HomeMy WebLinkAboutSinatra & Cook, LLC - Housing AgmtCITY OF PALM DESERT
STAFF REPORT
REQUEST: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF
PALM DESERT AND SINATRA AND COOK PROJECT, LLC
SUBMITTED BY: JANET MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: JUNE 14, 2007
CONTENTS: HOUSING AGREEMENT
MAP — CASE NO. C/Z 06-02 (ORD. NO 1122)
NEW SITE PLAN
PROPOSED RESIDENTIAL RENDERINGS
Recommendation:
By Minute Motion that the City Council:
1. Approve a Housing Agreement in accordance with the conditions of approval of
the Sinatra and Cook Project, LLC, also known as "The Vineyards", by
Resolution No. 06-128 by and between the City of Palm Desert and Sinatra and
Cook Project, LLC, substantially as to form; and
2. Authorize City Manager or his designee to finalize the agreement and execute all
necessary documents to facilitate the agreement.
Executive Summary:
Sinatra and Cook Project, LLC will be the developer of the apartments known as "The Vineyards",
previously approved by Resolution 06-128. The project required that the developer enter into an
affordable housing agreement with the City. The recommended agreement will satisfy such
requirement. The agreement required that 20% of the 260 rental units be restricted to moderate -
income households.
Discussion:
On September 14, 2006, the apartment project known as "The Vineyards" was approved. As part of
the project's approval, the developer is required to enter into a Housing Agreement in order to
effectuate the condition for an affordable housing requirement as part of Resolution No. 06-128,
Case Nos. PP 06-01 Amendment No. 1 and C/Z 06-02. Without this agreement in place, the
developer cannot obtain building permits.
G \rda\Jess,ca Gonzales\HOUSING AGREEMENTS\DEVELOPERS\VINEYARDS\STAFFRPRT-approval request - JUNE 14 2007.doc
Staff Report
Sinatra and Cook Project, LLC - Approval of a Housing Agreement
Page 2
June 14, 2007
The apartment project is owned by Sinatra and Cook Project, LLC, and Mr. Ryan Ogulnick, Owner of
Sinatra and Cook Project, LLC, understands that the conditions set forth in the approval of
Resolution 06-128 run with the land.
The Vineyards will include 260 total rental units. Fifty-two (52) of the rental units will be made
available to households of moderate income earning no more than 110% of the area median income
("AMI"), and will be comprised of 47 one -bedroom units and 9 two -bedroom units.
The Owner has also agreed that an additional 20% of the units will be subject to an option by the
City to subsidize rental of the units by low or moderate -income households. As such, the units will
be dispersed throughout the development, will remain affordable for 55 years or the useful life of the
project, and will transfer to any successors -in -interest in the real property. In keeping with the
Redevelopment Agency's continuing and long-range goals to review the city's affordable housing
needs, the Agency can assume the subsidy option from the City to buy down the units to low income
during the term of the Agreement.
The apartment project is being developed as part of a mixed -use high -density residential and
commercial neighborhood, and has convenient access to public transportation, schools, parks, and
commercial services. In addition, a number of amenities are being provided within the project for the
residents of the entire development.
Staff, therefore, recommends approval of the Housing Agreement in accordance with the
requirement of the affordable housing condition of approval of Resolution 06-128.
Submitted by:
JaAeM. Moore
Housing Authority Administrator
jmg
Approval:
Department Head:
Dave Yrigoy
Director of development/Housing
elopment Carlos L. Or ga, City Manager
CITY COUNCIL CTION:
APPROVED DENIED
RECEIVED OTHER
MEETING DATE (p • 14, CJ /
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ABSENT:]
G.\RDA\JESSICA GONZALES\HOUSING AGREEMENTS \DEVELOPERS\VINEYARDS\SAB S TA I N I\
VERIFIED BY: t?,OK frflc
Original on File wig City Clerk's Office
RECORDING REQUESTED BY:
WHEN RECORDED RETURN TO:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Janet Moore, Housing Administrator
[Space Above For Recorder's Use Only]
The undersigned declares that this Housing Agreement is exempt from Recording Fees
pursuant to California Government Code Section 27383.
HOUSING AGREEMENT
By and Between
THE CITY OF PALM DESERT
and
SINATRA AND COOK PROJECT, LLC
DATED AS OF JUNE 14, 2007
P6402-0001\965569v3.doc
TABLE OF CONTENTS
ARTICLE 1. DEFINITIONS AND INTERPRETATION .................................................2
1.1 Definitions...............................................................................................................2
1.2 Rules of Construction .............................................................................................3
ARTICLE 2. ONGOING PROJECT OBLIGATIONS ....................................................3
2.1 Allocation of Moderate Income Units......................................................................3
2.2 Residential Rental Property....................................................................................3
2.3 Moderate Income Households................................................................................3
2.4 Allowable Rent........................................................................................................5
2.5 Rent Increases .......................................................................................................5
2.6 Increased Income of Occupying Households .........................................................5
2.7 Lease Provisions ....................................................................................................5
2.8 Household Income Certification..............................................................................6
2.9 Security Deposits....................................................................................................6
2.10 Additional Information; Books and Records.........................................................6
2.11 Specific Enforcement of Affordability Restrictions................................................6
2.12 City Subsidy Option .............................................................................................6
2.13 Audit ....................................................................................................................7
2.14 Management Agent .............................................................................................7
2.15 Material Breach....................................................................................................7
2.16 Binding for Term ..................................................................................................7
ARTICLE 3. TERM AND RECORDATION...................................................................7
3.1 Term of Housing Agreement...................................................................................7
3.2 Agreement to Record..............................................................................................8
3.3 Early Termination of Restrictions............................................................................8
ARTICLE 4. DEFAULT; REMEDIES............................................................................8
4.1 An Event of Default.................................................................................................8
4.2 City's Option to Lease.............................................................................................9
4.3 Specific Performance..............................................................................................9
4.4 Action at Law; No Remedy Exclusive .....................................................................9
ARTICLE 5. GENERAL PROVISIONS ......................................................................10
5.1 Limitations on Recourse .......................................................................................10
5.2 Maintenance, Repair, Alterations..........................................................................10
5.3 Notice ...................................................................................................................10
5.4 Relationship of Parties..........................................................................................11
5.5 No Claims.............................................................................................................11
5.6 Conflict of Interests...............................................................................................11
5.7 Non-Liability of City Officials, Employees and Agents ..........................................11
5.8 Unavailable Delay; Extension of Time of Performance.........................................12
5.9 Title of Parts and Sections....................................................................................12
5.10 Hold Harmless...................................................................................................12
5.11 Rights and Remedies Cumulative......................................................................12
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5.12 Applicable Law...................................................................................................12
5.13 Severability........................................................................................................13
5.14 Legal Actions.....................................................................................................13
5.15 Binding Upon Successors..................................................................................13
5.16 Time of the Essence..........................................................................................13
5.17 Approval by the City...........................................................................................13
5.18 Complete Understanding of the Parties.............................................................13
5.19 Burden and Benefit............................................................................................14
5.20 Counterparts......................................................................................................14
P6402-0001\965569v3.doc i i
HOUSING AGREEMENT
THIS HOUSING AGREEMENT (the "Housing AgreemenY') is dated for reference
purposes as of June 14, 2007, and is by and between the CITY OF PALM DESERT, a
municipal corporation organized and existing under the laws of the State of California
(the "City") and SINATRA AND COOK PROJECT, LLC, a California limited liability
company (the "Owner").
RECITALS
This Housing 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 a change of zone from PR-5
to PC-3 (regional commercial) and from PR-5 to PR-17 (planned residential, 17 units
per acre), a precise plan of design including a height and parking exception, and a
Negative Declaration of Environmental Impact to allow construction of 260 apartments
units and a 38,000 square foot neighborhood commercial center on 19.6 +/- acres.
B. City has approved an increase in the permitted maximum density from 5
dwelling units per acre to a maximum of 17 dwelling units per acre on the condition that
the Owner enter into this Housing Agreement with respect to that portion of the Property
upon which a 260 unit apartment complex (the "ProjecY') shall be constructed and as
described in Exhibit "6" attached hereto (the "Apartment Site").
C. As a condition of said approval (Resolution No. 06-128, Case Nos. PP 06-
01 Amendment No. 1 and C/Z 06-02), City has required, and the Owner has agreed,
that (i) 20% of the units to be constructed on the Apartment Site shall be set aside and
continuously made available for rent at affordable rental rates to persons and families of
moderate income earning no more than 110% of AMI and, (ii) shall make available an
additional 20% of the units subject to the City's option to subsidize rental of the units by
Low or Moderate Income Households (as defined in Section 1.1).
D. The purpose of this Housing Agreement is to create such conditions,
covenants, restrictions, liens, servitudes, and charges in favor of the City upon and
subject to which the Project shall be occupied, leased and rented. The provisions of
this Housing Agreement shall run with title to each and every portion of the Apartment
Site and the Project and shall inure to and pass with each and every portion thereof and
shall apply to and bind any successors-in-interest of Owner.
NOW, THEREFORE, in consideration of the mutual covenants and undertakings
set forth herein and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the City and the Owner hereby agree as follows:
P6402-0001\965569v3.doc 1
ARTICLE 1. DEFINITIONS AND INTERPRETATION
1.1 Definitions. Capitalized terms used herein shall have the following meanings
unless the context in which they are used clearly requires otherwise.
"AMI" shall mean the area median income for Riverside County as published by
the United States Department of Housing and Urban Development, or if such agency
shall cease to publish such an index, then any comparable index published by any other
federal or state agency which is approved by the Agency. The AMI shall be adjusted for
family size in accordance with the state regulations adopted pursuant to California
Health and Safety Code Section 50052.5.
"City" shall mean the City of Palm Desert.
"County" sha(I mean the County of Riverside, California.
"Affordable Housing CosY' shall mean a housing cost which is calculated
pursuant to Califomia Health and Safety Code Section 50052.5, as amended from time
to time, and for the purposes hereof, the term "housing cost" shall have the meaning
ascribed to such term in Title 25 of the California Code of Regulations Section 6920, as
such regulations may be amended from time to time, and the term "Gross Income" shall
have the meaning ascribed to such term in Title 25 of the California Code of
Regulations Section 6914, as such regulations may be amended from time to time.
"Low Income Households" shall mean persons and families whose income does
not exceed the qualifying limits for lower income households set forth in California
Health and Safety Code Section 50079.5 and Title 25 of the California Code of
Regulations, Section 6910, as such statute and regulations may be amended from time
to time.
"Moderate Income Households" shall mean persons and families whose income
does not exceed the qualifying limits for persons and families of low or moderate
income set forth in California Health and Safety Code Section 50093 and Title 25 of the
California Code of Regulations, Section 6910, as such statute and regulations may be
amended from time to time.
"Moderate Income UniY' shall mean each of the apartment dwelling units in the
Project designated for occupancy by Moderate Income Households pursuant to
applicable provisions of this Housing Agreement.
"ProjecY' is the approximately 260 unit multi-family residential apartment
complex described in the Recitals hereto, together with structures, improvements,
equipment, furniture, fixtures, and other personal property owned by the Owner,
constructed upon the Apartment Site and located on or used in connection with all such
improvements and all functionally related ancillary facilities.
"Subsidy Option Units" shall mean the units for which the City provides a rental
subsidy pursuant to section 2.12.
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1.2 Rules of Construction.
1.2.1 The singular form of any word used herein, including the terms
defined herein shall include the plural and vice versa. The use herein of a word of any
gender shall include correlative words of all genders.
1.2.2 Unless otherwise specified, references to Articles, Sections, and
other subdivisions of this Housing Agreement are to the designated Articles, Sections,
and other subdivisions of this Housing Agreement as originally executed. The words
"hereof," "herein," "hereunder," and words of similar import shall refer to this Housing
Agreement as a whole.
1.2.3 All of the terms and provisions hereof shall be construed to
effectuate the purposes set forth in this Housing Agreement and to sustain the validity
hereof.
1.2.4 Headings or titles of the several articles and sections hereof and
the table of contents appended to copies hereof shall be solely for convenience of
reference and shall not affect the meaning, construction, or effect of the provisions
hereof.
ARTICLE 2. ONGOING PROJECT OBLIGATIONS
2.1 Allocation of Moderate Income Units. During the term of this Housing
Agreement, fifty-finro (52) of the apartment units constructed in the Project shall be
allocated to Moderate Income Households (which apartment units shall be collectively
referred to herein as the "Moderate Income Units"), and of the Moderate Income Units,
"A" units will include thirteen (13) one-bedroom units and five (5) two-bedroom units and
"B" units will include thirty-four (34) one-bedroom units. At no time during the term of
this Agreement will the Moderate Income Units be concentrated into one area of the
project and to the extent possible will be dispersed evenly throughout the development.
2.2 Residential Rental Propertv. Owner represents, warrants, and covenants to
operate the Project as residential rental property. Moderate Income Units in the Project
will be held and used for the purpose of providing residential living, and Owner shall
own, manage and operate, or cause the management and operation of, the Project to
provide such affordable rental housing. Owner will not knowingly permit any of the
Moderate Income Units in the Project to be used on a transient basis and will not rent
any such apartment units for a period of less than thirty (30) consecutive days.
2.3 Moderate Income Households.
2.3.1 Income Qualification. Moderate Income Units (as defined in
Section 2.1) will be exclusively occupied or available for occupancy by Moderate
Income Households on a continuous basis. Moderate Income Households are only
those who qualify to occupy Moderate Income Units pursuant to the income guidelines
and limitations established by this Housing Agreement. Owner will advise the City in
writing on an annual or other periodic basis as reasonably requested by the City of
P6402-0001\965569v3.doc 3
occupancy of Moderate Income Units by Moderate Income Households by delivery to
the City of a certificate in a form specified by the City. Owner will also obtain and
maintain on file Certifications of Household Eiigibility in the form attached hereto as
Exhibit "C" and incorporated herein by reference for each Moderate Income
Households, and shall provide copies of the same to the City at such times as the City
may, from time to time, require. Owner shall make a good faith effort to verify that the
income provided by an applicant in an income certification is accurate by taking any one
or more of the following steps as part of the verification process:
(i) Obtain a pay stub for the most recent pay period;
(ii) Obtain an income tax return for the most recent tax year;
(iii) Obtain an income verification form from the applicant's
current employer;
(iv) Obtain an income verification form from the Social Security
Administration and/or the State Department of Social Services, or its equivalent, if the
applicant receives assistance from either of those agencies;
(v) If the applicant is unemployed and has no tax return, obtain
another form of independent verification; or
(vi) Obtain such other documentation as may be reasonably
acceptable to the City to verify income.
Owner will prepare and submit to the City, at such periodic frequency as it might
require, a Certificate of Continuing Compliance in the form attached hereto as Exhibit
"D" and incorporated herein by reference and stating: (i) the percentage of dwelling
units in the Project which were occupied by Moderate Income Households or held
vacant and available for occupancy by Moderate Income Households during such
period; and (ii) that to the knowledge of the Owner, no default has occurred under the
provisions of this Housing Agreement.
Owner will also prepare and submit to the City each year for the preceding
calendar year a report in form and substance reasonably satisfactory to the City,
summarizing the vacancy rate of the Moderate Income Units and of the Project on a
month-to-month or other periodic basis for such calendar year.
2.3.2 Participation in Federal Proqrams. Owner will accept as tenants of
the Project, on the same basis as all other prospective tenants, Moderate Income
Households who are recipients of Federal certificates and/or vouchers for rent subsidies
pursuant to an existing program under Section 8 of the United States Housing Act of
1937 or its successor, and shall not apply selection criteria to Section 8 certificate
holders that are more burdensome than the criteria applied to all other prospective
tenants. The provisions of rental to Moderate Income Households set forth in this
Article 2 shall apply during the entire term of this Housing Agreement.
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2.3.3 Citv Riqht to Subsidize Low Income Households. Owner further
agrees to rent an available Moderate Income Unit to Low Income Households upon City
request, provided that the City agrees to provide a subsidy equal to the difference
between the allowable rent that can be charged under California Health and Safety
Code Section 50053(b)(1), (2) or (3) and California Health and Safety Code Section
50053 (b)(4).
2.4 Allowable Rent. A monthly rent shall be charged (taking into account a
reasonable allowance for utilities) to the occupants of Moderate Income Units which
shall be no greater than rents calculated in compliance with applicable provisions of
California Health and Safety Code Section 50053(b) and Title 25 of the California Code
of Regulations, Section 6910, et seq., as amended from time to time (including any
optional requirements set forth therein if so elected by the Executive Director of the
Agency in his sole and absolute discretion).
2.5 Rent Increases. Except as provided in Section 2.7 below, rents for Moderate
Income Units may be increased only once per year. The rents charged following such
an increase, or upon a vacancy and new occupancy by a Moderate Income
Households, shall not exceed the allowable rent calculated in compliance with 2.4
above. Owner shall give proper written notice to tenants of all rent increases, and upon
written request provide City with reasonable detail concerning the amount of and
rational for such rent increases.
2.6 Increased Income of Occuqvinq Households.
2.6.1 Annually, on the anniversary date of occupancy of a Moderate
Income Unit by a qualifying Moderate Income Households, Owner shall re-certify the
financial qualifications of the person or persons residing within the Moderate Income
Unit.
2.6.2 If, upon recertification pursuant to Section 2.6.1, the Owner
determines that the household income of the occupants of a Moderate Income Unit has
increased above 120% of the Area Median Income adjusted for family size, then such
Moderate Income Unit may be redesignated as a market unit provided there is a unit of
equal size and composition to designate as a Moderate Income Unit and treated by the
Owner as a Moderate Income Unit available for occupancy by a Moderate Income
Household, and the monthly rent, including a Reasonable Utility Allowance may only be
increased by the percentage change in AMI in effect at the time of the previous lease
term, or that which was in effect twelve (12) calendar months prior to lease renewal,
whichever is longer, to the AMI in effect for the new or current lease term and only upon
proper written notice to the occupants thereof.
2.7 Lease Provisions. The form of lease or rental agreement used by the Owner for
the lease or rental of Moderate Income Units shall be that which is reasonable and
customary in residential leasing. Each lease or rental agreement for a Moderate
Income Unit shall provide that the tenants of such Moderate Income Unit shall also be
subject to annual certification or recertification of income and subject to rental increases
P6402-0001\965569v3.doc 5
in accordance with Section 2.6. The Owner shall include provisions in leases or rental
agreements for all Moderate Income Units which authorize the Owner to immediately
terminate the tenancy of any Moderate Income Households occupying a Moderate
Income Unit where one or more of such Moderate Income Households have
misrepresented any fact material to the qualification of such an individual or family as a
Moderate Income Households and/or for qualification for occupancy of a Moderate
Income Unit. Each lease or rental agreement shall also provide that, the Owner will not
discriminate on the basis of race, creed, color, sex, national origin, ancestry, religion,
marital status, disability or receipt of public assistance or housing assistance in
connection with a rental of a Moderate Income Unit in the Project, or in connection with
the employment or application for employment of persons for operation and
management of the Project, and all contracts, applications and leases entered into for
such purposes shall contain similar nondiscriminatory clauses to such effect.
2.8 Household Income Certification. The Owner will obtain, complete, and maintain
on file Certificates of Household Eligibility from each Moderate Income Households as
required by the provisions of Section 2.3 above. Copies of such certificates shall be
made available for review by the City, upon request and upon reasonable notice.
2.9 Securitv Deposits. The Owner shall not require security deposits on Moderate
Income Units in excess of one-month's rent for such Moderate Income Unit.
2.10 Additional Information; Books and Records. Owner shall provide any additional
information concerning the Moderate Income Units reasonably requested by the City.
The City shall have the right to examine and make copies of all books, records or other
documents maintained by Owner or by any of Owner's agents which pertain to any
Moderate Income Unit.
2.11 Specific Enforcement of Affordabilitv Restrictions. Owner hereby agrees that
specific enforcement of Owner's agreement to comply with the allowable rent and
occupancy restrictions of this Article 2 is one of the reasons for the general plan
amendment, conditional use permit and density bonus granted by the City and
described in the Recitals hereof, and that, in the event of Owner's breach of such
requirements, potential monetary damages to the City, as well as to prospective
Moderate Income Households, would be difficult, if not impossible, to evaluate and
quantify. Therefore, in addition to any other relief to which the City may be entitled as a
consequence of the breach hereof, Owner agrees to the imposition of the remedy of
specific performance against it in the case of any event of default by Owner in
complying with the allowable rent, occupancy restrictions or any other provision of this
Article 2.
2.12 Citv Subsidv Oqtion. In addition to providing the Moderate Income Units in
accordance with Section 2.1 above, Owner hereby grants the City an option to require
Owner to rent up to fifty-two (52) additional units (the "Subsidy Option Units") to Low or
Moderate Income Households if the City provides a rent subsidy that enables Owner to
receive market rate rents for the Subsidy Option Units. The market rate rents shall be
calculated reasonably by the City with reference to a regional market survey of rents.
P6402-0001\965569v3.doc 6
The amount of the City's subsidy for each Subsidy Option Unit shall be the difference
between the amount that the tenant is required to pay under California Health and
Safety Code Section 50053(b) for the income category applicable of the tenant and the
market rate rent. If the City designates any Subsidy Option Units, the Owner and City
shall enter into a housing agreement implementing this Section 2.12 within sixty (60)
days of City's designation of the Subsidy Option Units.
2.13 Audit. The City shall have the right to perform an audit of the Project to
determine compliance with the provisions of this Housing Agreement. Such audit shall
not be undertaken more often than once each calendar year. All costs and expenses
associated with the audit shall be paid by the Owner.
2.14 Manaqement Aaent. Owner and/or the management agent (if not the Owner)
shall operate the Project in a manner that will provide decent, safe and sanitary
residential facilities to the occupants thereof, and will comply with provisions of this
Housing Agreement. Upon the written request of the City, the Owner shall cooperate
with the City in the periodic review of the management practices and financial status of
the Moderate Income Units in the Project. The purpose of each periodic review will be
to enable the City to determine if the Moderate Income Units within the Project are
being operated and managed in accordance with the requirements and standards of this
Housing Agreement. Results of such City review shall be provided to Owner.
2.15 Material Breach. Owner agrees to provide in the leases or occupancy
agreements for Moderate Income Units within the Project a provision whereby each
occupant will agree that it shall be a substantial and material breach of such lease or
occupancy agreement which will permit Owner to immediately terminate tenancy
thereunder if the person or persons occupying such Moderate Income Unit have
misrepresented any fact material to the qualification of such persons or any other
person to occupy a Moderate Income Unit.
2.16 Bindinq for Term. It is intended by the parties hereto that the provisions of this
Housing Agreement shall apply to the Project throughout the entire term hereof, as
established in Section 3.1 below. The parties agree that in the event of a default by
Owner which is not remedied, within any time periods for such remedy or cure which
are specified herein, the City shall be entitled to all relief to which it would be entitled by
virtue of a default under any of the provisions hereof.
ARTICLE 3. TERM AND RECORDATION
3.1 Term of Housinq Aqreement. This Housing Agreement shall remain in full force
and effect for a period of fifty-five (55) years from the date on which the City issues the
certificate of occupancy for the Project, unless the Owner and the City agree, in writing,
to terminate this Housing Agreement. The parties intend that the provisions and effect
of this Housing Agreement, and specifically of Article 2 hereof, shall remain in full force
and effect for the entire term hereof.
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3.2 Aqreement to Record. Owner represents, warrants, and covenants that it will
cause this Housing Agreement to be recorded in the real property records of Riverside
County. The Owner shall pay all fees and charges in connection with any such
recordation.
3.3 Early Termination of Restrictions. Notwithstanding the generality of the foregoing
provisions of this Article 3 or any other provisions hereof, this Housing Agreement and
all of the terms and restrictions contained herein shall terminate and be of no further
force and effect in the event of either (i) foreclosure or delivery of a deed in lieu of
foreclosure whereby a third party lender with a lien senior to this Housing Agreement
becomes the owner of the Project, or (ii) involuntary noncompliance as a result of
unforeseen events such as fire or act of God which leaves the entire complex
uninhabitable, or a change in a federal or state law or an action of a federal City or of
the State after the date of recordation hereof that prevents the City or any other public
City from enforcing the provisions of this Housing Agreement, or a condemnation or a
similar event. Upon termination of this Housing Agreement, the parties hereto or their
successors, as applicable, agree to execute, deliver and record appropriate instruments
of release and discharge of the terms hereof; provided, however, that the execution and
delivery of such instrument shall not be necessary or a prerequisite to termination of this
Housing Agreement in accordance with its terms.
ARTICLE 4. DEFAULT; REMEDIES
4.1 An Event of Default. Each of the following shall constitute an "Event of DefaulY'
by the Owner of this Housing Agreement:
4.1.1 Failure by the Owner to duly perform, comply with and observe any
of the conditions, terms, or covenants of any agreement with the City concerning the
Project, or of this Housing Agreement, if such failure remains uncured thirty (30) days
after written notice of such failure from the City to the Owner in the manner provided
herein or, with respect to a default that cannot be cured within thirty (30) days, if the
Owner fails to commence such cure within such thirty (30) day period or thereafter fails
to diligently and continuously proceed with such cure to completion. However, if a
different period or notice requirement is specified under any other section of this
Housing Agreement, then the specific provision shall control.
4.1.2 Any representation or warranty contained in this Housing
Agreement or in any application, financial statement, certificate, or report submitted by
Owner to the City proves to have been incorrect in any material respect when made.
4.1.3 A court having jurisdiction shall have made or rendered a decree or
order (i) adjudging Owner to be bankrupt or insolvent; (ii) approving as properly filed a
petition seeking reorganization of Owner or seeking any arrangement on behalf of the
Owner under the bankruptcy law or any other applicable debtor's relief law or statute of
the United States or of any state or other jurisdiction; (iii) appointing a receiver, trustee,
liquidator, or assignee of the Owner in bankruptcy or insolvency or for any of its
properties; or (iv) directing the winding up or liquidation of the Owner, providing,
P6402-0001\965569v3.doc 8
however, that any such decree or order described in any of the foregoing subsections
shall have continued unstayed or undischarged for a period of ninety (9Q) days.
4.1.4 The Owner shall have assigned its assets for the benefit of its
creditors or suffered a sequestration or attachment or execution on any substantial part
of its property, unless the property so assigned, sequestered, attached, or executed
upon shall have been returned or released within ninety (90) days after such event
(unless a lesser time period is permitted for cure hereunder) or prior to sale pursuant to
such sequestration, attachment, or execution. If the Owner is diligently working to
obtain a return or release of the property and the City's interests hereunder are not
imminently threatened in its reasonable business judgment, then the City shall not
declare a default under this subsection.
4.1.5 The Owner shall have voluntarily suspended its business or
dissolved.
4.1.6 The condemnation, seizure, or appropriation of all or, in the opinion
of the City a substantial part of the Project, except for condemnation initiated by the
City.
4.1.7 There should occur any default declared by any lender under any
loan document or deed of trust relating to any loan made in connection with the Project,
which loan is secured by a deed of trust or other instrument senior to this Housing
Agreement.
4.2 Citv's Option to Lease. Upon the occurrence of an Event of Default, and to
cause the Project to meet the requirements of this Housing Agreement, Owner hereby
grants to the City the option to lease up to all of the apartment units in the Project as
necessary to achieve compliance with the provisions of Article 2 of this Housing
Agreement, for the purpose of subleasing such apartment units in accordance with the
requirements of this Housing Agreement. Any net rental paid under any such sublease
shall be paid to the City without obligation to pay any such rent to Owner during the
pendency of Owner's default.
4.3 Specific Performance. The City shall have the right to mandamus or other suit,
action or proceeding at law or in equity to require the Owner to perform its obligations
and covenants under this Housing Agreement or to enjoin acts or things which may be
unlawful or in violation of the provisions hereof.
4.4 Action at Law; No Remedv Exclusive. The City may take whatever action at law
or in equity as may be necessary or desirable to enforce performance and observance
of any obligation, agreement or covenant of the Owner under this Housing Agreement.
No remedy herein conferred upon or reserved by the City is intended to be exclusive of
any other available remedy or remedies, but each and every such remedy shall be
cumulative and shall be in addition to every other remedy given under this Housing
Agreement or now or hereafter existing at law, in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such
P6402-0001\965569v3.doc 9
right or power or shall be construed to be a waiver of such right or power, but any such
right or power may be exercised from time to time and as often as City may deem
expedient. In order to entitle the City to exercise any remedy reserved to it in this
Housing Agreement, it shall not be necessary to give any notice, other than such notice
as may be herein expressly required or required by law to be given.
ARTICLE 5. GENERAL PROVISIONS
5.1 Limitations on Recourse. Notwithstanding anything to the contrary contained in
this Housing Agreement, except in the event of fraud, waste, illegal acts or gross
negligence, or with regard to any indemnity obligations imposed upon Owner under the
terms of this Housing Agreement, (i) Owner shall not have, and no officer or director of
Owner (each, an "Owner Affiliate") shall have any direct, indirect or derivative personal
liability for the obligations of Owner under this Housing Agreement, and (ii) the City shall
not exercise any rights or institute any action against the Owner or any Owner Affiliate
directly, indirectly or derivatively for the payment of any sum of money that is or may
become payable hereunder.
5.2 Maintenance, Repair, Alterations. Owner shall maintain and preserve the Project
in good condition and repair and in a prudent and businesslike manner. Owner shall
comply with all laws, ordinances, rules, regulations, covenants, conditions, restrictions,
and orders of any governmental authority now or hereafter affecting the conduct or
operation of the Project and of Owner's business on the Project or any part thereof or
requiring any alteration or improvement to be made thereon. Owner shall not commit,
suffer, or permit any act to be done in, upon, or to the Project or any part thereof in
violation of any such laws, ordinances, rules, regulations, or orders. Owner hereby
agrees that the City may conduct from time to time through representatives, upon
reasonable notice, on-site inspections and observation of: (i) the maintenance and
repair of the Project, including a review of all maintenance and repair programs and
practices and all reports and records pertaining thereto, including records of
expenditures relating thereto; and (ii) such other facilities, practices, and records of
Owner relating to the Moderate Income Units of the Project as the City reasonably
deems to be necessary or appropriate in order to monitor Owner's compliance with the
provisions of this Housing Agreement.
5.3 Notice. All notices (other than telephone notices), certificates or other
communications (other than telephone communications) required or permitted
hereunder shall be sufficiently given and should be deemed given when personally
delivered, when sent by telegram, or when sent by facsimile (if confirmed by sending a
copy of such transmission by mail the same calendar day), or forty-eight (48) hours
following mailing by registered or certified mail, postage prepaid, or twenty-four hours
following transmission of such notice by express mail, Federal Express or similar
commercial carrier, addressed as follows:
P6402-00011965569v3.doc 10
If to the City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Janet Moore, Housing Administrator
Fax: (760) 341-6372
If to the Owner:
Sinatra and Cook, LLC
828 North Ogden Drive
Los Angeles, CA 90046
Attn: Ryan Ogulnick
Fax: (323) 651-3118
5.4 Relationship of Parties. Nothing contained in this Housing Agreement shall be
interpreted or understood by any of the parties, or by any third persons, as creating the
relationship of employer and employee, principal and agent, limited or general
partnership, or joint venture between the City and the Owner or the Owner's agents,
employees or contractors, and the Owner shall at all times be deemed an independent
contractor and shall be wholly responsible for the manner in which it or its agents, or
both, perform the services required of it by the terms of this Housing Agreement for the
operation of the Project. The Owner has and hereby retains the right to exercise full
control of employment, direction, compensation and discharge of all persons assisting in
the performance of services hereunder. In regards to the on-site operation of the
Project, the Owner shall be solely responsible for all matters relating to payment of its
employees, including compliance with Social Security, withholding and all other laws
and reguiations governing such matters. The Owner agrees to be solely responsible for
its own acts and those of its agents and employees.
5.5 No Claims. Nothing contained in this Housing Agreement shall create or justify
any claim against the City by any person the Owner may have employed or with whom
the Owner may have contracted relative to the purchase of materials, supplies or
equipment, or the furnishing or the performance of any work or services with respect to
the operation of the Project.
5.6 Conflict of Interests. No member, official or employee of the City shall make any
decision relating to this Housing Agreement which affects his or her personal interests
or the interests of any corporation, partnership or association in which he or she is
directly or indirectly interested. No officer or employee of the Owner shall acquire any
interest in conflict with or inimical to the interests of the City.
5.7 Non-Liabilitv of Citv Officials, Emplovees and Aaents. No member, official,
employee or agent of the City shall be personally liable to the Owner, or any successor
in interest, in the event of any default or breach by the City or for any amount which may
P6402-0001\965569v3.doc 11
become due to the Owner or successor or on any obligation under the terms of this
Housing Agreement.
5.8 Unavailable Delav; Extension of Time of Performance. In addition to specific
provisions of this Housing Agreement, performance by either party hereunder shall not
be deemed to be in default where it is due to an "Unavoidable Delay." "Unavoidable
Delay" means a delay due to the elements (including unseasonable weather), fire,
earthquakes or other acts of God, strikes, labor disputes, lockouts, shortages of
construction materials experienced generally in the construction industry in the local
area, acts of the public enemy, riots, insurrections or governmental regulation of the
sale or transportation of materials, supply or labor; provided, however, that to the extent
a delay is caused by any other reason that Owner reasonably believes is beyond its
control, Owner may request, on a case-by-case basis, that City excuse any such delay
as an Unavoidable Delay and City shall make its determination as to whether such
delay constitutes an Unavoidable Delay using its reasonable judgment.
5.9 Title of Parts and Sections. Any titles of the parts, sections or subsections of this
Housing Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any part of its provision.
5.10 Hold Harmless. Owner shall defend the City and the Agency (as defined in
section 5.17.3 below) (with counsel reasonably satisfactory to the City or Agency, as the
case may be) against any claims or litigation of any nature whatsoever brought by third
parties and directly or indirectly arising from the Owner's ownership or operation of the
Project, or the Owner's performance of its obligations under this Housing Agreement,
and in the event of settlement, compromise or judgment hold the City and Agency free
and harmless therefrom.
5.11 Riahts and Remedies Cumulative. Except as otherwise expressly stated in this
Housing Agreement, the rights and remedies of the parties are cumulative, and the
exercise or failure to exercise one or more of such rights or remedies by either party
shall not preclude the exercise by it, at the same time or different times, of any right or
remedy for the same default or any other default by the other party. No waiver of any
default or breach by the Owner hereunder shall be implied from any omission by the
City to take action on account of such default if such default persists or is repeated, and
no express waiver shall affect any default other than the default specified in the waiver,
and such wavier shall be operative only for the time and to the extent therein stated.
Waivers of any covenant, term, or condition contained herein shall not be construed as
a waiver of any subsequent breach of the same covenant, term or condition. The
consent or approval by the City to or of any act by the Owner requiring further consent
or approval shall not be deemed to waive or render unnecessary the consent or
approval to or of any subsequent similar act. The exercise of any right, power, or
remedy shall in no event constitute a cure or a waiver of any default under this Housing
Agreement, nor shall it invalidate any act done pursuant to notice of default, or prejudice
the City in the exercise of any right, power, or remedy hereunder or under any
agreements ancillary or related hereto.
P6402-00011965569v3.doc 12
5.12 Applicable Law. This Housing Agreement shall be interpreted under and
pursuant to the laws of the State of California.
5.13 Severabilitv. If any term, provision, covenant or condition of this Housing
Agreement is held in a final disposition by a court of competent jurisdiction to be invalid,
void or unenforceable, the remaining provisions shall continue in full force and effect
unless the rights and obligations of the parties have been materially altered or abridged
by such invalidation, voiding or unenforceability.
5.14 Leaal Actions. In the event any legal action is commenced to interpret or to
enforce the terms of this Housing Agreement or to collect damages as a result of any
breach thereof, the party prevailing in any such action shall be entitled to recover
against the party not prevailing all reasonable attorneys' fees and costs incurred in such
action (including all legal fees incurred in any appeal or in any action to enforce any
resulting judgment).
5.15 Bindinq Upon Successors. This Housing Agreement shall be binding upon and
inure to the benefit of the permitted heirs, administrators, executors, successors in
interest and assigns of each of the parties. Any reference in this Housing Agreement to
a specifically named party shall be deemed to apply to any successor, heir,
administrator, executor or assign of such party who has acquired an interest in
compliance with the terms hereof or under law.
5.16 Time of the Essence. In all matters under this Housing Agreement, time is of the
essence.
5.17 Approval bv the Citv.
5.17.1 Any approvals required under this Housing Agreement shall be
made by the City Manager or his or her designee, and shall not be unreasonably
withheld or made, except where it is specifically provided that another standard applies,
in which case the specified standard shall apply.
5.17.2 Except as otherwise provided in this Housing Agreement, whenever
this Housing Agreement calls for approval by the City of a proposed document to be
submitted by the Owner, the approving entity shall notify the Owner of approval or
disapproval within ten (10) business days after receipt of the proposed document, and
failure to respond within said ten (10) business day period shall not disapprove a
proposed document without giving specific reasons for its disapproval.
5.17.3 The City shali have the right, in its sole discretion, to delegate its
rights and or obligations under this Agreement, in whole or in part, to the
Redevelopment Agency of the City of Palm Desert, a public body, corporate and politic
(the "Agency").
5.18 Complete Understandinq of the Parties. This Housing Agreement may be
executed in multiple originals, each of which shall be deemed to be an original. This
P6402-0001\965569v3.doc 13
Housing Agreement and the attached Exhibits constitute the entire understanding and
agreement of the parties with respect to the matters described herein.
5.19 Burden and Benefit. The City and the Owner do hereby declare their
understanding and intent that the burden of the covenants set forth herein touch and
concern the Apartment Site and the Project, in that Owner's legal interest in the Project
is rendered less valuable thereby. The City and the Owner hereby declare their
understanding and intent that the covenants, reservations and restrictions set forth
herein directly benefit the Apartment Site and the Project (i) by enhancing and
increasing the enjoyment and use of the Project by certain Moderate Income
Households, (ii) by making possible the obtaining of advantageous financing for the
Apartment Site and the Project, and (iii) by furthering the public purposes advanced by
the City.
5.20 Counterparts. This Housing Agreement may be executed in two or more
counterparts, each of which shall be an original, but all of which shall constitute one and
the same instrument.
WHEREFORE, the undersigned has executed this Housing Agreement as of the
date first-above written.
OWNER:
SINATRA AND COOK PROJECT, LLC,
a California limited Liability Company
By:
Name: Rvan Oqulnick
Its: Owner
CITY:
CITY OF PALM DESERT,
A municipal corporation
By:
Name:
Its:
P6402-0001\965569v3.doc 14
STATE OF CALIFORNIA )
) ss
COUNTY OF )
On _, , before me,
, a Notary Public in and for the State of
California, personally appeared
, personally known to me (or proved to me on
the basis of satisfactory evidence) to be the person whose name is subscribed to the within
instrument and acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of
which the person acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public in and for the State of California
(SEAL)
STATE OF CALIFORNIA )
) ss
COUNTY OF )
C?n _, , before me,
, a Notary Public in and for the State of
California, personally appeared
, personally known to me (or proved to me on
the basis of satisfactory evidence)to be the person whose name is subscribed to the within
instrument and acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument, the person, or the entity upon behalf of
which the person acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public in and for the State of California
(SEAL)
P6402-0001\965589v3.doc 15
EXHIBIT A
[Legal description of the Property]
That certain real property located in the County of Riverside, State of California, more
particularly described as follows:
PARCEL 16 OF PARCEL MAP NO. 31730, AS SHOWN BY MAP ON FILE IN BOOK
211 PAGES 63 TO 75, OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY,
CALIFORNIA.
APN: 653-400-078
P6402-0001\965569v3.doc Exhibit A-1
EXHIBIT B
[Legal description of the Apartment Site]
That certain real property located in the County of Riverside, State of California, more
particularly described as foHows:
PARCEL 16 OF PARCEL MAP NO. 31730, AS SHOWN BY MAP ON FILE IN BOOK
211 PAGES 63 TO 75, OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY,
CALIFORNIA.
APN: 653-400-078
P6402-OOOi\965569v3.doc EXhibit B-1
EXHIBIT C
HOUSEHOLD INCOME CERTIFICATION
[ATTACHED]
P6402-0001\965569v3.doc Exhibit C-1
TENANT INCOME CERTIFICAT{ON
Effective Date:
Move In Date:
O tnitial Certification ❑ Recertification ❑ Other {n�r°"�w�
Property name:
Address: Unit No. # Bedrooms:
Pursuant to a Housing Agreement with the Ciry of Palm Qesert,Palm Desert Redevelopment Agency,or the Housing Authority, Program Eligibility and
AffordabifityverificaGons for Lowand Moderate Income Households shall be pe�formed as required by TiBe 25 subjeclto eligibilfty veriFlcation procedures
and requirements described therei�,and as amended from 6me to tima.The following ouUines how annual income Is calculated to determine tenant
income eligibility,which is required prior to the tenant residing in an aHordable housing unit and every year thereafter for lfie oompliance period.
The following questions will assist you in compleUng the TENANT INCOME CERTIFICATION.When answering the questions answer"Yes"if any of the
information requested or income source pertalns to any lenant,co-tenant,or adult individual member of the household(individuals 18 years and ofder}
during the 12 months following the date of the certification or recertification.
YES NO INCOME INFORAAATION MONTHLY GROSS INCOME
(aJl sou�ces are to be dlsclosed below unless otherwlse excluded By
Tit/e 25 Section)
❑ O I/we am seif employed.(List nature of self employment} (use net income from business)
$
❑ ❑ I/we have a job and receive wages, salary,ove�tfine pay,commissions,
fees,tips,bonuses,and/or other compensation:List the businesses and/or
companies that pay you:
Name of Employer; (use rq oss income;amount
before any pay deductions)
�) $
TOTAL INCOME(BOX A) $
❑ ❑ I/we receive periodic social security payments. $
O ❑ Uwe recelve Supplemental Security Income(SSI). $
TOTAL INCOME(BOX B) $
❑ ❑ I/we receive cash contributions of gifts'including rent or utiliry payments,on
an ongoing basis from persons not living with me/us. $
O ❑ I/we receive Public Assistance Income $
Other:
Pleasa list
TOTAL INCOME{BOX C) $
O O Uwe receive unemployment benefits. $
❑ L I/we receive Veteran's Administration.GI Bill,or National GuardlMilitary
benefits�ncome. $
LI G The household receives uneamed income from family members age 17 or
undar(example:Social Security,foster care,etc.) $
❑ ❑ I/we recelve periodlc dfsability or death benefits other than Social Security. 5
O ❑ I/we am entitled to receive child support payments,but am not currenUy
receiving payments.
❑ G Ifwe am curcently receiving child support payments.
If yes,from how many pe�sons do you receive support? $
❑ CJ I/we receive alimony/spousal support payments $
❑ G I/we receive pe�iodic payments from trusts,annuities,inheritance,
retirement funds or pensions,insurance Policies,worker's compensation
and severance,interest and divide�ds,or lottery winnings.
If yes,list sources: $
1)
❑ CJ I/we receive income from rental,real or personal property. $
TENANT INCOME CERTIFICATION
PAGE 2 OF 3
LJ ❑ Any other income? Describe source: $
TOTA!INCOME(BOX D) $
YES NO ASSET INFORMATION CASH VALUE
O � Uwe have a checking account
If yes, list bank
$
1}
Ci � Ilwe have a savings account
tf yes,Iist bank
1) $
U 'U I/we have a revocable trust
If yes,list bank
1) $
U C Ifwe own real estate:
If yes,provide description
$
❑ G I/we own stocks,bonds,or Treasury Bills
If yes,8st sources/bank names
1) $
❑ D I/we have Certificates of Deposit(CD)or Money Market Account
If yes,list sources/bank names
1) $
C �l Uwe have an IRA/Lump Sum Pension/Keogh AccounU401 K.
If yes,list bank
1) $
O ❑ Ilwe have a whole life insurance policy.
If yes,how many policies $
J � I/we have disposed of assets(i.e.gave away moneylassets)for less than
the fair market value in the past 2 years
If yes,list(tems and date disposed:
1) $
❑ O I/we receive other forms of capital investments.
If yes,describe source; $
YES NO STUDENT STATUS
❑ ❑ Does the household consist of persons who are all full-time students
(Examples:CoilegelUniversity,trade school,etc.)
G ❑ Is student receiving financial aid(public or private,not including student $
laans)
J ❑ Is student married and filing a joint tax return
❑ ❑ Is student a singie parent with a dependent chfld ar children and neither
you nor your child(ren)are dependent of another individual
TOTAL INCOME(BOX F) $
TENANT INCOME CERTfFICATION
PAGE 3 OF 3
PART 1.WOUSEHOLD COMPOSITION
HH F�rst Name Relationship to Date of Birth F/T Social Security
Mbr# Last Name &Middle Inillal Head of Household (M/DIYYYY) Student or Alien Req.No
(Y or N}
Self
TOTAL HOUSEHOLD MEMBERS: #
PART II.GROSS ANFfUAL INCOME(USE ANNt1AL AMOUNT3)
HN
Mbr# (A) (B) (C) (D)
Employment or Wages Social Security/Pensions Pub11c Assistance Other Income
f.
Add totals from{A)through(Dj,above TOTAL INCOME: (E)
PART III-INCOME FROM ASSETS
HH (F) (G} (H) (I)
Mbr# Type of Asset C/l Cash Value of Asset Annual Income hom Asset
ALl $5000 Asset Waiver
TOTALS:
Enter Column(H)Total
If over$5,000 $0.00 X 2.00% (Passbook Rate) = Imputed Income (J}
Enter the great of the total of column(I),or Imputed Income{J) TOTAL INCOME FROM (K)
ASSETS:
Total Mnual Household Income from all Sources[Add(E)+{I�]: (L)
HOUSEHOLD CERTIFICATION&SIGNATURES
The fnformalion on this form will be used to determine maximum income eligibility.ilwe have provided each person(s)set forth in Part l acceptable
verificadon of current anticipated annual income.Ilwe agree to noGty the landlord Immediately upon any member of the household moving out of the
unit or any new member moving in.I/we agree to npQry the landlord immedlately upon any member becoming a full-Ume student
Under penalty of perjury of lhe laws of the State of Califomia,I/we certify that the information presented in the Certtfication is true and accurate to
the best ot my/our knowfedge and belief.The undersigned further understands that providing faise representations herein constitutes an act of fraud.
False,misleading or incomplete fnformation may result in the tertnination of the lease agreemenl.
Signature {Date) Signature (Date}
Signature (Date) Signature (Date}
EXHIBIT D
CERTIFICATE OF CONTINUING COMPLIANCE
[ATTACH E D]
P6402-0001\965569v3.doc Exhibit D-1
OWNER'S CERTIFICATE OF CANTINUING COMPLIANCE
To: City af Palm Desert Redevelopment Agency
73-510 Fred Waring Drive .
Palm Desert, CA 92260
Atfn: Housing Administrator
Certification Dates: From: To:
Project Name:
Project Number:
Project Address:
Tax Id#of Ownership Entity:
The undersigned on behalf of
("the Owner", hereby certifies that:
❑ No buildings have been Placed in Service
❑ Other
1. The project meets the minimum requirements of:
a
❑
2. There has been change 1 no change for any building in the project:
❑ NO CHANGE o CHANGE
If"Change,"please list:
3. The owner has received annual Tenant Income Certiflcation from all low-income households and documentation to support
that certification.
o YES ❑ NO
4. All low-income units in the project have been rent-restricted under the terms of Agreement No.:
o YES ❑ NO
5. All low-income units in the project have been and are being for used by the general public on a non-transient basis:
❑ YES ❑ NO
6. No finding of discrimination under the Fair Housing Act, 42 U.S.0 3601-3619, has occurred for this project. A finding of
discrimination includes an adverse final decision by the Secretary of Housing and Urban Development (HUO), 24CFR
180.680, an adverse final decision by a substantially equivalent state or local fair housing agency, 42 U.S.0 3616a{a)(1),
or and adverse judgment fram a federal court:
❑ YES ❑ NO
List Finding if occurred:
7. Each building and low-income unit in the project is and has been suitable for occupancy, taking into account local health,
safety, and building codes(or other habitability standards}, and the state or local government unit responsible for making
building code inspections did not issue a report of a violation for any building or low-income unit in the project:
a YES ❑ NO
If"No" state nature of violation:
Attach a copy of the violation report as required by 26 CFR 1.42-and any documentation of correction.
8. All tenant facilities, such as swimming pools, other recreational facilities, parking areas, washer/dryer hookups, and
appliances were provided on a comparable basis, without charge, to all tenants in the buildings:
❑ YES o NO
9. If any of the low-income units in the project has been vacant during the year, reasonable aftempts were or are being made
to rent that unit or the next available unit of comparable size to households having a qualifying income before any units were
or will be rented to tenants not having a qualifying income:
❑ YES ❑ NO
10. If the income of a household of a low-income unit in any building inc�eased above the qualifying limit allowed by the
Agreement NO. , the next available unit of comparable size in that building was or will be rented to tenants
having a qualifying income:
❑ YES o NO
11. There has been change!no change in the ownership or rnanagement of the project:
o NO CHANGE ❑ CHANGE
If"Change,"attach a copy detailing information of the changes in ownership or management of the project.
Note:Failure to complete this form in fts entirety will result in non-compliance with program requirements. In addition,any
individual other than an owner or general partner of project is not permitted to sign this form.
The project is otherwise in compliance with Agreement No. and all other applicable laws, rules and regulations. This
Certification and any attachments are made UNDER PENALTY OF PERJURY of the Laws of the State of California.
{Ownership Entry)
By:
Title:
Date:
Pface:
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