1998-359994
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1735
DOC # 1998-0359994
JUN 15, 1998 8:00
OFFICIAl RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE.
GREGORY J. SMITH, COUNTY RECORDER .
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RECORDING REQUESTED BY {jPI ~ 770/
AND WHEN RECORDED MAIL TO:
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CITY OF ENCINIT AS
COMMUNITY DEVELOPMENT DEPARTMENT
505 S. Vulcan Ave.
Encinitas, CA 92024
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This document is exempt from the
payment of a recording fee pursuant
to Government Code Section 6103.
COMMUNITY DEVELOPMENT DEPT.
OF THE CITY OF ENCINITAS
BY;;(:N~
Its: LIlY /'Y( C,{
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Dated: 4/23 ,1998
REGULATORY AGREEMENT
This Regulatory Agreement dated 4/ 2 ~ 1998, is made and entered into by and between
the City of Encinitas (hereinafter the "City"), and North Coast Housing (hereinafter the
"Contractor ").
RECITALS
A. The Contractor is or is about to become the owner of real property (hereinafter
the "Property") described in Attachment A attached hereto and made a part
hereof. Contractor has applied to the City for fmandal assistance in order to
develop and operate a "Housing Project" (hereinafter the "project"). That
fmancial assistance will be provided by the City subject to the availability of
funds and subject to the requirements of the specific source of funds utilized for
the Project (hereinafter the"Program"). The Contractor agrees to be bound and
City of Encinitas-Regulatory Agreement
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to abide by all applicable Program statutes, rules, and regulations with
applicable to the Project and the fInancial assistance provided by the City.
B. The Housing Project will be used exclusively by the owner entity for secular
purposes and will be available to all persons regardless of religious affIliation.
There will be no religious or membership criteria for tenants of the Project.
C. The Contractor and the City have entered into a CDBG Affordable Housing
Agreement, dated April 23 . 1998 regarding the Project and the fInancial
assistance to be provided therefor.
D. As an inducement to the City to provide the [mancial assistance made available
under the Program, the Contractor has agreed to enter into this Regulatory
Agreement and has consented to be regulated and restricted as provided hereiI.l.
NOW, THEREFORE, the parties hereto agree as follows:
1. RECITALS.
The foregoing recitals, the Contractor's application package as approved by the City,
and the Standard Agreement and its other Exhibits are a part of this Regulatory
Agreement.
2. COMPLIANCE WITH LAW.
The Contractor agrees that at all times its acts regarding the Project shall be in
conformity with all provisions of the Program including the statutes, rules and
regulations and such policies and procedures of the City pertaining thereto, as amended
and in effect from time to time. The Contractor acknowledges that it is aware of such
applicable statutes, rules and regulations, and that professional advice is available as
necessary for the purpose of enabling the Contractor to fully comply with such statutes,
rules and regulations.
3. TERM OF AGREEMENT.
The term of this Agreement shall commence on the date hereof and shall continue for
at least 55 years from the date that the Project is certifIed for occupancy.
4. RENT SCHEDULE.
At the time of initial occupancy, Contractor shall charge only those rents approved by
the City and which are established pursuant to Program statutes and regulations. Rents
will provide affordability to tenants, charging no more than 30 percent of the 60
percent of the median income for a family of three. Subsequent increases or decreases
in rent including special rent increases, shall be charged only if consistent with the
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Program statutes and regulations. If at any time during the period of this Agreement
Contractor fails to charge rent according to the Rent Schedule, Contractor will repay
all City funds. Repayment will be due within 30 days from the date of a written notice
of violation delivered by the City. A copy of the rent schedule in effect at the time of
execution of this Regulatory Agreement is attached hereto as Attachment B and
incorporated herein. Contractor agrees to place as a deed restriction on the Property,
the Rent Schedule.
5. ELIGIBILITY FOR ADMISSION.
An applicant is eligible for admission to the Project lottery selection process if he or
she meets all of the following criteria:
(a) The applicant meets the requirements of the CDBG regulations.
(b) Contractor may determine that an applicant is not eligible for admission if, on
the basis of substantial, factual evidence of that person's prior actions there is
good cause to believe that the applicant will repeatedly fail to pay rent, will
create a substantial threat to the health and safety of other residents, or will
repeatedly breach material requirements of the lease. Unsubstantiated oral
statements will not be deemed substantial factual evidence.
(c) The above eligibility criteria shall be exclusive and no other factors shall be
considered in determining eligibility of applicants.
6. RESIDENT SELECTION PROCEDURES
Contractor shall rent a housing unit in the Project to eligible residents in accordance
with the Program Regulations and the Management Plan approved by and on me with
City pursuant to Paragraph 17 of this Regulatory Agreement. That Management Plan
shall include at least the following:
(a) detailed actions to be taken by Contractor to affIrmatively market and rent all
units in a manner which ensures equal access to all persons in any category
protected by federal, state, or local laws governing discrimination, and without
regard to any arbitrary factor;
(b) specify reasonable criteria for determination of resident eligibility;
(c) require that eligible residents be selected based on wait list method approved by
City;
(d) require eligible applicants to be notified of eligibility and, based on turnover
history, be notified of when a unit may be available;
City of Encinitas-Regulatory Agreement
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(e) require ineligible applicants to be notified in writing of the reason for their
ineligibility ;
(f) specify procedures through which applicants deemed to be ineligible may appeal
this determination;
(g) require maintenance of a waiting list of eligible applicants;
(h) prohibit discrimination against any prospective resident on the basis of race,
religion, sex, age, disability, marital status, or any other arbitrary factor in
violation of any state, federal, or local law governing discrimination in rental
housing; and
(i) address other selection issues provided for in the Program Regulations.
8. LEASE AND OCCUPANCY PROCEDURES.
(a) Each eligible applicant selected to occupy a unit shall enter into a written
occupancy agreement or lease with the Contractor, the form of which shall have
been approved by the City and which shall contain those provisions as are
required by the Program Regulations and this Regulatory Agreement. The rental
agreement or lease shall provide for good cause eviction and appeal and
grievance procedures, all of which shall be in accordance with the Program
Regulations.
(b) The Contractor shall establish reasonable rules of conduct and occupancy which
shall be consistent with State and Federal law and the Program Regulations. The
rules shall be in writing and shall be given to each resident. Any amendment
shall be effective no less than 30 days after giving written notice thereof to each
resident.
(c) Leases and the landlord-tenant relationship shall be subject to California law,
Program statutes and regulations, and the provisions of this Regulatory
Agreement.
9. REPLACEMENT CHARGES.
The charges to residents covering damages to the Housing Project property attributable
to the resident shall be made in accordance with a schedule of replacement costs which
shall be adopted by the Contractor, posted in the management office of each Housing
Project, and shown to applicant at the time the lease is signed.
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10. TERMINATION OF LEASE.
(a) The resident may end the lease at any time with a 30 day Notice. Rent is only
paid for the period the resident actually occupied the housing unit. Any unused
rent shall be returned to the resident. If the resident gives at least a 30 day
notice of intent to vacate the Housing Project the Contractor must, on the day
the resident moves out, return the unused rent to the resident. If the resident
does not give at least 30 days notice of intent to leave, the Contractor has two
(2) weeks within which to send the unused rent to the resident's forwarding
address. In the event the resident does not give Contractor a forwarding
address, Contractor shall hold the unused rent for six months and return it to the
resident if the resident picks it up or provides a forwarding address within six
months. After six months, the rent is forfeited to the Contractor.
(b) The Contractor may require the resident to move out if the resident has
seriously or repeatedly violated important terms of the lease agreement such as
not paying rent; causing serious interference with the rights of other residents;
knowingly giving false statements of important facts to the Contractor
concerning eligibility for the Project; or for other good cause.
(c) In order for the Contractor to begin termination of the lease, it must give. the
resident a written notice stating the reason(s) for termination and notifying the
resident of the right to request a hearing as allowed under the grievance
procedure. Requirements of the notice and hearing procedure are set forth in the
Program Regulations.
(d) If the resident has not paid rent, the Contractor shall give the resident a seven
(7) day notice to either pay the rent or move out. If the resident's actions cause
an immediate threat to the health and safety of the other residents, the
Contractor shall give the resident a reasonable time to move out, but not less
than three (3) days.
(e) In all other cases, the resident shall be given at least 30 days notice to either
comply with the terms of the lease or move out.
11. CONTRACTOR RESPONSmILITIES.
Contractor shall provide administrative, fiscal, and management services, employ staff
and purchase, rent, and use supplies and materials as needed to operate, maintain and
protect each Housing Project in accordance with this Regulatory Agreement and the
Program statutes and regulations. This shall include, but not be limited to, compliance
with the grounds and procedures governing grievance hearings as set forth in the
Program Regulations. In addition, grievance hearings, conferences, notices, and
summaries pursuant to this Regulatory Agreement shall be in English or in the
language of the majority of residents.
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12. ANNUAL OPERATING BUDGET.
(a)
The fiscal year for the Project shall commence on
initial period of occupancy, and conclude on
of each year after the
of each year.
(b) The Contractor will submit to the City a proposed operating budget for the
Project not less than ninety (90) days subsequent to the compl~tion of the
Project and prior to the beginning of each fiscal year of the Project thereafter.
The proposed operating budget shall set forth the anticipated Project Income of
the Project, including such payments as may be provided from the Program and
other public and private sources, and a detailed estimate of all Operating Costs,
capital improvements, deposits to all accounts required by the City, and all
other expenses in the format required by the City. Unless the City objects to the
proposed budget within ten (10) days after submission of a complete proposed
budget, such proposed operating budget shall be the operating budget for the
fiscal year of the Project.
13. REQUIRED RESERVES
(a) At the time Contractor receives an award of permanent funding from the U.S.
Department of Housing and Urban Development or another source approved by
the City, Contractor shall propose to the City amounts of funding for a
"Replacement Reserve Account" and an "Operating Reserve Account" and
provide that information necessary to indicate the consistency of those accounts
with all of the following: the requirements of the funding entity, the feasibility
of the Project, and the requirements of the City under the Program.
(b) To the extent that these accounts are required or deemed necessary by the City,
initial deposits shall commence no later than the end of the second month
following the completion of construction, or such other date as the City may
designate in writing, and deposits shall be made in segregated interest-bearing
accounts in the name of the Contractor insured by an agency of the federal
government or other comparable federal insurance program. Consistent with the
requirements of the funding agencies, Contractor shall make monthly deposits
from Project Income in amounts as specified in the initial and annual budgets.
(c) Withdrawals from the accounts shall be made in a manner consistent with the
requirements of the funding entities and the City, if the City elects to impose
such requirements. The City may require its prior written approval of such
withdrawals. Withdrawals from a replacement reserve account shall be made
only for capital improvements such as replacing or repairing structural
elements, furniture, fixtures or equipment of the Project which are reasonably
required to preserve the Project. Reserves from the operating reserve account
may be utilized only to cover actual and reasonable operating expenses in excess
City of Encinitas-Regulatory Agreement
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of the approved budget amount, or to compensate for vacancy and bad debt
losses in the approved budget amount.
(d) If other funding entities have differing requirements, the City may amend this
paragraph in writing to be consistent with those other requirements.
14. USE OF INCOME FROM OPERATIONS
(a) The Contractor or Contractor's management agent shall promptly deposit all
Operating Income in a segregated account established in the Contractor's name
exclusively for the Project. There shall be no commingling of Project funds
with other funds controlled by the Contractor.
(b) Withdrawals from the account shall be made only in accordance with the
provisions of this Regulatory Agreement and the approved annual operating
budget, and shall be disbursed, applied or reserved and set aside for payment
when due, in the following priority, to the extent available: (1) salaries, wages
and other compensation due and payable to the employees or agents of the
Contractor employed on site in connection with the maintenance, administration
or operation of the Project, along with all withholding taxes, insurance
premiums, Social Security payments, and other payroll taxes or payments
required in connection with such employee; (2) all charges incurred in the
operation of the Project in connection with utilities, real estate taxes and
assessments, and liability, ftre and other hazard insurance; (3) payments of
required interest, principal, impounds, fees and charges, if any on loans which
are secured by the Property which have been approved by the City; (4) all other
expenses incurred to cover operating costs, including the fee of the managing
agent and any extraordinary expenses in accordance with the approved annual
operating budget of the Project or as otherwise approved in advance by the
City; (5) deposits to reserve accounts if applicable; and (6) distributions to the
Contractor or other person or entity upon City approval only.
(c) If other funding entities have differing requirements, the City may amend this
paragraph in writing to be consistent with those other requirements. In addition,
the Contractor may depart from the foregoing priorities of payment only upon
the express prior written approval of the City.
15. FINANCIAL ASSISTANCE
Contractor acknowledges that the City will not provide additional [mancial assistance to
the Contractor in the form of operational or capital subsidies for the Project. If Project
Income and annual HUD operational subsidies are insufficient to cover operating,
maintenance, and capital costs, Contractor agrees to assume full ftnancial responsibility
for the operating and maintenance of the Project throughout the term of this
Agreement.
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16. ACCOUNTING RECORDS
In a manner subject to City approval, Contractor shall maintain an accrual or modified
accrual basis general ledger accounting system that is posted monthly and that
accurately and fully show all assets, liabilities, income and expenses of the Project. All
records and books relating to this system shall be retained for not less than seven years
and in such a manner as to ensure that the records are reasonably protected from
destruction or tampering. All records shall be subject to City inspection and audit.
17. MANAGEMENT AND MAINTENANCE,
(a) Contractor is specifically responsible for all maintenance, repair, and
management functions including, without limitation, the following: selection of
residents, occupancy standards, complaint and grievance proceedings, evictions,
collection of rents and security deposits, routine and extraordinary repairs, and
replacement of capital items. Contractor shall maintain units and common areas
in a safe and sanitary manner in accordance with local health, building, and
housing codes; the Management Plan provided for in this Regulatory
Agreement; and in accordance with applicable Housing Quality Standards.
(b) Contractor is responsible for operating the Project in accordance with the
Management Plan developed by the Contractor as required by the City, and
which is approved by and on file with the City (the "Management Plan"). All
amendments to this Plan require prior written approval of the City.
(c) Contractor, with the prior written approval of the City, may contract with a
management agent for the performance of the services or duties required in
subparagraphs (a) and (b). However, such an arrangement does not relieve the
Contractor of responsibility for proper performance of these duties. Contractor
anticipates to contract with Mercy Management Services for property
management. Such a contract shall be subject to prior written approval by the
City and shall contain a provision allowing the Contractor to terminate the
contract without penalty immediately upon written notice. Upon a determination
by the City and written notice to the Contractor thereof, that the management
agent performing the functions required in subparagraphs (a) and (b) has failed
to operate the Project in accordance with this Regulatory Agreement and the
approved Management Plan, the Contractor shall exercise such right to
termination forthwith and shall make immediate arrangements, which shall be
subject to City approval, for continuing performance of the functions required
in subparagraphs (a) and (b).
(d) Upon a determination by the City, and written notice to the Contractor thereof,
that the Contractor has failed to operate the Project in accordance with this
Regulatory Agreement, the City may require the Contractor to contract with a
City of Encinitas-Regulatory Agreement
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qualified management agent to operate the Project, or to make such other
arrangements as the City deems necessary to ensure performance of the
functions required in subparagraphs (a) and (b).
(e) Contractor agrees to assume full financial and management responsibility for all
operating and maintenance costs, including all repairs, corrections and
replacements necessary to maintain and preserve the Project in a safe and
sanitary condition in accordance with standards prescribed by the City, all
obligations of this Regulatory Agreement, and all applicable State laws and
local ordinances.
(f) To the extent that a permanent lender or grantor imposes requirements which
are substantially different than the City's, the City may agree to adopt those
requirements or allow that entity to have primary responsibility for monitoring
management and maintenance.
18. REPORTING REQUIREMENTS.
The Contractor shall file with the City an annual report in a form approved by the City
no later than 60 days after the end of each fiscal year established for the Project. The
report shall contain such information as the City may then require, including, but not
limited to, the following:
(a) An audit of the fiscal condition of the Project is required whenever fmancial
assistance is provided by the City. This includes a fmancial statement indicating
surplus or deficits in operating accounts, a detailed itemized listing of income
and expenses, and the amounts of any fiscal reserves. Such audit shall be
prepared in accordance with the requirements of the City, certified by an
independent certified public accountant licensed in California or other
accountant acceptable to the City;
(b) Any substantial physical defects in the Project, including a description of any
major repair or maintenance work undertaken in the reporting year;
(c) The occupancy of the Project indicating:
(1) each tenant's annual income, family size and composition, race, length
of tenancy, actual monthly rent paid;
(2) records demonstrating the contractor's efforts to comply with its Fair
Housing Marketing and Equal Opportunity Plan;
(3) the number of residents actually occupying the project.
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(4) general management performance, including tenant relations and other
relevant information;
(d) A description of any fiscal or program difficulties related to the operation of the
Project consistent with the Program requirements;
(e) Each such report shall be subject to the approval of the City;
(f) At any time during the term of this Regulatory Agreement, the City or its
designee may enter and inspect the physical premises and inspect all accounting
and resident records pertaining to the construction, development, or operation
of the Housing Project. Upon request by the City, Contractor shall notify
residents of upcoming. inspections of their units or records in accordance with
State law;
(g) The City may request any other information that it deems necessary to monitor
compliance with requirements set forth in this Regulatory Agreement and the
Standard Agreement or Development Agreement. Such information shall be
provided promptly by the Contractor.
(h) Prior to the commitment of funds, the Contractor will submit to the City
certified copies of: (i) Equal Opportunity and Fair Housing marketing plan; (ii)
records demonstrating that the units meet or will meet all applicable property
standards; (iii) certification that no layering of federal funds has or will occur;
(iv) conflict of interest statements; (v) evidence of flood insurance; (vi) evidence
that the contractor, any subcontractor, agent, representative, or consultant
working on the Project is not debarred or suspended from participation in
federal programs.
(i) Prior to the disbursement of funds, the Contractor will provide City with: (i)
evidence of actual costs incurred or costs to be incurred; (ii) an Itemized
Request For Payment; (iii) a certification that all funds requested will be spent
in accordance with all federal requirements; (iv) and a final itemized
development and operating budget for the Project.
In addition to the annual report required above, if required by the City, the Contractor
shall file with the City an operating report including such information as the City may
reasonably require and submitted at intervals as directed by the City, but in no case
more often than on a monthly basis.
19. PROJECT RECORDS:
The Contractor shall maintain for a period consistent with the Program Regulations the
following records:
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(a) Records that demonstrate that each project meets the property standards in
Program Regulations;
(b) Records that demonstrate that each rental housing project meets the
requirements of Program Regulations for the required period of affordability.
Records must be kept for each family assisted;
(c) Records that demonstrate compliance with the requirements of Program
Regulations for tenant and participant protections;
(d) Records evidencing the guidelines adopted by the City and supporting the
certification for each housing project that the combination of federal assistance
to the project is not any more than is necessary to provide affordable housing,
as required by Program Regulations;
(e) Equal opportunity and fair housing records containing:
(1) Data on the extent to which each racial and ethnic group and single-
headed households (by gender of household head) have applied for,
participated in, or benefitted from, any program or activity funded in
whole or in part with City funds;
(2) Documentation of actions undertaken to meet the requirements of
Section 3 of the Housing Development Act of 1968, as amended (12
V.S.C. 1701u);
(3) Documentation and data on the steps taken to implement outreach to
minority-owned and female-owned businesses including data indicating
the racial/ethnic or gender character of each business entity receiving a
contract or subcontract of $25,000 or more paid, or to be paid, with City
funds; the amount of the contract or subcontract, and documentation of
Contractor's affirmative steps to assure that minority-business and
women's business enterprises have an equal opportunity to obtain or
compete for contracts and subcontracts as sources of supplies,
equipment, construction, and services;
(4) Documentation of the actions the Contractor has taken to affirmatively
further fair housing;
(5) Records demonstrating compliance with federal and state labor
requirements including contract provisions payroll records, and
certifications concerning debarment and suspension;
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20. HAZARD INSURANCE
The Contractor shall keep the Property and all improvements thereon insured by
carriers at all times satisfactory to the City against loss, by fire, earthquake and such
other hazards, casualties, liabilities and contingencies as the City may require and in
such amounts and for such periods as the City shall require. All insurance policies and
renewals thereof shall be issued by a carrier and in a form acceptable to City. Property
insurance policies shall name City as an additional loss payee. Insurance proceeds and
condemnation awards for any loss to or taking of the Housing Project shall be applied
or utilized in a manner which ensures that City's and Program interests are reasonably
fulfilled.
21. CERTAIN ACTS PROHIBITED.
The Contractor shall not make any sale, encumbrance, assignment or conveyance, or
transfer in any other form, of the Property or Project or any part thereof or of any of
its interest therein other than in accordance with the terms of this Regulatory
Agreement and shall not, without the prior approval of the City:
(a) Make any distribution not permitted by the terms of this Regulatory Agreement;
(b) Assign or transfer any right to operate or manage the Project, except pursuant
to Paragraph 17;
(c) Remodel, remove, add to, reconstruct or demolish any part of the Project or
impair any real or personal property of the Project without prior written
approval by the City;
(d) Require, as a condition of the occupancy or leasing of any dwelling unit in the
Project, any consideration or deposit in excess of that permitted by the Program
Regulations to guarantee the performance of the covenants of the lease. Any
funds collected as security deposits shall be kept separate and apart from all
other funds of the Project in a trust account with a depository insured by the
Federal Deposit Insurance Corporation or the Federal Savings and Loan
Insurance Corporation, and shall be held and disbursed in accordance with
California law and Paragraph 14 of this Regulatory Agreement. The balance of
such account shall at all times equal or exceed the aggregate of all outstanding
obligations under said account, plus accrued interest thereon;
(e) Permit the use of the units in the Project for any purpose except that which was
approved by the City;
(f) Incur any liability or obligation in connection with the Project, contingent or
otherwise;
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(g) Enter into any contract or contracts for supervisory or managerial services
except as permitted by this Regulatory Agreement; or
(h) Invest any funds from the Project in any property, real or personal, except as
authorized by this Regulatory Agreement or by the City or deposit any such
funds in a depository not authorized by this Regulatory Agreement or approved
by the City.
22. VIOLATION OF REGULATORY AGREEMENT BY THE CONTRACTOR.
In the event of the violation of any of the provisions of this Regulatory Agreement by
the Contractor, the City may give written notice thereof to the Contractor by registered
or certified mail addressed to the Contractor at the address stated in this Regulatory
Agreement, or to such other address as may have been designated by the Contractor,
and if such violation is not corrected to the satisfaction of the City within thirty (30)
days after the date such notice is mailed (or within such further time as the City, in its
sole discretion, may permit), the City may, without further prior notice, declare in
writing a default under this Regulatory Agreement effective on the date of such
declaration of default, and upon any such declaration of default the City may apply to
any court, State or Federal, for specific performance of this Regulatory Agreement; for
an injunction against any violation by the Contractor of this Regulatory Agreement; for
the appointment of a receiver to take over and operate the Project in accordance with
the terms of this Regulatory Agreement; or for such other relief as may be appropriate,
it being agreed by the Contractor that the injury to the City arising from a default under
any of the terms of this Regulatory Agreement would be irreparable and that it would
be extremely difficult to ascertain the amount of compensation of the City which would
afford adequate relief, in light of the purposes and policies of the Program.
23. AMENDMENT.
This Regulatory Agreement shall not be altered or amended except by writing executed
between the parties.
24. PARTIAL INVALIDITY.
If any provision of this Regulatory Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions
hereof shall not in any way be affected or impaired thereby, except to the extent that
the City determines, at its discretion, that the remaining provisions will not adequately
protect the interests of the City or fulfill the purposes of this Regulatory Agreement.
25. BINDING ON SUCCESSORS.
This Regulatory Agreement shall bind, and the benefits thereof shall inure to, the
respective parties hereto, their legal representatives, executors, administrators,
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successors in the office or interest, and assigns; provided, however, that the Contractor
may not assign this Regulatory Agreement or any of its obligations hereunder,
voluntarily or by operation of law, without the prior approval of the City.
26. GENDER.
The use of the plural in this Regulatory Agreement shall include the singular and the
singular shall include the plural; and the use of one gender shall be deemed to include
all genders.
27. RECORDING AGREEMENT.
This Regulatory Agreement, and any amendments thereof, shall, at the expense of the
Contractor, be acknowledged by each of the parties and recorded or referenced in the
official records of the City.
28. ELECTION OF REMEDIES: EVENT OF DEFAULT.
The remedies of the City hereunder or under any other instrument providing for or
evidencing the financial assistance provided herein are cumulative, and the exercise of
on~ or more of such remedies shall not be deemed an election of remedies and shall not
preclude the exercise by the City of anyone or more of its other remedies.
29. WAIVER.
No waiver by the City of any breach of or default under this Regulatory Agreement
shall be deemed to be a waiver of any other or subsequent breach or default hereunder.
30. CAPTIONS.
The captions used in this Regulatory Agreement are inserted only as a matter of
convenience and for reference and in no way defme, limit or describe the scope of the
intent of this Regulatory Agreement.
31. GOVERNING LAW.
This Regulatory Agreement shall be construed in accordance with and governed by the
laws of the State of California.
32. OTHER FEDERAL REGULATIONS.
Contractor agrees to carry out all activities in compliance with Title 24, Part 570 of
the Code of Federal Regulations; the Housing and Community Development Act of
1974 as amended; Title 24, Subtitle A, Part 58 of the Code of Federal Regulations;
Title VI of the Civil Rights Act of 1964; Title VIII of the Civil Rights Act of 1968;
City of Encinitas-Regulatory Agreement
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Section 109 of the Housing and Community Development Act of 1974; Section 3 of the
Housing and Urban Development Act of 1968; Executive Orders 11246, 11063 and
11593; the Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970; Title 24, Part 42 of the Code of Federal Regulations; OMB Circular A-122 ;
the Archeological and Historical Preservation Act of 1974; the Architectural Barriers
Act of 1968; the Hatch Act (Chapter 15 of Title 5, U.S.C.); the Flood Disaster
Protection Act of 1974; the Clean Air Act (42 U.S.C. Section 1857 et seq.) and the
Federal Water Pollution Control Act, as amended (33 U.S.C. Section 1251 et seq.);
and the Drug-Free Workplace Act of 1988.
33. NOTICES.
Written notices and other written communications by and between the parties hereto
shall be addressed as follows unless and until a party hereto has in writing,
communicated a different address to the other party hereto.
City
CONTRACTOR
City of Encinitas
505 S. Vulcan Ave.
Encinitas, CA 92024
North Coast Housing
3355 Mission Ave., Ste. 221
Oceanside, CA 92054
34. INDEMNIFICATION AND WAIVER.
(a) In addition to the provisions of the Standard Agreement, Contractor agrees to
indemnify the City and its agents, employees, and officers, and holds the City
and its agents, employees and officers harmless from, any losses, damages,
liabilities, claims, actions, judgments, court costs, and legal or other expenses
(including attorneys' fees) of every name, kind and description, which the City
may incur as a direct or indirect consequences of (i) the making of the Program
grant to Contractor, (ii) Contractor's failure to perform any obligations as and
when required by this Regulatory Agreement or the Standard Agreement; (ii)
any failure at any time of any of Contractor's representations or warranties to
be true and correct; (iv) any act or omission by Contractor, any contractor,
subcontractor, material supplier, engineer, architect or other person or entity
with respect to the Property or the construction, management, maintenance or
operation of the Housing Project; or (v) the presence of hazardous substances at
the Housing Project or on the Property. Contractor shall pay immediately upon
the City's demand any amounts owing under this indemnity together with
interest thereon from the date the indebtedness arises until paid, at the rate of
five percent (5 %) per annum. The duty of Contractor to indemnify and save
harmless includes the duties to defend as set forth in Section 2778 of the Civil
Code; Contractor shall indemnify and hold harmless the City and its agents,
officers, and employees as set forth herein regardless of the existence or degree
of fault or negligence whether active or passive, primary or secondary, on the
City of Encinitas-Regulatory Agreement
Page 15
1750
part of the City, the Contractor, or their respective agents, officers, employees,
contractors, or subcontractors. Contractor's duty to indemnify the City shall
survive the term of this Regulatory Agreement.
(b) The Contractor waives and releases any and all rights to any types of express or
implied indemnity against the City or its agents, officers, or employees.
(c) Contractor expressly waives the protections of Section 1542 of the Civil Code
in relation to subparagraphs (a) and (b) above.
IN WITNESS WHEREOF, Trustor has executed this Regulatory Agreement as of the day and
year fIrst above written.
BY:~~~
Lauren M. Wasserman, City Manager
Date :1'2.1/19
North Coast Housing, Inc.
BY: 0Jv4- /1 \ fvt-
Robert S. Kent, Treasurer
(p(7'/qg
Date:
City of Encinitas-Regulatory Agreement
Page 16
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
1751
)SS
)
Signature
. ~ ANGELA J. BOOHER
~ v"h' COMM. #1084220 <
~ i.' -,.; . NOTARY PUBLIC - CA lIFORNI/l ~
> . . . SAN.DIEGO COUNTY ...
~> ... _ ~<:"':E~"::--~:=~
--- --
CAPACITY CLAIMED BY SIGNER
WITNESS
Though statute does not require the Notary to fill in the data below, doing so may prove invaluable to persons relying on the
document.
[ ] INDIVIDUAL
[ ] CORPORATE OFFICER(S)
[ ] PARTNER(S) - [ ] LIMITED
[ ] ATTORNEY-IN-FACT
[ ] TRUSTEE(S)
[ ] GUARDIAN/CONSERVATOR
[ ] OTHER
SIGNER IS REPRESENTING:
TITLE(S)
] GENERAL
Name of Person or Entity
Name of Person or Enttty
~
Though the date requested here is not required by law, it could prevent fraudulent reattachment of this form.
TillS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW
TITLE OR TYPE OF DOCUMENT:
NUMBER OF PAGES
SIGNER(S) OTHER THAN NAMED ABOVE
DATE OF DOCUMENT
1752
ALL-PURPOSE ACKNOWLEDGEMENT
State of California
)
)
)
ss.
County of San Diego
On May 29, 1998, before me, Patricia Drew, Notary Public, appeared
Lauren M. Wasserman, personally known to me to be the person
whose name is subscribed to the within instrument and acknowledged
to me that he executed the same in his authorized capacity, and that
by his signature on the instrument, or the entity upon behalf of which
the person acted, executed the instrument.
WITNESS my hand and official seal
~~~~
;.~.. ~.."""""""""""""'i
:~. .,:p:.-!'~ '. PATRICIA DREW
. .'.'. . Comm.' 11G>>7 ~
.....".. NOTARY~ U)
'~ ~. SAN ciEooClOlMY .,.,
..-....:..:~..''':.. My Ccmn. Exp. June 22. 2001l
7..;.~"'.t' J' It.. II' It ... It.~ '.~~ ~." 'f~"
Patricia Drew, Notary Public
My Commission Expires June 22, 2001
SEAL
" i"'~~:'.""'~~~;,~;~'~~~"'f
~. 0
(J).' . Comm. , "<43097 ;u
'l: ,.. NOTARY PUILJC.CAI.FORN U)
(:) -" . SAN DIEGO COUNTY .,.,
., . t
; ... " My Ccmn. Exp. .bte 22. 2001 ~
t1.......................~.~~...t~Y9.~
pd\misc\ack. L W
EXHIBIT A
LEGAL DESCRIPTION
li5J
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.
City of Encinitas-Regulatory Agreement
Page 17
1754
ATTACHMENT B RENT SCHEDULE
The units will be made available to households at or below 60% of the median income, as
established by the U.S. Department of Housing and Urban Development for the County of San
Diego. Tenants must income qualify based on their particular household size. Median Income
levels change annually, it is the Developers responsibility to obtain the median income limits
each year. Rent levels will be based on: 30 % of the median income for a family of three at
the 60% income level minus a utility allowance detemined by the City. The current income
limits for qualification for new tenancy and maximum rent levels are as follows:
Family Maximum Annual Maximum Affordable Rent
Size Income for 2074 Manchester
1 $ 21,400 $661
2 $ 24,400 $661
3 $ 27,450 $661
4 $ 30,500 $661
5 $ 32,950 $661
6 $ 35,350 $661
City of Encinitas-Regulatory Agreement
Page 18
ATIACHMENT C
PROGRAM REGULATIONS
l?SS
Refer to Title 24 of the Code of Federal Regulations, Part 570-Community Development Block ..
Grant Program Regulations.
City of Encinitas-Regulatory Agreement
Page 19