..~.)ISJInY\, REI-.ABIdLr\. Jj~ :'" AL,E (ARR) (" ARR. Participant") CDC 1999-19 '1 ABLE OF CONTENTS I. [100] SUBJECT OF AGREEMENT .................................................................................. 2 A. [101] Purpose of Agreemcnl..................................................................."..~................. 2 , B. [102] The HUD Units ................................................................................................... 3 C. [103] Parties to the Agreement ..................................................................................3 1. [104] The Agency ...................................................................................................3 2. [105] The Participant .............................................................................................. 3 3. [106] Prohibition Against Change in Ownership, Management and Control of the Pmiicipant .................................................................................... ".......................... 4 4. [107] Benefits of Project................................................................................ ........ 4 II. [200] AGENCY ASSISTANCE.........................................................................................4 A. [201] The Project ...................................:..................................................;...................4 B. [202] Agency Assistance .."....................................................................................... 5 C. [203] Term of Agreement .............................................................................................5 D. [204] Participant Assistance ........................................................................................ 5 E. [205] HUD Escrow .........."........................................................................................... 7 F. [206} Affordable Housing Cost .................................................................................... 7 Ill. [300] REHABlLlTATIONIDISPOSITION OF THE HUD UNITS .................................. 7 A. [301] Rehabilitation by Participant.................;............................................................. 7 1. [302] Cost of Rehabilitation......"............................................................ ................ 8 2. [303] Bodily injury and Property Damage Insurance.........................:................... 8 3. [304] Rights of Access................".......................................................................... 9 4. [305] Local, State and Federal Laws ...................................................................... 9 5. [306] Anti-Discrimination During Rehabilitation .............".................................. 9 B. [307J Taxes, Assessments, Encumbrances.and Liens....................."............................. 9 C. [308] Prohibition Against Transfer oflhe HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion ofthe HUD Unit............................... 9 CDC .1999-19 D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders.................... 10 [310] No Encumbrances Exeept Mortgages, Deeds of Trust or Sale for Rehabilitation ......... ....................... ....... ....... ......................... .......................... ... 10 E. [311] Right of Agency to Satisfy Other Liens on the Project..................................... 10 , IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS ......... 1 ] A. [401] Uses - Covenants Rmilling vv'ith tk Land......................................................... 11 B. [402] Maintenance of the HUD Units........................................................................ 11 c. [403] Effect of Violation of the Tyims and Provisions of this Agreement After Completion of Rehabilitation ........................................................ .......,... ......... 13 V. [500] GENERAL PROVISIONS...",.......,.........................................................:..............13 1. [501] Termination and Breach .................................................................................... 13 2. [502] Notice ...............................................................................................................14 3. [503] Conflicts ofInterest; Nonliabiiity ..................:................................................. 14 4. [504] Inspection of Books, Records and Reports ...~.................................i................. 14 5. [505] Indernnification .................................................,...............................................15 VI. [600] SPECIAL PROVISIONS ........................................................................................ 15 1. [601] Submission of Documents to Agency for Approval......................................... 15 2. [602] Successors in Interest....................................................................................... 15 VII. [700] ENTIRE AGREEMENT, WAIVERS.................................................................... 15 VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCy........................... 16 [801] Time for Acceptance ........................... ......"............................................................ 16 EXHIBIT A - EXHIBIT B EXHIBIT C EXHIBIT D - EXHIBIT E EXHIBIT F Map of ARR Zone Current Household Income Listings For Qualified Homebuyers ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant HUD Escrow Documents (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed <lnd ARR Covenant (iv) Other HUD Escrow Documents ARR Rehabilitation Standards for Each HUD Unit HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents CDC 1999-19 ACOUlSITION. REHABILITATION. & RESALE (ARR) P ARTICIP ATION AGREEMENT THIS AGREEMENT(the "Agreement") this 21sT day of June, 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and ANR Industries. Inc. (the "Participant"). Agency and Participant hereby agree as follows: RECITALS WHEREAS, Agency is a California Redevelopment Agency engaged in carrying out its public purposes, including, without limitation, increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City"); and WHEREAS, the U.S. Department of Housing & Urban Development (HUD) has designated that certain area within the City shown on the map attached hereto as Exhibit "A" as the Acquisition, Rehabilitation and Resale (ARR) Revitalization Zone (the "Zone"), and has granted the City exclusivity to purchase directly from HUD, certain single family dwelling units owned by HUD REO's (the "HUD Units") at a discount off the As Is Value of each such HUD Unit (the "ARR Program") which the Agency as administrator for the City under the ARR Program, shall concurrently transfer title to the HUD Unit to the Participant for rehabilitation and resale pursuant to the terms and conditions of this Agreement; and WHEREAS, the Agency has also been designated by the Mayor and Common Council as the administrator of the HOME Program (the National Affordable Housing Act of 1990) on behalf of the City, with specific intent to expand the supply of decent, safe, sanitary and affordable housing, within a City's jurisdiction; and WHEREAS, the Agency may use either federal HOME Program funds or State Redevelopment low and moderate income funds to financially assist qualified first-time homebuyers (herein "Qualified Homebuyer") in the acquisition of HUD Units purchased directly from the Participant; provided however that the value of the HUD Unit to be acquired by a Qualified Homebuyer for which the Agency may provide purchase money mortgage assistance under either the HOME Program or under the other affordable housing assistance programs of the Agency (herein "MAP Program") must have a value that does not exceed 95% of the area median purchase price; and WHEREAS, with respect to the HUD Units, Agency desires to implement the ARR Program pursuant to which: a. Agency would buy one or more HUD Units directly from HUD on condition that the Participant purchases each such HUD Unit from the Agency at the discounted price which HUD offers to the Agency; and 1 CDC 1999-19 b. The Participant shall promptly rehabilitate the HUD Unit in accordance with rehabilitation standards set forth herein, and thereupon sell the HUD Unit, to an eligible low or moderate income buyer (e.g., a Qualified Homebuyer) at affordable housing costs pursuant to State or Federal requirements, depending on the source of funding (Le., if QualifIed Hmnebuycr uses HOME funds their income shall not exceed 80% of median inco:ne and State Redevelopment Low/Mode!ate Income Funds shall not exceed 120'% of median income); and c. Prior to purchasing a HUD Unit from Agency, Participant shall provide siltisfactory evidence to the Agency of all financing which shall include all costs associated with the acquisition, rehabilitation and disposition of the HUD Unit by the Participant. Based on receipt of such evidence of financing, the Agency shall accept or reject any offer received from the Participant to acquire a BUD Unit. The Participant shall complete the steps noted in Exhibit "C", attached hereto and incorporated herein by reference with respect to its acquisition and disposition of each BUD Unit to a Qualified Bomebuyer; and d. If the Agency accepts any offer from Participant to purchase a BUD Unit, the Agency and Participant will open escrows (the "HUD Escrow") which shall close concurrently such that the escrow by which HUD shall transfer a BUD Unit to the Agency shall close concurrently with the escrow through which the Agency shall transfer that HUD Unit to the Participant; and e. Promptly after the closing of the HUD Escrow, the Participant will rehabilitate the HUD Unit within the timeframe herein, and sell it at affordable costs (the "Affordable Housing Costs") to a person or family of low or moderate income for owner occupancy purposes at the close of an escrow by and between the Participant and the Qualified Homebuyer (the "New Home Escrow"). The maximum income criteria applicable to a Qualified Homebuyer will be based on the type or financial assistance, if any, which the Agency provides to the respective Qualified Homcbuyer at the close of a New Home Escrow (i.e., State Redevelopment Low&'Ioderate Income Funds up to 120% of median income or HOME Funds up to 80% of median income). The current 1999 Income Limits are not~d in Exhibit ~'B". \Y1--IEREAS, Participant is a well established housing provider that has the experience, qualifications and desires to participate in the above described ARR !Program, NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, Agency and Participant agree as follows: 1. [100] SUBJECT OF AGREEMENT A. [10]] PurpQ~e of Agreem_~nt The purpose of this Agreement is to effectuate various redevelopment plans for the City of San Bernardino (the "City"), by providing for Agency assistance to Participant in connection with ') ..:.. CDC 1999-19 the acquisition, rehabilitation and. disposition of the HUD Units hereinafter set forth. The acquisition, rehabilitation and resale of the BUD Units pursuant to this Agreement is in the vital and best interests of the City and the health, safety and welfare of its resideilts, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting on behalf of the Agency, has determined that the acquisition, rehabilitation, resale and uses contemplated by this Agreement will benefit the low-and moderate- income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Progrmn and the goals and objectives of the affordable housing programs of the Agency. B. [102] The HUD Units Each HUD Unit shall b'e located within the Zone and shall be designated from time to time by the Agency. Each of the HUD Units shall be pre-approved by the Agency and identified on a list in writing, as available for transfer to the Participant Sl;lbject to the terms of this Agreement. \ ..'1 - _ , No HUD Unit shall be transferred to the Participant unless the Participant has submitted a timely and complete acceptance to purchase such HUD Unit to the Agency, as set forth herein. It is the express intent of the parties hereto that the Participant will attempt to acquire those HUD Units within the Zone which evidence the highest degrees of blight, are most in need of redevelopment, and are financially feasible. The Agency's purchase approval of each HUD Unit will be based upon compliance with this intent. C. [103J Parties to the Agreemem 1. [104] The Agencv. The Agency is a public body, corporate and politic, exerclsmg governmental functions and powers and organized and existing under. Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et seq.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the' City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [105] The ParticiJ?ant The Participant is licensed to do business in the State of California. The principal office and mailing address of the Participant for purposes of this Agreement is: , .., .) CDC 1999-19 3. [106] Prohibition Ag':lj!L~iJ~.hange;: in Qwnership, Management and Control afthe Participanj The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary OJ involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval ofthe Agency, which approval the Agency may grant, witpJlold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency. ,1,1, In the absence of specific written agreement by the Agency, no such transfer, assigmnent or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. ' All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure for the benefit of the Agency. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 106 shall terminate with respect to each HUD Unit at the close of the New Home Escrow for that particular HUD Unit. Nothing in this Section 106 shall act to restrict the sale of rehabilitated HUD Units to Qualjfied Homebuyers if such sale is otherwise in compliance with the terms of this Agreement. 4. [107] Benefits of Proiect The Agency has determined that the purchase, rehabilitation and sale of HUD Units in accordance with this Agreement will eliminate blight, provide needed low- and moderate-income housing to the various project areas of the Agency, as well 'as the City and also increase homeownership opportunities for low- to moderate income households thereby stabilizing the community and decreasing rental housing in the City. ' II. [200] AGENCY ASSISTANCE A. [201] The Proiect The Agency agrees that with regard to any HUD Unit that it has approved in writing, "and I . ' ~ . which the PartIcipant has agreed to purchase as evidenced by the completed fonn of a "HUD Unit Purchase Agreement" in the form included in Exhibit "D", that the Agency shall; subject to the terms and conditions of this Agreement, acquire the HOD Unit from HUD and shall thereafter immediately transfer title to the Participant through the HUD Escrow. 4 CDC 1999-19 The Project, and specifically the Agency's obligation to acquire any HUD Unit, shall only arise to the extent funds are available from the Participant (or the "Participant's Lender" as hereinafter defined), to provide for the acquisition, rehabilitatio~ and resale of the HUD Unit by the Participant at the close of the HUD Escrow. Moreover,' the Age~cy shall only offer to transfer HUD Units, to the Participant to the extent that the Agency, in its sole discretion, deems that the purchase price, associated rehabilitation and disposition costs are fair, equitable, co~parable and that the Participant has funds sufficient to close the HUn Escrow and thereafter to complete the rehabilitation of the HUD Unit. B. [202] Agency Assistance In order to assist in the implementation of the Project and marketability of the Project, the Agency agrees to provide certain Agency assistance (the "Agency Assistance") as follows: (i) provide for the concurrent transfer of each HUD Qnit which the Participant may agree to acquire as evidenced by a completed HUD Unit Purchase Agreement; provided however that purchase price for each HUD Unit and all escrow costs in connection with the HUD Escrow for that particular HUD Unit shall be payable solely by the ParticipaJtt; and (ii) in addition to acquiring and thereafter immediately transferring title to any given HUD Unit to the Participant, the Agency may provide on a first come-first served basis to any Qualified Homebuyer certain down payment and closing costs, not to exceed ten percent (10%) of the Participant's sales price of the HUD Unit being sold, from either available funds of the Agency under the HOME Program or the Agency MAP Program, as applicable. C. [203] Ternl of Agreement The term of the Agreement shall be one (1) year from the date of this Agreement and ending June 30, 2000, except as set forth ip Section 501. The Executive Director of the Agency (the "Director") shall have the option to renew this Agreement for an additional one (1) year period provided Participant is in compliance with the provisions of this Agreement. D. [204] Participant Assistance The Participant will select HUD Units based upon a list of available HUD Units prepared from time to time by the Agency. The Participant shall be solely responsible for obtaining all infornlation in connection with the proposed acquisition and rehabilitation of each HUD Unit. Participant will take all action necessary to ensure the availability of funding for the acquisition, rehabilitation and resale of each HUD Unit prior to submitting any offer to purchase to the Agency and shall provide evidence to the Agency of such financing at the time it delivers a completed HUD Unit Purchase Agreement to the Agency (see Exhibit "D"). Participant will be responsible for the preparation and submission, of all necessary paperwork required in connection with the acquisition of each HUD Unit (i.e., all of the BUD Escrow documents as assembled in Exhibit "D") and all other necessary documentation required for the close of escrow for any HUD Unit to be purchased by Participant from the Agency. Participant shall have not more than seven (7) days from receipt of the BUD listing from the Agency to select any HUD Unit for purchase and return 5 CDC 1999-19 the HUD Unit Purchase Agreement for weh HUD Unit to the Agency as executed by the Participant. I The Participant shall cause each HUD Escrow to be dosed within forty-five (45) days from the date of execution of the HUD Unit Purchase Agreement and the other HUD Escrow documents by the Participant. No extension of time for the close of a HUD Escrow will be granted by the Agency and if a HUD Escrow does not cio~e within the forty-five (45) day period after the HUD Unit Purchase Agreement has been fully executed for any reason not attributed to the fault or delay ofHUD or the Agency, then in such event this Agreement will be subject to tennination. The Participant agrees that upon its acquisition of each HOO Unit from by,the Agency, the Participant shall promptly commence and thereafter diligently complete the rehabilitation of the HUD Unit. Unless a longer period of time is approved by the Agency in its sole discretion at the time of the submission of the Participant acceptarlce of an, offer to purchase a HUD Unit, the Participant shall complete the work of rehabilitation of each such HUD Unit within ninety (90) days following the close of the HUD Escrow. (i) Scope of Rehabilitation - The Participan~ shall rehabilitate all HUD Units acquired from the Agency in accordance with the ARR Rehabilitation Standards noted in Exhibit "E". Furthermore, the Participant shall prepare a Scope of Rehabilitation for each HUD Unit setting forth in detail the work that Participant agrees to perform on each HUD Unit purchased by Participant. The Scope of Rehabilitation shall be submitted by the Participant to the Agency concurrently with the executed HUD Unit Purchase Agreement and related HUD Escrow documents. (ii) HOME Program or Ageng MAP Program Assistance to Qualified Homebuver - All HUD Units acquired and rehabilitated under the ARR Program, wherein the Qualified Homebuyer has applied for either HOME Program or Agency MAP Program assistance, will be reserved for sale to and occupancy by lpw- and moderate-income households, to be sold at affordable housing cost as such term is defiifed ill Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, or Part 92 HOME Investment Partnerships Subpart 7. (92.206), which requires that the value of the HOME assisted property to be acquired by the Qualified Homebuyer must have a value that does not exceed 95% of the area median purchase price of the HUD Unit, whichever funding source is used for the Participant's Qualified Hornebuyer. - (iii) Disposition of HUD Units__and_~~!.lalificd Homebuyer EligibilliY ' The Participant will cause the marketing of each HUD Unit to prospective purchasers. Participant will screen prospective purchasers for eligibility in accordance wit.h this Agreement, specifically to insure that Buyer meets the applicable HOJVlE Program and/or Agency MA.P Program tncome Guidelines in accordance with Exhibit "B". Participant shall cause the opening of a New Home Escrow with prospective purchasers arid will take all steps necessary to ensure each New Home Escrow is closed within forty-five (45) days fi.om the date of its opening. At the close of the New Home Escrow, the ARR Covenant shall be fully executed and filed for recordation. The form of the ARR Covenant is included in Exhibit "D". 6 CDC 1999-19 E. [205] HUD Escrow The PaIticipant is under no obligation to purchase any HUD Unit from the Agency and the Agency is under no obligation to transfer any HUD Unit to the Participant unless the Participant has first completed a HUD Unit Purchase Agreement for the particular HUD Unit as identified on a list of HUD Units as submitted by the Agency to the Participant. The parties will open simultaneous escrows (e.g., the HUD Escrow) to provide the acquisition by the Agency of each specific HUD Unit which the Participant has agreed to purchase from the Agency. The paIties shall execute the escrow instructions and documents as set forth in Exhibit "D" as may be necessary to accomplish the foregoing. F. [206] Affordable Housing Cost For the purpOSeS of complying with this Agreement, all BUD Units shall be sold to low- and moderate-income households (e.g., Qualified Homebuyers) at affordable housing costs as such tenn is defined in Health and Safety Code Section 50052.5, or Section 8, (24 CFR'813), whichever is applicable to the Qualified Homebuyer's ,HOME Progrmn or Agency MAP Progrmn assistance, if any. The Participant agrees to be bound ty all, limitatioIls for Qualified Homebuyers as set forth and in each Agency Quitclaim Deed for a HUD Unit The form of the Agency Quitclaim Deed is included in Exhibit "D". The ParticipaI1t shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency by a date no later than forty-five (45) days following the opening of the New Home Escrow, including but not limited to the HOME Progrmn or Agency MAP Program Checklist, Verification for Applicant Eligibility, First-Time Homebuyer Disclosure Statement, Application Affidavit as applicable under the HOME Program or the Agency MAP Progrmn as included in Exhibit "F". III. [300] REHABILlT A TIONIDISPOSITION (iF THE BUD UNITS A. [301] Rehabilitation by Par!icipant PaIticipant and Agency agree that the central purpose of this Agreement it to provide for quality rehabilitation of each HUD Unit purchased from the Agency in a manner consistent with the terms and standards of this Agreement. Each HUD Unit acquired by the Participant shall be rehabilitated in accordance with the rehabilitation standards noted in Exhibit "E", attached hereto and incorporated herein. With respect to each H1JD Unit, the Agency shall approv(~ in writing all specifications, and plans, if any, including but not limited to landscaping plans, designs, and specifications of each HUD Unit to be rehabilitated as well as the proposed Marketing Plan for each HUD Unit prior to the commitment of the. Agency to acquire any HUD Unit pursuant to a HUD Unit Purchase Agreement. Such approval of the Agency shall be evidenced by the Director in his/her reasonable discretion as consistent with the goals and o,bjectives of the ARB. Progrmn, or hislher designee. 7 CDe 1999-19 1. [302] ~.9-st o(RehahjJjJilliDjJ. The cost of undertaking the Project, including the costs of acqUlsltlon, rehabilitation, marketing and sales of each HUD Unit shall be borne solely by Participant. The Agency shall have no obligation to pay for any cost of the Project. The Participant acknowledges and ,agrees that the profit, if any, to be made by Participant from the disposition of each HUD Unit to a Qualified Homebuyer shall be limited to no more than fifteen percent (15%) of the gross sales price at the time resale of each such HUD Unit after rehabilitation to a Qualified Homebuyer. 2. [303] Bodily Iniury and Property Damage Insurance Participant shall indemn~fy defend and hold the Ag~ncy, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuties to persons, including accidental death (including attorneys' fees and costs), which m~ybe caused by any of Participant's activities underthis Agreement, whether such activities' or' performance 'thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such danlage shall accrue or be discovered before or after tennination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the anlOunt of One Million Dollars ($1.,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency as additional insureds for claims for damages arising from the Project. Participant shall furnish a certificate or insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name thc City and Agency and their respective officers, agents, and employees as additional insureds lmder the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carri",r to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insura.!1ce policy or the certificate of insurance shall contain a waiver of subrogation for the benetit of the City and Agency. . Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom. it has contracted for the performance of work on any BUD Unit or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 8 CDC 1999-19 3. [304] Rights of Acce~;~ For the purpose of assuring compliance with. thIs Agreement, representatives of Agency and the City as designated by the Director shall have the right of access to each HUD Unit, without charge or fee; at normal constructiQn hours during the period of work for the purposes of the inspection. 'pfthe work beipg performeq in con~tructing the rehabilitation on the HUD Unit. The Agency shall hold the Participant hlumless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 304 resulting from the gross negligence or willful misconduct of the City or Agency while on the HUD Unit. This Section 304 shall not be deemed to diminish or limit any right which the City or Agency may have by operation of law irrespective of the Agreement. Nothing in this Section 304 shall be deemed to make either the City or the Agency a guarantor of the work of rehabilitation or improvement of any HUD Unit. 4. [305] Local. State and Federal Laws Participant shall carry out the Project and all related activities on any HUD Unit in conformity with all applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. 5. [306] Anti-Discrimination Ouring Rehabilitation Participant, for itself and successors and assigns, agrees that in the rehabilitation of the HUD Unit provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [307] Taxes, Assessments, Encumbrances and Liens Prior to the issuance ofa Certificate of Occupancy for any HUD Unit, Participant shall not place or allow to be placed on such HUD Unit any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on a HUD Unit, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to a Qualif1ed Homebuyer. . C. [308] Prohibition Against Transfer of the HUn Unit and Assignment of Agreement Prior to RecQrdation of a Certiflcate oLComp]etion of the HUD !1gi! I. Prior to the recordation of a Certificate of Completion by the Participant for a HUD Unit, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of any HUD Unit. This prohibition shall not be deemed to prevent a transfer of a 9 CDC 1999-19 BUD Unit to a. Qualified Homebuyer or the granting of temporary or permanent easements or permits to facilitate the.rehabilitation ofille Project 2. Upon obtaining a Certificat7, of Oc~upancy from the City for a completed rehabilitation of a HUD Unit, the Participa'ntshall sell sllcp. Hpn Unit to a Qualified Homebuyer in accordance with and subject to the restrictions setf()rth in this Agreement. . , . 3. The deed or other instrument of transfer by the Participant to any purchasers of the HUD Unit shall require that the unit be owner occupied by persons living in the units as their principal residences and shall further require that such unit shall remain available at affordable housing costs to the families of low- and moderate-income for a period of not less than ten (10) years subject to any other exceptions as may be provided by the Agency. 4. The Participant may not rent or lease any HUD Unit to a third party and during the time that the Participant may hold title to a HUD Unit, no person may use the HUD Unit for any residential dwelling purpose. D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation Mortgages, deeds of trust other encumbrances of each HUD Unit are to be permitted before completion of the rehabilitation of a HUD Unit but only for the purpose of securing loans of funds to be used by the Participant for financing the acquisition or rehabilitation of improvements on the HUD Unit. Participant shall not enter into any other conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar lendirtg institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 310, executed by the Director. In the event that the Agency fails to accept or rejectsuch tender in writing within fifteen (I5) days after written notice thereof is received by the Agency, such lender shat.! be deemed approved. E. [311] Right of Agency to Satisfy Other Liens on the Proiect Prior to the completion of the rehabilitation on any given HUD Unit, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfY any liens or encumbrances on a HUD Unit which are not other-vise permitted under this Agreement, Agency shall have the right, but not the obligation, to satis(v any such lien or encumbrance. 10 CDC 1999-19 IV. [400] USES OF PROJECT OR BUD UNIT; AFFORDABILITY COVENANTS A. [401] Uses - Covenants Running with the Land Participant covenants and agrees for itself, its successors, its assigns, and ev~ry successor in interest to any HUD Unit, that for the period of time set forth in the Agency Quitclaim Deed, each of the HUD Units acquired by Participant shall be devoted to and available for sale solely to persons or families with an income which are very low, low and moderate, as those ternlS are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "C", or 24 CFR 813 whichever funding source is applicable to the Participant's prospective Qualified Homebuyer for the HUD Unit. The Pflrticipant further covenants and warrants that Participant shall undertake the rehabilitation on the HUD Units in accordance with the standards set forth in this Agreement. Participant covenants to obtain all necessary permits and rehabilitate each HUD Unit in conformity with all applicable laws. Failure to obtain all necessary permits shall be a default under this Agreement. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any HUD Unit, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any of the HUD Units. The foregoing covenants shall run with the land. These covenants shall be expressly incorporated in the Quitclaim Deed from the Agency to the Participant. B. [402] Maintenance of th_d:lVI2.lJ.!lit~ Maintenance Condition of Each HUD Unit. Between the date of the close of each HUD Escrow and the date of the close of the New Home Escrowfor each such HUD Unit the Participant for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of each HUD Unit which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of dose of a HUD Escrow, there is an occurrence of an adverse condition on any area of a HUD Unit which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thiny (30) days horn receipt of such, notice to cure the Maintenance Deficiency as Jl CDC 1999-19 identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order. to verify whether a Maintenance Deficiency exists and whether the Participant has faiied to comply with the provision of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Defi.ciency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the HUD Unit and perfOlm all. acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HUD Unit authorized by this Section shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in Subsection( c), below. (b) Graftiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or in1provemert on a HUD Unit which is visible from any public right-of-way adjacent or contiguous to the HUD Unit, shall be removed by the Participant by either painting over the evidence of such vandalism with a }!laint which has been color-matched to the surface on which tne 'paint is ,applied, or graffiti may be removed with solvents, detergents or water as appropriate.. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HUD Unit and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HUD Unit authorized by this Subsection(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HUD Unit. If the anlount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection( c ),below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HUD Unit, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably necessary to restore the HUD Unit to the maintenance standard required under Subsection(a) or Subsection(b), including attorneys fees and costs of the Office of Agency Counsel (including salaries and wages of the legal staff and pursuant of this Office of Agency Counsel) as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the. CQsts of the Agency in connection with such action. The provisions of this Section, shall be a covenant running with the land, and each HUD Unit, and shall be enforceable by the Agency. Nothing in the foregoing provi~ions of this Section shall be deemed to preclude the Participant from making any alteration, addition, or other change to any structure or improvement or landscaping on the HUD Unit, provided that such changes comply with applicable zoning and building regulations .of the City. 12 '1' CDC 1999-19 C. [403] Effect of Violation of the T~nl.!s anQJ?rovisions of this Agreement After Completion of Rehabilitation The covenants established in tillS Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement with respect to each Participant HUD Unit shall remain in effect for the term as set forth in the A,gency Quitclaim Deed. The coyenants against racial discrimination shall remain in perpetuity. . Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants. running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches t.o which it or any other beneficiaries of this Agreement and covenants may be entitled. . V. [500] GENERAL PROVISIONS 1. [SOl] Termination and Breach (a) Termination Without Default or Breach. This Agreement may be terminated for the convenience of by either party who is not then in default upon thirty .(30) days notice to the other party; provided however, that for any HUD Unit for which a HUD Escrow is then open, such HUD Escrow transaction shall be closed and the HUD Unit shall thereafter be rehabilitated and offered for resale to a Qualified Homebuyer as set forth in this Agreement. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, conect or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a defimlt has occUrred shall give written notice of default to the party in default, specifying the alleged default. . Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure- to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or 13 CDC 1999-19 more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to rerminate this agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary. 2. [502] Notice Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party wlder this Agreement shall be in writing and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as follows: Participant: Augustin R. Rodriquez ANR Industries, Inc. 10170 Artesia Place Bellflower, California 90706 Agency: Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 92401 3. [503] Conflicts of Interest; Ngnli,!bility No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participate, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms ofthis Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. 4. [504] Inspection of Books. Records and Reports Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to any HUD Unit as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to any HUD Unit as pertinent to the purposes of the Agreement. 14 CDC 1999-19 The Participant shall provide quarterly report:> to the Agency regarding all HUD units acquired and sold under this Agreement. 5. [505] Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the Agency's and the City's members, officials, employees and agents from and against any and all claims or liability arising from Participant's actions under this Agreement or from the conduct of Participant's business or from any activity, work or thirigs done, permitted or suffered by Participant and shall further indemnifY and hold harmless the Agency and City and their officers, employees and agents from and against any and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this Agreement arising from any negiigent or wrongful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnifY and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to environmental conditions, that may arise as a result of the Agency's acquisition and/or ownership of any HUD Unit that is the subject of the Agreement. VI. [600] SPECIAL PROVISIONS 1. [601] Submission of Documents to Agency for Approval When~ver this Agreement requires Patticipant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participatlt may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 2. [602] Successors in Interest The temls, covenants, conditions and restriction of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. . VII. [700] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Exhibit "A" through Exhibit "F", which together with this Agreement constitute the entire understanding and agreement of the parties. 15 CDC 1999-19 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city statues, or it is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this agreement shall not be affected thereby. All waivers of the provisions of this Agreement must be in writing by the Director of the Agency or the Participant, and all amendments thereto must be in ""Titing by the Director of the Agency or the Participant, except that the Director may only agree to non-substantive changes hereto with concurrence by Agency Special Counsel. Substantial changes to this Agreement shall require the prior approval of the governing body of the Agency. Each individual signing below represents and warrants that he or she has the authority to execute this Agreement on behalf of and bind the party helshe purports to represent. VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [801] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Director as evidenced by the date first above shown. IIII IIII II/I III I /11 I IIII 16 CDC 1999-19 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. By: "AGENCY" Redevelopment Agency of the City of San Bernardino By: "PAR TICIP ANT" By: Title: ~'c~ ~~. \fIUL ~~b4-j' By: Title: By: Title: 17 CDC 1999-19 EXHIBIT "A" 1999 ARR AGREEMENT "Map of ARR Zone" CDC 199~-19 Lj (" I: ...-/ ZlN\1O !! ~ !! E -l ~ o c U !!! c: - :; E -~ UJ E <II en o ct a.. ~ ~ <<l a: II: < ~ "0 c: :; :: aI m ... aI >- 'E ~ a U lllll\\lWMV nn Uu , loi !~ I", I'!l' ~ I 1--- I I i mf'll i ~J:i t-~ 0:= og zg- ~ ,~ ~\'\."', ~'\~ ... ~ -< o z ~ '" --"Ui'/" <?-o l!1 '" ~ - U) E ca U1~ Q)0l g C e -00. ~No. cC<t <000::= CO:;:"::; cctJ-o ro .t:! C Cf.)-ca _ctJ 0':::0: >.>0: ~Q)<! 00:_ CDC 1999-19 EXHIBIT "B" 1999 ARR AGREEMENT "Current Household Income Listings for Qualified Homebuyers" CDC 1999-19 EXHIBIT "B" 1999 Income Limits Income HOUSEHOLD SIZE Level I 2 3 4 5 6 7 8 Very Low $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 (50%) Lower. $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 (80%) Median $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 (100%) Moderate.. $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 (120%) * If Participant's Buyer is using HOME Federal Funds the Maximum Annual Income afamily can earn is 80% of median income according to household size. ** If Participant's Buyer is using State Low/Moderate Income Housing Funds the maximum annual income a family can earn is 120% of median income according to household size. P:lFomrs\ARR PrvgramlARR /llCome UmUs.doc CDC 1999-19 EXHIBIT "C" 1999 ARR AGREEMENT "ARR Program - Steps and Process for Circulation of HUn Unit Listings by the Agency and Selection of HUn Units for Purchase by Participant" CDC 1999-19 ECONOMIC DEVELOPMENT AGENCY CITY OF SAN BERNARDINO "Acquisition Check List" o COPY OF HUD SALES CONTRACT (Land Use & Part A-D) o REQUEST FOR PROPERTY INSPECTION ANALYSIS FORM To be executed and returned to EDA five (5) days from the date of list of properties is provided to participant D COPY OF ESCROW INSTRUCTIONS (HUD TO EDA) D COpy OF ESCROW INSTRUCTIONS (EDA TO PARTICIPANT) D PARTICIPANT CONSTRUCTION/REHABILITATION WORK WRITE UP TO EDA INSPECTOR o PRELIMINARY TITLE REPORT D (2) SETS OF ESCROW INSTRUCTIONS TO SIGN AND RETURN EXHIBIT "1" \1fD'JN< Il8UlO\PUBLIC\FOm1SIAAA ""","mIAAA Process.doc _7199 3 CDC 1999-19 Economic Development Agency City of San Bernardino ACQUISITION, REHABILITATION & RESALE PROGRAM (ARR) ARR PROCESS A. Exclusive Sales 1. EDA will receive weekly (Thursday evening) an exclusive list from HUD of units available within the Revitalization Zone. 2. EDA will distribute exclusive list to Participant no later than Friday A.M., following receipt of Thursday's list. 3. EDA has seven (7) days from receipt of list in which to express interest in any property. Thus, Participant will notify EDA within five (5) days (Tuesday, 5:00 p.m.) of receipt of list from EDA interest in property. 4. On fifth day, Participant will submit to EDA: (1) Request for Property & Inspection Analysis form. (2) HUD Sales Contract and attachments for signature by EDA staff. 5. EDA will notify Participant by 7th day (Thursday, noon), when documents are ready for pick-up. B. Direct Sales 1. Tuesday evenings HUD list properties on the Internet (Direct Sales Internet Lottery Process) 2. EDA approved Participants must e~press interest to purchase properties by 3PM Friday (3 days after HUD's posting of Direct Sales List). . Participant must perform due diligence of properties (completed property and inspection form). 3. Participant must retain HUD lottery number/confirmation number of transmission. HUD will select winner by Wednesday evening (1 week after posting Direct Sales List). 4. List of winner will be posted Wednesday evening. Participant should check this list promptly to verify whether they are the winner of the property. 1 CDC 1999-19 S. Upon verification of HUD winning lottery number, Participant will have until end of business day on Friday (2 days after HUD posts winners) to deliver a complete sales package to EDA include: - HUD Sales Contract (Original) (Include HUD Addendum A-D - HUD Land Use Restriction Addendum - Request for Property Inspection Analysis Form 6. EDA will review and execute sales package by 12:00 p.m., Monday. Participant to pick up Monday and overnight complete executed sales package to: Golden Feather, C/O Tammy Massone, 225 East Airport Drive, Suite 100, San Bernardino, California 92408, (909) 890-2370, (909) 890-3831 FAX. 7. Close of Escrow - HUD executes contracts and opens escrow at Arrowhead Escrow, 935 South Mt. Vernon, Suite 106, Colton, California 92324. (45 day maximum for closing) C. General Notes 1. Important - EDA purchases property under the name of "The Redeveloment Agency of the City of San Bernardino, a public body, corporate and politic." Therefore, all HUD contracts and documents must reflect this entity. 2. EDA's purchase is funded by Participants private lender or other funding sources with a concurrent escrow to close from EDA to the Contractor. (EDA does not provide any funding for HUD purchases or rehabilitation). , 3. . After close of escrow from EDA to ARR Participant, Contractor performs rehabilitation on house per the original construction work write-up and markets property for sale. Contractor is responsible for obtaining permits with building and safety for all repairs to the house. 4. EDA Inspector performs a final inspection of the property (after rehabilitation in accordance with "Contractor Construction Work Write-up") to insure all work is completed as per these specifications. S. Assuming the buyer has been qualified and pre-approved for the Mortgage Assistance Program (MAP), by the primary lender and EDA, and a final inspection has been performed by EDA Inspector, EDA will issue a check and fund the MAP for the buyer. P;\Forms\ARR Program\ARR Process.doc (Revised 7/99) 2 CDC 1999-19 EXHIBIT "2" Economic Development Agency City of San Bernardino "Request for Property and Inspection Analysis Form" (to be submitted by Partidpant to EDA with HUD Sales Contract and Attachments) ,~+>H',/~""" /'Wh" ;.iI!.;i# / . Paltld' i1t Inforinal:lOh ,~;.,'i~:"""$~J Date Submitted to EDA: AM Contractor: Contact: Phone Number: . InformatiOii'9,'~Nr' HUD Case #: Status: 0 Uninsured 0 Insured Check Approximate Location In Revitalization Zone (See Map - Exhibit "A"). Property Address: City/Zip: Estimated Costs Total Sq. Ft. Actual Costs Bedrooms: Bath(s): HUD SALES PRICE $ ELECTRONIC BID PRICE (IF APPUCABLE) $ HUD DISCOUNT PRICE $ REHABIUTATION COSTS (L & M) $ PARTIOPANTS OVERHEAD $ TOTAL PROJECT COSTS $ ARR SALES PRICE $ ARR PARTIOPANT PROFIT $ $ $ $ $ $ $ $ $ % Profit (Maximum profit Is 15% of Total Project Costs) Amount of Loan for Property (Acquisition & Rehabilitation Loan) ARR Participant Lender: Address: Phone Number: BUYER INFORMATION,: Buyer(s) Name: Family Size: MAP Loan: (Not III exceed 10% d Purdlase Price) $ Oosing Date Lender Name/Contact Lender Address: Lender Phone: Annual Gross Income: Buyer's Contribution: (Minimum d $500) $ Partidpant Contribution: City: Lender Fax: Please check Appropriate Categories: Sr. Otizen(S) 62 Or Older 0 Female Head of Household 0 Hispanic 0 White 0 Asian or Padfic Islander 0 Disabled Family Member 0 American Indian 0 Black 0 I OFACE USE ONLY: % of Median = ARR Participant Signature EDA Representative Signature Date EDA Review Contract/Inspection Form/Date EDNPre-Acquisition Inspection Signature/Date EDNPost-Acquisition Inspection Signature/Date \\fOUAH IfRDOIPUBUC\fOnn$\AAR _m...... __ <- 7/99) 4 CDC 1999-19 EXHIBIT "D" 1999 ARR AGREEMENT HUD Escrow Documents: (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents CDC 1999-19 l:.S.DEPT. OF 1I0l"SI:\C & URBAi\ DE\'El.OP\lE\T Addendum A (RF\'4199) .........FORFEITURE :\;'-;0 EXTENSION POLICy......... AIIIII:1l Pr,)p~rlY l)"poSIIIOIl sales o( 1I{'[)a"'llllr~d I""i','nl~' ar~ to ~Ios~ wllllln 4~ dJ\; o( ac,~piJn,'~ <II .1 IIL[),()'~S (I 99) Sale, Connad olfa 10 purchas~ f'urfciturc of Earnc't :'>Ioncy Dcposits, Th~ fallur~ by a Purchas~r to c10sc on th~ sale of pro!,,'n:- \\ IlIlIn th~ a 110\\ able tlll1~ p~rloJ, 11l(ludin~ .lilY ~'I,'llSIOIlS grant~J by IIl;U, \\ ill r~;ult III th~ (orfclture of the eafll~,t 11101lC> ':'"1'""11. e\(~pt \\ here thc purchascr pr~scnh do(UnwlltJtlllllto III'[) thaI 'lIl,' ofth~ spcclal CHCUll1stanccs described III paragraphs (.1 I alld (bl b~low of thiS SC(tIOIl has o((urr~d (a) 11l\'~Slor Pur(hascrs, (I, Th~ fallurc by an In\estor Purchaser 10 close 011 all U1l1nsured sale wtll result III forfcllur~ o( Ihe ~Illlfe eamest 1110n~y d~poslt. (21 hfty percent oflh~ earnest l110ney deposlI Oil an Illsured sale will be return~d 10 an In\'~sttH Purchascr where IIUD (or a DIf(~ct Endorsement Ienda uSlllg l!l'[) gUI,lehll~S I d~tarntlles that the Purchaser IS Ihll all acceplable borrower (bl (II 0\\ ncr-Occupallt PlII~hasers, The ~nllre earnest money d~posll \\tll b~ r~lurn~d to an owner-occupanl Purchasa wilt) fads tll cl",e wh~lc, Slllt:~ thc cnntract of sale was signed 1 here has been a d~ath Illth~ ll11m,'dlJle (illll:i:, ((,lnlrac! holder, spous~, or (hddr~n 11\ Ing tr\ Ihc sam~ h.)usdlOldl. (II (n) "Illere has bc~n a re(ellt S~rlOUS tllnc,s Illlh,' Immedlalc fJnllly thai has result~d III S1!;Il1fiLalll mcdiCal ~'penscs 01 sub,tJll1ialloss of In(Ome, thus a,hers~ll' a(fl',~1I1g Ih~ purchascr's flnanLlal abllll\' to Ckh~ th~ salt' (Ill) Thae has been a loss of Job by one .)llh,' !,""Uf' Ilr~Jeh, Illners, or suhstantlallo;s vf If\e"''IllC Ihl"l:gh nd fJul1 ,)( ,l,C Purchascr, (1\) In the case of an Illsured sale, IILD {,'r a [)IIC~t 1',I"lor,;~rncnt knd~r USlllg IlljD gUldellllc;) dctcmllne; thJt th~ Purchaser IS not an~cceptahk borrow <:r, ,\[ f , (q -F';r oth~r g,)od cause, as d~tern)ln~d b:. thc' flcld offlc~ (~I In the case of an umnsured loan wher~, despltc gnod fallh efforts by the Purchaser,thcre IS anlllab,hty to ohtalll a mortgage loan from a reLognlzcd mortgage knekr. 50 p~rcent of the earnest money dcposlI will be returned (31 On elthcr type of sale, forfeit 100 p~rLelll vllh~ dcpOSll1ll those instances whcre no d,)(umenlall"nls submlttcd, \\helc the documentation falls to pro\'ld~ all a(c~ptabk causC for the nuyer's faIlure to closc, or whcre documcnlatlon IS nOI pro\ld~d wllhm a rcasonable tllne f"lh,wlIlg (,HlIlaLt callcdlallon (e g, 30 days) Extensions, llle Goldcn Fcather Realty office Will granl ~~tcnSlUIlS of tlmc upon wnttell rcqu~st from purchascr E\tcnslOns of tllll~ to close the sak ar~ enllre!\' \\ ,Ihin the Sell~r's dIS(r~lI'H1 An n:enS1Un, If ~rant~d, WIll b~ undcr th~ fllllowln1: (Ond,llOns (a. ,\ \\rltt~l; rCcjucst for an e\tenSI()[~ Illlhl bc r,',','\\ cJ \1\ G;kkll Feathcr Realty no bic'r thJIl r.\C da\ s befeHc thc "It~dukd dCJdlme f'H CIOSlllg ~hl 111e documentatIon SUblllltt~d \\ IIh th,' rcquc-\ Ill"'\ ~,IJbhsh the caus~ Ilf dclay and tltal mortgage apprn\ .111, 1Il1l1llncnl dunng th~ C\tcnSlOn penod ((I .-\n ~\tcnSI(\n Will be for a perIod of flflC"1I ,'.lkll.l,1l Jays al a fcc ofS37~ 00 (20.;K ,~O days, S7~O (1)) Fcc,; t,allflCd funds) will be d~p<l'lted m ~SdOW 1l11l11c'.IIJ:':;' upon J['prol'al hI. 1,'tcnSlon k~s shall bc rctamcd h ~c'llel 11.1 ;:,'Slllg d,)c, nol V(cut (Cl ,\llh~ tIlll~ of (Insmg, unus~J ",tc'n".'" (,'c', \\ 111 b~ ['flIratcd to thc l'urdlJ'Cr ,llld Iclunclt'd by C>(lO\\ (1'1 "Ille granllng of onc c\tcllSlon ,tullnel' "hl;,:,lle thc' Sdler to grant addlti,)flal ,"tclhlons, and thc Sellel shJl1 dc, laIC a Ildault fOlth~ I'ur(ha,c,,' Lllh".: III (l.hc ::',c' ,ak ur\lnth~ c\plfati'Hlofth,' (\[\glllitl (h'''llg pClltld or UI""l "'1'II,III"n ,,1' thl' C\h.'lhlnn CDC 1999-19 Allowable Closing Costs. The following closing costs with a combined value of not more than 3% of line 3 of the 9548 (li99) Sales Contract may be crediled to Line 5 of Ihe Sales Contract. Funds not consumed will be credited to Ihe Seller. 1% Loan Ongination Fee Cre,lIt Repon Impounds Interest Hazard Insurance Lenders Co\'erage Policy Owners Coverage Policy l'-:otary Taxes (Current lax year) HOA Dues (Current month plus one) AlITO~IA TICALL Y PAID I3Y HeD (lIot IlIcluded online 3) Recordmg Fees - Deed and :'--Iortgage City/County TaxiStamps Escro\\' Closing Fee WIre Transfer Fee to \\'ashington. DC. HUD Case No. Propeny Address: City: Seller Disclosure. Seller makes no representations or warranties concerning Ihe condition of the propeny, including but not limited to mechal11cal systems. dry basement, foundation, structural. or compliance with code, zoning or building requirements and will make no repairs to the property after execution of this contract. Purchaser understands that regardless of whether the property is being financed with an FHA-insured mongage, Seller does not guarantee or warrant that the propeny is free of visible or hidden structural defects, termite :damage. lead-based paint. or any other condition .that may render the property uninhabitable or otherwise unusable. Purchaser . acknowledges responsibility for taking such action as it believes necessary to satisfy itself that the property is in a condition acceptable to it. of laws, regulations and ordinances affecting the property, and agrees to accept the property in the condition existing on the date of this contract. Seller disclosure concerning HOA dues. Mello Roos taxes, assessments, or any tax concerning HUD homc:s is based on available information but not deemed complete or accurate. It is the responsibility of the Buyer to obtain all information concerning thc:se issues. 'V:lIk-Thru Inspection. All purchasers are strongly encouraged to perform a walk through inspection PRIOR to the close of escrow. If a purchaser discovers a propeny condition that did not exist at the time of sale they must immediately notify HUD's propeny manager, Golden Feather Rc:alty. of the damage. The buyer assumes full responsibility for the property and its condition on the date of close of escrow. 111e Depanment assumes no responsibility. and will make no settlement, for damages reported to HUD after the close of escrow (See item # 13.E of HUD Sales Contract) Buver Cenifieation. - I. we cenify Ihat I.\\<: ha\'e been mtCfvlewed. completed a loan application, verification of employments and obtained a full credit repon from the lender that'has provided the attached Letter of Commitment. Vwe understand that \:we WIll forfett our earnest money depOSit If \\e enter mto tillS contract \\ Ithoul completing this qualification proce.ss. SlgnJtures (Purchaser) ( Purchaser) (purchaser) {Purchaser} CDC 1999-19 LANDU~E RESTRICTION ADDENDUM Thi, Addendum IS Incorporated by reference to Ihe FHA Sales Contracl for the properry located a\ ..____, execuled on Ihis S.lme day of , 199_ between (Purchaser) and the Depar1ment of Houstng and Urban Developmem (Seller). Unless an exceplion is granted tn wrillng by the Seller: il The Purclo"ser " <:xpected, at a minimum. 10 rtpalr the property according to loc<.ll code, after which il shall r("sellthe property only 10.1 person who inlends 10 occupy as his or her principal reSidence and whose income is al 01 below 115 perrem of the median income in the area, when adjusted for family size. or a Slale, government enticy, !Tine, or agency thereof, or a private nonprofil org.lniz.1tion dS defined in 24 CFR 291.405. b. The purchaser shall not reselllhe propcrTy for an lImollnt in excess of 110 percenl oflhe net developmem cos!. Net development cOSt is the [otal cost of lhe project, including items such a~ aequlsilion cost. arehlleelUral fees, permits IInd survey expenses, insur<lnce, rehabilillltlon, and taxes. It does not tnclude a developer's fee. Total costs incurred by lhe Purchaser, including Ihose for acquisition rlIlliIleing, management, rehabilitlltion, and selling expenses, are expected 10 be reasonable and cu>tomary for lhe area in which this property is located. c The developer's fee provides for Purchaser's overhead anti slaffinJ,: costs rela[ed to the proJecl, and may not exceed 10 percent of the nel development cost d rhe properry may not be occupied by or resold to any of the Purchaser's officer.>, din:ctors, elected ur appoimed otlicials, employees, business associates. or to any individual who is related hy blood. marriage. or law to any of the above. e There may be no eonnlcl of interest with individuals or firms Ihat may provide acqUisition or r~habilitallon funding, management or sales services, or other associated with the projecl. 2. Purchaser must provide periodic reports, as specified by 24 CFR 291.110 and in Ule formal and frequency specified by HUD, regarding lhepurchase and resale of properties subject to this Addendum. 3. TI,;, Adtlc:ndum survives the expinuion, if any, by operation of law or othen'lise, of the FHA Sales Contract, and shall terminate five years from the date conrained herein. Purchaser Witness Secretary of I-1ou5;n~ and Urban Development Seller Witness By' CDC 1999-19 LEAD-BASED PAI:"iT ADDE:"iDl:;\1 TO SALES CO:"iTRACT - PROPERTY BUILT BEFORE 1978 ATTACII:>.IEj\;T A Page I of 4 FilA CASE !"O PROPERTY ADDRESS :"OTt: TO PU{CIIASEKS. REAL ESTATE BROKERS A:\O AGE:\TS: 17m atldentlum IS manddlOryfor any properl) budl before 1978 and cons ISIS offour pam Pari A.DlSclosure of In/ormolion on Lead-Based Painl ant! or l.ead.Based Paml Ha:ards. Pari B. Sales Contract Lead Based Painl E.'a/uation Conllngency, parI C. O"..l'r.Occupanl C,,'ijicallon, and Parl D. purchaser's ,Mdendum to tl... Sales ContraCI . Release of Lead Based POInt E,'aluatlOn Conlingency..W parIS must Ix con1pil"t,'d as sho,,'n ThIS 1.,-",I.Bascd Pmnl ,~dd,-ndum must b,' compil"ted on or bl'fore the date oflhe Sales Conlract, and forward,-d 10 HUD ,,'ith the Sales Conlraclfor anI propl'r/( buill b..'fore /978 Sales Contracts ,,"hOUllhlS Addendum ...dl nOI be acccpted b.. "C'D 17lis Adden,lum sun'il'cs Ihe closing of the sale PART A DlSCLOSl'RE OF INFOR.\IATlO.V ON LEAD-BASED PAl,"''! At'v'D:OR LEAD BASED PAINT HAZ.jRDS I.EAO \\ AR:\t:\C ST A TE'tE:\T. E.cr/ purell<ls", of a".l interesl In reml.-nllOl "'01 property on ..hlCh a "',,denllal ,I..clling ,,'as blllll pnor 10 1978 IS nOllfied Ihat su<'h p",{,-r/( m". p,,'s,'nl ""1'051"'- 10 !.-ad from il"ad.based that may pldce yo,.og chlidren at nsk of dCldoplng lead pOISonIng Lead poisonmg m young children nall prdduCl'p.-rm,;n.'nl ",-urologlCr./ ddnll'Kl'. includIng h'arning d,sal"IIIIt's. re,luad inlelligence quotlt'nl. b,'hm'lOralprobkms. and impmred memory. Lead poisonIng ..1", 1'0"" a p'l'lI.,,:.l' mk lopr,'gn"nl ..omen Tne sella of an) /II1,'rest m r",denllollprop,'rI.' IS "'4l11rl'd 10 pro "Ide the buyer ,,"h any informallOn on lead.ba,,-d pm"' "aoanls from rISk assessments or /IIspeCIIOns m the sell,,'s possewon an, I nOllfi lite b"ycr of 0".1' kIlo,,'n lead-bas...1 pOlnl ho:ords A risk assessment or injp~ctrc)nfor.paSJ,blc.: /eD(f. baseli paint ha:ards is n'commendf.~d pnorlO ptlrchasc SELLER'S DISCLOSllRE A Presence ofkad-based paint and/or lead-based paint hazards (ch~ck one bdow): I. Known lead-based paint and'or lead-based paint hazards ar~ present in the property (explain): 2. Selkr has no actual knowledge of lead-based paint and'or lead-based paint hazards in the property. B. Records and r~ports available to th~ seller (check on~ bdow) 1. Sell~r has pro\'ided the purchaser with all available records and reports pertaining to kad-based paint andJor kad- based paint hazards in the property (lisl documwts below). 2. Seller has no reports or records pertainIng to kad-based paint and'or lead-based paint hazards in the property PURCHASER'S ACK-'\OWLEDGEi\lENT (initial) C. Purchaser has received copies of all infomlation list~d abo"e. D. Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. L Purchaser has (check one below): 1, Requ~sted a 15 day opportumty to conduct a risk assessment or Inspection for the presence of lead-based paint and or lead-based paint hazards; or 2. Waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and'or lead. based paint hazards BROKERIAGE!'\T ACK-'\OWLEDGDIEi'tT (initial) F. Broker'ag~nt has informed the seller of the seller's obligations under 42 U.S.C 4S52d and is aware of hiS/ber responsibility to ensure compliance. CERTlFICATlO:"i OF r\CCUR.\CY TIle following parties have reviewed the infomlation above and certify, to the best of their knowledge, that the information they haw provided is true and accurate. Seller Date Purchaser Date Purchaser Date -----.----- 9!'J6 Broker' Agent Date CDC 1999-19 Attachment A Page 2 of 4 PART B SALES CO:\'TRACT LEAD-BASED PAI:\'T EVALUATION COI"TINGENCY This contract is contingent upon a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-b:lsed paint hazards at the Purchaser's expense until 12 noon on the 15th calendar day after acceptance, on [Insert date] This contingency will temlinate at the above predetermined deadline unless the Purchaser or Purchaser's agent delivers to the Seller or Seller's agent Part D of this addendum listing the specific lead-based paint hazards and corrections needed, together with a copy of the inspection and/or risk assessment report. The Seller may, at the Seller's option, within five days after delivery of Part D of this Addendum, elect in \vriting whether to correct the hazards(s) prior to settlement. If the Seller will correct the hazard(s), the seller shall furnish the Purchaser with certification from a risk assessor or inspector demonstrating that the hazard(s) have been remedied before the date of the settlement. I f the Seller does not elect to make repairs, or if the Seller makes a counter-offer, the Purchaser shall have five days to respond to the counter offer or remove this contingency and take the property in its "as is" condition or this contract shall become void. The Purchaser may remove this contingency at any time without clause. INTACT LEAD-BASED PAII\T THAT IS IN GOOD CONDITION IS NOT NECESSARlL Y A HAZARD. See EP A pamphlet Protect YOllr Famil)' From Lead ill YOllr Home for more information. lead-Based Paint Addendum to the Sales Contract - Property Built Before 1978, including Part A, Disclosure of IllforlllatlOll on Lea.I-Based Paint andior Lead Based Paint Ha:ords. Part C. 0" Iler-Occupant Certification (if applicable), and Part D. Purchaser's Addendum co Ihe Sales Conlracl _ Release of Lead-Based P,llnl [\'(1IuollOll Contillgency, if applicable, must also be completed and made a part of this Sales Contract. 9/96 CDC 1999-19 Attachment ^ Page 3 of 4 PART C OWl"ER-OCCL'PAl"T CERTIFICATlOi\ TO BE CO\lPLETED BY ALL OWNER-OCCUPANT PURCHASERS ONLY Check and complet~ the following. as appropriate: _ Uwc do not have a chIld under the age of se\'en years, _ Uwc do ha\'e a chtld under the age of seven years TheIr names and ages are as follows: Name Age Check only one of the following blocks i r chi ldren under seven are indicated above: _ I/we underst:md that within IS days after acceptance by HUD of my/our offer to purchase, Vwe will at my/our expense, have each of the above-named children tested for an elevated blood level (EBL) and that Vwe will provide these tests to HUD, If I/we fail to provide the test results to HUD within the15 day time frame, the contract will be canceled immediately without further notice, Further, I/we understand that if an EBL condition is identified, I/vve have the option to: I) cancel this contract and receive our earnest money deposit back, or 2) complete the sale of the property within the understanding that I/\\e will, at a minimum, have the property tested for the presence of lead-based paint on all chewable surfaces and, where 1ead-b3sed p3int on chewable surfaces is identified, ha\'e such paint surfaces abated, _ I/\ve fully understand that if a blood lead level screening program is not reasonably available or if V\ve . refuse to have my/our child(ren) tested, I/vve have the option of closing this sale. L'we hereby acknowledge that this property Vwe am/are purchasing from the Department of Housing and Urb3n Development may contain lead-based paint. However, despite this possibility, lJwe elect to close the sale on this property. Further, I/\ve agree to hold HUD harmless for this action. Signarure of Purchas~r Signarur~ of Purchaser Date Stgruture of Witness Date 9 '1(. CDC 1999-19 Attachment A Page 4 of 4 1':,\D UASED I'AI:-;T ADDE:-;Dl::\1 TO SALES CO:-;TRACT - PROI'ERTYBUIL T BEFORE 1978 FilA C AS[ ","0. PROPERTY ADDRESS: PART D PURCHASER'S ADDESDUAf TO THE SALES CO!'iTRACT- RELEASE OF LEAD-BASED PAINT EVALUATlOf\,' CONTlNCn.;Cr Ifphrch.lser IIIl1h.I1ed ParI A. ,h'm E I oftlte L..."/.B,,,,'d PainlAdd,'ndulII IV tl:e Sules Contracl. Properlll's fl",11 8'1;"e /978 (Add,.,,,/um). IllIs ParI D fIIu.'1 b,' cOfllp!"t,'d as sltv,,'n and provided to lite Seller on or b.jvre lite dale slto" n in lite Addendum. Pari B. or rite conllllg,'ncy IS IcrmlllJ!...J Ifp"rclt,lSer "'iIla/ed ParlA. ilem E. 2 lit,'" I/',S P.ur D is wlnecessan,,"tdn,'ed ,,"110 /:>,' ","'p/Ned or prom{"d IV Ihe Seller PURCHASER'S ACK1'\OWLEDGEi\lE;<-;T (check appropriate boxes) I ] Purchaser acknowledges that he/she has received a 15 day opportunity (or other mutually agreed upon period) to conduct a risk assessment or lead-based paint inspection for the presence of lead-based paint and.'or lead-based paint hazards. that such a risk assessment or lead-based paint inspection has been made I] Purchaser acknowledges that Seller is under no obligation to correct any lead-based paint and'or lead- based paint hazards identified by the lead-based paint inspection and/or risk assessment and hereby removes the contingency and accepts the propeny in its "as is" condition. without warranty. as described in item B, Conditions of Sale of the contrac! [ ] Purchaser requests that Seller take the following action to correct the lead-based paint hazards noted: Lead-Based Paint lIazard Corrective Action Requested Purchaser has attached the risk assessment or inspection report. If Seller refuses this request. Purchaser reserws the right to continue wllh the purchase or reque~t cancellation of the sales COnIT;1C! ( ) Purchaser requeSts cancellation of the sales contract due to the following deficiencies indicated in the attached report{s): CERTIFICATIO:-; OF ACCURACY The following panies have reviewed the infom1ation above and certify, to the best of their knowledge, that the inforrnatlon they have provided is true and accurate. Purchaser Date Purchaser Date Broker'Agent Date 996 <<. :.. CDC 1999-19 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of San Bernardino 201 North "EN Street, suite 301 San Bernardino, CA 92401 Attn: Executive Director (Space Above Line Reserved For Use By Recorder) RECORDATION OF THI~ INSTRUMENT IS EXEMPT FROM ALL FEES AND TAXES REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS FOR THE ARR PROGRAM (Name of Oualified Homebuyer) Dated as of , 200. ---ARR PROGRAM: [NAME OF DEVELOPER/PARTICIPANT]--- J \ REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ____ ............ t.....,...,../"c:.1 A ?wnn CDC 1999-19 COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS (FOR THE ARR PROGRAM) THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS, (the "ARR Covenant") is made and entered into as of , 200 , by and among (the "Participant"), the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency"), and (the "Qualified Homebuyer"), and this ARR Covenant relates to the following facts set forthih Recitals. R E C I TAL S A. The Qualified Homebuyer proposes to acquire a single family residence (the "New Home"), located within the City of San Bernardino (the "City"), from the Participant, to be owned and occupied by the Qualified Homebuyer as their principal residence. The legal description of the New Home is attached hereto as Exhibit "A" and incorporated herein by this reference. B. The Agency has made this property on which the New Home is situated available to the Participant for the purposes as set forth under that certain Aquisition, Rehabilitation Resale (ARR) Agreement dated as of (the "ARR Agreement") in order t.o make the New Home available for acquisition by the Qualified Homebuyer from the Participant subject to the terms and conditions of this ARR Covenant; and c. The terms of the ARR Agreement mandate that the acquisition, use and occupancy of the New Home shall be restricted in certain respects for the term as provided herein (the "Qualified Residence Period") in order to ensure that the New Home will be used and occupied in accordance with the ARR Agreement and the affordable single family residential dwelling unit development goals and objectives of the Agency. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 1 CDC 1999-19 NOW, . THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, THE PARTICIPANT AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. Covenant, the following words and terms shall provided in the Recitals or in this Section 1 context of usage of a particular word or require: As used in this ARR have the meaning as unless the specific term may otherwise Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for fpmily size) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167 (k) 3b) (3) under the Code, as adjusted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 50052.5. At the time of the close of the New Home Escrow, or later when a proposed Successor-In-Interest acquires the new home the amount of the maximum Affordable Housing Cost payable in connection with the acquisition of the New Home at any time during the Qualified Residence Period shallbB calculated as set forth in Health .and Safety Code 50053.5 (b) (1) or (2), as applicable. Code. The word "Code" means the Internal Revenue Code of 1986, as amended, and any regulation, rulings or procedures with respect thereto. Delivery Date. The words "Delivery Date" mean the date of delivery of title and possession of the New Home from the Participant to the Qualified Homebuyer at the close of the New Home Escrow. Lower-Income Household The words "Lower Income Household" mean persons and families whose income does not exceed the qualifying limits for lower income families as established and amended form time to time pursuant to Section 8 of the United States Housing Act of SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 2 CDC 1999-19 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Sectretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjsuted for family size and revised annually. As used in this section, "area median income" means the median family income of a geographic area of the state. New Home. The words "New Home" mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as rehabilitated and completed by the Participant and sold to the Qualified Homebuyer. New Home Escrow. The words "New Home Escrow" mean and refer to the real estate conveyance transaction or escrow by and between the Participant and the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In- Interest). The transfer of the New Home from the Participant to the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. Notice of Agency Concurrence. The words "Notice of Agency Concurrence" mean and refer to the acknowledgment in recordable form in which the Agency confirms that the proposed Su~cessor-In-Interest of the Qualified Homebuyer satisfies all of the AdjOsted Family Income and other requirements of this ARR Covenant for occupancy of the New Home by the Successor- In-Interest at any time during the Qualified Residence Period. . Qualified Homebuyer. The words "Qualified Homebuyer" mean the purchaser of the New Home from the Developer (e. g. : all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Homebuyer shall: (i) have an annual Adj usted Family Income which does not exceed the household income qualification limits of a Lower-Income Household: (ii) shall be a first- time homebuyer, as this term is defined in Health and Safety Code Section 50068.5; and (iii)pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, including all sums SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 3 CDC 1999-19 payable by the Qualified Homebuyer for mortgage financing, insurance, escrow costs. its purchase money and other fees and Qualified Residence Period. The words "Qualified Residence Period" mean the period of time beginning on the Delivery Date and ending on the date which is ten (10) years after the Delivery Date. ARR Covenant. The words "ARR Covenant" mean these Redevelopment Agency of the City of San Bernardino Community Redevelopment Housing Affordability Covenants and Restrictions by. and among the Qualified Homebuyer, the Participant and the Agency pertaining to the New Home. Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person, family or household which may acquire the New Home from the Qualified Homebuyer at any time during the Qualified Residence Period by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a "first-time homebuyer" and shall have an income level for the twelve (12) months prior to the date on which the Successor- In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for a Lower-Income Household. Upon acquisition of the New Home the Successor- In-Interest shall be bound by each of the covenants, conditions and restrictions of this ARR Covenant. The titles and headings of the sections of this ARR Covenant have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict the meaning any of the terms or provisions hereof. Section 2. Acknowledgments and Representations of the Oualified Homebuyer. The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery Date: (a) the total household income for the Qualified Homebuyer does not exceed the maximum amount permitted as Adjusted Family Income for a Lower-Income Household, adjusted for family size; (b) the Qualified Homebuyer intends to promptly occupy the New Home after the Delivery Date as the principal place of residence for a term of at least two (2) years following the Delivery Date and the Qualified Homebuyer has not entered into any arrangement and has no present intention to rent, sell, transfer or assign the New Home to any third party during the Qualified SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 4 CDC 1999-19 Residence Period so as to frustrate the purpose of this Section 33334.3 Covenant; (c) the Qualified Homebuyer has no present intention to lease or rent any room or sublet or rent a portion of the New Home to any relative of the Qualified Homebuyer or to any third person at any time during the Qualified Residence Period; (d) the sum payable each month by the Qualified Homebuyer following the close of the New Home Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Home does not exceed the Affordable Housing Cost for the household; (e) the Qualified Homebuyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax returns filed by all persons who reside in the New Home for the calendar year preceding the close of the New Home Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all person residing in the New Home at the close of the New Home Escrow; (f) The Qualified Homebuyer has been informed by the Participant that this ARR Covenant imposes certain restrictions on the use and occupancy of the New Home during the term of this Section ARR Covenant and that this ARR Covenant imposes certain restrictions on the resale of the New Home during the Qualified Residence Period. The Qualified Homebuyer ackno~ledges and understands that these restrictions shall be applicable to the New Home and to any resale of the New Home from the Delivery Date to the end of the Qualified Residence Period which is , 201 Dated: Initials of Qualified Homebuyer Section 3. Covenant of the Cualified Homebuyer to Maintain Affordability of the New Home During the Cualified Residence Period and Covenant Relating to Sale or Transfer of the New Home During the Oualified Residence Period to a Successor-In-Interest. SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 5 CDC 1999-19 (a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the New Home shall be used and, occupied by the Qualified Homebuyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or for another Lower-Income Household as a Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as provided in this Section 3 to verify that each proposed Successor-In-Interest of the Qualified Homebuyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of a Lower- Income Household (based upon the Adjusted Family Income of each household), and that the completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the "Notice of Agency ConcurrenceH as provided in Section 3 (d) . (b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any interest therein) to a Successor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least sixty (60) days prior to the date on which the Qualified Homebuyer proposes to transfer title in the New Home to a Successor-In-Interest, the Qualified Homebuyer shall send a written notice to the Agency as provided in Section 17 of the intention of the Qualified Homebuyer to sell the New Home to a Successor~In-Interest which includes the . following true and correct information: (i) name of the proposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); (ii) copies of State and federal income tax returns for the Successor-In-Interest for the calendar year preceding the year in which the notice of intention to sell the New Home is given to the Agency; (iii) resale price of the New Home payable by the Successor-In-Interest, including the terms of all purchase money mortgage financing to be assumed, SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 6 CDC 1999-19 provided or obtained by the Successor-In- Interest, escrow costs and charges,. realtor broker fees and all other resale costs or charges payable by either the Qualified Homebuyer or the Successor-In-Interest; (iv) name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Homebuyer to the Successor-In-Interest; (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such reference; and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c). (c) Within twenty (20) days following receipt of the notice of intention described in Section 3(b), the Agency shall provide the Qualified Homebuyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In- Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adjusted Family Income and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) has been provided to the Agency~ In the event that the Agency may request additional -iryformationrelatingto the. confirmation of the matters described in Section 3(b), the Qualified Homebuyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Home, the Agency shall deliver a written acknowledgment and approval of the resale of the New Home to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3(b) (iv) above, and thereafter the Successor-In-Interest may acquire the New Home subject to the satisfaction of the following conditions: (i) the recordation of the Notice of Agency Concurrence executed by the Successor-In-Interest and the Agency at the close of the resale escrow; SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 7 CDC 1999-19 (iil the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Homebuyer and the final escrow closing statement for the Successor-In-Interest; and (iii) the other conditions established by the Successor-In-Interest of the resale escrow as Qualified Homebuyer and shall have been satisfied. (e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants and agrees that during the Qualified Residence Period the New Home shall not be leased, subleased, or rented to any third person, except for a temporary period (not to exceed 12 months) in the event of an emergency or other unforseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Homebuyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event within not more than (60) days following the commencement of a temporary rental occupancy of the New Home by a third party, which notice shall set forth the grounds on which the Qualified Homebuyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. Section 4. Maintenance Condition of the New Home. The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that: (a) The exterior areas of the New Home whiCh are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the term of the Qualified Residence Period, there is an occurrence of an adverse condition on any area of the New Home which is subj ect to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Qualified Homebuyer in writing of the Maintenance Deficiency and give the Qualified Homebuyer thirty (30) days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiency" include without limitation the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property use restrictions: SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 8 CDC 1999-19 failure to properly maintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of wed and debris; parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on any other parts of the property which are not covered by a paved and impermeable surface; the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Home. In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Homebuyer ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has failed to comply with the provision of this Section 4(a). If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Home (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c). SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 9 CDC 1999-19 (b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the New Home shall be removed by the Qualified Homebuyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the New Home (exterior areas only) and such graffiti is visible from an adjacent or contiguous public right-of-way and thereafter such graffiti is not removed within 72 hours following the time of its application; then in such event and without notice to the Qualified Homebuyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Section 4(b) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4 (a) or Section 4 (b), including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or ,removal of graffiti and the collection of the costs of the Agency in connection with such action. In any legal proceeding for enforcing such a lien against the New Home, the prevailing path shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4, shall be a covenant running with the land for the Qualified Residence Period and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable law. Nothing in the foregoing provisions of this Section 4 shall be deemed to preclude the Qualified Homebuyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 10 COC 1999-19 Section 5. [RESERVED/NO TEXT] Section 6. [RESERVED/NO TEXT] Section 7. Foreclosure of Purchase Monev Mortgage Loan and Agency Right of First Refusal. (a) During the Qualified Residence Period the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Home at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period the Agency shall have the right of first refusal to purchase the New Home from the Qualified Homebuyer on the same terms which the Qualified Homebuyer may propose to offer the New Home for resale to a Success-In- Interest. The Agency must exercise such a right of first refusal within thirty (30) days following written notification of the intention of the Qualified Homebuyer to resell the New Home, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Homebuyer and close an escrow for the transfer of the New Home to the Agency within sixty (60) days following written notification of the intention of the Qualified Homebuyer to resell the New House. Section 8. Covenants to Run with the Land. The Participant, the Agency and the Qualified Homebuyer hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a common plan for the rehabilitation of affordable single family housing improvements within the territorial jurisdiction of the Agency and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Home and each Successor-In-Interest of the Qualified Homebuyer in the New Home for the term provided in Section 10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this ARR Covenant. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Home or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 11 CDC 1999-19 and restrictions are set forth in such contract, deed or other instrument. . Section 9. Burden and Benefit. The Participant, the Agency and the Qualified Homebuyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Homebuyer's legal interest in the New Home is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Homebuyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Home by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable single family housing development goals and objectives of the Agency and in order to make the New Home available for acquisition and occupancy by the Qualified Homebuyer. Section 10. Term. This ARR Covenant shall apply to the New Home and the Qualified Homebuyer and to each Successor-In-Interest as of the Delivery Date for the Qualified Residence Period -- e.g.: this ARR Covenant shall remain in full force and effect for ten (10) years after the Delivery Date. Any provision or section hereof, may be terminated after the Delivery Date upon agreement by the Agency and the Qualified Homebuyer (or the Successor-In- Interest in the New Home), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in i~s reasonable discretion will not adversely affect the affordable single family housing and development goals of the Agency. Section 11. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Homebuyer to honor or perform any material term or provision of this ARR Covenant shall constitute a breach under this Agreement; provided however, that if the Qualified Homebuyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days after the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Homebuyer written notice of breach specifying the alleged breach which if uncured by the Qualified Homebuyer within thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 12 CDC 1999-19 shall not constitute a waiver of any breach or event of default nor shall it change the time of breach or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 11. Except with respect to rights and remedies expressly declared to be exclusive in this ARR Covenant, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Homebuyer may remain incurred for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 as related to a Maintenance Deficiency at the New Home, upon the occurrence of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Qualified Homebuyer to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (ii)' by other action, at law or in or convenienE to enforce covenants and agreements Homebuyer to the Agency. equity as necessary the obligations, of the Qualified (b) No third party shall have any right or power to enforce any provision of this ARR Covenant on behalf of the Agency or to compel the Agency to enforce any provision of this ARR Covenant against the Qualified Homebuyer on the New Home. Section 12. Governing Law. This Section 33334.3 Covenant shall be governed by the laws of the State of California. Section 13. Amendment. This ARR Covenant may be amended after the Delivery Date only by a written instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as applicable) and by the Agency. The Participant shall have not any SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 13 CDC 1999-19 right or power to approve any such amendment to this ARR Covenant, and the execution by the Participant of any such amendment after the Delivery Date shall not be required. Section 14. Attornev's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this ARR Covenant or otherwise arising out of this ARR Covenant, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 15. Severability. If any provision of this ARR Covenant shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this ARR Covenant which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Section 16. Time is of the Essence. For each provision of this ARR Covenant which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 17. Notice. Any notice required to be given under this ARR Covenant shall be given by the Agency or by the Qualified Homebuyer, as applicable, by personal delivery or by First Class United States mail at the addresses specified below or at such other address.as may be specified in writing by the parties hereto: If to the Agency: I Executive Director Redevelopment Agency of the City of San Bernardino 201 North "En Street, Suite 301 San Bernardino, CA 92401 Phone: (909) 384-5081 If to the Qualified Homebuyer: Attn: Phone: Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personally delivered, when received SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 14 CDC 1999-19 by the Executive Director of the Agency or the Qualified Homebuyer, as applicable. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 15 CDC 1999-19 IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer and the Agency have caused this Covenant to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this ARR Covenant is authorized under Health and Safety Code Section 33334.3(g). QUALIFIED HOMEBUYER Dated: By: By: PARTICIPANT Dated: By: AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director [ALL SIGNATURES MUST BE NOTARIZED] Approved as to Form: By: Agency Counsel SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 16 CDC 1999-19 EXHIBIT "A" Legal Description of the New Home SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 17 CDC 1999-19 [address of Participant under the ARR Agreement] ) ) ) ) ) ) ) ) ) ) ) (Space above line reserved for use by Recorder) RECORDING REQUESTED BY Redevelopment Agency of the City of San Bernardino AND WHEN RECORDED MAIL PROPERTY TAX BILL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS [ARR Program: (Name of Grantee/Participant)] PART A THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS (the "Quitclaim Deed") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") in certain real property situated at , San Bernardino, California (the "Property") to , (the "Participant"), subject to the conununity redevelopment affordable single family housing conditions, covenants and restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the conununity redevelopment affordable single family housing conditions, covenants and restrictions of this Quitclaim Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 1 of 7 CDC 1999-19 (-- The Property--) on Official Records of the Office of San Bernardino County. file in the of the Recorder PART B The quitclaim of the Property by the Agency to the Participant is expressly subject to the satisfaction of the following community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain Acquisition, Rehabilitation, Resale Agreement dated (the "ARR Agreement") by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty-five (25) years commencing on the date of recordation of this Quitclaim Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated for occupancy only to a "person" or a "family" who is a "Qualified Homebuyer" for a term of the shorter period of either: (i) twenty-five (25) years from the date'of recordation ot this Quitciaim Deed; or (ii) the term, as provided in the ARR Agreement Covenant described in subparagraph 3, below. The words "Qualified Homebuyer" refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first-time homebuyer," as defined in Health and Safety Code Section 50068.5, and whose annual income during the twelve (12) months preceding the date of initial occupancy of the Property by the Qualified Homebuyer does not exceed the income qualification limits for "lower income households", as defined in Health and Safety Code Section 50079.5 (Statutes of 1979: Chapter 96). Health and Safety Code Section 50079.5 provides: "'Lower Income households' means persons and families whose income does not exceed the qualifying limits for lower income SBE0/0001/DOC/3513.1 6/15/99 1200 ct Page 2 of 7 CDC 1999-19 families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. As used in this section, 'area median income' means the median family income of a geographic area of the state." 3. As a condition precedent to any transfer, sale, conveyance, grant or other hypothecation by the Participant of the Property to a Qualified Homebuyer the "Acquisition, Rehabilitation Resale Affordability Use and Occupancy Covenant" (the "ARR Covenant"), substantially in the form attached hereto as Exhibit "A-1" or Exhibit "A-2," as applicable and as incorporated herein by this reference shall be fully executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The final form of the ARR Covenant shall be consistent wi th the terms and conditions of. the ARR Agreement as applicable to the Qualified Homeb.uyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the ARR Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the ARR Covenant shall be a separate community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and assign of the Qualified Homebuyer for the term as provided in the ARR Covenant. 4. Prior to the recordation of the ARR Covenant as provided in subparagraph 3 of PART B of this Quitclaim Deed, the Property shall not be offered for sale or sold to a Qualified Homebuyer for a sale price which exceeds more than Dollars ($ ) , exclusive of customary and reasonable "escrow" and sales SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 3 of 7 CDC 1999-19 transactional costs which may be normally allocated to a Qualified Homebuyer by an owner-builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of PART B of the Quitclaim Deed shall have no further force or effect upon the property after the date of the complete execution and recordation of the ARR Covenant. 5. The Property shall be subject to the following affordable housing redevelopment covenant in perpetuity and the text which appears in this Quitclaim Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enj oyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PART C During the term of subparagraph 2 of PART B, but prior to the recordation of a fully-executed copy of the ARR Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales and ancillary business activity on the Property associated with the improvement and sale by the Developer, pursuant to the ARR Agreement, of an affordable single family dwelling unit on the Property prior a Qualified Homebuyer. The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the ARR Covenant. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 4 of 7 CDC 1999-19 PART D The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an increase, improvement and preservation of the community I s supply of low- and moderate-income housing. The transfer of the Property by the Agency to the Developer for this purpose and the recordation of this Quitclaim Deed is authorized by Health and Safety Code Sections 33334.2 and 33334.3, and other applicable law and actions of the Agency, including without limitation, the ARR Agreement. PART E Upon the delivery of this Quitclaim Deed to the Participant, the community redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by either the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(f) (2) against the Participant and each successor in interest or assignee of the Participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 5 of 7 CDC 1999-19 THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized signatures of the Executive Director of the. Agency. AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic Dated: By: Executive Director Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] [NOTE: Exhibit "A-I" MAP Assistance) General Form of ARR Covenant (Agency Exhibit "A-2" Program) ] General Form of ARR Covenant (HOME SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 6 of 7 CDC 1999-19 ACCEPTANCE OF QUITCLAIM DEED AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT (the "Participant"), hereby accepts the delivery of the instrument identified above as the "Quitclaim Deed of a Public Agency and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Quitclaim Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San Bernardinq, subject to the conditions, covenants and restrictions contained in the Quitclaim Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property to be improved and rehabilitated as set forth in the ARR Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Quitclaim Deed which touch and concern the Property and are community redevelopment covenants which run with the land. PARTICIP~T Dated: By Its: By: Its [NOTARY JURAT ATTACHED] SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 7 of 7 CDC 1999-19 HUD UNIT PURCHASE AND SALE AGREEMENT Property Address: THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is dated for identification purposes only, as of , 199_, and is made and entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and (the "Participant"), with reference to the following: RECITALS A. WHEREAS, the Agency and the Secretary of Housing and Urban Development (the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition Program a copy of which is attached hereto as Exhibit "A" (the "HUD Contract") regarding sale by the Secretary to the Agency of that certain property commonly known as San Bernardino, California (the "HUD Unit"). A legal description of the HUD Unit is attached hereto as Exhibit "B"; and B. WHEREAS, subject to the terms and conditions of that certain Acquisition, Rehabilitation and Resale (ARR) Agreement dated 1999 (the "ARR Agreement"), by and between the Participant and the Agency and this Agreement, Agency desires to sell the HUD Unit to the Participant and the Participant desires to purchase the HUD Unit from the Agency at the close of the "HUD Escrow" as set forth herein. NOW( THEREFORE, IN CONSIDERATION OF TKE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS: 1. Warrantv of Authority by Participant. The Participant warrants that it is a under the laws of the State of California, and is authorized to execute this Agreement and all of the documents and instruments contemplated hereby, including, without limitation, supplemental escrow instructions and the Acceptance of Agency Quitclaim Deed; and that this transaction has been approved by [resolution of its board of directors]. A certified copy of that [resolution] which remains in effect, will be delivered to Agency before the close of the HUD Escrow as set forth herein. SBEO/0001/DOC/3515 6/15/99 245 ct 1 CDC 1999-19 2. Agreement to Sell and to Purchase. Subject to the terms and conditions of this Agreement, the Agency agrees to sell and the PartLcipant agrees to purchase the HUD Unit. 3. Purchase Price. The "Purchase Price" for the HUD Unit is the same sum in cash or immediately available funds in United States Currency as the discounted purchase price which the Agency has agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit. The Purchaser Price shall be payable by the Participant's delivery of the full amount to the escrow holder in cash or by wire transfer of immediately available funds at least one(l) business day before close of the HUD Escrow or by cashier's check during business hours at least three(3) business days before the close the HUD Escrow. 4. HUD Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees to pay all of the costs of the escrow holder in the HUD Escrow including all amounts charged to the account of the Secretary and the Agency. The escrow holder is hereby instructed to collect such costs and charges from the Participant at the close of the HUD Escrow. 5. Conditions for the Benefit of the Agency. The obligation of the Agency to perform this Agreement is subject to the satisfaction of the following conditions, which are for the Agency's benefit only: (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen(15) days after the date hereof; (b) . 'that the Secretary perform under the HUD Contract ti tle of the HUD Unit actually be transferred from HUD Agency within forty-five(45) days after the date hereof; and the , to the (c) the Agency shall have received, satisfactory to the Executive Director, a the insurance required pursuant to Section in form and substance certificate evidencing 16 of this Agreement; (d) that the Participant has duly execute and deliver to the escrow holder, in recordable form the Acceptance of the Participant of the Agency Quitclaim Deed. (e) that the Participant not otherwise be in default under its other obligations to the Agency under the ARR Agreement. SBEO/0001/DOC/3515 6/15/99 245 ct 2 CDC 1999-19 The conditions set forth above are for the Agency's benefit only and the Executive Director of the Agency (the "Executive Director") may waive all or any part of such rights by written notice to the Participant and escrow holder. If any of said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Executive Director, the Agency may thereafter terminate this Agreement without any liability on the part of the Agency by giving written notice of termination to the escrow holder, with a copy to the Participant. Escrow holder shall thereupon, without further consent from the Participant, return to each party the documents, if any, deposited by them. 6. Conditions for Participant's Participant to perform this satisfaction of the following Participant's benefit only: Benefit. Agreement conditions, The obligation of is subj ect to which are for the the the (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen (15) days after the date hereof; and (b) HUD Unit after the that the Secretary actually transfer date hereof. perform under the HUD Contract and the from HUD within forty-five (45) days The conditions set forth above are for the Participant's benefit only and the Participant may waive all or any part of such rights by written notice to the Agency and the escrow holder. If any said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Participant, subject to the approval of the Secretary and the Agency, the Participant may thereafter terminate this Agreement without any liability on the part of the Participant by giving written notice of termination to the escrow holder, with a copy to the Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each party the documents, if any, deposited by them. 7. Escrow. The transfer of the HUD Unit to the Participant shall be consummated through an escrow established with the escrow agent engaged by the Secretary to handle the transfer of the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a schedule coordinated with the closing or the transfer of the HUD Unit between the Secretary and the Agency under the HUD Contract. This Agreement shall constitute the escrow instructions to the escrow holder of the Participant and the Agency with respect to the HUD Unit. The Agency and the Participant shall execute such SBEO/0001/DOC/3515 6/15/99 245 ct 3 CDC 1999-19 additional escrow instructions as may be reasonably required by the escrow holder. 8. Term of Escrow. Escrow shall close concurrently with the close of escrow under the HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the County of San Bernardino, California. 9. Condition of Title. The Agency shall convey to the Participant by quitclaim deed all of the right, title and interest in the HUD Unit which the Agency receives from the Secretary under the HUD Contract. The form of the Agency Quitclaim Deed is attached hereto as Exhibit "c" and incorporated herein by this reference. 10. Ti tle Insurance. The Agency shall not be responsible for providing any title insurance to the Participant in connection with the transfer of title in the HUD Unit to the Participant. Any title insurance desired by the Participant shall be ordered and paid for by the Participant at its sole cost and expense. 11. Prorations. All assessments, including improvement assessments which are available for payment without interest or penalty for advance payment, taxes, rent, and ground rent, if any, shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently with the escrow under the HUD Contract, through which escrow such items will be prorated between the Secretary and the Agency, the parties acknowledge and agree that the Participant shall be charged for such prorations in precisely the same amount as the Agency is charged under the HUD Contract. 12. Escrow Closing Costs. The Participant shall pay all escrow closing costs of both parties, including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the Participant shall pay all closing costs and expenses charged to the Agency in the escrow by which HUD transfers the HUD Unit to the Participant. 13. Closing. At the Close of Escrow, (a) the Agency shall deliver to the Participant through escrow a the Agency Quitclaim Deed conveying the HUD Unit to the Participant, (b) the Participant shall deliver to the Agency through escrow the acceptance of the Agency Quitclaim Deed, and (c) the escrow holder shall collect and pay the SBEO/0001/DOC/3515 6/15/99 245 ct 4 CDC 1999-19 sums indicated for the transfer of the HUD Unit under the HUD Contract and this Agreement and deliver such other documents to the parties in accordance with the instructions of each of them. At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed to be recorded in the Official Records of the County of San Bernardino, California. 14. Condition of the HUD Unit. The Agency makes no representation or warranty to the Participant or to any third party concerning the condition of the HUD Unit, including, without limitation, mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and the Agency will make no repairs to the HUD Unit either before or after execution of this Agreement. The Participant understands that the Agency does not guarantee or warrant that the HUD Unit is free of visible or hidden structural defect, termite damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or otherwise usable. Participant acknowledges responsibility for taking such action and conducting such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit in the same condition delivered to the Agency by the Secretary, in an "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS" condition. 15. Possession: Repairs. The Participant may not perform repairs nor take possession of the HUD Unit until the escrow is closed. At the close of the HUD Escrow, the Participant may take possession of the HUD Unit and promptly commence the work of rehabilitation as ~equired for theHUD Unit under the ARR Agreement. 16. Insurance. Prior to. the Close of Escrow, the Participant shall obtain and shall thereafter maintain in full force and effect at all times a broad-form comprehensive general liability policy with a limit of not less than $1,000,000.00. Such insurance shall provide for a 30-day notice to the Agency before cancellation of the policy and shall name the Agency as an additional insured as to claims arising out of the work to be performed on the HUD Unit following the Close of Escrow pursuant to the ARR Agreement. 17. Assignment. The Participant and the Agency each agree that this Agreement shall be binding upon their respective, heirs, executors, administrators, successors or assigns and is not assignable by the Participant unless the written consent of the Executive Director is first obtained, which consent the Executive Director may withhold in his or her sole ,and absolute discretion. SBEO/0001/DOC/3515 6/15/99 245 ct 5 CDC 1999-19 18. Notices. All notices, demands and requests which may be given by either party to the other or to the escrow holder shall be in writing and shall be deemed to be given upon personal delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt requested, postage prepaid, addressed to the party to be notified at the address following the party's signature or if addressed to the escrow holder, at the address set forth in the supplemental escrow instruments signed by the parties. Either party may designate by written notice to the other party in the manner set forth in this Agreement another address for notice. 19. Miscellaneous Provisions. 19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to enforce, any provision of this Agreement shall not be a waiver of any further breach of such provision hereof. The waiver by either or both parties of the time for performing an act shall not be a waiver of the time for performing any other act or acts required hereunder. 19.2 Modifications. or any part hereof shall each of the parties. No change or addition to this Agreement be valid unless in writing and signed by 19.3 Governing Law. California law. This Agreement shall be governed by 19.4 Headings. The headings in this Agreement are fbr convenience only and shall not be used to interpret this Agreem~nt. 19.5. Further Acts. Each party agrees to take such further action and to execute and deliver such further documents as may be necessary to carry out the purposes of the ARR Agreement with respect to the HUD Unit and this Agreement. 19.6 Attorneys' Fees. If either party incurs attorneys' fees to enforce this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees as set by the court from the other party. 19.7 No Real Estate Brokers Commission Payable By the Agency. The Agency shall not be responsible for the payment of any real estate brokers commission or finders fee in connection with the escrow or the transfer of the HUD Unit to the Participant. SBEO/0001/DOC/3515 6/15/99 245 ct 6 CDC 1999-19 19.8 Time. Agree~ent. Time is of the essence with respect to this IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director PARTICIPANT By: Its: By: Its: SBEO/0001/DOC/3515 6/15/99 245 ct 7 CDe 1999-19 EXHIBIT "E" 1999 ARR AGREEMENT "ARR Rehabilitation Standards for Each HUD Units" .' CDe 1999-19 ARR REHABILITATION STANDARDS L GENERAL DESCRIPTION The Participant will acquire HUD Units and cause the rehabilitation and resale of the housing thereon. II. REHABILITATION STANDARDS All of the improvements to be-provided by the Participant on the HUD Units constitute the "Project". The Project shall be developed in accordance with applicable building and safety codes. III. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Project Site, and the suitability of the Project Site. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Project Site entirely suitable for such development. Participant has undertaken all investigation of the Project Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the rehabilitation of the project. IV. AMENITIES EachHUD Unit shall have full amenities and shall include the following: front yard landscaping and automatic sprinklers, side and rear yard fencing. . V. REHABILITATION STANDARDS Rehabilitation Standards shall include Section 8 Housing Quality Standard (HQS) Minimums and are not limited to: 1. Interior work to make structures more livable, such as, plastering, painting, new subflooring and tile work. 2. Repair, restoration or replacement of important parts of structures, such as, heating systems, plumbing systems, electrical components, kitchen appliances (stoves, refrigerator). 3. Installation of water/energy conservation devices. 4. Installation of security devices. 1 \\EDA_SAN BERDO\PUBllC\Forms\ARR Prog1Ul\ARR Rehabilitation Standards.do<: CDC 1999-19 5. Wheelchair ramps, kitchen and/or bathroom modifications related to a disability of a household member. The following list contains some of the typical repair items and replacement activities: 6. Replacement of plumbing fixtures. 7. Addition of electrical outlets and/or wiring. 8. Insulation. 9. Replacement of roof. 10. Repair and/or enlargement of inadequate kitchen and/or bathroom. 11. Repair/replacement of furnaces and air conditioners. 12. Plaster and dry rot repair. 13. Repair/replacement of porches, steps, fences and walkways. 14. Termite, rodent or vermin fumigation. 15. Addition of closets or other minor built-ins. 16. Chimney repair/replacement. 17. Repair/replacement of railing. 18. Repair/replacement of windows and doors. 19. New ceilings. 20. Weather stripping for windows and doors. 21. Repair/replacement/addition of gutters and down spouts. 22. Repair/replacement of exterior trim. 23. Repair/replacement of stucco (wrap & stucco of wood siding structures). 24. Repair of foundation, structural repair. 25. Replacement of existing toilets, tub and shower, lavatories (cabinets). 26. Carpeting and other flooring. All other items are optional, per agreement, between contractor and buyer. 2 \\EDA_SAN BEROO\PUBLlC\Forms\ARR Program\ARR Rehabilitation Standards.doc CDC 1999-19 EXHIBIT "F" 1999 ARR AGREEMENT "HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents" CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM (MAP) ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM Date: Property Address: Borrower( s): MAP Amount: FIRST TIME HOME BUYER PROGRAM - MAP CHECKLIST Stept-ForReseryati()Qpf FundsLett~rbyE[)A' Latest Tax Return (1 040's) and 2 Current Pay Stubs 0 Application Affidavit - Signed by Borrower 0 Verification for Applicant Eligibility (Completed by Lender) 0 Preliminary Escrow I nstructions 0 .' . .~tip!i~8;;F()..,.E.DA..t()'.'B~(Oie$t..fot..MAPChe~.I(.'fR~ql.ie.$t..fp...._F Ul)c:Is...L~tteJ'.;'1t".~"._.;j'~~1~;';;2~;;;.;;,;,'. h<i~ , t~~;.,- Complete Demand for Funds Letter 0 Submit MAP Docs (Loan Agreement, Deed of Trust, Promissory Note, CC & Rs) 0 Seifer (ARR Contractor) must calf EDA Inspector for a Final Inspection (10 days prior to close of escrow) Step:3t.:.F,orI:DAt9Rele;ise MAP-_'Che(:.k.to'I:$(:'J'()WA~'i-.;;,"i#'-;:'i..; C>it~~4:~~~);~ \ , -, ,-'~~,:ni~+k~i:f~i.:~.;:::",::: ~, , - Final Escrow Documents (I neludes Amendments) 0 First Time Home Buyers Class Certificate 0 Lender Representative: \EDo\..SAN BEROOPUBUC\Fom'IS~R\MAP.cheek Ust.doc ll2I1&/OllMP CDC 1999-19 City of San Bernardino '" ECONOMIC DEVELOPMENT AGENCY VERIFICATION FOR APPLICANT ELIGIBILITY . Redevelopment . Community Development . Housing . Business: - Recruitment - Retention - Revitalization . Main Street, tnc. ACQUISITION, REHABILITATION AND RESALE PROGRAM (ARR) AND MORTGAGE ASSISTANCE PROGRAM (MAP) Phone Number Household Size # of Minor Children Zip Code Name of Applicant Current Address Property Address to be Purchased City/State San Bernardino, California Name of Lender Contact Person Loan Number Phone Number Fax Number "'Annual & Monthly Income (See Below) $ fY ear $ /Month Income used by the lender to qualify for the loan, if different than annual income of application. $ fY ear $ /Month Monthly Consumer Debt $ /Month Max Loan Amount $ Principal & Interest $ /Month Sales Price $ Est. Property Taxes $ /Month Buyer Down $ ($500 Min.) Est. Insurance $ /Month Map Amount $ Mort. Ins (If Applicable) $ /Month TYPE OF LOAN OFNMA OFHA n Other Total PIT! $ /Month . Debt-to-Income Ratios as Calculated by Lender: Ho~mgCom % Total Debt % Terms of Loan Interest Rate # of Years o Fixed Note: Variable Loans are Not Permitted. Check Applicable 50% or less 0 5 1% - 80% 0 81%-115%0 *Note: 11/ order to qualify for tire MAP your iI/come may I/ot exceed tire followil/g: Lender/Escrow Representative - Signature Date Signature of Applicant Date Signature of Applicant Date 201 North E Street, Suite 301' San Bernardino, California 92401-1507' (909) 384-5081' FAX (909) 888-9413 CDC 1999-19 HOUSEHOLD SIZE 19991ncome Level I 2 3 4 5 6 7 8 Very Low (50%) $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Lower (80%)* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Median (100"10) $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 Moderate (120%)** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 * The maximum income level for MAP assistance under federal HOME. Under MAP HOME - property value at the time of sales must not exceed 95% of the County's median purchase price. *. The maximum income level for MAP assistance under State Redevelopment Law. Under MAP State Redevelopment Law the affordable housing costs apply (Complete Housing Affordability Worksheet) PLEASE CHECK THE FOLLOWING o Sr. Citizen(s) - 62 or Older o Black o American Indian o Female Head of Household o Hispanic o White o Disabled One or More o Other o Asian or Pacific Islander ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGIBILITY FOR MAP IS THE SOLE RESPONSIBILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. ANY QUESTIONS CALL (909) 384-5081. P:'Eornu\Mortpgt Asststa.ncc\MAP-Applicant Eligibility.doc (Revised 7199) CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM ACQUISITION/REHABILITATION & RESALE PROGRAM APPLICATION AFFIDAVIT NOTE: ALL BLANKS ON THIS FORM MUST BE COMPLETED! THERE ARE IMPORT ANT LEGAL CONSEQUENCES TO THIS AFFIDAVIT: READ IT CAREFULLY BEFORE SIGNING. 1. I (we) the undersigned, as part of my (our) application for Acquisition, Rehab, Resale (A.R.R.) and Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of San Bernardino, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we), being first duly sworn, state the following: I (we) certify that the following are: a. My (our) legal Name(s): b. Social Security # c. Current residences: d. Telephone # The Unit (the "Residence") being purchased is a single-family home located in the City of San Bernardino at the following address: 2. I (we) certify that my (our) current gross annual household income, including income of all adult persons intending to occupy the Residence, is $ . I (we) understand that I (we) am (are) not eligible fora ARR- MAP unless my (our) gross annual household income does not exceed 80% of the median income for San Bernardino, and as specifically set forth in the Verification of Applicant Eligibility form. 3. I (we) certify that the Residence will be occupied and used as my (our) principal place of residence within forty-five (45) days after the date the ARR-MAP loan has closed. I (we) certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not more than fifteen percent (15) of the area of the Residence will be used in a trade or business. I (we) certify that I (we) will notify the Agency in writing if the Residence ceases to be my (our) principal Residence. Failure to occupy the Residence will result in the Agency accelerating the repayment of the Agency ARR-MAP Loan. 4. If the loan application is for a loan on a newly constructed home, I (we) certify that the Residence has not and will not be occupied prior to loan commitment from the Agency. CDC 1999-19 5. 1 (we) understand that 1 (we) am (are) not eligible for a ARR-MAP from the Agency under this program if! (we) individually or together had a present ownership interest in a principal residence within three (3) years prior to date of application. 1 (we) also understand that 1 (we) cannot have an ownership interest in a principal residence between the date of application and closing. For this purpose, a principal residence includes a single family residence, condominium, share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law), or occupancy in a multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by any means, whether outright or partial, including property subject to mortgage or other security interest. An ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy by the entirety, or a life estate interest. 1 (we) certify that 1 (we) have listed below all places of residence, whether owned or not, for a three-year period from date of application. 6. Previous Address: (Past Three Years) Owned Rented Other Beginning/Ending Date of Residencv From: End: Address of Residence All answers of "Other" must be fully explained; use additional paper if necessary. 7. Name, address and telephone of the owner/landlord who can verify each residence listed above which was not owned by the applicant. Landlord Name Address Telephone No. 8. I (we) certify that the total purchase price of the Residence and land, including all construction items, all commissions, all builder's fees, hook-up and tap-in fees, permits, architectural fees, all site improvements, discount points paid by the seller, work credit, subcontracted items, or construction loan interest, but excluding any closing costs and other permanent financing charges will not exceed the purchase price limitation applicable to the Residence below: Maximum Sales Price (Single Family Unit) $150,000. 9. 1 (we) further certify that no other agreement, either verbal or written is presently contemplated for the completion of the purchase of the Residence. 10. 1 (we) further certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified mortgage bond or a qualified veteran's mortgage bond. No person related to me (as defined in CDC 1999-19 applicable federal or state laws and regulations) has or is expected to have an interest as a creditor in the Mortgage loan being acquired for the Residence. 11. I (we) understand and agree that if a ARR-MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 12. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the ARR-MAP guidelines. 13. I (we) understand that the decision to make a first mortgage loari is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan. 14. I (we) cannot close my (our) loan prior to receiving a ARR-MAP loan approval. 15. I (we) acknowledge and understand that this Application Affidavit will be relied upon for the purpose of determining my (our) eligibility for a ARR-MAP. (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me (us) in connection with an application for a ARR-MAP may constitute a federal violation punishable by a fine and/or denial of my (our) application for a ARR-MAP loan. Ifa ARR- MAP loan commitment has been issued prior to discovery of the false statement, immediate cancellation of the ARR-MAP will occur which will be in addition to any criminal penalty imposed by law. Dated: Signature of Applicant(s) Dated: Signature of Applicant(s) P:\Fonns\M.ongage Assistance\MAP-Application Affidavit.doc CDC 1999-19 FIRST TIME HOME BUYER MORTGAGE ASSISTANCE PROGRAM DISCLOSURE STATEMENT I/We (Participant) understand and agree that the provision of financial assistance from the Redevelopment Agency of the City of San Bernardino (the "Agency") under the First Time Home Buyer Mortgage Assistance Program (the "Program") is conditioned on a number of factors, including, but not limited to (all terms not otherwise defined herein shall have the meaning provided in the Loan Agreement by and between the Agency and the Participant): . IfWe must find a single-family detached home within the City of San Bernardino which I/We can afford (the "Property"). . I/We must qualify for a home loan from an institutional lender acceptable to the Agency. . I/We must qualify for assistance under the guidelines of the Program. . I/We must not have owned any interest in any residential real property during the past three (3) years. I/W e further understand and agree that: IfWe will be responsible for repaying the amount of the Note. The Note will be due and payable upon: (i) the sale of the Property, (ii) the transfer of any interest in the Property, (iii) refinancing of any lien or encumbrance to which the Agency Deed of Trust is subordinate, or (iv) I/We are no longer an occupant of the Property or are in default of any obligation under the Loan Agreement. . I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the Agreement is signed by sending a notice of my/our decision to rescind or cancel the Agency Loan to: Redevelopment Agency of the City of San Bernardino Housing Division 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 Attn: Housing Division Manager . An appraisal fee may be payable upon the following: (i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) I/We no longer occupy the Property, or (iv) I/We are/am in default of any provision of the Loan Agreement. . The Agency shall not be held responsible for any costs associated with the home I/We 1 \\EDA_SAN BERDOIPUBLlaFonnslMortgage Assislancel2-MAP-DlSCLOSURE.doc CDC 1999-19 purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of the Property. . The Agency cannot ensure that information provided by or on my/our behalf will be confidential. . The Agency shall not be responsible for the selection of a home, the selection of a lender providing funds assisting in the purchase of the home, provide information concerning other public or private sources ofloans, or the competitiveness of the terms of the Program. IIWe assume all responsibility for determining whether I/We will inform myself/ourselves as to the availability and terms of other public or private loans. . The Agency shall not be charged with the knowledge of the contents of the ocuments of the lender. DATED 19 DATED 19 DATED 19 2 \\EDA_ SAN BERDOIPUBLIClFormslMortgage Assistancel2-MAP-DlSCLOSURE.doc CDC 1999-19 12 of 8 ACQUISITION, REHABILITATION RESALE (ARR) AGREEMENT By and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO And AFgQMf~Y~~AO~,l~~~ ACQl1tsrrlCYt{R.t:HA~jrITATfl)'N'KbSALJr (ARR) ("ARR Participant") CDC 1999-19 TABLE OF CONTENTS I. [100] SUBJECT OF AGREEMENT .................................................................................. 2 A. [101] Purpose of Agreement......................................................................................... 2 B. [102] The HUD Units ................................................................................................... 3 C. [103] Parties to the Agreement ..................................................................................... 3 1. [104] The Agency ................................................................................................... 3 2. [105] The Participant .............................................................................................. 3 3. [106] Prohibition Against Change in Ownership, Management and Control of the Participant............................................................................................................... 4 4. [107] Benefits of Project............................................................................. ............ 4 II. [200] AGENCY ASSISTANCE.........................................................................................4 A. [201] The Project ..........................................................................................................4 B. [202] Agency Assistance ..............................................................................................5 C. [203] Term of Agreement ............................................................................................. 5 D. [204] Participant Assistance ......................................................................................... 5 E. [205] HOD Escrow .......................................................................................................7 F. [206] Affordable Housing Cost .................................................................................... 7 III. [300] REHABILITATIONIDISPOSITION OF THE HUD UNITS .................................. 7 A. [301] Rehabilitation by Participant............................................................................... 7 1. [302] Cost of Rehabilitation.................................................................................... 8 2. [303] Bodily Injury and Property Damage Insurance............................................. 8 3. [304] Rights of Access............................................................................................9 4. [305] Local, State and Federal Laws ...................................................................... 9 5. [306] Anti-Discrimination During Rehabilitation .................................................. 9 B. [307] Taxes, Assessments, Encumbrances and Liens................................................... 9 C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit............................... 9 CDC 1999-19 D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders.................... 10 [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation.................................................................................................... 10 E. [311] Right of Agency to Satisfy Other Liens on the Project..................................... 10 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORD ABILITY COVENANTS ......... 11 A. [401] Uses - Covenants Running with the Land......................................................... 11 B. [402] Maintenance of the HUD Units......................................................................... 11 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation.......... .................. ....... ....... ........ .............. ............. 13 V. [500] GENERAL PROVISIONS...................................................................................... 13 1. [501] Termination and Breach.................................................................................... 13 2. [502] Notice ................................................................................................................ 14 3. [503] Conflicts ofInterest; Nonliability ..................................................................... 14 4. [504] Inspection of Books, Records and Reports ....................................................... 14 5. [505] Indemnification ................................................................................................ 15 VI. [600] SPECIAL PROVISIONS ........................................................................................ 15 1. [601] Submission of Documents to Agency for Approval......................................... 15 2. [602] Successors in Interest ........................................................................................ 15 VII. [700] ENTIRE AGREEMENT, WAIVERS ..................................................................... 15 VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCy........................... 16 [801] Time for Acceptance ............................................................................................... 16 EXHIBIT A - Map of ARR Zone EXHIBIT B - Current Household Income Listings For Qualified Homebuyers EXHIBIT C - ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant EXHIBIT D - HUD Escrow Documents (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents EXHIBIT E - ARR Rehabilitation Standards for Each HUD Unit EXHIBIT F - HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents CDC 1999-19 ACQUISITION. REHABILITATION. & RESALE (ARR) PARTICIPATION AGREEMENT THIS AGREEMENT(the "Agreement") this 21st day of June, 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and AFCOM Park Village Partners (the "Participant"). Agency and Participant hereby agree as follows: RECITALS WHEREAS, Agency is a California Redevelopment Agency engaged in carrying out its public purposes, including, without limitation, increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City"); and WHEREAS, the U.S. Department of Housing & Urban Development (HUD) has designated that certain area within the City shown on the map attached hereto as Exhibit "A" as the Acquisition, Rehabilitation and Resale (ARR) Revitalization Zone (the "Zone"), and has granted the City exclusivity to purchase directly from HUD, certain single family dwelling units owned by HUD REO's (the "HUD Units") at a discount off the As Is Value of each such HUD Unit (the "ARR Program") which the Agency as administrator for the City under the ARR Program, shall concurrently transfer title to the HUD Unit to the Participant for rehabilitation and resale pursuant to the terms and conditions of this Agreement; and WHEREAS, the Agency has also been designated by the Mayor and Common Council as the administrator of the HOME Program (the National Affordable Housing Act of 1990) on behalf of the City, with specific intent to expand the supply of decent, safe, sanitary and affordable housing, within a City's jurisdiction; and WHEREAS, the Agency may use either federal HOME Program funds or State Redevelopment low and moderate income funds to financially assist qualified first-time homebuyers (herein "Qualified Homebuyer") in the acquisition of HUD Units purchased directly from the Participant; provided however that the value of the HUD Unit to be acquired by a Qualified Homebuyer for which the Agency may provide purchase money mortgage assistance under either the HOME Program or under the other affordable housing assistance programs of the Agency (herein "MAP Program") must have a value that does not exceed 95% of the area median purchase price; and WHEREAS, with respect to the HUD Units, Agency desires to implement the ARR Program pursuant to which: a. Agency would buy one or more HUD Units directly from HUD on condition that the Participant purchases each such HUD Unit from the Agency at the discounted price which HUD offers to the Agency; and 1 CDC 1999-19 " b. The Participant shall promptly rehabilitate the HUD Unit in accordance with rehabilitation standards set forth herein, and thereupon sell the HOD Unit, to an eligible low or moderate income buyer (e.g., a Qualified Homebuyer) at affordable housing costs pursuant to State or Federal requirements, depending on the source of funding (i.e., if Qualified Homebuyer uses HOME funds their income shall not exceed 80% of median income and State Redevelopment Low/Moderate Income Funds shall not exceed 120% of median income); and c. Prior to purchasing a HUD Unit from Agency, Participant shall provide satisfactory evidence to the Agency of all financing which shall include all costs associated with the acquisition, rehabilitation and disposition of the HUD Unit by the Participant. Based on receipt of such evidence of financing, the Agency shall accept or reject any offer received from the Participant to acquire a HUD Unit. The Participant shall complete the steps noted in Exhibit "C", attached hereto and incorporated herein by reference with respect to its acquisition and disposition of each HUD Unit to a Qualified Homebuyer; and d. If the Agency accepts any offer from Participant to purchase a HUD Unit, the Agency and Participant will open escrows (the "HUD Escrow") which shall close concurrently such that the escrow by which HUD shall transfer a HUD Unit to the Agency shall close concurrently with the escrow through which the Agency shall transfer that HUD Unit to the Participant; and e. Promptly after the closing of the HUD Escrow, the Participant will rehabilitate the HUD Unit within the timeframe herein, and sell it at affordable costs (the "Affordable Housing Costs") to a person or family of low or moderate income for owner occupancy purposes at the close of an escrow by and between the Participant and the Qualified Homebuyer (the "New Home Escrow"). The maximum income criteria applicable to a Qualified Homebuyer will be based on the type of financial assistance, if any, which the Agency provides to the respective Qualified Homebuyer at the close of a New Home Escrow (i.e., State Redevelopment Low/Moderate Income Funds up to 120% of median income or HOME Funds up to 80% of median income). The current 1999 Income Limits are noted in Exhibit "B". WHEREAS, Participant is a well established housing provider that has the experience, qualifications and desires to participate in the above described ARR Program. NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, Agency and Participant agree as follows: I. [l00] SUBJECT OF AGREEMENT A. [101] Purpose of Agreement The purpose of this Agreement is to effectuate various redevelopment plans for the City of San Bernardino (the "City"), by providing for Agency assistance to Participant in connection with 2 CDC 1999-19 the acquisition, rehabilitation and disposition of the HUD Units hereinafter set forth. The acquisition, rehabilitation and resale of the HOO Units pursuant to this Agreement is in the vital and best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting on behalf of the Agency, has determined that the acquisition, rehabilitation, resale and uses contemplated by this Agreement will benefit the low-and moderate- income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Program and the goals and objectives of the affordable housing programs of the Agency. B. [102] The HUD Units Each HUD Unit shall be located within the Zone and shall be designated from time to time by the Agency. Each of the HUD Units shall be pre-approved by the Agency and identified on a list in writing, as available for transfer to the Participant subject to the terms of this Agreement. No HUD Unit shall be transferred to the Participant unless the Participant has submitted a timely and complete acceptance to purchase such HUD Unit to the Agency, as set forth herein. It is the express intent of the parties hereto that the Participant will attempt to acquire those HUD Units within the Zone which evidence the highest degrees of blight, are most in need of redevelopment, and are financially feasible. The Agency's purchase approval of each HUD Unit will be based upon compliance with this intent. C. [103] Parties to the Agreement 1. [104] The Agencv The Agency is a public body, corporate and politic, exerclSlng governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et sea.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [105] The Participant The Participant is licensed to do business in the State of California. The principal office and mailing address of the Participant for purposes of this Agreement is: 3 CDC 1999-19 3. [106] Prohibition Against Change in Ownership. Management and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure for the benefit of the Agency. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 106 shall terminate with respect to each HUD Unit at the close of the New Home Escrow for that particular HUD Unit. Nothing in this Section 106 shall act to restrict the sale of rehabilitated HUD Units to Qualified Homebuyers if such sale is otherwise in compliance with the terms of this Agreement. 4. [107] Benefits ofProiect The Agency has determined that the purchase, rehabilitation and sale of HUD Units in accordance with this Agreement will eliminate blight, provide needed low- and moderate-income housing to the various project areas of the Agency, as well as the City and also increase homeownership opportunities for low- to moderate income households thereby stabilizing the community and decreasing rental housing in the City. II. [200] AGENCY ASSISTANCE A. [201] The Proiect The Agency agrees that with regard to any HUD Unit that it has approved in writing, and which the Participant has agreed to purchase as evidenced by the completed form of a "HUD Unit Purchase Agreement" in the form included in Exhibit "D", that the Agency shall, subject to the terms and conditions of this Agreement, acquire the HUD Unit from HUD and shall thereafter immediately transfer title to the Participant through the HUD Escrow. 4 CDC 1999-19 The Project, and specifically the Agency's obligation to acquire any HUD Unit, shall only arise to the extent funds are available from the Participant (or the "Participant's Lender" as hereinafter defined), to provide for the acquisition, rehabilitation and resale of the HUD Unit by the Participant at the close of the HUD Escrow. Moreover, the Agency shall only offer to transfer HUD Units to the Participant to the extent that the Agency, in its sole discretion, deems that the purchase price, associated rehabilitation and disposition costs are fair, equitable, comparable and that the Participant has funds sufficient to close the HUD Escrow and thereafter to complete the rehabilitation of the HUD Unit. B. [202] Agencv Assistance In order to assist in the implementation of the Project and marketability of the Project, the Agency agrees to provide certain Agency assistance (the "Agency Assistance") as follows: (i) provide for the concurrent transfer of each HUD Unit which the Participant may agree to acquire as evidenced by a completed HUD Unit Purchase Agreement; provided however that purchase price for each HUD Unit and all escrow costs in connection with the HUD Escrow for that particular HUD Unit shall be payable solely by the Participant; and . (ii) in addition to acquiring and thereafter immediately transferring title to any given HUD Unit to the Participant, the Agency may provide on a first come-first served basis to any Qualified Homebuyer certain down payment and closing costs, not to exceed ten percent (10%) of the Participant's sales price of the HUD Unit being sold, from either available funds of the Agency under the HOME Program or the Agency MAP Program, as applicable. c. [203] Term of Agreement The term of the Agreement shall be one (1) year from the date of this Agreement and ending June 30, 2000, except as set forth in Section 501. The Executive Director of the Agency (the "Director") shall have the option to renew this Agreement for an additional one (1) year period provided Participant is in compliance with the provisions of this Agreement. D. [204] Participant Assistance The Participant will select HUD Units based upon a list of available HUD Units prepared from time to time by the Agency. The Participant shall be solely responsible for obtaining all information in connection with the proposed acquisition and rehabilitation of each HUD Unit. Participant will take all action necessary to ensure the availability of funding for the acquisition, rehabilitation and resale of each HUD Unit prior to submitting any offer to purchase to the Agency and shall provide evidence to the Agency of such financing at the time it delivers a completed HUD Unit Purchase Agreement to the Agency (see Exhibit "D"). Participant will be responsible for the preparation and submission of all necessary paperwork required in connection with the acquisition of each HUD Unit (i.e., all of the HUD Escrow documents as assembled in Exhibit "D") and all other necessary documentation required for the close of escrow for any HUD Unit to be purchased by Participant from the Agency. Participant shall have not more than seven (7) days from receipt of the HUD listing from the Agency to select any HUD Unit for purchase and return 5 CDe 1999-19 the HUD Unit purchase Agreement for such HUD Unit to the Agency as executed by the participant. " The participant shall cause each HUD EscroW to be closed within forty-five (45) days from the date of execution of the HUD Unit purchase Agreement and the other HUD Escrow documents by the Participant. No extension of time for the close of a HUD EscroW will be granted by the Agency and if a HUD Escrow does not close within the forty-five (45) day period after the HUD Unit purchase Agreement has been fully executed for any reason not attributed to the fault or delay ofHUD or the Agency, then in such event this Agreement will be subject to termination. The Participant agrees that upon its acquisition of each HUD Unit from by the Agency, the participant shall promptly commence and thereafter diligently complete the rehabilitation of the HUD Unit. Unless a longer period of time is approved by the Agency in its sole discretion at the time of the submission of the participant acceptance of an offer to purchase a HUD Unit, the Participant shall complete the work of rehabilitation of each such HUD Unit within ninety (90) days following the close of the HUD Escrow. (i) Scope of Rehabilitation - The participant shall rehabilitate all HUD Units acquired from the Agency in accordance with the ARR Rehabilitation Standards noted in Exhibit "E". Furthermore, the participant shall prepare a Scope of Rehabilitation for each HUD Unit setting forth in detail the work that participant agrees to perform on each HUD Unit purchased by participant. The Scope of Rehabilitation shall be submitted by the Participant to the Agency concurrently with the executed HUD Unit purchase Agreement and related HUD Escrow documents. (ii) HOME Pro ram or A enc MAP Pro ram Assistance to ualified Homebu er - All HUD Units acquired and rehabilitated under the ARR Program, wherein the Qualified Homebuyer has applied for either HOME Program or Agency MAP Program assistance, will be reserved for sale to and occupancy by low- and moderate-income households, to be sold at affordable housing cost as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, or Part 92 HOME Investment Partnerships Subpart 7. (92.206), which requires that the value of the HOME assisted property to be acquired by the Qualified Homebuy" must bave a value that does not exceed 95% of the area median purchase price of the HUD Unit, whichever funding source is used for the Participant's Qualified Homebuyer. (iii) Dis osition of HUD Units and ualified Homebu er Eli ibilit - The participant will cause the marketing of each HUD Unit to prospective purchasers. Participant will screen prospective purchase" fo' eligibility io acco,d""ce with this Agreement, specifically to insure that Buyer meets the applicable HOME Program and/or Agency MAP Program Income Guidelines in accordance with Exhibit "B". participant shall cause the opening of a New Home Escrow with prospective pu<ehase<s ""d win take an steps necessary to ensu<c each New Home Escrow is closed within forty-five (45) days from the date of its opening. At the close of the New Home Escrow, the ARR Covenant shall be fully executed and filed for recordation. The form of the ARR Covenant is included in Exhibit "DOl. 6 CDC 1999-19 E. [205] HUD Escrow The Participant is under no obligation to purchase any HUD Unit from the Agency and the Agency is under no obligation to transfer any HUD Unit to the Participant unless the Participant has first completed a HUD Unit Purchase Agreement for the particular HUD Unit as identified on a list of HUD Units as submitted by the Agency to the Participant. The parties will open simultaneous escrows (e.g., the HUD Escrow) to provide the acquisition by the Agency of each specific HUD Unit which the Participant has agreed to purchase from the Agency. The parties shall execute the escrow instructions and documents as set forth in Exhibit "D" as may be necessary to accomplish the foregoing. F. [206] Affordable Housing Cost For the purposes of complying with this Agreement, all HUD Units shall be sold to low- and moderate-income households (e.g., Qualified Homebuyers) at affordable housing costs as such term is defined in Health and Safety Code Section 50052.5, or Section 8, (24 CFR 813), whichever is applicable to the Qualified Homebuyer's HOME Program or Agency MAP Program assistance, if any. The Participant agrees to be bound by all limitations for Qualified Homebuyers as set forth and in each Agency Quitclaim Deed for a HUD Unit. The form of the Agency Quitclaim Deed is included in Exhibit "D". The Participant shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency by a date no later than forty-five (45) days following the opening of the New Home Escrow, including but not limited to the HOME Program or Agency MAP Program Checklist, Verification for Applicant Eligibility, First-Time Homebuyer Disclosure Statement, Application Affidavit as applicable under the HOME Program or the Agency MAP Program as included in Exhibit "F". III. [300] REHABILITATIONfDISPOSITION OF THE HUD UNITS A. [301] Rehabilitation by Participant Participant and Agency agree that the central purpose of this Agreement it to provide for quality rehabilitation of each HUD Unit purchased from the Agency in a manner consistent with the terms and standards of this Agreement. Each HUD Unit acquired by the Participant shall be rehabilitated in accordance with the rehabilitation standards noted in Exhibit "E", attached hereto and incorporated herein. With respect to each HUD Unit, the Agency shall approve in writing all specifications, and plans, if any, including but not limited to landscaping plans, designs, and specifications of each HOD Unit to be rehabilitated as well as the proposed Marketing Plan for each HUD Unit prior to the commitment of the Agency to acquire any HUD Unit pursuant to a HUD Unit Purchase Agreement. Such approval of the Agency shall be evidenced by the Director in his/her reasonable discretion as consistent with the goals and objectives of the ARR Program, or his/her designee. 7 CDC1999-19 1. [302] Cost of Rehabilitation The cost of undertaking the Project, including the costs of acquisition, rehabilitation, marketing and sales of each HUD Unit shall be borne solely by Participant. The Agency shall have no obligation to pay for any cost of the Project. The Participant acknowledges and agrees that the profit, if any, to be made by Participant from the disposition of each HUD Unit to a Qualified Homebuyer shall be limited to no more than fifteen percent (15%) of the gross sales price at the time resale of each such HUD Unit after rehabilitation to a Qualified Homebuyer. 2. [303] Bodilv Iniury and Property Damage Insurance Participant shall indemnify defend and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency as additional insureds for claims for damages arising from the Project. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on any HUD Unit or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 8 CDC 1999-1') 3. [304] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City as designated by the Director shall have the right of access to each HUD Unit, without charge or fee, at normal construction hours during the period of work for the purposes of the inspection of the work being performed in constructing the rehabilitation on the HUD Unit. The Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 304 resulting from the gross negligence or willful misconduct of the City or Agency while on the HUD Unit. This Section 304 shall not be deemed to diminish or limit any right which the City or Agency may have by operation of law irrespective of the Agreement. Nothing in this Section 304 shall be deemed to make either the City or the Agency a guarantor of the work of rehabilitation or improvement of any HUD Unit. 4. [305] Local. State and Federal Laws Participant shall carry out the Project and all related activities on any HUD Unit in conformity with all .applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. 5. [306] Anti-Discrimination During Rehabilitation Participant, for itself and successors and assigns, agrees that in the rehabilitation of the HUD Unit provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [307] Taxes. Assessments. Encumbrances and Liens Prior to the issuance of a Certificate of Occupancy for any HUD Unit, Participant shall not place or allow to be placed on such HUD Unit any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on a HUD Unit, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to a Qualified Homebuyer. C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation ofa Certificate of Completion of the HUD Unit 1. Prior to the recordation of a Certificate of Completion by the Participant for a HUD Unit, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of any HUD Unit. This prohibition shall not be deemed to prevent a transfer of a 9 CDC 1999-19 " HOD Unit to a Qualified Homebuyer or the granting of temporary or permanent easements or permits to facilitate the rehabilitation of the Project. 2. Upon obtaining a Certificate of Occupancy from the City for a completed rehabilitation of a HUD Unit, the Participant shall sell such HUD Unit to a Qualified Homebuyer in accordance with and subject to the restrictions set forth in this Agreement. 3. The deed or other instrument of transfer by the Participant to any purchasers of the HOD Unit shall require that the unit be owner occupied by persons living in the units as their principal residences and shall further require that such unit shall remain available at affordable housing costs to the families of low- and moderate-income for a period of not less than ten (10) years subject to any other exceptions as may be provided by the Agency. 4. The Participant may not rent or lease any HOD Unit to a third party and during the time that the Participant may hold title to a HUD Unit, no person may use the HUD Unit for any residential dwelling purpose. D. [309] Mortgage. Deed of Trust. Sale and Financing; Rights of Holders [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation Mortgages, deeds of trust other encumbrances of each HOD Unit are to be permitted before completion of the rehabilitation of a HUD Unit but only for the purpose of securing loans of funds to be used by the Participant for financing the acquisition or rehabilitation of improvements on the HOD Unit. Participant shall not enter into any other conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar lending institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 310, executed by the Director. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. E. [311] Right of Agencv to Satisfy Other Liens on the Proiect Prior to the completion of the rehabilitation on any given HUD Unit, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on a HUD Unit which are not otherwise permitted under this Agreement, Agency shall have the right, but not the obligation, to satisfy any such lien or encumbrance. 10 CDe 1999-19 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS A. [401] Uses - Covenants Running with the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to any HUD Unit, that for the period of time set forth in the Agency Quitclaim Deed, each of the HUD Units acquired by Participant shall be devoted to and available for sale solely to persons or families with an income which are very low, low and moderate, as those terms are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "C", or 24 CFR 813 whichever funding source is applicable to the Participant's prospective Qualified Homebuyer for the HUD Unit. The Participant further covenants and warrants that Participant shall undertake the rehabilitation on the HUD Units in accordance with the standards set forth in this Agreement. Participant covenants to obtain all necessary permits and rehabilitate each HUD Unit in conformity with all applicable laws. F~ilure to obtain all necessary permits shall be a default under this Agreement. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any HUD Unit, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any of the HUD Units. The foregoing covenants shall run with the land. These covenants shall be expressly incorporated in the Quitclaim Deed from the Agency to the Participant. B. [402] Maintenance of the HUD Units Maintenance Condition of Each HUD Unit. Between the date of the close of each HUD Escrow and the date of the close of the New Home Escrow for each such HUD Unit the Participant for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of each HUD Unit which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of close of a HUD Escrow, there is an occurrence of an adverse condition on any area of a HUD Unit which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as 11 CDe 1999-19 identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Participant has failed to comply with the provision of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the HUD Unit and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HUD Unit authorized by this Section shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in Subsection(c), below. (b) Graffiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or improvement on a HUD Unit which is visible from any public right-of-way adjacent or contiguous to the HUD Unit, shall be removed by the Participant by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HUD Unit and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HUD Unit authorized by this Subsection(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection( c ),below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HUD Unit, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably necessary to restore the HUD Unit to the maintenance standard required under Subsection(a) or Subsection(b), including attorneys fees and costs of the Office of Agency Counsel (including salaries and wages of the legal staff and pursuant of this Office of Agency Counsel) as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section, shall be a covenant running with the land, and each HUD Unit, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section shall be deemed to preclude the Participant from making any alteration, addition, or other change to any structure or improvement or landscaping on the HUD Unit, provided that such changes comply with applicable zoning and building regulations of the City. 12 CDC 1999-19 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement with respect to each Participant HUD Unit shall remain in effect for the term as set forth in the Agency Quitclaim Deed. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PI{OVISIONS 1. [501] Termination and Breach (a) Termination Without Default or Breach. This Agreement may be terminated for the convenience of by either party who is not then in default upon thirty (30) days notice to the other party; provided however, that for any HUD Unit for which a HUD Escrow is then open, such HUD Escrow transaction shall be closed and the HUD Unit shall thereafter be rehabilitated and offered for resale to a Qualified Homebuyer as set forth in this Agreement. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or 13 CDe 1999-19 more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary . 2. [502] Notice Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party under this Agreement shall be in writing and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as follows: Participant: Sonia Sonju AFCOM Park Village Partners PO Box 1568 Sunset J3each, California 90742 Agency: Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 92401 3. [503] Conflicts ofInterest: Nonliabilitv No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participate, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. 4. [504] Inspection of Books, Records and Reports Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to any HUD Unit as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to any HUD Unit as pertinent to the purposes of the Agreement. 14 CDC 1999-19 The Participant shall provide quarterly reports to the Agency regarding all HUD units acquired and sold under this Agreement. 5. [505] Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the Agency's and the City's members, officials, employees and agents from and against any and all claims or liability arising from Participant's actions under this Agreement or from the conduct of Participant's business or from any activity, work or things done, permitted or suffered by Participant and shall further indemnify and hold harmless the Agency and City and their officers, employees and agents from and against any and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this Agreement arising from any negligent or wrongful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to environmental conditions, that may arise as a result of the Agency's acquisition and/or ownership of any HUD Unit that is the subject of the Agreement. VI. [600] SPECIAL PROVISIONS 1. [601] Submission of Documents to Agency for Approval Whenever this Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 2. [602] Successors in Interest The terms, covenants, conditions and restriction of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. VII. [700] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Exhibit "A" through Exhibit "F", which together with this Agreement constitute the entire understanding and agreement of the parties. 15 CDe 1999-19 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city statues, or it is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this agreement shall not be affected thereby. All waivers of the provisions of this Agreement must be in writing by the Director of the Agency or the Participant, and all amendments thereto must be in writing by the Director of the Agency or the Participant, except that the Director may only agree to non-substantive changes hereto with concurrence by Agency Special Counsel. Substantial changes to this Agreement shall require the prior approval of the governing body of the Agency. Each individual signing below represents and warrants that he or she has the authority to execute this Agreement on behalf of and bind the party helshe purports to represent. VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [80 I] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Director as evidenced by the date first above shown. IIII IIII IIII IIII " IIII IIII 16 CDe 1999-19 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. "AGENCY" Approved as to Form: By: ~. ~ ~-\.~~<7 Age~cy ,Counsel \~ "PARTICIPANT" By: ~~J~ Title: ~ A-fam PtVlk V~L t~. By: Title: By: Title: 17 CDe 1999-19 . EXHIBIT "A" 1999 ARR AGREEMENT "Map of ARR Zone" h . : i I' ,--.......; 'tl. "" FJ'J+t I ~'7 :g~ r~Z;Jf', ~j ~ - : , = ~ i ~ -- ...-'J~~::~ I:,,:::';:,. :,: J~'~~~';:;~ . ",:';:., /~i~:t~;.~~ I[ I ;; ~.,?~~ ..I.....;ISlREEl.,..;..,I.:I:'i..::.j:'.,..... I !( ".' . ". ;1.1 I.' '.:.....;;,., ;'. ,.ce :>".;";; ~1::I"..I,,:;I:.; -:-..' . I 1i.<\15 IN -:;-, ~ . .'1' r I . .,1 .' , '.' .; '. '. IJ:~O\\'lfIJJ AtilT '. ,c "" . I ; , :~- I ~ 13:; !;~~.I~: I :!:~:':;~:', ; ~f;~ ::;~II F ! ~ ~l %;1": ," .' .'. -.:y. '. .'. "'mi:iI.~>IAi~:-' ". : I'" ~I i [fl' ~II. ~ l~~; Lt''': .' 'I:j.;~:;"~ . '>T . ~ ~ ~I 5< ,i: ~'(,:"/',: ?'l '.. 1_ ~q' . E~' IT'\",,.; t2; <;'" : .,;,:E, !r-,.. 1"'1' I, h.' ."f' _. , ~ Ii iSi.',':' ~:; ',:.' I~-,';:; ~:\::!; p '; - ",.,' ~' .' '-' ,< ~ I> r ~I . ,.,' r.'-"-l<~ ~ ' :>:. .. ....,ic: ~. ~ G^'"'\I" - '1' m< ~ . L1!~~" ~ 1Jl jl' ::l@ I. __~~ Lr:,oo;,,,,, e ~ I :,..1~-~~~ Ii I - ::}--\ I y. \ \TfW~GAIl ~ r ..1 I',; lJ JI_J i :\;;~.I) 'L.I ; - -.. 'lj.oi.'AI~1 ):}'1;~t,1/ 1-"1 "] 2.1". .~ . -> '<':r.;~ I L.J 8 r . ;:"0;'7':/% . ~ - L.. ~ 721'7 ..~..- ~/ 11C1O,IHl'l ;.J /~.- OCN1S,r, .1 . t I P"MAlt t;,;;{ ~ 1'-, (~ I I" :!) '- '1 L-:....: /w~ III Cf/ 'Ol~DEWE.l '1" if/ _ 1 ;) vl i '-":0 0 )>(t);:;:' :0<'< :0 -.0 - - tl)E.,cn ::J -. PJ a.N:J ~Ol s-. CD ......o~ _::J:J "Na. " 0 -. ~ ::J :J O(t)O COtn -,: tl) 3 CJ) - (' \- ~ ~- , f J r:: .,---; nn ;UU )> 0 0 :ng.:< :n :J r Qo .:< 3 ~ ~ m )> m lJ 1>> "U :: a =r ::l s- o; 3 Q. CJl .:< ~ 3_- 5' 5" iD 'l < ~ '" J I ~. ~J 1 CDC 1999-19 r l.._j, In . PEPPfRAlt -. ";1 i IURIDIAS AI'!. '11 I -' "~, .>' I i :\. :'.- :r ~\,~ Ci ~J' :z: .~~ ~ ~. ../}> ~ ../~l..._.. 7 ~ '. f--..---, , .",.' i,~,:j ." ./';IICY ST I~ r STATEST :! '~~ t: Ai ~ ~ '1'';/ _ 1.--.....;,.: '" ~5 ;;1 rMlWANloI ..............., '" ..~~- ~~ .~" ! \ l~i :.;. . IIOl"'1,,!~I' .. 1-. "" "",., " L~ \ \ 1 I ~l\HIllmEET \ ~'i:i'- o ,"_00 l.-, i T '" IS or.INCI ./ CDC 1999-19 . EXHIBIT "B" 1999 ARR AGREEMENT "Current Household Income Listings for Qualified Homebuyers" CDC 1999-19 EXHIBIT "B" 1999 Income Limits Income HOUSEHOLD SIZE Level I 2 3 4 5 6 7 8 Very Low $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 (50%) Lower. $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 (80%) Median $33,050 $37,750 $42,500 $47,200 $5 I ,000 $54,750 $58,550 $62,300 (100%) Moderate** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 . $74,800 (120%) * If Participant's Buyer is using HOME Federal Funds the Maximum Annual Income a family can earn is 80% of median income according to household size. ** If Participant's Buyer is using State Lo,vlModerate Income Housing Funds the maximum annual income a family can earn is 120% of median income according to household size. P:\FOf1FIs\ARR Program\ARR It/come Um;I.~.doc CDC 1999-19 EXHIBIT "C" 1999 ARR AGREEMENT "ARR Program - Steps and Process for Circulation of HUD Unit Listings by the Agency and Selection of HUD Units for Purchase by Participant" CDC 1999-19 ECONOMIC DEVELOPMENT AGENCY CIlY OF SAN BERNARDINO "Acquisition Check List" o COPY OF HUD SALES CONTRACT (Land Use & Part A-D) o REQUEST FOR PROPERTY INSPECTION ANALYSIS FORM To be executed and returned to EDA five (5) days from the date of list of properties is provided to participant D COPY OF ESCROW INSTRUCTIONS (HUD TO EDA) D COpy OF ESCROW INSTRUCTIONS (EDA TO PARTICIPANT) D PARTICIPANT CONSTRUCTION/REHABILITATION WORK WRITE UP TO EDA INSPECTOR D PRELIMINARY TITLE REPORT D (2) SETS OF ESCROW INSTRUCTIONS TO SIGN AND RETURN EXHIBIT "1" \\EOA..SAN BERDO\PUBUC\FonnS\AAA program\AAR. Process.doc _7/99 3 CDe 1999-19 Economic Development Agency City of San Bernardino ACQUIsmON,REHABILITATION & RESALE PROGRAM (ARR) ARR PROCESS A. Exclusive Sales 1. EDA will receive weekly (Thursday evening) an exclusive list from HUD of units available within the Revitalization Zone. 2. EDA will distribute exclusive list to Participant no later than Friday A.M., following receipt of Thursday's list. 3. EDA has seven (7) days from receipt of list in which to express interest in any property. Thus, Participant will notify EDA within five (5) days (Tuesday, 5:00 p.m.) of receipt of list from EDA interest in property. 4. On fifth day, Participant will submit to EDA: (1) Request for Property & Inspection Analysis form. (2) HUD Sales Contract and attachments for signature by EDA staff. 5. EDA will notify Participant by 7th day (Thursday, noon), when documents are ready for pick-up. B. Direct Sales 1. Tuesday evenings HUD list properties on the Internet (Direct Sales Internet Lottery Process) 2. EDA approved Participants must express interest to purchase properties by 3PM Friday (3 days after HUD's posting of Direct Sales List). Participant must perform due diligence of properties (completed property and inspection form). 3. Participant must retain HUD lottery number/confirmation number of transmission. HUD will select winner by Wednesday evening (1 week after posting Direct Sales List). 4. List of winner will be posted Wednesday evening. Participant should check this list promptly to verify whether they are the winner of the property. 1 CDC 1999-19 " 5. Upon verification of HUD winning lottery number, Participant will have until end of business day on Friday (2 days after HUD posts winners) to deliver a complete sales package to EDA include: - HUD Sales Contract (Original) (Include HUD Addendum A-D - HUD Land Use Restriction Addendum - Request for Property Inspection Analysis Form 6. EDA will review and execute sales package by 12:00 p.m., Monday. Participant to pick up Monday and overnight complete executed sales package to: Golden Feather, C/O Tammy Massone, 225 East Airport Drive, Suite 100, San Bernardino, California 92408, (909) 890-2370, (909) 890-3831 FAX. 7. Close of Escrow - HUD executes contracts and opens escrow at Arrowhead Escrow, 935 South Mt. Vernon, Suite 106, Colton, California 92324. (45 day maximum for closing) C. General Notes 1. Important - EDA purchases property under the name of "The Redeveloment Agency of the City of San Bernardino, a public body, corporate and politic." Therefore, all HUD contracts and documents must reflect this entity. 2. EDA's purchase is funded by Participants private lender or other funding sources with a concurrent escrow to close from EDA to the Contractor. (EDA does not provide any funding for HUD purchases or rehabilitation), 3. After close of escrow from EDA to ARR Participant, Contractor performs rehabilitation on house per the original construction work write-up and markets property for sale. Contractor is responsible for obtaining permits with building and safety for all repairs to the house. 4. EDA Inspector performs a final inspection of the property (after rehabilitation in accordance with "Contractor Construction Work Write-up") to insure all work is completed as per these specifications. 5. Assuming the buyer has been qualified and pre-approved for the Mortgage Assistance Program (MAP), by the primary lender and EDA, and a final inspection has been performed by EDA Inspector, EDA will issue a check and fund the MAP for the buyer. P:\Forms\ARR Program\ARR Process.doc (Revised 7/99) 2 CDe 1999-19 EXHIBIT "2" Economic Development Agency City of San Bernardino "Request for Property and Inspection Analysis Form" (to be submitted by Partidpant to EDA with HUD Sales Contract and Attachments) , ' :t;{>~~~r~:.~~,",:,~;~-'C:i;(;,':.;--~~' 'I.' 'Partldru.ntInformation '\';'.":~C":0.;'!:'0~ . . . ,,-. ~ ,. j< Date Submitted to EDA: ARR Contractor: Contact: Phone Number: " '", ",/', .....,c:::;... '. 'II. " proeertv Information""":'":;\/0~~~~mif.;!'~'';I',!\;",~ HUD Case #: Status: o Uninsured 0 Insured Check Approximate Location in Revitalization Zone (See Map - Exhibit "A'1. Property Address: CityfZip: Bedrooms: Bath(s): Total Sq. Ft. Estimated Costs Actual Costs HUD SALES PRICE $ $ ELECTRONIC BID PRICE (IF APPLICABLE) $ $ HUD DISCOUNT PRICE $ $ REHABILITATION COSTS (L & M) $ $ PARTIGPANTS OVERHEAD $ $ TOTAL PROJECT COSTS $ $ ARR SALES PRICE $ $ ARR PARTIGPANT PROm $ $ % Profit (Maximum profit Is 15% of Total Project Costs) Amount of Loan for Property (Acquisition & Rehabilitation Loan) ARR Participant Lender: Address: Phone Number: , '~-.~~:~r;,,~~~~\";'. III. " BUYER INFORMATION , .', " , /'-:', '.,<t,".,:~: ,''-'''/i:'g,1 Buyer(s) Name: Family Size: Annual Gross Income: MAP Loan: (Not Buyer's Partidpant to exceed 10% 01 Contribution: $ Purchase Price) $ (Minimum of $500) $ Contribution: Closing Date Lender Name/Contact Lender Address: City: Lender Phone: Lender Fax: Please check Appropriate Categories: 0 Sr. Otizen(S) 62 Or Older 0 Female Head of Household Disabled Family Member 0 Hispanic 0 White 0 Asian or Pacific Islander 0 American Indian 0 Black 0 I OFFICE USE ONLY: % of Median = I ARR Participant Signature EDA Representative Signature Date EDA Review Contract/Inspection Form/Date EDNPre-Acquisition Inspection Signature/Date EDNPost-Acquisition Inspection Signature/Date \\EDA-SAN BERDO\PUBllC\fOm'ls\ARR ProgrJm\AAR Procns.doc (RcYI5ed 7/99) 4 CDe 1999-19 EXHIBIT "D" 1999 ARR AGREEMENT . HUD Escrow Documents: (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents CDC 1999-19 LS. DEPT. OF 1I0rSI:\C & URBAi\ DE\"ELOP:\lE:\T Addendulll A (RE\'.\ 1(9) .........FORFEITURE ,.\~D EXTENSIO~ POLICy......... A11I1\:!lProperty I)I,poslllon sales of Ill'I),a,clolfL'" 1""i'<:rIlL" arc tu close wlllun 45 d.IY s ,)f a"eptJllc:e ,.f J lIl'[),'l:'4S {I 9<)) SJk, ContrJ,t ui'fer to purchase Furfeiture of E;irnc,t ~Ioncy Deposits, The failure by a purchJser to close on the SJk of pro!'L'II:, \lllhlll the a11o\lable !line perloJ, IIh:lul\;/\'; JIlY e,IL'nSIlIlI' grallled b:, Illil>, will result III the i'urfcllure of the CJfIl"l nlL'nc:, ,:q""II, e,(ept \lhere the purchJser pres,'nl; ""dllllenlJlloll to 11\ '[) thJI')!;L' ofthc speClJI CHcumstances descnbcd 111 paragrJI'h, (JI Jlld (bJ below ofuus section hJS occurred (a) In\'cstOf Pur(hJsers (I) The failure by an ll1\estor PurchJser to close un In urllnsured sale will result 111 forfeiture 01' the enllre eamesllllonL'Y deposll, (~I Fifty percent of the earnest money depOSit 011 an Il1sured sale wi11 be returned to an In\eslor Purchaser where (IUD (or a Direct Endorsement lender uSll1g III '[) gUILleltllcsl determll1es that the Purchaser IS Ihlt an acceptJbk borro\ler (bl (I) Owner-Occupallt Purchasers The enllre eamest money deposll \lln be re[ur;~,'d I" an o\\ller-occupanl Purchaser \\h,) bib III cl,,,e \\hete, Slllce Ihe contra(( of sale was signed (1) 1 here has bee 11 a death 111 the ImllledlJle falll:!:- [(L'lltrJCt holJer, spouse, or childrell Ii\ Ill'; IIllhL' s:lIl\e h"uscholdi, (II) l'here hJS bee 11 a recent sellOUS I1llle" III the If:lIl\edIJle fJllllly that has resulled III slglll"iLanlllledl,al npell:iCs Llf sub,;(Jllliallos~ of Income, thus acl'el:iCl\ afk,llIlg thc purchaser's flllallClJI ablltt\ to e1",,' thc sak (Ill) There has been a loss of Job by on,' "l th,' I'r :;::J;'\ br~.!cl\\ lIiners, or substallllal hh, of IIlL,lllle thllll:gh 11'.1 fJul1 Ill' l!l~ PurchJser, (1\) In the case of an Illsured sale. IIL'D (Llr a I )II\'~( Ln,I,'hemenl lender uSlllg (IUD glllddllle-;J de!enllll1eS th.\Ith~ Purchaser IS not all acceptable borro\\ er, (l( (\) hH othet !;\)od cause, as determrn~d b:. the' t'"Ie! ofli.:e (~I In the case of an umnsured loan \\ hele, despite gllnd fauh crforts by the Purchaser, thete IS an Illablh!) to obtain a mortgage loan from a recognized ml)rtgage knckr. 50 percent of the earnest money deposll Will be returned (Jl On eIther type ofsak, forfeit 100 percent of the d~pllsltlllthose instances \\here no dlKulllenlallonls subr11ltteJ, \lhele the documentation falls to prOVide an acccplJbk cause for the I3uyer's failure to close, or where documentallonls not pro\lded wuhll1 a reasonabk tllne f,)II'l\\lng ':'lIllrac! calKellallon (eg, 30 days) Extensions. llle Golden Feather Realty office wtll grant ~'ter\)Ill(IS of llIne upon wnuen request from purchaser E~tenSllln, of tlllle to d,,,e the sale arc entirely \\uhrn the Seller's dlscretlllll An n:ellSILln, If grallted, \\ III be under the follll\\ Illg condlllons (JI .-\ \\fltten request for an extenSllll: lI1U,t be r,'~c'I\~d b:, Golden Fealher Realty IIIl bter thJn fl\'e days bef,lle Ih,' scheduled deJJlllle f\lr clOSing \h, The dllCulllentallOn submitted \\ uh the 1"LJue.! 1ll1"! e,t.1hhsh the CJuse of delJY and tlul murtgJge applO\' JI " IIll1l1lllL'lIt Junng the extension penod ((I .-\n nten'>lon Will be for a pelllld Ill' t'llkL'lI ~J!L'IIILH da:, at a fee ofS375 00 (~(J.~K ' ~o ,!JYs, 5750 (1)) Fcc' I (ntl1'Il'd funds) wtll be depllSllCd HI eSC:lll\l HllllledIJ;";:- Upl.lll a('plllval (d, I, \Ien",," kes '>Iull be rL'lalllL'" h ~dkl 11.1 ;",,,n,; d,lL's nlll OCCUI (e I ..\\ the tlllle Llf dllsll1g, lI111IS,'d ,'\IL'n"llIl fcc', \\ ill be ('lllrated to the PurchJ'" ;lI1d telunckJ b)' e>dO\\ (fl '\lIe grJntlng of one ntethlOn slulllll'l obL;:.I;e thL' Seller to grallt alldllloll;lI nten""ns, alld the Sellet .,hJII,Ie,blC J IkfJult 1'''1 the Purcha>CI{ f.IIIl:I': td .:I."e :::L' ,JIt- u('I'n the eXplratlll1l of the l'flgln;lI cl."tllg (1elll'C\llr UI"l(\ nl'll.lIl"ll lIf thl'l',h."hlon CDC 1999-19 Allowablc .C1osing Costs. Th.: following closing costs with a combined value of not more than 3% of line 3 of the 9548 (1/99) Sales Contract may be credited to Line 5 of the Saks Contract. Funds not consumed will be credited to the Sdlc:r. 1% Loan OrIgination Fee Credll Report Impounds Int.:rest I lazard Insurance Lend.:rs Co\'erage Polley Owners Coverage Policy 0:otary Taxes (Current tax year) HOA Dues (Current month plus one) AUTO~IA TICALL Y PAID 131' HL'D (I/ot il/ell/ded 01/ lUle 3) Recordlllg Fees - Deed and :-'Iortgage CllyiCounty TaX;'Stamps Escrow Closing Fee \\'IIC Transfer Fee to \\"ashington. DC. HUD Case No. Property Address: City: ScUcr Disclosure. Seller makes no representations or warranties concerning the condition of the property, includlllg but not limited to mechanical systems, dry basemcnt, foundation, structural. or compliance with code, zoning or building requirements and will make no repairs to the property after execution of this contract. Purchaser understands that regardless of whether the property is being financed with an FHA-insured mongage. Seller docs not guarantee or warrant that the propeny is free of visible or hidden structural defects, termite damage, lead-based paint, orany other condition that may render the propert)' uninhabitable or otherwise unusable. Purchaser acknowledges responsibility for taking such action as it believes necessary to satisfy itself that the property is in a condition acceptable to it, of !Jws, regu!Jtions and ordinances affecting the property, and agrees to accept the property in the condition existing on the date of this contract. Seller disclosure concerning HOA dues. Mello Roos taxes, assessments, or any tax concerning HUD homes is based on available information but not deemed complete or accurate. It is the responsibility of the Buyer to obtain all infomlation concerning these issues. Walk-Thru Inspection. All purchasers are strongly encouraged to perform a walk through inspection PRIOR to the close of escrow. If a purchaser discovers a propeny condition that did not exist at the time of sale they must immediately notify HUD's propeny manager, Golden Feather Realty, of the damage. The buyer assumes full responsibility for the property and its condition on the date of close of escrow. The Department assumes no responsibilllY. and will make no settlement, for damages reported to HUD after the close of escrow. (See item 1113.E of Hl.'D Sales Contract) Buyer Certification. ) we certify that 1.\\e ha\'e been Interviewed. completed a loan application, verification of employments and obtained a full credit repon from the lender that has prOVided the attached Letter of Commitment. Iiwe understand that L'we will forfeit our earnest money deposltl!"\\e enter 11110 thiS contract wllh\lut completing this qualification proce.5s. Signatures (Purchaser) (Purchaser) (Purchaser) ( Purchaser) CDC 1999-19 LAND USE RESTRICTION ADDENDUM Thi~ Addendum is Incorporated by reference to Ihe FHA Sales Contracllor Ihe properry located at ..____, executed on lhis same day of , 199_ between (Purchaser) and lhe Depar1m~nt of HOUSing and Urban Development (Seller). Unless an exception is grented In wrillng by the Sella a The Purcl""er tS expecled, at a minimum, to repair the propeny .1ccording 10 10c~1 code, after which it shall resell the property only In a person who intends to occupy as his or her principal residence and whose income is at (II below I J 5 perceOl of the median income in the area, when adjusted for family size. or a Slate. government entiry, rrihe, or agency thereof, or a pnvate nonprofir organiz,1tion dS defined in 24 CFR 291.405. b. The purchaser shall not reselllhe propcrty for an amollnt in excess of 110 pcrcenl of lhe ne! development cost. Net devclopmerll cost is the 10lal cost of the project, including items such as acquisition cost. arehtteclUral fees, permits llnd survey expenses, insurance, n::habililatlon. and taxes. It does not include a developer's fee. Total costs incurred by the Purchaser, including those for acquisition rU1llOcing, management, rehabilitation, end sclling expenses, arc expected 10 bc reasonable and cu.stomary for lhe area in which this property i~ located. e The developer's fe<: provides for Purchaser's overhead anu stafrlnh costs related to the proJecl, and may not exceed 10 percenl of lhe net development cost d rhe property may not be occupied by or resold to any of the Purchaser's officers, directors, tlecteu ur llppointed of11cials, employces. business associates. or 10 any individual who is related hy blood. marriage. or law to any of the above. e There may be no COnnIC! of interest with individuals or firms thaI may provide aequlsilion or rehabilitalion funding. management or sales services, or other associated wilh the projecl. 2. Purchaser must provide periodic reports, as specified by 24 CFR 291.110 and in the format and frequency specified by HUD, regarding lhe purchase and resale of properties subject to this Addendum. J. nli, Acluendum survives the expinllion. if any. by operation of law or otherwise, of the FHA Sales Conlracr, and shell terminate five years from the dale c;onlained herein. Purchaser Witness Secretary of J-Iousinl< and Urban Development Seller Witness By' CDC 1999-19 LE.-\D-B..\SED PAI:--;T ADDE:--;DF\I TO SALES CO:--;TR.-\CT - PROPERTY BUILT BEFORE 1978 . FilA CASE SO PROPERTY ADDRESS: A Tr ACII~lENT A Page 1 of 4 :\OTE TO rU{UI.'\SERS. REAL ESTATE BROKERS A:'-OD AGE:'-OTS: nil" add,'ndum IS m"nd.lIorylor any prop"'l) budl belore /978 and conJlSls ollour porU Pdn A.Duclusure of In/ormation on Lim/-Based Pllinl anti 'or /.end-Based Pllint ffa:ards. Pllrt 8. Sales Contract Lead Blued Paint E~'allJ.atjon Contingency. Pdrt C. O~,'nt'r.OCCurllnl Cercijicntlon. and Part D. Purchaser's ..-(Mint/urn (0 ,"..' Stiles Contract. Release of Lemf Based Paint E\'oILlation Conringtncy. .4.11 parIS mldt be." Cllmp/('(c.'t! as sho\,'" nus Lc.'jut.Based Paint Add..'ndl.lm mUSe bl' compk/f..tf on or bt'fore the dlJte of the Sales Contract, and fon\'ardL'd to IIUD ",;th the Sales COrJlrCNflJr ~tn\ prVpt"l.\ bw/t b(fvre 19i3. Sclles COnlrtlCU 'o\llhoUl thu Addendl.4m ,*"tll nOl bt' accepu'd b.\ IICD 711is Addendum sUr\'i\'cs lhe closing oflhe salt" PART A DISCLOSL'RE OF ISFOR,\lA TlO,V ON LEA D-BASED PAI.VT AND/OR LE.W BASED PAINT HAZ~RDS l.EAD \VAR:'\ I:'\G ST:\ TE'1 f.:\T. En-ry purc:hllSt'r of any inlt'reSlln res/lil'nllal rt.'ol properly 011 hhlCh tl Tl'~It!t'nfia/ d~n'/llng '*"'os buill pnor to /9;'S Is nOlfil,1f that s~H'h propaH ",.n pr-fscn: t',\POSI4r-..' 10 It.'ad from /t.'lld.bast'd that may pll1Ce YOfa:g children at ruk of (k\'cloplng /('0(1 poisoning Leatl poisoning in young children ma.\ pra.!un' p.'rrrlt:nt'r/t ':t'l.4rolvglcd damlJgl'. including It.'arning ll,sa/JlhtH'S. redll(('d in(('!hgt'nc(.' (/W)lH'r/l. bt'hm'loral problt.'ms. and impoin'd memory. Lead poiSOning .zii., pm...) 11 pl;nlCu,',U T/.\~ :v prl'gndnl homt'n me setlt!r of all) tn(t'reslm rt!Sldt',llhl[ proper/.\ ls rC~'14jrt'd to pro\'ld~' tht! buyer ....-rth any informallon on /t!ad.bah'd pmnt hct:ar,ls fron: (lj/.. tUSeSStrll'nts or inspections in the st!/lt~r's POSS('SSlOn ond nOllf. tht! bu.\ t'r of lZny knv\\n It.'ad.boSt'd pmn: hr.:ards .of nsk asscssment or JflSpeCllcJnfor posslblc.'/t.'nc!. baud pamt ha:nrc!s is rl'COfTlmt.~nr!fd prior lo pI4rchast." SELLER'S DISCLOSL'RE A Presence of lead-based paint and'or lead-based paint hazards (dleek one bdow): Known lead-based paint and'or lead-based paint hazards are present in the property (explain): 2. Seller has no actual knowle?ge of lead-based paint andor lead-based paint hazards in the property. B Records and reports available to the seller (check one bdow) 1. Seller has provided the purchaser with all available records and reports pertaining to lead-based paint and10r lead- based paint hazards in the property (ltst documents below). 2. Sellcr has no reports or records pertaining tolcad-based paint and'or lead-based paint hazards in the property. rUKIlASER'S ACK-'\OWLEDGEi\lEl"T (initial) C Purchaser has received copies of all infomlation Itsted above. D. Purchaser has received the pamphlet Protect Your Family from Lead in '{our Home. E. Purchaser has (check one below): 1. Requested a 15 day opportunity to conducl a risk assessment or Inspection for the presence of lead-based paint and or lead-based paint hazards; or 2 \\'ai\Td the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and'or lead. based paint hazards. BROKER/AGEiST ACK-'\O\VLEDGDIEiST (initial) F. Broker/agent has informed the seller of the seller's obltgations under 42 U.s.e. 4S52d and is aware of his/her responsibiltty to ensure compltance. CERTlFICATIO:--; OF ,.\CCCRACY The following parties have reviewed the infomlation abo\'e and certIfy, to the best of their knowledge, that the infomlation they ha,'e provided is true and accurate Selkr Date I'urch;lser Date Purchaser Date 9:96 Broker 'Agent Date CDe 1999-19 Allowablc .closing Costs. The following closing COSlS with a combined value of not more than 3% of line 3 of the 9548 (li99) Sales Contract may be credited to Line 5 of the Sales Contract. Funds not consumed will be credited to the Seller. 1% Loan Ongination Fee Credll Repon Impounds I merest I lazard Insurance Lenders Coverage Policy Owners Co\'erage Policy i'otary Taxes (Current tax year) HOA Dues (Current month plus one) AUTO:-'I.A. TICALL Y PAID 13Y HCD (Ilot illcluded olllille 3) Recordlllg Fas - Deed and \longage City/County Tax/Stamps Escrow Closing Fee Wire Transfer Fee to \\'ashington. D.C. HUD Case i'o. Properly Address: CllY: Sellcr Disclosure. Seller makes no representallons or warranties concerning the condition of the properly, including but not limited to mechanical systems, dry basement, foundation, structural. or compliance with code, zoning or building requirements and will make no repairs to the properly after execution of this contract. Purchaser understands that regardless of whether the property is being financed with an FHA-insured morlgage. Seller does not guarantee or warrant that the properly is free of visible or hidden structural defects, termite damage, lead-based paint, or any other condition that may render the property uninhabitable or otherwise unusable. Purchaser acknowledges responsibility for taking such action as it believes necessary to satisfy itself that the property is in a condition acceptable to it, of laws, regulations and ordinances affecting the property, and agrees to accept the property in the condition existing on the date of this contract. Seller disclosure concerning HOA dues, !\\ello Roos taxes, assessments, or any tax concerning HUD homes is based on available information but not deemed complete or accurate. It is the responsibility of the 13uyer to obtain all information concerning these issues. Walk-Thru Inspection. All purchasers are strongly encouraged to perform a walk through inspection PRIOR to the close of escrow. If a purchaser discovers a properly condition that did not exist at the time of sale they must immediately notify HUD's properly manager, Golden Feather Realty, of the damage. The buyer assumes full responsibility for the property and its condition on the date of close of escrow. The Deparlment assumes no responsibility. and will make no settlement, for damages reported to HUD after the close of escrow. (See item II l3.E of HUD Sales Contract) Buyer Certification. L \w certify that Iwe have been II1ternewed. completed a loan application, verification of employments and obtained a full credit n:porl from the lender that has providl'd the attached Letter of Commitment. liwe understand that J:we WIll forfeit our earnest money dCpvSll tf we entn Intv tillS contract w llhllut completing this qualification proce.ss. Signatures (Purchaser) (Purchaser) (Purchaser) ( Purchaser) CDC 1999-19 LAND US~ RESTRICTION ADDENDUM Thi) Addendum is Incorporated by referencc to Ihe FHA Sales Conlractlor Ihe properry located at ..____, executed on [hi5 same day of . 199_ belWeen (Purch.J.$er) and thr Depanmenl of Housing and Urban Development (Seller). Unless an exception is granted In wrillng by lhe Sella' a The Purc!.,,,cr is expected. al a minimum. (0 repair the propeny according to 10c~1 code, after which il shall rl"sellrhe propcny only In " person .....ho intends to occupy as his or her principal residence and whose income is at (II be/ow 115 perccnt of Ihe median income in the area, when adjusted for family size. or a State, government entiry, (Tihe, or agency thereof. or a pravale nonprofit organiz,llion dS defined in 24 CFR 291.405. b. The purchaser shall nOI resell tile propcny for an amOllnl in excess of 110 percenl of [he /leI development cost. Ner development cost is Ihe lotal cost of Ihe project, including items such a~ acquisition eos[, arehHeClural fees, permits Hnd survey expenses. insurance, n::habililatlon, and taxes, It does not lIlclude a developer's fee. Total cosrs incurred by Ihc Purchaser. including those for acquisilion..rInHneing. management, rehabilihllion, and selling expenses, are e,~peclcd to be reasonable and cu,tomary for lhe area in which this propeny I~ localed. c The developer's (u provides for Purchaser's overhead anu slaffinJ.; COSls relared to Ihe proJect, and may nOl exceed 10 percent of the nel development COSl d rhe property may not be occupied by or resold 10 any of lhe Purchaser's office~, din:clors, l:'kClccJ ur Hppointed onicials, employees, business associates. or to any individual who is related hy blood, marriage. or law to any of tile above. e There m.~y be no connlct of inlerest wirh individuals or firTns lhat may provide acqulsirion or reliabililHtlon funding. management or sales services, or olher associHled with the projecl. 2. Purchaser must provide periodic reports, as specified by 24 CFR 291.110 and in [he fOrTnal and frequency specified by HUD, regarding Ihe purchase and resole of properties subject to this Addendum. 3. TI,i, Aducndum survives [he expirnlion, if any, by operation of la"" or otherwise, of Ihe FHA Sales Contract, and shalllerminale five years from the dale contained herein. Witness Purchaser Secretary of (-Iousinc. and Urban Development Seller Witness By' CDe 1999-19 LEAD-ll.\SED PAI:-;T ADDE:-;DDI TO SALES CO:-;TRACT - PROPERTY IWILT BEFORE 1978 FIlA CASE :-;0 PROPERTY ADDRESS: A Tr ^CII~1ENT A Pagc 1 of 4 :-;OTE TO rCHCII.-\SEHS. REAL ESTATE BROh:ERS A;\[) AGE;\TS: nlls mld"",/u," "mtlnd,lIoryfor any prop"'ty built before /978 and consut, offour pnrts Pdrt A.,DlSclosure of In/ormallon 011 Lf!ttd.8dJeij Paint anti 'or Lead-Based Puml Ha:ards. PIUI 8. Sdles C vnlrllC( Lead Based Paint E\'aluatiofl Contingenc)'. Part C Ohm.'r.OcC1~rjlnl Certijicatlon. and Part D. Pl.lrchnsu's Addendum {O lilt' Sales Contract - Relt'(lse of Ltllil Basel! Paint E,'n/untion Contingency. ...11 pans must bl' comph.'tt,.f as 51lO\\''1 nus Lt'Il,!.BfHCd Paint .-4ddl"ndum must bl.' complc[('d on or b..10rr the dill( althe Sales Contract, anilfon\'nrd(.(f 10 IIUD ,.,.,.;th {ht Sales Con/fat-I/or IIn\ prcJpt'rl.\ bwll bt!Vrf /9iS. Selles ConlnJCtJ ....tthow IhfS Addt'ndtlnl ....tll not bf.' acceptf.~d by /It'D 77,;s Addendunl sun:i\'es thi' closing oflhr sa/i PART ^ DISCLOSL'RE OF ISFOR.\!.iTlO,V ON LEAD-B.HED PAI,'>T A;VD.OR LE.W BASED PAINT lIAZ4RDS I.EAI> \\r\R~t:'\C ST..\ TL\I['\T. En'''y pun:h':Jt'r of (Jny inft'rest trI resu/,'nt/al n:al propalY 0" hhlCh II rt.'~ldt'nlial l{h'd/trlg was built pnor to 19-:8 IS nOfifit'd iha: .HH'h pWj't'rf.' m.H prt'scn: t'.\posurt' to h'ad from h'nd.bnst!d lhlll may pll;ce young chlll/ren 01 ruk of dft'elop,ng lC.'n(1 poisuning Lead poisoning in young chIldren n:a.\ prodUCt' p,'rnli:r:l'nl r.,'urol0gl((:1 dtlnlagl'. includtrlg Il'arning c/.sabllwl'S, r{'c/u(('d inle!!tgen(t." QIHJ(lt'f1l, bl'hm'ioral problems, ami impain.'d memory. Lead poisomng di}l) rmo ,1 Pl:r:llU:.Jr n.'~ :1.1 prt'gn.lnr homt'n The sellc>r of all) trllaest trI rt.'su!t'lllwl propl'rf.\ U rl''1'lllrf.'d 10 prU\'ldt! llit.' buyt'r "'llli any informal/on on /f!ad.bclSl~(f patrll hd:arlls fron: ru;" IJS5t'nUll'nts or lnspCCllOns in lhe st'/It~r's pOSSCHlVn and nOllfy Iht! buyer of any k.JWhn h'ad-based pmnl hn:ards .-4 risk asseJ5nll'n.1 or inspCCluJn for pusslblt' lend- btlSfd paint hd:nrds is rt'commt'ndt'd pnor to pl~rchnse SELLER'S DISCLOSl'RE A Presence of lead-bascd paint and.or lead-based pain! hazards (check one below): I. Known lead-based paint and'or lead-based paint hazards are present in thc property (explain): 2. Seller has no actual knowledge of lead-based paint andor lead-based paint hazards in thc property. n Records and reports available to the seller (check onc below) I. Sellcr has pro\.ided the purchaser with all a,.ailable rccords and reports pertaining to lead-based pain! anJ.or lcad- based paint hazards in the property (list documents below). 2. Seller has no reports or records pertainin~ to lead-based paint and'or Iead-bascd paint hazards in the property Pl'lKllASER'S ACK-'\;OWLEDGEl\IE"'T (initial) e. Purchaser has recei\.ed copics of all infomlation hsted above. D. Purchascr has received the pamphlet Protect Your Family from Lead in Your Home. r:. Purchascr has (check one below): I. Rcquested a 15 day opportunity to conduct a risk asscssment or II1spection for the presence of lead-bascd paint and or lead-bascd paint hazards; or 2 \\'aiyed the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and'or Iead- based paint hazards. BROKERfAGEi'\T ACK-'\;O\\'LEDGDIEi'\T (initial) F. Broker'agent has infomled the seller of the scller's obhgations under 42 USe. 4S52d and is aware of his/her responsibihty to ensure compliance. CERTIFICATIO:-: OF ACCCRACY Thc following partics have rcviewcd the infomlation abo\.c and ccrtlfy, to thc best of their knowledge, that the information they ha,.e provided is truc and accurate. Scllcr Datc --.- ----- ..------ Purchascr Datc Purchascr Date Broker Agent Date 9/'16 CDC 1999-19 Attachment A Page 2 of 4 PART B SALES CO:'\TRACT LEAD-BASED PAI:'\T EVALUATION COt'\TIl'iGENCY This contract is contingent upon a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-based paint hazards at the Purchaser's expense until 12 noon on the 15th calendar day after acceptance, on [Insert date] This contingency will tem1inate at the abo\'e pn::dclcrmined deadline unless the Purchaser or Purchaser's agent delivers to the Seller or Seller's agent Part 0 of this addendum listing the specific lead-based paint hazards and corrections needed, together with a copy of thc inspection and/or risk assessment report. The Seller may, at the Seller's option, within five days after delivery of Part 0 of this Addendum, elect in writing whether to correct the hazards(s) prior to settlement. If the Seller will correct the hazard(s), the seller shall fumish the Purchaser with certi fication from a risk assessor or inspector demonstrating that the hazard(s) have been remedied before the date of the settlement. If the Seller docs not elect to make repairs, or if the Seller makes a counter-offer, the Purchaser shall ha\'e five days to respond to the counter offer or remove this contingency and take the property in i{s "as is" condition or this contract shall become void. The Purchaser may remove this contingency at any time without clause. INTACT LEAD-BASED PAII\T THAT IS II\ GOOD CONDITIOl'\ IS NOT NECESSARILY A HAZARD. See EPA pamphlet Protect Your Family Frolll Lead ill YOllr HOllie for more infom1ation. Lead-Based Paint Addendum to the Sales Contract - Property Built Before 1978, including ParI A, Disclosure of Illforlllatloll on Lt!ad-Based Paint alulior Lead Based Paint f{a:nrds. Part C. 0" 'lL'r-OCCL/pant Certiflcnlion (if applicable), and Part D. Purchaser's Addo!ndum 10 rhe Sales Comracr - Relo!ase of Lead.8asd P<1/1H Emlun/lOn Contillgency, if applicable, must also be completed and made a part of this Sales Contract. 9/96 CDC 1999-19 " Attachment ^ Page 3 of 4 PART C OWi\ER-OCCTPAi\T CERTIFICATIOi'\ TO BE CO\lPLETED B'{ ALL O\VNER-OCCUPANT PURCHASERS ONLY Check anJ complete the follo\\ ing, as appropnate: I/wc do not have a child under the agc of se\'Cn years. I!wc do ha\'e a chtld under the age of se\'cn years Their names and ages are as follo\\'s: Name :\gc Check onlY one of the following blocks if chi IJren under seven are indicated above: . - . _ I/we understJnd that within 15 days after acceptance by HVD of my/our offer to purchase, Vwe will at my/our expense, have each of the above-nJmed children tested for an elevated blooJ level (EBL) and that I/we will provide thesc tests to HUD. If I/we fail to provide the test results to HVD within the 15 day time frame, the contract \vill be canceled immediately without further notice. Further, I/wc understand that if an EBL condition is identified, Uwe have the option to: I) cancel this contract and receive our carnest money deposit back, or 2) complete the saJc of the property within the understanding that Uwe will, at a minimum, have the property tested for the presence of lead-based paint on all che\\'able surfaces and, where lcad-b3sed paint on che\\'able surfaces is identi fied, have such paint surfaces ab3ted. _ I/\ve fully understand th3t if a blood lead level screening program is not reasonably avai13ble or ifUwe refuse to have my/our child(ren) tested, I/we have the option of closing this sale, I/we hereby acknowledge that this property I/we am/are purchasing from the Department of Housing and Urban Development may contain lead-based paint. However, despite this possibility, lfwe elect to close the sale on this property, Further, I/vve agree to hold HUD harmless for this action. Signature of Purchaser Signature of Purchaser Date Signature of \Vitncss Date 9 I)(J CDe 1999-19 Auachment A Page 4 of 4 L\D BASED PAI:\T ADDE:\DL';\I TO SALES CO:\TRACT - PROPERTY BelL T BEFORE 1978 FilA CASE 1"0. PROPERTY ADDRESS: PART D PURCHASER'S ADDESDUAf TO THE SALES COiI/TRACT- RELEASE OF LEAD-BASED PAIST EVALUATlO,V CONTI,vCE.^:CY Ifp"rc/',1Scr 11I1II,,/t.J p"rl A. /I,m E 1 of/he LC<1d.R,'St'd Pullll AdJelld"fIIlu the Sules COlllrac/. {'ropem,'s R,,,f/ Bcj;;re 1978 (Add,'"dumJ. liltS PLlr, D mllst bl..' comp[...lt.:d as ShUU"/1 and pro\'idcd to the Sdh', on or btfore the duff.! shoh 11 in tilt' Addendum, Purt B. or rht.' cOII/wgt..tlC)' J$ fcr11lw..l:l..'d ~(purdrtlSt'r ulllla[ed Part A.. item E. '1 {!,l'n tIltS p..zrt D is wlnecc.\":fdry dll./ t;t'ed lid! /0 bt' complcred or prond,:d tv lhe Sdlt.., )'l'RClL-\SER'S ACK1\0\\1.EDGE;\IE;';T (check appropriate boxes) [ ] Purchaser acknowledges that he/she has received a 15 day opportunity (or other mutually agreed upon period) to conduct a risk assessment or lead-based paint inspection for the presence of lead-based paint and'or lead-based paint hazards, that such a risk assessment or lead-based paint inspection has been made. . [ ] Purchaser acknowledges that Seller is under no obligation to correct any lead-based paint and'or lead- based paint hazards identified by the lead-based paint inspection and/or risk assessment and hereby removes the contingency and accepts the property in its "as is" condition, without warranty, as described in item B, Conditions of Sale of the contract. [ J Purch:lser requests that Seller take the following action to correct the lead-based paint hazards noted: Lead-B:lsed Paint Il:1zard . Corrective Action Requested Purchaser has attached the risk assessment or inspection report If Seller refuses this request, Purchaser reserYes the right to continue WIth the purchJse or request cancdlation of the sales contract. [ ] Purchaser requests cancellation of the sales contract due to the following deficiencies indicated in the attached report(s), CERTlFICATIO:\ OF ACCURACY The following parties have reviewed the infomlation above and certIfy, to the best of their knowledge, that the information they have provided is true and accurate. Purchaser Date Purchaser Date Broker'Agent Date 9% CDC 1999-19 HUD UNIT PURCHASE AND SALE AGREEMENT Property Address: THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is dated for identification purposes only, as of , 199_, and is made and entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and (the "Participant"), with reference to the following: RECITALS A. WHEREAS, the Agency and the Secretary of Housing and Urban Development (the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition Program a copy of which is attached hereto as Exhibit "A" (the "HUD Contract") regarding sale by the Secretary to the Agency of that certain property commonly' known as San Bernardino, California (the "HUD Unit"). A legal description of the HUD Unit is attached hereto as Exhibit "8"; and B. WHEREAS, subj ect to the terms and conditions of that certain Acquisition, Rehabilitation and Resale (ARR) Agreement dated 1999 (the "ARR Agreement"), by and between the Participant and the Agency and this Agreement, Agency desires to sell the HUD Unit to the Participant and the Participant desires to purchase the HUD Unit from the Agency at the close of the "HUD Escrow" as set forth herein. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS: 1. Warranty of Author:i. ty by Part:i.c:i.pant. The Participant warrants that it is a under the laws of the State of California, and is authorized to execute this Agreement and all of the documents and instruments contemplated hereby, including, without limi ta tion, supplemental escrow instructions and the Acceptance of Agency Quitclaim Deed; and that this transaction has been approved by [resolution of its board of directors]. A certified copy of that [resolution] which remains in effect, will be delivered to Agency before the close of the HUD Escrow as set forth herein. SBEO/0001/DOC/3515 6/15/99 245 ct 1 l;]Jl; l'J'J'J-l'J CDe 1999-19 2. Agreement to Sell and to Purchase. Subject to the terms and conditions of this Agreement, the Agency agrees to sell and the Participant agrees to purchase the HUD Unit. 3. Purchase Price. The "Purchase Price" for the HUD Unit is the same sum in cash or immediately available funds in United States Currency as the discounted purchase price which the Agency has agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit. The Purchaser Price shall be payable by the Participant's delivery of the full amount to the escrow holder in cash or by wire transfer of immediately available funds at least one(l) business day before close of the HUD Escrow or by cashier's check during business hours at least three(3) business days before the close the HUD Escrow. 4. HUD Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees to pay all of the costs of the escrow holder in the HUD Escrow including all amounts charged to the account of the Secretary and the Agency. The escrow holder is hereby instructed tb collect such costs and charges from the Participant at the close of the HUD Escrow. 5. Conditions for the Benefit of the Agency. The obligation of the Agency to perform this Agreement is subject to the satisfaction of the following conditions, which are for the Agency's benefit only: (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract wi thin fifteen(15) days after the date hereof; (b) . .that the Secretary perfor~~nder the HUD Contract and the ti tle of the HUD Unit actually be transferred from HUD to the Agency within forty-five(45) days after the date hereof; (c) the Agency shall have received, satisfactory to the Executive Director, a the insurance required pursuant to Section in form and substance certificate evidencing 16 of this Agreement; (d) that the Participant has duly execute and deliver to the escrow holder, in recordable form the Acceptance of the Participant of the Agency Quitclaim Deed. (e) that the Participant not otherwise be in default under its other obligations to the Agency under the ARR Agreement. SBEOI0001/DOC/3515 6/15/99 245 ct 2 crrc "19lJlJ-=19 - " The conditions set forth above are for the Agency's benefit only and the Executive Director of the Agency (the "Executive DirectorU) may waive all or any part of such rights by written notice to the Participant and escrow holder. If any of said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Executive Director, the Agency may thereafter terminate this Agreement without any liability on the part of the Agency by giving written notice of termination to the escrow holder, with a copy to the Participant. Escrow holder shall thereupon, without further consent from the Participant, return to each party the documents, if any, deposited by them. 6. Conditions for Participant's Benefit. Participant to perform this Agreement satisfaction of the following conditions, Participant's benefit only: The obligation of is subj ect to which are for the the the (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen (15) days after the date hereof; and (b) HUD Uni t after the that the Secretary actually transfer date hereof. perform under the HUD Contract and the from HUD within forty-five (45) days The conditions set forth above are for the Participant's benefit only and the Participant may waive all or any part of such rights by written notice to the Agency and the escrow holder. If any said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Participant, subject to the approval of the Secretary and the Agency, the Participant may thereafter terminate this Agreement without any liability on the part of the Participant by giving written notice of termination to the escrow holder, with a copy to the Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each party the documents, if any, deposited by them. 7. Escrow. The transfer of the HUD Unit to the Participant shall be consummated through an escrow established with the escrow agent engaged by the Secretary to handle the transfer of the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a schedule coordinated with the closing or the transfer of the HUD Unit between the Secretary and the Agency under the HUD Contract. This Agreement shall constitute the escrow instructions to the escrow holder of the Participant and the Agency with respect to the HUD Unit. The Agency and the Participant shall execute such SBEO/0001/DOC/3515 6/15/99 245 ct 3 CDe 1999-19 additional escrow instructions as may be reasonably required by the escrow holder. 8. Term of Escrow. Escrow shall close concurrently with the close of escrow under the HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the County of San Bernardino, California. 9. Condition of Title. The Agency shall convey to the Participant by quitclaim deed all of the right, title and interest in the HUD Unit which the Agency receives from the Secretary under the HUD Contract. The form of the Agency Quitclaim Deed is attached hereto as Exhibit "C" and incorporated herein by this reference. 10 . Title Insurance. The Agency shall not be responsible for providing any title fnsurance to the Participant in connection with the transfer of title in the HUD Unit to the Participant. Any title insurance desired by the Participant shall be ordered and paid for by the Participant at its sole cost and expense. 11. Prorations. All assessments, including improvement assessments which are available for payment without interest or penalty for advance payment, taxes, rent, and ground rent, if any, shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently with the escrow under the HUD Contract, through which escrow such items will be prorated between the Secretary and the Agency, the parties acknowledge and agree that the Participant shall be charged for such prorations in precisely the same amount as the Agency is charged under the HUD Contract. 12. Escrow Closing Costs. The Participant shall pay all escrow closing costs of both parties, including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the Participant shall pay all closing costs and expenses charged to the Agency in the escrow by which HUD transfers the HUD Unit to the Participant. 13. Closing. At the Close of Escrow, (a) the Agency shall deliver to the Participant through escrow a the Agency Quitclaim Deed conveying the HUD Unit to the Participant, (b) the Participant shall deliver to the Agency through escrow the acceptance of the Agency Quitclaim Deed, and (c) the escrow holder shall collect and pay the SBEOI0001/DOC/3515 6/15/99 245 ct 4 CDC 1999-19 sums indicated for the transfer of the HUD Unit under the HUD Contract and this Agreement and deliver such other documents to the parties in accordance with the instructions of each of them. At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed to be recorded in the Official Records of the County of San Bernardino, California. 14. Condition of the Hun Unit. The Agency makes no representation or warranty to the Participant or to any third party concerning the condition of the HUD Unit, including, without limitation, mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and the Agency will make no repairs to the HUD Unit either before or after execution of this Agreement. The Participant understands that the Agency does not guarantee or warrant that the HUD Unit is free of visible or hidden structural defect, termite damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or otherwise usable. Participant acknowledges responsibility for 'taking such action and conducting such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit in the same condition delivered to the Agency by the Secretary, in an ~AS IS," ~WHERE IS" and "SUBJECT TO ALL FAULTS" condition. 15. Possession: Repairs. The Participant may not perform repairs nor take possession of the HUD Unit until the escrow is closed. At the close of the HUD Escrow, the Participant may take possession of the HUD Unit and promptly commence the work of rehabilitation as required for the HUD Unit under the ARR Agreement. 16. Insurance. Prior to the Close of Escrow, the Participant shall obtain and shall thereafter maintain in full force and effect at all times a broad-form comprehensive general liability policy with a limit of not less than $1,000,000.00. Such insurance shall provide for a 30-day notice to the Agency before cancellation of the policy and shall name the Agency as an additional insured as to claims arising out of the work to be performed on the HUD Unit following the Close of Escrow pursuant to the ARR Agreement. 17. Assignment. The Participant and the Agency each agree that this Agreement shall be binding upon their respective, heirs, executors, administrators, successors or assigns and is not assignable by the Participant unless the written consent of the Executive Director is first obtained, which consent the Executive Director may withhold in his or her sole ,and absolute discretion. SBEO/0001/DOC/3515 6/15/99 245 ct 5 CDC 1999-19 18. Notices. All notices, demands and requests which may be given by either party to the other or to the escrow holder shall be in writing and shall be deemed to be given upon personal delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt requested, postage prepaid, addressed to the party to be notified at the address following the party's signature or if addressed to the escrow holder, at the address set forth in the supplemental escrow instruments signed by the parties. Either party may designate by written notice to the other party in the manner set forth in this Agreement another address for notice. 19. Miscellaneous Provisions. 19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to enforce, any provision of this Agreement shall not be a waiver of any further breach of such provision hereof. The waiver by either or both parties of the time for performing an act shall not be a waiver of the time for performing any other act or acts required hereunder. 19.2 Modifications. No change or addition to this Agreement or any part hereof shall be valid unless in writing and signed by each of the parties. 19.3 Governing Law. California law. This Agreement shall be governed by 19.4 Headings. The headings in this Agreement" are for convenience only and shall not be used to interpret this Agreement. 19.5 Further Acts. Each party agrees to take such further action and to execute and deliver such further documents as may be necessary to carry out the purposes of the ARR Agreement with respect to the HUD Unit and this Agreement. 19.6 Attorneys' Fees. If either party incurs attorneys' fees to enforce this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees as set by the court from the other party. 19.7 No Real Estate Brokers Commission Payable By the Agency. The Agency shall not be responsible for the payment of any real estate brokers commission or finders fee in connection with the escrow or the transfer of the HUD Unit to the Participant. SBEO/0001/DOC/3515 6/15/99 245 ct 6 CDe 1999-19 19.8 Time. Agreement. Time is of the essence with respect to this IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director PARTICIPANT By: Its: By: Its: SBEO/0001/DOC/3515 6/15/99 245 ct 7 CDC 1999-19 [address of Participant under the ARR Agreement] ) ) ) ) ) ) ) ) ) ) ) (Space above line reserved for use by Recorder) RECORDING REQUESTED BY Redevelopment.Agency of the City pf San Bernardino AND WHEN RECORDED MAIL PROPERTY TAX BILL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO QUITCLAIM DEED OF A PUBLIC AGENCY AND 'COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS [ARR Program: (Name of Grantee/Participant)] PART A THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS. (the "Quitclaim Deed") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") in certain real property situated at , San Bernardino, California (the "Property") to , (the "Participant"), subj ect to the community redevelopment affordable single family housing conditions, covenants and restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the community redevelopment affordable single family housing conditions, covenants and restrictions of-this Quitclaim Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 1 of 7 CDe 1999-19 (-- The Property--) on Official Records of the Office of San Bernardino County. file in the of the Recorder PART B The quitclaim of the Property by the Agency to the Participant is expressly subject to the satisfaction of the following community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain Acquisition, Rehabilitation, Resa"le Agreement dated (the "ARR Agreement") by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty-five (25) years commencing on the date of recordation of this Quitclaim Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated for occupancy only to a "person" or a "family" who is a "Qualified Homebuyer" for a term of the shorter period of either: (i) twenty-five (25) years from the date of recordation of this Quitclaim Deed; or (ii) the term, as provided in the ARR Agreement Covenant described in subparagraph 3, below. The words "Qualified Homebuyer" refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first-time homebuyer," as defined in Health and Safety Code Section 50068.5, and whose annual income during the twelve (12) months preceding the date of initial occupancy of the Property by the Qualified Homebuyer does not exceed the income qualification limits for "lower income households", as defined in Health and Safety Code Section 50079.5 (Statutes of 1979: Chapter 96). Health and Safety Code Section 50079.5 provides: "'Lower Income households' means persons and families whose income does not exceed the qualifying limits for lower income SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 2 of 7 CDC 1999-19 families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. As used in this section, 'area median income' means the median family income of a geographic area of the state." 3. As a corrdition precedent to any transfer, sale, conveyance, grant or other hypothecation by the Participant of the Property to a Qualified Homebuyer the "Acquisition, Rehabilitation Resale Affordability Use and Occupancy Covenant" (the "ARR Covenant"), substantially in the form attached hereto as Exhibit "A-I" or Exhibit "A-2," as applicable and as incorporated herein by this reference shall be fully executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The final form of the ARR Covenant shall be consistent with the terms and conditions ot the ARR Agreement as applicable to the Qualified Homeb.uyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the ARR Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the ARR Covenant shall be a separate community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and assign of the Qualified Homebuyer for the term as provided in the ARR Covenant. 4. Prior to the recordation of the ARR Covenant as provided in subparagraph 3 of PART B of this Quitclaim Deed, the Property shall not be offered for sale or sold to a Qualified Homebuyer for a sale price which exceeds more than Dollars ($ ) , exclusive of customary and reasonable "escrow" and sales SBEO/0001/00C/3513.1 6/15/99 1200 ct Page 3 of 7 CDC 1999-19 transactional costs which may be normally allocated to a Qualified Homebuyer by an owner-builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of PART B of the Quitclaim Deed shall have no further force or effect upon the property after the date of the complete execution and recordation of the ARR Covenant. 5. The Property shall be subject to the following affordable housing redevelopment covenant in perpetuity and the text which appears in this Quitclaim Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure .or enj oyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PART C During the term of subparagraph 2 of PART B, but prior to the recordation of a fully-executed copy of the ARR Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales and ancillary business activity on the Property associated with the improvement and sale by the Developer, pursuant to the ARR Agreement, of an affordable single family dwelling unit on the Property prior a Qualified Homebuyer. The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the ARR Covenant. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 4 of 7 CDC 1999-19 PART D The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an increase, improvement and preservation of the communi ty' s supply of low- and moderate-income housing. The transfer of the Property by the Agency to the Developer for this purpose and the recordation of this Quitclaim Deed is authorized by Health and Safety Code Sections 33334.2 and 33334.3, and other applicable law and actions of the Agency, including without limitation, the ARR Agreement. PART E Upon the delivery of this Quitclaim Deed to the Participant, the community redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by either the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(f) (2) against the Participant and each successor in interest or assignee of the Participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 5 of 7 CDC 1999-19 THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized signatures of the Executive Director of the Agency. AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic Dated: By: Executive Director Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] [NOTE: Exhibit "A-l" MAP Assistance) General Form of ARR Covenant (Agency Exhibit "A-2" Program) ] General Form of ARR Covenant (HOME SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 6 of 7 CDe 1999-19 ACCEPTANCE OF QUITCLAIM DEED AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT (the "Participant"), hereby accepts the delivery of the instrument identified above as the "Quitclaim Deed of a Public Agency and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Quitclaim Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San BernardinQ, subject to the conditions, covenants and restrictions contained in the Quitclaim Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property.to be improved and rehabilitated as set forth in the ARR Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Quitclaim Deed which touch and concern the Property and are community redevelopment covenants which run with the land. PARTICIPANT Dated: By Its: By: Its [NOTARY JURAT ATTACHED] SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 7 of 7 . " CDC 1999-19 ," RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of San Bernardino 201 North "En Street, Suite 301 San Bernardino, CA 92401 Attn: Executive Director (Space Above Line Reserved For Use By Recorder) RECORDATION OF THI$ INSTRUMENT IS EXEMPT FROM ALL FEES AND TAXES REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS FOR THE ARR PROGRAM (Name of Oualified Homebuyer) Dated as of , 200 ---ARR PROGRAM: [NAME OF DEVELOPER/PARTICIPANT1--- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ................ J"'n^1 /"r\,.../"c:.1 A ?t.,nn CDe 1999-19 COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS (FOR THE ARR PROGRAM) THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS, (the "ARR Covenant") is made and entered into as of , 200 , by and among (the "Participant"), the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency"), and (the "Qualified Homebuyer"), and this ARR Covenant relates to the following facts set forth in Recitals. R E C I TAL S A. The Qualified Homebuyer proposes to acquire a single family residence (the "New Home"), located within the City of San Bernardino (the "City"), from the Participant, to be owned and occupied by the Qualified Homebuyer as their principal residence. The legal description of the New Home is attached hereto as Exhibit "A" and incorporated herein by this reference. B. The Agency has made this property on which the New Home is situated available to the Participant for the purposes as set forth under that certain Aquisition, Rehabilitation Resale (ARR) Agreement dated as of (the "ARR Agreement") in order to make the New Home available for acquisition by the Qualified Homebuyer from the Participant subject to the terms and conditions of this ARR Covenant; and C. The terms of the ARR Agreement mandate that the acquisition, use and occupancy of the New Home shall be restricted in certain respects for the term as provided herein (the "Qualified Residence Period") in order to ensure that the New Home will be used and occupied in accordance with the ARR Agreement and the affordable single family residential dwelling unit development goals and objectives of the Agency. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 1 CDC 1999-19 " NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTHHEREINi AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, THE PARTICIPANT AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. Covenant, the following words and terms shall provided in the Recitals or in this Section 1 context of usage of a particular word or require: As used in this ARR have the meaning as unless the specific term may otherwise Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for family size) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167(k) 3b)(3) under the Code, as adjusted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 50052.5. At the time of the close of the New Home Escrow, or later when a proposed Successor-In-Interest acquires the new home the amount of the maximum Affordable Housing Cost payable in connection with the acquisition of the New Home at any time during the Qualified Residence Period shall be calculated as set forth in Health and Safety Code 50053.5(b) (1) or (2), as applicable. Code. The word "Code" means the Internal Revenue Code of 1986, as amended, and any regulation, rulings or procedures with respect thereto. Delivery Date. The words "Delivery Date" mean the date of delivery of title and possession of the New Home from the Participant to the Qualified Homebuyer at the close of the New Home Escrow. Lower-Income Household The words "Lower Income Household" mean persons and families whose income does not exceed the qualifying limits for lower income families as established and amended form time to time pursuant to Section 8 of the United States Housing Act of SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 2 CDC 1999-19 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Sectretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the .state at 80 percent of area median income, adjsuted for family size and revised annually. As used in this section, "area median incomeH means the median family income of a geographic area of the state. New Home. The words "New HomeH mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as rehabilitated and completed by the Participant and sold to the Qualified Homebuyer. New Home Escrow. The words "New Home EscrowH mean and refer to the real e~tate conveyance transaction or escrow by and between the Participant and the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In- Interest). The transfer of the New Home from the Participant to the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. Notice of Agency Concurrence. The words "Notice of Agency ConcurrenceH mean and refer to the acknowledgment in recordable form in which the Agency confirms that the proposed Successor-In-Interest of the Qualified Homebuyer satisfies all of the Adjusted Family Income and other requirements of this ARR Covenant for occupancy of the New Home by the Successor- In-Interest at any time during the Qualified Residence Period. Qualified Homebuyer. The words "Qualified HomebuyerH mean the purchaser of the New Home from the Developer (e. g. : all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Homebuyer shall: (i) have an annual Adjusted Family Income which does not exceed the household income qualification limits of a Lower-Income Household: (ii) shall be a first- time homebuyer, as this term is defined in Health and Safety Code Section 50068.5; and (iii)pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, including all sums SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 3 CDe 1999-19 payable by the Qualified Homebuyer for its purchase money mortgage financing, insurance, escrow and other fees and costs. Qualified Residence Period. The words "Qualified Residence periodN mean the period of time beginning on the Delivery Date and ending on the date which is ten (10) years after the Delivery Date. ARR Covenant. The words "ARR CovenantN mean these Redevelopment Agency of the City of San Bernardino Community Redevelopment Housing Affordability Covenants and Restrictions by and among the Qualified Homebuyer, the Participant and the Agency pertaining to the New Home. Successor-In-Interest. The words "Successor-In-InterestN mean and refer to the person, family or household which may acquire the New Home from the Qualified Homebuyer at any time during the Qualified Residence Period by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a "first-time homebuyerN and shall have an income level for the twelve (12) months prior to the date on which the Successor- In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for a Lower-Income Household. Upon acquisition of the New Home the Successor- In-Interest shall be bound by each of the covenants, conditions and restrictions of this ARR Covenant. The titles and headings of the sections of this ARR Covenant have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict the meaning any of the terms or provisions hereof. Section 2. Acknowledgments and Representations of the Oualified Homebuyer. The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery Date: (a) the total household income for the Qualified Homebuyer does not exceed the maximum amount permitted as Adjusted Family Income for a Lower-Income Household, adjusted for family size; (b) the Qualified Homebuyer intends to promptly occupy the New Home after the Delivery Date as the principal place of residence for a term of at least two (2) years following the Delivery Date and the Qualified Homebuyer has not entered into any arrangement and has no present intention to rent, sell, transfer or assign the New Home to any third party during the Qualified SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 4 CDe 1999-19 Residence Period so as to frustrate the purpose of this Section 33334.3 Covenant; (c) the Qualified Homebuyer has no present intention to lease or rent any room or sublet or rent a portion of the New Home to any relative of the Qualified Homebuyer or to any third person at any time during the Qualified Residence Period; (d) the sum payable each month by the Qualified Homebuyer following the close of the New Home Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Home does not exceed the Affordable Housing Cost for the household; (e) the Qualified Homebuyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax returns filed by all persons who reside in the New Home for the calendar year preceding the close of the New Home Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all person residing in the New Home at the close of the New Home Escrow; (f) The Qualified Homebuyer has been informed by the Participant that this ARR Covenant imposes certain restrictions on the use and occupancy of the New Home during the term of this Section ARR Covenant and that this ARR Covenant imposes certain restrictions on the resale of.the New Home during t~e Qualified Residence Period. The Qualified Homebuyer acknowledges and understands that these restrictions shall be applicable to the New Home and to any resale of the New Home from the Delivery Date to the end of the Qualified Residence Period which is , 201 Dated: Initials of Qualified Homebuyer Section 3. Covenant of the Qualified Homebuyer to Maintain Affordability of the New Home During the Qualified Residence Period and Covenant Relating to Sale or Transfer of the New Home During the Qualified Residence Period to a Succ~ssor-In-Interest. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 5 CDC 1999-19 (a) The Qualified Homebuyer for itself, its heirs, successors. and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the New Home shall be used and, occupied by the Qualified Homebuyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or for another Lower-Income Household as a Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as provided in this Section 3 to verify that each proposed Successor-In-Interest of the Qualified Homebuyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of a Lower- Income Household (based upon the Adjusted Family Income of each household), and that the completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the "Notice of Agency Concurrenceu as provided in Section 3 (d) . (b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any interest therein) to a Successor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least sixty (60) days prior to the date on which the Qualified Homebuyer proposes to transfer title in the New Home to a Successor-In-Interest, the Qualified Homebuyer shall send a written notice to the Agency as provided in Section 17 of the intention of the Qualified Homebuyer to sell the New Home to a Successor-In-Interest which includes the following true and correct information: (i) name of the proposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); (ii) copies of State and federal income tax returns for the Successor-In-Interest for the calendar year preceding the year in which the notice of intention to sell the New Home is given to the Agency; (iii) resale price of the New Home payable by the Successor-In-Interest, ~ncluding the terms of all purchase money mortgage financing to be assumed, SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 6 CDe 1999-19 provided or obtained by the Successor-In- Interest, escrow costs and charges, realtor broker fees and all other resale costs or charges payable by either the Qualified Homebuyer or the Successor-In-Interest; (iv) name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Homebuyer to the Successor-In-Interest; (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such reference; and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c). (c) Within twenty (20) days following receipt of the notice of intention described in Section 3(b), the Agency shall provide the Qualified Homebuyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In- Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adj usted Family Income and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) has been provided to the Agency. In the event that the Agency may request additional information relating to the. confirmation of the matters described in Section 3(b), the Qualified Homebuyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Home, the Agency shall deliver a written acknowledgment and approval of the resale of the New Home to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3(b) (iv) above, and thereafter the Successor-In-Interest may acquire the New Home subject to the satisfaction of the following conditions: (i) the recordation of the Notice of Agency Concurrence executed by the Successor-In-Interest and the Agency at the close of the resale escrow; SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 7 CDC 1999-19 (ii) the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Homebuyer and the final escrow closing statement for the Successor-In-Interest; and (iii) the other conditions established by the Successor-In-Interest of the resale escrow as Qualified Homebuyer and shall have been satisfied. (e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants and agrees that during the Qualified Residence Period the New Horne shall not be leased, subleased, or rented to any third person, except for a temporary period (not to exceed 12 months) in the event of an emergency or other unforseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Homebuyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event wi thin not more than (60) days following the commencement of a temporary rental occupancy of the New Horne by a third party, which notice shall set forth the grounds on which the Qualified Homebuyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. Section 4. Maintenance Condition of the New Horne. The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that: (a) The exterior areas of the New Horne which are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the term of the Qualified Residence Period, there is an occurrence of an adverse condition on any area of the New Horne which is subj ect to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Qualified Homebuyer in writing of the Maintenance Deficiency and give the Qualified Homebuyer thirty (30) days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiency" include without limi tat ion the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property use restrictions: SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 8 CDe 1999-19 failure to properly maintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of wed and debris; parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on"any other parts of the property which are not covered by a paved and impermeable surface; the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Home. In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Homebuyer ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has failed to comply with the provision of this Section 4(a). If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Home (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c). SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 9 CDe 1999-19 (b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the New Home shall be removed by the Qualified Homebuyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the New Home (exterior areas only) and such graffiti is visible from an adj acent or contiguous public right-of-way and thereafter such graffiti is not removed within 72 hours following the time of its application; then in such event and without notice to the Qualified Homebuyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Section 4(b) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4(a) or Section 4(b), including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. In any legal proceeding for enforcing such a lien against the New Home, the prevailing path shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4, shall be a covenant running with the land for the Qualified Residence Period and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable law. Nothing in the foregoing provisions of this Section 4 shall be deemed to preclude the Qualified Homebuyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 10 CDe 1999-19 Section 5. [RESERVED/NO TEXT] Section 6. [RESERVED/NO TEXT] Section 7. Foreclosure of Purchase Money Mortgage Loan and Agency Right of First Refusal. (a) During the Qualified Residence Period the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Home at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period the Agency shall have the right of first refusal to purchase the New Home from the Qualified Homebuyer on the same terms which the Qualified Homebuyer may propose to offer the New Home for resale to a Success-In- Interest. The Agency must exercise such a right of first refusal within thirty (30) days following written notification of the intention of the Qualified Homebuyer to resell the New Home, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Homebuyer and close an escrow for the transfer of the New Home to the Agency within sixty (60) days following written notification of the intention of the Qualified Homebuyer to resell the New House. Section 8. Covenants to Run With the Land. The Participant, the Agency and the Qualified Homebuyer hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a common plan for the rehabilitation of affordable single family housing improvements within the territorial jurisdiction of the Agency and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Home and each Successor-In-Interest of the Qualified Homebuyer in the New Home for the term provided in Section 10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this ARR Covenant. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Home or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 11 CDC 1999-19 and restrictions are set forth in such contract, deed or other instrument. Section 9. Burden and Benefit. The Participant, the Agency and the Qualified Homebuyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Homebuyer's legal interest in the New Home is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Homebuyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Home by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable single family housing development goals and objectives of the Agency and in order to make the New Home available for acquisition and occupancy by the Qualified Homebuyer. Section 10. Term. This ARR Covenant shall apply to the New Home and the Qualified Homebuyer and to each Successor-In-Interest as of the Delivery Date for the Qualified Residence Period -- e.g.: this ARR Covenant shall remain in full force and effect for ten (10) years after the Delivery Date. Any provision or section hereof, may be terminated after the Delivery Date upon agreement by the Agency and the Qualified Homebuyer (or the Successor-In- Interest in the New Home), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in its reasonable discretion will not adversely affect the affordable single family housing and development goals of the Agency. Section 11. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Homebuyer to honor or perform any material term or provision of this ARR Covenant shall constitute a breach under this Agreement; provided however, that if the Qualified Homebuyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days after the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Homebuyer written notice of breach specifying the alleged breach which if uncured by the Qualified Homebuyer within thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 12 CDe 1999-19 shall not constitute a waiver of any breach or event of default nor shall it change the time of breach or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 11. Except with respect to rights and remedies expressly declared to be exclusive in this ARR Covenant, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Homebuyer may remain incurred for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 as related to a Maintenance Deficiency at the New Home, upon the occurrence .of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Qualified Homebuyer to .perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (ii) by other action at law or in or convenient to enforce covenants and agreements Homebuyer to the Agency. equity as necessary the obligations, of the Qualified (b) No third party shall have any right or power to enforce any provision of this ARR Covenant on behalf of- the Agency or to compel the Agency to enforce any provision of this ARR Covenant against the Qualified Homebuyer on the New Home. Section 12. Governing Law. This Section 33334.3 Covenant shall be governed by the laws of the State of California. Section 13. Amendment. This ARR Covenant may be amended after the Delivery Date only by a written instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as applicable) and by the Agency. The Participant shall have not any SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 13 CDC 1999-19 " right or power to approve any such amendment to this ARR Covenant, and the execution by the Participant of any such amendment after the Delivery Date shall not be required. Section 14. Attorney's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this ARR Covenant or otherwise arising out of this ARR Covenant, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 15. Severabili ty. I f any provision of this ARR Covenant shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this ARR Covenant which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Section 16. Time is of the Essence. For each provision of this ARR Covenant which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 17. Notice. Any notice required to be given under this ARR Covenant shall be given by the Agency or by the Qualified Homebuyer, as applicable, by personal delivery or by First Class Uni ted States mail at the addresses specified below or at such otheri address as may be specified in writing by the parties hereto: If to the Agency: Executive Director Redevelopment 'Agency of the City of San Bernardino 201 North "En Street, Suite 301 San Bernardino, CA 92401 Phone: (909) 384-5081 If to the Qualified Homebuyer: Attn: Phone: Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personally delivered, when received SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 14 CDC 1999-19 by the Executive Director of the Agency or the Qualified Homebuyer, as applicable. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 15 CDe 1999-19 ,. IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer and the Agency have caused this Covenant to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this ARR Covenant is authorized under Health and Safety Code Section 33334.3(g). QUALIFIED HOMEBUYER Dated: By: By: PARTICIPANT By: Dated: AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director [ALL SIGNATURES MUST BE NOTARIZED] Approved as to Form: By: Agency Counsel SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 16 CDC 1999-19 EXHIBIT "A" Legal Description of the New Home SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 17 CDe 1999-19 " ,EXHIBIT "E" 1999 ARR AGREEMENT "ARR Rehabilitation Standards for Each HUD Units" CDe 1999-19 ARR REHABILITATION STANDARDS I. GENERAL DESCRIPTION The Participant will acquire HUD Units and cause the rehabilitation and resale of the housing thereon. II. REHABILITATION STANDARDS All of the improvements to be provided by the Participant on the HUD Units constitute the "Project". The Project shall be developed in accordance with applicable building and safety codes. III. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Project Site, and the suitability of the Project Site. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Project Site entirely suitable for such development. Participant has undertaken all investigation of the Project Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the rehabilitation of the project. IV. AMENITIES Each HUD Unit shall have full amenities and shall include the following: front yard landscaping and automatic sprinklers, side and rear yard fencing. . V. REHABILITATION STANDARDS Rehabilitation Standards shall include Section 8 Housing Quality Standard (HQS) Minimums and are not limited to: 1. Interior work to make structures more livable, such as, plastering, painting, new subflooring and tile work. 2. Repair, restoration or replacement of important parts of structures, such as, heating systems, plumbing systems, electrical components, kitchen appliances (stoves, refrigerator). 3. Installation of water/energy conservation devices. 4. Installation of security devices. 1 \\EDA_SAN BERDQ\PUBLlC\Forms\AR.R Program\ARR Rehabilitation Sundarcb.doc CDC 1999-19 5. Wheelchair ramps, kitchen and/or bathrpom modifications related to a disability of a household member. The following list contains some of the typical repair items and replacement activities: 6. Replacement of plumbing fixtures. 7. Addition of electrical outlets and/or wiring. 8. Insulation. 9. Replacement of roof. 10. Repair and/or enlargement of inadequate kitchen and/or bathroom. 11. Repair/replacement offurnaces and air conditioners. 12. Plaster and dry rot repair. 13. Repair/replacement of porches, steps, fences and walkways. 14. Termite, rodent or vermin fumigation. 15. Addition of closets or other minor built-ins. 16. Chimney repair/replacement. 17. Repair/replacement of railing. 18. Repair/replacement of windows and doors. 19. New ceilings. 20. Weather stripping for windows and doors. 21. Repair/replacement/addition of gutters and down spouts. 22. Repair/replacement of exterior trim. 23. Repair/replacement of stucco (wrap & stucco of wood siding structures). 24. Repair offoundation, structural repair. 25. Replacement of existing toilets, tub and shower, lavatories (cabinets). 26. Carpeting and other flooring. All other items are optional, per agreement, between contractor and buyer. 2 \\EDA_SAN BEROO\PUBLlC\Forms\ARR Program\ARR Rehabilitation Standards.OOc CDe 1999-19 EXHIBIT "F" 1999 ARR AGREEMENT "HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents" CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM (MAP) ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM Date: Property Address: Borrower(s): MAP Amount: FIRST TIME HOME BUYER PROGRAM - MAP CHECKLIST Step 1., For.Reservatioflof Funds Letter by EDA Latest Tax Return (1040's) and 2 Current Pay Stubs . Application Affidavit - Signed by Borrower Verification for Applicant Eligibility (Completed by Lender) Preliminary Escrow Instructions o o o o Stl'lp2,:FptEDA"toRequestfor MAP Check - Request for funds Complete Demand for Funds Letter 0 Submit MAP Docs (Loan Agreement, Deed of Trust, Promissory Note, CC & Rs) 0 Seifer (ARR Contractor) must calf EDA Inspector for a Final Inspection (10 days prior to close of escrow) Step .3- ,For .EDA to Release MAP Check to EscroW.;-.' . ,,i.;. ", c,: ,'; ( Final Escrow Documents (Includes Amendments) 0 First Time Home Buyers Class Certificate 0 Lender Representative: \~SAN BERDO'PUBLlC'Fonns'Map-ARR\MAP.check Ust.doc J)2J1t1ODMP CDC 1999-19 City of San Bernardino . ECONOMIC DEVELOPMENT AGENCY ACQUISITION, REHABILITATION AND RESALE PROGRAM (ARR) AND MORTGAGE ASSISTANCE PROGRAM (MAP) VERIFICATION FOR APPLICANT ELIGIBILITY . Redevelopment . Community Development . Housing . Business: . Recruitment . Retention . Revitalization . Main Street, Inc. Phone Number Household Size # of Minor Children Zip Code Name of Applicant Current Address Property Address to be Purchased City/State San Bernardino, California Name of Lender Contact Person Loan Number Phone Number Fax Number *Annual & Monthly Income (See Below) $ Near $ /Month Income used by the lender to qualify for the loan, if different than annual income of application. $ Near $ !Month Monthly Consumer Debt $ !Month Max Loan Amount $ Principal & Interest $ !Month Sales Price $ Est. Property Taxes $ !Month Buyer Down $ ($500 Min.) Est. Insurance $ !Month Map Amount $ Mort. Ins (If Applicable) $ !Month TYPE OF LOAN DFNMA 0 FHA 0 Other Total PITI $ !Month Debt-to-Income Ratios as Calculated by Lender: Housing Costs % TotalDe~ % Terms of Loan Interest Rate # of Years o Fixed Nole: Yariable Loans are l"ol Permitted. Check Applicable 50% or less 0 51 % - 80% 0 81%- II5%O "Note: III order to qualify for the MAP your ill come may Ilot exceed the followillg: LenderlEscrow Representative - Signature Date Signature of Applicant Date Signature of Applicant Date 201 North E Street, Suite 301' San Bernardino, California 92401-1507' (909) 384-5081' FAX (909) 888-9413 CDe 1999-19 HOUSEHOLD SIZE 1999 Income Level I 2 3 4 5 6 7 8 Very Low (50%) $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Lower (80%)* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Median (100%) $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 Moderate (120%)** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 * The maximum income level for MAP assistance under federal HOME. Under MAP HOME - property value at the time of sales must not exceed 95% of the County's median purchase price. ** The maximum income level for MAP assistance under State Redevelopment Law. Under MAP State Redevelopment Law the affordable housing costs apply (Complete Housing Affordability Worksheet) PLEASE CHECK THE FOLLOWING o Sr. Citizen(s) - 62 or Older o Black o American Indian o Female Head of Household o Hispanic o White o Disabled One or More o Other o Asian or Pacific Islander ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGIBILITY FOR MAP IS THE SOLE RESPONSIBILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. ANY QUESTIONS CALL (909) 384-5081. P:\Fonns'Mortgagc Assistance\MAP.Applicant Eligibility.doc (Revised 7199) CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM ACQUISITION/REHABILIT A TION & RESALE PROGRAM APPLICATION AFFIDAVIT NOTE: ALL BLANKS ON THIS FORM MUST BE COMPLETED! THERE ARE IMPORT ANT LEGAL CONSEOUENCES TO THIS AFFIDAVIT: READ IT CAREFULLY BEFORE SIGNING. 1. I (we) the undersigned, as part of my (our) application for Acquisition, Rehab, Resale (A.R.R.) and Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of San Bernardino, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we), being first duly sworn, state the following: I (we) certify that the following are: a. My'(our) legal Name(s): b. Social Security # c. Current residences: d. Telephone # The Unit (the "Residence") being purchased is a single-family home located in the City of San Bernardino at the following address: 2. I (we) certify that my (our) current gross annual household income, including income of all adult persons intending to occupy the Residence, is $ . I (we) understand that I (we) am (are) not eligible for a ARR- MAP unless my (our) gross annual household income does not exceed 80% of the median income for San Bernardino, and as specifically set forth in the Verification of Applicant Eligibility form. 3. I (we) certify that the Residence will be occupied and used as my (our) principal place of residence within forty-five (45) days after the date the ARR-MAP loan has closed. I (we) certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not more than fifteen percent (15) of the area of the Residence will be used in a trade or business. I (we) certify that I (we) will notify the Agency in writing if the Residence ceases to be my (our) principal Residence. Failure to occupy the Residence will result in the Agency accelerating the repayment of the Agency ARR-MAP Loan. 4. If the loan application is for a loan on a newly constructed home, I (we) certify that the Residence has not and will not be occupied prior to loan commitment from the Agency. CDC 1999-19 5. I (we) understand that I (we) am (are) not eligible for a ARR-MAP from the Agency under this program if! (we) individually or together had a present ownership interest in a principal residence within three (3) years prior to date of application. I (we) also understand that I (we) cannot have an ownership interest in a principal residence between the date of application and closing. For this purpose, a principal residence includes a single family residence, condominium, share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law), or occupancy in a multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by any means, whether outright or partial, including property subject to mortgage or other security interest. An ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy by the entirety, or a life estate interest. I (we) certify that I (we) have listed below all places of residence, whether owned or not, for a three-year period from date of application. 6. Previous Address: (Past Three Years) Address of Residence Owned Rented Other BeginninglEnding Date of Residency From: End: All answers of "Other" must be fully eXplained; use additional paper if necessary. 7. Name, address and telephone of the owner/landlord who can verify each residence listed above which was not owned by the applicant. Landlord Name Address Telephone No. 8. I (we) certify that the total purchase price of the Residence and land, including all construction items, all commissions, all builder's fees, hook-up and tap-in fees, permits, architectural fees, all site improvements, discount points paid by the seller, work credit, subcontracted items, or construction loan interest, but excluding any closing costs and other permanent financing charges will not exceed the purchase price limitation applicable to the Residence below: Maximum Sales Price (Single Family Unit) $150,000. 9. I (we) further certify that no other agreement, either verbal or written is presently contemplated for the completion of the purchase of the Residence. 10. I (we) further certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified mortgage bond or a qualified veteran's mortgage bond. No person related to me (as defined in CDC 1999-19 applicable federal or state laws and regulations) has or is expected to have an interest as a creditor in the Mortgage loan being acquired for the Residence. 11. I (we) understand and agree that if a ARR-MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 12. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the ARR-MAP guidelines. 13. I (we) understand that the decision to make a first mortgage loan is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan. 14. I (we) cannot close my (our) loan prior to receiving a ARR-MAP loan approval. 15. I (we) acknowledge and understand that this Application Affidavit will be relied upon for the purpose of determining my (our) eligibility for a ARR-MAP. (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me (us) in connection with an application for a ARR-MAP may constitute a federal violation punishable by a fine and/or denial of my (our) application for a ARR-MAP loan. Ifa ARR- MAP loan commitment has been issued prior to discovery of the false statement, immediate cancellation of the ARR-MAP will occur which will be in addition to any criminal penalty imposed by law. Dated: Signature of Applicant(s) Dated: Signature of Applicant(s) P:\Fonns\Mortgage Assistance\MAP.Applicalion Affidavit.doc CDe 1999-19 FIRST TIME HOME BUYER MORTGAGE ASSISTANCE PROGRAM DISCLOSURE STATEMENT IfWe (Participant) understand and agree that the provision of financial assistance from the Redevelopment Agency of the City of San Bernardino (the "Agency") under the First Time Home Buyer Mortgage Assistance Program (the "Program") is conditioned on a number off actors, including, but not limited to (all terms not otherwise defined herein shall have the meaning provided in the Loan Agreement by and between the Agency and the Participant): . IfWe must find a single-family detached home within the City of San Bernardino which IfWe can afford (the "Property"). . I/We must qualify for a home loan from an institutional lender acceptable to the Agency. . IfWe must qualify for assistance under the guidelines of the Program. . IfWe must not have owned any interest in any residential real property during the past three (3) years. IfW e further understand and agree that: I/We will be responsible for repaying the amount of the Note. The Note will be due and payable upon: (i) the sale of the Property, (ii) the transfer of any interest in the Property, (iii) refinancing of any lien or encumbrance to which the Agency Deed of Trust is subordinate, or (iv) IfWe are no longer an occupant of the Property or are in default of any obligation under the Loan Agreement. · I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the Agreement is signed by sending a notice of my/our decision to rescind or cancel the Agency Loan to: Redevelopment Agency of the City of San Bernardino Housing Division 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 Attn: Housing Division Manager · An appraisal fee may be payable upon the following: (i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) IfWe no longer occupy the Property, or (iv) I/We are/am in default of any provision of the Loan Agreement. . The Agency shall not be held responsible for any costs associated with the home I/We 1 \\EDA_SAN BERDO\PUBLlClFonnslMortsase Assistance\2-MAP-DISCLOSURE.doc CDC 1999-19 purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of the Property. · The Agency cannot ensure that information provided by or on my/our behalf will be confidential. · The Agency shall not be responsible for the selection of a home, the selection of a lender providing funds assisting in the purchase of the home, provide information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/We assume all responsibility for determining whether I/We will inform myself/ourselves as to the availability and terms of other public or private loans. · The Agency shall not be charged with the knowledge of the contents of the ocuments of the lender. DATED 19 DATED 19_ DATED 19_ 2 \\EDA_ SAN BERDOIPUBLlClFormslMortgage Assislanccl2-MAP-DISCLOSURE.doc CDe 1999-19 13 of 8 ACQUISITION, REHABILITATION RESALE (ARR) AGREEMENT By and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO And ACQUISITI~~~ft!~fl~~~xtE (ARR) ("ARR Participant") CDC 1999-19 TABLE OF CONTENTS I. [100] SUBJECT OF AGREEMENT .................................................................................. 2 A. [101] Purpose of Agreement......................................................................................... 2 B. [102] The HUD Units ................................................................................................... 3 C. [103] Parties to the Agreement ..................................................................................... 3 1. [104] The Agency ...................................................................................................3 2. [105] The Participant .............................................................................................. 3 3. [106] Prohibition Against Change in Ownership, Management and Control of the Participant............................................................................................................... 4 4. [107] Benefits of Project ......................................................................................... 4 II. [200] AGENCY ASSISTANCE ......................................................................................... 4 A. [201] The Project ..........................................................................................................4 B. [202] Agency Assistance .............................................................................................. 5 C. [203] Term of Agreement ............................................................................................. 5 D. [204] Participant Assistance ......................................................................................... 5 E. [205] HUD Escrow .......................................................................................................7 F. [206] Affordable Housing Cost .................................................................................... 7 III. [300] REHABILIT A nON/DISPOSITION OF THE HUD UNITS .................................. 7 A. [301] Rehabilitation by Participant............................................................................... 7 1. [302] Cost of Rehabilitation................................................................ ....................8 2. [303] Bodily Injury and Property Damage Insurance............................................. 8 3. [304] Rights of Access............................................................................................9 4. [305] Local, State and Federal Laws ...................................................................... 9 5. [306] Anti-Discrimination During Rehabilitation .................................................. 9 B. [307] Taxes, Assessments, Encumbrances and Liens................................................... 9 C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit............................... 9 CDC 1999-19 D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders.................... 10 [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation.................................................................................................... 10 E. [311] Right of Agency to Satisfy Other Liens on the Project..................................... 10 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS ......... 11 A. [401] Uses - Covenants Running with the Land......................................................... 11 B. [402] Maintenance of the HUD Units......................................................................... 11 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation............................................................................. 13 V. [500] GENERAL PROVISIONS...................................................................................... 13 1. [501] Termination and Breach.................................................................................... 13 2. [502] Notice ................................................................................................................ 14 3. [503] Conflicts ofInterest; Nonliability ..................................................................... 14 4. [504] Inspection of Books, Records and Reports ....................................................... 14 5. [505] Indemnification................................................................................................ 15 VI. [600] SPECIAL PROVISIONS ........................................................................................ 15 1. [601] Submission of Documents to Agency for Approval......................................... 15 2. [602] Successors in Interest ........................................................................................ 15 VII. [700] ENTIRE AGREEMENT, WAIVERS..................................................................... 15 VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCy........................... 16 [801] Time for Acceptance ............................................................................................... 16 EXHIBIT A - EXHIBIT B EXHIBIT C - EXHIBIT D - EXHIBIT E EXHIBIT F Map of ARR Zone Current Household Income Listings For Qualified Homebuyers ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant HUD Escrow Documents (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents ARR Rehabilitation Standards for Each HUD Unit HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents CDC 1999-19 ACQUISITION. REHABILITATION. & RESALE (ARR) P ARTICIP ATION AGREEMENT THIS AGREEMENT(the "Agreement") this 21st day of June, 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and Alvarez & Associates (the "Participant"). Agency and Participant hereby agree as follows: RECITALS WHEREAS, Agency is a California Redevelopment Agency engaged in carrying out its public purposes, including, without limitation, increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City"); and WHEREAS, the U.S. Department of Housing & Urban Development (HUD) has designated that certain area within the City shown on the map attached hereto as Exhibit "A" as the Acquisition, Rehabilitation and Resale (ARR) Revitalization Zone (the "Zone"), and has granted the City exclusivity to purchase directly from HUD, certain single family dwelling units owned by HUD REO's (the "HUD Units") at a discount off the As Is Value of each such HUD Unit (the "ARR Program") which the Agency as administrator for the City under the ARR Program, shall concurrently transfer title to the HUD Unit to the Participant for rehabilitation and resale pursuant to the terms and conditions of this Agreement; and WHEREAS, the Agency has also been designated by the Mayor and Common Council as the administrator of the HOME Program (the National Affordable Housing Act of 1990) on behalf of the City, with specific intent to expand the supply of decent, safe, sanitary and affordable housing, within a City's jurisdiction; and WHEREAS, the Agency may use either federal HOME Program funds or State Redevelopment low and moderate income funds to financially assist qualified first-time homebuyers (herein "Qualified Homebuyer") in the acquisition of HUD Units purchased directly from the Participant; provided however that the value of the HUD Unit to be acquired by a Qualified Homebuyer for which the Agency may provide purchase money mortgage assistance under either the HOME Program or under the other affordable housing assistance programs of the Agency (herein "MAP Program") must have a value that does not exceed 95% of the area median purchase price; and WHEREAS, with respect to the HUD Units, Agency desires to implement the ARR Program pursuant to which: a. Agency would buy one or more HUD Units directly from HUD on condition that the Participant purchases each such HUD Unit from the Agency at the discounted price which HUD offers to the Agency; and 1 CDe 1999-19 b. The Participant shall promptly rehabilitate the HUD Unit in accordance with rehabilitation standards set forth herein, and thereupon sell the HUD Unit, to an eligible low or moderate income buyer (e.g., a Qualified Homebuyer) at affordable housing costs pursuant to State or Federal requirements, depending on the source of funding (i.e., if Qualified Homebuyer uses HOME funds their income shall not exceed 80% of median income and State Redevelopment Low/Moderate Income Funds shall not exceed 120% of median income); and c. Prior to purchasing a HUD Unit from Agency, Participant shall provide satisfactory evidence to the Agency of all financing which shall include all costs associated with the acquisition, rehabilitation and disposition of the HUD Unit by the Participant. Based on receipt of such evidence of financing, the Agency shall accept or reject any offer received from the Participant to acquire a HUD Unit. The Participant shall complete the steps noted in Exhibit "C", attached hereto and incorporated herein by reference with respect to its acquisition and disposition of each HUD Unit to a Qualified Homebuyer; and d. If the Agency accepts any offer from Participant to purchase a HUD Unit, the Agency and Participant will open escrows (the "HUD Escrow") which shall close concurrently such that the escrow by which HUD shall transfer a HUD Unit to the Agency shall close concurrently with the escrow through which the Agency shall transfer that HUD Unit to the Participant; and e. Promptly after the closing of the HUD Escrow, the Participant will rehabilitate the HUD Unit within the timeframe herein, and sell it at affordable costs (the "Affordable Housing Costs") to a person or family of low or moderate income for owner occupancy purposes at the close of an escrow by and between the Participant and the Qualified Homebuyer (the "New Home Escrow"). The maximum income criteria applicable to a Qualified Homebuyer will be based on the type of financial assistance, if any, which the Agency provides to the respective Qualified Homebuyer at the close of a New Home Escrow (i.e., State Redevelopment Low/Moderate Income Funds up to 120% of median income or HOME Funds up to 80% of median income). The current 1999 Income Limits are noted in Exhibit "B". WHEREAS, Participant is a well established housing provider that has the experience, qualifications and desires to participate in the above described ARR Program. NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, Agency and Participant agree as follows: 1. [100] SUBJECT OF AGREEMENT A. [101] Purpose of Agreement The purpose of this Agreement is to effectuate various redevelopment plans for the City of San Bernardino (the "City"), by providing for Agency assistance to Participant in connection with 2 CDC 1999-19 the acquisition, rehabilitation and disposition of the HUD Units hereinafter set forth. The acquisition, rehabilitation and resale of the HUD Units pursuant to this Agreement is in the vital and best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting on behalf of the Agency, has determined that the acquisition, rehabilitation, resale and uses contemplated by this Agreement will benefit the low-and moderate- income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Program and the goals and objectives of the affordable housing programs of the Agency. B. [102] The HUD Units Each HUD Unit shall be located within the Zone and shall be designated from time to time by the Agency. Each of the HUD Units shall be pre-approved by the Agency and identified on a list in writing, as available for transfer to the Participant subject to the terms of this Agreement. No HUD Unit shall be transferred to the Participant unless the Participant has submitted a timely and complete acceptance to purchase such HUD Unit to the Agency, as set forth herein. It is the express intent of the parties hereto that the Participant will attempt to acquire those HUD Units within the Zone which evidence the highest degrees of blight, are most in need of redevelopment, and are financially feasible. The Agency's purchase approval of each HUD Unit will be based upon compliance with this intent. C. [103] Parties to the Agreement 1. [104] The Agencv The Agency is a public body, corporate and politic, exercIsmg governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et seQ.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [105] The Participant The Participant is licensed to do business in the State of California. The principal office and mailing address of the Participant for purposes of this Agreement is: 3 CDC 1999-19 3. [106] Prohibition Against Change in Ownership, Management and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure for the benefit of the Agency. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 106 shall terminate with respect to each HUD Unit at the close of the New Home Escrow for that particular HUD Unit. Nothing in this Section 106 shall act to restrict the sale of rehabilitated HUD Units to Qualified Homebuyers if such sale is otherwise in compliance with the terms of this Agreement. 4. [107] Benefits ofProiect The Agency has determined that the purchase, rehabilitation and sale of HUD Units in accordance with this Agreement will eliminate blight, provide needed low- and moderate-income housing to the various project areas of the Agency, as well as the City and also increase homeownership opportunities for low- to moderate income households thereby stabilizing the community and decreasing rental housing in the City. II. [200] AGENCY ASSISTANCE A. [201] The Proiect The Agency agrees that with regard to any HUD Unit that it has approved in writing, and which the Participant has agreed to purchase as evidenced by the completed form of a "HUD Unit Purchase Agreement" in the form included in Exhibit "D", that the Agency shall, subject to the terms and conditions of this Agreement, acquire the HUD Unit from HUD and shall thereafter immediately transfer title to the Participant through the HUD Escrow. 4 CDe 1999-19 The Project, and specifically the Agency's obligation to acquire any HUD Unit, shall only arise to the extent funds are available from the Participant (or the "Participant's Lender" as hereinafter defined), to provide for the acquisition, rehabilitation and resale of the HUD Unit by the Participant at the close of the HUD Escrow. Moreover, the Agency shall only offer to transfer HUD Units to the Participant to the extent that the Agency, in its sole discretion, deems that the purchase price, associated rehabilitation and disposition costs are fair, equitable, comparable and that the Participant has funds sufficient to close the HUD Escrow and thereafter to complete the rehabilitation of the HUD Unit. B. [202] Agencv Assistance In order to assist in the implementation of the Project and marketability of the Project, the Agency agrees to provide certain Agency assistance (the "Agency Assistance") as follows: (i) provide for the concurrent transfer of each HUD Unit which the Participant may agree to acquire as evidenced by a completed HUD Unit Purchase Agreement; provided however that purchase price for each HUD Unit and all escrow costs in connection with the HUD Escrow for that particular HUD Unit shall be payable solely by the Participant; and (ii) in addition to acquiring and thereafter immediately transferring title to any given HUD Unit to the Participant, the Agency may provide on a first come-first served basis to any Qualified Homebuyer certain down payment and closing costs, not to exceed ten percent (10%) of the Participant's sales price of the HUD Unit being sold, from either available funds of the Agency under the HOME Program or the Agency MAP Program, as applicable. C. [203] Term of Agreement The term of the Agreement shall be one (1) year from the date of this Agreement and ending June 30, 2000, except as set forth in Section 501. The Executive Director of the Agency (the "Director") shall have the option to renew this Agreement for an additional one (1) year period provided Participant is in compliance with the provisions of this Agreement. D. [204] Participant Assistance The Participant will select HUD Units based upon a list of available HUD Units prepared from time to time by the Agency. The Participant shall be solely responsible for obtaining all information in connection with the proposed acquisition and rehabilitation of each HUD Unit. Participant will take all action necessary to ensure the availability of funding for the acquisition, rehabilitation and resale of each HUD Unit prior to submitting any offer to purchase to the Agency and shall provide evidence to the Agency of such financing at the time it delivers a completed HUD Unit Purchase Agreement to the Agency (see Exhibit "D"). Participant will be responsible for the preparation and submission of all necessary paperwork required in connection with the acquisition of each HUD Unit (i.e., all of the HUD Escrow documents as assembled in Exhibit "D") and all other necessary documentation required for the close of escrow for any HUD Unit to be purchased by Participant from the Agency. Participant shall have not more than seven (7) days from receipt of the HUD listing from the Agency to select any HUD Unit for purchase and return 5 CDe 1999-19 the HUD Unit Purchase Agreement for such HUD Unit to the Agency as executed by the Participant. The Participant shall cause each HUD Escrow to be closed within forty-five (45) days from the date of execution of the HUD Unit Purchase Agreement and the other HUD Escrow documents by the Participant. No extension of time for the close of a HUD Escrow will be granted by the Agency and if a HUD Escrow does not close within the forty-five (45) day period after the HUD Unit Purchase Agreement has been fully executed for any reason not attributed to the fault or delay ofHUD or the Agency, then in such event this Agreement will be subject to termination. The Participant agrees that upon its acquisition of each HUD Unit from by the Agency, the Participant shall promptly commence and thereafter diligently complete the rehabilitation of the HUD Unit. Unless a longer period of time is approved by the Agency in its sole discretion at the time of the submission of the Participant acceptance of an offer to purchase a HUD Unit, the Participant shall complete the work of rehabilitation of each such HUD Unit within ninety (90) days following the close of the HUD Escrow. (i) Scope of Rehabilitation - The Participant shall rehabilitate all HUD Units acquired from the Agency in accordance with the ARR Rehabilitation Standards noted in Exhibit "E". Furthermore, the Participant shall prepare a Scope of Rehabilitation for each HUD Unit setting forth in detail the work that Participant agrees to perform on each HUD Unit purchased by Participant. The Scope of Rehabilitation shall be submitted by the Participant to the Agency concurrently with the executed HUD Unit Purchase Agreement and related HUD Escrow documents. (ii) HOME Program or Agencv MAP Program Assistance to Oualified Homebuver - All HUD Units acquired and rehabilitated under the ARR Program, wherein the Qualified Homebuyer has applied for either HOME Program or Agency MAP Program assistance, will be reserved for sale to and occupancy by low- and moderate-income households, to be sold at affordable housing cost as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, or Part 92 HOME Investment Partnerships Subpart 7. (92.206), which requires that the value of the HOME assisted property to be acquired by the Qualified Homebuyer must have a value that does not exceed 95% of the area median purchase price of the HUD Unit, whichever funding source is used for the Participant's Qualified Homebuyer. (iii) Disposition of HUD Units and Oualified Homebuver Eligibilitv - The Participant will cause the marketing of each HUD Unit to prospective purchasers. Participant will screen prospective purchasers for eligibility in accordance with this Agreement, specifically to insure that Buyer meets the applicable HOME Program and/or Agency MAP Program Income Guidelines in accordance with Exhibit "B". Participant shall cause the opening of a New Home Escrow with prospective purchasers and will take all steps necessary to ensure each New Home Escrow is closed within forty-five (45) days from the date of its opening. At the close of the New Home Escrow, the ARR Covenant shall be fully executed and filed for recordation. The form of the ARR Covenant is included in Exhibit "D". 6 CDC 1999-19 E. [205] HUD Escrow The Participant is under no obligation to purchase any HUD Unit from the Agency and the Agency is under no obligation to transfer any HUD Unit to the Participant unless the Participant has first completed a HUD Unit Purchase Agreement for the particular HUD Unit as identified on a list of HUD Units as submitted by the Agency to the Participant. The parties will open simultaneous escrows (e.g., the HUD Escrow) to provide the acquisition by the Agency of each specific HUD Unit which the Participant has agreed to purchase from the Agency. The parties shall execute the escrow instructions and documents as set forth in Exhibit "D" as may be necessary to accomplish the foregoing. F. [206] Affordable Housing Cost For the purposes of complying with this Agreement, all HUD Units shall be sold to low- and moderate-income households (e.g., Qualified Homebuyers) at affordable housing costs as such term is defined in Health and Safety Code Section 50052.5, or Section 8, (24 CFR 813), whichever is applicable to the Qualified Homebuyer's HOME Program or Agency MAP Program assistance, if any. The Participant agrees to be bound by all limitations for Qualified Homebuyers as set forth and in each Agency Quitclaim Deed for a HUD Unit. The form of the Agency Quitclaim Deed is included in Exhibit "D". The Participant shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency by a date no later than forty-five (45) days following the opening of the New Home Escrow, including but not limited to the HOME Program or Agency MAP Program Checklist, Verification for Applicant Eligibility, First- Time Homebuyer Disclosure Statement, Application Affidavit as applicable under the HOME Program or the Agency MAP Program as included in Exhibit "F". III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS A. [301] Rehabilitation bv Participant Participant and Agency agree that the central purpose of this Agreement it to provide for quality rehabilitation of each HUD Unit purchased from the Agency in a manner consistent with the terms and standards of this Agreement. Each HUD Unit acquired by the Participant shall be rehabilitated in accordance with the rehabilitation standards noted in Exhibit "E", attached hereto and incorporated herein. With respect to each HUD Unit, the Agency shall approve in writing all specifications, and plans, if any, including but not limited to landscaping plans, designs, and specifications of each HUD Unit to be rehabilitated as well as the proposed Marketing Plan for each HUD Unit prior to the commitment of the Agency to acquire any HUD Unit pursuant to a HUD Unit Purchase Agreement. Such approval of the Agency shall be evidenced by the Director in his/her reasonable discretion as consistent with the goals and objectives of the ARR Program, or his/her designee. 7 CDC 1999-19 1. [302] Cost of Rehabilitation The cost of undertaking the Project, including the costs of acqmSItIOn, rehabilitation, marketing and sales of each HUD Unit shall be borne solely by Participant. The Agency shall have no obligation to pay for any cost of the Project. The Participant acknowledges and agrees that the profit, if any, to be made by Participant from the disposition of each HUD Unit to a Qualified Homebuyer shall be limited to no more than fifteen percent (15%) of the gross sales price at the time resale of each such HUD Unit after rehabilitation to a Qualified Homebuyer. 2. [303] Bodilv Iniury and Property Damage Insurance Participant shall indemnify defend and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency as additional insureds for claims for damages arising from the Project. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on any HUD Unit or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 8 CDC 1999-19 3. [304] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City as designated by the Director shall have the right of access to each HUD Unit, without charge or fee, at normal construction hours during the period of work for the purposes of the inspection of the work being performed in constructing the rehabilitation on the HUD Unit. The Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 304 resulting from the gross negligence or willful misconduct of the City or Agency while on the HUD Unit. This Section 304 shall not be deemed to diminish or limit any right which the City or Agency may have by operation of law irrespective of the Agreement. Nothing in this Section 304 shall be deemed to make either the City or the Agency a guarantor of the work of rehabilitation or improvement of any HUD Unit. 4. [305] Local. State and Federal Laws Participant shall carry out the Project and all related activities on any HUD Unit in conformity with all applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. 5. [306] Anti-Discrimination During Rehabilitation Participant, for itself and successors and assigns, agrees that in the rehabilitation of the HUD Unit provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [307] Taxes. Assessments, Encumbrances and Liens Prior to the issuance of a Certificate of Occupancy for any HUD Unit, Participant shall not place or allow to be placed on such HUD Unit any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on a HUD Unit, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to a Qualified Homebuyer. C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit 1. Prior to the recordation of a Certificate of Completion by the Participant for a HUD Unit, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of any HUD Unit. This prohibition shall not be deemed to prevent a transfer of a 9 CDC 1999-19 HUD Unit to a Qualified Homebuyer or the granting of temporary or permanent easements or permits to facilitate the rehabilitation of the Project. 2. Upon obtaining a Certificate of Occupancy from the City for a completed rehabilitation of a HUD Unit, the Participant shall sell such HUD Unit to a Qualified Homebuyer in accordance with and subject to the restrictions set forth in this Agreement. 3. The deed or other instrument of transfer by the Participant to any purchasers ofthe HUD Unit shall require that the unit be owner occupied by persons living in the units as their principal residences and shall further require that such unit shall remain available at affordable housing costs to the families of low- and moderate-income for a period of not less than ten (10) years subject to any other exceptions as may be provided by the Agency. 4. The Participant may not rent or lease any HUD Unit to a third party and during the time that the Participant may hold title to a HUD Unit, no person may use the HUD Unit for any residential dwelling purpose. D. [309] Mortgage. Deed of Trust. Sale and Financing; Rights of Holders [310] No Encumbrances Except Mortgages. Deeds of Trust or Sale for Rehabilitation Mortgages, deeds of trust other encumbrances of each HUD Unit are to be permitted before completion of the rehabilitation of a HUD Unit but only for the purpose of securing loans of funds to be used by the Participant for financing the acquisition or rehabilitation of improvements on the HUD Unit. Participant shall not enter into any other conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar lending institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 310, executed by the Director. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. E. [311] Right of Agency to Satisfy Other Liens on the Proiect Prior to the completion of the rehabilitation on any given HUD Unit, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on a HUD Unit which are not otherwise permitted under this Agreement, Agency shall have the right, but not the obligation, to satisfy any such lien or encumbrance. 10 CDC 1999-19 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS A. [40 I ] Uses - Covenants Running with the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to any HUD Unit, that for the period of time set forth in the Agency Quitclaim Deed, each of the HUD Units acquired by Participant shall be devoted to and available for sale solely to persons or families with an income which are very low, low and moderate, as those terms are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "C", or 24 CFR 813 whichever funding source is applicable to the Participant's prospective Qualified Homebuyer for the HUD Unit. The Participant further covenants and warrants that Participant shall undertake the rehabilitation on the HUD Units in accordance with the standards set forth in this Agreement. Participant covenants to obtain all necessary permits and rehabilitate each HUD Unit in conformity with all applicable laws. Failure to obtain all necessary permits shall be a default under this Agreement. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any HUD Unit, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any of the HUD Units. The foregoing covenants shall run with the land. These covenants shall be expressly incorporated in the Quitclaim Deed from the Agency to the Participant. B. [402] Maintenance of the HUD Units Maintenance Condition of Each HUD Unit. Between the date of the close of each HUD Escrow and the date of the close of the New Home Escrow for each such HUD Unit the Participant for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of each HUD Unit which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of close of a HUD Escrow, there is an occurrence of an adverse condition on any area of a HUD Unit which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as 11 CDe 1999-19 identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Participant has failed to comply with the provision of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the HUD Unit and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HUD Unit authorized by this Section shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in Subsection( c), below. (b) Graffiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or improvement on a HUD Unit which is visible from any public right-of-way adjacent or contiguous to the HUD Unit, shall be removed by the Participant by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HUD Unit and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HUD Unit authorized by this Subsection(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection( c ),below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HUD Unit, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably necessary to restore the HUD Unit to the maintenance standard required under Subsection(a) or Subsection(b), including attorneys fees and costs of the Office of Agency Counsel (including salaries and wages of the legal staff and pursuant of this Office of Agency Counsel) as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section, shall be a covenant running with the land, and each HUD Unit, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section shall be deemed to preclude the Participant from making any alteration, addition, or other change to any structure or improvement or landscaping on the HUD Unit, provided that such changes comply with applicable zoning and building regulations of the City. 12 CDC 1999-19 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement with respect to each Participant HUD Unit shall remain in effect for the term as set forth in the Agency Quitclaim Deed. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PROVISIONS 1. [501] Termination and Breach (a) Termination Without Default or Breach. This Agreement may be terminated for the convenience of by either party who is not then in default upon thirty (30) days notice to the other party; provided however, that for any HUD Unit for which a HUD Escrow is then open, such HUD Escrow transaction shall be closed and the HUD Unit shall thereafter be rehabilitated and offered for resale to a Qualified Homebuyer as set forth in this Agreement. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or 13 CDC 1999-19 more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary . 2. [502] Notice Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party under this Agreement shall be in writing and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as follows: Participant: Jaime Alvarez Alvarez & Associates 201 North "E" Street, Suite 202 San Bernardino, California 92401 Agency: Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 92401 3. [503] Conflicts ofInterest: Nonliabilitv No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participate, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. 4. [504] Inspection of Books, Records and Reports Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to any HUD Unit as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to any HUD Unit as pertinent to the purposes of the Agreement. 14 CDe 1999-19 The Participant shall provide quarterly reports to the Agency regarding all HUD units acquired and sold under this Agreement. 5. [505] Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the Agency's and the City's members, officials, employees and agents from and against any and all claims or liability arising from Participant's actions under this Agreement or from the conduct of Participant's business or from any activity, work or things done, permitted or suffered by Participant and shall further indemnify and hold harmless the Agency and City and their officers, employees and agents from and against any and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this Agreement arising from any negligent or wrongful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to environmental conditions, that may arise as a result of the Agency's acquisition and/or ownership of any HUD Unit that is the subject of the Agreement. VI. [600] SPECIAL PROVISIONS 1. [601] Submission of Documents to Agencv for Approval Whenever this Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 2. [602] Successors in Interest The terms, covenants, conditions and restriction of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. VII. [700] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Exhibit "A" through Exhibit "F", which together with this Agreement constitute the entire understanding and agreement of the parties. 15 CDC 1999-19 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city statues, or it is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this agreement shall not be affected thereby. All waivers of the provisions of this Agreement must be in writing by the Director of the Agency or the Participant, and all amendments thereto must be in writing by the Director of the Agency or the Participant, except that the Director may only agree to non-substantive changes hereto with concurrence by Agency Special Counsel. Substantial changes to this Agreement shall require the prior approval of the governing body of the Agency. Each individual signing below represents and warrants that he or she has the authority to execute this Agreement on behalf of and bind the party helshe purports to represent. VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [801] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Director as evidenced by the date first above shown. IIII IIII IIII IIII IIII IIII 16 CDe 1999-19 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. "AGENCY" Redevelopment Agency of the City of S?>ardinO / r. / Van asdel, ecutive Director Approved as to Form: By: ,) ~~ Agency \Counsel. \S~-Q . .2 - c1"l "PARTICIPANT" By: C/l-l ~ r...J--n.e...-r ~L~~ Title: By: Title: ex r\!?J6IJ ?ar-l--rv.--! By: Title: 17 CDC 1999-19 EXHIBIT "A" 1999 ARR AGREEMENT "Map of ARR Zone" -:00 )> (t) -- :0<-< :0 -. 0 - - S).)~cn :::3 -. III a.~:J ~=ro l>0~ -c:::3~ N.... -CO 9: -c :::3 :J O(t)o co VI -c S).) 3 VI - !Z~ 60 =JJ C-i ~:I: iF nn UU s; g Q ::0 c: -< Il'> ~ r 3: -;; 3 )> - iD "tI m ~ ::E g :T ii.l ~ 3 9- lJ) -< ~ ~ :J in 9. <: ~ iii CDe 1999-19 > '" ~ ~ \,'>' ~ .,<~!\."\J ~ ~'<.., " > < '" I I I - I -- il "'I I ! MAEA\\\STREET OP.\MI CDC 1999-19 EXHIBIT "B" 1999 ARR AGREEMENT "Current Household Income Listings for Qualified Homebuyers" CDe 1999-19 EXHIBIT "B" 1999 Income Limits Income HOUSEHOLD SIZE Level I 2 3 4 5 6 7 8 Very Low $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 (50%) Lower* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 (80%) Median $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 (100%) Moderate* * $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 (120%) * If Participant's Buyer is using HOME Federal Funds the Maximum Annual Income afamily can earn is 80% of median income according to household size. ** If Participant's Buyer is using State Low/Moderate Income Housing Funds the maximum annual income a family can earn is 120% of median income according to household size. P:\FormslARR ProgramlARR I"come Ljmit.~.doc CDC 1999-19 EXHIBIT "C" 1999 ARR AGREEMENT "ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection of HUD Units for Purchase by Participant" CDC 1999-19 ECONOMIC DEVELOPMENT AGENCY CITY OF SAN BERNARDINO "Acquisition Check List" o COpy OF HUD SALES CONTRACT (Land Use & Part A-D) o REQUEST FOR PROPERTY INSPECTION ANALYSIS FORM To be executed and returned to EDA five (5) days from the date of list of properties is provided to participant D COPY OF ESCROW INSTRUCTIONS (HUD TO EDA) D COPY OF ESCROW INSTRUCTIONS (EDA TO PARTICIPANT) D PARTICIPANT CONSTRUCTION/REHABILITATION WORK WRITE UP TO EDA INSPECTOR D PRELIMINARY TITLE REPORT D (2) SETS OF ESCROW INSTRUCTIONS TO SIGN AND RETURN EXHIBIT "1" \~SAN BEROO\PUBUC\Forms\ARR Prooram\ARR Proce5S.doc _7/'19 3 CDC 1999-19 Economic Development Agency City of San Bernardino ACQUIsmON, REHABILITATION & RESALE PROGRAM (ARR) ARR PROCESS A. Exclusive Sales 1. EDA will receive weekly (Thursday evening) an exclusive list from HUD of units available within the Revitalization Zone. 2. EDA will distribute exclusive list to Participant no later than Friday A.M., following receipt of Thursday's list. 3. EDA has seven (7) days from receipt of list in which to express interest in any property. Thus, Participant will notify EDA within five (5) days (Tuesday, 5:00 p.m.) of receipt of list from EDA interest in property. 4. On fifth day, Participant will submit to EDA: (1) Request for Property & Inspection Analysis form. (2) HUD Sales Contract and attachments for signature by EDA staff. 5. EDA will notify Participant by ih day (Thursday, noon), when documents are ready for pick-up. B. Direct Sales 1. Tuesday evenings HUD list properties on the Internet (Direct Sales Internet Lottery Process) 2. EDA approved Participants must express interest to purchase properties by 3PM Friday (3 days after HUD's posting of Direct Sales List). Participant must perform due diligence of properties (completed property and inspection form). 3. Participant must retain HUD lottery number/confirmation number of transmission. HUD will select winner by Wednesday evening (1 week after posting Direct Sales List). 4. List of winner will be posted Wednesday evening. Participant should check this list promptly to verify whether they are the winner of the property. 1 CDC 1999-19 5. Upon verification of HUD winning lottery number, Participant will have until end of business day on Friday (2 days after HUD posts winners) to deliver a complete sales package to EDA include: - HUD Sales Contract (Original) (Include HUD Addendum A-D - HUD Land Use Restriction Addendum - Request for Property Inspection Analysis Form 6. EDA will review and execute sales package by 12:00 p.m., Monday. Participant to pick up Monday and overnight complete executed sales package to: Golden Feather, CIO Tammy Massone, 225 East Airport Drive, Suite 100, San Bernardino, California 92408, (909) 890-2370, (909) 890-3831 FAX. 7. Close of Escrow - HUD executes contracts and opens escrow at Arrowhead Escrow, 935 South Mt. Vernon, Suite 106, Colton, California 92324. (45 day maximum for closing) C. General Notes 1. Important - EDA purchases property under the name of "The Redeveloment Agency of the City of San Bernardino, a public body, corporate and politic." Therefore, all HUD contracts and documents must reflect this entity. 2. EDA's purchase is funded by Participants private lender or other funding sources with a concurrent escrow to close from EDA to the Contractor. (EDA does not provide any funding for HUD purchases or rehabilitation). 3. After close of escrow from EDA to ARR Participant, Contractor performs rehabilitation on house per the original construction work write-up and markets property for sale. Contractor is responsible for obtaining permits with building and safety for all repairs to the house. 4. EDA Inspector performs a final inspection of the property (after rehabilitation in accordance with "Contractor Construction Work Write-up'') to insure all work is completed as per these specifications. 5. Assuming the buyer has been qualified and pre-approved for the Mortgage Assistance Program (MAP), by the primary lender and EDA, and a final inspection has been performed by EDA Inspector, EDA will issue a check and fund the MAP for the buyer. P:\Forms\ARR Program\ARR Process.doc (Revised 7/99) 2 CDC 1999-19 EXHIBIT "2" Economic Development Agency City of San Bernardino "Request for Property and Inspection Analysis Form" (to be submitted by Parlidpant to EDA with HUD Sales Contract and Attactlments) lit' nfC>rma. Date Submitted to EDA: ARR Contractor: Contact: Phone Number: HUD Case #: Status: 0 Uninsured 0 Insured Check Approximate Location in Revitalization Zone (See Map - Exhibit "A"). Property Address: City/Zip: Estimated Costs Total Sq. Ft. Actual Costs Bedrooms: Bath(s): HUD SALES PRICE $ ELECTRONIC BID PRICE (IF APPLICABLE) $ HUD DISCOUNT PRICE $ REHABILITATION COSTS (L & M) $ PARTIOPANTS OVERHEAD $ TOTAL PROJECT COSTS $ ARR SALES PRICE $ ARR PARTIOPANT PROFIT $ $ $ $ $ $ $ $ $ % Profit (Maximum profit is 1S% of Total Project Costs) Amount of Loan for Property (Acquisition & Rehabilitation Loan) ARR Participant Lender: Address: Phone Number: ~\~'13OYER'INFORMAUON Buyer(s) Name: Family Size: MAP Loan: (Not to exceecllO% of Purthase Price) $ Annual Gross Income: Buyer's Contribution: (Minimum of $500) $ Participant Contribution: Closing Date Lender Name/Contact Lender Address: Lender Phone: City: Lender Fax: Please check Appropriate Categories: Sr. Citizen(S) 62 Or Older 0 Female Head of Household 0 Hispanic 0 White 0 Asian or Padfic Islander 0 Disabled Family Member 0 American Indian 0 Black 0 I OFACE USE ONLY: % of Median = ARR Participant Signature EDA Representative Signature Date EDA Review Contract/Inspection Fonm/Date EDNPre-Acquisition Inspection Signature/Date EDNPost-Acquisition Inspection Signature/Date \\EOA.-SAH BERDO\PUSUC\Forms\ARR Progr;sm\.6.RR Process.doc (Revised 7/99) 4 CDC 1999-19 EXHIBIT "D" 1999 ARR AGREEMENT HUD Escrow Documents: (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents CDC 1999-19 l:.S. DEPT. OF 1I0rSI\C & URBAN D[\TLOP\IE1\T Addendum A (RE\' 4 19<)) .........FORFEITURE :\\0 EXTENSION POLiCy......... Allllt:D Pruperl\ DhpOSltlOn sales of IIl'Dacqulrl'd !'["i'l'llll" arc to close \\llhlll 4~ dJ\S of JCcl'PU[lL'e of J f1l'D,t)'lS (I 99) Sale, COlllrJCI ofkr to purchase Forfeiture of EJrnest 'JOlley Deposits, The failure b\ a PurchJser to close on the sale of proPl'lI:- \\ [Ihlnlhe allo\\able tllne pellod, IIlClud:ll~ .Ill, e'll'I\SIOI\S ~rJIlleJ h\ IlliD, \\ III result III the forfeiture of Ihe eJlllc;l mOlle\ c:(l't"11 neepl \\here Ihe purchaser preSt'll1S ,lclL'u[nelltJIIOIlIO 11\ '[) ,Jut nl1l' Oflhe speclJI circumstances descllbed In para~rJrhs (.II Jnd (b) below of 11115 Section has occurred (a) Illvestor PurchJsers (1) The failure by an Investor Purchaser to close on an ulllnsured SJIe will result m forfeiture of the ellllre eamest money depOSit (2\ Fifty percent of the eamest money depOSit on In I[bured sale will be retumed to an [n\'estlJf PurchJser where Ill'D (or a D[rect Endorsemenl1ender uSing 11\ 'D gUldeltnesl delermlnes that the PurchJser IS nut an JcceptJble borro\\er (b) (I) O\\ner-OccupJnt purchJsers The enllre eJmest money depoSlI \\ r11 be returned In In 0\\ ner-occupJnt Purchaser \\ ht] farl, to close \\ here, S\flce the contract of sale was Signed 1 here has been a death m the Immedlale fannl:- ic'ontract holder, spouse, or children h\ In~ In the same household I, (I) (11) Ihere has been a recent se!lOUS IIlne" III Ihl' Immediate fannly that has resulted In sl~l1ll-lcant medical expenses or sub';Ialllialloss of Income, thus a,herselv afkc::n~ the purchaser's finanCial ablllt\' to clche the sale (1111 There has been a loss of Job 11\ onc' ,)llhl' f'r"~u[\ bre.l,j" Inners, or subslantlal loss uf In,<'11\e tll1<,u~h Ild fault "f the Purchaser, (1\) In the case of anll1sured sale, IlL'D (or a Dlle~t ['Il,!drsemenl lender uSing IlUD gUidelines) d,'temllnes Ilut the Purchaser IS not an acceptable borro\\ n, or (v) for other good cause, as determ1l1ed b:, the field onice (~l In the case of an umnsured [oaIl "here, deSpllC ~ood fJlth efforts by the Purchaser, there IS an Inability to oblJ1I1 a mortgage loan from J recognized mortgage lender, 50 percent of the eamest money depOSit will be retumed (3) On either type of sale, forfeit 100 percent of Ihe deposlllI1 those instances where no documentation IS submitted, \\here the documenlJtlon fails to proVide an aceeplJbk cause for the Buyer's failure to close, or where documentation IS not pro\lded wllllln a reasonable lIfne foll"wlllg (,)["I"CI cancellallon (e g, 30 days) Extensions, 11le Golden Feather Realty office will grallt e,terhll)[lS of lime upon wntten request from purchaser ExteIlSlons of tlllle to close Ihe sale arc entirely \\ Ith1l1 the Seller's discretion .'\n exteIlSlon, If graIlted, will be under the fullowtl1g conditions (.II :\ \Hltten reqlle'st for an extenSl')[lIl\lhl be rL'~"i\ed 11\ (jOkleIl realhn Rolry IlO bter thaIl five da\s bef,)[e the s,IIL'dllled deJdllne fllf cloSln~ (b) rhe d,>cumeIllatloIl sub11\ltted \\ Ilh Ihe reqlll',ln\l"t e',lJhhslt the calise of dela\' and that mortgage Jppro\all' IIllllll1\e\1t dUring the exteIlSlon period (cl :\n nten'>lon will be for a pellod of f,fteL'1l ~,l!l'\1.1J[ da,s at a fee ofS37~ Oil (~O'I\. .\(J cbvs, S7~O (0) I'ees (\'Clllfled funds) wrll be depOSited III eSd<1\\ 1I\1I1lL'.II.1I\';" lIpun Jppfllval (d, 1.\tl"n~I()1l k~'i 'dull be.: rl'lJlfll'd 1'\ Sl.'lkr II J ...__lll":'II1S th.)!..') nut U(LtlC (ei :\llhe tlllle Llf CIOSlllg, lInllsl'd exl','lhltIlIIl'C' ',\i11 bL' I'rorated to the I'urcha,ec :IIld reluIlclnJ by e:,([O\\ (1'1 rhe granllIlg of one exte(hlOIl ,lull \1,'1 (l1,he,lte the St'ller tLl graIlt addlllLlIl,d e,len""\15, and the Seller :,ItJII.I"clace a Defalllt for th,'l'urcha,,'IS' Llllt:lc' I" cl",c' tic,' ,.lie II 1'<' Il the expllatlllll of Ihl' LHlglIlal cltl,"\~ pecIPd or uf't1\1 nf'II,tt""\ <,f till" l'\h.'lhIPI1 CDC 1999-19 Allowable Closing Costs. The following closing costs with a comblOed value of not more than 3% of line 3 of the 9548 (1/99) Sales Contract may be credited to Line 5 of the Sales Contract Funds not consumed WIll be credited to the Seller. 10'0 Loan Oflginatlon Fee Crelht Report Impounds Interest Hazard Insurance Lenders Coverage Policy Owners Coverage Policy Notary Taxes (Current tax year) HOA Dues (Current month plus one) AUTOMATICALL Y PAID BY HUD (nolinclllded on line 3) RecordlOg Fees - Deed and \Iortgage City/County Tax/Stamps Escrow Closing Fee WIre Transfer Fee 10 Washington. DC. HUD Case No. Property Address: City Seller Disclosure. Seller makes no representations or warranties concerning the condition of the property. includlOg but not limited to mechamcal systems. dry basement, foundation, structural. or compliance with code, zoning or building requirements and will make no repairs to the property after execution of this contract. purchaser understands that regardless of whether the property is being financed with an FHA-insured mortgage, Seller does not guarantee or warrant that the property is free of visible or hidden structural defects, tennite damage, lead-based pamt, or any other conditlOn that may render the property uninhabitable or otherwise unusable. purchaser acknowledges responsibility for taking such action as it believes necessary to satisfy itself that the property is in a condition acceptable to it, of laws, regulations and ordinances affecting the property, and agrees to accept the property in the condition existing on the date of thIS contract. Seller disclosure concerning HOA dues, Mello Roos taxes, assessments, or any tax concerning HUD homes is based on available information but not deemed complete or accurate. It is the responsibility of the Buyer to obtain all information concerning these issues. WaIk-Thru Inspection. All purchasers are strongly encouraged 10 perform a walk through inspection PRIOR to the close of escrow. If a purchaser discovers a property condition that did not exist at the time of sale they must immediately notify KUD's property manager, Golden Feather Realty, of the damage. The buyer assumes full responsibility for the property and its condition on the date of close of escrow. The Department assumes no responsibility, and will make no settlement, for damages reported to HUD after the close of escrow (See item 1I13.E of HUD Sales Contract) Buyer Cntificallon 1. we certify that I.we have been IntervIewed. completed a loan applicatIon, vcnficatlon of employments and obtamed a full credit report from the lender that has prOVIded the attached Letter of Commitment lJwe understand that l!we wrll forfeit our earnest money deposlllf we enter mto thiS contract without completmg thiS qualification proce.ss. Slgnatllfcs (Purchaser) (Purchaser) ~._--~-- -_.~.~ (Purchaser) (Purchaser) CDC 1999-19 LAND USE RESTRICTION ADDENDUM Thi, Addendum IS rncorporated by reference to the FHA Sales Contract tor the properry located al .____, executed on thiS same day of , 199 between (Purchaser) and the Depar1ment of HOUSing and Urban Developmem (Seller). Unless an exceplion is granted In writing by llle Seller' il The Purcl""cr "opected, at a minimum, to rtpalr the properly .1Ccording to local code, after which j[ shall re'sell the propeny only to a person who intends to occupy as his Or her prinCipal rcsldence and whosc income is at or below I J 5 percent 0 f [he median income in the area, when adjusted for family SIze, or a State, government cntiry, rribe, or agency thereof. or a pnvate nonprofit organization as dcflncd in 24 CFR 291.405. b. The purchaser shall not resell [he propcrty for an amollnt in eKcess of 110 percenl of tile net developmenr cost. Net development cost is [he 10lal cost of lhe project, including items such as acqulsilion cost, architectural fees, permits Hnd survey expenses, insurance. rehabilitation, and taxes It does not lIlclude a developer's fee. Total costs incurred by the Purchaser, Including those for acquisition fm!iIlcing, management, rehabilitation, and sclling expenses, are c.~peclcd to be reasonable and customary for the area in which this property is located. e The developer's fee provides for Purchaser's overhead antl staffing costs related to the proJecl, and may not exceed 10 percent of the net development COSl d rhe properry may not b" occupied by or resold to any of the Purchaser's officers, directors, elecled ur appointed omcials, employees, business associates, or to any individual who is related hy blood, marriage, or law to any of [he above. e There m,iY be no conn,c[ of inlerest with individuals or firms that may provide acqUisition or rehabilitation funding, management Or sales services, or other associated with the project 2. Purchaser must provide periodic reports, as specified by 24 CFR 291.110 and in the format and frequency specified by HUD, regarding the purchase and resnle of properties subject to this Addendum. 3. TI,is Adtlcndum survives [he cxpiration, if any, by operation of Jawor othenvise, of the FHA Sales Contract, and shaJJ terminate five years from the date contained herein. Purchaser Witness Secretary of Housinl< and Urban Development Seller Witness By' CDC 1999-19 LEAD-B,\SED PAI;>;T ADDE;>;DL::\I TO SALES CO;';TRACT - PROPERTY BUILT BEFORE 1978 A Tr ACHMENT A Page I of 4 FHA CASE NO PROPERTY ADDRESS :-;OTE TO Pl'RCIIASERS. REAL EST A TE BROKERS A:-' D AGE:-'TS: nlls addendum .s mand.llor}'for any property budt before /978 and conmls offour parts Pari A,Dlsclosure of Information on Lt!nd-Based Pnint Qnti'or /.e(l(f.Based PalnI Ha:ards. Part 8. Sll/es Contract Lead Based Paint E\'aluation Contingency. ParI C. O\\'rt('r-Occupnnl Cere/jleal/on. and Part D. Purchaser's Addendum to rile Sales Contract - Release of Lead Based Patrlt Evall..lQIWfI Contingency. .-411 parts mUSI bt! comp/c't't( as shou'f1 TI1lS Lcod-Based Palnl Addendum must be completed on or bl.fore rhe date of the Sales Contract, and forwarded (0 f{UD 'K,;th the Sales Conrraclfor am property blll/I bt'fore 1978. Sales Contracts ....IlIrOUllhlS Addendum wIll not be accepted br Jlt'D 77lis Addendum survi\'es the closing of the sale PART A DISCLOSl'RE OF INFORMATION ON LEAD-BASED PAI!vT AND/OR LEAD BASED PAINT HAZ4RDS Lf....\I) \\"AR:" I:"G STATE \1 ["iT. E\'cry pllrchllSt'r of any interest In rC5ltil'nflol real property 011 hhlch (l reslt!enual d\\'elllng \0\'05 bUIlt pnor LO 197 S IS noufied 111m such propt'rtr ma~ pn:St'flr exposure to Icad from lead-bnsed that mllY place YVlmg children at nsk of developIng lead poiSOf1lng Lead poisoning in )'oung children maJ prol!uCt' pt'r17wnl'n! nl'l~rolvgt(r:l daml1gl', including learning dlsabllwt'5. redl~(cd intelligence quotient, beha\"loral problems. and impaired memory. Lead poisof1lng nlstl PO,H':>' 11 p/Jrtln~!.Jr nIl<. [V prl.'gntlnf homen Tne selft'r of any inh'reSfln rt'5//fl'1llwl propt'r(~ IS rl'ql41red to prOVIde the buyer ..nfh any informauon on lead-bmed pmnl ha:ards from nsk {lsst'SSn1l'nlJ or InspecllOns in the seller's possessIOn and nOllfy tht' buyer of any krwwn lead-based pain! ha:ards A nsk assessment or inspeCllOn for pOSSIble lead- based painl ha::ards is rt!commended pnor 10 pllfchnse SELLER'S DISCLOSCRE A Presence of lead-based paint and/or lead-based pamt hazards (check one belo") 1. Known lead-based paint and/or lead-based pamt hazards are present in the property (explain): 2. Seller has no actual knowledge of lead-based pamt and/or lead-based paint hazards in the property. B Records and reports available to the seller (check one below) I. Seller has proVided the purchaser with all available records and reports pertaining to lead-based paint and/or Iead- based paint hazards in the property (list documents below). 2 Seller has no reports or records pertamlng to lead-based paint and'or lead-based paint hazards in the property PURCHASER'S ACK.'\OWLEDGEMENT (initIal) C. Purchaser has recei\'ed copies of all infomlation listed above, D. Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. L Purchaser has (check one below): I. Requested a 15 day opportunity to conduct a rISk assessment or mspectIon for the presence of lead-based pamt and or lead-based paint hazards; or 2 WaIved the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or Iead- based pamt hazards. BROKERJAGHiT ACK.'\OWLEDGEl\IEi'iT (mitial) F. Broker'agent has informed the seller of the seller's obligatIons under 42 USC 4852d and is aware ofhislher responsibility to ensure compliance, CERTIFICATIO:"i OF ACClJR.\CY The following parties have reviewed the information abo\'C and certIfy, to the best ofthetr knowledge, that the information they have prOVided is true and accurate. Seller Date Purchaser Dale Purchaser Date 9/96 Broker 'Agent Date CDC 1999-19 Attachment A Page 2 of 4 PART B SALES CO:\TRACT LEAD-BASED PAI:\T EVALUATION CONTINGENCY This contract is contingent upon a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-b3sed paint hazards at the Purch3ser's expense unti I 12 noon on the 15th calendar day after acceptance, on [Insert date] This contingency will tem1inate at the above predcterrnined deadline unless the Purchaser or Purchaser's agent delivers to the Seller or Seller's agent Part D of this addendum listing the specific lead-based paint hazards and corrections needed, together with a copy of the inspection and/or risk assessment report. The Seller may, at the Seller's option, within five days after delivery of Part D of this Addendum, elect in writing whether to correct the hazards(s) prior to settlement. If the Seller will correct the hazard(s), the seller shall furnish the purchaser with certification from a risk assessor or inspector demonstrating that the hazard(s) have been remedied before the date of the settlement. If the Seller does not elect to make repairs, or if the Seller makes a counter-offer, the Purchaser shall have five days to respond to the counter offer or remove this contingency and take the property in its "as is" condition or this contract shall become void. The Purchaser may remove this contingency at any time without clause. INTACT LEAD-BASED PAII\T THAT IS IN GOOD CONDITION IS NOT 1\ECESSARIL Y A HAZARD See EP A pamphlet Protect YOllr Family From Lead ill YOllr Home for more information. Lead-Based Paint Addendum to the Sales Contract - Property BuIlt Before 1973, including Part A, Disclosure of Informa/tOn on Lt!ad-Based Paint and/or Lead Based Paint Ha~aTlis. Pari C. O\\lla-Occupant Certification (If applicable), and Part 0, Purchasa's Addendum to the Sales Contract _ Release of Lead-Based Pillnl EmluattOn Contingency, if applicable, must also be completed and made a part of this Sales Contract. 9/96 CDC 1999-19 Attachment A Page 3 of 4 PART C OWNER-OCCL'PANT CERTlFICA TlO[\; TO BE CO\lPLETED B'{ ALL OWNER-OCCUPANT PURCHASERS ONL Y Check and complete the folloWIng. as appropnatc: _ Uwe do not ha\'c a chIld undcr the agc of sc\'en ycars _ Uwe do have a chIld undcr the agc of sc\'Cn ycars Thclr names and ages are as follows: Name Age Check only one of the following blocks ifchildren under seven are indicated above: _ lIwe understand that within 15 days after acceptance by HVD of my/our offer to purchase, lIwe will at my/our expense, have each of the above-namcd children tested for an elevated blood level (EBL) and that lIwe will provide these tests to HUD. Ifllwe fail to provide the test results to HUD within thel5 day time frame, the contract will be canceled immediately without further notice. Further, lIwe understand that if an EBL condition is identified, 1/we havc the option to: I) cancel this contract and receive our earnest moncy deposit back, or 2) complete the sale of the property within the understanding that 1/we \vill, at a minimum, have the property tested for the presence of lead-based paint on all chewable surfaces and, wherc lead-based paint on chewable surfaces is identified, have such paint surfaces abated. _lIwe fully understand that if a blood lead level screening program is not reasonably available or if lIwe refuse to have my/our child(ren) tested, lIwe have the option of closing this salc. I/we hereby acknowledge that this property lIwe am/are purchasing from the Department of Housing and Urban Development may contain lead-based paint. However, despite this possibility, lJwe elect to close the sale on this property. Further, lIwe agree to hold HUD harmless for this action. Signature of Purchaser Signature of Purchaser Date Signature of Witness Date 9'(io CDC 1999-19 Anachment A Page 4 of 4 L\D BASED PAIYf ADDE:-iDL::\1 TO SALES CO "'TRACT - PROPERTY BUILT BEFORE 1978 FIlA CASE NO. PROPERTY ADDRESS PART D PURCHASERS ADDESDUM TO THE SALES CONTRACT- RELEASE OF LEAD-B~SED PA/l\T EVALUATlO/'< CONTlNGEl\'CY l/p"rc/"15<!r /llIlluled Purl A. iI,'nJ E I o/the Lead.Based Putlll Addelld"lIll<J the Sules COlllracl - Propem,'s /J"tll Be}ure /978 (.-fddc..'lldunl), tlll:i purt D mils! bt.' cOmplt.'ll'd as ShUH'1I and pro\'ided to the St!lh'r on or bt!fore the dulf! S/'O\\lI in the Addt.'1ldu.m, Purl B. Of tht.' cOllllflgt'IlC}' IS tCrTlllflatl'd If purchaser l!lIuo/ed Par! A. item E, 2 cht'll rIllS PlIrt D is unnecessary and need 11tH to he completed or pr'O\'ldL.tf tv list.' Seller PURCHASER'S ACK1\0\\"LEDGEi\IE;';T (check appropriate boxes) [ ) Purchaser acknowledges that he/she has received a 15 day opportunity (or other mutually agreed upon perIod) to conduct a risk assessment or lead-based paint inspection for the presence of lead-based paint and/or lead-based paint hazards, that such a nsk assessment or lead-based paint inspection has been made. [ ] Purchaser acknowledges that Seller IS under no obligation to correct any lead-based paint and/or lead- based pamt hazards identified by the lead-based paint inspection and/or risk assessment and hereby removes the contIl1gency and accepts the property II1 its "as is" condllion, without warranty, as deSCribed in Ilem B, ConditIOns of Sale of the contract [ ] Purchaser requests that Seller take the following action to correct the lead-based pamt hazards noted: Lcad-Bascd Paint Hazard Corrcctive Action Rcqucsted Purchaser has attached the risk assessment or inspection report. If Seller refuses thIS request, Purchaser reserves the right to continue WIth the purchase or request cancellation of the sales contract. [ ] Purchaser requests cancellation of the sales contract due to the following defiCIencies indicated m the attached report(s): CERTIFICATION OF ACCUR<\CY The followmg parties have reviewed the infomlation above and certify, to the best of their knowledge, that the infonnatlOn they have provided is true and accurate. Purchaser Date Purc haser Date Broker! Agent Date 9% CDC 1999-19 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of San Bernardino 201 North "En Street, Suite 301 San Bernardino, CA 92401 Attn: Executive Director (Space Above Line Reserved For Use By Recorder) RECORDATION OF THI~ INSTRUMENT IS EXEMPT FROM ALL FEES AND TAXES REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS FOR THE ARR PROGRAM (Name of Oualified Homebuyer) Dated as of , 200 ---ARR PROGRAM: [NAME OF DEVELOPER/PARTICIPANT]--- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ~BEO~~~O~:~OC/3514.2wpd CDC 1999-19 COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS (FOR THE ARR PROGRAM) THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS, (the "ARR Covenant") is made and entered into as of , 200 , by and among (the "ParticipantU), the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency"), and (the "Qualified Homebuyer"), and this ARR Covenant relates to the following facts set forth in Recitals. R E C I TAL S A. The Qualified Homebuyer proposes to acquire a single family residence (the "New Home"), located within the City of San Bernardino (the "City"), from the Participant, to be owned and occupied by the Qualified Homebuyer as their principal residence. The legal description of the New Home is attached hereto as Exhibit "AU and incorporated herein by this reference. B. The Agency has made this property on which the New Home is situated available to the Participant for the purposes as set forth under that certain Aquisition, Rehabilitation Resale (ARR) Agreement dated as of (the "ARR AgreementU) in order to make the New Home available for acquisition by the Qualified Homebuyer from the Participant subject to the terms and conditions of this ARR Covenant; and C. The terms of the ARR Agreement mandate that the acquisition, use and occupancy of the New Home shall be restricted in certain respects for the term as provided herein (the "Qualified Residence PeriodU) in order to ensure that the New Home will be used and occupied in accordance with the ARR Agreement and the affordable single family residential dwelling unit development goals and objectives of the Agency. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 1 CDC 1999-19 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, THE PARTICIPANT AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. Covenant, the following words and terms shall provided in the Recitals or in this Section 1 context of usage of a particular word or require: As used in this ARR have the meaning as unless the specific term may otherwise Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for family size) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167(k) 3b)(3) under the Code, as adj usted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 50052.5. At the time of the close of the New Home Escrow, or later when a proposed Successor-In-Interest acquires the new home the amount of the maximum Affordable Housing Cost payable in connection with the acquisition of the New Home at any time during the Qualified Residence Period shall be calculated as set forth in Health .and Safety Code 50053.5(b) (1) or (2), as applicable. Code. The word "Code" means the Internal Revenue Code of 1986, as amended, and any regulation, rulings or procedures with respect thereto. Delivery Date. The words "Delivery Date" mean the date of deli very of title and possession of the New Home from the Participant to the Qualified Homebuyer at the close of the New Home Escrow. Lower-Income Household The words "Lower Income Household" mean persons and families whose income does not exceed the qualifying limits for lower income families as established and amended form time to time pursuant to Section 8 of the United States Housing Act of SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 2 CDC 1999-19 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Sectretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjsuted for family size and revised annually. As used in this section, "area median income" means the median family income of a geographic area of the state. New Home. The words "New Home" mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as rehabilitated and completed by the Participant and sold to the Qualified Homebuyer. New Home Escrow. The words "New Home Escrow" mean and refer to the real estate conveyance transaction or escrow by and between the Participant and the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In- Interest). The transfer of the New Home from the Participant to the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. Notice of Agency Concurrence. The words "Notice of Agency Concurrence" mean and refer to the acknowledgment in recordable form in which the Agency confirms that the proposed Successor-In-Interest of the Qualified Homebuyer satisfies all of the Adjusted Family Income and other requirements of this ARR Covenant for occupancy of the New Home by the Successor- In-Interest at any time during the Qualified Residence Period. Qualified Homebuyer. The words "Qualified Homebuyer" mean the purchaser of the New Home from the Developer (e. g. : all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Homebuyer shall: (i) have an annual Adj usted Family Income which does not exceed the household income qualification limits of a Lower-Income Household: (ii) shall be a first- time homebuyer, as this term is defined in Health and Safety Code Section 50068.5; and (iii)pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, including all sums SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 3 CDe 1999-19 payable by the Qualified Homebuyer for mortgage financing, insurance, escrow costs. its purchase money and other fees and QuaJ.ified Residence Period. The words "Qualified Residence PeriodH mean the period of time beginning on the Delivery Date and ending on the date which is ten (10) years after the Delivery Date. ARR Covenant. The words "ARR CovenantH mean these Redevelopment Agency of the City of San Bernardino Community Redevelopment Housing Affordability Covenants and Restrictions by and among the Qualified Homebuyer, the Participant and the Agency pertaining to the New Home. Successor-In-Interest. The words "Successor-ln-lnterestH mean and refer to the person, family or household which may acquire the New Home from the Qualified Homebuyer at any time during the Qualified Residence Period by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a "first-time homebuyerH and shall have an income level for the twelve (12) months prior to the date on which the Successor- In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for a Lower-Income Household. Upon acquisition of the New Home the Successor- In-Interest shall be bound by each of the covenants, conditions and restrictions of this ARR Covenant. The titles and headings of the sections of this ARR Covenant have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict the meaning any of the terms or provisions hereof. Section 2. AcknowJ.edgments and Representations of the OuaJ.ified Homebuyer. The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery Date: (a) the total household income for the Qualified Homebuyer does not exceed the maximum amount permitted as Adjusted Family Income for a Lower-Income Household, adjusted for family size; (b) the Qualified Homebuyer intends to promptly occupy the New Home after the Delivery Date as the principal place of residence for a term of at least two (2) years following the Delivery Date and the Qualified Homebuyer has not entered into any arrangement and has no present intention to rent, sell, transfer or assign the New Home to any third party during the Qualified SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 4 CDC 1999-19 Residence Period so as to frustrate the purpose of this Section 33334.3 Covenant; (c) the Qualified Homebuyer has no present intention to lease or rent any room or sublet or rent a portion of the New Home to any relative of the Qualified Homebuyer or to any third person at any time during the Qualified Residence Period; (d) the sum payable each month by the Qualified Homebuyer following the close of the New Home Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Home does not exceed the Affordable Housing Cost for the household; (e) the Qualified Homebuyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax returns filed by all persons who reside in the New Home for the calendar year preceding the close of the New Home Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all person residing in the New Home at the close of the New Home Escrow; (f) The Qualified Homebuyer has been informed by the Participant that this ARR Covenant imposes certain restrictions on the use and occupancy of the New Home during the term of this Section ARR Covenant and that this ARR Covenant imposes certain restrictions on the resale of the New Home during the Qualified Residence Period. The Qualified Homebuyer acknowledges and understands that these restrictions shall be applicable to the New Home and to any resale of the New Home from the Delivery Date to the end of the Qualified Residence Period which is , 201 Dated: Initials of Qualified Homebuyer Section 3. Covenant of the Oualified Homebuver to Maintain Affordability of the New Home During the Oualified Residence Period and Covenant Relating to Sale or Transfer of the New Home Durina the Oualified Residence Period to a Succ~ssor-In-Interest. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 5 CDe 1999-19 (a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the New Home shall be used and, occupied by the Qualified Homebuyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or for another Lower-Income Household as a Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as provided in this Section 3 to verify that each proposed Successor-In-Interest of the Qualified Homebuyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of a Lower- Income Household (based upon the Adjusted Family Income of each household), and that the completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the "Notice of Agency Concurrenceu as provided in Section 3 (d) . (b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any interest therein) to a Successor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least sixty (60) days prior to the date on which the Qualified Homebuyer proposes to transfer title in the New Home to a Successor-In-Interest, the Qualified Homebuyer shall send a written notice to the Agency as provided in Section 17 of the intention of the Qualified Homebuyer to sell the New Home to a Successor-In-Interest which includes the following true and correct information: (i) name of the proposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); (ii) copies of State and federal income tax returns for the Successor-In-Interest for the calendar year preceding the year in which the notice of intention to sell the New Home is given to the Agency; (iii) resale price of the New Home payable by the Successor-In-Interest, including the terms of all purchase money mortgage financing to be assumed, SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 6 CDC 1999-19 provided or obtained by the Successor-In- Interest, escrow costs and charges, realtor broker fees and all other resale costs or charges payable by either the Qualified Homebuyer or the Successor-In-Interest; (iv) name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Homebuyer to the Successor-In-Interest; (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such reference; and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c). (c) Within twenty (20) days following receipt of the notice of intention described in Section 3(b), the Agency shall provide the Qualified Homebuyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In- Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adjusted Family Income and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) has been provided to the Agency. In the event that the Agency may request additional information relating to the. confirmation of the matters described in Section 3(b), the Qualified Homebuyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Home, the Agency shall deliver a written acknowledgment and approval of the resale of the New Home to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3(b) (iv) above, and thereafter the Successor-In-Interest may acquire the New Home subject to the satisfaction of the following conditions: (i) the recordation of the Notice of Agency Concurrence executed by the Successor-In-Interest and the Agency at the close of the resale escrow; SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 7 CDC 1999-19 (ii) the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Homebuyer and the final escrow closing statement for the Successor-In-Interest; and (iii) the other conditions established by the Successor-In-Interest of the resale escrow as Qualified Homebuyer and shall have been satisfied. (e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants and agrees that during the Qualified Residence Period the New Home shall not be leased, subleased, or rented to any third person, except for a temporary period (not to exceed 12 months) in the event of an emergency or other unforseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Homebuyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event wi thin not more than (60) days following the commencement of a temporary rental occupancy of the New Home by a third party, which notice shall set forth the grounds on which the Qualified Homebuyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. Section 4. Maintenance Condition of the New Home. The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that: (a) The exterior areas of the New Home which are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the term of the Qualified Residence Period, there is an occurrence of an adverse condition on any area of the New Home which is subj ect to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Qualified Homebuyer in writing of the Maintenance Deficiency and give the Qualified Homebuyer thirty (30) days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiency" include without limitation the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property use restrictions: SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 8 CDC 1999-19 failure to properly maintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of wed and debris; parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on any other parts of the property which are not covered by a paved and impermeable surface; the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Home. In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Homebuyer ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has failed to comply with the provision of this Section 4(a). If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Home (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c). SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 9 CDe 1999-19 (b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the New Home shall be removed by the Qualified Homebuyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the New Home (exterior areas only) and such graffiti is visible from an adjacent or contiguous public right-of-way and thereafter such graffiti is not removed within 72 hours following the time of its application; then in such event and without notice to the Qualified Homebuyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Section 4(b) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4 (a) or Section 4 (b), including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. In any legal proceeding for enforcing such a lien against the New Home, the prevailing path shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4, shall be a covenant running with the land for the Qualified Residence Period and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable law. Nothing in the foregoing provisions of this Section 4 shall be deemed to preclude the Qualified Homebuyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. SBEOIOOOl/oOC/3514.2wpd 6114199 116 rp 10 CDC 1999-19 Section 5. [RESERVED/NO TEXT] Section 6. [RESERVED/NO TEXT] Section 7. Foreclosure of Purchase Money Mortgaae Loan and Agency Right of First Refusal. (a) During the Qualified Residence Period the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Home at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period the Agency shall have the right of first refusal to purchase the New Home from the Qualified Homebuyer on the same terms which the Qualified Homebuyer may propose to offer the New Home for resale to a Success-In- Interest. The Agency must exercise such a right of first refusal within thirty (30) days following written notification of the intention of the Qualified Homebuyer to resell the New Home, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Homebuyer and close an escrow for the transfer of the New Home to the Agency within sixty (60) days following written notification of the intention of the Qualified Homebuyer to resell the New House. Section B. Covenants to Run with the Land. The Participant, the Agency and the Qualified Homebuyer hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a common plan for the rehabilitation of affordable single family housing improvements within the terri torial jurisdiction of the Agency and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Home and each Successor-In-Interest of the Qualified Homebuyer in the New Home for the term provided in Section 10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this ARR Covenant. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Home or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 11 CDC 1999-19 and restrictions are set forth in such contract, deed or other instrument. Section 9. Burden and Benefit. The Participant, the Agency and the Qualified Homebuyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Homebuyer's legal interest in the New Home is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Homebuyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Home by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable single family housing development goals and objectives of the Agency and in order to make the New Home available for acquisition and occupancy by the Qualified Homebuyer. Section 10. Term. This ARR Covenant shall apply to the New Home and the Qualified Homebuyer and to each Successor-In-Interest as of the Delivery Date for the Qualified Residence Period -- e.g.: this ARR Covenant shall remain in full force and effect for ten (10) years after the Delivery Date. Any provision or section hereof, may be terminated after the Delivery Date upon agreement by the Agency and the Qualified Homebuyer (or the Successor-In- Interest in the New Home), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in its reasonable discretion will not adversely affect the affordable single family housing and development goals of the Agency. Section 11. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Homebuyer to honor or perform any material term or provision of this ARR Covenant shall constitute a breach under this Agreement; provided however, that if the Qualified Homebuyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days after the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Homebuyer written notice of breach specifying the alleged breach which if uncured by the Qualified Homebuyer within thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 12 CDe 1999-19 shall not constitute a waiver of any breach or event of default nor shall it change the time of breach or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 11. Except with respect to rights and remedies expressly declared to be exclusive in this ARR Covenant, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Homebuyer may remain incurred for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 as related to a Maintenance Deficiency at the New Home, upon the occurrence of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Qualified Homebuyer to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (ii) by other action at law or in or convenient to enforce covenants and agreements Homebuyer to the Agency. equity as necessary the obligations, of the Qualified (b) No third party shall have any right or power to enforce any provision of this ARR Covenant on behalf of the Agency or to compel the Agency to enforce any provision of this ARR Covenant against the Qualified Homebuyer on the New Home. Section 12. Governing Law. This Section 33334.3 Covenant shall be governed by the laws of the State of California. Section 13. Amendment. This ARR Covenant may be amended after the Delivery Date only by a written instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as applicable) and by the Agency. The Participant shall have not any SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 13 CDe 1999-19 right or power to approve any such amendment to this ARR Covenant, and the execution by the Participant of any such amendment after the Delivery Date shall not be required. Section 14. Attorney's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this ARR Covenant or otherwise arising out of this ARR Covenant, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 15. Severability. If any provision of this ARR Covenant shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this ARR Covenant which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Section 16. Time is of the Essence. For each provision of this ARR Covenant which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 17. Notice. Any notice required to be given under this ARR Covenant shall be given by the Agency or by the Qualified Homebuyer, as applicable, by personal delivery or by First Class Uni ted States mail at the addresses specified below or at such other address as may be specified in writing by the parties hereto: If to the Agency: Executive Director Redevelopment Agency of the City of San Bernardino 201 North "En Street, Suite 301 San Bernardino, CA 92401 Phone: (909) 384-5081 If to the Qualified Homebuyer: Attn: Phone: Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personally delivered, when received SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 14 CDe 1999-19 by the Executive Director of the Agency or the Qualified Homebuyer, as applicable. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 15 CDC 1999-19 IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer and the Agency have caused this Covenant to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this ARR Covenant is authorized under Health and Safety Code Section 33334.3(g). QUALIFIED HOME BUYER Dated: By: By: PARTICIPANT Dated: By: AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director [ALL SIGNATURES MUST BE NOTARIZED] Approved as to Form: By: Agency Counsel SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 16 CDC 1999-19 EXHIBIT "A" Legal Description of the New Home SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 17 CDC 1999-19 [address of Participant under the ARR Agreement] ) ) ) ) ) ) ) ) ) ) ) (Space above line reserved for use by Recorder) RECORDING REQUESTED BY Redevelopment Agency of the City of San Bernardino AND WHEN RECORDED MAIL PROPERTY TAX BILL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS [ARR Program: (Name of Grantee/Participant)] PART A THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS (the "Quitclaim Deed") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") in certain real property situated at , San Bernardino, California (the "Property") to , (the "Participant"), subject to the community redevelopment affordable single family housing conditions, covenants and restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the community redevelopment affordable single family housing conditions, covenants and restrictions of this Quitclaim Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBE010001/DOC/3513.1 6/15/99 1200 ct Page 1 of 7 CDC 1999-19 (-- The Property--) on Official Records of the Office of San Bernardino County. file in the of the Recorder PART B The quitclaim of the Property by the Agency to the Participant is expressly subject to the satisfaction of the following community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain Acquisition, Rehabilitation, Resale Agreement dated (the "ARR Agreement") by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty-five (25) years commencing on the date of recordation of this Quitclaim Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated for occupancy only to a "person" or a "family" who is a "Qualified Homebuyer" for a term of the shorter period of either: (i) twenty-five (25) years from the date of recordation of this Quitclaim Deed; or (ii) the term, as provided in the ARR Agreement Covenant described in subparagraph 3, below. The words "Qualified Homebuyer" refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first-time homebuyer," as defined in Health and Safety Code Section 50068.5, and whose annual income during the twelve (12) months preceding the date of initial occupancy of the Property by the Qualified Homebuyer does not exceed the income qualification limits for "lower income households", as defined in Health and Safety Code Section 50079.5 (Statutes of 1979: Chapter 96). Health and Safety Code Section 50079.5 provides: "'Lower Income households' means persons and families whose income does not exceed the qualifying limits for lower income SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 2 of 7 CDe 1999-19 families as established and amended from time to time pursuant to Section 8 of the Uni ted States Housing Act of 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. As used in this section, 'area median income' means the median family income of a geographic area of the state." 3. As a condition precedent to any transfer, sale, conveyance, grant or other hypothecation by the Participant of the Property to a Qualified Homebuyer the "Acquisition, Rehabilitation Resale Affordability Use and Occupancy Covenant" (the "ARR Covenant"), substantially in the form attached hereto as Exhibit "A-1" or Exhibit "A-2," as applicable and as incorporated herein by this reference shall be fully executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The final form of the ARR Covenant shall be consistent with the terms and conditions 0/ the ARR Agreement as applicable to the Qualified Homeb.uyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the ARR Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the ARR Covenant shall be a separate community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and assign of the Qualified Homebuyer for the term as provided in the ARR Covenant. 4. Prior to the recordation of the ARR Covenant as provided in subparagraph 3 of PART B of this Quitclaim Deed, the Property shall not be offered for sale or sold to a Qualified Homebuyer for a sale price which exceeds more than Dollars ($ ) , exclusive of customary and reasonable "escrow" and sales SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 3 of 7 CDC 1999-19 transactional costs which may be normally allocated to a Qualified Homebuyer by an owner-builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of PART B of the Quitclaim Deed shall have no further force or effect upon the property after the date of the complete execution and recordation of the ARR Covenant. 5. The Property shall be subject to the following affordable housing redevelopment covenant in perpetuity and the text which appears in this Quitclaim Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enj oyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection,location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PART C During the term of subparagraph 2 of PART B, but prior to the recordation of a fully-executed copy of the ARR Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales and ancillary business activity on the Property associated with the improvement and sale by the Developer, pursuant to the ARR Agreement, of an affordable single family dwelling unit on the Property prior a Qualified Homebuyer. The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the ARR Covenant. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 4 of 7 CDC 1999-19 PART D The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an increase, improvement and preservation of the communi ty' s supply of low- and moderate-income housing. The transfer of the Property by the Agency to the Developer for this purpose and the recordation of this Quitclaim Deed is authorized by Health and Safety Code Sections 33334.2 and 33334.3, and other applicable law and actions of the Agency, including without limitation, the ARR Agreement. PART E Upon the delivery of this Quitclaim Deed to the Participant, the community redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by either the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(f) (2) against the Participant and each successor in interest or assignee of the Participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 5 of 7 CDe 1999-19 THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized signatures of the Executive Director of the Agency. AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic By: Executive Director Dated: Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] [NOTE: Exhibit "A-l" MAP Assistance) General Form of ARR Covenant (Agency Exhibit "A-2" Program) ] General Form of ARR Covenant (HOME SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 6 of 7 CDe 1999-19 ACCEPTANCE OF QUITCLAIM DEED AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT (the "Participant"), hereby accepts the deli very of the instrument identified above as the "Quitclaim Deed of a Public Agency and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Quitclaim Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San Bernardino, subject to the conditions, covenants and restrictions contained in the Quitclaim Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property to be improved and rehabilitated as set forth in the ARR Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Quitclaim Deed which touch and concern the Property and are community redevelopment covenants which run with the land. PARTICIPANT Dated: By Its: By: Its [NOTARY JURAT ATTACHED] SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 7 of 7 CDe 1999-19 HUD UNIT PURCHASE AND SALE AGREEMENT Property Address: THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is dated for identification purposes only, as of , 199 , and is made and entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and (the "Participant"), with reference to the following: RECITALS A. WHEREAS, the Agency and the Secretary of Housing and Urban Development (the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition Program a copy of which is attached hereto as Exhibit "A" (the "HUD Contract") regarding sale by the Secretary to the Agency of that certain property commonly known as , San Bernardino, California (the "HUD Unit"). A legal description of the HUD Unit is attached hereto as Exhibit "B"; and B. WHEREAS, subj ect to the terms and conditions of that certain Acquisition, Rehabilitation and Resale (ARR) Agreement dated 1999 (the "ARR Agreement"), by and between the Participant and the Agency and this Agreement, Agency desires to sell the HUD Unit to the Participant and the Participant desires to purchase the HUD Unit from the Agency at the close of the "HUD Escrow" as set forth herein. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS: 1. Warranty of Authority by Participant. The Participant warrants that it is a under the laws of the State of California, and is authorized to execute this Agreement and all of the documents and instruments contemplated hereby, including, without limitation, supplemental escrow instructions and the Acceptance of Agency Quitclaim Deed; and that this transaction has been approved by [resolution of its board of directors]. A certified copy of that [resolution] which remains in effect, will be delivered to Agency before the close of the HUD Escrow as set forth herein. SBEO/0001/DOC/3515 6/15/99 245 ct 1 CDC 1999-19 2. Agreement to Sell and to Purchase. Subject to the terms and conditions of this Agreement, the Agency agrees to sell and the Participant agrees to purchase the HUD Unit. 3. Purchase Price. The "Purchase Price" for the HUD Unit is the same sum in cash or immediately available funds in United States Currency as the discounted purchase price which the Agency has agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit. The Purchaser Price shall be payable by the Participant's delivery of the full amount to the escrow holder in cash or by wire transfer of immediately available funds at least one(l) business day before close of the HUD Escrow or by cashier's check during business hours at least three(3) business days before the close the HUD Escrow. 4. HUD Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees to pay all of the costs of the escrow holder in the HUD Escrow including all amounts charged to the account of the Secretary and the Agency. The escrow holder is hereby instructed to collect such costs and charges from the Participant at the close of the HUD Escrow. 5. Conditions for the Benefit of the Agency. The obligation of the Agency to perform this Agreement is subject to the satisfaction of the following conditions, which are for the Agency's benefit only: (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract wi thin fifteen(15) days after the date hereof; (b) 'that the Secretary perform under the HUD Contract and the title of the HUD Unit actually be transferred from HUD to the Agency within forty-five(45) days after the date hereof; (c) the Agency shall have received, satisfactory to the Executive Director, a the insurance required pursuant to Section in form and substance certificate evidencing 16 of this Agreement; (d) that the Participant has duly execute and deliver to the escrow holder, in recordable form the Acceptance of the Participant of the Agency Quitclaim Deed. (e) that the Participant not otherwise be in default under its other obligations to the Agency under the ARR Agreement. SBEO/OOOl/DOC/3515 6/15/99 245 ct 2 CDe 1999-19 The conditions set forth above are for the Agency's benefit only and the Executive Director of the Agency (the "Executive DirectorU) may waive all or any part of such rights by written notice to the Participant and escrow holder. If any of said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Executive Director, the Agency may thereafter terminate this Agreement without any liability on the part of the Agency by giving written notice of termination to the escrow holder, with a copy to the Participant. Escrow holder shall thereupon, without further consent from the Participant, return to each party the documents, if any, deposited by them. 6. Conditions for Participant's Benefit. Participant to perform this Agreement satisfaction of the following conditions, Participant's benefit only: The obligation of is subj ect to which are for the the the (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen (15) days after the date hereof; and (b) HUD Unit after the that the Secretary actually transfer date hereof. perform under the HUD Contract and the from HUD within forty-five(45) days The conditions set forth above are for the Participant's benefit only and the Participant may waive all or any part of such rights by written notice to the Agency and the escrow holder. If any said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Participant, subject to the approval of the Secretary and the Agency, the Participant may thereafter terminate this Agreement without any liability on the part of the Participant by giving written notice of termination to the escrow holder, with a copy to the Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each party the documents, if any, deposited by them. 7. Escrow. The transfer of the HUD Unit to the Participant shall be consummated through an escrow established with the escrow agent engaged by the Secretary to handle the transfer of the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a schedule coordinated with the closing or the transfer of the HUD Unit between the Secretary and the Agency under the HUD Contract. This Agreement shall constitute the escrow instructions to the escrow holder of the Participant and the Agency with respect to the HUD Unit. The Agency and the Participant shall execute such SBEO/0001/DOC/3515 6/15/99 245 ct 3 CDC 1999-19 additional escrow instructions as may be reasonably required by the escrow holder. 8. Term of Escrow. Escrow shall close concurrently with the close of escrow under the HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the County of San Bernardino, California. 9. Condition of Title. The Agency shall convey to the Participant by quitclaim deed all of the right, title and interest in the HUD Unit which the Agency receives from the Secretary under the HUD Contract. The form of the Agency Quitclaim Deed is attached hereto as Exhibit "C" and incorporated herein by this reference. 10. Title Insurance. The Agency shall not be responsible for providing any title insurance to the Participant in connection with the transfer of title in the HUD Unit to the Participant. Any title insurance desired by the Participant shall be ordered and paid for by the Participant at its sole cost and expense. 11. Prorations. All assessments, including improvement assessments which are available for payment without interest or penalty for advance payment, taxes, rent, and ground rent, if any, shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently with the escrow under the HUD Contract, through which escrow such items will be prorated between the Secretary and the Agency, the parties acknowledge and agree that the Participant shall be charged for such prorations in precisely the same amount as the Agency is charged under the HUD Contract. 12. Escrow Closing Costs. The Participant shall pay all escrow closing costs of both parties, including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the Participant shall pay all closing costs and expenses charged to the Agency in the escrow by which HUD transfers the HUD Unit to the Participant. 13. Closina. At the Close of Escrow, (a) the Agency shall deliver to the Participant through escrow a the Agency Quitclaim Deed conveying the HUD Unit to the Participant, (b) the Participant shall deliver to the Agency through escrow the acceptance of the Agency Quitclaim Deed, and (c) the escrow holder shall collect and pay the SBEO/0001/DOC/3515 6/15/99 245 ct 4 CDC 1999-19 sums indicated for the transfer of the HUD Unit under the HUD Contract and this Agreement and deliver such other documents to the parties in accordance with the instructions of each of them. At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed to be recorded in the Official Records of the County of San Bernardino, California. 14. Condition of the HUD Unit. The Agency makes no representation or warranty to the Participant or to any third party concerning the condition of the HUD Unit, including, without limitation, mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and the Agency will make no repairs to the HUD Unit either before or after execution of this Agreement. The Participant understands that the Agency does not guarantee or warrant that the HUD Unit is free of visible or hidden structural defect, termite damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or otherwise usable. Participant acknowledges responsibility for taking such action and conducting such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit in the same condition delivered to the Agency by the Secretary, in an "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS" condition. 15. Possession: Repairs. The Participant may not perform repairs nor take possession of the HUD Unit until the escrow is closed. At the close of the HUD Escrow, the Participant may take possession of the HUD Unit and promptly commence the work of rehabilitation as required for the HUD Unit under the ARR Agreement. 16. Insurance. Prior to the Close of Escrow, the Participant shall obtain and shall thereafter maintain in full force and effect at all times a broad-form comprehensive general liability policy with a limit of not less than $1,000,000.00. Such insurance shall provide for a 3D-day notice to the Agency before cancellation of the policy and shall name the Agency as an additional insured as to claims arising out of the work to be performed on the HUD Unit following the Close of Escrow pursuant to the ARR Agreement. 17. Assignment. The Participant and the Agency each agree that this Agreement shall be binding upon their respective, heirs, executors, administrators, successors or assigns and is not assignable by the Participant unless the written consent of the Executive Director is first obtained, which consent the Executive Director may withhold in his or her sole ,and absolute discretion. SBEO/0001/DOC/3515 6/15/99 245 ct 5 CDe 1999-19 18. Notices. All notices, demands and requests which may be given by either party to the other or to the escrow holder shall be in writing and shall be deemed to be given upon personal delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt requested, postage prepaid, addressed to the party to be notified at the address following the party's signature or if addressed to the escrow holder, at the address set forth in the supplemental escrow instruments signed by the parties. Either party may designate by written notice to the other party in the manner set forth in this Agreement another address for notice. 19. Miscellaneous Provisions. 19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to enforce, any provision of this Agreement shall not be a waiver of any further breach of such provision hereof. The waiver by either or both parties of the time for performing an act shall not be a waiver of the time for performing any other act or acts required hereunder. 19.2 Modifications. No change or addition to this Agreement or any part hereof shall be valid unless in writing and signed by each of the parties. 19.3 Governing Law. California law. This Agreement shall be governed by 19.4 Headings. The headings in this Agreement are for convenience only and shall not be used to interpret this Agreement. 19.5 Further Acts. Each party agrees to take such further action and to execute and deliver such further documents as may be necessary to carry out the purposes of the ARR Agreement with respect to the HUD Unit and this Agreement. 19.6 Attornevs' Fees. If either party incurs attorneys' fees to enforce this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees as set by the court from the other party. 19.7 No Real Estate Brokers Commission Payable By the Agency. The Agency shall not be responsible for the payment of any real estate brokers commission or finders fee in connection with the escrow or the transfer of the HUD Unit to the Participant. SBEO/0001/DOC/3515 6/15/99 245 ct 6 CDC 1999-19 19.8 Time. Agreement. Time is of the essence with respect to this IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director PARTICIPANT By: Its: By: Its: SBEO/0001/DOC/3515 6/15/99 245 ct 7 CDC 1999-19 EXHIBIT "E" 1999 ARR AGREEMENT "ARR Rehabilitation Standards for Each HUn Units" CDe 1999-19 ARR REHABILITATION STANDARDS I. GENERAL DESCRIPTION The Participant will acquire HUD Units and cause the rehabilitation and resale of the housing thereon. II. REHABILITATION STANDARDS All of the improvements to be provided by the Participant on the HUD Units constitute the "Project". The Project shall be developed in accordance with applicable building and safety codes. III. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Project Site, and the suitability of the Project Site. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Project Site entirely suitable for such development. Participant has undertaken all investigation of the Project Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the rehabilitation of the project. IV. AMENITIES Each HUD Unit shall have full amenities and shall include the following: front yard landscaping and automatic sprinklers, side and rear yard fencing. V. REHABILITATION STANDARDS Rehabilitation Standards shall include Section 8 Housing Quality Standard (HQS) Minimums and are not limited to: 1. Interior work to make structures more livable, such as, plastering, painting, new sub flooring and tile work. 2. Repair, restoration or replacement of important parts of structures, such as, heating systems, plumbing systems, electrical components, kitchen appliances (stoves, refrigerator) . 3. Installation of water/energy conservation devices. 4. Installation of security devices. 1 \\EDA _SAN BERDO\PUBLlC\Fonns\ARR Prognun\ARR Rehabilitation St&ndards.doc: CDC 1999-19 5. Wheelchair ramps, kitchen and/or bathroom modifications related to a disability of a household member. The following list contains some of the typical repair items and replacement activities: 6. Replacement of plumbing fixtures. 7. Addition of electrical outlets and/or wiring. 8. Insulation. 9. Replacement of roof. 10. Repair and/or enlargement of inadequate kitchen and/or bathroom. 11. Repair/replacement of furnaces and air conditioners. 12. Plaster and dry rot repair. 13. Repair/replacement of porches, steps, fences and walkways. 14. Termite, rodent or vermin fumigation. 15. Addition of closets or other minor built-ins. 16. Chimney repair/replacement. 17. Repair/replacement of railing. 18. Repair/replacement of windows and doors. 19 . New ceilings. 20. Weather stripping for windows and doors. 21. Repair/replacement/addition of gutters and down spouts. 22. Repair/replacement of exterior trim. 23. Repair/replacement of stucco (wrap & stucco of wood siding structures). 24. Repair of foundation, structural repair. 25. Replacement of existing toilets, tub and shower, lavatories (cabinets). 26. Carpeting and other flooring. All other items are optional, per agreement, between contractor and buyer. 2 \\EDA_SAN BERDO\PUBLlC\Fonns\ARR Program\ARR Rehabilitation Standards.doc CDe 1999-19 EXHIBIT "F" 1999 ARR AGREEMENT "HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents" CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM (MAP) ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM Date: Property Address: Borrower( s): MAP Amount: FIRST TIME HOME BUYER PROGRAM - MAP CHECKLIST Latest Tax Return (1040's) and 2 Current Pay Stubs Application Affidavit - Signed by Borrower Verification for Applicant Eligibility (Completed by Lender) Preliminary Escrow Instructions o o o o Complete Demand for Funds Letter 0 Submit MAP Docs (Loan Agreement, Deed of Trust, Promissory Note, CC & Rs) 0 Seller (ARR Contractor) must call EDA Inspector for a Final Inspection (10 days prior to close of escrow) Final Escrow Documents (Includes Amendments) First Time Home Buyers Class Certificate o o Lender Representative: \'E.DA SAN BEROOYJUBUCV=onnslNlap-ARR\MAP-Check Ust.doc D2f1 &i99 MP CDe 1999-19 City of San Bernardino . ECONOMIC DEVELOPMENT AGENCY VERIFICA TION FOR APPLICANT ELIGIBILITY . Redevelopment . Community Development . Housing . Business: - Recruitment - Retention - Revitalization . Main Street, Inc. ACQUISITION, REHABILITATION AND RESALE PROGRAM (ARR) AND MORTGAGE ASSISTANCE PROGRAM (MAP) Phone Number Household Size # of Minor Children Name of Applicant Current Address Property Address to be Purchased City/State San Bernardino, California Zip Code Name of Lender Contact Person Loan Number Phone Number Fax Number *Annual & Monthly Income (See Below) $ Near $ IMonth Income used by the lender to qualify for the loan, if different than annual income of application. $ Near $ /Month Monthly Consumer Debt $ /Month Max Loan Amount $ Principal & Interest $ /Month Sales Price $ Est. Property Taxes $ /Month Buyer Down $ ($500 Min.) Est. Insurance $ /Month Map Amount $ Mort. Ins (If Applicable) $ /Month TYPE OF LOAN OFNMA 0 FHA 0 Other Total PIT! $ /Month Debt-to-Income Ratios as Calculated by Lender: Housing Costs % TotalDe~ % Terms of Loan Interest Rate # of Years o Fixed Note: Variable Loans are Not Permitted. Check Applicable 50% or less 0 51 % - 80% 0 81%-115%0 "Note: In order to qualify for tile MAP your income may not exceed tile following: Lender/Escrow Representative - Signature Date Signature of Applicant Date Signature of Applicant Date 201 North E Street, Suite 301. San Bernardino, California 92401-1507. (909) 384-5081. FAX (909) 888-9413 CDC 1999-19 HOUSEHOLD SIZE 1999 Income Level I 2 3 4 5 6 7 8 Very Low (50%) $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Lower (80%)* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Median (100%) $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 Moderate (120%)** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 * The maximum income level for MAP assistance under federal HOME. Under MAP HOME - property value at the time of sales must not exceed 95% of the County's median purchase price. ** The maximum income level for MAP assistance under State Redevelopment Law. Under MAP State Redevelopment Law the affordable housing costs apply (Complete Housing Affordability Worksheet) PLEASE CHECK THE FOLLOWING o Sr. Citizen(s) - 62 or Older o Black o American Indian o Female Head of Household o Hispanic o White o Disabled One or More o Other o Asian or Pacific Islander ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGIBILITY FOR MAP IS THE SOLE RESPONSIBILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. ANY QUESTIONS CALL (909) 384-5081. P:\Fonns\Jl.iortgage Assistance\MAP.Applicant Eligibility.doc (Revised 7/99) CDe 1999-19. MORTGAGE ASSISTANCE PROGRAM ACQUISITION/REHABILIT A TION & RESALE PROGRAM APPLICATION AFFIDAVIT NOTE: ALL BLANKS ON THIS FORM MUST BE COMPLETED! THERE ARE IMPORTANT LEGAL CONSEQUENCES TO THIS AFFIDAVIT: READ IT CAREFULLY BEFORE SIGNING. 1. I (we) the undersigned, as part of my (our) application for Acquisition, Rehab, Resale (A.R.R.) and Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of San Bernardino, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we), being first duly sworn, state the following: I (we) certify that the following are: a. My (our) legal Name(s): b. Social Security # c. Current residences: d. Telephone # The Unit (the "Residence") being purchased is a single-family home located in the City of San Bernardino at the following address: 2. I (we) certify that my (our) current gross annual household income, including income of all adult persons intending to occupy the Residence, is $ . I (we) understand that I (we) am (are) not eligible for a ARR- MAP unless my (our) gross annual household income does not exceed 80% of the median income for San Bernardino, and as specifically set forth in the Verification of Applicant Eligibility form. 3. I (we) certify that the Residence will be occupied and used as my (our) principal place of residence within forty-five (45) days after the date the ARR-MAP loan has closed. I (we) certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not more than fifteen percent (IS) of the area of the Residence will be used in a trade or business. I (we) certify that I (we) will notify the Agency in writing if the Residence ceases to be my (our) principal Residence. Failure to occupy the Residence will result in the Agency accelerating the repayment of the Agency ARR-MAP Loan. 4. If the loan application is for a loan on a newly constructed home, I (we) certify that the Residence has not and will not be occupied prior to loan commitment from the Agency. CDC 1999-19 5. I (we) understand that I (we) am (are) not eligible for a ARR-MAP from the Agency under this program if I (we) individually or together had a present ownership interest in a principal residence within three (3) years prior to date of application. I (we) also understand that I (we) cannot have an ownership interest in a principal residence between the date of application and closing. For this purpose, a principal residence includes a single family residence, condominium, share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law), or occupancy in a multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by any means, whether outright or partial, including property subject to mortgage or other security interest. An ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy by the entirety, or a life estate interest. I (we) certify that I (we) have listed below all places of residence, whether owned or not, for a three-year period from date of application. 6. Previous Address: (Past Three Years) Owned Rented Other BeginninglEnding Date of Residencv From: End: Address of Residence All answers of "Other" must be fully explained; use additional paper if necessary. 7. Name, address and telephone of the owner/landlord who can verify each residence listed above which was not owned by the applicant. Landlord Name Address Telephone No. 8. I (we) certify that the total purchase price of the Residence and land, including all construction items, all commissions, all builder's fees, hook-up and tap-in fees, permits, architectural fees, all site improvements, discount points paid by the seller, work credit, subcontracted items, or construction loan interest, but excluding any closing costs and other permanent financing charges will not exceed the purchase price limitation applicable to the Residence below: Maximum Sales Price (Single Family Unit) $150,000. 9. I (we) further certify that no other agreement, either verbal or written is presently contemplated for the completion of the purchase of the Residence. 10. I (we) further certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified mortgage bond or a qualified veteran's mortgage bond. No person related to me (as defined in CDC 1999-19 applicable federal or state laws and regulations) has or is expected to have an interest as a creditor in the Mortgage loan being acquired for the Residence. 11. I (we) understand and agree that if a ARR-MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 12. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the ARR-MAP guidelines. 13. I (we) understand that the decision to make a first mortgage loan is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan. 14. I (we) cannot close my (our) loan prior to receiving a ARR-MAP loan approval. 15. I (we) acknowledge and understand that this Application Affidavit will be relied upon for the purpose of determining my (our) eligibility for a ARR-MAP. (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me (us) in connection with an application for a ARR-MAP may constitute a federal violation punishable by a fine and/or denial of my (our) application for a ARR-MAP loan. Ifa ARR- MAP loan commitment has been issued prior to discovery of the false statement, immediate cancellation of the ARR-MAP will occur which will be in addition to any criminal penalty imposed by law. Dated: Signature of Applicant(s) Dated: Signature of Applicant(s) P:\FormslMortgage AssistancelMAP.Application Affidavit.doc CDC 1999-19 FIRST TIME HOME BUYER MORTGAGE ASSISTANCE PROGRAM DISCLOSURE STATEMENT I/We (Participant) understand and agree that the provision of financial assistance from the Redevelopment Agency of the City of San Bernardino (the "Agency") under the First Time Home Buyer Mortgage Assistance Program (the "Program") is conditioned on a number of factors, including, but not limited to (all terms not otherwise defined herein shall have the meaning provided in the Loan Agreement by and between the Agency and the Participant): . I/We must find a single-family detached home within the City of San Bernardino which I/We can afford (the "Property"). . I/We must qualify for a home loan from an institutional lender acceptable to the Agency. . I/We must qualify for assistance under the guidelines of the Program. . I/We must not have owned any interest in any residential real property during the past three (3) years. I/We further understand and agree that: I/We will be responsible for repaying the amount of the Note. The Note will be due and payable upon: (i) the sale of the Property, (ii) the transfer of any interest in the Property, (iii) refinancing of any lien or encumbrance to which the Agency Deed of Trust is subordinate, or (iv) I/We are no longer an occupant of the Property or are in default of any obligation under the Loan Agreement. . I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the Agreement is signed by sending a notice of my/our decision to rescind or cancel the Agency Loan to: Redevelopment Agency of the City of San Bernardino Housing Division 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 Attn: Housing Division Manager . An appraisal fee may be payable upon the following: (i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) I/We no longer occupy the Property, or (iv) I/We are/am in default of any provision of the Loan Agreement. . The Agency shall not be held responsible for any costs associated with the home I/We 1 \\EDA _SAN BERDOIPUBLIC\FonnslMortgage Assislance\2-MAP-DISCLOSURE.doc CDC 1999-19 purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of the Property. . The Agency cannot ensure that information provided by or on my/our behalf will be confidential. . The Agency shall not be responsible for the selection of a home, the selection of a lender providing funds assisting in the purchase of the home, provide information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/W e assume all responsibility for determining whether I/We will inform myself/ourselves as to the availability and terms of other public or private loans. . The Agency shall not be charged with the knowledge of the contents of the ocuments of the lender. DATED 19 DATED 19 DATED 19 2 \\EDA _SAN BERDOIPUBLlClForrnslMortgage Assistance\2-MAP-DISCLOSURE.doc CDC 1999-19 14 of 8 ACQUISITION, REHABILITATION RESALE (ARR) AGREEMENT By and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO And ~J~J~ ACQUISITION, REHABILITATION RESALE (ARR) ("ARR Participant") CDC 1999-19 TABLE OF CONTENTS I. [100] SUBJECT OF AGREEMENT ..................................................................................2 A. [101] Purpose of Agreement......................................................................................... 2 B. [102] The HUD Units ...................................................................................................3 C. [103] Parties to the Agreement ..................................................................................... 3 1. [104] The Agency ...................................................................................................3 2. [105] The Participant ..............................................................................................3 3. [106] Prohibition Against Change in Ownership, Management and Control of the Participant ......................... ........ ............................................ ... ............................... 4 4. [107] Benefits of Project......................................................................................... 4 II. [200] AGENCY ASSISTANCE .........................................................................................4 A. [201] The Project .......................................................................................................... 4 B. [202] Agency Assistance .............................................................................................. 5 C. [203] Term of Agreement ............................................................................................. 5 D. [204] Participant Assistance ......................................................................................... 5 E. [205] HUD Escrow ....................................................................................................... 7 F. [206] Affordable Housing Cost .................................................................................... 7 Ill. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS .................................. 7 A. [301] Rehabilitation by Participant............................................................................... 7 1. [302] Cost of Rehabilitation........................................................ ............................ 8 2. [303] Bodily Injury and Property Damage Insurance............................................. 8 3. [304] Rights of Access............................................................................................9 4. [305] Local, State and Federal Laws ...................................................................... 9 5. [306] Anti-Discrimination During Rehabilitation .................................................. 9 B. [307] Taxes, Assessments, Encumbrances and Liens................................................... 9 C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit............................... 9 CDC 1999-19 D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders.................... 10 [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation.. ......... ......... ..... .............. ............... ......... ..................................... 10 E. [311] Right of Agency to Satisfy Other Liens on the Project..................................... 10 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS ......... 11 A. [401] Uses - Covenants Running with the Land......................................................... 11 B. [402] Maintenance of the HUD Units......................................................................... 11 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation........................................................................ ..... 13 V. [500] GENERAL PROVISIONS...................................................................................... 13 1. [501] Termination and Breach.................................................................................... 13 2. [502] Notice ................................................................................................................ 14 3. [503] Conflicts ofInterest; Nonliability ..................................................................... 14 4. [504] Inspection of Books, Records and Reports ....................................................... 14 5. [505] Indemnification ................................................................................................ 15 VI. [600] SPECIAL PROVISIONS ........................................................................................ 15 1. [601] Submission of Documents to Agency for Approval......................................... 15 2. [602] Successors in Interest ........................................................................................ 15 VII. [700] ENTIRE AGREEMENT, WAIVERS ..................................................................... 15 VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCy........................... 16 [801] Time for Acceptance ............................................................................................... 16 EXHIBIT A - EXHIBIT B - EXHIBIT C - EXHIBIT D - EXHIBIT E EXHIBIT F Map of ARR Zone Current Household Income Listings For Qualified Homebuyers ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant HUD Escrow Documents (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents ARR Rehabilitation Standards for Each HUD Unit HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents CDC 1999-19 ACOUISITION. REHABILITATION. & RESALE (ARR) P ARTICIP ATION AGREEMENT THIS AGREEMENT(the "Agreement") this 21sT day of June, 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and KSR Financial (the "Participant"). Agency and Participant hereby agree as follows: RECITALS WHEREAS, Agency is a California Redevelopment Agency engaged in carrying out its public purposes, including, without limitation, increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City"); and WHEREAS, the u.S. Department of Housing & Urban Development (HUD) has designated that certain area within the City shown on the map attached hereto as Exhibit "A" as the Acquisition, Rehabilitation and Resale (ARR) Revitalization Zone (the "Zone"), and has granted the City exclusivity to purchase directly from HUD, certain single family dwelling units owned by HUD REO's (the "HUD Units") at a discount off the As Is Value of each such HUD Unit (the "ARR Program") which the Agency as administrator for the City under the ARR Program, shall concurrently transfer title to the HUD Unit to the Participant for rehabilitation and resale pursuant to the terms and conditions of this Agreement; and WHEREAS, the Agency has also been designated by the Mayor and Common Council as the administrator of the HOME Program (the National Affordable Housing Act of 1990) on behalf of the City, with specific intent to expand the supply of decent, safe, sanitary and affordable housing, within a City's jurisdiction; and WHEREAS, the Agency may use either federal HOME Program funds or State Redevelopment low and moderate income funds to financially assist qualified first-time homebuyers (herein "Qualified Homebuyer") in the acquisition of HUD Units purchased directly from the Participant; provided however that the value of the HUD Unit to be acquired by a Qualified Homebuyer for which the Agency may provide purchase money mortgage assistance under either the HOME Program or under the other affordable housing assistance programs of the Agency (herein "MAP Program") must have a value that does not exceed 95% of the area median purchase price; and WHEREAS, with respect to the HUD Units, Agency desires to implement the ARR Program pursuant to which: a. Agency would buy one or more HUD Units directly from HUD on condition that the Participant purchases each such HUD Unit from the Agency at the discounted price which HUD offers to the Agency; and 1 CDC 1999-19 b. The Participant shall promptly rehabilitate the HUD Unit in accordance with rehabilitation standards set forth herein, and thereupon sell the HUD Unit, to an eligible low or moderate income buyer (e.g., a Qualified Homebuyer) at affordable housing costs pursuant to State or Federal requirements, depending on the source of funding (i.e., if Qualified Homebuyer uses HOME funds their income shall not exceed 80% of median income and State Redevelopment Low/Moderate Income Funds shall not exceed 120% of median income); and c. Prior to purchasing a HUD Unit from Agency, Participant shall provide satisfactory evidence to the Agency of all financing which shall include all costs associated with the acquisition, rehabilitation and disposition of the HUD Unit by the Participant. Based on receipt of such evidence of financing, the Agency shall accept or reject any offer received from the Participant to acquire a HUD Unit. The Participant shall complete the steps noted in Exhibit "C", attached hereto and incorporated herein by reference with respect to its acquisition and disposition of each HUD Unit to a Qualified Homebuyer; and d. If the Agency accepts any offer from Participant to purchase a HUD Unit, the Agency and Participant will open escrows (the "HUD Escrow") which shall close concurrently such that the escrow by which HUD shall transfer a HUD Unit to the Agency shall close concurrently with the escrow through which the Agency shall transfer that HUD Unit to the Participant; and e. Promptly after the closing of the HUD Escrow, the Participant will rehabilitate the HUD Unit within the timeframe herein, and sell it at affordable costs (the "Affordable Housing Costs") to a person or family of low or moderate income for owner occupancy purposes at the close of an escrow by and between the Participant and the Qualified Homebuyer (the "New Home Escrow"). The maximum income criteria applicable to a Qualified Homebuyer will be based on the type of financial assistance, if any, which the Agency provides to the respective Qualified Homebuyer at the close of a New Home Escrow (i.e., State Redevelopment Low/Moderate Income Funds up to 120% of median income or HOME Funds up to 80% of median income). The current 1999 Income Limits are noted in Exhibit "B". WHEREAS, Participant is a well established housing provider that has the experience, qualifications and desires to participate in the above described ARR Program. NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, Agency and Participant agree as follows: 1. [100] SUBJECT OF AGREEMENT A. [l01] Purpose of Agreement The purpose of this Agreement is to effectuate various redevelopment plans for the City of San Bernardino (the "City"), by providing for Agency assistance to Participant in connection with 2 CDC 1999-19 the acquisition, rehabilitation and disposition of the HUD Units hereinafter set forth. The acquisition, rehabilitation and resale of the HUD Units pursuant to this Agreement is in the vital and best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting on behalf of the Agency, has determined that the acquisition, rehabilitation, resale and uses contemplated by this Agreement will benefit the low-and moderate- income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Program and the goals and objectives of the affordable housing programs of the Agency. B. [102] The HUD Units Each HUD Unit shall be located within the Zone and shall be designated from time to time by the Agency. Each of the HUD Units shall be pre-approved by the Agency and identified on a list in writing, as available for transfer to the Participant subject to the terms of this Agreement. No HUD Unit shall be transferred to the Participant unless the Participant has submitted a timely and complete acceptance to purchase such HUD Unit to the Agency, as set forth herein. It is the express intent of the parties hereto that the Participant will attempt to acquire those HUD Units within the Zone which evidence the highest degrees of blight, are most in need of redevelopment, and are financially feasible. The Agency's purchase approval of each HUD Unit will be based upon compliance with this intent. C. [103] Parties to the Agreement 1. [104] The Agency The Agency is a public body, corporate and politic, exerclSlng governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et seQ.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [105] The Participant The Participant is licensed to do business in the State of California. The principal office and mailing address of the Participant for purposes of this Agreement is: 3 CDe 1999-19 3. [106] Prohibition Against Change in Ownership. Management and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure for the benefit of the Agency. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 106 shall terminate with respect to each HUD Unit at the close of the New Home Escrow for that particular HUD Unit. Nothing in this Section 106 shall act to restrict the sale of rehabilitated HUD Units to Qualified Homebuyers if such sale is otherwise in compliance with the terms of this Agreement. 4. [107] Benefits ofProiect The Agency has determined that the purchase, rehabilitation and sale of HUD Units in accordance with this Agreement will eliminate blight, provide needed low- and moderate-income housing to the various project areas of the Agency, as well as the City and also increase homeownership opportunities for low- to moderate income households thereby stabilizing the community and decreasing rental housing in the City. II. [200] AGENCY ASSISTANCE A. [201] The Proiect The Agency agrees that with regard to any HUD Unit that it has approved in writing, and which the Participant has agreed to purchase as evidenced by the completed form of a "HUD Unit Purchase Agreement" in the form included in Exhibit "D", that the Agency shall, subject to the terms and conditions of this Agreement, acquire the HUD Unit from HUD and shall thereafter immediately transfer title to the Participant through the HUD Escrow. 4 CDC 1999-19 The Project, and specifically the Agency's obligation to acquire any HUD Unit, shall only arise to the extent funds are available from the Participant (or the "Participant's Lender" as hereinafter defined), to provide for the acquisition, rehabilitation and resale of the HUD Unit by the Participant at the close ofthe HUD Escrow. Moreover, the Agency shall only offer to transfer HUD Units to the Participant to the extent that the Agency, in its sole discretion, deems that the purchase price, associated rehabilitation and disposition costs are fair, equitable, comparable and that the Participant has funds sufficient to close the HUD Escrow and thereafter to complete the rehabilitation of the HUD Unit. B. [202] Agency Assistance In order to assist in the implementation of the Project and marketability of the Project, the Agency agrees to provide certain Agency assistance (the "Agency Assistance") as follows: (i) provide for the concurrent transfer of each HUD Unit which the Participant may agree to acquire as evidenced by a completed HUD Unit Purchase Agreement; provided however that purchase price for each HUD Unit and all escrow costs in connection with the HUD Escrow for that particular HUD Unit shall be payable solely by the Participant; and (ii) in addition to acquiring and thereafter immediately transferring title to any given HUD Unit to the Participant, the Agency may provide on a first come-first served basis to any Qualified Homebuyer certain down payment and closing costs, not to exceed ten percent (10%) of the Participant's sales price of the HUD Unit being sold, from either available funds of the Agency under the HOME Program or the Agency MAP Program, as applicable. C. [203] Term of Agreement The term of the Agreement shall be one (1) year from the date of this Agreement and ending June 30, 2000, except as set forth in Section 501. The Executive Director of the Agency (the "Director") shall have the option to renew this Agreement for an additional one (1) year period provided Participant is in compliance with the provisions of this Agreement. D. [204] Participant Assistance The Participant will select HUD Units based upon a list of available HUD Units prepared from time to time by the Agency. The Participant shall be solely responsible for obtaining all information in connection with the proposed acquisition and rehabilitation of each HUD Unit. Participant will take all action necessary to ensure the availability of funding for the acquisition, rehabilitation and resale of each HUD Unit prior to submitting any offer to purchase to the Agency and shall provide evidence to the Agency of such financing at the time it delivers a completed HUD Unit Purchase Agreement to the Agency (see Exhibit "D"). Participant will be responsible for the preparation and submission of all necessary paperwork required in connection with the acquisition of each HUD Unit (i.e., all of the HUD Escrow documents as assembled in Exhibit "D") and all other necessary documentation required for the close of escrow for any HUD Unit to be purchased by Participant from the Agency. Participant shall have not more than seven (7) days from receipt of the HUD listing from the Agency to select any HUD Unit for purchase and return 5 CDC 1999-19 the HUD Unit Purchase Agreement for such HUD Unit to the Agency as executed by the Participant. The Participant shall cause each HUD Escrow to be closed within forty-five (45) days from the date of execution of the HUD Unit Purchase Agreement and the other HUD Escrow documents by the Participant. No extension of time for the close of a HUD Escrow will be granted by the Agency and if a HUD Escrow does not close within the forty-five (45) day period after the HUD Unit Purchase Agreement has been fully executed for any reason not attributed to the fault or delay ofHUD or the Agency, then in such event this Agreement will be subject to termination. The Participant agrees that upon its acquisition of each HUD Unit from by the Agency, the Participant shall promptly commence and thereafter diligently complete the rehabilitation of the HUD Unit. Unless a longer period of time is approved by the Agency in its sole discretion at the time of the submission of the Participant acceptance of an offer to purchase a HUD Unit, the Participant shall complete the work of rehabilitation of each such HUD Unit within ninety (90) days following the close of the HUD Escrow. (i) Scope of Rehabilitation - The Participant shall rehabilitate all HUD Units acquired from the Agency in accordance with the ARR Rehabilitation Standards noted in Exhibit "E". Furthermore, the Participant shall prepare a Scope of Rehabilitation for each HUD Unit setting forth in detail the work that Participant agrees to perform on each HUD Unit purchased by Participant. The Scope of Rehabilitation shall be submitted by the Participant to the Agency concurrently with the executed HUD Unit Purchase Agreement and related HUD Escrow documents. (ii) HOME Program or Agencv MAP Program Assistance to Oualified Homebuver - All HUD Units acquired and rehabilitated under the ARR Program, wherein the Qualified Homebuyer has applied for either HOME Program or Agency MAP Program assistance, will be reserved for sale to and occupancy by low- and moderate-income households, to be sold at affordable housing cost as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, or Part 92 HOME Investment Partnerships Subpart 7. (92.206), which requires that the value of the HOME assisted property to be acquired by the Qualified Homebuyer must have a value that does not exceed 95% of the area median purchase price of the HUD Unit, whichever funding source is used for the Participant's Qualified Homebuyer. (iii) Disposition of HUD Units and Qualified Homebuver Eligibility - The Participant will cause the marketing of each HUD Unit to prospective purchasers. Participant will screen prospective purchasers for eligibility in accordance with this Agreement, specifically to insure that Buyer meets the applicable HOME Program and/or Agency MAP Program Income Guidelines in accordance with Exhibit "B". Participant shall cause the opening of a New Home Escrow with prospective purchasers and will take all steps necessary to ensure each New Home Escrow is closed within forty-five (45) days from the date of its opening. At the close of the New Home Escrow, the ARR Covenant shall be fully executed and filed for recordation. The form of the ARR Covenant is included in Exhibit "D". 6 CDC 1999-19 E. [205] HUD Escrow The Participant is under no obligation to purchase any HUD Unit from the Agency and the Agency is under no obligation to transfer any HUD Unit to the Participant unless the Participant has first completed a HUD Unit Purchase Agreement for the particular HUD Unit as identified on a list of HUD Units as submitted by the Agency to the Participant. The parties will open simultaneous escrows (e.g., the HUD Escrow) to provide the acquisition by the Agency of each specific HUD Unit which the Participant has agreed to purchase from the Agency. The parties shall execute the escrow instructions and documents as set forth in Exhibit "D" as may be necessary to accomplish the foregoing. F. [206] Affordable Housing Cost For the purposes of complying with this Agreement, all HUD Units shall be sold to low- and moderate-income households (e.g., Qualified Homebuyers) at affordable housing costs as such term is defined in Health and Safety Code Section 50052.5, or Section 8, (24 CFR 813), whichever is applicable to the Qualified Homebuyer's HOME Program or Agency MAP Program assistance, if any. The Participant agrees to be bound by all limitations for Qualified Homebuyers as set forth and in each Agency Quitclaim Deed for a HUD Unit. The form of the Agency Quitclaim Deed is included in Exhibit "D". The Participant shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency by a date no later than forty-five (45) days following the opening of the New Home Escrow, including but not limited to the HOME Program or Agency MAP Program Checklist, Verification for Applicant Eligibility, First-Time Homebuyer Disclosure Statement, Application Affidavit as applicable under the HOME Program or the Agency MAP Program as included in Exhibit "F". III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS A. [301] Rehabilitation bv Participant Participant and Agency agree that the central purpose of this Agreement it to provide for quality rehabilitation of each HUD Unit purchased from the Agency in a manner consistent with the terms and standards of this Agreement. Each HUD Unit acquired by the Participant shall be rehabilitated in accordance with the rehabilitation standards noted in Exhibit "E", attached hereto and incorporated herein. With respect to each HUD Unit, the Agency shall approve in writing all specifications, and plans, if any, including but not limited to landscaping plans, designs, and specifications of each HUD Unit to be rehabilitated as well as the proposed Marketing Plan for each HUD Unit prior to the commitment of the Agency to acquire any HUD Unit pursuant to a HUD Unit Purchase Agreement. Such approval of the Agency shall be evidenced by the Director in his/her reasonable discretion as consistent with the goals and objectives of the ARR Program, or his/her designee. 7 CDC 1999-19 1. [302] Cost of Rehabilitation The cost of undertaking the Project, including the costs of acquisition, rehabilitation, marketing and sales of each HUD Unit shall be borne solely by Participant. The Agency shall have no obligation to pay for any cost of the Project. The Participant acknowledges and agrees that the profit, if any, to be made by Participant from the disposition of each HUD Unit to a Qualified Homebuyer shall be limited to no more than fifteen percent (15%) of the gross sales price at the time resale of each such HUD Unit after rehabilitation to a Qualified Homebuyer. 2. [303] Bodily Iniury and Property Damage Insurance Participant shall indemnify defend and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency as additional insureds for claims for damages arising from the Project. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on any HUD Unit or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 8 CDC 1999-19 3. [304] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City as designated by the Director shall have the right of access to each HUD Unit, without charge or fee, at normal construction hours during the period of work for the purposes of the inspection of the work being performed in constructing the rehabilitation on the HUD Unit. The Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 304 resulting from the gross negligence or willful misconduct of the City or Agency while on the HUD Unit. This Section 304 shall not be deemed to diminish or limit any right which the City or Agency may have by operation of law irrespective of the Agreement. Nothing in this Section 304 shall be deemed to make either the City or the Agency a guarantor of the work of rehabilitation or improvement of any HUD Unit. 4. [305] Local. State and Federal Laws Participant shall carry out the Project and all related activities on any HUD Unit in conformity with all applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. 5. [306] Anti-Discrimination During Rehabilitation Participant, for itself and successors and assigns, agrees that in the rehabilitation of the HUD Unit provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [307] Taxes. Assessments, Encumbrances and Liens Prior to the issuance of a Certificate of Occupancy for any HUD Unit, Participant shall not place or allow to be placed on such HUD Unit any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on a HUD Unit, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to a Qualified Homebuyer. C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit 1. Prior to the recordation of a Certificate of Completion by the Participant for a HUD Unit, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of any HUD Unit. This prohibition shall not be deemed to prevent a transfer of a 9 CDC 1999-19 HUD Unit to a Qualified Homebuyer or the granting of temporary or permanent easements or permits to facilitate the rehabilitation of the Project. 2. Upon obtaining a Certificate of Occupancy from the City for a completed rehabilitation of a HUD Unit, the Participant shall sell such HUD Unit to a Qualified Homebuyer in accordance with and subject to the restrictions set forth in this Agreement. 3. The deed or other instrument of transfer by the Participant to any purchasers of the HUD Unit shall require that the unit be owner occupied by persons living in the units as their principal residences and shall further require that such unit shall remain available at affordable housing costs to the families of low- and moderate-income for a period of not less than ten (10) years subject to any other exceptions as may be provided by the Agency. 4. The Participant may not rent or lease any HUD Unit to a third party and during the time that the Participant may hold title to a HUD Unit, no person may use the HUD Unit for any residential dwelling purpose. D. [309] Mortgage. Deed of Trust. Sale and Financing; Rights of Holders [310] No Encumbrances Except Mortgages. Deeds of Trust or Sale for Rehabilitation Mortgages, deeds of trust other encumbrances of each HUD Unit are to be permitted before completion of the rehabilitation of a HUD Unit but only for the purpose of securing loans of funds to be used by the Participant for financing the acquisition or rehabilitation of improvements on the HUD Unit. Participant shall not enter into any other conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar lending institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 310, executed by the Director. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. E. [311] Right of Agencv to Satisfy Other Liens on the Proiect Prior to the completion of the rehabilitation on any given HUD Unit, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on a HUD Unit which are not otherwise permitted under this Agreement, Agency shall have the right, but not the obligation, to satisfy any such lien or encumbrance. 10 CDC 1999-19 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS A. [401] Uses - Covenants Running with the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to any HUD Unit, that for the period of time set forth in the Agency Quitclaim Deed, each of the HUD Units acquired by Participant shall be devoted to and available for sale solely to persons or families with an income which are very low, low and moderate, as those terms are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "C", or 24 CFR 813 whichever funding source is applicable to the Participant's prospective Qualified Homebuyer for the HUD Unit. The Participant further covenants and warrants that Participant shall undertake the rehabilitation on the HUD Units in accordance with the standards set forth in this Agreement. Participant covenants to obtain all necessary permits and rehabilitate each HUD Unit in conformity with all applicable laws. Failure to obtain all necessary permits shall be a default under this Agreement. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any HUD Unit, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any of the HUD Units. The foregoing covenants shall run with the land. These covenants shall be expressly incorporated in the Quitclaim Deed from the Agency to the Participant. B. [402] Maintenance of the HUD Units Maintenance Condition of Each HUD Unit. Between the date of the close of each HUD Escrow and the date of the close of the New Home Escrow for each such HUD Unit the Participant for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of each HUD Unit which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of close of a HUD Escrow, there is an occurrence of an adverse condition on any area of a HUD Unit which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as 11 CDC 1999-19 identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Participant has failed to comply with the provision of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the HUD Unit and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HUD Unit authorized by this Section shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in Subsection(c), below. (b) Graffiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or improvement on a HUD Unit which is visible from any public right-of-way adjacent or contiguous to the HUD Unit, shall be removed by the Participant by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HUD Unit and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HUD Unit authorized by this Subsection(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection( c ),below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HUD Unit, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably necessary to restore the HUD Unit to the maintenance standard required under Subsection(a) or Subsection(b), including attorneys fees and costs of the Office of Agency Counsel (including salaries and wages of the legal staff and pursuant of this Office of Agency Counsel) as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section, shall be a covenant running with the land, and each HUD Unit, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section shall be deemed to preclude the Participant from making any alteration, addition, or other change to any structure or improvement or landscaping on the HUD Unit, provided that such changes comply with applicable zoning and building regulations of the City. 12 CDC 1999-19 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement with respect to each Participant HUD Unit shall remain in effect for the term as set forth in the Agency Quitclaim Deed. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PROVISIONS 1. [501] Termination and Breach (a) Termination Without Default or Breach. This Agreement may be terminated for the convenience of by either party who is not then in default upon thirty (30) days notice to the other party; provided however, that for any HUD Unit for which a HUD Escrow is then open, such HUD Escrow transaction shall be closed and the HUD Unit shall thereafter be rehabilitated and offered for resale to a Qualified Homebuyer as set forth in this Agreement. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifYing such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifYing the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or 13 CDC 1999-19 more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary . 2. [502] Notice Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party under this Agreement shall be in writing and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as follows: Participant: Steven P. Duffield KSR Financial 11661 San Vicente Boulevard, Suite 105 Los Angeles, California 90049 Agency: Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 92401 3. [503] Conflicts ofInterest Nonliabilitv No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participate, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. 4. [504] Insoection of Books. Records and Reports Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to any HUD Unit as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to any HUD Unit as pertinent to the purposes of the Agreement. 14 CDC 1999-19 The Participant shall provide quarterly reports to the Agency regarding all HUD units acquired and sold under this Agreement. 5. [505] Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the Agency's and the City's members, officials, employees and agents from and against any and all claims or liability arising from Participant's actions under this Agreement or from the conduct of Participant's business or from any activity, work or things done, permitted or suffered by Participant and shall further indemnify and hold harmless the Agency and City and their officers, employees and agents from and against any and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this Agreement arising from any negligent or wrongful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to environmental conditions, that may arise as a result of the Agency's acquisition and/or ownership of any HUD Unit that is the subject of the Agreement. VI. [600] SPECIAL PROVISIONS 1. [601] Submission of Documents to Agencv for Approval Whenever this Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 2. [602] Successors in Interest The terms, covenants, conditions and restriction of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. VII. [700] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Exhibit "A" through Exhibit "F", which together with this Agreement constitute the entire understanding and agreement of the parties. 15 CDC 1999-19 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city statues, or it is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this agreement shall not be affected thereby. All waivers of the provisions of this Agreement must be in writing by the Director of the Agency or the Participant, and all amendments thereto must be in writing by the Director of the Agency or the Participant, except that the Director may only agree to non-substantive changes hereto with concurrence by Agency Special Counsel. Substantial changes to this Agreement shall require the prior approval of the governing body of the Agency. Each individual signing below represents and warrants that he or she has the authority to execute this Agreement on behalf of and bind the party helshe purports to represent. VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [80 I] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Director as evidenced by the date first above shown. IIII IIII IIII IIII IIII IIII 16 CDC 1999-19 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. Approved as to Form: By: "AGENCY" Redevelopment Agency of the City of San Bernardino By: "PARTICIPANT" By: ~f~ J1C{ J p.{~J. Je,<J1-- Title: By: --p,~~. i7d?L-~ 'L2~ Title: By: Title: 17 CDC 1999-19 EXHIBIT "A" 1999 ARR AGREEMENT "Map of ARR Zone" ~~Q :0<-< :0 -. 0 - - ~~(J) :::s -. Ql a.~:J :s:=(JJ )>o~ -c:::s~ ....Na. ... 0 - -,: :::s :J o CD 0 lOt/) ""l ~ 3 en ....... !Z~ EO =JJ 0-1 l1:c iF ~ ~ I HJ\IS \ j _J " \ ~~-~.' , 1.._ ~ " s: z ~"?: - nn lJ lJ ')> 0 ::IJ 0 :0 c ;j po-=< 3: 1>> .)> iil -U 1>> -U ::E o - to =r iil ::J 3 0 lfl -=< ~ ~ 5" Iii ~ -< o -< r 3 Iii <0 3" u; - I J CDC 1999-19 1 I i ~i1 01 i :T, il I I i i i I -! I I r"- E ! L..,-.._..~ 1_ PEPPERA\'E. '"', I "l ...... "~ I L ~ ./'~.._..- ~ :-,\0 "",,~\,\":.J\ "" ~ ~ .. _ ME~lorAS AVE .'. ' I! i ../ -~ LlT' STATEST. I ..r---''l., /' l-: - t-,;d ,~,~~~1~0q~,,:,'.: ~ ..,~ ,h;, '" _ II 1:: '. ' ' "~'_ ,~.J" - 1 ,~ ,', " ,.c"\'V'"' " ,m! '" II. 1 ! I, I I I ! L ~ I i "i, . r ::!. ,,-.,-, :~ I ~ - I , . ,~" , " ,"" I' :,: . I ~ ! I ~[P.RAWAY i . T........)-. ' ", " 1 ' -,5' ~ - ---I O~~~ J : ,-<"I ..,.,.,.. i : II :'" '; I ' _ Al,p ,5 "1 10 ~I ---+---I ..-1 ~ I", '"', '" __ C') I I I : ' I' -~.~.. 1;0 i ' I~ ~ _ _ . ~!! ~ =-.._ ~ i' Q ~ GG.a,\\,[ .. '1 J :~ "~"[ f-lin: r :::..-.._I l ~DnWS\AI! F J ~. ! ~r I~ l ' -c.;:J 1 ;r=1 w >Ti- I;; 'r;.~ ,[ ;~n --2,p.DEN^\~1 _ _ I~ c....1 "1 I ~J _!=-~ II ----cs ~ I ' Q _ ~ '7'--"~..-I ~ ~ \ICTO~IAAI! 8 . J 0---' "":;r' ~~ 71- - """m l,di'~~Ji:71 i ~"l,"\I~II~ - _ EOULDERAI'E. \1 i~ _ r"-" j: ! l., L1 i I I I, \15 ~ ~_. ~ ~ . : , un,-"'" AI'!. -..- li : 1J I,..... .. I ~7] - - I I h L - I ~l\H\\\mEEl 1 i , I - "ls--~ OK\NGI - /' CDC 1999-19 EXHIBIT "B" 1999 ARR AGREEMENT "Current Household Income Listings for Qualified Homebuyers" CDC 1999-19 EXHIBIT "B" 1999 Income Limits Income HOUSEHOLD SIZE Level 1 2 3 4 5 6 7 8 V ery Low $16,500 $18,900 $21,250 $23,600 $25,500 $27 ,400 $29,250 $31,150 (50%) Lower* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 (80%) Median $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 (100%) Moderate** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 (120%) * If Participant's Buyer is using HOME Federal Funds the Maximum Annual Income afamily can earn is 80% of median income according to household size. ** If Participant's Buyer is using State Low/Moderate Income Housing Funds the maximum annual income a family can earn is 120% of median income according to household size. P:\formllARR Progmm\A.lm Incume Limil.l".duc CDC 1999-19 EXHIBIT "C" 1999 ARR AGREEMENT "ARR Program - Steps and Process for Circulation of HUn Unit Listings by the Agency and Selection of HUn Units for Purchase by Participant" CDC 1999-19 ECONOMIC DEVELOPMENT AGENCY CITY OF SAN BERNARDINO "Acquisition Check List" D COPY OF HUD SALES CONTRACT (Land Use & Part A-D) D REQUEST FOR PROPERTY INSPECTION ANALYSIS FORM To be executed and returned to EDA five (5) days from the date of list of properties is provided to participant D COPY OF ESCROW INSTRUCTIONS (HUD TO EDA) D COPY OF ESCROW INSTRUCTIONS (EDA TO PARTICIPANT) D PARTICIPANT CONSTRUCTION/REHABILITATION WORK WRITE UP TO EDA INSPECTOR D PRELIMINARY TITLE REPORT D (2) SETS OF ESCROW INSTRUCTIONS TO SIGN AND RETURN EXHIBIT "1" \\EDA_SAN BEROO\PUBllC\Forms\ARR Program\ARR Process.doc Revised 7/99 3 CDC 1999-19 Economic Development Agency City of San Bernardino ACQUIsmON, REHABILITATION & RESALE PROGRAM (ARR) ARR PROCESS A. Exclusive Sales 1. EDA will receive weekly (Thursday evening) an exclusive list from HUD of units available within the Revitalization Zone. 2. EDA will distribute exclusive list to Participant no later than Friday A.M., following receipt of Thursday's list. 3. EDA has seven (7) days from receipt of list in which to express interest in any property. Thus, Participant will notify EDA within five (5) days (Tuesday, 5:00 p.m.) of receipt of list from EDA interest in property. 4. On fifth day, Participant will submit to EDA: (1) Request for Property & Inspection Analysis form. (2) HUD Sales Contract and attachments for signature by EDA staff. 5. EDA will notify Participant by ih day (Thursday, noon), when documents are ready for pick-up. B. Direct Sales 1. Tuesday evenings HUD list properties on the Internet (Direct Sales Internet Lottery Process) 2. EDA approved Participants must express interest to purchase properties by 3PM Friday (3 days after HUD's posting of Direct Sales List). Participant must perform due diligence of properties (completed property and inspection form). 3. Participant must retain HUD lottery number/confirmation number of transmission. HUD will select winner by Wednesday evening (1 week after posting Direct Sales List). 4. List of winner will be posted Wednesday evening. Participant should check this list promptly to verify whether they are the winner of the property. 1 CDC 1999-19 5. Upon verification of HUD winning lottery number, Participant will have until end of business day on Friday (2 days after HUD posts winners) to deliver a complete sales package to EDA include: - HUD Sales Contract (Original) (Include HUD Addendum A-D - HUD Land Use Restriction Addendum - Request for Property Inspection Analysis Form 6. EDA will review and execute sales package by 12:00 p.m., Monday. Participant to pick up Monday and overnight complete executed sales package to: Golden Feather, C/O Tammy Massone, 225 East Airport Drive, Suite 100, San Bernardino, California 92408, (909) 890-2370, (909) 890-3831 FAX. 7. Close of Escrow - HUD executes contracts and opens escrow at Arrowhead Escrow, 935 South Mt. Vernon, Suite 106, Colton, California 92324. (45 day maximum for closing) C. General Notes 1. Important - EDA purchases property under the name of "The Redeveloment Agency of the City of San Bernardino, a public body, corporate and politic" Therefore, all HUD contracts and documents must reflect this entity. 2. EDA's purchase is funded by Participants private lender or other funding sources with a concurrent escrow to close from EDA to the Contractor. (EDA does not provide any funding for HUD purchases or rehabilitation). 3. After close of escrow from EDA to ARR Participant, Contractor performs rehabilitation on house per the original construction work write-up and markets property for sale. Contractor is responsible for obtaining permits with building and safety for all repairs to the house. 4. EDA Inspector performs a final inspection of the property (after rehabilitation in accordance with "Contractor Construction Work Write-up") to insure all work is completed as per these specifications. 5. Assuming the buyer has been qualified and pre-approved for the Mortgage Assistance Program (MAP), by the primary lender and EDA, and a final inspection has been performed by EDA Inspector, EDA will issue a check and fund the MAP for the buyer. P:\Forms\ARR Program\ARR Process. doc (Revised 7/99) 2 CDC 1999-19 EXHIBIT "2" Economic Development Agency City of San Bernardino "Request for Property and Inspection Analysis Form" (to be submitted by Participant to EDA with HUD Saies Contract and Attachments) cc. . I. Particioant Information . .. < ...... .... ... Date Submitted to EDA: ARR Contractor: Contact~ Phone Number: .. II. Prooerty Information ..... .. HUD Case #: Status: 0 Uninsured 0 Insured Check Approximate Location in Revitalization Zone (See Map - Exhibit "AU). Property Address: City/Zip: Bedrooms: Bath(s): Total Sq. Ft. Estimated Costs Actual Costs HUD SALES PRICE $ $ ELECTRONIC BID PRICE (IF APPUCABLE) $ $ HUD DISCOUNT PRICE $ $ REHABIUTATION COSTS (L & M) $ $ PARTICIPANTS OVERHEAD $ $ TOTAL PROJECT COSTS $ $ ARR SALES PRICE $ $ ARR PARTICIPANT PROFIT $ $ % Profit (Maximum profit is 15% of Total Project Costs) Amount of Loan for Property (Acquisition & Rehabilitation Loan) ARR Participant Lender: Address: Phone Number: III. BUYER INFORMATION Buyer(s) Name: Family Size: Annual Gross Income: MAP Loan: (Not Buyer's Participant to exceed 10% of Contribution: $ Purchase Price) $ (Minimum of $500) $ Contribution: Ciosing Date Lender Name/Contact Lender Address: City: Lender Phone: Lender Fax: Please check Appropriate Categories: Sr. Citizen(S) 62 Or Older 0 Female Head of Household 0 Disabled Famiiy Member 0 Hispanic 0 White 0 Asian or Pacific Islander 0 American Indian 0 Biack 0 I OFFICE USE ONLY: % of Median = I ARR Participant Signature EDA Representative Signature Date EDA Review Contract/Inspection Form/Date EDA/Pre-Acquisition Inspection Signature/Date EDA/Post-Acquisition Inspection Signature/Date \\EDA_SAN BERDO\PUBLlC\Forms\ARR Program\ARR Process.doc (Revised 7/99) 4 CDC 1999-19 EXHIBIT "D" 1999 ARR AGREEMENT HUD Escrow Documents: (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents CDC 1999-19 LS. DEPT. OF 1I0l'SI\G& liRBAi\ DE\TLOI'\IF\T Addendum A IRIS ~ 1')<)) .........FORFEITURE ..\:\0 EXTENSIO~ POLiCy......... All lil 'I> l'rupCrl\ !)hl'<l)lllOn SJles ullll [) ,k'I'I"I'd 1'1";'(1111" .Ire to close \\Itl\ln~' d.l\' 1)1 JCcl'i':JllCC Id J IIl!),'I'I" (1 l)I)) SJIe, C,,"trJ,1 \ll!'er to purehJsc hnfcilllre of EJrnest ,\Iones Dcposits, Tht:' fJ.tll1r~ b: ;} Purchaser [0 clost? on thl:..' SJk of pr(lt'I..'lt:. \\ IlIlIn lilt' allo\\abk tllnt' pt'flLhJ. Ilh.:lulLllS JJl;. C\\\..'IlSIUIl') ~lJlll...'d h:- Hl;U. \\11I ft.'SUIt III tlll..' forfl'![Ure ot"the t'Jffll',,! rllUlll.::- l:\..'t~'\'lIL ('\(l'P! \\here the- purduscf prL'Sl'l1h ...!l,h..'lIflll'llt.ltll)[l tu III 1) 1!1J! l)1I'~' of the ,pCl'IJI Cl[cumstJnccs dcscrlbcd In pJrJ~rJplh I J 1 Jlhl (bl hclo\\ of this sect lOll hJ' u(curred (:!) Ill\Cstor l'ur..:hJscrs (1) Thc fJtlure by an In\estor Purcluser t<l cl<lSC on .In unlnsurcd SJIe \\tll result In forfellure ullhe l'n:"e eame)! mune:. dCpOSl1 (~I hfty perccnt oflhe earnest munev dep'lslt un .In In,ured sale \\tll be returned 10 an In\cst'" Pur,'hJser \\here IIt'D (or :! Direct Endorsement lender uSing 111'I> ~ulekllnesl determines th:!t the PurehJser IS nl\! .In Jccepuble borro\\er Ihl (I) U"ner,OCcupJnt I'urdusers The enlire eJrneslmoney deposlll\l11 be re:ur:~c't1 tll .In u\tller occup3nt Purch3scI IdlU 1311, tu C["\I' \\hell', Slllce lite (untrJct of SJk \\'as slgneJ lht'fe has beeu .I deJth III the Inll11l',II,ltl' !.Inl:!, l,ellllI,lcillllldel, spuusc, or childrell Il\lll~ Illlh,' ,.I::lc' h"uselt(e[,11 (I) (II) nH.'r~ hJ\ bL"t~1l J r~(t'nt serious 1l1111.':)~ In (11,,' 1:;1l11l'lJIJll' brndy that hJS resulted In Slgl1lt"lClrlt 1111'dk'al t'\;'l'11"l'') ur sul"ulltlalloss of 1f1..:(lllle, tlllh Jd\l'l\c'h al~",)lfl,' Ihe l'urchJser's flnanelJI abillt\ to cllhe Ibe S.lk I III ) nll're I13S beOl J. loss of Job h;. ()~:,-' III th<.: 111 ,::u::- t'.r,-'J~hl, mlll'rs. 01 substJrltullu')') of \1l,-'(\1111..: tllrlll:;l1l1\l (,1\1\t \1: :!ll' l'urchJser, (1\) in the case of an Insured sale,IIL'[) III[ a 1)11,',: [I\,lul\el11elll lelldcr USlllg Ill'll gUldelllll"! Iklell11illes Ih,lllhl' Purcluser IS nol all acceplable borre"\ er tlr (\) hI[ other g'lod calise, as delerlllll1l'J b:- :IIC' 1'It'[,! eli'll, I' (.:') 1n the ose of .In ulllnsurcd loall \\ he[c, llespllc' ~,ltld fJlIh efforts by Ihe Purchaser, Ihele IS .Ill InJb1l11: to oblJln .I mortgage loan from .I reco~nlled mtlrt~Jge kll,kr, "0 percent of the eJrnest money deP'''lt \t ill be returned (.\1 On either type of sale, forfell 100 pe[Celll 01 :he depOSit In those InSlances \\here no d,ICUI111'lllatIIH1IS sllbn11lted, \the[c the docurnentJtloll fails \0 prOVide all Jccepubk CJuse for thc 8uyer's failure 10 clusL'. or \\ ht'fe docllmelltJtloll 15 not pro\llkd \\Ithlll a reasonJhle time full''''lllg dll1l[J(: (311ceIIJIIOIl (e g,.\O days) Extensions, 11le Goldcn Fcather Realty olTice Will ~r,llll e\le:hIOllS of lIme upon wfltlell rcquest from pu[chascr E\lenSltlns of Ilf11e tl) el'lse the >31e are enlirel\' \\ IIhll1 thc Sellcr's dl5crl'llt)1l :\11 C\:c'n\l"n, If ~rJl1tcd, \\ ill be undcr Ihc f"II'I\\ Ing cOlld,tlOIlS (.II ..\ "rlttCI1 r~qllc"t for all e\teI1SIl"; Illlh1 b,: [c',c'l\ed b:- (j"ldc'n feJlher PCJIr: no !.tIer tlull fl\c dJ\s befeHe lite s,ite',I,,:!,'el deJdllllC fcH CI')SIIl~ {hi The dncumellutloll sllbI1l1ttcd \ll:hllll' [c'q",": Illl:': e,uhhsh the eJUSC of delJ\' Jlld Ilut r11<lrt:O:Jge Jppro\ ,11 IS 1111111111,'''1 dUflllg the C\tcnSlon period ICI ..\n e\ICmlllll \\111 be for a pOind ,,11'1111'1'11 ,.I:':Il,l.llcl:1:.S at .I fee nfS.\7' ()() (:)()q.;, ;() eLI\S, $"11 ()I)) 1'1":' I ,'e1l11'lell fund,,) \I,:tll be dqlO'lltt'U IIll'SI..-r()\~ IIlH:j(.:dlJ>~':-' UPUll JprHuv:tl (d I }- \ll'!1')!{\ll fl'l'-; ,dull bl' rt'l~llfll'd 1,\ S~'llt_'l 11 .I ,<\1-';1ll; dl..)c':I llut U((llf (e) :\llbl.." tlllH..' uf liU:::ilJlg. untlseJ L'\I'~'ll"l\)1l k,-', '.\ dl hl' l~rllrJtt'J III tilt' PUrdlJ",l'! .1I11..i ll:lu!hh...d by l'')LlO\\ (1'1 Tht..' gtJtll1n~ of onL' C\{t'lhl,)!l ..,L.l~lll\\t ld'L '.1','-' till' SelIn tu g.rJllt addlll\)ll.d t'\tl.."lhl!)(b. ~lJhi the ~clkr "h..J1\ \k...1JIl'.1 lh.,Lnd! for lll,,: 1\;rl.:h~l,)l'I,)' Lllk:.: i\l ,:I\ht' :;',-: ,>Jk U!'\\llII1L'l'\PlfJ{IUn Offill' IHl~lrul ...'!Il''\!l:; (lL'II\\ll IH llf1(11l t'\l'I~Jllllil \1\ tht' (\t~'lhlllll CDC 1999-19 Allowable Closing Costs. The following closing costs with a comblI1ed value of not more than 3% of line 3 of the 9548 (1,99) Sales Contract may be credited to Line 5 of the Sales Contract Funds not consumed WIll be credited to the Seller. 1 <>'0 Loan OnglI1ation Fee Credit Rep'lrl I mpnunds Interest llazard Insurance Lenders Coverage Policy OwnCls CO\'Clage Pl1I1C\' i\otary Taxes (Current tax year) IIOA Dues (Current month plus one) AUTO\I.;\ TICALL Y PAID BY lIeD (Ilur Illcludl'd olllllll' 3) R~cordlI1g Fees - Deed and \ll1rtgage CltyTounty Tax/Stamps Escrow Closing Fee \\'Ire Transfer Fee to \\'ashmgton, D C. BUD Case i\o Properly Address CIty Sellcr Disclosure, Seller makes nn representations or warrantIes concerning the conditIon of the property, mcludlng but not IInllted to mechanIcal systems. dry basement. foundation, structural. or compliance with code, zoning or butldlllg requirements and wtll make no repaIrs to lhe property after execution of this contract. Purchaser understands that regardless of whether the property IS being financed with an FHA-insured mongage, Seller does not guarantee or warrant that the propeny is free of\'lslble or hidden structural defects, termite damage, lead-based paml, or any other condition that may render the propeny uninhabitable or otherwise unusable, Purchaser acknowledges responsibility for taking such action as it believes necessary to satisfy itself that the properry is III a condItion acceplable to it, of laws, regulations and ordlllances affecting the properry, and agrees to accept the property in the conditIon exisling on the date of thiS contract. Seller disclosure concerning !lOA dues, t-.lello Roos taxes, assessments, or any tax concerning HUD homes IS based on a\'ailable infonnatlon but not deemed complete or accurate It is the responsibility of the Buyer to obtain all infoml;ltion concerning these issues, W;llk-Thru Inspection. All purchasers are strongly encouraged to perform a walk through inspectIon PRIOR to the close of escrow, If a purchaser dIscovers a propeny condition that did not exist at the time of sale they must immedIately notify HUD's propeny manager, Golden Feather Realty. of the damage, The buyer assumes full responsibility for the property and its condition on the date of close of escrow, The D~p;)nment aS5um~s no responsibIlIty. and will make no senlement, for damages reported to HUD after the close of escrow, (See item;; 13.E of BCD Sales Contract) Buyer CertIfication I we certIfy that l.\\e ha\'e been InterYlewed. completed a loan applicatIon, \'cnflcatlon of employments and obtamed a full credit repon from the lender that has prOVided the anached Letter of Commitment. li\\e understand that I:\\e \\ III forfeit our eamest money depOSIt If" e enll'l Into tillS contract \\ Ithllut completing tillS qualificatIon proce,s5 Slgn:1!Urt:s (Purchaser) (Purchaser) ~~~-------- ( Pwchasn) (Purchaser) CDC 1999-19 LAND USE RESTRICTION ADDENDUM Thi, Addendum IS Incorporated by reference to lhe FHA Sales Conlract tor lhe properTy localed al ..____, ex.ecuted on [h,s same day of ,199 between (Purcha5er) and lhe Deparlmenl of Housing and Uroan Development (Seller) Unlc>s "" excepllon is ~rantcd In wrllIng by the Sella il The Pure/'dser "npected, al a minimum. to repair the properly according to local code, <lftn which il shall reselllhe propeny only [0 a ['erson who intends to occupy as his or ha prinCipal reSidence and whosc income is at (II below 115 percent of [he median income in the area, when adjusted for famdy size. or a Stale, government entiry, ITihe, or agency [hereof, or a private nonprofit organization a5 dcfined in 24 CFR 291.405. b. The purchaser shall nOI resell the propcrly for an amOlIO( in exccss of 110 percenl of the lie! development cost. Net development cost IS the lotal COSI of the project, Including items such as acqulsllion cOSI. archnecfUral fees, pennils and survey expenses, insurance, rehabililatlon. and taxes It dOes not me/ude a developer's fee. Total costs incurred by Ihe Purchaser. Including those for acquisition flIlancing, management, rehabilillltion. and selling expenses, are e.~peelcd [0 be reasonable and customary for the area in which this property" located c The develope,s fee proVides for Purchasers overhead anu slafflng cosls relaled 10 rhe ['roJect. <lnd may nor exceed 10 pcrcent of the nel developmcIlt cost d Ihe properry may not be occupied by or resold to any of the Purchaser's officer." directors, elected ur appolnled ofllcials, employees, bUSiness associates. or 10 any IndiVidual who is relaled hy blood. marriage. or law to any of the nbove. e There may be no confl,ct of 'n[eres! with individuals or firms that may provide acquIsilion or rehabililallon funding. management Or sales services, or other assoclaled With the project 2. Purcha.ser must provide prnodlC reports, as specified by 24 CFR 291 110 and in the format and frequency specified by HUD, regarding the purchase and resale of properties subject to this Audendum. 3. TIli, Addendum survives the expiration, if any, by operation of la"l or otherwise. ot the FHA Sales Conlran, and shalllenninare five years from the date contained hcrein. Purchaser Witness Secretary of H()usin~ ilnd Urban Development Seller Witness By__ CDC 1999-19 LL\D-B.\SED PAI;";T ADDE;";DC:\I TO SALES CO;";TR..\CT -PROPERTY Bl'ILT BEFORE 1978 FilA CASE 7"0 PROPERTY ADDRESS A TrACIl\IEt"T A ____~__P3ge I of 4 :\OTE TO Pl"RClI.-\SEHS. HEAL EST.-\. TE BROKERS A~D AGE:"iTS: n"s addendum IS mllndllloryfor any proper!) buill befare /978 and consI5t5 offour para POrI A. Dlsclusure olIn/ormatIOn on Lllad-Based Pmnl and 'or Lcad-Based Pumt f1a:arJs. Parr B. Stl/t!s C vn(racr Lcad Bllsed Painr Evaluation Contingency P,irl C Ohner.OC(uran1 ('crlIJJeollon. and Part D. Purchaser's Addl..'nd,~m 10 rhe Said Contract - Release of Lead Based PaInt Emluatlc)n Contingency All parts Tnl.51 be complClt'd as S1kH\"n nll.~ L'/ld-BlI5cd POInt Adrft'ndum must be complcled on or bl1vrc rhe dtHe o/the Sales Confract, andfon,.ardcd (0 flUD ..\"Iln rhe Sales Cmllrf:t~J/o, am pr'JperH bwII bt,/ore 1978 Sales Conlracts .....uhollf (hiS ,1.tltft'nl!J4nI ...t/l nor bt' accepted b,\ J/L'D nus Addendum mrvi\'eslhe clonng oftne wIt' PART A DlSCLOS( 'RE OF /SFOR.\!A nON ON LEAD-SHED PA/\TA'vD.OR LEAD BASED PA/NT I/AZARDS LEAl) \\,.\R~I'\C STAT[\I[:'\T. [\Cry purchast'r ofnn\- infcres( 1M resl//l'nlial ren! propCrlY 01/ \.nlcn {j rt''Jldt'n[101 dHcli/flg k'QS fmt/l prior to 19;8 IS nO[;/iL'd ;1:,:: slJl-h prOi't'f'l1 mdl prt>5t'r.: t'\P051Irt' (0 It'adfrom lead-bast'd Ih,]! r1!/I.\ pll:el! YOI";g ent/dren 01 rtsk o/dt' \ eloping lcad pOIsonIng Lead pOIsoning In young [fIlldren n;,l,\ product' p.'rm,;r:.'f11 r:t':lr%g/e':/ dil,'1ld~t'. Inc!wflng fearning disllhilille5. red/lced inte!l'genei' qllotlt'nt, bena'doral prah/t'ms. and impaJred memory Lead pOlSonu:g 4L'::.tJ pO.H_') ,11',;rfil.l""U nIl\. :u prt'gn,:n[ 1\ omen Tnt' sellt'r of tIlI.\ jnrt're5[ In l't''Jllft'fu/fll pruper(\ 15 re'i'Il/red to pru\ule (he bl/yer kllh any mfi)rmalJOn on It!ad-tJlI_It'd pamt ha:ards from ns/.. iJHt'S'J1f1t'nlS or InspcellonS /fl the seifer's pOSSf.'HlOn and nO!I.0 lilt:' buyer 0/ any knvi\n It'ad-bas/..'d peln[ hr.:.arris A rIsk aSSt'ssmcnf or Jnsprc!u)n lvr PVHlbjt,/t'Glf- b{Ht.'d palnl hl1:ards IS rccomnJendt'd pf'/ur to purchase SELLER'S DISCLOSl'RE A Presence of k3d-b3seJ p3int 3nd'or 1e3d-b3seJ p31I1t h3z3rds (check one below) Known k3d-b3sed p3int 3nd'or 1e3d-b3seJ paint h3z3rds are present 111 the property (expI3\l1): 2 Seller h3S no 3ctu31 knowledge of 1e3d-b3sed p3lllt 3nJor lead-b3sed p3\l1t h3z3rds in the property B ReCl1fJs 3n,1 reports a\'3113ble to the seller (check one below) Seller h3S pro\1ded the pUlch3ser with 311 a\'3t1able records 3nd reports pert31I1lng to 1e3d-b3sed palllt 311lhJt leaJ- b3seJ p3lllt h3Z3rds In the property (hst documents below) 2 Seller h3s no reports or records pertaining tll kJJ.b3sed p31nt 3nd or 1e3d-based p31I1t h313rds 1I1 the propert\' PUKlL\SER'S ACK:\O\\'LEDGEl\IE:\T (ll1lt131) C. Purch3ser h3s recel\'ed copies of 3111llfom13\10n hsteJ 3bo\e. D. Purch3ser h3S recei\'ed the p3mphlet Protect Your F3mtly from Le3d III Your Home. E Purch3ser h3S (check one below): Requested 3 15 d3Y opportUl11ty to conduct 3 rISk assessment or lllSpeCtlOn for the presence of le3d.b3scd p31I1t 3nJ or 1e3d-b3sed p3lllt h3z3rds; or 2 Wal\ed the opportunity to conduct a rISk assessment or IllSpeC\1CHl for the presence of le3d-b3sed p3int andor le3d. b3sed p31nt h3Z3rds llROKERJAGE7"T ACK.'\O\VLEDGE:\IEi\T (1I1iI131) F. Broker'3gent h3S infomJed the seller of the seller's obhg3110nS under 42 US.C 4852d 3nd is 3W3re of his/her responsibtlny to ensure compl13nce. CERTIFICATIO;"; OF ACCl'RACY The following p3r1les h3\'e reviewed the IllfOm13tlon 300\e 3nd certify, to the best of their know ledge, th3t the informatIon they h3\'e pro\'lded is true 3nd 3ccurate. Seller D3te l'urch3ser D31e Purch3ser Date Broker Agent [)3te 9:% CDC 1999-19 Attachment A Page 2 of 4 PART B SALES CO:\'TRA.CT LEAD-BASED PAI:\'T EVALUATION CO~TI~GENCY This contract is contingent upon a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-b3sed paint h3zards at the Purcl13scr's expense until 12 noon on the 15th calend3r day after 3cccpt3nce, on _' [Insert date] This contingency will tenl1inate at the 3bo\-c predetermined de3dline unless the Purchaser or Purchaser's agent delivers to the Seller or Seller's agent Part D of tillS addendum listing the specific lead-based paint h3zards and corrections needed, together with a copy of the inspection and/or risk assessment report. The Seller may, at the Seller's option, within fi\e days 3fter delivery of Part D of this Addendum, elect in writing whether to correct the hazards(s) prior to settlement If the Seller will correct the hazard(s), the seller shall furnish the Purchaser with certification from a risk assessor or inspector demonstrating that the hazard(s) have been remedied before the date of the settlement I f the Seller docs not elect to make rep3irs , or if the Seller makes a counter-offer, the Purchaser shall ha\C five cbys to respond to the counter offer or remove this contingency and take the property in its "as is" condition or this contract shall become void. The Purchaser m3Y remove this contingency at any time without clause. INTACT LEAD-BASED PAI:\'T THAT IS IN GOOD CONDITIO:\' IS NOT NECESSARILY A HAZARD See EP A p3mphlet Protect Your Family From /.cad ill Your llomc for more inforn1ation. Lead-Based Paint Addendum to the Sales ContrJct - Propeny Built Belore 1978, mcludll1g Part A, Dlsclosur~ oj !Iljonnonoll on L<lod.Bosed Palll[ and/oT Lead Based POln[ f{acords. Part C. 0-., l)er.OcclIpan[ Ct!T[ljiea[IOIl (If applicable), and Part D. PIITch,!seT's Addendum [0 [he Soles CUrI[Tile! _ Rel~l!s,' oj Lc(/{I.Bos,'d POilU F\ ulll!!/ion Con[illgency, if applicable, must also be completed and made a part of this Sales Contract 9/96 CDC 1999-19 Att3d\lllcnt A PJgc30f4 PART C OWi\ER-OCCU'Ai\T CERTIFICA no:" TO BE CO\!PLETED BY ALL OWNER-OCCUPANT PURCHASERS ONL Y Check and complete the following, as approprIate: L'we do not ha\'e a child under the age of se\cn years Vwe do ha\'e a child under the age of se\en years Their names and ages are as follows Name Age Check only one of the following blocks ifchildren under seven are indicated above _ I/we understand that within] 5 days after acceptance by HUD of my/our offer to purchase, I/we will at my/our expense, ha\'e each of the above-named children tested for an elevated blood level (EBL) and that Lwe will provide these tests to HUD, If !/we fai 1 to provide the test results to HUD within the 15 day time frame, the contract will be canceled immediately \\ithout further notice Further, I/we understand that ifan EBL condition is identified, l/we ha\e the option to: 1) cancel this contract and receive our earnest money deposit back, or 2) complete the sale of the property within the understanding that l/we will, at a minimum, ha\'C the property tested for the presence of lead-based paint on all che\\able surfaces and, where lead-based paint on che\\able surfaces is identified, ha\'e such paint surfaces abated, _ I/we fully understand that if a blood lead le\'C1 screening program is not reasonably available or if l/we refuse to have my/our child(ren) tested, I/we ha\'e the option of closing this sale, I/we hereby acknowledge that this property l/we am/are purchasing from the Department of Housing and Urban Development may contain lead-based paint. However, despite this possibility, l/we elect to close the sale on this property, Further, l/we agree to hold HUD harmless for this action, SignJture of PUrChJ5er Sign3ture of PurchJser D3te Slgmture of Witness D3tc 9% CDC 1999-19 AttJchlllCIlt A PJge40f4 L\D BASED PAIYf ADDE:>;OC;\I TO SALES CO:>;TRACT - P!WI'ERTY BelL l' BEFORE 1978 FilA C :\S[ !':O PROPERTY ADDRESS PART D PL'RClIASEWS ,.WDESDL'.\I TO T!-iE SALES CO,VTR..JCT- RELEASE OF LEAD-S1SED PAIST EVALUAT/O,V CO;\T1:\GE.\'cr ~'-pllrclz..lS('r ulIllu/ed Purt A. t/t'n! E I uf tilL' Li.\ld-BlZSt'd PtlUlI AdJcndlUIl [U [1:(.' Still'S COIl/ract - PrOpl'r::l's Bidi: Bl'j;Jrt' I 'J-:',J' (.-Jddt'lldum), rhls Pilrl D mu.\{ bt' cOmp/t'll'd.lS 51101\11 Qnd pro\'idcd to rhe Seth"~ all Of btforc the dufl' sho\\ n In the ,L!dcndum, Purt B. or flit' cOlllWg..'Il(V IS tcrfJIlflcItL'd l/plJ.n:hdser t!llllo/cd Puff .1. Hem E, ~ rhl'1I [IllS f).zrt D IS WlflI'CC\'St1ry (!!/j !:t'cd nut [0 "t' ('I"'lp/CfCd or prundl'd [0 rht! Sd/t:r j'l.'RCIIASER'S AC~"\OWLEDGE;\IEYr (check JpprOpflJte boxes) [ ] PurchJser acknowledges thJt he/she hJS received a 15 dJY opponunity (or other muruJlly Jgreed upon peflod) to conduct a fisk Jssessment or kJd-bJsed pJIIlt lIlspectioIl for the presence of IeJd-bJscd pJint Jnd'or IeJd-bJsed pJlIlt hJzJrds. thJt such J risk Jssessment or IeJd-bJsed pJlIlt IIlspection hJS been nude [ ] PurchJser acknowledges thJt Seller IS under no obligJtlon to correct Jnl' IeJd-bJsed pJint Jndor IeJd- bJsed pJlnt hJzJrds idcntlfied by the IeJd-bJsed pJlIlt inspcctlon JncL'or nsk Jssessment Jnd hereby removes the contlIlgencl' Jnd accepts the property in Its "JS IS" condItion. without \\ JrrJtlly, JS descnbed IIlltem B. Conditions of Sale of the contrJct [ ] Purchaser requests tint Seller IJke the following Jetlon to correct the IeJd-bJsed pJlI1t hJzJrds noted: Lc;\d-B;\sed Paintl!:llard Corrective Action Requestcd ._~----- --_._~~--------------~-------~-------------- --_._-~-~ - -----------------_._--_._~-- ----_._--_._----~------_._- PurchJser has JttJched the risk Jssessmcnt or IIlspection repon If Seller refuscs thiS request. PurchJscr resc[\ es the nght to contlIlue \\ lIh the purclnse or request CJl1celbtlon of the SJks contrJc!. [ ] PurchJser requests cancelbtlon of the SJIes contrJct due to the following dcficlenclcs lI1dlCJted m thc JttJchcd report(s)- CERTIFICATlO:-; OF ACCUR....CY The followmg pJnles hJ\e reviewed the mfomlJtion Jbove and certIfy, to the best of their knowledge, tllJt the lI1fomlJtlon they hJVC provided is true and accurJte. PurchJscr DJte PurchJser DJtc DJte 91.)() Broker 'Agent CDC 1999-19 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of San Bernardino 201 North "En Street, Suite 301 San Bernardino, CA 92401 Attn: Executive Director (Space Above Line Reserved For Use By Recorder) RECORDATION OF THIS INSTRUMENT IS EXEMPT FROM ALL FEES AND TAXES REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS FOR THE ARR PROGRAM (Name of Oualified Homebuyer) Dated as of 200 ---ARR PROGRAM: [NAME OF DEVELOPER/PARTICIPANT]--- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO SBEO/0001/DOC/3514.2wpd CDC 1999-19 COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS (FOR THE ARR PROGRAM) THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS, (the "ARR Covenant") is made and entered into as of , 200_, by and among (the "Participant"), the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency"), and (the "Qualified Homebuyer"), and this ARR Covenant relates to the following facts set forth in Recitals. R E C I TAL S A. The Qualified Homebuyer proposes to acquire a single family residence (the "New Horne"), located within the City of San Bernardino (the "City"), from the Participant, to be owned and occupied by the Qualified Homebuyer as their principal residence. The legal description of the New Horne is attached hereto as Exhibit "A" and incorporated herein by this reference. B. The Agency has made this property on which the New Horne is situated available to the Participant for the purposes as set forth under that certain Aquisition, Rehabilitation Resale (ARR) Agreement dated as of (the "ARR Agreement") in order to make the New Horne available for acquisition by the Qualified Homebuyer from the Participant subject to the terms and conditions of this ARR Covenant; and C. The terms of the ARR Agreement mandate that the acquisition, use and occupancy of the New Home shall be restricted in certain respects for the term as provided herein (the "Qualified Residence Period") in order to ensure that the New Home will be used and occupied in accordance with the ARR Agreement and the affordable single family residential dwelling unit development goals and objectives of the Agency. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 1 CDC 1999-19 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, THE PARTICIPANT AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. Covenant, the following words and terms shall provided in the Recitals or in this Section 1 context of usage of a particular word or require: As used in this ARR have the meaning as unless the specific term may otherwise Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for family si ze) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167(k) 3b) (3) under the Code, as adj usted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 50052.5. At the time of the close of the New Home Escrow, or later when a proposed Successor-In-Interest acquires the new home the amount of the maximum Affordable Housing Cost payable in connection with the acquisition of the New Home at any time during the Qualified Residence Period shall be calculated as set forth in Health .and Safety Code 50053.5 (b) (1) or (2), as applicable. Code. The word "Code" means the Internal Revenue Code of 1986, as amended, and any regulation, rulings or procedures with respect thereto. Delivery Date. The words "Deli very Date" mean the date of deli very of title and possession of the New Home from the Participant to the Qualified Homebuyer at the close of the New Home Escrow. Lower-Income Household The words "Lower Income Household" mean persons and families whose income does not exceed the qualifying limits for lower income families as established and amended form time to time pursuant to Section 8 of the United States Housing Act of SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 2 CDC 1999-19 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Sectretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjsuted for family size and revised annually. As used in this section, "area median incomeu means the median family income of a geographic area of the state. New Home. The words "New Homeu mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as rehabilitated and completed by the Participant and sold to the Qualified Homebuyer. New Home Escrow. The words "New Home Escrowu mean and refer to the real estate conveyance transaction or escrow by and between the Participant and the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In- Interest). The transfer of the New Home from the Participant to the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. Notice of Agency Concurrence. The words "Notice of Agency Concurrenceu mean and refer to the acknowledgment in recordable form in which the Agency confirms that the proposed Successor-In-Interest of the Qualified Homebuyer satisfies all of the Adjusted Family Income and other requirements of this ARR Covenant for occupancy of the New Home by the Successor- In-Interest at any time during the Qualified Residence Period. Qualified Homebuyer. The words "Qualified HomebuyerU mean the purchaser of the New Home from the Developer (e. g. : all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Homebuyer shall: (i) have an annual Adj usted Family Income which does not exceed the household income qualification limi ts of a Lower-Income Household: (ii) shall be a first- time homebuyer, as this term is defined in Health and Safety Code Section 50068.5; and (iii)pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, including all sums SBEO/0001/DOC/3514.2wpd 6114199 116 rp 3 CDC 1999-19 payable by the Qualified Homebuyer for mortgage financing, insurance, escrow costs. its purchase money and other fees and Qualified Residence Period. The words "Qualified Residence Period" mean the period of time beginning on the Delivery Date and ending on the date which is ten (10) years after the Delivery Date. ARR Covenant. The words "ARR Covenant" mean these Redevelopment Agency of the City of San Bernardino Community Redevelopment Housing Affordability Covenants and Restrictions by and among the Qualified Homebuyer, the Participant and the Agency pertaining to the New Home. Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person, family or household which may acquire the New Home from the Qualified Homebuyer at any time during the Qualified Residence Period by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a "first-time homebuyer" and shall have an income level for the twelve (12) months prior to the date on which the Successor- In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for a Lower-Income Household. Opon acquisition of the New Home the Successor- In-Interest shall be bound by each of the covenants, conditions and restrictions of this ARR Covenant. The titles and headings of the sections of this ARR Covenant have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict the meaning any of the terms or provisions hereof. Section 2. Acknowledgments and Representations of the Qualified Hornebuyer. The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery Date: (a) the total household income for the Qualified Homebuyer does not exceed the maximum amount permitted as Adjusted Family Income for a Lower-Income Household, adjusted for family size; (b) the Qualified Homebuyer intends to promptly occupy the New Home after the Delivery Date as the principal place of residence for a term of at least two (2) years following the Delivery Date and the Qualified Homebuyer has not entered into any arrangement and has no present intention to rent, sell, transfer or assign the New Home to any third party during the Qualified SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 4 CDC 1999-19 Residence Period so as to frustrate the purpose of this Section 33334.3 Covenant; (c) the Qualified Homebuyer has no present intention to lease or rent any room or sublet or rent a portion of the New Horne to any relative of the Qualified Homebuyer or to any third person at any time during the Qualified Residence Period; (d) the sum payable each month by the Qualified Homebuyer following the close of the New Horne Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Horne does not exceed the Affordable Housing Cost for the household; (e) the Qualified Homebuyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax returns filed by all persons who reside in the New Horne for the calendar year preceding the close of the New Horne Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all person residing in the New Horne at the close of the New Horne Escrow; (f) The Qualified Homebuyer has been informed by the Participant that this ARR Covenant imposes certain restrictions on the use and occupancy of the New Horne during the term of this Section ARR Covenant and that this ARR Covenant imposes certain restrictions on the resale 'of the New Horne during the Qualified Residence Period. The Qualified Homebuyer acknowledges and understands that these restrictions shall be applicable to the New Horne and to any resale of the New Horne from the Delivery Date to the end of the Qualified Residence Period which is 201 Dated: Initials of Qualified Homebuyer Section 3. Covenant of the Qualified Homebuyer to Maintain Affordability of the New Home During the Qualified Residence Period and Covenant Relating to Sale or Transfer of the New Home During the Qualified Residence Period to a Successor-In-Interest. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 5 CDC 1999-19 (a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the New Home shall be used and, occupied by the Qualified Homebuyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or for another Lower-Income Household as a Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as provided in this Section 3 to verify that each proposed Successor-In-Interest of the Qualified Homebuyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of a Lower- Income Household (based upon the Adjusted Family Income of each household), and that the completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the "Notice of Agency Concurrenceu as provided in Section 3 (d) . (b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any interest therein) to a Successor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least sixty (60) days prior to the date on which the Qualified Homebuyer proposes to transfer title in the New Home to a Successor-In-Interest, the Qualified Homebuyer shall send a written notice to the Agency as provided in Section 17 of the intention of the Qualified Homebuyer to sell the New Home to a Successor-In-Interest which includes the following true and correct information: (i) name of the proposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); (ii) copies of State and federal income tax returns for the Successor-In-Interest for the calendar year preceding the year in which the notice of intention to sell the New Home is given to the Agency; (iii) resale price of the New Home payable by the Successor-In-Interest, including the terms of all purchase money mortgage financing to be assumed, SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 6 CDC 1999-19 provided or obtained by the Successor-In- Interest, escrow costs and charges, realtor broker fees and all other resale costs or charges payable by either the Qualified Homebuyer or the Successor-In-Interest; (iv) name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Homebuyer to the Successor-In-Interest; (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such reference; and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c). (c) Within twenty (20) days following receipt of the notice of intention described in Section 3(b), the Agency shall provide the Qualified Homebuyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In- Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adjusted Family Income and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) has been provided to the Agency. In the event that the Agency may request additional information relating to the, confirmation of the matters described in Section 3(b), the Qualified Homebuyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Home, the Agency shall deliver a written acknowledgment and approval of the resale of the New Home to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3(b) (iv) above, and thereafter the Successor-In-Interest may acquire the New Home subject to the satisfaction of the following conditions: (i) the recordation of the Notice of Agency Concurrence executed by the Successor-In-Interest and the Agency at the close of the resale escrow; SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 7 CDC 1999-19 (ii) the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Homebuyer and the final escrow closing statement for the Successor-In-Interest; and (iii) the other conditions established by the Successor-In-Interest of the resale escrow as Qualified Homebuyer and shall have been satisfied. (e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants and agrees that during the Qualified Residence Period the New Home shall not be leased, subleased, or rented to any third person, except for a temporary period (not to exceed 12 months) in the event of an emergency or other unforseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Homebuyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event wi thin not more than (60) days following the commencement of a temporary rental occupancy of the New Home by a third party, which notice shall set forth the grounds on which the Qualified Homebuyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. Section 4. Maintenance Condition of the New Horne. The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that: (a) The exterior areas of the New Home which are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the term of the Qualified Residence Period, there is an occurrence of an adverse condition on any area of the New Home which is subj ect to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Qualified Homebuyer in writing of the Maintenance Deficiency and give the Qualified Homebuyer thirty (30) days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiency" include without limi tation the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property use restrictions: SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 8 CDC 1999-19 failure to properly maintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of wed and debris; parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on any other parts of the property which are not covered by a paved and impermeable surface; the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Home. In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance Deficiency wi thin the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Homebuyer ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has failed to comply with the provision of this Section 4(a). If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Home (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) shall become a lien on the New Home. If the amount of the lien is not paid wi thin thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c). SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 9 CDC 1999-19 (b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the New Home shall be removed by the Qualified Homebuyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the New Home (exterior areas only) and such graffiti is visible from an adj acent or contiguous public right-of-way and thereafter such graffiti is not removed within 72 hours following the time of its application; then in such event and without notice to the Qualified Homebuyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Section 4(b) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4 (a) or Section 4 (b), including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. In any legal proceeding for enforcing such a lien against the New Home, the prevailing path shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4, shall be a covenant running with the land for the Qualified Residence Period and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable law. Nothing in the foregoing provisions of this Section 4 shall be deemed to preclude the Qualified Homebuyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp lO CDC 1999-19 Section 5. [RESERVED/NO TEXT] Section 6. [RESERVED/NO TEXT] Section 7. Foreclosure of Purchase Money Mortgage Loan and Agency Right of First Refusal. (a) During the Qualified Residence Period the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Home at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period the Agency shall have the right of first refusal to purchase the New Home from the Qualified Homebuyer on the same terms which the Qualified Homebuyer may propose to offer the New Home for resale to a Success-In- Interest. The Agency must exercise such a right of first refusal within thirty (30) days following written notification of the intention of the Qualified Homebuyer to resell the New Home, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Homebuyer and close an escrow for the transfer of the New Home to the Agency within sixty (60) days following written notification of the intention of the Qualified Homebuyer to resell the New House. Section 8. Covenants to Run With the Land. The Participant, the Agency and the Qualified Homebuyer hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a common plan for the rehabilitation of affordable single family housing improvements within the territorial jurisdiction of the Agency and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Home and each Successor-In-Interest of the Qualified Homebuyer in the New Home for the term provided in Section 10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this ARR Covenant. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Home or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 11 CDC 1999-19 and restrictions are set forth in such contract, deed or other instrument. Section 9. Burden and Benefit. The Participant, the Agency and the Qualified Homebuyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Homebuyer's legal interest in the New Home is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Homebuyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Home by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable single family housing development goals and objectives of the Agency and in order to make the New Home available for acquisition and occupancy by the Qualified Homebuyer. Section 10. Term. This ARR Covenant shall apply to the New Home and the Qualified Homebuyer and to each Successor-In-Interest as of the Delivery Date for the Qualified Residence Period -- e.g.: this ARR Covenant shall remain in full force and effect for ten (10) years after the Delivery Date. Any provision or section hereof, may be terminated after the Delivery Date upon agreement by the Agency and the Qualified Homebuyer (or the Successor-In- Interest in the New Home), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in its reasonable discretion will not adversely affect the affordable single family housing and development goals of the Agency. Section 11. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Homebuyer to honor or perform any material term or provision of this ARR Covenant shall constitute a breach under this Agreement; provided however, that if the Qualified Homebuyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days after the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Homebuyer written notice of breach specifying the alleged breach which if uncured by the Qualified Homebuyer wi thin thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 12 CDC 1999-19 shall not constitute a waiver of any breach or event of default nor shall it change the time of breach or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 11. Except with respect to rights and remedies expressly declared to be exclusive in this ARR Covenant, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Homebuyer may remain incurred for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 as related to a Maintenance Deficiency at the New Home, upon the occurrence of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Qualified Homebuyer to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (ii) by other action or convenient covenants and Homebuyer to the at law or in to enforce agreements Agency. equity as necessary the obligations, of the Qualified (b) No third party shall have any right or power to enforce any provision of this ARR Covenant on behalf of the Agency or to compel the Agency to enforce any provision of this ARR Covenant against the Qualified Homebuyer on the New Home. Section 12. Governing Law. This Section 33334.3 Covenant shall be governed by the laws of the State of California. Section 13. Amendment. This ARR Covenant may be amended after the Delivery Date only by a written instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as applicable) and by the Agency. The Participant shall have not any SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 13 CDC 1999-19 right or power to approve any such amendment to this ARR Covenant, and the execution by the Participant of any such amendment after the Delivery Date shall not be required. Section 14. Attorney's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this ARR Covenant or otherwise arising out of this ARR Covenant, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 15. Severability. If any provision of this ARR Covenant shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this ARR Covenant which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Section 16. Time is of the Essence. For each provision of this ARR Covenant which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 17. Notice. Any notice required to be given under this ARR Covenant shall be given by the Agency or by the Qualified Homebuyer, as applicable, by personal delivery or by First Class United States mail at the addresses specified below or at such other address as may be specified in writing by the parties hereto: If to the Agency: Executive Director Redevelopment Agency of the City of San Bernardino 201 North "En Street, Suite 301 San Bernardino, CA 92401 Phone: (909) 384-5081 If to the Qualified Homebuyer: Attn: Phone: Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personally delivered, when received SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 14 CDC 1999-19 by the Executive Director of the Agency or the Qualified Homebuyer, as applicable. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 15 CDC 1999-19 IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer and the Agency have caused this Covenant to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this ARR Covenant is authorized under Health and Safety Code Section 33334.3 (g) . QUALIFIED HOMEBUYER Dated: By: By: PARTICIPANT Dated: By: AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director [ALL SIGNATURES MUST BE NOTARIZED] Approved as to Form: By: Agency Counsel SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 16 CDC 1999-19 EXHIBIT "AN Legal Description of the New Home SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 17 CDC 1999-19 [address of Participant under the ARR Agreement] ) ) ) ) ) ) ) ) ) ) ) (Space above line reserved for use by Recorder) RECORDING REQUESTED BY Redevelopment Agency of the City of San Bernardino AND WHEN RECORDED MAIL PROPERTY TAX BILL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS [ARR Program: (Name of Grantee/Participant)] PART A THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS (the "Quitclaim Deed") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") in certain real property situated at , San Bernardino, California (the "Property") to , (the "Participant"), subject to the community redevelopment affordable single family housing conditions, covenants and restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the community redevelopment affordable single family housing conditions, covenants and restrictions of this Quitclaim Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 1 of 7 CDC 1999-19 (-- The Property--) on Official Records of the Office of San Bernardino County. file in the of the Recorder PART B The quitclaim of the Property by the Agency to the Participant is expressly subject to the satisfaction of the following community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain Acquisition, Rehabilitation, Resale Agreement dated (the "ARR AgreementU) by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty-five (25) years commencing on the date of recordation of this Quitclaim Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated for occupancy only to a "personu or a "familyU who is a "Qualified HomebuyerU for a term of the shorter period of either: (i) twenty-five (25) years from the date of recordation of this Quitclaim Deed; or (ii) the term, as provided in the ARR Agreement Covenant described in subparagraph 3, below. The words "Qualified HomebuyerU refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first-time homebuyer,U as defined in Health and Safety Code Section 50068.5, and whose annual income during the twelve (12) months preceding the date of ini tial occupancy of the Property by the Qualified Homebuyer does not exceed the income qualification limits for "lower income householdsu, as defined in Health and Safety Code Section 50079.5 (Statutes of 1979: Chapter 96). Health and Safety Code Section 50079.5 provides: "'Lower Income households' means persons and families whose income does not exceed the qualifying limits for lower income SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 2 of 7 eve 1999-19 families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limi ts shall be published by the department in the California Administrative Code as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. As used in this section, 'area median income' means the median family income of a geographic area of the state." 3. As a condition precedent to any transfer, sale, conveyance, grant or other hypothecation by the Participant of the Property to a Qualified Homebuyer the "Acquisition, Rehabilitation Resale Affordability Use and Occupancy Covenant" (the "ARR Covenant"), substantially in the form attached hereto as Exhibit "A-I" or Exhibit "A-2," as applicable and as incorporated herein by this reference shall be fully executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The final form of the ARR Covenant shall be consistent with the terms and conditions of the ARR Agreement as applicable to the Qualified Homeb.uyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the ARR Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the ARR Covenant shall be a separate community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and assign of the Qualified Homebuyer for the term as provided in the ARR Covenant. 4. Prior to the recordation of the ARR Covenant as provided in subparagraph 3 of PART B of this Quitclaim Deed, the Property shall not be offered for sale or sold to a Qualified Homebuyer for a sale price which exceeds more than Dollars ($ ) , exclusive of customary and reasonable "escrow" and sales SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 3 of 7 CDC 1999-19 transactional costs which may be normally allocated to a Qualified Homebuyer by an owner-builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of PART B of the Quitclaim Deed shall have no further force or effect upon the property after the date of the complete execution and recordation of the ARR Covenant. 5. The Property shall be subject to the following affordable housing redevelopment covenant in perpetuity and the text which appears in this Quitclaim Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enj oyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PART C During the term of subparagraph 2 of PART B, but prior to the recordation of a fully-executed copy of the ARR Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales and ancillary business activity on the Property associated with the improvement and sale by the Developer, pursuant to the ARR Agreement, of an affordable single family dwelling unit on the Property prior a Qualified Homebuyer. The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the ARR Covenant. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 4 of 7 CDC 1999-19 PART D The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an increase, improvement and preservation of the communi ty I s supply of low- and moderate-income housing. The transfer of the Property by the Agency to the Developer for this purpose and the recordation of this Quitclaim Deed is authorized by Heal th and Safety Code Sections 33334.2 and 33334.3, and other applicable law and actions of the Agency, including without limitation, the ARR Agreement. PART E Upon the delivery of this Quitclaim Deed to the Participant, the community redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by either the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(f) (2) against the Participant and each successor in interest or assignee of the Participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 5 of 7 CDC 1999-19 THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized signatures of the Executive Director of the Agency. AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic Dated: By: Executive Director Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] [NOTE: Exhibit "A-1" MAP Assistance) General Form of ARR Covenant (Agency Exhibit "A-2" Program) ] General Form of ARR Covenant (HOME SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 6 of 7 CDC 1999-19 ACCEPTANCE OF QUITCLAIM DEED AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT (the "Participant"), hereby accepts the deli very of the instrument identified above as the "Quitclaim Deed of a Public Agency and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Quitclaim Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San Bernardino, subject to the conditions, covenants and restrictions contained in the Quitclaim Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condi tion and that the Participant is solely responsible for causing the Property to be improved and rehabilitated as set forth in the ARR Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Quitclaim Deed which touch and concern the Property and are community redevelopment covenants which run with the land. PARTICIPANT Dated: By Its: By: Its [NOTARY JURAT ATTACHED] SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 7 of 7 CDC 1999-19 HUD UNIT PURCHASE AND SALE AGREEMENT Property Address: THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is dated for identification purposes only, as of , 199 , and is made and entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and (the "Participant"), with reference to the following: RECITALS A. WHEREAS, the Agency and the Secretary of Housing and Urban Development (the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition Program a copy of which is attached hereto as Exhibit "A" (the "HUD Contract") regarding sale by the Secretary to the Agency of that certain property commonly known as San Bernardino, California (the "HUD Unit"). A legal description of the HUD Unit is attached hereto as Exhibit "B"; and B. WHEREAS, subject to the terms and conditions of that certain Acquisition, Rehabilitation and Resale (ARR) Agreement dated 1999 (the "ARR Agreement"), by and between the Participant and the Agency and this Agreement, Agency desires to sell the HUD Unit to the Participant and the Participant desires to purchase the HUD Unit from the Agency at the close of the "HUD Escrow" as set forth herein. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS: 1. Warranty of Authority by Participant. The Participant warrants that it is a under the laws of the State of California, and is authorized to execute this Agreement and all of the documents and instruments contemplated hereby, including, without limitation, supplemental escrow instructions and the Acceptance of Agency Quitclaim Deed; and that this transaction has been approved by [resolution of its board of directors]. A certified copy of that [resolution] which remains in effect, will be delivered to Agency before the close of the HUD Escrow as set forth herein. SBEO/0001/DOC/3515 6/15/99 245 ct 1 CDC 1999-19 2. Agreement to Sell and to Purchase. Subject to the terms and conditions of this Agreement, the Agency agrees to sell and the Participant agrees to purchase the HUD Unit. 3. Purchase Price. The "Purchase Price" for the HUD Unit is the same sum in cash or immediately available funds in United States Currency as the discounted purchase price which the Agency has agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit. The Purchaser Price shall be payable by the Participant's delivery of the full amount to the escrow holder in cash or by wire transfer of immediately available funds at least one (1) business day before close of the HUD Escrow or by cashier's check during business hours at least three(3) business days before the close the HUD Escrow. 4. HUD Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees to pay all of the costs of the escrow holder in the HUD Escrow including all amounts charged to the account of the Secretary and the Agency. The escrow holder is hereby instructed to collect such costs and charges from the Participant at the close of the HUD Escrow. 5. Conditions for the Benefit of the Agency. The obligation of the Agency to perform this Agreement is subject to the satisfaction of the following conditions, which are for the Agency's benefit only: (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen(15) days after the date hereof; (b) that the Secretary perform under the HUD Contract and the ti tIe of the HUD Unit actually be transferred from HUD to the Agency within forty-five(45) days after the date hereof; (c) the Agency shall have received, satisfactory to the Executive Director, a the insurance required pursuant to Section in form and substance certificate evidencing 16 of this Agreement; (d) that the Participant has duly execute and deliver to the €scrow holder, in recordable form the Acceptance of the Participant of the Agency Quitclaim Deed. (e) that the Participant not otherwise be in default under its other obligations to the Agency under the ARR Agreement. SBEO/0001/DOC/3515 6/15/99 245 ct 2 CDC 1999-19 The conditions set forth above are for the Agency's benefit only and the Executive Director of the Agency (the "Executive DirectorH) may waive all or any part of such rights by written notice to the Participant and escrow holder. If any of said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Executive Director, the Agency may thereafter terminate this Agreement without any liability on the part of the Agency by giving written notice of termination to the escrow holder, with a copy to the Participant. Escrow holder shall thereupon, without further consent from the Participant, return to each party the documents, if any, deposited by them. 6. Conditions for Participant's Benefit. Participant to perform this Agreement satisfaction of the following conditions, Participant's benefit only: The obligation of is subj ect to which are for the the the (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen (15) days after the date hereof; and (b) HUD Uni t after the that the Secretary perform under the HUD Contract and the actually transfer from HUD within forty-five (45) days date hereof. The conditions set forth above are for the Participant's benefit only and the Participant may waive all or any part of such rights by written notice to the Agency and the escrow holder. If any said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Participant, subject to the approval of the Secretary and the Agency, the Participant may thereafter terminate this Agreement without any liability on the part of the Participant by giving written notice of termination to the escrow holder, with a copy to the Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each party the documents, if any, deposited by them. 7. Escrow. The transfer of the HUD Unit to the Participant shall be consummated through an escrow established with the escrow agent engaged by the Secretary to handle the transfer of the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a schedule coordinated with the closing or the transfer of the HUD Unit between the Secretary and the Agency under the HUD Contract. This Agreement shall constitute the escrow instructions to the escrow holder of the Participant and the Agency with respect to the HUD Unit. The Agency and the Participant shall execute such SBEO/0001/OOC/3515 6/15/99 245 ct 3 CDC 1999-19 additional escrow instructions as may be reasonably required by the escrow holder. 8. Term of Escrow. Escrow shall close concurrently with the close of escrow under the HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the County of San Bernardino, California. 9. Condition of Title. The Agency shall convey to the Participant by quitclaim deed all of the right, title and interest in the HUD Unit which the Agency receives from the Secretary under the HUD Contract. The form of the Agency Quitclaim Deed is attached hereto as Exhibit "C" and incorporated herein by this reference. 10. Title Insurance. The Agency shall not be responsible for providing any title insurance to the Participant in connection with the transfer of title in the HUD Unit to the Participant. Any title insurance desired by the Participant shall be ordered and paid for by the Participant at its sole cost and expense. 11. Prorations. All assessments, including improvement assessments which are available for payment without interest or penalty for advance payment, taxes, rent, and ground rent, if any, shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently with the escrow under the HUD Contract, through which escrow such items will be prorated between the Secretary and the Agency, the parties acknowledge and agree that the Participant shall be charged for such prorations in precisely the same amount as the Agency is charged under the HUD Contract. 12. Escrow Closing Costs. The Participant shall pay all escrow closing costs of both parties, including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the Participant shall pay all closing costs and expenses charged to the Agency in the escrow by which HUD transfers the HUD Unit to the Participant. 13. Closina. At the Close of Escrow, (a) the Agency shall deliver to the Participant through escrow a the Agency Quitclaim Deed conveying the HUD Unit to the Participant, (b) the Participant shall deliver to the Agency through escrow the acceptance of the Agency Quitclaim Deed, and (c) the escrow holder shall collect and pay the SBEO/0001/DOC/3515 6/15/99 245 ct 4 CDC 1999-19 sums indicated for the transfer of the HUD Unit under the HUD Contract and this Agreement and deliver such other documents to the parties in accordance with the instructions of each of them. At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed to be recorded in the Official Records of the County of San Bernardino, California. 14. Condition of the HOD Unit. The Agency makes no representation or warranty to the Participant or to any third party concerning the condition of the HUD Unit, including, without limitation, mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and the Agency will make no repairs to the HUD Unit either before or after execution of this Agreement. The Participant understands that the Agency does not guarantee or warrant that the HUD Unit is free of visible or hidden structural defect, termite damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or otherwise usable. Participant acknowledges responsibility for taking such action and conducting such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit in the same condition delivered to the Agency by the Secretary, in an "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS" condition. 15. Possession: Repairs. The Participant may not perform repairs nor take possession of the HUD Unit until the escrow is closed. At the close of the HUD Escrow, the Participant may take possession of the HUD Unit and promptly commence the work of rehabilitation as required for the HUD Unit under the ARR Agreement. 16. Insurance. Prior to the Close of Escrow, the Participant shall obtain and shall thereafter maintain in full force and effect at all times a broad-form comprehensive general liability policy with a limit of not less than $1,000,000.00. Such insurance shall provide for a 30-day notice to the Agency before cancellation of the policy and shall name the Agency as an additional insured as to claims arising out of the work to be performed on the HUD Unit following the Close of Escrow pursuant to the ARR Agreement. 17. Assignment. The Participant and the Agency each agree that this Agreement shall be binding upon their respective, heirs, executors, administrators, successors or assigns and is not assignable by the Participant unless the written consent of the Executive Director is first obtained, which consent the Executive Director may withhold in his or her sole ,and absolute discretion. SBEO/0001/DOC/3515 6/15/99 245 ct 5 CDC 1999-19 18. Notices. All notices, demands and requests which may be given by either party to the other or to the escrow holder shall be in writing and shall be deemed to be given upon personal delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt requested, postage prepaid, addressed to the party to be notified at the address following the party's signature or if addressed to the escrow holder, at the address set forth in the supplemental escrow instruments signed by the parties. Either party may designate by written notice to the other party in the manner set forth in this Agreement another address for notice. 19. Miscellaneous Provisions. 19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to enforce, any provision of this Agreement shall not be a waiver of any further breach of such provision hereof. The waiver by either or both parties of the time for performing an act shall not be a waiver of the time for performing any other act or acts required hereunder. 19.2 Modifications. or any part hereof shall each of the parties. No change or addition to this Agreement be valid unless in writing and signed by 19.3 Governing Law. California law. This Agreement shall be governed by 19.4 Headings. The headings in this Agreement are for convenience only and shall not be used to interpret this Agreement. 19.5 Further Acts. Each party agrees to take such further action and to execute and deliver such further documents as may be necessary to carry out the purposes of the ARR Agreement with respect to the HUD Unit and this Agreement. 19.6 Attorneys' Fees. If either party incurs attorneys' fees to enforce this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees as set by the court from the other party. 19.7 No Real Estate Brokers Commission Payable By the Agency. The Agency shall not be responsible for the payment of any real estate brokers commission or finders fee in connection with the escrow or the transfer of the HUD Unit to the Participant. SBEO/0001/DOC/3515 6/15/99 245 ct 6 CDC 1999-19 19.8 Time. Agreement. Time is of the essence with respect to this IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director PARTICIPANT By: Its: By: Its: SBEO/0001/DOC/3515 6/15/99 245 ct 7 CDC 1999-19 EXHIBIT "E" 1999 ARR AGREEMENT "ARR Rehabilitation Standards for Each Hun Units" eDC 1999-19 ARR REHABILITATION STANDARDS I. GENEAAL DESCRIPTION The Participant will acquire BUD Units and cause the rehabilitation and resale of the housing thereon. II. REHABILITATION STANDARDS All of the improvements to be provided by the Participant on the BUD Units constitute the "Project". The Project shall be developed in accordance with applicable building and safety codes. III. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Project Site, and the suitability of the Project Site. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Project Site entirely suitable for such development. Participant has undertaken all investigation of the Project Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the rehabilitation of the project. IV. AMENITIES Each HUD Unit shall have full amenities and shall include the following: front yard landscaping and automatic sprinklers, side and rear yard fencing. V. REHABILITATION STANDARDS Rehabilitation Standards shall include Section 8 Housing Quality Standard (HQS) Minimums and are not limited to: L Interior work to make structures more livable, such as, plastering, painting, new subflooring and tile work. 2. Repair, restoration or replacement of important parts of structures, such as, heating systems, plumbing systems, electrical components, kitchen appliances (stoves, refrigerator). 3. Installation of water/energy conservation devices. 4. Installation of security devices. 1 \\EDA_SAN BERDO\PUBLlC\FormsIARR Program\ARR Rehabilitation Standards,doc CDC 1999-19 5. Wheelchair ramps, kitchen and/or bathroom modifications related to a disability of a household member. The following list contains some of the typical repair items and replacement activities: 6. Replacement of plumbing fixtures. 7. Addition of electrical outlets and/or wiring. 8. Insulation. 9. Replacement of roof. 10. Repair and/or enlargement of inadequate kitchen and/or bathroom. 11. Repair/replacement of furnaces and air conditioners. 12. Plaster and dry rot repair. 13. Repair/replacement of porches, steps, fences and walkways. 14. Termite, rodent or vermin fumigation. 15. Addition of closets or other minor built-ins. 16. Chimney repair/replacement. 17. Repair/replacement of railing. 18. Repair/replacement of windows and doors. 19. New ceilings. 20. Weather stripping for windows and doors. 21. Repair/replacement/addition of gutters and down spouts. 22. Repair/replacement of exterior trim. 23. Repair/replacement of stucco (wrap & stucco of wood siding structures). 24. Repair of foundation, structural repair. 25. Replacement of existing toilets, tub and shower, lavatories (cabinets). 26. Carpeting and other flooring. All other items are optional, per agreement, between contractor and buyer. 2 \\EDA_SAN BERDO\PUBLIC\Forms\ARR Program\ARR Rehabilitation Standards,doc CDC 1999-19 EXHIBIT "F" 1999 ARR AGREEMENT "HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents" CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM (MAP) ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM Date: Property Address: Borrower( s): MAP Amount: FIRST TIME HOME BUYER PROGRAM - MAP CHECKLIST Step 1 - For Reservation of Funds Letter by EDA Latest Tax Return (1040's) and 2 Current Pay Stubs 0 Application Affidavit - Signed by Borrower 0 Verification for Applicant Eligibility (Completed by Lender) 0 Preliminary Escrow Instructions 0 Step 2 - For EDA to Request for MAP Check - Request for Funds Letter Complete Demand for Funds Letter 0 Submit MAP Docs (Loan Agreement, Deed of Trust, Promissory Note, CC & Rs) 0 Seller (ARR Contractor) must call EDA Inspector for a Final Inspection (10 days prior to close of escrow) Step 3 - For EDA .toRelease MAP Check to Escrow Final Escrow Documents (Includes Amendments) 0 First Time Home Buyers Class Certificate 0 Lender Representative: ''lEDA SAN BEROO'PUBLlC\Fo/TTls\Map-ARR'MAP-Check lisl.doc D2I16i99MP CDC 1999-19 City of San Bernardino '" ECONOMIC DEVELOPMENT AGENCY VERIFICATION FOR APPLICANT ELIGIBILITY . Redevelopment . Community Development . Housing . Business: - Recruitment - Retention - Revitalization . Main Street, Inc. ACQUISITION, REHABILITATION AND RESALE PROGRAM (ARR) AND MORTGAGE ASSISTANCE PROGRAM (MAP) Name of Applicant Current Address Phone Number Household Size Property Address to be Purchased City/State San Bernardino, California # of Minor Children Zip Code Name of Lender Contact Person Loan Number Phone Number Fax Number * Annual & Monthly Income (See Below) $ /Y ear $ /Month Income used by the lender to qualify for the loan, if different than annual income of application. $ /Y ear $ /Month Monthly Consumer Debt $ /Month Max Loan Amount $ Principal & Interest $ /Month Sales Price $ Est. Property Taxes $ /Month Buyer Down $ ($500 Min.) Est. Insurance $ /Month Map Amount $ Mort. Ins (If Applicable) $ /Month TYPE OF LOAN OFNMA 0 FHA 0 Other Total PIT! $ /Month Debt-to-Income Ratios as Calculated by Lender: Housing Costs % Total Debt % Terms of Loan Interest Rate # of Years o Fixed Note: Variable Loans are I\'ot Permitted. Check Applicable 50% or less 0 51 % - 80% 0 81%-115%0 *Note: III order to qualify for the MAP yourillcome may 1I0t exceed the followillg: Signature of Applicant Date Lender/Escrow Representative - Signature Date Signature of Applicant Date 201 North E Street, Suite 301. San Bernardino, California 92401-1507. (909) 384-5081. FAX (909) 888-9413 CDC 1999-19 HOUSEHOLD SIZE 1999 Income Level 1 2 3 4 5 6 7 8 Very Low (50%) $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Lower (80%)* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Median (100%) $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 Moderate (120%)** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 * The maximum income level for MAP assistance under federal HOME. Under MAP HOME - property value at the time of sales must not exceed 95% of the County's median purchase price. ** The maximum income level for MAP assistance under State Redevelopment Law. Under MAP State Redevelopment Law the affordable housing costs apply (Complete Housing Affordability Worksheet) PLEASE CHECK THE FOLLOWING o Sr. Citizen(s) - 62 or Older o Black o American Indian o Female Head of Household o Hispanic o White o Disabled One or More o Other o Asian or Pacific Islander ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGIBILITY FOR MAP IS THE SOLE RESPONSIBILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. ANY QUESTIONS CALL (909) 384-5081. P:~orms\Mortgage AssistanceThtAP~App[icant Eligibility.doc (Revised 7/99) CDe 1999-19 MORTGAGE ASSISTANCE PROGRAM ACQUISITION/REHABILITATION & RESALE PROGRAM APPLlCA nON AFFIDAVIT NOTE: ALL BLANKS ON THIS FORM MUST BE COMPLETED! THERE ARE IMPORT ANT LEGAL CONSEOUENCES TO THIS AFFIDAVIT: READ IT CAREFULLY BEFORE SIGNING. 1. I (we) the undersigned, as part of my (our) application for Acquisition, Rehab, Resale (A.R.R.) and Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of San Bernardino, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we), being first duly sworn, state the following: I (we) certify that the following are: a. My (our) legal Name(s): b. Social Security # c. Current residences: d. Telephone # The Unit (the "Residence") being purchased is a single-family home located in the City of San Bernardino at the following address: 2. I (we) certify that my (our) current gross annual household income, including income of all adult persons intending to occupy the Residence, is $ . I (we) understand that I (we) am (are) not eligible for a ARR- MAP unless my (our) gross annual household income does not exceed 80% of the median income for San Bernardino, and as specifically set forth in the Verification of Applicant Eligibility form. 3. I (we) certify that the Residence will be occupied and used as my (our) principal place ofresidence within forty-five (45) days after the date the ARR-MAP loan has closed. I (we) certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not more than fifteen percent (15) of the area of the Residence will be used in a trade or business. I (we) certify that I (we) will notify the Agency in writing if the Residence ceases to be my (our) principal Residence. Failure to occupy the Residence will result in the Agency accelerating the repayment of the Agency ARR-MAP Loan. 4. If the loan application is for a loan on a newly constructed home, I (we) certify that the Residence has not and will not be occupied prior to loan commitment from the Agency. CDC 1999-19 5. I (we) understand that I (we) am (are) not eligible for a ARR-MAP from the Agency under this program if! (we) individually or together had a present ownership interest in a principal residence within three (3) years prior to date of application. I (we) also understand that I (we) cannot have an ownership interest in a principal residence between the date of application and closing. For this purpose, a principal residence includes a single family residence, condominium, share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law), or occupancy in a multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by any means, whether outright or partial, including property subject to mortgage or other security interest. An ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy by the entirety, or a life estate interest. I (we) certify that I (we) have listed below all places of residence, whether owned or not, for a three-year period from date of application. 6. Previous Address: (Past Three Years) Owned Rented Other Beginning/Ending Date of Residencv From: End: Address of Residence All answers of "Other" must be fully explained; use additional paper if necessary. 7. Name, address and telephone of the owner/landlord who can verify each residence listed above which was not owned by the applicant. Landlord Name Address Telephone No. 8. I (we) certify that the total purchase price of the Residence and land, including all construction items, all commissions, all builder's fees, hook-up and tap-in fees, permits, architectural fees, all site improvements, discount points paid by the seller, work credit, subcontracted items, or construction loan interest, but excluding any closing costs and other permanent financing charges will not exceed the purchase price limitation applicable to the Residence below: Maximum Sales Price (Single Family Unit) $150,000. 9. I (we) further certify that no other agreement, either verbal or written is presently contemplated for the completion of the purchase of the Residence. 10. I (we) further certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified mortgage bond or a qualified veteran's mortgage bond. No person related to me (as defined in CDC 1999-19 applicable federal or state laws and regulations) has or is expected to have an interest as a creditor in the Mortgage loan being acquired for the Residence. 11. 1 (we) understand and agree that if a ARR - MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 12. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the ARR-MAP guidelines. 13. I (we) understand that the decision to make a first mortgage loan is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan. 14. I (we) cannot close my (our) loan prior to receiving a ARR-MAP loan approval. 15. I (we) acknowledge and understand that this Application Affidavit will be relied upon for the purpose of determining my (our) eligibility for a ARR-MAP. (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me (us) in connection with an application for a ARR-MAP may constitute a federal violation punishable by a fine and/or denial of my (our) application for a ARR-MAP loan. If a ARR- MAP loan commitment has been issued prior to discovery of the false statement, immediate cancellation of the ARR-MAP will occur which will be in addition to any criminal penalty imposed by law. Dated: Signature of Applicant(s) Dated: Signature of Applicant(s) P:\Fonns\Mortgage Assistance\MAP-Application Affidavit.doc CDC 1999-19 FIRST TIME HOME BUYER MORTGAGE ASSISTANCE PROGRAM DISCLOSURE STATEMENT I/We (Participant) understand and agree that the provision of financial assistance from the Redevelopment Agency of the City of San Bernardino (the "Agency") under the First Time Home Buyer Mortgage Assistance Program (the "Program") is conditioned on a number offactors, including, but not limited to (all terms not otherwise defined herein shall have the meaning provided in the Loan Agreement by and between the Agency and the Participant): . I/We must find a single-family detached home within the City of San Bernardino which I1We can afford (the "Property"). . I1We must qualify for a home loan from an institutional lender acceptable to the Agency. . I/We must qualify for assistance under the guidelines of the Program. . I1We must not have owned any interest in any residential real property during the past three (3) years. I/We further understand and agree that: I/We will be responsible for repaying the amount of the Note. The Note will be due and payable upon: (i) the sale of the Property, (ii) the transfer of any interest in the Property, (iii) refinancing of any lien or encumbrance to which the Agency Deed of Trust is subordinate, or (iv) I1We are no longer an occupant of the Property or are in default of any obligation under the Loan Agreement. . I1We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the Agreement is signed by sending a notice of my/our decision to rescind or cancel the Agency Loan to: Redevelopment Agency of the City of San Bernardino Housing Division 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 Attn: Housing Division Manager . An appraisal fee may be payable upon the following: (i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) I/We no longer occupy the Property, or (iv) I1We are/am in default of any provision of the Loan Agreement. . The Agency shall not be held responsible for any costs associated with the home I1We 1 \\EDA _SAN BERDO\PUBLlC\F orms\Mortgage Assislance\2-MAP-DISCLOSURE.doc CDC 1999-19 purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of the Property. . The Agency cannot ensure that information provided by or on my/our behalf will be confidential. . The Agency shall not be responsible for the selection of a home, the selection of a lender providing funds assisting in the purchase of the home, provide information concerning other public or private sources ofloans, or the competitiveness of the terms of the Program. I/We assume all responsibility for determining whether I/We will inform myself/ourselves as to the availability and terms of other public or private loans. . The Agency shall not be charged with the knowledge of the contents of the ocuments of the lender. DATED 19 DATED 19 DATED 19 2 \\EDA _SAN BERDOIPUBLICIFonnslMortgage Assistance\2-MAP-D1SCLOS URE.doc CDe 1999-19 IS of 8 ACQUISITION, REHABILITATION RESALE (ARR) AGREEMENT By and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO And .~~G~~'i~?JiJt~if~!k~S., ACQUISITION, REHABILITATION RESALE (ARR) ("ARR Participant") CDC 1999-19 TABLE OF CONTENTS I. [100] SUBJECT OF AGREEMENT .................................................................................. 2 A. [101] Purpose of Agreement......................................................................................... 2 B. [102] The HUD Units ................................................................................................... 3 C. [103] Parties to the Agreement ..................................................................................... 3 1. [104] The Agency ................................................................................................... 3 2. [105] The Participant ..............................................................................................3 3. [106] Prohibition Against Change in Ownership, Management and Control of the Participant.................... ............................ ............................................................... 4 4. [107] Benefits of Project.................................................................... .....................4 II. [200] AGENCY ASSISTANCE ......................................................................................... 4 A. [201] The Project .......................................................................................................... 4 B. [202] Agency Assistance ..............................................................................................5 C. [203] Term of Agreement ............................................................................................. 5 D. [204] Participant Assistance ......................................................................................... 5 E. [205] HUD Escrow ....................................................................................................... 7 F. [206] Affordable Housing Cost .................................................................................... 7 III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS .................................. 7 A. [301] Rehabilitation by Participant............................................................................... 7 1. [302] Cost of Rehabilitation.................................................................... ................ 8 2. [303] Bodily Injury and Property Damage Insurance............................................. 8 3. [304] Rights of Access............................................................................................ 9 4. [305] Local, State and Federal Laws ...................................................................... 9 5. [306] Anti-Discrimination During Rehabilitation .................................................. 9 B. [307] Taxes, Assessments, Encumbrances and Liens................................................... 9 C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit............................... 9 CDC 1999-19 D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders.................... 10 [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation..... .................. ........ ... ............. .................... ................................. 10 E. [311] Right of Agency to Satisfy Other Liens on the Project..................................... 10 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS ......... 11 A. [401] Uses - Covenants Running with the Land......................................................... 11 B. [402] Maintenance of the HUD Units......................................................................... 11 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation............................................................................. 13 V. [500] GENERAL PROVISIONS........................................................................... ........... 13 1. [501] Termination and Breach....................................................................................13 2. [ 502] Notice..................................................................................... ........................... 14 3. [503] Conflicts ofInterest; Nonliability ..................................................................... 14 4. [504] Inspection of Books, Records and Reports .......................................................14 5. [505] Indemnification................ ..................... ........ ............................................. ...... 15 VI. [600] SPECIAL PROVISIONS ........................................................................................15 1. [601] Submission of Documents to Agency for Approval......................................... 15 2. [602] Successors in Interest ........................................................................................ 15 VII. [700] ENTIRE AGREEMENT, WAIVERS ..................................................................... 15 VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCy........................... 16 [801] Time for Acceptance ............................................................................................... 16 EXHIBIT A - EXHIBIT B - EXHIBIT C - EXHIBIT D - EXHIBIT E - EXHIBIT F Map of ARR Zone Current Household Income Listings For Qualified Homebuyers ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant HUD Escrow Documents (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents ARR Rehabilitation Standards for Each HUD Unit HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents CDe 1999-19 ACQUISITION. REHABILITATION. & RESALE (ARR) P ARTICIP A TION AGREEMENT THIS AGREEMENT(the "Agreement") this 21 ST day of June, 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and Neighborhood Housing Services of the Inland Empire (the "Participant"). Agency and Participant hereby agree as follows: RECITALS WHEREAS, Agency is a California Redevelopment Agency engaged in carrying out its public purposes, including, without limitation, increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City"); and WHEREAS, the u.S. Department of Housing & Urban Development (HUD) has designated that certain area within the City shown on the map attached hereto as Exhibit "A" as the Acquisition, Rehabilitation and Resale (ARR) Revitalization Zone (the "Zone"), and has granted the City exclusivity to purchase directly from HUD, certain single family dwelling units owned by HUD REO's (the "HUD Units") at a discount off the As Is Value of each such HUD Unit (the "ARR Program") which the Agency as administrator for the City under the ARR Program, shall concurrently transfer title to the HUD Unit to the Participant for rehabilitation and resale pursuant to the terms and conditions of this Agreement; and WHEREAS, the Agency has also been designated by the Mayor and Common Council as the administrator of the HOME Program (the National Affordable Housing Act of 1990) on behalf of the City, with specific intent to expand the supply of decent, safe, sanitary and affordable housing, within a City's jurisdiction; and WHEREAS, the Agency may use either federal HOME Program funds or State Redevelopment low and moderate income funds to financially assist qualified first-time homebuyers (herein "Qualified Homebuyer") in the acquisition of HUD Units purchased directly from the Participant; provided however that the value of the HUD Unit to be acquired by a Qualified Homebuyer for which the Agency may provide purchase money mortgage assistance under either the HOME Program or under the other affordable housing assistance programs of the Agency (herein "MAP Program") must have a value that does not exceed 95% of the area median purchase price; and WHEREAS, with respect to the HUD Units, Agency desires to implement the ARR Program pursuant to which: a. Agency would buy one or more HUD Units directly from HUD on condition that the Participant purchases each such HUD Unit from the Agency at the discounted price which HUD offers to the Agency; and 1 CDC 1999-19 b. The Participant shall promptly rehabilitate the HUD Unit in accordance with rehabilitation standards set forth herein, and thereupon sell the HUD Unit, to an eligible low or moderate income buyer (e.g., a Qualified Homebuyer) at affordable housing costs pursuant to State or Federal requirements, depending on the source of funding (i.e., if Qualified Homebuyer uses HOME funds their income shall not exceed 80% of median income and State Redevelopment Low/Moderate Income Funds shall not exceed 120% of median income); and c. Prior to purchasing a HUD Unit from Agency, Participant shall provide satisfactory evidence to the Agency of all financing which shall include all costs associated with the acquisition, rehabilitation and disposition of the HUD Unit by the Participant. Based on receipt of such evidence of financing, the Agency shall accept or reject any offer received from the Participant to acquire a HUD Unit. The Participant shall complete the steps noted in Exhihit "C", attached hereto and incorporated herein by reference with respect to its acquisition and disposition of each HUD Unit to a Qualified Homebuyer; and d. If the Agency accepts any offer from Participant to purchase a HUD Unit, the Agency and Participant will open escrows (the "HUD Escrow") which shall close concurrently such that the escrow by which HUD shall transfer a HUD Unit to the Agency shall close concurrently with the escrow through which the Agency shall transfer that HUD Unit to the Participant; and e. Promptly after the closing of the HUD Escrow, the Participant will rehabilitate the HUD Unit within the timeframe herein, and sell it at affordable costs (the "Affordable Housing Costs") to a person or family of low or moderate income for owner occupancy purposes at the close of an escrow by and between the Participant and the Qualified Homebuyer (the "New Home Escrow"). The maximum income criteria applicable to a Qualified Homebuyer will be based on the type of financial assistance, if any, which the Agency provides to the respective Qualified Homebuyer at the close of a New Home Escrow (i.e., State Redevelopment Low/Moderate Income Funds up to 120% of median income or HOME Funds up to 80% of median income). The current 1999 Income Limits are noted in Exhibit "B". WHEREAS, Participant is a well established housing provider that has the experience, qualifications and desires to participate in the above described ARR Program. NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, Agency and Participant agree as follows: 1. IlOO] SUBJECT OF AGREEMENT A. [101] Purpose of Agreement The purpose of this Agreement is to effectuate various redevelopment plans for the City of San Bernardino (the "City"), by providing for Agency assistance to Participant in connection with 2 CDC 1999-19 the acqmsltlon, rehabilitation and disposition of the HUD Units hereinafter set forth. The acquisition, rehabilitation and resale of the HUD Units pursuant to this Agreement is in the vital and best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting on behalf of the Agency, has determined that the acquisition, rehabilitation, resale and uses contemplated by this Agreement will benefit the low-and moderate- income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Program and the goals and objectives of the affordable housing programs of the Agency. B. [102] The HUD Units Each HUD Unit shall be located within the Zone and shall be designated from time to time by the Agency. Each of the HUD Units shall be pre-approved by the Agency and identified on a list in writing, as available for transfer to the Participant subject to the terms of this Agreement. No HUD Unit shall be transferred to the Participant unless the Participant has submitted a timely and complete acceptance to purchase such HUD Unit to the Agency, as set forth herein. It is the express intent of the parties hereto that the Participant will attempt to acquire those HUD Units within the Zone which evidence the highest degrees of blight, are most in need of redevelopment, and are financially feasible. The Agency's purchase approval of each HUD Unit will be based upon compliance with this intent. C. [103] Parties to the Agreement 1. [104] The Agency The Agency is a public body, corporate and politic, exerclSlng governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et seq.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [105] The Participant The Participant is licensed to do business in the State of California. The principal office and mailing address of the Participant for purposes of this Agreement is: 3 CDC 1999-19 3. [106] Prohibition Against Change in Ownership. Management and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure for the benefit of the Agency. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 106 shall terminate with respect to each HUD Unit at the close of the New Home Escrow for that particular HUD Unit. Nothing in this Section 106 shall act to restrict the sale of rehabilitated HUD Units to Qualified Homebuyers if such sale is otherwise in compliance with the terms of this Agreement. 4. [107] Benefits of Proiect The Agency has determined that the purchase, rehabilitation and sale of HUD Units in accordance with this Agreement will eliminate blight, provide needed low- and moderate-income housing to the various project areas of the Agency, as well as the City and also increase homeownership opportunities for low- to moderate income households thereby stabilizing the community and decreasing rental housing in the City. II. [200] AGENCY ASSISTANCE A. [201] The Proiect The Agency agrees that with regard to any HUD Unit that it has approved in writing, and which the Participant has agreed to purchase as evidenced by the completed form of a "HUD Unit Purchase Agreement" in the form included in Exhibit "D", that the Agency shall, subject to the terms and conditions of this Agreement, acquire the HUD Unit from HUD and shall thereafter immediately transfer title to the Participant through the HUD Escrow. 4 CDC 1999-19 The Project, and specifically the Agency's obligation to acquire any HUD Unit, shall only arise to the extent funds are available from the Participant (or the "Participant's Lender" as hereinafter defined), to provide for the acquisition, rehabilitation and resale of the HUD Unit by the Participant at the close of the HUD Escrow. Moreover, the Agency shall only offer to transfer HUD Units to the Participant to the extent that the Agency, in its sole discretion, deems that the purchase price, associated rehabilitation and disposition costs are fair, equitable, comparable and that the Participant has funds sufficient to close the HUD Escrow and thereafter to complete the rehabilitation of the HUD Unit. B. [202] Agency Assistance In order to assist in the implementation of the Project and marketability of the Project, the Agency agrees to provide certain Agency assistance (the "Agency Assistance") as follows: (i) provide for the concurrent transfer of each HUD Unit which the Participant may agree to acquire as evidenced by a completed HUD Unit Purchase Agreement; provided however that purchase price for each HUD Unit and all escrow costs in connection with the HUD Escrow for that particular HUD Unit shall be payable solely by the Participant; and (ii) in addition to acquiring and thereafter immediately transferring title to any given HUD Unit to the Participant, the Agency may provide on a first come-first served basis to any Qualified Homebuyer certain down payment and closing costs, not to exceed ten percent (10%) of the Participant's sales price of the HUD Unit being sold, from either available funds of the Agency under the HOME Program or the Agency MAP Program, as applicable. c. [203] Term of Agreement The term of the Agreement shall be one (1) year from the date of this Agreement and ~nding June 30, 2000, except as set forth in Section 501. The Executive Director of the Agency (the "Director") shall have the option to renew this Agreement for an additional one (1) year period provided Participant is in compliance with the provisions of this Agreement. D. [204] Participant Assistance The Participant will select HUD Units based upon a list of available HUD Units prepared from time to time by the Agency. The Participant shall be solely responsible for obtaining all information in connection with the proposed acquisition and rehabilitation of each HUD Unit. Participant will take all action necessary to ensure the availability of funding for the acquisition, rehabilitation and resale of each HUD Unit prior to submitting any offer to purchase to the Agency and shall provide evidence to the Agency of such financing at the time it delivers a completed HUD Unit Purchase Agreement to the Agency (see Exhibit "D"). Participant will be responsible for the preparation and submission of all necessary paperwork required in connection with the acquisition of each HUD Unit (i.e., all of the HUD Escrow documents as assembled in Exhibit "D") and all other necessary documentation required for the close of escrow for any HUD Unit to be purchased by Participant from the Agency. Participant shall have not more than seven (7) days from receipt of the HUD listing from the Agency to select any HUD Unit for purchase and return 5 CDC 1999-19 the HUD Unit Purchase Agreement for such HUD Unit to the Agency as executed by the Participant. The Participant shall cause each HUD Escrow to be closed within forty-five (45) days from the date of execution of the HUD Unit Purchase Agreement and the other HUD Escrow documents by the Participant. No extension of time for the close of a HUD Escrow will be granted by the Agency and if a HUD Escrow does not close within the forty-five (45) day period after the HUD Unit Purchase Agreement has been fully executed for any reason not attributed to the fault or delay ofHUD or the Agency, then in such event this Agreement will be subject to termination. The Participant agrees that upon its acquisition of each HUD Unit from by the Agency, the Participant shall promptly commence and thereafter diligently complete the rehabilitation of the HUD Unit. Unless a longer period of time is approved by the Agency in its sole discretion at the time of the submission of the Participant acceptance of an offer to purchase a HUD Unit, the Participant shall complete the work of rehabilitation of each such HUD Unit within ninety (90) days following the close of the HUD Escrow. (i) Scope of Rehabilitation - The Participant shall rehabilitate all HUD Units acquired from the Agency in accordance with the ARR Rehabilitation Standards noted in Exhibit "E". Furthermore, the Participant shall prepare a Scope of Rehabilitation for each HUD Unit setting forth in detail the work that Participant agrees to perform on each HUD Unit purchased by Participant. The Scope of Rehabilitation shall be submitted by the Participant to the Agency concurrently with the executed HUD Unit Purchase Agreement and related HUD Escrow documents. (ii) HOME Program or Agencv MAP Program Assistance to Qualified Homebuyer - All HUD Units acquired and rehabilitated under the ARR Program, wherein the Qualified Homebuyer has applied for either HOME Program or Agency MAP Program assistance, will be reserved for sale to and occupancy by low- and moderate-income households, to be sold at affordable housing cost as such term. is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, or Part 92 HOME Investment Partnerships Subpart 7. (92.206), which requires that the value of the HOME assisted property to be acquired by the Qualified Homebuyer must have a value that does not exceed 95% of the area median purchase price of the HUD Unit, whichever funding source is used for the Participant's Qualified Homebuyer. (iii) Disposition of HUD Units and Qualified Homebuver Eligibility - The Participant will cause the marketing of each HUD Unit to prospective purchasers. Participant will screen prospective purchasers for eligibility in accordance with this Agreement, specifically to insure that Buyer meets the applicable HOME Program and/or Agency MAP Program Income Guidelines in accordance with Exhibit "B". Participant shall cause the opening of a New Home Escrow with prospective purchasers and will take all steps necessary to ensure each New Home Escrow is closed within forty-five (45) days from the date of its opening. At the close of the New Home Escrow, the ARR Covenant shall be fully executed and filed for recordation. The form of the ARR Covenant is included in Exhibit "D". 6 CDe 1999-19 E. [205] HUD Escrow The Participant is under no obligation to purchase any HUD Unit from the Agency and the Agency is under no obligation to transfer any HUD Unit to the Participant unless the Participant has first completed a HUD Unit Purchase Agreement for the particular HUD Unit as identified on a list of HUD Units as submitted by the Agency to the Participant. The parties will open simultaneous escrows (e.g., the HUD Escrow) to provide the acquisition by the Agency of each specific HUD Unit which the Participant has agreed to purchase from the Agency. The parties shall execute the escrow instructions and documents as set forth in Exhibit "D" as may be necessary to accomplish the foregoing. F. [206] Affordable Housing Cost For the purposes of complying with this Agreement, all HUD Units shall be sold to low- and moderate-income households (e.g., Qualified Homebuyers) at affordable housing costs as such term is defined in Health and Safety Code Section 50052.5, or Section 8, (24 CFR 813), whichever is applicable to the Qualified Homebuyer's HOME Program or Agency MAP Program assistance, if any. The Participant agrees to be bound by all limitations for Qualified Homebuyers as set forth and in each Agency Quitclaim Deed for a HUD Unit. The form of the Agency Quitclaim Deed is included in Exhibit "D". The Participant shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency by a date no later than forty-five (45) days following the opening of the New Home Escrow, including but not limited to the HOME Program or Agency MAP Program Checklist, Verification for Applicant Eligibility, First-Time Homebuyer Disclosure Statement, Application Affidavit as applicable under the HOME Program or the Agency MAP Program as included in Exhibit "F". III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS A. [301] Rehabilitation bv Participant Participant and Agency agree that the central purpose of this Agreement it to provide for quality rehabilitation of each HUD Unit purchased from the Agency in a manner consistent with the terms and standards of this Agreement. Each HUD Unit acquired by the Participant shall be rehabilitated in accordance with the rehabilitation standards noted in Exhibit "E", attached hereto and incorporated herein. With respect to each HUD Unit, the Agency shall approve in writing all specifications, and plans, if any, including but not limited to landscaping plans, designs, and specifications of each HUD Unit to be rehabilitated as well as the proposed Marketing Plan for each HUD Unit prior to the commitment of the Agency to acquire any HUD Unit pursuant to a HUD Unit Purchase Agreement. Such approval of the Agency shall be evidenced by the Director in his/her reasonable discretion as consistent with the goals and objectives of the ARR Program, or his/her designee. 7 CDC 1999-19 1. [302] Cost of Rehabilitation The cost of undertaking the Project, including the costs of acqUlsltlOn, rehabilitation, marketing and sales of each HUD Unit shall be borne solely by Participant. The Agency shall have no obligation to pay for any cost of the Project. The Participant acknowledges and agrees that the profit, if any, to be made by Participant from the disposition of each HUD Unit to a Qualified Homebuyer shall be limited to no more than fifteen percent (15%) of the gross sales price at the time resale of each such HUD Unit after rehabilitation to a Qualified Homebuyer. 2. [303] Bodily Iniury and Property Damage Insurance Participant shall indemnify defend and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency as additional insureds for claims for damages arising from the Project. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on any HUD Unit or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 8 CDC 1999-19 3. [304] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City as designated by the Director shall have the right of access to each HUD Unit, without charge or fee, at normal construction hours during the period of work for the purposes of the inspection of the work being performed in constructing the rehabilitation on the HUD Unit. The Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 304 resulting from the gross negligence or willful misconduct of the City or Agency while on the HUD Unit. This Section 304 shall not be deemed to diminish or limit any right which the City or Agency may have by operation of law irrespective of the Agreement. Nothing in this Section 304 shall be deemed to make either the City or the Agency a guarantor of the work of rehabilitation or improvement of any HUD Unit. 4. [305] LocaL State and Federal Laws Participant shall carry out the Project and all related activities on any HUD Unit in conformity with all applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. 5. [306] Anti-Discrimination During Rehabilitation Participant, for itself and successors and assigns, agrees that in the rehabilitation of the HUD Unit provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. .' B. [307] Taxes. Assessments. Encumbrances and Liens Prior to the issuance of a Certificate of Occupancy for any HUD Unit, Participant shall not place or allow to be placed on such HUD Unit any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on a HUD Unit, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to a Qualified Homebuyer. C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit 1. Prior to the recordation of a Certificate of Completion by the Participant for a HUD Unit, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of any HUD Unit. This prohibition shall not be deemed to prevent a transfer of a 9 CDC 1999-19 HUD Unit to a Qualified Homebuyer or the granting of temporary or permanent easements or permits to facilitate the rehabilitation of the Project. 2. Upon obtaining a Certificate of Occupancy from the City for a completed rehabilitation of a HUD Unit, the Participant shall sell such HUD Unit to a Qualified Homebuyer in accordance with and subject to the restrictions set forth in this Agreement. 3. The deed or other instrument of transfer by the Participant to any purchasers of the HUD Unit shall require that the unit be owner occupied by persons living in the units as their principal residences and shall further require that such unit shall remain available at affordable housing costs to the families of low- and moderate-income for a period of not less than ten (10) years subject to any other exceptions as may be provided by the Agency. 4. The Participant may not rent or lease any HUD Unit to a third party and during the time that the Participant may hold title to a HUD Unit, no person may use the HUD Unit for any residential dwelling purpose. D. [309] Mortgage. Deed of Trust, Sale and Financing; Rights of Holders [310] No Encumbrances Except Mortgages. Deeds of Trust or Sale for Rehabilitation Mortgages, deeds of trust other encumbrances of each HUD Unit are to be permitted before completion of the rehabilitation of a HUD Unit but only for the purpose of securing loans of funds to be used by the Participant for financing the acquisition or rehabilitation of improvements on the HUD Unit. Participant shall not enter into any other conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar lending institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 310, executed by the Director. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. E. [311] Right of Agencv to Satisfv Other Liens on the Proiect Prior to the completion of the rehabilitation on any given HUD Unit, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on a HUD Unit which are not otherwise permitted under this Agreement, Agency shall have the right, but not the obligation, to satisfy any such lien or encumbrance. 10 CDC 1999-19 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS A. [401] Uses - Covenants Running with the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to any HUD Unit, that for the period of time set forth in the Agency Quitclaim Deed, each of the HUD Units acquired by Participant shall be devoted to and available for sale solely to persons or families with an income which are very low, low and moderate, as those terms are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "C", or 24 CFR 813 whichever funding source is applicable to the Participant's prospective Qualified Homebuyer for the HUD Unit. The Participant further covenants and warrants that Participant shall undertake the rehabilitation on the HUD Units in accordance with the standards set forth in this Agreement. Participant covenants to obtain all necessary permits and rehabilitate each HUD Unit in conformity with all applicable laws. Failure to obtain all necessary permits shall be a default under this Agreement. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any HUD Unit, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any of the HUD Units. The foregoing covenants shall run with the land. These covenants shall be expressly incorporated in the Quitclaim Deed from the Agency to the Participant. B. [402] Maintenance of the HUD Units Maintenance Condition of Each HUD Unit. Between the date of the close of each HUD Escrow and the date of the close of the New Home Escrow for each such HUD Unit the Participant for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of each HUD Unit which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of close of a HUD Escrow, there is an occurrence of an adverse condition on any area of a HUD Unit which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as 11 CDe 1999-19 identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Participant has failed to comply with the provision of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the HUD Unit and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HUD Unit authorized by this Section shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in Subsection(c), below. (b) Graffiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or improvement on a HUD Unit which is visible from any public right-of-way adjacent or contiguous to the HUD Unit, shall be removed by the Participant by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HUD Unit and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HUD Unit authorized by this Subsection(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection( c ),below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HUD Unit, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably necessary to restore the HUD Unit to the maintenance standard required under Subsection(a) or Subsection(b), including attorneys fees and costs of the Office of Agency Counsel (including salaries and wages of the legal staff and pursuant of this Office of Agency Counsel) as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section, shall be a covenant running with the land, and each HUD Unit, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section shall be deemed to preclude the Participant from making any alteration, addition, or other change to any structure or improvement or landscaping on the HUD Unit, provided that such changes comply with applicable zoning and building regulations of the City. 12 CDC 1999-19 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement with respect to each Participant HUD Unit shall remain in effect for the term as set forth in the Agency Quitclaim Deed. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PROVISIONS 1. [501] Termination and Breach (a) Termination Without Default or Breach. This Agreement may be terminated for the convenience of by either party who is not then in default upon thirty (30) days notice to the other party; provided however, that for any HUD Unit for which a HUD Escrow is then open, such HUD Escrow transaction shall be closed and the HUD Unit shall thereafter be rehabilitated and offered for resale to a Qualified Homebuyer as set forth in this Agreement. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or 13 CDC 1999-19 more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary . 2. [502] Notice Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party under this Agreement shall be in writing and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as follows: Participant: Neighborhood Housing Services of the Inland Empire 1390 North "D" Street San Bernardino, CA 92405 Agency: Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 92401 3. [503] Conflicts ofInterest; Nonliabilitv No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participate, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. 4. [504] Inspection of Books, Records and Reports Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to any HUD Unit as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to any HUD Unit as pertinent to the purposes of the Agreement. 14 CDC 1999-19 The Participant shall provide quarterly reports to the Agency regarding all HUD units acquired and sold under this Agreement. 5. [505] Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the Agency's and the City's members, officials, employees and agents from and against any and all claims or liability arising from Participant's actions under this Agreement or from the conduct of Participant's business or from any activity, work or things done, permitted or suffered by Participant and shall further indemnify and hold harmless the Agency and City and their officers, employees and agents from and against any and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this Agreement arising from any negligent or wrongful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to environmental conditions, that may arise as a result of the Agency's acquisition and/or ownership of any HUD Unit that is the subject of the Agreement. VI. [600] SPECIAL PROVISIONS 1. [601] Submission of Documents to Agencv for Approval Whenever this Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 2. [602] Successors in Interest The terms, covenants, conditions and restriction of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. VII. [700] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Exhibit "A" through Exhibit "F", which together with this Agreement constitute the entire understanding and agreement of the parties. 15 CDC 1999-19 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city statues, or it is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this agreement shall not be affected thereby. All waivers of the provisions of this Agreement must be in writing by the Director of the Agency or the Participant, and all amendments thereto must be in writing by the Director of the Agency or the Participant, except that the Director may only agree to non-substantive changes hereto with concurrence by Agency Special Counsel. Substantial changes to this Agreement shall require the prior approval of the governing body of the Agency. Each individual signing below represents and warrants that he or she has the authority to execute this Agreement on behalf of and bind the party helshe purports to represent. VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [80 I] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Director as evidenced by the date first above shown. IIII IIII IIII 1/// IIII IIII 16 CDe 1999-19 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. By: "AGENCY" Redevelopment Agency of the City of San Bernardino By: "P AR TICIP ANT" Edward F, Executive By, () --L- oJ" ~~~ flaCk Hill, Title: Board President, NHSIE By: Title: 17 CDC 1999-19 EXHIBIT "A" 1999 ARR AGREEMENT "Map of ARR Zone" CDC 1999-19 !'! ~ '" E -J ~ o ?:- U !!! c: :: E ~ ~ co "0 E c:: e -5 ~ ~ It as a- t!! <( as ::E ~<<l 5 a: a a: o <( nn uu -\ ~:r: ~ 1-'" a:~ og zg- ~ .~ &-".".. ~'\\.\ ... ~ ~ " << ~ ;; - U) E m U1~ ocog> c C ~ =coo. tu N a. cC-d: (j;o-=: m+::C:; cm"O co .~ C ro-m _m o~cc ~?o: oo:~ CDC 1999-19 EXHIBIT "B" 1999 ARR AGREEMENT "Current Household Income Listings for Qualified Homebuyers" CDe 1999-19 EXHIBIT "B" 1999 Income Limits Income HOUSEHOLD SIZE Level I 2 3 4 5 6 7 8 Very Low $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 (50%) Lower. $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 (80%) Median $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 (100%) Moderate. · $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 (120%) * If Participant's Buyer is using HOME Federal Funds the Maximum Annual Income afamily can earn is 80% of median income according to household size. ** If Participant's Buyer is using State Low/Moderate Income Housing Funds the maximum annual income a family can earn is 120% of median income according to household size. P:1FomIslARR Program\A.RR /"';1.JIIre Um;ts.doc CDC 1999-19 EXHIBIT "C" 1999 ARR AGREEMENT "ARR Program - Steps and Process for Circulation of HUn Unit Listings by the Agency and Selection of HUn Units for Purchase by Participant" CDe 1999-19 Economic Development Agency City of San Bernardino ACQUIsmoN, REHABILITATION & RESALE PROGRAM (ARR) ARR PROCESS A. Exclusive Sales 1. EDA will receive weekly (Thursday evening) an exclusive list from HUD of units available within the Revitalization Zone. 2. EDA will distribute exclusive list to Participant no later than Friday A.M., following receipt of Thursday's list. 3. EDA has seven (7) days from receipt of list in which to express interest in any property. Thus, Participant will notify EDA within five (5) days (Tuesday, 5:00 p.m.) of receipt of list from EDA interest in property. 4. On fifth day, Participant will submit to EDA: (1) Request for Property & Inspection Analysis form. (2) HUD Sales Contract and attachments for signature by EDA staff. 5. EDA will notify Participant by 7th day (Thursday, noon), when documents are ready for pick-up. B. Direct Sales 1. Tuesday evenings HUD list properties on the Internet (Direct Sales Internet Lottery Process) 2. EDA approved Participants must express interest to purchase properties by 3PM Friday (3 days after HUD's posting of Direct Sales List). . Participant must perform due diligence of properties (completed property and inspection form). 3. Participant must retain HUD lottery number/confirmation number of transmission. HUD will select winner by Wednesday evening (1 week after posting Direct Sales List). 4. List of winner will be posted Wednesday evening. Participant should check this list promptly to verify whether they are the winner of the property. 1 CDe 1999-19 5. Upon verification of HUD winning lottery number, Participant will have until end of business day on Friday (2 days after HUD posts winners) to deliver a complete sales package to EDA include: - HUD Sales Contract (Original) (Include HUD Addendum A-D - HUD Land Use Restriction Addendum - Request for Property Inspection Analysis Form 6. EDA will review and execute sales package by 12:00 p.m., Monday. Participant to pick up Monday and overnight complete executed sales package to: Golden Feather, C/O Tammy Massone, 225 East Airport Drive, Suite 100, San Bernardino, California 92408, (909) 890-2370, (909) 890-3831 FAX. 7. Close of Escrow - HUD executes contracts and opens escrow at Arrowhead Escrow, 935 South Mt. Vernon, Suite 106, Colton, California 92324. (45 day maximum for closing) C. General Notes 1. Important - EDA purchases property under the name of "The Redeveloment Agency of the City of San Bernardino, a public body, corporate and politic." Therefore, all HUD contracts and documents must reflect this entity. 2. EDA's purchase is funded by Participants private lender or other funding sources with a concurrent escrow to close from EDA to the Contractor. (EDA does not provide any funding for HUD purchases or rehabilitation). \ 3. . After close of escrow from EDA to ARR Participant, Contractor performs rehabilitation on house per the original construction work write-up and markets property for sale. Contractor is responsible for obtaining permits with building and safety for all repairs to the house. 4. EDA Inspector performs a final inspection of the property (after rehabilitation in accordance with "Contractor Construction Work Write-up") to insure all work is completed as per these specifications. 5. Assuming the buyer has been qualified and pre-approved for the Mortgage Assistance Program (MAP), by the primary lender and EDA, and a final inspection has been performed by EDA Inspector, EDA will issue a check and fund the MAP for the buyer. P:\Forms\ARR Program\ARR Process.doc (Revised 7/99) 2 CDC 1999-19 ECONOMIC DEVELOPMENT AGENCY CITY OF SAN BERNARDINO "Acq uisition Check List" o COpy OF HUD SALES CONTRACT (Land Use & Part A-D) o REQUEST FOR PROPERTY INSPECTION ANALYSIS FORM To be executed and returned to EDA five (5) days from the date of list of properties is provided to participant D COpy OF ESCROW INSTRUCTIONS (HUD TO EDA) D COpy OF ESCROW INSTRUCTIONS (EDA TO PARTICIPANT) D PARTICIPANT CONSTRUCTION/REHABILITATION WORK WRITE UP TO EDA INSPECTOR o PRELIMINARY TITLE REPORT o (2) SETS OF ESCROW INSTRUCTIONS TO SIGN AND RETURN EXHIBIT "1" '~eeRDO\f'IJllUC\fOnnSIAAA p,ggromlAAA__ _7/99 3 CDe 1999-19 EXHIBIT "2" Economic Development Agency City of San Bernardino "Request for Property and Inspection Analysis Form" (10 be submitted by Partidpanllo EDA with HUD Sales Contract and Attachments) Date Submitted to EDA: ARR Contractor: Contact: Phone Number: "Information',"!'};;' ,:. ;'H:c.".;' Pllrtld htInf<irmatlcin':...i~~.~....jt";" HUD Case #: Status: 0 Uninsured 0 Insured Check Approximate Location in Revitalization Zone (See Map - Exhibit "A"). Property Address: City/Zip: HUD SALES PRICE ELECTRONIC BID PRICE (IF APPLICABLE) HUD DISCOUNT PRICE REHABIliTATION COSTS (L & M) PARTICIPANTS OVERHEAD TOTAL PROJECT COSTS ARR SALES PRICE ARR PARTICIPANT PROFIT Estimated Costs $ $ $ $ $ $ $ $ Total Sq. Ft. Actual Costs Bedrooms: Bath(s): $ $ $ $ $ $ $ $ % Profit (Maximum profit is 15% of Total Project Costs) Amount of Loan for Property (Acquisition & Rehabilitation Loan) ARR Participant Lender: Address: Phone Number: 'BUYERtNFORMATION .,7':" Buyer(s) Name: Family Size: MAP Loan: (Not to exceed 10% cI Purchaso Price) $ aosing Date Lender Name/Contact Lender Address: Lender Phone: Annual Gross Income: Buyer's Contribution: (Minimum cI $500) $ Participant Contribution: City: Lender Fax: Please check Appropriate Categories: Sf. Otizen(S) 62 Or Older 0 Female Head of Household 0 Hispanic 0 White 0 Asian or Padfic Islander 0 Disabled Family Member 0 American Indian 0 Black 0 I OFACE USE ONLY: % of Median = ARR Participant Signature EDA Representative Signature Date EDA Review Contract/lnspectlon Form/Date EDNPre-AcquiSitlon Inspection Signature/Date EDNPost-AcqUlsltlon Inspection Signature/Date \~ OfRDO\/'U8UC\F<Wm$\AAR ......m...... _ ~ 7/99) 4 CDC 1999-19 / l:.S.DEPT. OF 1l0l'S\:\C & URBAi\ DEYELOI'\lE:\T Addendum A (RF.\'4199) .........FORFEITURE :\~D EXTENSION POLiCy......... AlIIJl:1> I'r,)p~rty I)I,POSI1101l s~ks of 111'[)'~c'luH~d i'I"i','nl~' ~r~ to clos~ wllhl1l45 dJ\s of~c,qliJIlCe "f J IIl'[).<):qS (1 99) SJIe, COlltrJ,1 ofkr 10 pOrdlJS~ Forf~iture of Earlle't '.Jolley Deposih. Th~ fallur~ by a I'urchas~r to clos~ on th~ s~1e of pro!,,"I;, \\ 1111111 th~ allowable tlln~ p~rlud. IIlClu,LIl~ JIlY ~\I,'IlSI0IlS grJllleJ by Ill;D. w III result III tlt~ forkllure of th~ ~Jf1l~,t llIom'\ ':<'1'1\'11. ~\C~PI w here the purchJser presellh dllcumelllJl10ll to 1Il'Il thJI 1)11,' of the special cHcumstances descnbed III para!;rJphs (~I Jlld I b I below of thiS sectlOll hJS occurred (a) III\'estor Purchasers (I) The failure by an IIlvestor Purchaser 10 dose 011 all ulllllsured sale Will result m forkllure of the elllHe earnest money deposll (21 Fifty percent of the earnest money deposlI 011 In Illsured sale will be returned to an Inveslor Purchaser where 1 IUD (or a Direct Endorsement lender U5l11g 1I\:1l gUldeltlleS! delerm\l1es that the Purchaser IS 11,'1 all acceplap\e borrower (bl (II Owner.Occupant Purchasers The enme earnest money deposll will be rell1f;~ed 10 ~n owner.occupant PurchJser whl) fJI" to cillSe where, Slllce the contract of sale was Signed 1 here has beell a d~ath \11 the Imm~dlJle LlIlI:i:. I ClllltrJCI holder, spouse. or chlldrell 11\ 1110: In Ihe SJme hllus~hllld I, (lI (II) nlt're hJS be~1l a recent serious IlIne>s \11 Ihl' 1f~1IlledlJte farml)' that has resulted III Slgrlll'lCJnt medkal e\p~llses ur sub,lJntJalloss of Income, thus a,herselv afk,~IIIO: the purchaser's financial abIlllY 10 clthe the sak (III) Th~re has b~en a loss of Job bv on~ "I tlte pr "~:Jr-\ brc,l,lw 1I111er5, or substanl1JI loss uf Incl'llll' th.ough nll fJull"f (!Ie PurchJser, (\,) In the case of an IIlsured sale, IIL'D (lll a [)lIecll'.lhlursem~nt knder usrng HUD glllJeltn~s) dl'lel11l1ne> thJI th~ Purchaser IS nOI an ~cceptahle: borrol\ er. <'f " I . (,) for other g,)()d cause, as determllled b:. thl' fldJ offlcl' (.', In the case of an umnsured loan \\ here, despllt' good fJllh efforts by the Purchaser, thele IS an Iflablhty to obtalll a mortgage loan from a recognized mortgage kn,kr. 50 percent of the earnest money deposll wlil be returned (31 On either type of sale. forfeit 100 p~rcenl uf the depusII III those instances where no dl)CUml'ntalllllllS submllled, "hele the documentJtion falls to prOVIde an acceplJbk cause for the l3uyer's failure to close. or where documentallon IS not pro\ Ided ,,,thin a reasonable: tllne flllh'WlI1~ C,HllrJct caneellallon (eg , 30 days) El:tensions, llle Golden Fealher Realty office wlil grant e\tenslOns of IlI11C upon "'fllten request frol11 purchaser ExtenSions of IIfne tll dose the >ak arc entirely" tthin the Seller's dJ>crellllfl An e\:enSlon, If granted, "III be und~r the followrng eond'llons (JI :\ wfllten rl''iuest for an extenslO'l must hl' rc,"'I\~d In (,olden reath~r ReJlty no !:rll'r thJn fl\~ dJ\s bef,lIe thl' schl'duke! dodlme for closmg \b/ The d"cul11~ntatlon sublll1lted w IIh th~ r~<l\!C'1 nll"t e,I,1hltsh the cause of d~IJY Jlld thJt l11ortgJo:e appro\ JIIS Iflunlfl~U' dUllng the e\t~llSlOn penod (cl ..\n e\ten~lon Will be for a penod of flfl~l'fl c,lkfld.lI d3YS at a f~e ofS375 00 (~(PK ' .~O e!J\>, S750 (0) r~e' (cCltlf,ed fundsl WIll be depo'lt~d 111 escrflW IIlUfl~dlJ:-:;:' upon31'Proval Cd, I. \Il'n>l(\fl ke,; sh,llI b~ r~tJln~d h :-;,'Ikr 11.1 ,"'\Sll1g dlle> nol uccur leI :\t the t'lll~ of (\o;lIlg, unused t'\J','USlllfl k,', wlil bl'l'rOrJt~d to th~ l'urchJ,~r ;lIId rl'lun,kJ by e>cro" (fl nl~ granllll~ of on~ ext~nSlOfl ,lulllh'l (\bl:~'.It,' thl' Seller tu grant addlllonal t'\I~I"lllI\S. and the Selkr >hJII ,k,!JI~ J IkfJult for the' l'urchJ,elS' f.lIh:l': III Cl.hl' :::e 'Jk ur,\n th~ eXplrJtlllfl of thl' 'lIl~lIul (1""flO: p~II".1 or ul'onl'\i'",llt"ll ..f th\.o l",h.."n';l'''' CDC 1999-19 LEAD-Il.\SED PAI:--;T ADDE:--;Dl:;\I TO SALES CO:--;TRACT - PROPERTY BUILT BEFORE 1978 FilA CASE SO PROPERTY ADDRESS ATfACIIMENT A Page I of 4 :-;OTE TO Pl.RCIlASERS, REAL ESTATE BROKERS A:-;D AGE:-;TS: 11"s addrndum IS m<lnd.lIor)'for any proprrl) budl brfore 1978 and consulS affour parIs PI'" A.DlSclosurr af In/ormallon on Lrad.Based Painl anti'or J.ead.Based 1'"", Ha:ards. Parl B. S<lles Conlracl Lead Based I'ainl E,'aluallan Canllngrnc)". ParI C. O'knc.'r-OcCUl'nnl Ct'rlijicnllon. ami Part D. Purchaser's AtMen(lum 10 ,Ire.' Sales Corl/racl. Release of L~lUl B(ue,[ Paint E\'a{untion Contingency. .~Il parts mUSI bc.' Cf}"'pll'l\.'(( as sho',"" nus Lt'm/.Btued Pain' ..f,fdl..'ndum muSI bf.' comp!ctf.'d on or btforc the ddlt? of the Sales Contract. on,i forword('d to /IUD .,dlh the Sales CanlMclfor am proprrl.' b",ll b.'/ore 1978 Sales Conlracls ""hallllhlS .~ddrndllm ...lil nOI br accepld bl /It'D 11,is Adden,lum Sllrvi,'es Ih, closing oflhr sale PART A DISCLOSL'RE OF ISFORMATlO,V ON LEAD.BASED PAI.VT AND/OR LEAD BASED PAINT HAZ~RDS l~f...\() """\R:\t:"lG STA T[~l['\T. E,"cry purcllllSt'r of any in/crest In resitl..'ntlal rt.'al prOpt'rlY 011 \\hfch d rl'ju!entiaJ ,bn'llmg "'"as bUIll pnor to 19;'8 Is notified ,11a: Sk,'h pml"'m m.1l proen: "IPOS"'" CO t.-nd from lend. baud Ihm mar 1'1,,,< )"Of<llK chddren al fISk of dr-doping Irad poisonIng Lend poisontng ,n young ch.l,lren n",-, praducc" p.'rm.:n.'", r.."lImloglCr./ .Ia"Ul);'". includIng learning d,mbd,Cl"s. rrduc...1 inte/llgence qUOI,,"nl. behal'/oral problems. and impaired memory. Lead poiSOning ..;'.J 1''''''' ~ p.",,,u;," "-', Iv pr.'gndnl homen Thr sella of all> InlarS( tn "5uloal<1lprop,'rl) IS "'q"'''',IIO prol."/r Ilrr buyer ".1I1r any tnformallon on lead.b<ll.'d pmnl h,l:iJrlfs from rJ5J.:. l1SSt.'SSlnt.'nlS or Jnspecllons in the seller's passl'SSlOn and nOff!Y lhf! buyt'r of tiny kno\'\'n Icad-based pmnl ha:ards A n'sk assessmenl or inspeauJn for pOSs,vh' /1!l1,f. bnsfd paint ha:l1rds is rt'cOmmendl"d prior '10 purchase SELLER'S DISCLOSl'RE A. Presence of kad-based paint and'or lead.based paint hazards (check one below): 1. Known lead.based paint and'or Iead.based paint hazards are present in the property (explain): 2. Seller has no actual knowledge of lead. based paint and/or lead.based paint hazards in the property B. Records and reports available to the seller (check one bdow) 1. Seller has provided the purchaser with all available records and reports pertaining to lead. based paint andJor lead. based paint hazards in the property (hst documents below). 1. Seller has no reports or records pertaining to lead.based paint and'or lead-based paint hazards 111 the property PURCHASER'S ACK.'\OWLEDGEi\lENT (initial) C. Purchaser has received copies of all infomlation hsted above. D. Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. E. Purchaser has (c~eck one below): 1. . Requested a 15 day opportunity to conduct a fISk assessment or Inspection for the presence of lead.based paint and or lead-based paint hazards; or 2. Waived the opportunity to conduct a risk assessment or inspection for the presence of lead. based paint and'or lead- based paint hazards. BROKERlAGEi"T ACK.'\OWLEDGE:\IENT (initial) F. Broker'agent has informed the seller of the seller's obhgations under 42 U.s.e. 4852d and is aware of his/her responslblhty to ensure compliance. CERTlFICATlO:--; OF r\CCCRACY TIle following parties have reviewed the infom1ation abovc and certify, to the best of their knowledge, that the information they havc provided is true and accurate. Se lIer Date Pure haser Date Purchaser Date Broker 'Agcnt Date 9/96 CDC 1999-19 Attachment A Page 2 of 4 PART B SALES CO:'\TRACT LEAD-BASED PAI:'\T EVALUATION CONTINGENCY This contract is contingent upon a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-b:lsed paint hazards at the Purchaser's expense until 12 noon on the 15th calendar day after acceptance, on [I nsert date] This contingency willtemlinate at the above predetermined deadline unless the Purchaser or Purchaser's agent delivers to the Seller or Seller's agent Part D of this addendum listing the specific lead-based paint hazards and corrections needed, together with a copy of the inspection and/or risk assessment report. The Seller may, at the Seller's option, within fi\'e days after delivery of Part D of this Addendum, elect in writing whether to correct the hazards(s) prior to settlement. If the Seller will correct the hazard(s), the seller shall furnish the Purchaser with certi fication from a risk assessor or inspector demonstrating that the hazard(s) have been remedied before the date of the settlement. I f the Seller does not elect to make repairs, or if the Seller makes a counter-offer, the Purchaser shall have five days to respond to the counter offer or remove this contingency and take the property in its "as is" condition or this contract shall become void. The Purchaser may remove this contingency at any time without clause. INTACT LEAD-BASED PAII\T THAT IS IN GOOD CONDITION IS NOT NECESSARILY A HAZARD. See EP A pamphlet Protect YOllr Famil)' From Lcad ill rOllr Home for more inforrnation. lead-Based Paint Addendum to the Sales Contract - Property Buill Before t978, including ParI A, Disclosure of IllformatiOll on Lead-Base'! Pailll alllllor Lead Based Paint Hll:ards. Part C. 0" Iler-Occupant Certificatloll (if applicable), and ParI D, Purchaser's Addendum to the Sales CotJIraCI _ Release of Lead-Based P,lInt Em/lIallOIl Contillgency. if applicable, must also be completed and made a pan of this Sales Contract. 9/96 CDC 1999-19 LAND USE RESTRICTION ADDENDUM Thi~ Addendum IS Incorporated by reference to lhe FHA Sales Contract lor the properry located .11 ..____, e"eculed on IhlS S.lme day of , 199_ between (Purchaser) and lhe Depar1mcnt of HOUSing and Urban Development (Seller). Unless an e"ception is !;rantcd In wrillng by (he Sella: a The Pure/Ii"er IS expecled, at a minimum, to rtpalr the properly according to local code, after which it shall rl"sellthe properly only (n a person who intends 10 occupy as his or her principal residence and whose income is at (llbelow 115 percenl of the median income in the area, when adjusted for family Size, or a Slate, government cntiry, rrine, or agency thereof. or a prlVale nonprofit organization as defined in 24 CFR 291.405. b. The purchaser shall not resell the propcrly for an amollnt in excess of 110 percent of the ncl development cost. Net development cost is lhe total cost of the project, including items such as aeGulsition cost, archlteclural fees, permits Iind survey expenses, insurance, rehabilitation, and taxes It does not include a developer's fee. TOlal COSls incurred by lhe Purchaser, including Ihose for acquisition flJ1llOeing, management, rehabilitalion, and sclling expenses, are expected 10 be reasonable and (ustomary for the area in which this properly is located. ( The developer's fee provides for Purchasers overhead anu staffing costs related (0 Ihe project, and may not exceed 10 percent of the nel development COSI d rhe properry may nol be occupied hy or resold to any of the Purchaser's officers, din:etors. clcClcd or Iippointed onicials, employees. business associates, or to any individual who is related hy blood, marriage. Or law to any of lhe above. e There may be no conOic( of iOlerest with individuals or firms that may provide acquisilion or r~habilililtlon funding, management Or sales services, or other associated with the projecl. 2. Purchaser must provide pwodic reports, as specified by 24 CFR 291.110 and in the format and tTequency specified by HUD, regarding the purchase and resale of propcrtles subject to this Addendum. 3. TIlis Addendum survives the expiration, if any, by operation of law or olherwise, of the FHA Sales Contract, and shallterminale five years from the date contained herein. Witness Purchaser Secretary of HousinJ:! and Urban Development Seller Witness By' CDC 1999-19 Allowable Closing Costs. The following closing costs with a combined value of not more than 3% of line 3 of the 9548 (\199) Sales Contract may be credited to Line 5 of the Sales Contrac!. Funds not consumed will be credited to the Seller. 1"-" Loan Ongination Fee Credit Report Impounds Interest Hazard Insurance Lenders Cow rage Policy Owners Coverage Policy f\;otary Taxes (Current tax year) HOA Dues (Current month plus one) AlITO~lA TICALL Y PAID I3Y HeD (1101 illcluded olllille 3) Recordmg Fees - Deed and \Iongage City/County Tax/Stamps Escrow Closing Fee Wire Transfer Fee to \\'ashington. D.C. HUD Case No. Property Address: City' Seller Disclosure. Seller makes no representations or warranties concerning the condition of the property, includmg but not limited to mechanical systems, dry basement, foundation, structural. or compliance with code, zoning or building requirements and will make no repairs to the property after execution of this contrac!. Purchaser understands that regardless of whether ule property is being financed with an FHA-insured mortgage, Seller does not guarantee or warrant that the property is free of visible or hidden structural defects, termite :dalnage, lead-based paint, or any other condition that may render the property uninhabitable or otherwise unusable. Purchaser acknowledges responsibility for taking such actioriasit believes necessary to satisfy itself that the property is in a condition acceptable to it, of laws, regulations and ordinances affecting the property, and agrees to accept the property in the condition existing on the date of this contrac!. Seller disclosure concerning HOA dues, Mello Roos taxes, assessments, or any tax concerning HUD homes is based on available information but not deemed complete or accurate. It is the responsibility of the I3uyer to obtain all information concerning these issues. 'Valk-Thru Inspection. All purchasers are strongly encouraged to perform a walk through inspecllon PRIOR to the close of escrow, If a purchaser discovers a property condition that did not exist at the time of sale they must immediately notify HUD's property manager, Golden feather Realty, of the damage. The buyer assumes full responsibility for the property and its condition on the date of close of escrow. TIle Department assumes no responsibility. and will make no settlement, for damages reponed to HUD after ule close of escrow (See item II I3.E of HUD Sales Contract) Buver Certification - I we certify that ),\\e ha\'e been mter\'lcwcd. completed a loan application, verificallon of employments and obtained a full credit n:port from the lender tllathas prOVided the attached Leiter of Commitmen!. Ilwe understand that I:we WIll forfeit our earnest money depllslllf \\ center mto thiS contract \\ Ithout completing this qualification proce.ss, Signatures (purchaser) (Purchaser) (Purduser) ---- ..---- ( Purchaser) CDC 1999-19 EXHIBIT "D" 1999 ARR AGREEMENT HUD Escrow Documents: (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents CDC 1999-19 Attachment ^ Page 3 of 4 PART C OW~ER-OCCL'PA~T CERTlFICATlOi\ TO BE CO\lPLETED BY ALL OWNER-OCCUPANT PURCHASERS ONL Y Check and complete the following. as appropnate: _ IJwe do not havc a child undcr the age of scven ycars. _ Vwe do ha\'e a child under thc age of seven ycars Their names and ages are as follows: Name Agc Check only one of the following blocks if children under seven are indicated above _l!we underst::md that within IS days after acceptance by HUD of my/our offer to purchase, Uwe will at my/our expense, have each of the above-named children tested for an elevated blood level (EBL) and that Uwe will provide these tests to HUD. If Uwe fail to provide the test results to HUD within thelS day time frame, the contract will be canceled immediately without further notice. Further, I/we understand that if an EBL condition is identified, Uwe ha\'e the option to: I) cancel this contract and receive our earnest money deposit back, or 2) complete the sale of the property within the understanding that Uwe will, at a minimum, have the property tested for the presence of lead-based paint on all chewable surfaces and, where lead-based paint on chc\\'able surfaces is identified, have such paint surfaces abated. _ I/we fully understand that if a blood lead level screening program is not reasonably available or if Uv,;e . refuse to have my/our child(ren) tested, l/we have the option of closing this sale. I/we hereby acknowledge that this property l/we am/are purchasing from the Department of Housing and Urban Developmeni may contain lead-based paint. However, despite this possibility, liwe elect to close the sale on this property. Further, I!v,:e agree to hold HUD harmless for this action. Signature of Purchaser Signature of Purchaser Dale Slgruture of Witness Date 9% CDC 1999-19 Altachment A Page 4 of 4 cAD BASED PAI:-;T ADDE:-;DL::\I TO SALES CO:-;'TRACT - PROPERTY BUILT BEFORE 1978 FilA CASE 1'0. PROPERTY ADDRESS: PART D PURCHASER'S ADDESD/.;'AF TO THE SALES CONTRACT- RELEASE OF LEAD-BASED PAIST EVALUAT/OI" CONT/NCEl.;cr Ifp"rch,lSer ////lluled purl A. lI.m E I oflh,' L<',,,f.EI,,,,.d Pu'"1 AdJelld"IIIIV I/:e Suit's COlllroct. Proper;It's [J"'/I Be/He /978 (.-fdd,,'/Jdum). rlzl.l Part D must br..' comp!t.'(c:d as shv\\"n and pro\'idecllO the St'/Ier on or before the dale shoHIJ in t/u' ..4ddcndum. Purl B. or rh,' COflllng.:ncy IS tcrl1JltlJ:I..'d ~(purd'ClSer lfll(w/ed Part A. item E. '2 (I1t'lI rIllS Pdrl D is uflnecessdry and Ill'ed Ildt to ht' completed {)r prom!.'d Iv 11.<, St'i/er PURCHASER'S ACK1"0\\'LEDGEi\lE;\T (check appropriate boxes) I ] Purchaser acknowledges that he/she has received a 15 day opportunity (or other mutually agreed upon period) to conduct a risk assessment or lead-based paint inspection for the presence of lead-based paint and.'or lead-based paint hazards, that such a risk assessment or lead. based paint inspection has been made I ] Purchaser acknowledges that Seller is under no obligation to correct any lead.based paint and;or lead- based paint hazards identified by the lead-based paint inspection and/or risk assessment and hereby removes the contingency and accepts the property III its "as is" condition, without warranty, as described in item B, Conditions of Sale of the contract. [ ] Purchaser requests that Seller take the following action to correct the lead-based paint hazards noted: Lead-Based Paint Hazard Corrective Action Requested Purcha~eT has attached the risk assessment or inspection report. If Seller refuses this request, Purchaser reserves the right to continue with the purchase or requ.:~t cancellation of th.: sales contract. ( ) Purchaser requests canccllation of thc sales contTact due to the following deficiencies indicated in the allachcd rcport{s): CERTIFICATIO:-; OF ACCURA.CY The following parties have rcviewed thc infomlation abovc and cerllfy, to the best of their knowledge, that the information they have provided is truc and accurate. Purchaser Date Purchaser Date Broker 'Agent Date 9% . " CDC 1999-19 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of San Bernardino 201 North "E" Street, suite 301 San Bernardino, CA 92401 Attn: Executive Director (Space Above Line Reserved For Use By Recorder) RECORDATION OF THI$ INSTRUMENT IS EXEMPT FROM ALL FEES AND TAXES REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS FOR THE ARR PROGRAM (Name of Oualified Homebuyer) Dated as of , 200. l ---ARR PROGRAM: [NAME OF DEVELOPER/PARTICIPANT]--- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ~n~^Jnnn' In~r/~~14.2wod CDC 1999-19 COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS (FOR THE ARR PROGRAM) THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS, (the "ARR Covenant") is made and entered into as of , 200 , by and among (the ~Participant"), the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency"), and (the "Qualified Homebuyer"), and this ARR Covenant relates to the following facts set forthih Recitals. R E C I TAL S A. The Qualified Homebuyer proposes to acquire a single family residence (the "New Home"), located within the City of San Bernardino (the "City"), from the Participant, to be owned and occupied by the Qualified Homebuyer as their principal residence. The legal description of the New Home is attached hereto as Exhibit ~A" and incorporated herein by this reference. B. The Agency has made this property on which the New Home is situated available to the Participant for the purposes as set forth under that certain Aquisition, Rehabilitation Resale (ARR) Agreement dated as of (the ~ARR Agreement") in order t.o make the New Home available for acquisition by the Qualified Homebuyer from the Participant subject to the terms and conditions of this ARR Covenant; and C. The terms of the ARR Agreement mandate that the acquisition, use and occupancy of the New Home shall be restricted in certain respects for the term as provided herein (the ~Qualified Residence Period") in order to ensure that the New Home will be used and occupied in accordance with the ARR Agreement and the affordable single family residential dwelling unit development goals and objectives of the Agency. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 1 CDC 1999-19 NOW, . THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, THE PARTICIPANT AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. Covenant, the following words and terms shall provided in the Recitals or in this Section 1 context of usage of a particular word or require: As used in this ARR have the meaning as unless the specific term may otherwise Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for fpmily size) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167 (k) 3b) (3) under the Code, as adjusted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 50052.5. At the time of the close of the New Home Escrow, or later when a proposed Successor-In-Interest acquires the new home the amount of the maximum Affordable Housing Cost payable in connection with the acquisition of the New Home at any time during the Qualified Residence Period shall. be calculated as set forth in Health and Safety'Code 50053.5(b) (1) or (2), as applicable. Code. The word "Code" means the Internal Revenue Code of 1986, as amended, and any regulation, rulings or procedures with respect thereto. Delivery Date. The words "Delivery Date" mean the date of delivery of title and possession of the New Home from the Participant to the Qualified Homebuyer at the close of the New Home Escrow. Lower-Income Household The words "Lower Income Household" mean persons and families whose income does not exceed the qualifying limits for lower income families as established and amended form time to time pursuant to Section 8 of the United States Housing Act of SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 2 CDC 1999-19 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Sectretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjsuted for family size and revised annually. As used in this section, "area median income" means the median family income of a geographic area of the state. New Home. The words "New Home" mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as rehabilitated and completed by the Participant and sold to the Qualified Homebuyer. New Home Escrow. The words "New Home Escrow" mean and refer to the real estate conveyance transaction or escrow by and between the Participant and the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In- Interest). The transfer of the New Home from the Participant to the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. Notice of Agency Concurrence. The words "Notice of Agency Concurrence" mean and refer to the acknowledgment in recordable form in which the Agency confirms that the proposed Successor-In-Interest of the Qualified Homebuyer satisfies all of the AdjUsted family Income and other requirements of this ARR Covenant for occupancy of the New Home by the Successor- In-Interest at any time during the Qualified Residence Period. Qualified Homebuyer. The words "Qualified Homebuyer" mean the purchaser of the New Home from the Developer (e. g. : all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Homebuyer shall: (i) have an annual Adj usted Family Income which does not exceed the household income qualification limits of a Lower-Income Household: (ii) shall be a first- time homebuyer, as this term is defined in Health and Safety Code Section 50068.5; and (iii)pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, including all sums SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 3 CDC 1999-19 payable by the Qualified Homebuyer for mortgage financing, insurance, escrow costs. its purchase money and other fees and Qualified Residence Period. The words "Qualified Residence Period" mean the period of time beginning on the Delivery Date and ending on the date which is ten (10) years after the Delivery Date. ARR Covenant. The words "ARR Covenant" mean these Redevelopment Agency of the City of San Bernardino Community Redevelopment Housing Affordability Covenants and Restrictions by. and among the Qualified Homebuyer, the Participant and the Agency pertaining to the New Home. Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person, family or household which may acquire the New Home from the Qualified Homebuyer at any time during the Qualified Residence Period by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a "first-time homebuyer" and shall have an income level for the twelve (12) months prior to the date on which the Successor- In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for a Lower-Income Household. Upon acquisition of the New Home the Successor- In-Interest shall be bound by each of the covenants, conditions and restrictions of this ARR Covenant. The titles and headings of the sections of this ARR Covenant have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or resirict the meaning any of the terms or provisions hereof. Section 2. Acknowledgments and Representations of the Oualified Homebuyer. The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery Date: (a) the total household income for the Qualified Homebuyer does not exceed the maximum amount permitted as Adjusted Family Income for a Lower-Income Household, adjusted for family size; (b) the Qualified Homebuyer intends to promptly occupy the New Home after the Delivery Date as the principal place of residence for a term of at least two (2) years following the Delivery Date and the Qualified Homebuyer has not entered into any arrangement and has no present intention to rent, sell, transfer or assign the New Home to any third party during the Qualified SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 4 CDC 1999-19 Residence Period so as tq frustrate the purpose of this Section 33334.3 Covenant; (c) the Qualified Homebuyer has no present intention to lease or rent any room or sublet or rent a portion of the New Home to any relative of the Qualified Homebuyer or to any third person at any time during the Qualified Residence Period; (d) the sum payable each month by the Qualified Homebuyer following the close of the New Home Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Home does not exceed the Affordable Housing Cost for the household; (e) the Qualified Homebuyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax returns filed by all persons who reside in the New Home for the calendar year preceding the close of the New Home Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all person residing in the New Home at the close of the New Home Escrow; (f) The Qualified Homebuyer has been informed by the Participant that this ARR Covenant imposes certain restrictions on the use. and occupancy of the New Home during the term of this Section ARR Covenant and that this ARR Covenant imposes certain restrictions on the resale of the New Home during the Qualified Residence Period. The Qualified Homebuyer acknowledges and understands that these restrictions shall be applicable to the New Home and to any resale of the New Home from the Delivery Date to the end of the Qualified Residence Period which is , 201 Dated: Initials of Qualified Homebuyer Section 3. Covenant of the Oualified Hornebuyer to Maintain Affordability of the New Horne During the Oualified Residence Period and Covenant Relating to Sale or Transfer of the New Horne During the Oualified Residence Period to a Successor-In-Interest. SBEO/0001/DOC/3514.2wpd 6/14199 116 rp 5 CDC 1999-19 (a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the New Home shall be used and, occupied by the Qualified Homebuyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or for another Lower-Income Household as a Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as provided in this Section 3 to verify that each proposed Successor-In-Interest of the Qualified Homebuyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of a Lower- Income Household (based upon the Adjusted Family Income of each household), and that the completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the "Notice of Agency Concurrence" as provided in Section 3 (d) . (b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any interest therein) to a Successor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least sixty (60) days prior to the date on which the Qualified Homebuyer proposes to transfer title in the New Home to a Successor-In-Interest, the Qualified Homebuyer shall send a written notice to the Agency as provided in. Section 17 of the intention of the Qualified Homebuyer .to sell the New Home to a Suc~essor-'-In-:-Interest which includes the . following true and correct information: (i) name of the proposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); (ii) copies of State and federal income tax returns for the Successor-In-Interest for the calendar year preceding the year in which the notice of intention to sell the New Home is given to the Agency; (iii) resale price of the New Home payable by the Successor-In-Interest, including the terms of all purchase money mortgage financing to be assumed, SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 6 CDC 1999-19 provided or obtained by the Successor-In- Interest, escrow costs and charges, realtor broker fees and all other resale costs or charges payable by either the Qualified Homebuyer or the Successor-In-Interesti (iv) name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Homebuyer to the Successor-In-Interesti (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such referencei and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c). (c) Within twenty (20) days following receipt of the notice of intention described in Section 3(b), the Agency shall provide the Qualified Homebuyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In- Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adjusted Family Income and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) has been provided to the Agency~ In the event that the Agency may request additional ~ iJ?formati<m relating to the. confirmation of the matters described in Section 3(b), the Qualified Homebuyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Home, the Agency shall deliver a written acknowledgment and approval of the resale of the New Horne to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3(b) (iv) above, and thereafter the Successor-In-Interest may acquire the New Home subject to the satisfaction of the following conditions: (i) the recordation of the Notice of Agency Concurrence executed by the Successor-In-Interest and the Agency at the close of the resale escroWi SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 7 CDe 1999-19 (ii) the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Homebuyer and the final escrow closing statement for the Successor-In-Interest; and (iii) the other conditions established by the Successor-In-Interest of the resale escrow as Qualified Homebuyer and shall have been satisfied. (e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants and agrees that during the Qualified Residence Period the New Home shall not be leased, subleased, or rented to any third person, except for a temporary period (not to exceed 12 months) in the event of an emergency or other unforseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Homebuyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event wi thin not more than (60) days following the commencement of a temporary rental occupancy of the New Home by a third party, which notice shall set forth the grounds on which the Qualified Homebuyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. Section 4. Maintenance Condition of the New Home. The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that: (a) ~he exterior areas of the Ne~ Home which are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the term of the Qualified Residence Period, there is an occurrence of an adverse condition on any area of the New Home which is subj ect to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Qualified Homebuyer in writing of the Maintenance Deficiency and give the Qualified Homebuyer thirty (30) days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiency" include without limitation the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property use restrictions: SBEO/0001/DOC/3514.2wpd 6/14199 116 rp 8 CDc 1999-19 failure to properly maintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of wed and debris; parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on any other parts of the property which are not covered by a paved and impermeable surface; the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Home. In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Homebuyer ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has failed to comply with the provision of this Section 4(a). If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Home (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c). SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 9 CDc 1999-19 (b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the New Home shall be removed by the Qualified Homebuyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the New Home (exterior areas only) and such graffiti is visible from an adj acent or contiguous public right-of-way and thereafter such graffiti is not removed within 72 hours following the time of its application; then in such event and without notice to the Qualified Homebuyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Section 4(b) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4 (a) or Section 4 (b), including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or ~emoval of graffiti and the collection of the costs of the Agency in connection with such action. In any legal proceeding for enforcing such a lien against the New Home, the prevailing patb shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4, shall be a covenant running with the land for the Qualified Residence Period and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable law. Nothing in the foregoing provisions of this Section 4 shall be deemed to preclude the Qualified Homebuyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 10 CDC 1999-19 Section 5. [RESERVED/NO TEXT] Section 6. [RESERVED/NO TEXT] Section 7. Foreclosure of Purchase Money Mortgage Loan and Agency Right of First Refusal. (a) During the Qualified Residence Period the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Home at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period the Agency shall have the right of first refusal to purchase the New Home from the Qualified Homebuyer on the same terms which the Qualified Homebuyer may propose to offer the New Home for resale to a Success-In- Interest. The Agency must exercise such a right of first refusal within thirty (30) days following written notification of the intention of the Qualified Homebuyer to resell the New Home, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Homebuyer and close an escrow for the transfer of the New Home to the Agency within sixty (60) days following written notification of the intention of the Qualified Homebuyer to resell the New House. Section 8. Covenants to Run With the Land. The Participant, the Agency and the Qualified Homebuyer hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a common plan for the rehabilitation of affordable single family housing improvements within the terri torial jurisdiction of the Agency and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Home and each Successor-In-Interest of the Qualified Homebuyer in the New Home for the term provided in Section 10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this ARR Covenant. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Home or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 11 CDe 1999-19 and restrictions are set forth in such contract, deed or other instrument. . Section 9. Burden and Benefit. The Participant, the Agency and the Qualified Homebuyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Homebuyer's legal interest in the New Home is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Homebuyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Home by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable single family housing development goals and objectives of the Agency and in order to make the New Home available for acquisition and occupancy by the Qualified Homebuyer. Section 10. Term. This ARR Covenant shall apply to the New Home and the Qualified Homebuyer and to each Successor-In-Interest as of the Delivery Date for the Qualified Residence Period -- e.g.: this ARR Covenant shall remain in full force and effect for ten (10) years after the Delivery Date. Any provision or section hereof, may be terminated after the Delivery Date upon agreement by the Agency and the Qualified Homebuyer (or the Successor-In- Interest in the New Home), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in i~s reasonable discretion will not adversely affect the affordable single family housing and development goals of the Agency. . Section 11. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Homebuyer to honor or perform any material term or provision of this ARR Covenant shall constitute a breach under this Agreement; provided however, that if the Qualified Homebuyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days after the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Homebuyer written notice of breach specifying the alleged breach which if uncured by the Qualified Homebuyer within thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 12 CDe 1999-19 shall not constitute a waiver of any breach or event of default nor shall it change the time of breach or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 11. Except with respect to rights and remedies expressly declared to be exclusive in this ARR Covenant, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Homebuyer may remain incurred for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 as related to a Maintenance Deficiency at the New Home, upon the occurrence of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Qualified Homebuyer to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (i~)' by other action at law or in or conveni~ni to enforce covenan'ts and agreements Homebuyer to the Agency. equity as necessary t~e' obligations, of the Qualified (b) No third party shall have any right or power to enforce any provision of this ARR Covenant on behalf of the Agency or to compel the Agency to enforce any provision of this ARR Covenant against the Qualified Homebuyer on the New Home. Section 12. Governing Law. This Section 33334.3 Covenant shall be governed by the laws of the State of California. Section 13. Amendment. This ARR Covenant may be amended after the Delivery Date only by a written instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as applicable) and by the Agency. The Participant shall have not any SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 13 CDe 1999-19 right or power to approve any such amendment to this ARR Covenant, and the execution by the Participant of any such amendment after the Delivery Date shall not be required. Section 14. Attorney's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this ARR Covenant or otherwise arising out of this ARR Covenant, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 15. Severability. If any provision of this ARR Covenant shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this ARR Covenant which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Section 16. Time is of the Essence. For each provision of this ARR Covenant which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 17. Notice. Any notice required to be given under this ARR Covenant shall be given by the Agency or by the Qualified Homebuyer, as applicable, by personal delivery or by First Class United States mail at the addresses specified below or at such other address as may be specified in writing by the parties hereto: If to the~Agency: / Executive Director Redevelopment Agency of the City of San Bernardino 201 North "EN Street, Suite 301 San Bernardino, CA 92401 Phone: (909) 384-5081 If to the Qualified Homebuyer: Attn: Phone: Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personally delivered, when received SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 14 CDc 1999-19 by the Executive Director of the Agency or the Qualified Homebuyer, as applicable. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 15 ~JJJ-.J.:;1 CDC 1999-19 IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer and the Agency have caused this Covenant to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this ARR Covenant is authorized under Health and Safety Code Section 33334.3(g). QUALIFIED HOME BUYER Dated: By: By: PARTICIPANT Dated: By: AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director [ALL SIGNATURES MUST BE NOTARIZED] Approved as to Form: By: Agency Counsel SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 16 rnr lQQQ_l0 EXHIB:rT "A" Legal Description of the New Home SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 17 CDe 1999-19 [address of Participant under the ARR Agreement] ) ) ) ) ) ) ) ) ) ) ) (Space above line reserved for use by Recorder) RECORDING REQUESTED BY Redevelopment Agency of the City of San Bernardino AND WHEN RECORDED MAIL PROPERTY TAX BILL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS [ARR Program: (Name of Grantee/Participant)] PART A THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS' (the "Quitclaim Deed") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corpora te and politic (the "Agency") in certain real property situated at , San Bernardino, California (the "Property") to , (the "Participant"), subject to the community redevelopment affordable single family housing conditions, covenants and restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the community redevelopment affordable single family housing conditions, covenants and restrictions of this Quitclaim Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 1 of 7 CDC 1999-19 (-- The Property--) on Official Records of the Office of San Bernardino County. file in the of the Recorder PART B The quitclaim of the Property by the Agency to the Participant is expressly subject to the satisfaction of the following community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain Acquisition, Rehabilitation, Resale Agreement dated (the "ARR Agreement") by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty-five (25) years commencing on the date of recordation of this Quitclaim Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated for occupancy only to a "person" or a "family" who is a "Qualified Homebuyer" for a term of the shorter period of either: (i) twenty-five (25) years from the dat~'of recordation of this Quitclaim Deed; or (ii) the term, as provided in the ARR Agreement Covenant described in subparagraph 3, below. The words "Qualified Homebuyer" refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first-time homebuyer," as defined in Health and Safety Code Section 50068.5, and whose annual income during the twelve (12) months preceding the date of initial occupancy of the Property by the Qualified Homebuyer does not exceed the income qualification limits for "lower income households", as defined in Health and Safety Code Section 50079.5 (Statutes of 1979: Chapter 96). Health and Safety Code Section 50079.5 provides: "'Lower Income households' means persons and families whose income does not exceed the qualifying limits for lower income SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 2 of 7 CDc 1999-19 families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. As used in this section, 'area median income' means the median family income of a geographic area of the state.H 3. As a condition precedent to any transfer, sale, conveyance, grant or other hypothecation by the Participant of the Property to a Qualified Homebuyer the "Acquisition, Rehabilitation Resale Affordability Use and Occupancy CovenantH (the "ARR CovenantHI, substantially in the form attached hereto as Exhibit "A-1H or Exhibit "A-2,H as applicable and as incorporated herein by this reference shall be fully executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The final form of the ARR Covenant shall be consistent with the terms and conditions, ot the ARR Agreement as applicable to the Qualified Homeb.uyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the ARR Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the ARR Covenant shall be a separate community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and assign of the Qualified Homebuyer for the term as provided in the ARR Covenant. 4. Prior to the recordation of the ARR Covenant as provided in subparagraph 3 of PART B of this Quitclaim Deed, the Property shall not be offered for sale or sold to a Qualified Homebuyer for a sale price which exceeds more than Dollars ($ I, exclusive of customary and reasonable "escrowH and sales SBEO/0001/00C/3513.1 6/15/99 1200 ct Page 3 of 7 CDC 1999-19 transactional costs which may be normally allocated to a Qualified Homebuyer by an owner-builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of PART B of the Quitclaim Deed shall have no further force or effect upon the property after the date of the complete execution and recordation of the ARR Covenant. 5. The Property shall be subject to the following affordable housing redevelopment covenant in perpetuity and the text which appears in this Quitclaim Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enj oyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with . reference to the selection, location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PART C During the term of subparagraph 2 of PART B, but prior to the recordation of a fully-executed copy of the ARR Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales and ancillary business activity on the Property associated with the improvement and sale by the Developer, pursuant to the ARR Agreement, of an affordable single family dwelling unit on the Property prior a Qualified Homebuyer. The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the ARR Covenant. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 4 of 7 CDC 1999-19 PART D The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an increase, improvement and preservation of the communi ty' s supply of low- and moderate-income housing. The transfer of the Property by the Agency to the Developer for this purpose and the recordation of this Quitclaim Deed is authorized by Health and Safety Code Sections 33334.2 and 33334.3, and other applicable law and actions of the Agency, including without limitation, the ARR Agreement. PART E Upon the delivery of this Quitclaim Deed to the Participant, the community redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by either the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(f) (2) against the Participant and each successor in interest or assignee of the Participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 5 of 7 CDC 1999-19 THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized signatures of the Executive Director of the. Agency. AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic Dated: By: Executive Director Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] [NOTE: Exhibit "A-I" MAP Assistance) General Form of ARR Covenant (Agency Exhibit "A-2" Program) ] General Form of ARR Covenant (HOME SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 6 of 7 CDC 1999-19 ACCEPTANCE OF QUITCLAIM DEED AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT (the "Participant"), hereby accepts the deli very of the instrument identified above as the "Quitclaim Deed of a Public Agency and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Quitclaim Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San Bernardino, subject to the conditions, covenants and restrictions contained in the Quitclaim Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property to be improved and rehabilitated as set forth in the ARR Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Quitclaim Deed which touch and concern the Property and are community redevelopment covenants which run with the land. PARTICIPANT Dated: By Its: By: Its [NOTARY JURAT ATTACHED] SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 7 of 7 CDe 1999-19 HUD UNIT PURCHASE AND SALE AGREEMENT Property Address: THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is dated for identification purposes only, as of , 199_, and is made and entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and (the "Participant"), with reference to the following: RECITALS A. WHEREAS, the Agency and the Secretary of Housing and Urban Development (the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition Program a copy of which is attached hereto as Exhibit "A" (the "HUD Contract") regarding sale by the Secretary to the Agency of that certain property commonly known as San Bernardino, California (the "HUD Unit"). A legal description of the HUD Unit is attached hereto as Exhibit "B"; and B. WHEREAS, subj ect to the terms and conditions of that certain Acquisition, Rehabilitation and Resale (ARR) Agreement dated 1999 (the "ARR Agreement"), by and between the Participant and the Agency and this Agreement, Agency desires to sell the HUD Unit to the Participant and the Participant desires to purchase the HUD Unit from the Agency at the close of the "HUD Escrow" as set forth herein. NOW, THEREFORE, IN CONSIDERATION OF THE: MUTUAL COVENANTS SET FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS: 1. Warranty of Authority by Participant. The Participant warrants that it is a under the laws of the State of California, and is authorized to execute this Agreement and all of the documents and instruments contemplated hereby, including, without limitation, supplemental escrow instructions and the Acceptance of Agency Quitclaim Deed; and that this transaction has been approved by [resolution of its board of directors]. A certified copy of that [resolution] which remains in effect, will be delivered to Agency before the close of the HUD Escrow as set forth herein. SBEO/0001/DOC/3515 6/15/99 245 ct 1 CDe 1999-19 2. Agreement to Sell and to Purchase. Subject to the terms and conditions of this Agreement, the Agency agrees to sell and the PartLcipant agrees to purchase the HUD Unit. 3. Purchase Price. The "Purchase Price" for the HUD Unit is the same sum in cash or immediately available funds in United States Currency as the discounted purchase price which the Agency has agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit. The Purchaser Price shall be payable by the Participant's delivery of the full amount to the escrow holder in cash or by wire transfer of immediately available funds at least one(l) business day before close of the HUD Escrow or by cashier's check during business hours at least three(3) business days before the close the HUD Escrow. 4. HUD Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees to pay all of the costs of the escrow holder in the HUD Escrow including all amounts charged to the account of the Secretary and the Agency. The escrow holder is hereby instructed to collect such costs and charges from the Participant at the close of the HUD Escrow. 5. Conditions for the Benefit of the Agency. The obligation of the Agency to perform this Agreement is subject to the satisfaction of the following conditions, which are for the Agency's benefit only: (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen(15) days after the date hereof; (b) . 'that the Secretary perform under the HUD Contract and t~e title of the HUD Unit actually be transferred from HUD to the Agency within forty-five (45) days after the date hereof; (c) the Agency shall have received, satisfactory to the Executive Director, a the insurance required pursuant to Section in form and substance certificate evidencing 16 of this Agreement; (d) that the Participant has duly execute and deliver to the escrow holder, in recordable form the Acceptance of the Participant of the Agency Quitclaim Deed. (e) that the Participant not otherwise be in default under its other obligations to the Agency under the ARR Agreement. SBEO/OOOl/DOC/3515 6/15/99 245 ct 2 CDC 1999-19 The conditions set forth above are for the Agency's benefit only and the Executive Director of the Agency (the "Executive Director") may waive all or any part of such rights by written notice to the Participant and escrow holder. If any of said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Executive Director, the Agency may thereafter terminate this Agreement without any liability on the part of the Agency by giving written notice of termination to the escrow holder, with a copy to the Participant. Escrow holder shall thereupon, without further consent from the Participant, return to each party the documents, if any, deposited by them. 6. Conditions for Participant's Participant to perform this satisfaction of the following Participant's benefit only: Benefit. Agreement conditions, The obligation of is subject to which are for the the the (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen (15) days after the date hereof; and (b) HUD Uni t after the that the Secretary actually transfer date hereof. perform under the HUD Contract and the from HUD within forty-five(45) days The conditions set forth above are for the Participant's benefit only and the Participant may waive all or any part of such rights by written notice to the Agency and the escrow holder. If any said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Participant, subject to the approval of the Se~retary and the Agency, the Participant may thereafter terminate this Agreement without any liability on the part of the Participant by giving written notice of termination to the escrow holder, with a copy to the Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each party the documents, if any, deposited by them. 7. Escrow. The transfer of the HUD Unit to the Participant shall be consummated through an escrow established with the escrow agent engaged by the Secretary to handle the transfer of the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a schedule coordinated with the closing or the transfer of the HUD Unit between the Secretary and the Agency under the HUD Contract. This Agreement shall constitute the escrow instructions to the escrow holder of the Participant and the Agency with respect to the HUD Unit. The Agency and the Participant shall execute such SBEO/0001/DOC/3515 6/15/99 245 ct 3 CDC 1999-19 additional escrow instructions as may be reasonably required by the escrow holder. 8. Term of Escrow. Escrow shall close concurrently with the close of escrow under the HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the County of San Bernardino, California. 9. Condition of Title. The Agency shall convey to the Participant by quitclaim deed all of the right, title and interest in the HUD Unit which the Agency receives from the Secretary under the HUD Contract. The form of the Agency Quitclaim Deed is attached hereto as Exhibit "C" and incorporated herein by this reference. 10 . Title Insurance. The Agency shall not be responsible for providing any title insurance to the Participant in connection with the transfer of title in the HUD Unit to the Participant. Any title insurance desired by the Participant shall be ordered and paid for by the Participant at its sole cost and expense. 11. Prorations. All assessments, including improvement assessments which are available for payment without interest or penalty for advance payment, taxes, rent, and ground rent, if any, shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently with the escrow under the HUD Contract, through which escrow such items will be prorated between the Secretary and the Agency, the parties acknowledge and agree that the Participant shall be charged for such prorations in precisely the same amount as the Agency is charged under the HUD Contract. 12. Escrow Closino Costs. The Participant shall pay all escrow closing costs of both parties, including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the Participant shall pay all closing costs and expenses charged to the Agency in the escrow by which HUD transfers the HUD Unit to the Participant. 13. Closing. At the Close of Escrow, (a) the Agency shall deliver to the Participant through escrow a the Agency Quitclaim Deed conveying the HUD Unit to the Participant, (b) the Participant shall deliver to the Agency through escrow the acceptance of the Agency Quitclaim Deed, and (c) the escrow holder shall collect and pay the SBEO/0001/DOC/3515 6/15/99 245 ct 4 CDC 1999-19 sums indicated for the transfer of the HUD Unit under the HUD Contract and this Agreement and deliver such other documents to the parties in accordance with the instructions of each of them. At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed to be recorded in the Official Records of the County of San Bernardino, California. 14. Condition of the HUD Unit. The Agency makes no representation or warranty to the Participant or to any third party concerning the condition of the HUD Unit, including, without limitation, mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and the Agency will make no repairs to the HUD Unit either before or after execution of this Agreement. The Participant understands that the Agency does not guarantee or warrant that the HUD Unit is free of visible or hidden structural defect, termite damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or otherwise usable. Participant acknowledges responsibility for taking such action and conducting such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit in the same condition delivered to the Agency by the Secretary, in an "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS" condition. 15. Possession: Repairs. The Participant may not perform repairs nor take possession of the HUD Unit until the escrow is closed. At the close of the HUD Escrow, the Participant may take possession of the HUD Unit and promptly commence the work of rehabilitation as ~equired for theHUD Unit under the ARR Agreement. 16. Insurance. Prior to the Close of Escrow, the Participant shall obtain and shall thereafter maintain in full force and effect at all times a broad-form comprehensive general liability policy with a limit of not less than $1,000,000.00. Such insurance shall provide for a 30-day notice to the Agency before cancellation of the policy and shall name the Agency as an additional insured as to claims arising out of the work to be performed on the HUD Unit following the Close of Escrow pursuant to the ARR Agreement. 17. Assignment. The Participant and the Agency each agree that this Agreement shall be binding upon their respective, heirs, executors, administrators, successors or assigns and is not assignable by the Participant unless the written consent of the Executive Director is first obtained, which consent the Executive Director may withhold in his or her sole ,and absolute discretion. SBEO/0001/DOC/3515 6/15/99 245 ct 5 CDC 1999-19 18. Notices. All notices, demands and requests which may be given by either party to the other or to the escrow holder shall be in writing and shall be deemed to be given upon personal delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt requested, postage prepaid, addressed to the party to be notified at the address following the party's signature or if addressed to the escrow holder, at the address set forth in the supplemental escrow instruments signed by the parties. Either party may designate by written notice to the other party in the manner set forth in this Agreement another address for notice. 19. Miscellaneous Provisions. 19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to enforce, any provision of this Agreement shall not be a waiver of any further breach of such provision hereof. The waiver by either or both parties of the time for performing an act shall not be a waiver of the time for performing any other act or acts required hereunder. 19.2 Modifications. or any part hereof shall each of the parties. No change or addition to this Agreement be valid unless in writing and signed by 19.3 Governing Law. California law. This Agreement shall be governed by 19.4 Headings. The headings in this Agreement are fbr convenience only and shall not be used to interpret this Agreem~nt. 19.5. Further Acts. Each party agrees to take such further action and to execute and deliver such further documents as may be necessary to carry out the purposes of the ARR Agreement with respect to the HUD Unit and this Agreement. 19.6 Attorneys' Fees. If either party incurs attorneys' fees to enforce this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees as set by the court from the other party. 19.7 No Real Estate Brokers Commission Payable By the Agency. The Agency shall not be responsible for the payment of any real estate brokers commission or finders fee in connection with the escrow or the transfer of the HUD Unit to the Participant. SBEO/0001/DOC/3515 6/15/99 245 ct 6 CDC 1999-19 19.8 Time. Agreeqent. Time is of the essence with respect to this IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director PARTICIPANT By: Its: By: Its: SBEO/0001/DOC/3515 6/15/99 245 ct 7 CDe 1999-19 EXHIBIT "E" 1999 ARR AGREEMENT "ARR Rehabilitation Standards for Each HUn Units" CDe 1999-19 ARR REHABILITATION STANDARDS I. GENERAL DESCRIPTION The Participant will acquire HUD Units and cause the rehabilitation and resale of the housing thereon. II. REHABILITATION STANDARDS All of the improvements to be-provided by the Participant on the HUD Units constitute the "Project". The Project shall be developed in accordance with applicable building and safety codes. III. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Project Site, and the suitability of the Project Site. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Project Site entirely suitable for such development. Participant has undertaken all investigation of the Project Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the rehabilitation of the project. IV. AMENITIES EachHUD Unit shall have full amenities and shall inc1udethe following: front yard landscaping and aut~matic sprinklers, side and rear yard fencing. . V. REHABILITATION STANDARDS Rehabilitation Standards shall include Section 8 Housing Quality Standard (HQS) Minimums and are not limited to: I. Interior work to make structures more livable, such as, plastering, painting, new sub flooring and tile work. 2. Repair, restoration or replacement of important parts of structures, such as, heating systems, plumbing systems, electrical components, kitchen appliances (stoves, refrigerator). 3. Installation of water/energy conservation devices. 4. Installation of security devices. 1 \\EDA_SAN BERDO\PUBLlC\Fonns\ARR Progmn\ARR Rehabilitation Slandards.doc CDe 1999-19 5. Wheelchair ramps, kitchen and/or bathroom modifications related to a disability of a household member. The following list contains some of the typical repair items and replacement activities: 6. Replacement of plumbing fixtures. 7. Addition of electrical outlets and/or wiring. 8. Insulation. 9. Replacement of roof. 10. Repair and/or enlargement of inadequate kitchen and/or bathroom. 11. Repair/replacement of furnaces and air conditioners. 12. Plaster and dry rot repair. 13. Repair/replacement of porches, steps, fences and walkways. 14. Termite, rodent or vermin fumigation. 15. Addition of closets or other minor built-ins. 16. Chimney repair/replacement. 17. Repair/replacement of railing. 18. Repair/replacement of windows and doors. 19. New ceilings. 20. Weather stripping for windows and doors. 21. Repair/replacement/addition of gutters and down spouts. 22. Repair/replacement of exterior trim. 23. Repair/replacement of stucco (wrap & stucco of wood siding structures). 24. Repair of foundation, structural repair. 25. Replacement of existing toilets, tub and shower, lavatories (cabinets). 26. Carpeting and other flooring. All other items are optional, per agreement, between contractor and buyer. 2 \\EDA_SAN BERDO\PUBLtC\Forms\ARR Program\ARR Rehabilitation Standards.doc CDC 1999-19 EXHIBIT "F" 1999 ARR AGREEMENT "HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents" CDe 1999-19 MORTGAGE ASSISTANCE PROGRAM (MAP) ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM Date: Property Address: Borrower( s): MAP Amount: FIRST TIME HOME BUYER PROGRAM - MAP CHECKLIST Step:~.."~..ForReserYtiti()Q:pfFunds.Le~~r .bYEPA ........ \ .. . .. ... ..... ...... ... .. . Latest Tax Return (1 040's) and 2 Current Pay Stubs 0 Application Affidavit - Signed by Borrower 0 Verification for Applicant Eligibility (Completed by Lender) 0 Preliminary Escrow Instructions 0 . '. . ;~(~p~8:;E(),,"E.DA:t():\ff~qjj~~tfotMAPChe~l<:Reql.l~~tfot ,Funds .L~1;ter. >~ ," .': :!l;"'/ "",\;,~,,,-,.,;- , -';C~,,; ,-:''';;',,;-' Complete Demand for Funds Letter 0 Submit MAP Docs (Loan Agreement, Deed of Trust, Promissory Note, CC & Rs) 0 Seller (ARR Contractor) must call EDA Inspector for a Final Inspection (10 days prior to close of escrow) St~p,31i....:F.()t:t:.DA...t()R~I~.ti$~ ':MAP.\Chec:k..:to't:.ScrpY{ ". ;:;_::::i--:-~;---C; ;:i~>~-/ . u " ~'-i'+_+' :: Final Escrow Documents (Includes Amendments) 0 First Time Home Buyers Class Certificate 0 lender Representative: 'fED.\..SAN BEROO'PUeUC'Fonns'Map-ARRIMAP.cheek L1st.doc D2I1.... MP CDe 1999-19 City of San Bernardino . ECONOMIC DEVELOPMENT AGENCY VERIFICATION FOR APPLICANT ELIGIBILITY . Redevelopment . Community Development . Housing . Business: - Recruitment - Retention - Revitalization . Main Street, Inc. ACQUISITION, REHABILITATION AND RESALE PROGRAM (ARR) AND MORTGAGE ASSISTANCE PROGRAM (MAP) Phone Number Household Size # of Minor Children Name of Applicant Current Address Property Address to be Purchased CitylState San Bernardino, California Zip Code Name of Lender Contact Person Loan Number Phone Number Fax Number "'Annual & Monthly Income (See Below) $ Near $ /Month Income used by the lender to qualify for the loan, if different than annual income of application. $ Near $ /Month Monthly Consumer Debt $ /Month Max Loan Amount $ Principal & Interest $ /Month Sales Price $ Est. Property Taxes $ /Month Buyer Down $ ($500 Min.) Est. Insurance $ /Month Map Amount $ Mort. Ins (If Applicable) $ /Month TYPE OF LOAN OFNMA 0 FHA n Other Total PITI . . $ /Month . Debt-to-Income Ratios as Calculated by Lender: Housing Costs % TotalDe~ % Terms of Loan Interest Rate # of Years o Fixed Note: Variable Loans are Not Permitted. Check Applicable 50% or less 0 51% -80% 0 81%-115%0 "Note: 1" order to qualify for tlle MAP your i"come may not exceed tllefollowing: Signamre of Applicant Date Lender/Escrow Representative - Signature Date Signature of Applicant Date 201 North E Street, Suite 301. San Bemardino, Califomia 92401-1507. (909) 384-5081. FAX (909) 888-9413 CDC 1999-19 HOUSEHOLD SIZE 1999 Income Level I 2 3 4 5 6 7 8 Very Low (50%) $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Lower (80%)* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Median (100010) $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 Moderate (120%)** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 ... The maximum income level for MAP assistance under federal HOME. Under MAP HOME - property value at the time of sales must not exceed 95% of the County's median purchase price. .. The maximum income level for MAP assistance under State Redevelopment Law. Under MAP State Redevelopment Law the affordable housing costs apply (Complete Housing Affordability Worksheet) PLEASE CHECK THE FOLLOWING o Sr. Citizen(s) - 62 or Older o Black o American Indian o Female Head of Household o Hispanic o White o Disabled One or More o Other o Asian or Pacific Islander ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGIBILITY FOR MAP IS THE SOLE RESPONSIBILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. ANY QUESTIONS CALL (909) 384-5081. P:'Eonns\Mortpge Assist&nCC\J\.lAP-Applicanl Eligibility.doc (Revised 7199) CDC 1999 -19 MORTGAGE ASSISTANCE PROGRAM ACQUISITION/REHABILIT A TION & RESALE PROGRAM APPLICATION AFFIDAVIT NOTE: ALL BLANKS ON THIS FORM MUST BE COMPLETED! THERE ARE IMPORTANT LEGAL CONSEOUENCES TO THIS AFFIDAVIT: READ IT CAREFULLY BEFORE SIGNING. 1. I (we) the undersigned, as part of my (our) application for Acquisition, Rehab, Resale (A.R.R.) and Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of San Bernardino, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we), being first duly sworn, state the following: I (we) certify that the following are: a. My (our) legal Name(s): b. Social Security # c. Current residences: d. Telephone # The Unit (the "Residence") being purchased is a single-family home located in the City of San Bernardino at the following address: 2. I (we) certify that my (our) current gross annual household income, including income of all adult persons intending to occupy the Residence, is $ . I (we) understand that I (we) am (are) not eligible fora ARR- MAP unless my (our) gross annual household income does not exceed 80% of the median income for San Bernardino, and as specifically set forth in the Verification of Applicant Eligibility form. 3. I (we) certify that the Residence will be occupied and used as my (our) principal place of residence within forty-five (45) days after the date the ARR-MAP loan has closed. I (we) certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not more than fifteen percent (15) of the area of the Residence will be used in a trade or business. I (we) certify that I (we) will notify the Agency in writing if the Residence ceases to be my (our) principal Residence. Failure to occupy the Residence will result in the Agency accelerating the repayment of the Agency ARR-MAP Loan. 4. If the loan application is for a loan on a newly constructed home, I (we) certify that the Residence has not and will not be occupied prior to loan commitment from the Agency. CDC 1999-19 5. I (we) understand that I (we) am (are) not eligible for a ARR-MAP from the Agency under this program if! (we) individually or together had a present ownership interest in a principal residence within three (3) years prior to date of application. I (we) also understand that I (we) cannot have an ownership interest in a principal residence between the date of application and closing. For this purpose, a principal residence includes a single family residence, condominium, share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law), or occupancy in a multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by any means, whether outright or partial, including property subject to mortgage or other security interest. An ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy by the entirety, or a life estate interest. I (we) certify that I (we) have listed below all places of residence, whether owned or not, for a three-year period from date of application. 6. Previous Address: (Past Three Years) Owned Rented Other Beginning/Ending Date ofResidencv From: End: Address of Residence All answers of "Other" must be fully explained; use additional paper if necessary. 7. Name, address and telephone of the owner/landlord who can verify each residence listed above which was not owned by the applicant. Landlord Name Address Telephone No. 8. I (we) certify that the total purchase price of the Residence and land, including all construction items, all commissions, all builder's fees, hook-up and tap-in fees, permits, architectural fees, all site improvements, discount points paid by the seller, work credit, subcontracted items, or construction loan interest, but excluding any closing costs and other permanent financing charges will not exceed the purchase price limitation applicable to the Residence below: Maximum Sales Price (Single Family Unit) $150,000. 9. I (we) further certify that no other agreement, either verbal or written is presently contemplated for the completion of the purchase of the Residence. 10. I (we) further certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified mortgage bond or a qualified veteran's mortgage bond. No person related to me (as defined in CDe 1999-19 applicable federal or state laws and regulations) has or is expected to have an interest as a creditor in the Mortgage loan being acquired for the Residence. 11. I (we) understand and agree that if a ARR-MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 12. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the ARR-MAP guidelines. 13. I (we) understand that the decision to make a first mortgage loan is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan. 14. I (we) cannot close my (our) loan prior to receiving a ARR-MAP loan approval. 15. I (we) acknowledge and understand that this Application Affidavit will be relied upon for the purpose of determining my (our) eligibility for a ARR-MAP. (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me (us) in connection with an application for a ARR-MAP may constitute a federal violation punishable by a fine and/or denial of my (our) application for a ARR-MAP loan. Ifa ARR- MAP loan commitment has been issued prior to discovery of the false statement, immediate cancellation of the ARR-MAP will occur which will be in addition to any criminal penalty imposed by law. Dated: Signature of Applicant(s) Dated: Signature of Applicant(s) P:\FonnslMortg.ge AssistancelMAP-Applic.tion Affid.vit.doc CDe 1999-19 FIRST TIME HOME BUYER MORTGAGE ASSISTANCE PROGRAM DISCLOSURE STATEMENT I/We (Participant) understand and agree that the provision offmancial assistance from the Redevelopment Agency of the City of San Bernardino (the "Agency") under the First Time Home Buyer Mortgage Assistance Program (the "Program") is conditioned on a number offactors, including, but not limited to (all terms not otherwise defined herein shall have the meaning provided in the Loan Agreement by and between the Agency and the Participant): . IIWe must fmd a single-family detached home within the City of San Bernardino which I/We can afford (the "Property"). . I/We must qualify for a home loan from an institutional lender acceptable to the Agency. . I1We must qualify for assistance under the guidelines of the Program. . I/We must not have owned any interest in any residential real property during the past three (3) years. I/We further understand and agree that: IIWe will be responsible for repaying the amount of the Note. The Note will be due and payable upon: (i) the sale of the Property, (ii) the transfer of any interest in the Property, (iii) refinancing of any lien or encumbrance to which the Agency Deed of Trust is subordinate, or (iv) I/We are no longer an occupant of the Property or are in default of any obligation under the Loan Agreement. . I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the Agreement is signed by sending a notice of my/our decision to rescind or cancel the Agency Loan to: Redevelopment Agency of the City of San Bernardino Housing Division 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 Attn: Housing Division Manager . An appraisal fee may be payable upon the following: (i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) I/We no longer occupy the Property, or (iv) I/We are/am in default of any provision of the Loan Agreement. . The Agency shall not be held responsible for any costs associated with the home I/We 1 \\EDA _SAN BERDOIPUBLlClFollllslMortgage Assislance\2-MAP-DlSCLOSURE.doc CDC 1999-19 purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of the Property. . The Agency cannot ensure that information provided by or on my/our behalf will be confidential. . The Agency shall not be responsible for the selection of a home, the selection of a lender providing funds assisting in the purchase of the home, provide information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. JJW e assume all responsibility for determining whether I/We will inform myself/ourselves as to the availability and terms of other public or private loans. . The Agency shall not be charged with the knowledge of the contents of the ocuments of the lender. DATED 19 DATED 19 DATED 19 2 \IEnA _SAN BERDOIPUBLlCIFonnsIMortgage Assistance\2-MAP-DISCLOSURE.doc CDC 1999-19 '6 of 8 ACQUISITION, REHABILITATION RESALE (ARR) AGREEMENT By and Between REDEVELOPMENT AGENCY OF TIffi CITY OF SAN BERNARDINO And ACQmsh}~~~lE~l~iHif~(ARR) ("ARR Participant") CDe 1999-19 TABLE OF CONTENTS I. [100] SUBJECT OF AGREEMENT .................................................................................. 2 A. [101] Purpose of Agreement......................................................................................... 2 B. [102] The HUD Units ................................................................................................... 3 C. [103] Parties to the Agreement ..................................................................................... 3 1. [104] The Agency ................................................................................................... 3 2. [105] The Participant .............................................................................................. 3 3. [106] Prohibition Against Change in Ownership, Management and Control of the Participant............................................................................................................... 4 4. [107] Benefits of Project ......................................................................................... 4 II. [200] AGENCY ASSISTANCE ......................................................................................... 4 A. [201] The Project .......................................................................................................... 4 B. [202] Agency Assistance .............................................................................................. 5 C. [203] Term of Agreement ............................................................................................. 5 D. [204] Participant Assistance ......................................................................................... 5 E. [205] HUD Escrow ....................................................................................................... 7 F. [206] Affordable Housing Cost .................................................................................... 7 III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS .................................. 7 A. [301] Rehabilitation by Participant............................................................................... 7 1. [302] Cost of Rehabilitation............................................................... .....................8 2. [303] Bodily Injury and Property Damage Insurance............................................. 8 3. [304] Rights of Access............................................................................................ 9 4. [305] Local, State and Federal Laws ...................................................................... 9 5. [306] Anti-Discrimination During Rehabilitation .................................................. 9 B. [307] Taxes, Assessments, Encumbrances and Liens................................................... 9 C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit............................... 9 CDe 1999-19 D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders.................... 10 [310] No Encwnbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation.................................................................................................... 10 E. [311] Right of Agency to Satisfy Other Liens on the Project..................................... 10 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS ......... 11 A. [401] Uses - Covenants Running with the Land......................................................... 11 B. [402] Maintenance of the HUD Units......................................................................... 11 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation............................................................................. 13 V. [500] GENERAL PROVISIONS...................................................................................... 13 1. [501] Termination and Breach .................................................................................... 13 2. [502] Notice ................................................................................................................ 14 3. [503] Conflicts ofInterest; Nonliability ..................................................................... 14 4. [504] Inspection of Books, Records and Reports ....................................................... 14 5. [505] Indemnification ................................................................................................ 15 VI. [600] SPECIAL PROVISIONS ........................................................................................15 1. [601] Submission of Docwnents to Agency for Approval......................................... 15 2. [602] Successors in Interest ........................................................................................ 15 VII. [700] ENTIRE AGREEMENT, WAIVERS ..................................................................... 15 VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCy........................... 16 [801] Time for Acceptance ............................................................................................... 16 EXHIBIT A - Map of ARR Zone EXHIBIT B - Current Household Income Listings For Qualified Homebuyers EXHIBIT C - ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant EXHIBIT D - HUD Escrow Docwnents (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Docwnents EXHIBIT E - ARR Rehabilitation Standards for Each HUD Unit EXHIBIT F - HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Docwnents CDe 1999-19 ACQUISITION. REHABILITATION. & RESALE (ARR) P ARTICIP ATION AGREEMENT THIS AGREEMENT(the "Agreement") this 21sT day of June, 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and Pacific Gold Coast Realtv (the "Participant"). Agency and Participant hereby agree as follows: RECITALS WHEREAS, Agency is a California Redevelopment Agency engaged in carrying out its public purposes, including, without limitation, increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City"); and WHEREAS, the U.S. Department of Housing & Urban Development (HUD) has designated that certain area within the City shown on the map attached hereto as Exhibit "A" as the Acquisition, Rehabilitation and Resale (ARR) Revitalization Zone (the "Zone"), and has granted the City exclusivity to purchase directly from HUD, certain single family dwelling units owned by HUD REO's (the "HUD Units") at a discount off the As Is Value of each such HUD Unit (the "ARR Program") which the Agency as administrator for the City under the ARR Program, shall concurrently transfer title to the HUD Unit to the Participant for rehabilitation and resale pursuant to the terms and conditions of this Agreement; and WHEREAS, the Agency has also been designated by the Mayor and Common Council as the administrator of the HOME Program (the National Affordable Housing Act of 1990) on behalf of the City, with specific intent to expand the supply of decent, safe, sanitary and affordable housing, within a City's jurisdiction; and WHEREAS, the Agency may use either federal HOME Program funds or State Redevelopment low and moderate income funds to financially assist qualified first-time homebuyers (herein "Qualified Homebuyer") in the acquisition of HUD Units purchased directly from the Participant; provided however that the value of the HUD Unit to be acquired by a Qualified Homebuyer for which the Agency may provide purchase money mortgage assistance under either the HOME Program or under the other affordable housing assistance programs of the Agency (herein "MAP Program") must have a value that does not exceed 95% of the area median purchase price; and WHEREAS, with respect to the HUD Units, Agency desires to implement the ARR Program pursuant to which: a. Agency would buy one or more HUD Units directly from HUD on condition that the Participant purchases each such HUD Unit from the Agency at the discounted price which HUD offers to the Agency; and 1 CDC 1999-19 b. The Participant shall promptly rehabilitate the HUD Unit in accordance with rehabilitation standards set forth herein, and thereupon sell the HUD Unit, to an eligible low or moderate income buyer (e.g., a Qualified Homebuyer) at affordable housing costs pursuant to State or Federal requirements, depending on the source of funding (i.e., if Qualified Homebuyer uses HOME funds their income shall not exceed 80% of median income and State Redevelopment Low/Moderate Income Funds shall not exceed 120% of median income); and c. Prior to purchasing a HUD Unit from Agency, Participant shall provide satisfactory evidence to the Agency of all financing which shall include all costs associated with the acquisition, rehabilitation and disposition of the HUD Unit by the Participant. Based on receipt of such evidence of financing, the Agency shall accept or reject any offer received from the Participant to acquire a HUD Unit. The Participant shall complete the steps noted in Exhibit "C", attached hereto and incorporated herein by reference with respect to its acquisition and disposition of each HUD Unit to a Qualified Homebuyer; and d. If the Agency accepts any offer from Participant to purchase a HUD Unit, the Agency and Participant will open escrows (the "HUD Escrow") which shall close concurrently such that the escrow by which HUD shall transfer a HUD Unit to the Agency shall close concurrently with the escrow through which the Agency shall transfer that HUD Unit to the Participant; and e. Promptly after the closing of the HUD Escrow, the Participant will rehabilitate the HUD Unit within the timeframe herein, and sell it at affordable costs (the "Affordable Housing Costs") to a person or family of low or moderate income for owner occupancy purposes at the close of an escrow by and between the Participant and the Qualified Homebuyer (the "New Home Escrow"). The maximum income criteria applicable to a Qualified Homebuyer will be based on the type of fmancial assistance, if any, which the Agency provides to the respective Qualified Homebuyer at the close of a New Home Escrow (i.e., State Redevelopment Low/Moderate Income Funds up to 120% of median income or HOME Funds up to 80% of median income). The current 1999 Income Limits are noted in Exhibit "B". WHEREAS, Participant is a well established housing provider that has the experience, qualifications and desires to participate in the above described ARR Program. NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, Agency and Participant agree as follows: 1. [100] SUBJECT OF AGREEMENT A. [101] PUlJ'ose of Agreement The purpose of this Agreement is to effectuate various redevelopment plans for the City of San Bernardino (the "City"), by providing for Agency assistance to Participant in connection with 2 CDC 1999-19 the acquisition, rehabilitation and disposition of the HUD Units hereinafter set forth. The acquisition, rehabilitation and resale of the HOD Units pursuant to this Agreement is in the vital and best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting on behalf of the Agency, has determined that the acquisition, rehabilitation, resale and uses contemplated by this Agreement will benefit the low-and moderate- income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Program and the goals and objectives of the affordable housing programs of the Agency. B. [102] The HOD Units Each HOD Unit shall be located within the Zone and shall be designated from time to time by the Agency. Each of the HOD Units shall be pre-approved by the Agency and identified on a list in writing, as available for transfer to the Participant subject to the terms of this Agreement. No HUD Unit shall be transferred to the Participant unless the Participant has submitted a timely and complete acceptance to purchase such HOD Unit to the Agency, as set forth herein. It is the express intent of the parties hereto that the Participant will attempt to acquire those HOD Units within the Zone which evidence the highest degrees of blight, are most in need of redevelopment, and are financially feasible. The Agency's purchase approval of each HOD Unit will be based upon compliance with this intent. C. [103] Parties to the Agreement 1. [104] The Agencv The Agency is a public body, corporate and politic, exerclsmg governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et sea.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [105] The Participant The Participant is licensed to do business in the State of California. The principal office and mailing address of the Participant for purposes of this Agreement is: 3 CDC 1999-19 3. [106] Prohibition Against Change in Ownership. Management and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure for the benefit of the Agency. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 106 shall terminate with respect to each HUD Unit at the close of the New Home Escrow for that particular HUD Unit. Nothing in this Section 106 shall act to restrict the sale of rehabilitated HUD Units to Qualified Homebuyers if such sale is otherwise in compliance with the terms of this Agreement. 4. [107] Benefits ofProiect The Agency has determined that the purchase, rehabilitation and sale of HUD Units in accordance with this Agreement will eliminate blight, provide needed low- and moderate-income housing to the various project areas of the Agency, as well as the City and also increase homeownership opportunities for low- to moderate income households thereby stabilizing the community and decreasing rental housing in the City. II. [200] AGENCY ASSISTANCE A. [201] The Proiect The Agency agrees that with regard to any HUD Unit that it has approved in writing, and which the Participant has agreed to purchase as evidenced by the completed form of a "HUD Unit Purchase Agreement" in the form included in Exhibit "D", that the Agency shall, subject to the terms and conditions of this Agreement, acquire the HUD Unit from HUD and shall thereafter immediately transfer title to the Participant through the HUD Escrow. 4 CDC 1999-19 The Project, and specifically the Agency's obligation to acquire any HUD Unit, shall only arise to the extent funds are available from the Participant (or the "Participant's Lender" as hereinafter defined), to provide for the acquisition, rehabilitation and resale of the HUD Unit by the Participant at the close of the HUD Escrow. Moreover, the Agency shall only offer to transfer HUD Units to the Participant to the extent that the Agency, in its sole discretion, deems that the purchase price, associated rehabilitation and disposition costs are fair, equitable, comparable and that the Participant has funds sufficient to close the HUD Escrow and thereafter to complete the rehabilitation of the HUD Unit. B. [202] Agencv Assistance In order to assist in the implementation of the Project and marketability of the Project, the Agency agrees to provide certain Agency assistance (the "Agency Assistance") as follows: (i) provide for the concurrent transfer of each HUD Unit which the Participant may agree to acquire as evidenced by a completed HUD Unit Purchase Agreement; provided however that purchase price for each HUD Unit and all escrow costs in connection with the HUD Escrow for that particular HUD Unit shall be payable solely by the Participant; and (ii) in addition to acquiring and thereafter immediately transferring title to any given HUD Unit to the Participant, the Agency may provide on a first come-first served basis to any Qualified Homebuyer certain down payment and closing costs, not to exceed ten percent (10%) of the Participant's sales price of the HUD Unit being sold, from either available funds of the Agency under the HOME Program or the Agency MAP Program, as applicable. C. [203] Term of Agreement The term of the Agreement shall be one (1) year from the date of this Agreement and ending June 30, 2000, except as set forth in Section 501. The Executive Director of the Agency (the "Director") shall have the option to renew this Agreement for an additional one (1) year period provided Participant is in compliance with the provisions of this Agreement. D. [204] Particioant Assistance The Participant will select HUD Units based upon a list of available HUD Units prepared from time to time by the Agency. The Participant shall be solely responsible for obtaining all information in connection with the proposed acquisition and rehabilitation of each HUD Unit. Participant will take all action necessary to ensure the availability of funding for the acquisition, rehabilitation and resale of each HUD Unit prior to submitting any offer to purchase to the Agency and shall provide evidence to the Agency of such financing at the time it delivers a completed HUD Unit Purchase Agreement to the Agency (see Exhibit "D"). Participant will be responsible for the preparation and submission of all necessary paperwork required in connection with the acquisition of each HUD Unit (Le., all of the HUD Escrow documents as assembled in Exhibit "D") and all other necessary documentation required for the close of escrow for any HUD Unit to be purchased by Participant from the Agency. Participant shall have not more than seven (7) days from receipt of the HUD listing from the Agency to select any HUD Unit for purchase and return 5 CDe 1999-19 the HUD Unit Purchase Agreement for such HUD Unit to the Agency as executed by the Participant. The Participant shall cause each HUD Escrow to be closed within forty-five (45) days from the date of execution of the HUD Unit Purchase Agreement and the other HUD Escrow documents by the Participant. No extension of time for the close of a HUD Escrow will be granted by the Agency and if a HUD Escrow does not close within the forty-five (45) day period after the HUD Unit Purchase Agreement has been fully executed for any reason not attributed to the fault or delay ofHUD or the Agency, then in such event this Agreement will be subject to termination. The Participant agrees that upon its acquisition of each HUD Unit from by the Agency, the Participant shall promptly commence and thereafter diligently complete the rehabilitation of the HUD Unit. Unless a longer period of time is approved by the Agency in its sole discretion at the time of the submission of the Participant acceptance of an offer to purchase a HUD Unit, the Participant shall complete the work of rehabilitation of each such HUD Unit within ninety (90) days following the close of the HUD Escrow. (i) Scope of Rehabilitation - The Participant shall rehabilitate all HUD Units acquired from the Agency in accordance with the ARR Rehabilitation Standards noted in Exhibit "E". Furthermore, the Participant shall prepare a Scope of Rehabilitation for each HUD Unit setting forth in detail the work that Participant agrees to perform on each HUD Unit purchased by Participant. The Scope of Rehabilitation shall be submitted by the Participant to the Agency concurrently with the executed HUD Unit Purchase Agreement and related HUD Escrow documents. (ii) HOME Program or Agencv MAP Program Assistance to Oualified Homebuver - All HUD Units acquired and rehabilitated under the ARR Program, wherein the Qualified Homebuyer has applied for either HOME Program or Agency MAP Program assistance, will be reserved for sale to and occupancy by low- and moderate-income households, to be sold at affordable housing cost as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, or Part 92 HOME Investment Partnerships Subpart 7. (92.206), which requires that the value of the HOME assisted property to be acquired by the Qualified Homebuyer must have a value that does not exceed 95% of the area median purchase price of the HUD Unit, whichever funding source is used for the Participant's Qualified Homebuyer. (iii) Disposition of HUD Units and Oualified Homebuver Eligibility - The Participant will cause the marketing of each HUD Unit to prospective purchasers. Participant will screen prospective purchasers for eligibility in accordance with this Agreement, specifically to insure that Buyer meets the applicable HOME Program and/or Agency MAP Program Income Guidelines in accordance with Exhibit "B". Participant shall cause the opening of a New Home Escrow with prospective purchasers and will take all steps necessary to ensure each New Home Escrow is closed within forty-five (45) days from the date of its opening. At the close of the New Home Escrow, the ARR Covenant shall be fully executed and filed for recordation. The form of the ARR Covenant is included in Exhibit "D". 6 CDC 1999-19 E. [205] HUD Escrow The Participant is under no obligation to purchase any HOD Unit from the Agency and the Agency is under no obligation to transfer any HOD Unit to the Participant unless the Participant has fIrst completed a HOD Unit Purchase Agreement for the particular HOD Unit as identifIed on a list of HOD Units as submitted by the Agency to the Participant. The parties will open simultaneous escrows (e.g., the HOD Escrow) to provide the acquisition by the Agency of each specifIc HOD Unit which the Participant has agreed to purchase from the Agency. The parties shall execute the escrow instructions and documents as set forth in Exhibit "D" as may be necessary to accomplish the foregoing. F. [206] Affordable Housing Cost For the purposes of complying with this Agreement, all HUD Units shall be sold to low- and moderate-income households (e.g., QualifIed Homebuyers) at affordable housing costs as such term is defIned in Health and Safety Code Section 50052.5, or Section 8, (24 CFR 813), whichever is applicable to the QualifIed Homebuyer's HOME Program or Agency MAP Program assistance, if any. The Participant agrees to be bound by all limitations for QualifIed Homebuyers as set forth and in each Agency Quitclaim Deed for a HUD Unit. The form of the Agency Quitclaim Deed is included in Exhibit "D". The Participant shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency by a date no later than forty-fIve (45) days following the opening of the New Home Escrow, including but not limited to the HOME Program or Agency MAP Program Checklist, VerifIcation for Applicant Eligibility, First-Time Homebuyer Disclosure Statement, Application Affidavit as applicable under the HOME Program or the Agency MAP Program as included in Exhibit "F". III. [300] REHABlLITATION/DlSPOSITION OF THE HOD UNITS A. [301] Rehabilitation bv Participant Participant and Agency agree that the central purpose of this Agreement it to provide for quality rehabilitation of each HOD Unit purchased from the Agency in a manner consistent with the terms and standards of this Agreement. Each HUD Unit acquired by the Participant shall be rehabilitated in accordance with the rehabilitation standards noted in Exhibit "E", attached hereto and incorporated herein. With respect to each HUD Unit, the Agency shall approve in writing all specifIcations, and plans, if any, including but not limited to landscaping plans, designs, and specifIcations of each HOD Unit to be rehabilitated as well as the proposed Marketing Plan for each HUD Unit prior to the commitment of the Agency to acquire any HUD Unit pursuant to a HOD Unit Purchase Agreement. Such approval of the Agency shall be evidenced by the Director in hislher reasonable discretion as consistent with the goals and objectives of the ARR Program, or hislher designee. 7 CDC 1999-19 1. [302] Cost of Rehabilitation The cost of undertaking the Project, including the costs of acquisition, rehabilitation, marketing and sales of each HUD Unit shall be borne solely by Participant. The Agency shall have no obligation to pay for any cost of the Project. The Participant acknowledges and agrees that the profit, if any, to be made by Participant from the disposition of each HUD Unit to a Qualified Homebuyer shall be limited to no more than fifteen percent (15%) of the gross sales price at the time resale of each such HUD Unit after rehabilitation to a Qualified Homebuyer. 2. [303] Bodilv Iniury and Property Damage Insurance Participant shall indemnify defend and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency as additional insureds for claims for damages arising from the Project. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on any HUD Unit or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 8 CDC 1999-19 3. [304] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City as designated by the Director shall have the right of access to each HUD Unit, without charge or fee, at normal construction hours during the period of work for the purposes of the inspection of the work being performed in constructing the rehabilitation on the HUD Unit. The Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 304 resulting from the gross negligence or willful misconduct of the City or Agency while on the HUD Unit. This Section 304 shall not be deemed to diminish or limit any right which the City or Agency may have by operation of law irrespective of the Agreement. Nothing in this Section 304 shall be deemed to make either the City or the Agency a guarantor of the work of rehabilitation or improvement of any HUD Unit. 4. [305] Local. State and Federal Laws Participant shall carry out the Project and all related activities on any HUD Unit in conformity with all applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. 5. [306] Anti-Discrimination During Rehabilitation Participant, for itself and successors and assigns, agrees that in the rehabilitation of the HUD Unit provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [307] Taxes. Assessments. Encumbrances and Liens Prior to the issuance of a Certificate of Occupancy for any HUD Unit, Participant shall not place or allow to be placed on such HUD Unit any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on a HUD Unit, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to a Qualified Homebuyer. C. [308] Prohibition Against Transfer of the HOD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HOD Unit 1. Prior to the recordation of a Certificate of Completion by the Participant for a HUD Unit, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of any HUD Unit. This prohibition shall not be deemed to prevent a transfer of a 9 CDC 1999-19 HOD Unit to a Qualified Homebuyer or the granting of temporary or permanent easements or permits to facilitate the rehabilitation of the Project. 2. Upon obtaining a Certificate of Occupancy from the City for a completed rehabilitation of a HOD Unit, the Participant shall sell such HUD Unit to a Qualified Homebuyer in accordance with and subject to the restrictions set forth in this Agreement. 3. The deed or other instrument of transfer by the Participant to any purchasers of the HUD Unit shall require that the unit be owner occupied by persons living in the units as their principal residences and shall further require that such unit shall remain available at affordable housing costs to the families of low- and moderate-income for a period of not less than ten (10) years subject to any other exceptions as may be provided by the Agency. 4. The Participant may not rent or lease any HOD Unit to a third party and during the time that the Participant may hold title to a HUD Unit, no person may use the HUD Unit for any residential dwelling purpose. D. [309] Mortgage. Deed of Trust. Sale and Financing: Rights of Holders [310] No Encumbrances Except Mortgages. Deeds of Trust or Sale for Rehabilitation Mortgages, deeds of trust other encumbrances of each HUD Unit are to be permitted before completion of the rehabilitation of a HUD Unit but only for the purpose of securing loans of funds to be used by the Participant for financing the acquisition or rehabilitation of improvements on the HOD Unit. Participant shall not enter into any other conveyance or lien for fmancing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar lending institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 310, executed by the Director. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. E. [311 ] Right of Agencv to Satisfy Other Liens on the Proi ect Prior to the completion of the rehabilitation on any given HOD Unit, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on a HUD Unit which are not otherwise permitted under this Agreement, Agency shall have the right, but not the obligation, to satisfy any such lien or encumbrance. 10 CDC 1999-19 IV. [400] USES OF PROJECT OR HOD UNIT; AFFORDABILITY COVENANTS A. [401] Uses - Covenants Running with the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to any HOD Unit, that for the period of time set forth in the Agency Quitclaim Deed, each of the HOD Units acquired by Participant shall be devoted to and available for sale solely to persons or families with an income which are very low, low and moderate, as those terms are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "C", or 24 CFR 813 whichever funding source is applicable to the Participant's prospective Qualified Homebuyer for the HOD Unit. The Participant further covenants and warrants that Participant shall undertake the rehabilitation on the HOD Units in accordance with the standards set forth in this Agreement. Participant covenants to obtain all necessary permits and rehabilitate each HOD Unit in conformity with all applicable laws. Failure to obtain all necessary permits shall be a default under this Agreement. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any HUD Unit, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any of the HOD Units. The foregoing covenants shall run with the land. These covenants shall be expressly incorporated in the Quitclaim Deed from the Agency to the Participant. B. [402] Maintenance of the HOD Units Maintenance Condition of Each HOD Unit. Between the date of the close of each HUD Escrow and the date of the close of the New Home Escrow for each such HOD Unit the Participant for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of each HOD Unit which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of close of a HOD Escrow, there is an occurrence of an adverse condition on any area of a HUD Unit which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as 11 CDC 1999-19 identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Participant has failed to comply with the provision of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the HUD Unit and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HUD Unit authorized by this Section shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in Subsection(c), below. (b) Graffiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or improvement on a HUD Unit which is visible from any public right-of-way adjacent or contiguous to the HUD Unit, shall be removed by the Participant by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HUD Unit and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HUD Unit authorized by this Subsection(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection( c ),below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HUD Unit, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably necessary to restore the HUD Unit to the maintenance standard required under Subsection(a) or Subsection(b), including attorneys fees and costs of the Office of Agency Counsel (including salaries and wages of the legal staff and pursuant of this Office of Agency Counsel) as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section, shall be a covenant running with the land, and each HUD Unit, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section shall be deemed to preclude the Participant from making any alteration, addition, or other change to any structure or improvement or landscaping on the HUD Unit, provided that such changes comply with applicable zoning and building regulations of the City. 12 CDe 1999-19 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement with respect to each Participant HUD Unit shall remain in effect for the term as set forth in the Agency Quitclaim Deed. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PROVISIONS 1. [501] Termination and Breach (a) Termination Without Default or Breach. This Agreement may be terminated for the convenience of by either party who is not then in default upon thirty (30) days notice to the other party; provided however, that for any HUD Unit for which a HUD Escrow is then open, such HUD Escrow transaction shall be closed and the HUD Unit shall thereafter be rehabilitated and offered for resale to a Qualified Homebuyer as set forth in this Agreement. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or 13 CDe 1999-19 more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary . 2. [502] Notice Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party under this Agreement shall be in writing and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as follows: Participant: Alan Lee Pacific Gold Coast Realty 556 North Diamond Bar Boulevard, Suite 109 Diamond Bar, California 91765 Agency: Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 92401 3. [503] Conflicts ofInterest: Nonliabilitv No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participate, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. 4. [504] Inspection of Books. Records and Reoorts Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to any HUD Unit as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to any HUD Unit as pertinent to the purposes of the Agreement. 14 CDC 1999-19 The Participant shall provide quarterly reports to the Agency regarding all HUD units acquired and sold under this Agreement. 5. [505] Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the Agency's and the City's members, officials, employees and agents from and against any and all claims or liability arising from Participant's actions under this Agreement or from the conduct of Participant's business or from any activity, work or things done, permitted or suffered by Participant and shall further indemnify and hold harmless the Agency and City and their officers, employees and agents from and against any and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this Agreement arising from any negligent or wrongful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to enviromnental conditions, that may arise as a result of the Agency's acquisition and/or ownership of any HUD Unit that is the subject of the Agreement. VI. [600] SPECIAL PROVISIONS 1. [601] Submission of Documents to Al!:ency for Approval Whenever this Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 2. [602] Successors in Interest The terms, covenants, conditions and restriction of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. VII. [700] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Exhibit "A" through Exhibit "F", which together with this Agreement constitute the entire understanding and agreement of the parties. 15 CDe 1999-19 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city statues, or it is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this agreement shall not be affected thereby. All waivers of the provisions of this Agreement must be in writing by the Director of the Agency or the Participant, and all amendments thereto must be in writing by the Director of the Agency or the Participant, except that the Director may only agree to non-substantive changes hereto with concurrence by Agency Special Counsel. Substantial changes to this Agreement shall require the prior approval of the governing body of the Agency. Each individual signing below represents and warrants that he or she has the authority to execute this Agreement on behalf of and bind the party helshe purports to represent. VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [801] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Director as evidenced by the date first above shown. IIII IIII IIII IIII IIII IIII 16 CDC 1999-19 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. By: "AGENCY" Alan Lee By: Title: By: \~ Managing Director Paul Lee Title: By: Title: 17 CDC 1999-19 EXHIBIT "A" 1999 ARR AGREEMENT "Map of ARR Zone" 1999-19 DWdQ '~\Y IlO1001 .2;- U c:: -5 == as E! ~ E ~ :::i E ?:- ~ o 0 !! ~ .?: U E! C - -5 E -~ en E ax L. 0> o 0:: a. <{ ~ ad II: a: < Illlll ~1\Yi~lV nn Uu I!~\ -\ .m.1I ~J: 1l t-"' a:~ og Zg- ::0; #- ~'\.,'. ~,\~ ~ ~ ----li7 ~ <f/ ~ 111 ~ ~ - UJ E m WI- (1)0) g c E -00. ~No. cC<( 0;0-=::= m;:C:= CClS"O CO .!::! c cn-CIS _CIS 0:::0: >.>0: ~(I)< 00::_ ./ CDC 1999-19 EXHIBIT "B" 1999 ARR AGREEMENT "Current Household Income Listings for Qualified Homebuyers" CDe 1999-19 EXHIBIT "B" 1999 Income Limits Income HOUSEHOLD SIZE Level I 2 3 4 5 6 7 8 Very Low $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 (50%) Lower" $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 (80%) Median $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 (100%) Moderate" $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 (120%) * If Participant's Buyer is using HOME Federal Funds the Maximum Annual Income a family can earn is 80% of median income according to household size. ** If Participant's Buyer is using State Low/Moderate Income Housing Funds the maximum annual income a family can earn is 120% of median income according to household size. P:lFonns\A.RR. ProgramlARR ItICfJlM Umi/$.doc CDe 1999-19 EXHIBIT "C" 1999 ARR AGREEMENT "ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant" CDe 1999-19 ECONOMIC DEVELOPMENT AGENCY CITY OF SAN BERNARDINO "Acquisition Check List" o COPY OF HUD SALES CONTRACT (Land Use & Part A-D) o REQUEST FOR PROPERTY INSPECTION ANALYSIS FORM To be executed and returned to EDA five (5) days from the date of list of properties is provided to participant D COpy OF ESCROW INSTRUCTIONS (HUD TO EDA) D COPY OF ESCROW INSTRUCTIONS (EDA TO PARTICIPANT) D PARTICIPANT CONSTRUCTION/REHABILITATION WORK WRITE UP TO EDA INSPECTOR D PRELIMINARY TITLE REPORT D (2) SETS OF ESCROW INSTRUCTIONS TO SIGN AND RETURN EXHIBIT "1" \\EIloUAN 1lERllO\PUBlIC\l'<><m5\^AA ...."m\^AA__doc _7/99 3 CDC 1999-19 Economic Development Agency City of San Bernardino ACQUISIliON, REHABILITATION & RESALE PROGRAM (ARR) ARR PROCESS A. Exclusive Sales 1. EDA will receive weekly (Thursday evening) an exclusive list from HUD of units available within the Revitalization Zone. 2. EDA will distribute exclusive list to Participant no later than Friday A.M., following receipt of Thursday's list. 3. EDA has seven (7) days from receipt of list in which to express interest in any property. Thus, Participant will notify EDA within five (5) days (Tuesday, 5:00 p.m.) of receipt of list from EDA interest in property. 4. On fifth day, Participant will submit to EDA: (1) Request for Property & Inspection Analysis form. (2) HUD Sales Contract and attachments for signature by EDA staff. S. EDA will notify Participant by 7th day (Thursday, noon), when documents are ready for pick-up. B. Direct Sales 1. Tuesday evenings HUD list properties on the Internet (Direct Sales Internet Lottery Process) 2~EDA approved Participants must express interest to purchase properties by 3PM Friday (3 days after HUD's posting of Direct Sales List). . Participant must perform due diligence of properties (completed property and inspection form). 3. Participant must retain HUD lottery number/confirmation number of transmission. HUD will select winner by Wednesday evening (1 week after posting Direct Sales List). 4. List of winner will be posted Wednesday evening. Participant should check this list promptly to verify whether they are the winner of the property. 1 CDC 1999-19 5. Upon verification of HUD winning lottery number, Participant will have until end of business day on Friday (2 days after HUD posts winners) to deliver a complete sales package to EDA include: - HUD Sales Contract (Original) (Include HUD Addendum A-D - HUD Land Use Restriction Addendum - Request for Property Inspection Analysis Form 6. EDA will review and execute sales package by 12:00 p.m., Monday. Participant to pick up Monday and overnight complete executed sales package to: Golden Feather, C/O Tammy Massone, 225 East Airport Drive, Suite 100, San Bernardino, California 92408, (909) 890-2370, (909) 890-3831 FAX. 7. Close of Escrow - HUD executes. contracts and opens escrow at Arrowhead Escrow, 935 South Mt. Vernon, Suite 106, Colton, California 92324. (45 day maximum for closing) C. General Notes 1. Important - EDA purchases property under the name of "The Redeveloment Agency of the City of San Bernardino, a public body, corporate and politic./f Therefore, all HUD contracts and documents must reflect this entity. 2. EDA's purchase is funded by Participants private lender or other funding sources with a concurrent escrow to close from EDA to the Contractor. (EDA does not provide a1JY funding for HUD purchases or rehabilitation). , 3: . After close. of escrow from EDA to ARR Participant, Contractor performs rehabilitation on house per the original construction work write-up and markets property for sale. Contractor is responsible for obtaining permits with building and safety for all repairs to the house. 4. EDA Inspector performs a final inspection of the property (after rehabilitation in accordance with "Contractor Construction Work Write-up'') to insure all work is completed as per these specifications. S. Assuming the buyer has been qualified and pre-approved for the Mortgage Assistance Program (MAP), by the primary lender and EDA, and a final inspection has been performed by EDA Inspector, EDA will issue a check and fund the MAP for the buyer. P:\Forms\ARR Program\ARR Process.doc (Revised 7/99) 2 CDC 1999-19 EXHIBIT "2" Economic Development Agency City of San Bernardino "Request for Property and Inspection Analysis Form" (to be submitted by Participant to EDA with HUD Sales Contract and Attachments) ';f-",' Date Submitted to EDA: ARR Contractor: Contact: Phone Number: -lnfClrmatiClii'i;Y~-'j,: ' HUD Case #: Status: 0 Uninsured 0 Insured Check Approximate Location in Revitalization Zone (See Map - Exhibit "AI, Property Address: aty/Zip: HUD SALES PRICE ELECTRONIC BID PRICE (IF APPUCABLE) HUD DISCOUNT PRICE REHABILITATION COSTS (L & M) PARTICIPANTS OVERHEAD TOTAL PROJECT COSTS ARR SALES PRICE ARR PARTICIPANT PROm Estimated CostS $ $ $ $ $ $ $ $ Total Sq. Ft. Actual Costs Bedrooms: Bath(s): $ $ $ $ $ $ $ $ % Profit (Maximum profit Is 15% of Total Project Costs) Amount of Loan for Property (Acquisition & Rehabilitation Loan) ARR Participant Lender: Address: Phone Number: , ;BUYERINFORMATlON'i Buyer(s) Name: Family Size: MAP Loan: (Not to exceed 10% of Purchase Price) $ Oosing Date Lender Name/Contact Lender Address: Lender Phone: Annual Gross Income: Buyer's Contribution: (Minimum of $500) $ Partidpant Contribution: Oty: Lender Fax: Please check Appropriate Categories: Sr. Otizen(S) 62 Or Older 0 Female Head of Household 0 Hispanic 0 White 0 Asian or Padfic Islander 0 Disabled Family Member 0 American Indian 0 Black 0 I OFACE USE ONLY: % of Median = ARR Participant Signature EDA Representative Signature Date EDA Review Contract/Inspection Form/Date EDNPre-Acquisition Inspection Signature/Date EDNPost-Acquisition Inspection Signature/Date \\EOIJAN IfOOO\PUIlUC\,Fonns\AAA _mI'AA __ <_71'l9l 4 CDe 1999-19 EXHIBIT "D" 1999 ARR AGREEMENT HUD Escrow Documents: (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents CDe 1999-19 LS.DEPT. OF 1I0l'SI:\C & URBAi\ DE\TLOP\lE:\T Addendum A (RE\' 4 1(9) .........FORFEITURE ,.\\0 EXTENSION POLiCy......... All 111:1> Prc'perl\ I)hPOSltlOIl saks of 1II'[}'J,"llllCed J'I"i'ellle, Jre to close \\1111111 45 dJ\., of J(,C'pul1(e cd' J IIl'[}.l)'-lS (I 99) Sal<:, COlltra,1 ofkr to purehase Forfeiture of tarne't :\Iolley DeposilS. The faalure by a PurchaSer to close on the SJ\<: of pWl'c'It:- \\ 1IIIIIllhe allo\\ab\<: IlIne periOd. 11l(lucLI1~ allY e\lc'IlSIOIlS grJllted by IIliD. \\ III re>uh III the lorf<:lIure of Ihe eallle,t mOllc'> c:<'I""11. C'\(c'pt \\ here the purchaSer presellt; .!Odllllelltallllll to 111'1) IllJI ,)11c' of the spe<:lal CIrcumstanCeS deSCribed In p:HagrJphs (JI allcl(b) bdo\\ ofullS se<:tlOII hJS occurred (a) 11I"estor Purchasers (I) The failure by an Investor Purchaser to close 011 all Ulllnsured sale wall result III forfelllHe of the erlltre earnest money depOSit U I Fifty percent of the earnest money depOSII 011 In Ulsured sale will be returned to an Investor Purchaser where IlUD (or a Direct Endorsement lender uSing Ill:[) gUlde!tIlCSI determllles that the Purchaser IS nc)( all acceptable borro\\er (bl (1) Owner.Occupant Purchasers The entire earnest money depOSit wdl he retllr;~c'd 10 an OWller.occupant PurchaSer Wllll fads to close where, Slllce the contract of sale \\as Signed (I) 1 here has beel1 a death III the InUnedlJte f:trn:i'. IClllltrJCI holder, spouse, or ehddrellll\ Illg 1I11he sallle hl1usdlol.!1. (II) !llt're hJS b<:<:1l a recellt sellOUS dIne,S IClthe ICmllc'dlJle fallllly thaI has resulted III slglllft(alllllledkal e\pellSeS UI sub,l.llltlalloss of Income, thus a,h n\<:l, aff",!'llg the purchaser's financial aballly to cl,"e lI1e sale (Ill) There has been a loss of Job hv on,' 'lithe I'r;;~ur'\ bro,h\ IImers, or subslantlJlloss uf lI""lllc' IhlC'l;gh lid fJuh 'If :he PurchJser, (1\) In the case of an Insured sa\<:. IIL:O (,'r a DlCect ['I1,luIscmenl lender uSlllg HUD gUlddllle-;) dc'tentune, thJt th~ Purchaser IS not anrcceptable borrow n. or I . 1\) tOT other g,)(id C3use, as delermlll~d b:, thc' fldd office (21 In the case of an umnsured loan where. d,:-;plte gOOlI f3uh efforts by the Purchaser, thele IS anlllablhty to obtalll a mortgage loan from a recognized mortgage len,kr. 50 percent of the earnest money depOSIt wdl be returned (31 On euher type of sale, forfeit 100 pc'r<:ent of Ihe dcposltlllthose instances where no documentat,ollls sub muted. whele thc documenlJl1on falls to prOVide an acceptal:>k calise for the Guyer's faIlure to close, or whcre documentatIon IS not pro\lded '\1thln a reasonable tllllC folt.l\\lng C:llll1l3Ct cancellal10n (e g, 30 days) Extensions. 1l1e Golden Feather Realty office w1l1 grant c'tenslons of I1me upon wntten re<jllest from purchaser E"tenslons of tHne to close the S;l1<: are enlady within the Seller's dlscretl\ll1 An e\:enS1l1n. If granted, Will be under (he fullowlllg <:ond'l1olls (J' :\ \\ntten re<juest for an e"tenSl\ll~ lIll"t he r,', ,'1\ ed In Golden Feather ReJlty no Iatc'r thJIl fl\'e da\s bcf'lle the \,heduk,\ deJdllne f,ll clOSIng Ih) The d,)(umcntatltln sub muted w Ilh the re<jue'tlllu't e,l:lbl1,h the calise of delJY 3nd thJt mortgJge JrprO' JI " H'"l1lnent durlllg thc extenSion penod (c I ..\n ntenSlon \\dl be for a perl\,d "f IlIken ,.Ilen.!,1l day' al a fee of S 375 00 I 20.~K . ,~O dJ". S 750 011) Fe" I (eItlfled funds) \\'1I11:>e depOSIted In eSdO\\ 1l11lIledlJ:':::- "p'ln approval Id, 1\len>I\'1I k~s shJII he relJ1l1ed h ~cl\<:1 11.1 ,';"slllg d,le-; lIot O<:CllI tel ..\t the 11111<: of <:t.lSlllg. unUSed ,'\I,'n"'111 kc" ,,\ 111 be prorated to the l'urc:h;l'<:I ,llId relun,kd by e>dU\\ (fl nl<: cr;llltll'~ of Olle extenSIon ,JUllll,'t "hL,:.Ill' thc' Seller to crallt addlllOllal,'\t<:lhIO'b. and the Sd\<:r shJII ,1e,IaIC;I I>cfJ~,lt for ~he PUI,h3SCI,' LIII1:!.: tol ,'1",,' ::~c' ,JIe Ur'lllthe e~plrJtllll1 of the (1rl~III:1I <:t.,,"'g PC'II"'\ or "p"n \'\1'".1111111 "I tht.'l',h..'lhlOI1 CDC 1999-19 Allowable Closing Costs. The following closing costs with a combined value of not more than 3% of line 3 of the 9548 (1/99) Sales Contract may be crc:dited to Line 5 of the Sales Contract Funds not consumed will be credited to the Seller. 1 % Loan Ollginalion Fee Credll Report Impounds Interest Hazard Insurance Lenders Co\'erage Polley Owners Co\'erage Polley Notary Taxes (Current tax year) HOA Dues (Current month plus one) AUT01>-IA TICALL Y PAID 13Y HCD (not Included online 3) Recordll1g Fees - Deed and \lortgage City/County Tax/Stamps Escrow Closing Fee Wife Transfer Fee to Washll1gton. D.C. HUD Case No. Property Address: CllY: Seller Disclosure. Seller makes no representations or warranties concerning the condition of the property, inc1udmg but not limited to mechanical systems, dry basement, foundation, structural. or compliance with code, zoning or building requirements and will make no repairs to the property after execution of this contract. Purchaser understands that regardless of whether the property is being fmanced with an fHA-insured mortgage. Seller does not guarantee or warrant that the property is free of visible or hidden structural defects, termite :dainage, lead-based paint, or any other condition that may render the property uninhabitable or otherwise unusable. Purchaser acknowledges responsibility for taking such action as it believes necessary to satisfy itself that the property is in a condition acceptable to it, of laws, regulations and ordinances affecting the property, and agrees to accept the property in the condition existing on the date of this contract Seller disclosure concerning HOA dues, Mello Roos taxes, assessments, or any tax concerning HUD homes is based on available information but not deemed complete or accurate. It is the responsibility of the 13uyer to obtain all information concerning these issues. \V:llk-Thru Inspection. All purchasers are strongly encouraged to perform a walk through inspectIOn PRIOR to the close of escrow. If a purchaser discovers a property condition that did not exist at the time of sale they must immediately notify HUD's property manager, Golden Feather Realty, of the damage. The buyer assumes full responsibility for the property and its condition on the date of close of escroW. The Department assumes no responsibility. and will make no settlement, for damages reported to HUD after the close of escrow. (See item:: 13.E of BUD Sales Contract) Buvcr Certification. - (we certify thatl.we have been mtervlewed. completed a loan application, verification of employments and obtained a full credit report from the lender tharhas prOVided the attached Letter of Commitment. Vwe understand thatl/we \\111 forfeit our earnest money deposlllf \\ e enter mlO tlus contract w nhout completing this qualification proce.ss Signatures (Purchaser) (Purchaser) (Purchaser) ( Purchasc'r) CDC 1999-19 LAND USE RESTRICTION ADDENDUM Thi~ Addendum is Incorporated by reference 10 the FHA Sales Contract for the properTy located at . .____, executed on this same day of , 199 between (Purchaser) and the Deparlmcnl of HOUSing and Urban Development (Seller). Unless an exceplion is grantcd In wrillng by the Seller' il The Purc"i1~cr IS opecled, at a minimum. to rtpair Ihe propeny according to loc<ll code, after which i[ shall reselllhe propeny only to a person who intends to occupy as his or her principal reSIdence and whosc income is al (II below 115 percenl of the median income in the area, when adjusted for family SIze, or a Slale, government enlity. rrihe, or agency thereof, or a provate nunprofit organiz.ation dS dcfined in 24 CFR 291.405. b. The purchaser shall nOI resell the propcny for an amount in cxcess of 110 percenl of the tiel development cost. Net development cOSt is the lotal cost of the project, including items such a~ acqUisition cost, arehlleelUral fees, permits Hnd survey expenses, insurance, rehabilitallon, and (axes. It does not include a developer's fee. Tota) costs incurred by Ihe Purchaser, including those for acquisition rU1llOcin~, management, rehabilitalion, and sclling expenses, are expeclcd to be rea$onable and cu~tomal)' for the area in which Ihis properly is located. e The developer's fe,. provides for Purchaser's overhead anu slaffinJ.: costs related 10 lhe project, and may nol exceed 10 percent of the net developmell{ COSI d rhe property may not be occupied by or resold to any of Ihe Purchaser's of(icero, directors, elecled ur appointed otTicials, employces, business associates. or to any individual who is relatcd t->y bl(lod, marriag". or law to any of the above. e There may be no eonnicr of inleresl wilh individuals or firms lhat may provide acqUIsition or rehabilitallon funding, ma.nagemelll Dr sales services, or other associated with the project. 2. Purchaser must provide periodic reports, as specified by 24 CFR 291.110 and in Ule format and frequency specified by HUD, regarding lhepurchase and resale of propcrties subject to this Addendum. 3. nli~ Aducndum survives the expiration, if any, by operation of law or other-vise, of the FHA Sales Contran, and shall terminale five years from the date contained herein. Purchaser Witness Secretary of ('Iousina. and Urban Development Seller Witness By' CDC 1999-19 LE.-\D-B,\SED PAI:'\T ADDE:'\Dl:\1 TO SALES CO:'\TRACT - PROPERTY BUILT BEFORE 1978 FIlA CASE :--:0 PROPERTY ADDRESS: ATrACIlMENT A Page I of4 :-iOTI: TO Pl'RCIIASERS. REAL ESTATE BROKERS A:\O AGE:\TS: 17m a(ldemlum IS maml,ll00-[or aay properl) budl before 1978 aad eoaslSls offour parIS ParI A.DlSclosure of la/ormalioa on Lead-Based Pllint and'or Leml-Based Paml Ha:ards. Pllrl B. Sales Contract Lelllf Bllud Paial E.'alualioa Conlmgeary. Port C. O'KTf('r-Occupnnl Cl'rlijicallon. and Part D. Purchns~r's .<4.tMen(/um to tllf,," Sales Contract. Release of L~lJ(1 B,ue,/ Paint E\'alunlwn Conlingency. .~1I pans must be eo.'plct...f as sho,,'n 17l1s L,'ml-Based Paint .Md.'ndum must b.' eompJe/l'd oa or before Ihe dale oflhe Sales Conlrael, and for....ard,.d 10 /IUD ,,'ilh Ihe Sales Coolraelfor anI prop,'n. bUIll b,,/ore 1978 Sales C oolraets ""hOIlI IhlS Add,'n.fum "rll 001 be aceeple,1 bl /It'D 17lis Addeo,lum Sllr"i.'cs Ihe closing oflhe sale PART A DISCLOSC'RE OF IXFOR.\/ATlO,V ON LEAD-BASED PAI......T AND/OR LEAD BASED PAINT flAZiRDS l.EAO WAR:-'I:-'G STA Tf.'If.:-'T. E,'ery p'''c/las,'r of am' inleresllo reml.'ollal ,...'al properlY all ..h,eh a ""',,dentiol d..dlmg ,,'as burll pnor 10 1978 IS oO/lfl,'d iha: su,'h pml,'r/l m.lI pro,'a' ",'POSllre 10 J.'ad from lead-based Iha, 111111 pl.,cc YOllflg chlldreo al rISk of dne/opmg lead poiSOnIng Lead poisonmg in youllg chd,lren IIl11_' prc>.iuC<' p,'rm.:n,'", fl,'umloglcr.! dall,,'g". incl"ding J.'amillg dlSabrl'I"'S. red"C<'d iOlell'geace qllol"'fll. b,'hal'lOralprobJ.'ms. aad impmred memor)' Lead poiso",og ..I,., po.,,', a p.",,, ,,:.zr mi. w pr,'ga,,", hOlllea Tne sel/er of all) ,",,'re" m resulewl<ll prop,.rt) IS ""'<iUl,,'d 10 pro,'ule ,he buyer "'/lh allY informalloo on lead-ba".d pmal ha:ords from mi. nssessmellts or IMpeClloas mille sel/a's poss,'sswn aad 1I0/lf.. Ihe buyer of any ""0"0 /t'ad.bnscd pam' ha:ards II nsk assessmenl or inspl'ctJonfoipoSJI!JIt: lenlf. based palnl ha:nrds is n'commendt."d pnor 10 ptlrchnsc SELLER'S DISCLOSl'RE A. Presence of lead-based paint and/or lead.based paint hazards (check one below): Known lead-based paint and!or lead-based paint hazards are present in the property (explain): 2. Seller has no actual knowledge of lead-based paint and'or lead-based paint hazards in the property B. Records and reports available to the seller (check one below) 1. Seller has provided the purchaser with all available records and reports pertaining to lead-based paint andlor lead. based pamt hazards in the property (list documents below). 2. Seller has no reports or records pertainmg to lead-based paint and'or lead-based paint hazards in the property rUIKHASER'S ACK."OWLEDGEi\lENT (initial) C. Purchaser has recei,'ed copies of all infomlation listed abo"e. D. Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. E. Purc~ascr has (check one below): 1, Requested a 15 day opportunity to conduct a risk assessment or mspection for the presence of lead-based paint and or lead-based paint hazards; or 2. Waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and'or lead- based paint hazards. BROKERlAGEi'iT ACK."OWLEDGDIENT (mitial) F. Broker 'agent has informed the seller of the seller's obligations under 42 USe. 4852d and is aware of his/her responsibility to ensure compllance- CERTIFlCATIO:'\ OF ACCCRACY The following partlcs ha"e rcviewed the infomlation above and certify. to the best of their knowledge, that the information they ha\'e provided is true and accurate Sellcr Date Purchaser Date Purchaser Date 9!'J6 Brokc'TAgenl Date CDC 1999-19 AlIachmenl A Page 2 of 4 PART B SALES CO:'iTRACT LEAD-BASED PAI:'iT EV ALUA TION CO~TINGENCY This contract is contingent upon a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-bJ.sed paint hazards at the Purcl1J.ser's expense until 12 noon on the 15th calendar day after acceptJ.nce, on [Insert date] This contingency will tem1inate at the J.bove preJetennineJ deadline unless the Purchaser or Purchaser's agent delivers to the Seller or Seller's agent Part 0 of this J.dJendum listing the specific lead-based paint hazards and corrections needed, together with a copy of the inspection and/or risk assessment report. The Seller may, at the Seller's option, within fi\'e days after delivery of Part 0 of this Addendum, elect in writing whether to correct the hazards(s) prior to settlement. If the Seller will correct the hazard(s), the seller shall fumish the Purchaser with certification from a risk assessor or inspector demonstrating that the hazard(s) have been remedied before the date of the settlement. I f the Seller does not elect to make repairs, or if the Seller makes a counter-offer, the Purchaser shall have five days to respond to the counter offer or remove this contingency and take the property in its "as is" condition or this contract shall become void. The Purchaser may remove this contingency at any time without clause. INTACT LEAD-BASED PAII"T THAT IS IN GOOD CONDITIOI" IS NOT NECESSARlL Y A HAZARD. See EPA pamphlet Protect Your Family From Lcad ill YOllr Home for more information. Lead-Based Paint Addendum to the Sales Contract - Property Built Before 1978, including ParI A, Disclosure of II/fa nlza tlOl/ on L<!ad-Based Pallll alldlor Lead Based Paint Ha~ards. Part C. O"I/er-Occupant Certificatlol/ (if applicable), and ParI D. Purchaser's Add.mdum 10 the Sales Contract _ Release of Lead-Based Pdlnl EmluatlOn Contingency, if applicable, must also be completed and made a part of this Sales Contract. 9/96 CDC 1999-19 Attachment ^ Page 3 of 4 PART C OWl"'ER-OCCLPAI'<T CERTlFICATlOl\ TO BE CO\IPLETED B'{ ALL OWNER-OCCUPANT PURCHASERS ONL Y Check and complete the following. as appropriate: _ Uwe do not have a child under the age of Se\'en years, _ Uwe do have a child under the age of se\'cn ye:us, Their names and ages are as follows: Name Age Check only one of the follo\\'ing blocks if children under seven are indicated above: _ I/we understand that within 15 days after acceptance by HUD of my/our offer to purchase, L'we will at my/our expense, have each of the above-named children tested for an elevated blood level (EBL) and that L'we will provide these tests to HUD. If L'we fail to provide the test results to HUD within the 15 day time frame, the contract will be canceled immediately without further notice. Further, l/we understand that if an EBL condition is identified, U\ve have the option to: 1) cancel this contract and receive our earnest money deposit back, or 2) complete the sale of the property within the understanding that Uwe will, at a minimum, have the property tested for the presence of lead-based paint on all chewable surfaces and, where lead-based paint on che\\'able surfaces is identified, have such paint surfaces abated. I/we fully understand that if a blood lead level screening program is not reasonably available or if L\ve ,refuse to have my/our child(ren) tested, l/we have the option of closing this sale. l,'we hereby acknowledge that this property Uwe am/are purchasing from the Department of Housing and Urban Development may contain lead-based paint. However, despite this possibility, l/we elect to close the sale on this property. Further, I/\ve agree to hold HUD harmless for this action. Signature of Purchaser Signature of Purchaser Date Slgn:lture of Witness Dale 'J% CDC 1999-19 Attachment A Page 4 of 4 L\D HASED PAI:--;T ADDE:--;Dl::\1 TO SALES CO:"i'TRACT - PROPERTY HlJIL T BEFORE 1978 FilA CASE !\<O. PROPERTY ADDRESS PART D PURCHASER'S ADDE.\'DUAf TO THE SALES CO!"TRACT- RELEASE OF LEAD-B.~SED PAIST EVALUATlOl" COtvT/,vGE,""'CY Ijp"rclluser lIlI"u/t.d porIA. /I,'m E I o/thc U,Jd.flu,ed l'ulfll.4dJclld"", tv tl:c Solles COlllract - Propcrll'" 8",11 B''l;)fc 1978 (Add,'lId"m). I/IIS ParI D IIIl1-'t b,' comp/"t,'d uS shu"" alld pro,'idcd 10 the Seller Oil or be/vre IIIe date shol'" ,n the AddClld"m, I'url B. "r rh,' COllllfIg,'IICJ'" ICrTllIlI.)!ed I/p"rch'lSer IIl1l1a"'d PurlA. item E. 2 ,h,'1I 1/115 p,Jrt 0 is ,,""ecessan' a"d fl,'cd ",,: (() h,' co",pleted or promf,'d IV Ihe Seller PURCHASER'S ACKJ~O\\LEDGEi\IE;\T (check appropriate boxes) I ] Purchaser acknowledges that he/she has received a 15 day opportunity (or other mutually agreed upon period) 10 conduct a risk assessment or lead-based paint inspection for the presence of lead-based paint andior lead-based paint hazards. that such a risk assessment or lead-based paint inspection has been made I] Purchaser acknowledges that Seller is under no obligation to correct any lead-based paint and'or lead. based paint hazards identified by the lead-based painl inspection and/or risk assessment and hereby removes the contingency and accepts the property in its "as is" condItion. without warranty. as described in item B, Conditions of Sale of the contract. [ ] Purchaser requests that Seller take the following action to correct the lead-based painl hazards noted: LC:ld-Bascd Paintllazard Correcti\"C Action Requested Purcha~er has attached the risk assessment or inspection report. [1' Seller refuses this request, Purchaser reserves the right to continue wtlh the purchase or reque~t cancellation of the sales contract. [ ] Purchaser requests cancellation of the sales contract due 10 the following deficiencies indicated in the attached report{s): CERTIFICATlO:--; OF ACCURACY The following parties have reviewed the infomlation above and certify. to the best of their knowledge. that the information they have provided is true and accurate, Purchaser Date purchaser Date Broker 'Agent Date 990 CDC 1999-19 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of San Bernardino 201 North "EN Street, suite 301 San Bernardino, CA 92401 Attn: Executive Director (Space Above Line Reserved For Use By Recorder) RECORDATION OF THI~ INSTRUMENT IS EXEMPT FROM ALL FEES AND TAXES REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS FOR THE ARR PROGRAM (Name of Oualified Homebuver) Dated as of , 200. ---ARR PROGRAM: [NAME OF DEVELOPER/PARTICIPANT]--- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO _ >___. .__.....I....C1 A ')...........4 CDe 1999-19 COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS (FOR THE ARR PROGRAM) THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS, (the "ARR Covenant") is made and entered into as of , 200_, by and among (the "Participant"), the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency"), and (the "Qualified Homebuyer"), and this ARR Covenant relates to the following facts set forthih Recitals. R E C I TAL S A. The Qualified Homebuyer proposes to acquire a single family residence (the "New Home"), located within the City of San Bernardino (the "City"), from the Participant, to be owned and occupied by the Qualified Homebuyer as their principal residence. The legal description of the New Home is attached hereto as Exhibit "A" and incorporated herein by this reference. B. The Agency has made this property on which the New Home is situated available to the Participant for the purposes as set forth under that certain Aquisition, Rehabilitation Resale (ARR) Agreement dated as of (the "ARR Agreement") in . order t.o make the New Home available for acquisition by the Qualified Homebuyer from the Participant subject to the terms and conditions of this ARR Covenant; and C. The terms of the ARR Agreement mandate that the acquisition, use and occupancy of the New Home shall be restricted in certain respects for the term as provided herein (the "Qualified Residence period") in order to ensure that the New Home will be used and occupied in accordance with the ARR Agreement and the affordable single family residential dwelling unit development goals and objectives of the Agency. SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 1 CDe 1999-19 NOW r . THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, THE PARTICIPANT AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. Covenant, the following words and terms shall provided in the Recitals or in this Section 1 context of usage of a particular word or require: As used in this ARR have the meaning as unless the specific term may otherwise Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for fpmily size) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167 (k) 3b) (3) under the Code, as adjusted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 50052.5. At the time of the close of the New Home Escrow, or later when a proposed Successor-In-Interest acquires the new home the amount of the maximum Affordable Housing Cost payable in connection with the acquisition of the New Home at any time during the Qualified Residence Period shall- be calculated as set forth in Health and Safety' Code 50053.5(b) (1) or (2), as applicable. Code. The word "Code" means the Internal Revenue Code of 1986, as amended, and any regulation, rulings or procedures with respect thereto. Delivery Date. The words "Delivery Date" mean the date of deli very of title and possession of the New Home from the Participant to the Qualified Homebuyer at the close of the New Home Escrow. Lower-Income Household The words "Lower Income Household" mean persons and families whose income does not exceed the qualifying limits for lower income families as established and amended form time to time pursuant to Section 8 of the United States Housing Act of SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 2 CDC 1999-19 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Sectretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjsuted for family size and revised annually. As used in this section, "area median income" means the median family income of a geographic area of the state. New Home. The words "New Home" mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as rehabilitated and completed by the Participant and sold to the Qualified Homebuyer. New Home Escrow. The words "New Home Escrow" mean and refer to the real estate conveyance transaction or escrow by and between the Participant and the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In- Interest). The transfer of the New Home from the Participant to the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. Notice of Agency Concurrence. The words "Notice of Agency Concurrence" mean and refer to the acknowledgment in recordable form in which the Agency confirms that the proposed Successor-In-Interest of the Qualified Homebuyer satisfies all of the AdjUsted Family Income and other requirements of this ARR Covenant for occupancy of the New Home by the Successor- In-Interest at any time during the Qualified Residence Period. Qualified Homebuyer. The words "Qualified Homebuyer" mean the purchaser of the New Home from the Developer (e. g. : all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Homebuyer shall: (i) have an annual Adjusted Family Income which does not exceed the household income qualification limits of a Lower-Income Household: (ii) shall be a first- time homebuyer, as this term is defined in Health and Safety Code Section 50068.5; and (iii)pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, including all sums SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 3 CDe 1999-19 payable by the Qualified Homebuyer for mortgage financing, insurance, escrow costs. its purchase money and other fees and Qualified Residence Period. The words "Qualified Residence Period" mean the period of time beginning on the Delivery Date and ending on the date which is ten (10) years after the Delivery Date. ARR Covenant. The words "ARR Covenant" mean these Redevelopment Agency of the City of San Bernardino Community Redevelopment Housing Affordability Covenants and Restrictions by. and among the Qualified Homebuyer, the Participant and the Agency pertaining to the New Home. Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person, family or household which may acquire the New Home from the Qualified Homebuyer at any time during the Qualified Residence Period by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a "first-time homebuyer" and shall have an income level for the twelve (12) months prior to the date on which the Successor- In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for a Lower-Income Household. Upon acquisition of the New Home the Successor- In-Interest shall be bound by each of the covenants, conditions and restrictions of this ARR Covenant. The titles and headings of the sections of this ARR Covenant have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or resirict the meaning any of the terms or provisions hereof. Section 2. Acknowledgments and Representations of the Oualified Homebuyer. The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery Date: (a) the total household income for the Qualified Homebuyer does not exceed the maximum amount permitted as Adjusted Family Income for a Lower-Income Household, adjusted for family size; (b) the Qualified Homebuyer intends to promptly occupy the New Home after the Delivery Date as the principal place of residence for a term of at least two (2) years following the Delivery Date and the Qualified Homebuyer has not entered into any arrangement and has no present intention to rent, sell, transfer or assign the New Home to any third party during the Qualified SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 4 CDe 1999-19 Residence Period so as to frustrate the purpose of this Section 33334.3 Covenant; (c) the Qualified Homebuyer has no present intention to lease or rent any room or sublet or rent a portion of the New Home to any relative of the Qualified Homebuyer or to any third person at any time during the Qualified Residence Period; (d) the sum payable each month by the Qualified Homebuyer following the close of the New Home Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Home does not exceed the Affordable Housing Cost for the household; (e) the Qualified Homebuyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax returns filed by all persons who reside in the New Home for the calendar year preceding the close of the New Home Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all person residing in the New Home at the close of the New Home Escrow; (f) The Qualified Homebuyer has been informed by the Participant that this ARR Covenant imposes certain restrictions on the use and occupancy of the New Home during the term of this Section ARR Covenant and that this ARR Covenant imposes certain restrictions .on the resale of.the New Home during the Qualified Residence Period. The Qualified Homebuyer acknowledges and understands that these restrictions shall be applicable to the New Home and to any resale of the New Home from the Delivery Date to the end of the Qualified Residence Period which is , 201 Dated: Initials of Qualified Homebuyer Section 3. Covenant of the Qualified Homebuyer to Maintain Affordability of the New Home During the Qualified Residence Period and Covenant Relating to Sale or Transfer of the New Home Durinq the Qualified Residence Period to a Succ~ssor-In-Interest. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 5 CDC 1999-19 (a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the New Home shall be used and, occupied by the Qualified Homebuyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or for another Lower-Income Household as a Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as provided in this Section 3 to verify that each proposed Successor-In-Interest of the Qualified Homebuyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of a Lower- Income Household (based upon the Adjusted Family Income of each household), and that the completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the "Notice of Agency Concurrenceu as provided in Section 3 (d) . (b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any interest therein) to a Successor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least sixty (60) days prior to the date on which the Qualified Homebuyer proposes to transfer title in the New Home to a Successor-In-Interest, the Qualified Homebuyer shall send a written notice to the Agency as provided in Section 17 of the intention of the Qualified Homebuyer .tosell the New Home to a Sucqessor--In-Interest which includes the following true and correct information: (i) name of the proposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); (ii) copies of State and federal income tax returns for the Successor-In-Interest for the calendar year preceding the year in which the notice of intention to sell the New Home is given to the Agency; (iii) resale price of the New Home payable by the Successor-In-Interest, including the terms of all purchase money mortgage financing to be assumed, SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 6 CDC 1999-19 provided or obtained by the Successor-In- Interest, escrow costs and charges, realtor broker fees and all other resale costs or charges payable by either the Qualified Homebuyer or the Successor-In-Interest; (iv) name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Homebuyer to the Successor-In-Interest; (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such reference; and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c). (c) Within twenty (20) days following receipt of the notice of intention described in Section 3(b), the Agency shall provide the Qualified Homebuyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In- Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adjusted Family Income and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) has been provided to the Agency~ In the event that the Agency may request additional inf<nmation. relating to the. confirmation of the matters described in Section 3(b), the Qualified Homebuyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Horne, the Agency shall deliver a written acknowledgment and approval of the resale of the New Horne to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3(b) (iv) above, and thereafter the Successor-In-Interest may acquire the New Horne subject to the satisfaction of the following conditions: (i) the recordation of the Notice of Agency Concurrence executed by the Successor-In-Interest and the Agency at the close of the resale escrow; SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 7 CDe 1999-19 (ii} the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Homebuyer and the final escrow closing statement for the Successor-In-Interest; and (iii) the other condi tions established by the Successor-In-Interest of the resale escrow as Qualified Homebuyer and shall have been satisfied. (e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants and agrees that during the Qualified Residence Period the New Home shall not be leased, subleased, or rented to any third person, except for a temporary period (not to exceed 12 months) in the event of an emergency or other unforseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Homebuyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event within not more than (60) days following the commencement of a temporary rental occupancy of the New Home by a third party, which notice shall set forth the grounds on which the Qualified Homebuyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. Section 4. Main tenance Condition of the New Home. The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that: (a} The exterior areas of the Ne~ Home whiCh are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation} shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the term of the Qualified Residence Period, there is an occurrence of an adverse condition on any area of the New Home which is subj ect to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency"} then the Agency shall notify the Qualified Homebuyer in writing of the Maintenance Deficiency and give the Qualified Homebuyer thirty (30} days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiency" include without limitation the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property use restrictions: SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 8 CDe 1999-19 failure to properly maintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of wed and debris; parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on any other parts of the property which are not covered by a paved and impermeable surface; the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Home. In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Homebuyer ten (10) days prior to the scheduled date of such p~blic hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has failed to comply with the provision of this Section 4(a). If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Home (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c). SBEO/0001/DOC/3514.2wpd 6/14 /99 116 rp 9 CDC 1999-19 (b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the New Home shall be removed by the Qualified Homebuyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the New Home (exterior areas only) and such graffiti is visible from an adjacent or contiguous public right-of-way and thereafter such graffiti is not removed within 72 hours following the time of its application; then in such event and without notice to the Qualified Homebuyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Section 4(b) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4(a) or Section 4(b), including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or ~emoval of graffiti and the collection of the costs of the Agency in connection with such action. In any legal proceeding for enforcing such alien against the New Home, the prevailing path shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4, shall be a covenant running with the land for the Qualified Residence Period and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable law. Nothing in the foregoing provisions of this Section 4 shall be deemed to preclude the Qualified Homebuyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 10 CDC 1999-19 Section 5. [RESERVED/NO TEXT] Section 6. [RESERVED/NO TEXT] Section 7. Foreclosure of Purchase Money Mortgage Loan and Agencv Riaht of First Refusal. (a) During the Qualified Residence Period the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Horne at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period the Agency shall have the right of first refusal to purchase the New Horne from the Qualified Homebuyer on the same terms which the Qualified Homebuyer may propose to offer the New Horne for resale to a Success-In- Interest. The Agency must exercise such a right of first refusal within thirty (30) days following written notification of the intention of the Qualified Homebuyer to resell the New Horne, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Homebuyer and close an escrow for the transfer of the New Horne to the Agency within sixty (60) days following written notification of the intention of the Qualified Homebuyer to resell the New House. Section 8. Covenants to Run With the Land. The Participant, the Agency. and the Qualified Homebuyer her~by declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a cornmon plan for the rehabilitation of affordable single family housing improvements within the territorial jurisdiction of the Agency and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Horne and each Successor-In-Interest of the Qualified Homebuyer in the New Horne for the term provided in Section 10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this ARR Covenant. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Horne or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 11 CDC 1999-19 and restrictions are set forth in suc,h contract, deed or other instrument. ' Section 9. Burden and Benefit. The Participant, the Agency and the Qualified Homebuyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Homebuyer's legal interest in the New Home is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Homebuyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Home by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable single family housing development goals and objectives of the Agency and in order to make the New Horne available for acquisition and occupancy by the Qualified Homebuyer. Section 10. Term. This ARR Covenant shall apply to the New Horne and the Qualified Homebuyer and to each Successor-In-Interest as of the Delivery Date for the Qualified Residence Period -- e.g.: this ARR Covenant shall remain in full force and effect for ten (10) years after the Delivery Date. Any provision or section hereof, may be terminated after the Delivery Date upon agreement by the Agency and the Qualified Homebuyer (or the Successor-In- Interest in the New Horne), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in i~s reasonable discretion will not adversely affect the affordable single family housing and development goals of the Agency. . . Section 11. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Homebuyer to honor or perform any material term or provision of this ARR Covenant shall constitute a breach under this Agreement; provided however, that if the Qualified Homebuyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days after the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Homebuyer written notice of breach specifying the alleged breach which if uncured by the Qualified Homebuyer within thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 12 CDC 1999-19 shall not constitute a waiver of any breach or event of default nor shall it change the time of breach or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 11. Except with respect to rights and remedies expressly declared to be exclusive in this ARR Covenant, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Homebuyer may remain incurred for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 as related to a Maintenance Deficiency at the New Home, upon the occurrence of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Qualified Homebuyer to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (H)' by other action' at lqw or in or convenieni to en~orce covenants and agreements Homebuyer to the Agency. equity as necessary t~e' obligations, of the Qualified (b) No third party shall have any right or power to enforce any provision of this ARR Covenant on behalf of the Agency or to compel the Agency to enforce any provision of this ARR Covenant against the Qualified Homebuyer on the New Home. Section 12. Governing Law. This Section 33334.3 Covenant shall be governed by the laws of the State of California. Section 13. Amendment. This ARR Covenant may be amended after the Delivery Date only by a written instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as applicable) and by the Agency. The Participant shall have not any SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 13 CDe 1999-19 right or power to approve any such amendment to this ARR Covenant, and the execution by the Participant of any such amendment after the Delivery Date shall not be required. Section 14. Attorney's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this ARR Covenant or otherwise arising out of this ARR Covenant, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 15. Severability. If any provision of this ARR Covenant shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this ARR Covenant which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Section 16. Time is of the Essence. For each provision of this ARR Covenant which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 17. Notice. Any notice required to be given under this ARR Covenant shall be given by the Agency or by the Qualified Homebuyer, as applicable, by personal delivery or by First Class United States mail at the addresses specified below or at such other address.as may be specified in writing by the parties hereto: If to the~Agency: , Executive Director Redevelopment Agency of the City of San Bernardino 201 North "En Street, Suite 301 San Bernardino, CA 92401 Phone: (909) 384-5081 If to the Qualified Homebuyer: Attn: Phone: Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personally delivered, when received SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 14 CDC 1999-19 by the Executive Director of the Agency or the Qualified Homebuyer, as applicable. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 15 CDe 1999-19 IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer and the Agency have caused this Covenant to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this ARR Covenant is authorized under Health and Safety Code Section 33334.3(g). QUALIFIED HOMEBUYER Dated: By: By: PARTICIPANT Dated: By: AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director [ALL SIGNATURES MUST BE NOTARIZED] Approved as to Form: By: Agency Counsel SBEOI0001/DOC/3514.2wpd 6/14199 116 rp 16 CDe 1999-19 EXHIBIT "A" Legal Description of the New Home SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 17 CDe 1999-19 RECORDING REQUESTED BY Redevelopment Agency of the City of San Bernardino AND WHEN RECORDED MAIL PROPERTY TAX BILL TO: [address of Participant under the ARR Agreement] (Space above line reserved for use by Recorder) REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS [ARR Program: (Name of Grantee/Participant)] PART A THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS (the "Quitclaim Deed") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corpora te and politic (the "Agency") in certain real property situated at , San Bernardino, California (the "Property") to , (the "Participant"), subject to the community redevelopment affordable single family housing conditions, covenants and restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the community redevelopment affordable single family housing conditions, covenants and restrictions of this Quitclaim Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 1 of 7 CDC 1999-19 (-- The Property--) on Official Records of the Office of San Bernardino County. file in the of the Recorder PART B The quitclaim of the Property by the Agency to the Participant is expressly subject to the satisfaction of the following community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain Acquisition, Rehabilitation, Resale Agreement dated (the "ARR Agreement") by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty-five (25) years commencing on the date of recordation of this Quitclaim Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated for occupancy only to a "person" or a "family" who is a "Qualified Homebuyer" for a term of the shorter period of either: (i) twenty-five (25) years from the date of recordation of this Quitclaim Deed; or (ii) the term, as provided in the ARR Agreement Covenant described in subparagraph 3, below. The words "Qualified Homebuyer" refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first-time homebuyer," as defined in Health and Safety Code Section 50068.5, and whose annual income during the twelve (12) months preceding the date of initial occupancy of the Property by the Qualified Homebuyer does not exceed the income qualification limits for "lower income households", as defined in Health and Safety Code Section 50079.5 (Statutes of 1979: Chapter 96). Health and Safety Code Section 50079.5 provides: "'Lower Income households' means persons and families whose income does not exceed the qualifying limits for lower income SBE0/0001/DOC/3513.1 6/15/99 1200 ct Page 2 of 7 CDe 1999-19 families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. As used in this section, 'area median income' means the median family income of a geographic area of the state." 3. As a condition precedent to any transfer, sale, conveyance, grant or other hypothecation by the Participant of the Property to a Qualified Homebuyer the "Acquisition, Rehabilitation Resale Affordability Use and Occupancy Covenant" (the "ARR Covenant"), substantially in the form attached hereto as Exhibit "A-I" or Exhibit "A-2," as applicable and as incorporated herein by this reference shall be fully executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The final form of the ARR Covenant shall be consistent wi ththe terr~s and conditions, of. the ARR Agreement as applicable to the Qualified Homeb.uyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the ARR Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the ARR Covenant shall be a separate community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and assign of the Qualified Homebuyer for the term as provided in the ARR Covenant. 4. Prior to the recordation of the ARR Covenant as provided in subparagraph 3 of PART B of this Quitclaim Deed, the Property shall not be offered for sale or sold to a Qualified Homebuyer for a sale price which exceeds more than Dollars ($ ), exclusive of customary and reasonable "escrow" and sales SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 3 of 7 CDC 1999-19 transactional costs which may be normally allocated to a Qualified Homebuyer by an owner-builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of PART B of the Quitclaim Deed shall have no further force or effect upon the property after the date of the complete execution and recordation of the ARR Covenant. 5. The Property shall be subject to the following affordable housing redevelopment covenant in perpetuity and the text which appears in this Quitclaim Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enj oyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PART C During the term of subparagraph 2 of PART B, but prior to the recordation of a fully-executed copy of the ARR Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales and ancillary business activity on the Property associated with the improvement and sale by the Developer, pursuant to the ARR Agreement, of an affordable single family dwelling unit on the Property prior a Qualified Homebuyer. The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the ARR Covenant. SBEO/0001/00C/3513.1 6/15/99 1200 ct Page 4 of 7 CDC 1999-19 PART D The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an increase, improvement and preservation of the community's supply of low- and moderate-income housing. The transfer of the Property by the Agency to the Developer for this purpose and the recordation of this Quitclaim Deed is authorized by Heal th and Safety Code Sections 33334.2 and 33334.3, and other applicable law and actions of the Agency, including without limitation, the ARR Agreement. PART E Upon the delivery of this Quitclaim Deed to the Participant, the community redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by either the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(f) (2) against the Participant and each successor in interest or assignee of the Participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 5 of 7 CDe 1999-19 THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized signatures of the Executive Director of the Agency. AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic Dated: By: Executive Director Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] [NOTE: Exhibit "A-i" MAP Assistance) General Form of ARR Covenant (Agency Exhibit "A-2" Program) ] General Form of ARR Covenant (HOME SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 6 of 7 CDe 1999-19 ACCEPTANCE OF QUITCLAIM DEED AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT (the "Participant"), hereby accepts the delivery of the instrument identified above as the "Quitclaim Deed of a Public Agency and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Quitclaim Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San Bernardino, subject to the conditions, covenants and restrictions contained in the Quitclaim Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property to be improved and rehabilitated as set forth in the ARR Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Quitclaim Deed which touch and concern the Property and are community redevelopment covenants which run with the land. PARTICIPANT Dated: By Its: By: Its [NOTARY JURAT ATTACHED] SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 7 of 7 CDC 1999-19 HUD UNIT PURCHASE AND SALE AGREEMENT Property Address: THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is dated for identification purposes only, as of , 199_, and is made and entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and (the "Participant"), with reference to the following: RECITALS A. WHEREAS, the Agency and the Secretary of Housing and Urban Development (the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition Program a copy of which is attached hereto as Exhibit "A" (the "HUD Contract") regarding sale by the Secretary to the Agency of that certain property commonly known as San Bernardino, California (the "HUD Unit"). A legal description of the HUD Unit is attached hereto as Exhibit "B"; and B. WHEREAS, subj ect to the terms and conditions of that certain Acquisition, Rehabilitation and Resale (ARR) Agreement dated 1999 (the "ARR Agreement"), by and between the Participant and the Agency and this Agreement, Agency desires to sell the HUD Unit to the Participant and the Participant desires to purchase the HUD Unit from the Agency at the close of the "HUD Escrow" as set forth herein. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS: 1. Warranty of Authority by Participant. The Participant warrants that it is a under the laws of the State of California, and is authorized to execute this Agreement and all of the documents and instruments contemplated hereby, including, without limitation, supplemental escrow instructions and the Acceptance of Agency Quitclaim Deed; and that this transaction has been approved by [resolution of its board of directors]. A certified copy of that [resolution] which remains in effect, will be delivered to Agency before the close of the HUD Escrow as set forth herein. SBEO/0001/DOC/3515 6/15/99 245 ct 1 coc 1999-19 2. Agreement to Sell and to Purchase. Subject to the terms and conditions of this Agreement, the Agency agrees to sell and the PartLcipant agrees to purchase the HUD Unit. 3. Purchase Price. The "Purchase Price" for the HUD Unit is the same sum in cash or immediately available funds in United States Currency as the discounted purchase price which the Agency has agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit. The Purchaser Price shall be payable by the Participant's delivery of the full amount to the escrow holder in cash or by wire transfer of immediately available funds at least one (1) business day before close of the HUD Escrow or by cashier's check during business hours at least three(3) business days before the close the HUD Escrow. 4. BUD Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees to pay all of the costs of the escrow holder in the HUD Escrow including all amounts charged to the account of the Secretary and the Agency. The escrow holder is hereby instructed to collect such costs and charges from the Participant at the close of the HUD Escrow. 5. Conditions for the Benefit of the Agency. The obligation of the Agency to perform this Agreement is subject to the satisfaction of the following conditions, which are for the Agency's benefit only: (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen(15) days after the date hereof; (b) .~hat the Secretary perform under the HUD Contract title of the HUD Unit actually be transferred from HUD Agency within forty-five (45) days after the date hereof; and the , to the (c) the Agency shall have received, satisfactory to the Executive Director, a the insurance required pursuant to Section in form and substance certificate evidencing 16 of this Agreement; (d) that the Participant has duly execute and deliver to the escrow holder, in recordable form the Acceptance of the Participant of the Agency Quitclaim Deed. (e) that the Participant not otherwise be in default under its other obligations to the Agency under the ARR Agreement. SBEO/OOOl/DOC/3515 6/15/99 245 ct 2 CDC 1999-19 The conditions set forth above are for the Agency's benefit only and the Executive Director of the Agency (the "Executive Director") may waive all or any part of such rights by written notice to the Participant and escrow holder. If any of said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Executive Director, the Agency may thereafter terminate this Agreement without any liability on the part of the Agency by giving written notice of termination to the escrow holder, with a copy to the Participant. Escrow holder shall thereupon, without further consent from the Participant, return to each party the documents, if any, deposited by them. 6. Conditions for Participant's Participant to perform this satisfaction of the following Participant's benefit only: Benefit. The obligation of Agreement is subject to conditions, which are for the the the (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen (15) days after the date hereof; and (b) HUD Uni t after the that the Secretary actually transfer date hereof. perform under the HUD Contract and the from HUD within forty-five (45) days The conditions set forth above are for the Participant's benefit only and the Participant may waive all or any part of such rights by written notice to the Agency and the escrow holder. If any said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Participant, subject to the approval of the Secretary and the Agency, the Participant may thereafter terminate this Agreement without any liability on the part of the Participant by giving written notice of termination to the escrow holder, with a copy to the Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each party the documents, if any, deposited by them. 7. Escrow. The transfer of the HUD Unit to the Participant shall be consummated through an escrow established with the escrow agent engaged by the Secretary to handle the transfer of the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a schedule coordinated with the closing or the transfer of the HUD Unit between the Secretary and the Agency under the HUD Contract. This Agreement shall constitute the escrow instructions to the escrow holder of the Participant and the Agency with respect to the HUD Uni t. The Agency and the Participant shall execute such SBEO/0001/DOC/3515 6/15/99 245 ct 3 CDC 1999-19 additional escrow instructions as may be reasonably required by the escrow holder. 8. Term of Escrow. Escrow shall close concurrently with the close of escrow under the HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the County of San Bernardino, California. 9. Condition of Title. The Agency shall convey to the Participant by quitclaim deed all of the right, title and interest in the HUD Unit which the Agency receives from the Secretary under the HUD Contract. The form of the Agency Quitclaim Deed is attached hereto as Exhibit "C" and incorporated herein by this reference. 10. Title Insurance. The Agency shall not be responsible for providing any title insurance to the Participant in connection with the transfer of title in the HUD Unit to the Participant. Any title insurance desired by the Participant shall be ordered and paid for by the Participant at its sole cost and expense. 11. Prorations. All assessments, including improvement assessments which are available for payment without interest or penalty for advance payment, taxes, rent, and ground rent, if any, shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently with the escrow under the HUD Contract, through which escrow such items will be prorated between the Secretary and the Agency, the parties acknowledge and agree that the Participant shall be charged for such prorations in precisely the same amount as the Agency is charged under the HUD Contract. 12. Escrow Closing Costs. The Participant shall pay all escrow closing costs of both parties, including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the Participant shall pay all closing costs and expenses charged to the Agency in the escrow by which HUD transfers the HUD Unit to the Participant. 13. Closing. At the Close of Escrow, (a) the Agency shall deliver to the Participant through escrow a the Agency Quitclaim Deed conveying the HUD Unit to the Participant, (b) the Participant shall deliver to the Agency through escrow the acceptance of the Agency Quitclaim Deed, and (c) the escrow holder shall collect and pay the SBEO/0001/DOC/3515 6/15/99 245 ct 4 CDC 1999-19 sums indicated for the transfer of the HUD Unit under the HUD Contract and this Agreement and deliver such other documents to the parties in accordance with the instructions of each of them. At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed to be recorded in the Official Records of the County of San Bernardino, California. 14. Condition of the HUD Unit. The Agency makes no representation or warranty to the Participant or to any third party concerning the condition of the HUD Unit, including, without limitation, mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and the Agency will make no repairs to the HUD Unit either before or after execution of this Agreement. The Participant understands that the Agency does not guarantee or warrant that the HUD Unit is free of visible or hidden structural defect, termite damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or otherwise usable. Participant acknowledges responsibility for taking such action and conducting such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit in the same condition delivered to the Agency by the Secretary, in an "AS IS,H "WHERE ISH and "SUBJECT TO ALL FAULTSH condition. 15. Possession: Repairs. The Participant may not perform repairs nor take possession of the HUD Unit until the escrow is closed. At the close of the HUD Escrow, the Participant may take possession of the HUD Unit and promptly commence the work of rehabilitation as ~equired for the-HUD Unit under the ARR Agreement. i6. Insurance. Prior to the Close of Escrow, the Participant shall obtain and shall thereafter maintain in full force and effect at all times a broad-form comprehensive general liability policy with a limit of not less than $1,000,000.00. Such insurance shall provide for a 30-day notice to the Agency before cancellation of the policy and shall name the Agency as an additional insured as to claims arising out of the work to be performed on the HUD Unit following the Close of Escrow pursuant to the ARR Agreement. 17. Assignment. The Participant and the Agency each agree that this Agreement shall be binding upon their respective, heirs, executors, administrators, successors or assigns and is not assignable by the Participant unless the written consent of the Executive Director is first obtained, which consent the Executive Director may withhold in his or her sole ,and absolute discretion. SBEO/0001/DOC/3515 6/15/99 245 ct 5 CDe 1999-19 18. Notices. All notices, demands and requests which may be given by either party to the other or to the escrow holder shall be in writing and shall be deemed to be given upon personal delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt requested, postage prepaid, addressed to the party to be notified at the address following the party's signature or if addressed to the escrow holder, at the address set forth in the supplemental escrow instruments signed by the parties. Either party may designate by written notice to the other party in the manner set forth in this Agreement another address for notice. 19. Miscellaneous Provisions. 19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to enforce, any provision of this Agreement shall not be a waiver of any further breach of such provision hereof. The waiver by either or both parties of the time for performing an act shall not be a waiver of the time for performing any other act or acts required hereunder. 19.2 Modifications. No change or addition to this Agreement or any part hereof shall be valid unless in writing and signed by each of the parties. 19.3 Governing Law. California law. This Agreement shall be governed by 19.4 Headings. The headings in this Agreement are fbr convenience only and shall not be used to interpret this Agreem~nt. 19.5- Further Acts. Each party agrees to take such further action and to execute and deliver such further documents as may be necessary to carry out the purposes of the ARR Agreement with respect to the HUD Unit and this Agreement. 19.6 Attorneys' Fees. If either party incurs attorneys' fees to enforce this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees as set by the court from the other party. 19.7 No Real Estate Brokers Commission Payable By the Agency. The Agency shall not be responsible for the payment of any real estate brokers commission or finders fee in connection with the escrow or the transfer of the HUD Unit to the Participant. SBEO/0001/DOC/3515 6/15/99 245 ct 6 CDC 1999-19 19.8 Time. Agree~ent. Time is of the essence with respect to this IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director PARTICIPANT By: Its: By: Its: SBEO/0001/DOC/3515 6/15/99 245 ct 7 CDC 1999-19 EXHIBIT "E" 1999 ARR AGREEMENT "ARR Rehabilitation Standards for Each HUn Units" .' CDe 1999-19 ARR REHABILITATION STANDARDS 1. GENERAL DESCRIPTION The Participant will acquire HUD Units and cause the rehabilitation and resale of the housing thereon. II. REHABILITATION STANDARDS All of the improvements to be'provided by the Participant on the HUD Units constitute the "Project". The Project shall be developed in accordance with applicable building and safety codes. III. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Project Site, and the suitability of the Project Site. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Project Site entirely suitable for such development. Participant has undertaken all investigation of the Project Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the rehabilitation of the project. IV. AMENITIES EachHUD Unit shall have full amenities and shall incIudethe following: front yard landscaping and aut~matic sprinklers, side and rear yard fencing. ' V. REHABILITATION STANDARDS Rehabilitation Standards shall include Section 8 Housing Quality Standard (HQS) Minimums and are not limited to: 1. Interior work to make structures more livable, such as, plastering, painting, new subflooring and tile work. 2. Repair, restoration or replacement of important parts of structures, such as, heating systems, plumbing systems, electrical components, kitchen appliances (stoves, refrigerator). 3. Installation of water/energy conservation devices. 4. Installation of security devices. I \\EDA_SAN BERDO\PUBLlC\Fonns\ARR Prograrn\ARR Rehabilitation Standards.doc CDC 1999-19 5. Wheelchair ramps, kitchen and/or bathroom modifications related to a disability of a household member. The following list contains some of the typical repair items and replacement activities: 6. Replacement of plumbing fixtures. 7. Addition of electrical outlets and/or wiring. 8. Insulation. 9. Replacement of roof. 10. Repair and/or enlargement of inadequate kitchen and/or bathroom. 11. Repair/replacement of furnaces and air conditioners. 12. Plaster and dry rot repair. 13. Repair/replacement of porches, steps, fences and walkways. 14. Termite, rodent or vermin fumigation. 15. Addition of closets or other minor built-ins. 16. Chimney repair/replacement. 17. Repair/replacement of railing. 18. Repair/replacement of windows and doors. 19. New ceilings. 20. Weather stripping for windows and doors. 21. Repair/replacement/addition of gutters and down spouts. 22. Repair/replacement of exterior trim. 23. Repair/replacement of stucco (wrap & stucco of wood siding structures). 24. Repair offoundation, structural repair. 25. Replacement of existing toilets, tub and shower, lavatories (cabinets). 26. Carpeting and other flooring. All other items are optional, per agreement, between contractor and buyer. 2 \\EDA_SAN BEROO\PUBLlC\Forms\ARR Program\ARR Rehabilitation Standards.doc CDC 1999-19 EXHIBIT "F" 1999 ARR AGREEMENT "HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents" . CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM (MAP) ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM Date: Property Address: Borrower(s): MAP Amount: FIRST TIME HOME BUYER PROGRAM - MAP CHECKLIST St~P1h.. "f()r..Res~rY;i~iQh.pfF'u nds.Len~rpyE[)A. .... Latest Tax Return (1 040's) and 2 Current Pay Stubs 0 Application Affidavit - Signed by Borrower 0 Verification for Applicant Eligibility (Completed by Lender) 0 Preliminary Escrow Instructions 0 . . . ,~t~R~..B~;fQt'E.[)A.tQl8~qli~$t.f().tlN1A.p,C.he~l<..~..Requ~~.t.f.o.r..Fuhtfs:l..~net.iY::.tW '."\' . ;,';<::)"',\iOfi.;:,c'^ ~" >"~V Complete Demand for Funds Letter 0 Submit MAP Docs (Loan Agreement, Deed of Trust, Promissory Note, CC & Rs) 0 Seller (ARR Contractor) must call EDA Inspector for a Final Inspection (10 days prior to close of escrow) st~P.~..'~....f.orE[)A",tQ'R~I~;i$):!N1A.p.Qhe.cl<;t();g$C'tQW;;:I.'"':;;:1::;;;8/'":~~;;;.I';.#J.';:'J.';t;.;.;.(:.t.......,', ',: ~-'. " Final Escrow Documents (Includes Amendments) 0 First Time Home Buyers Class Certificate 0 Lender Representative: 'VEO.\..SAN 8ER00'PUBUCV::orms'IAap-ARR\MAP-CheCk Ust.doc =_ MP CDC 1999-19 City of San Bernardino . ECONOMIC DEVELOPMENT AGENCY ACQUISITION, REHABILITATION AND RESALE PROGRAM (ARR) AND MORTGAGE ASSISTANCE PROGRAM (MAP) VERI FICA TION FOR APPLICANT ELIGIBILITY . Redevelopment . Community Development . Housing . Business: - Recruitment - Retention - Revitalization . Main Street, Inc. Name of Applicant Current Address Property Address to be Purchased CitylState San Bernardino, California Phone Number Household Size # of Minor Children Zip Code Name of Lender Contact Person Loan Number Phone Number Fax Number "Annual & Monthly Income (See Below) $ Near $ /Month Income used by the lender to qualify for the loan, if different than annual income of application. $ Near $ !Month Monthly Consumer Debt $ !Month Max Loan Amount $ Principal & Interest $ !Month Sales Price $ Est. Property Taxes $ !Month Buyer Down $ ($500 Min.) Est. Insurance $ !Month Map Amount $ Mort. Ins (If Applicable) $ !Month TYPE OF LOAN OFNMA 0 FHA 0 Other Total PITI . . $ !Month . Debt-to-Income Ratios as Calculated by Lender: Ho~mgCom % Total Debt % Terms of Loan Interest Rate # of Years o Fixed Note: Variable Loans are Not Permitted. Check Applicable 50% or less 0 51 % - 80% 0 81%-115%0 *Note: 111 order to qualify for tile MAP your illcome may 1101 exceed tilefollowillg: Signature of Applicant Date Lender/Escrow Representative - Signature Date Signature of Applicant Date 201 North E Street, Suite 301. San Bemardino, California 92401-1507. (909) 384-5081. FAX (909) 888-9413 CDe 1999-19 HOUSEHOLD SIZE 19991ncome Level I 2 3 4 5 6 7 8 Very Low (50%) $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Lower (80%)* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Median (I Ooolo) $33,050 $37,750 $42,500 $47,200 $5 I ,000 $54,750 $58,550 $62,300 Moderate (120%)** $39,650 $45,300 $51,000 $56,650 $6 I ,200 $65,700 $70,250 $74,800 . The maximum income level for MAP assistance under federal HOME. Under MAP HOME - property value at the time of sales must not exceed 95% of the County's median purchase price. .. The maximum income level for MAP assistance under State Redevelopment Law. Under MAP State Redevelopment Law the affordable housing costs apply (Complete Housing Affordability Worksheet) PLEASE CHECK THE FOLLOWING o Sr. Citizen(s) - 62 or Older o Black o American Indian o Female Head of Household o Hispanic o White o Disabled One or More o Other o Asian or Pacific Islander ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGIBILITY FOR MAP IS THE SOLE RESPONSIBILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. ANY QUESTIONS CALL (909) 384-5081. P:lf"cmns\Mortsaae Assiltance\MAP~Applicanl Eligibility.doc (Revised 7199) CDe 1999-19 MORTGAGE ASSISTANCE PROGRAM ACQUISITIONIREHABILITATION & RESALE PROGRAM APPLICATION AFFIDAVIT NOTE: ALL BLANKS ON THIS FORM MUST BE COMPLETED! THERE ARE IMPORTANT LEGAL CONSEQUENCES TO Tms AFFIDAVIT: READ IT CAREFULLY BEFORE SIGNING. 1. I (we) the undersigned, as part of my (our) application for Acquisition, Rehab, Resale (A.R.R.) and Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of San Bernardino, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we), being first duly sworn, state the following: I (we) certify that the following are: a. My (our) legal Name(s): b. Social Security # c. Current residences: d. Telephone # The Unit (the "Residence") being purchased is a single-family home located in the City of San Bernardino at the following address: 2. I (we) certify that my (our) current gross annual household income, including income of all adult persons intending to occupy the Residence, is $ . I (we) understand that I (we) am (are) not eligible fora ARR- MAP unless my (our) gross annual household income does not exceed 80% of the median income for San Bernardino, and as specifically set forth in the Verification of Applicant Eligibility form. 3. I (we) certify that the Residence will be occupied and used as my (our) principal place of residence within forty-five (45) days after the date the ARR-MAP loan has closed. I (we) certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not more than fifteen percent (15) of the area of the Residence will be used in a trade or business. I (we) certify that I (we) will notify the Agency in writing if the Residence ceases to be my (our) principal Residence. Failure to occupy the Residence will result in the Agency accelerating the repayment of the Agency ARR-MAP Loan. 4. If the loan application is for a loan on a newly constructed home, I (we) certify that the Residence has not and will not be occupied prior to loan commitment from the Agency. CDe 1999-19 5. I (we) understand that I (we) am (are) not eligible for a ARR-MAP from the Agency under this program if! (we) individually or together had a present ownership interest in a principal residence within three (3) years prior to date of application. I (we) also understand that I (we) cannot have an ownership interest in a principal residence between the date of application and closing. For this purpose, a principal residence includes a single family residence, condominium, share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law), or occupancy in a multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by any means, whether outright or partial, including property subject to mortgage or other security interest. An ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy by the entirety, or a life estate interest. I (we) certify that I (we) have listed below all places of residence, whether owned or not, for a three-year period from date of application. 6. Previous Address: (Past Three Years) Owned Rented Other Beginning/Ending Date of Residencv From: End: Address of Residence All answers of "Other" must be fully explained; use additional paper if necessary. 7. Name, address and telephone of the owner/landlord who can verify each residence listed above which was not owned by the applicant. Landlord Name Address Telephone No. 8. I (we) certify that the total purchase price of the Residence and land, including all construction items, all commissions, all builder's fees, hook-up and tap-in fees, permits, architectural fees, all site improvements, discount points paid by the seller, work credit, subcontracted items, or construction loan interest, but excluding any closing costs and other permanent financing charges will not exceed the purchase price limitation applicable to the Residence below: Maximum Sales Price (Single Family Unit) $150,000. 9. I (we) further certify that no other agreement, either verbal or written is presently contemplated for the completion of the purchase of the Residence. 10. I (we) further certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified mortgage bond or a qualified veteran's mortgage bond. No person related to me (as defined in CDC 1999-19 applicable federal or state laws and regulations) has or is expected to have an interest as a creditor in the Mortgage loan being acquired for the Residence. II. I (we) understand and agree that if a ARR-MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 12. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the ARR-MAP guidelines. 13. I (we) understand that the decision to make a first mortgage loan is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan. 14. I (we) cannot close my (our) loan prior to receiving a ARR-MAP loan approval. IS. I (we) acknowledge and understand that this Application Affidavit will be relied upon for the purpose of determining my (our) eligibility for a ARR-MAP. (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me (us) in connection with an application for a ARR-MAP may constitute a federal violation punishable by a fine and/or denial of my (our) application for a ARR-MAP loan. If a ARR- MAP loan commitment has been issued prior to discovery of the false statement, immediate cancellation of the ARR-MAP will occur which will be in addition to any criminal penalty imposed by law. Dated: Signature of Applicant(s) Dated: Signature of Applicant(s) P:\FonnslMortgage AssistancelMAP-Application Affidavit.doc CDe 1999-19 FIRST TIME HOME BUYER MORTGAGE ASSISTANCE PROGRAM DISCLOSURE STATEMENT I/We (Participant) understand and agree that the provision of financial assistance from the Redevelopment Agency of the City of San Bernardino (the "Agency") under the First Time Home Buyer Mortgage Assistance Program (the "Program") is conditioned on a number of factors, including, but not limited to (all terms not otherwise defined herein shall have the meaning provided in the Loan Agreement by and between the Agency and the Participant): . I/We must find a single-family detached home within the City of San Bernardino which I/We can afford (the "Property"). . I/We must qualify for a home loan from an institutional lender acceptable to the Agency. . I/We must qualify for assistance under the guidelines of the Program. . I/We must not have owned any interest in any residential real property during the past three (3) years. I/We further understand and agree that: I/We will be responsible for repaying the amount of the Note. The Note will be due and payable upon: (i) the sale of the Property, (ii) the transfer of any interest in the Property, (iii) refinancing of any lien or encumbrance to which the Agency Deed of Trust is subordinate, or (iv) I/We are no longer an occupant of the Property or are in default of any obligation under the Loan Agreement. . I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the Agreement is signed by sending a notice of my/our decision to rescind or cancel the Agency Loan to: Redevelopment Agency of the City of San Bernardino Housing Division 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 Attn: Housing Division Manager . An appraisal fee may be payable upon the following: (i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) I/We no longer occupy the Property, or (iv) I/We are/am in default of any provision of the Loan Agreement. . The Agency shall not be held responsible for any costs associated with the home I/We 1 \\EDA _SAN BERDOIPUBLlClFonnslMongage Assistance\2-MAP-DlSCWSURE.doc CDC 1999-19 purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of the Property . . The Agency cannot ensure that information provided by or on my/our behalf will be confidential. . The Agency shall not be responsible for the selection of a home, the selection of a lender providing funds assisting in the purchase of the home, provide information concerning other public or private sources ofloans, or the competitiveness of the terms of the Program. I/We assume all responsibility for determining whether I/We will inform myself/ourselves as to the availability and terms of other public or private loans. . The Agency shall not be charged with the knowledge of the contents of the ocuments of the lender. DATED 19 DATED 19 DATED 19 2 \\EDA_ SAN BERDOIPUBUClFonnslMortgage Assistance\2.MAP-D1SCLOSURE.doc CDC 1999-19 17 of 8 ACQUISITION, REHABILITATION RESALE (ARR) AGREEMENT By and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO And ACQUI~l~~~ifa~~RJ~~tE (ARR) ("ARR Participant") CDC 1999-19 TABLE OF CONTENTS I. [l00] SUBJECT OF AGREEMENT .................................................................................. 2 A. [101] Purpose of Agreement......................................................................................... 2 B. [102] The HUD Units ................................................................................................... 3 C. [103] Parties to the Agreement ..................................................................................... 3 1. [104] The Agency ...................................................................................................3 2. [105] The Participant .............................................................................................. 3 3. [106] Prohibition Against Change in Ownership, Management and Control of the Participant................................................. .............................................................. 4 4. [107] Benefits of Project......................................................................... ................ 4 II. [200] AGENCY ASSISTANCE ......................................................................................... 4 A. [201] The Project ..........................................................................................................4 B. [202] Agency Assistance .............................................................................................. 5 C. [203] Term of Agreement ............................................................................................. 5 D. [204] Participant Assistance ......................................................................................... 5 E. [205] HUD Escrow .......................................................................................................7 F. [206] Affordable Housing Cost .................................................................................... 7 III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS .................................. 7 A. [301] Rehabilitation by Participant............................................................................... 7 1. [302] Cost of Rehabilitation.......................................................................... ..........8 2. [303] Bodily Injury and Property Damage Insurance............................................. 8 3. [304] Rights of Access............................................................................................ 9 4. [305] Local, State and Federal Laws ...................................................................... 9 5. [306] Anti-Discrimination During Rehabilitation .................................................. 9 B. [307] Taxes, Assessments, Encumbrances and Liens................................................... 9 C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit............................... 9 CDC 1999-19 D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders.................... 10 [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation.................................................................................................... 10 E. [311] Right of Agency to Satisfy Other Liens on the Project..................................... 10 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS ......... 11 A. [401] Uses - Covenants Running with the Land......................................................... 11 B. [402] Maintenance of the HUD Units......................................................................... 11 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation............................................................................. 13 V. [500] GENERAL PROVISIONS...................................................................................... 13 1. [501] Termination and Breach.................................................................................... 13 2. [502] Notice ................................................................................................................ 14 3. [503] Conflicts ofInterest; Nonliabi1ity ..................................................................... 14 4. [504] Inspection of Books, Records and Reports ....................................................... 14 5. [505] Indemnification ................................................................................................ 15 VI. [600] SPECIAL PROVISIONS ........................................................................................ 15 1. [601] Submission of Documents to Agency for Approval......................................... 15 2. [602] Successors in Interest ........................................................................................ 15 VII. [700] ENTIRE AGREEMENT, WAIVERS ..................................................................... 15 VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCy........................... 16 [801] Time for Acceptance ............................................................................................... 16 EXHIBIT A - EXHIBIT B - EXHIBIT C - EXHIBIT D - EXHIBIT E EXHIBIT F Map of ARR Zone Current Household Income Listings For Qualified Homebuyers ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant HUD Escrow Documents (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents ARR Rehabilitation Standards for Each HUD Unit HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents CDC 1999-19 ACOUlSITION. REHABILITATION. & RESALE (ARR) P ARTICIP ATION AGREEMENT THIS AGREEMENT(the "Agreement") this 21 ST day of June, 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and RE Blewett Companies. Inc. (the "Participant"). Agency and Participant hereby agree as follows: RECITALS WHEREAS, Agency is a California Redevelopment Agency engaged in carrying out its public purposes, including, without limitation, increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City"); and WHEREAS, the U.S. Department of Housing & Urban Development (HUD) has designated that certain area within the City shown on the map attached hereto as Exhibit "A" as the Acquisition, Rehabilitation and Resale (ARR) Revitalization Zone (the "Zone"), and has granted the City exclusivity to purchase directly from HUD, certain single family dwelling units owned by HUD REO's (the "HUD Units") at a discount off the As Is Value of each such HUD Unit (the "ARR Program") which the Agency as administrator for the City under the ARR Program, shall concurrently transfer title to the HUD Unit to the Participant for rehabilitation and resale pursuant to the terms and conditions of this Agreement; and WHEREAS, the Agency has also been designated by the Mayor and Common Council as the administrator of the HOME Program (the National Affordable Housing Act of 1990) on behalf of the City, with specific intent to expand the supply of decent, safe, sanitary and affordable housing, within a City's jurisdiction; and WHEREAS, the Agency may use either federal HOME Program funds or State Redevelopment low and moderate income funds to financially assist qualified first-time homebuyers (herein "Qualified Homebuyer") in the acquisition of HUD Units purchased directly from the Participant; provided however that the value of the HUD Unit to be acquired by a Qualified Homebuyer for which the Agency may provide purchase money mortgage assistance under either the HOME Program or under the other affordable housing assistance programs of the Agency (herein "MAP Program") must have a value that does not exceed 95% of the area median purchase price; and WHEREAS, with respect to the HUD Units, Agency desires to implement the ARR Program pursuant to which: a. Agency would buy one or more HUD Units directly from HUD on condition that the Participant purchases each such HUD Unit from the Agency at the discounted price which HUD offers to the Agency; and 1 CDC 1999-19 b. The Participant shall promptly rehabilitate the HUD Unit in accordance with rehabilitation standards set forth herein, and thereupon sell the HUD Unit, to an eligible low or moderate income buyer (e.g., a Qualified Homebuyer) at affordable housing costs pursuant to State or Federal requirements, depending on the source of funding (i.e., if Qualified Homebuyer uses HOME funds their income shall not exceed 80% of median income and State Redevelopment Low/Moderate Income Funds shall not exceed 120% of median income); and c. Prior to purchasing a HUD Unit from Agency, Participant shall provide satisfactory evidence to the Agency of all financing which shall include all costs associated with the acquisition, rehabilitation and disposition of the HUD Unit by the Participant. Based on receipt of such evidence of financing, the Agency shall accept or reject any offer received from the Participant to acquire a HUD Unit. The Participant shall complete the steps noted in Exhibit "C", attached hereto and incorporated herein by reference with respect to its acquisition and disposition of each HUD Unit to a Qualified Homebuyer; and d. If the Agency accepts any offer from Participant to purchase a HUD Unit, the Agency and Participant will open escrows (the "HUD Escrow") which shall close concurrently such that the escrow by which HUD shall transfer a HUD Unit to the Agency shall close concurrently with the escrow through which the Agency shall transfer that HUD Unit to the Participant; and e. Promptly after the closing of the HUD Escrow, the Participant will rehabilitate the HUD Unit within the timeframe herein, and sell it at affordable costs (the "Affordable Housing Costs") to a person or family of low or moderate income for owner occupancy purposes at the close of an escrow by and between the Participant and the Qualified Homebuyer (the "New Home Escrow"). The maximum income criteria applicable to a Qualified Homebuyer will be based on the type of financial assistance, if any, which the Agency provides to the respective Qualified Homebuyer at the close of a New Home Escrow (i.e., State Redevelopment Low/Moderate Income Funds up to 120% of median income or HOME Funds up to 80% of median income). The current 1999 Income Limits are noted in Exhibit "B". WHEREAS, Participant is a well established housing provider that has the experience, qualifications and desires to participate in the above described ARR Program. NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, Agency and Participant agree as follows: I. [100] SUBJECT OF AGREEMENT A. [101] Purpose of Agreement The purpose of this Agreement is to effectuate various redevelopment plans for the City of San Bernardino (the "City"), by providing for Agency assistance to Participant in connection with 2 CDe 1999-19 the acquisition, rehabilitation and disposition of the HUD Units hereinafter set forth. The acquisition, rehabilitation and resale of the HUD Units pursuant to this Agreement is in the vital and best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting on behalf of the Agency, has determined that the acquisition, rehabilitation, resale and uses contemplated by this Agreement will benefit the low-and moderate- income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Program and the goals and objectives of the affordable housing programs of the Agency. B. [102] The HUD Units Each HUD Unit shall be located within the Zone and shall be designated from time to time by the Agency. Each of the HUD Units shall be pre-approved by the Agency and identified on a list in writing, as available for transfer to the Participant subject to the terms of this Agreement. No HUD Unit shall be transferred to the Participant unless the Participant has submitted a timely and complete acceptance to purchase such HUD Unit to the Agency, as set forth herein. It is the express intent of the parties hereto that the Participant will attempt to acquire those HUD Units within the Zone which evidence the highest degrees of blight, are most in need of redevelopment, and are financially feasible. The Agency's purchase approval of each HUD Unit will be based upon compliance with this intent. C. [103] Parties to the Agreement 1. [104] The Agencv The Agency is a public body, corporate and politic, exerclSlng governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et seq.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [105] The Participant The Participant is licensed to do business in the State of California. The principal office and mailing address of the Participant for purposes of this Agreement is: 3 CDe 1999-19 3. [106] Prohibition Against Change in Ownership. Management and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure for the benefit of the Agency. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 106 shall terminate with respect to each HUD Unit at the close of the New Home Escrow for that particular HUD Unit. Nothing in this Section 106 shall act to restrict the sale of rehabilitated HUD Units to Qualified Homebuyers if such sale is otherwise in compliance with the terms of this Agreement. 4. [107] Benefits ofProiect The Agency has determined that the purchase, rehabilitation and sale of HUD Units in accordance with this Agreement will eliminate blight, provide needed low- and moderate-income housing to the various project areas of the Agency, as well as the City and also increase homeownership opportunities for low- to moderate income households thereby stabilizing the community and decreasing rental housing in the City. II. [200] AGENCY ASSISTANCE A. [201] The Proiect The Agency agrees that with regard to any HUD Unit that it has approved in writing, and which the Participant has agreed to purchase as evidenced by the completed form of a "HUD Unit Purchase Agreement" in the form included in Exhibit "D", that the Agency shall, subject to the terms and conditions of this Agreement, acquire the HUD Unit from HUD and shall thereafter immediately transfer title to the Participant through the HUD Escrow. 4 CDC 1999-19 The Project, and specifically the Agency's obligation to acquire any HUD Unit, shall only arise to the extent funds are available from the Participant (or the "Participant's Lender" as hereinafter defined), to provide for the acquisition, rehabilitation and resale of the HUD Unit by the Participant at the close of the HUD Escrow. Moreover, the Agency shall only offer to transfer HUD Units to the Participant to the extent that the Agency, in its sole discretion, deems that the purchase price, associated rehabilitation and disposition costs are fair, equitable, comparable and that the Participant has funds sufficient to close the HUD Escrow and thereafter to complete the rehabilitation of the HUD Unit. B. [202] Agencv Assistance In order to assist in the implementation of the Project and marketability of the Project, the Agency agrees to provide certain Agency assistance (the "Agency Assistance") as follows: (i) provide for the concurrent transfer of each HUD Unit which the Participant may agree to acquire as evidenced by a completed HUD Unit Purchase Agreement; provided however that purchase price for each HUD Unit and all escrow costs in connection with the HUD Escrow for that particular HUD Unit shall be payable solely by the Participant; and (ii) in addition to acquiring and thereafter immediately transferring title to any given HUD Unit to the Participant, the Agency may provide on a first come-first served basis to any Qualified Homebuyer certain down payment and closing costs, not to exceed ten percent (10%) of the Participant's sales price of the HUD Unit being sold, from either available funds of the Agency under the HOME Program or the Agency MAP Program, as applicable. C. [203] Term of Agreement The term of the Agreement shall be one (1) year from the date of this Agreement and ending June 30, 2000, except as set forth in Section 501. The Executive Director of the Agency (the "Director") shall have the option to renew this Agreement for an additional one (1) year period provided Participant is in compliance with the provisions of this Agreement. D. [204] Participant Assistance The Participant will select HUD Units based upon a list of available HUD Units prepared from time to time by the Agency. The Participant shall be solely responsible for obtaining all information in connection with the proposed acquisition and rehabilitation of each HUD Unit. Participant will take all action necessary to ensure the availability of funding for the acquisition, rehabilitation and resale of each HUD Unit prior to submitting any offer to purchase to the Agency and shall provide evidence to the Agency of such financing at the time it delivers a completed HUD Unit Purchase Agreement to the Agency (see Exhibit "D"). Participant will be responsible for the preparation and submission of all necessary paperwork required in connection with the acquisition of each HUD Unit (i.e., all of the HUD Escrow documents as assembled in Exhibit "D") and all other necessary documentation required for the close of escrow for any HUD Unit to be purchased by Participant from the Agency. Participant shall have not more than seven (7) days from receipt of the HUD listing from the Agency to select any HUD Unit for purchase and return 5 CDC 1999-19 the HUD Unit Purchase Agreement for such HUD Unit to the Agency as executed by the Participant. The Participant shall cause each HUD Escrow to be closed within forty-five (45) days from the date of execution of the HUD Unit Purchase Agreement and the other HUD Escrow documents by the Participant. No extension of time for the close of a HUD Escrow will be granted by the Agency and if a HUD Escrow does not close within the forty-five (45) day period after the HUD Unit Purchase Agreement has been fully executed for any reason not attributed to the fault or delay ofHUD or the Agency, then in such event this Agreement will be subject to termination. The Participant agrees that upon its acquisition of each HUD Unit from by the Agency, the Participant shall promptly commence and thereafter diligently complete the rehabilitation of the HUD Unit. Unless a longer period of time is approved by the Agency in its sole discretion at the time of the submission of the Participant acceptance of an offer to purchase a HUD Unit, the Participant shall complete the work of rehabilitation of each such HUD Unit within ninety (90) days following the close of the HUD Escrow. (i) Scope of Rehabilitation - The Participant shall rehabilitate all HUD Units acquired from the Agency in accordance with the ARR Rehabilitation Standards noted in Exhibit "E". Furthermore, the Participant shall prepare a Scope of Rehabilitation for each HUD Unit setting forth in detail the work that Participant agrees to perform on each HUD Unit purchased by Participant. The Scope of Rehabilitation shall be submitted by the Participant to the Agency concurrently with the executed HUD Unit Purchase Agreement and related HUD Escrow documents. (ii) HOME Program or Agencv MAP Program Assistance to Oualified Homebuver - All HUD Units acquired and rehabilitated under the ARR Program, wherein the Qualified Homebuyer has applied for either HOME Program or Agency MAP Program assistance, will be reserved for sale to and occupancy by low- and moderate-income households, to be sold at affordable housing cost as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, or Part 92 HOME Investment Partnerships Subpart 7. (92.206), which requires that the value of the HOME assisted property to be acquired by the Qualified Homebuyer must have a value that does not exceed 95% of the area median purchase price of the HUD Unit, whichever funding source is used for the Participant's Qualified Homebuyer. (iii) Disposition of HUD Units and Qualified Homebuyer Eligibility - The Participant will cause the marketing of each HUD Unit to prospective purchasers. Participant will screen prospective purchasers for eligibility in accordance with this Agreement, specifically to insure that Buyer meets the applicable HOME Program and/or Agency MAP Program Income Guidelines in accordance with Exhibit "B". Participant shall cause the opening of a New Home Escrow with prospective purchasers and will take all steps necessary to ensure each New Home Escrow is closed within forty-five (45) days from the date of its opening. At the close of the New Home Escrow, the ARR Covenant shall be fully executed and filed for recordation. The form of the ARR Covenant is included in Exhibit "D". 6 CDe 1999-19 E. [205] HUD Escrow The Participant is under no obligation to purchase any HUD Unit from the Agency and the Agency is under no obligation to transfer any HUD Unit to the Participant unless the Participant has first completed a HUD Unit Purchase Agreement for the particular HUD Unit as identified on a list of HUD Units as submitted by the Agency to the Participant. The parties will open simultaneous escrows (e.g., the HUD Escrow) to provide the acquisition by the Agency of each specific HUD Unit which the Participant has agreed to purchase from the Agency. The parties shall execute the escrow instructions and documents as set forth in Exhibit "D" as may be necessary to accomplish the foregoing. F. [206] Affordable Housing Cost For the purposes of complying with this Agreement, all HUD Units shall be sold to low- and moderate-income households (e.g., Qualified Homebuyers) at affordable housing costs as such term is defined in Health and Safety Code Section 50052.5, or Section 8, (24 CFR 813), whichever is applicable to the Qualified Homebuyer's HOME Program or Agency MAP Program assistance, if any. The Participant agrees to be bound by all limitations for Qualified Homebuyers as set forth and in each Agency Quitclaim Deed for a HUD Unit. The form of the Agency Quitclaim Deed is included in Exhibit "D". The Participant shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency by a date no later than forty-five (45) days following the opening of the New Home Escrow, including but not limited to the HOME Program or Agency MAP Program Checklist, Verification for Applicant Eligibility, First-Time Homebuyer Disclosure Statement, Application Affidavit as applicable under the HOME Program or the Agency MAP Program as included in Exhibit "F". III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS A. [301] Rehabilitation by Participant Participant and Agency agree that the central purpose of this Agreement it to provide for quality rehabilitation of each HUD Unit purchased from the Agency in a manner consistent with the terms and standards of this Agreement. Each HUD Unit acquired by the Participant shall be rehabilitated in accordance with the rehabilitation standards noted in Exhibit "E", attached hereto and incorporated herein. With respect to each HUD Unit, the Agency shall approve in writing all specifications, and plans, if any, including but not limited to landscaping plans, designs, and specifications of each HUD Unit to be rehabilitated as well as the proposed Marketing Plan for each HUD Unit prior to the commitment of the Agency to acquire any HUD Unit pursuant to a HUD Unit Purchase Agreement. Such approval of the Agency shall be evidenced by the Director in his/her reasonable discretion as consistent with the goals and objectives of the ARR Program, or his/her designee. 7 CDC 1999-19 1. [302] Cost of Rehabilitation The cost of undertaking the Project, including the costs of acqulSltlOn, rehabilitation, marketing and sales of each HUD Unit shall be borne solely by Participant. The Agency shall have no obligation to pay for any cost of the Project. The Participant acknowledges and agrees that the profit, if any, to be made by Participant from the disposition of each HUD Unit to a Qualified Homebuyer shall be limited to no more than fifteen percent (15%) of the gross sales price at the time resale of each such HUD Unit after rehabilitation to a Qualified Homebuyer. 2. [303] Bodily Injury and Property Damage Insurance Participant shall indemnify defend and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency as additional insureds for claims for damages arising from the Project. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on any HUD Unit or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 8 CDC 1999-19 3. [304] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City as designated by the Director shall have the right of access to each HUD Unit, without charge or fee, at normal construction hours during the period of work for the purposes of the inspection of the work being performed in constructing the rehabilitation on the HUD Unit. The Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 304 resulting from the gross negligence or willful misconduct of the City or Agency while on the HUD Unit. This Section 304 shall not be deemed to diminish or limit any right which the City or Agency may have by operation of law irrespective of the Agreement. Nothing in this Section 304 shall be deemed to make either the City or the Agency a guarantor of the work of rehabilitation or improvement of any HUD Unit. 4. [305] Local. State and Federal Laws Participant shall carry out the Project and all related activities on any HUD Unit in conformity with all applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. 5. [306] Anti-Discrimination During Rehabilitation Participant, for itself and successors and assigns, agrees that in the rehabilitation of the HUD Unit provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [307] Taxes. Assessments. Encumbrances and Liens Prior to the issuance of a Certificate of Occupancy for any HUD Unit, Participant shall not place or allow to be placed on such HUD Unit any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on a HUD Unit, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to a Qualified Homebuyer. C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit 1. Prior to the recordation of a Certificate of Completion by the Participant for a HUD Unit, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of any HUD Unit. This prohibition shall not be deemed to prevent a transfer of a 9 CDC 1999-19 HUD Unit to a Qualified Homebuyer or the granting of temporary or permanent easements or permits to facilitate the rehabilitation of the Project. 2. Upon obtaining a Certificate of Occupancy from the City for a completed rehabilitation of a HUD Unit, the Participant shall sell such HUD Unit to a Qualified Homebuyer in accordance with and subject to the restrictions set forth in this Agreement. 3. The deed or other instrument of transfer by the Participant to any purchasers of the HUD Unit shall require that the unit be owner occupied by persons living in the units as their principal residences and shall further require that such unit shall remain available at affordable housing costs to the families of low- and moderate-income for a period of not less than ten (10) years subject to any other exceptions as may be provided by the Agency. 4. The Participant may not rent or lease any HUD Unit to a third party and during the time that the Participant may hold title to a HUD Unit, no person may use the HUD Unit for any residential dwelling purpose. D. [309] Mortgage. Deed of Trust. Sale and Financing; Rights of Holders [310] No Encumbrances Except Mortgages. Deeds of Trust or Sale for Rehabilitation Mortgages, deeds of trust other encumbrances of each HUD Unit are to be permitted before completion of the rehabilitation of a HUD Unit but only for the purpose of securing loans of funds to be used by the Participant for financing the acquisition or rehabilitation of improvements on the HUD Unit. Participant shall not enter into any other conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar lending institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 310, executed by the Director. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. E. [311] Right of Agencv to Satisfy Other Liens on the Proiect Prior to the completion of the rehabilitation on any given HUD Unit, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on a HUD Unit which are not otherwise permitted under this Agreement, Agency shall have the right, but not the obligation, to satisfy any such lien or encumbrance. 10 CDC 1999-19 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS A. [401] Uses - Covenants Running with the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to any HUD Unit, that for the period of time set forth in the Agency Quitclaim Deed, each of the HUD Units acquired by Participant shall be devoted to and available for sale solely to persons or families with an income which are very low, low and moderate, as those terms are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "C", or 24 CFR 813 whichever funding source is applicable to the Participant's prospective Qualified Homebuyer for the HUD Unit. The Participant further covenants and warrants that Participant shall undertake the rehabilitation on the HUD Units in accordance with the standards set forth in this Agreement. Participant covenants to obtain all necessary permits and rehabilitate each HUD Unit in conformity with all applicable laws. Failure to obtain all necessary permits shall be a default under this Agreement. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any HUD Unit, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sub lessees or vendees of any of the HUD Units. The foregoing covenants shall run with the land. These covenants shall be expressly incorporated in the Quitclaim Deed from the Agency to the Participant. B. [402] Maintenance of the HUD Units Maintenance Condition of Each HUD Unit. Between the date of the close of each HUD Escrow and the date ofthe close of the New Home Escrow for each such HUD Unit the Participant for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of each HUD Unit which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of close of a HUD Escrow, there is an occurrence of an adverse condition on any area of a HUD Unit which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as 11 CDe 1999-19 identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Participant has failed to comply with the provision of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the HUD Unit and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HUD Unit authorized by this Section shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in Subsection( c), below. (b) Graffiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or improvement on a HUD Unit which is visible from any public right-of-way adjacent or contiguous to the HUD Unit, shall be removed by the Participant by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HUD Unit and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HUD Unit authorized by this Subsection(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HUD Unit. Ifthe amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection( c ),below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HUD Unit, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably necessary to restore the HUD Unit to the maintenance standard required under Subsection(a) or Subsection(b), including attorneys fees and costs of the Office of Agency Counsel (including salaries and wages of the legal staff and pursuant of this Office of Agency Counsel) as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section, shall be a covenant running with the land, and each HUD Unit, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section shall be deemed to preclude the Participant from making any alteration, addition, or other change to any structure or improvement or landscaping on the HUD Unit, provided that such changes comply with applicable zoning and building regulations of the City. 12 CDC 1999-19 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement with respect to each Participant HUD Unit shall remain in effect for the term as set forth in the Agency Quitclaim Deed. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PROVISIONS 1. [501] Termination and Breach (a) Termination Without Default or Breach. This Agreement may be terminated for the convenience of by either party who is not then in default upon thirty (30) days notice to the other party; provided however, that for any HUD Unit for which a HUD Escrow is then open, such HUD Escrow transaction shall be closed and the HUD Unit shall thereafter be rehabilitated and offered for resale to a Qualified Homebuyer as set forth in this Agreement. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or 13 CDC 1999-19 more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary . 2. [502] Notice Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party under this Agreement shall be in writing and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as follows: Participant: Russell Blewett RE Blewett Companies, Inc. 2305 Redding Way Upland, California 91784 Agency: Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 92401 3. [503] Conflicts ofInterest: Nonliabilitv No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participate, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. 4. [504] Inspection of Books, Records and Reports Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to any HUD Unit as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to any HUD Unit as pertinent to the purposes of the Agreement. 14 CDe 1999-19 The Participant shall provide quarterly reports to the Agency regarding all HUD units acquired and sold under this Agreement. 5. [505] Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the Agency's and the City's members, officials, employees and agents from and against any and all claims or liability arising from Participant's actions under this Agreement or from the conduct of Participant's business or from any activity, work or things done, permitted or suffered by Participant and shall further indemnify and hold harmless the Agency and City and their officers, employees and agents from and against any and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this Agreement arising from any negligent or wrongful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to environmental conditions, that may arise as a result of the Agency's acquisition and/or ownership of any HUD Unit that is the subject of the Agreement. VI. [600] SPECIAL PROVISIONS 1. [601] Submission of Documents to Agencv for Approval Whenever this Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 2. [602] Successors in Interest The terms, covenants, conditions and restriction of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. VII. [700] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Exhibit "A" through Exhibit "F", which together with this Agreement constitute the entire understanding and agreement of the parties. 15 CDe 1999-19 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city statues, or it is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this agreement shall not be affected thereby. All waivers of the provisions of this Agreement must be in writing by the Director of the Agency or the Participant, and all amendments thereto must be in writing by the Director of the Agency or the Participant, except that the Director may only agree to non-substantive changes hereto with concurrence by Agency Special Counsel. Substantial changes to this Agreement shall require the prior approval of the governing body of the Agency. Each individual signing below represents and warrants that he or she has the authority to execute this Agreement on behalf of and bind the party helshe purports to represent. VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [801] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Director as evidenced by the date first above shown. IIII IIII IIII IIII IIII //1/ 16 CDC 1999-19 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. Approved as to Form: By: "AGENCY" Redevelopment Agency of the City of San Be~ardino /~ G an asdel, ecutive Director "PARTICIPANT" By: Title: By: Title: By: Title: 17 ~ E /J/e/t)t!l{~1},W;$7- ~.J/'v~ /.) { /41-' 4(1) t J/llllr 1~ t ?/Ireri CDC 1999-19 EXHIBIT "A" 1999 ARR AGREEMENT "Map of ARR Zone" ! CDC 1999-LWf (1 I: / IJ,WiIO o <'> 1ll11S\lWi\lV /' .~~0 l';.l.l.\. -v.'\\'\ .., _00___-1.>/ ~ <?" ,. :r ~ ~ ::i '-ooJ 2! ~ !!! E -I .?;- o .?;- U !!! c: - -E E -~ en E ~ Cl o .... 0.. 0.. <( ~ cd a:: II: <( .?;- u c: -E := ctf CD .... ctf >- 'E :J o o nn uU j~\ i ~ ;- ~ "-\ 'S'I'"\I"'" ~:I: ~ I-~ a:= og zg. ::0 - U) E ctS ~ (/10) (1) 0 gc~ -00.. "ENa.. ~c- '-0- ID ._ ~ co.... cCiJ"O ro .~ C (/)cuctS o:!::a: >.>0:: ;::(1)< 00:_ CDe 1999-19 EXHIBIT "B" 1999 ARR AGREEMENT "Current Household Income Listings for Qualified Homebuyers" CDe 1999-19 EXHIBIT "B" 1999 Income Limits Income HOUSEHOLD SIZE Level I 2 3 4 5 6 7 8 Very Low $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 (50%) Lower. $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 (80%) Median $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 (100%) Moderate** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 (120%) * If Participant's Buyer is using HOME Federal Funds the Maximum Annual Income a family can earn is 80% of median income according to household size. ** If Participant's Buyer is using State Low/Moderate Income Housing Funds the maximum annual income a family can earn is 120% of median income according to household size. P:\Fonns\A.RR ProgramlARR II/come Limib.doc CDe 1999-19 EXHIBIT "C" 1999 ARR AGREEMENT "ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant" CDe 1999-19 ECONOMIC DEVELOPMENT AGENCY CITY OF SAN BERNARDINO "Acquisition Check List" o COpy OF HUD SALES CONTRACT (Land Use & Part A-D) o REQUEST FOR PROPERTY INSPECTION ANALYSIS FORM To be executed and returned to EDA five (5) days from the date of list of properties is provided to participant D COPY OF ESCROW INSTRUCTIONS (HUD TO EDA) D COPY OF ESCROW INSTRUCTIONS (EDA TO PARTICIPANT) D PARTICIPANT CONSTRUCTION/REHABILITATION WORK WRITE UP TO EDA INSPECTOR D PRELIMINARY TITLE REPORT D (2) SETS OF ESCROW INSTRUCTIONS TO SIGN AND RETURN EXHIBIT "1" \\EOA.-SAN 8ERDO\PUBUC\fonns\AAR Progrilm\AAR Process.doc ~7199 3 CDe 1999-19 Economic Development Agency City of San Bernardino ACQUIsmON, REHABILITATION & RESALE PROGRAM (ARR) ARR PROCESS A. Exclusive Sales 1. EDA will receive weekly (Thursday evening) an exclusive list from HUD of units available within the Revitalization Zone. 2. EDA will distribute exclusive list to Participant no later than Friday A.M., following receipt of Thursday's list. 3. EDA has seven (7) days from receipt of list in which to express interest in any property. Thus, Participant will notify EDA within five (5) days (Tuesday, 5:00 p.m.) of receipt of list from EDA interest in property. 4. On fifth day, Participant will submit to EDA: (1) Request for Property & Inspection Analysis form. (2) HUD Sales Contract and attachments for signature by EDA staff. S. EDA will notify Participant by ih day (Thursday, noon), when documents are ready for pick-up. B. Direct Sales 1. Tuesday evenings HUD list properties on the Internet (Direct Sales Internet Lottery Process) 2. EDA approved Participants must express interest to purchase properties by 3PM Friday (3 days after HUD's posting of Direct Sales List). Participant must perform due diligence of properties (completed property and inspection form). 3. Participant must retain HUD lottery number/confirmation number of transmission. HUD will select winner by Wednesday evening (1 week after posting Direct Sales List). 4. List of winner will be posted Wednesday evening. Participant should check this list promptly to verify whether they are the winner of the property. 1 CDC 1999-19 5. Upon verification of HUD winning lottery number, Participant will have until end of business day on Friday (2 days after HUD posts winners) to deliver a complete sales package to EDA include: - HUD Sales Contract (Original) (Include HUD Addendum A-D - HUD Land Use Restriction Addendum - Request for Property Inspection Analysis Form 6. EDA will review and execute sales package by 12:00 p.m., Monday. Participant to pick up Monday and overnight complete executed sales package to: Golden Feather, C/O Tammy Massone, 225 East Airport Drive, Suite 100, San Bernardino, California 92408, (909) 890-2370, (909) 890-3831 FAX. 7. Close of Escrow - HUD executes contracts and opens escrow at Arrowhead Escrow, 935 South Mt. Vernon, Suite 106, Colton, California 92324. (45 day maximum for closing) c. General Notes 1. Important - EDA purchases property under the name of "The Redeveloment Agency of the City of San Bernardino, a public body, corporate and politic." Therefore, all HUD contracts and documents must reflect this entity. 2. EDA's purchase is funded by Participants private lender or other funding sources with a concurrent escrow to close from EDA to the Contractor. (EDA does not provide a1!Y funding for HUD purchases or rehabilitation). 3. . After close of escrow from EDA to ARR Participant, Contractor performs rehabilitation on house per the original construction work write-up and markets property for sale. Contractor is responsible for obtaining permits with building and safety for all repairs to the house. 4. EDA Inspector performs a final inspection of the property (after rehabilitation in accordance with "Contractor Construction Work Write-up") to insure all work is completed as per these specifications. 5. Assuming the buyer has been qualified and pre-approved for the Mortgage Assistance Program (MAP), by the primary lender and EDA, and a final inspection has been performed by EDA Inspector, EDA will issue a check and fund the MAP for the buyer. P:\Forms\ARR Program\ARR Process.doc (Revised 7/99) 2 CDC 1999-19 EXHIBIT "2" Economic Development Agency City of San Bernardino "Request for Property and Inspection Analysis Form" (to be submitted by Partidpant to EDA with HUD Sales Contract and Attachments) " ,+' .". I. ,', Particioant Infonnation" ',.". '.., ....", ,'C' Date Submitted to EDA: ARR Contractor: Contact: Phone Number: ':p,''',!'.:',>" '0,> CC' " " II.' Prooertvlnfoimation'" '>!"4'':'~ HUD Case #: Status: 0 Uninsured 0 Insured Check Approximate Location in Revitalization Zone (See Map - Exhibit "AU). Property Address: City/Zip: Bedrooms: Bath(s): Total Sq. Ft. Estimated Costs Actual Costs HUD SALES PRICE $ $ ELECTRONIC BID PRICE (IF APPLICABLE) $ $ HUD DISCOUNT PRICE $ $ REHABILITATION COSTS (L & M) $ $ PARTIOPANTS OVERHEAD $ $ TOTAL PROJECT COSTS $ $ ARR SALES PRICE $ $ ARR PARTIOPANT PROFIT $ $ % Profit (Maximum profit is 15% of Total Project Costs) Amount of Loan for Property (Acquisition & Rehabilitation Loan) ARR Participant Lender: Address: Phone Number: ;~;"" .' III. BUYER INFORMATION 7.".." --c Buyer(s) Name: Family Size: Annual Gross Income: MAP Loan: (Not Buyer's Participant to exceed 10% of Contribution: $ Purchase Price) $ (Minimum of $500) $ Contribution: Closing Date Lender Name/Contact Lender Address: City: Lender Phone: Lender Fax: Please check Appropriate Categories: Sr. Gtizen(S) 62 Or Older 0 Female Head of Household 0 Disabled Family Member 0 Hispanic 0 White 0 Asian or Padtic Islander 0 American Indian 0 Black 0 I OFACE USE ONLY: % of Median = I ARR Participant Signature EDA Representative Signature Date EDA Review Contract/Inspection Fonn/Date EDNPre-Acquisition Inspection Signature/Date EDNPost-Acquisition Inspection Signature/Date \\fDA._SAN BEROO\puBUC\Forms\AAR ProgRlm\AAR Pnxess.doc (Revt5ed 7/99) 4 CDC 1999-19 EXHIBIT "D" 1999 ARR AGREEMENT HUD Escrow Documents: (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (ill) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents CDC 1999-19 l:.S. DEPT. OF I10l'SI\C 8.: URBAl\ DE\TLOP\IE\T Addendum A (RE\'41<)9) .........FORFEITURE :\\0 EXTENSION POLiCy......... Allll\:[) I'r"p~rt\ DhpOSlllOIl sales of lit '[) a,clUICnll'I";'c'!lI~' ar~ to clos~ wlthlll.j~ dJ\' 01 a':ceplJllc'c' ,d a 1II'[),')'4S (1 99) Salo COlllra,1 offn to purchas~ Forfeiture of EJrlle,{ \lollcy Deposit', Th~ fallur~ b~ a l'urchJ,er to c1os~ on the ,ale of propc'n:- w i1hllllhe allowable tlln~ perruJ, IIlLllI,LII~ JIl~ ~\lc'I"IOIl' ~rallll'J b~ Ill;U. will re,ult III Ih~ forfctlure of the eame,t C1I01le:, l:C'I"','L ocept w here th~ purchas~r presellh .IOdlll\l'lIl.111,)f1 10 lit 'D Ihal ,)flc' of the special clfeumstances descrlbeJ \l1 pJrJ~rJplh (a I alld (bl below of thiS seCllOIl Ius uccurred (a) IllcestOr l'urdlJSerS (Ii The faIlure by an In\estor l'urchJser to close 011 JIl ulllnsured sale "tll result III forfeiture of th~ ellllre eamestlllon~~ d~pOSIL (21 Flft)' percent of th~ earnest mone\' d~poslt Oil an ll1>ured sale will be returned to an In\'~st()[ PurchJser where III.'D (or a DrreCl Endorsrmentlender USlll~ 11\ '[) gUIJellllesJ dct~rrntlles that the Purchaser IS ll,lI Jll JcceptJble borrower (bl (I) Owner-OccupJnt PurchJsers The elltlre omest money depOSit w III be retur:,~d to an ow ller-occupJnt Purchaser w h,) fall, to clo,e w h~tc', SIIlC~ thc (ontrJe[ of SJk WJS SIgned 1 here has b~ell J deJth \l1 th~ Imllll'lllJt~ LUll:i:. ICl'llttact holde!, spous~, or chtldr~1l b\ 11l~ Illthl' salll~ h,'usdIO!,II, (II (II) Illt're hJS bl'~1l J recellt S~[\OUS IIln~,s ICI tlt~ Imllll'JIJt~ fJllllly that hJS re,ulted \l1 sl~lllflCJIlI m~dkal Op~IISl'S lIf subsl.IllllJllos<; of InCO\l1e, thus J,l\ n\el\' Jfk, :1I1~ tlt~ pUrcllJSer'S flnJnCIJI abtllt\ to CllhC Ihe SJk \1111 There hJ, be~n J loss of Job tn' on~ '1lthc' pl::"J:'\ l'rl'J.h'llllers, or SUhstJlltullllss uf 11\e',111l~ tll"''';l1 II>> fJul1 ,)f:!Il' l'urchJser, (\\) In th~ case ofJn Insur~d sale, Ill'D (llr a [lllc',! ['[l,I..,f\emcnt lender USlllg IlljD gUIJ~IIIIl'S) dt'l~nllJn~s tlUltk PurchJser IS not an ~cceptJble borr.)wC[, llf I . (,) f'or other gllOJ cause, as determlneJ b:. lilt' t'lc'l.lllft'"e (~I In the case oiJn uninsured loall whn~. despll~ g,H)t! fJlth efforts by the Purchaser. thele IS alllllJb1llt) to oblJln J mortg3ge 103n from a recognized mOrlgJgc kllder. 50 p~rcent of the earnest mOlley deposit" III be returned (31 On either typr of sale, forfeit 100 perccllt ul the deposll In those instances wh~re nll d,)ClHllClltJlItlll IS submllted, "hele the documelltJlIOll falls to pro\'ld~ JII acceplJble cause for the I3uyer's fatlure to close, or where dllcumentJtllln IS not pro' Idcd wllhln a reasonJble time flllhlWlll~ Cllntracl CJllcellallon (e g, 30 d3YS) Extensions. nle Golden FeJther Realty office w1l1 g!Jllt e\tclbltlllS of lime upon \Hlllen request from purchJser E\tenslons of tun~ tll clllSe thc ;;lle Jrc enllrcly wtth,n the Setler's dlScrclIllll An C\:~r1Slull. IfgrJnted, w1l1 be under the fllllllWIII~ cl1l1dltlons (~l A "rlll~1I r~qu~st for an extension nllhl h~ r,',"I\eJ b:- (,olden FeJther ReJlty no Ltlc'r thJn fl\e lb.s bct'.lf~ till' sell,'dull',1 deJt!IJn~ f'lf Cl"S\l1~ Ill) The d'JCumenlJtloll subllllllet! w lIh the rcqu,',l Im"t ~,1.1hhsh the CJuse lIf d~IJY Jilt! tlut morlgJ~c Jppro\ all\ Illunlll~1I1 dur\l1~ the e,\tenSlllll period (cl An e'lem!lll\ w1l1 be for a perrot! "I lit'lt't'll ,.l!~II.!.'ll\J:; Jt a fee l1fS37~ on (20,;f\. '0 dJ\'s, 57:'>0 (1)) rc~, ((cl1lflcd fUllds) w1l1 be d~pllSltl'{J \11 eser"" UI\T\ledlJ":;" up>>n JpPfl)\JI (d, I, '''llS!l1l1 f~e, sh.11I be retalrlt'd h :-;~lkl It .1 ::"S\l1g dl)C> Ilot uccur (~l :\\ th~ tUlIC lIf cl1bmg, unuseJ c't':II,I,1I1 It',', '.\ 1I11lt' prllrated to the l'urchJ,el ,md Il'IUII.kd by oelow (1'1 nle pJllllng ofollc' e\tc'r1SIOIl ,halllllll uhl:,'.lic.thc Seller III grant addltllln,d t'\le!hl<)fb, Jlld tl" Sellc'l >11.l1111e,bl~ a Ih.'f..luh for the Pur(hJ'lCf'l' Lllh:I'_' tll \..\thl" :::...' ').lk llr\\1\ tilt' t'\.I)lfJtll.\ll oftht' (lrl~lIull.:I'I'.1Il~ pctll)\\ or Uf'\ll\ L"\i'lf.\tH11l ,i! till'l',ll"hIIH1 CDC 1999-19 Allowable Closing Costs. The following closing costs with a combmed value of not more than 3% of line 3 of the 9548 (\199) Sales Contract may be credited to Line 5 of the Sales Contract Funds not consumed Will be credited to the Seller. I % Loan Oflgmation Fee Credit Report Impounds Interest lIazard Insurance Lenders Coverage Polley Owners Coverage Policy l'otary Taxes (Current tax year) HOA Dues (Current month plus one) AUTO~IA TICALL Y PAID BY HCD (/lot Included o/lli/le 3) Recordmg Fees - Deed and \Iortgage City/County Tax/Stamps Escro\\' Closing Fee \\'ne Transfer Fee to \\'ashmgton, DC. HUD Case ~o. Property Address: CllY' Seller Disclosure. Seller makes no representations or warranties concerning the condition of the property, Includmg but notllnllted to mechamcal systems, dry basement. foundation, structural. or compliance with code, zoning or build11lg requirements and will make no repairs to the property after execution of this contract purchaser understands that regardless of whether the property is being financed with an FHA-insured mortgage, Seller does not guarantee or warrant that the property is free of visible or hidden structural defects, temute damage, lead-based paint, or any other condition that may render the property uninhabitable or otherwise unusable. Purchaser acknowledges responsibility for taking such action as it believes necessary to sallsfy itself that the property IS in a condition acceptable to it, of laws, regulations and ordinances affecting the property, and agrees to accept the property in the condition existing on the date of this contract Seller disclosure concerning HOA dues, Mello Roos taxes, assessments, or any tax concerning HUD homes is based on available information but not deemed complete or accurate. It is the responsibility of the Buyer to obtain all information concerning these issues. \Valk-Thru Inspection. All purchasers are strongly encouraged to perform a walk through inspection PRIOR to the close of escrow. If a purchaser discovers a properly condition that did not exist at the time of sale they must immediately notify HUD's property manager, Golden Feather Realty. of the damage. The buyer assumes full responsibility for the property and its condition on the date of close of escro\\' The Department assumes no responsibility. and will make no settlement, for damages reported to HUD after the close of escrow (See item:l I3.E of BUD Sales Contract) Buyer Certification I we certify that!.\\e ha\'e been Inte['\lewed. completed a loan application, vCflfical10n of employments and obtamed a full credit n:porl from the lender thathas pro\lded the attached Letter of Commitment l.i\\'e understand that L'we Will forfeit our earnest money deposit If \\ center mto tillS contract \\ Ithllut completing this qualtfication proce.ss. SIgnatures (Purchaser) ( Purchaser) ( Purchaser) (Purchaser) CDC 1999-19 LAND USE RESTRICTION ADDENDUM Thi~ Addendum IS Incorporated by reference to rhe FHA Sales ContraCl tor the properry located a\ ..____, executed on lhis same day of , 199 between (Purch.l5er) and lhe Deparlmenl of HOUSIng and Urban Development (Seller) Unless an exceplion is ~rantcd In wrillng by the Sella' il The Purc",,,cr IS expected, al a minimum. to repair the properry according to local code, after which it shall resell the propcrry only tn a person who intends 10 occupy as his or her prinCIpal reSidence and whose income is al (II below 115 pcrcent of the median income in thc area, when adjusted for family Size, or a Slare, government entiry, rrioe, or agency thereof, or a pnllate nonprofit organization dS defincd in 24 CFR 291.405. b. The purchaser shall not resellt"e properry for an amount in excess of 110 pereenl of the nd dellelopment cost. Net developmen1 cost is the rotal cost of rhe rroJect, Including items such as acqulsilion COSI. archneclural fees, permits Hnd survey expenses, insuf"ilnce, rthabilitallon, and taxes It does not lI1c1ude a developer's fee. Tota) COSts incurred by rhe Purchaser, Including those for acquisition rlI11iIlcing, management, rehabilitation, and selling expenses, are cxpeclcd 10 be reasonable and customary for the area in which this prorerty I~ located. e The developer's fee provides for Purchaser's overhead ant! staffin~ costs related to the proJect, and may not exceed 10 percenl of Ihe net development cost d fhe properry may not be occupied hy or resold 10 any of Ihe Purchaser's officer.;, directors, elcctet! ur ~ppoinled of1lcia)s, employees, business associates. or to any individual who is related hy bll"od. marriag". or law to any oflhe abolle. e There may be no COnn,c! of "'Ierest with individuals or firms thai may provide acqUIsition or rehabilitatIon funding, managemenl or sales services, or other associated with the project. 2. Purchaser must provide periodic reports, as specified by 24 CFR 291.110 and in the fonnat and frequency specified by HUD, regarding Ihe purchase and resale of propcrtles subject 10 this Addendum. 3. n,is Addendum survilles the expiration, if any, by operation of law or othenvise, of the FHA Sales ConrraCl, and shall terminate five years from the date contained herein. Purchaser Witness Secretary of HousinlZ and Urban Development Seller Witness By' CDC 1999-19 LEAO-B.\SED PAI:-;T ADDE:-;Dl::-'I TO SALES CO:"iTRACT - PROPERTY BUILT BEFORE 1978 FilA CASE ~O PROPERTY ADDRESS A Tr ACIIMENT A Page 1 of 4 :\OTE TO PU{('II..\SERS. REAL EST'>' TE BROKERS A:"D AGE:"TS: 77"s addemlum u mandalOryfor any property budl before /978 and cans"'s offour parts Part A.Duclo"".e of In/ormailon on Lead.8ased PIlInl ami'or l.ead.Based I'aln! Ha:ards. Part B. Sales C onlract Lead Based I'ainr [,'aluallOn Conllngency. P/1'-/ C Oh"nt,,.-Occurnnl Ccrlljjeltllon. nnd Pari D. Purchaser's Addendum to lht' Salt's Conrracl - Release of Lead Basel! Palnl EHllLJallon Contingency. .~ll parts midi bt' evmplclt.'(( as shOh'n nlls Lt.'m/.Based Painl Atldt'ndum must be.' completed on or bt-!ore the date of ,he Sales Contract. and fon\'ardcd to /IUD with the Sales Con/ranfoT am prVp(.rt.l bl4l/J btfvre 1978 Sales Contrt1clj wltholJt thIS Addcndllnl Modi not bt' accepted by Jlt'D 77li! Adclem/um survives Ihe closing ofrhe salt! PART A D1SCLOSL'RE OF ISFOR.\IATIO,V ON LEAD-BASED PAI.\'T AND.OR LEAD BASED PAINT HAZ.JRDS LEAD "-AR:" t"\C ST..\ TE \1 F.:"T. Elcry purchaser of any interest In resull'nt/af real property 011 h h/cl1 cJ relldential /hn:lling "'"as bwlr prior to /97S IS notified illII: jll("h prol't'rl.\ f7!lH prt'St'n: l'.\pOSI4rt' to It'ad from lcad-based that may place YVf":g ,ht/dren at risk of dn'cloplng lead pOIJoning Lead poisoning in young chddrC'1I n:Il.\ prod"... p,'rn,,;n,'nl r..."rolog,,,,;1 dam,,);e. rncl"dtng learning dual"l",,'s. ,educed tnte!llgence quoller.r. behanoral proble",s. and ''''pO/red memory Lead pOlSon"'g ,,;;,) 1',,,,," .l p.".,,, ";.,, "". Iv p,,'gn.'nr "vmen 77ze seifer of <I,,} InlaeS/ln r<>,deoll.JI prop,'rr., /J ""<j'''mllO pro,,,k Ihe buyer" ilh any tnformailon on lead.ball.d pl1lnl hfl:OrtfsjronJ nsk aSSc!55tnl'nlJ or tnSpeClIons In the seller's P055i'sswn and nOllfy lht:' buyer of (lny kno....n It'ad-bast.:d palnl ha::arcis A nsk. assessment or inspcctu)nfor"p0551bh./t!i1ll- basf'd paint ha:ards is rt'commt~ndcd pnorto purchmt" SELLER'S DISCLOSl'RE A Presence of lead-based paint and/or lead-based paint hazards (check one below) Known lead-based paint andior lead-based pall1t hazards are present m the property (explalO): 2. Seller has no actual knowledge of lead-based pamt andOr lead-based paint hazards in the property 13. Records and reports available to the seller (check one below) Seller has pro\'ided the purchaser with all a,'ailable records and reports pertainmg to lead-based pamt andJor lead- based pamt hazards in the property (list documents below). 2 Selkr has no reports or records pertainmg to lead-based paint and'or lead-based paint hazards III the propeny PClKlL\SER'S ACK..'\OWLEDGEl\IENT (initial) C Purchaser has received copies of all infomlation listed abo"e. D. Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. L Purchaser has (check one below): 1. Requested a 15 day opportumty to conduct a risk assessment or Inspection for the presence of lead-based paint and or lead-based paint hazards; or 2. Waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and'or Iead- based paint hazards. BROKERlAGEi\T ACK..'\OWLEDGE:\IEi'<T (initial) F. Broker'agent has informed the seller of the seller's obligations under 42 use 4852d and is aware of his/her responsibility to ensure compliance. CERTIFICATIO:-; OF ACCCRACY The following partIes have reviewed the information above and cenlfy. to the best of their knowledge, that the infonnatlon they ha,'e provided is true and accurate. Seller Date Purchaser Date Purchaser Date 9!96 BrokeTAgenl Date CDe 1999-19 Attachment A Page 2 of 4 PART B SALES CO:'\TRACT LEAD-BASED PAI:'\T EVALUATION COI'<TINGENCY This contract is contingent upon a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-based paint hazards at the PurchJscr's expense until 12 noon on the 15th calendar day after acceptance, on [I nsert dJte] This contingency will tenninate at the abo\'e prcJctcrmincJ deadline unless the PurchJser or Purchaser's agent delivers to thc Seller or Seller's agent Part 0 of this addcndum listing the specific lead-based paint hazards and corrections nceded, together with a copy of the inspection and/or risk assessment report. The Seller may, at the Seller's option, within fi\'c days after delivery of Part 0 of this Addendum, elect in \vriting whether to correct the hazards(s) prior to settlcment. If the Seller will correct the hazard(s), the seller shall furnish the Purchaser with certification from a risk assessor or inspector demonstrating that the hazard(s) have been remedied before the date of the settlement. If the Seller does not elect to make repairs, or if the Seller makes a counter-offer, the Purchaser shall have five days to respond to the counter offer or remove this contingency and take the property in its "as is" condition or this contract shall become void. The Purchaser may remove this contingency at any time without clause. INTACT LEAD-BASED P AII\T TIIA T IS IN GOOD CONDITION IS NOT l\ECESSARlL Y A HAZARD. See EPA pamphlet Protect Your Family From Lcad ill Your Homc for more information. Lead-Based Paint Addendum to the Sales Contract - Property Budt Before 1978, includlOg Part A, Disclosure olin/Or/natIOn on Lead-Based Palnl and/or Lead Based Paint Ha:ards. Part C. 0" na-Occupant Cerllficatlon (if applicable), and Part D. Purchaser's Addo!ndum to rhe Sales Cot/lroCl _ Relo!ase 01 Lead-Bllsed ?Ulnt EmluotlOlI COlltlllgency. if applicable, must also be completed and made a part of this Sales Contract. 9/96 CDC 1999-19 Attachment ^ Page 3 of 4 PART C O\Vl\ER-OCCLPAi\T CERTIFlCA nO[\; TO BE CO\1PLETED BY ALL OWNER-OCCUPANT PURCHASERS ONL'r' Check and complete the following, as appropnate: _ IJwe do not ha\'c a chlld undcr the age of sc\-en years. Uwe do ha\'e a chIld under the age of se\'Cn years Their names and ages are as follows: Name Age Check only one of the following blocks if chi ldren under seven are indicated above: _ I/we understand that within IS days after acceptance by HVD of my/our offer to purchase, l/we will at my/our expense, have each of the abo\'e-named children tested for an elevated blood \evel (EBL) and that 1Iwe will provide these tests to HUD. IfVwe fail to provide the test results to HVD within thelS day time frame, the contract will be canceled immediately without further notice. Further, l/we understand that if an EBL condition is identified, Vwe have the option to: I) cancel this contract and receive our earnest money deposit back, or 2) complete the sale of the property within the understanding that l/\\e will, at a minimum, have the property tested for the presence of lead-based paint on all che\vable surfaces and, where lead-based paint on che\\ab1e surfaces is identified, ha\'e such paint surfaces abated. _ I/we fully understand that if a blood lead level screening program is not reasonably available or if l!we . refuse to have my/our child(ren) tested, l/".:e have the option of closing this sale. I/we hereby acknowledge that this property Uwe am/are purchasing from the Department of Housing and Urban Development may contain lead-based paint. However, despite this possibility, l/we elect to close the sale on this property. Further, l/\ve agree to hold HUD harmless for this action. Slgnarure of Purchaser Slgnarure of Purchaser Date Slgn;l\Ure of \Vitness Date 9 ')() CDC 1999-19 Attachment A Page 4 of 4 fAD BASED PAl:'\T ADDE:'\DC:\1 TO SALES CO:-:TRACT - PROPERTY BelL T BEFORE 1978 FilA CASE 1"0. PROPERTY ADDRESS: PART D PURCHASER'S ..IODESDU,\[ TO THE SALES CONTRACT- RELEASE OF LEAD-B~SED PAIST EVALUATlOi'.' CO.'vT/NCE."':Ci' l/purcllllSer JfIll1ulf!d ParI A. Ih'f1l E I ofr;'e LClld-B,ut'd PJwl Addendum Iv tl:e Sulcs CO/ltract - Propt!rtll'S Budt B(1;HI..' /978 (Addl'/I(lum), liltS ParI D must bt' complt>Il'd.:15 5hU~\f1 alld provided to the St'IIl" all or bt.fore the dulL' ShO\\11 in the Addendum, Pelrl B, or rhl..' COllllflgl'll(V 15 lCrllll1lJ,t'd ~r PUrdldst!f lflllw!ed Parl A, item E. 2 till'" tillS p(]rl D is WlfU!(('.lsary d!J.J lit'ed litH to /'It' (ompletcd or prO\-ldl'd IcJ lhe Sellt." PURCHASER'S ACK1\0\\LEDGEi\IE?'T (check appropriate boxes) [] Purchaser acknowledges that he/she has received a 15 day opportunity (or other mutually agreed upon pwod) to conduct a risk assessment or lead-based paint inspection for the presence of lead-based paint and/or lead-based paint hazards. that such a risk assessment or lead-based paint inspection has been made [ ] Purchaser acknowledges that Seller is under no obligation to correct any lead-based paint andor Iead- based paint hazards identified by the lead-based paint inspection and/or risk assessment and hereby removes the contingency and accepts the property In ItS "as is" conditIon. Without warranty, as described in item B, Conditions of Sale of the contract [ ] Purchaser requests that Seller take the following action to correct the lead-based paUlt hazards noted: Lead-Based Paintllazard Corrective Action Requested Purchaser has attached the risk assessment or inspection report. If Seller refuses this request, Purchaser reser.es the fight to contInue With the purcbJse or reque?t cancellation of the sales contract. [ ] Purchaser requests cancellation of the sales contraet due to the following defiCiencies indicated Ul the attached repoI1(s): CERTlFICATlO:'\ OF ACCURo\CY The follOWIng parties have reviewed the infomlation above and certify, to the best of their knowledge, that the informallon they have provided is true and accurate. Purchaser Date Purchaser Date Broker'Agent Date 9% .(. .:... CDe 1999-19 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of San Bernardino 201 North "EN Street, Suite 301 San Bernardino, CA 92401 Attn: Executive Director (Space Above Line Reserved For Use By Recorder) RECORDATION OF THIS INSTRUMENT IS EXEMPT FROM ALL FEES AND TAXES REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS FOR THE ARR PROGRAM (Name of Oualified Homebuyer) Dated as of , 200. ---ARR PROGRAM: [NAME OF DEVELOPER/PARTICIPANT]--- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ....T"!o,...,"/nrr.n1/rv'(""/~C,'.d ?wnrl CDe 1999-19 COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS (FOR THE ARR PROGRAM) THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS, (the "ARR Covenant") is made and entered into as of , 200_, by and among (the "ParticipantU), the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency"), and (the "Qualified Homebuyer"), and this ARR Covenant relates to the following facts set forthih Recitals. R E C I TAL S A. The Qualified Homebuyer proposes to acquire a single family residence (the "New Home"), located within the City of San Bernardino (the "City"), from the Participant, to be owned and occupied by the Qualified Homebuyer as their principal residence. The legal description of the New Home is attached hereto as Exhibit "AU and incorporated herein by this reference. B. The Agency has made this property on which the New Home is situated available to the Participant for the purposes as set forth under that certain Aquisition, Rehabilitation Resale (ARR) Agreement dated as of (the "ARR AgreementU) in order to make the New Home available for acquisition by the Qualified Homebuyer from the Participant subject to the terms and conditions of this ARR Covenant; and C. The terms of the ARR Agreement mandate that the acquisition, use and occupancy of the New Home shall be restricted in certain respects for the term as provided herein (the "Qualified Residence PeriodU) in order to ensure that the New Home will be used and occupied in accordance with the ARR Agreement and the affordable single family residential dwelling unit development goals and objectives of the Agency. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 1 CDC 1999-19 NOW, , THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, THE PARTICIPANT AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. Covenant, the following words and terms shall provided in the Recitals or in this Section 1 context of usage of a particular word or require: As used in this ARR have the meaning as unless the specific term may otherwise Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for family size) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167 (k) 3b) (3) under the Code, as adjusted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 50052.5. At the time of the close of the New Home Escrow, or later when a proposed Successor-In-Interest acquires the new home the amount of the maximum Affordable Housing Cost payable in connection with the acquisition of the New Home at any time during the Qualified Residence Period shall' be calculated as set forth in Health and Safety Code 50053.5 (b) (1) or (2), as applicable. Code. The word "Code" means the Internal Revenue Code of 1986, as amended, and any regulation, rulings or procedures with respect thereto. Delivery Date. The words "Deli very Date" mean the date of deli very of title and possession of the New Home from the Participant to the Qualified Homebuyer at the close of the New Home Escrow. Lower-Income Household The words "Lower Income Household" mean persons and families whose income does not exceed the qualifying limits for lower income families as established and amended form time to time pursuant to Section 8 of the United States Housing Act of SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 2 CDC 1999-19 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Sectretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjsuted for family size and revised annually. As used in this section, "area median incomeu means the median family income of a geographic area of the state. New Home. The words "New Homeu mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as rehabilitated and completed by the Participant and sold to the Qualified Homebuyer. New Home Escrow. The words "New Home Escrowu mean and refer to the real estate conveyance transaction or escrow by and between the Participant and the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In- Interest). The transfer of the New Home from the Participant to the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. Notice of Agency Concurrence. The words "Notice of Agency Concurrenceu mean and refer to the acknowledgment in recordable form in which the Agency confirms that the proposed Successor-In-Interest of the Qualified Homebuyer satisfies all of the Adjusted Family Income and other requirements of this ARR Covenant for occupancy of the New Home by the Successor- In-Interest at any time during the Qualified Residence Period. Qua1ified Homebuyer. The words "Qualified HomebuyerU mean the purchaser of the New Home from the Developer (e. g. : all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Homebuyer shall: (i) have an annual Adjusted Family Income which does not exceed the household income qualification limits of a Lower-Income Household: (ii) shall be a first- time homebuyer, as this term is defined in Health and Safety Code Section 50068.5; and (iii)pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, including all sums SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 3 CDe 1999-19 payable by the Qualified Homebuyer for mortgage financing, insurance, escrow costs. its purchase money and other fees and Qualified Residence Period. The words "Qualified Residence period" mean the period of time beginning on the Delivery Date and ending on the date which is ten (10) years after the Delivery Date. ARR Covenant. The words "ARR Covenant" mean these Redevelopment Agency of the City of San Bernardino Community Redevelopment Housing Affordability Covenants and Restrictions by. and among the Qualified Homebuyer, the Participant and the Agency pertaining to the New Home. Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person, family or household which may acquire the New Home from the Qualified Homebuyer at any time during the Qualified Residence Period by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a "first-time homebuyer" and shall have an income level for the twelve (12) months prior to the date on which the Successor- In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for a Lower-Income Household. Upon acquisition of the New Home the Successor- In-Interest shall be bound by each of the covenants, conditions and restrictions of this ARR Covenant. The titles and headings of the sections of this ARR Covenant have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict the meaning any of the terms or provisions hereof. Section 2. Acknowledgments and Representations of the Oualified Hornebuyer. The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery Date: (a) the total household income for the Qualified Homebuyer does not exceed the maximum amount permitted as Adjusted Family Income for a Lower-Income Household, adjusted for family size; (b) the Qualified Homebuyer intends to promptly occupy the New Home after the Delivery Date as the principal place of residence for a term of at least two (2) years following the Delivery Date and the Qualified Homebuyer has not entered into any arrangement and has no present intention to rent, sell, transfer or assign the New Home to any third party during the Qualified SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 4 CDC 1999-19 Residence Period so as to frustrate the purpose of this Section 33334.3 Covenant; (c) the Qualified Homebuyer has no present intention to lease or rent any room or sublet or rent a portion of the New Home to any relative of the Qualified Homebuyer or to any third person at any time during the Qualified Residence Period; (d) the sum payable each month by the Qualified Homebuyer following the close of the New Home Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Home does not exceed the Affordable Housing Cost for the household; (e) the Qualified Homebuyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax returns filed by all persons who reside in the New Home for the calendar year preceding the close of the New Home Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all person residing in the New Home at the close of the New Home Escrow; (f) The Qualified Homebuyer has been informed by the Participant that this ARR Covenant imposes certain restrictions on the use and occupancy of the New Home during the term of this Section ARR Covenant and that this ARR Covenant imposes certain restrictions. on the resale of the New Home during the Qualified Residence Period. The Qualified Homebuyer acknowledges and understands that these restrictions shall be applicable to the New Home and to any resale of the New Home from the Delivery Date to the end of the Qualified Residence Period which is , 201 Dated: Initials of Qualified Homebuyer Section 3. Covenant of the Qualified Homebuyer to Maintain Affordability of the New Home During the Qualified Residence Period and Covenant Relatina to Sale or Transfer of the New Home Durina the Qualified Residence Period to a Successor-In-Interest. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 5 CDC 1999-19 (a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the New Home shall be used and, occupied by the Qualified Homebuyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or for another Lower-Income Household as a Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as provided in this Section 3 to verify that each proposed Successor-In-Interest of the Qualified Homebuyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of a Lower- Income Household (based upon the Adjusted Family Income of each household), and that the completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the "Notice of Agency Concurrence" as provided in Section 3 (d) . (b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any interest therein) to a Successor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least sixty (60) days prior to the date on which the Qualified Homebuyer proposes to transfer title in the New Home to a Successor-In-Interest, the Qualified Homebuyer shall send a written notice to the Agency as provided in Section 17 of the intention of the Qualified Homebuyer to sell the New Home to a Successor~In-Interest which includes the following true and correct information: (i) name of the proposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); (ii) copies of State and federal income tax returns for the Successor-In-Interest for the calendar year preceding the year in which the notice of intention to sell the New Home is given to the Agency; (iii) resale price of the New Home payable by the Successor-In-Interest, including the terms of all purchase money mortgage financing to be assumed, SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 6 CDC 1999 -19 provided or obtained by the Successor-In- Interest, escrow costs and charges, realtor broker fees and all other resale costs or charges payable by either the Qualified Homebuyer or the Successor-In-Interest; (iv) name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Homebuyer to the Successor-In-Interest; (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such reference; and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c). (c) Within twenty (20) days following receipt of the notice of intention described in Section 3(b), the Agency shall provide the Qualified Homebuyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In- Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adjusted Family Income and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) has been provided to the Agency. In the event that the Agency may request additional information. relating to the. confirmation of.the matters described in Section 3(b), the Qualified Homebuyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Home, the Agency shall deliver a written acknowledgment and approval of the resale of the New Home to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3(b) (iv) above, and thereafter the Successor-In-Interest may acquire the New Home subject to the satisfaction of the following conditions: (i) the recordation of the Concurrence executed by the and the Agency at the close Notice of Agency Successor-In-Interest of the resale escrow; SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 7 CDC 1999-19 (ii) the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Homebuyer and the final escrow closing statement for the Successor-In-Interest; and (iii) the other conditions established by the Successor-In-Interest of the resale escrow as Qualified Homebuyer and shall have been satisfied. (e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants and agrees that during the Qualified Residence Period the New Home shall not be leased, subleased, or rented to any third person, except for a temporary period (not to exceed 12 months) in the event of an emergency or other unforseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Homebuyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event wi thin not more than (60) days following the commencement of a temporary rental occupancy of the New Home by a third party, which notice shall set forth the grounds on which the Qualified Homebuyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. Section 4. Maintenance Condition of the New Home. The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that: (a) The exterior areas of the New Home which are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the term of the Qualified Residence Period, there is an occurrence of an adverse condition on any area of the New Home which is subj ect to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Qualified Homebuyer in writing of the Maintenance Deficiency and give the Qualified Homebuyer thirty (30) days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiency" include without limitation the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property use restrictions: SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 8 CDC 1999-19 failure to properly maintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of wed and debris; parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on any other parts of the property which are not covered by a paved and impermeable surface; the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Home. In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Homebuyer ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has failed to comply with the provision of this Section 4(a). If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Home (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) shall become a lien on the New Home. I f the amount of the lien is not paid wi thin thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c). SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 9 CDC 1999-19 (b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the New Home shall be removed by the Qualified Homebuyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the New Home (exterior areas only) and such graffiti is visible from an adj acent or contiguous public right-of-way and thereafter such graffiti is not removed within 72 hours following the time of its application; then in such event and without notice to the Qualified Homebuyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Section 4(b) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4 (a) or Section 4 (b), including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. In any legal proceeding for enforcing such a lien against the New Home, the prevailing path shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4, shall be a covenant running with the land for the Qualified Residence Period and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable law. Nothing in the foregoing provisions of this Section 4 shall be deemed to preclude the Qualified Homebuyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 10 CDC 1999-19 Section 5. [RESERVED/NO TEXT] Section 6. [RESERVED/NO TEXT] Section 7. Foreclosure of Purchase Money Mortgage Loan and Agency Right of First Refusal. (a) During the Qualified Residence Period the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Home at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period the Agency shall have the right of first refusal to purchase the New Home from the Qualified Homebuyer on the same terms which the Qualified Homebuyer may propose to offer the New Home for resale to a Success-In- Interest. The Agency must exercise such a right of first refusal within thirty (30) days following written notification of the intention of the Qualified Homebuyer to resell the New Home, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Homebuyer and close an escrow for the transfer of the New Home to the Agency within sixty (60) days following written notification of the intention of the Qualified Homebuyer to resell the New House. Section 8. Covenants to Run With the Land. The Participant, the Agency and the Qualified Homebuyer hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a common plan for the rehabilitation of affordable single family housing improvements within the territorial jurisdiction of the Agency and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Home and each Successor-In-Interest of the Qualified Homebuyer in the New Home for the term provided in Section 10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this ARR Covenant. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Home or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 11 CDC 1999-19 and restrictions are set forth in such contract, deed or other instrument. Section 9. Burden and Benefit. The Participant, the Agency and the Qualified Homebuyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Homebuyer's legal interest in the New Home is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Homebuyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Home by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable single family housing development goals and objectives of the Agency and in order to make the New Home available for acquisition and occupancy by the Qualified Homebuyer. Section 10. Term. This ARR Covenant shall apply to the New Home and the Qualified Homebuyer and to each Successor-In-Interest as of the Delivery Date for the Qualified Residence Period -- e.g.: this ARR Covenant shall remain in full force and effect for ten (10) years after the Delivery Date. Any provision or section hereof, may be terminated after the Delivery Date upon agreement by the Agency and the Qualified Homebuyer (or the Successor-In- Interest in the New Home), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in i~s reasonable discretion will not adversely affect the affordable single family housing and development goals of the Agency. Section 11. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Homebuyer to honor or perform any material term or provision of this ARR Covenant shall constitute a breach under this Agreement; provided however, that if the Qualified Homebuyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days after the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Homebuyer written notice of breach specifying the alleged breach which if uncured by the Qualified Homebuyer within thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 12 CDe 1999-19 shall not constitute a waiver of any breach or event of default nor shall it change the time of breach or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 11. Except with respect to rights and remedies expressly declared to be exclusive in this ARR Covenant, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Homebuyer may remain incurred for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 as related to a Maintenance Deficiency at the New Home, upon the occurrence of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding a t law or in equity, to require the Qualified Homebuyer to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (ii) by other action. or convenient covenants and Homebuyer to the at law or in to enforce agreements Agency. equity as necessary the obligations, of the Qualified (b) No third party shall have any right or power to enforce any provision of this ARR Covenant on behalf of the Agency or to compel the Agency to enforce any provision of this ARR Covenant against the Qualified Homebuyer on the New Home. Section 12. Governing Law. This Section 33334.3 Covenant shall be governed by the laws of the State of California. Section 13. Amendment. This ARR Covenant may be amended after the Delivery Date only by a written instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as applicable) and by the Agency. The Participant shall have not any SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 13 CDC 1999-19 right or power to approve any such amendment to this ARR Covenant, and the execution by the Participant of any such amendment after the Delivery Date shall not be required. Section 14. Attorney's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this ARR Covenant or otherwise arising out of this ARR Covenant, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 15. Severability. If any provision of this ARR Covenant shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this ARR Covenant which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Section 16. Time is of the Essence. For each provision of this ARR Covenant which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 17. Notice. Any notice required to be given under this ARR Covenant shall be given by the Agency or by the Qualified Homebuyer, as applicable, by personal delivery or by First Class United States mail at the addresses specified below or at such other address as may be specified in writing by the parties hereto: If to the Agency: / Executive Director Redevelopment Agency of the City of San Bernardino 201 North "EU Street, Suite 301 San Bernardino, CA 92401 Phone: (909) 384-5081 If to the Qualified Homebuyer: Attn: Phone: Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personally delivered, when received SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 14 CDe 1999-19 by the Executive Director of the Agency or the Qualified Homebuyer, as applicable. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 15 CDC 1999-19 IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer and the Agency have caused this Covenant to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this ARR Covenant is authorized under Health and Safety Code Section 33334.3(g). QUALIFIED HOMEBUYER Dated: By: By: PARTICIPANT Dated: By: AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director [ALL SIGNATURES MUST BE NOTARIZED] Approved as to Form: By: Agency Counsel SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 16 CDC 1999-19 EXHIBIT "A" Legal Description of the New Home SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 17 CDC 1999-19 [address of Participant under the ARR Agreement] ) ) ) ) ) ) ) ) ) ) ) (Space above line reserved for use by Recorder) RECORDING REQUESTED BY Redevelopment Agency of the City of San Bernardino AND WHEN RECORDED MAIL PROPERTY TAX BILL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS [ARR Program: (Name of Grantee/Participant)] PART A THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS (the "Quitclaim Deed") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") in certain real property situated at , San Bernardino, California (the "Property") to (the "Participant"), subject to the community redevelopment affordable single family housing conditions, covenants and restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the community redevelopment affordable single family housing conditions, covenants and restrictions of this Quitclaim Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 1 of 7 CDC 1999-19 (-- The Property--) file in the of the Recorder on Official Records of the Office of San Bernardino County. PART B The quitclaim of the Property by the Agency to the Participant is expressly subject to the satisfaction of the following community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain Acquisition, Rehabilitation, Resale Agreement dated (the "ARR Agreement") by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty-five (25) years commencing on the date of recordation of this Quitclaim Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated for occupancy only to a "person" or a "family" who is a "Qualified Homebuyer" for a term of the shorter period of either: (i) twenty-five (25) years from the date'of recordation of this Quitclaim Deed; or (ii) the term, as provided in the ARR Agreement Covenant described in subparagraph 3, below. The words "Qualified Homebuyer" refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first-time homebuyer," as defined in Health and Safety Code Section 50068.5, and whose annual income during the twelve (12) months preceding the date of initial occupancy of the Property by the Qualified Homebuyer does not exceed the income qualification limits for "lower income households", as defined in Health and Safety Code Section 50079.5 (Statutes of 1979: Chapter 96). Health and Safety Code Section 50079.5 provides: "'Lower Income households' means persons and families whose income does not exceed the qualifying limits for lower income SBE010001/DOC/3513.1 6/15/99 1200 ct Page 2 of 7 CDC 1999-19 families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. As used in this section, 'area median income' means the median family income of a geographic area of the state." 3. As a condition precedent to any transfer, sale, conveyance, grant or other hypothecation by the Participant of the Property to a Qualified Homebuyer the "Acquisition, Rehabilitation Resale Affordability Use and Occupancy Covenant" (the "ARR Covenant"), substantially in the form attached hereto as Exhibit "A-I" or Exhibit "A-2," as applicable and as incorporated herein by this reference shall be fully executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The final form of the ARR Covenant shall be consistent wi th the terms and conditions o,f the ARR Agreement as applicable to the Qualified Homeb.uyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the ARR Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the ARR Covenant shall be a separate community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and assign of the Qualified Homebuyer for the term as provided in the ARR Covenant. 4. Prior to the recordation of the ARR Covenant as provided in subparagraph 3 of PART B of this Quitclaim Deed, the Property shall not be offered for sale or sold to a Qualified Homebuyer for a sale price which exceeds more than Dollars ($ ) , exclusive of customary and reasonable "escrow" and sales SBEO/DDD1/DOC/3513.1 6/15/99 1200 ct Page 3 of 7 CDe 1999-19 transactional costs which may be normally allocated to a Qualified Homebuyer by an owner-builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of PART S of the Quitclaim Deed shall have no further force or effect upon the property after the date of the complete execution and recordation of the ARR Covenant. 5. The Property shall be subject to the following affordable housing redevelopment covenant in perpetuity and the text which appears in this Quitclaim Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enj oyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PART C During the term of subparagraph 2 of PART S, but prior to the recordation of a fully-executed copy of the ARR Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales and ancillary business activity on the Property associated with the improvement and sale by the Developer, pursuant to the ARR Agreement, of an affordable single family dwelling unit on the Property prior a Qualified Homebuyer. The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the ARR Covenant. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 4 of 7 CDC 1999-19 PART D The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an increase, improvement and preservation of the community's supply of low- and moderate-income housing. The transfer of the Property by the Agency to the Developer for this purpose and the recordation of this Quitclaim Deed is authorized by Health and Safety Code Sections 33334.2 and 33334.3, and other applicable law and actions of the Agency, including without limitation, the ARR Agreement. PART E Upon the delivery of this Quitclaim Deed to the Participant, the community redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by either the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(f) (2) against the Participant and each successor in interest or assignee of the Participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property. SBE010001/DOC/3513.1 6/15/99 1200 ct Page 5 of 7 CDC 1999-19 THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized signatures of the Executive Director of the Agency. Dated: Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] [NOTE: Exhibit "A-I" MAP Assistance) Exhibit "A-2" Program) ] SBEO/0001/DOC/3513.1 6/15/99 1200 ct AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic By: Executive Director General Form of ARR Covenant (Agency General Form of ARR Covenant (HOME Page 6 of 7 CDC 1999-19 ACCEPTANCE OF QUITCLAIM DEED AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT (the "Participant"), hereby accepts the delivery of the instrument identified above as the "Quitclaim Deed of a Public Agency and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Quitclaim Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San Bernardino, subject to the conditions, covenants and restrictions contained in the Quitclaim Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property to be improved and rehabilitated as set forth in the ARR Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Quitclaim Deed which touch and concern the Property and are community redevelopment covenants which run with the land. PARTICIPANT Dated: By Its: By: Its [NOTARY JURAT ATTACHED] SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 7 of 7 CDC 1999-19 HUD UNIT PURCHASE AND SALE AGREEMENT Property Address: THIS HUD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is dated for identification purposes only, as of , 199 , and is made and entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and (the "Participant"), with reference to the following: RECITALS A. WHEREAS, the Agency and the Secretary of Housing and Urban Development (the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition Program a copy of which is attached hereto as Exhibit "A" (the "HUD Contract") regarding sale by the Secretary to the Agency of that certain property commonly known as San Bernardino, California (the "HUD Unit"). A legal description of the HUD Unit is attached hereto as Exhibit "B"; and B. WHEREAS, subj ect to the terms and conditions of that certain Acquisition, Rehabilitation and Resale (ARR) Agreement dated 1999 (the "ARR Agreement"), by and between the Participant and the Agency and this Agreement, Agency desires to sell the HUD Unit to the Participant and the Participant desires to purchase the HUD Unit from the Agency at the close of the "HUD Escrow" as set forth herein. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS: 1. Warranty of Authority by Participant. The Participant warrants that it is a under the laws of the State of California, and is authorized to execute this Agreement and all of the documents and instruments contemplated hereby, including, without limitation, supplemental escrow instructions and the Acceptance of Agency Quitclaim Deed; and that this transaction has been approved by [resolution of its board of directors]. A certified copy of that [resolution] which remains in effect, will be delivered to Agency before the close of the HUD Escrow as set forth herein. SBEO/0001/DOC/3515 6/15/99 245 ct 1 CDC 1999-19 2. Agreement to Sell and to Purchase. Subject to the terms and conditions of this Agreement, the Agency agrees to sell and the Part~cipant agrees to purchase the HUD Unit. 3. Purchase Price. The "Purchase Price" for the HUD Unit is the same sum in cash or immediately available funds in United States Currency as the discounted purchase price which the Agency has agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit. The Purchaser Price shall be payable by the Participant's delivery of the full amount to the escrow holder in cash or by wire transfer of immediately available funds at least one(l) business day before close of the HUD Escrow or by cashier's check during business hours at least three(3) business days before the close the HUD Escrow. 4. HOD Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees to pay all of the costs of the escrow holder in the HUD Escrow including all amounts charged to the account of the Secretary and the Agency. The escrow holder is hereby instructed to collect such costs and charges from the Participant at the close of the HUD Escrow. 5. Conditions for the Benefit of the Agency. The obligation of the Agency to perform this Agreement is subject to the satisfaction of the following conditions, which are for the Agency's benefit only: (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen(15) days after the date hereof; (b) . 'that the Secretary perform under the HUD Contract and t~e title of the HUD Unit actually be transferred from HUD to the Agency within forty-five(45) days after the date hereof; (c) the Agency shall have received, satisfactory to the Executive Director, a the insurance required pursuant to Section in form and substance certificate evidencing 16 of this Agreement; (d) that the Participant has duly execute and deliver to the escrow holder, in recordable form the Acceptance of the Participant of the Agency Quitclaim Deed. (e) that the Participant not otherwise be in default under its other obligations to the Agency under the ARR Agreement. SBEO/0001/DOC/3515 6/15/99 245 ct 2 CDC 1999-19 The conditions set forth above are for the Agency's benefit only and the Executive Director of the Agency (the "Executive Director") may waive all or any part of such rights by written notice to the Participant and escrow holder. If any of said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Executive Director, the Agency may thereafter terminate this Agreement without any liability on the part of the Agency by giving written notice of termination to the escrow holder, with a copy to the Participant. Escrow holder shall thereupon, without further consent from the Participant, return to each party the documents, if any, deposited by them. 6. Conditions for Participant's Participant to perform this satisfaction of the following Participant's benefit only: Benefit. Agreement conditions, The obligation of is subject to which are for the the the (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen (IS) days after the date hereof; and (b) HUD Uni t after the that the Secretary perform under the HUD Contract and the actually transfer from HUD within forty-five (45) days date hereof. The conditions set forth above are for the Participant's benefit only and the Participant may waive all or any part of such rights by written notice to the Agency and the escrow holder. If any said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Participant, subject to the approval of the Secretary and the Agency, the Participant may thereafter terminate this Agreement without any liability on the part of the Participant by giving written notice of termination to the escrow holder, with a copy to the Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each party the documents, if any, deposited by them. 7. Escrow. The transfer of the HUD Unit to the Participant shall be consummated through an escrow established with the escrow agent engaged by the Secretary to handle the transfer of the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a schedule coordinated with the closing or the transfer of the HUD Unit between the Secretary and the Agency under the HUD Contract. This Agreement shall constitute the escrow instructions to the escrow holder of the Participant and the Agency with respect to the HUD Unit. The Agency and the Participant shall execute such SBEO/0001/DOC/3515 6/15/99 245 ct 3 CDC 1999-19 additional escrow instructions as may be reasonably required by the escrow holder. 8. Term of Escrow. Escrow shall close concurrently with the close of escrow under the HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the County of San Bernardino, California. 9. Condition of Title. The Agency shall convey to the Participant by quitclaim deed all of the right, title and interest in the HUD Unit which the Agency receives from the Secretary under the HUD Contract. The form of the Agency Quitclaim Deed is attached hereto as Exhibit "C" and incorporated herein by this reference. 10. Title Insurance. The Agency shall not be responsible for providing any title insurance to the Participant in connection with the transfer of title in the HUD Unit to the Participant. Any title insurance desired by the Participant shall be ordered and paid for by the Participant at its sole cost and expense. 11. Prorations. All assessments, including improvement assessments which are available for payment without interest or penalty for advance payment, taxes, rent, and ground rent, if any, shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently with the escrow under the HUD Contract, through which escrow such items will be prorated between the Secretary and the Agency, the parties acknowledge and agree that the Participant shall be charged for such prorations in precisely the same amount as the Agency is charged under the HUD Contract. 12. Escrow Closing Costs. The Participant shall pay all escrow closing costs of both parties, including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the Participant shall pay all closing costs and expenses charged to the Agency in the escrow by which HUD transfers the HUD Unit to the Participant. 13. Closina. At the Close of Escrow, (a) the Agency shall deliver to the Participant through escrow a the Agency Quitclaim Deed conveying the HUD Unit to the Participant, (b) the Participant shall deliver to the Agency through escrow the acceptance of the Agency Quitclaim Deed, and (c) the escrow holder shall collect and pay the SBEO/0001/DOC/3515 6/15/99 245 ct 4 CDC 1999-19 sums indicated for the transfer of the HUD Unit under the HUD Contract and this Agreement and deliver such other documents to the parties in accordance with the instructions of each of them. At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed to be recorded in the Official Records of the County of San Bernardino, California. 14. Condition of the HUD Unit. The Agency makes no representation or warranty to the Participant or to any third party concerning the condition of the HUD Unit, including, without limitation, mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and the Agency will make no repairs to the HUD Unit either before or after execution of this Agreement. The Participant understands that the Agency does not guarantee or warrant that the HUD Unit is free of visible or hidden structural defect, termite damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or otherwise usable. Participant acknowledges responsibility for taking such action and conducting such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit in the same condition delivered to the Agency by the Secretary, in an "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS" condition. 15. Possession: Repairs. The Participant may not perform repairs nor take possession of the HUD Unit until the escrow is closed. At the close of the HUD Escrow, the Participant may take possession of the HUD Unit and promptly commence the work of rehabilitation as ~equired for theHUD Unit under the ARR Agreement. 16. Insurance. Prior to the Close of Escrow, the Participant shall obtain and shall thereafter maintain in full force and effect at all times a broad-form comprehensive general liability policy with a limit of not less than $1,000,000.00. Such insurance shall provide for a 30-day notice to the Agency before cancellation of the policy and shall name the Agency as an additional insured as to claims arising out of the work to be performed on the HUD Unit following the Close of Escrow pursuant to the ARR Agreement. 17. Assignment. The Participant and the Agency each agree that this Agreement shall be binding upon their respective, heirs, executors, administrators, successors or assigns and is not assignable by the Participant unless the written consent of the Executive Director is first obtained, which consent the Executive Director may withhold in his or her sole ,and absolute discretion. SBEO/0001/DOC/3515 6/15/99 245 ct 5 CDe 1999-19 18. Notices. All notices, demands and requests which may be given by either party to the other or to the escrow holder shall be in writing and shall be deemed to be given upon personal delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt requested, postage prepaid, addressed to the party to be notified at the address following the party's signature or if addressed to the escrow holder, at the address set forth in the supplemental escrow instruments signed by the parties. Either party may designate by written notice to the other party in the manner set forth in this Agreement another address for notice. 19. Miscellaneous Provisions. 19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to enforce, any provision of this Agreement shall not be a waiver of any further breach of such provision hereof. The waiver by either or both parties of the time for performing an act shall not be a waiver of the time for performing any other act or acts required hereunder. 19.2 Modifications. No change or addition to this Agreement or any part hereof shall be valid unless in writing and signed by each of the parties. 19.3 Governing Law. California law. This Agreement shall be governed by 19.4 Headings. The headings in this Agreement are for convenience only and shall not be used to interpret this Agreement. 19.5. Further Acts. Each party agrees to take such further action and to execute and deliver such further documents as may be necessary to carry out the purposes of the ARR Agreement with respect to the HUD Unit and this Agreement. 19.6 Attorneys' Fees. If either party incurs attorneys' fees to enforce this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees as set by the court from the other party. 19.7 No Real Estate Brokers Commission Payable By the Agency. The Agency shall not be responsible for the payment of any real estate brokers commission or finders fee in connection with the escrow or the transfer of the HUD Unit to the Participant. SBEO/0001/DOC/3515 6/15/99 245 ct 6 CDC 1999-19 19.8 Time. Agree~ent. Time is of the essence with respect to this IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. AGENCY Redevelopment Agency of the City of San Bernardino By: Dated: Executive Director PARTICIPANT By: Its: By: Its: SBEO/0001/DOC/3515 6/15/99 245 ct 7 CDC 1999-19 EXHIBIT "E" 1999 ARR AGREEMENT "ARR Rehabilitation Standards for Each HUn Units" CDC 1999-19 ARR REHABILITATION STANDARDS I. GENERAL DESCRIPTION The Participant will acquire HUD Units and cause the rehabilitation and resale of the housing thereon. II. REHABILITATION STANDARDS All of the improvements to be-provided by the Participant on the HUD Units constitute the "Project". The Project shall be developed in accordance with applicable building and safety codes. III. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Project Site, and the suitability of the Project Site. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Project Site entirely suitable for such development. Participant has undertaken all investigation of the Project Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the rehabilitation of the project. IV. AMENITIES Each HUD Unit shall have full amenities and shall include the following: front yard landscaping and automatic sprinklers, side and rear yard fencing. . V. REHABILITATION STANDARDS Rehabilitation Standards shall include Section 8 Housing Quality Standard (HQS) Minimums and are not limited to: 1. Interior work to make structures more livable, such as, plastering, painting, new subflooring and tile work. 2. Repair, restoration or replacement of important parts of structures, such as, heating systems, plumbing systems, electrical components, kitchen appliances (stoves, refrigerator). 3. Installation of water/energy conservation devices. 4. Installation of security devices. I \\fDA_SAN BERDO\PUBlIC\Fonns\ARR Program\ARR Rehabilitation StAndards.doc CDC 1999-19 5. Wheelchair ramps, kitchen and/or bathroom modifications related to a disability of a household member. The following list contains some of the typical repair items and replacement activities: 6. Replacement of plumbing fixtures. 7. Addition of electrical outlets and/or wiring. 8. Insulation. 9. Replacement of roof. 10. Repair and/or enlargement of inadequate kitchen and/or bathroom. 11. Repair/replacement of furnaces and air conditioners. 12. Plaster and dry rot repair. 13. Repair/replacement of porches, steps, fences and walkways. 14. Termite, rodent or vermin fumigation. 15. Addition of closets or other minor built-ins. 16. Chimney repair/replacement. 17. Repair/replacement of railing. 18. Repair/replacement of windows and doors. 19. New ceilings. 20. Weather stripping for windows and doors. 21. Repair/replacement/addition of gutters and down spouts. 22. Repair/replacement of exterior trim. 23. Repair/replacement of stucco (wrap & stucco of wood siding structures). 24. Repair of foundation, structural repair. 25. Replacement of existing toilets, tub and shower, lavatories (cabinets). 26. Carpeting and other flooring. All other items are optional, per agreement, between contractor and buyer. 2 \\EDA_SAN BERDO\PUBLIC\Forms\ARR Program\ARR Rehabilitation Standards.doc CDe 1999-19 EXHIBIT "F" 1999 ARR AGREEMENT "HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents" CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM (MAP) ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM Date: Property Address: Borrower( s): MAP Amount: FIRST TIME HOME BUYER PROGRAM - MAP CHECKLIST Step1- For ReservatiorrofFunds Letter by EDA . . Latest Tax Return (1040's) and 2 Current Pay Stubs 0 Application Affidavit - Signed by Borrower 0 Verification for Applicant Eligibility (Completed by Lender) 0 Preliminary Escrow Instructions 0 . st~p~::.For.EDAto~eq!Je$tfor MAPChe(fk- Request.torFunds' ...++....:.....:i ...,i .... .. ..... .... . Complete Demand for Funds Letter 0 Submit MAP Docs (Loan Agreement, Deed of Trust, Promissory Note, CC & Rs) 0 Seller (ARR Contractor) must call EDA Inspector for a Final Inspection (10 days prior to close of escrow) Step 3 ''-F,orEDAtoRijlease MARCheck to Escrow ., .. > Final Escrow Documents (Includes Amendments) 0 First Time Home Buyers Class Certificate 0 Lender Representative: \'EOA SAN SEROO'PUBUC\FormslMap-ARR\MAP.Ctleck Ust.doe 02I1&MMP CDe 1999-19 City of San Bernardino . ECONOMIC DEVELOPMENT AGENCY VERIFICATION FOR APPLICANT ELIGIBILITY . Redevelopment . Community Development . Housing . Business: - Recruitment - Retention - Revitalization . Main Street, Inc. ACQUISITION, REHABILITATION AND RESALE PROGRAM (ARR) AND MORTGAGE ASSISTANCE PROGRAM (MAP) Name of Applicant Current Address Property Address to be Purchased City/State San Bernardino, California Phone Number Household Size # of Minor Children Zip Code Name of Lender Contact Person Loan Number Phone Number Fax Number *Annual & Monthly Income (See Below) $ IY ear $ /Month Income used by the lender to qualify for the loan, if different than annual income of application. $ /Year $ /Month Monthly Consumer Debt $ /Month Max Loan Amount $ Principal & Interest $ /Month Sales Price $ Est. Property Taxes $ /Month Buyer Down $ ($500 Min.) Est. Insurance $ /Month Map Amount $ Mort. Ins (If Applicable) $ /Month TYPE OF LOAN DFNMA 0 FHA 0 Other Total PITI $ /Month . Debt-to-Income Ratios as Calculated by Lender: Housing Costs % Total Debt % Terms of Loan Interest Rate # of Years o Fixed Nole: Variable Loans are Not Permitted. Check Applicable 50% or less 0 5 1% - 80% 0 81%- 115%0 *Note: 111 order to qualify for the MAP your i/lcome may /lot exceed the followillg: Signature of Applicant Date Lender/Escrow Representative - Signature Date Signature of Applicant Date 201 North E Street, Suite 301. San Bernardino, California 92401-1507. (909) 384-5081. FAX (909) 888-9413 CDC 1999-19 HOUSEHOLD SIZE 1999 Income Level 1 2 3 4 5 6 7 8 Very Low (50%) $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Lower (80%)* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Median (1 Ooolo) $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 Moderate (120%)** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 * The maximum income level for MAP assistance under federal HOME. Under MAP HOME - property value at the time of sales must not exceed 95% of the County's median purchase price. ** The maximum income level for MAP assistance under State Redevelopment Law. Under MAP State Redevelopment Law the affordable housing costs apply (Complete Housing Affordability Worksheet) PLEASE CHECK THE FOLLOWING o Sr. Citizen(s) - 62 or Older o Black o American Indian o Female Head of Household o Hispanic o White o Disabled One or More o Other o Asian or Pacific Islander ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGIBILITY FOR MAP IS THE SOLE RESPONSIBILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. ANY QUESTIONS CALL (909) 384-5081. P:\Forms\Mortgage Assistancc\MAP-Applicant Eligibility.doc (Revised 7/99) CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM ACQUlSITION/REHABILITATION & RESALE PROGRAM APPLICATION AFFIDAVIT NOTE: ALL BLANKS ON THIS FORM MUST BE COMPLETED! THERE ARE IMPORT ANT LEGAL CONSEQUENCES TO THIS AFFIDAVIT; READ IT CAREFULLY BEFORE SIGNING. 1. I (we) the undersigned, as part of my (our) application for Acquisition, Rehab, Resale (A.R.R.) and Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of San Bernardino, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we), being first duly sworn, state the following: I (we) certify that the following are: a. My (our) legal Name(s): b. Social Security # c. Current residences: d. Telephone # The Unit (the "Residence") being purchased is a single-family home located in the City of San Bernardino at the following address: 2. I (we) certify that my (our) current gross annual household income, including income of all adult persons intending to occupy the Residence, is $ . I (we) understand that I (we) am (are) not eligible fora ARR- MAP unless my (our) gross annual household income does not exceed 80% of the median income for San Bernardino, and as specifically set forth in the Verification of Applicant Eligibility form. 3. I (we) certify that the Residence will be occupied and used as my (our) principal place ofresidence within forty-five (45) days after the date the ARR-MAP loan has closed. I (we) certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not more than fifteen percent (I5) of the area of the Residence will be used in a trade or business. I (we) certify that I (we) will notify the Agency in writing if the Residence ceases to be my (our) principal Residence. Failure to occupy the Residence will result in the Agency accelerating the repayment of the Agency ARR-MAP Loan. 4. If the loan application is for a loan on a newly constructed home, I (we) certify that the Residence has not and will not be occupied prior to loan commitment from the Agency. cue 1999-19 5. I (we) understand that I (we) am (are) not eligible for a ARR-MAP from the Agency under this program if! (we) individually or together had a present ownership interest in a principal residence within three (3) years prior to date of application. I (we) also understand that I (we) cannot have an ownership interest in a principal residence between the date of application and closing. For this purpose, a principal residence includes a single family residence, condominium, share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law), or occupancy in a multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by any means, whether outright or partial, including property subject to mortgage or other security interest. An ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy by the entirety, or a life estate interest. I (we) certify that I (we) have listed below all places of residence, whether owned or not, for a three-year period from date of application. 6. Previous Address: (Past Three Years) Owned Rented Other Beginning/Ending Date of Residency From: End: Address of Residence All answers of "Other" must be fully explained; use additional paper if necessary. 7. Name, address and telephone of the owner/landlord who can verify each residence listed above which was not owned by the applicant. Landlord Name Address Telephone No. 8. I (we) certify that the total purchase price of the Residence and land, including all construction items, all commissions, all builder's fees, hook-up and tap-in fees, permits, architectural fees, all site improvements, discount points paid by the seller, work credit, subcontracted items, or construction loan interest, but excluding any closing costs and other permanent financing charges will not exceed the purchase price limitation applicable to the Residence below: Maximum Sales Price (Single Family Unit) $150,000. 9. I (we) further certify that no other agreement, either verbal or written is presently contemplated for the completion of the purchase of the Residence. 10. I (we) further certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified mortgage bond or a qualified veteran's mortgage bond. No person related to me (as defined in CDC 1999-19 applicable federal or state laws and regulations) has or is expected to have an interest as a creditor in the Mortgage loan being acquired for the Residence. 11. I (we) understand and agree that if a ARR-MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 12. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the ARR-MAP guidelines. 13. I (we) understand that the decision to make a first mortgage loan is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan. 14. I (we) cannot close my (our) loan prior to receiving a ARR-MAP loan approval. 15. I (we) acknowledge and understand that this Application Affidavit will be relied upon for the purpose of determining my (our) eligibility for a ARR-MAP. (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me (us) in connection with an application for a ARR-MAP may constitute a federal violation punishable by a fine and/or denial of my (our) application for a ARR-MAP loan. If a ARR- MAP loan commitment has been issued prior to discovery of the false statement, immediate cancellation of the ARR-MAP will occur which will be in addition to any criminal penalty imposed by law. Dated: Signature of Applicant(s) Dated: Signature of Applicant(s) P:\Fonns\Mongage Assistance\MAP~Application Affidavit.doc CDe 1999-19 FIRST TIME HOME BUYER MORTGAGE ASSISTANCE PROGRAM DISCLOSURE STATEMENT IfWe (Participant) understand and agree that the provision of financial assistance from the Redevelopment Agency of the City of San Bernardino (the "Agency") under the First Time Home Buyer Mortgage Assistance Program (the "Program") is conditioned on a number of factors, including, but not limited to (all terms not otherwise defined herein shall have the meaning provided in the Loan Agreement by and between the Agency and the Participant): . IfWe must find a single-family detached home within the City of San Bernardino which I/We can afford (the "Property"). . IfWe must qualify for a home loan from an institutional lender acceptable to the Agency. . I/We must qualify for assistance under the guidelines of the Program. . IfWe must not have owned any interest in any residential real property during the past three (3) years. I/We further understand and agree that: IfWe will be responsible for repaying the amount of the Note. The Note will be due and payable upon: (i) the sale of the Property, (ii) the transfer of any interest in the Property, (iii) refinancing of any lien or encumbrance to which the Agency Deed of Trust is subordinate, or (iv) I/We are no longer an occupant of the Property or are in default of any obligation under the Loan Agreement. . IfWe have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the Agreement is signed by sending a notice of my/our decision to rescind or cancel the Agency Loan to: Redevelopment Agency of the City of San Bernardino Housing Division 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 Attn: Housing Division Manager . An appraisal fee may be payable upon the following: (i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) I/We no longer occupy the Property, or (iv) I/We are/am in default of any provision of the Loan Agreement. . The Agency shall not be held responsible for any costs associated with the home I/We 1 \\EDA _SAN BERDOIPUBLlC\FormslMortgage Assistance\2-MAP-DISCLOSURE.doc CDC 1999-19 purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of the Property. . The Agency cannot ensure that information provided by or on my/our behalf will be confidential. . The Agency shall not be responsible for the selection of a home, the selection of a lender providing funds assisting in the purchase of the home, provide information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/We assume all responsibility for determining whether I/We will inform myself/ourselves as to the availability and terms of other public or private loans. · The Agency shall not be charged with the knowledge of the contents of the ocuments of the lender. DATED 19 DATED 19 DATED 19 2 \\EDA _SAN BERDOIPUBLIClFolTnslMortgage Assistance\2-MAP-DISCLOSURE.doc CDe 1999-19 '8 of 8 ACQUISITION, REHABILITATION RESALE (ARR) AGREEMENT By and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO And YJ~~~%f~*~FI~ritR~~~f~~- ("ARR Participant") CDC 1999-19 TABLE OF CONTENTS I. [100] SUBJECT OF AGREEMENT ..................................................................................2 A. [101] Purpose of Agreement......................................................................................... 2 B. [102] The HUD Units ................................................................................................... 3 C. [103] Parties to the Agreement ..................................................................................... 3 1. [104] The Agency ................................................................................................... 3 2. [105] The Participant .............................................................................................. 3 3. [106] Prohibition Against Change in Ownership, Management and Control of the Participant............................................................................................................... 4 4. [107] Benefits of Project.........................................................................................4 II. [200] AGENCY ASSISTANCE ......................................................................................... 4 A. [201] The Project .......................................................................................................... 4 B. [202] Agency Assistance .............................................................................................. 5 C. [203] Term of Agreement............................................................................................. 5 D. [204] Participant Assistance ......................................................................................... 5 E. [205] HUD Escrow .......................................................................................................7 F. [206] Affordable Housing Cost .................................................................................... 7 III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS .................................. 7 A. [301] Rehabilitation by Participant............................................................................... 7 1. [302] Cost of Rehabilitation................................................................... ................. 8 2. [303] Bodily Injury and Property Damage Insurance............................................. 8 3. [304] Rights of Access............................................................................................9 4. [305] Local, State and Federal Laws ...................................................................... 9 5. [306] Anti-Discrimination During Rehabilitation .................................................. 9 B. [307] Taxes, Assessments, Encumbrances and Liens................................................... 9 C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation of a Certificate of Completion of the HUD Unit............................... 9 CDC 1999-19 D. [309] Mortgage, Deed of Trust, Sale and Financing; Rights of Holders.................... 10 [310] No Encumbrances Except Mortgages, Deeds of Trust or Sale for Rehabilitation......... ........................................................................................... 10 E. [311] Right of Agency to Satisfy Other Liens on the Project..................................... 10 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS ......... 11 A. [401] Uses - Covenants Running with the Land......................................................... 11 B. [402] Maintenance of the HUD Units......................................................................... 11 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation............................................................................. 13 V. [500] GENERAL PROVISIONS...................................................................................... 13 1. [501] Termination and Breach.................................................................................... 13 2. [502] Notice ................................................................................................................ 14 3. [503] Conflicts ofInterest; Nonliability ..................................................................... 14 4. [504] Inspection of Books, Records and Reports ....................................................... 14 5. [505] Indemnification ................................................................................................ 15 VI. [600] SPECIAL PROVISIONS ........................................................................................ 15 1. [601] Submission of Documents to Agency for Approval......................................... 15 2. [602] Successors in Interest ........................................................................................ 15 VII. [700] ENTIRE AGREEMENT, WAIVERS..................................................................... 15 VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCy........................... 16 [801] Time for Acceptance ............................................................................................... 16 EXHIBIT A - EXHIBIT B - EXHIBIT C - EXHIBIT D - EXHIBIT E EXHIBIT F Map of ARR Zone Current Household Income Listings For Qualified Homebuyers ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection ofHUD Units for Purchase by Participant HUD Escrow Documents (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents ARR Rehabilitation Standards for Each HUD Unit HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents CDc 1999 -19 ACOUISITION. REHABILITATION. & RESALE (ARR) P ARTICIP ATION AGREEMENT THIS AGREEMENT(the "Agreement") this 21 sl day of June, 1999 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and Vizcarra Construction & Development Corp. (the "Participant"). Agency and Participant hereby agree as follows: RECITALS WHEREAS, Agency is a California Redevelopment Agency engaged in carrying out its public purposes, including, without limitation, increasing, improving and preserving the supply of affordable housing in the City of San Bernardino (the "City"); and WHEREAS, the U.S. Department of Housing & Urban Development (HUD) has designated that certain area within the City shown on the map attached hereto as Exhibit "A" as the Acquisition, Rehabilitation and Resale (ARR) Revitalization Zone (the "Zone"), and has granted the City exclusivity to purchase directly from HUD, certain single family dwelling units owned by HUD REO's (the "HUD Units") at a discount off the As Is Value of each such HUD Unit (the "ARR Program") which the Agency as administrator for the City under the ARR Program, shall concurrently transfer title to the HUD Unit to the Participant for rehabilitation and resale pursuant to the terms and conditions of this Agreement; and WHEREAS, the Agency has also been designated by the Mayor and Common Council as the administrator of the HOME Program (the National Affordable Housing Act of 1990) on behalf of the City, with specific intent to expand the supply of decent, safe, sanitary and affordable housing, within a City's jurisdiction; and WHEREAS, the Agency may use either federal HOME Program funds or State Redevelopment low and moderate income funds to financially assist qualified first-time homebuyers (herein "Qualified Homebuyer") in the acquisition of HUD Units purchased directly from the Participant; provided however that the value of the HUD Unit to be acquired by a Qualified Homebuyer for which the Agency may provide purchase money mortgage assistance under either the HOME Program or under the other affordable housing assistance programs of the Agency (herein "MAP Program") must have a value that does not exceed 95% of the area median purchase price; and WHEREAS, with respect to the HUD Units, Agency desires to implement the ARR Program pursuant to which: a. Agency would buy one or more HUD Units directly from HUD on condition that the Participant purchases each such HUD Unit from the Agency at the discounted price which HUD offers to the Agency; and 1 CDe 1999 -19 b. The Participant shall promptly rehabilitate the HUD Unit in accordance with rehabilitation standards set forth herein, and thereupon sell the HUD Unit, to an eligible low or moderate income buyer (e.g., a Qualified Homebuyer) at affordable housing costs pursuant to State or Federal requirements, depending on the source of funding (i.e., if Qualified Homebuyer uses HOME funds their income shall not exceed 80% of median income and State Redevelopment Low/Moderate Income Funds shall not exceed 120% of median income); and c. Prior to purchasing a HUD Unit from Agency, Participant shall provide satisfactory evidence to the Agency of all financing which shall include all costs associated with the acquisition, rehabilitation and disposition of the HUD Unit by the Participant. Based on receipt of such evidence of financing, the Agency shall accept or reject any offer received from the Participant to acquire a HUD Unit. The Participant shall complete the steps noted in Exhibit "C", attached hereto and incorporated herein by reference with respect to its acquisition and disposition of each HUD Unit to a Qualified Homebuyer; and d. If the Agency accepts any offer from Participant to purchase a HUD Unit, the Agency and Participant will open escrows (the "HUD Escrow") which shall close concurrently such that the escrow by which HUD shall transfer a HUD Unit to the Agency shall close concurrently with the escrow through which the Agency shall transfer that HUD Unit to the Participant; and e. Promptly after the closing of the HUD Escrow, the Participant will rehabilitate the HUD Unit within the timeframe herein, and sell it at affordable costs (the "Affordable Housing Costs") to a person or family of low or moderate income for owner occupancy purposes at the close of an escrow by and between the Participant and the Qualified Homebuyer (the "New Home Escrow"). The maximum income criteria applicable to a Qualified Homebuyer will be based on the type of financial assistance, if any, which the Agency provides to the respective Qualified Homebuyer at the close of a New Home Escrow (i.e., State Redevelopment Low/Moderate Income Funds up to 120% of median income or HOME Funds up to 80% of median income). The current 1999 Income Limits are noted in Exhibit "B". WHEREAS, Participant is a well established housing provider that has the experience, qualifications and desires to participate in the above described ARR Program. NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, Agency and Participant agree as follows: I. [100] SUBJECT OF AGREEMENT A. [101] Purpose of Agreement The purpose of this Agreement is to effectuate various redevelopment plans for the City of San Bernardino (the "City"), by providing for Agency assistance to Participant in connection with 2 CDC1999-19 the acquisition, rehabilitation and disposition of the HUD Units hereinafter set forth. The acquisition, rehabilitation and resale of the HUD Units pursuant to this Agreement is in the vital and best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state, federal and local laws. The Community Development Commission, acting on behalf of the Agency, has determined that the acquisition, rehabilitation, resale and uses contemplated by this Agreement will benefit the low-and moderate- income housing needs of the City, the various redevelopment project areas of the City, and assist the City with the implementation of the HOME Program and the goals and objectives of the affordable housing programs of the Agency. B. [102] The HUD Units Each HUD Unit shall be located within the Zone and shall be designated from time to time by the Agency. Each of the HUD Units shall be pre-approved by the Agency and identified on a list in writing, as available for transfer to the Participant subject to the terms of this Agreement. No HUD Unit shall be transferred to the Participant unless the Participant has submitted a timely and complete acceptance to purchase such HUD Unit to the Agency, as set forth herein. It is the express intent of the parties hereto that the Participant will attempt to acquire those HUD Units within the Zone which evidence the highest degrees of blight, are most in need of redevelopment, and are financially feasible. The Agency's purchase approval of each HUD Unit will be based upon compliance with this intent. C. [103] Parties to the Agreement 1. [104] The Agency The Agency is a public body, corporate and politic, exercIsmg governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et seq.). The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency", as used in this Agreement, includes the Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino, the Redevelopment Agency of the City of San Bernardino, and any assignee of or successor to their rights, powers and responsibilities. 2. [105] The Participant The Participant is licensed to do business in the State of California. The principal office and mailing address of the Participant for purposes of this Agreement is: 3 CDC 1999-19 3. [106] Prohibition Against Change in Ownership. Management and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written approval of the Agency, which approval the Agency may grant, withhold or deny at its sole discretion. In the event that such a transfer or assignment may be permitted by the Agency, the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure for the benefit of the Agency. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 106 shall terminate with respect to each HUD Unit at the close of the New Home Escrow for that particular HUD Unit. Nothing in this Section 106 shall act to restrict the sale of rehabilitated HUD Units to Qualified Homebuyers if such sale is otherwise in compliance with the terms of this Agreement. 4. [107] Benefits ofProiect The Agency has determined that the purchase, rehabilitation and sale of HUD Units in accordance with this Agreement will eliminate blight, provide needed low- and moderate-income housing to the various project areas of the Agency, as well as the City and also increase homeownership opportunities for low- to moderate income households thereby stabilizing the community and decreasing rental housing in the City. II. [200] AGENCY ASSISTANCE A. [201] The Proiect The Agency agrees that with regard to any HUD Unit that it has approved in writing, and which the Participant has agreed to purchase as evidenced by the completed form of a "HUD Unit Purchase Agreement" in the form included in Exhibit "D", that the Agency shall, subject to the terms and conditions of this Agreement, acquire the HUD Unit from HUD and shall thereafter immediately transfer title to the Participant through the HUD Escrow. 4 CDc 1999-19 The Project, and specifically the Agency's obligation to acquire any HUD Unit, shall only arise to the extent funds are available from the Participant (or the "Participant's Lender" as hereinafter defined), to provide for the acquisition, rehabilitation and resale of the HUD Unit by the Participant at the close of the HUD Escrow. Moreover, the Agency shall only offer to transfer HUD Units to the Participant to the extent that the Agency, in its sole discretion, deems that the purchase price, associated rehabilitation and disposition costs are fair, equitable, comparable and that the Participant has funds sufficient to close the HUD Escrow and thereafter to complete the rehabilitation of the HUD Unit. B. [202] Agency Assistance In order to assist in the implementation of the Project and marketability of the Project, the Agency agrees to provide certain Agency assistance (the "Agency Assistance") as follows: (i) provide for the concurrent transfer of each HUD Unit which the Participant may agree to acquire as evidenced by a completed HUD Unit Purchase Agreement; provided however that purchase price for each HUD Unit and all escrow costs in connection with the HUD Escrow for that particular HUD Unit shall be payable solely by the Participant; and (ii) in addition to acquiring and thereafter immediately transferring title to any given HUD Unit to the Participant, the Agency may provide on a first come-first served basis to any Qualified Homebuyer certain down payment and closing costs, not to exceed ten percent (10%) of the Participant's sales price of the HUD Unit being sold, from either available funds of the Agency under the HOME Program or the Agency MAP Program, as applicable. c. [203] Term of Agreement The term of the Agreement shall be one (1) year from the date of this Agreement and ending June 30, 2000, except as set forth in Section 501. The Executive Director of the Agency (the "Director") shall have the option to renew this Agreement for an additional one (1) year period provided Participant is in compliance with the provisions of this Agreement. D. [204] Participant Assistance The Participant will select HUD Units based upon a list of available HUD Units prepared from time to time by the Agency. The Participant shall be solely responsible for obtaining all information in connection with the proposed acquisition and rehabilitation of each HUD Unit. Participant will take all action necessary to ensure the availability of funding for the acquisition, rehabilitation and resale of each HUD Unit prior to submitting any offer to purchase to the Agency and shall provide evidence to the Agency of such financing at the time it delivers a completed HUD Unit Purchase Agreement to the Agency (see Exhibit "D"). Participant will be responsible for the preparation and submission of all necessary paperwork required in connection with the acquisition of each HUD Unit (i.e., all of the HUD Escrow documents as assembled in Exhibit "D") and all other necessary documentation required for the close of escrow for any HUD Unit to be purchased by Participant from the Agency. Participant shall have not more than seven (7) days from receipt of the HUD listing from the Agency to select any HUD Unit for purchase and return 5 CDC 1999-19 the HUD Unit Purchase Agreement for such HUD Unit to the Agency as executed by the Participant. The Participant shall cause each HUD Escrow to be closed within forty-five (45) days from the date of execution of the HUD Unit Purchase Agreement and the other HUD Escrow documents by the Participant. No extension of time for the close of a HUD Escrow will be granted by the Agency and if a HUD Escrow does not close within the forty-five (45) day period after the HUD Unit Purchase Agreement has been fully executed for any reason not attributed to the fault or delay ofHUD or the Agency, then in such event this Agreement will be subject to termination. The Participant agrees that upon its acquisition of each HUD Unit from by the Agency, the Participant shall promptly commence and thereafter diligently complete the rehabilitation of the HUD Unit. Unless a longer period of time is approved by the Agency in its sole discretion at the time of the submission of the Participant acceptance of an offer to purchase a HUD Unit, the Participant shall complete the work of rehabilitation of each such HUD Unit within ninety (90) days following the close of the HUD Escrow. (i) Scope of Rehabilitation - The Participant shall rehabilitate all HUD Units acquired from the Agency in accordance with the ARR Rehabilitation Standards noted in Exhibit "E". Furthermore, the Participant shall prepare a Scope of Rehabilitation for each HUD Unit setting forth in detail the work that Participant agrees to perform on each HUD Unit purchased by Participant. The Scope of Rehabilitation shall be submitted by the Participant to the Agency concurrently with the executed HUD Unit Purchase Agreement and related HUD Escrow documents. (ii) HOME Program or Agency MAP Program Assistance to Qualified Homebuyer - All HUD Units acquired and rehabilitated under the ARR Program, wherein the Qualified Homebuyer has applied for either HQME Program or Agency MAP Program assistance, will be reserved for sale to and occupancy by low- and moderate-income households, to be sold at affordable housing cost as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, or Part 92 HOME Investment Partnerships Subpart 7. (92.206), which requires that the value of the HOME assisted property to be acquired by the Qualified Homebuyer must have a value that does not exceed 95% of the area median purchase price of the HUD Unit, whichever funding source is used for the Participant's Qualified Homebuyer. (iii) Disposition of HUD Units and Qualified Homebuyer Eligibility - The Participant will cause the marketing of each HUD Unit to prospective purchasers. Participant will screen prospective purchasers for eligibility in accordance with this Agreement, specifically to insure that Buyer meets the applicable HOME Program and/or Agency MAP Program Income Guidelines in accordance with Exhibit "B". Participant shall cause the opening of a New Home Escrow with prospective purchasers and will take all steps necessary to ensure each New Home Escrow is closed within forty-five (45) days from the date of its opening. At the close of the New Home Escrow, the ARR Covenant shall be fully executed and filed for recordation. The form of the ARR Covenant is included in Exhibit "D". 6 CDC 1999-19 E. [205] HUD Escrow The Participant is under no obligation to purchase any HUD Unit from the Agency and the Agency is under no obligation to transfer any HUD Unit to the Participant unless the Participant has first completed a HUD Unit Purchase Agreement for the particular HUD Unit as identified on a list of HUD Units as submitted by the Agency to the Participant. The parties will open simultaneous escrows (e.g., the HUD Escrow) to provide the acquisition by the Agency of each specific HUD Unit which the Participant has agreed to purchase from the Agency. The parties shall execute the escrow instructions and documents as set forth in Exhibit "D" as may be necessary to accomplish the foregoing. F. [206] Affordable Housing Cost For the purposes of complying with this Agreement, all HUD Units shall be sold to low- and moderate-income households (e.g., Qualified Homebuyers) at affordable housing costs as such term is defined in Health and Safety Code Section 50052.5, or Section 8, (24 CFR 813), whichever is applicable to the Qualified Homebuyer's HOME Program or Agency MAP Program assistance, if any. The Participant agrees to be bound by all limitations for Qualified Homebuyers as set forth and in each Agency Quitclaim Deed for a HUD Unit. The form of the Agency Quitclaim Deed is included in Exhibit "D". The Participant shall be responsible for ensuring that all documents required of such low- and moderate-income households are executed and forwarded to the Agency by a date no later than forty-five (45) days following the opening of the New Home Escrow, including but not limited to the HOME Program or Agency MAP Program Checklist, Verification for Applicant Eligibility, First-Time Homebuyer Disclosure Statement, Application Affidavit as applicable under the HOME Program or the Agency MAP Program as included in Exhibit "F". III. [300] REHABILITATION/DISPOSITION OF THE HUD UNITS A. [301] Rehabilitation bv Participant Participant and Agency agree that the central purpose of this Agreement it to provide for quality rehabilitation of each HUD Unit purchased from the Agency in a manner consistent with the terms and standards of this Agreement. Each HUD Unit acquired by the Participant shall be rehabilitated in accordance with the rehabilitation standards noted in Exhibit "E", attached hereto and incorporated herein. With respect to each HUD Unit, the Agency shall approve in writing all specifications, and plans, if any, including but not limited to landscaping plans, designs, and specifications of each HUD Unit to be rehabilitated as well as the proposed Marketing Plan for each HUD Unit prior to the commitment of the Agency to acquire any HUD Unit pursuant to a HUD Unit Purchase Agreement. Such approval of the Agency shall be evidenced by the Director in his/her reasonable discretion as consistent with the goals and objectives of the ARR Program, or his/her designee. 7 CDC 1999-19 1. [302] Cost of Rehabilitation The cost of undertaking the Project, including the costs of acqulSltlOn, rehabilitation, marketing and sales of each HUD Unit shall be borne solely by Participant. The Agency shall have no obligation to pay for any cost of the Project. The Participant acknowledges and agrees that the profit, if any, to be made by Participant from the disposition of each HUD Unit to a Qualified Homebuyer shall be limited to no more than fifteen percent (15%) of the gross sales price at the time resale of each such HUD Unit after rehabilitation to a Qualified Homebuyer. 2. [303] Bodilv Iniury and Property Damage Insurance Participant shall indemnify defend and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of Participant's activities under this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of One Million Dollars ($1,000,000) combined single limit policy, including contractual public liability, as shall protect Participant, City and Agency as additional insureds for claims for damages arising from the Project. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on any HUD Unit or otherwise pursuant to this Agreement carries workers' compensation insurance as required by law. 8 CDC 1999-19 3. [304] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City as designated by the Director shall have the right of access to each HUD Unit, without charge or fee, at normal construction hours during the period of work for the purposes of the inspection of the work being performed in constructing the rehabilitation on the HUD Unit. The Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this Section 304 resulting from the gross negligence or willful misconduct of the City or Agency while on the HUD Unit. This Section 304 shall not be deemed to diminish or limit any right which the City or Agency may have by operation of law irrespective of the Agreement. Nothing in this Section 304 shall be deemed to make either the City or the Agency a guarantor of the work of rehabilitation or improvement of any HUD Unit. 4. [305] Local. State and Federal Laws Participant shall carry out the Project and all related activities on any HUD Unit in conformity with all applicable laws, including all applicable federal and state labor standards as applicable; provided, however, Participant and its contractors, successors, assigns, transferees, and lessees are not waiving their rights to contest any such laws and rules or standards. 5. [306] Anti-Discrimination During Rehabilitation Participant, for itself and successors and assigns, agrees that in the rehabilitation of the HUD Unit provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [307] Taxes, Assessments, Encumbrances and Liens Prior to the issuance of a Certificate of Occupancy for any HUD Unit, Participant shall not place or allow to be placed on such HUD Unit any mortgage, trust deed, encumbrance or lien other than as expressly approved by the Agency in writing or as otherwise described in this Agreement. Participant shall remove or have removed any levy or attachment made on a HUD Unit, or provide the Agency with assurance of the satisfaction thereof within a reasonable time but in any event prior to a Qualified Homebuyer. C. [308] Prohibition Against Transfer of the HUD Unit and Assignment of Agreement Prior to Recordation ofa Certificate of Como let ion of the HUD Unit 1. Prior to the recordation of a Certificate of Completion by the Participant for a HUD Unit, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of whole or any part of any HUD Unit. This prohibition shall not be deemed to prevent a transfer of a 9 CDC 1999 -19 HUD Unit to a Qualified Homebuyer or the granting of temporary or permanent easements or permits to facilitate the rehabilitation of the Project. 2. Upon obtaining a Certificate of Occupancy from the City for a completed rehabilitation of a HUD Unit, the Participant shall sell such HUD Unit to a Qualified Homebuyer in accordance with and subject to the restrictions set forth in this Agreement. 3. The deed or other instrument of transfer by the Participant to any purchasers of the HUD Unit shall require that the unit be owner occupied by persons living in the units as their principal residences and shall further require that such unit shall remain available at affordable housing costs to the families of low- and moderate-income for a period of not less than ten (10) years subject to any other exceptions as may be provided by the Agency. 4. The Participant may not rent or lease any HUD Unit to a third party and during the time that the Participant may hold title to a HUD Unit, no person may use the HUD Unit for any residential dwelling purpose. D. [309] Mortgage. Deed of Trust. Sale and Financing; Rights of Holders [310] No Encumbrances Except Mortgages. Deeds of Trust or Sale for Rehabilitation Mortgages, deeds of trust other encumbrances of each HUD Unit are to be permitted before completion of the rehabilitation of a HUD Unit but only for the purpose of securing loans of funds to be used by the Participant for financing the acquisition or rehabilitation of improvements on the HUD Unit. Participant shall not enter into any other conveyance or lien for financing without the prior written approval of Agency, which approval Agency agrees to give if any such conveyance or lien for financing is given to a bank, savings and loan association, or other similar lending institution and the terms of said financing are reasonably acceptable to Agency. The form of approval by Agency shall be in writing which references this Section 310, executed by the Director. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. E. [311] Right of Agency to Satisfy Other Liens on the Proiect Prior to the completion of the rehabilitation on any given HUD Unit, and after Participant has had written notice and has failed after a reasonable time, but in any event not less than thirty (30) days, to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on a HUD Unit which are not otherwise permitted under this Agreement, Agency shall have the right, but not the obligation, to satisfy any such lien or encumbrance. 10 CDC 1999-19 IV. [400] USES OF PROJECT OR HUD UNIT; AFFORDABILITY COVENANTS A. [401] Uses - Covenants Running with the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to any HUD Unit, that for the period of time set forth in the Agency Quitclaim Deed, each of the HUD Units acquired by Participant shall be devoted to and available for sale solely to persons or families with an income which are very low, low and moderate, as those terms are defined in Health and Safety Code Sections 50093 (low- and moderate-income) and 50105 (very low income), with sales costs of each residential unit to be at an affordable housing cost (as such term is defined in Health and Safety Code Section 50052.5, a copy of which is attached hereto as Exhibit "C", or 24 CFR 813 whichever funding source is applicable to the Participant's prospective Qualified Homebuyer for the HUD Unit. The Participant further covenants and warrants that Participant shall undertake the rehabilitation on the HUD Units in accordance with the standards set forth in this Agreement. Participant covenants to obtain all necessary permits and rehabilitate each HUD Unit in conformity with all applicable laws. Failure to obtain all necessary permits shall be a default under this Agreement. Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any HUD Unit, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of any of the HUD Units. The foregoing covenants shall run with the land. These covenants shall be expressly incorporated in the Quitclaim Deed from the Agency to the Participant. B. [402] Maintenance ofthe HUD Units Maintenance Condition of Each HUD Unit. Between the date of the close of each HUD Escrow and the date of the close of the New Home Escrow for each such HUD Unit the Participant for itself, its successors and assigns hereby covenants and agrees that: (a) The areas of each HUD Unit which are subject to public view (including all existing improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time following the date of close of a HUD Escrow, there is an occurrence of an adverse condition on any area of a HUD Unit which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Participant in writing of the Maintenance Deficiency and give the Participant thirty (30) days from receipt of such notice to cure the Maintenance Deficiency as 11 CDC 1999-19 identified in the notice. In the event the Participant fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may conduct a public hearing following transmittal of written notice thereof to the Participant ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Participant has failed to comply with the provision of this Section. If upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, described above, thereafter the Agency shall have the right to enter the HUD Unit and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency on the HUD Unit authorized by this Section shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce the lien in the manner as provided in Subsection(c), below. (b) Graffiti, as this term is defined in Government Code Section 38772, which has been applied to any exterior surface of a structure or improvement on a HUD Unit which is visible from any public right-of-way adjacent or contiguous to the HUD Unit, shall be removed by the Participant by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that such graffiti may become visible from an adjacent or contiguous public right-of-way but is not removed within 72 hours following the time of such application, the Agency shall have the right to enter the HUD Unit and remove the graffiti without notice to the Participant. Any sum expended by the Agency for the removal of such graffiti from the HUD Unit authorized by this Subsection(b) in an amount not to exceed $250.00 per entry by the Agency, shall become a lien on the HUD Unit. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Participant, the Agency shall have the right to enforce its lien in the manner as provided in Subsection( c ),below. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section expressly include the power to establish and enforce a lien or other encumbrance against the HUD Unit, in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the as amount reasonably necessary to restore the HUD Unit to the maintenance standard required under Subsection(a) or Subsection(b), including attorneys fees and costs of the Office of Agency Counsel (including salaries and wages of the legal staff and pursuant of this Office of Agency Counsel) as may be associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. The provisions of this Section, shall be a covenant running with the land, and each HUD Unit, and shall be enforceable by the Agency. Nothing in the foregoing provisions of this Section shall be deemed to preclude the Participant from making any alteration, addition, or other change to any structure or improvement or landscaping on the HUD Unit, provided that such changes comply with applicable zoning and building regulations of the City. 12 CDe 1999 -19 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Rehabilitation The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement with respect to each Participant HUD Unit shall remain in effect for the term as set forth in the Agency Quitclaim Deed. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. V. [500] GENERAL PROVISIONS 1. [501] Termination and Breach (a) Termination Without Default or Breach. This Agreement may be terminated for the convenience of by either party who is not then in default upon thirty (30) days notice to the other party; provided however, that for any HUD Unit for which a HUD Escrow is then open, such HUD Escrow transaction shall be closed and the HUD Unit shall thereafter be rehabilitated and offered for resale to a Qualified Homebuyer as set forth in this Agreement. (b) Defaults and Breach - General. Failure or delay by either party to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. Any failure to delay by a party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or 13 CDC 1999 -19 more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. In the event that a default of either party may remain uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this agreement and seek any appropriate remedy or damages by initiating legal proceedings, if necessary. 2. [502] Notice Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party under this Agreement shall be in writing and shall be delivered to the appropriate party by personal service or U.S. Mail at its address as follows: Participant: Hector Vizcarra Vizcarra Construction & Development Corporation 1135 East Alosta Avenue, #208 Glendora, California 91740 Agency: Economic Development Agency 201 North "E" Street, Suite 301 San Bernardino, California 92401 3. [503] Conflicts ofInterest Nonliabilitv No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participate, or any successor in interest, in the event of any default or breach by Agency or Participant, or for any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. Participant represents and warrants that it has not paid or given, and shall not payor give, any third party any money or other consideration for obtaining this Agreement. 4. [504] Inspection of Books. Records and Reports Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to any HUD Unit as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to any HUD Unit as pertinent to the purposes of the Agreement. 14 CDC 1999-19 The Participant shall provide quarterly reports to the Agency regarding all HUD units acquired and sold under this Agreement. 5. [505] Indemnification The Participant shall indemnify and hold harmless the Agency and the City and the Agency's and the City's members, officials, employees and agents from and against any and all claims or liability arising from Participant's actions under this Agreement or from the conduct of Participant's business or from any activity, work or things done, permitted or suffered by Participant and shall further indemnify and hold harmless the Agency and City and their officers, employees and agents from and against any and all claims arising from any breach or default in the performance of any obligation of Participant under the terms of this Agreement arising from any negligent or wrongful act or omission of the Participant or Participant's agents, contractors, employees or invitees and from and against all costs, attorneys' fees, expenses and liability incurred in the defense of any such claim or any action or proceeding brought thereon. Participant's agreement to indemnify and hold the Agency and City harmless shall extend to any claims or liabilities, including but not limited to claims pertaining to environmental conditions, that may arise as a result of the Agency's acquisition and/or ownership of any HUD Unit that is the subject of the Agreement. VI. [600] SPECIAL PROVISIONS 1. [601] Submission of Documents to Agencv for Approval Whenever this Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. 2. [602] Successors in Interest The terms, covenants, conditions and restriction of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant. VII. [700] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Exhibit "A" through Exhibit "F", which together with this Agreement constitute the entire understanding and agreement of the parties. IS CDC 1999 - 19 No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. If any part or provision of this Agreement is in conflict or inconsistent with applicable provisions of federal, state, or city statues, or it is otherwise held to be invalid or unenforceable by any court of competent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this agreement shall not be affected thereby. All waivers of the provisions of this Agreement must be in writing by the Director of the Agency or the Participant, and all amendments thereto must be in writing by the Director of the Agency or the Participant, except that the Director may only agree to non-substantive changes hereto with concurrence by Agency Special Counsel. Substantial changes to this Agreement shall require the prior approval of the governing body of the Agency. Each individual signing below represents and warrants that he or she has the authority to execute this Agreement on behalf of and bind the party helshe purports to represent. VIII. [800] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY [801] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized by the governing body of the Agency and executed and delivered on behalf of the Agency by its undersigned officers on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Director as evidenced by the date first above shown. IIII IIII IIII IIII IIII IIII 16 CDe 1999 -19 IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. "AGENCY" Redevelopment Agency of the City of San Be rdino By: Approved as to Form: By: j. W &-~-C\~ . AgenCy~ounsel . ~~ "PARTICIPANT" By: P sident, Vizcarra Construction & Dev Corp Title: By: Title: By: Title: 17 CDC 1999-19 EXHIBIT "A" 1999 ARR AGREEMENT "Map of ARR Zone" r---''L.. /' r-i:::l~' - ':' '\;d cV ~ j'.J F I', I' -.-~" ,,' < ,,"' ,,"', -g~.., ,&' n~ I ,!~>:r ,If ~ ~,~ I;~'f' '10'~ /~':-~\Y:5v . "--.J... ""'~ ~'W _ :' ' 'I,,' I '~- I .,cJ ' "'< """ " . c , ;;:;;-0" ff~'- l'~;;; · . '\- ~" :S ',' " '::m. " .: '" ;':,' ~' \ i C I ~ I ~ ',' : ' '~:' ;:,'" - IT j _, I ~q 1'-::;::' I~L- ~i,~i: 'm III i , ' , = ",_.. I~ . , \_~_~,' ~ I( ,,1--JlW"" ,,+-C--j - ," .. . ' ; I. IT'; ," "I' -'--,-L----;~ ~ -I < I 'ril~ ~J, I' , "'_'"~ J" :' I ., 1- , 11 --.i'i ,1 l!=ttlr- ..~' Ic-k I I, '~- j ~ ~ ;' I'" ' -'-- H -;=;-~I;- ''''WJ'/~k: . ! I~:~ _ :1 --'';:-',,~ ! I ~ I .." . ,j Ii' -1 ;:! ~ rn- I '~ ; ~ F-ir ", ,r ~...JJj m \'i "1,:1 -' ~~~I~\'lnv fJ !-=--.. J 1, DHWS\!\f. F , I I.. '" I':' . 1--.- l' c" .~ .r" , I \ :;J J? !5 >rr-T '1 "~"<." 1 ~ Ll=7" ~ I I.-_.:J fLIi ~ 1 ..~ \;' ~ _ ,;""'~' , ': .' -'1 "I I J - I..-..J !-J~ ~ Li ~1' I ""~." '.,---"-1 1/ "'~{ -:; i-;' 71- tr- I '^,."" lJ ,/~~ i'--i 7l I' ,,7 :!1 ~,I-'~~ ~ BOULDEWf. i \l t r"-" ~J ,I, Ll ); ~ Q :0<-< JJ -" 0 - - m m en :::s -. Pl a.~::;l s:::::!:tJJ _o~ _:::s::;l -C N ~ -COB: ""l :::s ::;l o (I) 0 <.crn ""'I m 3 en - nn UlJ > :II :n l1<> ~ )> -u -u .... o to ~ 3 '" o -< r 3 iD o o C ::J -< 1>> .... lD 1>> ::E 5- 5' Q. -< j, <;I ~. 5- S- o .:< ~ in - ~ iii - I CDC 1999 -19 I I I 8 x ~fl ""I i _ MERIDll~ AVE. ..II i I I I I >> I ,z z~.-- "\\\:0- - . .-}'\\\".,) I i -::. /1> ~ v," I' : _:/J L.._.._ '" Vi:. ill';;::' .m-~ I .. L smElT. - E <5 >> PEPPER AVE ; I" '-+-.. i -! I "1 .. ~ .. ----.. R.1VCHO: ' .1\"[ . . oJ tr- 1_ I ALIE! 11\ STREET L- w o OF.\~G! /'" CDe 1999 -19 EXHIBIT "B" 1999 ARR AGREEMENT "Current Household Income Listings for Qualified Homebuyers" EXHIBIT "B" 1999 Income Limits Income HOUSEHOLD SIZE Level I 2 3 4 5 6 7 8 Very Low $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 (50%) Lower* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 (80%) Median $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 (100%) Moderate** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 (120%) " * If Participant's Buyer is using HOME Federal Funds the Maximum Annual Income afamily can earn is 80% of median income according to household size. ** If Participant's Buyer is using State Low/Moderate Income Housing Funds the maximum annual income a family can earn is 120% of median income according to household size. P:tFormslARR ProgramlARR II/cume Limil.I".doc CDC 1999 -19 EXHIBIT "C" 1999 ARR AGREEMENT "ARR Program - Steps and Process for Circulation ofHUD Unit Listings by the Agency and Selection of HUD Units for Purchase by Participant" CDC :!:1999 -19 ECONOMIC DEVELOPMENT AGENCY CITY OF SAN BERNARDINO "Acquisition Check List" o COpy OF HUD SALES CONTRACT (Land Use & Part A-D) o REQUEST FOR PROPERTY INSPECTION ANALYSIS FORM To be executed and returned to EDA five (5) days from the date of list of properties is provided to participant D COPY OF ESCROW INSTRUCTIONS (HUD TO EDA) D COPY OF ESCROW INSTRUCTIONS (EDA TO PARTICIPANT) D PARTICIPANT CONSTRUCTION/REHABILITATION WORK WRITE UP TO EDA INSPECTOR D PRELIMINARY TITLE REPORT D (2) SETS OF ESCROW INSTRUCTIONS TO SIGN AND RETURN EXHIBIT "1" \\EDA_SAN BERDO\PUBUC\Forms\ARR Pr09ram\ARR Process.doc Revised 7199 3 CDC 1999 -19 Economic Development Agency City of San Bernardino . ACQUISmON, REHABILITATION & RESALE PROGRAM (ARR) ARR PROCESS A. Exclusive Sales 1. EDA will receive weekly (Thursday evening) an exclusive list from HUD of units available within the Revitalization Zone. 2. EDA will distribute exclusive list to Participant no later than Friday A.M., following receipt of Thursday's list. 3. EDA has seven (7) days from receipt of list in which to express interest in any property. Thus, Participant will notify EDA within five (5) days (Tuesday, 5:00 p.m.) of receipt of list from EDA interest in property. 4. On fifth day, Participant will submit to EDA: (1) Request for Property & Inspection Analysis form. (2) HUD Sales Contract and attachments for signature by EDA staff. 5. EDA will notify Participant by ih day (Thursday, noon), when documents are ready for pick-up. B. Direct Sales 1. Tuesday evenings HUD list properties on the Internet (Direct Sales Internet Lottery Process) 2. EDA approved Participants must express interest to purchase properties by 3PM Friday (3 days after HUD's posting of Direct Sales List). Participant must perform due diligence of properties (completed property and inspection form). 3. Participant must retain HUD lottery number/confirmation number of transmission. HUD will select winner by Wednesday evening (1 week after posting Direct Sales List). 4. List of winner will be posted Wednesday evening. Participant should check this list promptly to verify whether they are the winner of the property. 1 CDe 1999 -19 5. Upon verification of HUD winning lottery number, Participant will have until end of business day on Friday (2 days after HUD posts winners) to deliver a complete sales package to EDA include: - HUD Sales Contract (Original) (Include HUD Addendum A-D - HUD Land Use Restriction Addendum - Request for Property Inspection Analysis Form 6. EDA will review and execute sales package by 12:00 p.m., Monday. Participant to pick up Monday and overnight complete executed sales package to: Golden Feather, C/O Tammy Massone, 225 East Airport Drive, Suite 100, San Bernardino, California 92408, (909) 890-2370, (909) 890-3831 FAX. 7. Close of Escrow - HUD executes contracts and opens escrow at Arrowhead Escrow, 935 South Mt. Vernon, Suite 106, Colton, California 92324. (45 day maximum for closing) C. General Notes 1. Important - EDA purchases property under the name of "The Redeveloment Agency of the City of San Bernardino, a public body, corporate and politic." Therefore, all HUD contracts and documents must reflect this entity. 2. EDA's purchase is funded by Participants private lender or other funding sources with a concurrent escrow to close from EDA to the Contractor. (EDA does not provide any funding for HUD purchases or rehabilitation). 3. After close of escrow from EDA to ARR Participant, Contractor performs rehabilitation on house per the original construction work write-up and markets property for sale. Contractor is responsible for obtaining permits with building and safety for all repairs to the house. 4. EDA Inspector performs a final inspection of the property (after rehabilitation in accordance with "Contractor Construction Work Write-up") to insure all work is completed as per these specifications. 5. Assuming the buyer has been qualified and pre-approved for the Mortgage Assistance Program (MAP), by the primary lender and EDA, and a final inspection has been performed by EDA Inspector, EDA will issue a check and fund the MAP for the buyer. P:\Forms\ARR Program\ARR Process. doc (Revised 7/99) 2 CDC 1999 -19 EXHIBIT "2" Economic Development Agency City of San Bernardino "Request for Property and Inspection Analysis Form" (to be submitted by Participant to EDA with HUD Sales Contract and Attachments) .....,.. I. Particioant Information ... ... Date Submitted to EDA: ARR Contractor: Contact: Phone Number: e- ll. Prooertv Information . HUD Case #: Status: 0 Uninsured o Insured Check Approximate Location in Revitalization Zone (See Map - Exhibit "A"). Property Address: City/Zip: Bedrooms: Bath(s): Total Sq. Ft. Estimated Costs Actual Costs HUD SALES PRICE $ $ ELECTRONIC BID PRICE (IF APPLICABLE) $ $ HUD DISCOUNT PRICE $ $ REHABILITATION COSTS (L & M) $ $ PARTICIPANTS OVERHEAD $ $ TOTAL PROJECT COSTS $ $ ARR SALES PRICE $ $ ARR PARTICIPANT PROFIT $ $ % Profit (Maximum profit is 15% of Total Project Costs) Amount of Loan for Property (Acquisition & Rehabilitation Loan) ARR Participant Lender: Add ress: Phone Number: .. III. BUYER INFORMATION Buyer(s) Name: Family Size: Annual Gross Income: MAP Loan: (Not Buyer's to exceed 10% of Contribution: Participant <I; Purchase Price) $ (Minimum of $500) $ Contribution: Closing Date Lender Name/Contact Lender Address: City: Lender Phone: Lender Fax: Please check Appropriate Categories: Sr. Citizen(S) 62 Or Older 0 Female Head of Household 0 Disabled Famiiy Member 0 Hispanic 0 White 0 Asian or Pacific Islander 0 American Indian 0 Black 0 I OFFICE USE ONLY: % of Median = I ARR Participant Signature EDA Representative Signature Date EDA Review Contract/Inspection Form/Date EDA/Pre-Acquisition Inspection Signature/Date EDAjPost-Acquisition Inspection Signature/Date \\fDA_SAN BERDO\PUBUC\Forms\ARR program\ARR Process.doc (Revised 7/99) 4 CDC 1999 -19 EXHIBIT "D" 1999 ARR AGREEMENT HUD Escrow Documents: (i) HUD Contract (Agency and HUD) (ii) HUD Unit Purchase Agreement (Participant and Agency) (iii) Form of Agency Quitclaim Deed and ARR Covenant (iv) Other HUD Escrow Documents CDC 1999 -19 LS. DEPT. OF 1I0l'SI\C 8.: lIRBAi\ I)E\TLOI'\IE\T Addendum A IRF\'419'l) .........FORFEITURE ..\\0 EXTENSIO~ POLICy......... ,\1111\ 'I) Propcr!\ III 'I'OSIIIOIl S;lIeS ot'lll Il ,kcF"f,'d 1" "i"''1II'" .Ire 10 close \\ 'Ih'll 4' d.l\' 01 .I" c-pIJrkC ld .I III I) <)'1,\ (I 99) S;lIe, COIHr;ld olt'o w pLlrch;lse Forfeiture of L;lrlle,1 \lolley Deposits, The brILlle b\ .I I'lIrclu\o 10 close OlltlrC SJIe 01 prop,!!:- ',I 1IIIIIllhe aI!o\\;lbIe IllllC perlo,!. Illelll,LIl; .111\ nl,'Il"OI" ;IJIlIL'd hL lIt;U. \\1l1 fc:'\uh \Il th~ forft.."lture Oflht: t"Jrlll''lt nIUllt.::- l:I..TI"IlL C$Cpt \"heft.." the pUfch..1sCT prt.'sl'll(:) ~1\k'llrn,-'lllJ{I$fl tu lit I) t!lJ! lHit' ofthc spccul ellCLlmSIJIlCCS dcscrlbed 111 p;lrJ~rJf'lh (.II ;lllc! Ib) belo\\ of tinS sectlolll];]s occlIrred (.I) lll\'eslor I'Llrch;lsers (I I The f;lllllre by an In\estor PlIrclrJser 10 close un .Ill ulllnsured SJIe \\,,[1 resuII 111 furfcllurc 01 Ih,' en!IlC C;lll\e" nl0ne, dcposlt (21 Frfty percenl of the earnest mune\' depOSIl 0" JIlllbUred sale \\'111 be returned 10 an [n\e51\)[ Purc'luser \\here Ill'!) (or J DllecI Endorsement lender uSln; 11\ '[) ~lIllk:,nc'\I (klerrnlnes \hJI the Purch.lser IS 11\11.111 accel'lJbk borro\\er ibl (I) O\\ner,Occupant Purchasers The cOllrt" CJrncSI fl10ney dCpO':ilt \\ill nL' rI'IlJl;:~'d III JIl ll\\t1l'r-occupant Pu[chJS('[ \\11\) fJil" {\> (II)"""' \\hell', sm...:c thl' (lHltrJ(t of SJk was signed .1ht'fc llJ:-i bCl...'11 J de;Jth III the Ir1Ul1l',juk' Lifll:i-, (1..-1.1l1tlch.:l holJl'l, spouse, or chtldrl'tll1\ 1[1~ III the '.d:1\l' h\ll;-;l'I1l\!dl (I) \1l1 nH:fC hJS bt'l'l1 J [ccent Sl'I10US dlnc.)) \11 thl' 1;;~llll'dIJtl' fJllllly IllJt has resulted In SlSllll-k;lnt flll"lll,-"J\ l'\Pl'll'-.l'') ur Sllb'I,\JlIlaI [0>' u!lnco111e, thl" .1"\\ el\eh' ;III,', ~I!I,' Ih,' f'lllchJser's flnJnclJI ab,ll1\ to Cllh\' Ihc' s,lI,' lllll rhcre I13S bCl'n a loss of Job h~ (1r:~' (d th\.' 11r,;~~.!:" br:.'.h.\\'..lllllt'rs, Of Sllhs\]nt1J1 Ius,> ul llk\\l1\l' thl\)L;h 11,1 t"Jult \)i :11'-' l'urch.lser, (1\) In the C.lse ofJn Il1sured S.lIe, IILl) (\If.l 1)11,',1 h,.I.""menl lellder USlllg lilT) gllldeIlll"') dc'lelllllll"S Ih.lIII1,' rurcluser IS not .In Jcceptable borrll\\ n, or (v) Felf other g\l()d caUSe,.IS deter1111l1cd b:- Ille i'1,'lel ,)Iflc'c' (:) In the cas~ of .In uninsured 10Jll "here', (IeS!'llc' ~,")d f;lllh effurts by Ihe Purch.lser, the[e IS .Ill IllJbdll;. 10 oblJln J Tllurtgage 1..)30 fronl a recognlzcJ nH)ftgJgc kll~kr. 50 percent of the earnest nloncy Jep(),)ll \\ III be rt.'lun1cd (lIOn either type ofsJle, forfell 100 percellt 01 Ihe depcJSllln thosc InstJnces \\here [H) d<JCUl11L'IlIJII<J1l1S Subl11l1led, "hele the docurnenut[OI1 f.lds to provldc Jll accepul':C CJuse for the Buyer's f.l1lure 10 cluse, or l\ her~ d"cumel11:1lll)[\ IS l10r prollded \lJlhl11 .I rC.lsol1Jbk time f\)II\)lllll~ ':\11111.1(1 L'Jl1celIatlol1 (e g, 30 dJYs) Extcnsions. 11lC Golden FeJther Re.llty otTlce \\rll gl.ll1l e,\$IhIOI1S uf lime upon \\nllen re'luest from pu[c1user E\lel1SlOns of IllllC to (I(\sL' the S;l1e .Ire entrrel;. \\ Ithln the SclIer's d'SL'lc'11l111 :\11 C\:c'I1Sllll1, If gral1ted, \\ 111 be ul1der the follol\ Il1g Clllld'llons (JI ..\ \\tlllel1 rC'lIl"" fLlr.ln e\\enSIl11' I1llhl bt' r,',c'lce'cl h.. (j(\l\lel1 FeJlher Rolt, 110 I.llc'[ th,1I1 fic,' dJ\5 bd\llc tlrL' 'Llrc'du'c'.1 de.ldlllle fclf clOSing \1>1 Ihe d\J(umel1lJtlol1 submitted l\llh lire [e'cp:C'.lllll,,1 e,l,lhirsh the cause of delJ:- ,\lId t!UI1110r!;Jgl' .I1'pro\,1I" 1l11111111,'''1 dUTlng. lht.' c\tL'nSlon period ICI ..\n e\t(I1Sllll1 'lJlI be for a pellllll.rt 1'111(,'11 ,.I;c'I"\.1l dJ,s.lt.l ke 11f537' (1) (~()~K ~(J \1.1\'5, 57:'0 nO) h',', (,elllf'L'd fUllds) \\111 be (kpihlted 111 eS\I"'.\ 1l11[lIc'c!IJ:':;, UP'"1 JPI1fll\.I1 (l1, 1\tL'Il':>1(l11 fL'~'i -dull b<: fCIJlrlt.:d t'\ :)l,lkl l!.1 ~-;\$lJl; dl..lc') !lut U(I.:ll[ (c) :\1. thl...' (11111...' u( (IU')lllg.. UfltlSL'J \,'\!'-'lhl\)11 k:." '.\ illl)\.' l~rurJteJ lO lhl' PU[lhJ'-,l'r .llld [l'!Ulll..kd by l'')dO\\ (fl rhc' grJl1llng ofo",' e\I,'lhIUI1 ,}'.I'II1,,1 \.1'1: '.I:,'IIr,' Se'ller tu grJl1t Jddllll)l1.lIc\iL'[hl''''', Jl1d the Seller ,h.lll,k,\.lIc'.1 Ih.'Lllllt fllf till' PUfl..'h..1'1l'f'>' !'.uk:,' III ,-'1\ hI..' ::".'~' ,>.lk ll!'t)ll tl1l'l'\IHrJIllHl nft!\\.: \l[I~1[ull'l\l\\l1S Pl'lll)~i (H uplln t'\;':~.\tj(,[1 \1( tht'l'\ll'lhlI111 CDe 1999 -19 Allowable Closing Costs. Th~ folio" 109 closing costs with a combined value of not more than 3% of line 3 of th~ 9548 (199) Sales Contract may b~ credlt~d to Line 5 of the Sales Contract Funds not consumed will be credIted to the Seller. 1 "'0 Loan Onglnatlon Fee CredIt Repclrt Impounds Interest Ilazard Insurance Lenders Co\'elage Poky 0" ners Coverage Policy i'otary Taxes (Current tn year) 1I0A Dues (Current month plus one) AUTO\lA TICALL Y PAID BY HeD (Iloltnc!wfed on hne 3) R~cordJ[1g Fees - De~d and \lortgage City/County Tn/Stamps [sero" ClOSing Fee \\'Ire Transfer Fee to \\'ashlngton. DC. BUD Case 1\0 Property Address ----~---_._--_.-_. City" ----"--- ----------------- _._---~-- Seller Disclosure. Seller makes no representations or "arrJn\1es concerning the condition of the property, including but not Ilnllted to mechanical systems, dry basement. foundation, structural. or compliance with code, zoning or building requirements and will make no repairs to the property after e:(ecution of tIllS contract. Purchaser understands that regardless of whether the property IS being financed with an FHA-insured mortgage, Seller does not guarantee or warrant that the property is free of VISible or hidden structural defects, termite damage, lead-based pamt, or any other condition that may render the property uninhabitable or otherwise unusable, Purchaser acknowledges responSibility for taking such action as it believes necessary to satISfy itself that the property IS In a cond1l10n acceptable 10 it, ofbws, regubtions and ordinances affecting the property, and agrees to accept the property in the condItIon e:(isting on the date of this contract. Seller disclosure concerning HOA dues, t'..!ello Roos ta:(es, assessments, or any ta:( concerning HUD homes is based on available infonnatlon but not deemed complete or accurate It is the responsibility of the Buyer to obtain all infomlation conceming these issues, 'Valk-Thru Inspeetion. All purchasers are strongly encouraged to perform a walk through inspection PRIOR to the close of escrow, If a purchaser discovers a property condition that dId not eXIst at the time of sale they must immedIately notify HUD's property manager, Golden Feather Realty, of the damage The buyer assumes full responsibility for the property and its condition on the date of close of escrow The Department assumes no responSibility. and will make no settlement, for damages reported to HUD after the close of escrow (See Item 1113,E of BUD Sales Contract) Buyer Certification 1 \W certIfy th:ll I" e have been Interde\\ed. completed a loan application, venfica\1on of employments and obtained a full credit report fHll1lthe lender that has proVIded the attached Letter of Commitment. li"e understand that L'we \\ 111 forfeIt our earnest money d~pc)slt If" c entn Into thiS contract \\ Ilhoul completing tIllS qua It flcatlon proce,ss Slgn.Jturl"S (Purchaser) (Purchaser) ------~---------_. (l'urclusn) (Purchaser) CDe 1999 -19 LAND USE RESTRICTION ADDENDUM Thi~ Addendum IS Incorporated by reference 10 the FHA Sales Contract tor the properTy located at ____, e"ccuted on [h,s same day of __, 199 between (Purch.15er) and [he Depar1menl ot HOUSing and Uroan Development (Seller). Unless :lI1 exception is r,rantcd In willing by [he Sella a The Pure/ld,cr IS expected, at a minimum. to rtpalr [he property according to local code, after which II shall resell the property only [n .1 person who intends [0 occupy as his or her pl/nclpal reSidence and whose income is at (11 below 115 pcrccnl of the median income in the area, when adjusted for fam,ly size. or a Slate. government cnliry. rrihe, or agency thereof, or a pI/Vale nonprofil organiz.alion dS defmed in 24 CFR 291.405. b. [he purchaser shall not resell the properly for an amollnt in execss of J 10 percent of the lIe[ development cost. Net development cost IS the rotal cost of the project. Including items such a" acquisition eOSI. arehlleClural fees, permits Hnd survey expenses, insurJnce, rthabilitatlon. and tJxes It does not me/ude J developer's fee. Total costs incurred by the Purchaser. Including those for acquiSition flIlHnClng, management, rehabilitation. and selling expenses, are expccted to be re,,-"onable ilI1d cu,tomary for the area In which rhis properly" located. e The developer's fee prOVides for Purchaser's overhead anu staffing costs related to the rroject, ond may nor exce~d 10 rercenl of the nel development CO'o1 d fhe propercy may nol b~ occupied by or r~sold 10 any of the Purchaser's officers, direclors, elecleu ur appointed onicials. employees, business associates, or to any indiVidual who is related hv blood. marriage. Or law to any of tile nbove. e There may be no COnn,,! of Interest with individuals or firms that may provide acquisition or rellabilildllon fundmg, management Dr sales services, or other associated with the project 2. Purchaser must provide pmodlC reports, as specified by 24 eFR 291 110 and in tJle format and frequency specified by HUD, regarding the purchase and resale of propcrlJes subject [0 this Addendum. 3. TIli, Aducndum survives the cxpirdtion, if any, by operation of la", or otherwise, at the FHA Sales ConlraC[, and shalllerminale five years from the date contained herem Purchaser Witness Secretory of I-1ou5in~ and Urban Development Seller Witness BY'__~___ CDC 1999 -19 LL\D-B\SED 1'.-\1:\1' ADDE:\DL':\I TO SALES CO:\TR.-\CT - PIWPEHTY Bl'lLT BEFORE 1978 FHA CASE )\;0 PROPERTY ADDRESS A TTACH\IEt"T A _____.________._P3ge I of 4 :'\OTE TO rt'HCII.-\SEHS. HEAL f.ST..\ TE BROh:.ERS A.'\ D r\Gf..'\TS: 17U5 addendum IS mand.Horyfor any propert) blillt before /9;'8 and (onSt.Hs offour parf5 Part A.DISclosure I~( In/vrnwlIon on Lt'ad-Bast'd Paint and 'or Lead-Based Paint f1a:ards. Part B. SIl{t?S C011froct Lead Based Paint Evaluation ConllngenC). PorI C. OHner.QCe/.rant Cl'rrtJiCOllon. and Part D. Purchaser's Addt'ndl~m (0 tht' SO/Ill Contract - Release of Lead Bllsed POInt E\"n/LHlllVn Contingency All parts mid! bt' complett'd as sho\\n 711/s Ll'dd-Ba5cd Pm'll Addendum mlH( be completcd on ar bLjvrc the dale! of the Sales Contract, and !on\'ord{'d to flUD 't'ti,h (he Sales Conl"~ofor am pro{'crr.\ bill!! ht/ore /978 Sales ContraclJ .....!thOllf tfllS .4.(ldt'n(!r~m ....Ill not bt' accepted b\ IIl'D nus Addt?fllhml sun'/n.'s lht' clOSing afthe salt' PART A DISCLOSl 'RE OF ISFOR,\/A nos Os LEAD-BASED PAIVTA,VDOR LEAD BASED PAINT IIAZARDS LEAl) \\ ..\H:'\I"\G ST:\TL\IE'To [q'ry pllrchtlser of any infcrest In rcsllft'nl1al rcal property 011 hhlcn 11 rc')u!cnllOl d\\c11Iflg ...as bwlr pnor 10 1978 /s flOI.lil.'d ill,:: s.,,'h prllpt'rl\ m.n prt'')a:: ('\pnSI4rt' to lcad from ICl1d-b(ued thai "111.\ pl,;ec )vw:g efllidren af nsk ofdt'\e!o{ll!lg lead pOI.'iVnlng Lead pUtsonlng In YOlmg chddrefl n:d\. prod/lct' !X'-'lI,:r:t'flf r:to:lrO!ogIC.-:! dtlml1~t'. Inclwftng learning ddlllJl{/llt'S, Tl'dUCl'/! Inle!ltgcncc qllotlcnl. bchanoral problems, and Impaired memory. Lead pOlsonu::!. .li.H) pO.\t'\.1 p.;nllll.'.Jr ruil.:V {lrt'::?,n,Ull h()fllen nit' seifer ofa!l) In{t'restlfl f"t'')II!elluol prOpt'r(\ IS rt'tildred to pn.J\lde lhe hl/yer ,nth any information on It'ad.udsl'd pOint hll::ilniJ from rl')A. as.h'ssn:t'fltS or InspeCflOns In (he sf..'11cr's possessIOn and nO:lf. the hl..\ cr of any knvi\n Icad-based pelm hr.::ords A risk assessmenf or JflSpl'CIJon lor pusslble Icoi!- ba.h'd pal'll ha:ards IS rt'commemh'd pr/IJr to p(lrchasc SELLER'S DISCLOSL'RE A Presence of 1e3d-b~seJ p3int 3nd'or 1e3d-b3sed p3int h3l3rds (check one below) Known 1e3d-b3sed p3int3ndor 1e3d-b3sed p3int h3l3rds 3re present in the property (expI3\l1): 2 Seller h3s no 3Ctu3! knowledge of 1e3d-b~seJ p~lnt 3ndor 1e3d-b3sed p3\l1t h3Z3rds In the property B RecoIJs 3n,\ reports 3\'3il3bk to the seller (check one below) Selkr h3s pro\Ided the pUlch3ser With 311 3\3r13bk records 3nd reports pert3\l1lng to k3J-b3sed p3ll11 3nd or k3d- b3seJ p~lnt h3Z3rds In the property (ltst dOCUIllems below) 2 Selkr 1t35 no reports or records pert3lf1ln~ 10 k~d-b3sed p31nl 3nd or k~d-b~sed palf1t h3Z3rds in the propert\' --_._..---_._-_._~---~-- I'UKBASER'S ACK-'\OWLEDGEME:\T (\l11l131) C Purch3ser h3S recelHd copies of 311 tnfOm13t1on Itsted 3bo\'e, D. Purch3ser h3S recel\ed the p3mphlet Protect Your f3mrly froIll Le3d in Your Home, L Purcltaser h3S (check one below): I, Requested 3 15 d3Y opportunity to conduct 3 fISk 3ssessment or Inspection for the presence of k3d-b3sed p3ll1t 3nd or k3d-b3sed p3ll1t h3z3rds; or 2 \\'31\ cd the opportunity to conduct 3 fISk 3SSeSSl11enl or tnspectlon for the presence of le3d-b3sed p3int 3ndor le3d. b3sed p31nt h3z3rds BROKERfAGE:\T ACK-'\OWLEDGE:\IEi'iT (ll1itI31) F. Broker'3gent h3S infomled the seller of the seller's obltg3tlons under 42 use 4S52d 3nd lS 3W3re of his/her responslbrllty to ensure eompltance, CERTIFICATIO:\ OF ACCCRACY The following p3rtles ha\e re\lewed the infom13t1on 3nO\C 3nd ccnrl'y, to the besl of thell know ledge, th3t the inform3t1on they h3\e prov1ded IS true 3nd 3ccurate Selkr D3tc Pure hJser Date Purch3sl'r D3te Brokc! Agent D~te 9:% CDC 1999- 19 Attachmcnt A Page 2 of <1 PART B SALES CO:\TRACT LEAD-BASED PAI:\T EV ALUA nON CONTIl'iGENCY This contract is contingent upon a risk assessment or inspection of the property for the presence of lead-based paint and/or lead-based paint hazards at the Purchaser's expense until 12 noon on the 15th calendar day after acceptance, on [Insert date] This contingency willtemlinate at the abo\"C predetermined deadline unless the Purchaser or Purchaser's agent delivers to the Seller or Seller's agent Part 0 of this addendum listing the specific lead-based paint hazards and corrections needed, together with a copy of the inspection and/or risk assessment report. The Seller may, at the Seller's option, within fi\"C days after delivery of Part 0 of this Addendum, elect in writing whether to correct the hazards(s) prior to settlement If the Seller will correct the hazard(s), the seller shall furnish the Purchaser with certification from a risk assessor or inspector demonstrating that the hazard(s) have been remedied before the date of the settlement I f the Seller does not elect to make repairs, or if the Seller makes a counter-offer, the Purchaser shall have five days to respond to the counter offer or remove this contingency and take the property in its "as is" condItion or this contract shall become void. The Purchaser may remove this contingency at any time without clause. II'ITACT LEAD-BASED PAI"T TlIA T IS II\' GOOD CONDITIO!\' IS NOT "ECESSARIL Y A HAZARD See EP A pamphlet Protect Your Filmil\' From Lead ill rOllr /lome for more inforn1ation, Lca,j-Based Pamt Addendum to the Sales Contract - Propeny Budt Bcforc 1978, mcludmg Part:\, Dlsc/osure a/lnJonnill/On on Lead-Based Paint and./or Lead Based Pa/f,1 Ifacards, Part C. 0" I;l'r. Occupant Cal//ical/on (If applicable), and Part D, Purc}"IS('r'S Add,'ndum 10 the Sules COlltraC! _ Releuse 0/ Lead-Bas,'d PUIIl! L,duol/Oll Conl/ngency, if applicable, must also be completed and made a part of this Sales Contracl 9/96 CDe 1999 -19 Attachment A Page3of4 PART C O\\'l\ER-OCCTPA:\T CERTlFICA TlO:" TO BE CO\IPLETED BY ALL OWNER-OCCUPANT PURCHASERS ONL Y Chcck and complete the following, as appropnatc: L'we do not h:.J\c a chlld undcr the :.Jgc of se\cn ye:.Jrs I!\\c do h:.J\'c :.J child under thc agc of sc\cn YC:.Jrs Thclr n3mes 3nJ 3gcS are 3S follows N3mc :\gc Check only one of the following blocks ifchildren under seven are indicated above _ l/we understand that within 15 days after acceptance by HUD of my/our offer to purchase, [he will at my/our expense, ha\'e each of the above-named children tested for an elevated blood level (EBL) and that [;we will provide these tests to HlJD [f I/we fail to provide the test results to BUD within the 15 day time frame, the contract will be canceled immediately without further notice, Further, 1/we understand that ifan EBL condition is identified, [/we ha\'C the option to: 1) cancel this contract and receive our earnest money deposit back, or 2) complete the sale of the property within the understanding that l/we will, at a minimum, have the property tested for the presence of lead-based pJint on all che\vable surfaces and, where leJd-based paint on che\\able surfaces is identified, ha\'e such paint surfaces abated, _1/we fully understand that if a blood lead le\el screening program is not reasonably available or if l/we refuse to have my/our child(ren) tested, 1/we ha\'e the option of closing this sale, l/we hereby acknowledge th:lt this property I/we am/:lre purch:lsing from the Department of Housing and Urban Development may contain lead-based paint. However, despite this possibility, l/we elect to close the sale on this property, Further, l/we agree to hold HUD h:lmlJcss for this action, SIgnature of Purchaser Signature of Purchaser Date SlgnJture ofWllncss Date 'J ()() CDe 1999 -19 Attachment A Page 4 of4 1-:.\1) BASED PAIYf ADDE:\IK:\1 TO SALES CO:\TRACT - PHOI'ERTY BUL l' BEFORE 1975 FilA CASE 1'0 PROPERTY ADDRESS PART D pt'RCfIASER'S .WDESDL,\! 70 THE SALES CO.\'7R.KT- RELEASE OF LE:1D-BtSED PA!.\T EVALWTlO,\ CO.VT/NGE,\CY ~(pl~"'C"d5t!r l111ItLlled PurfA. ([t'm E loft!/{' Lt'dd-HllSt'd Pdull ,.fddClldll!ll [() rl:t..' SJles COIl/rac! - Properiit'S H..il.',' Hl'fJft' 11)7,)' (.'lddt.'lldum), thIS Purt D nUclt bt' (Omp/t'll'd d5 ShU\\11 and pro\'ided to lhe St'/It'r all or btfore the diJ(e 5ho\\ n Itl lilt' Addendum. /JI.1T[ B, nr lht' (0111Ulgt'Il(V IS tcrmln,Ut,d ~(p!J.r(hdSt;'r [!Illuded Pdrr A, Hem F.. l [/it'll fillS f).zrt D IS lll/nt'c('\'s(]r_'~ (1!/j !:l'ed fir)! to "t' i'I!!II{1/crcd or P"O~ll/l'd [0 1he.' Sell,,'r I'l'RCIIASER'S ACK.'\;O\\LEDGE:\IE:\T (check appropnate boxes) [ ] Purchaser acknowledges that he.'she has received a 15 day opportunity (or other mutually agreed upon penod) to conduct a rISk assessment or lead-based paint 1I1spection for the presence of lead-based paint and'or lead-based pamt hazards, that such a nsk assessment or lead-based pamtll1specrion has been made [ ] Purchaser acknowledges that Seller is under no obl1gation to correct any lead-based paint and or lead. based paint hazards identified by the lead-based pamt ltlspection and/or risk assessment and hereby removes the contmgency and accepts the property 111 llS "as IS" condition, wl!hout \\ arrarlly, as described m llem B. Condlllons of Sale of the contract [ ] Purchaser requests that Seller take the followmg action to correct the lead-based pam! hazards noted- Lead-Based Paintllazard CorreetiH Action Requestcd ---_._---~----------~----_.__...-._~--_._~--_.__.-_.- ---------------------..-----------.----------- Purchaser has anached the nsk assessment or Inspection report If Seller refuses thiS reljuest, Purchaser reser. es the nght to contmue \\ llh the purchase or request cancellation of the sales contracl. [ ] Purchaser requests cancellatIon of the sales contract due to the follOWing defiCienCies mdlcated In the atuched report(s)- CERTIFICATIO:" OF ACCUR.\CY The followmg parties have reVIewed the mformation abovc and certify, to the best of their knowledge, that the infomlatlon they have providcd is truc and accurate_ Purchaser Date Purchaser Date Broker 'Agcnt Date 9t)(J CDC 1999 -19 HOD UNIT PURCHASE AND SALE AGREEMENT Property Address: THIS HOD UNIT PURCHASE AND SALE AGREEMENT (the "Agreement") is dated for identification purposes only, as of , 199 , and is made and entered into by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") and (the "Participant"), with reference to the following: RECITALS A. WHEREAS, the Agency and the Secretary of Housing and Urban Development (the "Secretary") are expected to enter into that certain Sales Contract - Property Disposition Program a copy of which is attached hereto as Exhibit "A" (the "HUD Contract") regarding sale by the Secretary to the Agency of that certain property commonly known as San Bernardino, California (the "HUD Unit"). A legal description of the HUD Unit is attached hereto as Exhibit "B"; and B. WHEREAS, subj ect to the terms and conditions of that certain Acquisition, Rehabilitation and Resale (ARR) Agreement dated 1999 (the "ARR Agreement"), by and between the Participant and the Agency and this Agreement, Agency desires to sell the HUD Unit to the Participant and the Participant desires to purchase the HUD Unit from the Agency at the close of the "HUD Escrow" as set forth herein. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS SET FORTH HEREIN, THE PARTICIPANT AND THE AGENCY AGREE AS FOLLOWS: 1. Warranty of Authority by Participant. The Participant warrants that it is a under the laws of the State of California, and is authorized to execute this Agreement and all of the documents and instruments contemplated hereby I including, without limitation, supplemental escrow instructions and the Acceptance of Agency Quitclaim Deed; and that this transaction has been approved by [resolution of its board of directors]. A certified copy of that [resolution] which remains in effect, will be delivered to Agency before the close of the HUD Escrow as set forth herein. SBEO/0001/DOC/3515 6/15/99 245 ct 1 CDC 1999 -19 2. Agreement to Sell and to Purchase. Subject to the terms and conditions of this Agreement, the Agency agrees to sell and the Participant agrees to purchase the HUD Unit. 3. Purchase Price. The "Purchase Price" for the HUD Unit is the same sum in cash or immediately available funds in United States Currency as the discounted purchase price which the Agency has agreed to pay the Secretary pursuant to the HUD Contract for the HUD Unit. The Purchaser Price shall be payable by the Participant's delivery of the full amount to the escrow holder in cash or by wire transfer of immediately available funds at least one(l) business day before close of the HUD Escrow or by cashier's check during business hours at least three(3) business days before the close the HUD Escrow. 4. HUD Escrow Costs. In addition to the Purchase Price, the Participant hereby agrees to pay all of the costs of the escrow holder in the HUD Escrow including all amounts charged to the account of the Secretary and the Agency. The escrow holder is hereby instructed to collect such costs and charges from the Participant at the close of the HUD Escrow. 5. Conditions for the Benefit of the Agency. The obligation of the Agency to perform this Agreement is subject to the satisfaction of the following conditions, which are for the Agency's benefit only: (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen(15) days after the date hereof; (b) that the Secretary perform under the HUD Contract and the ti tIe of the HUD Unit actually be transferred from HUD to the Agency within forty-five(45) days after the date hereof; (c) the Agency shall have received, satisfactory to the Executive Director, a the insurance required pursuant to Section in form and substance certificate evidencing 16 of this Agreement; (d) that the Participant has duly execute and deliver to the escrow holder, in recordable form the Acceptance of the Participant of the Agency Quitclaim Deed. (e) that the Participant not otherwise be in default under its other obligations to the Agency under the ARR Agreement. SBEO/0001/00C/3515 6/15/99 245 ct 2 CDC 1999 -19 The conditions set forth above are for the Agency's benefit only and the Executive Director of the Agency (the "Executive Director") may waive all or any part of such rights by written notice to the Participant and escrow holder. If any of said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Executive Director, the Agency may thereafter terminate this Agreement without any liability on the part of the Agency by giving written notice of termination to the escrow holder, with a copy to the Participant. Escrow holder shall thereupon, without further consent from the Participant, return to each party the documents, if any, deposited by them. 6. Conditions for Participant's Participant to perform this satisfaction of the following Participant's benefit only: Benefit. Agreement conditions, The obligation of is subj ect to which are for the the the (a) if the Secretary has not heretofore executed the HUD Contract, that the Secretary execute said HUD Contract within fifteen (15) days after the date hereof; and (b) HUD Uni t after the that the Secretary perform under the HUD Contract and the actually transfer from HUD within forty-five (45) days date hereof. The conditions set forth above are for the Participant's benefit only and the Participant may waive all or any part of such rights by written notice to the Agency and the escrow holder. If any said conditions are not satisfied within the time provided, or within such longer time as may be allowed by the Participant, subject to the approval of the Secretary and the Agency, the Participant may thereafter terminate this Agreement without any liability on the part of the Participant by giving written notice of termination to the escrow holder, with a copy to the Agency. Escrow holder shall thereupon, without further consent from the Agency, return to each party the documents, if any, deposited by them. 7. Escrow. The transfer of the HUD Unit to the Participant shall be consummated through an escrow established with the escrow agent engaged by the Secretary to handle the transfer of the HUD Unit to the Agency under the HUD Contract. Such escrow shall be opened on a schedule coordinated with the closing or the transfer of the HOD Unit between the Secretary and the Agency under the HOD Contract. This Agreement shall constitute the escrow instructions to the escrow holder of the Participant and the Agency with respect to the HUD Unit. The Agency and the Participant shall execute such SBEO/0001/DOC/3515 6/15/99 245 ct 3 CDC 1999 -19 additional escrow instructions as may be reasonably required by the escrow holder. 8. Term of Escrow. Escrow shall close concurrently with the close of escrow under the HUD Contract. "Opening Escrow" shall mean the date upon which a fully executed copy of this Agreement is delivered to the escrow holder. "Close of Escrow" shall mean the date upon which the quitclaim deed from Seller to Buyer is recorded in the Office of the County Recorder of the County of San Bernardino, California. 9. Condition of Title. The Agency shall convey to the Participant by quitclaim deed all of the right, title and interest in the HUD Unit which the Agency receives from the Secretary under the HUD Contract. The form of the Agency Quitclaim Deed is attached hereto as Exhibit "c" and incorporated herein by this reference. 10. Title Insurance. The Agency shall not be responsible for providing any title insurance to the Participant in connection with the transfer of title in the HUD Unit to the Participant. Any title insurance desired by the Participant shall be ordered and paid for by the Participant at its sole cost and expense. 11. Prorations. All assessments, including improvement assessments which are available for payment without interest or penalty for advance payment, taxes, rent, and ground rent, if any, shall be prorated as of the Close of Escrow. In as much as this escrow will close concurrently with the escrow under the HUD Contract, through which escrow such items will be prorated between the Secretary and the Agency, the parties acknowledge and agree that the Participant shall be charged for such prorations in precisely the same amount as the Agency is charged under the HUD Contract. 12. Escrow Closing Costs. The Participant shall pay all escrow closing costs of both parties, including, without limitation, all escrow and recording fees and transfer taxes. Additionally, the Participant shall pay all closing costs and expenses charged to the Agency in the escrow by which HUD transfers the HUD Unit to the Participant. 13. Closing. At the Close of Escrow, (a) the Agency shall deliver to the Participant through escrow a the Agency Quitclaim Deed conveying the HUD Unit to the Participant, (b) the Participant shall deliver to the Agency through escrow the acceptance of the Agency Quitclaim Deed, and (c) the escrow holder shall collect and pay the SBEO/0001/DOC/3515 6/15/99 245 ct 4 CDC 1999 -19 sums indicated for the transfer of the HUD Unit under the HUD Contract and this Agreement and deliver such other documents to the parties in accordance with the instructions of each of them. At the Close of Escrow, the escrow holder shall cause the Agency Quitclaim Deed to be recorded in the Official Records of the County of San Bernardino, California. 14. Condition of the Hun Unit. The Agency makes no representation or warranty to the Participant or to any third party concerning the condition of the HUD Unit, including, without limitation, mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and the Agency will make no repairs to the HUD Unit either before or after execution of this Agreement. The Participant understands that the Agency does not guarantee or warrant that the HUD Unit is free of visible or hidden structural defect, termite damage, lead-based paint, or any other condition that may render the HUD Unit uninhabitable or otherwise usable. Participant acknowledges responsibility for taking such action and conducting such investigation of the condition of the HUD Unit as it believes necessary to satisfy itself that the HUD Unit is in a condition acceptable to it and the Participant agrees to accept the HUD Unit in the same condition delivered to the Agency by the Secretary, in an "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS" condition. 15. Possession; Repairs. The Participant may not perform repairs nor take possession of the HUD Unit until the escrow is closed. At the close of the HUD Escrow, the Participant may take possession of the HUD Unit and promptly commence the work of rehabilitation as required for the HUD Unit under the ARR Agreement. 16. Insurance. Prior to the Close of Escrow, the Participant shall obtain and shall thereafter maintain in full force and effect at all times a broad-form comprehensive general liability policy with a limit of not less than $1,000,000.00. Such insurance shall provide for a 30-day notice to the Agency before cancellation of the policy and shall name the Agency as an additional insured as to claims arising out of the work to be performed on the HUD Unit following the Close of Escrow pursuant to the ARR Agreement. 17. Assignment. The Participant and the Agency each agree that this Agreement shall be binding upon their respective, heirs, executors, administrators, successors or assigns and is not assignable by the Participant unless the written consent of the Executive Director is first obtained, which consent the Executive Director may withhold in his or her sole ,and absolute discretion. SBEO/0001/DOC/3515 6/15/99 245 ct 5 CDC 1999- 19 18. Notices. All notices, demands and requests which may be given by either party to the other or to the escrow holder shall be in writing and shall be deemed to be given upon personal delivery or forty-eight (48) hours after deposit in the United States mail, certified, return receipt requested, postage prepaid, addressed to the party to be notified at the address following the party's signature or if addressed to the escrow holder, at the address set forth in the supplemental escrow instruments signed by the parties. Either party may designate by written notice to the other party in the manner set forth in this Agreement another address for notice. 19. Miscellaneous Provisions. 19.1 Waiver. The waiver of any provisions of this Agreement shall be invalid unless evidenced by a writing signed by the party to be charged therewith. The waiver of, or failure to enforce, any provision of this Agreement shall not be a waiver of any further breach of such provision hereof. The waiver by either or both parties of the time for performing an act shall not be a waiver of the time for performing any other act or acts required hereunder. 19.2 Modifications. No change or addition to this Agreement or any part hereof shall be valid unless in writing and signed by each of the parties. 19.3 Governing Law. California law. This Agreement shall be governed by 19.4 Headings. The headings in this Agreement are for convenience only and shall not be used to interpret this Agreement. 19.5 Further Acts. Each party agrees to take such further action and to execute and deliver such further documents as may be necessary to carry out the purposes of the ARR Agreement with respect to the HUD Unit and this Agreement. 19.6 Attorneys' Fees. If either party incurs attorneys' fees to enforce this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees as set by the court from the other party. 19.7 No Real Estate Brokers Commission Payable By the Agency. The Agency shall not be responsible for the payment of any real estate brokers commission or finders fee in connection with the escrow or the transfer of the HUD Unit to the Participant. SBEO/0001/DOC/3515 6/15/99 245 ct 6 CDC 1999 -19 19.8 Time. Agreement. Time is of the essence with respect to this IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. AGENCY Redevelopment Agency of the City of San Bernardino By: Dated: Executive Director PARTICIPANT By: Its: By: Its: SBEO/0001/DOC/3515 6/15/99 245 ct 7 CDe 1999 -19 [address of Participant under the ARR Agreement] ) ) ) ) ) ) ) ) ) ) ) (Space above line reserved for use by Recorder) RECORDING REQUESTED BY Redeve~opment Agency of the City of San Bernardino AND WHEN RECORDED MAIL PROPERTY TAX BILL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANT AND RESTRICTIONS [ARR Program: (Name of Grantee/Participant)] PART A THIS QUITCLAIM DEED OF A PUBLIC AGENCY AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS (the "Quitclaim Deed") transfers all of the right, title and interest of the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") in certain real property situated at , San Bernardino, California (the "Property") to (the "Participant"), subject to the community redevelopment affordable single family housing conditions, covenants and restrictions contained in PART B hereof. The Agency is the grantor in this Quitclaim Deed and the Participant is the grantee. For valuable consideration, the receipt of which is hereby acknowledged, the Agency hereby grants to the Participant, subject to the community redevelopment affordable single family housing conditions, covenants and restrictions of this Quitclaim Deed, all of the right, title and interest of the Agency in the Property, as more particularly described below: SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 1 of 7 CDC 1999 -19 (-- The Property--) on Official Records of the Office of San Bernardino County. file in the of the Recorder PART B The quitclaim of the Property by the Agency to the Participant is expressly subject to the satisfaction of the following community redevelopment affordable single family housing conditions, covenants and restrictions as arise under that certain Acquisition, Rehabilitation, Resale Agreement dated (the "ARR AgreementU) by and between the Agency and the Participant: 1. the Property shall be reserved for use, improvement and occupancy for single family residential purposes for a term of twenty-five (25) years commencing on the date of recordation of this Quitclaim Deed; and 2. the Property shall be used, reserved, sold, transferred, granted, conveyed or otherwise hypothecated for occupancy only to a "personu or a "familyU who is a "Qualified HomebuyerU for a term of the shorter period of either: (i) twenty-five (25) years from the date of recordation of this Quitclaim Deed; or (ii) the term, as provided in the ARR Agreement Covenant described in subparagraph 3, below. The words "Qualified HomebuyerU refer to any person or family who owns and occupies (or who declares their intention to own and occupy) the Property as their principal residence and who also satisfy the requirement of being a "first-time homebuyer,U as defined in Health and Safety Code Section 50068.5, and whose annual income during the twelve (12) months preceding the date of initial occupancy of the Property by the Qualified Homebuyer does not exceed the income qualification limits for "lower income householdsu, as defined in Health and Safety Code Section 50079.5 (Statutes of 1979: Chapter 96). Health and Safety Code Section 50079.5 provides: "'Lower Income households' means persons and families whose income does not exceed the qualifying limits for lower income SBE010001/DOC/3513.1 6/15/99 1200 ct Page 2 of 7 CDC 1999 -19 families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937. The limi ts shall be published by the department in the California Administrative Code as soon as possible after adoption by the Secretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjusted for family size and revised annually. As used in this section, 'area median income' means the median family income of a geographic area of the state." 3. As a condition precedent to any transfer, sale, conveyance, grant or other hypothecation by the Participant of the Property to a Qualified Homebuyer the "Acquisition, Rehabilitation Resale Affordability Use and Occupancy Covenant" (the "ARR Covenant"), substantially in the form attached hereto as Exhibit "A-1" or Exhibit "A-2," as applicable and as incorporated herein by this reference shall be fully executed by the parties in recordable form by the Participant, the Qualified Homebuyer and the Agency and filed for recordation as an official record of the Recorder of San Bernardino County. The final form of the ARR Covenant shall be consistent with the terms and conditions o~ the ARR Agreement as applicable to the Qualified Homeb.uyer at the time of initial occupancy of the Property by a Qualified Homebuyer. A copy of the ARR Agreement is on file with the Agency Secretary as a public record and is incorporated herein by this reference. Upon its recordation, the fully executed form of the ARR Covenant shall be a separate community redevelopment affordable single family housing covenant which runs with the Property and which binds the Qualified Homebuyer and each heir, successor and assign of the Qualified Homebuyer for the term as provided in the ARR Covenant. 4. Prior to the recordation of the ARR Covenant as provided in subparagraph 3 of PART B of this Quitclaim Deed, the Property shall not be offered for sale or sold to a Qualified Homebuyer for a sale price which exceeds more than Dollars ($ ) , exclusive of customary and reasonable "escrow" and sales SBEO/0001/DOC/3513.1 6/15199 1200 ct Page 3 of 7 CDC 1999-19 transactional costs which may be normally allocated to a Qualified Homebuyer by an owner-builder of a single family dwelling unit offered for sale to persons and families of lower income. The provisions of this subparagraph 4 of PART S of the Quitclaim Deed shall have no further force or effect upon the property after the date of the complete execution and recordation of the ARR Covenant. 5. The Property shall be subject to the following affordable housing redevelopment covenant in perpetuity and the text which appears in this Quitclaim Deed shall be incorporated into the text of each grant deed or other instrument which transfers the Property to a successor in interest of the Participant and each Qualified Homebuyer: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, transfer, use, occupancy, tenure or enj oyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of any vendee in the land herein conveyed. The foregoing covenants shall run with the land." PART C During the term of subparagraph 2 of PART S, but prior to the recordation of a fully-executed copy of the ARR Covenant, the Agency hereby authorizes the Participant to conduct land improvement and new home sales and ancillary business activity on the Property associated with the improvement and sale by the Developer, pursuant to the ARR Agreement, of an affordable single family dwelling unit on the Property prior a Qualified Homebuyer. The provisions of PART C of this Quitclaim Deed shall have no further force or effect upon the Property after the date of the complete execution and recordation of the ARR Covenant. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 4 of 7 CDC 1999-19 PART D The provisions of this Quitclaim Deed are expressly declared by the Agency to promote an increase, improvement and preservation of the communi ty' s supply of low- and moderate-income housing. The transfer of the Property by the Agency to the Developer for this purpose and the recordation of this Quitclaim Deed is authorized by Heal th and Safety Code Sections 33334.2 and 33334.3, and other applicable law and actions of the Agency, including without limitation, the ARR Agreement. PART E , Upon the delivery of this Quitclaim Deed to the Participant, the community redevelopment affordable housing conditions, covenants and restrictions as contained herein shall be covenants and restrictions which affect the Property and shall run with the land and shall be enforceable by either the Agency or by the City of San Bernardino, a municipal corporation, as provided by Health and Safety Code Section 33334.3(f) (2) against the Participant and each successor in interest or assignee of the Participant in the Property, including, without limitation, any Qualified Homebuyer. No person other than either the City of San Bernardino or the Agency shall be deemed to be authorized to enforce any provision of this Quitclaim Deed as a covenant or restriction which runs with the land and affects the Property. SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 5 of 7 CDC 1999 -19 THIS QUITCLAIM DEED is executed as of the date indicated below next to the authorized signatures of the Executive Director of the Agency. AGENCY Redevelopment Agency of the City of San Bernardino, a body corporate and politic Dated: By: Executive Director Approved As To Form: Agency Counsel [NOTARY JURAT ATTACHED] [NOTE: Exhibit "A-I" MAP Assistance) General Form of ARR Covenant (Agency Exhibit "A-2" Program) ] General Form of ARR Covenant (HOME SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 6 of 7 CDC 1999-19 ACCEPTANCE OF QUITCLAIM DEED AND COMMUNITY REDEVELOPMENT AFFORDABLE SINGLE FAMILY RESIDENTIAL HOUSING DEVELOPMENT, USE AND OCCUPANCY CONDITIONS, COVENANTS AND RESTRICTIONS BY THE PARTICIPANT (the "Participant"), hereby accepts the deli very of the instrument identified above as the '.'Qui tclaim Deed of a Public Agency and Community Redevelopment Affordable Single Family Residential Housing Development, Use and Occupancy Conditions, Covenants and Restrictions" (the "Quitclaim Deed"), and the transfer of the Property from the Redevelopment Agency of the City of San Bernardino, subject to the conditions, covenants and restrictions contained in the Quitclaim Deed. The Participant hereby acknowledges and agrees that it accepts the Property in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition and that the Participant is solely responsible for causing the Property to be improved and rehabilitated as set forth in the ARR Agreement by and between the Agency and the Participant. The Participant hereby further accepts and agrees to each of the community redevelopment affordable single family residential housing use, improvement and occupancy conditions, covenants and restrictions contained in the Quitclaim Deed which touch and concern the Property and are community redevelopment covenants which run with the land. PARTICIPANT Dated: By Its: By: Its [NOTARY JURAT ATTACHED] SBEO/0001/DOC/3513.1 6/15/99 1200 ct Page 7 of 7 CDC 1999-19 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Suite 301 San Bernardino, CA 92401 Attn: Executive Director (Space Above Line Reserved For Use By Recorder) RECORDATION OF THIS INSTRUMENT IS EXEMPT FROM ALL FEES AND TAXES REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS FOR THE ARR PROGRAM (Name of Oualified Homebuyer) Dated as of 200 ---ARR PROGRAM: [NAME OF DEVELOPER/PARTICIPANT]--- REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ~~"-O/OOOl/DOC/3514.2wpd CDC 1999-19 COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS (FOR THE ARR PROGRAM) THIS REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO COMMUNITY REDEVELOPMENT HOUSING AFFORDABILITY COVENANTS AND RESTRICTIONS, (the "ARR Covenant") is made and entered into as of 200_, by and among (the "ParticipantU), the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a body corporate and politic (the "Agency"), and (the "Qualified Homebuyer"), and this ARR Covenant relates to the following facts set forth in Recitals. R E C I TAL S A. The Qualified Homebuyer proposes to acquire a single family residence (the "New Home"), located within the City of San Bernardino (the "City"), from the Participant, to be owned and occupied by the Qualified Homebuyer as their principal residence. The legal description of the New Home is attached hereto as Exhibit "AU and incorporated herein by this reference. B. The Agency has made this property on which the New Home is situated available to the Participant for the purposes as set forth under that certain Aquisition, Rehabilitation Resale (ARR) Agreement dated as of (the "ARR AgreementU) in order to make the New Home available for acquisition by the Qualified Homebuyer from the Participant subject to the terms and conditions of this ARR Covenant; and C. The terms of the ARR Agreement mandate that the acquisition, use and occupancy of the New Home shall be restricted in certain respects for the term as provided herein (the "Qualified Residence PeriodU) in order to ensure that the New Home will be used and occupied in accordance with the ARR Agreement and the affordable single family residential dwelling unit development goals and objectives of the Agency. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 1 CDC 1999-19 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOMEBUYER, THE PARTICIPANT AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. Covenant, the following words and terms shall provided in the Recitals or in this Section 1 context of usage of a particular word or require: As used in this ARR have the meaning as unless the specific term may otherwise Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for family size) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167(k) 3b) (3) under the Code, as adj usted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 50052.5. At the time of the close of the New Home Escrow, or later when a proposed Successor-In-Interest acquires the new home the amount of the maximum Affordable Housing Cost payable in connection with the acquisition of the New Home at any time during the Qualified Residence Period shall be calculated as set forth in Health and Safety Code 50053.5(b) (1) or (2), as applicable. Code. The word "Code" means the Internal Revenue Code of 1986, as amended, and any regulation, rulings or procedures with respect thereto. Delivery Date. The words "Delivery Date" mean the date of deli very of title and possession of the New Home from the Participant to the Qualified Homebuyer at the close of the New Home Escrow. Lower-Income Household The words "Lower Income Household" mean persons and families whose income does not exceed the qualifying limits for lower income families as established and amended form time to time pursuant to Section 8 of the United States Housing Act of SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 2 CDC 1999-19 1937. The limits shall be published by the department in the California Administrative Code as soon as possible after adoption by the Sectretary of Housing and Urban Development. In the event such federal standards are discontinued, the department shall, by regulation, establish income limits for lower income households for all geographic areas of the state at 80 percent of area median income, adjsuted for family size and revised annually. As used in this section, "area median income" means the median family income of a geographic area of the state. New Home. The words "New Home" mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as rehabilitated and completed by the Participant and sold to the Qualified Homebuyer. New Home Escrow. The words "New Home Escrow" mean and refer to the real estate conveyance transaction or escrow by and between the Participant and the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In- Interest). The transfer of the New Home from the Participant to the Qualified Homebuyer (or later, by and between the Qualified Homebuyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. Notice of Agency Concurrence. The words "Notice of Agency Concurrence" mean and refer to the acknowledgment in recordable form in which the Agency confirms that the proposed Successor-In-Interest of the Qualified Homebuyer satisfies all of the Adjusted Family Income and other requirements of this ARR Covenant for occupancy of the New Home by the Successor- In-Interest at any time during the Qualified Residence Period. Qualified Homebuyer. The words "Qualified Homebuyer" mean the purchaser of the New Home from the Developer (e. g. : all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Homebuyer shall: (i) have an annual Adj usted Family Income which does not exceed the household income qualification limits of a Lower-Income Household: (ii) shall be a first- time homebuyer, as this term is defined in Health and Safety Code Section 50068.5; and (iii)pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, including all sums SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 3 CDC 1999-19 payable by the Qualified Homebuyer for mortgage financing, insurance, escrow costs. its purchase money and other fees and Qualified Residence Period. The words "Qualified Residence Period" mean the period of time beginning on the Delivery Date and ending on the date which is ten (10) years after the Delivery Date. ARR Covenant. The words "ARR Covenant" mean these Redevelopment Agency of the City of San Bernardino Community Redevelopment Housing Affordability Covenants and Restrictions by and among the Qualified Homebuyer, the Participant and the Agency pertaining tq the New Home. Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person, family or household which may acquire the New Home from the Qualified Homebuyer at any time during the Qualified Residence Period by purchase, assignment, transfer or otherwise. The Successor-In-Interest shall be a "first-time homebuyer" and shall have an income level for the twelve (12) months prior to the date on which the Successor- In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for a Lower-Income Household. Upon acquisition of the New Home the Successor- In-Interest shall be bound by each of the covenants, conditions and restrictions of this ARR Covenant. The titles and headings of the sections of this ARR Covenant have be~n inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict the meaning any of the terms or provisions hereof. Section 2. Acknowledgments and Representations of the Oualified Homebuyer. The Qualified Homebuyer hereby acknowledges and represents that, as of the Delivery Date: (a) the total household income for the Qualified Homebuyer does not exceed the maximum amount permitted as Adjusted Family Income for a Lower-Income Household, adjusted for family size; (b) the Qualified Homebuyer intends to promptly occupy the New Home after the Delivery Date as the principal place of residence for a term of at least two (2) years following the Delivery Date and the Qualified Homebuyer has not entered into any arrangement and has no present intention to rent, sell, transfer or assign the New Home to any third party during the Qualified SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 4 CDC 1999-19 Residence Period so as tq frustrate the purpose of this Section 33334.3 Covenant; (c) the Qualified Homebuyer has no present intention to lease or rent any room or sublet or rent a portion of the New Horne to any relative of the Qualified Homebuyer or to any third person at any time during the Qualified Residence Period; (d) the sum payable each month by the Qualified Homebuyer following the close of the New Horne Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Horne does not exceed the Affordable Housing Cost for the household; (e) the Qualified Homebuyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax returns filed by all persons who reside in the New Horne for the calendar year preceding the close of the New Horne Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all person residing in the New Horne at the close of the New Horne Escrow; (f) The Qualified Homebuyer has been informed by the Participant that this ARR Covenant imposes certain restrictions on the use and occupancy of the New Horne during the term of this Section ARR Covenant and that this ARR Covenant imposes certain restrictions on the resale of the New Horne during the Qualified Residence Period. The Qualified Homebuyer acknowledges and understands that these restrictions shall be applicable to the New Horne and to any resale of the New Horne from the Delivery Date to the end of the Qualified Residence Period which is , 201 Dated: Initials of Qualified Homebuyer Section 3. Covenant of the Qualified Homebuyer to Maintain Affordability of the New Home During the Qualified Residence Period and Covenant Relating to Sale or Transfer of the New Home During the Qualified Residence Period to a Successor-In-Interest. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 5 CDC 1999-19 (a) The Qualified Homebuyer for itself, its heirs, successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the New Home shall be used and, occupied by the Qualified Homebuyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Homebuyer and/or for another Lower-Income Household as a Successor-In-Interest at an Affordable Housing Cost. The Qualified Homebuyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right and duty as provided in this Section 3 to verify that each proposed Successor-In-Interest of the Qualified Homebuyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of a Lower- Income Household (based upon the Adjusted Family Income of each household), and that the completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the "Notice of Agency Concurrenceu as provided in Section 3 (d) . (b) The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period the Qualified Homebuyer shall not sell, transfer or otherwise dispose of the New Home (or any interest therein) to a Successor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least sixty (60) days prior to the date on which the Qualified Homebuyer proposes to transfer title in the New Home to a Successor-In-Interest, the Qualified Homebuyer shall send a written notice to the Agency as provided in Section 17 of the intention of the Qualified Homebuyer to sell the New Home to a Successor-In-Interest which includes the following true and correct information: (i) name of the proposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); (ii) copies of State and federal income tax returns for the Successor-In-Interest for the calendar year preceding the year in which the notice of intention to sell the New Home is given to the Agency; (iii) resale price of the New Home payable by the Successor-In-Interest, including the terms of all purchase money mortgage financing to be assumed, SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 6 CDC 1999-19 provided or obtained by the Successor-In- Interest, escrow costs and charges, realtor broker fees and all other resale costs or charges payable by either the Qualified Homebuyer or the Successor-In-Interest; (iv) name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Homebuyer to the Successor-In-Interest; (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such reference; and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c). (c) Within twenty (20) days following receipt of the notice of intention described in Section 3(b), the Agency shall provide the Qualified Homebuyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In- Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adjusted Family Income and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) has been provided to the Agency. In the event that the Agency may request additional information relating to the. confirmation of the matters described in Section 3(b), the Qualified Homebuyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Home, the Agency shall deliver a written acknowledgment and approval of the resale of the New Home to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3(b) (iv) above, and thereafter the Successor-In-Interest may acquire the New Home subject to the satisfaction of the following conditions: (i) the recordation of the Notice of Agency Concurrence executed by the Successor-In-Interest and the Agency at the close of the resale escrow; SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 7 CDe 1999-19 (ii) the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Homebuyer and the final escrow closing statement for the Successor-In-Interest; and (iii) the other conditions established by the Successor-In-Interest of the resale escrow as Qualified Homebuyer and shall have been satisfied. (e) The Qualified Homebuyer for itself, its successors and assigns hereby covenants and agrees that during the Qualified Residence Period the New Home shall not be leased, subleased, or rented to any third person, except for a temporary period (not to exceed 12 months) in the event of an emergency or other unforseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Homebuyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event within not more than (60) days following the commencement of a temporary rental occupancy of the New Home by a third party, which notice shall set forth the grounds on which the Qualified Homebuyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. Section 4. Main tenance Condition of the New Home. The Qualified Homebuyer, for itself, its successors and assigns, hereby covenants and agrees that: (a) The exterior areas of the New Home which are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the term of the Qualified Residence Period, there is an occurrence of an adverse condition on any area of the New Home which is subj ect to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Qualified Homebuyer in writing of the Maintenance Deficiency and give the Qualified Homebuyer thirty (30) days from the date of such notice to cure the Maintenance Deficiency as identified in the notice. The words "Maintenance Deficiencyu include without limitation the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property use restrictions: SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 8 CDC 1999-19 failure to properly maintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of wed and debris; parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on any other parts of the property which are not covered by a paved and impermeable surface; the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Home. In the event the Qualified Homebuyer fails to cure or commence to cure the Maintenance Deficiency wi thin the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Homebuyer ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Homebuyer has failed to comply with the provision of this Section 4(a). If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non-compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Home (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) shall become a lien on the New Home. If the amount of the lien is not paid wi thin thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c). SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 9 CDC 1999-19 (b) Graffiti which is visible from any public right-of-way which is adjacent or contiguous to the New Home shall be removed by the Qualified Homebuyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on the New Home (exterior areas only) and such graffiti is visible from an adj acent or contiguous public right-of-way and thereafter such graffiti is not removed within 72 hours following the time of its application; then in such event and without notice to the Qualified Homebuyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Section 4(b) shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Homebuyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c). (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4 (a) or Section 4 (b), including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. In any legal proceeding for enforcing such a lien against the New Home, the prevailing path shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4, shall be a covenant running with the land for the Qualified Residence Period and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable law. Nothing in the foregoing provisions of this Section 4 shall be deemed to preclude the Qualified Homebuyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 10 CDC 1999-19 Section 5. [RESERVED/NO TEXT] Section 6. [RESERVED/NO TEXT] Section 7. Foreclosure of Purchase Money Mortgage Loan and Agencv Right of First Refusal. (a) During the Qualified Residence Period the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Home at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period the Agency shall have the right of first refusal to purchase the New Home from the Qualified Homebuyer on the same terms which the Qualified Homebuyer may propose to offer the New Home for resale to a Success-In- Interest. The Agency must exercise such a right of first refusal wi thin thirty (30) days following written notification of the intention of the Qualified Homebuyer to resell the New Home, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Homebuyer and close an escrow for the transfer of the New Home to the Agency within sixty (60) days following written notification of the intention of the Qualified Homebuyer to resell the New House. Section 8. Covenants to Run With the Land. The Participant, the Agency and the Qualified Homebuyer hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a common plan for the rehabilitation of affordable single family housing improvements within the terri torial jurisdiction of the Agency and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Home and each Successor-In-Interest of the Qualified Homebuyer in the New Home for the term provided in Section 10. The Qualified Homebuyer hereby expressly assumes the duty and obligation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this ARR Covenant. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Home or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 11 CDC 1999-19 and .restrictions are set forth in such contract, deed or other instrument. Section 9. Burden and Benefit. The Participant, the Agency and the Qualified Homebuyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Homebuyer's legal interest in the New Home is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Homebuyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Home by the intended beneficiaries of such covenants, reservations and restrictions, and by furthering the affordable single family housing development goals and objectives of the Agency and in order to make the New Home available for acquisition and occupancy by the Qualified Homebuyer. Section 10. Term. This ARR Covenant shall apply to the New Home and the Qualified Homebuyer and to each Successor-In-Interest as of the Delivery Date for the Qualified Residence Period -- e.g.: this ARR Covenant shall remain in full force and effect for ten (10) years after the Deli very Date. Any provision or section hereof, may be terminated after the Delivery Date upon agreement by the Agency and the Qualified Homebuyer (or the Successor-In- Interest in the New Home), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in its reasonable discretion will not adversely affect the affordable single family housing and development goals of the Agency. Section 11. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Homebuyer to honor or perform any material term or provision of this ARR Covenant shall constitute a breach under this Agreement; provided however, that if the Qualified Homebuyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days after the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Homebuyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Homebuyer written notice of breach specifying the alleged breach which if uncured by the Qualified Homebuyer within thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice SBEO/DDD1/DOC/3514.2wpd 6/14/99 116 rp 12 CDC 1999-19 shall not constitute a waiver of any breach or event of default nor shall it change the time of breach or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 11. Except with respect to rights and remedies expressly declared to be exclusive in this ARR Covenant, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Homebuyer may remain incurred for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 as related to a Maintenance Deficiency at the New Home, upon the occurrence of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Qualified Homebuyer to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (ii) by other action at law or in or convenient to enforce covenants and agreements Homebuyer to the Agency. equity as necessary the obligations, of the Qualified (b) No third party shall have any right or power to enforce any provision of this ARR Covenant on behalf of the Agency or to compel the Agency to enforce any provision of this ARR Covenant against the Qualified Homebuyer on the New Home. Section 12. Governing Law. This Section 33334.3 Covenant shall be governed by the laws of the State of California. Section 13. Amendment. This ARR Covenant may be amended after the Delivery Date only by a written instrument executed by the Qualified Homebuyer (or the Successor-In-Interest, as applicable) and by the Agency. The Participant shall have not any SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 13 CDe 1999-19 right or power to approve any such amendment to this ARR Covenant, and the execution by the Participant of any such amendment after the Delivery Date shall not be required. Section 14. Attorney's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this ARR Covenant or otherwise arising out of this ARR Covenant, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 15. Severability. If any provision of this ARR Covenant shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this ARR Covenant which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Section 16. Time is of the Essence. For each provision of this ARR Covenant which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 17. Notice. Any notice required to be given under this ARR Covenant shall be given by the Agency or by the Qualified Homebuyer, as applicable, by personal delivery or by First Class Uni ted States mail at the addresses specified below or at such other address as may be specified in writing by the parties hereto: If to the Agency: Executive Director Redevelopment Agency of the City of San Bernardino 201 North "En Street, Suite 301 San Bernardino, CA 92401 Phone: (909) 384-5081 If to the Qualified Homebuyer: Attn: Phone: Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personally delivered, when received SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 14 CDC 1999-19 by the Executive Director of the Agency or the Qualified Homebuyer, as applicable. SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 15 CDe 1999-19 IN WITNESS WHEREOF, the Participant, the Qualified Homebuyer and the Agency have caused this Covenant to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this ARR Covenant is authorized under Health and Safety Code Section 33334.3(g). QUALIFIED HOMEBUYER By: Dated: By: PARTICIPANT By: Dated: AGENCY Redevelopment Agency of the City of San Bernardino Dated: By: Executive Director [ALL SIGNATURES MUST BE NOTARIZED] Approved as to Form: By: Agency Counsel SBEO/OOOl/DOC/3514.2wpd 6/14/99 116 rp 16 CDC 1999-19 EXHIBIT "AN Legal Description of the New Home SBEO/0001/DOC/3514.2wpd 6/14/99 116 rp 17 CDC 1999-19 EXHIBIT "E" 1999 ARR AGREEMENT "ARR Rehabilitation Standards for Each HUD Units" CDC 1999-19 ARR REHABILITATION STANDARDS I. GENERAL DESCRIPTION The Participant will acquire HUD Units and cause the rehabilitation and resale of the housing thereon. II. REHABILITATION STANDARDS All of the improvements to be provided by the Participant on the HUD Units constitute the "Project". The Project shall be developed in accordance with applicable building and safety codes. III. DEMOLITION AND SOILS Participant assumes all responsibility for surface and subsurface conditions at the Project Site, and the suitability of the Project Site. If the surface and subsurface conditions are not entirely suitable for such development and use, Participant shall at its cost take all actions necessary to render the Project Site entirely suitable for such development. Participant has undertaken all investigation of the Project Site it has deemed necessary and has not received or relied upon any representations of Agency, the City, or their respective officers, agents and employees. Participant shall undertake at its cost all demolition required in connection with the rehabilitation of the project. IV. AMENITIES Each HUD Unit shall have full amenities and shall include the following: front yard landscaping and automatic sprinklers, side and rear yard fencing. V. REHABILITATION STANDARDS Rehabilitation Standards shall include Section 8 Housing Quality Standard (HQS) Minimums and are not limited to: 1. Interior work to make structures more livable, such as, plastering, painting, new subflooring and tile work. 2. Repair, restoration or replacement of important parts of structures, such as, heating systems, plumbing systems, electrical components, kitchen appliances (stoves, refrigerator). 3. Installation of water/energy conservation devices. 4. Installation of security devices. 1 \\EOA_SAN BERDO\PUBLlC\Forms\A.RR Program\ARR Rehabilitation Standards. doc CDC 1999-19 5. Wheelchair ramps, kitchen and/or bathroom modifications related to a disability of a household member. The following list contains some of the typical repair items and replacement activities: 6. Replacement of plumbing fixtures. 7. Addition of electrical outlets and/or wiring. 8. Insulation. 9. Replacement of roof. 10. Repair and/or enlargement of inadequate kitchen and/or bathroom. 11. Repair/replacement of furnaces and air conditioners. 12. Plaster and dry rot repair. 13. Repair/replacement of porches, steps, fences and walkways. 14. Termite, rodent or vermin fumigation. 15. Addition of closets or other minor built-ins. 16. Chimney repair/replacement. 17. Repair/replacement of railing. 18. Repair/replacement of windows and doors. 19. New ceilings. 20. Weather stripping for windows and doors. 21. Repair/replacement/addition of gutters and down spouts. 22. Repair/replacement of exterior trim. 23. Repair/replacement of stucco (wrap & stucco of wood siding structures). 24. Repair of foundation, structural repair. 25. Replacement of existing toilets, tub and shower, lavatories (cabinets). 26. Carpeting and other flooring. All other items are optional, per agreement, between contractor and buyer. 2 \\EDA_SAN BERDO\PUBLlC\Forms\ARR Program\ARR Rehabilitation Standards.doc CDC 1999-19 EXHIBIT "F" 1999 ARR AGREEMENT "HOME Program and Agency MAP Program Checklist and Qualified Homebuyer Eligibility Documents" CDe 1999-19 MORTGAGE ASSISTANCE PROGRAM (MAP) ACQUISITION, REHABILITATION AND RESALE (ARR) PROGRAM Date: Property Address: Borrower( s): MAP Amount: FIRST TIME HOME BUYER PROGRAM - MAP CHECKLIST Step 1 - For Reservation of Funds Letter by EDA Latest Tax Return (1040's) and 2 Current Pay Stubs 0 Application Affidavit - Signed by Borrower 0 Verification for Applicant Eligibility (Completed by Lender) 0 Preliminary Escrow Instructions 0 Step2-.ForEDA to Request for MAP Check - Request for Funds Letter Complete Demand for Funds Letter 0 Submit MAP Docs (Loan Agreement, Deed of Trust, Promissory Note, CC & Rs) 0 Seller (ARR Contractor) must call EDA Inspector for a Final Inspection (10 days prior to close of escrow) Step 3 - · For EDA .to Release MAP .Check to Escrow Final Escrow Documents (Includes Amendments) 0 First Time Home Buyers Class Certificate 0 Lender Representative: \\EDA SAN BERDO'f'U8LIC\FOlTIls\Ma~ARR\MAP.Check List.doc 02I1Si99MP CDC 1999-19 City of San Bernardino '" ECONOMIC DEVELOPMENT AGENCY VERIFICA TION FOR APPLICANT ELIGIBILITY . Redevelopment . Community Development . Housing . Business: - Recruitment - Retention - Revitalization . Main Street, Inc. ACQUISITION, REHABILITATION AND RESALE PROGRAM (ARR) AND MORTGAGE ASSISTANCE PROGRAM (MAP) Name of Applicant Current Address Property Address to be Purchased City/State San Bernardino, California Phone Number Household Size # of Minor Children Zip Code Name of Lender Contact Person Loan Number Phone Number Fax Number * Annual & Monthly Income (See Below) $ /Y ear $ /Month Income used by the lender to qualify for the loan, if different than annual income of application. $ /Y ear $ /Month Monthly Consumer Debt $ /Month Max Loan Amount $ Principal & Interest $ /Month Sales Price $ Est. Property Taxes $ IMonth Buyer Down $ ($500 Min.) Est. Insurance $ !Month Map Amount $ Mort. Ins (If Applicable) $ IMonth TYPE OF LOAN OFNMA 0 FHA 0 Other Total PITI $ /Month Debt-to-Income Ratios as Calculated by Lender: Housing Costs % TotalDe~ % Terms of Loan Interest Rate # of Years o Fixed Note: Variable Loans are I\'ot Permitted. Check Applicable 50% or less 0 51 % - 80% 0 81%-115%0 "Note: In order to qualify for the MAP your income may not exceed the fol/owing: Signature of Applicant Date Lender/Escrow Representative - Signature Date Signature of Applicant Date 201 North E Street, Suite 301 . San Bernardino, California 92401-1507. (909) 384-5081 . FAX (909) 888-9413 CDC 1999-19 HOUSEHOLD SIZE 1999 Income Level I 2 3 4 5 6 7 8 Very Low (50%) $16,500 $18,900 $21,250 $23,600 $25,500 $27,400 $29,250 $31,150 Lower (80%)* $26,450 $30,200 $34,000 $37,750 $40,800 $43,800 $46,800 $49,850 Median (100%) $33,050 $37,750 $42,500 $47,200 $51,000 $54,750 $58,550 $62,300 Moderate (120%)** $39,650 $45,300 $51,000 $56,650 $61,200 $65,700 $70,250 $74,800 * The maximum income level for MAP assistance under federal HOME. Under MAP HOME - property value at the time of sales must not exceed 95% of the County's median purchase price. ** The maximum income level for MAP assistance under State Redevelopment Law. Under MAP State Redevelopment Law the affordable housing costs apply (Complete Housing Affordability Worksheet) PLEASE CHECK THE FOLLOWING o Sr. Citizen(s) - 62 or Older o Black o American Indian o Female Head of Household o Hispanic o White o Disabled One or More o Other o Asian or Pacific Islander ATTENTION LENDERS: LOAN UNDERWRITING AND ESTABLISHING ELIGIBILITY FOR MAP IS THE SOLE RESPONSIBILITY OF THE LENDER PURSUANT TO MAP GUIDELINES. ANY QUESTIONS CALL (909) 384-5081. P:\Forrns\MoTtgage Assistance\MAP-Applicant Eligibility_doc (ReVised 7/99) CDC 1999-19 MORTGAGE ASSISTANCE PROGRAM ACQUlSITION/REHABILIT A TION & RESALE PROGRAM APPLICATION AFFIDAVIT NOTE: ALL BLANKS ON THIS FORM MUST BE COMPLETED! THERE ARE IMPORT ANT LEGAL CONSEQUENCES TO THIS AFFIDAVIT; READ IT CAREFULLY BEFORE SIGNING. 1. I (we) the undersigned, as part of my (our) application for Acquisition, Rehab, Resale (A.R.R.) and Mortgage Assistance Program (MAP)(deferred silent second mortgage) from the City of San Bernardino, Redevelopment Agency (Agency), and as a material inducement to receive such assistance from the Agency, I (we), being first duly sworn, state the following: I (we) certify that the following are: a. My (our) legal Name(s): b. Social Security # c. Current residences: d. Telephone # The Unit (the "Residence") being purchased is a single-family home located in the City of San Bernardino at the following address: 2. I (we) certify that my (our) current gross annual household income, including income of all adult persons intending to occupy the Residence, is $ . I (we) understand that I (we) am (are) not eligible for a ARR- MAP unless my (our) gross annual household income does not exceed 80% of the median income for San Bernardino, and as specifically set forth in the Verification of Applicant Eligibility form. 3. I (we) certify that the Residence will be occupied and used as my (our) principal place of residence within forty-five (45) days after the date the ARR-MAP loan has closed. I (we) certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not more than fifteen percent (15) of the area of the Residence will be used in a trade or business. I (we) certify that I (we) will notify the Agency in writing if the Residence ceases to be my (our) principal Residence. Failure to occupy the Residence will result in the Agency accelerating the repayment of the Agency ARR-MAP Loan. 4. If the loan application is for a loan on a newly constructed home, I (we) certify that the Residence has not and will not be occupied prior to loan commitment from the Agency. CDC 1999 -19 5. I (we) understand that I (we) am (are) not eligible for a ARR-MAP from the Agency under this program if! (we) individually or together had a present ownership interest in a principal residence within three (3) years prior to date of application. I (we) also understand that I (we) cannot have an ownership interest in a principal residence between the date of application and closing. For this purpose, a principal residence includes a single family residence, condominium, share in a housing cooperative, and a manufactured home or mobile home (as defined under federal and state law), or occupancy in a multifamily residence owned by me (us). For this purpose, present ownership interest means ownership by any means, whether outright or partial, including property subject to mortgage or other security interest. An ownership interest also means a fee simple ownership interest by joint tenancy in common, a tenancy by the entirety, or a life estate interest. I (we) certify that I (we) have listed below all places ofresidence, whether owned or not, for a three-year period from date of application. 6. Previous Address: (Past Three Years) Owned Rented Other BeginninglEnding Date of Residencv From: End: Address of Residence All answers of "Other" must be fully explained; use additional paper if necessary. 7. Name, address and telephone of the owner/landlord who can verify each residence listed above which was not owned by the applicant. Landlord Name Address Telephone No. 8. I (we) certify that the total purchase price of the Residence and land, including all construction items, all commissions, all builder's fees, hook-up and tap-in fees, permits, architectural fees, all site improvements, discount points paid by the seller, work credit, subcontracted items, or construction loan interest, but excluding any closing costs and other permanent financing charges will not exceed the purchase price limitation applicable to the Residence below: Maximum Sales Price (Single Family Unit) $150,000. 9. I (we) further certify that no other agreement, either verbal or written is presently contemplated for the completion of the purchase of the Residence. 10. I (we) further certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified mortgage bond or a qualified veteran's mortgage bond. No person related to me (as defined in CDC 1999-19 applicable federal or state laws and regulations) has or is expected to have an interest as a creditor in the Mortgage loan being acquired for the Residence. 11. I (we) understand and agree that if a ARR-MAP is approved for me (us), it may not be transferred without consent of the Agency (including applicable federal law, as amended, and the regulations there under). 12. I (we) understand and agree that I (we) may seek financing from any Lender of my (our) choosing and that I (we) am (are) in no way prohibited from seeking financing from any potential Lender, so long as the Lender complies with the terms of the ARR-MAP guidelines. 13. I (we) understand that the decision to make a first mortgage loan is completely within the discretion of the first mortgage Lender to whom I (we) apply for a loan. The Agency plays no role in the decision to make a first mortgage loan nor the amount of that loan. 14. I (we) cannot close my (our) loan prior to receiving a ARR-MAP loan approval. 15. I (we) acknowledge and understand that this Application Affidavit will be relied upon for the purpose of determining my (our) eligibility for a ARR-MAP. (I (we) acknowledge that a material misstatement fraudulently or negligently made in this Application Affidavit or in any other statement made by me (us) in connection with an application for a ARR-MAP may constitute a federal violation punishable by a fine and/or denial of my (our) application for a ARR-MAP loan. Ifa ARR- MAP loan commitment has been issued prior to discovery of the false statement, immediate cancellation of the ARR-MAP will occur which will be in addition to any criminal penalty imposed by law. Dated: Signature of Applicant(s) Dated: Signature of Applicant(s) P:\Fonns\Mortgage Assistance\MAP-Application Affidavit.doc CDC 1999-19 FIRST TIME HOME BUYER MORTGAGE ASSISTANCE PROGRAM DISCLOSURE STATEMENT IlWe (Participant) understand and agree that the provision of financial assistance from the Redevelopment Agency of the City of San Bernardino (the "Agency") under the First Time Home Buyer Mortgage Assistance Program (the "Program") is conditioned on a number offactors, including, but not limited to (all terms not otherwise defined herein shall have the meaning provided in the Loan Agreement by and between the Agency and the Participant): . I/We must find a single-family detached home within the City of San Bernardino which I/We can afford (the "Property"). . I/We must qualify for a home loan from an institutional lender acceptable to the Agency. . I/We must qualify for assistance under the guidelines of the Program. . I/We must not have owned any interest in any residential real property during the past three (3) years. I/We further understand and agree that: I/We will be responsible for repaying the amount of the Note. The Note will be due and payable upon: (i) the sale of the Property, (ii) the transfer of any interest in the Property, (iii) refinancing of any lien or encumbrance to which the Agency Deed of Trust is subordinate, or (iv) I/We are no longer an occupant of the Property or are in default of any obligation under the Loan Agreement. . I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the Agreement is signed by sending a notice of my/our decision to rescind or cancel the Agency Loan to: Redevelopment Agency of the City of San Bernardino Housing Division 201 North "E" Street, Third Floor San Bernardino, CA 92401-1507 Attn: Housing Division Manager . An appraisal fee may be payable upon the following: (i) the loan becomes due upon sale (ii) the Property is refinanced, (iii) I/We no longer occupy the Property, or (iv) I/We are/am in default of any provision of the Loan Agreement. . The Agency shall not be held responsible for any costs associated with the home I/We 1 \\EDA _SAN BERDO\PUBLIC\Fonns\Mortgage Assistance\2-MAP-DISCLOS URE.doc CDC 1999-19 purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of the Property. . The Agency cannot ensure that information provided by or on my/our behalf will be confidential. . The Agency shall not be responsible for the selection of a home, the selection of a lender providing funds assisting in the purchase of the home, provide information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/We assume all responsibility for determining whether I/We will inform myself/ourselves as to the availability and terms of other public or private loans. . The Agency shall not be charged with the knowledge of the contents of the ocuments of the lender. DATED 19 DATED 19 DATED 19 2 \\EDA _SAN BERDOIPUBLICIFonnsIMortgage Assi stance\2-MAP-DlSCLOSURE.doc