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SEAL BEACH TRAILER PARK
313 WELCOME LANE
SEAL BEACH, CALIFORNIA 90740
May 1, 2000
TO: All Residents
RE: Income Qualification Requirements
Dear Resident(s):
As you may know, Seal Beach Trailer Park has been required to operate in accordance with that
certain AMENDED DECLARATION OF ESTABLISHMENT OF COVENANTS (the
"Covenant") entered into between the ground lessee, the predecessor-in-interest of current
ownership of the Park, and the City of Seal Beach. While the owner continues to claim its rights
in respect to several issues respecting asserted enforceability of the Covenant, certain
requirements of the Covenant, without prejudice to the position of the owner, shall in good faith
be provisionally honored and respected. One such requirement is that the Seal Beach Trailer
Park be reserved, as specified by the Covenant, for low and moderate income persons.
Specifically, the Covenant provides as follows:
Section 2.04 Maintenance of Lots for Persons and Families of Low and Moderate Income
Riverbeach agrees that not less than One Hundred Twenty (120) of the trailer lots (including any
trailers on such lots owned and leased by Riverbeach or its sublessee) shall be maintained as a housing
resource for persons and families of low and moderate income throughout the term of the Master Lease
between Riverbeach and Naples Land Company.The following provisions shall apply to such lots:
(1) As trailer lots or trailer units leased by Riverbeach within the portion of the Site occupied by
the Trailer Park become available through turnover (i.e., after a vacancy by a relocated resident of the
Trailer Court), Riverbeach shall maintain one Hundred Twenty(120) lots for rental to persons and families
of low or moderate income as those terms are defined in Health and Safety Code Section 50093 in effect as
of the date of this Declaration,and as it may be amended.
(2) Not less than half of such units (sixty [60] lots on the Site) shall be maintained for persons
and families of low income as defined in Health and Safety Code Section 50093 in effect as of the date of
this Declaration,and as it may be amended.
(3) Riverbeach shall cooperate with the Agency in accepting persons and families of low and
moderate income referred by Agency or the City of Seal Beach for rental of trailers or lots as they become
available within the Site. Notwithstanding such agreement to cooperate with Agency and City. in
considering referral of persons and families of'low and moderate income,the final selection of tenants shall
be the decision of Riverbeach Associates. In the event that persons meeting the requirements of Section
2.04, subsections (1) and (2) are not available to rent vacant trailer lots or cannot afford the then current
monthly rental after reasonable efforts by Riverbeach Associates to locate such persons, including written
notice to the Agency and City of any vacancies, Riverbeach may rent such vacant lots to persons and
families having incomes above the limits set forth in sections(I)and(2).
20201 S.W. Birch Street, Suite 250, .Newport Beach, CA 92660 • Ph. (949) 224-0280 • Fax(949) 224-0223
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(4) Riverbeach shall be required to determine of each tenant referred to in Section 2.04(1),(2)and
(3)that such tenant is of low or moderate income,as defined in this agreement.
(5) The Agency shall examine, at least once per year, any relevant records of operation by
Riverbeach's Trailer Park management, subject to the confidentiality of individual tenant financial
information, to insure that such income determinations have been appropriately performed by Riverbeach
in fulfilling the standards set forth in subsections(1),(2)and(3)of this section.
(6) The Agency shall,at least once per year,submit written findings to the South Coast Regional
Commission of the California Coastal Commission or its successor agency,of any examinations performed
by the Agency pursuant to this section.
Under these provisions of the Covenant, Seal Beach Trailer Park is required to determine that
each tenant is of low or moderate income. This will also allow the City of Seal Beach to comply
with its obligations and reporting requirements to the California Coastal Commission.
For these foregoing reasons, each resident in the park is required to provide specific financial
information upon forms that will be made available shortly, together with any required
supporting documentation, and to submit such forms to management under penalty of perjury.
Due to the importance of the required information, management is hiring the services of a
certified public accountancy firm to review the submitted information for completeness and to
perform such other procedures and investigation as may be reasonably necessary to confirm the
accuracy of the information. In order to provide sufficient time for the completion and return of
the forms to the management, a due date of July 31, 2000 will be established.
Please be further advised that the rules and regulations of the park have always required that
residents comply with laws and regulations pertaining to residency in the park. Such rules and
regulations must be complied with as a continuing condition of tenancy in the park. As you
know, the failure to comply with a rule and regulation may lead to termination of tenancy in the
community. In this instance, the requirement of the Covenant, that the park be reserved for low
and moderate income persons, is especially important because compliance is claimed to
constitute a continuing condition of park operation. Therefore, management may be required to
enforce the rule and regulation in the event that any resident fails to provide information needed
for the maintenance of the park for low and moderate incomes and to take such action as
appropriate in the event that it is determined that non-qualifying residents reside in the
community outside the restrictions set forth pursuant to the Covenant.
Thank you very much for your attention to the foregoing matters. We would appreciate and will
consider all comments and questions to the foregoing matters. In this regard, please feel free to
call on us at any time for comments and questions.
SEAL BEACH TRAILER PARK
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For the Management