RESIDENTIAL REHABILITATION PROGRAM
SINGLE-FAMILY OWNER-OCCUPIED
DEFERRED REHABILITATION LOAN (CDBG Program—RRP, Major Loan)
DISCLOSURE STATEMENT
I/we _______________________________ [Insert Name(s) and vesting information] (“Participant”) understand and agree that the provision of financial assistance from the City of Anaheim (“City”) under City’s SINGLE-FAMILY OWNER -OCCUPIED DEFERRED REHABILITATION LOAN (CDBG Program, Major Loan) (“RRP” or “Program”) is conditional on a number of factors, including, but not limited to:
• I/we must own and occupy continuously my/our home as my/our principal residence within the City of Anaheim.
• I/we must enter into one or more Rehabilitation Contract(s) with Program Administrator for the perfor mance of the Rehabilitation work at my/our Property, all as acceptable to and approved by City.
• I/we must pay all costs of such Rehabilitation that exceed the amount of the City Loan from my/our own funds.
• I/we must qualify for assistance under the RRP Policies and Procedures.
I/we further understand and agree that:
• I/we will be responsible for repaying the Note Amount of the Promissory Note in the Event of Default that occurs prior to the Maturity Date. The Promissory Note will bear three percent (3%) simple interest.
• The Promissory Note is immediately due and payable in full upon the occurrence of an Event of Default that occurs prior to the Maturity Date as described in the Loan Agreement and Promissory Note.
• Unless payment sooner becomes due under the provisions of the Agreement, the Note and the Deed of Trust, then I/we will make payment to City of the full balance of all amounts payable under the Promissory Note (including without limitation the Note Amount) on the thirtieth (30th) anniversary of the e xecution of the Promissory Note; such thirtieth (30 th) anniversary date constitutes the “Maturity Date.”
• I/we have a right to cancel or rescind this City Loan at any time prior to midnight on the third (3rd) business day after the Loan Agreement is signed by sending a notice of my/our decision to rescind or cancel the City Loan to:
City of Anaheim
201 South Anaheim Boulevard, Suite 1003
Anaheim, California 92805
Attention: Community Development Director
RRP/Program Disclosure
• During the thirty (30)-year term of the City Loan and until the Maturity Date, I/we intend to and shall continuously own and occupy the Property as my/our principal and primary personal residence; I/we shall not rent or lease the Property, any room in my/our home or any part of the Property, to another any other person, household or entity. • I/we understand the City Loan will be accelerated and due in full if prior to the Maturity Date I/we refinance the City Loan or the lien or liens to which the City’s Deed of Trust is subordinate to secure a loan with a prin cipal amount which is greater than the then current principal amount of such liens, plus non-recurring costs of refinancing. • I/we agree and understand that the City Loan is not assumable without the prior written approval of City, which City may grant, deny, or conditionally grant at its sole discretion. • I/we understand that I/we cannot use the Property as a short-term rental unit or vacation rental, such as AirBnB and I/we cannot rent out any room or any part of my/our Property to a third party.
• I/we under stand that if I/we make any improvements to the Property we must and shall comply with all applicable Uniform Codes, laws and regulations including as required including obtaining building and other permits from issuance through final inspection. • City shall not be held responsible for ineligible costs associated with the assistance received from City including, but not limited to, recurring loan fees, refinance fees, payoff of consumer debt, as determined and listed ineligible for payment under the Program and the CDBG Program.
• City cannot ensure that information provided by or on my/our behalf will be kept confidential.
• City shall not be responsible for the selection of any Contractor or for monitoring or ensuring that the Rehabilitation work is performed i n accordance with the approved Scope of Work and all applicable laws, rules, and regulations.
• City shall not be responsible for providing me/us with information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether I/we will inform myself/ourselves as to the availability and terms of other public or private loans. • City shall not be charged with the knowledge of the contents of the documents relating to other loans secured by my/our Property.
(signatures on following page)
RRP/Program Disclosure
PARTICIPANT
By:
Printed Name:
Date:
By:
Printed Name:
Date:
E-2-1
EXHIBIT E-2
Owner Disclosure-Regulation Z
for Minor Loan
RRP/Program Disclosure
RESIDENTIAL REHABILITATION PROGRAM
SINGLE-FAMILY OWNER-OCCUPIED
DEFERRED REHABILITATION LOAN (CDBG Program—RRP, Minor Loan)
DISCLOSURE STATEMENT
I/we _______________________________ [Insert Name(s) and vesting information] (“Participant”) understand and agree that the provision of financial assistance from the City of Anaheim (“City”) under City’s SINGLE -FAMILY OWNER -OCCUPIED DEFERRED REHABILITATION LOAN (CDBG Program, Minor Loan) (“RRP” or “Program”) is conditional on a number of factors, including, but not limited to:
• I/we must own and occupy continuously my/our home as my/our principal residence within the City of Anaheim.
• I/we must enter into one or more Rehabilitation Contract(s) with Program Administrator for the performance of the Rehabilitation work at my/our Property, all as acceptable to and approved by City.
• I/we must pay all costs of such Rehabilitation that exceed the amount of the City Loan from my/our own funds.
• I/we must qualify for assistance under the RRP Policies and Procedures.
I/we further understand and agree that:
• I/we will be responsible for repaying the Note Amount of the Promissory Note in the Event of Default that occurs prior to the Maturity Date. The Promissory Note will bear zero percent (0%) simple interest.
• The Promissory Note is immediately due and payable in full upon the occurrence of an Event of Default that occurs prior to the Maturity Date as described in the Loan Agreement and Promissory Note.
• If I/we fully comply with the Agreement, the Note and the Deed of Trust, then upon the Maturity Date (the date that is ten (10) years after my/our signing the Promissory Note) then the Note will be forgiven and we do not have to repay the City Loan. • I/we have a right to cancel or rescind this City Loan at any time prior to midnight on the third (3
rd) business day after the Loan Agreement is signed by sending a notice of my/our decision to rescind or cancel the City Loan to:
City of Anaheim
201 South Anaheim Boulevard, Suite 1003
Anaheim, California 92805
Attention: Community Development Director
RRP/Program Disclosure
• During the ten (10)-year term of the City Loan and until the 10-year Maturity Date, I/we intend to and shall continuously own and occupy the Property as my/our principal and primary personal residence; I/we sha ll not rent or lease the Property, any room in my/our home or any part of the Property, to another any other person, household or entity. • I/we understand the City Loan will be accelerated and due in full if prior to the 10-year Maturity Date I/we refinance the City Loan or the lien or liens to which the City’s Deed of Trust is subordinate to secure a loan with a principal amount which is greater than the then current principal amount of such liens, plus non-recurring costs of refinancing. • I/we understand that I/we cannot use the Property as a short -term rental unit or vacation rental, such as AirBnB and I/we cannot rent out any room or any part of my/our Property to a third party.
• I/we understand that if I/we make any improvements to the Property we must and shall comply with all applicable Uniform Codes, laws and regulations including as required including obtaining building and other permits from issuance through final inspection. • City shall not be held responsible for ineligible costs associated with the a ssistance received from City including, but not limited to, recurring loan fees, refinance fees, payoff of consumer debt, as determined and listed ineligible for payment under the Program and the CDBG Program.
• City cannot ensure that information provided by or on my/our behalf will be kept confidential.
• City shall not be responsible for the selection of any Contractor or for monitoring or ensuring that the Rehabilitation work is performed in accordance with the approved Scope of Work and all applicable laws, rules, and regulations.
• City shall not be responsible for providing me/us with information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether I/ we will inform myself/ourselves as to the availability and terms of other public or private loans. • City shall not be charged with the knowledge of the contents of the documents relating to other loans secured by my/our Property.
PARTICIPANT
By:
Printed Name:
Date:
By:
Printed Name:
Date:
F-1-1
EXHIBIT F-1
Loan Disclosure Statement - Major Loan
BUYER DISCLOSURE
Regulation Z
SINGLE-FAMILY OWNER-OCCUPIED DEFERRED REHABILITATION LOAN (CDBG Program Residential Rehabilitation Program—RRP, Major Loan)
BUYER DISCLOSURE
Regulation Z
Creditor: CITY OF ANAHEIM
201 South Anaheim Boulevard, Suite 1003
Anaheim, California 92805
Borrower: _________________________ [Insert Name(s) and Vesting Information] Itemization of Amount Financed: You have the right to receive at this time an itemization of the Amount Financed.
[ ] I want an itemization. [ ] I do not want an itemization.
CREDITOR’S TRUTH-IN-LENDING TO CONSUMERS (FEDERAL DISCLOSURE BOX)
ANNUAL
PERCENTAGE
RATE*
FINANCE
CHARGE AMOUNT FINANCED
TOTAL OF
PAYMENTS
The cost of my credit
as a yearly rate.
The dollar amount
my credit will cost
me.
The amount of credit
provided to me or on
my behalf.
The amount I will
have paid after I have
made all payments as
scheduled.
3% simple interest $0 $_________.00 $_________.00
* If during the 30-year term of the City Loan (i.e., prior to the Maturity Date of the Note) there is an Event of Default, including if you refinance your first lien mortgage loan, if you fail to occupy the real property securing this loan as your princip al residence, if you sell or transfer the real property securing this loan or you commit any o ther Event of Default, in violation of the Rehabilitation Loan Agreement Single -Family Owner -Occupied Deferred Rehabilitation Loan (CDBG Program, Major Loan)) dated __________, 202__ (“Agreement”), the full amount of the City Loan, together with accrued interest, if any, will be due. Prepayment of your loan in part or in whole may be made at any time without penalty. Please see loan documentation for specific details. If the City Loan has not been repaid by the thirtieth (30 th) anniversary of t he origination of the City Loan (which thirtieth (30th) anniversary constitutes the “Maturity Date”), the entire amount due under the City Note (including without limitation the City Loan) shall be payable to the City.
BUYER DISCLOSURE
Regulation Z
Your Payment Schedule Will Be:
Number of
Payments
Amount of
Payments When Payments are Due
One (1) $_________.00
(Loan Amount, plus
3% interest)
On the Maturity Date (which is
the thirtieth anniversary of the
date the City Loan is made), or
sooner upon the occurrence of
an Event of Default under the
Rehabilitation Loan Agreement
prior to the Maturity Date,
including without limitation if
there is a (i) sale, (ii) transfer,
(iii) refinancing of your first
mortgage loan that increases
the amount of encumbrance
against the Property, (iv) you
no longer occupy the Property
as your principle residence in
violation the Loan Agreement,
(v) you are in default under the
Agreement or the Promissory
Note prior to the Maturity Date.
Property Insurance: You must obtain property insurance in an amount equal to the full replacement value of the structures on the Property and name the City of Anaheim, a California municipal corporation, as a loss payee.
Security: You are giving a security interest in the real property you own by recording of the Deed of Trust for such Property, which is located at ___________________________, Anaheim, California _________.
Amount of City Loan: $_________.00
Term of City Loan: Thirty (30) years; due on Event of Default and if in full compliance with the Loan Agreement the City Loan will be forgiven at the Maturity Date.
Filing Fees: $ 0 Non-Filing Insurance: $ 0
Prepayment: Prepayment of your loan in part or in whole may be made at any time without penalty.
If you pay off early, you
[X] may [ ] may not have to pay the full principal amount of the Note and all other amounts due under the Note.
Interest Rate: The City Loan has a base interest rate that is:
[X] fixed at three percent 3% per year
[ ] variable. Disclosures about the variable-rate feature were previously provided to you.
BUYER DISCLOSURE
Regulation Z
Assumption: Someone buying your house
[ ] may, subject to conditions, be allowed to assume the remainder of the mortgage on the original terms.
[X] cannot assume all or any part of the Promissory Note evidencing the City Loan.
Demand Feature: These obligations
[ ] have a demand feature
[X] have no demand feature
See your City Loan documents for any additional information about the terms for the provision of the City Loan, and default requirements, and any required repayment in full before the scheduled date.
ITEMIZATION OF THE AMOUNT FINANCED OF $_________.00
$0.00 Amount given to you directly
$_________.00 Amount paid on your behalf to the Contractor performing the Rehabilitation of the Property located at ___________________________________.
Amount paid to others on your behalf:
$_________.00 to the Contractor
$ 0 to (name of another creditor)
$ 0 to (other)
$ 0 prepaid finance charge
I have carefully reviewed this Regulation Z Buyer Disclosure, consisting of 3 pages including this signature page.
PARTICIPANT
By:
Printed Name:
Date:
By:
Printed Name:
Date:
F-2-1
EXHIBIT F-2
Loan Disclosure Statement – Minor Loan
BUYER DISCLOSURE
Regulation Z
SINGLE-FAMILY OWNER-OCCUPIED DEFERRED REHABILITATION LOAN (CDBG Program Residential Rehabilitation Program—RRP, Minor Loan)
BUYER DISCLOSURE
Regulation Z
Creditor: CITY OF ANAHEIM
201 South Anaheim Boulevard, Suite 1003
Anaheim, California 92805
Borrower: _________________________ [Insert Name(s) and Vesting Information] Itemization of Amount Financed: You have the right to receive at this time an itemization of the Amount Financed.
[ ] I want an itemization. [ ] I do not want an itemization.
CREDITOR’S TRUTH-IN-LENDING TO CONSUMERS (FEDERAL DISCLOSURE BOX)
ANNUAL
PERCENTAGE
RATE*
FINANCE
CHARGE AMOUNT FINANCED
TOTAL OF
PAYMENTS
The cost of my credit
as a yearly rate.
The dollar amount
my credit will cost
me.
The amount of credit
provided to me or on
my behalf.
The amount I will
have paid after I have
made all payments as
scheduled.
0% simple interest $0 $_________.00 $_________.00
* If during the 10-year term of the City Loan (i.e., prior to the Maturity Date of the Note) there is an Event of Default, including if you refinance your first lien mortgage loan, if you fail to occupy the real property securing this loan as your princip al residence, if you sell or transfer the real property securing this loan or you commit any o ther Event of Default, in violation of the Rehabilitation Loan Agreement Single -Family Owner -Occupied Deferred Rehabilitation Loan (CDBG Program, Minor Loan)) dated __________, 202__ (“Agreement”), the full amount of the City Loan, together with accrued in terest, if any, will be due. Prepayment of your loan in part or in whole may be made at any time without penalty. Please see loan documentation for specific details.
BUYER DISCLOSURE
Regulation Z
Your Payment Schedule Will Be:
Number of
Payments
Amount of
Payments When Payments are Due
One (1) $_________.00
(Loan Amount, plus
0% interest)
On the occurrence of an Event
of Default under the
Rehabilitation Loan Agreement
prior to the Maturity Date,
including without limitation if
there is a (i) sale, (ii) transfer,
(iii) refinancing of your first
mortgage loan that increases
the amount of encumbrance
against the Property, (iv) you
no longer occupy the Property
as your principle residence in
violation the Loan Agreement,
(v) you are in default under the
Agreement or the Promissory
Note prior to the 10-year
Maturity Date.
Property Insurance: You must obtain property insurance in an amount equal to the full replacement value of the structures on the Property and name the City of Anaheim, a California municipal corporation, as a loss payee.
Security: You are giving a security interest in the real property you own by recording of the Deed of Trust for such Property, which is located at ___________________________, Anaheim, California _________.
Amount of City Loan: $_________.00
Term of City Loan: Ten (10) years; due on Event of Default and if in full compliance with the Loan Agreement the City Loan will be forgiven at the Maturity Date.
Filing Fees: $ 0 Non-Filing Insurance: $ 0
Prepayment: Prepayment of your loan in part or in whole may be made at any time without penalty.
If you pay off early, you
[X] may [ ] may not have to pay the full principal amount of the Note and all other amounts due under the Note.
Interest Rate: The City Loan has a base interest rate that is:
[X] fixed at zero percent 0% per year
[ ] variable. Disclosures about the variable-rate feature were previously provided to you.
BUYER DISCLOSURE
Regulation Z
Assumption: Someone buying your house
[ ] may, subject to conditions, be allowed to assume the remainder of the mortgage on the original terms.
[X] cannot assume all or any part of the Promissory Note evidencing the City Loan.
Demand Feature: These obligations
[ ] have a demand feature
[X] have no demand feature
See your City Loan documents for any additional information about the terms for the provision of the City Loan, and default requirements, and any required repayment in full before the scheduled date.
ITEMIZATION OF THE AMOUNT FINANCED OF $_________.00
$0.00 Amount given to you directly
$_________.00 Amount paid on your behalf to the Contractor performing the Rehabilitation of the Property located at ___________________________________.
Amount paid to others on your behalf:
$_________.00 to the Contractor
$ 0 to (name of another creditor)
$ 0 to (other)
$ 0 prepaid finance charge
I have carefully reviewed this Regulation Z Buyer Disclosure, consisting of 3 pages including this signature page.
PARTICIPANT
By:
Printed Name:
Date:
By:
Printed Name:
Date:
G-1
EXHIBIT G
Request for Notice
for City Loan
Request for Notice
Recording Requested By and
When Recorded Mail To:
City of Anaheim
201 South Anaheim Boulevard, Suite 1003
Anaheim, California 92805
Attention: Dir. of Community Development
(Space above this line for Recorder’s Use Only)
This document is exempt from the payment of a
recording fee pursuant to Government Code
Sections 6103 and 27383.
Request for Notice under Civil Code Section 2924b
(City of Anaheim RRP Program)
In accordance with Section 2924b of the Civil Code, request is hereby made that a copy of a
ny Notice of Default and a copy of any Notice of Sale under the Deed of Trust recorded as Instrument No. _____ on _____________, 202___, in Book ______, Page , Official Records of Orange County, California, and describing land therein as [See Attachment No. 1 attached hereto]
e
xecuted by _______________________________________________________________ [INSERT NAME(S) AND VESTING INFORMATION] , collectively, as Trustor, in which the ______________________ _________________________, is named as Beneficiary, and _____________________________________ is named as Trustee, be mailed to City of Anaheim, 201 South Anaheim Boulevard, Suite 1003, Anaheim, California 92805, Attention: Community Development Director
NOTICE: A COPY OF ANY NOTICE OF DEFAULT AND OF ANY NOTICE OF
SALE WILL BE SENT ONLY TO THE ADDRESS CONTAINED IN THIS RECORDED REQUEST. IF YOUR ADDRESS CHANGES, A NEW REQUEST MUST BE RECORDED.
CITY OF ANAHEIM, a charter city and municipal
corporation of the State of California
By:
Director of Housing & Community
Development or Authorized Designee
A
TTEST:
By:
City Clerk
Request for Notice
APPROVED AS TO FORM:
S
TRADLING YOCCA CARLSON & RAUTH
Special Counsel to the City
A
ttachment No. 1
Legal Description
ATTACHMENT NO. 1
LEGAL DESCRIPTION
Real property in the City of Anaheim, County of Orange, State of California, described as follows:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA )
) ss.
COUNTY OF _________________________ )
On ___________________ before me, ____________________________________, Notary Public, personally appeared _____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instru ment 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.
I 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 OF NOTARY PUBLIC
H-1
EXHIBIT H
Owner/Contractor Agreement
for City Loans and City Grants
City of Anaheim – Residential Rehabilitation Program CDBG Program Loan No.:
O
WNER/CONTRACTOR AGREEMENT
by and between
HABITAT FOR HUMANITY OF ORANGE COUNTY, INC., a non-profit corporation and
______________________________________________________________ D
ated as of
_______________________, 20__
O
WNER/CONTRACTOR AGREEMENT
ANAHEIM RESIDENTIAL REHABILITATION PROGRAM (RRP)
This OWNER/CONTRACTOR AGREEMENT ANAHEIM RESIDENTIAL
REHABILITATION PROGRAM (RRP) (“ Agreement”) is entered into as of this ____day of _______, 20__ between HABITAT FOR HUMANITY OF ORANGE COUNTY, INC. (“Habitat”), a California nonprofit corporation with an address of 2200 Ritchey Street, Santa Ana, CA 92705, and [Insert Owner/Participant(s) Name(s) and Full Vesting] (“Owner”).
RECITALS
A. The City of Anaheim is a California municipal corporation and charter city ( “City”).
Th
e City receives certain federal funds ( “CDBG Funds ”) from the United States Department of Housing and Urban Development (“ HUD”) under the Community Development Block Grant (“CDBG”) Program. Information about the CDBG Program and Regulations are found at:
http://www.hud.gov/offices/cpd/communitydevelopment/programs/entitlement/index.cfm B. The CDBG Program authorizes the City to finance the rehabilitation of privately owned, single-family homes and appurtenant improvements with CDBG Funds in furtherance of the CDBG Program’s objective to expand and improve the supply of affordable housing for low income persons and families.
C. Under this authority and in furtherance of the City’s affordable housing goals, the City has established a Residential Rehabilitation Program, Single Family Owner Occupied Deferred Rehabilitation Loan Program (CDBG Funds) (“RRP” or “Program” ) to provide financial assistance for “ Rehabilitation” improvements to eligible single -family owner-occupied homes. The CDBG Program authorizes financial assistance to eligible Low Income owners/borrowers through deferred loan to rehabilitate existing housing.
D. City and Habitat are parties to that certain Community Development Block Grant Subrecipient Agreement dated as of July 1, 2016 (“ CDBG Agreement ”) under which the City is providing CDBG Funds to Habitat to administer and operate the RRP.
E. Owner has applied to and been approved for participation in the RRP. Owner is a Low Income Household and the fee owner of, and its principal residence is, certain real property improved with a singl e-family house, condominium or townhome (“home” ) located at _________________________________________, Anaheim, California (“Property”.) F. Owner and City have entered into that certain Rehabilitation Loan Agreement, Single-Family Owner Occupied Deferred Rehabilitation Loan (CDBG Program) (“Loan Agreement”) under which the City is providing a City Loan to Owner for the Rehabilitation of the Property. Owner is referred to as “Participant” or “Borrower” in the Loan Agreement, but is referred to as Owner under this Agreement between Owner and Habitat.
G. In keeping with its mission to provide decent, affordable housing for qualified families in Orange County, Habitat entered into the CDBG Agreement with the City to administer the RRP so qualified persons and families can participate in the Program. 2 H. Th
is Agreement is a contract between Habitat and the Owner under which Habitat w
ill commence and complete the Rehabilitation at the Property as described in the Scope of Work, Exhibit A to this Agreement, which is fully incorporated by this reference ( “Scope of Work” ) and includes the “work write-up” described in the Loan Agreement (together, “Rehabilitation”).
I. Habitat, as the RRP Program Administrator, will cause the Rehabilitation work at the Property by expending the proceeds of the Owner ’s City Loan as set forth in this Agreement and the Loan Agreement.
J. Habitat shall expend the proceeds of the City Loan, first, to cause the assessment, and if necessary, reduction and clearance using Safe Work Practices, of the LBP and/or LBP Hazards , if any, at the Property as found in an inspection and assessment already completed at the Property (together, “LBP Assistance”).
K. Then, subject to the completion of the LBP Assistance, Habitat shall expend the balance of the City Loan proceeds (but not more than such loan amount) to undertake and complete the Scope of Work to rehabilitate the Property.
L. Habitat as Program Administrator under the CDBG Agreement will cooperate and coordinate with the City in carrying out the RRP and Loan Agreement with the Owner for the Rehabilitation of the Property.
M. Unless the context clearly otherwise requires, all capitalized term used herein, and not otherwise defined herein, shall have the meaning set forth in the Loan Agreement.
AGREEMENT
NOW, THEREFORE, for good and valuable consideration Habitat and Owner agree as follows:
1. R ehabilitation Work to be Performed on the Property.
1.1 Scope of Work. Owner acknowledges she/he has reviewed and approved the description of the Scope of Work described in Exhibit A. Owner understands that there is not a guarantee that the full Scope of Work and Materials Selection and Approval (together, “ Materials Approval”) will be completed as Owner acknowledges the maximum amount of funding for the work is the balance of the loan proceeds of the City Loan.
1.2 No Future Work . Owner understands that Habitat (nor the City) is not undertaking and will not perform any ongoing maintenance of the Property. Future maintenance and upkeep of the Property is the sole legal and financial responsibility of Owner and never Habitat (or the City).
1.3 Certificate of Completion. Upon completion of the Scope of Work, Habitat and Owner w ill conduct a final walk-through of Property and agrees to sign a Certificate of Completion in the form attached and incorporated as Exhibit B to this Agreement. Habitat agrees that building permit(s) inspection sign-off(s) obtained for each and all parts of the Scope of Work will be submitted with lien release from all subcontractors, as applicable (refer to Exhibit B). 3 2. Sc hedule and Time for Commencement and Completion of the Scope of Work of the Rehabilitation. Habitat will commence work on the Rehabilitation within thirty (30) days after the date of this Agreement. Habitat will complete the construction and all work described in the Scope of Work, unconditionally free of liens or rights of liens of contractors and subcontractor, mechanics liens, materialmen or laborers liens, within _________ (__) calendar days after the commencing the work of Rehabilitation, subject to excusable delays that are beyond the reas onable and/or foreseeable control of Habitat or Owner.
2.1 H
abitat will cooperate with Owner to prepare an estimated time schedule relating to undertaking and completing the Rehabilitation , and Owner will make the Property available for performance of work at the Property on the days required by the schedule. Subject to confirmation of the w ork schedule and subject to the excusable delays described above, such as inclement weather or other unforeseen events , Habitat shall use best efforts to commence the Rehabilitation by ______, 20__ and to complete the work by ________, 20__ (“Schedule”).
3. S weat Equity. Owner and any additional able -bodied adults(s) (18 years or older) residing at the Property agree to contribute at least ____ [Insert Number of Hours] total hours to the Rehabilitation (“ Sweat Equity ”). Owner acknowledges that Sweat Equity is a requirement of t he Program and that no compensation will be paid to Owner or others for performance of Sweat Equity under any circumstances, including any termination of this Agreement under Section 8.
3.1 If O wner and the household members cannot complete the required Sweat Equity hours due to physical incapability or other conditions, then reasonable accommodation will be afforded to Owner by Habitat; for example, Owner and any of the household members may perform the following types of alternative Sweat Equity: (i) being present during the time any w ork is being conducted by Habitat, (ii) write a testimony or article for public information and dissemination through Habitat’s public relations staff, (iii) conduct interview with Habitat ’s public relations staff to promote program, etc.
4. Wi lling to Partner .
4.1 Cooperation and Understanding of Owner . Owner agrees that they will cooperate with Habitat and understands that delays may occur and affect completing the Rehabilitation and Schedule. Owner is responsible for putting away all valuables in a secured area during time of any work being performed. Owner expressly acknowledges and agrees that neither Habitat and its officers, directors, employees, agents, or volunteers, nor the City and its elected and appointed officials, officers, directors, employees, agents, or volunteers, shall be responsible or liable financially or under the law for valuables and all and any other personal property and any and all persons on, at or about the Property during the entire course of work and implementation of this Agreement.
4.2 Program Parameters . Owner has read and understands the Program Guidelines, the Loan Agreement and related instruments Owner was provided and/or executed relating to Owner’s participation in the Program and implementation of this Agreement (together, “Program Parameters”). Owner informs Habitat that Owner agrees to the Program Parameters.
4.2.1 Drought Resistant Landscaping . In order to be environmentally friendly and cost effective, Owner agrees that if landscaping is part of the Rehabilitation, only drought resistant landscaping will be installed.
4 4.2.2
Condition and Title of Property Prior to Owner Agreement. To the best knowledge of Owner , after due and reasonable investigation, Owner does not have any illegal additions to the area(s) where any of the Scope of Work will be performed and there are no liens on the Property other than the first lien purchase money mortgage and other lien or liens, if any, expressly approved in writing by Habitat and the City in connection with Owner entering into and signing the Loan Agreement.
4.2.3 Volunteers and Site Specific Liability Forms. Owner agrees that volunteers under the direction of Habitat may be used to perform certain work in completing the Rehabilitation, such as landscaping or painting. Habitat’s volunteers will sign an appropriate release and waiver agreement attached as Exhibit C to this Agreement. This form states that each and all Habitat volunteers will assume all risk of participating in the Rehabilitation on the Property (refer to Exhibit C).
5. Pri ce and Payment . The total estimated price for performance of the Scope of Work, including all labor, materials, and other charges under this Agreement is ______________ dollars ($__________) (“ Project Cost”). Owner and Habitat expressly acknowledges that no work outside the Scope of Work shall be undertaken or completed at the Property during the term of this Agreement unless there is an approved amendment in accordance to Section 12.2.1.
5.1 P ayment. The only payment to be made by the Owner directly to Habitat is the financial contribution of _______ dollars ($_____) (minimum is $100) to be applied to the Owner’s own project costs. This financial contribution must be provided prior to commencement of the Scope of Work.
6. H abitat Warranties . For a period of one (1) year after the execution of the Certificate of Completion, Habitat will correct, at its own expense, any defect in the Rehabilitation work completed due to defective materials and/or workmanship. Owner will give Habitat written notice of any such defects promptly after discovery and, in any event, prior to expiration of the one (1)-year warranty period. This warranty does not cover loss or damage to personal property; loss or damage resulting from Owner’s failure to promptly notify Habitat of a problem; or normal wear and tear. Habitat will convey to Owner any warranties by manufactures or suppliers on individual materials, products or systems supplied by Habitat under this Agreement. This one -year warranty is further described on Exhibit F attached and incorporated by this reference.
7. Right to Entry. Own
er understands that a substantial portion of the Rehabilitation will be performed within Owner’s personal residence. Accordingly, Owner agrees that Habitat and its agents, subcontractors, employees, volunteers (as well as any representatives of the City) may have access to the interior of the Property for the purpose of: (i) inspecting, measuring, and gathering information related to the Rehabilitation; (ii) installing, implementing, construction, or otherwise performing activities related to the Rehabilitation ; and (iii) performing any other such actions as are reasonably contemplated by the Program and this Agreement.
8. Te rmination of Agre ement. Habitat’s acceptance of Owner as a Habitat partner was based on the information contained in Owner ’s application to the RRP. Habitat reserves the right to terminate this Agreement (i) if Habitat (or the City) determines that the information conta ined in Owner’s RRP application was materially inaccurate , (ii) if any of Owner’s obligations under the Loan Agreement , its related instruments and this Agreement are not fulfilled, including the requirements under Section 3, Section 4, or Section 5 of this Agreement. 5 9. Li mitation of Liability. Neither Habitat nor any of its agents, subcontractors, directors, employees, officers, suppliers, volunteers or other representatives (nor the City and its elected and appointed officials, officers, directors, employees, volunteers and agents) shall have any liability or responsibility, legally or financially, for damages of any kind or nature, loss, or injury of any kind or nature, direct or indirect, to any person or to any property in any way or manner or any action or inaction caused by or resulting from the performance of the Rehabilitation in connection to this Agreement, except as caused by the negligence or willful misconduct of Habitat or any of Habitat’s above-designed persons, or except as caused by the sole negligence or willful misconduct of the City or any of the City’s above -designed persons . Without limiting the generality of the foregoing, to the extent that Habitat (or a City) is found liable for property damage to the Property in accordance with this Section 9, Habitat (not City) shall compensate Owner only for the reasonable documented cost of necessary repairs.
10. Disputes. In the event that any dispute(s) between Habitat and Owner arise out of or in connection with provisions or performance or no -performance if this Agreement, either one, or both, shall submit in writing that fact and nature of such dispute(s) to the City.
10.1 A rbitration . Within thirty (30) days of such notice, Habitat and Owner shall either resolve the dispute or shall seek a resolution of the dispute pursuant to California Code of Civil Procedure, Section 1280, et seq.
11. Med
ia Release. Owner grants and conveys in perpetuity to Habitat all right, title, and interest in any and al l photographic images, printed interviews or statements, including information regarding the past or current living conditions and biographical information, and video or audio recordings made by Habitat and/or its agents, City, contractors, directors, empl oyees, officers, volunteers, and other representatives in the course of performing the Rehabilitation , including, but not limited to, any royalties, proceeds or other benefits derived from such photographs, printed materials or recordings.
12. General Provisions
.
12.1 Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, or unforeseeable, the validity, legality, and enforceability of the remaining provisions of this Agreement shall not in any way be affected or impaired.
12.2 Amendment of Agreement.
12.2.1 Change Order . There may be circumstances, foreseen or unforeseen, that may affect the Rehabilitation and cause a delay in the Schedule, including, but not limited to, unforeseen events, emergency repairs, and weather. Any changes to this Agreement must be documented with a Change Order form attached and incorporated as Exhibit D to this Agreement.
It must be approved of by Owner , Habitat, and City prior to the change being enforced. Habitat will make all efforts to complete the job as soon as practically possible (refer to Exhibit D).
12.3 Entire Agreement. This is a legally binding contract. This Agreement contains the entire agreement between Habitat and Owner and supersedes any and all prior oral or written statements or agreements regarding the subject matter of this Agreement. There are no promises, agreements, conditions, undertakings, warranties or representations, oral or written, express or implied, between the parties, other than as set forth in this Agreement. This Agreement
6 may only be changed by a written agreement signed by Owner and Habitat in accordance to Section 12.2.1. Owner may not assign its rights under this Agreement.
12.4 Cancellation of Services . Owner may cancel this Agreement at any time prior to midnight of the third busine ss day after the date of this Agreement. See Exhibit E, attached and incorporated herein, that is the notice of cancellation form for an explanation of this right (refer to Exhibit E).
13. Permits and Codes. Habitat shall perform all work under this Agreement in conformance with the Anaheim Municipal Code, the CDBG Program, the LBP Regs, and all other applicable laws, ordinances, regulations, and orders whether or not such applicable laws, ordinances, regulations and orders are specified in this Agreement or the attachments hereto. Habitat will work with Owner to secure and pay for (from City Loan proceeds) all necessary permits and licenses or other approvals necessary for the construction and completion of the Scope of Work. In performance of this Agreement, Habitat and Owner shall comply with applicable federal, state and local laws, regulations and requirements, including but not limited to local uniform building and housing codes, whether or not specified in the Scope of Work or the Schedule.
14. C
ondition of Premises . Habitat will keep the premises broom clean and orderly and to remove all debris as needed during the course of the work and upon completion of the work in order to maintain work conditions, which do not cause health or safety hazards.
15. P
arties to Contract. Habitat and Owner agree that they are the parties to this Agreement and are solely responsible for its performance. The parties agree that neither the City, nor HUD or any of their respective agents, officers or employees assumes any liability or responsibility, legally or financially, whatsoever arising out this Agreement.
16. Inspe
ction. The United States Government (HUD), the City, and their designees shall have the right to inspect all work performed under this Agreement. Habitat and Owner will take all steps necessary to assure that HUD, the City or their designees are permitted to examine and inspect the Property, and all contracts, if any, materials, equipment, payrolls, and conditions of employment pertaining to the work, including all relevant date and records. By such inspection, HUD and the City assume no responsibility to Owner for defective material or work under this Agreement or to either party for any breach of this Agreement by the other. However, City may determine whether or not work by Habitat on the work of improvements to the Property is in compliance with the Scope of Work. City may determine the adequacy of Habitat ’s methods, plans and appurtenances and make such directions relative to sufficiency of forces as may be reasonably necessary to insure property and continuous execution of work. City may stop the work under this Agreement, if reasonably necessary, and may determine the amount, equality, and fitness of the several kinds of work and materials. City may reject all work and materials, which do not conform to the requirements of the Agreement, or the Scope of Work. All instructions, rulings, and decisions of City shall be binding on Habitat and Owner when delivere d or mailed to Owner or Habitat in writing.
Owner and Habitat shall make every effort to resolve disagreements. In cases that cannot be resolved between Owner and Habitat, the City shall make a decision and determination on the disagreement. Owner and Habitat each affirms, and independently and expressly agrees, that each will and shall abide by such decision of the City. Owner and Habitat reciprocally agree each shall
7 not and will not seek any claim or remedy against the City or the other party if it does not concur with such decision.
17. Interest of Federal or City Personnel. Habitat agrees to comply with the conflict of interest provisions in 24 CFR 85.36, 24 CFR 84.42, and Section 92.356 of the CDBG Program.
Habitat agrees that none of the following shall have any interest or benefit, direct or indirect, in this Agreement:
(a) Any officer or employee of the City who exercises any function or responsibility in connection with administration of the Program, or any member of the governing body of the City. (b) Any member of the governing body of the locality (24 CFR 510.4(m)). (c) Any member of or delegate to the Congress of the United States. (d) Any Resident Commissioner.
(e) Any person employed by HUD at a grade level of G-9 or above.
18. Non-Discrimination and Equal Opportunity . Habitat agrees to comply with the applicable CDBG Program nondiscrimination and equal opportunity requirements. Further, Habitat shall abide by all other federal, state or local laws and regulations, relative to equal opportunity to all persons, without discrimination as to race, color, creed, religion, national origin, sex, gender, gender identify, gender expression, sexual orientation, marital status, ancestry, familial status, age, and status with regard to public assistance or disability. On agreements of $10,000 or more, Habitat shall abide by the applicable federal regulations, including the following language in its subcontracts, if any, as follows, as and IF applicable to Habitat’s performance under this Agreement:
(a) Habitat shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. Habitat shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
(b) Habitat shall, in all solicitations or advertisements for employees placed on behalf of Habitat, state that all qualified applicants will receive consideration for employment without regard to their race, color, religion, sex, or national origin. (c) Habitat shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided, advising the said labor union or workers’ representative of Habitat’s commitments under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
(d) Habitat shall furnish all information and reports required by HUD and shall permit access to its books, records, and accounts by HUD for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
8 (e) In the event Habitat fails to comply with the nondiscrimination clauses of the Agreement or with any of the said rules, regulations, or orders, this Agreement may be canceled, terminated, or suspended in whole or in part and Habitat may be declared ineligible for further government contracts or federally assisted construction contracts in accordance with procedures set forth in applicable federal regulations, and such other sanctions may be imposed and remedies invoked as provided rules, regulations or orders of HUD, or as otherwise provided by law. (f) Habitat shall include the portion of the sentence immediately preceding paragraph (a) and the provisions of paragraphs (a) through (g) in every subcontract or purchase order unless exempted by rules, regulations or orders of HUD, so that such provisions shall be binding upon each subcontractor or vendor. Habitat shall take such action with respect to any subcontract or purchase order as the property owner or HUD may direct as a means of enforcing such provisions, including sanctions for noncompliance.
9 IN WITNESS WHEREOF , Habitat and Owner have executed this Agreement on the day and year first written above.
HABITAT
HABITAT FOR HUMANITY OF ORANGE
COUNTY, INC., a California non-profit
religious corporation
By:
Print Name:
Title:
Date:
OWNERS(S) [legal name(s) & vesting below]:
By:
____________________________
Date:
By:
_____________________________
Date:
Witness:
By:
Print Name:
Title:
Date:
Exhibit A
Scope of Work
A-1
EXHIBIT A
SCOPE OF WORK
The Scope of Work and attached “ Materials Selection and Approval ” (“ Materials Approval ”) is intended to be completed by Habitat for Humanity of Orange County (“Habitat”) on the home owned by ____________________________________________ (“ Owner”), located at ________________________________, Anaheim, California 92___.
Habitat will be the general contractor to complete this Scope of Work.
The SCOPE OF WORK includes, but is not limited to:
[INSERT]
LIMITATIONS:
• While it is Habitat’s intent to complete the items referenced in the Scope of Work (“Scope”), there is no guarantee that all the items in the Scope will be completed. • There may be circumstances, foreseen or unforeseen, that may prevent completion of the tasks in the Scope of Work, including, but not limited to, inability to obtain material, permits, and unreasonable costs.
• Habitat decides in its sole and absolute discretion as to the tasks to be performed. No action can be maintained against Habitat (or the City) by Owner to obligate Habitat to perform tasks as referenced in the Scope of Work and attached Materials Approval.
A-2
MATERIALS AGREEMENT ATTACHMENT
(to be attached)
Exhibit B
Certificate of Completion
B-1
EXHIBIT B
CERTIFICATE OF COMPLETION
Exhibit C
Site Specific Liability Form
C-1
EXHIBIT C
SITE SPECIFIC LIABILITY FORM
(attached)
Exhibit D
Change Order
D-1
EXHIBIT D
CHANGE ORDER
(attached)
Exhibit E
Cancellation of Services
E-1
EXHIBIT E
CANCELLATION OF SERVICES
Exhibit F
Full One-Year Warranty
F-1
Rev September 2010
EXHIBIT F
FULL ONE-YEAR WARRANTY
COVERAGE PROVIDED
All improvements, materials, hardware and fixtures installed or constructed on your home by Habitat are warranted, under normal use, to be free from defects in materials or workmanship.
This warranty extends to Owner only. The warranty b egins on the date the Notice of Completion is issued to Habitat and extends for twelve (12) months thereafter.
OWNER’S OBLIGATION
Owner is responsible for normal maintenance of all work of improvement and the Property.
If a problem occurs which Owner believes is covered by this warranty, Owner shall contact Habitat in writing, giving Habitat sufficient information to enable him/her to resolve the matter.
HABITAT’S OBLIGATION
Habitat is obligated at no charge to Owner to repair or replace any parts necessary to correct defects in material or workmanship.
WHAT IS NOT COVERED BY THIS EXPRESS WARRANTY
1. Defects caused by or related to:
a. Abuse, misuse, negligence or accident; or
b. Normal deterioration due to wear or exposure.
2. Loss of time, inconvenience, commercial loss, loss of use of the home, incidental charges such as telephone calls, hotel bills, or other incidental or consequential damages.
3. Any undertaking, representation or warranty made by any Habitat or other person beyond those expressly set forth in this Warranty.
Habitat Name of Property Owner
________________________________ _________________________________ Signature Property Address of Work Completed
________________________________ _________________________________ State Contractor’s License Number Habitat’s Telephone
________________________________ _________________________________ Habitat’s Address Date
I-1
EXHIBIT I
[Reserved]
J-1
EXHIBIT J
Certificate of Annual Compliance
A-1
CERTIFICATE OF ANNUAL COMPLIANCE
SINGLE FAMILY OWNER-OCCUPIED DEFERRED REHABILITATION LOAN (CDBG PROGRAM – RRP)
City of Anaheim
201 South Anaheim Boulevard, Suite 1003
Anaheim, California 92805
Attn: Director of Community Development
This constitutes a Certificate of Annual Compliance under that certain loan as made by the City of Anaheim, a municipal corporation and charter city (“City”) in the original principal amount of __________________ Dollars ($___________) (the “Loan Amount”) in connection with the City Residential Rehabilitation Program, including the Residential Rehabilitation Program Guidelines, Policies, and Procedures for Loans and Grants (the “Guidelines”). The Loan Amount was used for the rehabilitation of my/our residence at __________________________, Anaheim, California (the “Property”). In connection with the Residential Rehabilitation Program (“RRP”) and Guidelines, under an agreement I/we (“Borrower”) entered into with the City (the “Loan Agreement”), I/we received a loan from the City in for the Loan Amount. Under Loan Agreement, and consistent with the Guidelines, I/we are required to live in the Property as my/our personal residence, to maintain the Property in sound condition, to maintain insurance as to the Property, and to pay property taxes all as set forth with more particularity in the Loan Agreement. All capitalized terms not defined herein shall have the respective meanings established therefor in the Loan Agreement. Borrower acknowledges that each of City and Housing Authority will rely upon this Borrower Sale Certificate.
Borrow
er hereby certifies to the City as follows:
1. I/we are occupying the Property as my/our personal residence;
2. I/we are maintaining insurance as required by the Loan Agreement;
3. I/we have paid property taxes on a current basis as required by the Loan Agreement;
4. I/we have occupied the Property as my/our personal residence since the Loa n
A
greement was entered into;
5. I/we have refrained from engaging in any of the following:
a. sale or transfer or all or any part of the Property; b. transfer of title or vesting to other than the original Applicant/owner exceptin g onl
y in the case marriage or death of a spouse and further except in the case of de
ath of both applicants and the sole heir qualifies as Low Income as determined by t
he Director or his or her designee and such heir intends to own and occupy the property as his/her primary personal residence (other than a transfer to an i
nter vivos trust to the extent permitted under the Loan Agreement); c. renting or leasing out all or any portion of the Property (including without limitation Airbnb or VRDO);
d. refinancing the Property or any loan secured thereby (without the prior written permission of the City) or securing any additional loan with the Property; e. withdrawing cash or equity from the Property;
f. engaging in any conduct or omission which constitutes a breach or default under any mortgage or lien senior to the deed of trust securing the Loan Amount; g. failing to pay property taxes, assessments or past due liens secured in whole or in part by the Property;
h. failing to maintain insurance as required by the Loan Agreement; i. engaging in any conduct or omission which constitutes a breach or default under the Loan Agreement.
I/we make the above sta tements and provide this Certificate to the City with the knowledge that the City will rely upon this information as true and correct. I make the following statements under penalty of perjury.
BORROWER
By:
Dated: ___________________
By: ____________________________________
Dated: ___________________
K-1
EXHIBIT K
Addendum for Reduction of Lead Paint Hazards
L-1
EXHIBIT L
Lead Safe Housing Requirements Screening Worksheet
L-2