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HomeMy WebLinkAboutD-2760. _ _. _~ ~ ~~ ~, I V ~ y vl -~" " . ~ This page is part of your document - DO NOT DISCARD S ~,a,q,~ Pages• ~.. ~.,~ 20080589887 .024 • Recorded/Filed in Official Records Fee: 0.00 Recorder's Office, Los Angeles County, California Tax: 0.00 04!07108 AT 08:OOAM Other: 0.00 Tota1:0.00 Title Company TITLE(S) i~u~mi~i~~sai Assessor's Identification Number (AIN) To be completed by Examiner.OR Title Company in black ink. Number of AIN's Shown a E,,,,,, THIS FORM IS NOT TO BE DUPLICATED First American Title Subdivision Tract Sales RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of Arcadia Attention: Executive Director 240 West Huntington Drive Arcadia, California 9]006-6021 ~_~--~--- 04!07108 ~~^ I IIIIII VIII VIII VIII VIII VIII VIII VIII VIII VIII VIII IIII IIII 20080589887 Exemp[ from Filing Fees Gov. Code Section 27383 (Space above line for use by Ri t7/~ 5~~3 --d /y-c>zs-~o w Os7 THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA OCCUPANCY AND AFFORDABILITY COVENANTS AND RESTRICTIONS 119 EAST ALTA STREET, UNIT A, ARCADIA, CALIFORNIA Dated as of March 20, 2008 2'3 RVPU a1L WAUH\738948.4 THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA OCCUPANCY AND AFFORDABILITY COVENANTS AND RESTRICTIONS (Multi-Family Housing Project) THIS REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA OCCUPANCY AND AFFORDABILITY COVENANTS AND RESTRICTIONS (the "Covenant Agreement") is made and entered into as of March 20, 2008, among TRA DEMARK DEVELOPMENT COMPANY, LLC, a California limited liability company (the "Developer"), THE REDEVELOPMENT AGENCY OP THE CITY OF ARCADIA, a public body, corporate and politic (the "Agency"), and TICHIEN WU, (the "Qualified Home Buyer"). RECITALS A. The Qualified Home Buyer proposes to acquire a single family residence (the "New Home"), located within the City of Arcadia (the "City"), from the Developer, to be owned and occupied by the Qualified Home Buyer as his/her principal residence. The legal description ~ of the New Home is attached hereto as Exhibit A and incorporated herein by this reference. The New Home was developed by the Developer pursuant to that certain "Affordable Housing ~~ ~ Agreement" ("AHA") between the Agency and the Developer and reference dated as of June 6, 3 2006. S B. The Agency is obligated to assure that certain specified percentages of homes developed in the Agency's redevelopment project areas will be available to persons and families of very low, low and moderate income. In fulfillment of this obligation, the Agency and the Developer have agreed to make the New Home available for acquisition by the Qualified Home ~,iy Buyer from the Developer subject to the terms and conditions of the Community Redevelopment Law found at Health and Safety Code Section 33000, et seq. (the "CRL") and this Covenant. D. The CRL mandates that the acquisition, use and occupancy of the New Home shall be restricted in certain respects for the term as provided herein (the "Qualified Residence Period") in order to ensure that the New Home will be used and occupied in accordance with the CRL and the affordable single family residential dwelling unit development goals and objectives of the Agency. E. In connection with the Qualified Home Buyer's purchase of the New Home, the Agency may have provided certain financial assistance to the Qualified Home Buyer, in order to make the New Home affordable for the Qualified Home Buyer. If such assistance is given, it shall be evidenced by a promissory note and secured by a deed of trust (the "Silent Second Loan"). Although the provision of such assistance is not a condition to the effectiveness or enforceability of this Covenant Agreement, if such assistance is given, the Qualified Home Buyer's obligations (and those of any Successors-In-Interest) under this Covenant Agreement I: '~ shall be secured by the deed of trust given in connection with such assistance. ~~ F. The Agency also desires to ensure that the Qualified Homebuyer for a particular [;) New Home, and all other successors and assigns thereto, own and occupy such New Home as his +,a'i or her primary residence for a period of forty-five (45) years. ;a:+ d;~1 ~?:u s";V,: ,u + RVPUB\LWADL'V38948.4 - l - 7 NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND UNDERTAKINGS SET FORTH HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE QUALIFIED HOME BUYER, THE DEVELOPER AND THE AGENCY DO HEREBY COVENANT AND AGREE FOR THEMSELVES, THEIR SUCCESSORS AND ASSIGNS AS FOLLOWS: Section 1. Definitions of Certain Terms. As used in this Covenant Agreement, the following words and terms shall have the meaning as provided in the Recitals or in this Section 1 of the Covenant Agreement unless the specific context of usage of a particular word or term may otherwise require. All other initially capitalized terms used in this Covenant Agreement shall have the meaning as provided in the AHA, as may be amended from time to time: (a) Adjusted Family Income. The words "Adjusted Family Income" mean the anticipated total annual income (adjusted for family size) of each individual or family residing or treated as residing in the New Home as calculated in accordance with Treasury Regulation 1.167(k) - 3b)(3) under the Code, as adjusted, based upon family size in accordance with the household income adjustment factors adjusted and amended from time to time, pursuant to Section 8 of the United States Housing Act of 1937, as amended. (b) Affordability Covenants. The word "Affordability Covenant" means the covenant of the Qualified Home Buyer to maintain the affordability of the New Home and the covenant relating to the sale or transfer of the New Home during the Qualified Residence Period pursuant to Section 3 in this Covenant Agreement. (c) Affordable Housing Cost. The words "Affordable Housing Cost" shall have the meaning as set forth in Health and Safety Code Section 500525(b)(4), as this section may hereafter be amended from time-to-time by the State of California, and shall include an allowance for utilities and maintenance costs as prescribed by the California Department of Housing and Community Development from time to time. ' In the event that either the Qualified Home Buyer on the Delivery Date, or later that a proposed Successor-In-Interest may be (but shall not be required to be) an "extremely low income household", a "very low income household" or a "lower income household", as these terms are defined by the CRL, then in such event the amount of the maximum Affordable Housing Cost payable by any such Successor-In- Interest household in connection with the acquisition of the New Home at any time during the Qualified Residence Period shall be calculated as set forth in Health and Safety Code 50052.5(b)(1) , (2) or (3), as applicable. (d) Capital lmprovements. The words "Capital Improvements" mean the improvements to a New Home which has: i) an initial cost in excess of Two Thousand Dollars ($2,000); (ii) a useful life of more than one (1) year; and (iii) was commenced subsequent to the purchase of the New Home by the Qualified Home Buyer. The maximum allowable amount of G;?) ,r~p~ any Capital Improvement shall not exceed the lesser of the actual cost or the appraised value. I~°~ (e) Code. The word "Code" means the Internal Revenue Code of 1986, as amended, tl~Z and any regulation, rulings or procedures with respect thereto. ~;? rl~~ r„s ~"''~ RVPUB\LWADEV3890.8.4 - 2 - "..8 5 ta) d.~ C:I Ira ~n s,:;, s~ ~~ (f) Covenant Agreement. The word "Covenant Agreement" means this Redevelopment Agency of the City of Arcadia Occupancy and Affordability Covenants and Restrictions by and among the Qualified Home Buyer, the Developer and the Agency pertaining to the New Home. (g) Delivery Date. The words "Delivery Date" mean the date of delivery of title and possession of the New Home from the Developer to the Qualified Home Buyer at the close of the New Home Escrow. In the case of aSuccessor-In-Interest, the words "Delivery Date" refers to the date on which such Successor-In-Interest acquires the New Home from the Qualified Home Buyer; provided however, that for the purpose of establishing the termination date of the Qualified Residence Period, the Delivery Date shall refer to the date on which this Covenant Agreement is recorded. (h) Equity Share. The words "Equity Share" mean the shaze to be paid to the Agency of the Net Sales Proceeds from the New FIome in the same percentage as the Silent Second Loan to the gross sales price of the New Home at the time the Silent Second Loan is disbursed to the Qualified Home Buyer according to Section 3(a) in this Covenant Agreement. (i) Moderate-Income Household. The words "Moderate-Income Household" mean persons and families whose income does not exceed one hundred twenty percent (120%) of the then-current area median income of the County of Los Angeles adjusted for family size by the State Department of Housing and Community Development in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937, as amended, and Health and Safety Code Section 50093, as this section may hereafter be amended from time-to-time by the State of California. (j) Net Sales Proceeds. The words "Net Sales Proceeds" mean the amount that is the difference between: (a) the resale price of the New Home payable by aSuccessor-in-Interest to the Qualified Homebuyer less (b) the sum of the purchase price of the New Home at the time of the Agency's assistance, less the costs of any Capital Improvements and less any reasonable and customary costs of sale (e.g., real estate commissions, escrow costs and title policy expenses) for similar transactions in Los Angeles County, not to exceed ten (10%) of the gross sales price in any event). (k) New Home. The words "New Home" mean and refer to the completed affordable single-family residential dwelling unit (including the land and landscape improvements thereon) as constructed and installed by the Developer and sold to the Qualified Home Buyer. (1) New Home Escrow. The words "New Home Escrow" mean and refer to the real estate conveyance transaction or escrow by and between the Developer and the Qualified Home Buyer (or later, by and between the Qualified Home Buyer and the Successor-tn-Interest). The transfer of the New Home from the Developer to the Qualified Home Buyer (or later, by and between the Qualified Home Buyer and the Successor-In-Interest) shall be accomplished upon the close of the New Home Escrow. (m) Notice of Agency Concurrence. The words "Notice of Agency Concurrence" mean and refer to the acknowledgment in recordable form in which the Agency confirms that the RVPUBILWADEV38948.4 - 3 - r; proposed Successor-In-Interest of the Qualified Home Buyer satisfies all of the Adjusted Family Income and other requirements of this Covenant Agreement for occupancy of the New Home by the Successor-In-Interest at any time during the Qualified Residence Period. (n) Owner Occupancy Covenant. The words "Owner Occupancy Covenant" mean and refer to the covenant of the Qualified Home Buyer, and successors-in-interest thereto, to occupy the New Home as his or her primary residence pursuant to Section 5 in this Covenant Agreement. (o) Owner Occupancy Covenant Period. The words "Owner Occupancy Covenant Period" mean the period of forty-five (45) years from the Delivery Date. (p) Qualified Home Buyer. The words "Qualified Home Buyer" mean the purchaser of the New Home from the Developer (e.g.: all persons identified as having a property ownership interest vested in the New Home as of the close of the New Home Escrow). At the close of the New Home Escrow, the Qualified Home Buyer shall: (i) have an annual Adjusted Family Income which does not exceed the household income qualification limits of a Moderate- Income Household: (ii) shall be a first-time homebuyer, as this term is defined in Health and Safety Code Section 50068.5 as this section may hereafrer be amended from time-to-time by the State of California; and (iii) pay no more than an Affordable Housing Cost for the New Home pursuant to the terms of the purchase transaction for the New Home, including all sums payable by the Qualified Home Buyer for its purchase money mortgage financing, insurance, escrow and other fees and costs. (q) Qualified Residence Period. The words "Qualified Residence Period" mean the period of time beginning on the Delivery Date and ending on the date which is forty-five (45) years after the Delivery Date. (r) Restricted Residence Period. The words "Restricted Residence Period" mean the period of time beginning on the Delivery Date and ending on the date which is five (5) years thereafter. (s) Silent Second Loan. The words "Silent Second Loan" mean the loan made by the Agency to the Qualified Home Buyer from the Agency's low and moderate income housing fund to assist the Qualified Home Buyer with the purchase of the New Home. (t) Successor-In-Interest. The words "Successor-In-Interest" mean and refer to the person, family or household which may acquire the New Home from the Qualified Home Buyer at any time during the Owner Occupancy Covenant Period by purchase, assignment, transfer or otherwise. During the Qualified Residence Period, such Successor-In-Interest shall have an income level for the twelve (12) months prior to the date on which the Successor-In-Interest acquires the New Home which does not exceed the maximum Adjusted Family Income level for t°,~ aModerate-Income Household. U on ac uisition of the New Home the Successor-In-Interest ;,;, P q shall be bound by each of the covenants, conditions and restrictions of this Covenant Agreement. ~"7 tl~ The titles and headings of the sections of this Covenant Agreement have been ~~? inserted for convenience of reference only and are not to be considered a part of this Covenant tti% ~;: ~}'A RVPUBILWADE1738948.4 - 4 - °'aQ i:7 45 t."..:+ l~ r,,;, ~. ~~~~I ~~ ~~ Agreement and shall not in any way modify or restrict the meaning any of the terms or provisions of this Covenant Agreement. Section 2. Acknowledgments and Representations of the Qualified Home Buver. The Qualified Home Buyer hereby acknowledges and represents that, as of the Delivery Date: (a) the total household income for the Qualified Home Buyer does not exceed the maximum amount permitted as Adjusted Family Income for aModerate-Income Household, adjusted for actual Family size; (b) the Qualified Home Buyer shall promptly occupy the New Home after the Delivery Date as the principal place of residence and the Qualified Home Buyer has not entered into any arrangement and shall not sell, transfer or assign the New Home to any third party during the Qualified Residence Period so as to frustrate the purpose of this Covenant Agreement; (c) the Qualified Home Buyer shall not lease or rent any room or sublet or rent a portion of the New Home to any relative of the Qualified Home Buyer or to any third person at any time during the Restricted Residence Period; (d) the aggregate sum payable each month by the Qualified Home Buyer following the close of the New Home Escrow as principal and interest, property taxes and, property casualty insurance for the acquisition of the New Home does not exceed the Affordable Housing Cost for the household; (e) the Qualified Home Buyer agrees to provide the Agency with the following items of information for inspection by the Agency promptly upon written request of the Agency: (i) State and federal income tax retums filed by all persons who reside in the New Home for the three (3) most recent tax years preceding the close of the New Home Escrow for inspection of such State and federal income tax returns; (ii) current wage, income and salary statements for all persons residing in the New Home at the close of the New Home Escrow; (f) The Qualified Flome Buyer has been informed by the Developer that this Covenant Agreement imposes certain restrictions on the use and occupancy of the New Home during the term of this Covenant Agreement and that this Covenant Agreement imposes certain restrictions on the resale of the New Home during the Qualified Residence Period. The Qualified Home Buyer acknowledges and understands that these restrictions shall be applicable to the New Home and to any resale of the New Home from the Delivery Date to the end of the Qualified Residence Period which is March 28, 2053. The Qualified Home Buver also acknowledges and understands that the entire unpaid balance of the Silent Second Loan may be immediately due and payable uaon the failure of the Qualified Home Buyer to satisfy its oblieations under this Covenant Agreement. t Dated: 03~'% ~~ Initials of Qualified Home Buyer RVPUH\L0.'ADI31738948.4 - 5 - `d Section 3. Covenant of the Oualified Home Buyer to Maintain Affordability of the New Home During the Oualified Residence Period and Covenant Relating to Sale or Transfer of the New Home During the Oualified Residence Period to aSuccessor-In-Interest. (a) The Qualified Home Buyer for itself, its heirs, successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period, the New Home shall be used and occupied by the Qualified Home Buyer as its principal residence, and that the New Home shall be reserved for sale, use and occupancy by the Qualified Home Buyer and/or for another Moderate-Income Household as aSuccessor-In-Interest at an Affordable Housing Cost. The Qualified Home Buyer, for itself, its heirs, successors and assigns, further covenants and agrees that, during the Qualified Residence Period, the Agency shall have the right as provided in this Section 3 of this Covenant Agreement to verify that each proposed Successor-In- Interest of the Qualified Home Buyer in the New Home satisfies the income requirements and Affordable Housing Cost limitations of aModerate-Income Household (based upon the Adjusted Family Income of each household). Provided, however, that after the Restricted Residence Period, the Qualified Home Buyer may exercise the "Opt-out Option" wherein the Qualified Home Buyer may elect to avoid the restriction of this Section 3(a) of this Covenant Agreement by payment to the Agency of a sum equal to the following. (i) the entire outstanding unforgiven balance of the Silent Second Loan provided to the Qualified Home Buyer (or its predecessor); and (ii) the Equity Share of the Net Sales Proceeds, as both terms are defined in Section 1 of this Covenant Agreement. The completion of any resale or transfer of the New Home to a Successor-In-Interest shall be subject to the recordation of the "Notice of Agency Concurrence" as provided in Section 3(d) of this Covenant Agreement. If the Qualified Home Buyer chooses to exercise its rights under the Opt-out Option detailed above, the written notice provided to Agency under Section 3(b) of this Covenant Agreement shall include a statement that Qualified Home Buyer will be proceeding under the Opt-out Provision. (b) The Qualified Home Buyer, for itself, its successors and assigns, hereby covenants and agrees that during the term of the Qualified Residence Period, the Qualified Home Buyer shall not sell, transfer or otherwise dispose of the New Home to aSuccessor-In-Interest without first giving written notice to the Agency and without first obtaining the written concurrence of the Agency as provided herein. At least forty-five (45) days prior to the date on which the Qualified Home Buyer proposes to transfer title in the New Home to a Successor-In- Interest, the Qualified Home Buyer shall send a written notice to the Agency as provided in Section 18 of this Covenant Agreement of the intention of the Qualified Home Buyer to sell the New Home to aSuccessor-In-Interest which includes the following true and correct information: (i) name of the proposed Successor-In-Interest (including the identity of all persons in the household of the Successor-In-Interest, proposing to reside in the New Home); d"4 (ii) copies of State and federal income tax returns for the Successor-In-Interest ~~} for the calendar year preceding the year in which Che notice of intention to sell the New Home is given to the Agency; ~~) tl.~'I (iii) resale price of the New Home payable by the Successor-In-Interest, ~'°~' including the terms of all purchase money mortgage financing to be assumed, provided or iy;;k 4's'~ y"'ti' RVPUB\LWADEV38948,4 - 6 - *~9 obtained by the Successor-In-Interest, escrow costs and charges, realtor broker fees and all other resale costs or charges payable by either the Qualified Home Buyer or the Successor-In-Interest; (iv) name address, and telephone number of the escrow company which shall coordinate the transfer of the New Home from the Qualified Home Buyer to the Successor-In- Interest; (v) appropriate mortgage credit reference for the Successor-In-Interest with a written authorization signed by the Successor-In-Interest authorizing the Agency to contact each such reference; and (vi) such other relevant information as the Agency may reasonably request, as provided in Section 3(c) of this Covenant Agreement. (c) Within twenty (20) days following receipt of the notice of intention described in Section 3(b) of this Covenant Agreement, the Agency shall provide the Qualified Home Buyer with either a preliminary confirmation of approval or a preliminary rejection of approval in writing of the income and household occupancy qualifications of the Successor-In-Interest. The Agency shall not unreasonably withhold approval of any proposed sale of the New Home to a Successor-In-Interest who satisfies the Adjusted Family Income and the Affordable Housing Cost requirements for occupancy of the New Home and for whom the other information as described in Section 3(b) of this Covenant Agreement has been provided to the Agency, or any proposed sale that meets the requirements of the Opt-Out Option described in subsection (a) of this Section 3 of this Covenant Agreement. In the event that the Agency may request additional information relating to the confirmation of the matters described in Section 3(b) of this Covenant Agreement, the Qualified Home Buyer shall provide such information to the Agency as promptly as feasible. (d) Upon its final confirmation of approval of the Adjusted Family Income and Affordable Housing Cost eligibility of the Successor-In-Interest to acquire the New Home, the Agency shall deliver a written acknowledgment and approval of the resale of the New Home to the Successor-In-Interest in recordable form to the escrow holder referenced in Section 3(b)(iv) of this Covenant Agreement, and thereafter the Successor-In-Interest may acquire the New Home subject to the satisfaction of the following conditions: (i) the recordation of the Notice of Agency Concurrence executed by the Successor-In-Interest and the Agency at the close of the resale escrow; (ii) the escrow holder shall have provided the Agency with a copy of the customary form of the final escrow closing statement of the Qualified Home Buyer and the final escrow closing statement for the Successor-Tn-Interest; and (:'`:4 ~. (iii) the other conditions of the resale escrow as established by the Qualified Home Buyer and Successor-In-Interest shall have been satisfied. ~:~ t~'Y (e) The Qualified Home Buyer for itself, its successors and assigns hereby covenants °~~' and agrees that until the end of the Owner Occupancy Covenant Period, the New Home shall not ~~ be leased, subleased, or rented to any third person, except for a temporary period (not to exceed ~'a ~`S RVPUBILWADE\738948.4 - 7 - ~, ~ /~ twelve (12) months) in the event of an emergency or other unforeseen circumstance as may be expressly approved in writing by the Agency subject to compliance during the temporary rental period with the reasonable temporary rental occupancy conditions required by the Agency. The Qualified Home Buyer shall submit a written request to the Agency prior to the commencement of the temporary occupancy, as practicable, but in any event within not more than sixty (60) days following the commencement of a temporary rental occupancy of the New Home by a third party, which notice shall set forth the grounds on which the Qualified Home Buyer believes an emergency or other unforeseen circumstance has occurred and that a temporary rental occupancy in necessary. (f) Restrictions on Transfer of the New Home. QUALIFIED HOME BUYER UNDERSTANDS THAT THE DETERMINATION OF THE SALES PRICE OF THE NEW HOME TO ASUCCESSOR-IN-INTEREST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER TAKING INTO CONSIDERATION INTEREST RATES, PROPERTY TAXES AND PRICE PERMITTED HEREUNDER MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THE RESTRICTIONS OF THIS COVENANT AGREEMENT. QUALIFIED HOME BUYER FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE SALES PRICE OF TF[E NEW HOME THE PRIMARY OBJECTIVE OF THE CITY, THE AGENCY AND THE RESTRICTIONS OF THIS COVENANT AGREEMENT IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AFFORDABLE HOUSING COSTS. THE SALES PRICE WILL ALMOST CERTAINLY BE LESS THAN OTHER SIMILAR PROPERTIES WHICH HAVE NO COVENANT RESTRICTIONS. f Dated: 03I ~ ~ ~ ~ ~ ~W Initials of Qualified Home Buyer f""~ ~9 ~:' i~~ ~, ~eM fi~;H d"„i,7 '.,,~ (g) The entirety of the Silent Second Loan may, at the Agency's option, be immediately due and payable upon the sale, lease, or other transfer of the New Home prior to the expiration of the full term of the Qualified Residence Period in contravention of either this Agreement or the affordability covenants. Notwithstanding any other provision herein to the foregoing, nothing in this Section 3 of this Covenant Agreement shall operate to terminate the Owner Occupancy Covenant or the maintenance condition, as set forth in Section 4 of this Covenant Agreement, during the term as defined in Section ] 0 of this Covenant Agreement. Section 4. Maintenance Condition of the New Home. The Qualified Home Buyer, for itself, its successors and assigns, hereby covenants and agrees that: (a) The exterior areas of the New Home which are subject to public view (e.g.: all improvements, paving, walkways, landscaping, and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. In the event that at any time during the term of the term of this Covenant Agreement, as set forth in Section 10 of this Covenant Agreement, there is an occurrence of an adverse condition on any area of the New Home which is subject to public view in contravention of the general maintenance standard described above, (a "Maintenance Deficiency") then the Agency shall notify the Qualified Home Buyer, or its Successors-in-Interest, in writing of the Maintenance Deficiency and give the Qualified Home Buyer thirty (30) days from the date of such notice to cure the Maintenance RVPUB\LWADE\738948.4 - g - ll '~;N 5~~, ~,t t."'I „r~ ~t~e ,,v„ °, „M Deficiency as identified in the notice. The words "Maintenance Deficiency" include without limitation the following inadequate or non-confirming property maintenance conditions and/or breaches of single family dwelling residential property use restrictions: (i) failure to properly maintain the windows, structural elements, and painted exterior surface areas of the dwelling unit in a clean and presentable manner; (ii) failure to keep the front and side yard areas of the property free of accumulated debris, appliances, inoperable motor vehicles or motor vehicle parts, or free of storage of lumber, building materials or equipment not regularly in use on the property; (iii) failure to regularly mow lawn areas or permit grasses planted in lawn areas to exceed nine inches (9") in height, or failure to otherwise maintain the landscaping in a reasonable condition free of weeds and debris; (iv) parking of any commercial motor vehicle in excess of 7,000 pounds gross weight anywhere on the property, or the parking of motor vehicles, boats, camper shells, trailers, recreational vehicles and the like in any side yard or on any other parts of the property which are not covered by a paved and impermeable surface; (v) the use of the garage area of the dwelling unit for purposes other than the parking of motor vehicles and the storage of personal possessions and mechanical equipment of persons residing in the New Home. In the event the Qualified Home Buyer fails to cure or commence to cure the Maintenance Deficiency within the time allowed, the Agency may thereafter conduct a public hearing following transmittal of written notice thereof to the Qualified Home Buyer ten (10) days prior to the scheduled date of such public hearing in order to verify whether a Maintenance Deficiency exists and whether the Qualified Home Buyer has failed to comply with the provision of this Section 4(a) of this Covenant Agreement. If, upon the conclusion of a public hearing, the Agency makes a finding that a Maintenance Deficiency exists and that there appears to be non- compliance with the general maintenance standard, as described above, thereafter the Agency shall have the right to enter the New Home (exterior areas only) and perform all acts necessary to cure the Maintenance Deficiency, or to take other action at law or equity the Agency may then have to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Agency for the abatement of a Maintenance Deficiency as authorized by this Section 4(a) of this Covenant Agreement shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Home Buyer, the Agency shall have the right to enforce the lien in the manner as provided in Section 4(c) of this Covenant Agreement. (b) Graffiti which is visible from any public right-of--way which is adjacent or contiguous to the New Home shall be removed by the Qualified Home Buyer from any exterior surface of a structure or improvement on the New Home by either painting over the evidence of such vandalism with a paint which has been color-matched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water as appropriate. In the event that graffiti is placed on The New Home (exterior areas only) and such graffiti is visible from an adjacent or contiguous public right-of--way and thereafter such graffiti is not removed RVPUB\LWADE1738948.4 - 9 - /~ ~,t within 72 hours following the time of its application; then in such event and without notice to the Qualified Home Buyer, the Agency shall have the right to enter the New Home and remove the graffiti. Notwithstanding any provision of Section 4(a) of this Covenant Agreement to the contrary, any sum expended by the Agency for the removal of graffiti from the New Home as authorized by this Section 4(b) of this Covenant Agreement shall become a lien on the New Home. If the amount of the lien is not paid within thirty (30) days after written demand for payment by the Agency to the Qualified Home Buyer, the Agency shall have the right to enforce its lien in the manner as provided in Section 4(c) of this Covenant Agreement. (c) The parties hereto further mutually understand and agree that the rights conferred upon the Agency under this Section 4 expressly include the power to establish and enforce a lien or other encumbrance against the New Home in the manner provided under Civil Code Sections 2924, 2924b and 2924c in the amount as reasonably necessary to restore the New Home to the maintenance standard required under Section 4(a) or Section 4(b) of this Covenant Agreement, including attorneys fees and costs of the Agency associated with the abatement of the Maintenance Deficiency or removal of graffiti and the collection of the costs of the Agency in connection with such action. In any legal proceeding for enforcing such a lien against the New Home, the prevailing party shall be entitled to recover its attorneys' fees and costs of suit. The provisions of this Section 4 of this Covenant Agreement shall be a covenant running with the land for the Term of this Agreement as set forth in Section 10 of this Covenant Agreement and shall be enforceable by the Agency in its discretion, cumulative with any other rights or powers granted by the Agency under applicable law. Nothing in the foregoing provisions of this Section 4 of this Covenant Agreement shall be deemed to preclude the Qualified Home Buyer from making any alterations, additions, or other changes to any structure or improvement or landscaping on the New Home, provided that such changes comply with the zoning and development regulations of the City and other applicable law. Section 5. Covenant of the Qualified Home Buyer and all Successors-in-Interests to Occupy the New Home as his or her Primary Residence. The Qualified Home Buyer, for itself, its heirs, successor and assigns, hereby covenants and agrees that, for the Owner Occupancy Covenant Period, the New Home shall be used and occupied solely as the primazy residence of the Qualified Home Buyer and its Successors-in-Interest, subject to Section 3(e) of this Covenant Agreement. During the Qualified Residence Period, the entirety of the Silent Second Loan may, at the Agency's option, be immediately due and payable upon the lease or other transfer of the New Home prior to the expiration of the full term of the Owner Occupancy Covenant Period in contravention of this Covenant Agreement. Section 6. Acknowledgment of Priority Subordination of the Provisions of Section 3 and Section 7(b) of this Covenant Agreement to the Mortgage Security Interest of the First Mortg~e Lender. Concurrently upon the execution and recordation of this Covenant Agreement the Qualified Home Buyer shall obtain certain purchase money mortgage financing for the acquisition of the New Home from Countrywide Bank, FSB (the "First Mortgage Lender"). The term "First Mortgage Lender" as used herein shall include CalHFA in the event CaIHFA acquires beneficial interest in the security interest of First Mortgage Lender in the Property. As of the Delivery Date, the Qualified Home Buyer has provided the Agency with a true and correct copy of the loan agreement by and between the First Mortgage Lender and the Qualified Home Buyer. RVPLIBILWADEV38948.4 - 10 - ~~ ix;k ~:y f~:p r„a 4 r; r1~ ~7 c+;: ~'~ This Covenant Agreement, with the exception of the Owner Occupancy Covenant in Section 5 of this Covenant Agreement, shall be subordinate to the security interest of the First Mortgage Lender in the New Home and shall not impair the rights of the First Mortgage Lender or such lender's assignee or successor-in-interest, to exercise its remedies under the lien of the First Mortgage Lender in the event of default by Owner. No breach or default by the Qualified Home Buyer of any provision of Section 3 and/or Section 7(b) of this Covenant Agreement, nor the exercise by the Agency of any remedy it may have against the Qualified Home Buyer in the event of such a breach or default shall affect or render invalid the lien of the First Mortgage Lender in the New Home. In the event that the First Mortgage Lender (or its assignee) may foreclose the lien of the First Mortgage Lender in the New Home, subject to Section 7(a) of this Covenant Agreement through trustee sale, judicial foreclosure or by acceptance of deed in lieu of foreclosure, this Covenant Agreement shall be forever terminated and shall have no further effect as to the New Home or any transferee thereafrer; provided, however, if the holder of such deed of trust acquires title to the New Home pursuant to a deed or assignment in lieu of foreclosure, this Covenant Agreement shall automatically terminate upon such acquisition of title only if: i) the first deed of trust secures repayment of a promissory note, the proceeds of which were used to acquire fee title to the New Home; ii) the Agency has been given thirty (30) days written notice of default under such first deed of trust; and iii) the Agency shall not have cured the default under such first deed of trust within the thirty (30) day period provided in such notice sent to the City. The notice requirement of subsection (ii) of the previous sentence shall be satisfied by the recordation of a notice of default in the manner set forth in California Civil Code Section 2924. Section 7. Foreclosure of Purchase Monev Mortg~e Loan and AaencX Right of First Refusal. (a) During the Qualified Residence Period, the Agency shall have the right (but not the obligation) to bid on the purchase of any mortgage loan lien secured by the New Home at the time of any trustee foreclosure sale or any judicial foreclosure sale. (b) During the Qualified Residence Period, the Agency shall have the right of first refusal to purchase the New Home from the Qualified Home Buyer on the same terms which the Qualified Home Buyer may propose to offer the New Home for resale to aSuccessor-In-Interest. The Agency must exercise such a right of first refusal within thirty (30) days following written notification of the intention of the Qualified Home Buyer to resell the New Home, and if the Agency accepts the offer in writing within such time period the Agency shall be bound to complete the purchase of the New Home strictly in accordance with the offer. Thereafter the Agency shall pay the "resale price" to the Qualified Home Buyer and close an escrow for the transfer of the New Home to the Agency within sixty (60) days following written notification of the intention of the Qualified Home Buyer to resell the New House. Section 8.Covenants to Run With the Land. The Developer, the Agency and the Qualified Home Buyer hereby declare their specific intent that the covenants, reservations and restrictions set forth herein are part of a common plan for the development of affordable multi- family housing improvements in 119-121 Alta Street Affordable Housing Project and that each shall be deemed covenants running with the land and shall pass to and be binding upon the New Home and each Successor-In-Interest of the Qualified Home Buyer in the New Home for the RVPUBILWADE1738948.4 - 11 - l~ ~,'„'i ;sq C:~ i!9 ~~ ~7 cry s;: k~ term set forth in Section 10 of this Covenant Agreement, except for the Affordability Covenants with shall be deemed a covenant running with the land and shall pass to and be binding upon the New Home and each Successor-In-Interest of the Qualified Home Buyer in the New Home for the Qualified Residence Period. The Qualified Home Buyer hereby expressly assumes the duty and ob]igation to perform each of the covenants and to honor each of the reservations and restrictions set forth in this Covenant Agreement. Each and every contract, deed or other instrument hereafter executed covering or conveying the New Home or any interest therein shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations, and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instrument. Section 9. Burden and Benefit. The Developer, the Agency and the Qualified Home Buyer hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that the Qualified Home Buyer's legal interest in the New Home is affected by the affordable single family dwelling use and occupancy covenants hereunder. The Agency and the Qualified Home Buyer hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the New Home by the intended beneficiaries of such covenants, reservations and restrictions. Section 10. Term. This Covenant Agreement shall apply to the New Home and the Qualified Home Buyer and to each Successor-In-Interest as of the Delivery Date for the Owner Occupancy Covenant Period - e.g.: this Covenant Agreement shall remain in full force and effect for forty-five (45) years after the Delivery Date. Any provision or section hereof may be terminated after the Delivery Date upon agreement by the Agency (given or withheld in its sole and absolute discretion) and the Qualified Home Buyer (or the Successor-In-Interest in the New Home), if there shall have been provided to the Agency an opinion of special legal counsel that such a termination under the terms and conditions approved by the Agency in its reasonable discretion will not adversely affect the Agency. Section 11. Acceleration of Agency Note and Deed of Trust. QUALIFIED HOME BUYER ACKNOWLEDGES AND UNDERSTANDS THAT, DURING THE QUALIFIED RESIDENCE PERIOD, UPON THE OCCURRENCE OF AN EVENT OF DEFAULT ARISING FROM, IN CONNECTION WITH OR RELATED TO THE FAILURE OF THE QUALIFIED HOME BUYER TO SATISFY ITS OBLIGATIONS UNDER SECTION 2, SECTION 3 OR SECTION 5 OF THIS COVENANT AGREEMENT, THE AGENCY MAY, AT AGENCY'S OPTION, DECLARE THE ENTIRE OUTSTANDING BALANCE OF THE SILENT SECOND LOAN TO BE IMMEDIATELY DUE AND PAYABLE, AND THE SAME SHALL BE IMMEDIATELY DUE AND PAYABLE. r Dated: ~3~''7 ~'~ 7tiJ Initials of Qualified Home Buyer Section 12. Breach and Default and Enforcement. (a) Failure or delay by the Qualified Home Buyer to honor or perform any material term or provision of this Covenant Agreement shall constitute a breach under this Agreement; RVPUB\I.WADE\738948.4 - I2 - /~ /5 provided however, that if the Qualified Home Buyer commences to cure, correct or remedy the alleged breach within thirty (30) calendar days afer the date of written notice specifying such breach and shall diligently complete such cure, correction or remedy, the Qualified Home Buyer shall not be deemed to be in default hereunder. The Agency shall give the Qualified Home Buyer written notice of breach specifying the alleged breach which if uncured by the Qualified Home Buyer within thirty (30) calendar days, shall be deemed to be an event of default. Delay in giving such notice shall not constitute a waiver of any breach or event of default nor shall it change the time of breach or event of default; provided, however, the Agency shall not exercise any remedy for an event of default hereunder without first delivering the written notice of breach as specified in this Section 12 of this Covenant Agreement. Except with respect to rights and remedies expressly declared to be exclusive in this Covenant Agreement, the rights and remedies of the Agency are cumulative with any other right or power of the Agency or the City or other applicable law, and the exercise of one or more of such rights or remedies shall not preclude the exercise by the Agency at the same or different times, of any other right or remedy for the same breach or event of default. In the event that a breach of the Qualified Home Buyer may remain uncured for more than thirty (30) calendar days following written notice, as provided above, an event of default shall be deemed to have occurred. In addition to the remedial provisions of Section 4 of this Covenant Agreement as related to a Maintenance Deficiency at the New Home, upon the occurrence of any event of default the Agency shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings as follows: (i) by mandamus or other suit, action or proceeding at law or in equity, to require the Qualified Home Buyer to perform its obligations and covenants hereunder, or enjoin any acts or things which may be unlawful or in violation of the rights of the Agency; or (ii) by other action at law or in equity as necessary or convenient to enforce the obligations, covenants and agreements of the Qualified Home Buyer to the Agency. (b) No third party shall have any right or power to enforce any provision of this Covenant Agreement on behalf of the Agency or to compel the Agency to enforce any provision of this Covenant Agreement against the Qualified Home Buyer on the New Home. (c) The remedies set forth herein are in addition to and may be exercised concurrently or independently of any remedies available to the Agency pursuant to any security interest held by the Agency in the New Home. Y',i Section 13. Governing Law. This Covenant Agreement shall be governed by the laws of the State of California. s;;6 Section 14. Amendment. This Covenant Agreement may be amended after the Delivery u7 Date only by a written instrument executed by the Qualified Home Buyer (or the Successor-In- `="' Interest, as applicable) and by the Agency. The Developer shall have not any right or power to "ut t:ruv ~' RVPUa\LWADEV38948.4 - 13 - s„.~ (~ approve any such amendment to this Covenant Agreement, and the execution by the Developer of any such amendment after the Delivery Date shall not be required. Section 15. Attorney's Fees. In the event that the Agency brings an action to enforce any condition or covenant, representation or warranty in this Covenant Agreement or otherwise arising out of this Covenant Agreement, the prevailing party in such action shall be entitled to recover from the other party reasonable attorneys' fees to be fixed by the court in which a judgment is entered, as well as the costs of such suit. Section 16. Severability. If any provision of this Covenant Agreement shall be declared invalid, inoperative or unenforceable by a final judgment or decree of a court of competent jurisdiction such invalidity or unenforceability of such provision shall not affect the remaining parts of this Covenant Agreement which are hereby declared by the parties to be severable from any other part which is found by a court to be invalid or unenforceable. Section 17. Time is of the Essence. For each provision of this Covenant Agreement which states a specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed to be of the essence. Section 18. Notice. Any notice required to be given under this Covenant Agreement shall be given by the Agency or by the Qualified Home Buyer, as applicable, by personal delivery or by First Class United States mail at the addresses specified below or at such other address as may be specified in writing by the parties hereto: If to the Agency: Redevelopment Agency of the City of Arcadia Attention: Executive Director 240 West Huntington Drive Arcadia, California 91066-6021 s:d d3 If to the Qualified Home Buyer: Tichien Wu 119 East Alta Street, Unit A Arcadia, California 91006 Notice shall be deemed given five (5) calendar days after the date of mailing to the party, or, if personally delivered, when received by the Executive Director of the Agency or the Qualified Home Buyer, as applicable. IN WITNESS WHEREOF, the Developer, the Qualified Home Buyer and the Agency have caused this Covenant Agreement to be signed, acknowledged and attested on their behalf by duly authorized representatives in counterpart original copies which shall upon execution by all of the parties be deemed to be one original document. The recordation of this Covenant Agreement is authorized under Health and Safety Code Section 33413(c)(2) and 33334.3(f). [SIGNATURE ON THE FOLLOWING PAGE] RVPUB\LWADGg38948.4 - 14 - ~~ SIGNATURE PAGE TO THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA OCCUPANCY AND AFFORDABILITY COVENANTS AND RESTRICTIONS 119 EAST ALTA STREET, UNIT A, ARCADIA, CALIFORNIA QUALIFIED HOME BUYER: Dated: 03~~ I JJ By: /c- - L~ Win Tichien Wu DEVELOPER: TRADEMARK DEVELOPMENT COMPANY, LLC a California limited liability company Dated: `~ 2(o d ~ ,-- By: ' Its: AGENCY: THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA, a public body corporate and politic Dated: ~/ ~ ~ ~ ~ By: J7~/~ ~~-d.-- Donald Penman Executive Director i:`.:~ ~a lw';J U~'q ~;+ tS"t d ~~r C~~"7 '°.I Attest: Agenc ecretary APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP By: Agency Special Counsel Stephen P. Deitsch RVPUB\LWADEV38948.4 -15- ~7 /`~ SIGNATURE PAGE TO THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA OCCUPANCY AND AFFORDABILITY COVENANTS AND RESTRICTIONS 119 EAST ALTA STREET, UNIT B, ARCADIA, CALIFORNIA Dated: Dated: Dated: Attest: Agency Secretary QUALIFIED HOME BUYER By: TICHIEN WU DEVELOPER TRADEMARK DEVELOPMENT COMPANY, LLC a California limited liability company By: Its: Member AGENCY: THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA, a public body corporate and politic sy: Donald Penman Executive Director APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP ~1 By: C:P Agency Special Counsel 4Pi Stephen P. Deitsch M~ raGS C~ r,,; w.,,l ~~ ACKNOWLEDGMENT State of California County of ~`~ ~Nc-~~S On ~'~l~ ~ 2[Y~ before me, ~e~~-IN ~ rn .-i.13~nrart. ,~~~8~ tc. , A Notary Public in and for said State personally appeared 1 1 CN I E]~I l~l.~. who proved to me on the basis of satisfactory evidence to be the person(s) whose name( is/~r@ subscribed to the within instrument and acknowledged to me that he/s`h@/ihey executed the same in his/hlsdtReiC authorized capacity(ibs), and that by his/fie~t?reu'r signature(s~ on the instrument the person(sj, or the entity upon behalf of which the person(~acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. my hand and official seal. r \ .J Signature ~~--sfYf~~~ KRISTIN WARREN ~~ Comm. # 1542795 ~~ u\I '°~ ns NOTARY PUBLIC•CALIFOP,NIA V! Ccunty of Los Angeles ^ ft4y Comm. Expnes Jan. 9,2009`' (Seal) l~;o ~3J ~~ ACKNOWLEDGMENT State of California of ~5 ANC~F~S n, ~- OnN ~.-! /..4D , f~ ~ before me, Q~~~ in1 ~(~,2G~.i~~~O~Fi2~-i ~~iC, , A Notary Public in and for said State personally appeared who proved to me on the basis of satisfactory evidence to be the person( whose name( is/i3re subscribed to the within instrument and acknowledged to me that he/s'hg/they executed the same in his/h~/thbi( authorized capacity(i8~, and That by his/h~[/tAeir signature(s~,on the insUument the person(S~, or the entity upon behalf of which the person( acted, executed the instrument. under PENALTY OF PERJURY under the laws oI the State o/ California that the I paragraph is true and correct. WITNESS my hand and official seal. _~ KRISTIN WARREN Comm. # 1542795 ,n UJe`~ NOTARY PUBLIC•CAIIFORNIA V! County of loa Angeles .. My Comm. Expires Jan. 9,2009'' (Seal) tn) ~„ ~/' State of California ACKNOWLEDGMENT County of ~~~~ G~e 5 On ,/ ~~' ~(/ before me„~Sl( ///Qrl ~° ~USSCy/e~P~ , A Notary Public in and for personally ppeared ;c%/ ~,G/1 h2G who proved to me on the basis of satisfactory evidence to be the person whose name' isf~re subscribed to the within instrument and acknowledged to me that he/~/thpy executed the same in his/I~r/t~r authorized capacity(, and that by his/Ilat`/ttl¢i'r signature~'j on the instrument the person),a'J, or the entity upon behal of which the person~j acted, executed the instrument. certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 1` ^ OBI oanwirlon • 112770e ~~~ ~M C?emt. 7, 2011 (Seal) fj f"! Ufl VG 4~~ ~^,~;~ i;~ ~~a ~/ ~, ILLEGIBLE NOTARY SEAL DECLARATION Government Code Section 27361.7 I certify under penalty of perjury that the notary seal on the document to which this statement attached reads as follows: Name of Notary: Lisa Marie Mussenden Date Commission Expires: April 7. 2001 Notary Identification No: 1737305 (for Notaries commissioned at 111/92) ManufacturerNendor Identification No: NNA1 (for Notaries commissioned at 1/1/92) Place of Execution of this Declaration: Rancho Cucamonga Date:April 1, 2008 First Amer' an Title ~~-~ ~~~ ~;r s~;~ ry ~x~ ,W, t~~ r°~~ e~ ~~a EXHIBIT A TO THE REDEVELOPMENT AGENCY OF THE CITY OF ARCADIA OCCUPANCY AND AFFORDABILITY COVENANTS AND RESTRICTIONS 1 ] 9 EAST ALTA STREET, UNIT A, ARCADIA, CALIFORNIA Legal Description of the New Home i„;Y ~) C;~ tE~ t;,;. ~~'~ RVPUB\LWAIJG1738946.4 a,,~ EXHIBIiA '' LEGAL DESCRIPTION Real property in the City of Arcadia, County of Los Angeles, State of California, described as follows: PARCEL 1: UNIT NO. 104 AS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN FOR TRACT MAP NO 67480, RECORDED FEBRUARY 14, 2008 AS INSTRUMENT N0. 2008-0267938, OF OFFICIAL RECORDS OF LOS ANGELES COUNTY. PARCEL 2: AN UNDIVIDED 1/6TH INTEREST, AS TENANT IN COMMON, IN LOT 1 OF TRACT MAP NO. 67480, AS FILED IN BOOK 1341 PAGES 24 TO 26 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM UNITS 101 TO 106 INCLUSIVE AS SHOWN ON THE CONDOMINIUM PLAN REFERRED TO IN PARCEL 1. ALSO EXCEPTING AND RESERVING THEREFROM EXCLUSIVE EASEMENTS FOR PORCHES AND INCIDENTAL PURPOSE OVER THOSE AREAS SO DESIGNATED IN THE CONDOMINIUM PLAN REFERRED TO IN PARCEL 1. PARCEL 3: AN EXCLUSIVE EASEMENT FOR PORCH AND INCIDENTAL PURPOSES OVER THAT/THOSE SPACE(S) DESIGNATED IN THE CONDOMINIUM PLAN REFERRED TO IN PARCEL 1 AS P-104. (Commonly known as: 119 E. ALTA STREET, UNIT A, ARCADIA CA) r) 4ti L~ U'I ^t8 1~J ~W S% +.11