1993-84703211/15/96
CITY CLERK
CITY OF ENCINITAS
505 S. VULCAN AVE.
ENCINITA$, CA 92024
Re: Reconveyance No. 47864
Dear Beneficiary,
Pursuant to California Civil Code section 2924, please find
enclosed your copy of the Full Reconveyance that this office has
issued and caused to be recorded in the County Recorder's office
of the County in which the property is located.
Should you have any questions regarding the enclosed, please con-
tact the undersigned.
Yours truly,~
L~NDA C. ANDREOLI
ASST. SECRETARY
encl.
Recording Requested By:
CONTINENTAL LAWYERS TITLE
ATTN: R/ KAER
4542 RUFFNER ST., STE.200
SAN DIEGO, CA 92111
Title Order: 31 196951 01
When Recorded Mail To
Space above line for recorder's use
Loan # 93-0847031 Reconveyance RSD # 47864
FULL RE C ONVEYAN C E
FIRST AMERICAN TITLE INSURANCE COMPANY, as Present Trustee for the
Deed of Trust executed by NORTH COAST HOUSING, INC. A CALIFORNIA
NONPROFIT CORPORATION as Trustor(s), and recorded as;
Instrument/File No. 93-0847031 on DECEMBER 15, 1993 in Book
Page of official Records in the office of ~he County Recorder
of SAN DIEGO County, California, having been requested in writing,
by the holder of the obligations secured by said deed of trust, to
reconvey the estate granted to trustee under said deed of trust, DOES
HEREBY RECONVEY to the person or persons legally entitled thereto,
without warranty, all the estate, title, and interest acquired by trustee
under said deed of trust.
IN WITNESS WHEREOF, FIRST AMERICAN TITLE INSURANCE COMPANY, as Trustee,
has caused its corporate name to be affixed by a duly authorized
officer on the date shown in the acknowledgement certificate below.
FIRST AMERICAN TITLE INSURANCE
COMPANY
COUNTY OF SAN DIEGO ) By IA · . X 0 -
~C'. ANDREOLI' · ....
ASST.'SECRETARY
On NOVEMBER 15, 1996, before me, the undersigned, a Notary Public for said
State, personally appeared LINDA C. ANDREOLI personally known
to me (or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/s~e/they executed the same on his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the
on the instrument, the person(s) or the entity upon behalf of which the
person(s) acted, executed the same.
WITNESS my/h~%and official seal. ~~
Signature
· .GREF~ENT CONCERNING COVEN~%NT REGARD'rNG R~ PROPERTY:
~ FOR ~FORD~LE
R~ HOUSING
In consideration of the grant of funds in the amount of $137,000
and loan in the amount of $35,000 by the City of Encinitas to be
used to purchase the real property which is referenced in the
attached covenant, North Coast Housing, Inc. ("PROPERTY O~ER"
hereinafter) and the City of Encinitas hereby agree to execute the
attached covenant as part of escrow in which G~T RECIPIENT is
acquiring title to the real property which is referenced in the
attached covenant which is attached hereto and made a part
hereof.
Theinstruc~Cit] O~~ ~ ~ ~ ~. escrow
COUNTY OF ~ ~ 0 } _ S,S.
a Notary Public in and for said County and State personally appear~
~ proved to me on the basis of satisfacto~
evidence) to be the person~ whose name~are subscribed to the
within instrument and acknowledged to me that hc/;h;/;hey executed ~FICIAL SEAL
thesamein~'~c:,'~heirauthoriz~capacit~andthatby~heir ~ N C ROSS
signature~n the instrument the perso~ or the entity u~n behalf ~NOTARY ~BLI~OALIF~NIA~
of which the person~cted, executed the instrument. ~ SAN DI[~ COUNTY
8i~naturo
10E02A: ESP
When Recorded Mail To: )
City Clerk ~
£ ..................... ] -
[50f_~_~n_~v~ .... l :~ S CE ABOVE FOR RECORDER'S USE
- Encinitas, CA 92024 '
COVENANT REGARDING REAL PROPERTY:
GRANT TO PURCHASE PROPERTY
AND PROVIDE AFFORDABLE RENTAL HOUSING
Assessor's Parcel
No. 260-370-20 Project No.: [--#--]
A. North Coast Housing, Inc., a California corporation
("SUBRECIPIENT" hereinafter) intends to become the owner of real
property which is commonly known as 2074 Manchester Ave.,
Encinitas, California 92007 ("PROPERTY" hereinafter) and which is
described as follows:
See Attachment A which is attached
hereto and made a part hereof.
B. In consideration of a grant of funds ("GRANT"
hereinafter) by the City of Encinitas ("CITY" hereinafter) for use
by the SUBRECIPIENT in the purchasing of the PROPERTY, SUBRECIPIENT
hereby covenants and agrees ("COVENANT" hereinafter) for the
benefit of CITY, to do the following:
See Attachment B which is attached
hereto and made a part hereof.
C. This COVENANT shall run with the land and be binding upon
and inure to the benefit of the future owners, encumbrancers,
successors, heirs, personal representatives, transferees and
assigns of the respective parties.
D. SUBRECIPIENT agrees that SUBRECIPIENT's duties and
obligations under this COVENANT are a lien upon the PROPERTY. Upon
notice and opportunity to respond, CITY may add to the property tax
bill of the PROPERTY any past due financial obligation owing to
CITY by way of this COVENANT.
E. If either party is required to incur costs to enforce the
provisions of this COVENANT, the prevailing party shall be
entitled to full reimbursement of all costs, including reasonable
attorneys' fees, from the other party.
F. Failure of SUBRECIPIENT to comply with the terms of this
COVENANT shall constitute consent to the filing by CITY of a Notice
of Violation of Covenant.
G. Upon SUBRECIPIENT's satisfaction of SUBRECIPIENT's duties
and obligations contained herein, SUBRECIPIENT may request and CITY
shall execute a Satisfaction of Covenant.
H. By action of the City Council, CITY may assign to a
person or persons impacted by the performance of this COVENANT, the
right to enforce this COVENANT against SUBRECIPIENT.
ACCEPTED AND AGREED:
SUBRECIPIENT
North Coast Housing, Inc.
Dated / ~/~/~ ~ By ~~ ~ ' / ~
(Notarization of SUBRECIPIEN signature is attached.)
CITY OF ENCINITAS
' D~rlzat~f~!t~' bY ~
( ' ' required) anager
/%TTACHMENT /% TO
COVENANT REGARDING REAL PROPERTY
GRANT FOR AFFORDABLE
RENTAL HOUSING
PROJECT NO. [--#--]
Land referred to herein is situated in the State of California,
County of San Diego and is described as follows:
Lots 19 and 20 in block 35 of Cardiff "A" in the City of Encinitas,
County of San Diego, State of California, according to map there of
number 1334, filed in the office of the County Recorder of San
Diego County, May 12, 1911.
to me on the basis of satisfactory evidence) to be the person(~ whose name~} ~[~subscribed to the within
instrument and acknowledged to me that ,,~J;~xecuted the same in h!s/h~uthorized capaci~
and that by h!c/~ignatur~on the instrument the person~or ~~e
perso acted, executed the instrument.
WITNESS my hand ancLofficial seal· /'~ ~:A~~~iN~N~Y ~
Signature
(This area for official notarial seal)
ATT&CHMENT B
COVENANT REGARDING RF2~L PROPERTY:
GRANT TO PURCHASE PROPERTY
AND PROVIDE AFFORDABLE RENTAL HOUSING
This Agreement by and between CITY and SUBRECIPIENT is made in
reference to the following facts:
A. CITY is the recipient of funds from the United States
Department of Housing and Urban Development ("HUD" hereinafter)
pursuant to Title I of the Housing and Community Development Act of
1974 (41 U.S.C. 5301-5320) as amended (hereinafter "ACT"). These
funds are known as Community Development Block Grant ("CDBG")
funds.
B. CITY desires to provide a portion of those funds to
SUBRECIPIENT to carry out the purposes of the ACT.
C. SUBRECIPIENT warrants that it has the expertise and experience
to use those funds in accordance with this Agreement and the ACT.
D. SUBRECIPIENT represents that the budget that SUBRECIPIENT
prepared and submitted to CITY in applying for CDBG funds includes
only allowable costs and an accurate analysis of costs applicable
to CDBG funds pursuant to 24 C.F.R. 570.502, which includes
requirements for compliance with the following, in addition to
other requirements:
Circular No. A-122, "Cost Principles for Nonprofit
Organizations" or A-il0 with attachments, and A-133,
"Audits of Non-Profit Agencies."
NOW THEREFORE, in consideration of the foregoing recitals and
based on the mutual covenants herein, the parties hereby agree as
follows:
1.0 CITY'S OBLIGATIONS
1.1 Payment of Funds. CITY shall pay into the escrow concerning
the PROPERTY, from CDBG funds, when, if and to the extent received
from HUD, the sum of $137,000.00 (Grant) and $35,000 (Loan) for use
by SUBRECIPIENT only in purchasing the PROPERTY. Grant need not be
repaid to the CITY unless applicable under Section 4.1, 4.2, 4.4 or
4.5. Loan will be repaid after one year of the date of this
covenant at 3% interest as outlined in promissory note.
1.2 Pro~ram Income. [Not Applicable]
1.3 Subordination. Upon approval based on whether the purposes of
this document are being .accomplished, CITY agrees to execute a
subordination of its interest to the primary lender, Home Savings
of America.
Said conditions have been met therefore City hereby subordinates this
covenant to Home Savings of America's Deed of Trust recording concurrently
herewith.
2.0 SUBRECIPIENT'S OBLIGATIONS
2.1 Project. SUBRECIPIENT shall perform the work (hereinafter
"PROJECT") as set forth in the Statement of Work pursuant to
Exhibit "1" which is attached hereto and incorporated herein by
this reference as though fully set forth at length.
2.2 Acc~uisition of PROPERTY
a. SUBRECIPIENT shall, upon receipt of such CDBG funds for
the purpose of acquiring or improving the PROPERTY and as part
of the escrow for purchasing the PROPERTY, cause a Deed of
Trust, secured by a Promissory Note, to be executed and
recorded, in favor of the CITY, for the amount of the CDBG
funds provided by the CITY.
b. SUBRECIPIENT further promises that in purchasing the
PROPERTY, SUBRECIPIENT shall insure that as part of the
escrow, immediately following the transfer of title of
the PROPERTY to SUBRECIPIENT, this Covenant shall be
recorded on the chain of title for the PROPERTY.
c. There shall be no additional encumbrances placed on the
PROPERTY during the period of this Agreement without the prior.
written consent of CITY, which consent shall not be
unreasonably withheld.
d. If SUBRECIPIENT uses CDBG funds provided by the CITY as
set out in the preceding paragraph, and further encumbers the
PROPERTY acquired without first giving notice to the CITY, and
obtaining the CITY's written consent, which consent shall not
be unreasonably withheld, such action on the part of the
SUBRECIPIENT will be cause for termination or revocation of
this Agreement and reversion of assets as delineated in
Section 4.3.
2.3 Use of Funds. SUBRECIPIENT agrees to use the CDBG funds
provided by CITY only pursuant to the provisions of this Agreement.
2.4 Records and Reports. The SUBRECIPIENT shall maintain the
following records and reports:
a. Records:
(1) Documentation of the income level of persons and/or
families participating in or benefiting by the
SUBRECIPIENT program;
(2) Documentation of the number of persons and/or
families participating in or benefiting the
SUBRECIPIENT's program;
(3) Documentation of all CDBG funds received from CITY;
(4) Documentation of expenses as identified in the
Budget; and
(5) Any such other related records as CITY shall
require.
Reports:
(1) Payment Request/Invoice;
(2) Annual Performance Reports; and
(3) Any such other reports as CITY shall reasonably
require.
2.5 Uniform Administrative Reauirements. The SUBRECIPIENT shall
comply with applicable uniform administrative requirements as
described in 24 C.F.R. 570.502.
2.6 Accountina Standards. SUBRECIPIENT agrees to comply with
Attachment F of OMB Circular A-il0 to the accounting principles and
procedures required therein, utilize adequate internal controls,
and maintain necessary source documentation for all costs incurred.
2.7 Retention of Records. All accounting records and evidence
pertaining to all costs of SUBRECIPIENT and all documents related
to this Agreement shall be kept available at SUBRECIPIENT's office
or place of business for the duration of the Agreement and
thereafter for three (3) years after completion of an audit.
Records which relate to (a) complaints, claims, administrative
proceedings or litigation arising out of the performance of this
Agreement, or (b) costs and expenses of this Agreement to which
CITY or any other governmental agency takes exception, shall be
retained beyond the three (3) years until resOlution or disposition
of such appeals, litigation claims, or exceptions.
2.8 Inspection: Records and Use of Funds.
a. SUBRECIPIENT shall allow CITY and the United States
Government and/or their representatives full access for
purposes of monitoring, auditing, and examining SUBRECIPIENT'S
activities and performance, under this Agreement, to include
without limitation, access to SUBRECIPIENT'S books, documents
and papers, and the right to examine the records of
SUBRECIPIENT'S subcontractors, bookkeepers and accountants,
employees and participants in regard to the Project.
b. SUBRECIPIENT shall allow the CITY and the United States
Government and/or their representative to conduct on-site
monitoring, at their discretion. Monitoring activities may
also include, but are not limited to, questioning employees
and participants in said program and entering any premises or
any site in which any of the services or activities funded
hereunder are conducted or in which any of the records of
SUBRECIPIENT are kept. Nothing herein shall be construed to
require access to any privileged or confidential information
as set forth in Federal or State law.
c. SUBRECIPIENT shall allow CITY to annually audit all CDBG
funds associated with the Project, pursuant to federal
regulations found in Title 24 of the Code of Federal
Regulations and other applicable federal laws and regulations.
d. In the event SUBRECIPIENT does not make the above-
referenced documents available within the CITY of Encinitas,
California, SUBRECIPIENT agrees to pay all necessary and
reasonable expenses incurred by CITY in conducting any audit
at the location where said records and books of account are
maintained.
2.9 Annual Statement To City.
a. By January 31 of each year during the term of this
COVENANT, the SUBRECIPIENT shall submit a written statement to
the CITY's manager prepared by an independent certified public
accountant to examine the SUBRECIPIENT's records for the prior
calendar year.
b. The statement shall briefly summarize the nature and
disposition of all complaints received by the SUBRECIPIENT
from tenants during the past year and certifying that:
(1) The information, supporting documentation, and
certifications of qualified households received by the
SUBRECIPIENT from those commencing occupancy of reserved
units during the past year was examined and the
households were determined to be properly qualified for
occupancy in accordance with the eligibility requirements
of this COVENANT;
(2) The rental paid by each tenant household to the
PROPERTY OWNER during the past year was properly
calculated and did not exceed the maximum allowed rental
authorized by this COVENANT; and
(3) Rental increases for tenant households did not occur
more frequently than once a year.
2.10 Procurement. [Not Applicable]
2.11 Chanqe of Use. There shall be no alteration of the use of the
PROPERTY during the period of this COVENANT without the prior
written consent of CITY, which consent shall not be unreasonably
withheld.
3.0 SUBRECIPIENT'S OTHER OBLIGATIONS
3.1 Compliance with APPlicable Laws.
a. SUBRECIPIENT shall comply fully with all applicable
Federal, State and local laws, ordinances, regulations, and
permits including but not limited to Federal CDBG financial
and contractual procedures, and OMB Circular Nos. A-133, A-
122, and A-il0 with Attachments A, B, C, H, N, and O, as set
forth in 24 C.F.R. 570.502(b). Said Federal documents are on
file in the CITY of Encinitas Community Development
Department, 505 S. Vulcan Avenue, Encinitas, California 92024,
and are incorporated herein by reference.
b. SUBRECIPIENT shall secure any new permits required by
authorities herein with jurisdiction over the Project, and
shall maintain all presently required permits.
c. SUBRECIPIENT shall ensure that the requirements of the
California Environmental Quality Act are met for any permits
or other entitlements required to carry out the terms of this
Agreement.
d. SUBRECIPIENT agrees to comply with the following
regulations insofar as they apply to the performance of this
covenant: Clean Air Act; Federal Water Pollution Control Act
as amended; Environmental Protection Agency regulations
pursuant to 40 CFR Part 50 as amended; National Environmental
Policy Act of 1969; HUD Environmental Review Procedures, 24
CFR, Part 58.
e. SUBRECIPIENT agrees to comply with the requirements of the
Flood Disaster Protection Act of 1973 in regard to the sale,
lease or other transfer of land acquired, cleared or improved
under the terms of this covenant.
f. SUBRECIPIENT agrees that any construction or
rehabilitation of residential structures shall be subject to
HUD Lead Based Paint Regulations at 24 CFR 570.608 and 24 CFR
Par 35, and in particular Sub-Part B thereof. Such
regulations pertain to all HUD assisted housing and require
that all owners, prospective owners, and tenants or properties
constructed prior to 1978 be properly notified that such
properties may include lead based paint. Such notification
shall point out the hazards of lead based paint and explain
the symptoms, treatment and precautions that should be taken
when dealing with lead-based paint poisoning.
g. SUBRECIPIENT agrees to comply with the Historic
Preservation requirements set forth in the National Historic
Preservation Act of 1966, as amended and the procedures set
forth in 36 CFR, Part 800, Advisory Council on Historic
Preservation Procedures for Protection of Historic Properties,
insofar as they apply to the performance oZ this covenant.
h. No Federal appropriated funds have been paid or will be
paid, by or on behalf of it, to any person for influencing or
attempting to influence an officer or employee of an agency,
a Member of Congress, an officer or employee of Congress, or
an employee of a Member of Congress in connection with the
awarding of any Federal contract, the making of any Federal
grant, the making of any Federal loan, the entering into of
any cooperative agreement, and the extension, continuation,
renewal, amendment, or modification of any Federal contract,
grant, loan, or cooperative agreement.
i. If any funds other than Federal appropriated funds have
been paid or will be paid to any person for influencing or
attempting to influence an officer or employee of any agency,
a Member of Congress, an officer or employee of Congress, or
an employee of a Member of Congress in connection with this
Federal contract, grant, loan, or cooperative agreement, it
will complete and submit Standard Form-LLL, "Disclosure Form
to Report Lobbying," in accordance with its instructions; and
3.2 NONDISCRIMINATION.
a. Provision of Pro~ram Services.
(1) SUBRECIPIENT shall not on the ground of race, color,
national origin or sex, exclude any person from
participation in, deny any person the benefits of, or
subject any person to discrimination under any program or
activity funded in whole or in part with CDBG funds.
(2) SUBRECIPIENT shall not under any program or activity
funded in whole or in part with CDBG funds, on the ground
of race, color, national origin, or sex:
(a) Deny any facilities, services, financial aid
or other benefits provided under the program or
activity.
(b) Provide any facilities, services, financial
aid or other benefits which are different or are
provided in a different form from that provided to
others under the program or activity.
(c) Subject to segregated or separate treatment in
any facility in, or in any matter of process
related to receipt of any service or benefit under
the program or activity.
(d) Restrict in any way access to, or in the
enjoyment of any advantage or privilege enjoyed by
others in connection with facilities, services,
financial aid or other benefits under the program
or activity.
(e) Treat an individual differently from others in
determining whether the individual satisfies any
admission, enrollment, eligibility, membership, or
other requirement or condition which the individual
must meet in order to be provided any facilities,
services or other benefit provided under the
program or activity as an employee.
(f) Deny an opportunity to participate in a
program or activity as an employee.
(3) SUBRECIPIENT may not utilize criteria or methods of
administration which have the effect of subjecting
individuals to discrimination on the basis of race,
color, national origin, or sex, or have the effect of
defeating or substantially impairing accomplishment of
the objectives of the program or activity with respect to
individuals of a particular race, color, national origin,
or sex.
(4) SUBRECIPIENT, in determining the site or location of
housing or facilities provided in whole or in part with
CDBG funds, may not make selections of such site or
location which have the effect of excluding individuals
from, denying them the benefits or, or subjecting them to
discrimination on the ground of race, color, national
origin, or sex, or which have the purpose or effect of
defeating or substantially impairing the accomplishment
of the objectives of the Civil Rights Act of 1964 and
amendments thereto.
(5) In administering a program or activity funded in
whole or in part with CDBG funds regarding which the
SUBRECIPIENT has previously discriminated against persons
on the ground of race, color, national origin, or sex,
the SUBRECIPIENT must take affirmative action to overcome
the effects of prior discrimination.
Even in the absence of such prior discrimination, a
SUBRECIPIENT in administering a program or activity
funded in whole or in part with CDBG funds should take
affirmative action to overcome the effects of conditions
which would otherwise result in limiting participation by
persons of a particular race, color, national origin, or
sex, to exclude individuals from participation in, to
deny them the benefits of, or to subject them to
discrimination under any program or activity to which
CDBG funding applies, the SUBRECIPIENT has an obligation
to take reasonable action to remove or overcome the
consequences of the prior discriminatory practice or
usage, and to accomplish the purpose of the Civil Rights
Act of 1964.
The SUBRECIPIENT shall not be prohibited by this part
from taking any eligible action to ameliorate any
imbalance in services or facilities provided to any
geographic area or specific group of persons within its
jurisdiction where the purpose of such action is to
overcome prior discriminatory practice or usage.
(6) Notwithstanding anything to the contrary in Sub
Section 3.2 (a), SubSubSections 1 through 5, nothing
contained herein shall be construed to prohibit any
SUBRECIPIENT from maintaining or constructing separate
living facilities or rest room facilities for the
different sexes. Furthermore, selectivity on the basis
of sex is not prohibited when institutional or custodial
services can properly be performed only by a member of
the same sex as the recipients of the services.
b. Employment Discrimination.
(1) SUBRECIPIENT shall not discriminate against any
employee or application for employment because of race,
color, religion, sex, national origin, age or handicap.
SUBRECIPIENT shall take affirmative action to insure that
applicants are employed, and that employees are treated
during employment, without regard to their race, color,
religion, sex, national origin, age or handicap. Such
action shall include, but not be limited to, the
following: employment, upgrading, demotion or transfer,
recruitment or recruitment advertising, layoff or
termination, rate of pay or other forms of compensation
and selection for training including apprenticeship.
SUBRECIPIENT agrees to post in conspicuous places
available to employees and applicants for employment,
notices setting forth the provisions of this
nondiscrimination clause.
(2) SUBRECIPIENT shall, in all solicitations or
advertisements for employees placed by or on behalf of
SUBRECIPIENT, state that all qualified applications will
receive consideration for employment without regard to
race, color, religion, sex, national origin, age or
handicap.
(3) SUBRECIPIENT shall send to each labor union or
representative of workers with which it has a collective
bargaining agreement or other contractor understanding,
a notice to be provided by CITY's contracting officers
advising the labor union or workers' representative of
SUBRECIPIENT'S commitments under Section 202 of Executive
Order No. 11246 of September 14, 1965, and shall post
copies of the notices in conspicuous places available to
employees and applicants for employment.
(4) SUBRECIPIENT shall comply with all provisions of
Executive Order 11246 of September 24, 1965, and of the
rules, regulations, and relevant orders of the Secretary
of Labor.
(5) SUBRECIPIENT shall furnish to the CITY all
information and reports required by Executive Order No.
11246 of September 24, 1965, and of the related rules,
regulations, and orders.
(6) SUBRECIPIENT shall include the provisions of Section
3.2, "Affirmative Action Policy," in every subcontract or
purchase order unless exempted by rules, regulations, or
order of the Secretary of Labor issued pursuant to
Section 204 of Executive Order No. 11246 of September 24,
1965, so that such provisions will be binding upon each
subcontractor or vendor. SUBRECIPIENT shall take such
action with respect to any subcontractor or purchase
order as the CITY may direct as a means of enforcing such
provisions including sections for noncompliance:
Provided, however, that in the event SUBRECIPIENT becomes
involved in, or is threatened with, litigation with a
subcontractor or vendor as a result of such direction by
the CITY, SUBRECIPIENT may request the United States to
enter into such litigation to protect the interests of
the United States.
(7) SUBRECIPIENT shall not discriminate on the basis of
age in violation of any provision of the Age
Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) or
with respect to any otherwise qualified handicapped
individual as provided in Section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794).
(8) SUBRECIPIENT shall also provide ready access to and
use of all CDBG fund assisted buildings to physically
handicapped persons in compliance with the standards
established in the Architectural Barriers Act of 1968 (42
U.S.C. 4151 et seq.).
c. Section 504. SUBRECIPIENT agrees to comply with any
federal regulations issued pursuant to compliance with Section
504 of the Rehabilitation Act of 1973 which prohibits
discrimination against the handicapped in any federally
assisted program.
d. Fair Housinq Act. SUBRECIPIENT shall administer all
programs and activities in a manner to affirmatively further
the policies of the Fair Housing Act which prohibits any
person from discriminating in the sale or rental of housing,
the financing of housing, or the provision of brokerage
services, including otherwise making unavailable or denying a
dwelling to any person because of race, color, religion, sex,
national origin, handicap or familial status.
3.3 Conflict of Interest. In the procurement of supplies,
equipment, construction and services by SUBRECIPIENT, the
conflict of interest provisions in Attachment 0 of OMB Circular No.
A-il0 and 24 C.F.R. 570.611 shall apply.
3.4 Independent Contractor. SUBRECIPIENT agrees that the
performance of obligations hereunder are rendered in its capacity
as an independent contractor and that it is in no way an employee
or agent of the CITY.
3.5 Licensing. SUBRECIPIENT agrees to obtain and maintain all
licenses, registrations, accreditations, and inspections from all
agencies governing its operations. SUBRECIPIENT shall insure that
its staff shall also obtain and maintain all required licenses,
registrations, accreditations, and inspections from all agencies
governing SUBRECIPIENT'S operations hereunder.
3.6 Labor Standards. SUBRECIPIENT agrees to comply with the
requirements of the Secretary of Labor in accordance with the
Davis-Bacon Act as amended, the provisions of Contract Work Hours,
the Safety Standards Act, the Copeland "Anti-Kickback" Act and all
other applicable federal, state and local laws and regulations
pertaining to labor standards insofar as those acts apply to the
performance of this covenant.
3.7 Relocation. SUBRECIPIENT is responsible for compliance with
Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 as amended (HUD Handbook 1378) and Section 104
(d) of the Housing and Community Development Act of 1974 as amended
which requires grantees to certify that it is following a
residential antidisplacement and relocation assistance plan
providing one-for-one replacement units.
3.8 Assianabilit¥/Chanqe Of Subrecipientship.
a. SUBRECIPIENT shall notify the City, in writing, prior to
the completion of any change of ownership regarding the
PROPERTY.
b. SUBRECIPIENT shall not assign or transfer any interest in
this Agreement, whether by assignment, delegation or novation,
without the prior written consent of CITY; provided, however,
that claims for money due or to become due to SUBRECIPIENT
from CITY under this Agreement may be assigned to a bank,
trust company or other financial institution, or to a trustee
in bankruptcy, without such approval.
c. Notice of any proper assignment or transfer shall be
promptly furnished to CITY.
d. No conveyance, assignment or other transfer of any
interest in the premises or the Agreement by SUBRECIPIENT, or
any successor or assignee thereof, shall be valid for any
purpose whatsoever unless the CITY has given its prior written
approval, which approval shall not be given unless the grantee
or transferee has accepted in writing the obligations incurred
by the PROPERTY OWNER pursuant to this COVENANT and the CITY
is satisfied that the grantee/transferee is fully capable of
performing the obligations.
e. Any assignment, delegation or novation other than as
provided above shall be void and inoperative.
3.9 Hold Harmless.
a. SUBRECIPIENT agrees to indemnify and hold CITY and CITY's
officers, officials, employees and agents harmless from, and
against any and all liabilities, claims, demands, causes of
action, losses, damages and costs, including all costs of
defense thereof, arising out of, or in any manner connected
directly or indirectly with, any acts or omissions of
SUBRECIPIENT or SUBRECIPIENT's agents, employees,
subcontractors, officials, officers or representatives. Upon
demand, SUBRECIPIENT shall, at its own expense, defend CITY
and CITY's officers, officials, employees and agents, from and
against any and all such liabilities, claims, demands, causes
of action, losses, damages and costs.
b. SUBRECIPIENT's obligation herein includes, but is not
limited to, alleged defects in the plans, specifications and
design of the project; but does not extend to liabilities,
claims, demands, causes of action, losses, damages or costs
that arise out of a defect in the plans, specifications or
design that is a result of a change required by CITY to the
SUBRECIPIENT's proposed plans, specifications or design so
long as such change is objected to, in writing, by
SUBRECIPIENT, and the writing is filed with the City Engineer
more than ten days prior to the commencement of work.
c. By approving the improvement plans, specifications and
design. CITY shall not have waived the protections afforded
herein to CITY and CITY's officers, officials, employees and
agents or diminished the obligation of SUBRECIPIENT who shall
remain obligated in the same degree to indemnify and hold CITY
and CITY's officers, officials, employees and agents, harmless
as provided above.
d. SUBRECIPIENT's obligation herein does not extend to
liabilities, claims, demands, causes of action, losses,
damages or costs that arise out of the CITY's intentional
wrongful acts, CITY's violations of law, or CITY's sole active
negligence.
3.10 Insurance.
a. The SUBRECIPIENT shall maintain insurance, in form
acceptable to CITY, in full force and effect throughout the
term of this COVENANT. The policy or policies of said
insurance, except for Workers' Compensation, shall name the
CITY as an "Additional Insured" and shall, as a minimum,
provide the following forms of coverage in the amounts
specified:
(1) Workers' Compensation to statutory limits; and
(2) Premises liability minimums:
(a) $500,000 bodily injury, each person; and
(b) $1.000.000 bodily injury, each occurrence; and
(c) $250.000 property damage:
OR
In lieu of (a), (b), and (c) above,
$2,200,000.00 combined single limit bodily
injury and property damage.
(3) Fire and extended coverage, including water damage
as an indirect result of fire and debris cleanup
provision, in an amount not less than 90 percent of the
full replacement of all improvements within the project.
b. The liability insurance shall be in force from the first
day of the term of this COVENANT.
c. Each policy of insurance, except for Workers'
Compensation, shall contain the following clauses:
(1) "It is agreed that this policy shall not be canceled
nor the coverage reduced until thirty (30) days after the
City of Encinitas shall have received written notice of
such cancellation or reduction. Said notice shall be
sent by certified mail or registered mail to the City."
(2) "The insurer waives any right of subrogation against
the CITY which might arise by reason of any payment under
this policy only as it pertains to the terms and
conditions of this Agreement."
(3) "This coverage is considered primary coverage for
the CITY as an additionally insured, except for sole
negligence on the part of the City or City employees."
d. SUBRECIPIENT agrees to deposit with CITY, at or before
the effective date of this COVENANT, a certificate for each of
the policies necessary to satisfy the insurance provision of
this COVENANT, and to keep such insurance in effect during the
entire term of this COVENANT. Failure to obtain and maintain
said insurance shall be grounds for immediate termination of
the COVENANT.
e. CITY shall retain the right at any time to review the
coverage, form, and amount of the insurance required hereby.
If, in the opinion of the CITY, the insurance provisions in
this COVENANT do not provide adequate protection for CITY and
for persons using the PROPERTY, CITY may require the
SUBRECIPIENT to obtain insurance sufficient in coverage, form
and amount to provide adequate protection. CITY's
requirements shall be reasonable but shall be designed to
assure protection from and against the kind and extent of
risks which exist at the time a change in insurance is
required.
f. The CITY shall notify the SUBRECIPIENT in writing of
changes in the insurance requirements, and if SUBRECIPIENT
does not deposit with CITY within sixty (60) days of such
notice a new certificate for each policy or policies of
insurance incorporating such changes, this COVENANT may be
terminated.
g. The procuring of such required policy or policies of
insurance shall not be construed to limit SUBRECIPIENT's
liability hereunder to fulfill the indemnification provisions
and requirements of this COVENANT. Notwithstanding said
policy or policies of insurance, SUBRECIPIENT shall be
obligated for the full and total amount of any damage, injury,
or loss cause by it or its agents', tenants', or guests'
negligence, or neglect connected with this COVENANT or with
use or occupancy of the PROPERTY.
h. Said insurance shall include the risks and obligations of
any tenant sublessee, consignee, permittee, and/or licensee,
in an amount satisfactory to the CITY.
4.0 MISCELLANEOUS PROVISIONS
4.1 Termination or Suspension of Aqreement.
a. CITY or SUBRECIPIENT may terminate this Agreement by
giving written notice to the other party thirty (30) days
prior to effective date of termination. Additionally, the
CITY Manager shall have the right, in accordance with 24
C.F.R.85.43, to suspend or terminate this Agreement
immediately or withhold payment of any invoice for failure of
the SUBRECIPIENT to comply materially with any term or
condition of this Agreement. Should the CITY Manager decide
to terminate this Agreement after a full evaluation of all
circumstances has been completed, the SUBRECIPIENT shall, upon
written request, have the right to appeal the CITY Manager's
decision to the City Council. A copy of the appeal process
will be attached to any termination notice.
b. If the CITY finds that the SUBRECIPIENT has violated the
terms and conditions of this Agreement, the SUBRECIPIENT may
be required to:
(1) Rep~all monies received from~e CITY under this
Agreement; and/or
(2) Transfer possession of all materials and equipment
purchased with grant money to the CITY.
c. In the case of termination, a final payment may be made
to the SUBRECIPIENT upon receipt of a Final Report and
invoices covering eligible .costs incurred prior to
termination. The total of all payments, including the final
payment, shall not exceed the amount specified in this
Agreement.
4.2 Termination for Convenience. In accordance with 24 Code of
Federal Regulations 85.44, the CITY may terminate this Agreement
for convenience.
4.3 Reversion of Assets. Upon termination or expiration of the
term of this Agreement, the SUBRECIPIENT shall transfer to the CITY
any CDBG funds on hand including program income as defined in
570.504 at the time of such termination or expiration and any
accounts receivable attributable to the use of GRANT funds. Any
real property under the SUBRECIPIENT'S control that was acquired or
improved in whole or in part with GRANT funds shall either be:
a. Used to meet one of the national objectives stated in 24
C.F.R. 570.208 until five (5) years after termination or
expiration of this Agreement, or for such longer periods of
time as determined to be appropriate by the CITY; or
b. Disposed of in a manner that results in the CITY being
paid:
(1) An amount equal to the GRANT plus interest from the
date of the GRANT at the rate of 101 per year until the
date of full repayment; and
(2) An amount equal to the fair market value of the
PROPERTY at the time of termination or expiration, less
the amount needed to satisfy the obligation for funds
used to acquire the PROPERTY.
4.4 In the event of SUBRECIPIENT'S failure to comply with any
rules, regulations, or orders required to be complied with pursuant
to this Agreement, CITY may cancel, terminate, or suspend in whole
or in part its performance and SUBRECIPIENT may be declared
ineligible for further Government contracts in accordance with
procedures authorized in Executive Order No. 11246 of September 24,
1965, and such other sanctions as may be imposed and remedies
invoked as provided in Executive Order No. 11246 of September 24,
1965, or by rule, regulation, or order of the Secretary of Labor,
or as otherwise provided by law.
4.5 ENFORCEMENT.
a. If the SUBRECIPIENT fails to duly observe or perform any
covenant, agreement or obligation under this COVENANT for a
specific period after notice thereof is given by the CITY,
then the CITY may take any one or more of the following steps:
(1) By~damus or other s or proceeding a~~-~
law or in equity, require the SUBRECIPIENT to perform the
covenants, agreements and obligations under this
COVENANT, or enjoin any acts or things which may be
unlawful or in violation of the rights of the CITY
thereunder;
(2) Have access to, and inspect, examine and make copies
of, all of the books and records of the SUBRECIPIENT
pertaining to the SUBRECIPIENT's performance of this
covenant;
(3) Take such other action at law or in equity as may
appear necessary or desirable to enforce the covenants,
agreements and obligations of the SUBRECIPIENT under this
COVENANT; or
(4) Terminate this COVENANT.
b. SUBRECIPIENT shall obtain housing elsewhere for any tenant
household adversely affected by the Owner's noncompliance.
The Owner shall reimburse the CITY for all costs incurred
which exceed the maximum rent allowed pursuant to this
COVENANT. Reimbursement shall be made within thirty (30)days
of receipt of a billing from the CITY. In the event
SUBRECIPIENT fails to remit the full amount when due, there
shall be imposed an additional 5% for each fifteen (15) days,
or fraction thereof, that the delinquency exists, it being
agreed that the actual loss due to delinquency is extremely
difficult to determine and that the additional amount set
forth herein is a reasonable approximation of the actual loss.
When the SUBRECIPIENT has remedied the noncompliance to the
CITY's satisfaction, the reimbursement obligation shall cease.
4.6 Notices. All notices to the parties required by this
Agreement shall be in writing and addressed as follows,
TO CITY:
CITY of Encinitas
Community Development
505 South Vulcan Avenue
Encinitas, CA 92024
TO SUBRECIPIENT:
North Coast Housing, Inc.
c/o Law offices of Dwight Worden
740 Lomas Santa Fe Drive, Suite 102
Solana Beach, CA 92075
4.7 Exclusivity and Amendment of Aqreement. This Agreement
supersedes any and all other agreements, either oral or in writing,
between the parties hereto with respect to the services of
SUBRECIPIENT and provision of CDBG funds by CITY and contains all
the, covenants and agreements between the parties with respect to
the conditions of said services and funding in any manner
whatsoever. Each party to this Agreement acknowledges that no
representations, inducements, promises or agreements, orally or
otherwise, have been made by any party, or anyone acting on behalf
Of any party, whi~are not,embodied herein that no oth~v
agreement or amendment hereto shall be effective unless executed in
writing and signed by both CITY and SUBRECIPIENT.
4.8 Laws Governina This Aareement. This Agreement shall be
governed by and construed in accordance with the laws of the state
of California, all applicable federal statutes and regulations as
amended, and all applicable local laws.
4.9 Severability. The invalidity in whole or in part of any
provision of this agreement shall not void or affect the validity
of any other provisions of this Agreement.
4.10 Construction of Aqreement. The provisions of this Agreement
and its Exhibits A, and B, shall be construed as a whole. The
captions preceding the text of each section are included only for
convenience of reference and shall be disregarded in the
construction and interpretation of this Agreement.
community Development Block Grant Program
city of Enolnltas
STATEMENT OF WORK
Contract Period: November 9, 1993 to Life of Building at 2074
Manchester Ave., Cardiff, CA.
Agency: North Coast Housing, Inc.
Address: c/o Law offices of Dwight Worden,
740 Lomas Santa Fe Drive, Suite 102
Solana Beach, CA 92025
Contact Person: Chuck Orr Phone: 619-436-8673
Project Name: Acquisition of property at 2074 Manchester Ave,
Cardiff, CA.
PROJECT GOALS AND OBJECTIVES
Acquire property in order to provide four units of iow income
housing.
PROJECT OBJECTIVES PERFORMANCE MF2~SURES
PROVISION OF UNITS.
SUBRECIPIENT shall create no less than four rental units
("AFFORDABLE RENTAL UNITS" hereinafter) on the PROPERTY on or
before November 10, 1993, which shall be occupied only by
households qualified in accordance with this COVENANT.
2~ DESIGN OF UNITS. [Not Applicable]
MAINTENANCE OF UNITS.
a. [Not Applicable]
b. SUBRECIPIENT shall maintain and keep the PROPERTY, to
include without limitation, the AFFORDABLE RENTAL UNITS and
related facilities, in a decent, good, safe, sanitary and
habitable condition during the term of this COVENANT and shall
repair and replace the affordable units as required.
c. The CITY may inspect or cause to be inspected the PROPERTY
and the related facilities from time to time, including prior
to initial occupancy of the units, as may be necessary to
assure that the SUBRECIPIENT is meeting the obligation to
maintain the units in accordance with this COVENANT.
d. If the CITY notifies the SUBRECIPIENT of a failure to
maintain the PROPERTY, and the SUBRECIPIENT fails to take
corrective action within the time prescribed in the notice,
the CITY may exercise any of its rights under this COVENANT or
applicable federal, state, or local law, to enter upon the
property and remedy such failure.
SUBRECIPIENT shall provide the AFFORDABLE RENTAL UNITS for the
life of the building.
ON-SITE PROPERTY MANAGER. [Not Applicable]
OUALIFICATION OF TENANT HOUSEHOLDS.
a. SUBRECIPIENT shall make available the AFFORDABLE RENTAL
UNITS only to low income households which are defined as being
persons or families with an income which does not exceed 60%
of the median income for San Diego County as determined by the
United States Department of Housing and Urban Development
("HUD" hereinafter).
b. At the commencement of this COVENANT and each July 1
thereafter, and continuing so long as the AFFORDABLE RENTAL
UNITS are being provided, the CITY shall inform the
SUBRECIPIENT of the criteria for SUBRECIPIENT to use for
determining the income level of households. The criteria
shall be in accordance with HUD requirements.
c. The SUBRECIPIENT shall investigate the financial
circumstances of potential tenant households and shall be
responsible for obtaining from each household applicant the
information, supporting documentation, and certifications
required. Based upon this information and any other deemed
necessary by the SUBRECIPIENT, the SUBRECIPIENT shall
determine the applicant's eligibility to occupy an AFFORDABLE
RENTAL UNIT reserved in accordance with the provisions of this
COVENANT.
d. Before entering into any lease or rental agreement
concerning an AFFORDABLE RENTAL UNIT provided in accordance
with this COVENANT, the SUBRECIPIENT shall certify in writing
that the potential tenant household satisfies the requirements
for the appropriate income level.
e. The SUBRECIPIENT shall reexamine and recertify the income
status of each existing tenant household, at the time of
renewal of an existing lease or rental agreement, but in no
case less than every 12 months.
PREFERENCE FOR TENANTS.
a. In obtaining tenants for the AFFORDABLE RENTAL UNITs,
SUBRECIPIENT shall give, in the order listed in this section,
preference to:
(1) Persons currently residing within the City;
(2) Persons employed by the City;
(3) Persons employed within the City; and
(4) All other financially qualified households.
b. In the event that qualified households cannot be found,
the SUBRECIPIENT may request the City Council to temporarily
suspend the ~irements. m by
c. Qualified households shall be placed on the appropriate,
preference list on a first come, first served basis.
8. MAXIMUM RENT FOR AFFORDABLE RENTAL UNITS.
a. The maximum amount of monthly rent that may be charged by
the SUBRECIPIENT for the AFFORDABLE RENTAL UNITS, is computed
as follows: Determine the number of bedrooms in the unit.
Calculate the rent for the unit by determining the income
level to use as the base income. (Chart below) Then apply the
following formula: Monthly rents shall not exceed 30% of 60%
of the San Diego County median income as determined annually
by HUD divided by 12(months).
Size of Unit bv Bedroom Family income level by
size to use as -base
income for formula
One Bedroom 2 Person Household
Two Bedroom 4 Person Household
Three Bedroom 6 Person Household
Four Bedroom 8 Person Household
For example, the rent for a one bedroom unit would be $526
based on the median income of a 2 person household of $21,050.
9. SUBRECIPIENT shall prepare a management plan to the
satisfaction of the CITY Community Development Director for the in
place maintenance of asbestos-containing building materials (ICBM)
as identified in the Asbestos Survey Report, September 30, 1993.
SUBRECIPIENT shall submit the Plan to the CITY within 60 days of
the close of escrow by which SUBRECIPIENT acquires the PROPERTY.
After the Plan is approved by the CITY, SUBRECIPIENT shall fully
comply with the provisions of the Plan.
10. RENTAL AGREEMENT BETWEEN SUBRECIPIENT AND TENANT.
Rental of the AFFORDABLE RENTAL UNITS shall be established
only by a written rental agreement between the SUBRECIPIENT and the
qualified household. The tenant household shall be prohibited from
assigning or subletting the unit and shall require personal
occupancy of the person or persons qualifying for the affordable
unit. The rental agreement shall also specify the dates rental
increases are permitted, security deposit, project regulations and
other information which will make explicit the conditions under
which the unit is rented. The rental agreement must comply with
all applicable provisions of the California Civil Code relating to
the hiring of real property.
&GENCY PROJECT BUDGET
Acquisition of 2074 Manchester $137,000