HomeMy WebLinkAboutRDA AG PKT 2002-09-23 #D it i 1
AGENDA REPORT
DATE: September 23, 2002
TO: Chairperson and Members of the Redevelopment Agency
THRU: John B. Bahorski, Executive Director
FROM: Lee Whittenberg, Director of Development Services
SUBJECT: RECEIVE AND FILE - HOME IMPROVEMENT
PROGRAM PROCEDURES
SUMMARY OF REQUEST:
Receive and file the proposed "Home Improvement Grant/Loan Program Procedures for
the City of Seal Beach ", establishing program procedures for the different housing
programs structured to assist the low -to- moderate income residents of the City of Seal
Beach.
BACKGROUND:
On May 28, 2002 the Agency adopted the "Home Improvement Program Guidelines ",
implementing the provisions of the 2000 -2005 AB 1290 Implementation Plan approved by
the Agency on April 22, 2002. The following programs were approved and authorized for
implementation by the Agency at the May 28, 2002 Agency meeting:
A. Owner - Occupied Home Improvement Loan Program:
The new loan repayment schedule has been restructured to make it more
affordable to the lowest income households and more attractive to the higher
income homeowners (see Attachment 2, Table 2, Five -Year Home Improvement
Program Goals, 2000 - 2005):
❑ The loan program structure has eliminated the monthly loan payment. The
loan is deferred until the homeowner sells or refinances the property or a
change in title occurs. After 10 years, 1 /10th of the principal and interest is
forgiven each year until it is entirely forgiven.
❑ The Owner - Occupied Horne Improvement Loan Program is funded entirely
by Housing Set -Aside Funds and offers a very low interest rate of 2% to all
income - qualified program participants, which will be more attractive to the
higher income households.
❑ The maximum available loan amount is $50,000, which will allow for more
substantial home improvements. /9 e4 cy
.Agenda Item
C.Uvty Documents \RDA \2002 Home Improvement Program Procedures RDA Staff Report doc \LW \09 -19 -02
Approval of Home bnprovement Program Procedures
Redevelopment Agency Staff Report
September 23, 2002
❑ Owner occupied single - family residences, mobile homes, and condominiums
will qualify for this program.
❑ This program is only available for non - substantial levels of rehabilitation (less
than 25% of the after -rehab value). Substantial rehabilitation requires a
different set of loan terms and criteria.
B. Owner - Occupied Home Improvement Grant Program:
The Owner - Occupied Home Improvement Grant Program offers up to $10,000 in
exterior improvements and health and safety /energy improvements. Any income -
qualified, owner - occupied, resident wishing to undertake exterior beautification
and/or health or safety improvements can qualify for this grant. It is anticipated
that if Code Compliance discovers health and/or safety violations in a particular
residence, they will refer income - qualified owners to this program.
The Home Improvement Loan Program and the Home Improvement Grant
Program are not contingent upon each other and can be funded separately.
C. Substantial Rehabilitation/Replacement Loan Program (Seal Beach Trailer .
Park):
The Substantial Rehabilitation/Replacement Loan Program, will assist income-
qualified owners of Mobile Homes within the Seal Beach Trailer Park. This
program is designed to provide substantial rehabilitation to dilapidated mobile
homes and improve health and safety living conditions for those Seal Beach
residents within the Trailer Park.
Severely distressed mobile homes may be eligible for replacement funding based
upon the recommendation of Code Enforcement and/or the Building Department.
Staff recommends that income - qualified applicants could obtain a loan of up to
$50,000.
Recent State regulations regarding the use of Housing Set -Aside funds dictate that
"substantial rehabilitation loans" be deferred and also require an affordable
covenant be recorded on the property for at least 45 years. The regulations further
state that the Agency must receive equity share repayment instead of an interest
rate on these loans. This means that if the property sells to a non - qualified buyer
within the 45 -year covenant, the Agency will receive a percentage of the property
equity as loan repayment.
Several of the mobile homes in the City are in need of repair and are believed to
have a variety of exterior and /or interior code violations. Utilizing the Housing
Set -Aside Funds, these homes will be brought up to current Code requirements.
Note: Program Procedures for implementation of this program will be presented
to the Agency on October 28, 2002.
2
2002 Home Improvement Program Procedures RDA Staff Report
Approval of Home Improvement Program Procedures
Redevelopment Agency Staff Report
September 23, 2002
D. Mortgage Assistance Loan Program:
This program is designed to assist new buyers with up to 20% down payment
assistance in purchasing condominiums or mobile homes in the City of Seal
Beach. The loan is funded through Set -Aside Funds with a maximum loan
amount of $35,000. State regulations also require this type of funding to have a
45 -year affordable covenant placed on the property as well as an equity share
repayment plan.
Note: Program Procedures for implementation of this program will be presented
to the Agency on October 28, 2002.
The principal loan amount on both the Substantial Rehabilitation/Replacement Loan and
the Mortgage Assistance Loan Program will be entirely forgiven at year 10, while the
equity share repayment will remain in effect the entire 45 years.
FISCAL IMPACT:
No impact to City General Fund. All program activities, including program
administration, are funded through the Redevelopment Agency Housing Seat -Aside
Fund, Account Number 061 - 081 - 45050.
RECOMMENDATION:
Receive and file the proposed "Home Improvement Grant/Loan Program Procedures for
the City of Seal Beach ", establishing program procedures for the different housing
programs structured to assist the low -to- moderate income residents of the City of Seal
Beach.
NOTED AN i APPROVED:
1
I
ee Whittenberg John :: B •4 orski, Executive Director
Director of Development Servic - : Re Selopment Agency
Attachments: (2)
Attachment 1: "Home Improvement Grant/Loan Program Procedures"
Redevelopment Agency of the City of Seal Beach,
September 23, 2002
3
2002 Home Improvement Program Procedures.RDA Staff Report
Approval of Home Improvement Program Procedures
Redevelopment Agency Staff Report
September 23, 2002
Attachment 2: "Home Improvement Program Guidelines ",
Redevelopment Agency of the City of Seal Beach, May 28,
2002
•
4
2002 Horne Improvement Program Procedures RDA Staff Report
Approval of Home bnproventent Program Procedures
Redevelopment Agency Staff Report
September 23, 2002
ATTACHMENT 1
"HOME IMPROVEMENT GRANT/LOAN PROGRAM
PROCEDURES" REDEVELOPMENT AGENCY OF THE
CITY OF SEAL BEACH, SEPTEMBER 23, 2002
5
2002 Home Improvement Program Procedures.RDA Staff Report
HOME IMPROVEMENT
GRANT /LOAN
PROGRAM PROCEDURES
REDEVELOPMENT AGENCY
OF THE CITY OF SEAL BEACH
' SEPTEMBER 23, 2002
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CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
PROGRAM PROCEDURES
Check (X) When Completed:
Sent Received /Completed
❑ ❑ 1. Send Application Package -
El ❑ a. Cover Letter ( #101)
❑ ❑ b. Application ( #102)
❑ ❑ c. Application Check Off List ( #103)
❑ ❑ d. Housing Program Brochure
❑ ❑ e. Fair Lending Notice ( #104)
❑ ❑ f. Lead Based Paint brochure
❑ ❑ 2. Owner returns application
❑ ❑ 3. CivicStone reviews the application
❑ ❑ a. Verify that the household is income qualified
❑ ❑ b. Verify sufficient home equity
❑ ❑ i. CivicStone determines if the City loan amount
does not exceed 80% of available equity
❑ ❑ ii. Homeowner may request an appraisal if
CivicStone equity analysis does not provide
homeowner with maximum loan amount. In no
case will loan amount be more than 90% of
equity, even with an appraisal. If appraisal is
used, it will be the final determination on loan
amount.
❑ ❑ c. Order Preliminary Title Report to verify all outstanding
liens. This will ensure that the City's equity position is
protected
❑ ❑ d. Check to see if home is listed on City's historical list
❑ ❑ 4. Send Response Package
❑ ❑ a. Approval Letter (#401) or Rejection Letter
❑ ❑ b. Grant/Loan procedures ( #402)
❑ ❑ 5. Order Inspections
❑ ❑ a. Request lead based paint inspection for pre -1978
properties
❑ ❑ b. Request termite inspection
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City of Seal Beach Redevelopment Agency
Grant -Loan Procedures Checklist
❑ ❑ 6. Scope of Repairs
❑ a. Counselor inspects property with homeowner
❑ i. Review termite inspection results with
❑ homeowner
❑ ❑ ii. Review lead based paint report with
homeowner
❑ ❑ b. Counselor prepares Scope of Repairs
❑ ❑ c. CivicStone sends a copy of the Scope of Repairs to
❑ property owner with cover letter ( #601)
❑ 7. Out to Bid
❑ a. Cover Letter ( #701)
❑ ❑ b. Blank Scope of Repairs
❑ ❑ c. Allow two week bid deadline
0
❑ ❑ 8. Bid Comparison
❑ a. Review all bids
0
❑ ❑ 9. Bid Selection
❑ a. Cover Letter ( #901.doc)
❑ ❑ b. Include a copy of all the bids to the homeowner for
❑ them to select the contractor
0
❑ 10. Contractor Notification
❑❑ a. Send Approval Letter ( #1001)
b. Send Rejection Letter ( #1002)
0
❑ 11. Loan Package
❑ a. Complete Loan Package
❑ i. Promissory Note Secured by Deed of Trust
❑ ( #1101)
❑ ❑ ii. Deed of Trust and Assignment of Rents
_ ❑ ❑ ( #1102) •
❑ ❑ iii. Agreement Containing Covenants Affecting
❑ ❑ Real Property ( #1103)
❑ ❑ iv. Request for Notice ( #1104)
❑ ❑ v. Loan Agreement ( #1105)
❑ ❑ vi. Insurance ( #1106)
❑ ❑ vii. Rehab Agreement w/ Contractor ( #1107)
❑ ❑ viii. General Conditions ( #1108)
❑ • ❑ ix. Notice of Completion ( #1109)
❑ ❑ 12. Pre - Construction Meeting
❑ ❑ a. Meet with the property owner and the selected
• contractor to review the Scope of Work.
❑ ❑ b. Get property owner to sign an acceptance of work
' ( #1201)
Grant -Loan Program Procedures Cover Form 2
City of Seal Beach Redevelopment Agency
Grant -Loan Procedures Checklist
❑ ❑ c. CivicStone reviews Loan Package with homeowner.
Homeowner signs paperwork with notary.
❑ ❑ 13. Process copies of loan documents as indicated on form _
#1101
❑ ❑ 14. Construction
❑ ❑ a. Send contractor Notice to Proceed ( #1401)
❑ ❑ b. Send Contractor Lien Release information ( #1402)
❑ ❑ c. Inspect property before allowing payment to General
Contractor
❑ ❑ d. Complete Check Authorization Payment ( #1403)
❑ ❑ 15. Follow Completion Checklist
❑ ❑ a. Cover Letter ( #1502)
❑ ❑ b. Quality Questionnaire ( #1503)
❑ ❑ c. Final Loan Balance Statement ( #1504)
❑ ❑ d. Enter all data in computer database
❑ ❑ e. Notice of Completion ( #1104)
❑ ❑ f. Collect Lien Releases
❑ ❑ 16. Complete Check Authorization Form for Retention Request
( #1403)
❑ ❑ 17. Send City of Seal Beach a copy file
Grant -Loan Program Procedures Cover Form 3
Date
Mr. & Mrs. Homeowner
Address
Seal Beach, CA 90740
RE: Loan Application Package
Dear Homeowner(s):
Enclosed is a Loan Application Package for the City of Seal Beach Home Improvement
Grant/Loan Program. Please read the enclosed Brochure, Application, Fair Lending Notice
and Lead Based Paint Brochure before continuing with the application.
Please submit your Application, along with the supporting documentation (as indicated
on the attached Application Check List) to:
CivicStone, Inc.
3233 Grand Avenue, #N76
Chino Hills CA 91709
before . If the Application packet is not retumed by this
date, it will be assumed that you are no longer interested in the Program. Incomplete
Applications will be returned to the applicant and will not be accepted until all items
have been received.
If you have any questions, please feel free to call (909) 364 -0575.
Sincerely,
Adam Eliason
CivicStone, Inc.
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CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
APPLICATION
Address:_ _
- Home Phone:
Applicant Name: _ Co- Applicant Name:
Social Security Number: Social Security Number: _
Employer: _ Employer:___ ___ __
Work #: _ _ Work #:_
-----------
Total number of persons living in this home: _ DATA ON PROPERTY
List names of all those living in this home: Year Built:
1.__ Total Sq Feet: ____
2. # of Bedrms:
3.___ _ # of Baths: __
4._ _ Estimated Value:$ ___
5. Year Purchased:
6.
APPLICATION IDENTIFICATION
To obtain statistical information, we would appreciate your cooperation in providing the following infor-
mation. This information will be used to show that the Home Improvement Program is servicing various
segments of the City of Seal Beach. This information is not recwired for eligibility.
Applicant Ethnicity: __ Any Household Member Handicapped: ❑
Co- Applicant Ethnicity: _____ Is this a Female Head of Household: ❑
Any Household Member a Senior ( >55): ❑
102.pub. 1
CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
PROPERTY OWNERS
APPLICATION CHECK LIST
ALL APPLICATIONS MUST INCLUDE THE FOLLOWING DOCUMENTS:
(Incomplete applications will NOT be processed)
Forms to be Provided with Application Packet by Property Owner
❑ Grant/Loan Application
❑ Fair Lending Notice
Documents Submitted by Property Owner
❑ Current Income Tax Statements for every household member who filed with the IRS
(3 years if self - employed)
❑ Pay stubs for all household members
❑ Most recent Property Tax Statement
❑ Current Fire /Home Insurance Certification
❑ Current Mortgage Statement
❑ Mobile /manufactured homeowners must provide DMV or HCD certification
THE SIGNATURE BELOW CONFIRMS THE ABOVE LISTED DOCUMENTS HAVE ALL
BEEN SUBMITTED
Date Signature
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CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
STATE OF CALIFORNIA
FAIR LENDING NOTICE
To: All persons applying for financial assistance for the purchase, construction,
rehabilitation, improvement or refinancing of one, or up to four family residences
It is unlawful, under the Housing Financial Discrimination Act of 1977, for a public agency
to consider any of the following in determining whether or not, or under what terms and
conditions, to provide or arrange for financial assistance:
1. Neighborhood characteristics (such as the average age of the homes or the
income level in the neighborhood), except to a limited extent necessary to
avoid an unsafe and unsound business practice.
2. Race, sex, color, religion, marital status, national origin or ancestry,
It is also unlawful to consider, in appraising a residence, the racial, ethnic, or religious
composition of a particular neighborhood or whether or not such composition is undergoing
change or is expected to undergo change.
If you wish to file a complaint or if you have questions about your rights, contact:
Department of Fair Employment
and Housing
1- 800 - 884 -1684
If you file a complaint, the law requires that you receive a decision within thirty (30) days.
I (we) received a copy of this notice.
Signature of Applicant Date Co- Applicant Signature Date
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Date
Name
Address 1
City, State, Zip
RE: Property address
Dear
Congratulations! You have been approved to receive a City of Seal Beach Home
Improvement Grant/Loan. I have enclosed a copy of the Grant/Loan Procedures that
explains the entire process of the Program.
A Home Improvement Counselor will contact you shortly to schedule a date to meet with
you and inspect your home. If you have any questions, please call me at (909) 364-
0575.
Sincerely,
Adam Eliason
CivicStone, Inc.
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City of Seal Beach
Home Improvement Grant /Loan
GRANT /LOAN PROCEDURES
1. After a completed Grant/Loan Application has been submitted by the property owner
and a preliminary qualification has been made by the Home Improvement Counselor,
a Preliminary Title Report, Termite Inspection and Lead Based Paint Inspection (if
necessary) will be ordered. It is the responsibility of the property owner to be
available for the termite inspection and lead based paint inspection.
2. A Home Improvement Counselor will contact the property owner to make an
appointment to inspect the property. After the inspection, a written Scope of Repairs
will be completed, including what work needs to be done according to State, Federal,
Municipal and all Building Codes.
4. When.the Scope of Repairs draft is completed, it will be reviewed with the property
owner to ensure there is a clear understanding and agreement of the work to be
done.
5. The Scope of Repairs will then sent to selected contractors to bid the work. Contractors
will have two weeks to inspect the property and prepare a bid. During the bid phase,
contractors will call the property owner to schedule an appointment to inspect their home. .
It is the property owner's responsibility to be available for these appointments.
NOTE: In the bid phase, no changes or additions can be made to the Scope of
Repairs by the property owner or contractor. All bids will be sealed and submitted to
CivicStone, Inc. on or before the due date.
NOTE: Property owners are encouraged to find their own licensed contractors to
submit bids. Any contractor not previously approved by CivicStone, Inc., must
submit proof of the following information for their bid to be considered:
• A Home Improvement Program Contractor Application ( #506)
• Current State Contractors License
• City of Seal Beach Business License (or before Notice to Proceed)
• Workman's Compensation Insurance
• $1,000,000.00 Liability Insurance naming the City of Seal Beach, City
of Seal Beach Redevelopment Agency, and CivicStone Inc., as
additionally insured
• $1,000,000.00 Automobile Insurance naming the City of Seal Beach,
City of Seal Beach Redevelopment Agency, and CivicStone, Inc. as
additionally insured.
NOTE: THE CITY OF SEAL BEACH AND HOME IMPROVEMENT COUNSELOR
DO NOT ENDORSE ANY CONTRACTOR. THE COURTESY CONTRACTOR LIST
MERELY INCLUDES CONTRACTORS WHO MEET PROGRAM ELIGIBILITY
REQUIREMENTS, INCLUDING REHABILITATION EXPERIENCE.
6. After the bids are received, the Home Improvement Counselor will send a copy of
each bid as well as a letter that compares the various bids and a copy of each bid.
The property owner does not have to select the lowest bidder; however, the selected
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City of Seal Beach
Grant/Loan Procedures
September 2002
contractor must be within 5% of any other bid. If the bids exceed the pre- approved
loan amount, deletions of repair items will be made.
7. Loan processing fees will be included in the total loan amount and consist of the
following:
1. Notice of Completion recording fee ($9.00 each)
2. Title Policy
3. Termite Inspection
4. Lead Based Paint Inspection (If home is pre -1978)
5. Appraisal (if required)
NOTE: THESE LOAN FEES ARE SUBJECT TO CHANGE.
8. Within (5) days after the contractor is selected, the Home Improvement Counselor will
schedule a pre- construction conference with the property owner, the contractor and
the Home Improvement Counselor AT THE HOMEOWNER'S PROPERTY to perform
a walk- through of the Scope of Repairs, to answer any questions and clarify the work
to be done. Minor changes may be made at this time with the Home Improvement
Counselor's approval.
9. The file is then submitted by CivicStone, Inc. for preparation of loan documents (i.e.
Promissory Note, Deed of Trust, Rehabilitation Agreement, Loan Agreement, etc.).
NOTE: LOAN SUBORDINATIONS: Once the Agency loan is made,
the Agency will only agree to subordinate its position one time to
refinance as follows: (1) the property owner is refinancing a First
Mortgage loan to obtain a lower fixed interest rate, (2) the First
Mortgage loan does not provide for cash out, (3) the City /Agency's
security is not diminished from its original position, and (4) such
refinancing decreases the property owner's monthly housing
expense.
10. Once loan documents are prepared, the property owner will be called to sign the loan
documents.
NOTE: A CONTRACT AGREEMENT IS SIGNED DURING THIS
STAGE THAT STATES THE CONSTRUCTION CONTRACT IS
BETWEEN THE PROPERTY OWNER AND SELECTED
CONTRACTOR. THE AGENCY IS NOT A PARTY TO THIS
REHABILITATION AGREEMENT.
11. Once the new trust deed is recorded on the property, the contractor will be notified
by mail with a Notice to Proceed. The contractor will then notify the property owner
of their expected construction start date.
NOTE: Throughout the construction period, the property owner
and Home Improvement Counselor shall monitor the
•
contractors' work to insure specifications, quality and timely .
completion as per the contract. The property owner and, if
necessary, the Home Improvement Counselor will notify the
contractor immediately if there is a problem.
12. City building permits may be required for some construction items. Therefore, an
inspection card will be posted at the job site for the City of Seal Beach Building
Inspectors to sign at different stages of construction. These inspections give further
Document 402 - 2 -
City of Seal Beach
Grant/Loan Procedures
September 2002
assurance of proper construction work according to the building codes. The City
Building Inspector will finalize the project as soon as all construction permit items are
completed.
13. Contractor Payments: The City Finance Department will disburse payments directly
to the contractor when the property owner and the Home Improvement Counselor
ensure that the required work has been completed according to the Rehabilitation
Agreement.
14. Any changes to the Rehabilitation Agreement require a written change order from the
contractor with the description of the work and prices. A change order will require
signatures from the property owner and the Home Improvement Counselor.
15. Prior to release of the contractor's final payment and notice of completion, a walk -
through inspection will be performed by the Home Improvement Counselor and the
property owner using the accepted and approved Scope of Repairs. A list of any
remaining items needing touch -up or repair will be submitted to the contractor.
I fully understand the above Loan Procedures. I have also kept a signed copy of this
document.
OWNER'S SIGNATURE: DATE:
OWNER'S SIGNATURE: DATE:
Address:
Document 402 - 3 -
Date
Property Owner
Property Address
Seal Beach, CA 90740
RE:
Dear Homeowner:
Enclosed is the Bid Write -Up for your project. I have enclosed a list of construction
companies that have expressed an interest in participating on the Seal Beach Home
Improvement Grant/Loan Program. You may also contact licensed Contractors to bid on
the project. Any contractor not previously approved by CivicStone, Inc. must submit the
paperwork indicated on the Grant/Loan Procedures to CivicStone, Inc. for approval. Be
advised contractors are to bid ONLY on the items specified by the bid write -up. CivicStone,
Inc. must approve any additions or deletions.
Contractors will be notified of this open bid and will contact you to perform a site inspection
and submit their bid. All Contractors are to abide by the deadline date stated on the bid
write -up.
Please contact me if you have any questions or if you need assistance at (909) 364 -0575.
Sincerely,
Adam Eliason
CivicStone, Inc.
Enclosures
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Date
Mr. & Mrs.
Address
City, State, Zip Code
RE: Subject Property
Dear Contractor:
Thank you for accepting the opportunity to bid on the subject property. Competitive
bidding is a requirement of the Program, however only two other bids will be received for
this property. Consequently, it is extremely important that you notify us if you cannot
provide a bid for whatever reason.
Property Owner:
Address:
City:
Telephone #:
Bid Due Date:
The attached Scope of Repairs indicates the requested work items. The property owner
is expecting your call to schedule an appointment to inspect their property.
Submit bids to:
CIVICSTONE, INC.
3233 GRAND AVENUE #N76
CHINO HILLS, CA 91709.
Oral and faxed bids will not be accepted. Bids MUST be signed and dated, or they will be
. rejected. `
Thank you for your participation,
CivicStone, Inc.
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•
Date
Name
Address 1
City, State, Zip
RE: Bid Comparison Analysis
Dear
I have reviewed the bids we received for the improvements to your home. The bid
comparison analysis is provided below, and copies of each of the bids are enclosed for
your review.
Name of Company Bid Amount
$
$
$
A Home Improvement Counselor will be in contact with you to review this information. If
you have any questions, please call me at (909) 364 -0575.
Sincerely,
Adam Eliason
CivicStone, Inc.
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Date
Contractor
Address
City, State, Zip Code
RE: (property owner name and address)
Dear Contractor:
We are pleased to inform you that "Name of Homeowner" has selected you to be the
contractor for the rehabilitation work at the address listed above.
CivicStone, Inc. will call you for a pre - construction conference with "Name of Homeowner'.
If you have any questions, please feel free to call me at (909) 364 -0575.
Sincerely,
Adam Eliason
CivicStone, Inc.
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Date
Contractor
Address
City, State, Zip Code
RE: (property owner name and address)
Dear Contractor:
Please be advised that another contractor has been selected by "Name of Homeowner"
to do the rehabilitation work on the property at the above address.
Selected bid amount(s) was: $
We wish to thank you for submitting this bid.
If you have any questions, feel free to call me at (909) 364 -0575.
Sincerely,
Adam Eliason
CivicStone, Inc.
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PROMISSORY NOTE
SECURED BY DEED OF TRUST
Seal Beach Redevelopment Agency
Home Improvement Rehabilitation Loan Program
$ Seal Beach, California
Basic Provisions
Date: , 200
Interest Accrual Date: Date of Loan Disbursement
Maturity Date: Twentieth Anniversary of Interest Accrual Date
Name of Borrower ( "Borrower"):
Maximum Principal Amount: dollars and no cents
($ .00)
Interest Rate: Until tenth anniversary of the
Interest Accrual Date: Two percent (2 %) per
year
Thereafter: None
Forgiveness Amount: On each of the first ten anniversaries of the
Interest Accrual Date: None.
On each of the eleventh through nineteenth
anniversaries of the Interest Accrual Date: 10
% of the original principal amount and 10% of
the interest unpaid as of the tenth anniversary
of the Interest Accrual Date.
•
On the twentieth anniversary of the Interest
Accrual Date: All remaining unpaid principal
and interest.
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S7284 \0001 \707708.1
City of Seal Beach Redevelopment Agency
Loan Program Promissory Note
FOR VALUE RECEIVED, the undersigned Borrower, as set forth in the
Basic Provisions above, hereby promises to pay to the order of the Seal Beach
Redevelopment Agency, a public body, corporate and politic, as lender ( "Agency "), at
811 Sixth Street, Seal Beach, California, without deduction or offset, the Principal
Amount set forth in the Basic Provisions, above, together with simple interest on the
outstanding principal balance of funds as drawn, which shall begin accruing on the
Interest Accrual Date set forth in the Basic Provisions, above, at the Interest Rate set
forth in the Basic Provisions, above. If more than one person is signing this as
Borrower, then the obligations of Borrower shall be joint and several.
This Promissory Note (this "Note ") is secured by that certain Deed of Trust
and Assignment of Rents of even date herewith executed by Borrower for the benefit of
Agency (the "Deed of Trust "). In addition, Borrower and Agency are concurrently
entering into an Agreement Containing Covenants Affecting Real Property (the
"Agreement Containing Covenants Affecting Real Property ") governing the real property
(the "Property ") encumbered by the Deed of Trust and Borrower and Agency have
•
entered into a Loan Agreement (the "Loan Agreement ").
The outstanding principal balance of the Loan and all accrued interest
shall be due and payable on the Maturity Date set forth in the Basic Provisions, above;
provided, however, that on each anniversary of the Interest Accrual Date, if Borrower
has not breached the terms and conditions of this Note, the Loan Agreement, the
Agreement Containing Covenants Affecting Real Property or the Deed of Trust at any
time during the preceding year, then the outstanding principal and interest balances of
the Loan shall be reduced by the Forgiveness Amount set forth in the Basic Provisions,
above, on such anniversary date; and further provided that if, as of the Maturity Date,
Borrower has not breached the terms and conditions of the Agreement Containing
Covenants Affecting Real Property, this Note or the Deed of Trust at any time, then
Agency agrees to forgive the outstanding principal balance and all accrued interest on
the Maturity Date.
Borrower may prepay, without penalty or premium, any amount of the
principal due under this Note prior to the Maturity Date. Prepayments shall be credited
first against accrued interest and the balance shall be credited against principal.
Should default be made by the undersigned in the performance of any of
the covenants or agreements of the Borrower contained in the Agreement Containing
Covenants Affecting Real Property, this Note, the Loan Agreement or the Deed of Trust,
and if such default is not cured within five (5) days from Agency's notice to Borrower of
such default (or such longer period as may be provided in the Agreement Containing
Covenants Affecting Real Property or the Deed of Trust), then, at Agency's option, all
sums owing hereunder shall immediately become due and payable. Thereafter, interest
shall accrue at the maximum legal rate permitted to be charged by non - exempt lenders
under the usury laws of the State of California.
The remedies of Agency as provided herein and in the Deed of Trust, or at
law or in equity, shall be cumulative and concurrent, and may be pursued singly,
Document 1101 2
S7284 \0001 \707714.1
City of Seal Beach Redevelopment Agency
Loan Program Promissory Note
successively, or together at the sole discretion of Agency, and may be exercised as
often as occasion therefore shall occur.
This Note shall be governed by and construed in accordance with the laws
of the State of California.
All parties who are obligated to pay any portion of the indebtedness
represented by this Note, whether as principal, surety, guarantor or endorser, hereby
waive presentment for payment, demand, protest, notice of protest and notice of
dishonor, and all other notices to which they might otherwise be entitled, and further
waive all defenses based on release of security, extension of time or other indulgence
given in respect to payment of this Note, to whomsoever given, and further waive all
defenses, generally, except the defense of actual payment of this Note according to this
Note's tenor.
The undersigned hereby covenants and agrees to pay all costs and
expenses of collection, whether by suit or otherwise, at any time or from time to time
incurred, including without limitation attorneys' fees and all costs and expenses actually
incurred in connection with the protection or realization of the property secured by the
Deed of Trust.
If Borrower shall sell, lease, assign, convey, transfer, encumber,
mortgage, hypothecate or alienate the Property, or any part thereof, or any interest
therein, or shall be divested of their title in any manner or way, whether voluntarily or
involuntarily, the indebtedness evidenced hereby, irrespective of the maturity date
expressed herein, at the option of the Agency, upon demand, shall immediately become
due and payable, except as permitted by Agency pursuant to the terms and conditions
set forth in the Agreement Containing Covenants Affecting Real Property. To this end,
the Deed of Trust securing this Note provides as follows:
If the Trustor shall sell, lease, transfer, assign, convey, encumber,
mortgage, hypothecate or alienate the real property described herein, or
any part thereof, or any interest therein, or shall be divested of title or any
interest therein in any manner or way, whether voluntarily or involuntarily
(except as permitted by Beneficiary pursuant to the terms and conditions
set forth in the Agreement Containing Covenants Affecting Real Property),
or if Trustor shall fail to make any payments due under the note secured
by this deed of trust, or fail to perform any other obligation under said
Agreement Containing Covenants Affecting Real Property of even date
herewith, this deed of trust or the note secured hereby, or any other deed
of trust encumbering the subject property, then Beneficiary shall have the
right, at its option, to declare any indebtedness or obligations secured
hereby, irrespective of the maturity date specified in any note evidencing
the same, immediately due and payable.
Document 1101 3
S7284 \0001 \707714.1
City of Seal Beach Redevelopment Agency
Loan Program Promissory Note
Subject to the foregoing, the terms of this Note shall be binding upon and
inure to the benefit, as the case or context may require, of the respective heirs,
successors in interest and assigns of Borrower and Agency.
This Note may be subject to Section 2966 of the California Civil Code,
which provides that Agency shall give written notice to Borrower, or Borrower's
successor in interest, of prescribed information at least sixty (60) and not more than 150
days before any balloon payment is due.
Time is of the essence with respect to each and every provision hereof. If
any provision hereof is found to be invalid or unenforceable by a court of competent
jurisdiction, the invalidity thereof shall not affect the enforceability of the remaining
provisions of this Note.
"Borrower ":
(Typed /printed name) (Typed /printed name)
Document 1101 4
S7284\0001\707714.1
•
RECORDING REQUESTED BY
Seal Beach Redevelopment Agency
AND WHEN RECORDED MAIL TO
Seal Beach Redevelopment Agency
211 Eighth Street
Seal Beach, California 90470
No Recording Fee Required — Gov't Code Sec. 6103
SPACE ABOVE THIS LINE FOR RECORDER'S USE
DEED OF TRUST AND ASSIGNMENT OF RENTS
A.P.N.
This Deed of Trust, made this day of . , 200 ,
between - herein called
Trustor, whose address is
in favor of , as Trustee, for the
benefit of the SEAL BEACH REDEVELOPMENT AGENCY, a public body, corporate
and politic, herein called Beneficiary,
Witnesseth: That Trustor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS TO
TRUSTEE IN TRUST, WITH POWER OF SALE, that property (the "Property ") in
Orange County, California described as:
That certain property described in Exhibit A attached hereto and
incorporated herein by reference
TOGETHER WITH the rents, issues and profits thereof, SUBJECT, HOWEVER, to the
right, power and authority hereinafter given to and conferred upon Beneficiary to collect
and supply such rents, issues and profits.
For the Purpose of Securing:
1. Performance of each agreement of Trustor herein contained.
2. Payment of the indebtedness evidenced by one promissory note of even
date herewith, and any extension or renewal thereof, in the principal sum of $
executed by Trustor in favor of Beneficiary or order.
C: \My Documents \RDA \Home Imp Program Procedures \Document 1102.doc \Lw109 -20 -02
S7284 \0001\ 707703.1
City of Seal Beach Redevelopment Agency
Deed of Trust and Assignment of Rents
3. The rights of the Beneficiary set forth in that certain Agreement Containing
Covenants Affecting Real Property between Trustor and Beneficiary dated and recorded
concurrently herewith.
4. The rights of the Beneficiary set forth in that certain Loan Agreement from
Trustor and Beneficiary dated concurrently herewith.
To Protect the Security of This Deed of Trust, Trustor Agrees:
(1) To keep the Property and the improvements thereon clean and in good
condition and repair; not to remove or demolish any building thereon; to complete or
restore promptly and in good workmanlike manner any building which may be
constructed, damaged or destroyed thereon and to pay when due all claims for labor
performed and materials furnished therefor; to comply with all laws affecting the
Property, or requiring any alterations or improvements to be made thereon; not to
commit or permit waste thereof; not to commit, suffer or permit any act upon the
Property in violation of law; and to do all other acts which from the character or use of
the Property may be reasonably necessary, the specific enumerations herein not
excluding the general.
(2) To provide or cause to provide, maintain and deliver to Beneficiary fire
insurance satisfactory to and with loss payable to Beneficiary and any superior trust
deed holder, as their interests may appear. The amount collected under any fire or
other insurance policy may be applied by Beneficiary upon any indebtedness secured
hereby and in such order as Beneficiary may determine, or at option of Beneficiary the
entire amount so collected or any part thereof may be released to Trustor. Such
application or release shall not cure or waive any default or notice of default hereunder
or invalidate any act done pursuant to such notice.
(3) To appear in and defend any action or proceeding purporting to affect the
security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs
and expenses, including cost of evidence of title and attorney's fees in a reasonable
sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and
in any suit brought by Beneficiary to foreclose this Deed of Trust.
(4) To pay: at least 10 days before delinquency all taxes and assessments
affecting the Property, including assessments on appurtenant water stock; when due, all
encumbrances, charges and liens, with interest, on the Property or any part thereof,
which appear to be prior or superior hereto; all costs, fees and expenses of this Trust.
Should Trustor fail to make any payment or to do any act as herein provided,
then Beneficiary or Trustee, but without obligation so to do and without notice to or
demand upon Trustor and without releasing Trustor from any obligation hereof, may:
make or do the same in such manner and to such extent as either may deem necessary
to protect the security hereof, Beneficiary or Trustee being authorized to enter upon the
Property for such purposes; appear in and defend any action or proceeding purporting
to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay,
Document 1102
S7284 \0001 \707703.1 - 2 -
City of Seal Beach Redevelopment Agency
Deed of Trust and Assignment of Rents
purchase, contest or compromise any encumbrance, charge or lien which in the
judgment of either appears to be prior or superior hereto; and, in exercising any such
powers, pay necessary expenses, employ counsel and pay his reasonable fees.
(5) To pay immediately and without demand all sums so expended by
Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by
law in effect at the date hereof, and to pay for any statement provided for by law in
effect at the date hereof regarding the obligation secured hereby any amount demanded
by the Beneficiary not to exceed the maximum allowed by law at the time when the
statement is demanded.
(6) That any award of damages in connection with any condemnation for
public use of or injury to the Property or any part thereof is hereby assigned and shall
be paid to Beneficiary (and to any superior trust deed holder, as their interests may
appear) who may apply or release such moneys received by him in the same manner
and with the same effect as above provided for disposition of proceeds of fire or other
insurance.
(7) That by accepting payment of any sum secured hereby after its due date,
Beneficiary does not waive his right either to require prompt payment when due of all
other sums so secured or to declare default for failure so to pay.
(8) That at any time or from time to time, without liability therefore and without
notice, upon written request of Beneficiary and presentation of this Deed of Trust and
the Note for endorsement, and without affecting the personal liability of any person for
payment of the indebtedness secured hereby, Trustee may: reconvey any part of the
Property; consent to the making of any map or plat thereof; join in granting any
easement thereon; or join in any extension agreement or any agreement subordinating
the lien or charge hereof.
(9) That upon written request of Beneficiary stating that all sums. secured
hereby have been paid, and upon surrender of this Deed of Trust and the Note to
Trustee for cancellation and retention and upon payment of its fees, Trustee shall
reconvey, without warranty, the Property then held hereunder. The recitals in such
reconveyance of any matters or facts shall be conclusive proof of the truthfulness
thereof. The grantee in such reconveyance may be described as "the person or
persons legally entitled thereto." Five years after issuance of such full reconveyance,
Trustee may destroy the Note and this Deed of Trust (unless directed in such request to
retain them).
(10) That upon default by Trustor in payment of any indebtedness secured
hereby, or in performance of any agreement hereunder, Beneficiary may declare all•
sums secured hereby immediately due and payable by delivery to Trustee of written
declaration of default and demand for sale and of written notice of default and election
to cause the Property to be sold, which notice Trustee shall cause to be filed for record.
Beneficiary also shall deposit with Trustee this Deed of Trust, the Note and all
documents evidencing expenditures secured hereby.
Document 1102
S7284\0001\707703.1 - 3 -
City of Seal Beach Redevelopment Agency
Deed of Trust and Assignment of Rents
After the lapse of such time as may then be required by law following the
recordation of the notice of default, and notice of sale having been given as then
required by law, Trustee, without demand on Trustor, shall sell the Property at the time
and place fixed by it in the notice of sale, either as a whole or in separate parcels, and
in such order as it may determine, at public auction to the highest bidder for cash in
lawful money of the United States, payable at time of sale. Trustee may postpone sale
of all or any portion of the Property by public announcement at such time and place of
sale, and from time to time thereafter may postpone such sale by public announcement
at the time fixed by the preceding postponement. Trustee shall deliver to such
purchaser its deed conveying the Property so sold, but without any covenant or
warranty, express or implied. The recitals in such deed of any matters or facts shall be
conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or
Beneficiary as hereinafter defined, may purchase at such sale.
After deducting all costs, fees and expenses of Trustee and of this Trust,
including cost of evidence of title in connection with sale, Trustee shall apply the
proceeds of sale to payment of: all sums expended under the terms hereof, not then
repaid, with accrued interest at the amount allowed by law in effect at the date hereof;
all other sums then secured hereby; and the remainder, if any, to the person or persons
legally entitled thereto.
(11) Beneficiary, or any successor in ownership of any indebtedness secured
hereby, may from time to time, by instrument in writing, substitute a successor or
successors to any Trustee named herein or acting hereunder, which instrument,
executed by the Beneficiary and duly acknowledged and recorded in the office of the
recorder of the county or counties where the Property is situated, shall be conclusive
proof of proper substitution of such successor Trustee or Trustees, who shall, without
conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers
and duties. The instrument must contain the name of the original Trustor, Trustee and
Beneficiary . hereunder, the book and page where this Deed of Trust is recorded and the
name and address of the new Trustee.
(12) That this Deed of Trust applies to, inures to the benefit of, and binds all
parties hereto, their heirs, legatees, devisees, administrators, executors, successors
and assigns. The term Beneficiary shall mean the owner and holder, including
pledgee's, of the Note, whether or not named as Beneficiary herein. In this Deed of
Trust, whenever the context so requires, the masculine gender includes the feminine
and /or neuter, and the singular number includes the plural.
(13) That Trustee accepts this Trust when this Deed of Trust, duly executed
and acknowledged, is made a public record as provided by law. Trustee is not
obligated to notify any party hereto of pending sale under any Deed of Trust or of any
action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless
brought by Trustee.
(14) If the Trustor shall sell, lease, transfer, assign, convey, encumber,
mortgage, hypothecate or alienate the real property described herein, or any part
Document 1102
S7284\00011707703.1 - 4 -
City of Seal Beach Redevelopment Agency
Deed of Trust and Assignment of Rents
thereof, or any interest therein, or shall be divested of title or any interest therein in any
manner or way, whether voluntarily or involuntarily (except as permitted by Beneficiary
pursuant to the terms and conditions set forth in the Regulatory Agreement), or if
Trustor shall fail to make any payments due under the note secured by this Deed of
Trust, or fail to perform any other obligation under said Regulatory Agreement of even
date herewith, this Deed of Trust or the note secured hereby, or any other deed of trust
encumbering the subject Property, then Beneficiary shall have the right, at its option, to
declare any indebtedness or obligations secured hereby, irrespective of the maturity
date specified in any note evidencing the same, immediately due and payable.
(15) Any breach or default under the Agreement Containing Covenants
Affecting Real Property or the Loan Agreement shall be deemed a breach of this Deed
of Trust.
Document 1102
S7284\00011707703.1 - 5 -
City of Seal Beach Redevelopment Agency
Deed of Trust and Assignment of Rents
The undersigned Trustor requests that a copy of any Notice of Default and of any
Notice of Sale hereunder be mailed to him at his address hereinbefore set forth.
Signature(s) of Trustor:
Title Order No. Escrow or Loan No.
Document 1102
S7284 \0001 \707703.1 - 6 -
City of Seal Beach Redevelopment Agency
Deed of Trust and Assignment of Rents
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
S7284 \0001 \707703.1 - 7 -
RECORDING REQUESTED BY
Seal Beach Redevelopment Agency
AND WHEN RECORDED MAIL TO
Seal Beach Redevelopment Agency
211 Eighth Street
Seal Beach, California 90470
No Recording Fee Required -- Gov't Code Sec. 6103
SPACE ABOVE THIS LINE FOR RECORDER'S USE
AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY
THIS AGREEMENT CONTAINING COVENENANTS AFFECTING REAL PROPERTY
( "Agreement ") is made this day of _, 200_, by and between
the REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH, a public body, corporate and
politic (the "Agency "), and
_(the "Owner ").
RECITALS
A. The Owner is the owner of fee title to that certain real property (the "Property ")
located in the City of Seal Beach, County of Orange, State of California, legally described in
Exhibit "A" attached hereto and incorporated herein by reference, the address of which is
, Seal Beach, California.
B. The Owner has re,presented to the Agency that the Owner qualifies for participation
in the Agency's Home Improvement Program (the "Program ").
C. Concurrently herewith, the Owner is executing a promissory note (the "Note ")
evidencing a loan (the "Loan ") in the maximum amount of $ from the Agency
to the Owner to assist in the Owner's rehabilitation of the Property, and a deed of trust (the "Deed
of Trust "), securing the Note. The Loan is made pursuant to a Loan Agreement between the
Agency and the Owner executed concurrently herewith (the "Loan Agreement ").
- E. Pursuant to the Program, as further inducement for the Agency to extend the Loan
the Owner is willing to encumber the Property with this Agreement by which the dwelling units on
the Property will be limited to use as the Owner's principal residence, by which certain additional
encumbrances will not be taken.
C. \My Documents \RDA \Home Imp Program Procedures \Document 1103.doc \LW09 -20 -02
970107 11087 -0009 jlw C046.aer(0)
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
NOW, THEREFORE, the parties agree as follows:
1. Term. The term of the restrictive covenants described herein (the "Term ")
shall commence on the date this instrument is recorded in the Official Records of the Orange
County Recorder, and shall end on the date when all interest and principal due on the Loan has
either been forgiven or paid in full; provided, however, that the covenants against discrimination
set forth in Section 8 shall remain in effect in perpetuity.
2. Covenant to Maintain as Principal Residence. The Owner agrees that
throughout the Term the Owner shall occupy the Property as the Owner's principal residence.
The Owners failure to occupy the Property as the Owners principal residence for a period of thirty
(30) consecutive calendar days shall constitute a breach of this Agreement.
3. Restriction on Transfer. Except as provided in Section 4 hereof, the Owner
shall not sell, convey, transfer, lease, or assign the Property during the term of this Agreement
unless, upon the closing of such sale, conveyance transfer, lease, or assignment of the Property,
the Owner makes payment in full under the Note.
4. Permitted Transfers and Mortgages.
A. Spousal Transfers. The following transfers of title are hereby
permitted and shall not violate this Agreement: a transfer by gift, devise, or inheritance to the
Owner's spouse; the taking of title by a surviving joint tenant that is the Owners spouse; a transfer
of title to a spouse as part of a divorce or dissolution proceedings; if the Owner consists of more
than one person, a transfer of interests among the persons comprising Owner.
B. Junior Trust Deeds. With the prior written consent of the Agency
(which consent may be withheld in the good faith discretion of the Agency), the Owner may
encumber the Property with a junior deed of trust or mortgage encumbering the Property, provided
that: (i) the proceeds of the loan secured by the junior deed of trust or mortgage are to be used
to pay for repairs or the construction of improvements to the Property; (ii) the cost of the repairs
or the improvements (plus loan fees and loan costs), does not exceed the principal amount of
such loan, unless the Owner provides the Agency with adequate assurances that sufficient funds
are available to pay the amount of the deficiency; (iii) the loan is originated by a bank, savings and
loan association,.or other institutional lender; (iv) the interest rate and payment terms thereon are
reasonable (in the Agency's reasonable opinion); (v) the Owner shall be capable of meeting the
monthly payments provided by such loan (in the Agency's reasonable opinion); and (vi) the
Property is not over - encumbered as the result of the additional financing (in the Agency's
reasonable opinion).
Document 1103 2
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
C. Obligation of Transferee. Any transferee hereunder shall take title to
the Property subject to the terms, conditions, restrictions and requirements hereof and the
transferee shall execute any reasonable document required by the Agency to ratify the
assumption by such transferee of the terms hereof.
5. Federal and State Laws. Notwithstanding the above provisions, nothing
contained herein shall require the Agency to do anything contrary to or refrain from doing anything
required by Federal and State laws and regulations promulgated thereunder applicable to the
construction, management, maintenance, and rental of very low, lower, and moderate income
housing units in the City of Seal Beach.
6. Annual Report. The Owner shall submit to the Agency annually, on or before
June 30 of each calendar year, a report stating (i) whether the Property has been used as the
owner's principal residence at all times during the period since the date of the last previous report,
and (ii) whether there was a change in ownership during the period since the date of the last
previous report. The Owner shall not be deemed to be in default for any failure to deliver such
report until 30 days after receipt of written notice from the Agency requesting such report. The
Agency shall have the option of establishing the type of form on which this information must be
provided.
7. Nondiscrimination Covenants. The Owner hereby agrees, for itself, its
successors and assigns, to refrain from restricting the rental, sale or lease of the Property on the
basis of race, color, creed, religion, ancestry, sex, marital status, national origin or age of any
person. All deeds, leases or contracts entered into with respect to the Property shall contain or
be subject to substantially the following nondiscrimination or nonsegregation clauses:
A. In deeds: "The grantee herein covenants by and for himself or herself,
his or her heirs, executors, administrators and assigns, and all persons claiming under or through
them, that there shall be no discrimination against or segregation of, any person or group of
persons on account of race, color, creed, religion, national origin, sex, marital status, age or
ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land
herein conveyed, nor shall the grantee himself or herself, or any person claiming under or through
him or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the
land."
B. In leases: "The lessee herein covenants by and for himself or herself,
his or her heirs, executors, administrators and assigns, and all persons claiming under or through
him or her, and this lease is made and accepted upon and subject to the following conditions:
Document 1103 3
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
"That there be no discrimination against or segregation of any person or group of persons,
on account of age, race, color, creed, religion, sex, marital status, national origin, or ancestry, in
the leasing, subleasing, transferring, use or occupancy, tenure or enjoyment of the land herein
leased nor shall the lessee himself or herself, or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants
or vendees in the land herein leased."
The foregoing shall be a covenant running with the land for the benefit of, and as a burden upon
the Property, and shall remain in effect in perpetuity.
8. Warranties and Representations. The Owner warrants and represents that
all statements, applications, reports and other information heretofore or hereafter provided to the
Agency in connection with the Loan were and will be true and correct at the time provided, and
did not and will not fail to state any material fact, the absence of which would make the
information provided misleading.
9. Maintenance of the Propertv /Prohibition Against Waste. The Owner shall not
commit waste upon the Property. The Owner shall not remove or demolish the improvements
comprising the Property. The Owner shall keep and maintain the Property and the improvements
thereon in good condition and repair. If the Owner at any time fails to so keep and maintain the
Property in good condition and repair, after 30 days' notice from the Agency, the Agency shall
have a right to enter onto the Property and perform such deferred maintenance, and the Owner
shall promptly reimburse the Agency for all costs incurred by the Agency in performing such
maintenance.
10. Rehabilitation of Property. The Owner agrees to cause the Rehabilitation
Project to be undertaken and completed in accordance with the provisions of the Loan
Agreement. Upon completion of the Rehabilitation Project, as determined by a final inspection
of Agency staff, the Owner shall be conclusively deemed to have satisfied the obligations set forth
in this Section 10, and thereafter this Section 10 shall be of no further force and effect.
11. Maintenance of Propertv. The Owner shall, at its sole cost and expense,
maintain and repair or cause to be maintained and repaired the Property and the improvements
thereon, including. without limitation the buildings, fencing, parkways, landscaping, driveways,
garages and carports, lighting and signage, in first class condition and repair, in a decent, safe
and sanitary manner, making all repairs as may be required by this Covenant Agreement, by all
applicable City Code, Uniform Code provisions and other provisions of law, and as may be
established by a homeowner's association or regulatory entity pursuant to an instrument recorded
against the Property, or otherwise recognized by area property owners, concerning the
maintenance and repair of the Property.
Document 1103 4
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
12. Interior Maintenance. The Owner shall maintain the interior of the dwelling
unit located on the Property in a decent, safe and sanitary condition and shall, immediately upon
discovery thereof, correct any health and safety code violations.
13. Exterior Maintenance. The Property shall be kept free from the accumulation
of debris and waste materials. All exterior, painted surfaces shall be maintained at all times in a
clean and presentable manner, free from chipping, cracking, peeling and defacing marks.
(a) Exterior. No building, patio, balcony, wall, fence or yard area, including
parkways, may be left in an unmaintained condition so that any of the
following exist:
(i) Buildings abandoned, boarded up, partially destroyed .or left
unreasonably in a state of partial construction.
(ii) Unpainted buildings or buildings with peeling paint in such a condition
as to:
(A) Cause dry rot, warping and termite infestation; or
(B) Constitute an unsightly appearance that detracts from the
aesthetic or property values of neighboring properties.
(iii) Broken windows, constituting hazardous conditions and /or inviting
trespassers and malicious mischief.
(iv) Broken or discarded furniture, appliances and other household
equipment stored for periods exceeding one (1) week.
(v) Packing boxes, lumber, trash, dirt and other debris stored for periods
exceeding one (1) week.
(vi) Unscreened trash cans, bins or containers stored for unreasonable
periods in areas_ visible from public streets and common areas other
than alleyways. .
(b) Graffiti Removal. All graffiti, and defacement of any type, including marks,
words and pictures, must be removed and any necessary painting or repair
completed within the earlier of seventy -two (72) hours of their creation or
within forty -eight (48) hours after notice to Owner from City or Agency.
Document 1103 5
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
(c) Driveways. All driveways must be paved and maintained with impervious
material in accordance with the City Code. In addition, all water must be
made to drain freely to the public part of the waterway without any pooling.
(d) Trash. All trash shall be collected and placed in appropriate areas for pick -up
by refuse haulers on normal trash pick -up days.
(e) Landscaping. All exterior areas of the Property that are not buildings,
driveways or walkways shall be adequately and appropriately landscaped
and maintained. The landscaping shall meet minimum standards set from
time to time by the Agency. Landscaping on the Property, including front,
back and side yards and parkways shall be absent of the following:
(i) Lawns with grasses in excess of six (6) inches in height.
(ii) Untrimmed hedges.
(iii) Trees, shrubbery, lawns and other plant life dying from lack of water
or other necessary maintenance.
(iv) Trees and shrubbery grown uncontrolled without proper pruning.
(v) Vegetation so overgrown as to be likely to harbor rats or vermin.
(vi) Dead, decayed or diseased trees, weeds and other vegetation.
(vii) Inoperative irrigation systems(s).
(viii) Parkways with ground cover in excess of eighteen (18) inches in
height.
14. Damage and Destruction - Owner's Duty to Rebuild. If all or any portion of
the Property is damaged or destroyed by fire or other casualty, it shall be the duty of Owner to
rebuild, repair or construct said portion of the Property and /or the improvements in a timely
manner which will restore it to Code compliance condition. .
In furtherance of the requirements of this Article 2, Owner shall maintain an all risk
property insurance policy consistent with the requirements of the Loan Agreement. In the event
of loss, Owner shall give prompt notice to the insurance carrier and Agency.
If the Property is abandoned by Owner, or if Owner fails to respond to Agency within
thirty (30) days from the date notice is mailed by Agency to Owner that the insurance carrier offers
Document 1103 6
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
to settle a claim for insurance benefits, Agency is authorized to collect and apply the insurance
proceeds at Agency's option either to restoration or repair of the Property or to the sums secured
by the Deed of Trust securing the Agency Loan.
15. Reconstruction. Upon damage to the Property or the improvements thereon,
Owner shall be obligated to proceed with all due diligence hereunder and commence
reconstruction within two (2) months after the damage occurs and complete reconstruction within
six (6) months after damage occurs, or demolish and vacate within two (2) months, unless
prevented by causes beyond its reasonable control.
16. Covenants to Run With the Land. The covenants and restrictions contained
herein shall run with the land and shall be a burden upon the Property and shall be enforceable
by the Agency, its successors in interest and assigns, against the Owner and the Owner's heirs,
successors in interest and assigns.
17. Administration. The Agency may administer the terms hereof or may, from
time to time assign its rights hereunder or designate another entity, person, licensed real estate
broker or organization to administer the terms hereof.
18. Independent and Severable Provisions. In the event that any provision of
this instrument is held by a court of competent jurisdiction to be unenforceable or invalid, such
holding shall not render unenforceable any other provision hereof, each provision hereof being
expressly severable and independently enforceable to the fullest extent permitted by law.
19. Successors and Assigns. The restrictions contained within shall be binding
upon the Owner and the Owner's heirs, successors and assigns, and shall inure to the benefit of
the Agency and its successors and assigns; provided, however, the Owner and any permitted
successors shall be liable for performance hereof only during their respective periods of
ownership of the Property, provided the transferee has in writing assumed and agreed to perform
the Owner's obligations hereunder or such obligations as they may pertain in part to the Property.
20. Default. If the Owner defaults with regard to any of the provisions of this
Agreement, then the Agency shall serve written notice of such default upon the Owner. If the
default is not cured by the Owner within 30 days after service of the notice of default (or if the
. default is of a type which cannot be cured within 30 days, if the Owner commences the cure within .
30 days after service of the notice of default and thereafter diligently pursues the cure to
completion), then the Owner shall be liable to the Agency for damages caused by such default,
or, if the default is of a type which cannot be compensated by the payment of money, the Agency
shall be entitled to injunctive relief.
21. Further Assurances. The Owner covenants that upon request of the Agency,
the Owner, or the Owner's heirs, successors or assigns, will execute, acknowledge and deliver,
Document 1103 7
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
or cause to be executed, acknowledged and delivered, such further instruments and agreements
and do such further acts as may be necessary, desirable or proper to carry out more effectively
the purpose of this Agreement. At the expiration of the Term, the Agency agrees to provide to the
Owner an instrument in recordable form that has the effect of confirming the termination of the
requirements of this instrument.
22. Captions and Section Headings. Captions and section headings used herein
are for convenience only and shall not be used in construing this instrument.
23. Third Party Beneficiary. The City of Seal Beach (the "City ") is hereby made
an intended third party beneficiary to this Agreement and the covenants herein and City has the
right to enforce all of the provisions of this Agreement. This Agreement shall not in any way
impair the right or duty of the City to enforce any of the provisions of the City Code including, but
not limited to, the abatement of dangerous buildings. The Agency and its successors and assigns
and the City are deemed the beneficiaries of the covenants contained herein, without regard to
technical classification and designation and without regard to whether Agency or City has been,
remains or is an owner of any land or interest therein.
24. No Waiver. No waiver by the Agency of its rights hereunder, or of any
breach by the Owner of any covenant, restriction, or condition herein contained, shall be effective
unless such waiver is in writing, signed by the Agency and delivered to the Owner. Any waiver
by the Agency of its power to terminate the Owner's estate herein or of any covenant, restriction,
or condition herein contained, or the failure by the Agency to exercise any right or remedy with
respect to any breach or breaches, shall not constitute a waiver or relinquishment for the future
of any rights regarding subsequent sales, or of any such covenant or condition nor bar any right
or remedy of the Agency in respect of any subsequent breach.
25. Request for Special Notice. Owner covenants to cause a "Request for
Special Notice" as provided in California Civil Code Section 2924b, or any successor or
replacement statute, to be recorded to provide notice to the Agency at the address for the Agency
set forth in Section 26, Notices, hereof. Owner shall cause such Request for Special Notice to
be recorded concurrently with the recordation of any deed of trust encumbering the Property.
26. Notices. All notices to be delivered to the parties pursuant to the terms
hereof shall be in writing and shall be delivered in person or by U.S. Mail or other delivery service
to the addresses listed below.
Any of the following addresses may be changed by written notice. If notice is given it shall
be deemed effective upon 3 business days after deposit of same, postage prepaid, in the U.S.
Mail, or the date of actual receipt as evidenced by personal acknowledgement, return receipt or
other comparable means.
Document 1103 8
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
If to the Owner: at the Property
If to the Agency: Seal Beach Redevelopment Agency
211 Eighth Street
Seal Beach, California 90470
Attention: Executive Director
27. Entire Agreement. This instrument constitutes the entire agreement of the
parties hereto, and the provisions hereof may be modified or amended only by a written
instrument signed by the party to be charged.
28. Attorneys' Fees. In any action brought to declare the rights granted herein
or to enforce or to interpret any of the terms of this Agreement, the prevailing party shall be
entitled to an award of reasonable attorney's fees in an amount determined by the court.
•
Document 1103 9
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.
"Owner"
REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH
a public body, corporate and politic ( "Agency ")
By:
Executive Director
Attest:
City Clerk
Approved as to form:
Agency General Counsel
Document 1103 10
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
State of California }
}
County of }
On , 200 , before me, ,
a Notary Public, personally appeared
, personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are
subscribed to the within instrument and acknowledged to me that he /she /they executed the same
in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
(seal)
State of California }
}
County of }
On , 200 , before me, ,
a Notary Public, personally appeared
, personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are
subscribed to the within instrument and acknowledged to me that he /she /they executed the same
in his /her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
(seal)
Document 1103 11
City of Seal Beach Redevelopment Agency
Agreement Containing Covenants Affecting Real Property
, Seal Beach
(Property Address)
EXHIBIT "A"
LEGAL DESCRIPTION
Document 1103 12
RECORDING REQUESTED BY
WHEN RECORDED MAIL TO:
Seal Beach Redevelopment Agency
211 Eighth Street
Seal Beach, CA 90740 -6379
REQUEST FOR NOTICE
UNDER SECTION 2924b CIVIL CODE
APN #
IN ACCORDANCE with Section 2924b, Civil Code, Request is hereby made that a copy
of any Notice of Default and a copy of any Notice of Sale under the Deed of Trust (or
mortgage) Recorded as Instrument No. on
, 20 , Official Records of ORANGE (or filed for record with recorder's serial
number N/A , ORANGE County), California and describing and therein as:
Lot description
Executed by , as Trustor (or Mortgagor). In
which (City of Seal Beach OR Seal Beach Redevelopment Agency) is named as
Beneficiary (or mortgagee), and Title Insurance , as Trustee, be mailed to Seal
Beach Redevelopment Agency, at 211 Eighth Street, Seal Beach, CA 90740 -6379
PRINTED NAME PRINTED NAME
SIGNATURE SIGNATURE
ACKNOWLEDGEMENTS
C. \My Documents \RDA \Home Imp Program Procedures \Document 1104 doc \LWO9 -20 -02
State of California )
) ss
County of Orange )
On , 200 , before me,
(name, title of officer, e.g., "Jane Doe, Notary Public ")
personally appeared
(name(s) of signer(s))
o personally known to me —OR-
O proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is /are subscribed to the within instrument and acknowledged to me
that he /she /they executed the same in his /her /their authorized capacity /ies, and
that by his /her /their signature(s) on the instrument the person(s), or the entity
upon behalf of which person(s) acted, executed the instrument.
Witness my hand and official seal.
(Signature of Notary)
Capacity claimed by signer: (This section is OPTIONAL.)
❑ Individual
❑ Corporate Officer(s):
❑ Partner(s):
❑ General ❑ Limited
❑ Attorney -in -fact
❑ Trustee(s)
❑ Guardian /Conservator
❑ Other:
Signer is representing:
(name of person(s) or entity(ies))
Attention Notary: Although the information requested below is OPTIONAL, it could
prevent fraudulent attachment of this certificate to an unauthorized document.
THIS CERTIFICATE Title or Type of Document
MUST BE ATTACHED
TO THE DOCUMENT Number of Pages Date of Document
DESCRIBED AT RIGHT: Signer(s) Other than Named Above
1104 doc
LOAN AGREEMENT
THIS LOAN AGREEMENT ( "Loan Agreement ") is made this
day of , 200 by and between
( "Owner") whose mailing address is
and the SEAL
BEACH REDEVELOPMENT AGENCY, a public body, corporate and politic ( "Agency ")
whose mailing address is 211 Eighth Street, Seal Beach, California
RECITALS
A. Agency is Redevelopment Agency created pursuant to and exercising
powers conferred by the Califomia Community Redevelopment Law (Health & Safety Code
Section 33000 et seq.).
B. Agency and the City of Seal Beach, a municipal corporation, ( "City ") have
established the Home Improvement Program and Housing Revitalization Program
(collectively, the "Program ") to further Agency's and City's goals to increase, improve, and
preserve the supply of low and moderate income housing in the City by providing property
improvement loans to eligible property owners for repair, rehabilitation and /or
reconstruction of the existing stock of low and moderate income housing. City and Agency
have designated Agency as the entity responsible for the implementation, administration
and enforcement of the Program.
C. Agency finds that the rehabilitation and improvement of low and moderate
come housing, pursuant to the Program within the City including (without limitation) areas
outside of the Redevelopment Project Areas, will be of direct benefit to those projects in
assisting the accomplishment of project objectives.
D. Owner is the fee simple owner of that certain residential real property
commonly known as
located in the City of Seal Beach, County of Orange, State of Califomia (the "Property ").
E. Owner has applied for and is eligible to receive Program assistance and,
subject to Program requirements and the terms and conditions of this Loan Agreement, the
Promissory Note, the Deed of Trust, and the Agreement Containing Covenants Affecting
Real Property (collectively, the "Loan Documents "), Agency has agreed to loan and Owner
has agreed to borrow up to a maximum amount of
Dollars ($ ) for the rehabilitation of
the Property (the "Agency Loan ").
F. As a condition of providing the Agency Loan, the Program requires that
Owner agree to use, maintain and occupy the Property in accordance with the covenants
set forth in this Loan Agreement and the Loan Documents.
C.1My Documents\RDA\Home Imp Program Procedures\Document 1105.doc \LWM09 -20 -02
707603.1
City of Seal Beach Redevelopment Agency
Loan Agreement
NOW, THEREFORE, for good and valuable consideration the parties agree as
follows:
1.0 DEFINITIONS
The following terms shall have the following meanings in this Loan Agreement:
"Agency" shall mean the Seal Beach Redevelopment Agency, a public body,
corporate and politic, responsible for the implementation, administration and enforcement
of the Program.
"Agency Loan" shall mean the loan by Agency or City (depending on the source
of Program funds and as specified in the Promissory Note) to Owner in the amount set
forth in the recitals.
"Agreement Containing Covenants Affecting Real Property" shall mean the
Agreement entered into by and between Agency and Owner dated of even date herewith
and incorporated herein by reference, which sets forth certain covenants with respect to
the use, occupancy, and maintenance of the Property, which will be recorded against the
Property pursuant to this Loan Agreement.
"City" shall mean the City of Seal Beach, a California municipal corporation.
"Contractor" shall mean a licensed and insured contractor or contractors
performing work for the Rehabilitation.
"Deed of Trust" shall mean the deed of trust executed by Owner as Trustor in
. favor of Agency or City dated of even date herewith and incorporated herein by reference
to be recorded as a lien against the Property securing the Promissory Note.
"Event of Default" shall mean a default not cured within the prescribed time as
defined in Section 6.1 of this Loan Agreement.
"Hazardous Substances" shall mean any "hazardous substance" including
(i) asbestos; (ii) polychlorinated biphenyls; (iii) petroleum, oil, gasoline (refined and
• unrefined), lead and their respective by- products and constituents; and (iv) any other •
substance, whether in the form of a solid, liquid, gas or any other form whatsoever, which
by any federal, state or local statutes, regulations, rules, ordinances or codes either
requires special handling in its use, transportation, generation, collection, storage,
handling, treatment or disposal, or is defined as "hazardous" or harmful to the environment,
including (without limitation) the Comprehensive Environmental Response, Compensation
Document 1105 2
City of Seal Beach Redevelopment Agency
Loan Agreement
and Liability Act of 1980 (42 U.S.C. Section 9601, et seq.), as amended from time to time,
and regulations promulgated thereunder.
"Loan Agreement" shall mean this Loan Agreement.
"Parties" shall mean Agency and Owner.
"Program" shall mean, collectively, Agency's Home Improvement Program
established to provide home improvement loans for rehabilitation of the community's low
and moderate income housing to be implemented, administered and enforced by Agency.
"Program Administrator" shall mean Agency's Executive Director, or designee,
charged with the implementation, administration and enforcement of the Program.
"Promissory Note" or "Note" shall mean the promissory note, dated of even date
herewith and incorporated herein by reference evidencing the Agency /City Loan.
"Property" shall mean the real property generally described in Recital D together
with the improvements located thereon.
"Rehabilitation" shall mean the work of rehabilitation and construction on the
Property as set forth in the Rehabilitation Agreement.
"Rehabilitation Agreement" shall mean that certain agreement for rehabilitation
by and between Owner and Contractor providing for the Rehabilitation of the Property.
2.0 REHABILITATION OF PROPERTY
2.1. Scope of Work. Owner shall cause the Rehabilitation of the Property to be
undertaken and completed in accordance with the provisions of this Loan Agreement and
as set forth in the Rehabilitation Agreement. The Rehabilitation shall be undertaken and
completed by a qualified Contractor selected by Owner and approved by Agency. Owner
shall contract for the Rehabilitation with the Contractor pursuant to the Rehabilitation
Agreement. Owner shall not enter into any other contract with the Contractor, or any other
contractor, or otherwise undertake any work on the Property beyond the Scope of Work
set forth in the Rehabilitation Agreement until a Notice of Completion has been recorded.
2.2. City and Other Governmental City Permits. Before commencement of the
Rehabilitation, Owner shall secure or cause to be secured any and all building permits and
other necessary permits which may be required by City or any other governmental agency
affected by such Rehabilitation.
Document 1105 3
City of Seal Beach Redevelopment Agency
Loan Agreement
2.3. Cost of Rehabilitation. Subject to the provisions of Section 3.0, et seq.
concerning the Agency Loan, Owner, at Owner's sole cost and expense, shall cause the
completion of the Rehabilitation.
2.4. Schedule of Performance. Upon issuance of a Notice to Proceed, Owner
shall cause the Contractor to commence and diligently prosecute to completion the
Rehabilitation within the times established in the Rehabilitation Agreement.
2.5. Entry by Agency. Owner shall permit Agency, through its officers, agents,
or employees, at all reasonable times to enter into the Property and inspect the work of
Rehabilitation to determine that the same is in conformity with all the requirements of this
Loan Agreement. Owner acknowledges that Agency is under no obligation to supervise,
inspect, or inform Owner of the progress of construction, and Owner shall not rely upon
Agency therefore. Owner shall rely entirely upon its own supervision and inspection in
determining the quality and suitability of the materials and work, and the performance of
Contractor.
2.6. Environmental Condition of the Property. To Owner's best knowledge,
the Property does not currently contain Hazardous Substances. Owner acknowledges and
agrees that it shall be solely and completely responsible for responding to and complying
with any administrative notice, order, request or demand, or any third party claim or
demand relating to potential or actual contamination of the Property. Owner shall assume
any liabilities or responsibilities, which are assessed against Agency in any action
described under this Section 2.6.
Owner's covenants pertaining to environmental matters as set forth in this
Section 2.6 and Owner's obligations pursuant to the indemnity relating in any way to
Hazardous Substances set forth in Section 5.2, shall survive the termination of this Loan
Agreement, and shall survive any termination of the estate created by the Deed of Trust
as a result of the exercise by Agency or City, as the case may be, of any default remedies
available to it in law or in equity. Such indemnity and covenants are separate, independent
of, and in addition to, Owner's undertakings as Borrower pursuant to the Promissory Note
and as Trustor under the Deed of Trust. A separate action may be brought to enforce the
provisions of this paragraph which shall in no way be deemed to be an action on the
Promissory Note, whether or not Agency or City, as the case may be, would be entitled to
a deficiency judgment following judicial foreclosure or a trustee's sale.
2.7. Notice of Completion. The recordation of a Notice of Completion with
respect to the Property shall not amend, limit or release Owner from the continued
effectiveness of any obligations relating to the operation, maintenance, or use of the
Property, or payment of monies, or any other obligations, except for the obligation to
complete the Rehabilitation. Upon recordation of a Notice of Completion, the Rehabilitation
Document 1105 4
City of Seal Beach Redevelopment Agency
Loan Agreement
shall be conclusively deemed to have been completed in conformity with this Loan
Agreement.
3.0 AGENCY LOAN
3.1. Agency Loan. Agency or City (depending on the source of Program Funds
as specified in the Promissory Note) shall loan to Owner the Agency Loan for the purpose
of paying the costs of the Rehabilitation as set forth in the Rehabilitation Agreement and
subject to the conditions and restrictions set forth herein and those set forth in the
Promissory Note.
3.2. Promissory Note. Owner shall execute and deliver to Agency the
Promissory Note evidencing the Agency Loan.
3.3. Deed of Trust. Owner shall execute and deliver to Agency a Deed of Trust
encumbering the Property, which shall secure the Promissory Note and the performance
of the obligations set forth in' this Loan Agreement and the Agreement Containing
Covenants Affecting Real Property. The Deed of Trust shall be subordinate only to first
mortgage financing and such other liens and encumbrances approved by the Program
Administrator.
3.4. Disbursement of Agency Loan Proceeds. The Agency Loan shall be
deposited into an escrow account and disbursed upon satisfactory completion of the
Rehabilitation or portion thereof in accordance with the Rehabilitation Agreement.
Payments shall be disbursed by checks payable to Contractor in accordance with the
Rehabilitation Agreement. Ten percent (10 %) of the total contract price may be retained
by Agency not more than forty -five (45) days from the date the Notice of Completion is
recorded. Agency's obligation to disburse Agency Loan proceeds is expressly conditioned
upon Owner's continued satisfactory progress of the work of the Rehabilitation and
compliance with the terms and conditions of this Loan Agreement. In the event that the
amount of the Agency Loan is not sufficient to pay the entire amount due under the
Rehabilitation Agreement, Owner acknowledges that Owner is responsible for and shall
pay the additional amount from Owner's own funds. In the event, as of the date of the final
payment due and made under the Rehabilitation Agreement there remain loan proceeds
deposited into escrow, then that the amount deposited into the escrow exceeds the amount
due under the Rehabilitation Agreement such additional amount shall be immediately
credited against the•Promissory Note as a principal reduction.
3.5. Income Information. Prior to the execution of this Loan Agreement, Owner
has submitted to Agency certain income and other financial information concerning Owner
and the persons occupying the Property. Owner represents and warrants to Agency that
all information Owner has provided and will provide in the future is and will be true, correct
and complete. Owner acknowledges that Agency is relying and has relied upon such
Document 1105 5
City of Seal Beach Redevelopment Agency
Loan Agreement
information in entering into this Loan Agreement and that the submittal of fraudulent, false
or inaccurate evidence of income shall be deemed an Event of Default and Agency may
immediately seek all available remedies as set forth herein, including, without limitation,
acceleration of the Promissory Note.
4.0 USE OF PROPERTY
4.1. Covenants. Owner and Agency shall execute and record in the Official
Records of Orange County, California, the Agreement Containing Covenants Affecting
Real Property which sets forth certain covenants concerning the use, occupancy, and
maintenance of the Property. Owner shall comply with the covenants established in the
Agreement Containing Covenants Affecting Real Property which shall, without regard to
technical classification and designation, be binding for the benefit and in favor of Agency,
City, their successors and assigns, and any successor in interest to the Property, or any .
part thereof, and shall remain in effect for the periods of time set forth in the Agreement
Containing Covenants Affecting Real Property.
4.1.1. Owner Records and Program Compliance. Owner shall maintain and
submit to the Program Administrator at such times and in such form as required in the
Agreement Containing Covenants Affecting Real Property all necessary records and
documentation relating to the Property and its use and maintenance, evidencing
compliance with this Loan Agreement and the Agreement Containing Covenant Affecting
Real Property.
4.1.2. Failure to Comply. Agency relies upon the information contained in the
reports submitted pursuant to section 4.1.1 to satisfy its own monitoring and reporting
requirements. In the event Owner fails to submit to Agency all of the documentation
required by this Loan Agreement and the Agreement Containing Covenants Affecting Real
Property, Owner shall be in default of this Loan Agreement and the Agreement Containing
Covenants Affecting Real Property and Agency may seek all available remedies as set
forth herein, including, without limitation, acceleration of the Promissory Note.
4.2. Non - Discrimination Covenants. Owner covenants by and for itself, its
successors and assigns, and all persons claiming under or through them that there shall
be no discrimination against or segregation of any person or group of persons on account
of race, color, religion, sex, marital status, familial status, disability, national origin, or
•
• ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure; or enjoyment of the
Property, nor shall Owner itself or any person claiming under or through it, establish or
permit any such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees,
or vendees in the Property. Owner shall comply with the nondiscrimination covenants set
forth in the Agreement Containing Covenants Affecting Real Property and shall include the
Document 1105 6
City of Seal Beach Redevelopment Agency
Loan Agreement
nondiscrimination clauses set forth therein in all deeds, leases and contracts. The
covenants against discrimination shall remain in effect in perpetuity.
4.3. Maintenance of Property. Owner shall comply with all covenants set forth
in the Agreement Containing Covenants Affecting Real Property concerning the
maintenance and repair of the Property.
4.4. Taxes and Assessments. So long as Owner owns the Property, Owner
shall pay or cause to be timely paid all real and personal property taxes, assessments and
charges and all income, withholding, sales, and other taxes assessed against Owner, or
payable by Owner, at such times and in such manner as to prevent any penalty from
accruing, or any lien or charge from attaching to the Property; provided, however, that
Owner shall have the right to contest in good faith any such taxes, assessments, or
charges. In the event Owner exercises Owner's right to contest any tax, assessment, or
charge, Owner, on final determination of the proceeding or contest, shall immediately pay
or discharge any decision or judgment rendered against Owner, together with all costs,
charges, and interest.
4.5. Compliance with Laws. Owner shall comply with all federal, state and local
statutes, ordinances, regulations and laws with respect to Owner's ownership, use,
maintenance, and Rehabilitation of the Property. Owner shall carry out the Rehabilitation
in conformity with all applicable laws, including all applicable state labor standards, City
zoning and development standards, building, plumbing, mechanical and electrical codes,
and all other provisions of the City Municipal Code.
4.6. Subordination. The Agreement Containing Covenants Affecting Real
Property shall run with the land and shall be subordinate only to the lien of first mortgage
financing and such other liens and encumbrances approved by the Program Administrator.
Agency hereby finds that an economically feasible method of financing for the
Rehabilitation, without the subordination of the covenants as set forth in this Loan
Agreement and the Agreement Containing Covenants Affecting Real Property, is not
reasonably available. The Program Administrator is hereby authorized to execute such
subordination agreements and /or such other documents as may be reasonably necessary
to evidence such subordination, provided that such subordination agreements contain
written commitments which the Program Administrator finds are reasonably designed to
protect Agency's investment in the event of default, such as any of the following: (a) a right
of Agency to cure a default on the loan prior to foreclosure, (b) a right of Agency to
negotiate with the lender after notice of default from the lender and prior to foreclosure, (c)
an agreement that if prior to foreclosure of the loan, Agency takes title to the Property and
cures the default on the loan, the lender will not exercise any right it may have to
accelerate the loan by reason of the transfer of title to Agency, and (d) a right of Agency
to purchase the Property from Owner at any time after a default on the loan.
Document 1105 7
City of Seal Beach Redevelopment Agency
Loan Agreement
5.0 INSURANCE AND INDEMNITY
5.1. Insurance. Owner shall maintain, during the term of the Agency Loan, an
all -risk property insurance policy (including the perils of earthquake and flood, as
determined by the Program Administrator), insuring the Property in an amount equal to the
full replacement value of the structures on the Property.
Each insurance policy required by this Loan Agreement shall contain the following
clauses:
(1) "This insurance shall not be canceled, limited in scope or
coverage, or non - renewed until after thirty (30) days prior written notice has been
given to the Agency."
(2) "It is agreed that any insurance maintained by the Agency shall
apply in excess of and not contribute to insurance provided by this policy."
(3) "The Agency and its officers, agents, employees,
representatives and volunteers are added as additional insureds as respects,
operations and activities of, or on behalf of the named insured, performed under
contract with the Agency."
(4) "The Agency is added as a loss payee /mortgagee with respect
to physical loss or damage to the Property." This clause is applicable to the
property insurance policy only.
Owner shall transmit a copy of the certificates of insurance and additional
insured /loss payee endorsements required by this Section to Agency concurrent with the
execution of this Loan Agreement, and Owner shall annually transmit to Agency a copy of
the certificate of insurance and an additional insured /loss payee endorsement, signed by
an authorized agent of the insurance carrier setting forth the general provisions of
coverage. The copy of the certificates of insurance and endorsements shall be transmitted
to Agency at the address and in the manner set forth in Section 7.2 hereof.
5.2. Indemnification. Owner shall, at Owner's expense, defend, indemnify, save
•
• and hold Agency and City and their officers, agents, employees and representatives
harmless from any and all losses, damages, liabilities, claims, fines, penalties, causes of
action, judgments, settlements, court costs, reasonable attorneys' fees, costs of evidence
of title, costs of evidence of value, and other expenses which they may suffer or incur
arising from Owner's performance of its obligations under this Loan Agreement, Owner's
ownership, use, occupancy, or maintenance of the Property, both land and improvements,
and /or the Rehabilitation, including without limitation, any loss, penalty, fine, liability, injury,
Document 1105 8
City of Seal Beach Redevelopment Agency
Loan Agreement
damage or expense, including interest and attorneys' fees, in any way connected with any
injury to any person or damage to any property or any loss to Agency and City and their
officers, employees, agents and representatives occasioned in any way by the presence
or clean -up of Hazardous Substances on the Property as described in Section 2.6, and
third party claims for relocation assistance or benefits as may be asserted pursuant to
applicable laws as described in Section 7.5, or any other claim or suit of whatever kind or
nature.
5.3. Release. Owner hereby waives, releases and discharges forever Agency
and City, and their officers; employees, agents and representatives, from all present and
future claims, demands, suits, legal or administrative proceedings, and for any and all
liability for damages, losses, costs, liabilities, fees and expenses, present and future,
arising out of or in any way connected with Owner's use, maintenance, ownership or
operation of the Property, any condition of environmental contamination on the Property,
or the existence of Hazardous Substances in any state on the Property, however they
came to be located there. .
6.0 DEFAULTS, REMEDIES AND TERMINATION
6.1. Defaults. Failure or delay by either party to perform any covenant, condition
or provision of this Loan Agreement to be observed or performed by such party within the
time provided herein constitutes a default under this Loan Agreement. The injured party
shall give written notice of default to the party in default, specifying the default complained
of by the injured party. Failure or delay by either party in giving such notice or asserting
any of its rights or remedies as to any default shall not operate as a waiver of any default
or of any such rights or remedies, or change the time of default, or deprive either such
party of its right to institute and maintain any actions or proceedings which it may deem
necessary to protect, assert or enforce any such rights or remedies.
The defaulting party shall immediately commence to cure such default upon receipt
of the written notice of default and shall complete such cure within thirty (30) days from the
date of receipt of the written notice or such longer period if the nature of the default is such
that more than thirty (30) days is required to cure such default, but in any event not longer
than ninety (90) days. Failure to cure such default within the prescribed time shall
constitute an "Event of Default," and the injured party may pursue all available remedies
in equity or at law and may institute appropriate legal action.
•
6.2. Attorneys' Fees and Costs. In the event that any attorney is engaged by
Agency to enforce or defend any provision of this Loan Agreement, or as a consequence
of any Event of Default, without the filing of any legal action or proceeding, then Owner
shall pay to Agency immediately upon demand all attorneys fees and costs (including,
without limitation, staff and related administrative costs) incurred by Agency in connection
therewith. However, in the event that any action is instituted pursuant to this Loan
Document 1105 9
City of Seal Beach Redevelopment Agency
Loan Agreement
Agreement, whether or not an arbitration award or final court judgment is entered, the
parties agree that the non - prevailing party shall be responsible for and shall pay all costs
and all attorneys' fees incurred by the prevailing party.
6.3. Applicable Law. The laws of the State of California shall govern the
interpretation and enforcement of this Loan Agreement.
6.4. Acceptance of Service of Process. In the event that arbitration or any legal
action is commenced by Owner against Agency, service of process on Agency shall be
made by personal service upon Agency Secretary, or in such other manner as may be
provided by law.
In the event that arbitration or any legal action is commenced by Agency
against Owner, service of process on Owner shall be made in such manner as may be
provided by law, whether made within or outside the State of California.
6.5. Rights and Remedies are Cumulative. Except as otherwise expressly
stated in this Loan Agreement, the rights and remedies of the parties are cumulative, and
the exercise by either party of one or more of such rights or remedies shall not preclude
the exercise by it, at the same time or different times, or any other rights or remedies for
the same default or any other default by the other party.
6.6. Rights of Termination. In addition to the remedies the Parties may have
through arbitration or at law or in equity, the parties shall have the right to terminate this
Loan Agreement upon an Event of Default hereunder by the other party. Termination shall
be effective immediately upon service on the defaulting party of a written notice of
termination in accordance with the notice provisions of Section 7.2 herein below.
7.0 GENERAL PROVISIONS
7.1. Time. Time is of the essence in this Loan Agreement.
7.2. Notices. Written notice, demands and communications between Agency .
and Owner shall be deemed sufficient if dispatched by registered or certified mail, postage
prepaid, return receipt requested to the office of Agency and to Owner at the addresses
first set forth above. Such written notices, demands and communications may be sent in
the manner prescribed to each other's addresses as•either party may, from time to time,
designate by mail, or the same may be delivered in person to representatives of either
party upon such premises.
Notices herein shall be deemed given as of the date of personal service or three (3)
consecutive calendar days after deposit of the same in the custody of the United States
Postal Service.
Document 1105 10
City of Seal Beach Redevelopment Agency
Loan Agreement
7.3. Documents. Owner is aware that Agency and /or City have prepared certain
documents to implement the Program and secure repayment of the Agency Loan. Owner
has reviewed and agrees to execute the following documents prior to receiving the Agency
Loan:
(1) Promissory Note
(2) Deed of Trust
(3) Agreement Containing Covenants Affecting Real Property
(4) Rehabilitation Agreement
Owner agrees and acknowledges that the Deed of Trust and the Agreement Containing
Covenants Affecting Real Property shall be recorded with the County Recorder of the
County of Orange and shall appear of record with respect to and as encumbrances to the
Property.
7.4. Third Party Beneficiary. City is hereby made an intended third party
beneficiary to this Loan Agreement and the covenants herein and is entitled, inter alia: (a)
City has the right to enforce all of the provisions of this Loan Agreement, and (b) this Loan
Agreement does not in any way infringe on the right or duties of City to enforce any of the
provisions of the City Code including, but not limited to, the abatement of dangerous
buildings. Agency and its successors and assigns and City are deemed the beneficiaries
of the covenants contained herein, without regard to technical classification and
designation and without regard to whether Agency or City has been, remains or is an
owner of any land or interest therein.
7.5. Relocation Assistance Waiver. Owner acknowledges and agrees that
Owner's participation in the Program is voluntary and Owner may, any time prior to loan
funding, withdraw from participation in the Program. Owner further acknowledges that the
purpose of the Program is to finance property improvements in order to improve the
housing stock available to low and moderate - income households in the community and that
Agency does not anticipate that rehabilitation requiring relocation of the occupants will be
undertaken. Owner hereby waives any and all benefits and assistance pursuant to the
Federal Uniform Relocation Assistance and Real Property Acquisition Act, 42 U.S.C.
§ 4201, et seq., the California Relocation Assistance Law, Government Code Section
7260, et seq., and the regulations adopted pursuant thereto by the United States, the State
of California, and Agency (the "Relocation Laws "). In the event of displacement from the
Property due to the implementation of this Loan Agreement, Owner expressly
acknowledges and agrees that Owner shall be fully liable and responsible for any and all
costs and expenses relating to compliance with the Relocation Laws for any person
occupying the Property and "that Agency shall be solely responsible for administration and
determination(s) of eligibility, assistance, and payments pursuant to the Relocation Laws.
Document 1105 11
I
City of Seal Beach Redevelopment Agency
Loan Agreement
7.6. Further Assurances. Owner shall execute any further documents
consistent with the terms of this Loan Agreement, including documents in recordable form,
as Agency shall from time to time find necessary or appropriate to effectuate its purposes
in entering into this Loan Agreement and making the Agency Loan.
7.7. Amendment of Agreement. No modification, rescission, waiver, release or
amendment of any provision of this Loan Agreement shall be made except by a written
Agreement executed by Owner and Agency.
7.8. Agency May Assign. Agency may, at its option and without obtaining the
consent of Owner, assign its right to receive repayment of the Agency Loan.
7.9. Owner Assignment Prohibited. In no event shall Owner assign or transfer
any portion of this Loan Agreement without the prior express written consent of Agency,
which consent may be given or withheld in Agency's sole discretion. No assumption of the
Agency Loan shall be permitted at any time. This section shall not prohibit Agency's right
to assign all or any portion of its rights to the Agency Loan repayments hereunder.
7.10. Agency to File Notices. Owner irrevocably appoints, designates, and
authorizes Agency as its agent (said entity being coupled with an interest) to file for record
any notices of completion, cessation of labor, or any other notice that Agency deems
necessary or desirable to protect its interest hereunder and under the Agency Loan
documents.
7.11. Actions. Agency shall have the right to commence, appear in, or defend any
action or proceeding purporting to affect the rights, duties, or liabilities of the parties
hereunder, or the disbursement of any proceeds of the Agency Loan.
7.12. Successors and Assigns. The terms hereof shall be binding upon and
inure to the benefit of the successors and assigns of the parties hereto; provided, however,
that an assignment of Owner's rights hereunder in violation of Section 7.8 shall be void.
7.13. Construction of Words. Except where the context otherwise requires,
words imparting the singular number shall include the plural number and vice versa, words
imparting persons shall include firms, associations, partnerships and corporations, and
words of either gender shall include the other gender.
•
7.14. Partial Invalidity. If any provision of this Loan Agreement shall be declared
invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining
provisions hereof shall not in any way be affected or impaired.
7.15. Approvals. Where an approval or submission is required under this Loan
Agreement, such approval or submission shall be valid for purposes of this Loan
Document 1105 12
■
City of Seal Beach Redevelopment Agency
Loan Agreement
Agreement only if made in writing. Where this Loan Agreement requires an approval or
consent of Agency, such approval may be given on behalf of Agency by the Program
Administrator who may in his /her sole discretion submit such approval or consent for
consideration by the Agency Board.
7.16. Captions and Headings. Captions and headings in this Loan Agreement
are for convenience of reference only, and are not to be considered in construing the
Agreement.
7.17. Recitals. The Recitals set forth above are incorporated as a substantive part
of this Loan Agreement.
7.18. Entire Agreement. This Loan Agreement constitutes the entire
understanding and Agreement of the parties and supersedes all prior negotiations,
discussions and previous agreements between Agency and Owner concerning all or any
part of the subject matter of this Loan Agreement.
IN WITNESS WHEREOF, the parties have executed this Loan Agreement as of the
day and year written below.
OWNER(S) Date: , 200
By:
Printed Name:
By:
Printed Name:
SEAL BEACH REDEVELOPMENT AGENCY Date: , 200
a public body corporate or politic
By:
Its:
Document 1105 13
Date:
Homeowners Insurance Company
Address
RE:
To Whom It May Concern:
This is to inform you that the homeowner listed below has received a Home
Improvement Grant/Loan with the City of Seal Beach Redevelopment Agency.
Grant Amount: $ Date:
Loan Amount: $
Homeowner:
Address:
City /Zip Code: Seal Beach, CA 90740
Telephone Number: (562)
Homeowner's Insurance Policy Number:
Please update your records, listing the City of Seal Beach Redevelopment Agency,
211 Eighth Street, Seal Beach, CA 90740 -6379 as additionally named insured.
Provide the Agency with evidence of such change within 30 days from date of this
letter. If there is a change in policy, expiration, or cancellation, etc. please notify the
City immediately.
If you are in need of further assistance, please call me at (909) 364 -0575.
Sincerely,
Adam Eliason
CivicStone, Inc.
Property Owner - Name /Signature Property Owner - Name /Signature
C: \My Documents \RDA \Home Imp Program Procedures \Document 1106.doc \L\M09 -20 -02
CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
AGREEMENT FOR REHABILITATION
Date:
Owner:
Site:
Seal Beach, CA 90740
THIS AGREEMENT FOR REHABILITATION together with the GENERAL
CONDITIONS attached hereto and incorporated herein by reference (collectively,
"Agreement ") is made this day of , 200„ ,
by and between
hereinafter called the "Owner", and , hereinafter
called the "Contractor."
RECITALS
A. Owner owns certain property in the City of Seal Beach at the address noted
above (the "Site ").
B. Owner requested bid proposals from two or more contractors for performance
of the "Work" (as defined in Section 1.1 of this Agreement), and received bids and
proposals for the Work from such contractors.
C. After review of such bid proposals, Owner selected Contractor to perform the
work and, by this Agreement, Contractor agrees to commence, construct and complete the
Work in accordance with the terms and conditions set forth herein.
D. Pursuant to the Seal Beach Home Improvement Program (the "Program ")
of the Seal Beach Redevelopment Agency ( "AGENCY "), AGENCY and Owner have
entered into an agreement wherein AGENCY has agreed to pay for the Work with loan or
grant funds. .
E. It is in the best interests of AGENCY to ensure that the Work is performed
and paid for in accordance with this Agreement.
C: \My Documents \RDA \Home Imp Program Procedures \Document 1107.doc \LW\09 -20 -02
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan Program
Agreement for Rehabilitation
September 2002
CONTRACTOR AND OWNER AGREE AS FOLLOWS:
1. The Work. Contractor agrees to complete the "Work" in accordance with each and
every term and condition of the specific items of work set forth in the accepted bid proposal
dated as described in Section 1.1 (the "Bid Proposal "). Every
part of the Work and any item not specifically set forth in the Bid Proposal, but which is
necessary for the proper completion of the Work and which is not specifically excluded
from the Agreement, shall be supplied and completed by Contractor at Contractor's
expense as though it had been specified in the Bid Proposal. Contractor shall provide and
pay for all materials, labor, tools, equipment and other items necessary to complete the
Work in conformity with this Agreement. Unless otherwise specified herein, all materials
shall be new and both workmanship and materials shall be of good quality.
1.1 The "Work" is as specified in the Bid Proposal and any Addendum thereto all
of which are maintained by and available to the parties and are incorporated herein by
reference.
1.2 Contractor may alter or deviate from the above description of the Work
and /or make any changes or additions to the schedule of work set forth in Section 4 herein
only upon prior written authorization by Owner evidenced by a Change Order and _
approved by the AGENCY.
2. Contract Price. Owner shall pay Contractor for the Work in the amount of $_
. The contract price may be increased or decreased only by a Change
Order in accordance with Section 1.2. Payments shall be made according to the following
schedule:
$
$
$
$ Final Payment (See Section 2.2 below)
$ 10% Retention (To be released within 35-45 days of the date
of completion of the Work)
2.1 Progress Payments. If progress payments are made, Sections 2.1.1 and
2.1.2 apply. Section 2.2 applies to all Work.
Document 1107 2
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan Program
Agreement for Rehabilitation
September 2002
2.1.1 Each progress payment may be made only after inspection and approval of
the Work for which payment is requested by Owner and AGENCY.
2.1.2 As a condition precedent of each progress payment, Contractor and each
subcontractor and supplier shall furnish Owner with a partial lien release for that
portion of the Work covered by such progress payment. As a condition precedent
of each subsequent progress payment, Contractor and each subcontractor shall
replace the earlier partial lien release with an unconditional partial lien release, and
deliver a partial lien release for that portion of - the Work covered by the current
progress payment.
2.2 Final Payment. Final payment shall not be made until Contractor has
delivered to Owner a complete release of all liens for itself and all subcontractors and
suppliers arising out of this Agreement. If any lien remains unsatisfied after payments are
made, Contractor shall refund to Owner all money that Owner may be compelled to pay
in discharging such lien, including all costs and reasonable attorneys' fees.
3. Discrepancy in Documents. If a discrepancy exists between Contractor's bid and
proposal on the one hand, and this Agreement on the other, this Agreement for
Rehabilitation shall control.
4. Commencement and Substantial Completion. Contractor agrees to commence
the Work within calendar days after issuance of a Notice to Proceed by the AGENCY
and to complete the work, unconditionally free of liens or rights of liens of contractors and
subcontractors, mechanics' liens, material men or laborers' liens, within calendar days
after the issuance of a Notice to Proceed, subject to extensions expressly approved in
writing by Owner for the period of any excusable delay as set forth in Section 9 of the
General Conditions attached hereto. Time is of the essence in this Agreement. Contractor
confirms that the date for completion of the Work is a reasonable period for performing the
Work. Contractor shall not be paid under the Agreement or otherwise for Work
commenced or completed or for materials or supplies delivered to the Site prior to the date
of issuance by the AGENCY of a Notice to Proceed.
5. City of Seal Beach Redevelopment Agency. Owner and Contractor acknowledge
that AGENCY is making a loan or grant to Owner pursuant to Agency's Program, that the
proceeds of such loan or grant are to be used to pay for the Work, and that AGENCY has
an interest to ensure that the Work is performed in accordance with this Agreement and
for the Contract Price. Accordingly, Owner and Contractor agree that AGENCY is a third
party beneficiary of this Agreement, and has the right to enforce the terms hereof.
Document 1107 3
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan Program
Agreement for Rehabilitation
September 2002
5.1 Indemnification. Pursuant to Section 2.3 of the General Conditions
attached hereto and the Program documents entered into by and between Owner and
AGENCY, Contractor and Owner, respectively, each agrees to indemnify and hold
harmless the AGENCY and the City of Seal Beach from and against any Toss, cost,
damage or liability, including, without limitation, attorneys' fees, which results from the
planning or execution of the Work.
6. Warranty. Pursuant to Section 11 of the General Conditions, Contractor warrants
the Work. If during the warranty Owner has complaints regarding the Work, Owner
shall notify Contractor to correct the items. DO NOT CALL THE SEAL BEACH
REDEVELOPMENT AGENCY.
7. Governing Law. This Agreement is made pursuant to and shall be govemed by
and construed in accordance with the laws of the State of California. The article headings
shall not enter into the interpretation hereof.
8. Parties to Contract. Owner and Contractor agree that they are the only parties
to this Agreement and are solely responsible for its performance. The AGENCY is not a
party to this Agreement and as set forth more fully in Section 5.2 of the General
Conditions, assumes no liability hereunder. As lender /grantor and Program administrator,
the AGENCY is a designated third party beneficiary and has the rights set forth in Section
5 hereof.
9. Entire Agreement. This Agreement for Rehabilitation, together with the Exhibits
(if any), the General Conditions, Addendum (if any), any Amendments to any of the
forgoing, and any Change Orders, sets forth the entire agreement between the parties
concerning the subject matter hereof and any amendment, waiver or discharge shall be
made only in writing signed by both parties and approved by AGENCY.
Document 1107 4
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan Program
Agreement for Rehabilitation
September 2002
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year written below.
(Contractor Signature) Date
Contractor's Address City /State Zip Code
Contractor's License No. Federal ID Number Social Security Number
Owner Date
Owner Date
Owner Date
Owner's Address City /State Zip Code
Acknowledged and approved as to form solely for purposes of establishing and
funding an escrow account for the Work and /or otherwise administering the Program
documents entered into by and between Owner and the AGENCY.
City of Seal Beach Redevelopment Agency .
By:
Its: Date
Document 1107 5
CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
GENERAL CONDITIONS TO THE
AGREEMENT FOR REHABILITATION
1. Definitions.
Wherever used in the Agreement or these General Conditions, the following meanings
shall be given to capitalized terms.
1.1 The term "Agreement" means and• shall include the following:
1.1.1 The Agreement for Rehabilitation;
1.1.2 Exhibits (if any);
1.1.3 these General Conditions;
1.1.4 any Addendum to the General Conditions;
1.1.5 any Amendments. to any of the above; and
1.1.6 Change Orders.
1.2 The term "Amendment" means the changes, revisions, or clarifications of the
Agreement which have been signed by Owner and Contractor, and approved by the City of Seal
Beach Redevelopment Agency (THE AGENCY).
1.3 The term "Bid Proposal" means the bid proposal dated , submitted
by the Contractor, and accepted by the Owner.
1.4 The term "Change Order" means a revision of the Work signed by Owner and
Contractor, and approved by THE AGENCY, after the start of the Work.
1.5 The term "Contractor" means the person, firm or corporation entering into the
Agreement with Owner to perform the Work.
1.6 The term "Day" means calendar day.
1.7 The term "THE AGENCY" shall mean the Seal Beach Redevelopment Agency,
a public body, corporate and politic.
C: \My Documents \RDA \Home Imp Program Procedures \Document 1108 doc \LW\09 -20 -02
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
1.8 The term "Owner" means the legal owner or owners of the Site where the Work
is to be performed.
1.9 The term "Site" means the location of the improvements where the Work is to be
performed.
1.10 The term "Work" means the construction and services required by the
Agreement, whether completed or partially completed, and includes all other labor, materials,
equipment and services provided or to be provided by Contractor to fulfill Contractor's
obligations.
1.11 The term "Working Day" means calendar days excluding weekends and federal
and /or state holidays.
2. Contractor. -
2.1 Eligibility. Contractor represents that: (a) Contractor's California state
contractor's license number listed on Contractor's Bid Proposal and the Agreement is current;
(b) Contractor has a current City of Seal Beach business license; (c) Contractor carries
insurance in accordance with the requirements of the Agreement and (d) Contractor possesses
the skill, experience and expertise necessary to complete the Work in accordance with the
Agreement. Contractor further represents that it is not listed on the Disbarred and Suspended
Contractor's List of the United States Department of Housing and Urban Development, the City
of Seal Beach, THE AGENCY or any other public Agency, and Contractor agrees not to hire any
subcontractor or supplier that is so listed.
2.2 Best Skill. Contractor shall supervise and direct the Work using its best efforts,
skill and attention to ensure the workmanship and materials are of good quality and that the
Work is completed in accordance with the Agreement. Contractor shall be solely responsible
for all construction means, methods, techniques, sequences and procedures; safety on the job;
and coordinating all portions of the Work to be performed by Contractor's laborers, employees
and subcontractors, if any.
2.3 Agents. Contractor shall be responsible to Owner for the acts and omissions of
its employees, subcontractors and their agents and employees, and of all other persons
performing any of the Work under a contract with or the control of Contractor.
2.4 Indemnification. To the fullest extent permitted by law, Contractor shall
indemnify, hold harmless, protect, and defend Owner, THE AGENCY, the City of Seal Beach,
and all other persons or organizations engaged or cooperating in the performance of the Work,
and each of their officers, directors, shareholders, partners, representatives, employees and
agents (all of which persons and organizations are referred to herein collectively or individually
as "Indemnities ") from and against any and all claims, demands, causes of action, losses,
damages, liabilities, costs, expenses, liens, judgments or obligations whatsoever, including,
Document 1108 2
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
without limitation, attorneys', consultants' and experts' costs and fees, resulting from or in any
way connected, in whole or in part, with the performance of or failure to perform any obligations
under the Agreement, or the acts, errors or omissions of Contractor, any subcontractor, or the
officers, partners, employees, consultants or agents of any of them or by anyone for whose acts
they may be liable. This indemnity obligation shall apply regardless of whether or not the event -
giving rise to the indemnity obligation is caused in part by the negligence of an Indemnities, but
shall not apply when the Toss is caused solely by the negligence or willful misconduct of an
Indemnities. Such obligation shall not be construed to negate, abridge, or otherwise reduce any
other right or obligation of indemnity or contribution, which would otherwise exist as to any party
or person pursuant to the Agreement.
3. Subcontractors and Employees.
3.1 Coordination. Contractor shall cause appropriate provisions to be inserted in all
subcontracts relative to the Work to require compliance by each subcontractor with applicable
provisions of the Agreement.
3.2 No Contractual Relationship. Nothing contained in the Agreement shall create
any contractual relationship between any subcontractor and Owner.
4. Changes in the Work.
4.1 Signed by Parties. No Change Orders are permitted and /or effective unless
signed by Owner and approved by THE AGENCY.
4.2 Change Order. Except for the purpose of affording protection against any
emergency endangering life or property, Contractor shall make no change in the Work, nor
provide any extra or additional labor, service, or material beyond that actually required for the
execution of the Work, unless pursuant to a written order from Owner, which order has been
approved by THE AGENCY. No claim for an adjustment of the contract price shall be valid
unless so ordered.
4.3 Contents. Each Change Order shall include a detailed description of the change
in the Work, the agreed -to change in price and /or time for completion thereof, and a statement
that all Work shall be performed in accordance with the Agreement as modified by the Change
Order.
4.4 Work after Termination of Agreement. Owner and Contractor shall not enter into
any other contract or otherwise undertake any work on the Site not included in the Work or a
Change Order executed pursuant hereto until a Notice of Completion has been recorded.
Additional Work not included in the Work or a Change Order may be negotiated separately
between Owner and Contractor or any other contractor, only after recordation of a Notice of
Completion.
Document 1108 3
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
5. Inspection of the Work.
5.1 Inspection. Owner and Contractor shall permit THE AGENCY to examine and
inspect the Work during normal business hours and at any stage of construction. -
5.2 THE AGENCY's Review. The exercise by THE AGENCY of its right to review the
progress of the Work is solely for the purpose of monitoring its conformity with the Agreement
and the Program requirements pursuant to which THE AGENCY's financial assistance has been
provided. Specifically, THE AGENCY may (a) determine whether the work by Contractor is in
compliance with the Agreement; (b) stop the work, if reasonably necessary, and (c) reject all
work and materials, which do not conform to the requirements of this Agreement. THE
AGENCY does not have, and hereby expressly disclaims, the duty for any review of the Work
for the purpose of determining compliance with building codes, safety features or standards or
for the purpose of determining or approving engineering or structural design, sufficiency or
integrity. THE AGENCY's approval or authorization of a direction or request to change the
plans, specifications or drawings submitted by Owner and /or Contractor is not and shall not be
a review or approval of the quality, adequacy or suitability of such plans, specifications or
drawings, nor of the labor, materials, services or equipment to be furnished or supplied in
connection therewith. THE AGENCY does not have and expressly disclaims any right of
supervision or control over Owner, Contractor, any subcontractor, trades, or any other persons
and professionals responsible for the formulation or execution of the Work. THE AGENCY's
approval of the Agreement or any subsequent amendment of the Agreement is not an
endorsement or guarantee by THE AGENCY of Contractor or the Work.
5.3 Right of Access. During normal construction hours, representatives of THE
AGENCY shall have the reasonable right of access to the Site without charges or fees for the
purpose of inspecting the Work. THE AGENCY hereby indemnifies and holds Owner and
Contractor harmless from and against any Toss, cost, damage or liability, including, without
limitation, reasonable attorneys' fees, which result from the exercise by THE AGENCY, or any
party acting under THE AGENCY's authority, of the rights granted by this Section.
6. Payment.
6.1 Not Acceptance. No progress payment, nor any partial or entire use or
occupancy of the Site by Owner, shall constitute an acceptance of the whole or any part of the
Work.
6.2 Joint Payments. Owner and /or THE AGENCY shall have the right, in their sole
discretion, to make payments jointly to the order of Contractor and any subcontractor unless
Contractor (a) is not in default and (b) requests Owner not to do so as a result of Contractor's
good faith dispute with such subcontractor.
6.3 Withholding Payment. Owner or THE AGENCY may withhold payment if in the
opinion of Owner or THE AGENCY the Work has not been performed in accordance with the
Document 1108 4
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
Agreement. In such case, Owner shall notify Contractor of such deficiency. Owner or THE
AGENCY may also withhold payment to such extent as they deem necessary to protect Owner
from loss because of:
6.3.1 defective Work not remedied;
6.3.2 third party claims filed or reasonable evidence indicating probable filing
of such claims;
6.3.3 failure of Contractor to make payments properly to subcontractors or for
labor, materials or equipment;
6.3.4 reasonable doubt that the Work can be completed for the unpaid balance
of the contract price;
6.3.5 reasonable evidence that the Work will not be completed within the time
agreed upon, and that the unpaid balance would not be adequate to cover actual and
liquidated damages, if any, for the anticipated delay;
6.3.6 insufficient documentation, erroneous estimates of the value of the Work
performed or other false or incomplete statements by Contractor; or
6.3.7 persistent failure of Contractor to perform any term or condition of the
Agreement.
6.4 Withholding by Law. The provisions of this Section shall not lessen or diminish,
but shall be in addition to, the right or duty of Owner to withhold any payments under applicable
provisions of law respecting the withholding of sums due to contractors. .
6.5 Release of Payment. When the above grounds are removed, payment shall be
made for amounts withheld because of them.
6.6 Limitation to Withholding. Owner shall not withhold payment from Contractor for
any amounts owing and not subject to dispute or offset.
6.7 Retentions. THE AGENCY reserves the right to retain ten - percent (10 %) of lump
sum or partial payments.. Retention payments due Contractor will be paid within 35 to 45 Days
after the later of (a) THE AGENCY and Owner complete necessary inspections, (b) a Notice of
Completion has been recorded, (c) Owner has received satisfactory releases of liens or claims
for liens by Contractor, subcontractors, laborers, and material suppliers for completed Work or
installed materials, and (d) all disputes have been resolved.
7. Stop Order. If Contractor fails to correct Work which is not in accordance with the
requirements of the Agreement, or persistently fails to carry out the Work in accordance with the
Document 1108 5
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
Agreement, Owner or THE AGENCY, by written order, may order Contractor to stop the Work,
or any portion thereof, until the cause for such order has been eliminated; however, the right of
Owner and THE AGENCY to stop the Work shall not give rise to a duty on the part of Owner or
THE AGENCY to exercise this right for the benefit of Contractor or any other person or entity.
8. ' Termination of Agreement.
8.1 Diligent Prosecution. If Contractor refuses or fails to prosecute the Work with
such diligence as will ensure its completion within the specified time or otherwise in accordance
with the provisions of the Agreement, or if the workmanship is of substandard quality, then
Owner, by written notice to Contractor, may declare Contractor in default. If Contractor fails to
remedy such default within fifteen (15) days of the date of such notice, Owner shall have the
right to terminate the Agreement and select one or more substitute contractors acceptable to
the AGENCY to finish the Work in accordance with Section 8.3.
8.2 Work Stoppage. If Contractor ceases to perform actual Work for a period of
twenty (20) Days or more without an excusable delay pursuant to Section 9, then Owner, by
written notice to Contractor, may terminate the Agreement and Contractor's right to proceed with
the Work.
8.3 Damages. Upon termination, pursuant to 8.1 or 8.2, Owner may engage a
substitute qualified licensed contractor to take over the Work and prosecute the same to ensure _
completion, and Contractor and its sureties (if any) shall be liable to Owner for any cost above
the Contract Price, incurred by Owner to complete the Work. Contractor shall pay such amount
(if any) to Owner within ten (10) days written demand therefore. Furthermore, payment for a
completed portion of the Work performed by the terminated Contractor shall be withheld until
the Work is one - hundred percent (100 %) completed and shall not be paid until all other costs
and claims pertaining to the Work have been paid. If any amount is left over from the Contract
Price after all other costs and claims have been paid, that amount shall become payment in full
to the terminated Contractor for all its portion of the Work performed, and shall be paid to it
within thirty (30) days after satisfactory completion of the Work and payment of all claims. In
no event shall said terminated Contractor receive any amount more than is equitable for Work
performed as determined by THE AGENCY or any arbitrator, mediator or court of law exercising
jurisdiction over the matter, or any amount which will cause Owner additional cost, above the
total Contract Price, as determined by THE AGENCY or any arbitrator, mediator or court of law
exercising jurisdiction over the matter.
8.4 Possession of Equipment. If Contractor's right to proceed is so terminated,
Owner may take possession of and utilize in completing the Work such materials as may be on
the Site and necessary for the completion of the Work.
Document 1108 6
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
9. Excusable Delays.
Contractor shall not be charged with liquidated damages for any delays in the completion
of the Work, and the date of completion shall be extended for delays, due to:
9.1 Any acts of Government, including controls or restrictions upon or requisitioning
of materials, equipment, tools or labor by reason of war, National Defense, or any other national
emergency;
9.2 Any acts of Owner;
9.3 Causes not reasonably foreseeable by parties to the Agreement at the time of
execution of the Agreement which are beyond the control and without the fault or negligence
of Contractor, including but not restricted to, acts of God or of the public enemy; acts of another
contractor in the performance of_sorne other agreement with Owner; fires; floods; epidemics;
quarantine restrictions; strikes; freight embargoes; and weather of unusual severity such as
hurricanes, tornadoes, cyclones and other extreme weather conditions; or
9.4 Any delay of an authorized subcontractor occasioned by any of the causes
specified in Sections 9.1, 9.2, and 9.3 above, provided that Contractor promptly (in any event
within ten (10) Days) notifies Owner and THE AGENCY in writing of the cause of the delay.
9.5 If the facts show delay to be properly excusable under the terms of the
Agreement, Owner and THE AGENCY shall extend the time for substantial completion of the
Work by a period commensurate with the period of excusable delay.
10. Liquidated Damages for Delay.
Because actual damages for any delay in completion of the Work which Contractor is
required to perform under the Agreement are impracticable and extremely difficult to fix, Owner
and Contractor agree that Contractor shall be liable for and shall pay to Owner the sum of fifty
•
dollars ($50.00) as fixed, agreed and liquidated damages for each Working Day of delay from
the date stipulated for completion in Section 4 of the Agreement for Rehabilitation, or as
modified in accordance with Section 4, "Changes in the Work," of these General Conditions until
such Work is satisfactorily completed and accepted. Owner is solely responsible for levying and
collecting such payment for damages.
Owner and Contractor further agree that Fifty Dollars ($50.00) per Working
Day is a fair and reasonable estimate of such damages under the
circumstances existing as of the date hereof and that such sum is not
construed in any sense as a penalty. The parties further agree that said
liquidated damages for delay shall be owners' sole and exclusive remedy
for such delay.
Document 1108 7
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
Contractor's Initials Owner's Initials
11. General Guarantee and Warranty.
11.1 Warranty. Contractor warrants to Owner that materials and equipment furnished
under the Agreement will be of good quality and new unless otherwise required or permitted by
the Agreement, and that the Work will be free from defects. Work not properly approved and
authorized may be considered defective. If required by Owner, Contractor shall furnish
satisfactory evidence as to the kind and quality of materials and equipment used in the Work.
Prior to the release of the final payment, Contractor shall secure, assign to and deliver to Owner
written warranties and guaranties, if any, from its subcontractors and suppliers bearing the date
of substantial completion or such other date as may be agreed to by Owner and stating the
applicable period of warranty. Contractor is responsible for the warranty of the Work as set forth
in this Section, whether performed by it or by its subcontractors.
11.2 Title. Contractor warrants the title to the Work will pass to Owner no later than
the time of payment. Contractor further warrants that upon final payment all Work shall be free
and clear of liens, claims, security interests or encumbrances in favor of Contractor, its
employees, subcontractors, material suppliers or other persons or entities making a claim by
reason of having provided labor, materials and equipment relating to the Work.
11.3 Guarantee. The Work will be guaranteed for a period of one (1) year from date
of final acceptance of all Work required by the Agreement. If during this twelve (12) month
period Owner has any complaints concerning the Work, Owner shall contact Contractor directly
to correct the items. DO NOT CALL THE CITY OF SEAL BEACH REDEVELOPMENT
AGENCY.
11.4 Prompt Remedy. Contractor shall promptly remedy any defects in the Work and
shall pay for any damage to other Work resulting there from which may appear within a period
of one (1) year from the date of final acceptance of the Work unless a longer period is specified.
Owner will provide notice of observed defects with reasonable promptness.
11.5 No Acceptance. Neither the final payment nor any provision in the Agreement,
nor partial or entire use or occupancy of the Site by Owner or resident shall constitute an
acceptance of Work not performed in accordance with the Agreement, or relieve Contractor of
liability with respect to any express warranties or responsibility for failure to comply with the
terms of the Agreement.
12. Conciliation / Arbitration.
12.1 Conciliation. If any dispute, controversy or claim arises out of or relates to the
Agreement, and if conciliation would be helpful to resolution of such dispute, the parties agree
first to try to settle the dispute by conciliation before resorting to arbitration. The parties agree
Document 1108 8
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
that if such a dispute arises, they will notify THE AGENCY of such dispute, and meet with THE
AGENCY in a good faith effort to settle the dispute by conciliation. Thereafter, any dispute,
controversy or claim not resolved by conciliation shall be submitted to arbitration as provided
in Section 12.2.
12.2 Arbitration. All claims or disputes between Owner and Contractor arising out of
or related to the Work that either were not referred to conciliation or cannot be settled by
conciliation shall be decided by arbitration in accordance with the construction industry
arbitration rules of the American Arbitration Association then obtaining, unless the parties
mutually agree otherwise. Notice of the demand for arbitration shall be filed in writing with the
other party to the Agreement, and shall be made within thirty (30) Days after either the
recommendation by THE AGENCY that the dispute not be conciliated or termination of the
parties' attempt to conciliate the dispute. The matter shall be referred to mediation for
arbitration. The award rendered by the arbitrator shall be final, and judgment may be entered
upon it in accordance with applicable law in any court having jurisdiction thereof. If the
arbitrator's award is in a sum, which is Tess than that which was offered in settlement by
Contractor, the arbitrator may award reasonable costs and attomey's fees in favor of Contractor.
If the award of the arbitrator is in a sum greater than that which was offered in settlement by
Owner, the arbitrator may award reasonable costs and attorney's fees in favor of Owner. In all
other cases, the Owner and the Contractor shall share costs equally. In the event any party
refuses to arbitrate or to cooperate with the arbitrator by failing to prepare for an arbitration
hearing within a reasonable time not less than thirty (30) days as determined with the discretion
of the arbitrator following filing of a notice of demand to arbitrate by the other party pursuant to
this Section 12.2, then such party shall be deemed in default of the Agreement and the non -
defaulting party may pursue all available remedies at law and /or equity. .
13. Insurance.
13.1 Comprehensive General Liability. Contractor shall at all times during the term of
the Agreement maintain Comprehensive General Liability insurance written on an occurrence
(not claims -made) basis covering all operations on behalf of Owner, including operations under
subcontracts, and providing insurance for personal injury liability, bodily injury liability, sickness,
disease or death of any persons and property damage liability, including loss of use, for a
Combined Single Limit of $1,000,000 for general liability, and including coverage for:
(a) Premises and operations;
(b) Products and completed operations; .
(c) Contractual Liability insuring the obligations assumed by Contractor.in the
Agreement;
(d) Broad form property damage (including completed operations);
(e) Explosion, collapse and underground hazards;
(f) Personal injury liability; and
(g) Independent contractors.
Document 1108 9
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
Except with respect to bodily injury and property damage included within the products and
completed operations hazards, the aggregate limit, where applicable, shall apply separately to
Contractor's work under the Agreement.
13.2 Worker's Compensation. Contractor and its subcontractors shall carry or require
that there be carried Workers' Compensation for all its employees and those of its
subcontractors in form and amount as required by California's Worker's Compensation Laws.
13.3 Evidence of Insurance. The evidence of insurance shall be Certificates of
Insurance, with endorsements naming Owner, the City of Seal Beach, and THE AGENCY as
additional insureds on said insurance polices. Such certificates shall provide that said policy
or policies shall not be canceled or non - renewed until after a minimum of ten (10) Days prior
written notice to THE AGENCY.
13.4 Verification of Insurance. If THE AGENCY wishes to verify the existence and
effectiveness of the foregoing policies, Contractor agrees to furnish THE AGENCY with the
mailing address, or addresses, of such insurance company or companies as is appropriate and,
further, consents to allow THE AGENCY and /or Owner the right to verify such policies.
14. Permits.
Contractor shall obtain and pay for all permits and licenses necessary for the execution
of the Work.
15. Codes.
Contractor shall give all notices required by, and perform all the Work in conformance
with, applicable laws, ordinances and codes of the local government, whether or not covered
by the specifications and drawings for the Work. Contractor shall not be held responsible for
pre- existing violations of any law including, but not restricted to, zoning or building codes or
regulations. Before beginning the Work, Contractor shall examine the description of the Work
for compliance with applicable laws, ordinances and codes for the new or replaced Work and
shall immediately report any discrepancy to THE AGENCY and Owner. Where the
requirements of the Work fail to comply with such applicable laws, ordinances or codes for the
new or replaced Work, Owner and THE AGENCY shall adjust the Agreement by Change Order
to conform to such laws, ordinances, or codes and make appropriate adjustments to the
contract price, unless waivers in writing covering the differences have been granted by the
proper authorities.
16. Safety of Persons and Property.
16.1 Safety Precautions. Contractor shall take reasonable precautions for safety of,
and shall provide reasonable protection to prevent damage, injury or loss to:
Document 1108 10
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
(a) employees on the Work and other persons who may be affected thereby;
(b) the Work and materials and equipment to be incorporated therein,
whether in storage on or off the Site, under care, custody or control of the
Contractor or the Contractor's subcontractors; and
(c) other property at the Site or adjacent thereto, such as trees, shrubs,
lawns, walks, pavements, roadways, structures and utilities not designated for
removal, relocation or replacement in the course of construction. Contractor shall
cooperate with the Owner in this respect, and shall take all reasonable and
necessary steps to minimize any such dirt, noise, dust, fumes, traffic or other
problems or damage, to surrounding property or buildings attributable to any
action by Contractor.
16.2 Notices. Contractor shall give notices and comply with applicable laws,
ordinances, rules, regulations and lawful orders of public authorities bearing on safety of
persons or property or their protection from damage, injury or loss.
16.3 Barriers and Signs. The Contractor shall erect and maintain as required by
existing conditions and performance of the Agreement, reasonable safeguards for safety and
protection, including posting danger signs and other warnings against hazards, promulgating
safety regulations and notifying owners and users of adjacent sites and utilities.
16.4 Hazardous Materials or Devices. When use or storage of explosives or other
dangerous materials or hazardous substances or equipment or unusual methods are necessary
for execution of the Work, the Contractor shall exercise utmost care and carry on such activities
under supervision of properly qualified personnel.
16.5 Remedy of Damage or Loss. Contractor shall promptly remedy damage and loss
to the Site or the improvements thereon caused in whole or in part by the Contractor, a
subcontractor, or anyone directly or indirectly employed by any of them, or by anyone for whose
acts they may be liable and for which the Contractor is responsible under this Agreement except
damage or loss attributable to acts or omissions of the Owner, and not attributable to the fault
or negligence of the Contractor.
17. Debris.
Contractor shall keep the Site clean and orderly during the course of the Work and shall
remove all debris at the completion of the Work. Materials and equipment that have been
removed and replaced as part of the Work shall be removed from the Site promptly and before
final payment unless Owner expressly instructs Contractor to the contrary.
Document 1108 11
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
18. Assignment.
Contractor shall not assign or transfer any of his rights, duties, benefits, obligations,
liabilities or responsibilities under the Agreement without the prior written consent of Owner and
THE AGENCY. Any request for assignment shall be addressed to Owner and THE AGENCY.
19. Utility Services.
19.1 Utilities Available. Any existing home utility service will be available to Contractor
without charge, including: electric power; water; and telephone (if available and for local calls
only). When Contractor must disconnect or otherwise interrupt such services, including
plumbing fixtures, to effect repairs or replacement, the use or availability of such services shall
not be deprived to Owner or occupant, unless Owner or occupant has been relocated, except
during normal working hours (8:00 a.m. to 5:00 p.m. Monday through Friday, except holidays).
19.2 Disruptions. Where disruptions or disconnections will be other than during
normal working hours, Contractor shall obtain approval of Owner and /or occupant, twenty -four
(24) hours prior to such interruption.
20. Occupancy.
20.1 Site May Be Occupied. The Site may be occupied during the course of the Work
unless an addendum stating otherwise in included with these General Conditions. Owner or its
tenant will cooperate with Contractor in a reasonable manner to minimize interference with the
Work, including abandonment of limited areas as may be essential to the conduct of the Work.
21. Addendum. The following Addendum are attached hereto and made a part hereof:
Document 1108 12
City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan
General Conditions to the Agreement for Rehabilitation
September 2002
IN WITNESS WHEREOF, the parties have executed these General Conditions to the
Agreement for Rehabilitation as of the day and year written below.
Owner, Date:
Owner, Date:
_Owner, Date:
Contractor, Date:
Document 1108 13
7. A work of improvement on the property hereinafter described was completed on
(DATE)
8. The name of the original contractor, if any, for the work of improvement was
(NAME OF CONTRACTOR,
OR IF NO CONTRACTOR FOR THE WORK OF IMPROVEMENT AS A WHOLE, INSERT THE
WORD "none "). [IF NOTICE COVERS COMPLETION OF CONTRACT FOR ONLY PART OF THE
WORK OF IMPROVEMENT, ADD: The kind of work done or material furnished was
(GIVE GENERAL STATEMENT,
E.G., furnishing of concrete for sidewalks].
9. The property on which the work of improvement was completed is in the City of SEAL BEACH ,
County of ORANGE , State of California, and is described as follows:
10. The street address of the said property is:
(NUMBER AND STREET, OR, IF THERE IS NO OFFICIAL STREET ADDRESS, INSERT THE
WORD "none ".)
Dated: , 20
VERIFICATION
I, the undersigned, say:
I am the person who signed the foregoing notice. I have read the above notice and know its contents, and
the facts stated therein are true of my own knowledge. I declare under penalty of perjury that the foregoing
is true and correct.
(SIGNED) (SIGNED)
(PRINT NAME) (PRINT NAME)
•
Executed at SEAL BEACH , California, this day of , 20
Document 1109 2
CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
CONTRACTOR SELECTION
I/We , who reside(s) at ,
Seal Beach, CA, do hereby select the following contractor at the submitted bid price.
No deviation from these figures will be allowed. Any alteration or addition to contracts are
the sole financial responsibility of the owner, unless pre- approved in writing.
CONTRACTOR: Business Name (print)
Address (print)
City, State, Zip
Telephone Number
Bid Price $
Homeowner: Date:
Homeowner: Date:
PRE - CONSTRUCTION CONFERENCE
This is to certify that the property owner(s), and the contractor have met at the job site and
have inspected the work items to be performed as specified and agreed upon in the Scope
of Repairs and /or Contract.
Homeowner: Date:
Homeowner: Date:
Contractor: Date:
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CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
NOTICE TO PROCEED
Date:
Name of Construction Company:
Contractor Name:
Address:
City, State, Zip Code:
Phone Number:
Fax Number:
Homeowner Name:
Address:
City, State, Zip Code:
Home Phone Number:
Work Number:
"Name of Construction Company" is the successful bidder for the property located at -
, Seal Beach, California. Work should begin no later than
(start date ") and shall be completed within working
days from the start date.
Again, you are reminded to obtain permits and bonds, if necessary, before
commencing work on this property. Please provide evidence of such to CivicStone,
Inc.
Your cooperation in this matter is appreciated.
NOTICE TO CONTRACTORS
Final Billing Must Be Accompanied By a Labor and Material Lien Release as well as
a Copy of all applicable Signed -Off Permit(s)
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CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
LIEN RELEASE
Date:
Name of Construction Company:
Contractor Name:
Address:
City, State, Zip Code:
Phone Number:
Fax Number:
•
Homeowner Name:
Address: . -
City, State, Zip Code:
Home Phone Number:
Work Number:
1.) Contractors are required to submit the list of all participating subcontractors and
suppliers, to the City of Seal Beach Redevelopment Agency prior to the start of the
project in question.
2.) Payments and lien release requirements are as follows:
• Partial Payments: To receive a partial payment, please submit a partial payment
invoice to CivicStone, Inc., as well as a conditional lien release for the partial
payment amount.
• Change Order Payments: To receive a change order payment, please submit a
change order payment invoice to CivicStone, Inc., as well as a conditional lien
release for the change order payment amount.
• Final Payment / 10% Retention Payment: Please submit to CivicStone, Inc. a
final payment invoice, less 10% as well as a 10% retention payment invoice and
unconditional lien release for the final payment amount. Once all documents are
received, the final payment less 10% will be processed. CivicStone, Inc. and the -
Homeowner will sign -off approval for the final 10% retention payment if the job
has been completed to their satisfaction.
Contractors must submit a final sign -off permit job card or a copy of a final sign -
off permit card from the City of Seal Beach Building Department to CivicStone,
Inc. before final payment will be processed.
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City of Seal Beach Redevelopment Agency
Home Improvement Grant/Loan - Lien Release
September 2002
PROJECT IN QUESTION / PROJECT SITE:
Property Owner
Property Address
Seal Beach, CA. 90740
NOTE:
• No contractor will receive their first partial payment until they have submitted the
list of all participating subcontractors and suppliers for the project in question.
• Upon the final payment phase, the City of Seal Beach Redevelopment Agency
requires all unconditional lien releases for all of the participating subcontractors
and suppliers for the project in question. Furthermore, contractors must submit
all certificates, guarantees and warranties relating to the project in question.
•
•
Document 1402 2
CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
PAYMENT AUTHORIZATION
TO: CITY OF SEAL BEACH FINANCE DEPARTMENT
FAX: ( )
MAKE CHECK PAYABLE TO: Total Scope of Repairs: $
SOURCE
Grant Amount: $
Loan Amount: $
Paid to Date: $
IN THE AMOUNT OF $ Current Payment Request: $
Balance Remaining: $
(SEND CERTIFIED MAIL TO PAYEE)
OWNER'S RELEASE AND REQUEST
I certify the work items identified herein have been completed to my satisfaction
and I do hereby authorize payment:
Date Property Owners Signature
CITY REQUEST FOR DISBURSEMENT
I certify that an inspection has been made of the herein identified rehabilitation
work items at the specified address. The work has been completed in a
satisfactory manner.
Date Home Improvement Counselor
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J
CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
QUESTIONNAIRE
CONTRACTOR'S NAME:
1. Describe the quality of work by the
contractor? Comments:
❑Excellent ❑Good ❑Fair Poor
Comments:
8. What change or improvements would you
suggest?
2. Was the contractor cooperative? Comments:
Yes ❑ No ❑
Comments:
9. How did you hear about the program?
3. Was the work completed in a timely ❑Newspaper ❑Flyer
manner and to your satisfaction? Friend ❑Cable TV
Yes ❑ No ❑ ❑Other
Comments: Comments:
4. Would you recommend this contractor?
Yes ❑ No ❑ 10. Would you recommend this program to
Comments: others?
Yes ❑ No ❑
5. What is your opinion of the City of Seal 11. Would you allow the City of Seal Beach
Beach Home Improvement Counselor? Redevelopment Agency to use your name for
reference for other potential applicants?
❑Excellent ❑Good ❑Fair Poor Yes ❑ No ❑
Comments:
12. Optional:
Name:
6. Was he /she cooperative and attentive Address:
to your project?
Yes ❑ No ❑ Zip Code:
Comments: Phone:
PLEASE RETURN THE QUESTIONNAIRE
7. What is your overall opinion of the TO:
Home Improvement Program?
CI Excellent ❑Good Fair ❑Poor CivicStone, Inc.
3233 Grand Avenue, N -76
Chino Hills, CA 91709
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CITY OF SEAL BEACH
HOME IMPROVEMENT GRANT /LOAN
LOAN BALANCE STATEMENT
HOMEOWNER NAME:
ADDRESS:
APPROVED FUNDS
Date Loan Approved:
Grant Amount $
Loan Amount $
TOTAL APPROVED FUNDS: $
NON CONSTRUCTION COSTS
Title Company (ALTA Report) $
Notice of Completion (Recording Fee $ ? ?? each) $
Termite $
Appraisal $
Lead Based Paint Inspection $
SUB - TOTAL: $
CONSTRUCTION COSTS
PAY SCHEDULE DATE PAID AMOUNT
1st Payment $
2nd Payment $
3rd Payment $
10% Retention $
Change Order # 1 $
Change Order # 2 $
Change Order # 3 $
SUB - TOTAL: $
FINAL LOAN BALANCE: $
Completion Date: Reviewed By:
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Approval of Home Improvement Program Procedures
Redevelopment Agency Staff Report
September 23, 2002
ATTACHMENT 2
"HOME IMPROVEMENT PROGRAM
GUIDELINES ", REDEVELOPMENT
AGENCY OF THE CITY OF SEAL BEACH,
APPROVED MAY 28, 2002
6
2002 Home Improvement Program Procedures.RDA Staff Report
HOME IMPROVEMENT
PROGRAM GUIDELINES
REDEVELOPMENT AGENCY
OF THE CITY OF SEAL BEACH
MAY 28, 2002
C: \My DocumentslRDA\2002 Home Improvement Program Title Page.doc \LW105 -28 -02
1
CITY OF SEAL BEACH
HOME IMPROVEMENT PROGRAM GUIDELINES
Program Authorization and Intent:
This Home Improvement Program was approved by the Redevelopment Agency
of the City of Seal Beach on April 22, 2002. These programs are proposed to
comply with the provisions of the State of California regarding the use of
Redevelopment Agency "Housing Set - Aside" funds. The programs have been
designed to assist identified groups of low- and moderate - income persons and
families that reside or are anticipated to reside within the City of Seal Beach over
the time period of 2000 -2005. These programs do not propose the use of funds
for new construction of living units within the City, with the exception of the
replacement program for living units within the Seal Beach Trailer Park. All of the
other programs are proposed to assist current residents, both owners and
renters, to the greatest extent possible, who would qualify under the various
program guidelines established within the Seal Beach Home Improvement
Program Guidelines.
The Redevelopment Agency of the City of Seal Beach has approved the
following programs for implementation by the Redevelopment Agency staff and
appropriate consultants (Program Guidelines are summarized on Table 2):
A. Home Improvement Programs:
1. Owner - Occupied Home Improvement Programs:
(a) Home Improvement Loan Program:
Eligible Properties: This program is available to owner - occupants
of single family homes, condominiums and mobile homes (trailers).
Loan Amount and Terms: Maximum deferred loan amount of
$50,000.00. If property is sold to qualified buyer, that buyer will
assume repayment terms. If property is sold to a non - qualified
buyer within first 10 years, full principal amount plus 2% interest
due upon sale. If property is sold to a non - qualified buyer in years
10 -20, 1 /10th of principal and interest forgiven for each year after
10th year. Upon sale of property the pro -rated amount of principal
and interest is due. Principal and interest completely forgiven on
20 -year loan anniversary.
C: \My Documents \RDA\2002 Home Improvement Program Guidelines.doc \LW\05- 28 -02•
Home Improvement Program Guidelines
Redevelopment Agency of the City of Seal Beach
May 28, 2002
Eligible Improvements: Any improvements to the home. This
program is only available for non - substantial levels of rehabilitation
(less than 25% of the after -rehab value). Substantial rehabilitation
requires a different set of loan terms and criteria.
Available Funding: $ 900,000.00
Note: $500,000 of funding for this program will not be
available until the MPROP Loan is funded by the
State of California and the Agency bridge -loan is
reimbursed.
(b) Home Improvement Grant Program:
Eligible Properties: This program is available to owner - occupants
of single family homes, condominiums and mobile homes (trailers).
Loan Amount and Terms: Maximum grant amount of $10,000.00.
Grant forgiven after 3 years. Resale restriction during first three
years: if property is sold to a non - qualified purchaser, the grant
amount is paid to the Agency out of the sale proceeds.
Eligible Improvements: Any improvements to the home. This
program is only available for non - substantial levels of rehabilitation
(less than 25% of the after -rehab value). Substantial rehabilitation
requires a different set of 'ban terms and criteria.
Available Funding: $ 100,000.00
2. Tenant Ownership of Seal Beach Trailer Park/Rehabilitation -
Replacement of Existing Units
Eligible Properties: This program is available to owner - occupants
of mobile homes (trailers) within the Seal Beach Trailer Park.
Loan Amount and Terms: Maximum deferred loan amount not to
exceed $50,000.00. Each property has 45 -year affordable
covenant. Full principal is forgiven on 10 -year loan anniversary. If
property is sold to qualified buyer, that buyer will assume
repayment. If property is sold to non - qualified buyer within first 10
years, the full principal plus equity share is due upon sale. Agency
to receive equity share if home is sold to non - qualified buyer before
45 -year covenant expires.
Eligible Improvements: Any improvements to mobile home are
eligible. Replacement of entire housing unit must be approved by
City Building and Code Enforcement Departments.
2
2002 Home Improvement Program Guidelines
Home Improvement Program Guidelines
Redevelopment Agency of the City of Seal Beach
May 28, 2002
Available Funding: $ 500,000.00
Note: $100,000 of funding for this program will not be
available until the MPROP Loan is funded by the
State of California and the Agency bridge -loan is
reimbursed.
Tenant Ownership /Rental Assistance:
To ensure the Tong -term preservation of Seal Beach Trailer Park as
an important affordable housing resource, the City worked with
LINC Housing, a nonprofit housing organization, to pursue tenant
ownership of the park. The City - was awarded by the State
Department of Housing and Community Development (HCD) a
$20,000 Technical Assistance grant to facilitate conversion of the
park to tenant ownership. Through the issuance of a revenue bond
by the Agency, approval of a MPROP Loan by the State of
California and subsequent loan to LINC housing, conversion of the
park to tenant ownership was completed in December 2000.
Among the 125 units, 25 units have been deed - restricted as
housing affordable to very low income households and 75 units
have been deed - restricted as housing affordable to low /moderate
- _ income households. In addition, the City provides ongoing rental
- - assistance to offset the monthly rent increase necessary to repay
the bond. The rental assistance is for a period of 12 years with a
. maximum funding commitment of $ 965,000.00, and a maximum
yearly commitment of $ 120,000.00.
3. Mortgage Assistance Loans
Eligible Properties: This program is available to qualified
purchasers of owner - occupied single family homes, condominiums
and mobile homes (trailers).
Loan Amount and Terms: Deferred Loan. Buyer pays all closing
costs. 45 -year affordable covenant on property. Full principal
amount forgiven on 10 -year loan anniversary. If property is later
sold to qualified buyer, that buyer will assume repayment terms.
Agency to receive equity share whenever home is sold to non-
qualified buyer before 45 -year covenant expires -
Eligible Improvements: None, program is designed to provide up
to 20% of purchase price for down payment. Maximum $35,000
deferred loan amount.
Available Funding: $ 700,000.00 '
3
2002 Home Improvement Program Guidelines
Home Improvement Program Guidelines
Redevelopment Agency of the City of Seal Beach
May 28, 2002
Note: $400,000 of funding for this program will not be
available until the MPROP Loan is funded by the
State of California and the Agency bridge -loan is
reimbursed.
B. Housing Production and Assistance Goals
Table 1 provides estimates in terms of number of households to be
assisted and amount of housing set -aside fund to be expended over the
five -year period (2000 -2005) of this Home Improvement Program.
Table 1
Five -Year Housing Assistance Goals - 2000 -2005
Households Set -Aside Funds
Program Assisted to be Expended
1. Home Improvement 20 $ 1,000,000 .
Program . - .
2. Tenant Ownership of
Seal Beach Trailer Park
Acquisition of Park 120 ($1,000,000)
(Loan)'
Rental Subsidy for 5
Years 25 $ 600,000
Replacement/Rehabilit 10 $ 500,000
ation
3. Mortgage Assistance 20 $ 700,000
Loans
Total 65 $ 2,800,000
Notes:
1. The $1,000,000 loan to LINC for acquisition of the park will be repaid back to the
Agency within the time frame of this Home Improvement Program. These funds
are proposed to be expended upon receipt and within the time frame of this
Home Improvement Program.
2. Total Rental Subsidy is for 12 Years and will be allocated in future plans as
appropriate. Total subsidy is not to exceed $965,000.00
3. $500,000 of funding for this program will not be available until the MPROP Loan .
is funded by the State of California and the Agency bridge loan is reimbursed.
4. $100,000 of funding for this program will not be available until the MPROP Loan
is funded by the State of California and the Agency bridge loan is reimbursed.
5. $400,000 of funding for this program will not be available until the MPROP Loan
is funded by the State of California and the Agency bridge loan is reimbursed.
4
2002 Home Improvement Program Guidelines
Home Improvement Program Guidelines
Redevelopment Agency of the City of Seal Beach
May 28, 2002
The Agency has discretion to re- allocate funding levels among the various
programs identified above, with the understanding that the allocated funds
must total the $ 2,800,000 indicated. In addition, the Agency needs to
allocate funds to the proposed programs in such a manner as will allow
the Agency to comply with the following requirements:
❑ 70.2 percent of the housing set -aside funds would need to be
expended to assist housing for persons with very low and low income
during the duration of this Home Improvement Program.
❑ 62.5 percent of the housing set -aside funds must be expended on
housing that is available to families with children.
C. Program Implementation:
CivicStone, the City's housing program consultant, will develop a set of
procedures and application forms for implementation of the above -
described programs. All procedures and application forms shall be
reviewed and approved by the Executive Director of the Redevelopment
Agency of his /her designee. CivicStone will also take a more active role in
helping the homeowner through the HIP process; making the application
process more manageable and attractive to the Seal Beach homeowner.
CivicStone will also track, monitor, administer and report to the City on the
intricacies and details of the revised HIP. This will accelerate the
application, bidding, loan and construction processes as well as eliminate
lender, construction and homeowner delays. CivicStone will:
❑ Qualify the property owners' applications for eligibility, based upon
program guidelines.
❑ Interview contractors, check references, verify city and state
requirements and develop a contractor's list.
❑ Work with homeowners to develop a Scope of Work for contractors to
submit competitive bids.
❑ When required by the Planning Department, CivicStone will refer
homeowners to qualified architecture companies for preparing
construction plans.
❑ Conduct the competitive bid process and review the bids with the
homeowners.
❑ Assist the property owners with the loan process.
❑ Regularly inspect the properties and when appropriate approve the
contractor progress payments.
❑ Ensure proper grant/loan documentation is provided to the Agency for
each project funded through the HIP.
5
2002 Home Improvement Program Guidelines
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