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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 C: \My Documents \RDA \Home Imp Program Procedures \Program Procedures Title Page.doc \LW109 -20 -02 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 C: \My Documents \RDA \Home Imp Program Procedures \Grant -Loan Program Procedures Cover Form.doc \UM09 -20 -02 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. C:\My Documents \RDA \Home Imp Program Procedures \Document 101.doc \UM09 -20 -02 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 C:1My Documents \RDA \Home Imp Program Procedures\Document 103.doc \Lw109 -20 -02 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 C: \My Documents \RDA \Home Imp Program Procedures \Document 104.doc \LW\09 -20 -02 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. C: \My Documents \RDA \Home Imp Program Procedures \Document 401.doc \LVA09 -20 -02 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 C:\My Documents \RDA \Home Imp Program Procedures \Document 402.doc \UM09 -20 -02 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 C:1My Documents \RDA \Home Imp Program Procedures \Document 601.doc\LW\09 -20 -02 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. C: \My Documents \RDA \Home Imp Program Procedures \Document 701.doc \LW09 -20 -02 • 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. C: \My Documents \RDA \Home Imp Program Procedures \Document 901 doc \LW\09 -20 -02 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. C: \My Documents \RDA \Home Imp Program Procedures \Document 1001.doc \LWM09 -20 -02 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. C: \My Documents \RDA \Home Imp Program Procedures \Document 1002.doc \UM09 -20 -02 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. C. \My Documents \RDA \Home Imp Program Procedures\Document 1101.doc \LW\09 -20 -02 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: C:\My Documents\RDA\Home Imp Program Procedures \Document 1201.doc \Lw109 -20 -02 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) C: \My Documents \RDA \Home Imp Program Procedures\Document 1401.doc \Lw\09 -20 -02 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. C: \My Documents \RDA \Home Imp Program Procedures \Document 1402.doc \L\M09 -20 -02 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 C: \My Documents \RDA \Home Imp Program Procedures \Document 1403.doc \LW\09 -20 -02 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 C: \My Documents \RDA \Home Imp Program Procedures \Document 1503.doc \LWO9 -20 -02 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: C.1My Documents \RDA \Home Imp Program Procedures \Document 1504.doc \LWM09 -20 -02 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 a) & k E 5 o m o £ 15 � � 0 X 02 c ij k332�2c &k£ BCD% E§ < § 2 . §7 &�c � • : 8 �/ � k �� E 8\7 \ / Ek (k� � oww �2� ' IX Q. >,u0OU_ U_ aS = =co _�f CO o I _ a ca o ƒ 0 w � j ,- Q • § c ■ o o / k � / o e5 6 0 ' 2 _ E W � �k2 • /k 2 ec k < = \ <c §IL fit f iLL U) U) C) _ / § o 2 2 E $2 as o E 22k, com \ E 2 a . @ C s ' ;To . 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