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HomeMy WebLinkAboutFY 08/09 - Admin Plan for HA - AH Rental Units CITY OF PALM DESERT FISCAL YEAR 2008-2009 Item 8 Palm Desert Redevelopment Agency/Palm Desert Housing Authority WHITE PAPER SUBMITTED BY: JANET M. MOORE, DIRECTOR OF HOUSING DEPARTMENT: REDEVELOPMENT AGENCY/HOUSING DIVISION SUBJECT: ADMINISTRATIVE PLAN FOR THE PALM DESERT HOUSING AUTHORITY PERTAINING TO THE MANAGEMENT AND OPERATION OF THE AFFORDABLE HOUSING RENTAL UNITS DATE: MARCH 3, 2008 EXECUTIVE SUMMARY The Administrative Plan ("Plan") memorializes the policies and procedures under which the Palm Desert Housing Authority ("Authority") currently operates, for the administration, management and operations of the affordable housing rental units in its portfolio. The Plan includes policies such as affirmative marketing procedures, tenant selection, waiting list procedures, eligibility, recertification requirements, leasing policies, and grievance process. The Authority is required by the Department of Housing and Urban Development (HUD) to have an approved administrative or management plan that cover specific policies, such as tenant selection, for select properties in its portfolio. In order to establish policies and procedures that are consistent for the portfolio, staff compiled its existing policies into an administrative plan for formal approval. The Plan will apply to properties ("Properties") identified in the Plan as well as properties that may be owned, operated, restricted or otherwise controlled by the Agency or Authority from time to time. BACKGROUND The purpose of the Plan is to establish program guidelines, policies and procedures as a framework for the management, rental, improvement, preservation, maintenance and affordability of the Properties identified in the Plan as Exhibit A as well as properties that may be owned, operated, restricted or otherwise controlled by the Agency or Authority from time to time. The Administrator of the Plan shall be the Authority regardless of funding source or ownership of the Properties. The Executive Director of the Authority shall have the authority to implement and administer the Plan in accordance with the terms therein as well as the authorizations provided in the Authority Bylaws. In matters where the G:IrdaUessica GonzalesVHOUSING AUTHORITYIADMINISTRATIVE PLAMWHITE PAPER-2008IAdministrative Plan-2008 White Paper Version Ill.docx White Paper Page 2 of 3 March 3, 2008 Authority has discretion, clarifications of existing policy shall be determined by the Executive Director or his designee. The Authority is responsible for the day-to-day operations of the Properties and is further authorized to do all acts necessary or appropriate in connection with the operation, management, repairs and rehabilitation. Consequently, instituting and maintaining the Plan as a means of communicating policies and procedures to very low, low, and moderate-income households of the restricted units at the Properties, will assist in promoting an affordable housing program pursuant to the Fair Housing Act as well as the enforcement of the requirements thereof. The Authority is required by HUD to have policies in place that cover specific procedures, such as tenant selection, at select properties in the portfolio (due to funding source requirements). Rather than to be property specific, staff recommends a comprehensive compilation of policies and procedures applicable to all the Properties. This is beneficial to the Authority by encouraging consistency amongst the entire portfolio. As such, staff memorialized the Authority's existing policies under which it currently operates to develop the Plan. The Authority's policies are derived mainly from state law including fair housing law, redevelopment law and regulations issued by the Department of Housing and Community Development (HCD). As affordable housing program regulations and/or local policy are revised, the Plan will be amended. In the absence of legal requirements or HCD guidance, industry practice may lead to Authority policy. The Authority's current management company, pursuant to their contract with the Authority, must implement any management or administrative plan provided by the Authority. Given that the Plan memorializes the existing policies, it is expected that implementation will be seamless. GOALS To establish policies and procedures that are consistent with applicable law as well as local goals and objectives. To encourage, maintain and preserve the supply of affordable housing in the City. To encourage, maintain and preserve the condition of the Authority's affordable housing portfolio in the City as well as the compatibility amongst the community. MULTI-DEPARTMENTAL IMPACTS The Plan is consistent with City policy and will be administered through the contracted management company and should not impact other City Departments. White Paper Page 3 of 3 March 3, 2008 DEPARTMENTAL IMPACT The Redevelopment Agency is tasked with increasing, improving and preserving the supply of very low, low and moderate-income housing. The Plan will provide a management and administrative framework in order to assist the Authority in that endeavor. FISCAL IMPACT Approval of the Plan will have no fiscal impact. RECOMMENDATION Staff recommends that the Agency Board and Authority Board jointly approve and accept the Palm Desert Housing Authority Administrative Plan as well as the authorities provided herein for the purpose of the management and operation of the properties that may be owned, operated, restricted or otherwise controlled by the Agency or Authority from time to time. Submitted by: Department Head: ,an M. Moore Dave Yrigoyen 'Y Director of Housing Director Redev pment/Housing Approval: Justin arthy, ACM Redev ent Carlos L. Ortega, Executive Director ATTACHMENTS • Administrative Plan, including Exhibits A- F • Sample Residential Lease and Addendums - "House Rules" • Sample Household Income Certification Worksheet • Agency/Authority Resolutions HA-22 adopting an Occupancy Standard • Agency/Authority Resolutions HA-32 establishing a Rent Setting Policy RESOLUTION NO. A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE ADMINISTRATIVE PLAN FOR THE PALM DESERT HOUSING AUTHORITY PERTAINING TO THE MANAGEMENT AND OPERATION OF THE AFFORDABLE HOUSING RENTAL UNITS NOW, THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Palm Desert Redevelopment Agency (the "Agency"), in cooperation with the Palm Desert Housing Authority (the "Authority"), has established an affordable housing rental program (the "Program") for very low, low and moderate income residential homeowners in the City. Section 2. The Agency wishes to memorialize the policies and procedures under which the Authority currently operates, for the administration, management and operations of the Program into an Administrative Plan (the "Plan") as attached hereto and incorporated herein by this reference. Section 3. The Administrator of the Plan shall be the Authority regardless of funding source or ownership of the properties. Section 4. The Agency hereby approves and accepts the Plan as well as the authority provided herein for the purpose of the management and operation of the properties that may be owned, operated, restricted or otherwise controlled by the Agency or Authority from time to time. Section 5. The Executive Director of the Authority shall have the authority to implement and administer the Plan in accordance with the terms therein as well as the Authority Bylaws so long as such action is not inconsistent with the intent hereof. PASSED, APPROVED AND ADOPTED by the Palm Desert Redevelopment Agency, this day of_2008 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Jean M. Benson, Chairman ATTEST: Rachelle D. Klassen, Secretary RESOLUTION NO. A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY APPROVING THE ADMINISTRATIVE PLAN FOR THE PALM DESERT HOUSING AUTHORITY PERTAINING TO THE MANAGEMENT AND OPERATION OF THE AFFORDABLE HOUSING RENTAL UNITS NOW, THEREFORE, THE PALM DESERT HOUSING AUTHORITY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Palm Desert Housing Authority (the "Authority"), in cooperation with the Palm Desert Redevelopment Agency (the "Agency"), has established an affordable housing rental program (the "Program") for very low, low and moderate income residential homeowners in the City. Section 2. The Authority wishes to memorialize the policies and procedures under which the Authority currently operates, for the administration, management and operations of the Program into an Administrative Plan (the "Plan") as attached hereto and incorporated herein by this reference. Section 3. The Administrator of the Plan shall be the Authority regardless of funding source or ownership of the properties. Section 4. The Authority herby approves and accepts the Plan as well as the authority provided herein for the purpose of the management and operation of the properties that may be owned, operated, restricted or otherwise controlled by the Agency or Authority from time to time. Section 5. The Executive Director of the Authority shall have the authority to implement and administer the Plan in accordance with the terms therein as well as the Authority Bylaws so long as such action is not inconsistent with the intent hereof. PASSED, APPROVED AND ADOPTED by the Palm Desert Housing Authority, this _ day of_2008 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Jean M. Benson, Chairman ATTEST: Rachelle D. 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ADMINISTRATIVE POLICIES AND PROCEDURES of the PALM DESERT HOUSING AUTHORITY for the Management and Operation of its AFFORDABLE HOUSING RENTAL UNITS 73-510 Fred Waring Drive Palm Desert, CA 92260 Phone: (760) 346-0611 Fax: (760) 341-6372 www.cityofpalmdesert.org Version 1.0 6/2/2008 11:05 AM TABLE OF CONTENTS ABOUT THE AUTHORITY 1 1.0 DEFINITIONS 2 2.0 ABOUT THE PLAN 8 2.1 PURPOSE OF PLAN 8 2.2 APPLICABILITY OF PLAN 8 2.3 ADMINISTRATOR OF THE PLAN 8 2.4 FISCAL RESPONSIBILITIES 8 2.5 EQUAL OPPORTUNITY 8 2.6 PROPERTIES 9 3.0 TENANT SELECTION AND WAITING LIST PROCEDURES 10 3.1 WAITING LIST INTEREST REGISTRATION FORM 10 3.2 ESTABLISHMENT OF WAITING LISTS 10 3.3 ELIGIBILITY FOR WAITING LIST 10 3.4 PLACEMENT ON THE WAITING LIST 10 3.5 NOTIFICATION OF AVAILABLE UNIT 10 3.6 NOTIFICATION BY WAIT LIST ELIGIBLE HOUSEHOLD OF INCOME OR HOUSEHOLD CHANGES 11 3.7 WAITING LIST MAINTENANCE AND NOTIFICATION OF CONTINUED INTEREST 11 3.8 ALL UNITS ARE AFFORDABLE 11 3.9 PREFERENCES 11 3.10 SELECTION FROM THE WAIT LIST UPON UNIT AVAILABILITY 11 3.10.1 Property Income Composition and Income by Unit Allocation 12 3.10.2 Unit Under/Over Utilization 12 3.10.3 Offer and Acceptance of a Restricted Unit 12 3.10.4 Unit Availability and Transfers 12 3.10.4a Emergency Transfer 12 3.10.4b Disabled Person Accommodation 13 3.10.4c Required Transfer 13 3.10.4d Medical Transfer 13 3.10.4e Requested Transfers 13 3.11 Conflicts Prohibited 13 4.0 APPLICATIONS AND HOUSEHOLD QUALIFICATION 14 4.1 APPLICATION 14 4.1.1 Contact Information 14 4.1.2 Income 14 4.1.3 Assets 14 4.1.4 Affordable Requirements 14 4.1.5 Applicant Lease Requirements 14 4.1.6 Identification 14 4.1.7 Consent/Verification Forms 14 4.1.8 Application Fee 14 4.1.9 Other Information 14 4.2 APPLICANT LEASE REQUIREMENTS 15 4.2.1 Age Requirements 15 4.2.2 Income History/Verification 15 4.2.3 Self-Employment 15 4.2.4 Lease Income Requirement 15 6/2/2008 11:04 AM 1 4.2.5 Rental History 15 4.2.6 Credit Requirements 15 4.2.7 Criminal Background 15 4.3 AFFORD QUALIFICATION REQUIREMENTS 15 4.3.1 Household Income Criteria 15 4.3.2 No Ownership in Real Property or Mobilehomes 16 4.3.3 Certification and Recertification of Eligibility 16 4.3.4 Proof of Income 16 4.3.5 Changes in Income 16 4.3.6 Primary Residence Requirement 16 4.3.7 Other Housing Assistance 16 4.4 CREDIT CHECKS, BACKGROUND CHECKS, AND DOCUMENTATION VERIFICATIONS 16 4.4.1 Application Certifications and Verifications 16 4.4.1a Authorization for Release of Information Form 16 4.4.1 b Application and/or Tenant Income Certification 16 4.4.1c Eligibility Requirements 16 4.4.1 d Applicant/Resident Certification 16 4.4.1e Residence History/Verification Form 17 4.4.1f Verification of Non-Receipt of Child Support 17 4.4.1g Verification of Alimony/Family Support 17 4.4.1 h Other Certification or Verification 17 4.4.2 Credit Reports/Background Checks 17 4.5 ADDITIONAL DOCUMENT SUBMITTAL 18 4.6 APPLICATION ACCURACY 18 4.7 APPLICATION APPROVAL/DENIAL 18 5.0 LEASING POLICIES AND PROCEDURES 19 5.1 RESIDENTIAL LEASE AND ADDENDUMS 19 5.2 LEASE DEPOSITS 20 5.3 LEASE PAYMENTS AND LATE CHARGES 20 5.4 LEASE AMENDMENTS 21 5.5 LEASE MODIFICATIONS 21 5.6 PRE-OCCUPANCY INSPECTION 21 5.7 RENTAL RATES 21 5.7.1 Setting Rental Rates 21 5.7.2 Rental Rents Based on Standard Occupancy 21 5.7.3 Household Rent 21 5.8 MAINTENANCE AND ENTRY TO RESTRICTED UNITS 21 5.9 LEASE RENEWALS 22 5.10 NO SUBLETTING 22 5.11 LIVE-IN AIDES 22 5.12 PETS 22 6.0 RECERTIFICATION REQUIREMENTS 23 6.1 REQUIRED ANNUAL RECERTIFICATION 23 6.1.1 Recertification Appointments 23 6.1.2 Recertification Documentation 23 6.1.3 Annual Recertification Confirmation as a Qualified Household 24 6.2 CIRCUMSTANTIAL OR INTERIM RECERTIFICATION 24 6.2.1 Changes in Household Size 24 6.2.2 Change of Household Income 24 6.3 TEMPORARY RECERTIFICATION 24 6.4 ANNUAL INSPECTIONS 24 6.5 FALSE STATEMENTS AND WILLFUL OMISSIONS 24 6/2/2008 11:04 AM 2 7.0 TERMINATION OF TENANCIES AND MOVE-OUT PROCEDURES 25 7.1 TERMINATION OF TENANCIES OTHER THAN BY EVICTION 25 7.1.1 End of Lease Term 25 7.1.2 During a Lease Term 25 7.1.3 Notices to Vacate for Termination of Tenancies Other than by Eviction 25 7.1.3a Tenant Notices to Vacate 25 7.1.3b Management Notices to Vacate 25 7.1.4 Move-out Procedures 25 7.1.4a Notice of Option to Request an Initial Inspection 25 7.1.4b Scheduling the Initial Move-out Inspection 26 7.1.4c Opting Out of a Pre-Inspection 26 7.1.4d Inspection Exceptions 26 7.1.4e Inspection Findings 26 7.1.4f Final Inspection 26 7.1.5 Maintenance and Repairs Necessary Due to Impending Move-out 26 7.2 TERMINATION OF TENANCY THROUGH TO EVICTION 26 7.2.1 Reasons for Eviction 26 7.2.1 a Violations of the Lease 26 7.2.1 b Non-Payment of Rent 27 7.2.1c Misrepresentation of Eligibility Under the Plan 27 7.2.2 Eviction Process 27 7.2.2a Eviction Notice 27 7.2.2b Verification of Occupancy 27 7.2.2c Unlawful Detainer 27 7.3 REFUND OF SECURITY DEPOSIT 27 7.3.1 Notification of Itemized Security Deposit Disposition 27 7.3.2 Tenant's Entitlement to Security Deposit 27 8.0 GRIEVANCE PROCESS 28 8.1 GRIEVANCE APPLICABLITY 28 8.2 GRIEVANCES 28 8.2.1 Informal Grievance 28 8.2.2 Informal Hearing 28 8.2.2 Unresolved Grievances 29 EXHIBITS EXHIBIT A 30 EXHIBIT B 31 EXHIBIT C 33 EXHIBIT D 34 EXHIBIT E 37 EXHIBIT F 38 6/2/2008 11:04 AM 3 ABOUT THE AUTHORITY "The mission of the Palm Desert Housing Authority is to serve the citizens of Palm Desert by providing decent, safe, sanitary, and affordable housing to qualifying households whose incomes are very low to moderate including public-private partnerships." The Palm Desert Housing Authority (Authority) was established in December of 1997 to operate certain affordable rental properties located in Palm Desert that the Palm Desert Redevelopment Agency (Agency) acquired from the Riverside County Housing Authority (RCHA). Prior to the Agency's acquisition, the RCHA owned and operated the 725 affordable units for Palm Desert. The Authority now operates over 1,000 affordable rental units that are owned by the Agency. The income levels range from very low(20% of the Area Median Income)to moderate (up to 120% of the Area Median Income) with rents ranging from $120 to $990. The City Council members were appointed as commissioners to the Authority Board. The Authority Board created and established a Housing Commission comprised of members of the community to review and advise on matters to come before the Authority Board. Palm Desert's commitment to provide affordable housing is evidenced by the blend of for-sale single-family homes, senior, and multi-family rental units that comprise its portfolio. Palm Desert continues to be a leader among the desert communities in the development of affordable housing and utilizes a number of funding sources including tax-exempt bonds, 20 percent tax increment set- aside, housing mitigation funds and net operating income from the Authority Properties. In addition to the affordable units owned by the Agency, both the City of Palm Desert (City) and the Agency have provided incentives in various forms, such as land donations, down payment assistance, silent deeds of trust, density bonuses, and loans to developers that dedicate units as affordable. Currently there are over 600 units provided by developers or non-profit organizations using one of these incentives. The Authority also works hand in hand with the City toward sustaining the goals and policies contained in the City's approved Housing Element: Goal 1: A variety of housing types that meet all the needs of all income groups within the City. Goal 2: The preservation and maintenance of the supply of high quality affordable housing in the City. Palm Desert's affordable housing programs are successful in part because of the solid foundation of policies, procedures and regulatory provisions that have been established. Our rental properties as well as our for-sale housing programs have guidelines that provide for all residents to be treated fairly under fair housing laws, and equitably based on income and family size. The rental properties, through a coordinated effort with staff, are managed by a contracted professional property management company in accordance with this Administrative Plan. The policies, guidelines and standards set forth in this Administrative Plan shall apply to rental properties owned, operated or controlled by the Authority and the Agency, and are intended to encourage, maintain and preserve the supply of affordable housing in the City, the condition of affordable housing in the City, and the level of compatibility within the community that is expected by the City Council, Agency Board and the Authority Board. NOTICE: This Plan is intended to establish policies where the Authority/Agency has discretion under the applicable law. This Plan does not purport to change any of the requirements of Federal or State Law. In the event any discrepancy between this Plan and applicable law,the law will prevail. 6/2/2008 11:04 AM 1 Administrative Plan Section 1 Definitions Section 1. DEFINITIONS Capitalized terms used herein shall have the following meanings unless the context in which they are used clearly requires otherwise. Code Sections or statutes that are referenced herein may be amended from time to time and shall be subject to the then current law unless stated otherwise. Adjusted for Family Size —shall mean a standardized household size for the purposes of renting units appropriate for family size pursuant to Health and Safety Code Section 50052.5, which is one person in the case of a studio unit, two persons in the case of a one- bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit. Affordable Housing Cost—shall mean a housing cost, as defined by Title 25 CCR Section 6920, which is calculated pursuant to California Health and Safety Code Section 50052.5, as such regulations may be amended from time to time. Agency—shall mean the Palm Desert Redevelopment Agency. AMI — shall mean the Area Median Income for Riverside-San Bernardino Metropolitan Statistical Area (SMSA), as determined and published annually by the United States Department of Housing and Urban Development ("HUD"), pursuant to California Health and Safety Code Section 50093, and the regulations promulgated thereunder, 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 state regulations adopted pursuant to California Health and Safety Code Section 50052.5, as amended from time to time. Applicant — shall mean a person or household that desires to apply for tenancy at an Agency/Authority Property. See also: Interested Household, Wait List Eligible Household, and Qualified Household. Assets —see Household Assets. Authority—shall mean the Palm Desert Housing Authority. Authority Board — shall mean the five members who serve on the Palm Desert City Council, which is the governing body for the Authority. Caretaker—see Live-in Aide. CCR—shall mean the California Code of Regulations. Child — see Minor. Child Care Expenses — shall mean a reasonable amount paid by the household for the care of minors under 13 years of age where such care is necessary to enable a family member to be employed. City— shall mean the City of Palm Desert. Management and Operations— Rental Units Effective 7-1-08 2 Administrative Plan Section 1 Definitions City Manager—shall mean the City Manager for the City of Palm Desert. County— shall mean the County of Riverside, California. Disability — shall mean a physical or mental impairment that substantially limits one or more of the major life activities; a record of such impairment; or being regarded as having such an impairment, as such terms are defined by, and interpreted in accordance with, the Americans with Disabilities Act. Disability Program Participant — shall mean a household member who has been determined by the Commissioner of Social Security to be unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that has lasted or can be expected to last for a continuous period of not less than 12 months or as more particularly defined under Section 223 of the Social Security Act. Elderly Household — shall mean a Household that consists of one or two persons, one of which is over the age of 55, or otherwise is qualified in accordance with California Civil Code Section 51.11. Exceptional medical or other expenses — shall mean medical expenses, and/or unusual expenses, as defined in this section, which exceed twenty-five percent (25%) of the gross annual income. Executive Director — shall mean the Executive Director of the Palm Desert Redevelopment Agency and the Palm Desert Housing Authority. Family — shall also mean `Household' within the Plan unless otherwise stated. See also Household. Grievance — A tenant's or applicant's right to seek review of a decision from an impartial panel concerning management's action or failure to act in accordance with the individual tenant's lease or the Authority's policy and procedures herein described that adversely affect the individual's rights, duties, welfare, or status. HCD — shall mean the Department of Housing and Community Development for the State of California. HOME funds — shall mean monies allocated under a block grant funding program made available through HUD through allocations and reallocations, to strengthen public-private partnerships and to expand the supply of decent, safe, sanitary and affordable housing with target emphasis on very low-income and low-income families in accordance with the HOME Investment Partnerships Program Final Rule - 24 CFR Part 92. Household — shall mean one or more persons intending to occupy or occupying the same restricted unit, as more particularly described in the Authority's Resolution No. 22. Household shall also mean `Family' within the Plan unless otherwise stated. Household Assets — shall mean those assets defined under Title 25 CCR Section 6914 includable as monthly income as prescribed therein. HUD— shall mean the U.S. Department of Housing and Urban Development. Management and Operations—Rental Units Effective 7-1-08 3 Administrative Plan Section 1 Definitions Income — shall mean income that a person or household has received or is expected to receive as more particularly categorized and described below: Annual Income—The anticipated total annual income of a household from all sources for the 12-month period following the date of determination of income, computed in accordance with Title 25. Household Income — shall mean the total of all income received by a household which is included under Title 25 CCR Section 6914 less deductions and exemptions specified therein. Gross Income — shall have the meaning ascribed to such term in Title 25 CCR Section 6914, as such regulations may be amended from time to time. Maximum Household Income — shall mean the household income calculated based on family size that may be equal to but does not exceed 120 percent of AMI. Household incomes exceeding 120 percent will not be eligible for the Agency's or Authority's programs. Net Income — For the purpose of determining affordable housing cost or affordable rent, "net income" shall be computed as follows: the annual gross income less $300 for each minor and medical expenses which exceed 3 percent of the annual gross income and unusual expenses, all divided by 12. For the purposes of this Plan, "Income" shall not include the income of Live-In Aides. Income by Unit Allocation — shall mean the allocation provided by the Authority to the property manager for the purposes of blending the qualified household and tenant incomes among the properties. Income Category — shall mean the average income percentages within each income level. In the case of Very Low Income shall include household incomes from 20 percent up to 50 percent in the following categories: 20, 25, 30, 35, 40, 45 up to 50 percent; in the case of Low Income shall include household incomes from 51 percent up to 80 percent in the following categories: 55, 60, 65, 70, 75, 80; and in the case of Moderate Income shall include household incomes from 81 percent up to 120 percent as one category. Income Level — shall mean a household determined by income to be either very low, low or moderate income pursuant to the definitions prescribed herein. Interested Households — shall mean a person or household that desires to apply for tenancy at a Property that contains restricted units. See also: Applicant. Jurisdiction — shall mean the legal jurisdiction of the Authority, which is the city limits of Palm Desert. Live-in Aide — shall mean a person who resides with one or more elderly persons or persons with disabilities, who is not a relative or spouse of any person in the household, and has been determined by the Authority that the supportive services to be provided are essential to the care and well-being of such elderly person or person with disabilities. Low Income Household — shall mean persons and families meeting the income qualification limits set forth in California Health and Safety Code Section 50079.5 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. Management and Operations—Rental Units Effective 7-1-08 4 Administrative Plan Section 1 Definitions Manager- shall mean the contracted property management company for the Authority. Medical Expenses - shall mean those medical expenses not included as extraordinary or unusual expenses, which are to be anticipated during the 12-month period for which the gross income is computed, and which are not covered by insurance (however, premiums for such insurance may be included as medical expenses). Medical expenses defined herein shall be deducted for qualified disabled persons and elderly households only. Minor - shall mean a member of the household other than the head of household or spouse, who is under 18 years of age. Moderate Income Household - shall mean persons and families meeting the income qualification limits set forth in California Health and Safety Code Section 50093 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. Notice of Denial - shall mean the notice provided to the household when it is ineligible, not qualified or is no longer qualified. Plan -shall mean this Administrative Plan (also referred to as The Plan). Public Housing Agency- shall mean any State, County, municipal or other government entity or public body (or agency or instrumentality thereof) that is authorized to engage in or assist in the development or operation of housing for very low, low, or moderate income households. Qualified Household - A person or household whose total household income does not exceed the limits established by the Plan and who have provided documentation as required herein to demonstrate he, she or it is qualified to occupy a restricted unit. RCHA-shall mean Riverside County Housing Authority. Property - shall mean a multi-family or senior residential apartment complex, or any part thereof, that is owned, operated or controlled by the Agency or Authority, including but not limited to those properties listed in Exhibit A. Property Manager - The manager assigned by the Manager for day-to-day operations for a specific affordable residential property. Rent - shall mean the amount charged as a fee for occupancy for a particular restricted unit pursuant to Resolution HA-32 and categorized below: Affordable Rent- shall mean rent calculated in accordance with Health and Safety Code Section 50053 for a very low, low or moderate-income household. Affordable rent shall include a reasonable allowance for utilities. Maximum Rent- shall mean the maximum rental rate set for a particular type of unit at a specific Property, without regard to utility allowance, based on a bi-annual market survey. Such rate shall be adjusted in the non-surveyed year by the AMI Management and Operations- Rental Units Effective 7-1-08 5 Administrative Plan Section 1 Definitions percentage change as more particularly described in Resolution No. 32 adopted August 24, 2006 or any amendments thereto. Tenant Rent - Tenant Rent is the total monthly tenant payment to the Authority as determined by certification, recertification, or outside assistance. Tenant Rent may or may not be the total paid as Unit Rent for a particular unit. Unit Rent- shall mean the total rent charged for a particular Agency or Authority owned, operated or controlled unit, including those amounts accepted from a third party for the purposes of rental assistance or housing expense. Rent Burdened - shall mean a household that is paying more than thirty (30%) percent of household income for rent and utilities. Restricted units -shall mean an affordable housing unit that is owned, operated or controlled by the Agency or Authority. Senior- shall mean a person who is at least 55 years of age or older. Tenant - shall mean a person or household that has signed a residential lease to occupy or is currently occupying a restricted unit. Title 25 - shall mean Title 25 of the California Code of Regulations Section 6910, et seq., as it pertains to income and household size for households whose income is very low, low or moderate, as may be amended from time to time. Unusual expenses - shall mean amounts paid by the household for the care of minors under 13 years of age or for the care of disabled or handicapped family household members, but only where such care is necessary to enable a family member to be gainfully employed, and the amount allowable as unusual expenses shall not exceed the amount of income from such employment. Utilities - shall include electricity, gas, other heating (hot water heat), refrigeration and cooking fuels not paid by the Agency or Authority. Utilities may include water, trash and sewer if not paid by the Agency or Authority. Telephone, Cable, Digital Services and Internet Connection costs are not included as utilities. Utility Allowance - The amount equal to the estimate established by the RCHA under Part 965 of the Code of Federal Regulations of the monthly cost of a reasonable consumption of such utilities and other services for the unit by an energy-conservative household consistent with the requirements of a safe, sanitary, and healthful living environment applicable for each unit type and equipment. See Exhibit C. Veteran -A person who has served in the active military or naval service of the United States at any time and who shall have been discharged or released there from under conditions other than dishonorable. Very Low Income Household - shall mean persons and families meeting the income qualification limits set forth in California Health and Safety Code Section 50105 and Title 25 of the California Code of Regulations Section 6910, et seq., as the case or context Management and Operations- Rental Units Effective 7-1-08 6 Administrative Plan Section 1 Definitions may require, as such statutes and regulations may be amended from time to time; provided, however, that such income is at least 20 percent of AMI. Wait List Eligible Households — shall mean persons and families who have provided the documentation and/or information required demonstrating that they meet the minimum eligibility requirements to be placed on a waiting list. (See Section 3.3) Management and Operations— Rental Units Effective 7-1-08 7 Administrative Plan Section 2 About The Plan Section 2. ABOUT THE PLAN Section 2.1 PURPOSE OF THE PLAN. The purpose of the Administrative Plan (the Plan) is to establish program guidelines, policies and procedures as they pertain to Agency/Authority owned, operated or controlled properties. This plan serves as the management plan for the rental, improvement, preservation, maintenance and affordability of Agency/Authority restricted units. Section 2.2 APPLICABILITY OF THE PLAN. The Plan shall apply to all members of interested households, wait list eligible households, qualified households, applicants and tenants applying for or residing in properties identified in Exhibit "A" and any others that may be controlled by the Agency or Authority from time to time. Unless otherwise specified in the Federal or State funding guidelines, the processes outlined herein shall also apply to the tenants occupying an Authority unit who receive Federal or State funding either directly or indirectly. Federal and State laws shall prevail in the event the policies and processes set forth herein are inconsistent with any existing or enacted applicable law. Section 2.3 ADMINISTRATOR OF THE PLAN. The administrator of the Plan shall be the Palm Desert Housing Authority regardless of funding source or ownership of the restricted units. The Executive Director of the Authority shall have the authority to implement and administer the Plan in accordance with the terms herein. In matters where the Authority has discretion, waivers of existing policy shall be determined by the Executive Director or his or her designee. It is understood that references to either the Agency or the Authority in the Plan shall mean both entities unless clearly stated otherwise. Section 2.4 FISCAL RESPONSIBILITIES. Before the beginning of each fiscal year or as soon as possible after an acquisition of property, the Authority Board will adopt the property budget. The budget will include a projection of revenue and all expenditures including professional property management fees prior to being expended. A written request to the Finance Director of the City will be required to `carry over' and unused capital and replacement expense budget amounts from a prior year. The Authority will follow procurement procedures in accordance with applicable law. Section 2.5 EQUAL OPPORTUNITY. It is the policy of the Agency, the Authority and it's agents to comply fully with all federal, state, and local anti-discrimination laws, including but not limited to Title VI of the Civil Rights Act of 1964; Title VIII and Section 3 of the Civil Rights Act of 1968 (as amended by the Community Development Act of 1974); Executive Order 11063 as strengthened by Congress in 1992; the Fair Housing Act of 1968, as amended; the Age Discrimination Act of 1975; the Americans with Disabilities Act (ADA) of 1990; and the U.S. Department of Housing and Urban Development regulations governing fair housing and equal opportunity; and any legislation protecting the individual rights of residents, applicants or staff which may be subsequently enacted. It is the Authority's policy to post required notices in conspicuous, public locations throughout the property as required by such notice. It is the Authority's policy to ensure meaningful access to limited English proficient (LEP) persons. The Authority may translate certain documents related to the Plan as well as those required by law to assist persons with LEP. Notwithstanding this provision, the English version of all documents signed by the tenant will govern. Reasonable, necessary steps will be Management and Operations- Rental Units Effective 7-1-08 8 Administrative Plan Section 2 About The Plan established by the Manager in order to make certain that no eligible person has their assistance denied, decreased or terminated simply because they face challenges communicating in English. Section 2.6 PROPERTIES. Properties include those properties currently operated by the Authority, listed in Exhibit "A" as well as any property or development that comes under the direction, control or is acquired by the Agency or Authority. Each of the properties has its own design, decor, personality and sense of community. Each of the properties may from time to time have resident programs or outside services including coin operated laundry facilities, health screenings, low cost immunizations, or licensed childcare facilities. Services vary by location and are provided by an outside service provider qualified to offer such services and are not contracted for by the Authority or the Manager. Information on these outside services may be obtained from the Manager. Those properties designated as senior serve only elderly households. All other properties operated by the Authority are to be open and made available to all qualified households. Management and Operations—Rental Units Effective 7-1-08 9 Administrative Plan Section 3 Tenant Selection Waiting List Procedures Section 3. TENANT SELECTION AND WAITING LIST PROCEDURES The Authority has found that demands for its affordable rental housing exceed supply. In order to identify households that have interest in restricted units, waiting lists will be established for each property as herein described. Wait List Eligible Households will be assigned a position on the waiting list by income category and household size. Section 3.1 WAITING LIST INTEREST REGISTRATION FORM. All Interested Households must complete an interest registration form referred to as a "Guest Card". The purpose of the form is to allow the Authority to determine placement on the waiting list based on the information provided by the Interested Household. Interest registration forms will be accepted by phone, by mail, by physical delivery to the individual property management office. Section 3.2 ESTABLISHMENT OF WAITING LISTS. Waiting lists will be maintained for each property for each Income Category at or below 120% of the County median. Waiting lists for transfers will also be maintained for each property in accordance with this Section 3. Section 3.3 ELIGIBILITY FOR WAITING LIST. In order for an Interested Household to become a Wait List Eligible Household and be placed on the waiting list, the Interested Household must meet income eligibility requirements based on the AMI for Riverside County. The Interested Household will also be required to meet additional permissible criteria established by the Authority pursuant to Title 25 that include but are not limited to the following: Section 3.3.1 Must provide income and assets for all household members over the age of 18 (except for Live-In Aides), which in aggregate does not exceed Maximum Household Income. Section 3.3.2 Must provide names and ages of all household members. Section 3.3.3 Must disclose any allowable preferences at time of interest. Section 3.3.4 Current address and contact information. Section 3.4 PLACEMENT ON THE WAITING LIST. All Wait List Eligible Households will be placed on the appropriate affordable waiting list according to allowable preferences, current income, and in the date/time order in which applications are received. Wait List Eligible Households must update the information provided to the manager as necessary during the wait list period in order to remain a Wait List Eligible Household. Section 3.5 NOTIFICATION OF AVAILABLE UNIT. Once the Manager identifies a restricted unit that will become available, Wait List Eligible Households will be notified by U.S. mail and upon request, telephone and will be given 10 days from the date of mailing of notice to respond to the Manager. Wait List Eligible Households will be notified by telephone (as a courtesy) if only a telephone number is provided. Failure of the Wait List Eligible Household to respond within the above time frame above will result in removal from the waiting list. In accordance with this Section, it is the Wait List Eligible Household's responsibility to keep the waiting list information current at all times. In the event contact is not possible due to insufficient or out of date information on file, the Wait List Eligible Household will no longer be deemed `eligible' and will be removed from the waiting list without further notice. Management and Operations—Rental Units Effective 7-1-08 10 Administrative Plan Section 3 Tenant Selection Waiting List Procedures Section 3.6 NOTIFICATION BY WAIT LIST ELIGIBLE HOUSEHOLD OF INCOME OR HOUSEHOLD CHANGES. During the wait list period, any changes to the information provided by the Wait List Eligible Household must be provided to the property manager of the individual property to ensure its placement on the waiting list under the correct income category. At the time the updated information is provided, if the revised household income changes the income category for the Wait List Eligible Household but remains under 120% of the AMI, the household will remain `eligible' but will be placed at the `bottom' of the new income category list and notified of the change. Section 3.7 WAITING LIST MAINTENANCE AND NOTIFICATION OF CONTINUED INTEREST. Applicants on the waiting list shall confirm every two years that all information is current and timely. The Wait List Eligible Household must notify the individual property management office within 10 calendar days (but not more than 60 calendar days) prior to the two-year anniversary of placement on the list, that the household wishes to remain on the list (continued interest). Failure to notify the property management office within the time frame will result in removal from the waiting list. The Wait List Eligible Households will not be removed from waiting list unless: the household has been on the waiting list for two years and has not declared its continued interest in the program; the household fails to respond to a written request for information; the household fails to keep the information current making contact by the property management office not possible; the household misses a scheduled appointment without prior notification to reschedule; the household requests in writing that the household's name be removed; the household's income or family size has exceeded the limits of the program; or any information or documentation that deems a Wait List Eligible Household to be ineligible (includes the lack of documentation proving eligibility). Section 3.8 ALL UNITS ARE AFFORDABLE. No units owned or operated by the Agency or Authority will be intentionally rented to families above moderate income as defined herein. In the event units are no longer required to be affordable, then the units that are identified as above moderate income, will be rented on a first come, first served basis regardless of income and family size, at the maximum rent as established by the Authority Resolution No. HA 32. Policies of the Plan apply to all tenants regardless of income or family size. Section 3.9 PREFERENCES. Each Wait List Eligible Household will be placed on the applicable affordable waiting list according to allowable preferences. Such preferences must be disclosed at such time as the Interested Household has completed the interest registration form or upon eligibility for said preference, whichever occurs first. Section 3.10 SELECTION FROM THE WAIT LIST UPON UNIT AVAILABILITY. Notwithstanding Section 3.10.4 herein, when a vacancy occurs, a Wait List Eligible Household will be selected to apply as an Applicant for tenancy in the following manner: first from the appropriate income waiting list that satisfies the property's Income by Unit Allocation, then by household size appropriate for the unit in accordance with Authority Resolution HA-22. The household income of an Applicant at the time a restricted unit becomes available will be used to determine the appropriate income category for the Applicant. If at the time a restricted unit becomes available, the Applicant's income is different than the waiting list income category they are selected from, they will be returned to a 'Wait List Eligible Household' status and placed on the appropriate income category waiting list in accordance with the waiting list procedures. The household will be placed at the `bottom' of the new income category list and notified of the change. Management and Operations— Rental Units Effective 7-1-08 11 Administrative Plan Section 3 Tenant Selection Waiting List Procedures If there are no Wait List Eligible Households in the appropriate income category, the next Wait List Eligible Household will be selected from the next lower income category. Upon being selected to apply for tenancy the Applicant will then be required to complete the application process to determine whether they are a Qualified Household under the Plan as more particularly described in Section 4 and 5. Section 3.10.1 Property Income Composition and Income by Unit Allocation. From time to time the Authority may modify the tenant income composition of the property so as to not concentrate a higher percentage of one income level at one property. The Authority will select tenants by income in a manner to ensure decent, safe and sanitary housing and create a suitable living environment that fosters economic and social diversity in the tenant body as a whole by preparing an allocation for this purpose (Income by Unit Allocation). Section 3.10.2 Unit under/over utilization. To avoid overcrowding and prevent underutilization of restricted units, households will be selected in accordance with Agency Resolution No. 484, Authority Resolution No. HA-22, the "Policy on Occupancy Standards." Section 3.10.3 Offer and Acceptance of a Restricted Unit. Once an Applicant is deemed a Qualified Household, the household will be offered an available restricted unit appropriate for the household composition. The Qualified Household has an option to accept or decline the restricted unit, one time, without any effect on its position on the waiting list. A Qualified Household that declines more than one restricted unit will be removed from the waiting list, except to the extent the Qualified Household declines due to a disability or other reasons protected by law. The Authority will take into consideration the needs of the individual household's based on family composition and Fair Housing guidelines when identifying restricted units that become available to the selected household. Upon acceptance of the restricted unit, the Qualified Household will be notified, by telephone and/or in writing of the anticipated date the restricted unit will be available for occupancy. Section 3.10.4 Unit Availability and Transfers. The type of unit that becomes available will determine whether the next Wait List Eligible Household is selected or other special accommodation is made including an existing tenant transfer. Emergency Transfers will have first priority. Disabled Person Accommodations, Required transfers and Medical transfers will have priority in that respective order. Requested transfers will be added to the bottom of the appropriate waiting list unless the request is being considered both by management and the tenant for purposes of mutual benefit to the parties. 3.10.4.a. Emergency Transfer: A transfer of an existing tenant that is necessary due to an emergency condition. Emergency conditions are generally life safety issues that require immediate vacation of the restricted unit. Management and Operations- Rental Units Effective 7-1-08 12 Administrative Plan Section 3 Tenant Selection Waiting List Procedures 3.10.4.b. Disabled Person Accommodation: A reasonable accommodation made in accordance with the Americans with Disabilities Act, Section 503 of the Rehabilitation Act of 1973, the Fair Housing Act or applicable state disability law. 3.10.4.c. Required Transfer: A transfer that is necessary when a tenant's unit is no longer suitable in accordance with the Authority 's occupancy standards. 3.10.4.d. Medical Transfer: A transfers that is necessary when a tenant provides a verifiable medical reason for such transfer. 3.10.4.e. Requested Transfers: A transfer that is requested by an existing tenant for reasons of benefit to the tenant alone other than the reasons in Sections 3.10.4 a. through d. above. Section 3.11 Conflicts Prohibited. No person who is employed by the Authority, the Agency or the City and who exercises functions or responsibilities with respect to the Properties or programs governed by this Plan, or any person with business or family relationships with such a person, may, during the period of employment and for one year thereafter, apply for or occupy a restricted unit in the Properties or obtain any other benefit under the programs governed by this Plan. Management and Operations- Rental Units Effective 7-1-08 13 Administrative Plan Section 4 Applications and Household Qualifications Section 4. APPLICATIONS AND HOUSEHOLD QUALIFICATION Once a Wait List Eligible Household is selected as an Applicant in accordance with Section 3, the Applicant must submit a completed application in the form acceptable to the Manager that includes the requirements, documentation, verifications, authorizations and certifications required by this Section. Section 4.1 APPLICATION. The completed application will require that the Applicant provide the following: Section 4.1.1 Contact Information. Current address and contact information for the Applicant. Section 4.1.2 Income. Income information for all household members over the age of 18 (except for Live-In Aides), which includes but is not limited to tax returns, pay stubs, bank statements, unemployment earnings statements, and disability or social security earnings statements. Section 4.1.3 Assets. Asset information for all household members over the age of 18 (except for Live-In Aides) which includes but is not limited to any interest in real property other than a primary residence, savings accounts, stocks, bonds, and other forms of capital investments. Section 4.1.4 Affordable Requirements. Must provide necessary documentation to verify affordable criteria has been met by all household members in accordance with Section 4.3. Section 4.1.5 Applicant Lease Requirements. Must provide necessary documentation to verify applicant lease requirements have been met by all household members in accordance with Section 4.2. Section 4.1.6 Identification. All members of the household must provide proof of identification, birth documents for each family member, a current driver's license, or equivalent, for copying. Section 4.1.7 Consent/Verification Forms. Authorization and/or signed consent forms to verify or obtain income, assets, tenant history, background checks (including criminal) and credit reports for all household members over the age of 18. All household members who authorize release of information or background checks have the right to privacy in accordance with federal law. Section 4.1.8 Application Fee. One $30.00 non-refundable application fee is required for each Applicant except as provided in that certain Stipulation for Entry of Judgment, Riverside County Superior Court Case No. INDIO 51124. Section 4.1.9 Other Information. Any other information deemed necessary by the Authority to determine eligibility. Management and Operations— Rental Units Effective 7-1-08 14 Administrative Plan Section 4 Applications and Household Qualifications Section 4.2 APPLICANT LEASE REQUIREMENTS. The following lease requirements will apply to all members of Interested Households, Wait List Eligible Households, and Applicants: Section 4.2.1 Age Requirements. Lease holder(s) must be 18 years or older. All occupants 18 years or older (except for Live-In Aides) must sign the lease for the restricted unit and comply with all requirements of the Plan. Section 4.2.2 Income HistoryNerification. Except for retired persons, Disability Program Participants or other persons receiving similar governmental assistance or lease holder(s) must be employed by current employer for at least one full year or have been employed with prior employer for a minimum of one full year and must provide one month of pay stubs for income verification. Section 4.2.3 Self-Employment. Lease holder(s) that are self-employed must provide copy of previous year's personal tax returns and copies of personal bank statements for the three months prior to date of the lease. Section 4.2.4 Lease Income Requirement. Notwithstanding income requirements in Section 4.3.1 income must be at least 2 '/2 times the rental rate for the restricted unit in order to be considered for occupancy. Section 4.2.5 Rental History. Must provide 1 to 3 years of verifiable rental history from a property management company, real estate company or mortgage company. Private owner history will be accepted only if proof of payment can be furnished, i.e. canceled checks. Section 4.2.6 Credit Requirements. Credit should be in good standing, with no outstanding judgments. Bankruptcies must be re-established for two years with strong employment and rental history. Bankruptcy must not include foreclosure on a home or amounts due from prior apartment rental. Section 4.2.7 Criminal Background. A state and nationwide criminal background check will be conducted for every household member over 18, to ensure that applicants meet minimum criteria in accordance with Exhibit B. The Authority has a zero tolerance policy for drug-related activity and violent criminal activity. Any conviction for criminal, violent behavior or drug activity is grounds for denial. Applications will also be denied for any activity that could prove to be detrimental to the health and safety or right to peaceful enjoyment of the other tenants. Section 4.3 AFFORDABLE QUALIFICATION REQUIREMENTS. All households must meet the affordable qualification requirements listed in this section as well as those requirements listed under the Applicant Lease Requirements section of this Plan in order to become a Qualified Household under this Plan. Section 4.3.1 Household Income Criteria. Households applying for tenancy in a restricted unit must have a household income (not including that of Live-in Aides) of not less than twenty percent (20%) of the AMI and not more than one hundred twenty percent (120%) of the AMI. Household incomes will be categorized as very low, low, or moderate pursuant to the definitions applied herein. Management and Operations- Rental Units Effective 7-1-08 15 Administrative Plan Section 4 Applications and Household Qualifications Section 4.3.2 No Ownership in Real Property or Mobilehomes. No intended occupant of the restricted unit may have owned real property that includes a habitable dwelling unit within the last two years. The only allowable exception is where the applicant has filed court documents for dissolution of marriage or legal separation. Proof of the courts disposition as to the habitable dwelling unit will be required upon receipt by applicant. Proceeds from the sale of real property will be considered as part of the household's income pursuant to Title 25. Section 4.3.3 Certification And Recertification Of Eligibility. Applicants and/or Tenants must agree to provide the documentation prior to lease signing and again prior to lease renewal to certify that the tenant household is eligible within these guidelines. Section 4.3.4 Proof Of Income. Proof of income is required of all occupants over the age of 18 (except for Live-In Aides]. Section 4.3.5 Changes In Income. Applicants and existing tenants must agree to notify management of any changes in income of more than 25% of certified income. Section 4.3.6 Primary Residence Requirement. Applicant must agree that the restricted unit will be the primary and sole residence of all occupants listed on the lease agreement. Section 4.3.7 Other Housing Assistance. Any intended occupants or households receiving other housing assistance must disclose the source and amount at time of application or immediately upon receipt of such assistance whichever occurs first. Tenant rent will be adjusted accordingly. Households covered by this section will follow the same policies and procedures to be placed on the wait list of affordable housing. Households covered by this section will be qualified based on the affordable criteria of the assistance provider but will be subject to the remainder of the Plan including Sections 5 and 6. Section 4.4 CREDIT CHECKS, BACKGROUND CHECKS, AND DOCUMENTATION VERIFICATIONS. Subject to the requirements of this Section, all household members over the age of 18 will be required to sign the documents below in order for the Manager to complete a review of the requirements of this Section. Section 4.4.1 Applicant Certifications and Verifications: 4.4.1.a. Authorization for Release of Information Form; 4.4.1.b. Application and/or Tenant Income Certification; 4.4.1.c. Certification that all prospective household members over the age of 18 have read and understand the eligibility requirements in this Plan; 4.4.1.d. Certification that all information is true and complete, that all changes in income and/or household composition will be reported, that all relevant prior housing assistance has been reported, and that the restricted unit will not be a duplicate residence, and acknowledging the potential for criminal and administration actions for false information; Management and Operations- Rental Units Effective 7-1-08 16 Administrative Plan Section 4 Applications and Household Qualifications 4.4.1.e. Release of information at current or prior addresses for rental verification(s); 4.4.1.f Certification that no child support income is received or, for those who have an open case with Riverside County Child Support Services, certifying that all income from Child Support has been disclosed; 4.4.1.q. Verification that all Alimony/Family Support has been disclosed, when applicable; and 4.4.1.h And any other certification or verification form deemed necessary by the Manager to satisfy a requirement of this Plan. Section 4.4.2 Credit reports and background checks will be obtained for every family member aged 18 years or older in accordance with Exhibit B. Information provided in such reports will be used in determining eligibility for a restricted unit and any one or more of the following findings for any of the intended occupants will result in the denial of the rental application or continued tenancy: 4.4.2.a Amounts owed to any Public Housing Authority, Federal, State or Local housing assistance program. 4.4.2.b Fraud in connection with any Public Housing Authority, Federal, State, or Local housing assistance program. 4.4.2.c An eviction from any Agency property, Authority property, Public Housing Authority, a housing unit deemed `affordable' in the City, or property by which the Agency, Authority or Public Housing Authority has or had control at the time of tenancy. 4.4.2.d An eviction from any rental housing. 4.4.2.e Any conviction for activity that would be a violation of the crime- free, drug-free housing policy of the Manager. 4.4.2.f A person who is subject to a lifetime registration requirement under a Federal, State or County sex offenders' registration program. Due to the location of restricted units near schools and playgrounds, a person subject to a registration requirement for a stated period of time will be denied during such registration period. 4.4.2.q Falsification of identification (includes but is not limited to: birth certificates, government issued identification or documents, identification cards or licenses, social security numbers or cards). 4.4.2.h Falsification or concealment of income, assets or documentation for the purpose of obtaining assistance. 4.4.2.i False statements or willful omissions made at any time during eligibility, qualification, the application process, or subsequent leasing and tenancy for the purpose of obtaining assistance. Management and Operations- Rental Units Effective 7-1-08 17 Administrative Plan Section 4 Applications and Household Qualifications Section 4.5 ADDITIONAL DOCUMENT SUBMITTAL. Once the application has been submitted, any additional documents required by the Manager, must be submitted within ten (10) days or ten (10) days from the date the additional documents were requested whichever is later. If the Eligible Household is unable to obtain documents within specified time frame, an extension of ten (10) days may be requested. Failure of the household to provide, obtain or authorize necessary documentation or background checks will be cause for the application to be denied. After a denial pursuant to this section, the household would be required to contact the property manager and request that it be added to the bottom of the appropriate waiting list as an Interested Household. Section 4.6 APPLICATION ACCURACY. All information in the completed application is required to be as accurate as possible to prevent any discrepancies and/or cause a denial of application. This includes any requirements in this Section or the Plan. Section 4.7 APPLICATION APPROVAL/DENIAL. Upon receipt of a completed application, the Manager will process the application including verifications of income(s), assets, tenant histories, background checks and credit reports. Upon satisfactory review of all documentation required by this Section, the Applicant will be notified via mail of approval for tenancy. If the application is approved, the household shall be deemed a Qualified Household. If the application is denied, the applicant shall receive written notice of ineligibility including the reasons for the denial, and shall have the right to appeal through the Grievance process in accordance with Section 8. Management and Operations—Rental Units Effective 7-1-08 18 Administrative Plan Section 5 Leasing Policies and Procedures Section 5. LEASING POLICIES AND PROCEDURES The Authority operates the restricted units with leasing standards that will ensure the continued success of our affordable programs as well as comply with fair housing laws. The Authority and its representatives, including management company personnel, will not discriminate against any person on the basis of race, creed, color, sex, religion, national origin, familial status, sexual orientation, political beliefs, disability or handicap. Prior to admission into a unit, all adult household members that will be residing in the unit must sign a lease. Section 5.1 RESIDENTIAL LEASE AND ADDENDUMS. Once an Applicant becomes a Qualified Household, a residential lease will be signed by the household members required under Section 4. The residential lease may include addendums that satisfy the requirements of this Section and will be considered a part of the residential lease. No tenant will occupy a unit without an executed residential lease. Only at such time as the lease is fully executed will it become enforceable. The residential lease will include the following information: Section 5.1.1 Effective Dates or Term of the Lease Section 5.1.2 Parties to the Lease: all occupants listed and designated as adults or minors Section 5.1.3 The unit location or apartment number Section 5.1.4 The maximum occupancy Section 5.1.5 The terms including but not limited to: the rental rate and date due, late charges, returned check charges, methods of payments, location where rental payments are accepted, prorations, deposit requirements and allowable uses, cable cost, gate access, utility payment requirements or adjustments, assigned parking space designations and any rent incentives in effect. Section 5.1.6 The policies of the property as updated from time to time, also known as the House Rules and Regulations, will include but not be limited to: Noise Personal property responsibility Waterbeds Liabilities Housekeeping Crime/drug free housing Plumbing Use of patio/balconies Damage Appliance agreements Vehicles and vehicle parking Satellite dish and/or antennas Security Pet or Companion Animal Policy Lockout policy Absences from the restricted unit in Guest and Visitor occupancies excess of three(3)weeks including Amenity Area guidelines vacations, military duty, medical Apartment condition,alterations, conditions or to care for a family and damages member not residing at the unit Subletting,Assigning, Subleasing due to serious illness Unit inspections Management and Operations—Rental Units Effective 7-1-08 19 Administrative Plan Section 5 Leasing Policies and Procedures Tenants and all members of the household over the age of 18 will be required to acknowledge receipt of such Rules. The Manager will notify tenants of any violations of property rules, regulations and all other violations of tenant leases in writing, and where applicable noticed in accordance with applicable law covering such a violation. Section 5.1.7 The policies and regulations regarding notices for vacating. Section 5.1.8 The policies with regard to condemnation. Section 5.1.9 The policies regarding attorney's fees and costs. Section 5.1.10 Notice of applicable laws, i.e., Megan's law, Lead-Based Paint, Mold, etc. Section 5.1.11 Policies imposed as a part of participating in the Authority's affordable housing program, if applicable (i.e., annual recertification requirements). Section 5.1.12 Policies on Maintenance and entry to restricted units, smoke detector/alarm responsibilities, and definitions of normal wear and tear. Section 5.1.13 Policies on Standard Maintenance and Emergency Repairs. Section 5.1.14 Policies on Insurance for Renters and Personal Property. Section 5.1.15 Signatures of Tenant (and all members required to sign) and Owner or Owner's Agent. Section 5.2 LEASE DEPOSITS. Balance of deposit, move-in prorates and the first full month of rent must be in the form of a money order or cashier's check. Section 5.3 LEASE PAYMENTS AND LATE CHARGES. All payments for rent and late charges will be paid at a location slated in the Residential Lease. Section 5.3.1 Rent is Due on the 1st of each month. Section 5.3.2 Rent is late after the close of business on the 5th at 5:00 p.m. PST unless otherwise provided in the lease agreement. Section 5.3.3 Late fees will be imposed at 5:01 p.m. PST on the 5th of each month. Section 5.3.4 All payments of rent, late charges, attorneys fees, cable or any other payments made to management offices are to be made by personal check*, money order, or cashier's checks directly to the management office. NO CASH Management and Operations— Rental Units Effective 7-1-08 20 Administrative Plan Section 5 Leasing Policies and Procedures PAYMENTS FOR RENT WILL BE ACCEPTED except for a Three (3) Day Pay or Quit payment. Section 5.3.5 Payments will be accepted at the location stated in the residential lease, unless notified in writing by the Manager of an alternate acceptable location ten (10) days prior to rent due date. *Personal checks will be accepted so long as there have been no checks returned for non-sufficient funds in the previous 12 months. Section 5.4 LEASE AMENDMENTS. All amendments to leases must be in writing and signed by both parties. Oral agreements or modifications will not be enforceable and shall be void unless written and signed by both parties at the time of agreement. Section 5.5 LEASE MODIFICATIONS. Lease modifications will be made to the residential lease form as necessary to accommodate any changes of the affordable program, clarification to policies or applicable laws. Section 5.6 PRE-OCCUPANCY INSPECTION. An authorized representative of the Manager and an adult member of the household will inspect premises prior to commencement of occupancy. A move-in inspection form indicating conditions of premises will be made, signed, and filed in applicant file. Section 5.7 RENTAL RATES Section 5.7.1 Setting Rental Rates. Rents will be established annually as set forth in Resolution No. HA-32 adopted August 24, 2006, "Procedure for Setting Rental Rates". Section 5.7.2 Rental Rents Based on Standard Occupancy. Rents will be established pursuant to California Law Health and Safety Code Section 50052.5 as it relates to standardized occupancy based on unit size, which is one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit. Actual occupancies of each unit will be in accordance with Resolution HA-22. Section 5.7.3 Household Rent. Individual household rent shall be established after compilation of all household members' sources of incomes, assets and allowable deductions, and proper notification. Section 5.8 MAINTENANCE AND ENTRY TO RESTRICTED UNITS Section 5.8.1 Inspection The Manager or its agent or agents shall be allowed to enter the apartment as provided by state law. Upon 24-hour notice, the Manager may enter to inspect the condition of the premises and/or appliances therein. In the event of Management and Operations- Rental Units Effective 7-1-08 21 Administrative Plan Section 5 Leasing Policies and Procedures an emergency, an authorized representative of the Manager has the right to enter the restricted unit without notice. Section 5.8.2 Service Request It is the Tenant's responsibility to call in all service requests to the property office location. Tenants must allow maintenance staff permission to enter the restricted unit to perform a maintenance request in the event the Tenant is not home or schedule an appointment during the maintenance hours Monday through Friday, between 9:00 a.m. and 5:00 p.m. All service request response will be within a 24-hour period. Section 5.9 LEASE RENEWALS Leases under consideration for renewal by the Manager must be renewed prior to the stated expiration of the residential lease or the tenant reverts to a month-to-month tenancy at the maximum rental rate for the restricted unit. Leases under consideration for renewal by the Manager for tenants that were previously deemed a Qualified Household must recertify their eligibility status annually in accordance with Section 6 below. Section 5.10 NO SUBLETTING The leases shall prohibit subleasing of restricted units in whole or in part. Section 5.11 LIVE-IN AIDES A Live-In Aide will be allowed, provided he or she is essential to the care and well-being of an elderly or disabled person who resides within a restricted unit. The Live-In Aide will be subject to this Plan except where noted and will be required to sign a consent for the purposes of a background check, proof of qualification, and proof of employment as a live-in aide. The Live-In Aide will also acknowledge acceptance of the terms of occupancy in a restricted unit. The addition of a Live-In Aide must not overcrowd the unit as prescribed in the Occupancy Standards Resolution 484 and HA 22. Section 5.12 PETS The leases shall require tenants to comply with the pet policy attached as Exhibit D. Management and Operations— Rental Units Effective 7-1-08 22 Administrative Plan Section 6 Recertification Requirements Section 6. RECERTIFICATION REQUIREMENTS Section 6.1 REQUIRED ANNUAL RECERTIFICATION. Qualified Households with a current lease will be required to recertify annually to ensure the household remains a Qualified Household. Failure to recertify will result in the termination of tenancy. Section 6.1.1 Recertification Appointments. The Manager will set appointments with the tenant to bring in the necessary documentation for income and household recertification. Manager will set the appointment with the tenant in advance of the lease renewal date so as to give proper notice to the tenants of any rental rate adjustment. A tenant that does not commit to an appointment with the Manager, does not show up for an appointment, or does not provide all the proper documentation will be given notice of discontinuation of assistance and return to the maximum rental rate at the end of the lease term, but no later than 90 days from the date of the request for the appointment by Manager. Section 6.1.2 Recertification Documentation. The Manager will request the necessary documentation for the purpose of recertifying the household as a Qualified Household, including but not limited to: Section 6.1.2.a Income information for all household members over the age of 18 (except for Live-In Aides), which includes but is not limited to tax returns, pay stubs, bank statements, unemployment earnings statements, and disability or social security earnings statements. Section 6.1.2.b Asset information for all household members over the age of 18 (except for Live-In Aides), which includes but is not limited to any interest in real property other than a primary residence, savings accounts, stocks, bonds, and other forms of capital investments. Section 6.1.2.c Must provide necessary documentation to verify affordable criteria as listed in Section 4.3 have been met by all household members. Section 6.1.2.d Must provide necessary documentation to verify applicant lease requirements in Section 4.2.1 through 4 have been met by all household members. Section 6.1.2.e All members of the household must provide proof of identification for copying. Section 6.1.2.f Authorization and/or signed consent forms to verify or obtain income, assets, identification and employment information for all household members over the age of 18. All household members who authorize release of information or background checks have the rights to privacy under federal privacy laws. Management and Operations- Rental Units Effective 7-1-08 23 Administrative Plan Section 6 Recertification Requirements Section 6.1.2.g Any other information deemed necessary by the Authority to determine eligibility. Section 6.1.3 Annual Recertification Confirmation as a Qualified Household. Upon receipt of all required recertification documentation required by this section, the Manager will confirm that based on the documentation provided by the household that the household remains qualified. In the event the household's income requires that the income category of the household be changed in either direction, the Manager will adjust the terms of the new lease to reflect the change in income category. (The Manager will re-lease restricted units according to the income by Unit Allocation through vacancies to accommodate the change in income of households during recertification.) In the event that a household no longer can be deemed a qualified household after recertification, the tenant will revert to a month-to-month tenancy at the maximum rental rate for the restricted unit for a period of not more than six (6) months at which time, with proper Notices having been given, will vacate. Section 6.2 CIRCUMSTANTIAL OR INTERIM RECERTIFICATION. A circumstantial or interim recertification may be conducted on a case-by-case basis when deemed necessary, by Manager but only once during the term of an executed lease. Such recertification would initiate a new anniversary date for the revised or amended lease. This review may occur for either of the following reasons: Section 6.2.1 Changes in Household Size. Any increase or decrease in household size. Section 6.2.2 Change of Household Income. Any increase or decrease in household income in excess of twenty-five (25) percent. Section 6.3 TEMPORARY RECERTIFICATION. Recertification may be done on a monthly or quarterly basis upon declaration by a Tenant that the household income has temporarily decreased due to unemployment or disability. Proof of unemployment or disability will be required. Section 6.4 ANNUAL INSPECTIONS. At least once annually, an inspection will be conducted by the Manager to verify that the tenants occupying the restricted unit have maintained the unit in good condition. Such inspections will be by appointment, but may or may not require the tenant to be present. Section 6.5 FALSE STATEMENTS AND WILLFUL OMISSIONS. False statements or willful omissions made during the recertification process may result in denial of assistance or in the recapture by the Authority of the rental assistance for the previous 12-month period. Management and Operations—Rental Units Effective 7-1-08 24 Administrative Plan Section 7 Termination of Tenancies and Move-Out Procedures Section 7 TERMINATION OF TENANCIES AND MOVE-OUT PROCEDURES Section 7.1 TERMINATION OF TENANCIES OTHER THAN BY EVICTION. The procedures noted in this Section 7.1 do not apply to evictions. Section 7.1.1 End of Lease Term. With proper notice, as described in this section, the Manager or Tenant may terminate a tenancy at the expiration of the residential lease without reason or cause. Section 7.1.2 During a Lease Term. A tenancy may be terminated during a lease term without the termination being deemed an eviction under the following circumstances: Section 7.1.2.a Death of the sole tenant of a unit. Section 7.1.2.b By abandonment of the premises by the tenant as determined in accordance with Civil Code section 1951.3. Section 7.1.2.c By the determination by the Manager of tenant ineligibility under this Plan. Section 7.1.2.d By agreement of both the Manager and the tenant. Section 7.1.3 Notices to Vacate for Termination of Tenancies Other Than by Eviction. All notices will be given as provided for under California law. Section 7.1.3a Tenant Notices to Vacate. Tenants providing a written "Notice of Intent to Vacate", the manager must give 30 days written notice to the Manager or as prescribed by current law, or as such law may be amended from time to time. Section 7.1.3b Management Notices to Vacate. When the Manager provides a written "Notice of Termination of Tenancy", the Manager must give a 30, 60, or 90-day notice to the tenant in accordance with applicable law. Under California law, notices provided at the end of the lease term do not require reason or cause. Section 7.1.4 Move-out Procedures. At such time as a tenant or Manager provides a Notice to Vacate as detailed in this section, inspections may be requested and will be conducted in accordance with CC §1950.5(f) as amended from time to time. Section 7.1.4a Notice of Option to Request an Initial Inspection. Tenants may request an initial inspection of their unit upon providing a 30-day vacating notice to the Manager. All pre-inspections must be requested in writing by the tenant, otherwise the Manager will not conduct one. Tenants may be present during any of the inspections; however, the inspections may take place in the absence of the tenant. Management and Operations— Rental Units Effective 7-1-08 25 Administrative Plan Section 7 Termination of Tenancies and Move-Out Procedures Section 7.1.4b Scheduling the Initial Move-out Inspection. A mutually agreeable time and date will be attempted to schedule the initial inspection. It will not be scheduled more than two weeks prior to the tenant vacating or the end of the lease date. Scheduling should allow tenant ample time to perform repairs and/or cleaning enumerated during the initial inspection. The Manager will give tenant at least 48 hours notice of initial inspection. Section 7.1.4c Opting Out of a Pre-Inspection. If the tenant does not request a pre-inspection, the Manager will not conduct one. Upon the tenant vacating, the Unit will be inspected to determine the work necessary to prepare the unit to market and re-lease. Tenants are strongly encouraged to request an initial inspection. Section 7.1.4d Inspection Exceptions. The Manager is not required to perform an initial inspection if the tenant has been served with any form of eviction notice because the tenant has failed to pay the rent, violated a provision of the lease or the rental agreement, materially damaged the property, committed nuisance, or used the property for an unlawful purpose. Section 7.1.4e Inspection Findings. All corrections identified during any pre-inspection or final inspection will be noted and a copy will be provided to the tenant as an itemized statement specifying the repairs or cleaning that will be the basis for deductions to the security deposit. Deductions cannot be taken for conditions caused by normal wear and tear during tenancy or previous tenancies, or for cleaning rental unit that is as clean as it was when the existing tenant moved in. Section 7.1.4f Final Inspection. A final inspection will be scheduled at the time of move-out. The final inspection will be made to note any remaining items not addressed by the Tenant that are still in need of repair. Section 7.1.5 Maintenance and Repairs Necessary Due to Impending Move-out. Any corrections identified during an initial move-out inspection and noted on the itemized statement may be corrected by the tenant by performing any required maintenance as permitted during the period following the initial move-out inspection through the termination of the tenancy in order to avoid deductions from the security deposit. The tenant may not perform any repairs that are prohibited by the rental agreement or lease. Section 7.2 TERMINATION OF TENANCY THROUGH EVICTION. This Section 7.2 covers eviction policies and reasons for commencing eviction proceedings. Section 7.2.1 Reasons for Eviction. Section 7.2.1 a Violations of the Lease. Violations of any of the lease terms may result in termination of the lease and eviction. These include but are not limited to, violations of the crime-free, drug-free housing policy, disruptions of the peaceful enjoyment of other residents in the community, any health and safety condition Management and Operations— Rental Units Effective 7-1-08 26 Administrative Plan Section 7 Termination of Tenancies and Move-Out Procedures caused by the tenant, the nature of which jeopardizes the other residents of the community. Section 7.2.1 b Non-Payment of Rent. Processes for non-payment of rent and the procedures for filing an unlawful detainer will follow the procedures as outlined in the California Code of Civil Procedures and the California Civil Code. Section 7.2.1 c Misrepresentation of Eligibility Under the Plan. False statements or willful omissions made for the purposes of obtaining or retaining a restricted unit. Section 7.2.2 Eviction Process. Section 7.2.2a Eviction Notice. Once it has been determined that the Manager will proceed with an eviction, the Manager will serve the tenant with a notice to voluntarily vacate the rental unit within the specified time period. Section 7.2.2b Verification of Occupancy. After the tenant's Eviction Notice expires, the Manager will attempt to verify occupancy. If the restricted unit is still occupied and no arrangements have been made to vacate, proceedings for a court ordered eviction will commence. If the tenant has vacated, but has an outstanding balance due for the tenancy or unit repairs and the security deposit is insufficient to cover such costs, the Manager will attempt to collect for the balance due and use any remedies available including court action. In the event there are sufficient monies available within the security deposit to cover any amounts due from the tenant, the deductions and/or refunds shall be made to the security deposit in accordance with CC § 1950.5 as amended from time to time. Section 7.2.2c Unlawful Detainer. An unlawful detainer will be filed with the superior court in accordance with California law. This assures the tenant the right to a court hearing if the tenant believes that the Manager has no right to evict the tenant. Section 7.3 REFUND OF SECURITY DEPOSIT. Security deposit refunds will be processed in accordance with CC §1950.5 as amended from time to time. Section 7.3.1 Notification of Itemized Security Deposit Disposition. After inspection and assessment of the conditions of the vacated unit, and after completing repairs or receiving the invoice/receipt, the Manager will notify the tenant of the security deposit disposition within ninety(90) days. The Manager will mail or deliver a copy of an itemized statement indicating the detailed charges against the security received and the amount to be refunded, if any. Attached to the itemized statement to the tenant shall be copies of invoices and charges incurred in order to clean or repair the unit. Section 7.3.2 Tenant's Entitlement to Security Deposit. If tenant is not notified as to the disposition of the security deposit within the required notification period in Section 7.3.1, the tenant shall be entitled to one hundred percent (100%) of the original security deposit amount. Management and Operations— Rental Units Effective 7-1-08 27 Administrative Plan Section 8 Grievance Process Section 8 GRIEVANCE PROCESS Section 8.1 GRIEVANCE APPLICABILITY. This grievance procedure shall be applicable to any Applicants and tenants of the Authority. Grievances that may be considered under these procedures will include actions related to tenancy matters, but not including non- payment of rent and other the matters governed by Section 7.2. Under no circumstance may a Grievance be filed after issuance of any notice in accordance with Section 7.2.2. A copy of this grievance policy shall be provided to all Tenants. Section 8.2 GRIEVANCES. The tenant grievance process is not intended to replace the normal interactions that will occur between tenants and the Manager, and is not intended to be used prior to an issue first being raised with the Property Manager. Only when a tenant has made all attempts to resolve a complaint may a complainant seek the following remedies outlined in this process. Section 8.2.1 Informal Grievance. Any grievance shall be presented to the Property Manager either orally or in writing, within thirty (30) days after the grievance arose so that the grievance may be discussed informally and hopefully resolved. Section 8.2.1.a. The Property Manager shall meet with the complainant within twenty-four (24) hours if possible, at which time the complainant may present oral and written evidence or documentation. A written summary of this discussion, the decision and the reasons for the decision will be prepared by the Property Manager within five (5) days and a copy will be provided to the complainant, with a copy to be filed in the complainant's file. The summary will include a decision and any steps that will be necessary to resolve any grievances. Section 8.2.1.b. If not resolved by Property Manager, Regional Supervisor to meet with resident within seven (7) days of meeting with Property Manager, at which time the complainant may present oral and written evidence or documentation. Summary of the Regional Supervisor's decision and the reasons therefor to be put in writing within five (5) days, copy to file and complainant. Section 8.2.1.c. If not resolved by Regional Supervisor, Vice-President to meet with complainant within fourteen (14) days of meeting with Regional Supervisor, at which time the complainant may present oral and written evidence or documentation. Summary of the Vice-President's decision and the reasons therefor to be put in writing within ten (10) days, copy to file and complainant. Section 8.2.2 Informal Hearing. If the complainant is not satisfied with the Vice- President's decision, the complainant must submit a written request within ten (10) calendar days after receipt of the summary from the Vice-President, at which time the Management Company will arrange for an impartial, third party mediation service to hear the matter within twenty-one (21) days. The complainant will be afforded fair due Management and Operations—Rental Units Effective 7-1-08 28 Administrative Plan Section 8 Grievance Process process safeguards as prescribed by Fair Housing Laws, including but not limited to the rights to present oral and written evidence and to be represented by an attorney. Summary of the decision of mediation service to be provided to complainant and a copy to the Authority. Section 8.2.3 Unresolved Grievances. If the complainant is not satisfied with the outcome of the process in Section 8.2.1 through 8.2.2, he or she may submit a written request to the Executive Director within ten (10) calendar days after receipt of the summary from the Mediator. The Executive Director shall review the request within ten (10) days and determine whether the decision should stand, be revised or reviewed further. The Executive Director shall be the final authority for purpose of interpretation of the requirements of the Program, upon a written request for interpretation. Management and Operations- Rental Units Effective 7-1-08 29 Administrative Plan Exhibit A EXHIBIT A PALM DESERT HOUSING AUTHORITY PROPERTIES MULTI-FAMILY APARTMENTS # Units Telephone ONE QUAIL PLACE 384 (760) 568-9835 72-600 Fred Waring Drive DESERT POINTE 64 (760) 340-6945 43-805 Monterey Avenue NEIGHBORS 24 73-535 Santa Rosa Way (760) 836-1455 TAOS PALMS 16 44-830 Las Palmas Avenue (760) 340-6945 CALIFORNIA VILLAS 141 (760) 345-0452 77-107 California Drive LAGUNA PALMS 48 (760) 836-1455 73-875 Santa Rosa Way COUNTRY VILLAGE 66 (760) 568-9835 42-455 Washington Street PALM VILLAGE 36 73-650 Santa Rosa Way (760) 836-1455 SAGE CREST 73-775 Santa Rosa Way/44-200 San Pascual 14 (760) 674-1139 SENIOR APARTMENTS LAS SERENAS 150 (760) 773-9040 73-315 Country Club Drive THE PUEBLOS 15 73-695 Santa Rosa Way (760) 568-3640 PUEBLOS EAST 4 73-697 Santa Rosa Way (760) 568-3640 CATALINA GARDENS 72 (760) 568-3640 73-600 Catalina Way CANDLEWOOD 30 (760) 568-3640 74000 - 74002 Shadow Mountain Drive LA ROCCA VILLAS 27 (760) 773-9040 42-135 Golden Eagle Lane Management and Operations—Rental Units Effective 7-1-08 30 Administrative Plan Exhibit B EXHIBIT B NON-EXCLUSIVE LIST OF REQUIRED AND PERMISSIVE BACKGROUND CHECK INFORMATION BY TYPE OF FUNDING SOURCE OF INFORMATION FEDERAL FUNDS INVOLVED FEDERAL FUNDS NOT INVOLVED INFO INVESTIGATION DISCLOSURE & INVESTIGATION DISCLOSURE & CONSENT CONSENT Law Illegal Drug Use Required Housing Auth. May obtain Must notify enforcement must require & applicant, if agencies applicant must basis for denial consent Drug Use that Interferes with Required Housing Auth. May obtain Must notify Health&Safety of Others must require & applicant, if applicant must basis for denial consent Sex Offenses Required Housing Auth. May obtain Must notify must require & applicant, if applicant must basis for denial consent "Serious"crimes May obtain Must notify May obtain Must notify • murder, mayhem, applicant, if applicant, if rape,burglary basis for basis for denial • hate crimes denial • offenses re firearms/ explosives • felonies involving drugs,alcohol • domestic violence Juvenile Records Prohibited N/A Prohibited N/A Arrests Not Resulting in Prohibited N/A Prohibited N/A Conviction State / Social Security Numbers Required Housing Auth. May Obtain Application Federal must require & must indicate Government applicant must disclosure is consent voluntary Citizenship/Residency Info Required Housing Auth. Prohibited N/A. But, if must require & Housing Auth. applicant must Has unsolicited consent evidence that applicant is undocumented, it must reject the application Income /family composition & Required Housing Auth. Required Housing Auth. tax info,to verify eligibility must require & must require & applicant must applicant must consent consent Credit Investigative Consumer Report May Obtain Housing May Obtain Housing Agencies • Credit History Authority must Authority must • Character notify applicant notify applicant • Reputation • Personal characteristics • Mode of living • Convictions May Obtain, Housing May Obtain, Housing • Civil Actions but only if Authority must but only if Authority must • Tax Liens credit agency notify applicant credit agency notify applicant • Outstanding has verified has verified Judgments info within info within 30d of 30d of disclosure disclosure Management and Operations—Rental Units Effective 7-1-08 31 Administrative Plan Exhibit B SOURCE OF INFORMATION FEDERAL FUNDS INVOLVED FEDERAL FUNDS NOT INVOLVED INFO INVESTIGATION DISCLOSURE & INVESTIGATION DISCLOSURE & CONSENT CONSENT • Bankruptcies more Prohibited N/A Prohibited N/A than 10y prior • Civil judgments more than 7y old Public Relevant background May Obtain Must notify May Obtain Must notify Records information applicant, if applicant, if Obtained • Creditworthiness basis for basis for From Other • Credit standing denial. denial. Sources; • Credit capacity Consent Consent Interviews • Civil actions recommended. recommended. with • Convictions Neighbors, Tax Liens Friends & • Outstanding Associates Judgments • Character • General Reputation • Personal characteristics • Mode of Living In addition to credit reporting agencies, background check information may be obtained from Westlaw, Lexis, DataQuick, Merlin, Choice Point, and similar reputable resources. Management and Operations- Rental Units Effective 7-1-08 32 . Administrative Plan Exhibit C EXHIBIT C RCHA EAST RIVERSIDE COUNTY UTILITY ALLOWANCES Housing Authority of the County of Riverside Housing Allowances for Tenant Furnished Utilities and Other Services Effective: 07/05/2007 Locality: East County Dwelling Unit Size OBR I 1BR 2BR I 3BR 4BR 5BR I 6BR Heat GAS/PROPANE $14 $20 $26 $31 $40 $46 $51 ELECTRIC $27 $37 $48 $59 $75 $85 $96 Air Conditioning $7 $10 $13 $16 $20 $23 $26 Blower (Evap Cooler/Heat Exchanger) $1 $2 $2 $3 $4 $4 $5 Cooking GAS/PROPANE $2 I $3 $4 I $5 $6 $7 I $8 ELECTRIC $5 $6 $8 $10 $13 $15 $16 Other Electric(Lighting and Refrigeration) $12 $14 $18 $22 $28 $32 $36 Water Heating GAS/PROPANE $6 $9 $11 $13 $17 $20 $22 ELECTRIC $13 $18 $23 $29 $36 $42 $47 Water Service- Domestic Use $14 $20 $25 $31 $39 $45 $51 Water Service- Evap/Swamp Cooler $11 $15 $19 $23 $30 $34 $38 Sewer $20 $20 $20 $20 $20 $20 $20 Trash $21 $21 $21 $21 $21 $21 $21 Refrigerator (if supplied by Tenant) $4 $4 $4 $4 $4 $4 $4 Stove/Range (if supplied by Tenant) $4 I $4 $4 I $4 $4 I $4 I $4 This chart is current from 07/05/2007 through 06/30/2008. Deanna Lorson, Managing Director Management and Operations—Rental Units Effective 7-1-08 33 Administrative Plan Exhibit D EXHIBIT D PET POLICY PURPOSE Section 1 Permitted Pets Section 1.1. Elderly Households are allowed to keep common household pets in their restricted unit in accordance with this Pet Policy, including one cat or one dog, or either one or two birds, or fish in an aquarium. All pets must be registered with the Manager before being brought onto the premises, and registration must be updated each year at annual re- examination. Section 1.2. Tenants with a Disability may keep a service or companion animal in accordance with applicable disability laws. All service animals need to wear identifying gear such as tags, harnesses, or capes when outside of the restricted unit. Section 1.3. No vicious or intimidating animal or pet is to be kept on the premises (this includes any animal whose bite is venomous or any animal that has previously bitten anyone). Section 2 Required Fees and Payments Section 2.1. The tenant will be responsible for all reasonable expenses directly related to the presence of the animal or pet on the premises, including the cost of repairs and replacement in the restricted unit, and the cost of animal care facilities if needed. These charges are due and payable within 30 days of written notification. Section 2.3 Service animals will not be charged a pet deposit, but the Tenant is liable for any damage caused by the animal. Section 2.4. For other animals, the Authority will charge a refundable pet deposit of $200 for each pet. Section 2.5. The Authority will refund the unused portion of the deposit to the tenant within a reasonable time after the tenant moves from the property, or no longer owns or has a pet present in the tenant's restricted unit, if the tenant no longer has the pet, an inspection of the unit must be done to provide evidence that there is no damage to the restricted unit caused by the pet. Section 3 Limitations Section 3.1. Authority's authorization for pet(s)will be given on a year-by-year basis. Section 3.2. Except for service animals, no pet will be allowed if weight exceeds 25 pounds. The 25-pound limit is for the expected adult weight of the animal. Management and Operations— Rental Units Effective 7-1-08 34 Administrative Plan Exhibit D Section 3.3. Fish aquariums must not exceed 15 gallons of water. Section 3.4. All pets must be effectively restrained and under the control of a responsible person when passing through a common area, from the street to the restricted unit, etc. Dogs must be on a leash at all times when not in the rental unit. Section 4 Registration Section 4.1. Registration in accordance with Section 1.1 must include the following: A certificate signed by a licensed veterinarian stating that the pet has received timely all inoculations currently required by state and local laws; a picture must be provided at time of registration; and the name, address and phone number of person designated responsible for the pet in the tenant's absence. Section 4.2. All animals or pets are to be spayed or neutered. If animals are not spayed or neutered and have offspring, the tenant household is in violation of this rule. Section 5 Sanitation Standards Section 5.1. Any animal or pet waste deposited must be removed immediately by the pet owner. Tenants will take adequate precautions to eliminate any animal or pet odors within or around the restricted unit and maintain the restricted unit in a sanitary condition at all times. Section 5.2. All animals or pets are to be fed inside the restricted unit. Feeding is not allowed on porches, sidewalks, patios or other outside area. Section 6. Potential Problems and Solutions Section 6.1. Tenants will not permit any disturbances by their pet, which interferes with the quiet enjoyment of other tenants; whether by loud barking, howling, biting, scratching, chirping or other such activities. Section 6.2. The Authority may enter the tenant's restricted unit to inspect the premises when circumstances so warrant, to investigate a complaint that there is a violation, and/or to check on a nuisance or threat to health and safety of other tenants. Section 6.3. If the pet is threatened by the incapacitation or death of the owner (or by extreme negligence), and the person designated pursuant to Section 4.1 is unwilling or unable to care for the pet, the Authority may place the pet in proper facility for up to 30 days at the pet owner's expense. If there is no other solution at the end of 30 days, the Authority may donate the pet to a humane society. Cost of this professional care will be borne by the pet owner. Section 6.4. Excluded from the premises are all animals and/or pets not owned by tenants, except for service animals. Management and Operations—Rental Units Effective 7-1-08 35 Administrative Plan Exhibit D Section 6.5. The authorization for a household pet(s) may be revoked at any time subject to the Authority's grievance procedure if the pet becomes destructive or a nuisance to others, or if the tenant fails to comply with this policy. Section 6.6. Violation of this Pet Policy by a Tenant is subject to: Mandatory removal of the pet from the premises within 3 days of notice from the Authority; or if for a threat to health and safety, removal within 24 hours of notice; or Lease termination proceedings. Section 7 Indemnification by Pet Owner Section 7.1. The Tenant shall indemnify, defend and hold harmless the Authority, the Agency and the City from and against any and all claims, actions suits, judgments and demands brought about by actions or damages caused by the Tenant's pet(s), guide animal, hearing animal, assistance animal, seizure response animal, companion animal, or emotional support animal. Any injury or damage to persons or property caused by Tenant's pet(s), guide animal, hearing animal, assistance animal, seizure response animal, companion animal, or emotional support animal shall be the liability of said Tenant. At the Tenant's discretion and expense, Tenant is responsible for securing liability insurance for such purpose. This policy is incorporated by reference into the Lease Agreement signed by the resident, and therefore, violation of the above Policy will be grounds for termination of the lease. Acknowledgement by Tenant Management and Operations—Rental Units Effective 7-1-08 36 Administrative Plan Exhibit E EXHIBIT E Housing Authority Zero Tolerance Policy PURPOSE It is the policy of the Authority that prohibited criminal activity will not be tolerated. "Prohibited criminal activity" includes violent and drug-related criminal activity or any criminal activity that threatens the health, safety or right to peaceful enjoyment of other residents or others in the immediate vicinity in any housing property and/or program administered by the Authority. A copy of this Zero Tolerance Policy shall be made available to all applicants and tenants in Authority-administered programs. POLICY The Authority will foster crime-free housing by implementing aggressive strategies that will reflect a zero tolerance of prohibited criminal activities by enforcing the following actions: 1. Deny or terminate assistance to any household containing a member that is currently engaging in, or has engaged in during a reasonable time before applying (as determined by the Authority): (a) drug-related criminal activity; (b) violent criminal activity; (c) other criminal activity that would threaten the health, safety, or right to peaceful enjoyment of the premises or other residents; or (d) other criminal activity that would threaten the health or safety of any Authority employee, contractor subcontractor or agent of the Authority. 2. Applications will also be denied for any other activity that could prove to be detrimental to the health and safety or right to peaceful enjoyment of the other tenants. 3. Conduct a state and nationwide criminal background check for every household member over 18, to disclose any criminal background information. Any conviction for criminal, violent behavior or drug activity during a reasonable time before applying (as determined by the Authority) is automatic grounds for denial. 4. Alert tenants residing in the Authority owned housing properties about their obligation to keep restricted units free from prohibited criminal activity. 5. Incorporate an addendum to all leases that includes grounds for termination of tenancy due to criminal activity. 6. Provide management with required guidelines for screening potential and existing tenants, inspecting the premises of the property, and taking action against tenants engaged in criminal activity, fraud, or any nuisances. 7. Work collaboratively with law enforcement agencies to assist in the enforcement of the Zero Tolerance Policy, as well as crime patterns and other potential problems. Acknowledgement by Tenant Management and Operations- Rental Units Effective 7-1-08 37 Administrative Plan Exhibit F EXHIBIT F HOUSING AUTHORITY PROPERTIES RESIDENT SERVICES BUILDINGS "HOUSE RULES" GROUP USE PRIORITIES Permission for use of the Housing Authority Properties Resident Services Buildings shall be granted to the following on a first- come/first-served basis, subject to the following priorities. 1. Housing Authority Properties Leasing Office Activities or Meetings. 2. Housing Authority Properties Tenants Activities and Programs organized or approved by the Property Manager(may include daily routine activities). 3. City of Palm Desert, Palm Desert Redevelopment Agency, and Palm Desert Housing Authority meetings or activities. Management and Operations— Rental Units Effective 7-1-08 38 Administrative Plan Exhibit F RESIDENT SERVICES BUILDINGS HOUSE RULES 1. Operations Hours are 8:00 a.m. to 5:00 p.m., Monday through Friday, except City observed Holidays which are as follows: New Year's Day, New Year's Eve, Martin Luther King Jr. Birthday, President's Day, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, and Christmas Day, and Christmas Eve. The Housing Authority Administrator, at his/her discretion, may authorize alternate operating hours from time to time with the proper facility supervision. 2. No disorderly or illegal conduct shall be permitted during any activities or programs offered in or during the use of the Resident Services Buildings. 3. Smoking is prohibited in the Resident Services Buildings and within 40 feet of all entrances or exits. 4. Pets, other than those assisting persons with disabilities, are not permitted on the Resident Services Buildings property. 5. No food or drink is allowed inside the Resident Services Buildings building except during organized functions. 6. No alcoholic beverages or controlled substances of any kind are permitted on the Resident Services Buildings property. 7. The Resident Services Buildings is not responsible for lost or stolen items. It is strongly recommended that items of value not be brought into the building or on the premises. 8. Access to the Community is such that tenants and attendees will be walking through residential communities. Courtesy for the quiet enjoyment of the surrounding residents should be considered at all times. 9. Prior written approval is required from the Property Manager for equipment and services brought in and not directly provided by the Resident Services Buildings. 10.All children under the age of 10 must be accompanied by an adult over the age of 18. *Note: accompany means within close proximity (an arms-distance for example). Youth organizations (ages 11-18) must have one adult to five minors in attendance who shall remain in the Resident Services Buildings for the duration of the activity. Management and Operations— Rental Units Effective 7-1-08 39 Administrative Plan Exhibit F 11.The Resident Services Buildings is provided for in an "as is" condition. "As is" means that the facility user may not remove or displace furniture and/or other fixtures such as tables, chairs, etc. (collectively "fixtures") or add or bring in additional fixtures not already provided, and therefore such fixtures must stay in the same location as originally provided by the Property Manager; decorations on walls, tables and other locations, may not be removed, displaced or covered up in any way. If there are any questions regarding this rule, please contact the Property Manager prior to use of the facility. The Property Manager has the right to inspect the Resident Services Buildings while in use to ensure compliance with this provision. Failure to comply with this provision, the event is subject to immediate cancellation/revocation at the discretion of the Property Manager. 12.Tape, nails, tacks, putty, screws, staples, decals, powders, wax, paint, etc., are not permitted in/on the walls, floors, ceilings or fixtures. Rice, birdseed, confetti, glitter and similar materials may not be thrown inside or outside the facility. No smoke/fog machines are allowed to be used. Music devices may be acceptable, however, prior written approval is required. 13.All users of the facility shall be aware of the maximum occupancy of 104 and enforce that it is not exceeded. Doors must remain unlocked during hours of use. 14. In addition to the House Rules and regulations governing the use of the Resident Services Buildings, all users shall also comply with all applicable local ordinances of the City of Palm Desert and state and federal laws. Failure to comply with said rules may subject a user from entering the premises. 15.Facility users may not list the City of Palm Desert, its Redevelopment Agency, or Housing Authority as a sponsor of the activity and may not list the Resident Services Buildings phone number as the contact in any written materials associated with any event. The Property Manager may require copies of all promotional materials used in conjunction with the use of the facility. Failure to comply with such a request may result in cancellation of the event. 16.Parking is not available on-site. All facility users will be required to make their own provision for parking. 17.All users of facility shall be responsible for cleanup after each meeting. Tables and chairs must be wiped clean after any event. 18.The City of Palm Desert, its Redevelopment Agency, and Housing Authority assumes no legal responsibility and are not liable for personal injuries, thefts or losses of private property while on or using the Resident Services Buildings and associated facilities. 19.Facilities and equipment are to be left in the same condition as they were prior to the event. Management and Operations—Rental Units Effective 7-1-08 40 , Administrative Plan Exhibit F 20.Violation of any of these rules by any user during occupancy shall be sufficient cause for denying further use of the Resident Services Buildings facility to the organization. 26. These House Rules are issued for specific use of the facility and for specific hours and the premises must be vacated as scheduled. 27.Failure to observe any rules, regulations, and ordinances of the City of Palm Desert may be sufficient cause for denying further use of the Resident Services Buildings facility. 28.Fights, vandalism or unacceptable behavior occurring during an event shall cause immediate cancellation of the event. I, the undersigned, acknowledge that I have read all the rules listed above regarding the use of the Resident Services Buildings and agree to abide by such rules and regulations as set forth by the City of Palm Desert Housing Authority. Print Name (Tenant) Signature Date Management and Operations— Rental Units Effective 7-1-08 41 Attachment to White Paper dated March 3, 2008 Administrative Plan rpm rental agreement COMPANY 1. EFFECTIVE DATE AND PARTIES:This agreement was made and entered into this day of 200 between RPM Company agent for (Hereafter called"Owner")and (Hereafter jointly called"Tenant"). Other occupants none. 2. PREMISES:Owner agrees to lease to tenant the premises described as apartment#&parking space# at , ,Ca. 3. OCCUPANCY: The premises shall be used only for residential purposes and not more than persons shall reside there at anytime. 4. TERM AND RENT:The premises are to be occupied by tenant(s)for the term commencing`on':: ,200 ,through 200 at a lease term rate of$ less Utility allowance of$,Net rent$,payable to ,owner,delivered to the Apartment Manager or any of our on-site management staff,at .,apartment manager's office(or such otherplace or 24 hour drop box,where appropriate,as owner shall from time to time designate in writing),during normal office hours o0, without deduction or offset of any kind,in advance and without demand in or before the first day of each calendar month. Management staff carfbe contacted at 760- for any questions or concerns.Tenant shall pay rent for the first full calendar month at the time of exeeiit*gn bf this lease. A. If the term of this lease does not begin on the first of a calendar month or end on the last day of a erilendar month,the rentfor such shall be pro-rated on the basis of a thirty-daymonth. The P Pro-rated rental from the date of move-in ta.tie first day of Me following month is$0,to be paid as move-in monies in the form of a cashier's check or money order. Tenant's right to;possession is expressly contingent upon the prompt payment of rent,and the use of the:.premises by tenant is obtained only by.the condition that rent is paid on time. Owner requires that all rent and other sums due be paidmtt`one monthly check rather thsn°multiple checks. B. Rent is due and payable the first calendar day of each month.Any p$yluepts made after tki.firstare considered late. In the event that the tenant does not provide the rental payment to owntetby the fifth of each month,asr quired,tenant agrees to pay a late charge of$25 on the sixth and an additional$5 00 per each aulisequent day ttf monies outstanding. The maximum penalty not to exceed$8%. The late charge will be applied;When any monies are outstatkiltg at the close of business on the 5a' calendar day of the month. All monies paid after the close of business on the 5t must be p'at`d vstlt either money order or cashier's check. Tenant understands and agrees that a payment of said late charges ih no way constitutes a waiver by owner to any rights that owner has to terminate the tenancy according;to,law. C. Owner agrees to accept,as payment ofee pelt,personal check,money order or cashier's check Should tenant present a check to owner,which does not clear the bank for any reason,tenant mpstitumediately replace the check with either money order or a cashier's check Such payment shall include the$25 00.late charge and eetutried check bank charges of$25.00 per check Tenant must pay any additional or further rent or otherchargea by either moflegorder or cashier's check. Tenant may re-establish payment privileges if all monies due are paid on time for a perto4of twelve consecutive months. No exceptions will be made unless tenant provides the owner w.ttlitt,letter from tenant's bank stting ttrat there was an error on the banks part,which caused the tenant's check to be returned Thus letterfius,t.be an original copy written on banking institution letterhead and signed by a officer of the bank or Savings and Loan;all veri$ab(e.by..tlie owner."'Only upon verification of said letter will the tenant be authorized to pay rent by other than money grder or caslge?s,check The Terms of this rental agreement can be alleged,modified:or supplemented only by a written notice signed by both parties. Any purported oral amendment,modification or'su,pplement shall be void. 5. DEPOSIT: Tenantagi sto,thepaymentoftite'followingdeposits: A. Escrow Deposit In addition to'the sgidrent payments,the lessee agrees to pay the sum of$ ,herein,as a escrow deposit. The said deposit is to beheld by lessor faithftd performance after the terms of this agreement.Further,the said deposit or written statement indicating the disposition;asto be mailed at the termination of the agreement,within 3 weeks of vacating the premise's less any rent,damages to the premises,fixtures or furnishing,reasonable wear and tear excepted and less any other aafnount due under the terms sf this agreement Escrow Deposit may not be used as rent without the management's written ;':consent. B. Pets,Pets of*kg*are prohibited in the common areas. Pets of any kind are prohibited on the premises or in the apartment house g1toutprser aeeilten consent of the owner,which may be revoked at any time,with cause. If tenant plans to acquire or bring a new pet on the premisesa,it shall be reported immediately to the owner who can increase the existing deposit as a condition for owner's permission under this section. Permission is hereby given to resident to maintain the following pet on the premises: Pets name-. Breed Color and Weight Such permiss on is In'consideration of an additional deposit in the amount of$0,subject to deductions for cleaning and repair of pet damages and:less any other amount due under the terms of this agreement. 6. RENTAL INCENTIVE: In the event tenant has received a concession of rent or any other compensation as an inducement to enter into this agreement for a certain lease term,tenant agrees to pay back the incentive prior to tenant vacating the premises if tenant terminates his lease prior to the date of expiration,or defaults before the end of the lease term. The value of this incentive is$O. 7. GUESTS:The written consent of the owner is required prior to the occupancy of the premises by any guests of tenants for continuous periods greater than 72 hours. If approved by owner,such guests must obey the apartment house rules and policies of the owner. Failure by a guest to abide by the rules and policies of owner will result in termination of this rental agreement. 8. APARTMENT HOUSE RULES AND REGULATIONS:Tenant agrees to abide by all written rules now in effect and as such rules may be amended. Such rules are incorporated herein as part of the terms,covenants and conditions of this agreement. In the event of revision of such rules,tenant will be notified by the posting of such revised rules in the office of the manager. These rules,adopted by ,pml l 01/02 pg I of 4 Page 1 of 4 Attachment to White Paper dated March 3, 2008 Administrative Plan • owner,are for your well being as well as that of your fellow residents. Owner,or its agents,reserves the right to take whatever steps may be necessary to enforce such rules and regulations. Any repeated violation of the following rules will be grounds for termination of the rental agreement A. NOISE:Sound equipment should be operated in a way that does not disturb others. This equipment is to include but is not limited to stereos,televisions and motor vehicles. Vocal or instrumental music,typing,pounding or other noise is prohibited if the sound penetrates into other apartments. Loud noise,boisterous play,running on stairs and slamming of doors are prohibited. These rules are in effect at all hours,however,the hours of 9:00 p.m.to 9:00 a.m.are considered quiet hours when any noise may be particularly disturbing to others. B. WATERBEDS: Waterbeds are not allowed in the apartment unless written approval has been given by the owner and the tenant has secured insurance coverage to protect against risk of loss or damage to the premises as the result of use of the waterbed on the premises. Tenant agrees to provide owner with a copy of the required insurance coverage prior to the installation of any waterbed. INSURANCE REQUIRED:YES❑ NO® INITIALS PROOF PROVIDED DATE C. HOUSEKEEPING:Tenant is responsible for maintaining cleanliness on the patio area as well as entryway. House cleaning that might disturb others should be done during normal waking hours 9:00 am.to 9:00 p,iu House cleaning may include, but is not limited to,vacuuming and operating other major appliances such as dishwasher,washeror dryer. Tenant may not store garbage or items not intended for exterior exposure on patio and the entryways are not for the ptirpose of storage. D. PLUMBING:ALL PLUMBING STOPPAGE IS THE RESPONSIBILITY OF.t_ TENANT. Put grease drippings in a container and deposit in the trash bin. The"insinkerator"in the kitchen sink is not A'i garbage"disposal,rather.it is an aid to the disposition of small food particles. Do not put fibrous or solid items in the insinkerator.'•To.:not put unsuitable items in toilets. Unsuitable items include but are not limited to:sanitary napkins,matches,cotton swabs or'coai`se paper. E. DAMAGE Tenant will be required to pay for all damage to the apartment or apartment complex caused by the tenant or their guests negligence or willful conduct or misconduct. F. VEHICLES:Repairs of any kind to vehicles are not permitteerilttlxe premises. Washing velucles asnotpermitted on the premises except in areas designated by owner. Vehicles leaking or dripping'. ;j ind are prohibited. Tenant isxesponsible for the clean up of any area damaged by oil from their guest's vehicles. Storage of v gIe&is prohibited on the premises and will be subject to tow away at owner's expense. Storage to include,but not limited to vehicles not currently licensed,vehicles not in use •for a period not to exceed seven days or a vehicle not maintained in otiet.able condifiery G. VEHICLE PARKING: In the event that tenant or ... pry of teuapt'�,guest park a�ehicle a>tr a reserved covered carport space or assigned garage,other than that assigned to tenant ovpark in an u td"esignated parkin-'s'paee,the improperly parked vehicle will be towed WITHOUT NOTIFICATION,at the vehicle owner'sexpel* It is the tenants responsibility to monitor and control tenant's parking spaces for their purposes It is*.tenant's respons]'bility'to notify their guests of the parking policy.Garages are for vehicle parking only.Personal items may be stored;in storage closets;,if provided.Storage of combustible,flammable or toxic chemicals of any kind is strictly prohibited anywhere on the premises including but not limited to the enclosed garage area Management,owner and its authorized agents are not regppnsible for persoi al:items stored. They are stored at the sole risk of the tenant.Modifications of any kind are not permitted to the gee or storage areas: H. SECURITY:Tenants and guests are responsible fot;their own safety. Every tenant is expected to assist in crime prevention. The owner makes no warranty as to the provision for$ecurity.of tenants or guests. I. LOCK-OUT POLICIP.Tertantssarein,vonsible for maintaining access to their apartment In the event the tenant loses, misplaces or otherwise does not have the keys to.their apartment the'owner may allow entry into the apartment. Tenant must provide owner with picture identification or must otherwise-atisfy"owner of their identity. During normal business hours tenant may borrow a spare key from the office and failure to rathrithe key will result in a$25.00 fee.After normal business hours tenant must contact officOlirough the after hours answering service or courtesy officer,if available,where keys have been previously issued a$50.00 fee wil(le:eharged to the rent ledger,and must be paid with the following months rent. If keys are not available with the owner,the tenant obtain a locksmith aid the tenant will be responsible for the payment to the locksmith,normally to be paid at the time of entry. Owner'ls:notcesponsible for tenant entry into the apartment 9. AMENITY:AREA GUIDELINES,'Apartment amenities may include but not limited to:Pool(s),Spa(s),Fitness Centers,Racquetball Court(S)Clubhouse,Sauna(s) ;`The following rules and regulations are designed to maximize your enjoyment of the amenity provided on*premises. Tenants are cautioned regarding safety in the use of the amenities and need to be aware of the hazards,which may result from negligent behavior. The:owners,management and agents make no warranty regarding safety in the use of the amenities by tenants Anleaaty houra;ar.'e 8 a.m.tt 10 p•m. No food,drink(including but not limited to alcoholic beverages)or smoking are allowed in any mdgor$matuty`area, ?ailurttto adhere strictly to the rules and regulations is acknowledged as grounds for suspension of privileges and possible termination of the tenancy after service of a 3-day Notice to Quit Tenants and guests swim and use the amenity areas at their own risk and roust comply with the following regulations: 1. ;. : Beverages are permitted only around the pool area,and then only in plastic containers. 2. • No alcohol or food of any kind. 3. No glass of any kind 4. Guests are limited to two(2)per apartment and must be accompanied by the tenant at all times. 5. No resident or guest under 18 years of age allowed in the indoor athletic facilities. 6. No pets allowed. 7. No running,pushing,shoving and/or roughhousing. • 8. No music equipment allowed unless personal earphones are used. 9. The pool is open for swimming between the hours of 8 a.m.and 10 p.m. 10. Swimmers must wear proper swimming attire,specifically designed for swimming. Cut-offs,T-shirts or undergarments are examples of improper swimming attire. 11. All swimmers 14 years of age or under must be accompanied by the parental resident. 10. CONDITION OF APARTMENT,SURRENDER,DAMAGES:Tenant has had the opportunity to inspect the apartment and acknowledges that the apartment on the day of execution of this agreement is in good and habitable condition;subject to exhibit A. As a win 0l/02 pg2or4 Page 2 of 4 Attachment to White Paper dated March 3, 2008 Administrative Plan part of the consideration for rental as stated above,tenant will keep and maintain the apartment,appurtenances and personal property belonging to lessor,in good,safe,sanitary and operating condition during the terns of this agreement Tenant shall be responsible for payment for damages or repairs necessitated by the unwillful or negligent conduct of tenant's guest.Failure to pay damages within thirty(30)days will constitute termination of lease.The tenant shall make payment for repairs due to any damages or injury caused to the apartment by the tenant or any other person who may be in the apartment. Tenant'hall,at the termination of this agreement,without further notice to quit,surrender to owner the apartment,with all appurtenances and personal property belonging to owner in as good condition as when inspected on the date of execution of this agreement,with the reasonable wear and tear and damage by the elements expected. Attached hereto as Exhibit A is the move-in inspection Report,a copy of which is hereby acknowledged by tenant. Tenant shall return copy within 48 hours of lease date to insure correct disposition of deposit at move-out. 11. ALTERATIONS: Tenant shall make no alterations or undertake redecoration without the prior written consent of the owner. No screws,nails or other materials shall be imbedded or attached to the walls of the premises,except for picture hooks. Owner shall make or cause to be made and shall pay for:(1)all structural and mechanical repairs provided the need for such repairs are not caused by or contributed to by the fault of the tenant,his guests,friends,agents,or employees;and(2)all repairs requited'.by ordinary wear and tear. Tenant shall be responsible for all abnormal wear and tear. 12. ASSIGNMENT/SUBLETTING:Tenant agrees not to transferor assign any interest in this agreei.Itent or the premises,nor to sublet the apartment or any part thereof. No occupant other than those listed above shall reside in the a p a "" e apartment in breach of this13y ma :An nsnate byesidier i tho p agreement shall have no right in or to the apartment and the tenancy may be'.termitiated by owner without notice to any such occupant. 13. UTILITIES: Tenant agrees to pay for all utilities including any deposits required;except GAS,WATER,TAW.(i.e,.;uater,sewage, garbage)and to hold the owner harmless therefrom. Owner shall have no responsibility for the interruption of utility services furnished by third parties. 14. LAWS:The law of the state wherein the apartments are located shall govern the interpretation,validity,and enforcement of this agiecinent. If any provision of this agreement shall be declared invalid er enforceable bya court of competent jurisdiction,the validity and enforceability of the remaining provisions of this agreement shall be affeeted thereby. 15. INSPECTION: Owner or its agent or agents shall be allowed to enter theapartment as pret lded by state law. Upon 24 hours notice,the owner may enter to inspect the condition of the premises.';and/or appliances therein. In the event of an emergency, owner's representative has the right to enter the apartment without'notice. 16. TERMINATION This tenancy may be terminated by owner or tenant's as provided by state law. Resident may terminate this written rental agreement prior to the expiration ofthe;term of the salttJental agreement by giving(30)days written notice of intent to vacate,and paying all rent due through thirty(30)days notice period..In addition,a termination fee equal to one month's rent is due and payable in the form of a cashiers check or money order at tune of move-out,plus paying to owner the value of any rental incentive received by the tenants)as previously apecifred in this lease If tenant(s)fail to pay said amounts,owner or its agent shall have the right to enter and take possession bfthe apartmeptas providedby state law,and tenant(s)shall be liable for payment of the full rental for the entire term of the tenancy. 17. BARBEQUES: Tenants are discouraged from the;use of outdoors cooking grills on the premises. Tenant acknowledges and assumes liability for damage or:loss resulting from sueh.use Any use of a grill larger than 288 square inches is strictly forbidden. Tenant must dispose of ashes prope ly:.It is strictly prohibited to dispose of ashes in the garbage containers. 18. LIABILITY: The'owner la tatresponsible for damage to any personal property on the premises. Property on the premises shall,.be at the risk of the tenant Occimanif or owner of same shall in no event be liable for loss and/or damage of such property;ifnlesscaused by negligence of the owner. Tenant shall be liable for any claims of loss or damage to property,and injury or deatl'to persons caused by negligence of tenant,Ins invitees or uninvitees occurring on the rented premises. Tenant assumes all responsibility for any and all property,of tenant or third persons under tenant's control,place stored or located in the premises or else..wher04 oraround;the premises. Tenant is responsible for insurance coverage for such personal property in the event that SiAliatitern141a4Ctirep by tenant.Owner is not responsible for tenants personal property,therefore,it is recommended by owner that tenant acquire jhter's insurance. 19. JOINT AND SEVERAL;i ABILITY:All tenant(s)are jointly and severally liable for all rent and/or other sums due to pursuant to this rental agreement Said liability shall continue until all tenant(s)and other occupants have vacated the premises,and the premises have bean returned to the owner. 20. MORTGAGE: This agreement shall be subject and subordinate at all times to the lien of exiting mortgages,deeds of trust,and financing statements upon leased property,and of mortgages,deeds of trust and financing statements which hereafter may be made a lien on the leased property,and to any renewal,modifications,consolidation,replacement and extensions of any such existing or future mortgages,deeds of trust and financing statements. Although no instrument or act on the part of the tenant'hall be necessary to effectuate such subordination,tenant will,nevertheless,execute and deliver such further instruments subordinating this agreement to the lien of any such mortgages.Deeds of trust,or financial statements as may be desired by the mortgagee. Tenant hereby appoints owner his attorney in fact,irrevocably,to execute and deliver any such instrument for tenant 21. CONDEMNATION: If the whole of the property on which the premises are located,or such portion thereof as will make the property and/or the premises unsuitable for the purposes herein leased,is sold under threat of condemnation or is condemned for any public use or purpose by any legally constituted authority,then in either of such events this agreement shall cease and terminate from time when possessions taken by public authority and rental shall be accounted for between owner and the tenant at the date of the surrender of 'poll 0I/04 Pg3 of Page 3 of 4 Attachment to White Paper dated March 3, 2008 Administrative Plan possession. Tenant shall have no claim against owner or the condemning authority for the unexplored term of this agreement. 22. GENERAL PROVISIONS: All terms,covenants and conditions herein are binding upon inure to the benefit of the heirs,executors and assigns of owner and tenant This agreement constitutes the entire agreement between the parties and recites the entire consideration of the parties,and no representation or oral agreement not described in writing and no oral evidence may be offered to support such claim having been made by either party or their agents. Failure by owner to enforce the provision herein in regard to any breach of any terms,covenants or condition of this agreement shall not constitute a waiver of the future right to enforce such provisions. 23. ATTORNEY'S FEE AND COSTS:Tenant acknowledges that if any legal action or proceeding to enforce the terms of this agreement is necessary.The prevailing party in such action is entitled to recovery of a reasonable attorney fee and costs of such action in addition to all other amounts owed,to the extent authorized by state law. 24. RENTAL APPLICATION:Attached hereto as Exlubit B is a rental application executed by tenants under the penalty of perjury. In the events that any information upon tenant's rental application is incorrect or is unverifiable'Sitch incorrect information will constitute a material and irremediable breach of this rental agreement as the accuracy of such information is a condition precedent to tenant's entitlement to the benefits of this agreement,and the owner may evict after service of a 3,;4iiy notice to quit It is the responsibility of the tenant to update owner regarding any changes of the information on the appliegtion,especially employment information. 25. NOTICE TO VACATE Owner and tenant agree that the leasehold will terminate on the above*ated date only upon written notice from either party thirty(30)days prior to said termination date. If tenant fails to serve such notice'on lessor,the parties agree to continue the tenancy month to month,subject to month to month additional rent of$25.00,subject to the right tofparties ur negotiate agreements agreeable to both. Lessor agrees to serve notice on tenant of any proposed revision in rental paymaitglhirtyf(30)days prior to the effective date of such a change. If any personal property belonging to the tenaiptis left in the apartment or*keys are not returned,the former tenant is deemed in control of the apartment and therefore subjeettorent liability until'the keys are returned and the personal property is removed. State law provides that a resident holding over afer'tiotice date is given;Ls:liable for triple rent for each day he holds the apartment beyond the date given. 26. NOTICE Megan's Law: The California Department of Jmtstrce sheriff's departments pollee departments serving jurisdictions of 200,000 or more,and many other local law enforcetnentauthorsties maintain for public access a database of the locations of persons required to register pursuant to paragraph(1)'of subdivision la.of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and a source of information about'tl:e.presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification line through:which inquires about:hndividuals may be made. This is a"900"telephone service. Callers must have specific information about imrviduals,they are checking on.`Information regarding neighborhoods is not available through the"900"telephone service. 27. NOTICE TO TENANT Do not sign this agreement or any attached hereto if there are any blank spaces or incomplete sentences. By execution of this rental agreement tenant acknowledges receipt of a completely filled in rental agreement and attachments as set forth in this rental agreement Subject to the above stated terms. Owner hei'eby,acknowledges receiptof the above statement amount,and in consideration thereof, rents to the above-named tenant(whether one or iiiore)and tenant hereby takes from owner,the apartment described above to be used by tenant as a lawful residentupon the terms hereinabove set forth,each of which are covenants as well a conditions. IN WITNESS WHEREOF'tlieparties hereto have executed this agreement as of the date and year first written above at CA. Owner's Agent Tenant or Occupant 0pm11 01/02 Pg4 of Page 4 of 4 Attachment to White Paper dated March 3, 2008 Administrative Plan rpm COMPANY ADDENDUMS TO THE RENTAL AGREEMENT • This agreement/addendum to the rental agreement,entered into this day of ,2t),0 ,by and between ,Owner and ,Resident concerning the premises knowntasApartment# at ,CA CRIME/DRUG FREE HOUSING In consideration of the execution or renewal of a lease of the dwelling unit identified itthelease,Owner and Resident agree as follows: Resident,any member of the resident s household,or a guest*Other person under the resident's;r ontrol; a. Shall not engage in criminal activity,including drug-rela ectcriminal activity,on or near project premises. "Drug-related criminal activity"means the illegal manufadbu 1ng,sale,or use On controlled substance(as defined in section 102 of the Controlled Substances Act(21 LIS G,802)) b. Shall not engage in anycriminal activrty'ncludrrtp ,t g-relatedulnai actLvlfy,on or near project premises. c. Will not permit the dwelling unit to be usid,.for,or tafacilitate,crrmrnal;activity,including,but not limited to,drug-related activity,regardless of whether the individual engaging in such activity is a member of the household or a guest. d. Will not engage in the manufa turtng,sale or disttibntion of illegal drugs at any location,whether on or near project premises or otherwise e. Shall not engage in acts of violence or threats of violence":Including,but not limited to,the unlawful discharge of firearms,on or near flee project;premises. f. VIOLATION OF THE ABOVE PROVISION,' SHALL BE MATERIAL VIOLATION OF THE LEASE AND GOOD tAIISE 'OR TERMINATION'QI'TENANCY. A single violation of any of the provisions of this addendum shall be deeied,a.serious violation and a material NONCURABLE,breach of the lease. Unless otherwise prodded by`taws proof of violation shall not require criminal conviction,but shall be by a preponderance of the evidence. g. Irt.caseof conflict betweetethe provisions of this addendum and any other provisions of the lease,the provtstdns_of the addendum shall;govem. h. ThiaLedieWdernhim is incorporated into the lease executed or renewed this day between Owner and Resident. 2. USE OF PATIO/BALCONIES It is hereby agreed between the Owner,hereafter referred to as lessor and the undersigned,hereafter referred to as lessec(s)as follows a. Asthere is a fence surrounding the patio or balcony area of the leased premises,the placing or storage of any Items,or hanging of clothing on the patio or balcony area,would seriously detract from the appearance of the'complex and therefore is prohibited. b. oLessee(s)shall not at any time shake or hang from the windows,doors,patio or balcony areas,any linens such as the following: Clothing,Bedding,Curtains,Rugs,Mops,or items of any nature c. Lessee(s)shall not keep,place or store items of any type,other than plants or barbecue equipment on or about the patio or balcony area for any period of time.Plants should be presentable and not placed on railings,which can cause premature deterioration of the railings. d. Lessee(s)shall not display or hang signs,advertisements,notices,flags,banners,or any decorative items on the patio or balcony. e. At no time should there be any alterations including exterior shades,dividers,lattice,screening,etc. rpm lla ll/OI lor5 Page 1 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan f. At no time should there be any interior or exterior window coverings other than the standard blinds and draperies. No towels,blankets,foil,etc.hanging in the windows. g. Lessee(s)shall not throw cigarette butts off the patio,balcony or anywhere on the premises. Must use appropriate dispenser for ashes and cigarette butts. h. Lessee(s)shall not store trash outside their door areas,must use provided trash receptacles. 3. SMOKE DETECTOR/ALARM AGREEMENT The Premises is equipped with a smoke detector/alarm.Resident agrees,as further consideration for the rental of the Premises,as follows: Resident will be responsible for testing the smoke alarm by pushing the"Test"button on the detector for five seconds.It is recommended that you test the detector/alann weeldy. The alarm_slieuld sound when the button is pushed. If there is no sound,Resident shall inform Owner or Authorized:Agent immediately in writing. By initialing as provided,Resident understands that the smoke detector/alarmdetector/alaiiiithattery operated:and agrees that it is the Resident's responsibility to ensure that the battery is in operating condition at all times. If after replacing the battery,the smoke detector/alarm will not operate,Resident will informOwner or.,authorized Agent immediately in writing. 4. MAINTENANCE AUTHORIZATION By initialing as provided,Resident understands anti allpws our Maintenance stag to enter their apartment to perform maintenance requests,in the event they a e not at home. By initialing as provided,Resident tuulersta"ulsrand prefers that our maintenance staff NOT enter their apartment to perform maintenance request,in the eventthey are not home.It is also understood that the maintenance hours are Monday through Friday,between 9:00 a.m.aiid<5 00 p.m.and that no appointments can be scheduled after hours.Any emergencies,such as loss of polder or flood,wilt:be taken care of via the after hours call back number. In the event of repeated maintenance rssues:(te:.unclogging items from toilets and disposals,torn screens, etc...)Resident is subject to maintenance anti replacement cost. 5. RENTER'S INSURANCE Lessor strongly recommends that:.lessee maintZtjn;;(at lessee's sole expense)a standard type of Renter's Homeowner Insurancer'Policy,or its equivalent,iyhich provides limits of liability adequate to protect lessor's and other resident's property,as well as lessee's personal ptperty from loss by fire,burglary,water and other perils. It is understood that in the absence'of such insurance the,lessee,in the event of fire or other perils outside of lessor's control,could incur a substantial financial htirden. Lessee hereby releases from any,and all claims for damages or loss to lessee's personal property in,on,or about the premises that are`.caused by or result from risks which are or would be incurred under the insurance described above, and hereby waives any and all rights of recovery and rights of subrogation against lessor in connection with any damage or claim which is or would be covered by such insurance except for damage resulting from the negligent ;sets of lessor I/We will be obtaining renter's insurance from: Carrier&Agent: UWewill NOT be obtaining renter's insurance and will be personally responsible in accordance with above addendum: 6. LEAD PAINT WARNING STATEMENT Housing built before 1978 may contain lead-based paint Lead from paint,paint chips and dust can pose health hazards if not taken care of properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing,landlords must disclose the presence of known lead-based paint and lead-based paint hazards in the dwelling. Residents must also receive a federally approved pamphlet on lead poisoning prevention. Lessor's Disclosure: ,lmlla 11/OI 2or5 Page 2 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan a. Presence of lead-based paint or lead-based paint hazards(check one below) ❑ Known lead-based paint and/or lead-based paint hazards are present in the housing(explain) ❑ Lessor has NO knowledge of lead-based paint and/or lead-based paint hazards in the housing. b. Records and reports available to the lessor(check one below) ❑ Lessor has provided the lessee with all available records pertaining to lead-based paint and/or lead-based paint hazards in the housing(list documents below) ® Lessor has NO reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing. 7. "NORMAL WEAR AND TEAR" It is the interpretation of the concept of"Normal wear and Tear"that dirt isNOTincluded as normal wear and tear. The apartment was clean and sanitized prior to your occupancy and therefore,it`wiltbe the.resident's cost to return the apartment to that condition. ANY AND ALL CLEANING AND SANITIZINcrOJTHE APARTMENT AS SOLELY DETERMINED BY THE LANDLORD.WILL BE AT THE SOLE EXPEIVSEEOF THE RESIDENT. "Normal wear and tear"will generally include the gradual deterioration of carpeting,dmpeiytnatetial,appliances, fixtures and painting. 8. APPLIANCE AGREEMENT • Tenant agrees to pay the sum of$0 per month for the rental of appliance as described below. • Washer Serial# Dryer Serial# • Refrigerator Serial# Other sr • Appliance described shall be placed in:apartment# by Lessor and shall remain in said apartment until such time as there is a mutual agreement between Tenant.and Lessor foz`Lsssor to remove the appliance. Any change in this Agreement requires thirty(30)days written notice and consett;by Lessor. Tenant is responsible to maintain washer and dryerumit in reasonable condition in regards to cleanliness and operability. Under no circumstance is Tenant to move appliance from the apartment noted in this Agreement. Removal of units from apartment by tenant will constltitteteplacenlent in the amount of$ payable to lessor by demand. Lessor maintains the right to enter apartment for the purpose of inspection and inventory as described in Rental Agreement:.. Lessor maintains the iigl)tto deduct from the escrow Deposit described in Rental Agreement any amounts necessary to repair or replace appliance damaged by tenant. 9. • SATELLITE DID AND ANTENNA ADDENDUM Under rules of the Federal Communication Commission(FCC),you as our resident have a limited right to install a satellite dish or receiving antenna within the leased premises. WE as a rental housing owner are allowed to impose reasonable reactions to such installation. You are required to comply with these restrictions as a condition of installing such equipment. This addendum contains the restrictions that you and we agree to follow. 1. Ndniber and size. You may install only one satellite dish or antenna within the premises that are leased to you for your exclusive use. A satellite dish may not.exceed 24 inches in diameter. An antenna or dish may receive buy not transmit signals. 2. Location. Location of the satellite dish or antenna is limited to(I)inside your dwelling,or(2)in an area outside your dwelling such as a balcony,patio,yard,etc. of which you have exclusive use under your lease. Installation is not permitted on any parking area,roof,exterior wall,window,windowsill,fence or common area,or in an area that other residents are allowed to use. A satellite dish or antenna may not protrude beyond the vertical and horizontal space that is leased to you for your exclusive use. 3. Safety and non-interference. Your installation:(1)must comply with reasonable safety standards;(2) may not interfere with our cable,telephone or electrical systems,or those of neighboring properties;(3) may not be connected to our telecommunication systems;and(4)may not be connected to our electrical qpn 114 11/01 3015 Page 3 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan system except by plugging into a 110-volt duplex receptacle. The satellite dish or antenna is permitted only on your balcony or patio and must be safely secured by;(1)securely attaching it to a portable,heavy object such as a small slab of concrete;(2)any other method approved by the Management Company. No other methods are allowed. We may require reasonable screening of the satellite dish or antenna by plants,etc., so long as it does not impair reception. 4. Signal transmission from exterior dish or antenna to interior of dwelling. You may not damage or alter the leased premises and may not drill holes through outside walls,door jams,windowsill,etc. If your satellite dish or antenna is installed outside your living area(on balcony,patio or yard of which you have exclusive use under your lease),signals received by your satellite dish or antenna may be transmitted to the interior of your dwelling only by:(1)running a"flat"cable under a door jam orr window sill in a manner that does not physically alter the premises and does not interfere with proper operation of the door or window;(2)running a traditional or flat cable through a pre-existing hole hi the wall(that will not need to be enlarged to accommodate the cable);(3)connecting cable"through.awindow pane"similar to how an external car antenna for a cellular phone can be connected to inside wring by a device'glued to either side of the window—without drilling a hole through the window;(4)wireless;transmission of the signal to a device inside the dwelling;or(5)any other method approved by us. 5. Workmanship. For safety purposes,you must obtain our approval of(1)strengthand type of Materials to be used for installation,and(2)the person or company who will perform the installation. A qualified person or company that has worker's compensation insurance and adequate public liability.insurance must do installation. Our approval will not be unreasonablyy*Obeid. You must obtain any permits required by the city for the installation and comply with any applicaline city ordinances 6. Maintenance. You will have the sole responsibility for maiii{uining your satellik dish or antenna and all related equipment. We may temporarily remove the satellite d;;*or antenna rf necessary to make repairs to the building. 7. Removal and damages. You must reintiVe the satellite dish or anteti na and all related equipment when you move out of the dwelling. You must pay for any damages and for the cost of repairs or repainting which may be reasonably necessary to restore the;leased premises to Its condition prior to the installation of your satellite dish or antenna and:related equipment . 8. Liability insurance and indemnity you are fully responsible for the satellite dish or antenna and related equipment. Prior to installation;iyon must provide us:wifh;evidence of liability insurance to protect us against claims of personal injury and property damage to:others related to your satellite dish,antenna or related equipment. The insurance coveragemust be*less that$2,000(which is an amount reasonably determined by us to acco pplish that purpose)ar paiist remain in force while the satellite dish or antenna remains installed You a to defraid,indemnify and hold us harmless from the above claims by others. 9. Damages.An additional deposit'of$100.00 is required to cover damages that you will be solely responsible for,all repair.costs,(lanai—gat or failure to remove the satellite dish or antenna and related equipment at time of moveryout will be charged to your deposit account 10. When you:may begin installation: You may start installation of your satellite dish or antenna only after you have:(i)sigited,;tlus addendum;(2)provided us with written evidence of the liability insurance referred torn paiagrdp s of this addendum;(3)paid us the additional security deposit referred to in paragraph 9;'and(4)received our written approval of the installation materials and the person or company who will do the installation. 10 MOLD:NOTIFICATION lt'rs our goal to maintain the highest quality living environment for our residents. Therefore know that RPM Company,agent for .has inspected the unit prior to lease and knows of no damp or wet building materials and knows of no;mold or mildew contamination. Resident is hereby notified that mold, however can grow if the premises are not properly maintained or ventilated. If moisture is allowed to accumulate in the unit,it can cause mildew and mold to grow. It is important that residents regularly allow air to circulate in the apartment. It is also important that residents keep the interior of the unit clean and that they promptly notify RPM Company,agent for of any leaks,moisture problems,and/or mold growth. Resident agrees to maintain the premises in a manner that prevents the occurrence of an infestation of mold or mildew in the premises. Resident agrees to uphold this responsibility in part by complying with the following list of responsibilities: 1. Resident agrees to keep the unit free of dirt and debris that can harbor mold. 'pro Ilk 11/01 4of5 Page 4 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan 2. Resident agrees to immediately report to RPM Company,agent for any water intrusion,such as plumbing leaks,drips,or"sweating"pipes. 3. Resident agrees to notify RPM Company,agent for of overflows from bathroom,kitchen,or unit laundry facilities,especially in cases where the overflow may have permeated walls or cabinets. 4. Resident agrees to report to RPM Company,agent for any significant mold growth on surfaces inside the premises. 5. Resident agrees to allow RPM Company,agent for to enter the unit to inspect and make necessary repairs. 6. Resident agrees to use bathroom fans while showering or bathing and;to report to RPM Company,agent for any non-working fan. 7. Resident agrees to use exhaust fans whenever cooking,dish-washing,or cleaning.' 8. Resident agrees to use all reasonable care to close all windows and other openings'in.the premises to prevent outdoor water from penetrating into the intend..unit. 9. Resident agrees to clean and dry any visible moisture on windows,walls,and other surfaces,including personal property,as soon as reasonably possible=;(Note: grow on damps surfaces within 24 to 48 hours.) 10. Resident agrees to notify RPM Company agent for of any problems with the air conditioning or heating systems that are discovered by the:tesident. :<:. 11. Resident agrees to indemnify'an4 hold harmlessl PM Company,agent for from any actions,claims, losses,damages,and expenses i oluding,but not limited to,attorneys'fees that the RPM Company,agent for may sustain or incur as,a result of the neglige#i e,of the resident or any guest or other person living in,occupying,or using the premises IN WITNESS WHEREOF tepatties hereto have executed this agreement/addendum as of the date and year first written above at. Owner's Agent Tenant/Occupant ✓ t rpm Ile ll/01 5ur5........ Page 5 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan Effective Date: HOUSEHOLD INCOME CERTIFICATION Move In Date: (M/D/YYYY) ❑ Initial Certification ❑ Recertification ❑Other Property name: Address: Unit No. # Bedrooms: Pursuant to a Housing Agreement with the City of Palm Desert,Palm Desert Redevelopment Agency,or the Housing Authority,Program Eligibility and Affordability verifications for Low and Moderate Income Households shall be performed as required by Title 25 subject to eligibility verification procedures and requirements described therein, and as amended from time to time. The following outlines how annual income is calculated to determine household income eligibility,which is required prior to the household residing in an affordable housing unit and every year thereafter for the compliance period. The following questions will assist you in completing the HOUSEHOLD INCOME CERTIFICATION.When answering the questions answer"Yes"if any of the information requested or income source pertains to any tenant,co-tenant,or adult individual member of the household(individuals 18 years and older)during the 12 months following the date of the certification or recertification. YES NO INCOME INFORMATION MONTHLY GROSS INCOME (all sources are to be disclosed below unless otherwise excluded by Title 25 Section) I/we am self employed.(List nature of self employment) (use net income from ❑ ❑ business) ❑ ❑ I/we have a job and receive wages,salary,overtime pay,commissions,fees, (use rg oss income;amount tips,bonuses,and/or other compensation:List the businesses and/or before any pay deductions) companies that pay you: Name of Employer; 1) $ TOTAL INCOME(BOX A) $ ❑ ❑ I/we receive periodic social security payments. $ ❑ ❑ I/we receive Supplemental Security Income(SSI). $ TOTAL INCOME(BOX B) $ ❑ ❑ I/we receive cash contributions of gifts'including rent or utility payments,on an ongoing basis from persons not living with me/us. $ I/we receive Public Assistance Income ❑ ❑ Other: $ Please list TOTAL INCOME(BOX C) $ ❑ ❑ I/we receive unemployment benefits. $ ❑ ❑ I/we receive Veteran's Administration.GI Bill,or National Guard/Military benefits/income. $ ❑ ❑ The household receives unearned income from family members age 17 or under(example:Social Security,foster care,etc.) $ ❑ ❑ I/we receive periodic disability or death benefits other than Social Security. $ ❑ ❑ I/we am entitled to receive child support payments,but am not currently receiving payments. ❑ ❑ I/we am currently receiving child support payments. If yes,from how many persons do you receive support? $ ❑ ❑ I/we receive alimony/spousal support payments $ ❑ ❑ I/we receive periodic payments from trusts,annuities,inheritance,retirement funds or pensions,insurance policies,worker's compensation and severance, interest and dividends,or lottery winnings. If yes,list sources: $ 1) ❑ ❑ I/we receive income from rental,real or personal property. $ Page 1 of 3 Attachment to White Paper dated March 3, 2008 Administrative Plan HOUSEHOLD INCOME CERTIFICATION Page 2 of 3 Any other income? Describe source: $ TOTAL INCOME(BOX D) $ YES NO ASSET INFORMATION CASH VALUE O I/we have a checking account If yes,list bank 1) H H I/we have a savings account If yes,list bank 1) $ • H I/we have a revocable trust If yes,list bank 1) $ I/we own real estate: If yes,provide description • ❑ I/we own stocks,bonds,or Treasury Bills If yes,list sources/bank names 1) $ I/we have Certificates of Deposit(CD)or Money Market Account If yes,list sources/bank names 1) $ I/we have an IRA/Lump Sum Pension/Keogh Account/401K. If yes,list bank 1) $ I/we have a whole life insurance policy. If yes,how many policies $ O U I/we have disposed of assets(i.e.gave away money/assets)for less than the fair market value in the past 2 years If yes,list items 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:College/University,trade school,etc.) O ❑ Is student receiving financial aid(public or private,not including student loans) $ • U Is student married and filing a joint tax return Is student a single parent with a dependent child or children and neither you nor your child(ren)are dependent of another individual TOTAL INCOME(BOX F) $ Page 2 of 3 Attachment to White Paper dated March 3, 2008 Administrative Plan HOUSEHOLD INCOME CERTIFICATION Page 3 of 3 PART I—HOUSEHOLD COMPOSITION HH Last Name First Name&Middle Relationship to Date of Birth FT Student Social Security Mbr# Initial Head of Household (M/D/YYYY) (Y or N) (Voluntary) Self TOTAL HOUSEHOLD MEMBERS: # PART II—GROSS ANNUAL INCOME(USE ANNUAL AMOUNTS) HH (A) (B) (C) (D) Mbr# Employment or Wages Social Security/Pensions Public Assistance Other Income 1. Add totals from(A)through(D),above TOTAL INCOME: (E) PART III-INCOME FROM ASSETS HH (F) (G) (H) (I) Mbr# Type of Asset C/I Cash Value of Asset Annual Income from 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 ASSETS: (K) Total Annual Household Income from all Sources[Add(E)+(K)]: (L) HOUSEHOLD CERTIFICATION&SIGNATURES The information on this form will be used to determine maximum income eligibility.I/we have provided each person(s)set forth in Part I acceptable verification of current anticipated annual income.I/we agree to notify the landlord immediately upon any member of the household moving out of the unit or any new member moving in.I/we agree to notify the landlord immediately upon any member becoming a full-time student Under penalty of perjury of the laws of the State of California,!Ave certify that the information presented in the Certification is true and accurate to the best of my/our knowledge and belief.The undersigned further understands that providing false representations herein constitutes an act of fraud.False,misleading or incomplete information may result in the termination of the lease agreement. Signature (Date) Signature (Date) Signature (Date) Signature (Date) Page 3 of 3 Attachment to White Paper dated March 3, 2008 Administrative Plan /N-UO/ , L• /"Y1.elderuk. aeiatzt • RESOLUTION NO. HA-22 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY APPROVING OCCUPANCY STANDARDS FOR THE ALLOCATION OF RESIDENTIAL UNITS OPERATED BY THE AUTHORITY NOW, THEREFORE, THE PALM DESERT HOUSING AUTHORITY HEREBY FINDS,DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Palm Desert Housing Authority (the "Authority") operates a significant number of residential units (the "Authority Units") in the City of Palm Desert, California for the Palm Desert Redevelopment Agency ("Agency"), which it leases to qualified families as part of the Agency's Low and Moderate Income Housing Program (the "Program") pursuant to the Community Redevelopment Law of California. Section 2. The Authority wishes to prevent Authority Units from becoming overcrowded in violation of the Uniform Housing Code as adopted by California Health and Safety Code §17922 as additional residents move in or families become too large for their existing apartments. Such overcrowding can pose a threat to the health and safety of residents, lead to parking and traffic congestion, overburden waste and sewer disposal systems and increase the financial burden on and other public use facilities in the City. Section 3. In addition, the Authority has a limited budget for the Program, As a result, the Authority does not want to waste resources or underutilize Authority Units by placing families in larger Authority Units than are necessary. Section 4. The Authority wishes to adopt a policy that establishes standards for the allocation of all Authority Units in the Program in order to allow the Authority to prevent overcrowding and to minimize underutilization in the leasing of Authority Units that are too large or too small for the contemplated families. Section 5_ The policy will be applied as Authority Units are allocated to new tenants and to existing tenants as their leases expire if they seek new leases. Section 6. The Authority hereby approves the "Policy on Occupancy Standards for the Allocation of Agency Units" attached hereto as Exhibit A and G:1RDA1Mada Hun11WPDATAymoorMResoluoon..PDHA 0ce SInd.DOC Page 1 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan • RESOLUTION NO. .A-22 incorporated herein by this reference, and the Executive Director of the Authority is hereby authorized and directed, for and in the name and on behalf of the Authority,to undertake such actions as he or she deems necessary to implement the Allocation Standards for purchasers and new tenants,and existing tenants as their existing leases expire and they seek new lease terms. PASSED, APPROVED and ADOPTED this 23Td day of October, 2003, by the following vote to wit: AYES: CRITES, KELLY, SPIEGEL, BENSON NOES: NONE . ABSENT: FERGUSON ABSTAIN: NONE * / 7tr.Benson, Chairperson ATTEST: / achelle D. Classen,Secretary • • • GARDAUharia HuntWPDATAgmoore\Resclubon—POHA Occ S1nd.00C Page 2 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan EXHIBIT TO RESOLUTION i 22 POLICY ON OCCUPANCY STANDARDS FOR THE ALLOCATION OF AGENCY UNITS 1. Purpose. The purpose of this policy is to establish priorities for the allocation of residential units owned by the Redevelopment Agency of the City of Palm Desert (the "Agency") and sold or leased, by the Agency or the Palm Desert Housing Authority("Authority"), as part of the Agency's Low and Moderate Income Housing Program(the"Program")in order to minimize underutilization and overcrowding of such units in violation of the Uniform Housing Code and to prevent'the waste of scarce affordable housing resources which results when units are allocated that are too large or too small for the family of the tenant. 2. Definitions. For the purpose of this policy,the following definitions shall be used: a. -Agency Units"means the units sold or leased by the Agency as part of its Program pursuant to the Community Redevelopment Law of the State of California("Redevelopment Law"). b. "Authority Units"means the units leased and operated by the Authority for the benefit of the Agency. c. "Eligible Families"means families whose total household income does not exceed the limits established for the Program and Redevelopment Law for families of very low, low and moderate income,adjusted for family size. d. "Executive Director"shall mean the Executive Director of the Agency,or his or her designee. e. "Household"shall mean the total number of Persons defined in 2.g. f. "Housing Commission"shall mean the Palm Desert Housing Commission established by the • City Council on January 8.1998 by Ordinance No.861. g. "Person"means(i)every person with satisfactory identification,regardless of age,who is an intended resident occupant of an Agency Unit during the lease term,including minor children whose parent or legal guardian has court-awarded physical custody of at least 50%and (ii) unborn children at 30 weeks gestation,but only where the addition of one child would cause the unit to exceed the maximum in this policy. Minor children whose parent or legal guardian has court awarded custody of less than 50%will be allowed to occupy the unit during custody visits but will not be counted as a person in determining the unit size to be allocated. h. 'Visitor"means a person who temporarily resides in a unit for a period of less than 30 days per calendar year, only fourteen of which may be consecutive. The exception are minor children whose parent or legal guardian have court awarded custody of less than 50%who would not be considered a visitor but rather allowed occupancy as noted under 2.g. Any person not included in the lease and occupying the unit for longer than 30 days per calendar year will be considered an unauthorized occupant and a violation of the lease agreement. i. "Waiting Lists" shall mean lists maintained by the Agency for the purposes of providing affordable housing at each affordable level,far both sale or leasing purposes. 2. Allocation of Units. Agency Units that become available for sale or lease to new Eligible Families or that are occupied by Eligible Families with expiring leases who wish to enter into a new lease will be sold or Page 1 of 3 G:RDAuanct Moorc\Staff ReportsWalm Desert Affordable Housing Allocation Policy.DOC Page 3 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan I EXHIE A TO RESOLUTION t 22 leased in accordance with the minimum and maximum occupancy standards below. When a unit becomes available, an Eligible Family will be selected from the applicable waiting list based first on appropriate family size for the unit(within the minimums and maximums below), second on the ability to pay the rent or conventional mortgage(consistent with the requirements of the Program). In the event that there is a unit available and there are no Eligible Families of appropriate size,then Eligible Families of the most nearly appropriate size will be assigned to or offered that unit. At no time will the initial assignment of a unit exceed the maximum occupants described below. FOR SALE: • Number of Persons Number of Bedrooms Maximum at Initial Minimum Assignment Studio 1 2 1 . 1 3 2 2 • 5 3 4 7 4 5 9 I I7 I11 • i FOR RENT: Number of Persons Number of Bedrooms Maximum During Minimum Occupancy Term Studio 1 . 2 I1 1 3 • 2 I2 5 3 14 7 4 5 9 • I I • I11 Notwithstanding the foregoing,the minimums and maximums shall be increased or decreased if,due to the size or configuration of the rooms in a particular Agency Unit,the Uniform Housing Code adopted pursuant to California Health and Safety Code section 17922 or the Fair Housing Act, provide for a different minimum or maximum for that Agency Unit, in which case the minimum or maximum established by the Uniform Housing Page 2 of 3 G:1RDAuanet Wore\Staf7Rcports\Palm Desert Affordable Housing Allocation Policy-DOC Page 4 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan • EXHIBIT TO RESOLUTION HA-22 Code,or the Fair Housing Act,shall apply. In addition,in such cases that the Agency Unit is funded in whole or in part by any Federally mandated sources,the occupancy standards set forth therein shall apply. 4. Process for Determining Eligible Family Size to Units Available:Appeals. For the purposes of this policy and for the purposes of being placed on a waiting list, the size of the Eligible Family shall first be determined as of the date the Eligible Family makes written application to the Agency for an Agency Unit. At such time as a unit becomes available,the size of the Eligible Family will be the total number of Eligible Persons at the date of the acceptance of the unit,if different than the Eligible Family Size at application. An Eligible Family that is denied a unit based on Eligible Family Size may file a written appeal for consideration by the Executive Director of the Agency within ten(10)business days of receiving the written denial,stating the reasons for and providing documentation where possible for its disagreement. 5. Notice: Lease Covenants. The Agency shall include a copy of this policy with all of its promotional and application materials used in the Program after the date this policy is adopted by the Agency. In addition, all leases for new tenants in Agency Units and all leases entered into with existing tenants in Agency Units for terms beginning after the termination of their current leases shall include the minimum and maximum numbers of persons who may reside in the unit in accordance with this policy,along with covenants by the tenant to comply with such minimum and maximum numbers of residents. Once a unit is allocated, any violations of either this policy or the executed lease terms will result in termination of tenancy. Any willful omission of information required in the allocation process will result in immediate termination of tenancy. 6. State and Federal Law. If any provision of this policy is inconsistent with applicable law, the provisions of the law will prevail. Page 3 of 3 G:IRDAVanet MoorelStaff Reports\Palm Desert Affordable Housing Allocation Policy.DOC Page 5 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY, RESCINDING RESOLUTION NO. HA-30, AND AMENDING THE PROCEDURE FOR SETTING RENTAL RATES AND THE IMPLEMENTATION THEREOF SUBMITTED BY: JANET M MOORE, HOUSING AUTHORITY ADMINISTRATOR DATE: AUGUST 24,2006 CONTENTS: PDHA RESOLUTION NO.HA- 32 LETTER TO RIVERSIDE COUNTY AUTHORITY DATED 6/23/06 Recommendation: By Minute Motion,that the Housing Authority: Waive further reading and adopt Resolution No.HA-32 ,a resolution of the Palm Desert Housing Authority, rescinding Resolution No. HA-30, and amending the procedure and implementation for setting rental rates for Palm Desert Housing Authority operated rental units. Executive Summary: Approval of this request will rescind the previous resolution in order to effectuate the intent of the original policy and authorize the Palm Desert Housing Authority(the"Authority")to amend the procedure for setting the rental rates annually for units(the"Units")owned by the Palm Desert Redevelopment Agency(the"Agency"), as well as the implementation process. Discussion: The purpose of amending the previously approved resolution is to be able to implement the rental rate increase as it pertains to those tenants who are being additionally assisted by other public,federal,or local agencies and those individuals requiring a 12-month lease. Tenants that are currently assisted by other public,federal,or local agencies would not be affected by the rental rate increase being realized in its entirety because the subsidizing entity would absorb most of the increased amount. Additionally,most of these entities only allow for increases on an annual basis and which is inconsistent with the current approved implementation plan. The revised method of implementation would allow lease renewals every 12 months for those who are additionally assisted or for those who require 12-month leases. Page 1 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan Staff Report Resolution of PDHA rescinding Resolution No.HA-30 and Amending Procedure for Setting Rental Rates and Implementation Thereof Page 2 of 2 August 24,2006 Therefore,in order to adjust rents annually with more continuity,staff recommends that the implementation process for setting rental rates be amended to include that where the implementation affects public,federal,or local assistance,or in instances where 12-month leases are required for other purposes,and the increase to the amount the tenant will pay is less than$50 per month,the balance of the entire rental rate increase will be paid. Staff recommends approval of the resolution amending the procedure and implementation process for setting rental rates annually. The Housing Commission reviewed this request on August 9,2006 end is forwarding the request for final review and action. Submitted by: Department Head: lekS/464,..../ J.Cr.Moore Dave YrigoKrf Ho u sing Authority Administrator Director o edevelopment/Housing JMM:JG:pl App oval: Ju ' cCarthy,ACM velopment Paul S.Gibson, Director of Finance / !Ii Carlos L.Ortecr,Executive Director 74:42 .43Y HOUSG AUTH ON aLi-o VERIFIED BY: fl P6402\0001\872582.2 Original on file with City C erk's Office Page 2 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan RESOLUTION NO. HA-32 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY C' RESCINDING RESOLUTION NO. HA-30, AND AMENDING THE PROCEDURE FOR SETTING RENTAL RATES AND THE IMPLEMENTATION THEREOF f. WHEREAS,the Palm Desert Housing Authority(the"Housing Authority")wishes to set forth a procedure for the Chief Administrative Officer or his designee (the "Chief '' Administrative Officer")to set and implement rental rates annually for units owned by the Palm Desert Redevelopment Agency("Agency Units")and to increase rents charged for Agency Units in accordance with such rates; NOW, THEREFORE, THE PALM DESERT HOUSING AUTHORITY HEREBY FINDS,DETERMINES,RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Chief Administrative Officer shall set maximum rental rate amounts for Agency Units to be effective each year on July 1st in the following manner: A. For Agency Units acquired,developed,rehabilitated,or otherwise assisted, which are required to be available to and occupied by persons and families whose income is between 20 percent and 65 percent of the area median income, maximum rental rates shall be established in accordance with the terms of that certain Stipulation for Entry of Judgment in Case No. Indio 51143,as subsequently amended (the"Stipulation"). B. For all other Agency Units, (i) Immediately upon adoption of this Resolution, the Chief Administrative Officer shall set maximum rental rates as recommended by the appraisal analysis conducted by Sweet & Associates dated December 31,2004 and on file in the office of the Housing Authority Secretary. (ii) Beginning in April of 2006,the Chief Administrative Officer shall cause to be conducted a bi-annual survey of area market rental rates for rental units similar in size and unit mix to the Agency Units and shall set maximum rental rates in accordance with the survey results. For example,the market rental rate for a two-bedroom unit in a duplex may be established as the maximum rental rate for a two-bedroom Agency Unit in a duplex. (Ili) In the intermediate year between surveys,the Chief Administrative Officer may increase maximum rental rates by the same percentage as the percentage increase from the previous year to the current year in area median income. Page 3 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan RESOLUTION NO.HA-32 (iv) The Chief Administrative Officer may establish maximum rental rates at an amount that is less than the market rental rate to compensate for an unusual property condition. (v) In no event shall the maximum rental rate for any Agency Unit exceed the affordable rent for that unit as calculated in accordance with Health and Safety Code Section 50053. Section 2. Implementation A. For those Agency Units described in Section 1.A.hereof,after proper notice has been given,the Chief Administrative Officer shall set the rental rate for each unit determined pursuant to Section 1 A. B. For all other Agency Units, after proper notice is given, the Chief Administrative Officer shall set the rental rate for each unit at the maximum rental rate determined for that unit. Any rental rate increase shall be implemented in the following manner: (i) For vacant units,the full amount of the rental rate increase shall be implemented immediately. (ii) For occupied units, (a) if the increase to the amount the tenant will pay per month is less than or equal to $50, the full amount of the rental rate increase shall be implemented at lease renewal,and (b) if the increase to the amount the tenant will pay per month is more than $50, the rental rate shall be increased by$50 at lease renewal and by$50 every six months thereafter until the rental rate equals maximum rental rate, or at the two-year anniversary of the original implementation of the rental rate the balance of the entire rental rate increased will be paid,and (c) if the unit or the property on which the unit is located Is in need of renovations,the rental rate Increase may be deferred until completion of the renovations or the increase(s)may be less than otherwise provided for pursuant to subparagraphs(I)and (ii)of this paragraph B. Page 4 of 5 Attachment to White Paper dated March 3, 2008 Administrative Plan RESOLUTION NO.HA-32 (d) Where the implementation affects public, federal, or local assistance, or in instances where 12-month leases are required for other purposes, and the increase to the amount the tenant will pay is less than$50 per month,the balance of the entire rental rate increase will be paid. Section 3. Tenant income in all cases shall be adjusted for family size and shall be sufficient to pay affordable rent as determined for that unit in accordance with the Stipulation or Health and Safety Code Section 50053. Section 4. The Chief Administrative Officer may take any other action,which he believes is necessary or desirable to implement this resolution so long as such action is not inconsistent with the intent hereof. PASSED,APPROVED and ADOPTED by the Palm Desert Housing Authority,this 24th day of August,2006,by the following vote,to wit: AYES: BENSON,KELLY,SPIEGEL,and FERGUSON NOES: NONE ABSENT: NONE ABSTAIN: NONE JIM F"R U' O ,CHAIRMAN ATTEST: R� 1:1 LLE D.KLASS , SECRETAR PALM DESERT HOUSING AUTHORITY Page 5 of 5