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HomeMy WebLinkAboutOrd 1066 Sares Regis Group cc/o Greg Albert - Case No. DA 03-02 - 73240 Gerald Ford DriveORDINANCE NO. 1066 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AN AGREEMENT RELATING TO THE DEVELOPMENT AND ONGOING OPERATION OF A 320-UNIT APARTMENT/ CONDOMINIUM PROJECT ON THE NORTH SIDE OF GERALD FORD DRIVE BETWEEN MONTEREY AVENUE AND PORTOLA AVENUE, 73-240 GERALD FORD DRIVE CASE NO. DA 03-02 AS IT RELATES TO CASE NOS. C/Z 03- 04, TT 31363 AND PP/CUP 03-06 WHEREAS, the City Council of the City of Palm Desert, California, did on the 8th day of April, 2004, hold a duly noticed public hearing which was continued to May 13, 2004 to consider the request by SARES REGIS GROUP, LLC, for approval of DA 03-02; and WHEREAS, the Planning Commission by its Resolution No. 2240 has recommended approval of said agreement; and WHEREAS, said application has complied with the requirements of the "City of Palm Desert Procedure for Implementation of the California Environmental Quality Act, Resolution No. 02-06," in that the Director of Community Development has determined that the project will not have an adverse impact on the environment and a Negative Declaration of Environmental Impact is warranted based on the data provided as part of the University Village Master Plan, the General Plan Update and the EIR certified therefore; and WHEREAS, at said public hearing, said City Council heard and considered all testimony and arguments of all interested persons. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert, California, as follows: 1. That the above recitations are true and correct and constitute the findings of the City Council in this case. 2. That Agreement 03-02 (Exhibit A attached) is hereby approved. 3. That a Negative Declaration of Environmental Impact is hereby certified. (Exhibit B attached). 4. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in the Desert Sun, a newspaper of general circulation in the city of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. ORDINANCE NO. 1066 PASSED, APPROVED and ADOPTED at a regular meeting of the Palm Desert City Council, held on this day of , 2004, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California ROBERT A. SPIEGEL, Mayor 2 ORDINANCE NO. 1066 EXHIBIT A HOUSING AGREEMENT THIS Agreement is entered into this , day of , 2004, between (hereinafter "Property Owner") and the City of Palm Desert, (hereinafter "City"), a municipal corporation organized and existing under the laws of the state of California. RECITALS: This Agreement is predicated upon the following facts: A. Property Owner is owner of certain real property located within the City of Palm Desert, California, which property is described in Exhibit A attached hereto and made a part hereof (hereinafter "Property"). In consideration of the Property Owner entering into this Agreement, City has granted approval of general plan amendment through a general plan update) from low density residential (3-5 dwelling units per acre) to high density residential (10-22 units per acre), a change of zone from PR-5 (planned residential, five units per acre) to PR 13 (planned residential, 13 units per acre), a precise plan/conditional use permit, including a height exception to allow a 27 foot high roof element, and tentative tract map for apartment) condominium purposes to construct 320 residential apartment condominium units. B. City has approved an increase in the permitted maximum density from five dwelling units per acre to a maximum of 13 dwelling units per acre in return for providing dwelling units affordable to moderate income occupants. C. As a condition of said approval, City has required that a specified number of units associated with the project be set aside at an affordable housing cost to certain households. NOW, THEREFORE, the parties agree: 1. Definitions. In this Agreement, unless the context otherwise requires: (a) "City" is the City of Palm Desert. (b) "Project" is the development to be constructed in the City pursuant to Precise Plan/Conditional Use Permit 03-06. (c) "Property Owner" means the person having a legal or equitable interest in the real property as described in paragraph 3 and includes the Property Owner's successors in interest and assigns. (d) "Real Property" is the real property referred to in paragraph 2. (e) "Useful Life of the Project" is 55 years. P6402-0001 \774511 v 1.doc ORDINANCE NO. 1066 EX. A 2. Description of Real Property. The real property which is the subject of this Agreement is described in Exhibit A. 3. Interest of Property Owner. Property Owner represents that he has a full legal and equitable interest in the Real Property and that all other persons holding legal or equitable interests in the Property are to be bound by the Agreement. 4. Assignment. The rights of the Property Owner under this Agreement may not be transferred or assigned by the Property Owner prior to the completion of the construction of the Project unless the written consent of the City is first obtained, which consent shall not be unreasonably withheld. The City shall have two weeks from the date of receipt of the request to respond. Upon the completion of the Project as evidenced by the issuance of a certificate of occupancy therefor, the written consent of the City shall no longer be required to transfer the rights of the Property Owner under this Agreement to any successor in interest in the Real Property. Upon the assignment of this Agreement by the Property Owner to a successor in interest in the Real Property, the City agrees that it will look solely to such successor in interest to thereafter perform all of the covenants, terms and conditions of this Agreement and the assigning Property Owner shall be released from liability accruing under this Agreement from and after the effective date of such assignment. Notwithstanding the foregoing, the Property Owner and its assignees shall have the right to collaterally assign this Agreement without the City's consent to Property Owner's lender in connection with the financing of this Project. 5. Binding effect of Agreement. The burdens and the benefits of the Agreement shall constitute covenants that shall run with the Real Property and shall be binding upon and inure to the benefit of the successors in interest to the Real Property. 6. Relationship of parties. It is understood that the contractual relationship between the City and Property Owner is such that the Property Owner is not an agent of the City. 7. Affordable Units. (a) City has amended the general plan and granted a change of zone increasing the permitted maximum density on the property from five units per acre to 13 units per acre. Based on these amendments, the City has approved the Precise Plan / Conditional Use Permit 03-06 for a 320-unit apartment /condominium project, including a height exception to allow a 27-foot high roof element on the Property. In exchange for increasing the permitted density from five units per acre to 13 units per acre, the Property Owner agrees to set aside 20% of total project units as units affordable to moderate income households. The exchange is required pursuant to the goals and objectives of the General Plan with respect to the provision of affordable housing. The project's affordable housing requirement shall therefore be established at 64 units. For the entire period that the Project is operated as an apartment project, at least 64 units in the Project shall be rented to and shall be affordable to moderate -income families P6402-0001\774511v1.doc -2- 052004 ORDINANCE NO. 1066 EK' A at 100, 105, 110 and 115 percent of area median income on a prorated basis per unit sizes for the Useful Life of the Project, as follows: No. of Units % of Income 7@ up to 100% 32@ 101--105% 19@ 106-- 110% 6 @ 111--115% 64 If in the event the Property Owner, after fifteen (15) days of vacancy, cannot fill an affordable unit at the required level of affordability, and it has made such vacant unit(s) available to moderate income families from the City's Housing Authority's tenant waiting list, the Property Owner will be permitted to fill such vacant affordable unit(s) with moderate income tenants at higher incomes. No more than six of the sixty-four units will be permitted to be occupied outside the permitted affordability levels at any given time without prior written consent of the City's Housing Authority administrator. (b) (b) If the Project is later converted to condominium units, at least 64 units in the Project shall be sold to and shall thereafter be affordable to moderate income families at 100, 105, 110 and 115 percent of area median income on a prorated basis per unit sizes for the longer of 45 years or remaining Useful Life of the Project. The 64 affordable units shall be further designated as follows: TOTAL AFFORDABLE UNITS One (1) Bedroom Units 19 Two (2) Bedroom Units 39 Three (3) Bedroom Units 6 64 (c) Maximum rental rates for such affordable units shall be set by the Palm Desert Housing Authority pursuant to state law at the time the units first become available for rent. Annual rent increases shall not exceed the increases permitted by state law. (d) Sales prices in the affordable units shall be set by the Palm Desert Redevelopment Agency pursuant to state law an amount such that the units will qualify as affordable to moderate income persons pursuant to state law. P6402-0001\774511v1.doc -3- 052004 ORDINANCE NO. 1066 EX. A (e) City shall cause the Palm Desert Redevelopment Agency to provide second trust deed financing to buyers to secure 45-year affordability covenants. The amount of such financing shall be at the sole and absolute discretion of the Agency. (f) Subsequent sales of any affordable units shall be subject to resale controls substantially in the form of the deed restrictions attached hereto as Exhibit " A ", which will assure that said units may only be sold or rented to income qualified persons provided for in this paragraph 7. (g) Property Owner or its assigned management agent shall be responsible for determining the eligibility of prospective tenants in the affordable units. (h) Property Owner shall advise the City in writing prior to obtaining building permit regarding the method to be used to satisfy affordable housing requirement of the project. (i) Property Owner shall not discriminate on the basis of race, color or creed, sex, or national origin. (j) Change in Project. Property Owner hereby agrees that prior to the initial completion of the Project as evidenced by the issuance of a certificate of occupancy, no change, modification, revision or alteration may be made in the approved precise plan without review and approval by the City and those agencies and departments of the City approving the plan in the first instance. A change, modification, revision or alteration in the approved precise plan/conditional use permit prior to the initial completion of the Project is not effective until the parties amend this Agreement to incorporate it. (k) Hold Harmless. Property Owner agrees to and shall hold the City, its officers, agents, consultants, employees and representatives harmless from any liability for damage or claims for damage which may arise from the direct or indirect operations of the °°Property Owner or those of his contractor, subcontractor, agent, employee or other person acting on his behalf which relates to the Project. Property Owner agrees to and shall defend the City and its officers, agents, employees and representatives from third party actions for damages caused or alleged to have been caused by reason of Property Owner's activities in connection with the Project. This hold harmless agreement applies to all third party damages and claims for damages suffered, or alleged to have been suffered, by reason of the operation referred to in this paragraph, regardless of whether or not the City prepared, supplied, or approved plans or specifications or both for the Project. Property Owner further agrees to indemnify, hold harmless, pay all costs and provide a defense for City in any action challenging the validity of this Agreement. P6402-0001 \774511 v 1.doc -4- 052004 ORDINANCE NO. 1066 EX. A (1) Periodic Review of Compliance with Agreement. So long as the Project is an apartment project, the Property Owner shall, at his expense, prepare an annual report and deliver such report to the City regarding compliance with the affordable housing provisions of this Agreement. The City may inspect the affordable units pursuant to applicable law regarding inspections. The City may, at the expense of the Property Owner, cause to be performed an audit of the affordable units in the Project. (m) Amendment or Cancellation of Agreement. This Agreement may be amended or canceled in whole or in part by mutual consent of the parties. (n) Enforcement. Unless amended or canceled as provided in paragraph (m), this Agreement is enforceable by any party to it notwithstanding a change in the applicable general or specific plan, zoning, subdivision, or building regulations adopted by City which alter or amend the rules, regulations or policies governing permitted uses of the land, density, design, improvement and construction standards and specifications. (o) Events of Default. Property Owner is in default under this Agreement upon the happening of one or more of the following events or conditions: (i) If a warranty, representation or statement set forth in this Agreement by Property Owner to City is false or proves to have been false in any material respect when it was made; (ii) A determination by the City that Property Owner has not complied with any term or condition of this Agreement. (iii) Property Owner's failure to maintain the Real Property in substantially the same condition as it exists on the date that City issues the Certificate of Occupancy with respect to the Project ordinary wear and tear and casualty excepted. (iv) Property Owner's failure to appear in and defend any action or proceeding purporting to affect the rights or powers of City under the terms of this Agreement, and to pay all costs and expenses, including attorneys' fees in a reasonable sum, in any such action or proceeding in which City may appear. (p) Procedure upon Default. If the City determines that the Property Owner is in default, the City shall notify the Property Owner in writing as to the nature of the default. Property Owner has 30 days upon receipt of such notification to take and complete remedial action. If Property Owner fails to take and complete remedial action within the 30-day period described above, the City may pursue all legal and equitable remedies the City may have at law or in equity, and City shall be entitled to specific performance and enforcement of each and every term, condition and covenant set forth herein. P6402-0001\774511v1.doc -5- 052004 ORDINANCE NO. 1066 EX. A (q) Damages upon Cancellation, Termination of Agreement. In no event shall Property Owner be entitled to any damages against the City upon termination of this Agreement or exercise by City of its rights under this Agreement. (r) Attorney's Fees and Costs. If legal action by either party is brought because of breach of this Agreement or to enforce a provision of this Agreement, the prevailing party is entitled to reasonable attorneys' fees and court costs. (s) Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by certified mail, postage prepared. Notice required to be given to City shall be addressed as follows: City Manager, City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California 92260. Notices required to be given to Property Owner shall be addressed as follows: Sares Regis Group, c/o Greg Albert, 18825 Bardeen Avenue, Irvine, California 92612. A party may change the address by giving notice in writing to the other party and therefore notices shall be addressed and transmitted to the new address. (t) (i) Rules of Construction and Miscellaneous Items. The singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory, "may" is permissive. (ii) If there is more than one signer of this Agreement, on behalf of the Property Owner, obligations are joint and several (u) Duration of Agreement. This Agreement shall remain in effect during the Useful Life of the Project. (v) Applicable Law. This Agreement shall be construed according to the laws of the State of California. (w) Severability. If any portion of this Agreement is for any reason held to be unenforceable, such determination shall not affect the validity of the remaining portions. (x) Authority. Each of the parties hereto covenants and agrees that it has the legal capacity to enter into this Agreement contained herein, that each Agreement is binding upon that party and that this Agreement is executed by a duly authorized official acting in his official capacity. P6402-0001\774511v1.doc -6- 052004 ORDINANCE NO. 1066 EX. A IN WITNESS WHEREOF this Agreement has been executed by the parties on the day and year first above written. Approved as to form: CITY OF PALM DESERT, A Municipal Corporation Dave Erwin, City Attorney Attest: Rachelle D. Klassen, City Clerk By: SARES REGIS GROUP By: By: P6402-0001\774511v1 .doc -7- 052004 ORDINANCE NO. 1066 STATE OF CALIFORNIA ) EX. A COUNTY OF RIVERSIDE ) On this day of , 2004, before me, a Notary Public in and for said State, personally appeared , known to me or proved to me on the basis of satisfactory evidence to be the person who executed the within instrument on behalf of , and acknowledged to me that executed the same. P6402-0001\774511v1.doc -8- 052004 ORDINANCE NO. 1066 EX. A EXHIBIT "A" TO HOUSING AGREEMENT ORDINANCE NO. 1066 EXHIBIT A TO THE HOUSING AGREEMENT RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Executive Director Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, California 92260 Attention: City Clerk Exempt from recording fees pu UNIT REGU THIS U . T RE lE EEMENT the "Agreement" ) g ) is entered into this y of by and between the PALM DESERT REDEVELOPME CY,=� o� or.rate and politic (the "Agency"), and a(n) (indi A. located i Exhibit "A in Section 1(b residence. RECITALS oncurrently herewith acquiring that certain real property (the "Unit") P.. m Desert, County of Riverside, State of California, legally described in hereto and incorporated herein by reference, the address of which is set forth of this Agreement, and which the Owner shall occupy as the Owner's principal B. For the purpose, among others, of effectuating the Redevelopment Plan for Project Area No. 1, as amended, (the "Project Area"), as originally adopted by Ordinance No. 275 on November 25, 1981 (incorporated herein in its entirety by this reference), the Agency has provided assistance to the development of the Desert Rose project for low and moderate income housing. C. The Owner has represented to the Agency that the Owner and the Owner's household qualifies as a Person or Family of Very Low, Low or Moderate Income. D. Concurrently herewith, the Owner is executing a promissory note in the amount, if any, set forth in Section 1(c), representing a loan by the Agency to the Owner to assist in the Owner's acquisition of the Unit. NOW, THEREFORE, the parties agree as follows: 1. Fundamental Provisions. The following shall serve as the basic terms of DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE 1 (a) Name of Owner: The name of the Owner is (b) Address of the Unit: The address of the Unit is , Palm Desert, California. of ). The Loan is evidenced by a promissory note (the "Note") and se (the "Deed of Trust") executed by Owner concurrently with this Agree 2. Definitions. For purposes of th's Agra nt, the ter meted be .w shall have the meanings thereinafter specified. (a) AMI. As us median family income of the Rivers annually by the United State to California Health and Safe The AMI shall be ®,t ed for to California Healt _` • afety occupyin• the Unit. (c) Amount of the Loan: The principal amount of t Doan is the sum D. "Aff Gros have the Section 6 Income" Regulation t a deed of trust I" means the ned and published Urban D cl lent ("HUD"), pursuant the regula ions promulgated thereunder. ith state regulations adopted pursuant the number of persons in the family Cost. For the purposes hereof, the term Using cost which does not exceed 30 percent of the for the purposes hereof, the term "housing cost" shall to such term in Title 25 of the California Code of Regulations lations may be amended from time to time, and the term "Gross e meaning ascribed to such term in Title 25 of the California Code of n 6914, as such regulations may be amended from time to time. (c) Person or Family of Very Low, Low, or Moderate Income, or Very- Low Income Household, a Low -Income Household, ora Moderate -Income Household means a person, family or household meeting the income qualification limits set forth in California Health and Safety Code Sections 50093, 50105, 50052.5, and 50053, and Title 25 of the California Code of Regulations Section 6910, et seq., as the case or context may require, as such statutes and regulations may be amended from time to time, and any successor statutes thereto. (d) Qualified Person means a person or family of Very Low, Low or Moderate Income. Unless the Agency or its designee, in its sole discretion determines otherwise, in the case of a studio unit, Qualified Person means a household of one person, in the case of a one -bedroom unit, Qualified Person means a household of two persons, in the case of a two - bedroom unit, Qualified Person means a household of three persons, in the case of a three - bedroom unit, Qualified Person means a household of four persons, and in the case of a four - bedroom unit, Qualified Person means a household of five persons. DESERT ROSE UNIT REGULATORY AGREEMENT 30%. SAMPLE (e) Escrow Costs means only those fees charged by an escrow agent or title insurance company charged solely for the cost of closing an escrow and does not include loan fees, refinancing fees, broker commissions, prepaid items, homeowners dues, transfer fees, or other fees, commissions or costs. (f) Unit means the real property described in attached Exhibit "A" and may include vacant land, single-family dwellings and multi -family dwellings. (g) Owner means both the party identifie® ner" in the first paragraph of this Declaration, and any successor in interest of such n r wig respect to the Property. Restriction on Transfer. (a) The Owner convey, transfer, lease, sublease, as into agreements to sell, conve nsf or hypothecate the Unit, exc written approval of t Agenc written approval o enc this Agreement. pro whol result Owner to Term. dole or in part, age,t te the Unit, or enter assign, r, mortgage, refinance rms of thi 'r reement and with the prior s designee. Failure to obtain the prior designee will be deemed a breach of each of the provisions of Section 3(a) hereof is nsfer of interest enumerated in Section 3(a) above, in d unenforceable, and at the Agency or its designee's option, e Uni by the Agency and/or an acceleration of the Note requiring the the Note in full if such transfer is made prior to the expiration of the (c) In the event of the death of the Owner with no qualified surviving joint tenants, the Agency or its designee will work with the heirs, probate court, or other responsible party to either exercise its option to reacquire the Unit in accordance with Section 8 hereof or identify a Qualified Person to purchase the Unit. 4. Term of Agreement. This Agreement shall become effective on the date it is recorded in the Official Records of Riverside County, California, and shall terminate 30 years after the date of recordation hereof (the "Term"). The Agency has determined that 30 years is the longest period feasible for continuing the Term of this Agreement. The Owner's repayment of the Loan shall not terminate this Agreement. 5. Covenant to Maintain Affordability. (a) The Unit is being sold to Owner and the Loan is being given by the Agency to the Owner to increase and improve the community's supply of low and moderate income housing available at an Affordable Housing Cost in accordance with the affordable DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE housing requirements of the Community Redevelopment Law (California Health and Safety Code, Section 33000, et seq). Subject to the provisions of Section 3 hereof, the Owner shall sell, convey, assign, or transfer ownership or occupancy of the Unit only to Qualified Persons who cannot obtain comparable housing at an Affordable Housing Cost on the open market as provided in Health and Safety Code Section 33334.2(e)(8), as amended. To this end, the Owner agrees that during the Term the Unit shall, except as provided in Sections 6, 9.(c) and 11 hereof, remain available only at an Affordable Housing Cost and shall only be occupied by Qualified Persons. In addition, if, without the Agency or its designee's consent, the Owner fails to o .' py the Unitas the Owner's sole principal residence for a period of 90 calendar days, cum in any calendar year, then the Owner shall be in breach of this Agreement. (b) Subject to the provisions of Sec the entire Term the Owner previously has not either (i) s the Unit except to a Qualified Person, except wh leased or subleased the Unit in violation of encumbered, or mortgaged the Unit in viola exceeding the maximum price permit terms and provisions hereof, the Agen Own occ exce transf designee's form any 12 here nveyed, r mitted by iii) refina or expiration of red, oassigned Hof, or (ii) thecated, nit at a price rose breached the rsons. Subject to the option rights of the ualified Persons on the condition that (i) the Ions 8 and 9 hereof, (ii) the purchaser covenants to cipal residence, and (iii) the purchase price does not ale price set forth in Section 11 hereof. Any permitted Unitsubjectto the terms and conditions hereof or, at Agency or its nit Regulatory and Lien agreement and shall execute in recordable necessary to accommodate the transfer. (b) Intra-Family Conveyances. The following transfers of title shall not be breaches of this Agreement: transfer by gift, devise, or inheritance to the Owner's spouse; taking of title by surviving joint tenant that is the Owner's spouse; transfer of title to a spouse as part of a divorce or dissolution proceeding; acquisition of title in conjunction with marriage; transfers of title to an adult child when the child is approved by the Agency's Executive Director or his designee as a Qualified Person at the time of transfer. A transfer to children of the Owner who are not Qualified Persons shall give rise to the option in favor of the Agency to acquire the Unit described in Section 8 hereof; provided, however, such option to acquire shall be exercised by the Agency within 60 days after receipt by the Agency or its designee of written notice of such transfer, and the purchase price shall be the amount set forth in Section 8(e). (c) First Trust Deed - Purchase. The Owner may encumber the Unit with a first position deed of trust securing a purchase money loan on the condition that the first position trust deed complies with the terms of this Agreement. (d) Refinancing of First Trust Deed. Subject to compliance with the DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE provisions of Section 10 hereof, the Owner may refinance a first deed of trust encumbering the Unit provided that the Agency's Executive Director or his designee has previously reviewed and approved the terms and conditions thereof including, but not limited to, the principal amount of the proposed loan, the interest rate, the terms of repayment, the identity of the maker of the proposed loan, any documentation pertaining to the subordination or enforcement of the Agency's loan and related security documents, the costs and fees associated with the making of the proposed loan, and the Owner shall have received the written approval of the proposed loan by the Agency's Executive Director or his designee prior to the date of its closing. Any refinancing of a first deed of trust which has not been previously approved by the Agency's Executiv or or his designee as herein above described shall constitute a default under this Agrees shall, at the option of the Agency or its designee, result in the acquisition of the unit b f A and/or in an acceleration of the Note requiring the Owner to immediate, epay the ��s (e) Junior Trust Deeds. Section 10 hereof, the Owner may enter into, and subordinate to the Deed of Trust • • ide solely to pay for repairs or the cons Executive Director or his d conditions thereof, includin interest rate, the term ,,of repa fees associated w repairs or the con Owne Dire not grou reaso provisions mortgage; • subordinate to the Deed of Trust shall constitute a default under this Agreemen all, at the option of the Agency or its designee, result in the acquisition of the Unit by the Agency and/or in an acceleration of the Note requiring the Owner to repay the Note in full. Notwithstanding the foregoing, the Agency agrees that the Owner may encumber the Unit with a third, junior deed of trust securing a loan from the County of Riverside's Economic Development Agency pursuant to its First Time Home Buyer Program, provided that the amount of such loan does not exceed the lesser of $20,000.00 or 20% of the Owner's purchase price of the property. ave esig • ay f mpliance tt ah •lions of eed of tru • • gege junior s of each i stall be used (ii) the Agency's ewed ap . oved the terms and cipal amo of the proposed loan, the ker of the proposed loan, the costs and the nature and costs of the proposed with the proceeds thereof, and (iii) the of the proposed loan by Agency's Executive osing, (iv) the proceeds of the proposed loan shall f improvement of a luxury nature such as, in or above terior decorative items, or other improvements where the not exceed 5 years. The failure of the Owner to comply fully with the e) when entering into a loan which is secured by a deed of trust or DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE 5 7. Subordination to First Trust Deed Encumbrances. (a) The Agency recognizes that Owner may be entering into a purchase money loan to acquire the Unit and also recognizes that immediately prior to the recordation hereof the Owner is or may be recording a deed of trust in connection with such financing that shall be superior to this Agreement and the Deed of Trust, and the Agency agrees that, in such event, such deed of trust recorded prior hereto shall be superior to this Agreement and the Deed of Trust. A default of such deed of trust will also be deemed a default of this U it Regulatory and Lien Agreement and Deed of Trust in favor of the Agency, if any. There , the event of the foreclosure of such deed of trust, or the conveyance by deed in lieu re of the Unit to a bank, savings and loan, or other institutional lender that is the beneficiarydeed of trust, ect; provi , if the senior oreclosu he to s hereof ice of a d u - e senior der the se i �ftrust, or tong s received by the provisions hereof shall terminate and be of no force or lien holder acquires title to the Unit pursuant to a deed in l shall terminate only if (i) the Agency has been deed of trust and (ii) the Agency shall not hav diligently pursued the curing of the def the Agency or its designee. (b) of trust that was supe all respects to th subordination agr subor rl this A save st n as Loa th Chas the hat, in the 'nt of a refinancing of a deed r to th "= ' f 1 t , and which such refinancing complied in Hof, the Agency agrees to execute a acceptable to the Agency or its designee, T to any first deed of trust, in favor of any bank, Tonal lender which makes a loan to refinance the ch secures the obligations under such loan, subject to (i) The principal amount of the new loan does not exceed the original unt of the loan being refinanced, plus reasonable loan fees and costs up to a maximum r e rcent (5%) of the original principal amount, unless Agency or its designee has provided written authorization otherwise. (ii) The terms and provisions of the loan secured by such deed of trust, including interest rate, term, amortization, fees, acceleration clauses, late payment charges, and prepayment charges, shall conform substantially to the provisions in the lender=s loan documents for comparable loans, unless deviations are given written approval in advance of the subordination by the Agency's Executive Director or his designee. (iii) The Owner shall deliver to the Agency or its designee true and accurate copies of the loan agreement, proposed promissory note, deed of trust, and a written statement from the Owner certifying that such documents are true and accurate copies of the loan documents which the Owner intends to execute in connection with the loan; and (iv) The Agency or its designee may condition any such subordination upon its receipt of a title policy or endorsement from a reputable title company, at the Owner's sole cost and expense, assuring that this Agreement and the Deed of Trust are not DESERT ROSE UNIT REGULATORY AGREEMENT 30% SAMPLE being subordinated to any liens or encumbrances other than those imposed by the deed of trust or mortgage securing such new loan as the result of such subordination. If the Agency, at the election by the Executive Director or his designee, has advanced any sums to any senior lien holders such amounts shall immediately be due and payable by the Owner to the Agency, together with interest accrued thereon at the maximum legal rate permitted under California usury laws, upon the closing of any refinancing or sale. 8. Agency Option to Purchase. (a) Option. In order to maintain and insure affordable to and only occupied by Qualified Persons, th & gency is throughout the Term hereof, to purchase the Unit if the S desires t find another Qualified Person .to purchase the the Agency or its designee, if at all, within 6 designee's receipt of the written notice transfer the Unit (as more fully des Owner may also concurrentl provided in Section 9 here Qualified Person (pr usly a a price that does n d th Agency shall not th Unit. purch the clos escr mone customary shall be cy's Exe le" shall remain ed an option, the Unit, or to iting by r or his is desire to hersuch 60 day period it to s Qualified Person, as into an a ment to sell the Unit to a irector of the Agency or his designee) at Section 11 hereof. In such event, the e tide Unit or find another Qualified Person to e m ercises the option to purchase the Unit, then se shall promptly open escrow therefor and shall prior to the date that is 60 days after the Agency opens tvered to the Agency at the close of escrow free and clear of brances, and closing costs shall be allocated in the fashion as is ellers in Riverside County. (b) Agency's Failure to Close Following Exercise of the Option to Purchase the Unit. If the Agency or its designee exercises the option to purchase the Unit but, due to the Agency's sole fault, the Agency does not close escrow within 60 days after the date the Agency's Executive Director or his designee opens escrow, then the Owner shall be entitled to sell the Unit to a person or family that is not a Qualified Person; provided, however, (i) if the Unit is sold to a person or family that is not a Qualified Person, or (ii) if the Unit is sold at a price that exceeds the maximum resale price set forth in Section 11 hereof, then the Owner shall repay the Loan (including all accrued interest thereon) to the Agency as provided in Section 9(c), below, plus an amount equal to 25% of the amount by which the net sale proceeds received by the Owner ("net sale proceeds" being the gross sale proceeds minus customary and reasonable costs of sale incurred by the Owner, including brokerage commissions, and adjusted for reasonable pro - rations) exceeds the maximum resale price set forth in Section 11 hereof. (c) Terms of Purchase. if the Agency or its designee exercises the option to purchase the Unit, the purchase price to be paid by the Agency shall be paid all in cash at the close of escrow. The Owner may require a deposit to open escrow in an amount not to exceed three percent (3%) of the purchase price. Title to the Unit shall be delivered to the Agency at the DESERT ROSE UNIT REGULATORY AGREEMENT 30%- SAMPLE close of escrow free and clear of f monetary liens and encumbrances. Closing costs shall be allocated between the buyer and seller according to the customary practices in Riverside County in effect at the time the option is exercised. (d) Conditions to Close of Escrow. The escrow instructions may provide for conditions or contingencies of the type and nature customarily included in residential purchase escrows (including but not limited to inspection by the Agency and elimination of pests, and preliminary title report approvals), provided that any such conditions or contin ncies (other than the status of title to the Unit at the time of conveyance and other conditi' wh h by their nature cannot be satisfied prior to closing) must be satisfied or waived on orb f, a close of escrow. The proceeds of the sale shall be used to pay off all monetary liens an u ® ces upon the close of escrow. Escrow shall close within 60 days afteropening (e) Purchase Price. T Agency pursuant to the Agency's exercise o (i) reasonable and customary e actually incurred by the Own the AMI for the year which the Owner purch Agency shall assu e of the. he lesser by the e p i er for the Unit plus s (de dF Section 2(e) hereof) imes a fra , the numerator of which is e denominator of which is AMI in which the amount of the Loan, which the resale price determined pursuant to Section 11(a) her • tha �_ it; haser, is of the same income level as was the Owner at the t p or iii) the fair market value of the Unit, as determined by an appraiser approves ' ° �:®ncy or its designee. Resale Price Controls and Procedures. (a) If the Owner elects at any time to sell the Unit, then the Owner shall, prior to signing a listing agreement or other authorization to sell with a real estate broker, first provide to the Agency's Executive Director or his designee the Notice of Proposed Sale setting forth the Owner's intention to sell the Unit. Such Notice of Proposed Sale shall contain information about the Owner's original purchase price of the Unit and such other information as the Agency shall require. Agency or its designee shall have sixty (60) days from the time following the receipt by the Agency or its designee of the Notice of Proposed Sale to find a new buyer for the Unit being sold, or sixty (60) days to exercise the Agency or its designee's option to purchase described in Section 8 hereof; provided, however, the Agency or its designee may shorten such time period upon a showing of hardship by the Owner. The Owner agrees to consider as purchasers those Qualified Persons identified on a list that may be maintained by the Agency's Executive Director or his designee. Nothing contained herein shall be construed as imposing on the Agency any obligation to find a purchaser of the Unit if the Owner has elected to sell the Unit. DESERT ROSE UNIT REGULATORY AGREEMENT 3096- SAMPLE (b) If the Owner resells the Unit to a Qualified Person at a price that does not exceed the price set forth in Section 11 hereof, then the provisions hereof shall continue to encumber the Unit, and the Agency or its designee, if necessary, shall subordinate its interest in this Agreement and the Deed of Trust as provided in Section 7 hereof. Each successor in interest to Owner that is a Qualified Person shall acquire the Unit subject to the continuation of the restrictions on such property provided in this Agreement and the Deed of Trust; and if Agency purchases such property and resells the Unit, such acquisition shall not operate to merge this Agreement and the Deed of Trust into Agency's fee interest. (c) If, after expiration of the sixty (60) day per has failed to procure an acceptable and qualified buyer and the Age exercised its option to purchase the Unit, then the Owner hal then be Unit without any limitation on resale price or income level if the purchaser is not a Qualified Person, or (ii) price set forth in Section 11(a) hereof, then interest thereon) to the Agency, plus an proceeds received by the Owner ex hereof . (d) the type and nature cu toman to financing contininsp® any such conditio ; tiingek nd ot aive conve be s pay a re person's agreemen Agreement. t of. urchase e excee ay the L am cy or its designee nee has not buyer for the ed, however, (i) resale accrued the net sale in Section 11(a) provide for: n ditions or contingencies of chase escrows (including but not limited ry title report approvals), provided that t he status of title to the Unit at the time of it n ure cannot be satisfied prior to closing) must escrow. The proceeds of the sale shall be used to es upon the close of escrow. Escrow shall close within rye The Owner shall notify any proposed purchaser in writing prior to such escrow instructions, deposit receipt, purchase and sale agreement or similar ever is earliest, that the title to the Unit will be restricted as provided in this (f) The Owner may require a deposit to open escrow in an amount not to exceed three percent (3%) of the purchase price. Title to the Unit shall be delivered to the purchaser at the close of escrow free and clear of monetary liens and encumbrances, except as provided for in this Agreement. Closing costs shall be allocated between the buyer and seller according to the customary practices in Riverside County in effect at the time the escrow is opened. (g) For the purpose of confirming with the Agency that a proposed purchaser is a Qualified Person that will be paying a purchase price that is in compliance with the terms hereof, the Owner shall notify the Agency's Executive Director or his designee in writing of any offer from a prospective purchaser which the Owner intends to accept, disclosing the identity of such prospective purchaser and providing the Agency's Executive Director or his designee with such financial, credit, and other information on such prospective purchaser as required by the Agency, including the following: DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE (i) Name and address of the purchaser. (ii) Number of persons comprising the purchaser's household and their names and ages. (iii) Proposed purchase price of the Unit, and any other consideration for the purchase of the Unit. (iv) Amount of down payment. (v) Terms of any loan that will be used by purchase of the Unit, including, but not limited to, princip i terest ra (vi) Closing date. (vii) Aggregfi viz and all other members of the verification of the pr•tased p current pay stubs years. i nst Unit the Ag to finance the loan fees. old. ate inc turns of the purchaser the preced two (2) calendar years, and from the purchaser's employer or from ayroll for the preceding two (2) calendar Proposed purchase and sale agreement, escrow eements between the Owner and the purchaser of the cluding closing documents or any other documentation that ctor or his designee deems appropriate to implement this Agreement. (x) A written statement signed by the proposed purchaser that the Unit will be occ the purchaser and used as his or her sole residence. In lieu of providing the foregoing information, these requirements shall be deemed to have been satisfied by delivery to the Agency of a written certification of the foregoing information from the purchaser's lender who shall hold a first position trust deed encumbering the Unit, which certification shall be furnished to Agency's Executive Director or his designee at least 20 days prior to the close of escrow for the Unit. The Agency's Executive Director or his designee shall have 30 days from the date of its receipt by the Agency to review the information (unless the Agency received the certification from prospective purchaser's lender, in which case the Agency's Executive Director or his designee shall have 15 days to review the information). If the Agency or its designee fails to approve the purchaser within such period of time, then the purchaser shall be deemed approved by the Agency. The Agency's Executive Director or his designee may require the purchaser to submit other written documentation reasonably requested by the Agency to verify the information set forth herein and to determine that the Affordable Housing Cost restrictions of this Agreement shall be satisfied. If the Agency's Executive Director or his designee receives all such prospective purchaser information requested by the Agency, the Agency's Executive Director or his designee DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE 10 shall determine whether the prospective purchaser is a Qualified Person, and shall thereafter immediately notify the Owner in writing that the prospective sale is authorized and approved, or that the prospective purchaser does not qualify to purchase the Unit as a Qualified Purchaser. The Agency hereby designates the Executive Director of the Agency or his designee to make the evaluations, reviews and determinations set forth in this Section 9(g). If the Agency notifies the Owner that the sale is authorized and approved, the Owner shall proceed to complete the sale of the Unit within 75 days of the date of such approval from the Agency. 10. Notification Prior to Mortgage, Encumbrance or Hypoh� desires to refinance any loan secured by a first trust deed encum Section 6(d) hereof, or to borrow funds for a new loan to be secu encumbering the Unit the proceeds of which are to be used of improvements to the Unit, pursuant to Section 6(e) Agency's Executive Director or his designee i pursuant to Section 6 will be allowed. The Q 30 days prior to the recordation of a d loan, the Owner shall submit to the following information: term -� fees Name! b pay for r of, prior y loans uch appr ring Unit, pursuant to or trust deed construction apprw al of the he Unit at least financing or ee in writing the tion. If Owner ut not limited to, principal, interest rate, proposed escrow instructions, loan application, or other agree €: twner and the lender. e) Written documentation of compliance with the conditions for Agency approval a in Section 6(d) or Section 6(e) hereof, as applicable. (f) Other written documentation reasonably requested by the Agency or its designee. The Agency's Executive Director or his designee shall have 20 working days after its receipt of all of such information to approve or disapprove the proposed refinancing or loan. 11. Restriction on Resale Price. Except as permitted by Sections 8 and 9(c) hereof, the Owner shall not resell the Unit at a price higher than the lesser of the following: (a) An Affordable Housing Cost (as defined in Section 2(b) hereof) for the prospective purchaser, assuming (i) a reasonable down payment, and (ii) a 30 year fixed rate mortgage at prevailing interest rates. (b) The sum of: (i) the selling Owner's original purchase price of the Unit times a DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE 1 1 fraction, the numerator of which is the AMI for the year in which the sale takes place, and the denominator of which is AMI in which the Owner purchased the Unit; plus (ii) escrow costs, title insurance premiums paid, and other customary closing costs and fees as described in Section 2(e) hereof; plus (iii) if the Owner sells the Unit after a default under a mortgage or deed of trust, but prior to a trustee's sale or foreclosure sale, all expenses act .iIy incurred by the holder of such mortgage or beneficiary under such deed of trust du ``:t Owner's default including, but not limited to, trustee's fees, attorney's fees, costs of sa , debt service on the debt secured by such mortgage or deed of trust will be paid from Own r•, s. (c) the fair market value of the U approved by the Agency or its designee. 12. Repayment of they and payable, except as follows: If the re s e t a Qualified eion and, at the option of the Agency's Executive i ector -- chi haser either executes an assumption agreement (and s -r doe xecutive Director or his designee may require) evidencin a - umpf t A g e , the Note and the Owner's obligations thereu exec --liv it gulatory and Lien Agreement, Note and Deed of Try � ��� - t onl Agency's Executive Director or his designee shall app ), t all i - • ' the date of the Owner's acquisition of the Unit through the cw Qualified Person shall be paid at close of escrow of such resale, t en accrue from and after the closing date of the resale (with such accrued int reste subject to payment upon another resale to yet another Qualified Person), tii principal amount of the Loan shall be due only to the extent that the purchase ° by the purchaser exceeds the amount that would have been the maximum resale price to another purchaser at the same income level as was the Owner's at the time of the Owner's original acquisition of the Unit. (Thus, if the seller and the purchaser are of the same income level, then none of the principal would be due, but if the purchaser is of a higher income level, then it is possible that some of the principal may be due because the maximum resale price calculated pursuant to Section 11(a) hereof, may be higher if the purchaser is of a higher income level than was the Owner at the time of the Owner's acquisition of the Unit.) 'At the end of the Term hereof, if there have been no resales to any person or family other than a Qualified Person, the principal balance outstanding and any accrued interest shall be forgiven by the Agency subject to and in accordance with the provisions of Section 5(b) hereof. determin eU p • aiser shall be due 13. Annual Report. The Agency shall have the option of requiring that the Owner provide, on an annual basis, such information as the Agency's Executive Director or his designee deems necessary to implement this Agreement. 14. Nondiscrimination Covenants. By the Owner's acceptance hereof, the Owner agrees, for itself, its successors and assigns, to refrain from restricting the transfer of the Unit on the basis of race, color, creed, religion, ancestry, sex, marital status, national origin or age of any DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE 12 person. All such deeds entered into with respect to the Unit shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: "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, national origin, or ancestry in the sale, lease, in conveyed, nor ,permit any such election, location, dees in the sublease, transfer, use, occupancy, tenure, or enjoyment of the premises h shall the grantee or any person claiming under or through him or her, esta practice or practices of discrimination or segregation with referenc number, use or occupancy of tenants, lessees, subtenants, suble premises herein conveyed. The foregoing covenants shal�n with th The foregoing shall be a covenant running with t the Unit, and shall remain in effect in perpetu permitting the Owner to transfer the Unit prior written consent. enefit of, d herein tive Direc n upon GIs rued as is designee's 15. Maintena �4 h ��n ��� o t •� � e oAgainst e. d demolish the improvemehe Owner nts not commit waste upon Unit. o; on the Unit. The Owned; ° throw �� - er®, deep and maintain the Unit and the improvements there ��,�od c: gi s � r If e Owner at any time fails to so keep and maint ° ' Unit in 0 days notice from the Agency, the Agency's Exe ctor •_ • �s �` ,fie � = a right to enter onto the Unit and perform such def . a t nanc II promptly reimburse the Agency for all costs incurred by th = - � rfc . intenance. The Agency shall also use reasonable efforts to provid Rose Residents' Association prior to such entry. If either party defaults with regard to any of the provisions of this Agreem'` efaulting party shall serve written notice of such default upon the defaulting party. If the °' is not cured by the defaulting party within thirty (30) days after service of the notice of default, or if the default is not commenced to be cured within thirty (30) days after service of the notice of default and is not cured promptly within a reasonable period of time after commencement, the defaulting party shall be liable to the other party for damages caused by such default. 17. Notices. All notices to be delivered to the parties pursuant to the terms hereof shall be in writing and shall be delivered in person or by U.S. Mail or other delivery service to the addresses listed below. Any of the following addresses may be changed by written notice. If notice is given it shall be deemed effective upon 3 business days after deposit of same, postage prepaid, in the U.S. Mail, or the date of actual receipt as evidenced by personal acknowledgment, return receipt or other comparable means. If to Owner: At the address for the Unit set forth in Section 1 (b). DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE 13 If to the Agency: Palm Desert Redevelopment Agency 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Executive Director 18. Covenants to Run With the Land. Except as otherwise provided in this Agreement, the covenants established in this Agreement shall be binding on the Owner and any successor in interest of the Owner to the Unit, and shall be for the benefit nd in favor of the Agency, its successors and assigns, the City of Palm Desert, and Alpha` • Sanchez the real party in interest under that certain Stipulation for Entry of Judgment ._ - County Superior Court Case No. INDIO 51124, and the covenants shall run with the 1 f the Agency and shall be a burden upon the Unit and shall be for the Project Area owned by the City of Palm Desert, as descri on December 22, 1981 in the Official Records of this Agreement shall be incorporated by refer Unit. The Owner (and each successor ' to instrument to any successors in inte% breach by the Owner of an remedies, and to maintain enforce the curing •such however, the Own performance here° "trans obli Unit b investment fit of the ® t omprise the Instrume.. ®� 3610recorded . The c• M an • fished in veying al h®• Eton of the shf copy of this the event of any erein, • - c se all the rights and n equity or er proper proceedings to ment. Notwithstanding the foregoing, wner named herein shall be liable for b-ownership of the Unit, provided that the an , agreed to perform the "transferor" Owner's stment. The Owner ackowledges that the acquisition of the ant to this agreement is not intended as a speculative financial dministration. The Agency may administer the terms hereof or may, from time to time assign its rights hereunder or designate another entity, person, licensed real estate broker or organization to administer the terms hereof. 21. Independent and Severable Provisions. If any provision of this instrument is held by a court of competent jurisdiction to be unenforceable or invalid, such holding shall not render unenforceable any other provision hereof, each provision hereof being expressly severable and independently enforceable to the fullest extent permitted by law. 22. Further Assurances and Recordations. The Owner covenants that upon request of the Agency, the Owner, or its heirs, successors or assigns, will execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such further instruments and agreements and do such further acts as may be necessary, desirable or proper to carry out more effectively the purpose of this instrument. At the expiration of the Term, the Agency agrees to provide to the Owner an instrument in recordable form that has the effect of confirming the termination of the affordable housing requirements of this instrument. Concurrent with the recordation of any deed of trust or mortgage which is senior or DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE 14 subordinate to the Deed of Trust, the Owner, at its sole cost and expense, shall cause to be recorded in the official records of the Office of the Riverside County Recorder a written request for a special notice of default in favor of the Agency. 23. Captions and Section Headings. Captions and section headings used herein are for convenience only and shall not be used in construing this instrument. 24. No Waiver. No waiver by the Agency of its rights hereun by the Owner of any covenant, restriction, or condition herein contained such waiver is in writing, signed by the Agency's Executive Director orb to the Owner. Any waiver by the Agency of its power to terminate the any covenant, restriction, or condition herein contained, o e failure any right or remedy with respect to any breach or breo shall no relinquishment for the future of any rights regards a - s t sales, or condition nor bar any right or remedy of the a asp any subs 25. Entire Agreement. parties hereto, and the provj instrument signed by the pa 26. enforce or to interp an aw + ason or of any breach effective unless nee and delivered to herein or of y to exercise Lute a waiver or enant or agreement of the ed only by a written declare the rights granted herein or to t, the prevailing party shall be entitled to nt determined by the court. e Agency, its successors and assigns, and the Owner ande Owner in and to all or any part of the fee title to the Unit shall hnt and agree to changes in, or to eliminate in whole or in part, any of the covena ts, e A or other restrictions contained in this Agreement. uccessors and Assigns. This Declaration shall be binding upon and inure to the benefit of the Agency and the Owner, and their respective successors, owners and assigns. The terms and provisions hereof shall run with the land and shall be a burden upon the land, including the Unit and each Unit, and shall be binding upon the Owner's successors in interest as purchasers of the Unit, for the benefit of the Agency. DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE 15 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. "AGENCY" PALM DESERT REDEVELOPMENT AGENCY, public body, corporate and politic By: "OWNER" DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE 16 State of California County of On , 2004, before me, personally appeared , a Notary Public, , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name s):is/are subscribed to the within instrument and acknowledged to me that he/she/they exec =mac. same in his/her/their authorized capacity(ies), and that by his/her/their signatu » he instrument the person(s), or the entity upon behalf of which the person(s) acted,= ®utdte instrument. Signature (seal) Stat Cou personal. WITNESS my hand and official se , 2004, before me, a Notary Public, , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (seal) DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE EXHIBIT A LEGAL DESCRIPTION That certain real property situated in the City of Palm Desert, County of Riverside, State of California, described as follows: LOT OF TRACT MAP NO. 27546, IN THE CITY OF PA M„ RT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PE RECORDED IN BOOK 249 OF MAPS, PAGES 63 THROUG mN 1 - IVE, RECORDS OF SAID COUNTY. DESERT ROSE UNIT REGULATORY AGREEMENT 30% - SAMPLE ORDINANCE NO. 1066 EXHIBIT B Pursuant to Title 14, Division 6, Article 6 (commencing with section 15070) of the California Code of Regulations. NEGATIVE DECLARATION CASE NO: DA 03-02 as it relates to Case Nos. C/Z 03-04, TT 31363 and PP/CUP 03-06 APPLICANT/PROJECT SPONSOR: Sares Regis Group c/o Greg Albert 18825 Bardeen Avenue Irvine, CA 92612 PROJECT DESCRIPTION/LOCATION: An agreement relating to the development and ongoing operation of a 320-unit apartment/condominium project on the north side of Gerald Ford Drive between Monterey Avenue and Portola Avenue, 73-240 Gerald Ford Drive. The Director of the Department of Community Development, City of Palm Desert, California, has found that the described project will not have a significant effect on the environment. A copy of the Initial Study has been attached to document the reasons in support of this finding. Mitigation measures, if any, included in the project to avoid; potentially significant effects, may also be found attached. PHILIP DRELL DATE DIRECTOR OF COMMUNITY DEVELOPMENT 4