CITY COUNCIL AGENDA
July 7, 2026
REGULAR SESSION - 5:30 P.M,
CLOSED SESSION FOLLOWING
ANDERSON CITY HALL
1887 Howard Street
PARTICIPATION BY PUBLIC IN MEETING
Please review the Agenda to determine if the subject you wish to discuss is scheduled for Council consideration. If it is on the Agenda, you will have an opportunity when Jthat matter comes up for discussion to briefly address the Council.
If the subject is not on tonight's Agenda, please complete an Agenda Request Form (on Clerk's table) and present it to the City Council Clerk. You will have the opportunity to speak on the subject under Item 5.2. However, if the item is not on the Agenda, each speaker will be limited to one three (3) minute opportunity to speak, unless the City Council makes an exception due to special circumstances.
The Brown Act prohibits the Council from taking action on any item not placed on the printed Agenda in most cases.
The Brown Act requires any non-confidential documents or writings distributed to a majority of the City Council less than 72 hours before a regular meeting will be made available to members of the public at the same time they are distributed.
In compliance with the Americans with Disabilities Act, the City of Anderson will make available to members of the public any special assistance necessary to participate in this meeting. The public should contact the City Clerk's office (378-6646) to make such a request. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
This is an Equal Opportunity Program. Discrimination is prohibited by Federal Law.
Complaints of discrimination may be filed with the Secretary of Agriculture, Washington, D.C. 20250.
1 City Council Meeting
July 7, 2026
1.0 ROLL CALL - COUNCIL:
REGULAR SESSION - 5:30 P.M,
Councilmember Hale
Councilmember Baugh
Councilmember Gallagher
Vice-Mayor Simmons
Mayor Gallier
2.0 INVOCATION -Amarjit Singh of the Sikh Center, will give the invocation.
3.0 PLEDGE OF ALLEGIANCE - Vice Mayor Bonnie Simmons.
5.2 PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA - This is the time to address public comments by any member of the public to the Council regarding an item not on the agenda. Each comment must be limited to 3 minutes or less and on an item within the City's subject matter jurisdiction. The Brown Act does not permit any action or discussion on items not listed on the agenda. Are there any public comments?
CONSENT AGENDA
6.0 CONSENT AGENDA - Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any member of the public, staff or City Council may request that an item be removed from the Consent Agenda for separate discussion. Are there any requests to remove any items from the Consent Agenda?
6.1 MINUTES-Approve the minutes of the regular meeting of June 16, 2026.
6.2 WARRANTS -Receive and file warrant 37631 to 37691 in the amount of $308,403.91; Receive and file Gross Payroll in the amount of $304,779.47; Receive and file warrant 37692 to 37754 in the amount of $117,335.00; Receive and file ACH in the amount of $51,469.07; Receive and file warrant 37755 to 37817 in the amount of $131,565.30; Receive and file Gross Payroll in the amount of $288,891.15; Receive and file warrant 37818 to 37834 in the amount of $92,099.83; Receive and file ACH in the amount of $130,444.75
6.10 PUBLIC WORKS - Notification of Per- and Polyfluoroalkyl Substances Exceedance - City of Anderson
END OF CONSENT CALENDAR
6.11 ITEMS (IF ANY) REMOVED FROM THE CONSENT CALENDAR - Items removed from the Consent Agenda for discussion will be treated as Regular Agenda items and any member of the public may request to address the Council on any such item as it comes up for discussion. Please provide your name and limit your remarks to 3 minutes or less. 2 City Council Meeting
July 7, 2026
PUBLIC HEARINGS
ALL NOTICES WERE GIVEN ACCORDING TO THE LAW,
7.0 LEYYlNG ASSESSMENTS FOR FISCAL YEAR 2026-2027
RECOMMENDED ACTION:
1. Receive a staff report;
2. Conduct a Public Hearing.
3. Consider adopting a Resolution Confirming the Engineer's Report and levying a 2026-2027 assessment for Landscape and Lighting District No. 93-2.
4. Consider adopting a Resolution Confirming the Engineer's Report and levying a 2026-2027 assessment for the South Ridge Terrace Unit 1 Landscaping Maintenance District.
5. Consider adopting a Resolution Confirming the Engineer's Report and levying a 2026-2027 assessment for the Sanitary Sewer Maintenance District 1-09, Silvergate-Subdivision.
REGULAR AGENDA
8.0 REGULAR AGENDA - Regular Agenda Items will be discussed individually and in order.
Any member of the public may request to address the Council on an item as it comes up for discussion. Please provide your name and limit your remarks to 3 minutes or less.
CITY MANAGER
8.3 REMOVAL OF MANAGEMENT POSITIONS NOT IN USE
RECOMMENDED ACTION:
1. Receive a Staff Report;
2. Receive Public Comment;
3. Adopt a Resolution removing the Classification of Assistant City Manager, Community Engagement Manager, Director of Community Services, Director of Operations and Administration, Engineering Services Manager, Deputy Director of Development Services and Development Services Director. 3 City Council Meeting
July 7, 2026
FINANCE DIRECTOR
8.5 LONG-TERM MONITORING (LTM) AGREEMENT BETWEEN SHASTA COUNTY AND THE
CITY OF ANDERSON FOR COMPLIANCE OF STATE AND FEDERAL REGULATIONS FOR
THE HOME PROGRAM
RECOMMENDED ACTION:
1. Receive a staff report;
2. Receive public comments;
3. Approve the City Manager signing the 3-year L TM agreement for the HOME program with Shasta County.
11.0 COUNCIL REPORTS/COMMENTS - City Councilmembers will report on attendance at conferences/meetings reimbursed at City expense (Requirement of Assembly Bi/11234.)
12.0 Public Comment on Closed Session Item(s): Anyone in the audience who wants to address the City Council on a subject which is listed under the Closed Session agenda is now invited to come to the podium. Please provide your name and the subject you wish to discuss. Please limit your remarks to 3 minutes or less.
The City Council will convene to Closed Session.
I
CLOSED SESSION
C.S.1 CONFERENCE WITH REAL PROPERTY NEGOTIATIONS(§ 54956,8) - Property: 1699 CA-273, Anderson, California 96007
- Agency Negotiation: City Manager
- Negotiating Parties: Shasta Cascade Educational Foundation - Under Negotiation: Status of Tenancy /Sale of Property The City Council will reconvene to Open Session.
13.0 CLOSED SESSION ANNOUNCEMENT: The Mayor will announce the results of the Closed Session.
14.0 ADJOURN· The City Council will adjourn to July 21, 2026. 4 ANDERSON CITY COUNCIL MINUTES
Regular Meeting
June 16, 2026
REGULAR SESSION
The regular session was called to order at 5:30 p.m.
ROLL CALL
Councilmembers present: Councilmember Hale
Councilmember Baugh
Councilmember Gallagher
Vice-Mayor Simmons
Mayor Gallier
DRAFT
Also present: City Manager Joey Forseth-Deshais, City Attorney Collin Bogener, Police Chief Oliver Collins, Public Work Director Adam Whelen, Finance Director Cindy Wheeler and City Clerk Christy White.
INVOCATION
Councilmember Mike Gallagher gave the invocation.
PLEDGE OF ALLEGIANCE
Mayor Dan Gallier led the Pledge of Allegiance.
STUDENT REPORTS
Teen Centers Youth Initiative Coordinator Chris Richardson gave an update on current Activities.
PROCLAMATIONS
A Proclamation proclaiming June 2026 as Elder Abuse Awareness Month was presented to Donn Epperson and Sarah Adamec from Adult Protective Services.
A Proclamation proclaiming July 2026 as Parks and Recreation Month was presented to employees of the Parks and Recreation Department.
PRESENTATIONS
Public Works Director Adam Whelen gave an annual Wastewater update.
ITEM 6.1 7/7/2026
5 City Council Meeting
July 7, 2026
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Ann Rogers spoke regarding the cat ordinance.
Dave Powers spoke regarding a missing emergency access gate on Corey Lane and Fair Oaks.
CONSENT AGENDA
By motion made, second (Hale/Simmons) and carried by a 5-0 vote, Council took the following action.
Approved the minutes of the regular meeting of May 19, 2026.
Received and filed warrant 37398 to 37452 in the amount of $538,837.87; Received and filed ACH in the amount of $57,819.77; Received and filed Gross Payroll in the amount of $269,269.28; Received and filed warrant 37453 to 37517 in the amount of $139,671.73; Received and filed ACH in the amount of $57,376.53; Received and filed warrant 37518 to 37566 in the amount of $120,022.88; Received and filed ACH in the amount of $56,751.61; Received and filed ACH in the amount of $130,444.75; Received and filed Gross Payroll in the amount of $288,233.85; Received and filed warrant 37567 to 37630 in the amount of $200,916.00; Received and filed ACH in the amount of $58,027.45 Adopted Resolution No 26-22 updating the City Conflict of Interest Code.
Adopted Resolution No 26-23 approving a Side Letter to Memorandum of Understanding with the Anderson Police Management Association (APMA) Contract.
Adopted Resolution No 26-24 approving amendments to the City of Anderson Personnel Rules.
Received Monthly Cash Balances.
Adopted Ordinance No 878 (second reading), approving General Plan Amendment No. 26- 02 and Rezone No. 26-02, pursuant to City of Anderson Zoning Code Chapter 17.54 Zoning Amendments, as introduced (first reading) on May 19, 2026.
Approved the Rotational Towing Services Agreement and Establishment of Official Police Tow Rotation List.
Adopted Resolution No 26-25 identifying roadway maintenance and rehabilitation projects in the City of Anderson that will be eligible for Senate Bill 1 funding for fiscal year 2026-2027.
AYES:
NOES:
ABSTAIN:
ABSENT:
Councilmembers Hale, Simmons, Gallagher, Baugh and Mayor Gallier.
None.
None.
None.
6 City Council Meeting
July 7, 2026
ALL NOTICES WERE GIVEN ACCORDING TO LAW
PUBLIC HEARING
AB 2561- NOTICE OF IOB VACANCIES
City Manager Joey Forseth-Deshais gave a staff report and answered questions from Council.
6:09 p.m. the public hearing was opened, no comments were received, the hearing was closed.
By motion made, seconded (Ga11agher/Baugh) and carried by a 5-0 vote, Council voted to adopt Resolution No 26-26 accepting the notice of job vacancies in compliance with Assembly Bill (AB) 2561.
AYES:
NOES:
ABSTAIN:
ABSENT:
Councilmember Ga11agher, Baugh, Hale, Simmons and Mayor Gallier.
None.
None.
None.
REGULAR AGENDA
CITY MANAGER
AMENDING THE CITY OF ANDERSON CLASSIFICATION AND COMPENSATION PLAN TO
ESTABLISH THE PARKS AND LANDSCAPE SUPERINTENDENT CLASSIFICATION City Manager Joey Forseth-Deshais gave a staff report and answered questions from Council.
By motion made, second (Gallagher/Hale) and carried by a 5-0 vote, Council voted to adopt Resolution No 26-27 amending the City of Anderson Classification and Compensation Plan to establish the Parks and Landscape Superintendent classification, approve the associated salary schedule, and reclassify one budgeted Public Works Superintendent position to one Parks and Landscape Superintendent position
AYES:
NOES:
ABSTAIN:
ABSENT:
Councilmembers Gallagher, Hale, Baugh, Simmons and Mayor Gallier.
None.
None.
None.
SALARY AND BENEFIT CHANGES TO MID-MANAGEMENT AND CONFIDENTIAL
EMPLOYEES
City Manager Joey Forseth-Deshais gave a staff report and answered questions from Council.
7 City Council Meeting
July 7, 2026
By motion made, second (Hale/Simmons) and carried by a 5-0 vote, Council voted to adopt Resolution No 26-28 approving salary changes for fifteen non-contract Mid-Management and Confidential classifications.
AYES:
NOES:
ABSTAIN:
ABSENT:
Council members Hale, Simmons Baugh, Gallagher and Mayor Gallier.
None.
None.
None.
PUBLIC WORKS
CAL FIRE WILDFIRE PREVENTION GRANT APPLICATION
Public Works Director Adam Whelen gave a staff report and answered questions from Council.
By motion made, second (Baugh/Gallagher) and carried by a 5-0 vote, Council voted to authorize the submission of a grant application to the California Department of Forestry and Fire Protection (CAL FIRE) for a Wildfire Prevention Grant.
AYES:
NOES:
ABSTAIN:
ABSENT:
Councilmembers Baugh, Gallagher, Hale, Simmons and Mayor Gallier.
None.
None.
None.
COUNCIL REPORTS/COMMENTS
Councilmembers used this time to report on meetings and activities they participated in and to announce upcoming events.
ADJOURNMENT
6:38 p.m.: The City Council adjourned lulv 7, ZQ26.
Dan Gallier, Mayor
ATTEST:
Christy White, City Clerk
8 AGENDA ITEM
I July 7, 2026 City Council Meeting
To:
Through:
Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director /Treasurer
Date: July 7, 2026
!SUBJECT
Receive and File Weekly Warrant Registers.
I RECOMMENDATION
Receive and file warrant 37631 to 37691 in the amount of $308,403.91; Receive and file Gross Payroll in the amount of $304,779.47; Receive and file warrant 37692 to 37754 in the amount of $117,335.00; Receive and file ACH in the amount of $51,469.07; Receive and file warrant 37755 to 37817 in the amount of $131,565.30; Receive and file Gross Payroll in the amount of $288,891.15; Receive and file warrant 37818 to 37834 in the amount of $92,099.83; Receive and file ACH in the amount of$130,444.75
I ATTACHMENT
Warrant Registers.
ITEM 6.2 PAGE1 7/7/2026
9 CHECK REGISTER
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
000349 AMERICAN TOWER CORPORATION
MONTHLY TOWER RENT 6/12/2026 ACH 975.00
004592 HAVEN HUMANE SOCIETY
ANIMAL REGULATION SERVICES 6/12/2026 ACH 10,124.01
000510 APPLEJACKS T-SHIRTS
SUPPLIES 6/8/2026 037631 4,061.31
000017 49ER WATER SERVICES
PROFESSIONAL SERVICES 6/12/2026 037632 1,549.00
011929 ACME ANALYTICAL SOLUTIONS, INC
SUPPLIES 6/12/2026 037633 530.51
000323 AMERICAN FIDELITY ASSURANCE CO
CAFETERIA 125 PIE 6/5/26 6/12/2026 037634 547.68
000615 AT&T CALNET
PHONE CHARGES 6/12/2026 037635 426.79
VOID CHECK 6/12/2026 037636
000945 BEACON FIRE ALARM & SECURITY I
PROFESSIONAL SERVICES 6/12/2026 037637 195.00
011821 CONNIE BRADLEY
CLEANING DEPOSIT REFUND 6/12/2026 037638 350.00
001750 CALIFORNIA SAFETY CO.
PROFESSIONAL SERVICES 6/12/2026 037639 2,038.04
001881 CARREL'S OFFICE MACHINES
MONTHLY LEASE 6/12/2026 037640 254.43
002142 CINTAS FIRST AID & SAFETY
SUPPLIES 6/12/2026 037641 211.69
10 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
002158 CITY OF ANDERSON
UTILITIES 6/12/2026 037642 3,009.15
002176 CIVICPLUS, LLC
ANNUAL FEES 6/12/2026 037643 6,290.25
002199 CLARK PEST CONTROL OF STOCKTON
PROFESSIONAL SERVICES 6/12/2026 037644 739.00
VOID CHECK 6/12/2026 037645
002634 CROWN MOTORS
PARTS 6/12/2026 037646 1,279.15
002716 CWEA
MEMBERSHIP-MCCABE 6/12/2026 037647 251.00
003080 WANDA DOAK
KEY DEPOSIT REFUND 6/12/2026 037648 10.00
011982 ED STAUB & SONS PETROLEUM
FUEL CHARGES 6/12/2026 037649 2,985.43
003334 EFS ENGINEERING, INC.
PROFESSIONAL SERVICES 6/12/2026 037650 950.00
003534 EWING
SUPPLIES 6/12/2026 037651 642.63
003590 FASTENERS INC.
SUPPLIES 6/12/2026 037652 184.10
003618 FERGUSON WATERWORKS #1423
SUPPLIES 6/12/2026 037653 · 738.90
004318 PETER GRIGGS
PROFESSIONAL SERVICES 6/12/2026 037654 126.00
012396 ALLISON HERNANDEZ
PARK RENTAL REFUND 6/12/2026 037655 47.50
Page2
11 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
005169 J & T CONSULTING, INC.
PROFESSIONAL SERVICES 6/12/2026 037656 4,070.00
012398 SONYA KENNEDY
CLEANING DEPOSIT REFUND 6/12/2026 037657 750.00
012648 AMBER KESSEL
DUPLICATE PYMT REFUND 6/12/2026 037658 103.40
006000 LES SCHWAB TIRES
PROFESSIONAL SVCS & PARTS 6/12/2026 037659 769.80
011792 MISSIONSQUARE-302204
PLAN #302204 PE 6/5/26 6/12/2026 037660 4,540.00
007118 MUTUAL OF OMAHA
INSURANCE PREMIUM-JUN 26 6/12/2026 037661 2,438.71
007342 NORCAL RENTALS & SALES
EQUIPMENT RENTAL 6/12/2026 037662 77.42
007443 NUTRIEN AG SOLUTIONS
SUPPLIES 6/12/2026 037663 563.06
007470 O'REILLY AUTO PARTS
PARTS 6/12/2026 037664 74.95
007493 ODP BUSINESS SOLUTIONS, LLC
OFFICE SUPPLIES 6/12/2026 037665 278.91
012189 OPERATING ENGINEERS
CLEANING & KEY DEPOSIT REFUND 6/12/2026 037666 360.00
007630 PACIFIC GAS & ELECTRIC
UTILITIES 6/12/2026 037667 31,648.50
VOID CHECK 6/12/2026 037668
012414 PRIMO BRANDS
DRINKING WATER 6/12/2026 037669 263.75
Page3
12 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
008182 QUADIENT LEASING, INC.
QUARTERLY LEASE 6/12/2026 037670 1,509.85
011940 QUICK QUACK CAR WASH
CAR WASHES 6/12/2026 037671 650.66
008516 RETIRED PUBLIC EMPLOYEES ASSOC
KEY DEPOSIT REFUND 6/12/2026 037672 10.00
012646 RICHARD RICKETTS
PROFESSIONAL SERVICES 6/12/2026 037673 2,500.00
012404 LOIS ROSE
CLEANING DEPOSIT REFUND 6/12/2026 037674 350.00
012325 RTA CONSTRUCTION INC/ESCROW NO
RETENTION 6/12/2026 037675 9,317.80
008855 RTA CONSTRUCTION, INC.
PROFESSIONAL SERVICES 6/12/2026 037676 177,038.26
009256 SCP DISTRIBUTORS, LLC
SUPPLIES 6/12/2026 037677 985.97
009971 DAVID STARKEY
PER DIEM-TRAINING 6/12/2026 037678 466.00
010180 SUNBELT RENTALS, INC.
EQUIPMENT RENTAL 6/12/2026 037679 3,132.94
010187 SUNRISE EXCAVATING, INC.
MATERIALS 6/12/2026 037680 608.00
010237 SWRCB/DWOCP
CERT RENEWAL-MATA 6/12/2026 037681 60.00
010255 T ANDS DVBE, INC.
SUPPLIES 6/12/2026 037682 628.31
010367 THATCHER COMPANY, INC.
SUPPLIES 6/12/2026 037683 16,962.32
Page4
13 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
010398 THE RADAR SHOP
EQUIPMENT 6/12/2026 037684 79.00
010720 UNITED STATES TREASURY
FORM 941-6/30/25 6/12/2026 037685 194.26
008407 USA TODAY MEDIA CORP
ADVERTISING 6/12/2026 037686 883.51
010874 VERIZON WIRELESS
PHONE CHARGES 6/12/2026 037687 3,373.51
010918 VIRTUAL PROJECT MANAGER
PROFESSIONAL SERVICES 6/12/2026 037688 1,250.00
001754 VISION SERVICE PLAN
INSURANCE PREMIUM 6/12/2026 037689 91.00
011674 WELLS FARGO VENDOR FINANCIALS
MONTHLY LEASE 6/12/2026 037690 357.45
011620 YOUTH OPTIONS SHASTA
CONTRIBUTION 2025-2026 6/12/2026 037691 3,500.00
06/11/26 GROSS PAY $304,779.47 308,403.91
FOR PAYROLL ENDING 06/05/26
~
Pages
14 CHECK REGISTER
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
003452 ENTERPRISE FM TRUST
VEHICLE LEASES 6/18/2026 ACH 16,893.87
000722 SCOTT BAILEY
PER DIEM-TRAINING 6/18/2026 037692 271.00
012658 MANDY BOWERS
KEY DEPOSIT REFUND 6/18/2026 037693 10.00
001874 KYLE CARPENTER
UNIFORM REIMBURSEMENT 6/18/2026 037694 1,000.00
002047 CHARTER COMMUNICATIONS
INTERNET SERVICES 6/18/2026 037695 2,471.54
002142 CINTAS FIRST AID & SAFETY
SUPPLIES 6/18/2026 037696 115.85
002158 CITY OF ANDERSON
UTILITIES 6/18/2026 037697 3,392.08
012656 DIANE COPE
KEY DEPOSIT REFUND 6/18/2026 037698 10.00
002973 DEPT OF JUSTICE
FINGERPRINT APPLICATIONS 6/18/2026 037699 98.00
012598 MADELINE EASON
KEY DEPOSIT REFUND 6/18/2026 037700 10.00
003534 EWING
SUPPLIES 6/18/2026 037701 995.74
003744 NASH FOLDEN
UNIFORM REIMBURSEMENT 6/18/2026 037702 1,000.00
012652 CHAD FOWLER
KEY DEPOSIT REFUND 6/18/2026 037703 10.00
15 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
004028 GAYNOR TELESYSTEMS, INC.
EQUIPMENT 6/18/2026 037704 228.43
005445 K & S STAFFING SOLUTIONS, INC.
PROFESSIONAL SERVICES 6/18/2026 037705 3,080.34
011716 RYAN KWIATKOWSKI
PER DIEM-TRAINING 6/18/2026 037706 850.00
005839 LANGUAGE LINE SERVICES
PROFESSIONAL SERVICES 6/18/2026 037707 3.76
012563 AUSTIN LOBSINGER
PER DIEM-TRAINING 6/18/2026 037708 634.00
012651 ELAINE LOVE
CLEANING DEPOSIT REFUND 6/18/2026 037709 350.00
012657 KRYSTLE MARINO
KEY DEPOSIT REFUND 6/18/2026 037710 10.00
006891 MISSION LINEN SUPPLY
PROFESSIONAL SERVICES 6/18/2026 037711 2,239.24
012653 CARRIE MUCHOW
PARK RENTAL REFUND 6/18/2026 037712 47.50
012650 ANGIE MYERS
KEY DEPOSIT REFUND 6/18/2026 037713 10.00
012277 NAPA AUTO PARTS
PARTS 6/18/2026 037714 4,350.76
007470 O'REILLY AUTO PARTS
PARTS 6/18/2026 037715 32.31
007477 OBSIDIAN IT
PROFESSIONAL SERVICES 6/18/2026 037716 2,924.71
007493 ODP BUSINESS SOLUTIONS, LLC
OFFICE SUPPLIES 6/18/2026 037717 316.89
Page2
16 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
012319 KAYLA OGRAM
KEY DEPOSIT REFUND 6/18/2026 037718 10.00
007630 PACIFIC GAS & ELECTRIC
UTILITIES 6/18/2026 037719 3,558.16
012017 PRESYNCED PRODUCTIONS
PROFESSIONAL SERVICES 6/18/2026 037720 1,355.00
1 RAMONA HARO
REFUND 6/18/2026 037721 50.00
008965 KRISTIN SADLER
SUMMER CAMP REFUND 6/18/2026 037722 90.00
004421 SANDRA HALEY
KEY DEPOSIT REFUND 6/18/2026 037723 10.00
012654 MARRE SCHULING
CLEANING DEPOSIT REFUND 6/18/2026 037724 350.00
009256 SCP DISTRIBUTORS, LLC
SUPPLIES 6/18/2026 037725 124.82
• 009357 SHARPS SOLUTIONS, LLC
PROFESSIONAL SERVICES 6/18/2026 037726 96.45
009971 DAVID STARKEY
PER DIEM-TRAINING 6/18/2026 037727 1,231.00
008407 USA TODAY MEDIA CORP
ADVERTISING 6/18/2026 037728 405.00
011064 WM CORPORATE SERVICES, INC
DUMP FEES 6/18/2026 037729 166.90
011201 WESTAMERICA BANK
LOAN# 526 000 0309-78-0114 6/18/2026 037730 66,821.22
012655 ANGELA WILEY
KEY DEPOSIT REFUND 6/18/2026 037731 10.00
Page3
17 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE . NUMBER AMOUNT
1 BERNDT, KIYA
US REFUND 6/18/2026 037732 12.07
1 BRADY, DANIELLE
US REFUND 6/18/2026 037733 44.14
1 DICKINSON, SIOBHAN &
US REFUND 6/18/2026 037734 5.98
1 GARDEN EQUIPPED LLC
US REFUND 6/18/2026 037735 12.07
1 HOY & SON CONSTRUCT!
US REFUND 6/18/2026 037736 960.00
1 JOHNSON, CORRINE
US REFUND 6/18/2026 037737 12.07
1 LONG, SANDRA
US REFUND 6/18/2026 037738 12.07
1 MARTIN, JESSICA
US REFUND 6/18/2026 037739 30.12
t MCNEELY, JESSICA
US REFUND 6/18/2026 037740 12.07
1 NICKLES, HEATHER
US REFUND 6/18/2026 037741 12.07
1 PACIFIC GAS & ELECTR
US REFUND 6/18/2026 037742 471.16
1 POWELL, MILLIESUE &
US REFUND 6/18/2026 037743 12.07
1 QUIROGA, MARIO
US REFUND 6/18/2026 037744 12.07
1 RAMIREZ, GUILLERMO &
US REFUND 6/18/2026 037745 12.07
Page4
18 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
1 ROBINETT, NICOLETTE
US REFUND 6/18/2026 037746 12.07
1 SCOTT, KENNETH & RUT
US REFUND 6/18/2026 037747 1.46
1 SHASTA FAMILY CHIROP
US REFUND 6/18/2026 037748 2.10
1 STONE, JASON & TIFFA
US REFUND 6/18/2026 037749 12.07
1 SWANN, JANINE
US REFUND 6/18/2026 037750 12.07
1 TRAETZ, ANNA
US REFUND 6/18/2026 037751 4.42
1 WAELTY, HAYLEE
US REFUND 6/18/2026 037752 12.07
1 WHITE, TROY
US REFUND 6/18/2026 037753 12.07
1 WILSON, AUSTIN
US REFUND 6/18/2026 037754 12.07
06/18/26 ACH PERS $51,469.07 117.335.00
FOR PAYROLL ENDING 06/05/26
kl1i~
Date
Pages
19 CHECK REGISTER
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
VOID CHECK 6/18/2026 037708
000017 49ER WATER SERVICES
PROFESSIONAL SERVICES 6/26/2026 037755 3,175.00
012659 ALL RISK UNIFORMS
SUPPLIES 6/26/2026 037756 482.63
000322 AMERICAN FIDELITY ASSURANCE
INSURANCE PREMIUM-JUN 26 6/26/2026 037757 3,579.16
000323 AMERICAN FIDELITY ASSURANCE CO
CAFETERIA 125 PIE 6/19/26 6/26/2026 037758 547.68
000462 ANDERSON WALKIN MEDICAL CLINIC
PROFESSIONAL SERVICES 6/26/2026 037759 750.00
000609 AT&T
PHONE CHARGES 6/26/2026 037760 96.24
000615 AT&T CALNET
PHONE CHARGES 6/26/2026 037761 130.12
000700 BADGER METER , INC.
EQUIPMENT 6/26/2026 037762 291.68
000722 SCOTT BAILEY
PER DIEM-TRAINING 6/26/2026 037763 317.00
001133 BIG VALLEY SANITATION
EQUIPMENT RENTAL 6/26/2026 037764 575.00
002142 CINTAS FIRST AID & SAFETY
SUPPLIES 6/26/2026 037765 227.41
002176 CIVICPLUS, LLC
MUNICODE AOMIN SUPPORT FEE 6/26/2026 037766 1,845.00
20 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
012669 CJ'S POLICE K-9'S
CANINE PURCHASE 6/26/2026 037767 16,837.50
002634 CROWN MOTORS
PROFESSIONAL SVCS & PARTS 6/26/2026 037768 820.05
002973 DEPT OF JUSTICE
FINGERRINT APPLICATIONS 6/26/2026 037769 15.00
012505 EDGEWOOD PLUMBING
BLDG PERMIT REFUND 6/26/2026 037770 23.50
003534 EWING
SUPPLIES 6/26/2026 037771 20.37
003590 FASTENERS INC.
SUPPLIES 6/26/2026 037772 215.72
003618 FERGUSON WATERWORKS #1423
SUPPLIES 6/26/2026 037773 12,936.13
012668 JOSEPH FERRARO
UTILITY REIMBURSEMENT 6/26/2026 037774 560.70
004040 GENERAL TEAMSTERS #137
DUES FOR MONTH OF JUN-26 6/26/2026 037775 2,324.00
004096 GILES LOCK & SECURITY SYSTEMS,
SUPPLIES 6/26/2026 037776 2,056.61
004205 GOODYEAR COMMERCIAL TIRE
PROFESSIONAL SVCS & PARTS 6/26/2026 037777 3,646.54
004305 COURTNEY GRELA
CLEANING DEPOSIT REFUND 6/26/2026 037778 350.00
004351 GUITONS POOL CENTER
SUPPLIES 6/26/2026 037779 156.59
004823 HINDERLITER DE LLAMAS & ASSOC
CONTRACT SVCS-SALES TAX Q4/25 6/26/2026 037780 1,723.28 Page2
21 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
012660 SHAWN HUGHES
SWIM LESSONS REFUND 6/26/2026 037781 245.00
005092 IMPERIAL SUPPLIES LLC
SUPPLIES 6/26/2026 037782 182.55
005445 K & S STAFFING SOLUTIONS, INC.
PROFESSIONAL SERVICES 6/26/2026 037783 4,961.64
005647 AUSTIN KLEIN
PER DIEM-TRAINING 6/26/2026 037784 317.00
006026 LIDDELL CONST. SUPPLY INC.
SUPPLIES 6/26/2026 037785 414.92
012563 AUSTIN LOBS1NGER
PER DIEM-TRAINING 6/26/2026 037786 317.00
006166 LOWE'S
SUPPLIES 6/26/2026 037787 43.74
006229 LYRO PRINTING
PROFESSIONAL SERVICES 6/26/2026 037788 504.00
012420 NICHOLE MARITZEN
KEY DEPOSIT REFUND 6/26/2026 037789 10.00
012664 VALERIE MC CORMACK
SWIM LESSONS REFUND 6/26/2026 037790 245.00
012663 KAMARYN MC DOWELL
KEY DEPOSIT REFUND 6/26/2026 037791 10.00
006891 MISSION LINEN SUPPLY
PROFESSIONAL SERVICES 6/26/2026 037792 2,313.72
011792 MISSIONSQUARE-302204
PLAN #302204 PE 6/19/26 6/26/2026 037793 4,540.00
006958 MOORE & BOGENER
PROFESSIONAL SERVICES 6/26/2026 037794 8,207.00
Page3
22 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
007075 MUNICIPAL MTNC. EQUIPMENT
SUPPLIES 6/26/2026 037795 1,813.86
007342 NORCAL RENTALS & SALES
EQUIPMENT RENTAL 6/26/2026 037796 673.44
007477 OBSIDIAN IT
PROFESSIONAL SERVICES 6/26/2026 037797 5,166.87
007585 OUTDOOR CREATIONS.INC.
COMMUNITY BENCH PROGRAM 6/26/2026 037798 1,513.89
007618 PACE SUPPLY CORP.
SERVICE CHARGE 6/26/2026 037799 368.07
012667 PG&E PSEA RETIREES
CLEANING DEPOSIT REFUND 6/26/2026 037800 350.00
012666 BRYANNA POULSEN
KEY DEPOSIT REFUND 6/26/2026 037801 10.00
008181 QUADIENT FINANCE USA, INC.
METERED POSTAGE 6/26/2026 037802 5,000.00
008399 REDOING PRINTING COMPANY,INC
PROFESSIONAL SVCS & SUPPLIES 6/26/2026 037803 120.68
009256 SCP DISTRIBUTORS, LLC
SUPPLIES 6/26/2026 037804 5,307.64
009467 SHASTA GEM & MINERAL
KEY DEPOSIT REFUND 6/26/2026 037805 10.00
009551 SHIELD REGIONAL TRAINING
TRAINING-PERISHABLE SKILLS 6/26/2026 037806 110.00
012016 SISKIYOU OPPORTUNITY CENTER
JANITORIAL SERVICES 6/26/2026 037807 1,871.44
010075 STIMPEL WIEBELHAUS ASSOCIATES,
MATERIALS 6/26/2026 037808 1,337.20
Page4
23 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
010255 T ANDS DVBE, INC.
SUPPLIES 6/26/2026 037809 6,075.55
010360 TEXAS LIFE INSURANCE COMPANY
INSURANCE PREMIUM-JUN 26 6/26/2026 037810 952.24
012662 NICOLE UHL
SUMMER CAMP REFUND 6/26/2026 037811 45.00
010749 US BANK VOYAGER FLEET SYSTEMS
FUEL CHARGES 6/26/2026 037812 22,840.41
010756 USA BLUEBOOK
SUPPLIES 6/26/2026 037813 552.01
011260 CHRISTY WHITE
MILEAGE REIMBURSEMENT-MEETING 6/26/2026 037814 243.60
011335 WILGUS FIRE CONTROL INC.
PROFESSIONAL SERVICES 6/26/2026 037815 798.92
012661 BRE WILLIAMS
SWIM LESSONS REFUND 6/26/2026 037816 40.00
012665 KIM WILSON
CLEANING DEPOSIT REFUND 6/26/2026 037817 350.00
06/25/26 GROSS PAY $288,891.15 131,565.30
FOR PAYROLL ENDING 06/19/26
Pages
24 CHECK REGISTER
NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
004592 HAVEN HUMANE SOCIETY
ANIMAL SHELTER SERVICES 6/30/2026 ACH 1,281.55
000083 ACE HARDWARE
SUPPLIES-JOB#4 6/30/2026 037818 881.31
000215 ALCOHOLIC BEVERAGE CONTROL
TRAINING CONFERENCE 6/30/2026 037819 650.00
000615 AT&T CALNET
PHONE CHARGES 6/30/2026 037820 64.46
012332 CESAR VARGAS
PROFESSIONAL SERVICES 6/30/2026 037821 2,643.75
002167 CITY OF REDDING
UTILITIES 6/30/2026 037822 697.23
012416 DIAMOND FELLOWSHIP
KEY DEPOSIT REFUND 6/30/2026 037823 10.00
003208 ROBERT DU MORE
KEY DEPOSIT REFUND 6/30/2026 037824 10.00
003590 FASTENERS INC.
SUPPLIES 6/30/2026 037825 64.52
012670 FEATHER RIVER ELECTRIC MOTORS
PARTS 6/30/2026 037826 101.38
004096 GILES LOCK & SECURITY SYSTEMS,
SUPPLIES 6/30/2026 037827 577.22
007379 NORTH VALLEY BUSINESS SYSTEMS
SUPPLIES 6/30/2026 037828 359.58
007577 KRISTIE OSTROM
CLEANING DEPOSIT REFUND 6/30/2026 037829 350.00
25 NAME CHECK CHECK CHECK
VENDOR DESCRIPTION DATE NUMBER AMOUNT
007630 PACIFIC GAS & ELECTRIC
UTILITIES 6/30/2026 037830 81,041.56
VOID CHECK 6/30/2026 037831
012165 ROBIN PAYNE
KEY DEPOSIT REFUND 6/30/2026 037832 10.00
008513 RESTPADD, INC.
KEY DEPOSIT REFUND 6/30/2026 037833 10.00
011560 XYLEM WATER SOLUTIONS USA, INC
PARTS 6/30/2026 037834 3,347.27
06/29/26 ACH PERS $130,444.75 92,099.83
FOR UNFUNDED LIABILITY
Page2
26 AGENDA ITEM
buly 7, 2026 City Council Meetin~
eth-Deshais, City Manager
orks Director
To:
Through:
Honorable Mayor and Members of the Anderson City Council Joey Forseth+Deshais, City Manager
From: Adam Whelen, Public Works Director
Date: July 7, 2026
!SUBJECT
Notification of Per- and Polyfluoroalkyl Substances Exceedance at Well 08 - Rhyne Well
I RECOMMENDATION
Accept the notification letter of Per- and Polyfluoroalkyl Substances Exceedance at Well 08 - Rhyne Well per the requirements of the California State Water Resources Control Board.
I FISCAL IMPACT
At this time, there is no fiscal impact to the City. The current PFAS and PFOS levels are at the notification level and require no further action than monitoring.
I DISCUSSION and BACKGROUND
The City of Anderson has been testing for Per- and polyfluoroalkyl substances (PFAS) since July of 2019, per Health and Safety Code section 116378. Over the last seven years of quarterly testing, we have observed Perfluoroctane Sulfonic Acid levels ranging from 2.8 ng/L to 6.5 ng/L.
During this time period, the notification level has been reduced from 13 ng/L to 4 ng/L.
ITEM 6.10 PAGE1 7/7/2026
27 At this time, the City of Anderson has only received a detected level at City of Anderson Well #8 • Rhyne Well, located on Meadowview Drive and serving the Wooded Acres Pressure Zone. The Division of Drinking Water has reviewed recent PFAS results. PFOS was detected above the notification level but below the response level:
- - - - Source Sample PFOS Result Notification Response Level Operational Date (ng/L) Level ( ng/L) (ng/L) Status
- Well 08 - 3/11/2026 3.97 4.0 10 Active
Rhvne Well
Well 08- 12/8/2025 4.42 4.0 10 Active
Rhyne Well
Well 08 - 7/8/2025 5.1 4.0 10 Active
Rhyne Well
Well 08- 2/18/2025 5.4 4.0 10 Active
Rhyne Well
Because the PFOS result exceeds the notification level, the City must notify the Anderson City Council. California Health and Safety Code section 116455 requires notice to the water system's governing body and to the governing body of any local agency whose jurisdiction includes areas supplied with drinking water by the water system when there is a confirmed detection of a contaminant in drinking water delivered for human consumption that exceeds a notification level or response level.
In March 2019, the State Water Resources Control Board issued a Water Codej section 13267 Order to the City of Redding because the Redding Municipal Airport was identified as a facility that has accepted, stored, or used materials that may contain per- and polyfluoroalkyl substances (PFAS). Order WQ-2019-005-DWQ required the City of Redding to submit technical reports to investigate PFAS impacts at the Redding Municipal Airport. In January and February 2020, initial soil and shallow groundwater samples were collected at four areas at the Redding Municipal Airport.
Former Firefighter Temporary
PFAS Training Area Firefighter
:::hemical 1&2 Training Area
PFOA ~90 85
PFOS 2,600 26
• No. of Monitoring Wells Installed ii 5
Screen Interval (ft bgs) 10-35 10-35
ITEM 6.10 PAGE2 7/7/2026
28 PFAS Airport City of City of Redding City of Redding Chemical Industrial Anderson Enterprise Enterprise
Park Rhyne-8 Well-8 Well-9
PFOA 3.3 to 8.1 3.5 to 4.1 <2 <2 to 3.2
PFOS 7.8 to 16 4.9 to 6.5 3.8 to 4.9 2.6 to 5.7
Pumping all year all year all year all year
Operation
Pumping Rate ~ 50 ~650 ~1,050 ~1,750
(gpm)
!ATTACHMENT
1. Notification letter to City Council
2. State Water Resources Control Board Notice
ITEM 6.10 PAGE3 7/7/2026
29 June 16, 2026
Anderson City Council
City of Anderson
1887 Howard Street
Anderson, CA 96007
Subject: Notification of Per- and Polyfluoroalkyl Substances Exceedance - City of Anderson, Anderson, Shasta County
Dear Honorable Mayor and Members of the City Council:
The purpose of this letter is to notify the Anderson City Council that per- and polyfluoroalkyl substances (PFAS) have been detected in a groundwater source used by the City of Anderson Water System at concentrations greater than current State Water Resources Control Board, Division of Drinking Water (DOW) notification levels.
This notice is being provided pursuant to California Health and Safety Code section 116455. For a retail public water system, section 116455 requires notice to the water system's governing body and to the governing body of any local agency whose jurisdiction includes areas supplied with drinking water by the water system when there is a confirmed detection of a contaminant in drinking water delivered for human consumption that exceeds a notification level or response level. I
Notification levels are health-based advisory levels established by DOW. When a chemical is found at a concentration exceeding its notification level, specific notification requirements and recommendations apply. The response level is the level at which DDW recommends source removal or other follow-up actions. Current DOW PFAS response-level exceedance determinations are based on the quarterly running annual average (QRAA).
The PFAS compound exceeding the notification level at the City of Anderson Water System is perfluoroctane sulfonic acid (PFOS). A summary of the last four results is provided below.
Concentrations are reported in nanograms per liter (ng/L), which is equivalent to parts per trillion (ppt) in water.
----,
- Source Sample PFOS Result Notification Level Response Level Operational 1 Date (ng/L) (ng/L) (ng/L) Status I
Well 08- 3/11/2026 3.97 4.0 10 Active Rhyne Well
Well 08- 12/8/2025 4.42 4.0 10 Active Rhyne Well
Well 08- 7/8/2025 5.1 4.0 10 Active Rhvne Well ,__
Well 08- 2/18/2025 5.4 4.0 10 Active Rhyne Well
30 The origin of PFAS in the water supply is related to the use of Aqueous Film-Forming Foam at the Redding Regional Airport, per Case# SL T5R1114. PFAS are human-made chemicals that have been used in certain consumer products, industrial processes, and firefighting activities. The City of Anderson will continue to coordinate with DOW and other agencies, as appropriate, regarding the PFAS detections.
Based on available health information, exposure to PFAS at levels above health-based thresholds over many years may be associated with adverse health effects, including developmental effects during pregnancy and childhood, immune effects, liver effects, thyroid effects, cardiovascular effects, and certain cancers. Health concerns vary by PFAS compound and level of exposure.
At this time, the City of Anderson is continuing to monitor PFAS levels and will provide any additional notices required by DOW or applicable law. This notice is intended to satisfy the governing-body and local-agency notification requirements of Health and Safety Code section 116455 for the exceedances of the notification level identified above.
If you have any questions, please contact Adam Whelen, Public Works Director, at (530) 378- 6640 or [email protected]
Sincerely,
Adam Whelen
Public Works Director
City of Anderson
cc: State Water Resources Control Board, Division of Drinking Water, Lassen District 31 ,,,>
••u••••u
Water Boards
State Water Resources Control Board
Division of Drinking Water
~ GAVIN NEW80M
~ GOllff\NOA
May 21, 2026 System No. 4510001
City of Anderson
1887 Howard Street
Anderson, CA 96007
Attention: Peter Wickenheiser, Deputy Public Works Director Subject: Per-and Polyfluoroalkyl Substances Exceedance Above Notification Level in Well 08- Rhyne Well
City of Anderson (City) has been conducting per-and polyfluoroalkyl substances (PFAS) monitoring under the PFAS Order No. 2024-0002-DDW (Order). Because PFAS detections were confirmed, Well 08 - Rhyne Well was placed on quarterly monitoring. The Division of Drinking Water (Division) has reviewed recent PFAS results. Perfluoroctane sulfonic acid (PFOS) was detected above the notification level but below the response level:
Source I Sample PFOS Result Notification Level I Response Level Operational Date (ng/L) (ng/L) (ng/L) Status
Well08 - 3/11/2026 3
1 .97 4.0 10 Active I Rhyne Well
Well08- 12/8/2025 4.42 4.0 10 Active Rhyne Well - - Because the PFOS result exceeds the notification level, the City must notify the Anderson City Council of this result. California Health and Safety Code section 116455 requires notice to the water system's governing body and to the governing body of any local agency whose jurisdiction includes areas supplied with drinking water by the water system when there is a confirmed detection of a contaminant in drinking water delivered for human consumption that exceeds a notification level or response level,
If you have any questions regarding this matter, please contact Melissa Buciak at (530) 224-4870 or me at (530) 224-4828.
~l.Jat~ Stephen W. Watson, P.E.
Lassen District Engineer
Drinking Water Field Operations Branch
mab \ City of Anderson \ File. Letter
E. JOAQUIN E SOUIVEL, CHAIR I ERIC OPPi,:NHEIMER, EXECUTIVE DIRECTOR 364 Knollcrast Drive, Suite 101, Roddi ng, CA 96002 I www.watorboarda.ca,gov 32 AGENDA ITEM
~uly 7, 2026, City Council Meetin~
ved for Submittal By:
eth-Deshais. Ci
(!By:
To: Honorable Mayor and Members of the Anderson City Council Through: Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director
Date: July 7, 2026
I SUBJECT
Public Hearing - Levying Assessments for Fiscal Year 2026-2027
I RECOMMENDATION
The Finance Director recommends that the City Council:
1. Receive a staff report;
2. Conduct a Public Hearing;
3. Consider adopting a Resolution Confirming the Engineer's Report and levying a 2026-2027 assessment for Landscape and Lighting District No. 93-2;
4. Consider adopting a Resolution Confirming the Engineer's Report and levying a 2026-2027 assessment for the South Ridge Terrace Unit 1 Landscaping Maintenance District;
5. Consider adopting a Resolution Confirming the Engineer's Report and levying a 2026-2027 assessment for the Sanitary Sewer Maintenance District 1-09, Silvergate-Subdivision.
I FISCAL IMPACT, DISCUSSION and BACKGROUND
The City of Anderson established District No. 93-2 to offset the cost of electrical energy for streetlights within the City. On March 17, 2026, the City Council adopted Resolution No. 26- ITEM 7.0 PAGE1 7/7/2026
33 09 directing PACE Civil Engineering, the Engineer of Record for Assessment District 93-2, to complete and file the annual report in accordance with the Landscape and Lighting District Act of 1972. PACE Civil Engineering has completed the report, and a copy of the report is on file in the City Clerk's office. The assessments are calculated at $15 per parcel plus an additional $10 for each additional dwelling unit. On May 19, 2026, the City Council adopted Resolution No. 26-18, a resolution of intention to renew the Landscape and Lighting District 93-2 and directed that a public hearing be held on July 7, 2026, to consider and levy the assessment for fiscal year 2026-2027. The 2026-2027 fiscal year assessment provides revenues of approximately $63,820. In the 2025-2026 fiscal year, assessments provided $63,780 in revenue.
The City of Anderson established the South Ridge Terrace Unit 1 Landscaping Maintenance District to maintain the landscape planter area along the north side of Yellow Finch in the South Ridge Terrace subdivision. On March 17, 2026, the City Council adopted Resolution No. 26-10 directing EFS Engineering, Inc., the Engineer of Record for South Ridge Terrace Unit 1 Landscaping Maintenance District, to complete and file the annual report in accordance with the Landscape and Lighting District Act of 1972. EFS Engineering, Inc. has completed the report. The formation documents for the South Ridge Terrace - Unit 1 Landscape Maintenance District contain a provision for annual indexing tied to the published Consumer Price Index. Due to the timeframe given for meeting this year's deadline, this year's cost-indexing percentage is based on the San Francisco CPI change from April 2025 to February 2026. Moving forward, we will return to using the annual indexing (February to February). The complete report is on file in the City Clerk's office.
The assessments are calculated at $1,000 per parcel. On May 19, 2026, the City Council adopted Resolution No. 26-19, a resolution of intention to renew the South Ridge Terrace Unit 1 L~ndscaping Maintenance District and directed that a public hearing be held on July 7, 2026, to consider and levy the assessment for fiscal year 2026-2027. The 2026-2026 fiscal year assessment provides revenue of $14,000. There is no change from the prior fiscal year.
The City of Anderson established the Sanitary Sewer Maintenance District 1-09, Silvergate Subdivision, to maintain the sewer lift station that services the lots in this subdivision exclusively. On March 17, 2026, the City Council adopted Resolution No. 26-11 directing PACE Civil Engineering Services, the Engineer of Record for the Sanitary Sewer Maintenance District, Silvergate Subdivision, to complete and file the annual report in accordance with the Improvement Act of 1911. PACE Civil Engineering Services has completed the report. The complete report is on file in the City Clerk's office. The assessments are calculated at $305.27 per parcel; an increase of $120. On May 19, 2026, the City Council adopted Resolution No. 26-20, a resolution of intention to renew the Sanitary Sewer Maintenance District 1-09 and directed that a public hearing be held on July 7, 2026, to consider and levy the assessment for fiscal year 2026-2027. The 2026-2027 fiscal year assessment provides revenue of approximately $20,587.41. The fiscal year 2025-2026 provided $12,450.14 in revenue.
This is the final step in levying the assessments in the above-mentioned districts. After conducting the public hearing, the Council may adopt the attached resolutions confirming the Engineer's Reports and levying the assessments for the 2026-2027 fiscal year.
ITEM 7.0 PAGE2 7/7/2026
34 As required, the public hearing has been properly noticed.
I ATTACHMENTS
1. Proposed Resolution for Assessment District 93-2.
2. Proposed Resolution for South Ridge Terrace Unit 1 Landscape Maintenance District.
3. Proposed Resolution for Sanitary Sewer Maintenance District 1-09.
ITEM 7.0 PAGE3 7/7/2026
35 RESOLUTION NO. 26-
RESOLUTION CONFIRMING THE ENGINEER'S REPORT
AND LEVYING ASSESSMENTS FOR LANDSCAPING AND LIGHTING DISTRICT NO. 93-2 FOR THE 2026-2027 FISCAL YEAR
WHEREAS, the Landscaping and Lighting Act of 1972 authorizes the City Council to impose an assessment for Street Landscaping and Lighting; and WHEREAS, the City Council has reviewed the annual report filed by the Engineer of Record and adopted Resolution No. 26-18 demonstrating the City Council's intent to renew Landscape and Lighting District 93-2 for the 2026-2027 fiscal year.
WHEREAS, the City Council conducted a public hearing in conformance with the law to afford every interested person an opportunity to make a protest to the Engineer's Report either in writing or orally, and the City Council has considered each protest and now wishes to renew Landscape and Lighting District 93-2 for the fiscal year 2026-2027.
NOW, THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of Anderson confirms the assessment amounts, methodology and uses as described in the 2026-2027 Annual Report filed by PACE Engineering, the Engineer of Record, dated April 2026, and hereby levies the assessment set forth therein for fiscal year 2026-2027.
PASSED AND ADOPTED by the City Council of the City of Anderson this 7th day of July, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dan Gallier, Mayor of the City of Anderson
ATTEST:
Christy White, City Clerk
36 RESOLUTION NO. 26-
A RESOLUTION CONFIRMING THE ENGINEER'S REPORT AND LEVYING ASSESSMENTS FOR THE SOUTH RIDGE TERRACE UNIT 1 LANDSCAPING MAINTENANCE DISTRICT FOR THE 2026-2027 FISCAL YEAR
WHEREAS, the Landscaping and Lighting Act of 1972 authorizes the City Council to impose assessments for street landscaping maintenance purposes; and WHEREAS, the City Council has reviewed the annual report filed by the Engineer of Record and adopted Resolution No. 26-19 demonstrating the City Council's intent to renew the South Ridge Terrace Unit 1 Landscaping Maintenance District for the 2026-2027 fiscal year.
WHEREAS, the City Council conducted a public hearing in conformance with the law to afford every interested person an opportunity to make a protest to the Engineer's Report either in writing or orally, and the City Council has considered each protest and now wishes to renew the South Ridge Terrace Unit 1 Landscaping Maintenance District for the 2026-2027 fiscal year.
NOW, THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of Anderson declares the following: the City Council of the City of Anderson confirms the assessment amounts, methodology and uses as described in the 2026-2027 Annual Report filed by EFS Engineering, the Engineer of Record, dated April 2026, and hereby levies the assessment set forth therein for fiscal year 2026-2027,
PASSED AND ADOPTED by the City Council of the City of Anderson on this 7th day of July 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dan Gallier, Mayor of the City of Anderson
ATTEST:
Christy White, City Clerk
37 RESOLUTION NO. 26-
RESOLUTION CONFIRMING THE ENGINEER'S REPORT AND LEVYING ASSESSMENTS FOR THE SANITARY SEWER MAINTENANCE DISTRICT 1-09
FOR THE 2026-2027 FISCAL YEAR
WHEREAS, the Improvement Act of 1911 authorizes the City Council to impose an assessment for the maintenance of improvements and service; and WHEREAS, the City Council has reviewed the annual report filed by the Engineer of Record and adopted Resolution No. 26-20 demonstrating the City Council's intent to renew Sanitary Sewer Maintenance District 1-09 for the 2026-2027 fiscal year.
WHEREAS, the City Council conducted a public hearing in conformance with the law to afford every interested person an opportunity to make a protest to the Engineer's Report either in writing or orally, and the City Council has considered each protest and now wishes to renew Sanitary Sewer Maintenance District 1-09 for the 2026-2027 fiscal year.
NOW, THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City of Anderson declares the following: that the City Council of the City of Anderson confirms the assessment amounts, methodology, and uses as described in the 2026-2027 Annual Report filed by PACE Civil Engineering, the Engineer of Record, dated April 2026, and hereby levies the assessment set forth therein for fiscal year 2026-2027.
PASSED AND ADOPTED by the City Council of the City of Anderson on this 7th day of July 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dan Gallier, Mayor of the City of Anderson
ATTEST:
Christy White, City Clerk
38 AGENDA ITEM
July 7, 2026, City Council Meeting
-Deshais, City Manager
nted By:
To:
Through:
Honorable Mayor and Members of the Anderson City Council Joey Forseth-Deshais, City Manager
Date: July 7, 2026
l suBJECT
Removal of management positions not in use.
I I RECOMMENDATION
1. Receive a Staff Report;
2. Receive Public Comment;
3. Adopt a Resolution removing the Classification of Assistant City Manager, Community Engagement Manager, Director of Community Services, Director of Operations and Administration, Engineering Services Manager, Deputy Director of Development Services and Development Services Director.
I FISCAL IMPACT
There is no fiscal impact to the general fund.
I DISCUSSION and BACKGROUND
Over the past several years, the City has continually evaluated its staffing structure, workload distribution, and operational needs. Through this ongoing review, the City identified several positions whose responsibilities have been reduced, duplicated, or successfully absorbed by existing staff and operational processes. The recommendation to eliminate these positions is based on improving organizational efficiency, streamlining operations, and responsibly managing public resources.
ITEM 8.3 PAGE1 7/7/2026
39 Looking ahead, the City has determined there is no operational need to fill the positions identified for elimination. The City will continue to evaluate operational efficiencies and organizational structure on an ongoing basis to ensure staffing levels remain aligned with service demands, organizational priorities, and fiscal responsibility.
I ATTACHMENT
1. Resolution
ITEM 8.3 PAGE2 7/7/2026
40 RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANDERSON
AMENDING THE CITY OF ANDERSON
POSITION CLASSIFICATION AND COMPENSATION PLAN
WHEREAS, Chapter 2.56 of the Anderson Municipal Code establishes a Personnel Merit system for the administration of all personnel matters; and WHEREAS, said Chapter provides for the periodic review, amendment, and adoption by resolution of changes in the system's Classification and Compensation Plan; and WHEREAS, the City Manager has reviewed the Plan and has recommended that certain changes be made; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Anderson hereby amends the Classification and Compensation Plan by:
Removing the position of Assistant City Manager, Community Engagement Manager, Director of Community Services, Director of Operations and Administration, Engineering Services Manager, Deputy Director of Development Services and Development Services Director.
PASSED AND ADOPTED by the City Council of the City of Anderson this 7th day of July, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Dan Gallier, Mayor
ATTEST:
Christy White, City Clerk
41 AGENDA ITEM
~uly 7, 2026, City Council Meetin~
d for Submittal By:
ted By:
To: Honorable Mayor and Members of the Anderson City Council Through: Joey Forseth-Deshais, City Manager
From: Cindy Wheeler, Finance Director
Date: July 7, 2026
I SUBJECT
Long-Term Monitoring (LTM) Agreement between Shasta County and the City of Anderson for compliance of state and federal regulations for the HOME program.
I RECOMMENDATION
The Finance Director recommends that the City Council:
1. Receive a staff report;
2. Receive public comments;
3. Approve the City Manager signing the 3-year L TM agreement for the HOME program with Shasta County.
I FISCAL IMPACT
Not to exceed $7,500 per year or $22,500 for the length of the contract (January 1, 2026, through December 31, 2028)
I DISCUSSION and BACKGROUND
The City of Anderson has participated in the HOME program for its citizens for down payment assistance (ADAP) and owner-occupied rehabilitation (OOR) loans since 1993, when the program began. One year after funds began to be distributed to states and local ITEM 8.5 PAGE1 7/7/2026
42 governments. The Los Robles Senior Housing & The Regency II program fundings began in 2003 and 2008, respectively.
The HOME Investment Partnerships Program (HOME) is a federal grant program administered by the U.S. Department of Housing and Urban Development (HUD) that provides funding to state and local governments to create and preserve affordable housing for low-income households. HOME funds may be used to acquire, construct, rehabilitate, or provide financial assistance for affordable rental and homeownership housing.
In exchange for receiving HOME funding, property owners and participating jurisdictions must comply with federal affordability and occupancy requirements for a specified period.
These requirements include maintaining income-eligible tenants, ensuring rents remain affordable, and conducting ongoing monitoring and reporting to verify compliance throughout the required affordability period.
The City of Anderson utilized U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program (HOME) funds to assist in the development of two affordable housing projects: Los Robles Senior Housing and Anderson at Regency II. As a recipient of HOME funding, the city is required to ensure ongoing compliance with federal HOME program requirements, including long-term affordability and annual monitoring of designated HOME-assisted units. In addition, California's Period of Affordability (POA) requirements obligate the city to monitor the projects for up to 55 years.
Under the 2025 HOME Final Rule, four assisted units at Los Robles Senior Housing and sixteen assisted units at Anderson at Regency II are subject to annual compliance monitoring.
The proposed Personal Services Agreement authorizes the County of Shasta, through its Health and Human Services Agency, to perform the City's required long-term monitoring responsibilities for the two HOME-assisted housing developments. The County will conduct annual site visits, physical inspections, tenant file reviews, and regulatory and financial compliance monitoring in accordance with applicable federal and state requirements. The County will also prepare compliance reports, issue findings, monitor corrective actions, and submit required documentation to the California Department of Housing and Community Development.
The City will provide annual financial reporting information, review and approve compliance reports prepared by the County, notify the County of any changes affecting monitoring requirements, and reimburse the County for services provided.
The agreement is effective January 1, 2026, through December 31, 2028. Compensation will be based on actual staff time at current County hourly rates, not to exceed $7,500 per year and $22,500 over the three-year term. Approval of the agreement will ensure the City continues to meet its federal and state monitoring obligations while utilizing the County's expertise in administering affordable housing compliance requirements.
ITEM 8.5 PAGE2 7/7/2026
43 I ATTACHMENTS
1. Personal Services Agreement Between the County of Shasta and City of Anderson ITEM 8.5 PAGE3 7/7/2026
44 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
PERSONAL SERVICES AGREEMENT BETWEEN THE COUNTY OF SHASTA AND
CITY OF ANDERSON
This Agreement is entered into between the County of Shasta, a political subdivision of the State of California, through its Health and Human Services Agency ("County") and the City of Anderson, a municipal corporation ("City") (collectively, the "Parties" and individually a "Party") for the County to provide Long-Term Monitoring ("LTM") of the City's multi-family housing rental projects.
RECITALS
WHEREAS, the City utilized United States Department of Housing and Urban Development HOME Investment Partnerships Program ("HOME") funds towards the developments known as "Los Robles Senior Housing" and "Anderson at Regency II" ("Projects") in compliance with federal and state regulations for the HOME program; and WHEREAS, HOME requires a 20-year period of compliance for HOME assisted unit construction and administrative requirements; and
WHEREAS, the State of California ("State") Period of Affordability ("POA'') is effective the date of construction completion or recordation of the Regulatory Agreements. The City is obligated to perform LTM in compliance with the POA of 55 years; and WHEREAS, according to the 2025 Final Rule Amendment, 4 Assisted Units at Los Robles Senior Housing and 16 Assisted Units at Anderson at Regency II are subject to annual monitoring.
NOW, THEREFORE, the City wishes the County to perform annual site reviews and L TM on behalf of the City in coordination with the Project owners or owners' representatives in accordance with the amended HOME Rule effective February 5, 2025, and in relation thereto, for the mutual obligations set forth herein and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as set forth herein below.
Section 1. RESPONSIBILITIES OF CITY
Pursuant to the terms and conditions of this Agreement, City shall:
A. Provide to County annual accounting reports reflecting loan payments of principle, interest, or residual income deposits by and from the facility ownership as specified in the respective Regulatory Agreements, Exhibit A, attached and incorporated herein, no more than 90 days after the close of each Project management company's fiscal year.
B. Review, and approve by Signature, the Project Compliance Report, summary of findings, and other forms and reports as provided by County and as identified in Chapter XI of the State Recipient Rental Project Long Term Monitoring Handbook, Exhibit B, attached and incorporated herein. Alert the County to any matters that impact the facility's compliance with the legal documents securing the loan and recorded with the Shasta County Recorder's Office, if such information is discovered by the City.
C. Notify County of any communication from HOME or the State that affects the County's L TM responsibilities as set forth in Section 2 of this Agreement, within 10 days.
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45 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 D. Reimburse County as prescribed in Sections 3 and 4 of this Agreement.
Section 2. RESPONSIBILITIES OF COUNTY
Pursuant to the tenns and conditions of this Agreement, County shall:
A. Monitor HOME-assisted units ("Assisted Units") at the Projects to determine if Projects comply with local, state, and federal law as applicable to the period of compliance or POA respectively.
B. Notify the City, Project owner and management company of intention to complete annual monitoring and inspection at least 3 weeks prior to site visit by both mail and email, as follows:
Los Robles Senior Housing: Winn Residential
Anderson at Regency II:
5200 N. Palm Avenue, Suite 109
Fresno, CA 93704
Attn: Joshua Van Meter
Tel: 916-698-03 l 6
Email: [email protected]
Deb Brown [email protected]
Cambridge Real Estate Services
PO Box 2968
Portland, Oregon 97208
Email: Zoey Kure zkure@cambridgeres1com
C. Complete compliance review as regulated by the HOME period of compliance tenns and conditions or the L TM guidelines as follows:
I. HOME period of compliance:
a. Annual site visit including physical condition inspection and audit of tenant folders; and
b. Review Regulatory Agreement and fiscal reporting compliance, annually.
2. State POA LTM:
a.
b.
C.
d.
e.
Request and review the Project Compliance report from the owner or owner's representative annually.
Perform annual common area and building exterior physical condition inspection, annually,
Review Regulatory and fiscal reporting compliance annually.
Following the HOME period of compliance expiration, request unit physical condition inspection report from the Shasta County Housing Authority, at minimum every 3 years.
Perform onsite tenant file audit at minimum every 3 years CDM.L TM.CllyAndcrson.2628
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46 Docus·gn Envelope ID: 315105DE-O322-8C01-82F5-577757E70F86 D. Complete site visit, physically inspect and audit a minimum of 20% of the units at each Project's complexes annually and complete the following:
l. Annual Monitoring Report, Exhibit C, attached and incorporated herein.
2. Tenant File Review Checklist, Exhibit D, attached and incorporated herein or current updated formats.
3. Unit Inspection, Exhibit E, attached and incorporated herein.
4. Physical Condition Report, Exhibit F, attached and incorporated herein.
E. Provide a summary of findings letter to City for review and signature. Send signed copy of letter to management company with compliance due date.
F. Review submission of management company's documentation of corrections noted in the summary of findings letter and address findings until resolved.
Section 3.
A.
B.
Section 4.
1. Provide clearance letter to City for signature and send signed copy to management company by email and mail.
2. Submit to HCD via email, clearance letters, Monitoring Reports, and a copy of any additional reports referenced in the Monitoring Report no later than March l of each year.
COMPENSATION
City shall compensate County for the services provided pursuant to this Agreement, at the current hourly rates for County's Community Development Coordinator and I Staff Services Analyst 1/11, salary and benefits, as are in ~ffect on dates such costs were incurred, in an amount not to exceed $7,500 for each calendar year.
In no event shall the maximum compensation paid to County exceed $22,500 during the term of this Agreement.
BILLING AND PAYMENT
County shall submit to City a quarterly invoice of services rendered by the 15th day of the month following the end of the preceding quarter. City shall make payment within 30 days of receipt of County's correct and approved statement or invoice.
Section S.
A.
B.
TERM OF AGREEMENT
This Agreement shall commence as of January 1, 2026, and shall end December 31, 2028.
Notwithstanding the foregoing, County shall not be obligated for providing its responsibilities hereunder for any County fiscal year unless or until County's Board of Supervisors appropriates funds for the County's responsibilities in this Agreement in the County's budget for that County fiscal year. In the event that funds are not appropriated for this Agreement, then this Agreement shall end as of June 30 of the last County fiscal year for which funds for the County's responsibilities in this Agreement were appropriated. For the purposes of this Agreement, the County fiscal year commences on July l and ends on June 30 of CDM.L TM.CityAndcrson.2628
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47 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 Section 6.
A.
B.
C.
D.
E.
F.
Section 7.
the following year. County shall notify City in writing of such non-appropriation at the earliest possible date.
TERMINATION OF AGREEMENT
If either Party materially fails to perform its responsibilities under this Agreement to the satisfaction of other Party, or if either party fails to fulfill in a timely and professional manner its responsibilities under this Agreement, or if either Party violates any of the terms or provisions of this Agreement, then the other Party shall have the right to terminate this Agreement for cause effective immediately upon that Party giving written notice thereof to the other Party.
Either Party may terminate this Agreement without cause on 30 days' written notice to the other Party.
Either party may terminate this Agreement immediately upon oral notice should funding cease or be materially decreased during the term of this Agreement.
County's right to terminate this Agreement may be exercised by County Executive Officer, or their written designee, or the Health and Human Services Agency ("HHSA") Director, or their written designee. City's right to terminate this Agreement may be exercised by the City Manager, or their written designee.
Should this Agreement be terminated, County shall promptly provide to City any and all finished and unfinished reports, data, studies, photographs, charts, and other documents prepared by County pursuant to this Agreement in a format acceptable to City.
If this Agreement is terminated, County shall only be paid for services satisfactorily completed and provided prior to the effective date of termination.
ENTIRE AGREEMENT; AMENDMENTS; HEADINGS;
EXHIBITS/ APPENDICES
A. This Agreement supersedes all previous agreements relating to the subject of this Agreement and constitutes the entire understanding of the Parties hereto. Parties shall be entitled to no other benefits other than those specified herein. City specifically acknowledges that in entering into and executing this Agreement, City relies solely upon the provisions contained in this Agreement and no others.
B. No changes, amendments or alterations to this Agreement shall be effective unless in writing and signed by both Parties. However, minor amendments, including retroactive, that do not result in a substantial or functional change to the original intent of this Agreement and do not cause an increase to the maximum amount payable under this Agreement may be agreed to in writing between City and HHSA Director, or their written designee, on behalf of County, provided that the amendment is in substantially the same format as the County's standard format amendment contained in the Shasta County Contracts Manual (Administrative Policy 6-101 ).
C. The headings that appear in this Agreement are for reference purposes only and shall not affect the meaning or construction of this Agreement.
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48 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 D.
Section 8.
If any ambiguity, inconsistency, or conflict exists or arises between the provisions of this Agreement and the provisions of any of this Agreement's exhibits or appendices, the provisions of this Agreement shall govern.
NONASSIGNMENT OF AGREEMENT; NON-WAIVER
Inasmuch as this Agreement is intended to secure the specialized services of County, County may not assign, transfer, delegate, or sublet any interest herein without the prior written consent of City. The waiver by City or County of any breach of any requirement of this Agreement shall not be deemed to be a waiver of any other breach.
Section 9. EMPLOYMENT STATUS
This is purely a cost reimbursement agreement, and nothing in this Agreement is intended nor shall be construed to create an employer-employee relationship, a joint venture relationship, or to allow either Party to exercise discretion or control over the other Party Both Parties shall be fully responsible for payment of all taxes due to the State of California or the federal government that would be withheld from compensation if City were a County employee. City shall not be liable for deductions for any amount for any purpose from County's compensation. City shall not be eligible for coverage under County's workers' compensation insurance plan, nor shall County be eligible for any other City benefit.
County must issue W-2 and 941 Fonns for income and employment tax purposes, for all of County's assigned personnel under the tenns and conditions of this Agreement.
Section 10. INDEMNIFICATION
Each Party shall defend, indemnify, and hold the other Party, its officials, officers, employees, agents, and volunteers, hannless from and against any and all liability, loss, expenses (including reasonable attorney's fees), or claims for injury or damage arising out of the performance of this Agreement, but only in proportion to and to the extent such liability, loss, expenses (including reasonable attorney's fees), or claims for injury or damage are caused by or result from the negligent or intentional acts or omissions of the indemnifying Party, its officials, officers, employees, agents, subcontractors, or volunteers.
Section 11. INSURANCE REQUIREMENTS
City and County are both covered and will remain covered throughout the term of this Agreement by policies of insurance or programs of self-insurance, for general liability, automobile liability, professional liability, property, workers' compensation and employer's liability. Upon request by one Party a certificate of coverage will be furnished to the other Party.
Section 12. NOTICE OF CLAIM; APPLICABLE LAW; VENUE
A. If any claim for damages is filed with either Party or if any lawsuit is instituted concerning County's performance under this Agreement and that in any way, directly or indirectly, contingently or otherwise, affects or might reasonably affect either Party, that Party shall give notice thereof to the other Party within 30 days following the date of receipt of a claim or 10 days following the date of service of CDM.L TM.CityAndcrson.2628
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49 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 process of a lawsuit. This provision shall survive the termination, expiration, or cancellation of this Agreement.
8. Any dispute between the Parties, and the interpretation of this Agreement, shall be governed by the laws of the State of California. Any litigation shall be venued in Shasta County.
Section 13. COMPLIANCE WITH LAWS; NON-DISCRIMINATION
A. Both Parties shall observe and comply with all applicable present and future federal laws, state laws, local laws, codes, rules, regulations, and/or orders that relate to the work or services to be provided pursuant to this Agreement.
B. Both Parties shall not unlawfully discriminate in employment practices or in the delivery of services on the basis of race, color, creed, religion, national origin, sex, age, marital status, sexual orientation, medical condition (including cancer, HIV, and AIDS) physical or mental disability, use of family care leave under either the Family & Medical Leave Act or the California Family Rights Act, or on the basis of any other status or conduct protected by law.
A. Each Party respectively represents of itself that it is in compliance with and agrees to continue to comply with the Americans with Disabilities Act of 1990 (42 U.S.C. sections 12101, et seq.), the Fair Employment and Housing Act (Government Code sections 12900, et seq.), and regulations and guidelines issued pursuant thereto.
Furthermore, where applicable, City represents and warrants all websites created for County, or used by City to provide services pursuant to this Agreement shall comply with the Americans with Disabilities Act of 1990 and shall specifically! conform to the Web Cohtent Accessibility Guidelines found at www.w3.org, and comply with section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794d), Subpart 8, 1194.22.
B. In addition to any other provisions of this Agreement, both Parties shall be solely responsible for any and all damages caused, and/or penalties levied, as the result of their respective noncompliance with the provisions of this Section.
Section 14. ACCESS TO RECORDS; RECORDS RETENTION
A. County, City, federal, and state officials shall have access to any books, documents, papers, and records of County that are directly pertinent to the subject matter of this Agreement for the purpose of auditing or examining the activities of County.
Except where longer retention is required by federal or state law, County shall maintain all records for 5 years after City makes final payment hereunder. This provision shall survive the termination, expiration, or cancellation of this Agreement.
B. Both Parties agree to accept responsibility for receiving, replying to, and/or complying with any audit exception by appropriate federal or state audit directly related to the provisions of this Agreement.
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50 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 Section 15. COMPLIANCE WITH CHILD, FAMILY, AND SPOUSAL SUPPORT
REPORTING OBLIGATIONS
Either Party's failure to comply with state and federal child, family, and spousal support reporting requirements regarding that Party's employees or failure to implement lawfully served wage and earnings assignment orders or notices of assignment relating to child, family, and spousal support obligations shall constitute a default under this Agreement.
Either Party's failure to cure such default within 90 days of notice by other Party shall be grounds for termination of this Agreement.
Section 16. LICENSES AND PERMITS
County, and County's officers, employees, and agents performing the work or services required by this Agreement, shall possess and maintain all necessary licenses, permits, certificates, and credentials required by the laws of the United States, the State of California, the County of Shasta, and all other appropriate governmental agencies, including any certification and credentials required by County. Failure to maintain the licenses, permits, certificates, and credentials shall be deemed a breach of this Agreement and constitutes grounds for the termination of this Agreement by County.
Section 17. PERFORMANCE STANDARDS
County and City shall perform the work or services required by this Agreement in accordance with the industry and/or professional standards applicable to County's work or services.
Section 18. CONFLICTS OF INTEREST
Neither Parties' officers or employees shall have a financial interest, or acquire any financial interest, direct or indirect, in any business, property, or source of income that could be financially affected by or otherwise conflict in any manner or degree with the performance of the work or services required under this Agreement.
Section 19. NOTICES
A. Except as provided in Section 6.C. of this Agreement (oral notice of termination due to insufficient funding}, any notices required or permitted pursuant to the terms and provisions of this Agreement shall be given to the appropriate Party at the address specified below or at such other address as the Party shall specify in writing Such notice shall be deemed given: ( 1) upon personal delivery; or (2) if sent by first class mail, postage prepaid, 2 days after the date of mailing.
If to County:
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HHSA Branch Director
Economic Mobility Branch
Attn: Contracts Unit
2600 Park Marina Drive
Redding, CA 9600 l
Phone: (530) 225-5531
51 Docusign Envelope ID· 315105DE-D322-8C01-82F5-577757E70F86 If to City: City Manager
City of Anderson
l 887 Howard Street
Anderson, CA 96007
Phone: (530) 378-6626
Fax: (530) 378-6666
B. Any oral notice authorized by this Agreement shall be given to the persons specified in Section 19.A. and shall be deemed to be effective immediately.
C. Unless otherwise stated in this Agreement, any written or oral notices on behalf of the County as provided for in this Agreement may be executed and/or exercised by the County Executive Officer, or their designee.
Section 20. AGREEMENT PREPARATION
It is agreed and understood by the Parties that this Agreement has been arrived at through negotiation and that neither Party is to be deemed the Party which created any uncertainty in this Agreement within the meaning of section 1654 of the Civil Code.
Section 21. COMPLIANCE WITH POLITICAL REFORM ACT
Both Parties shall comply with the California Political Reform Act (Government Code sections 81000, el seq.), with all regulations adopted by the Fair Political Practices Commission pursuant thereto, and with the County's Conflict oflnterest Code, with regard to any obligation on the part of Both Parties to disclose financial interests and to recuse from infll1encing any County decision which may affect Both Parties financial interests. If required by the County's Conflict of Interest Code, County shall comply with the ethics training requirements of Government Code sections 53234, et seq.
Section 22. SEVERABILITY
If any portion of this Agreement or application thereof to any person or circumstance is declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal or state statute or regulation or County ordinance, the remaining provisions of this Agreement, or the application thereof, shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this Agreement are severable.
Section 23. CONFIDENTIALITY
During the term of this Agreement, both Parties may have access to information that is confidential or proprietary in nature. Both Parties agree to preserve the confidentiality of and to not disclose any such information to any third party without the express written consent of the other Party or as required by law. This provision shall survive the termination, expiration, or cancellation of this Agreement.
Section 24. SCOPE AND OWNERSHIP OF WORK
All research data, reports, and every other work product of any kind or character arising from or relating to this Agreement shall become the property of the City and be delivered CDM.LTM.CityAnderson.2628
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52 Oocusign Envelope ID. 315105DE-D322-8C01-82F5--577757E70F86 to the City upon completion of its authorized use pursuant to this Agreement with the exception of informal communications such as emails and staff notes, whether those communications or notes are internal to County's staff or between County and any subconsultants. City may use County's such work products for any purpose whatsoever.
City acknowledges that its alteration of documents without consent of County, or use of the documents for any purpose unrelated to this Agreement's purposes, is at the City's own risk and without liability to County. All works produced under this Agreement shall be deemed works produced by a contractor for hire, and all copyright with respect thereto shall vest in the City without payment of royalty or any other additional compensation.
Notwithstanding anything to the contrary contained in this Agreement, County shall retain all of County's rights in County's own proprietary information, including, without limitation, County's methodologies and methods of analysis, ideas, concepts, expressions, know how, methods, techniques, skills, knowledge, and experience possessed by County prior to, or acquired by County during the performance of this Agreement and County shall not be restricted in any way with respect thereto.
Section 25. COUNTERPARTS/ELECTRONIC, FACSIMILE, AND PDF SIGNATURES This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument. Each Party of this Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act C'CUET A") Cal.
Civ. Code §§ 1633.1 to 1633.17), for executing this Agreement. The Parties further agree that the electronic signatures of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures.
Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUET A as amended from time to time. The CUET A authorizes use of an electronic signature for transactions and contracts among Parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the Parties.
For purposes of this Section, a digital signature is a type of "electronic signature" as defined in subdivision (h) of section 1633.2 of the Civil Code. Facsimile signatures or signatures transmitted via pdf document shall be treated as originals for all purposes.
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SIGNATURE PAGE FOLLOWS
53 Docus1gn Envelope ID: 315105DE-O322-8C01-82F5-577757E70F86 IN WITNESS WHEREOF, County and City have executed this Agreement on the dates set forth below. By their signatures below, each signatory represents that they have the authority to execute this Agreement and to bind the Party on whose behalf their execution is made.
D ate: __________ 06/17/2026 I 4:24 PM PDT _
APPROVED AS TO FORM:
JOSEPH LARMOUR
County Counsel
By: ~-~ r;,,1,,1,~
Todd ffl'e~A4C4A9'84• •
Deputy County Counsel
RISK MANAGEMENT APPROVAL
By:[£~=~
Dolyene t~~ce3s94.ic
Risk Manager
Date: __________ _
APPROVED AS TO FORM:
City Attorney
By: ________ _
Collin Bogener
City Attorney
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COUNTY OF SHASTA
(Ju,ist (J}.v,...tWv ~--~'
C ~t,C:Cbreffliln
HHSA Director
Date: __________
06/ 17/ 2026 ! 3:54 PM PDT _
06/ 17/ 2026 I 2:14 PM PDT Date: __________ _
I
CITY OF ANDERSON
By: _________ _
Joey Forseth-Deshais
City Manager
Tax I.D.#: 94-6027661
Date: __________ _
54 Docusign Envelope ID: 315105DE-O322-8C01-82F5-577757E70F86 RECQfl)EDATTiiEREQUESTOF
~Ff ~!&~ANY
RECORDING REQUESTED BY:
THE CITY OF ANDERSON
1887 Howard Street
Anderson, CA 96007
.EXHIBIT A
WHEN RECORDED, MAll, DOCUMENT TO:
THE CITY OF ANDERSON
1887 Howard Street
Anderson, CA 96007
Attn: Dana Shigley
HU 1111111111 ttllll 1111 lffl 11111
HOME RENT LIMITATION AND ~ lJLATORY AGREEMENT
✓-- ~
This Rent Limitation and Regulato~<~ gr~ .. ( this "Agreement") is made as of October 1, 2003, by and between th~"<;ITY 1,df-~ij);lSON (hereinafter called "City") and LOS ROBLES SENIOR HOUSING 'l(.~, P, a Caijforoi_d Umited partnership (hereinafter called "Owner"). \~./
/;
( ,--wrn.m.~ H: I ( •• -._-,--
. . 0 \ \ \·j In cons1derat1on/ of' ~l'\Qari"-._in, ,!he ) ~ ount of ONE MlLLION EIGIITY-THREE THOUSAND 'IWO H0ND D "sIX1¥-T-WO AND NO/100 DOLLARS ($1,083,262) (the "Loan") from the ,ei)Y v t'1Q.. "th~ Home Investment Partnerships (HOME) Program (*'HOME Program"~~ pr~ • :s ~ inafter contained, the City and Owner, for itself and its successors and assi~, enant gree as follows:
I . PURPOSE,,---~
...... ---------.. _j_ ( ',
1.1. ~ ~t is made in implementation of that certain Home Investment Partnershi~ -CHOME~)~gram Loan Agreement {the "Loan Agreement"), dated October 1, 2003, be~~-Owner.
""- J .~ Pwtuaht to the Loan Agreement, the City has provided the Loan to the Owner as 'o~c!e{t .. ~-.t) c y,,a promissory note (the "Note") executed by the Owner~ favor _of the City and ~-by ~ of trust (the "Deed of Trust") on real property located m the City of Anderson, State <>f~~omia, described in Attachment "A" attached hereto and incorporated herein by rence1 (4be "Site"). The HOME Loan is conditioned upon, among other requirements, the ~ ecution and delivery to the City of this Rent Limitation and Regulatory Agreement AndrsJ,fOMEReglAgt-LsRbls-1.doc 20861/ 0005
55 Oocusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
and the Owner's express agreement that the Owner, and its successors and assigus, shall ~ ' wi
th
~-~ Loan funds provided by the City for the development and construe~' ~ .~ '~ Property as descnbed m the Loan Agreement are funds allocated to the City un • ie"'H,P Program, for purposes of expanding the community's supply of decent, safe ~ ,"imd affordable housing with primary attention to rental housing for very low-incom . ~ low-inco~e households as defined under 24 CFR Part 92.1, et seq. '"-._) )
1.4. The City approved the HOME Loan on the basis that the ~~ve .,..( d rehabilitate on the Site a an apartment complex and related improvementd, (Ute "Proj~ ") an t eleven (11) of the Project's units (the "Assisted Units") sbalt~ _reiited ~ ---~ ~ble rent to and occupied by Very Low-Income Households and Low~ e Houseir· -(arluch terms are defined herein) all in accordance with this Agreement and 1~ HOME Regulations (as defined herein). ~ )
1.5 As an inducement to City to make the Loan, O~ .,.a~ ed to enter into this Agreement in accordance with the terms, conditi~ d covenants set forth below and consents to be regulated and restricted by Authority as herein'P._~ ded and as provided for in the HOME Program Regulations any all as the same may be ~~upplemented from time to time, ~~:::COVENANTS ◊ {)?}
2.1 The Owner shall not, witbo~ r ~ approval of the City:
(a) Convey, trani~ ~ . or permit the conveyance, transfer or encumbrance of the Project) or ~ ~ite (cd.D~vely the "Property") unless such assignee, 1ransferee, or encumbranc~1ias"agretd~ g and in form suitable for recordation, to be bound by the terms of 1!ii~.J\~ment'amhioeive written approval from the City pursuant to Section 2.12 of the ¥fh ~eirt;-if'required.
"-0~~ v • (b) tdd-J~ , re . ct, or demolish any part of the Property or improvements thereon, except as provi~ b the L an Agreement; or
,,~ use of the Assisted Units for any purposes except those set forth in this ent. .
,,,-- ~//
/ ~ ~"'-~ent any Assisted Unit for less_ than one (1) !ear, unless otherwise ~'0ting by the Owner and the tenant m accordance wrth the HOME Program . ~ ~ e Enter into any contracts or agreements that, to the best of the Owner's ('-"- knowl~~~-would result in a conflict of interest between any of the parties to such contracts and ''--- "---the :!~ ifs ~ard members, officers, employees, agents or members or their respective ~ y'famihes.
AndrsJIOMEReg!Agt-LsRbls-1.doc 20861/0005
z
56 Docus,gn Envelope ID: 315105DE-D322-8C01-82F5-57n57E70F86
EXHIBIT A
2.2 Compliance with Proaram ReQ,Ui~eots- The Owner a~ees that at ~ times,\ _·" at its sole cost and expense, Owner and the ProJect shall comply with all provtsto~!_ ~ HOME Investment Partnerships Act as set forth at Title Il of the Cranston-Gonzales~~ Housing Act, 42 U.S.C. §12701, et seq., as amended from time to time (th~~; tne---\ . regulations promulgated at 24 C.F .R. Part 92, et seq. (the "Regulations"); the .Wes 'of HCD ) \ codified at Title 25 California Code of Regulations Section 8200, et seq. (the " ill~");~ ~ ~ er <J applicable federal and state statutes, roles and regulations; such additional re ' bQ.S..!...,.. • rs, rulings, interpretations and directives for the HOME Program as may be pry.Jiiul • • ued by HUD or HCD, as applicable, from time to time; such policies and =· ". ~ f ~d HCD pertaining to the HOME Program; the applicable provisio~ of tl\e 1 tan f ent; and any and all other requirements of the H~~ Pro~ <¥.;:HQME_P(!)gi . . ~ations").
The Owner acknowledges and agrees that 1t 1s familiar 'Y19f all appli~1e-~1ons of the HOME Program Regulations and has been professionally ~ '\(ised to the ~ t necessary for the purpose of enabling the Owner to fully comply with such ~ ~ ~ons. To 4e ,!extent that there are any conflicts or inconsistencies between the provisions o't ~ ~ t and the HOME Program Regulations, the HOME Program Regulations shall go~ -_.,,/
3. AFFORDABILITY ANDLEASEREQ~
3.1. The Owner agrees that the ~f'sball~ at all times not less than eleven (11) residential apartment units in co
1 mp1i~ ce~ th lhe HOME Program and HOME
Program Regulations (the "Assisted UiriJ ")., \) ,' o r 7
3.2. The Assisted Units shall ~ '~ts~ gfeater than the HOME Rent Limits set forth in 24 CFR Part 92.252 . . AssistedU-nits''ren ust be reviewed and approved by the City.
Owner and its successors and assi~ ~ es ~ • assure that:
/"'- ,, \)
a. N9~~ nm~/4ksted Units shall be rented to and occupied by households whose gross ~ oojhly' ~ y-in"come is at or below 50% ("Very Low-Income Households") of th(';uia, median""'--~COlile for the area in which the Project is located, as determined by HUn ft.Qift,~ ~ ~ d adjusted for family size ("Area Median Income").
For those Assisted Units ~ be • • · by Very Low-Income Households, the rents shall not be greater than thirty pei-cent..(_~) o /the adjusted income of a household whose gross income equals fifty percentQO¾l o~ ,Area Median Income. In determining the maximum monthly rent that may belcpargea fo~ an :Assisted Unit, the Owner must subtract a monthly allowance for any utilities and~ices <r;luding telephone) to be paid by the family. ' "-._...,, ,
~"-'-......-.Not' less than two (2) Assisted Units shall be rented to and occupied by house wti~'-gross monthly in~me is ~t or below 60'.¼ of the Area Median Income (<'-'.t-o ~ ome H~ olds"). For Assisted Uruts to be occupied by Low-Income Households, rent!l~hall,~ exceed thirty percent (30%) of the adjusted income of a household whose gross inCOD.l~~ UiliVixty..tive percent ( 65%) of the Area Median Income. In determining the maxim,)nn\JD,onthly an Assisted Unit, the Owner must subtract a monthly allowance for any ah~ services ( excluding telephone) to be paid by the family. I I //
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EXHIBIT A
3.3. Owner shall not raise rents fo, die Assistod Units, e,recpt as follows: One !i following the initial occupancy of the Assisted Units, and annually thereafter, the Own . er s • ,~ review and re-certify the incomes and rents of the tenants occupying each of the Assi~ll~-_\ .
The Owner may raise rents of the assisted units upon such review and re-certification, pmvi__~ that the new rents do not exceed the maximum HOME rent limits allowed qndet ~~ c:Ftt--, Part 92.252, as it may be amended from time to time. ({ (\ \)
3.4. A holder of a Certificate of Family Participation under 24 CFR. Part_~~ tal Certification Program) or a Rental V~her 1:111der 2~ ~F~ P~ 982 (Ren~~~ . ) or a holder of a comparable document evidencmg participation m a.HO!-flf ~~~· ~~ce program shall not be refused for leasing because of the status of ~ ~ tenan~ a holder of such certificate, voucher, or comparable HOME ~~ assis,~e oe'ument. All of the Assisted Units shall be made available to holders of c;ei;tfficates of F~articipation or a Rental Voucher. ( \ \
\ \ } I
3.5. The Owner agrees that the leases between ~er-and tenanj-ef of the assisted units shall be for not less than one (1) year unless by mutual a~me~°],(tween the tenant and the Owner and shall comply with the provisions of Z4<:FR Part 92.253(b) and (c), as it may, from time to time, be amended. ' "-."'-,
- ~"--
3.6. The Owner shall maintain and ~~e l>roJt,qt, and each of the Assisted Units to be constructed within the Project, in acco,&n~ V(ith._~ tenant selection policies and criteria that comply with 24 CFR P~.25~([p, .~ 1 it\~ . from time to time, be amended.
Upon execution hereof and annually tfi~ r; ~ ~ shall provide the City copies of such written policies and criteria "'--......, , ~/
~ ,"-.
4. MANAGEMENT ( ( - (\ "-)
4.1. Within ~ ~~i~~:r ~ tion hereof, the Owner shall provide to the City a written management bt~r'~ / The management plan, and any amendments or modifications therdoy~!,__ ~ sill>i~ to the City's approval, shall designate the Owner's prop~ manag~ -~&i~'$e"~ ect _and _shall ~elude proyis~ons and criteri~ for all matcnal aspects of the~~ the Project, including but not limited to the followmg:
a. ,~!l~ce. accounting systems, tenant recruitment and selection, tenant relations, rent ~IlfCtion;-e~ tioris, and community relations. \ \ l ) b.'- ,, Fail~ to comply with the approved management plan in any material respect .,a .... ~-~}'8l·wntten notice from City to Owner and Owner's failure to cure such failure~ be ~ a breach of this Agreement.
~ ~ '-i:. • Owner shall promptly notify City of any change in Owner's property ~~nt~t.
~~))
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Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
MONITORING REQUIREMENTS \\
5.1. Each year during the term of this Agreement, the Owner shall provide to~ C~, \
5. for City's approval a written report which contains the following: . /~
~
~
a. The rental rate for each of the Assisted Units; ~ ---------\ \ ) b. The income of each household residing in each of the _ 'd..._Units)nd the Owner's recalculation of the maximum monthly rent to be paid by each,teiinf okJ; c. The family si7.e of each household residing in ...( ,;th~ ~Ju; and ~J -,'SJ
d. The monthly allowances proposed ✓ f Owner fui'jtilities and services to be paid by the tenants of each of the Assisted Units. \ \ )
5.2. Each year the City may conduct an on-site ~~of{ e Assisted Units to ensure the units meet the HUD's minimum Hous~ ty Standards and applicable local codes and zoning ordinances. The Owner agrees to promptly~ diligently make required corrections as a result of this monitoring.
,,,,,-.........._
/ .r':,'
6. MAINTENANCE ( ( /"' ~
City and Owner anticipate tha~ e~ ~t !~ J subject to certain maintenance reserve requirements established under oth~ affi>r~ ~ ho~ g financing programs applicable to the Project. To the extent any such ~~e '~ e requirements are applicable to the ProjectJ and so long as O_wner ~y com~licis f{tb ~ ibaiilterull!ce re~e requirements, Owner shall be deemed to be m comp~ wtth\ilic req~ ents of this Section 6.
7. NONDISCR.IMQJ/) A
~ "'--- / 'J} iN._ "-.__/
1· "'
The Owner ~ _( ·, • • against any prospective tenant in the use, enjoyment, occupancy, conveyan~; 1~ , SUQJICM,e, or rental of any part of the Development on the basis of race, color, creed, an~ > ; · o origin, religion, sex, sexual preference, marital status, family status, so~ oi\ip.c<> , physical or mental disability, Acquired hnmune Deficiency Syndrome (AID;}tor AID~la conditions (ARC), or any other arbitrary basis. The Owner ~hall o~erwise i~ ply with Jill applicable local, state and federal laws concerning discrimination m housmg. ".._..,l 1
8. M" . NS ON SALE, ENCUMBRANCE, AND OTHER ACTS
/ ~ ~ /
/'- '- \ "'~ s:· ,~ Except for leases to tenants in the ordinary course of business, and except as ~~ set,~ in the Loan Agreement, the Owner shall not make, or allow, any sale, encumlmmce, hypothecation, assignment, pledge, conveyance, or transfer of the Project or perty,Jot any part thereof or entered therein, except with the prior written approval of the '<_~
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Docusign Envelope ID; 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
8.2. The City's approval of a sale, transfer or conveyance may be based on conditi~, imposed by City. in its sole discretion, including without limitation the following: ~~ a. the Owner is in compliance with this Agreement or the sa!,e~~ \ conveyance will result in the cure of any existing violations of the Agreement; ( c----....__,'\\ ) b. the successor-in-inten:st to the Owner ag,<es to assume_:;~-& of the Owner pursuant to this Agreement and the HOME Program; ~-~ ~ c. the successor-in-interest demonstrates t.o. t!!e City'~ 4tisfacti),~ that it can own and operate the Project in full compliance with all HO~~; and d. any termo of the sale, transfer or ""4'.&m ~ threaten the City's security or the successor's ability to comply with all HOME~ gram - _j , ents.
8.3. Any such grant of City approval for a sale, ~~~yance shall be further subj~ct to tenns and conditions as may be nece~to ensure compliance with HOME Program reqwrements. '----~
9. TERM OF AGREEMENT; COVENA19°~~ ~ ROIECT
(a) The covenants, conditi9M,. res~ ,0,61~'4 ~ ements set forth in this Agreement (collectively, the "Obligations") shalll>e ~ ed1t~ rod ,-1th, bind and burden the Project and shall be deemed to bind Owner and all of!1!-(_suc:ces..@fs< assigns and any other future owners of the Project and the hc;,lder of any~. ~ble or beneficial interest therein for the Affordability Period (as hereinafter1<1¢fined).(Vie--1Affordability Period" shall mean a period of fifty-five (55) years from the date \~ t ~ en~ is recorded in the w:'-d records of Shasta County. In the event ofra'.>)'6r,o{o~ ~ --~~~/m heu of foreclosure relating to any other loan encumbering the Projedt, ~°)City~bave the right, but not the obligation, to acquire the Project prior to su~o%}~ 'o~ in lieu of foreclosure to preserve affordability in accordance with 24 ) :z:2~ V
(b) It is h~b'y..__CXR_ressly acknowledged by Owner that the undertakings, covenants and agreements o~tatedin this Agreement are given to induce the City to make the Loan and that, notwi~~'g-~ tlle' Loan may be repaid prior to the expiration of the Affordability Period, the ovfu~s ~~g to perform the Obligations for the period set forth in the Paragraph 9(a) lil>o~ is ~al~ndition precedent to the willingness of the City to make the Loan.
This A ": en~ ~am in full force and effect notwithstanding that the Loan may be repaid prior to ; exp'inltion of the Affordability Period.
~ :' A ~t hall be al d ded • • • ed b th •
1 , "I~ greemen s not tere or amen except m wnting, execut y e parties "'-...:.......... hereto. 111, parties agree to modify or amend this Agreement if such modification or amendment ~ 'is~~ by City to be necessary to comply with HOME Program requirements. ~/
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Docusign Envelope ID· 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
11. PARTIALINVALIDITY ~ If any portion of this Agreement shall be invalid, illegal or unenforceable, th~~ legality and enforceability of the remaining provisions hereof shall not in any way ~d o , unpaired thereby. <! (\ \ )
12. BINDING ON SUCCESSORS ~ ---,__J) ,
This Agreement shall bind, and benefilS thereof shall inure ~ ~ ve < ·es hereto, their legal representatives, executors, administrators, successors lidflt . ~ ass . , notwithstanding the foregoing, the Owner may not as~i~ ihis) Agreement r/ any of its obligations hereunder, voluntarily or by operation of law, rf ut the pri >I"wtitten approval of the City. , \ ')
13. RECORDING AGREEMENT ~ /
This Agreement, and all amendments th~ shall be ex~y each of the parties.
This Agreement, and all amendments thereto, shall' ~ recorded against the Property in the Official Records of the County of Shasta. /-~ "-.
14. HOLD HARMLESS ( n/',
Absent the gross negligence O ~ ,'(seq~ ct of the City, the Owner and its successors in interest agree to indemnify, defend, ~ Id harmless the City and its respective agents, emplbyees and officers fro~~ laims, losses, liabilit;ies or causes of action (including reasonable attorneys' feey} F'"'g ) -or in connection with the Project.
15. WAIVER 0
p A \''-...~)
.... ~ '-......__/ ' -....., > " No_ waiver bY,"'~ } i~ f an., ~ ch of or default under this Agreement shall be deemed to be a Wlllver of an:( ,~ or-s.~ equem,breach or default hereunder.
16. CAPTIONS ~"-., ".........:)
;::;L~ The ca~· .,..used. in this Agreement are inserted only as a matter of convenience and for reference and • • way .e, limit or describe the scope or the intent of this Agreement. \ J I - ' ......______., I
17. ~ LAW
~ ~ ~ shall be construed in accordance with and governed by the laws of the ~~alifoaia. "',_''0
~J)
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Docusign Envelope ID; 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
18. NOTICE \\
Any notice required or authorized under this Agreement shall be effective if, an,li~ it\~ in writing and if, and only if, mailed, postage prepaid, by registered or certified mail, to"ihe.~ in question at the address shown below: ~
(--------..,, \ ~ )
Owner: c/o LINC HOUSING CORPORAT< ~ \ )
110 Pine Street, Suite 525 •,'---.._./ ;
With a copy to:
City:
With a copy to:
Long Beach, CA 90802 1
~.:..._~ "
Attn: Grace Quach ~ ( "'-._, \
\_ \ )
The Riehm~· ap.Af/orda le'flousihg Corporation / '~
S99 West Avenue 0)
Greenwich, CT\ 870 ) ,
Attn: Joanne D.~~pn~ E,q/ '-..... _,, /
~ ~ / ~F ANDEffON
1£H~;-~~ Street
Anderson, CA"--96007 - '- . }-.
Ai:J)~filgl~
◊ ~~&AllenPC <' SSS qa~JiM:all, 9 Floor
~ ~to(CA 9S814
,,,,--I A~ :--,pavid Cohen I ,.,.-.. /\. V I
V \ ( P~ e: (916)444-3900
/)v ,~, fe (916)444-3826
t.~ ~ - /
The Ric~~ 4:ffo .. e__Housing Corporati?n rrRGAHC") being the limited partner of Owner ~~~~ ~ty, but not the obligation, to effect a cure on behalf of Owner within the ~ :per.l~.a~~rd.ed to Owner as set forth herein, and Agency shall accept such cure as if it had been.__ina(te by 6wner. Notwithstanding the foregoing sentence, failure to provide such notice-m--T-RGJ\H~ shall not result in any liability to the City nor permit Owner additional time tp ~fauliliereunder. \ \ ') \
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Docusign Envelope ID; 315105DE-O322-8C01-82F5-577757E70F86
EXHIBIT A
19. ATTORNEY'S FEES \\
The prevailing party in any action to enforce this Agreement shall be entitled ~ \\ reasonable attorney's fees as determined by the trier of facts in that forum. '--• ._:::-:\.:
-~ ~\
"OWNER" 1 r\) v
Date: I•\ i,"\ \03t 2003 LOS ROBLES SENIOR HOlJ~ ~ /
a California limited partne~ °"\ \ ~ \ J I
By: LINC HOUSING- ' ON/
a California no fit p ~ietJt--ci •
-----·-~
Date: oc.lcb ~v 7::3 2003
Anclrs...}(OMl!Reg!Agt-LsRbb-1.doc 20861/0005
9 63
Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
r-~ ATTACHMENT A
to
RENT ~IMITATION AND REGULATORY AGREEMENT
'-----::--\~
/ (
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All that certain real property in the City of Anderson, County of S~\State \f' V • California, described as follows: . ....__ "'-,' - ../ • • / ' ' ' , ---" " ' Parcel 1, as shown on that P~l Map filed for ~rd in the office of~ Reco~r of'th~ County of Shasta, State of California on September 17, 200~ in-B9o~Z_~f~ Maps, page(s) 9. I --.J , ---,.
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APN No: 201-150-003 \ ' , ) )
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AndnuiOMEReglAgt-LsRbls-1.doc Attachment A to Regulatoiy Agreement 20861/0005 64 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
ACKNOWLEDGMENTS \~
STATE OF CALIFORNIA ) - \ \
) ss .(____~
COUNTY OF Shasi<]. ) ~ ----\
/1~ \ ; )
On / /J fa '3 / 0 3 , before me the undersigned, a notary public, personally~* V Sc...otf /Y}or-ji;l1 ~ )
( .X. ) personally known to me, or ((,..-"'
,,--~ \ ~
( ) proved to me on the basis of satisfactory evi~· dence 1 \ "j / to be the person whose name is subscribed to the within ins ~ ackn'owledg'ed to me that h~ executed the same in hWller authorized capacity, .~ !'Y ~;::·gnatiue on the ~trument the ·person, or the entity upon behalf of which the,.~ n acted, ~ the instrument. , "-..__//
(' ' ' . ' ..•
WITNESS my band and official seal.
Signature&,<~ 10 ,., .. o \\(( ).r~ * ••• ·~~~,,. • *
,~ "'-.
STATE OF CALIFORNIA () {,._ (\ '--J
COUNTYOF_ r? ~ ])
0n ( vi')~ _ _ _ _ _ "1'"'
1 /_,',6eJore~e fh¢ osidersigned, a notary public, personally appeared __ I ( c,'v"----. " ~ ---.., < (__ ' '
( ) personally"kn~ ~ or
( ) pro~ co-~~ basis of satisfactozy evidence
to be the person~~ ~s ~scribed to the within instrument and acknowledged to me that he/she executed ~ e-s.ame in Jl'slher authorized capacity, and that by bis/her signature on the instrumen~.are-~ on.... ¥ the entity upon behalf of which the person acted, executed the instrum~ ~
"'- ' ~ -hand and official seal. ,'0
~ ~ ~ \...,.._ /) --- ~
AND..Deed 20861/0005
65 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On October 27. 2003 , before me, Debra
! •••
Knox, Notary Public, personal! 0~ ~
(' \\ 1) ~H=u~nt=e~r=L.~J~o=h=n-so=n ______ , ~ ____/)
J ♦ O ♦ O C 2CE~ .£0'; O ft 'J
a COmmlSslOn I 1259368
Notay Pubic - Calfomla
Son Francl.,co COll"tv
MvCOfflm.El?esAf/13. DM
□ personally known to me ~~ ~
l5i proved to me on the _J?asis_, of ka(!sfact~ry evidence _,/,. ,,,-J \... '--:,'I/ to be the person(~ wh~e name(~ ls/afe.-subscribed to the within instrument and ,fnowledg~ '-to me that he/s~efthey executed the same in ~isjl=loJAbeir ~llthorized capacity(ie&), and that by his/her/the~ignatur~~ on the instrument the person(st, or the entity upoo~1)aff of which the person(~ acted, execut~~ nstru~e-nt.
. WITNE~S. r_ny ~a~~<;>fflc1~l se~I.
;/"-...., . ' r 0
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Place Notary Seal Above
/ DPTIONAL (, (\ v
Though the data below is not re~~ by~a~ it l!'~~proye valua~le to persons r~lying on the document and could prevent frau
1 d\J'lent ~ o~r~ tt'achment of this form to another document. (~~~~ _,/ •
CAPACITY CLAIMED er ,•Gi EA~ '°'~ DESCRIPTION OF ATTACHED DOCUMENT Signer's Name: \ , Y; ~ ~ a Individual (,~"-- □ Corporate Officer / ~ I,--"-.~)
Title~)./ --.., •~ )~
D Partner(s) Q\ ~ml~etf
1 •
/ ~ '- t.;eneral D Attorney-In-Fact /(~~ ~ ..___,
D Trustee~• rJ. _ ~ D Guardi ~ :)v~or □ Other: _ '--..~ ~ c::::, ' -..:::_7
Sign~~ representing: \
Name ~ n(s} Or Ent~/ )
-✓ '
.Tf!le _or TYp8 of Document
-, . ' ·
Number Of Pages
Date Of Document
Slgner(s) Other Than Named Above
66 Docusign Envelope ID: 315105DE-O322-8C01-82F5-577757E70F86
EXHIBIT A
\'' ~~ 1R\~> "" \, _) ) "
.,,,,..- --------~' /
NOTARY SEAL /(---.......__,)\~
GOVERNMENT CODE SECTIO~JJJl.7 \>,_ .,../) . /4 I /\ '-.."...:./ • I CER.TIFY UNDER PENALTY OF PERJURY THAT THE _ ~TARY SEA ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS F~~OWS: )
Nam,ofNo~cy fdrJ.~/~,I( &~~ Date Commission Expires :S <A...L ·; ~ 2-o O "] Commission Number /~Z-Z / 3-? ~ "-.._~ ">
/ ' l 1 7 / "'-, " ~ ~ Place of \ 'I , I / . ./
---1.~~A-____::::~~~
1 ~ J_ rb~ce I0,/~0 3 __ \ /
67 ,,,. · .. 1,, · ;·117 ·· · "' ,,,,.. Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 _A(HIBIT A ( /..-- :·--«!ecRl!JEE>'BY>:' l ·~ I.J ' • • FIRST AMERICAN TITLE COMPANY
• LOS ANGELES
'MIEN RECORDED "1All TO:
.CITY OF ANDERSON
1887 HOWARD STREET
ANDERSON, CA 98007-1804
ATTN: CITY MANAGER
1111111 IR 11111111111111111111111
200a-00.3g4,2.3
Recorded I IE FEE
Official Records I
County of I \\
11\asta I \
Leslie Margan I \ \
Assessor-Recard,r I \ \
""t-"2L--...\\
12:JfiAI 14-Ho~_J Pagt-i--.t.~
__ ..... _,~Q <_,)
REGULATORY AGREEMEN~ - J '-<'-----1)
LOAN NUMBER 07-HOME~~ A--.._/
( ( \ \
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262364-82
68 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
RECORDING REQUESTED BY:
City of Anderson <\
WHEN RECORDED MAIL TO:
City of Anderson
1887 Howard Street
Anderson, CA 96007-1804
Attn: City Manager
~~ \~
0\2,,
/1~
CITY OF ANDERSON I \ I
HOME INVESTMENT PARTNERSHIPS P,R~ WQ~)'
//
REGULATORYAGREf.MEN'l: \\
LOAN NUMBER 07-HO~~~65 ) )
T ' ." ~ / d ' th" da THIS REGULATORY AGREEMEN (the "Agreement") 1s maac..and-entere mto 1s 1st y of September, 2008, by and among, Anderson R~ II Associates, a California Limited Partnership (the "Borrower"); and the City of Ande'rso~ the "City"), a municipal corporation of the State of California. /-
/ _O "-
A.
B.
C.
~ it9:-'s l)"--/ ◊ \_1 / 1 ._,..
The Borrower is the owner of ~pro~ y-l~ted in the City of Anderson, California and more fully deseri~JnJ!xhib,it A (the "Property"). / -./ ~ I The Borrower ha,$-P,ropofe(to de~~IQp the Property by constructing thereon a 79-unit rental housing,de\:rel~ ~t'o(_w!Jic)i 78 units will be Assisted Units to be occupied by low and ~~ -!9,w inc ~ households (the "Development"). •">) < "', The Deve,~~~~ fi . in whole or in part and r~~ted b! a permanent loan from tl):e C1ty m a--ptmc1pal amount not to exceed One Mdhon Nme Hundred Thousand _.Q?~~90rr,000.00) (the "Loan") from the Home Investment Partner~ s.J>ro~~Jlhc "HOME Program"). The Loan will be provided to Borrof,r~r by th. ~ ~ity in accordance with 42 USC 12741 et seq., 24 CFR Part 92, Califo~ 'i~ Heal~ ~d Safety Section 50896 and Title 25, California Code of ~ atiQ~ tions 8200 through 8220, (together, the "HOME Regulations"). In /ConsiQt~{folfOfthe City's commitment to make the Loan, the City and the California ~ ~e~~ of Housing and Community Development (the .. Department") have '-. ""'-.e~ ed into a Standard Agreement No. 07-HOME-3065 dated TBD, 2008. The ~ "-., ~~ s of the Loan shall be disbursed, used and governed by a City Loan ~, )\gre~tnent by and among the City of Anderson and Borrower dated September 1, ~ 'y- 08 herewith (the "City Loan Agreement").
~~-/ ' -~.,,. /
Regulatory Agreement - Anderson Regency Associates II Page I of30 69 Docusign Envelope ID; 315105DE-D322-8C01-82F5-577757E70F86 . . EXHIBIT A
D. The Standard Agreement and the City Loan Agreement, including all exhibits and attachments thereto, are incorporated in full by reference into this Agreement. Jn, the event of any inconsistencies between the tenns set forth in the City Loan Agreeni.ent and the terms of this Regulatory Agreement, the terms of this Regulatory ~eem\rit_ shall prevail. . z____-=::-~ \
E. Borrower agrees to abide by all provisions of the Standard Agreeme{~•-c;ity---.--.) \ Loan Agreement with respect to the Development and Borrower s}(all ~xecut~\)8- V promissory note evidencing its obligation to repay the Loan (the "N6te~a eed of trust in favor of the City to be recorded against the Borro~ef~~,•~ Property securing repayment of the Note (the "Deed of Tru4"f Bo~ r a~J to be bound by all terms and conditions of the Note and D_..eed,ofT~~- Thi ' , ote, the Deed of T~t, the Standard Agre~ment, the City Lo~ ent mt{!fm _p-greement are collectively referred to herem as the "Loan D • ents". (\ r \ \ F. As further consideration for the Loan and in ftu1h~ce oft¥ purposes of the HOME Program, Borrower has agreed to enter irito___ this..~ ement. The purpose of this Agreement is to regulate and :es~ ~cupanc_Y ,l'ents;"o~tions, ownership and management of the Development m co~~e with the requirements of the HOME Program. ~~
NOW, THEREFORE, the parties hereto ~~~ o (\ ii '~
1. Recitals. The foregoing recitaW8zC'' part1o(thJ Agreement. "~ \~/
2. Property. The Development1wi,J[§e ~~n the Property.
3. Definitions. Unless~ con~k requi~ otherwise, the terms used in this Agreement shall be goveme,d,..by the'detinitions--set forth in 24 CFR Part 92, and 25 Cal. Code of Regulations S~li.?a~0l.~ ltefere'nces to code sections refer to Title 25 of the California C~ o~ ons~ unless otherwise noted.
For the purposes of~'i\gree~)t, the following additional definitions shall apply:
a. ·•1-ss'mettp~~ a dwelling unit, the rehabilitation or construction and o~t,ition o~ ~hich is regulated by this Agreement.
\ ,. ) I ''-. , I
),:---''~ gif2le!Jouseho1ds" means Low Income Households or Very Low-Jncome J(H~ olds.
~ ~ <:X 'Fiscal Integrity" means that the total of Operating Income plus funds released ~ ~, "-,p~ uant to this Agreement from the operating reserve account is sufficient to (I) '\ )\ pay all current Operating Expenses, (2) pay all current approved debt service, (3) ) fully fund for at least twelve consecutive months all reserves established pursuant I to this Agreement, and ( 4) pay other extraordinary costs permitted by this _ _,,/
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EXHIBIT A
Agreement. The ability to pay any or all of the annual permitted distribution shall not be considered in determining fiscal integrity. \\
d. ..HOME Rents" means rents calculated annually by the United States 2.._~k of Housing and Urban Development ("HUD") and are: --~ \ ----\\
1) The lesser of the Fair Market Rents, as detennined by HUD, a rent~ t ) ) does not exceed 30 percent of 65 percent of area median i o e_ (Higli) ) Z HOME Rents); or ~~
.!~ '-.~ 2) 30 percent of 50 percent of area median income (Lof ~OMErrts):v e. "Initial Operating Year" means the first year,,.o~io~;~6n thereof, of the rehabilitated or newly constructed renta,' ~6using dev~pment beginning at the time of initial occupancy of an Assisted\Upit and endi'ilg\on the last day of the fiscal year of the Development. \_'~/J
f. "Lower Income Household" m~ ons or ~ ~ hose incomes are 80 percent or less of the area median ihco~as determined by the HUD. g. "Operating ~es" means th~~ed by the City that is necessary to pay for the essential recumng ?llJCJ-O~i1'.>evelopment, mcludmg, but not limited to, utilities, mai.n~nan&e~~g~ t, taxes, licenses, and mandatory direct or supJX)rtive tenii:fiLse~
1 ~eJoo.!_~ incJuding debt service, required
reserve account deJXJsits, oi'co f6r..Yoluntary direct or supportive tenant • ✓---~ services. / .---✓ ( /\
h. "Operatin~)~me" (~ etµlS an) qcome generated in connection with operation of the rental rfi?U5~ velo..e.me.9-1'1ncluding rental income from Assisted Units and non-as~~ted~ , rerital inc ome from nonresidential space, laundry or equipment rental(f~es, tyR.tai-sub'sidyyayments, and interest on any accounts related to the rental 'hous~ g ~ ~ment. "Operatin~ Income" does not ~elude tenant se~urity and eqt(ip~ ent deposits, payments received from voluntary direct or supportive tenapt-se~c :-Or. tax benefits received by the SJXlnsor. / ,,.---..___"' \
1. "ic4it" mea11s;all charges, other than deposits, paid by the tenant for the use and oc~u~cy Jr/an assisted unit and any mandatory charge for direct or supportive ~ aitt~ es in a rental housing development, including a utility allowance in ( ('animount determined by HUD.
~ ~ ~::i'ua1 _R<:<eipts" means project joods remaining after payment of expenses as ~~- ~ en bed m items 1 through 6 of Sectmn 25(b) hereof. ~ \) 0 "Very Low-Income Household" means low-income persons or families whose ~ ~// incomes are 50 percent or less of the area median income as determined by HUD. "-....__/
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EXHIBIT A
I. Reserved. \\
4. Compliance with Program Reguimnents C.::_~\
,,-----.____ \ \
a. The Borrower agrees that at all times its acts regarding the Deve~6priient-~ the ) ) use of funds provi~ed h~rein shall be in confonnity with all pro.vis~ns of i}i~ . . V HOME Program, mcludmg the statutes, the HOME Regulations_ ~ -SU@-~1c1es and procedures of the Department and of HUD pertaining-t:6mi~~ rrower acknowledges that they are familiar with such applicabli provisi6"5' ~ d ~ been professional1y advised tQ the extent n~:~ r ~ 'P._urpos,•<f enabhng the Borrower to fully comply with such provisi// -- -~--_,. .,/ b. The financial assistance provided under the(HPME Pro~ i~;vemed by 24 CFR Part 92. With respect to the assistance~Borrower agreJs to comply with all requirements and obligations as described in 24..__ CF~,92, as well as all provisions governing the use of H ~ ds- Botrowtr agrees to comply with the directives of the City as neces • ensure compliance with the obligations of the City as set forth in its agreemen "th HUD regarding the use of HOME funds. ;;,·-~
5. Term of Agreement. The te~ this (A.~ o\e~t sliall commence upon its recordation in the office. o~ the County Recontef,fur the !c~ tY )n which the Development is located and remam m full force and effect-~ hall]Pf>ly to the Development through and including the date which is ~3.i've (~ ~ears from the date of "Project Completion" as specified at 24 CFR 92.2. 'f~lessf\ ~ y prepayment of the Loan or sale, assignment, transfer or conve~~ of~ -~ velo,~ ent, unless terminated earlier by the City . pursuant to the t~ s of'this i\greemerit or extended by the mutual consent of the parties thereto. Non-y,.iths.Wlffi~ -s~ ~relf6ing, this Regulatory Agreement, and all and several of the tenns(~ e~ 4taIJ t ·nate and be ofno further force and effect in the event of (a) involuntacy~ .q.comR!i~ce y the Borrower with the provisions of this Regulatory Agreement ca ~ y__ a f~ osure of the Deed of Trust or delivery of a deed in lieu of such a for~ de~he Deed of Trust whereby a third party which is not related to the Bo~ er smµHalc. possession of the Development or (b) involuntary noncompliap~ with ~~provisions of this Regulatory Agreement caused by fire, seizure, requisitio~,-chang¢ jh a federal law or an action of a federal agency after the date hereof wJtr:clf~~ 'City from enforcing the provisions hereof or condemnation or a srrpffar'e..vent; provided, however, that the preceding provisions of this sentence shall ~etlse to ~ piji' and the restrictions contained herein shall be reinstated if. at any time bsequent to the termination of such provisions as the result of the foreclosure or the li~f a deed in lieu of foreclosure or a similar event, the Borrower or any related A.... ~on to it (within the meaning of Section 1.103-I0(e) of the Internal Revenue Code R}~lations) obtains an ownership interest in the Development for federal income tax ~ ses.
_./
72 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 .hXHIBIT A
6. Assisted Unit Schedule. Upon occupancy following the completion of construction. the Borrower shall rent Assisted Units only in accordance with the Schedule of Assist~\ Units set forth in Exhibit B, attached hereto and incorporated herein. \
7. Tenant Selection Standards. Borrower shall rent Assisted Units in the Develoj,;;;;;;1001), ~ to eligible households in accordance with the Management Plan approvecf~ ~ ) with the City pursuant to Section 12 of this Agreement. Such ManagCJ!liepf"Pfim ~y be periodically altered and such alteration must be submitted to and appJ'i~b~ th~,:] ty "-' prior to use. At all times, 20 percent of the Assisted Units!!!!!!! be ren~ ~ J,owInc~me households ~d, at initial occupancy, ~o less than 90 pei~ "i~· ~ ~ Umts sha!l ~ occupied by ho~eholds whose incomes are at 60ipercen·t· 8\1. belOWJ>f area median mcome as determined by HUD. The Man~ ent\J>~ shalyi elude among other things: (1) detail actions to be taken br Borrewer td·~ · ely market vacant units in a manner which ensures equal acce~ (o all persoflS'.fn any category protected by federal, state or local laws governing tii\criminatio~~ ahd regardless of any arbitrary factor; (2) specify reasonable criteria for ~termination p ~~enant eligibility, including household size in accordance with the minimtim~ugahcy standard specified in the HOME Regulations; (3) require th~eligible tena"iits-be-selected based on order of applications, lottery, or other reasonable m~d approved by the City; (4) specify procedures through which tenant applicants d~~to be ineligible shall be notified of the reason for their ineligibility and m~~~ this, i:f~ermination; (5) require maintenance of a waiting list of eligibi,e _appti~ and (6) specify procedures for obtaining information regardiggf. ros~ii) ~n-_ incomes as necessary to certify that such_income do~s not exceed~ ~~or1~~)~,w-incom~ limi~; (7) ~rmative f~ir housing marketing procedures as s~c1fled·1QJ.be Affirmative Fair Housmg Marketing Plan Compliance Regulatio~·~fJJUI);-.~) -.c;:FR Part 200.620(a)-(c), or similar affirmative fair housing mateting pl~\as'i'pproved by the City of Anderson. 0 \\ ) ' .!_Period of Afford~ ility,(!h.e BQ__'rrowir,icknowledges that the Loan is being made to the Borrower unde~/l!te teriys~ corulitrons of the HOME Program as part of a public program to enturb ~~le hoimog for project tenants. To preserve affordability of the HOME-assisted J>niect~ts.__ th€Borrower covenants that the HOME-assisted Project units shall rema{~dabl'N".9T a period of fifty-five years ( 55) (hereinafter referred to as the "Peri~ ~~ft'ot:da~ lity") fro~ the ~te of••Project Completion" as s~ified at 24 CFR 92.2.(~-iS mtend~'by the parties to this Regulatory Agreement, that this covenant shall run~ h th=t' '· d, in accordance with the provisions of 24 CFR 92.252, with the benefit of , • cove • t running to the City of Anderson, in order to preserve the public intep~~'a_iQE _'. : g the_aff~rdability of the HOME-assisted Project units. The Period of A,lforaabditr wil1 remain without regard to the term of any mortgage or the transfer of ~ ~ "a_~ p. other than by foreclosure or deed in lieu of foreclosure. <.~ 9. Mar)eting Plan:
~ ~ ayiorrower shall prepare and implement a Marketing Plan, subject to prior approved by , ____ .=.Jhe"City, that specifies how the Borrower intends to market the project to prospective tenants in the Project's market area The Marketing Plan shall specifically address how the Borrower intends to market the Project to underserved populations in Project market i'a_;~· 5 ol 30
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EXHIBIT A
area and the frequency of marketing efforts. The City agrees that the Borrower may utilize the HUD 935.2 Affirmative Fair Housing Marketing Plan for these purposes<> b. Borrower agrees to evaluate the effectiveness of the Marketing Plan in reacb,ipg \ \\ underserved populations on an annual basis and to revise it as necessary to be~~\ \ underserved populations that are not being reached. The revised Marketina-Piae...lhallbe-- \ submitted to the City for approval prior to implementation. . J(")) . ~) l 0. Nond1scnmmat1on. Borrower shall not d1scnmmate against any te."or-.p,[OS'pective tenant on the basis of race, religion, sex, age, disability, mari. 'tal s~~-ari'iotner arbitrary factor in violation of any state, federal or local law gov~ming d15fri~ iri'at~ in rental housing. Housing which is intended to benefit. ~ the~~e limi to senior citizens, is permitted only with the prior approval of~ -sele'ction crj!_eria' the City. I / (' ____,,
11. Rental Agreement and Occupacy Procedures (~e("Lease"). j \ a. Eac~ eligible household sele~ted to occupy a un~~the-Dev~~ment shat~ enter into a wntten rental agreement with the Bo,JFQ:wer on a fonir-apJSroved by the City containing such provisions as are requm:l'hz t_he HOME Regulations. The Lease shall be for a term of not less than one year-~ ss a shorter term is mutually agreed upon between Borrower and tenant~
b. The Lease shall !!!!! contai9'tily ofit~~ lfo"dling7provisions:
"-.I A \, ( ( _,7)
I) Agreement by the tenant-t~ ~t6 admit guilt, or to a judgment in favor of the Borrdwer or Bog<S~ s ':.\-g_entjn a lawsuit brought in connectibn with the lease; I ( 1\ V
2) AgreemeQtj>y m¼ ~t th\t 1the Borrower may take, hold, or sell personal propeef f f hous~ho@menibfers without notice to the tenant and a court decj.si6n on)ii'eri~ <>itfie parties. This prohibition, however, does not apply to;an ~ me~ y the tenant concerning disposition of personal pr~°Yreatainms in the housing unit after the tenant has moved out of the unit(;The-Borr~~ may dispose of this personal property in accordance with 1~ 0> 3)j ~ greem~ , by the tenant not to hold the Borrower or Borrower's agents \ l~Awa,nsible for any action or failure to act, whether intentional or r ~ egl.!g_~(;
~ <_ ~ t of the tenant that the Borrower or Borrower's Agent may institute ~'-~ a lawsuit without notice to the tenant;
,'\) 5) Agreement by the tenant that the Borrower or Borrower's agent may evict the ) tenant or household members without instituting a civil court proceeding in I / which the tenant has the opportunity to present a defense, or before a court "--.., __ // decision on the rights of the parties;
6) Agreement by the tenant to waive any right to a trial by jury; 74 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
7) Agreement by the tenant to waive tenant's right to appeal, or to otherwi~ \ challenge in court, a court decision in connection with the lease; and . \ ;_--- \ \
8) Agreement by the tenant to pay attorneys' fees or other legal costs ev~ \ tenant wins in a court proceeding by the owner against the ten3Bt:-Th_e tenant,--\ \ however, may be obligated to pay costs if the tenant loses. ( 0 > 2) c. The Borrower shall establish reasonable rules of conduct and oc~cu :--.~ U utes shall be consistent with state law and the HOME Regulatio~...-1 • es-- be in writing and shall be given to each tenant upon occupancy. # chan!r hal ~ me effective no fewer than 30 days after giving writt~tuce the~f to 9ch household. / / __ j ', .........__.,. 7 - d. The Borrower shall not terminate the tenancy o/ r.efuse to renew tlie ease of a tenant of rental housing assisted with HOME funds e~J~~ for serio~ br repeated violation of the tenns and conditions of the Lease; for vid-~9n oft~ period; or for other good cause. Any termination or refusal to renew ~-Shfill'be by the owner's service upon the tenant of a written n~t~ in compliance-with State law and specifying the grounds for the action. ~
e. The Borrower shall maintain the preJll!~ com .· iance with all applicable housing quality standards and local code re(~ifeij"ients.
◊ ( \ 1/j' ),
\ / 12. Rents. ~ \, 1 ( )
a. For all Assisted Units, Re,nfs~ ll ~ - ~ d high HOME Rents less a utility allowance. For Assisted/l(ri'its that' , · t-aside for Very Low-Income Households, HOME rents •~~• e~ Loj I
OME Rents less a utility allowance.
b. A minimUlll Jr ~O'j,e~ t-of an-..<s'sisted Units shall be occupied by Very Low- . / '- ~l ', :----._ ' Income ~ ~se~ ds--at Rents that are no greater than the Low HOME Rents less a utility allo'?~ :._, ~ V
c. ~ny h~ ~~ ~~d. ~ _an Eligible Household upon occupancy but whose income mcreapes--abev~'\he ehg1b1hty level must pay as Rent the lesser of the amount payable by th~ tfnant ...-State or local law or 30 percent of the household's adjusted monthl.tm,~;,-except that, Assisted Units subject to low-income tax credit rules 1 ~ ecti@32'' of the Internal Revenue Code shall be governed by such rules. l " "--""-.. d"-\ • otwith~ ing the foregoing or any other requirement and/or restriction contained "'-h.~n, the Rent charged on the Assisted Units shall not exceed the rent applicable to ,, M'~vidual or family qualifying under the percentage of area median income (AMI) \ 'level for Shasta County as follows: 8 Assisted Units shall be rented at the 30% AMI ) l9vel, 30 Assisted Units shall be rented at the 50% AMI level, and 40 Assisted Units 1 ,shall be rented at the 55% AMI level.
,__.,,/'
13. Security Deposits.
75 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
a. Security deposits shall be required of tenants only in accordance with State law and this Agreement. \ ~
b. Any security deposits collected by the Borrower or Borrower's agent shall~ kep\\ separate and apart from all other funds of the Development in a trust accokm~\ depository insured by the Federal Deposit Insurance Corporation (F.D.1£j,~~er1\ comparable federal deposit insurance program, and shall be held and{<icsb~ ) accordance with State law. The balance of such account shall at alftilil.es equ¥ ?r 1 exceed the aggregate of all outstanding obligations under said accotrii~~~JUed interest thereon. 1;------....5)\ ~
14. Certification of Tenant Income and Household Size,-------, (\ \ ) / ,,---.J "'--.. '-...__,.
a. The income and household siu ofall householc&l>ccupying~iSffil"units shall be certified by the Borrower prior to occupancy ~ re-certified , ually thereafter in a manner approved by the City and specified in ~ ~ velopm~ tYs Management Plan. ,.....__ ,____,,., , I b. If the income of a tenant upon re-certi[~ion exceed's'lhe-upper limit for Lower Income Households, and there are no other-..requirements statutorily imposed by another federal or State funding source oi t~'c:redit program, that tenant shall not have its Lease terminated as a result Jhen>Qf, bu(Shall be charged Rents as provided in Section 12 (c). //J "'"-...... "-)
t·) ( \ // ~ c. Where a household occupymg,aunit d~ gn, ed for occupancy by a Very Low Income Hou~ehol~ ~o longer ~~fieii(the time ~f re-certificat_ion. but qualifies as an otherwtse Ehgible ~ ~ol~~~ents appropnated for that income level shall be charged. I ( \~
U- ~ ssisted Unit ~Ytitutio~ < '---·./)
a. For p~;~s,of~ ~ ~~,c~ parable" units shall be those listed in the same group in tb~~~ e Ud it Schedule set forth in Exhibit C, attached hereto and incorpo: ~ ~ ;;
b. # of pt(pi~ ~droom:
Borrower\~hall reJ i acant units to households with no less than the number of people C ~i~the following schedule:
~~~~nit Size Minimum Number of Persons in Household
~',,~ SRO 1 ,''\ ~::: ! ~~ ) ) 2·BR 2
~ I/ 3-BR 4
~ 4·BR 6
S~R 8
i',1 ,;_,.: 8 tJI JO
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EXHIBIT A
c. lf, upon re-certification, the income of a household occupying an Assisted Un~ \ reserved for occupancy by Lower Income Households exceeds the upper )lmitf<>\ lower income, the Borrower may designate this household's unit as non!~ ~ provided that all of the following conditions are satisfied: ~ ----- I) Not later than the date the Borrower designates the unit as non~G'q ) 2, Borrower also makes available a comparable vacant unit previouslY..,_ cle~ed as non-assisted to be designated as an Assisted Unit, or desi ~~ )reV~~ nonassisted unit occupied by a L~wer Inc~me_ Household as Assist~~pmt---ci9 agrees to occupy the next available unit with a~ In~~~~'7·old; and 2) The rent charged for the newly designated .,{s'~sted Unit ~lnor:xceed the high HOME Rent. \ \ \ \
d. Where a household occupying an Assisted Un~ ~ /-0l upancy by Very Low-Income Households no longer ~ ifies as V~-ow::"lncome at the time of recertification. but qualifies as a Lowe~me Household, the following shall apply:
I) Borrower shall designate the uni~ ~ unit for Lower Income Households / ,2 , /' "-
( \ / \ J
2) Borrower may increase~ e),oukh lc,1's Rent up to the High HOME Rent; ~~~/ 3) Borrower shall design~r~ nex~~ilable comparable Assisted Unit reserved for Lower Income Hous'f11plds as ~ \Assisted Unit reserved for Very Low-Income Households· and \\ )/• 7/v ~ ~, /_,
4) The Rep t bh · dlor th.~ new1y designated Assisted Unit reserved for Very Lowlnco~ ~o olds ~al!)ot exceed the Low HOME Rent.
6. Rental A ''> . "'- and . v ce Pr cedure_s
The rental;~ an~ evance procedures shall be in accordance with California Code of~e~ulation,,Vitle 25, Division 1, Chapter 7, Subchapter 19, Section 8307. \' J
a. ~ye:t!~AU rental or occupancy agreements for HOME-assisted units shall be fo{.tenh-o ot less than one year unless by mutual agreement between the tenant and Z::-- ~ Borrow~.)
~~roval All rental or occupancy agreements are subject to City approval; and ~ ~ 11nclude the following:
',,.;::_~) J l) Provisions requiring good cause for termination of tenancy; '---...........-/
77 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 2)
3)
4)
EXHIBIT A
A provision requiring that the facts constituting the grounds for any eviction be set forth in the notice provided to the tenant pursuant to ~e ~~ \\
/-· \\
A notice of grievance procedures for hearing complaints of tenan~~~ \~ appeal of management action; and /~ ------..) ( ,,-~·\
A requirement that the tenant annually recertify househ · ~come ',ri~ <J size. ~/
17. Foreclosure after Project Co!DJ!letion .,.--, 0 /__; ~)) The Borrower promises, covenants, warrants and refJ;eSents that ~-~-:Omplete the Project. Whether or not the Project is in fact compI,il?d shall be 5?l~ly determined by the City of Anderson. Should the Project in fact have bki't (;?Ompletesf, ~en the Period of Affordability shall terminate upon foreclosure or trans~~o( foreclosure, except that the Affordability restrictions shall be ~ved accordingto1he original terms if, (a) during the original Period of Affordability, th~~er of record before the foreclosure, or deed in lieu of foreclosure, or any entit>: tha!_ irlel~~ ~e forme~ owner or thos~ ~th whom the former owner has or had fami\yor~itt~s--tles, obtams an ownership interest in the Project or the Property, or if (b) ~f ~l~g~tity or transferee in lieu of foreclosure assumes in writing~d a~ t/Jie bpwi'd by the terms of the HOME Agreement and the Loan Documents, asthbt(te~)s defined in the HOME Agreement !.t. Maintenance and Maoagcmciii~----=::,-' I
a. Borrower is s~ly ~~nsib~or all maintenance, repair, and management functions for ~ ~b:~oeril~JJ~ing without limitation, selection of tenants, recertificatioy,~~ [ ti~ liold' ~ome and size, evictions, collection of rents, routine and extraordi~ • ~d'rept.acement of capital items. Borrower shall maintain all units and co ' • n ~in ~ safe and sanitary manner in accordance with local health, builtfiruz. "'an~ h~g codes, HUD housing quality standards pursuant to 24 CFR Se¢~~U)9,.,_and the Management Plan described above. ( ,,.,----..._, \ "'---✓
b. Borro~ ~! may,f ipl the prior written approval of1!1e City, c~ntract ~th~ man~l)t for the perfonnance of the services or duties required m paragraph ~
• . Q~~ch an arrangement does not relieve the Borrower of responsibility ( or proper~ onnance of these duties. Such contract shall contain a provision ~ lowing'tbe Borrower to terminate the contract without penalty upon no more than ~tty day's (30) notice. Upon a detennination by the City, and notice to the ,Bo~er thereof, that the management agent has failed to operate the Development ,, in accordance with this Agreement, the Borrower shall exercise such right of lt~ination forthwith and shall make immediate arrangements, which shall be subject / to City approval, for continuing performance of the requirements of this Agreement. _//
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EXHIBIT A
c. Borrower may operate the Development itself only with prior written approval of the City. Subject to the terms of the Subordination Agreement and upon a determi~~on by the City. and notice to the Borrower thereof, that the Borrower has failed to ~ operate the Development in accordance with this Agreement. the City ma~ ui the Borrower to contract with a management agent to operate the Developme~ \ make ·such other arrangements as the City deems necessary to ensure perfunn~ce of--..)\ the requirements of this Agreement. ( r, \ ~ l
19. Hazard and Liability Insurance. ~ ~ ,
a. The Borrower shall at all times keep the Development ins~~~. flood (as required pursuant to 24 CFR 92.358), an~~ otbet-~u.ard~, pausalities, liabilities and contingencies, and in such amoun~ fUUHor suchie"i~-as set forth in Exhibit D, attached and made a part hereof. A~ ~ surance ~~ies and renewals thereof shall be issued by a carrier and in a form ~cceptable t9 the City. Property insurance policies shall name the City as an add:i,t101!31 loss P)iY¢e and liability insurance policies shall name the City as additionalb'~-as approved by the City. ..__ _ ___...,.
b. Insurance proceeds and condemnation a' ~ or any loss to or taking of the Development, or any portion thereof.-s~be'a.:,blied or utilized by Borrower as provided in the Deed of Trust exec;otira,~~r and referred to in the Recitals hereof. ◊ ( \ J \ J \, ,· I) ('-._ I I 1
20. Annual Report. The Borrower s~ff~ ~ilie City an annual report, as required by 24 OFR part 92 and 25 Cal. C~'o.f)leg ~~s, Section 8218(a)(2) no later than 90 days after the end of each fiscal ye £ estab~s~e for the Development pursuant to Section 18(a) of this Agreem~roThe J¼~ shall qontain a certification by the Borrower as to such infonnation as the Gitf'may'tberl.,r~ including, but not limited to the following:
/ \ ':?."'"
a. The ~sca(~n~~ ~ ~ velopment, including a financial statement for the previous fi¢al<year~at-includes a balance sheet and a profit and loss statement indicating ~rE~us 'or:.._deficit in operating accounts; a detailed itemized listing of income c).lld.ex • ~the amounts of any fiscal reserves and the total amount of Resid#R,ooe~ • 1ved. Such financial statement shall be prepared in accordance with thi requi~nts of the City. The City may require that the financial statement be au(ij_ted at ttJ '-orrower's expense by an independent certified public accountant & e~bk'to"the City or other person designed by the City . ..;:! ,~u~ tial physical defects in the Project. including a description of any major "-...~)air or maintenance work undertaken or needed in the previous and current fiscal , ye~ Such statement shall describe what steps the Borrower has taken in order to ~ '\ h,taintain the Development in a safe and sanitary condition in accordance with ~ ~ ) applicable housing and building codes.
/ / fth De • d' • '--.____c/ The occupancy o e velopment m 1catmg; I) The verified income of each current household; and
i' ,:i;,..: 11 ul 30
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EXHIBIT A
2) The current rents charged each household and whether these rents include 1 utilities. \
d. General management performance, including tenant relations and other ~ \ information. /~" -----..:::\
1 \
( ( .,\ )
e. A summary of the information received from the re-certification ~ ants' 1'<:_pmes. f. Evidence of a currently paid haz.ard and flood insurance policy~~ le to the City in the amounts specified in Exhibit D. ( f \, . ' ,~ g. Evidence of a currently paid liability insurance ~am~ tas an additional loss payee in the amounts specified (it{Exhibit D.(\ h. Other information reasonably required by the CS.tty,0,)
21. CityReviewandlnspections. ~ ~-/
a. Upon not less than 48 hours' notice to ~ wer, the City or its designee may, at any time during the term of the Lo'1;~ illd''inspect the physical premises and inspect all accounting records pe~tn-' ~ ~ 'co6:struction or operation of the Development. Upon req~~ by th~ CitY,( ~ $:)rrower shall notify occupants of upcoming inspections of thei~ its ill * co/dance with State Law. -.......; ~I
b. The City may perform or~~ t~ onhed audits of any and all phases of the Borrower's activities ~ted to th~1j;i~pment. At the City's request, the Borrower shall provide, aQ}.s owrl. expense,)., audit of the financial condition of the project certified by ~,ind~d~nt'certifietJ public accountant. ~ I /'; '-, ~ '-..._/ c. The City(~~;);~~t ~ ~ ,er information that it deems necessary to monitor compliance'4th ~ ~ments set forth in this Agreement and the Standard Agreemen~b..._~orrow,r shall promptly provide such infonnation.
22. Annual,Ol!CraQn~et.
~-::~ ...... ~ I ( -,
a. The ti.seal yeJ for the Development shall commence on January 1 and conclude on ,Are~)jy
~ ~~than 60 days prior to the beginning of each subsequent fiscal year of the ..._ ~velopment, the Borrower shall submit to the City a proposed annual operating ,, bud~t on a fonn provided by the City. The proposed annual operating budget shall \ ~et forth the Borrower's estimate of the Development's income, operating expenses Fd debt service for the upcoming year, reserves, proposed rent adjustments, and a /Year-to-date operating statement. Annual operating budgets and rent adjustments are .___/ subject to approval by the City.
80 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
c. Annual operating budgets are subject to written approval by the City in accordance with the terms of the Subordination Agreement. Increases of five percent (5%)~ less in the total operating budget and increases in specific operating expense categories (i.e. renting expenses. special expenses. utility expenses. operatyt_Jl! an°'.~' maintenance expenses. taxes and insurance expenses) of five percent (5%)-etj~ shall be deemed approved by the City. Borrower shall operate the DevdopQlent 1 accordance with the approved annual budget. ( r~\ z )
d. Annual rent adjustments are subject to written approval by the Cit S FoNh~~ ects approved by the City using high HOME rents, rent increases o ~~ the upper limits for High HOME rents less a utility allowance s 1 aft be ~ tt\ed a~ ved by the City. For projects approved by the City w.in__g,Lo.w Q~E re~~ ,ess a utility allowance, rent increases that do not exceed the yifper-lYtiits fo low-_!!~ME rents shall be deemed approved by the City. For pro#& approv~ y ffie City using rents below low HOME rents, rent increases, which !~ot exceed ~e most, recently published annual Labor Statistics Consumer Pri~ ~dex, Resid1ntial Ren_t for All Urban Consumers for the West (CPI) shall be dee~appro~ed by the City. In the event this particular ClP index is no l~ r published;-the Ctty shall select a similar index for this purpose. ~
e. Borrower shall operate the DeveloPl!)fflt-i~ ~ ~ ce with the First-Year Operating Budget approved by and on file wi~~~'-Su61i budget shaJI show all anticipated income, debt service and e~ nses\f~r ~ ~a~eqjent, operations, reserves and maintenance for the first fiseal,,year'orj'P6rt!9'J''thereof following initial occupancy.
23. Required Reserves. /('~~ ---~-./
a. Commencing na(!ater ~e en~ of the second month fol~owing the i~tial . occupancy of th¢ 6~ op~ nt or ~ h other date, as the City shall designate m writing, the,.1i.,Jro~-i'~ l establish a segregated interest-bearing replacement reserve 8<?¢'?unh~an F.D:-1 . . or other comparable federally insured financial institution., ~ 'iJo ower sKall make monthly deposits from Operating Income to the replaceme~~ ac ~t in amounts as specified in the approved Initial Year Operatil_!g..Bttdg~aih<lsubsequent annual budgets. Initially, the annual deposit shall be $3~814,-or ~ ch atfter amount as approved by the City in the Initial Year Opentti~g Bu~e't. The City may review the adequacy of these monthly deposits on an annphl_basis)1¥1d require adjustments, as it deems necessary. Notwithstanding the ~
-re ing,,_~ te that is S years from the date of this Regulatory Agreement and 1 ve , ars thereafter. and at the request of the City Borrower shall engage the (:- ':services . {;a third-party professional to prepare a physical needs assessment of the ~ "---r~~ement needs of the development. The annual deposit to the replacement ~ , r~"e account shall be adjusted based upon the results of the physical needs ,A..__ ,, assessment report. The cost for the report shall be an eligible expense from the "-._ ~ i r~ lacement reserve account. Withdrawals are subject to approval by the City and the ""'~/ })epartment and shall only be made for capital improvements, such as replacing or ~-/ repairing structural elements, furniture, fixtures or equipment of the Development that are reasonably required to preserve the Development. The annual deposit required under the Replacement Reserve and Security Agreement executed in connection with 81 Oocusign Envelope 10: 31S105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
the Borrower's pennanent financing is deemed to have satisfied the requirements under this section so long as the annual deposit required thereunder is consistet)t~th the requirements herein. \ ~
b. Upon receipt of the finaJ installment of capitaJ contribution from the Bon£;~~ investor limit~ partner (as such installment is made purs~t to the tJrms-o~th? ----..
Borrower's First Amended and Restated Agreement ofL1m1ted P~~)::J· such ) ) other date, as the City shall designate in writing, the Borrower ma~ blis~ iip. </ operating reserve account or sub account within the project's gene~~ account. Borrower may transfer funds from this account only· ~ev~· ate~asJ:i shortages resulting from utility costs, abnormally high va cf es, an(i\o er ex~s. seasonal fluctuations in or from month to month. ~qty appr~ or disapprove a request for withdrawal from the 01':1',~ing--reser\l'e .4CEl00J!lf within 60 days of receipt of a writer request. A written wt~wal r~t' t is not disapproved with in 60 days of receipt shall be (d med approy~- The Borrower may make monthly deposits from project income to 'th 9perating/.e~erve account in amounts as specified in the Initial Year Operating~dgetan~{ubsequent approved annual operating budgets. Initially, theJ3orrower shaltdep6sit $99,622, or such other amount as approved by the City. Ifth~-a'c~unt reaches a balance equal to or greater than an amount equivalent to twelve mo~~ · ss income for the Development. the City may approve a reduction in pa)Jllent~ aQ_ amount necessary to maintain the account balance at this level. /~ A~
A t /\ . ./
24. Accounting Records. In a mann,~ubje t(to 5]ify approvaJ, Borrower shall maintain on an accrual or modified accrual basis,"generMJ~r accounting system that is posted monthly and that accurately and~sho~J assets, liabilities, income and expenses bf the Development. All records ~ d books'"relaurig to this system shall be kept for a period of at least seven years ..... ~ in sq__ch,~ m81$ef as to ensure that the records are reasonably protected from desti;uctiorror,t~n~ All records shall be subject to City inspection and audit. /, '< <~ - 25. Use oflnco~( ~ tio .
a. The Bo~ ~E' ~ts\l'!02er's management agent, shall promptly deposit all Operating lnco,:}ina-ae tregatecl account established exclusively for the Development with an F.D.lr'-\· or o,r I omparable federally-insured financial institution. b. ~'ats-1ro~ the account shall be made only in accordance with the provisions ( ~ thi& )\S!'eement, and the approved budget, and shaJI be disbursed, applied, or ~ ,reservecl-a.a,d set aside for payment when due for all cost related to the Development "-~ l~ing, but not limited to, the following: ( l) salaries, wages, and any other " co~nsation due and payable to the employees or agents of the Borrower or ' ·1'1_anagement agent employed on site in connection with the maintenance, ) ~inistration or operation of the Development, along with all withholding taxes, j nsurance premiums, Social Security payments and other payroll taxes or payments _/' required in connection with such employees; (2) all charges incurred in the operation of the Development in connection with utilities, real estate taxes and assessments, and liability, fire and other haz.ard insurance; (J) payments of required interest, principal, 82 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
impounds. fees and charges, if any, on loans, including any deferred developer fee until such time as the deferred developer fee is reduced to $0, but not includin~ Loan, which are secured by liens on the Property and which have been approve~ h~ . the City; ( 4) all other expenses incurred to cover operating costs. includi~t!te f~. \f the managing agent, the managing general partner, and any extraordinary,e~ ~i~ accordance with the approved annual operating budget of the Development.~ as---, otherwise approved in advance by the City; (5) deposits to operat~·n~ ~. \ ) accounts or replacement reserve accounts; (6) payment ofup to$ , annu'1.ly in 'v1 asset management fees to the partners of the Borrower per the Ame e~,R,estated Agreement of Limited Partnership of Borrower, as amended l;s»a~sr · ~nt€- ( ( \ '0
c. The balance of Operating Income remaining after ~yme~'ts descri7 • in section
25.b. above shall be deemed Residual Receipts roe/ bepaid and'app](e'd as provided in Paragraph 27 below. ( \\
26. Non-assisted Units and Common Areas. \ , ) )
~/
a. Borrower shall establish and implem~~ rent structure for non-assisted residential units, if any, that ensure the fiscal integrity·o~fthe De. velopment. Borrower shall estimate all income and expenses attributa~ the non-assisted units in the annual operating budget described in Sect~ herem. d shall report all income and expenses attributable to non-assis,&l'units-~h.~ Annual Report described in Section 20 herein. ◊ \ \ / / ) f..7
('..... I L /
b. Borrower shall maintain agd..r~~'oi-assisted and non-assisted units equally without regard to their designatio(\ ~sisted or non-assisted. c. Tenant selecti.,t~tic~ no.J.ssisted units shall comply with State and federal nondiscri~~~ii~1t;,t'a.ws~,=:-: • -:::-,/
d. The exte6o'u.'~ "wm~~ighting, walkways, mailboxes, landscaping. nonresid~ al<$_pac'e;~other common areas of the Development shall be safe. clean, welf mi • ~ed, and in good working order.
/~~") 27. Res· d • °' d • stributions.
I l I
a. ~ ~reeu.t(,~p/i/o) of Residual Receipts shall first be applied to payments on the / L~"-as requifed by, and subject to the provisions of, the Note. If ,, <;~ -~~strib " ons" shall refer to any amounts remaining after payment in full of expenses as, vided in Paragraph 25.b. above and required payments on the Note . . ,\oift:iutions ~hall be avail:tbl~ to be ~istributed to, or retained by, the Borrower or ~ ) fY party having a ~enefi~•~ mt~rest m Borrower or the Development. ~~. /Borrower shall receive Distributions only once for each fiscal year of the _/ Development and only if there is a determination by the City that the Borrower is in compliance with this Agreement and all Program requirements. 83 Docusign Envelope ID; 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
d. No distribution shall made to Borrower in the following circumstances: (' ,\ 1) When written notice of default has been issued by any entity with an ~ ~bl~k beneficial interest in the Development; ~ --~ \
------........ \
2) When the City determines that the Borrower or the Borrower's ~ gem~ t agent) J has failed to comply with the City's written notice of any re~ ~e requ ment, for proper maintenance of the Development; ~-~--::::)
3) If all currently required debt service and operating expef~~~ • t~~d; or .,.,,.--.., \ \ /
/ -' ' ......... ,.,,..--1 ~
4) If the replacement reserves account or othe( rl serve accQWtts are not fully funded pursuant to this Agreement. ( '
1 \
\\ / /
28. Restrictions on Sale, Encumbrance. and Other Acts:-..~-// ____ /'
a. The Borrower shall not make any sale, brance, hypothecations, assignment, refinancing, pledge, conveyance, or tran"s~ any other form of the Property or the Development or of any of its interes),-~~-n, t with the prior written approval of the City and the Department. No~s~c • • g to the contrary hereinabove, the respective interest of~ Bomh1'~r•£ ,~ii/ limited partner and the Borrower's investor limited partner sh)u( be.~s~$bl,
1 without the consent of the City or
Department. Moreover, the SJ>CC..!,_alJimi_~ artner of Borrower shall be permitted to remove the general partnertnyeo'ff9~ ause in accordance with the terms of the Partnership Agreement.( ( \';v
b. Other than ro~~ ~~en~ ,-tht Borrower shall not :u1d to, rem~el, r~move, reconstruct,. i degto1tsh BQY par{of the Development without the pnor wntten approval~{~l_ty. ~
c. Toe Borro~ shi!ll ~ ,mit the use of the Development for any purpose other than that ~ 6y,~ Agreement without the prior written approval of the City. _1 ,,,---~, ✓ d. The ~1rrowei •~~U not incur any liability or obligation in connection with the Deve%>~nt, p~er than for current operating, management and maintenance costs ~ Q~~btedness evidenced by the Note nor incur any liability, charge, ( (~ 'me,nt, or obligation whatsoever that is secured in whole or in part by any ( interesti{t.~r lien or encumbrance on the Property or the Development, without the ""'riQr written approval of the City. The City may permit refinancing or a~diti?nal ,, fi.g secured by the Development only to the extent necessary to mamtam or '\ \ mprove the Development's fiscal integrity, improve financial condition. or to J $ aintain affordable rents.
I J
....._ ./ The Borrower shall not enter into any contract relating to rehabilitating or managing the Development, except as authorized by the City. The Management Agreement 84 Docusign Envelope ID: 315105DE-O322-8C01-82F5-577757E70F86
EXHIBIT A
entered into between Borrower and Brackenhoff Management Group Inc. is hereby pre-approved. \\
f. Borrower shall not enter into any Lease for more than a single rental un.it, ~ ~d\ '\ lease of the Development or any interest therein without prior written appfuvat.~\ City. The City may require that such lease allow for tennination wit~~ys upon..._ \ request by the City. ('~ ( "'--~ ,!,_)
g. The Limited Partner of Borrower shall be permitted to convert the i~~\1 remove one or more general partners for cause and with the co~ O(y, pursuant to the terms of Borrower's Partnership Agreement./ Moreover,1ift6 ~~ited partner of Borrower exercises its right to remove the,.gen,eral ~ ner ~ veof, the City shall not unreasonably withhold its consent to tht~lute gt~ral1'ri,ner. The interest of Borrower's limited partner shall be trapsferable tl\any affiliate of the limited partner without the consent of City. Th~ ~ terest of ~'r Sorrower's limited partner shall be transferable to a non-affiliate of\{ne Limited 1artner with the consent of the City, which consent shall not be unreasonabtywithhelg/ ~ -'-.._ _ _/ h. Th. e City may approve a sale, transfer or~ ance provided that all of the following conditions are met: >-.~
1) The existing Borrower is in coq{pt1~ this Agreement or the sale, transfer or conveyance will result in the (\ur/ 9f cql)l~,dsting violations of the Agreement; V ~\_, (( ) /
2) ~e ~uccessor-in-interes!J_~'th~,~~I agrees to assume all obligations of the ex1stmg Borrower pu~~!~uwto ~~ment and the Program, and meets any requirements, whichffY be in~islence for CHDOs under the applicable regulations. () \ '\ l ;' (
A> A.. \, •, _/
3) The success~r4h~ h~~nfo~strates to the City's satisfaction that it can own and ot~f.tt~ eZo~vef~nt in full compliance with all Program requirements; and '-~~
4) Any terms o ~e-sale, transfer or conveyance shall not threaten the City's security or,1fle--s~ssor's..'ability to comply with all requirements of the HOME Program aiid~ is Ass;e\ment.
\ . ))' . '- ___... i. /~Af(;:,ity•sfta1t,grant its approval for a sale, transfer or conveyance subject to such ( enns~ ~onditions as may be neces~ to pre~erve or establish the Fis~al Integrity ~ of the De\.'.,elopment and to ensure compliance With HOME Program requirements and t~ -Agreement Such conditions may include the deposit of sales proceeds, or a , port~ thereof, to maintain required reserves or to offset negative cash flow, the ~ . \ ~apture of syndication proceeds or other funds such other conditions as may be ~~r essary to ensure compliance with the Program requirements. ~"- 2~. Foreclosure aft~r Project Completion:
85 Oocusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
The Borrower promises, covenants, warrants and represents that it shall complete the Project. Whether or not the Project is in fact completed shall be solely detennined ~ the City
Affordability
of Anderson.
shall tenninate
Should the
upon
Project
foreclosure
in fact have
or transfer
been completed,
in lieu of foreclos~
then the Period
excep
~
\ \
that the Affordability restrictions shall be revived according to the original te~-a)\ during the original Period of Affordability, the owner of record before the foreel~~--or:-..., deed in lieu of forecJosure, or any entity that includes the former owner ~~~ )) whom the former owner has or had family or business ties, obtains an ~ ership qit~ t Z in the Project or the Property, or if (b} the foreclosing entity or transferee,~ie_u_pf / foreclosure assumes in writing and agrees to be bound by the terms~~~I( Agreement and the Loan Documents, as that term is defined in f ~HOM~'. .,.greem_~t \ "'- LI 30. Use of Equity Proceeds. Borrower shall, pursu• • to-the tenn~'f-thc(,Yartnership Agreement, aUocate, distribute and pay all equity p/~, if ~~owaid the costs of completing the Development. The City may appro~~ in writing, \future syndications of the Development where it determines that such syn~ cation is in Jhj best interest of the Development. '~/
31 Vinlation of Re ulato A t b
a. I~ the e~ent of~ breach or violation ,.9~0 • sions of ~is _A~eement, the City may give wntten notice to the Borrower1~a 9~~~ special hm1ted partner thereof by certified mail or any express deliver>; s#~ \\ith a delivery receipt addressed to the Borrower at th~ addr~ss sta)Jjn;--.._. this ~~e~t. If th~ breach_ or vi_olation is_ not cured to the sat1sfact1on of the '61.!)',WJ~ time penod specified m the notice, which shall not be; fewer th~--:J(} ~';-the City may declare a default and mJy seek legal remedies includin\'1(e folio~))
I) Collect a1,,-f'£ahd)nc~'me-J cl>nnections with the operation of the Development and use/flie ~mfie imlthe r es-~ e funds for the operation and maintenance of the Deve~JF~,~ "0
2) Take ~;;Zsio~~)Development and bring any action necessary to enforce any right~ ~ rrower growing out of the operation of the Development, and operate1he'De~ment in accordance with the terms of this Agreement until s4c.~ time ~ ~e City, in its sole discretion, shall determine that the Borrower is a~in~~tion to operate the Development in accordance with the terms of .,---this'~ ent.
~
( ,~~ any court, State or federal, for specific performance of this Agreement ,"<)r for the appointment of a receiver to take over and operate the Development in , a$Cordance with the terms of this Agreement or for such other relief as may be '\ '\ appropriate. It is agreed by the Borrower that the injury to the City arising from a )) default under any of the terms of this Agreement would be irreparable and that the I amount of compensation that would provide adequate relief to the City, in light of __ _,,/ the purposes of the Program, would be impossible to ascertain.
I':~,: 18 VI 30
86 Docusign Envelope ID: 315105DE-O322-8C01-82F5-577757E:70F86
EXHIBIT A
4) Subject to written authoriz.ation from lenders with a priority security interest in the Property and the Development. accelerate all amounts, including outsb\mfing principal and interest, due under the loan and demand immediate repayment\\ thereof. Upon a failure to repay such accelerated amount in full, the C~ mai \ \ proceed with a foreclosure in accordance with the provisions of the Deed._of~, and State law regarding foreclosures. ~" ----...___ ____ \ ( /~~, \ ) )
However, in the event of a nonmonetary breach which cannot ~ nably ~e\ cured~ within the time period set forth in such notice, the loan may not be ~ ~ ed hereunder if within said designated time period Borrower:· ~o~w (,_~ ~ecial limited partner has given written notice to City ofBomf~r's i'nt~ :on ~ said breach, has commenced to cure such breac~ ~ ~iligently rosecuted and effected such cure which shall be comp~ ~1ater th__~ays from the date notice of such breach is given. ( ( \\ -
5) The City may seek such other remedies as m~ye~IC1 under law'. b. In the event that the breach or violati~volves ~--tci'tenants or other charges in excess of those pennitted under thi~eement, the City may demand, and seek as an additional remedy, the return of such ex~~nts or other charge to the affected household. . ~ . .
c. The tenants of the Assisted-Rental ti;~i~U~e considered to be third-party beneficiaries of this Agree)n~~ arid sM!l have such rights and remedies to enforce the requirements of this Agreem.~~~,he available to third-party beneficiaries under the law. (? _ '\V
d. The remedies 9-_t:!J,e Ci~ ' !eund,~ cumul~tive, and th~ exercise of one or more of such reme./les shall--.not-.be'Eieein6d an election of remedies and shall not preclude the exercis,e by
1 tb€;City~o"fie or more of its other remedies.
e. Notwi~~g to the contrary herein, any cure of any default or Event of Default ~~~d~y the special limited partner of Borrower shall be deemed to be a 5-lJJ'.e.-~ ~~wer and shall be accepted or rejected on the same basis as if made1or--tendered ey-J3orrower. Copies of all notices which are sent to Borrower undet fe tenri~ dfthis Agreement shall also be sent to Borrower's limited partner c/o TBD\ '--.___J)
32 .. ,t:;~ ~---~ , Ri ts. The City retains the right, at its sole discretion, to assign all ~ or<j>)rt of its nib under this Agreement for the purpose of ensuring compliance and ~ ~~~ of Borrower's duties and obligations hereunder. In addition, the City may desigpate-~ agent to act on its behalf in monitoring compliance and enforcing the ,,,.-.__ pr6vis) ns hereof.
~~ 33 . . Amendment. This Agreement shall not be altered or amended except in writing, , ~ ted between or among all the parties.
87 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
34. Partial Invalidity. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions her~~ shall not in any way be affected or impaired thereby. \ '\
35. Binding on Successors. This Agreement shall bind, and the benefits thereo~~~ to, the respective parties hereto, their legal representatives, executors, admi • -:a.. --------. successors in the office of interest, and assigns, provided, however, that the = -r~ y ) \ not assign this Agreement or any of its obligations hereunder, voluntarily-Or &y operaJi n of 0 law, without the prior written approval of the City and the Department. ~ J, ,,,--" 1,,--..,___,
36. Recording A~eemen~. This Agreement, and all amendments t,h~reto, s~~ be e~ted by each of the parties. Th1s Agreement, or memorandum~ f, slutl) be ~ jded against the subject Property in the official records of the coun~ -in,which th~'~velopment is situated. { ( (\ ~
3 7. Hold Hannless. Borrower and its successor in interest. agree to fu<{emnify, defend, and hold hannless the City and its respective agents, employ'ees ~~rs from any and all claims, losses, liabilities or causes of action (including reasdnable1tttomey's fees) arising from or in connection with Borrower's manage~t, maintenance or operation of the Development. ~
38. Waiver. No waiver by the City of an/~f..~ fault under this Agreement shall be deemed to be a waiver of any other or sJ9s({lient ~ ch thereto or default hereunder. V ~ '/ ! ; I ,
39. Captions. The captions used in tfiis~ ~eqjf~~e inserted only as a matter of co~venience and for reference aa,dJn)io way'define, limit or describe the scope or the intent of this Agreement. 1
, ( <.\ -V
A )' "'"- \ ' I J 40. Governing La~.(Th1s ~ emeht-shalf be construed in accordance with and governed by the laws of the StatJ·-0~)tifor-ola:-./
41 N • w ((k~ - ~d ;:> • • • b dbe th • . ot1ce. ntten not1c an ou1er wntten commumcat10ns y an tween e parties hereto shall be ad~'ed._as se ,@rth below unless and until a party hereto has, in writing, communicated a~'ent itddress to the other party hereto. /.,,_,,_ --" \ "--..)
Borrower{ ( ", ,Anderson Regency Associates II, a California Limited Partnership \'··,___)/Affordable Housing Land Consultants, LLC.
~.........._ '""'-=_,,/ 16633 Ventura Blvd., Suite 1014 { (~ Encino, CA 91436 Attn: Alexis M. Gervorgian
~ <:: ~ "~~ '\)
~/
_./
LINC Housing Corporation
110 Pine A venue, Ste 500
Long Beach, CA 90802
With a copy to Borrower's limited partner
c/oTBD
88 Oocusign Envelope 10: 315105DE-O322-8C01-82F5-577757E70F86
EXHIBIT A
City: City of Anderson
1887 Howard Street f\
Anderson, CA 96007-1804 \ \
Attn.: City Manager ~~~
38. Attorneys' Fees. The prevailing party in any action to enforce this Agreem~ ---....___ including the residents of Assisted Units, shall be entitled to reasonable a~r(eys~ ~ court and witness costs as detennined by the tier of fact of the action. '0 /
39. Special Conditions. The Borrower agrees to comply with the s~ c6ndif , if any, as set forth in Exhibit E. which is made a part hereof. In the event ~f any i~, ist~ between the terms set forth in ~he Exhibit E Special Condjti&nspf ~J-~eg~l~1)' Agreement and the terms of this Agreement, the terms pf the-'Spec1afC~ns shall prevail. ( ( \\
40. Subordination Agreement. In the event that there ~e' ~ y c~~ ~ in this Regulatory Agreement and the Subordination Agreement, the terms i:>(!he--~ ination Agreement shall prevail. ("-, ...__ -
41. Incmporation. The following Exhibits, all,~ ~ereto, are hereby incorporated into this Agreement: ~ ~
Exhibit A: Legal Description 0 \ (71 ) .J
Exhibit B: Schedule of Assistea'Q.nit.s • 1 L, /
Exhibit C: Comparable Unit Schedule> ~...____, ...
Exhibit D: Insurance Requirer6;ents ' '.v I
Exhibit E: Special Conditio?5 ( \ \
[Signature Pages Follo~ J (~ ~~/
(C(~~
Ir ·~~ '·--\
( \ ) I \ ,, I
/,-~~
~~ ~) '---..__/
89 Docusign Envelope ID: 315105DE-O322-8C01-82F5-577757E70F86 .t.AnlBIT A
WHEREAS, this Agreement has been entered into by the undersigned as of the date first above written.
BORROWER: ~
Anderson Regency II Associates, a Cali{omia_ '\
Limited Partnership -----==-::-:__\
rr, -),J
By: ~ ,~
LINC Housing Corporatioii'(~5)
I \ I
Its: Mana;-::)"ncral ~~~
CITY: ( \ ~ City of And- ', / / ~✓-
By: ~
Its: ~
117~v ◊ ~
~~1 /~ ✓ ~,;--ti__,./'-+c-1er-k --~---
/,,-::Y
/ ( <\ /'-.. I l'
q,(~0
(\
/~~ (_ ) )
/,,,---~ "--~ <~
~',~
~ ,)\
~~))
"_,/
Re~ul;itory Agre<!rncnt - Anderson Regency Associate!- IL Page 22 of30 90 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
WHEREAS, this Agreement has been entered into by the undersigned as of the date first above written.
BORROWER: \'\
Anderson Regency As~~ Cal~\\
:??-== ~ =o)j
7,_'-.." "" <
LINC Housing Corporati{n;' \ \ I }\ ~
-~ \ '"-_/ Its: ,Manazing·Gerieral Pattner ,.,/ / / (\- CITY· (
1 \ l \
• \"-, 1) City of Anderson~/ ~ '------/
By: ~---.__, ~ -----------
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~~ CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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91 Docusign Envelope 10: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
WHEREAS, this Agreement has been entered into by the undersigned as of the date first above written. 22 30
92 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California \
Cowttyof 0"'4' ~\
On 1'\a,,,.tJ,e... 12 , 2008 before me, t\c.,..btk. l. }).,isNotary P~A \ l} Date Name and Title of Officer (e.g .• "Jane D~ N~tary P~blic") / ~ ~/
personally appeared 1(,-J- J>e ~iS , ______ 9f1tlNC.Jlousin~ Corporation, a California Non profit corporation, General Partn;rf f AndCfSbn R. cy Associates II, a California limited partnership ~ \ "--.______,,/) Name(s)ofSign~r(s) . ( ( ~ Who proved to me on the basis of satisfactory ev1d. ce-~ be the;P,erso~whose name is/~subscribed to the within instrwnent and acknowted~{n?e that he/~ tbe, executed the same in his/b8rhbeir authori capacity~, and that by his/barlO:lett signat~ on the instrum"ent person'8r,'°or the entity upon behalf of which the person'8f'acted, ~ ~ ......
executed the instrument. /~~ '0 /; /" '--
I certify under PENALTY OF~RJU}lY Jfer)rfaws of the State of California that the foregoing paragraph is true an~ ect;C ,/
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WITNESS my hand and officiahe'al.
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93 Docusign Envelope ID; 315105DE-D322-8C01-82F5-577757E70F86 £XHIBIT A
CALIFORNIA ALL .. PURPOSE ACKNOWLEDGMENT
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who proved to me ®JbQ ~ 'of sati~ ry evidence to
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he/si.eMtey ~ the ~"?:J: i.bi§/her71lt181r authorized
capacity(ies)_, ~ that b'f .!!L • signature~ on the
instrument the 'Rets0n'8t, or A · entity upon behalf of which )..._ the person($) ---.__ ~ -"'~dAd the instrument. '.,? ____ _ I ce~ ~er PENALTY OF PERJURY under the laws
of the State f California that the foregoing paragraph is tnr r')~l'fGJ.. ~
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Description of Attached t \. ·,.'------ / J
Title or Type of Document~~h£Y"'7t:•1tk;f:
Document Date: (:!)~ - ·~ ""-'°' Pag°" ~~~¥ _____ _ Signer(s) Other Than Named~ ~ V _;:-·"-. v
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Signer's Name: f ( ~ , D Individual \ ·, /
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02007._,. Nolary Aasccla!lan• 9350 De SctoAt.'8., P.O.Bclt 2G•Olirlsoo1II.CA 9131l-2402•www.NalionalNollry.org 1111m 15807 Rearder:Callcl-F,w I~ 94 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF SHASTA
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(:__~~ /~ --- On 2008 before me, ______ _, No~f ublic \~ ____ D_a_t_e->-== Name and Title ofOfficer(e.g., "Jane ~~a1~!y,ijblic") .,,---~ "-,, _,
personally appeared ________ as / ,-I ~ of\ ·ty
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Anderson \ ,
Name(s) of Si~~ \~/
~ho proved. to me on the_ b~i~ of satisfactory evi~~Jce to be th~ rson(s) whose name is/are subscnbed to the w1thm instrument and acknQ_~edged to me/that he/she they executed the same in his/her/their authorized capacity(!_~~t by his/her/their signature(s) on the instrument the person(s~ the entity-upgn-tiehalf of which the person(s) acted. executed the instrument.~
I certify under PENAL TY OF PERJURY-under tll(iaws of the State of California that the foregoing paragraph is true~ d co~~(j~V
Wl1NESS my hand and officfaVseal. '-\ 1 / /' )
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95 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
Exhibit "A"
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PARCEL 2, AS SHOWN ON PARCEL MAP PM #03-()6 BBNG A "REDMSION OF P~ -·~ SHOWN ON THE MAP OF PHASE 1, PARCEL MAP NO. 00-02, FILED FOR RE~PTEM~ \ 25, 2002 IN BOOK 31 OF PARCEL MAPS AT PAGE 58, SHASTA COUNTY 1 8FJN~. A) PORTION OF SECTIONS 45 AND SO OF THE P.B. READING GRANT IN THE~ , O~ANP ~ ) SHASTA COUNTY, C.AUFORNIA", FILED FOR RECORD MARCH 8, 2004 IN • l<,~f ARCEL MAPS AT PAGE 40, SHASTA COUNTY RECORDS. ~
APN: 201-680-0- ( (---',\)
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96 Docusign Envelope ID: 315105DE-O322-8C01-82F5-577757E70F86 •
EXHIBIT A
Exhibit B to Regulatory Agreement
SCHEDULE OF ASSISTED UNITS
Sixty Three (63) I-bedroom units will be floating units.
Fifteen ( 15) 2-bedroom units will be floating units.
97 Docusfgn Env~ope ID: 315105DE-D322-8C01-82F5-577757E70F86 ..
EXHIBIT A
Exhibit C to Regulatory Agreement <\ \
COMPARABLE UNIT SCHEDULE ~~~
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All sixty three I-bedroom Assisted Units are deemed comparable to a.ll<: ~oth..er l-b~;x>m 0 units in the Development ~ ~.. J
All fifteen 2-bedroom Assisted Units are deemed comparable t9 Iai::l '
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98 Oocusign Envelope ID. 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT A
Exhibit D to Regulatory Agreement <\ \ \
INSURANCE REQUIREMENTS ~~ \
At close of escrow, the City must receive a one-year prepaid Certificate o~~~e -) \ policy (or a binder followed by a certificate within 30 days ofloan clo~gl evide!ff g (./ the following coverage: ~-~
I. HAZARD (PROPERTX) I~ ~ Perils: All risk; or Fire & Lightnini;~ded\Cri\'el'J)v andalism & Malicious Mischief. / ( \\ ~
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Covered Property: Structure; and All risk co~ ~0 1:J
Replacement value ( or less if 'approvedhy City).
No less than 90 ~ .
$2,500 maxi~ ~~;:~uc.tib~ )e-.per occurrence; or
$1,009.,_maxillll!u'n ed'Uf ~ per occurrence if the completed projebl,\l~ue 'is)leslthah/$300,000. ~ '- '- I\ \_j/
C~~•,s--,,.~sPaiabJ~dorsement required insuring the
Ctty. <'\V
Amount:
Coinsurance:
Deductible:
Endorsement:
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OTHER PROP :Rt¥-- S
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Flood Ins ~ required !o 80 percent of replace~ent cost if the \.,'·v;~ r-0perti1s located ma 100-year flood plain.
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Steam Boiler&'ilelat_ed
MachinR ,__ ~ (When applicable) 80 percent of replacement cost coverage is ( ( ) \ required.
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2. P~SlvE GENERAL LIABILITY
~ ( ~ ~ unt: $1,000,000 per occurrence; or $2,000,000 per occurrence for buildings with elevators. 3 , 0TH R COVERAGE
~ ~- ) Joss of Rents: Coverage shall insure 75 percent of annual gross rents. ~ 'Workers Compensation: Required by State law if employees are involved. 99 Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 rlXHIBIT A 1 Named Insured:
Additional Insured:
Cancellation Clause:
Notification:
ALL POLICIES MUST INCLUDE THE FOLLOWING \\
Borrower ~~ The City of Anderson and its officers, /~ --.:.:::\0 agents, employees, and servants must be named~ ("--\\ <_,) additional insured. . "'~0)
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The City must be notified 30 days prior tcr'<jShrella. n o(t~ insurance policy. ( \ \ V
~ \ ' ' ' ,....__j The City must be notified prior1to cancellatfon..oclapse of coverage or in the event of 1\ claim. \\
\" )) The City should be identified on all insurance documents as fc.1~- ---- City of A~
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100
Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT B
Chapter XI
State Recipient Rental Proiect Long Term Monitoring
Section II. -TOC
section
II. Rental Project Long-Term Monitoring by State Recipients A. OVe,rv iew ............................................................................................ Xl-3 B. Monitoring Methods............................................................................... XI ~3
1. Desk Review.............................................................................. Xl-4
2. On-Site Review ........ ................................................................... Xl-4 C. Desk Review Activities
1. Preparing and Reviewing Background Material.. ......................... Xl-4
2. Examining Requested Documentation ......................................... Xl-4
3. Notification of any Findings or Concerns ..................................... Xl-5 D. Required On-Site Monitoring Frequency ................................................ Xl-6 E. Required Scope of On•Site Monitoring by State Recipients ................... Xl-7 "Rules for Combining Compliance Requirements of HOME-assisted and Tax Credit Properties"
"Annual Project Compliance Report"
"Instructions - Annual Project Compliance Report"
"Completed Sample-Annual Project Compliance Report"
AJI of these docul'Tlents can be found at
http:/lwww.hcd.ca.gov/fa/home/MonitoringStateRecipients.html F. HOME Regulatory Agreement Provisions.................................................. Xl--8 G. Minimum Areas of Review
1. Continued Income Ellgibility ........................................................ Xl-11 Acceptable Forms of Verification, Chapter II Appendix II-I Timing of Annual Recertifications, Chapter IX, Appendix IX-B
2. Continued Occupancy Rule Compliance ..................................... Xl-12 Project Compliance Report,
3. HOME Rents, Utility AUowance. Rent Increase ............................ Xl-12 Utility Allowance Schedule, Chapter IX, Appendix IX-I
a. Non~Section 8 Households ..................................................... Xl-12 b. Project Based......................................................................... Xl-12 c. Tenant Based ........................................ ., ...... ., . ., ...... .,................ Xl-12 Rent Adjustments for Fixed vs. Floating Units ............................ Xl-13 XI - 1
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EXHIBIT B
Chapter XI
State Recipient Rental Proiect Long Term Monitoring
Section 11. - TOC
4. Affirmative Marketing, Fair Housing, and Section 504 ................. Xl-14
5. Property Standards ....................................................................... Xl-14 HUD-52580-A Inspection Checklist,
"Exterior, Grounds, Public Areas" Checklist
"Unit Inspection" Checklist
6. Lead-Based Paint. ............................................. ., ........................... Xl-16 LBP Lease Addendum
7. Project Lease Compliance 24 CFR 92.253 (a-b-c) ...................... Xl-16 Prohibited Lease Provisions, Chapter IX. Appendix IX-D
Sample HOME Lease, Chapter IX, Appendix IX-J
8. Tenant Selection 24 CFR 92.253 (d) ............................................ Xl-16 (For more information about Lease Agreements and Tenant Selection Plans, see Chapter IX "Applications, Rental Project Management, and Recertification")
H. The Monitoring Process .......................................................................... Xl-17 Outline for Monitoring Policies & Procedures
I. Records Retention .................................................................................... Xl-19 All of these documents can be found at:
http://www.hcd.ca.gov/fa/home/monitoringforms.html
Xl- 2
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Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 II.
EXHIBIT B
Chapter XI
State Recipient Rental Proiect Long-Term Monitoring
Long-Term Monitoring BY STATE RECIPIENTS
A. Overview
State Recipients are responsible to the Department for the long-term monitoring of HOME-assisted rental projects for the entire period of affordability. The Department. as a participating jurisdiction, is responsible to HUD to ensure that State Recipients are monitoring appropriately for continued compliance with federal and state regulations.
At a minimum, a Regulatory Agreement, along with a Promissory Note and Deed of Trust or other acceptable document must be executed by the project owner and the State Recipient. The State Recipient is responsible for ensuring that these executed documents are recorded as a lien on the project in the official records of the county in which the project is located. The Department will request a copy of these documents for review, and may make sample security documents available for your use.
Any State Recipient which fails to maintain the affordability requirements for HOME-assisted rental housing projects willJbe required to repay the Department in full (including any required interest}. For more information about HOME affordability requirements, see Chapter I of the HOME Contract Management Manual.
Each HOME Recipient city or county is required
to have comprehensive, written monitoring
policies and procedures in place for an annual review
of its HOME-assisted rental project(s).
B. Monitoring Methods
Although operational responsibility for long-term compliance with HOME requirements is vested with the property owner, State Recipients have an obligation to monitor compliance for the entire period of affordability. During the affordability period, HOME will continue to annually contact the State Recipient for updated project monitoring documentation.
Xl - 3
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EXHIBIT B
Ongoing monitoring entails the use of two basic types of monitoring methods:
1. • Desk reviews. These reviews involve examining project reports and various types of documentation submitted by the owner I management agent.
2. • On-site reviews. These reviews are conducted at the project and involve the inspection of both project conditions and records.
HOME-assisted rental projects having 26 or more total units must receive an annual site visit by State Recipient monitoring staff. Smaller projects with 5 to 25 total units must receive an on-site visit at least every other year. Very small projects with a total of 1 to 4 units are to be visited at least every third year. (Note:
this schedule may change with expected amendments to the HOME Final Rule.
See Section 92.504 (d) of the federal HOME regulations.) Therefore, when planning monitoring activities for the year, State Recipient monitoring staff must determine which projects will receive a desk review and which will receive a site visit.
A desk review of owner submitted documentation is acceptable for those years that the City or County is not required to conduct a site visit. After completion of the desk review, prepare and send a monitoring summary letter to the owner.
Depending upon the results of your desk review, a response from the owner and a subsequent clearance letter may be warranted.
Bear in mind, however, for projects experiencing distress or when there is clear evidence of compliance concerns, you may want to schedule more frequent desk reviews and/or site visits regardless of the project size. Monitoring staff may schedule these reviews or visits to take place at any time during the year. They may also be scheduled on short notice during the year in response to evidence of problems.
C. Desk Review Activities
A "desk review" by State Recipient monitoring staff generally involves three basic steps:
1. Preparing and reviewing background material. Monitoring staff should gather the project case file, past reports and other relevant records to gain an up-to-date understanding of the project's status and potential concerns.
2. Examining the project's annual reports, regulatory agreement and other requested documentation. Send the owner/ management agent a notice requesting specific documentation for the desk review by State Recipient monitoring staff. You must make every effort to complete the review within the time period established in your notice. If additional information is needed to complete the review, monitoring staff should promptly contact the owner/ managing agent to request additional information.
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EXHIBIT B
Please refer to the "sample document checklisr below for documentation that you may want to review. The first item must be collected annually from the owner I manager for any size project and reviewed annually for compliance by the State Recipient monitoring staff. The same is true for the second item i[the rental project has 5 or more HOME-assisted units.
SAMPLE DOCUMENT CHECKLIST: ACTION LIST:
1. completed Annual Project Compliance 'V (compare to rent roll & verify all entries Reoort (data for all HOME-assisted units) for accuracy and compliance)
2. completed Annual Affirmative Marketing 'V (review Report and attachments for Analvsis Reoort (if 5 or more HOME units) compliance)
3. copy of owner/agent notice to tenant of entry (verify that the tenant was given proper for last annuat inspection for unit #s notice per the lease language)
4. copy of owner/agent completed annual unit (verify that each sampled unit Is inspection checklists for unit #s Inspected annually)
5. printout of project's current rent roll (compare data m Annual Project Coma/lance ReDOtfJ
6. copy of the HOME rent & income limit (verify that the correct 1/mHs were used schedule used by the owner/agent for income during the Income certltlcatlon process) certifications
7. copy of the completed form HUD-52667 (verify that the correct utility allowance used by the owner/agent for initial certifications was used In Column G of the Annual & recertifications Project Compliance Report)
8. copy of all pages of income certification (review a sample of tenant flies for documents for unit #s compliance & accuracy)
9. copy of current application for residency, if (review a blank application for HOME & revised within last 12 months Fair Housing compliance)
10. copy of project's current residential lease, if (review sampled tenant's lease for HOME revised within last 12 months compliance)
11. copy of project's current insurance (verify amounts and effective date) coveraae
12. copy of project's annual audit/ financial (verify that the Regulamry Agreement statements for fiscal vear: requirements have been met)
13. copy of project's proposed Operating (verify that the Regulamry Agreement BudQet for fiscal vear: requirements have been met)
14. other:
3. Notifying owner/ managing agent of any findings or concerns. If the review reveals deficiencies or compliance violations, the owner/ managing agent must be promptly notified in the form of a monitoring summary letter.
The letter must describe the deficiencies and specify a period (usually 30 to 45 calendar days) for corrective action and a response. Once the deficiencies have been corrected, promptly send a clearance letter to the owner I managing agent.
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EXHIBIT B
D. Required On-Site Monitoring Frequency
On-site reviews by State Recipient monitoring staff take more preparation and planning than desk reviews. The State Recipient monitoring staff person is required to perform on-site monitoring visits according to the schedule set by the federal HOME regulations.
The minimum schedule is based on the total, (not just HOME-assisted), number of units in the project.
Total # of units in project Minimum Schedule
1 -4 units
5- 25 units
26+ units
every 3 years
every 2 years
annually
(Note: this schedule may change with expected amendments to the HOME Final Rule. See Section 92.504 (d) of the federal HOME regulations for any updates.) Reminder:
A State Recipient city or county may choose to schedule site visits according to the "minimum schedule" rather than annually for projects less than 26 total units.
I However, for each HOME-assistetl household,
the owner / agent is required to conduct an annual unit Inspection, an annual income certification, and submit a completed annual Project Compliance Report to the State Recipient for review and approval.
During the affordability period, HOME will continue to annually contact the State Recipient for updated project monitoring documentation.
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EXHIBIT B
For the following State Recipient Long-Term Monitoring forms go to our website at:
http://www.hcd.ca.gov/fa/home/MonitoringStateRecipients.html. ► Annual Project Compliance Report
► Instructions - Annual Project Compliance Report
► Completed Sample of the Project Compliance Report
, Annual Affirmative Marketing Analysis Report
► Sample Site Visit Notification Letter
► Sample Monitoring Summary Letter
► Sample Monitoring Clearance Letter
► Sample "Tenant File Review" Checklist
► Sample "Exterior, Grounds, Public Areas" Checklist
► Sample "Unit Inspection" Checklist
► Sam le "Affirmative FH Marketin "Checklist
E. Required Scope of On-Site Monitoring BY STATE RECIPIENTS As a rental project is completed, the responsibility shifts from a HOME underwriting staff person to a State Recipient (HOME Recipient) monitoring person. Local jurisdictions are responsible for the long-term monitoring of their rental projects.
There are a number of state and federal requirements which must be met to ensure the proper management of the project for the period of affordability. These requirements are detailed in the project's Regulatory Agreement.
Please take the time to set up a HOME document reference binder in preparation for the long-term monitoring process. At a minimum, each HOME-Recipient and Owner I Property Manager should have the following documents readily available:
► HOME Regulatory Agreement and any amendments
► Riders to Regulatory Agreement (i.e., for 202 & 811 projects) ► Management Plan
► Management Agreement
► Affirmative Marketing Plan and Annual Affirmative Marketing Analysis Report ► Technical Guide for Determining Income & Allowances for the HOME Program - third edition January 2005
► If property is also receiving tax credits, see: "Rules for Combining Compliance Requirements of HOME-assisted & Tax Credit Properties" at:
http://www.hcd.ca.gov/fa/home/MonitoringStateRecipients.html ► Instructions - Annual Project Compliance Report
► Completed Sample of the Annual Project Compliance Report All monitoring forms and instructions are available at:
http://www.hcd.ca.gov/fa/home/monitoringforms.htm
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EXHIBIT B
State Recipient and HOME-Program monitoring staff will periodically conduct onsite visits of HOME-assisted rental projects to ensure continued compliance with state and federal regulations. Owners and managing agents will be better able to address any questions or concerns if a HOME Program reference binder is easily accessible.
Reminder: HOME provides State Recipients with a monitoring form entitled "Annual Project Compliance Report-Rental Housing." It is to be completed annually by the project owner or management agent and reviewed by the State Recipient for program compliance. Please visit our website at http://www.hcd.ca.gov/fa/home/Mon itorinqStateRecipients. html. for the following:
''Annual Project Compliance Report Instructions"
''Annual Project Compliance Report"
"Completed Sample - Annual Project Compliance Report"
HOME will annually request a copy of the owner I agent's Annual Project Compliance Report during its long-term monitoring of State Recipient processes.
State Recipient monitoring staff must approve and execute the Report prior to submitting a copy to HOME.
Each State Recipient must prepare for long-term monitoring as an on-going process to assess the quality of performance throughout the period of affordability.
Office and on-site monitoring will provide information to allow State Recipient monitoring staff to annually make an informed judgment about the asset management and HOME program compliance
of each HOME-assisted rental project.
F. HOME Regulatory Agreement Provisions:
Each State Recipient City and County having a HOME Regulatory Agreement between the State Recipient and the Owner must monitor for owner/ agent compliance with all provisions of the Agreement. For example:
► Provision 6 - Assisted Unit Schedule
► Provision 7 - Tenant Selection Standards
► Provision 8 - Nondiscrimination
► Provision 9 - Rental Agreement & Occupancy Procedures "the Lease" ► Provision 10 - Rents
► Provision 11 - Security Deposits
► Provision 12 -Certification of Tenant Income & Household Size ► Provision 13 - Assisted Unit Substitutions
► Provision 14 - Maintenance & Management
► Provision 15 - Hazard & Liability Insurance
► Provision 16 - Annual Report
Xl - 8
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EXHIBIT B
► Provision 17 - City / County Review and Inspections
► Provision 18 - Annual Operating Budget
► Provision 19 - Required Reserves
► Provision 20 -Accounting Records
► Provision 21 - Use of Income from Operations
► Provision 22 - Non-assisted Units and Common Areas
► Provision 23 - Residual Receipts and Distributions
City I County written monitoring policies and procedures should contain detailed information to assist your HOME monitoring staff. The following are provided as examples and are not intended to be all inclusive:
Provision 6: Annually verify that the Project Compliance Report submitted by the owner/ manager contains the correct number of HOME-assisted units and the unit sizes specified in the Regulatory Agreement, Exhibit B.
Provision 7: Review the current Management Plan if you have not done so already and any revised Plans for compliance. Annually verify compliance with the 20% Rule and the project-specific required AMI levels on the Project Compliance Report submitted by the owner I manager.
For projects with 5 or more HOME-assisted units, a minimum of 20% of HOMEassisted units must be occupied by very-low income households (defined as households whose annual incomes do not exceed 50% AMI); paying rents not exceeding the Lm'j' HOME rent level.
Note however, all rent and income levels must be set at the AMI levels approved by the Department as specified in the Regulatory Agreement. (These may be lower than the federal High HOME and Low HOME limits.) Rent and income limits for the current year can be found on the TCAC or MHP Websites.
TCAC: http://www.treasurer.ca.gov/ctcac/compliance.asp
MHP http://www.hcd.ca.gov/fa/mhp/2012lncomeRentsLoanLimits.pdf Provision 8: Annually monitor the project for Fair Housing & Affirmative Marketing compliance, i.e., advertising, signage, Fair Housing poster, Affirmative Marketing Annual Analysis, recordkeeping, etc.
Provision 9: Annually monitor that each household has a properly executed and dated lease with the correct lease term and review any revisions to the lease for compliance.
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EXHIBIT B
Provision 10: This section requires that the City/ County annually monitor that none of the HOME-assisted units have rents or incomes exceeding the required AMI levels approved by the Department.
Provision 11: Verify that the Security Deposit account was established in compliance with the Regulatory Agreement requirements, i.e .. , separate account, insured FDIC. Annually monitor that the account has sufficient funds.
Provision 12: Annually monitor a sample of HOME-assisted households for correct initial income/asset certifications and correct annual recertifications.
Note the details on a separate checklist for each household file monitored.
Provision 13: Annually monitor that the rents are correct for units redesignated from low income to over-income & very low income to low income.
Provision 14: Annually monitor that maintenance issues are corrected as described in the Management Plan & that recordkeeping is adequate.
Provision 15: Annually monitor that insurance coverage is equivalent to the requirements of the HOME Regulatory Agreement, Exhibit D.
Provision 16: Review the Annual Report for compliance with the requirements of the HOME Regulatory Agreement.
Provision 17: Annually conduct an inspection of a sample amount of HOMEassisted units. Note the details for each unit on a separate checklist.
Provision 18: Annually review the proposed Operating Budget for compliance with the requirements of the HOME Regulatory Agreement.
Provision 19: Verify that the Operating Reserve and Replacement Reserve accounts were established in compliance with the requirements of the HOME Regulatory Agreement and annually monitor that any withdrawals are made in compliance with the HOME Regulatory Agreement as well. Annually monitor that the accounts have sufficient funds.
Provision 20: Annually review the project audit in coordination with the project's Annual Report.
Provision 21: Verify that the Operating Income account was established in compliance with the requirements of the HOME Regulatory Agreement.
Annually review the project audit, project Operating Budget, and project Annual Report to verify a positive cash flow.
Provision 22: Verify that maintenance policies and procedures are the same for assisted and non-assisted units. Annually inspect common areas noting the XI - 10
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EXHIBIT B
details on a checklist. Review the Management Plan to ensure that the project's rent structure and tenant selection are in compliance.
Provision 23: Annually verify through the project audit and Annual Report that residual receipts and distributions are in compliance with the requirements of the HOME Regulatory Agreement.
Projects that were awarded funds by the Department after 2002 must meet the requirements of the of the Department's Uniform Multifamily Regulations (UMRs), including but not limited to operating and replacement reserve requirements and occupancy standards. The UMRs can be located at:
http://www.hcd.ca.gov/fa/home/ (under "Additional Resources").
G. Minimum Areas of Review:
Those State Recipients having entered into a Rent Limitation Agreement or similar document, at a minimum, must monitor for owner / agent compliance on the following:
1. Continued income eligibility:
The State Recipient must monitor whether the owner is correctly calculating income (using the CFR/Part 5 definition) to ascertain if households are lowincome or very low-income as required by the HOME program.
The State Recipient must also review data and reports confirming that the owner or its management agent annually re-certifies the income of each household living in HOME-assisted units, and that the tenancy still meets the HOME income requirements. Please refer to the "Eligibility and Income Determinations" chapter for Appendix 11-1, HUD's document "Acceptable Forms of Verification."
Per HUD's current Multi-Family Occupancy Handbook, the tenant income recertification must start 120 days prior to the tenant's anniversary date and must be completed by the recertification anniversary date. Please refer to Chapter IX "Applications, Rental Project Management, and Recertification", Appendix IX-8 , "Timing of Annual Recertifications" for more information on due dates for annual recertification.
HOME provides State Recipients with a monitoring form entitled "Annual Project Compliance Report-Rental Housing." It is to be completed annually by the project owner or management agent and reviewed by the State Recipient for program compliance. Please visit our website at http://www. hcd. ca .gov/fa/home/Mon itoringState Recipients. html. for the following
XI - 11
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Oocusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 "Annual Project Compliance Report"
"Instructions - Annual Project Compliance Report"
"Completed Sample - Annual Project Compliance Report"
EXHIBIT B
HOME will annually request a copy of the "Annual Project Compliance Report" during its long-term monitoring of State Recipient processes.
See Chapter 11, "Eligibility and Income Determination" and Chapter IX, "Applications. Rental Project Management. and Recertification "for more information on income eligibility.
2. Continued occupancy rule compliance: For projects with five or more HOME-assisted units, a minimum of 20% of HOME-assisted units must be occupied by very low-income households, (defined as households whose annual incomes do not exceed 50% AMI), paying low HOME rents for the term of affordability in accordance with the income limits published annually by HUD.
Note however, all rent and income levels must be set at the AMI levels approved by the Department as specified in the Regulatory Agreement. (These may be lower than the federal High HOME and Low HOME limits.) Rent and income limits for the current year can be found on the TCAC or MHP Websites.
TCAC: http://www.treasurer.ca.gov/ctcac/compliance.asp
MHP: http:l/www.hcd.ca.gov/fa/mhp/20121ncomeRentsLoanLimits.pdf
3. HOME Rents. Utility Allowance. and Rent Increases
High HOME rents and Low HOME rents, as most other rents set by affordable housing programs, include a tenant utility allowance.
Refer to the "Utility Allowance Schedule" section in Chapter IX entitled "Applications, Rental Project Management, and Recertification" and Appendix IX-I for more information.
Rent Increase 24 CFR 92.252 (fl (3): any increase in rents for HOMEassisted units is subject to the provisions of outstanding leases, and in any event, the owner must provide tenants of those units not less than 30 days prior written notice before implementing any increase in rents.
Maximum monthly rents of HOME-assisted units must be verified annually.
Generally, for all Assisted Units, rents shall not exceed High HOME Rents.
For Assisted Units that are set-aside for Very Low-Income households, HOME rents shall not exceed Low HOME Rents Note however, all rent and income levels must be set at the AMI levels approved by the Department as specified in the Regulatory Agreement. These may be lower than the federal High HOME and Low HOME limits.
XI - 12
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a. Non-Section 8 households:
The owner/agent must correct any errors resulting in a tenant rent overcharge. Reimburse or credit the household retroactive to the effective date of the rent increase.
b. Project Based:
Households receiving proiect-based rental subsidies are subject to rents allowable under the federal or State project-based rental subsidy program, not the HOME rent limits.
c. Tenant Based:
When tenants receive additional subsidy through tenant-based rental assistance programs such as Section 8, additional requirements apply. Under the HOME Program, the total gross rent for tenants receiving Section 8 assistance inotudes:
• the tenant's share of rent;
• the subsidy payment; and
• the utility allowance
The total of these three amounts can't exceed the allowable HOME rent.
Any issues of non-compliance must be corrected by the owner / agent by reducing the gross rent (tenant share, subsfdy, and utility allowance) to the allowable HOME rent effective on the next interim or annual recertification.
For more information, see pp,54-5 of "Compliance in HOME Rental Projects", HUD May 2009.
Definitions:
Fixed HOME-assisted units: specifically designated units that never change Floating HOME-assisted units: units designated as HOME-assisted may change over time as long as the total number of HOME-assisted units in the project remains constant
Rent adlustments for over-Income tenants In ''fixed" and "floating" units shall be handled as follows:
• "Fixed" unit projects: Over-income tenants, (those with incomes over 80% of the area median), in HOME-assisted "fixed" units must pay the lesser of the amount payable by the tenant under State or local law (rent control) or 30% of the household's monthly adjusted income for rent. There is no rent cap for "fixed• units. • "floating" unit projects: Over-income tenants in HOME-assisted "floating• units must pay 30% of their monthly adjusted income for rent. However, the rent may not exceed the market rent for comparable unassisted units in the neighborhood.
XI -13
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EXHIBIT B
4. Affirmative Marketing, Fair Housing, and Section 504 In addition to prohibiting discrimination, fair housing and equal opportunity laws require recipients of federal housing funds to be proactive in encouraging participation in any housing projects or programs funded through federal sources. They must affirmatively market housing, employment and contracting opportunities to minorities, women, and lowincome residents and businesses of the community in which the housing is being built, acquired or rehabbed with federal assistance, including special outreach efforts to protected classes, for whom it is determined by demographic data analysis of the project's affirmative marketing plan, that these groups are likely to be underrepresented in the project.
This section is intended as a brief overview of the myriad requirements of several federal laws. To comply with these laws, HOME Recipients (and their contractors and subcontractors) must comply with the requirements described below and more thoroughly in Chapter XII.
Owners and management agents in projects with five or more HOMEassisted units are required to practice the following affirmative marketing procedures in marketing the development, and provide documentation in an "Affirmative Marketing" file to demonstrate that this was done; • Advertisements placed in newspapers with the broadest possible circulation, including foreign language newspapers in areas with a high percentage of non-English speaking residents. (The purpose is to attract eligible persons without regard to race, color, national origin, sex, familial status or disability.) I
• Place the Fair Housing logo on all advertisements and marketing materials;
• Prominently display Fair Housing posters at rental offices.
For more information about Fair Housing and Affirmative Marketing requirements, Including rules for maintaining and evaluating waiting lists for consistency with affirmative marketing requirements, see Chapter XII, ,. Equal Opportunity in Housing"
5. Property Standards
Under federal HOME regulations, the project owner is responsible for maintaining the project's property standards. The underlying purpose is twofold: 1) to protect the health and safety of the residents, and 2) to protect the financial investment of federal HOME dollars by maintaining the integrity and longevity of the physical structures.
During the period of affordability, State Recipients must perform on-site inspections of HOME-assisted rental housing to determine compliance with XI -14
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EXHIBIT B
applicable property standards requirements. In order to inspect occupied units, it will be necessary for management to issue a written notice to all HOME-assisted tenants that their unit may be inspected. The residents must receive sufficient advance notice in accordance with the lease agreement.
The Final Rule allows for inspection of a sufficient sample of HOMEassisted units in a multi-family development, rather than inspection of each and every HOME-assisted unit in the development. A good rule of thumb is to inspect 15 to 20 percent of the HOME-assisted units in a project including a minimum of one unit in every building. If consistent compliance problems are found, more units should be inspected.
A typical physical inspection will encompass at least:
• Building exteriors, looking in particular for water infiltration problems, deteriorating paint, and units that appear vacant but are not listed as such;
• Grounds;
• Recreational facilities;
• The office, maintenance shop, and public restrooms;
• A sample of vacant units. This allows the monitor to evaluate management's process for making vacant units ready to rent. It also evaluates the accuracy of management's list of vacant units, and management's reports regarding the condition of those units; and
• A sample of occupied units. It is important to visit occupied units in order to evaluate whether residents are receiving the maintenance service to which they are entitled. In particular, the monitor should check for health and safety issues such as missing or non-functional smoke detectors, debris stored in mechanical closets, plumbing problems, and evidence of water damage.
A separate inspection checklist must be completed for each HOME-assisted unit that your monitoring staff randomly selects.
Revised February 2013
• For guidance in establishing an adequate "Monitoring
Inspection Checklist," please refer to HUD's Inspection Checklist. The form (HUD-52580-A) may be used as
formatted or adapted for use.
• For alternative checklist samples, refer to the appendix section:
o "Exterior, Grounds, Public Areas" Checklist
o "Unit Inspection" Checklist
XI - 15
115
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EXHIBIT B
Please visit our website at:
http://www.hcd.ca.gov/fa/home/MonitoringStateRecipients. html. for these forms
6. Lead-Based Paint
Compliance requirements pertaining to mitigation and notification apply only to units constructed before 1978.
Effective January 10, 2002, new lead-based paint requirements became based upon the type of activity, as well as the amount and duration of Federal assistance. See Chapter VI of the HOME Contract Management Manual for more information.
• Each contract to lease housing shall include, as an attachment or within the contract, a lead warning statement in the language of the contract (e.g. English or Spanish).
• The renter must also receive a federally approved pamphlet on lead poisoning prevention.
• While not required, consider having the applicant sign a statement signifying that the pamphlet was received. A copy of the statement and pamphlet should be placed in the applicant's individual file. • Please refer to "Lease Addendum Disclosure of Information on Lead-Based Paint/Hazards for a sample disclosure form available at: http://www.hcd.ca.gov/fa/home/MonitoringStateRecipients.html.
7. Proiect Lease 24 CFR 92.253
Proiect Lease: Tenant lease agreements must meet the requirements set forth in Chapter IX, "Recertification and Rental Project Management" Please refer to Chapter IX for more information:
HUD's Prohibited Lease Terms ....... Appendix IX-D
Sample HOME Lease ...................... Appendix IX-J
8. Tenant Selection 24 CFR 92.253
d. The HOME Final Rule requires owners to adopt written tenant selection policies and criteria and to establish a wait list.
XI -16
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EXHIBIT B
For more information about lease agreements and Tenant Selection Plans, see Chapter IX "Applications. Rental Project Management, and Recertification":
H. The Monitoring Process:
Each city and county must have sufficient written policies and procedures to monitor a HOME-assisted rental project to ensure continued compliance with state and federal regulations. If you have not done so recently. please:
• Review your policies, procedures, and forms for possible improvement; • Confirm that the monitoring staff is following established policies / procedures; and
• Verify that your monitoring, recordkeeping, and records retention is in compliance with the HOME Final Rule.
If your monitoring policies and procedures need to be updated, please refer to, "Outline for Long-Term Monitoring Policies and Procedures" for guidance, (available at the hyperlink below).
For the following State Recipient Monitoring forms go to our website at:
http://www.hcd.ca.gov/fa/home/MonitorinqStateRecipients.html. ),, Annual Project Compliance Report
► Instructions - Annual Project Compliance Report
► Completed Sample of the Project Compliance Report
► Sample Site Visit Notification Letter
► Sample Monitoring Summary Letter
► Sample Monitoring Clearance Letter
► Sample "Tenant File Review" Checklist
► Sample "Exterior, Grounds, Public Areas" Checklist
► Sample "Unit Inspection" Checklist
► Sample "Affirmative FH Marketing" Checklist and
Annual Affirmative Marketing Analysis Report
The State Recipient monitoring of rental projects should be designed to review the project owner's overall performance, confirm adherence to HOME Program requirements, and to provide technical assistance as well.
XI -17
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Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT B
The basic elements of each monitoring visit should include the following:
• A site visit notification letter to confirm the monitoring dates should be sent at least two weeks prior to arrival. The letter must detail the contract number, the State Recipient representative(s) who will conduct the interview, and the areas to be reviewed and documented on checklists.
• Upon arrival, the State Recipient Representative(s) must conduct an entrance interview to make sure that the owner and/or manager has a clear understanding of the purpose, scope, and schedule for the monitoring. • The State Recipient Representative(s) must keep a detailed record of information reviewed and conversations held with the owner / manager during the monitoring visit. The information should be documented on checklists based on HOME Program requirements. The information gathered will serve as a basis for conclusions to be included in the monitoring letter.
• At the conclusion of the monitoring, State Recipient Representative(s) must meet again with the owner I manager to:
► Present preliminary results of the monitoring;
► Provide an opportunity to correct any misconceptions or misunderstandings;
► Secure additional information to clarify or support their position; and ► If applicable, provide an opportunity for the owner/manager to report on steps they may already be taking to address areas of noncompliance or nonperformance.
• After the monitoring visit, the State Recipient monitoring staff must send a monitoring letter to the owner/ manager containing formal notification of the results of the monitoring. All negative conclusions must be labeled as a "Findind' or a "Concern" with a specific required corrective action. The letter should recognize the owner I manager's successes and must set deadlines for a written response and corrective actions. Retain a copy for your records.
The letter must include the definitions for "finding" and "concern." ► A "finding" is a deficiency in program or project performance due to a statutory or regulatory requirement that was not met. Sanctions or other corrective actions are authorized in these cases. ► A "concern" relates to program or project performance that should be improved before it leads to a finding;
XI - 18
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Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
EXHIBIT B
• A written response from the owner or manager must be submitted to the State Recipient Representative(s) within 30 days of the date of the monitoring letter.
• Once all the corrective actions have been completed, the State Recipient monitoring staff must send a letter to the owner/ manager stating that the monitoring findings and concerns have been closed. Retain a copy for your records.
I. Records Retention:
Rental Housing (24 CFR 92.508 (a) (7) (c)):
• General records must be kept five years after project completion; and • Tenant income, rent, and inspection information must be kept for the most recent five years, until five years after the affordability period ends.
XI -19
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119
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HOME Monitoring
Checklist 6-D
Project Name: ________________ _
Project ID: _________________ _
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f.JNIT LOWOR TENANT NO. NO. DATE OF
NlJMBER HIGH HOME NAME PERS. BR'S LAST
RENT UNIT? INCOME
CERT.
EXHIBITC
Project Compliance Report: Rental Housing
Owner Name: _________________ _
Reporting Period: from to ______ _
G II I J K
MAX UTILITY MONTHLY TENANTS COMPLIANCE UNTTSTATUS
RENT ALLOWANCE UNIT ANNUAL GROSS YIN? (PJ Onlyl
RENT INCOME
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Reviewer: ___________________ _ Date:, ________ _
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120
Docusrgn Envelope ID: 315105DE-O322-8C01·82F5-577757E70F86 EXHIBIT D HOME - LT Monitoring Checklist TENANT FILE REVIEW CHECKLIST Reviewer(s): City/ Countv of:
Date of Review: Contract Number:
This project is: □ HUD project based TBRA □ TCAC □ HUD 811 0 HUD 202 USDA-RD □ other:
Proiect Name·
Household Name: UnitBedroom Size:
Household Size: # adults: # minors:
Address: Unit# Citv Zio
Certification Form Yes No N/A NOTES
1. Did thefilecontain a completed LJ LJ HOME TIC: 0
Tenant Income Certification form? TCAC TIC: 0
0 Other:
2. Are the household members identified LJ LJ [head, spouse, dependent, co-head, correctly? child, other adult(s), live-in aide,
foster child(ren) / adult(s)]
3. Has the date of birth for each person LJ LJ
been entered?
4. Has a Social Security Number(if at LJ u
least 6 years of age) for each person
been entered?
5. Did each household member(age 18 LJ u
and older) sign and date the Date: I
certification forms?
6. Are the above referenced forms LJ u Name:
signed & dated by the person
performing the income certification? Date:
7. If this is a Tax Credit unit, has "HOME" LJ LJ LJ not been checked under"Part VIII- tax
Program Types" on the TIC form? credit
unit
Occuoancv Standards Yes No N/A NOTES
1. Does this unit meet minimum LJ LJ LJ SRO, 0 bdrm, 1 bdrm: 1 person occupancy standards? D 2 bdrm: 2 persons
D 3 bdrm: 4 persons
D 4 bdrm: 6 oersons
2. If "No'' is there documentation of LJ u LJ N/A
special circumstances that warrant the
unitassignment?
121
Docusign Envelope ID; 315105DE-O322-8C01-82F5-577757E70F86 Tenant Notification Yes No NIA NOTES
1. Did the file contain a copy of the o/a's u u D new
notice of annual unit inspection? lease up
!f.liQ., Why Not?
2. Did the file contain a copy of the [J LJ D new
o/a's 90-120 recertification notice? lease up o/a's must maintain a copy of any notice(s) in the tenant file to
If No, Why Not? document the notice(s) issue date.
1,
3. Did the file contain a copy of the o/a's u u U new
30 day notice of rent increase? lease up 92.253(fX3) Any increase in rents for HOME assisted units is subject to the
Date of Notice: provisions of outstanding leases, and in Effective Date:
rent any event, the owner must provide
decrease: tenants of those units not less than 30
Old Rent Amount:$ 1
' ; □ days prior written notice before
New Rent Amount:$ 11 implementing any increase in rents.
Annual Income Yes No NIA NOTES
1. Did the o/a use the "3ra party LJ LJ
verification" or "review of documents" II
method for determining eligibility?
I I
2. Did the o/a enter the gross amount of LJ LJ II
income from each source? D Yes Annual Income is defined as the gross amount of income of an mutt
Total Gross Income:$ Ir household members anticipated to Wages:$
11 be received during the coming 12-
Business income: $ month perlod.
Retirement & insurance income:$
SSI/SSA:
Unemployment & disability income: $
TANF: $
Child Support: $
Alimony:$
Regular gift income:$
Annecl forces income: $
Other: $ I II
I~
122
OOCUsign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 Annual Income Yes No N/A NOTES
3. Was there any source that wasn't LJ LJ
counted?
A. II
B. Excluded Income:
a. Income of children:$
b. Foster care payments: $
C. Inheritance/Ins income: $
d. Medical expense reimbursement:
$
e. Income of live-in aides: $
f. Disabled persons: $
g. Student financial aid; $
h. Armed forces hostile fire pay: $
i. Self-sufficiency program income:$
j. Gifts:$
k. Reparations: $
I. Income from full time students: $ 1,
m. Adoption assistance payments:$
n, Social security & SSI 1income: $
0. Property tax refunds:$
p. Home care assistance: $
q. Other federal exclusions: $
Income from Assets Yes No N/A NOTES
1. Did the o/a use the "3rd party LJ u
verification" or "review of documents" 0 no asset verification collected method for determining eligibility?
2. Did theo/a enter the gross amount u □ No
from each asset source? Assets: NOTE: (e.g. savings accounts, checking accounts, safe deposit boxes, cash value
Checking:$ § of stocks, bonds, treasury bills, CDs,
Checking: $ II money market accounts, mortgages or
Savings:$ deeds of trust, etc.)
Savings:$ 8 (checking: use last 6 month average)
Other:$ (savings: use the current balance)
3. If No, whatsourcewasn'tcounted? UN/A
4. If the total assets were greater th an u D U Less
$5,000 did the o/a do an imputed than (multiply the total by 2%) calculation of asset income? SS,000
lmouted Income: $
5. If the total assets were less than u □
$5,000, was the calculation for
anticipated income correct?
Checking= 0%:
Anticipated Income: $
123
Docusign Envelope ID: 315105DE-D322-8C01-82FS-577757E70F86 Total Annual and Asset Income Yes No N/A NOTES
1. Was this household over the 80% □ □ TCAC NOTE: If this is a tax credit project, in come level? 0 oject: HOME defers to TCAC regulations.
Rent and Utili~ Allowance Yes No N/A NOTES
Amounts
1. Was the correct utility allowance used □ LJ Qso Unit bedroom size:
for the income certification u/a Utility Allowance: $
calculation? U/A Eff. dates:
Cert. Eff. Date:
2. Does the household's share ofrent, u LJ
utility allowance, and rental subsidy II $ tenant portion (if applicable)exceed the allowable $ rent subsidy
$ utility allowance
HOME rent amount of$ ? $ Total of above
3. If over-income and this is not a TCAC
TCAC project, was the tenant's new □ □ ooject:
rent calculated at 30% of adjusted
income?
Was the tenant's rent based on market □ □ rent for comparable, unassisted I units in ;
the neighborhood?
Anniversarv / Effective Date Yes No NIA NOTES
1. Is this tenant in thefirstyearof lease? LJ LJ
2. Is the ~anniversary date" based on: I
□ tenant's move-in date
□ project "anniversary date"
□ TCAC "effective date" II
□ other: f
3. What was the move-in date?
4. What is the anniversary/ effective
date?
5. Did the recertification process begin LJ LJ LJ 1" □ 30 day notice 90-120 days prior to the anniversary/ year of 0 60 day notice effective date? lease 0 90 day notice
□ 120 day notice
124
Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 Anniversarv / Effective Date Yes No NIA NOTES
6. What was the actual recertification LJ 1''
start date? year of
lease
7. Was the recertification completed by LJ LJ LJ 1"
the anniversary/ effective date? year of
lease
Pronertv Standards Yes No NIA NOTES
1. Where are copies of the inspection/ " □ UnitFile
maintenance forms kept? D Tenant File
D Other
2. What is the date of the last inspection LJ Move-in
forth is unit? I D Annual
I D Maintenance
D Other:
3. Is there documentation that inspection u Ll U none D not in tenant file /maintenance repairs were needed
completed?
Residential Lease Yes No NIA NOTES
1. Is the original lease and subsequent LJ Ll
leases or addendums signed by the
owner/agent, head, spouse, cohead, and all other adult members of the household?
2. Was the last lease term calculated Ll Ll 92.253(a) The lease between a tenant correctly? and an owner of rental housing
assisted with HOME funds must be
lease start date: for not less than one year, unless by lease ending date: mutual agreement between the
ti:nant and the owoi:r.
3. Is the household month-to-month? u Ll LJpt
year of
lease
NOTES:
125
Oocus,gn Envelope ID 315105DE-D322-8C01-82F5-577757E70F86 Inspection Checklist
Housing Choice Voucher Program
U.S. Department of Housing and Urtian Development
Office of Public and Indian Housing
EXHIBIT E
0MB Approval No. 2577-0169
(Exp. 04/30/2026)
0MB Burden Statement: The public reporting burden for this collection of information is estimated to average 0. 50 hours per response, including the time for re viewing instructions, searching existing data sources gathering and maintaining the data needed, and completing and reviewing the collection of information. As surances of confidentiality are not provided under this collection. Send comments regarding this burden estimate or any other aspect of this collection of informat ion. including suggestions to reduce this burden to the Office of Public end Indian Housing, US. Department of Housing and Urban Development. Washington, DC 2041 o. HUD may not conduct and sponsor. and a person is not required to respond to. a collection of information unless the collection displays a valid contr ol number.
Privacy Notice: The Department of Housing and Urban Development (HUD) is authonzed to collect the information required on this form by 24 CFR § 982.401.
The information is used to determine jf a unit meets the hous· ng quality standards of the Section 8 rental assistance program. The Personally Identifiable Inform ation lPII) data collected on this form are not stored or retrieved within a system of record.
Name of Family Tenanl ID Number Date of Request (mm/ddlyyyy) Inspector Nei~borhood/Census Tract Date of lnspectiOn (mm/ddlyyyy) Type of Inspection I Date of Last Inspection (mm/dd/yyyy) PHA lrwal □ Special □ Reinspection D
A. General Information
Inspected Unit Year Constructed (yyyy) Housing Type (Cheek as awrollriate) Full Address {including Street, City, Counly, State, Zip) D Single Family Detached D Duplex or Two Family
D Row House or Town House
D Low Rise: 3. 4 Stories.
Including Garden Apartment
Number of Children in Family Under 6 I I D High Rise: 5 or More Stories I D Manufactured Home Owner D Congregate
Name or Owner or Agent Authorized to Lease Unit lns~ted Phone Number D Cooperative D Independent Group
Residence
Address of °"'1ler or Agent D Single Room Occupancy
D Shared Housing
D Other
B. Summarv Decision On Unit /To be com0leted after form has been filled out Pass Number of Bedrooms for Purposes Number of Sleeping Rooms - of the FMR or Payment Standard
I-- Fail
Inconclusive
lnS""'l.tlon Checklist
IBrn I Yes No In• Final Approval
No. 1. Living Room Pass Fall IConc, Comment Date (mm/dd/yyyy)
1.1 Living Room Present i
1.2 Electricity I
1.3 Electrical Hazards I
1.4 Security
1.5 Window Condition
1.6 Ceiling Condition
1.7 Wall Condition
1.8 Floor Condition
Previous edibons are obsolete Page 1 of B form HUD-52580 (412023) 126
Oocus1gn Envelope ID 315105DE-D322-8C01-82F5-577757E70F86 • Room Codes: 1 = Bedroom or Arly Other Room Used for Sleeping (regardless of type of room); 2 = Dining Room or Dining Area; 3 = Second Living Room Family Room, Den Playroom TV Room· 4 = Entrance Hal's Corridors Halls Staircases· 5 = Additional Bathroom· 6 = Other Item 1. Living Room (Continued) Yes No In- Flnal Approval No. Pas Fall Cone. Comment Date lmm/dd/wvvl
1.9 Lead-Based Paint
Not Applicable
Ive all painted surfaces free of deteriorated
paint?
If not do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
2. Kitchen
2.1 Kitchen Area Present
2.2 Electricity
2.3 Electrical Hazards
2.4 Security
2.5 Window Condition
2.6 Ceiling Condition
2.7 Wall Condition
2.8 Floor Condition
2.9 Lead-Based Paint
Not Applicable
Ive all painted surfaces free of deteriorated
paint?
If not. do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
2. 10 Stove or Range with Oven
2.11 Refrigerator I
2.12 Sink I
2.13 Space for Storage, Preparation, and Serving
of Food
3. Bathroom
3.1 Bathroom Present
3.2 Electricity
3.3 Electrical Hazards
3.4 Security
3.5 Window Condition
3.6 Ceiling Condition
3.7 Wall Condition
3.8 Floor Condition
Not Applicable
Lead-Based Paint 3.9
Ive atl painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
3.10 Flush Toilet in Enclosed Room in Unit
3.11 Fixed Wash Basin or Lavatory in Unit
3.12 Tub or Shower in Unit
3.13 Ventilation
Previous editions are obsolete Page 2 of8 form HUD-52580 (412023) 127
Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 Item ... 4. Other Rooms Used For Living and Halls I
4.1 Room Code* and
Room Location □ - - 4.2 Electricitv/lllumination
4.3 Electrical Hazards
4.4 Security
4.5 Window Condition - - 4.6 Ceiling Condition
4. 7 Wall Condition , -- 4.8 Floor Condition
4.9 Lead-Based Paint
Are al painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces e,cceed two
square feet per room and/or is more than
1 0% of a comDonent?
4.10 Smoke Detectors
4.1 Room Code* and
Room Location □ ----- --- 4.2 Electricity/Illumination
4.3 Electrical Hazards
- -- 4.4 Security
4.5 Window Condition
4.6 Ceiling Condition
4. 7 Wall Condition -- 4.8 Floor Condition
4.9 Lead-Based Paint
Are all painted surfaces free of detenorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
4.10 Smoke Detectors
4. 1 Room
Room
Code*
Location
and □
4.2 Electricity/Illumination
4.3 Electrical Hazards
4.4 Security
4.5 Window Condition
4.6 Ceiling Condition
4. 7 Wa11 Condition , --- - 4.8 Floor Condition
4.9 Lead-Based Paint
Are all painted surfaces free of deteriorated
paint?
If not. do deteriorated surfaces e,cceed tv.o
square feet per room and/or is more than
10% of a com=n.,nt?
PreVIOus editions are obsolete
Yes No ln- Flnal Appoval
p ass F a, ·1 I C one. C omment Date'm ~
(Ctrcle One) (C"rcle One)
RighVCenterlleft Front/Center/Rear Floor Level -
=· -·
-
I
I □ INot Applicable
'
I
(Circle One) (Circle One)
RighVCenter/Left Front/Center/Rear __ Floor Level
l --- '---
1 --
-- -
-- I - - -
I- ... -- □ Not Applicable I
(Circle One)
RighVCenter/left
(C,rcle One)
FronVCenter/Rear __ Floor Level
-
-- -- --
--
□ Not Applicable
I
128
Docusign Envelope ID· 315105DE-D322-8C01-82F5-577757E70F86 nem
Ho.
4.1 4.2
4.3 4.4
4.5 4.6
4.7 4.8
4.9 4.10
4.1 4.2
4.3 4.4
4.5 4.6
4.7 4.8
4.9 4.10
5.1 5.2
5.3 5.4
4. Other Rooms Used For Living and Halls
Room Code·
and Room Location
Electricity/Illumination
Electrical Hazards
Security
Window Condition
Ceiling Condition
Wall Condition
Floor Condition
Lead-Based Paint
Are all painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed two
square feet per room and/or is more than
10% of a component?
Smoke Detectors
Room Code· and
Room Location
Electricity/lllum ination
Electrical Hazards
Security
Window Condition
Ceiling Condition
wan Condition
Floor Condition I
Lead-Based Paint
Are all painted surfaces free of deteriorated
paint?
If not, do deteriorated surfaces exceed t.vo
square feet per room and/or is more than
10% of a component?
Smoke Detectors
5. All Secondary Rooms
(Rooms not used for living)
None Go to Part 6
Security
Electrical Hazards
Other Potentially Hazardous
Features in these Rooms
Previous editions are obsolete
I Ves No InPan Fail Cone. Comment
(Circle One) (Circle One)
RighVCenter/Left FronVCenter/Rear
I I I
I I I
I I I
I I I
I I I
I I I
I I I
Not Applicable
I I I I
I I I
•
I I I
(CircleOne) (Circle One)
RighVCenterlleft FronVCenter/Rear
Not Applicable
I
Page4of 8
Final Approval
Data fmm/dd/yyyy)
Floor Level
Floor level
I
lorn, HUD-52580 (4/2023)
129
Docus1gn Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 Item 6. Building Exterior Yes No In- I Final ApprCIVZII No. Pass Fall Cone, Comment Date (mm/ddlyyyy)
7:r"Conaifion 011-oun---ifalfon ·-
6.2 Condition of Stairs, Rails, and Porches
6.3 Condition of RooffGutters
6.4 Condition of Exterior Surfaces
- 6.5 Condition of Chimney
6.6 Lead Paint Exterior Surfaces Not Applicable
Are all painted surfaces free of deteriorated
paint?
If not. do deteriorated surfaces exceed 20 I square feet of total exterior surface area?
6.7 Manufactured Home: Tie Downs
7. Heating and Plumbing - 7.1 Adequacy of Heating Equipment '
7.2 Safety of Heating Equipment ,
7.3 Ventilation/Cooling
7.4 Water Heater
7.5 Approvable Water Supply
7.6 Plumbing
7.7 Sewer Connection I
8. General Health and Safety
8.1 Access to Unit
8.2 Fire Exits
8.3 Evidence of Infestation
8.4 Garbage and Debris
8.5 Refuse Disposal
8.6 Interior Stairs and Commom Halls
8.7 Other Interior Hazards
8.8 Elevators I
8.9 Interior Air Quality I
8.10 Site and Neighborhood Conditions
8.11 Lead-Based Paint: Owner's Certification I Not Applicable If the owner is required to correct any lead-based paint hazards at the property including deteriorated paint or other hazards identified by a visual assessor, a certified lead-based paint risk assessor, or certified lead-based paint inspector, the PHA must obtain certification that the work has been done in accordance with all applicable requirements of 24 CFR Part 35. The Lead -Based Paint Owner Certification must be received by the PHA before the execution of the HAP contract or within the time period stated by the PHA in the owner HOS violation notice.
Receipt of the completed and signed Lead-Based Paint Owner Certification signifies that all HOS lead-based paint requirements have been met and no re-inspection by the HOS inspector is required.
Previous editions are obsolete Page 5 of8 form HUD-52580 14/2023) 130
Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 C. Special Amenities (Optional)
This Section is for optional use of the HA It is designed to collect additional information about other positive €eatures of the unit that may be present.
AHhough the features listed below are not included in the Housing Quality Standards, the tenant and HA may wish to take them Into consideration in decisions about renting the unit and the reasonableness of the rent.
Check/1:st any positive features found in relation to the unit.
D. QU6Stldh$ id ASK the Tenant (Optional) 1. LivinA Room _] High quality floors or wall coverings
_] Wor1<ing fireplace or stove Balcony,
_] patio, deck. porch Special windows
_J ordoors
_J Exceptional size relative to needs of family
_J Other: (Specify)
2. Kitchen
• Dishwasher
- Separate freezer
- Gamage disposal
- Eating counter/breakfast nook
Pantry or abundant shelving or cabinets
Double oven/self cleaning oven, microwave
Double Sink
- High quality cabinets
,- Abundant counter-top space
Modem appliance(s)
~ Exceptional size relative to needs of family
Other: (Specify)
3. Other Rooms Used for Living
B High quality floors or wall coverings
Working fireplace or stove Balcony,
~ pat,o. deck. porch Special windows
or doors
Exceptional size relative to needs of family
Other: (Specify)
Previous editions are obsolete
• 4. Bath
~ Special feature shower head
Built-in heat lamp
Large mirrors
Glass door on shower/tub
~ Separate dressing room
~ Double sink or special lavatory
7 Exceptional size relative to needs of family
7 Other. (Speafy)
5. Overall Characteristics
Storm windows and doors
-. Otherfom,s ofwealherization (e.g .. insulation, wea1her ~ stripping) Screen doors or windows
Good upkeep of grounds (i.e .. site cleanliness, landscaping, condition of lawn)
Garage or parking facilities
- Driveway
- Large yard
Good maintenance of building exterior
Other. (Specify)
6. Accessibility for Individuals with Disabilities
Unit is accessible to a particular disability. 0 Yes D No Disability
Page6 of 8 form HUD-52580 14/2023)
131
Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86
1. 2.
Does the owner make repairs when asked? Yes D No D
How many people live there? C:J
3. How much money do you pay to the owner/agent for rent? $ _____ _
4. Do you pay for anything else? (specify) ______________________________ _
5. Who owns the range and refrigerator? (insert 0 = Owner or T = Tenant) Range ___ Refrigerator __ MicrowaveO
6. Is there anything else you want to tell us? (specify) Yes D No D Previous editions are obsolete Page 7of8 form HUD-52580 (4/2023) 132
Docusign Envelope ID 315105DE-D322-8C01-82F5-577757E70F86 E. Inspection Summary/Comments (Optional)
Provide a summary descripbon of each item which resulted in a ratina of 'Fail' or "Pass with Comments • Tenant LO Number Inspector Date of lnspeetion (mm/ddlyyyy) Address of Inspected l/r1it lrype of Inspection Initial Special Reinspection
Item~ Reason for "Fa 1· or "Pass with Comments· Rating
Continued on additional page YesD No D
Previous editions are obsolete Page8of 8 form HUD-52580 (412023) 133
Docusign Envelope ID: 315105DE-D322-8C01-82F5-577757E70F86 EXHIBIT F PHYSICAL CONDITION REPORT Date Received by HOME:
HOME Investment Partnerships Program (HOME) SR Last Site Visit Date:
County of: Project Name:
Contract#: HOME Prepared by:
Development Type: Title:
Overall Project Rating: Poor Condition Fair/Average Good/Excellent I I """"' JI
No deferred deferred deferred Not
Phvslcal Condition: maintenance maintenance maintenance Applicable Comments:
1. Check condition for each area:
a, Exterior Walls / Hallways
b. Roof(s)
c. Exterior Lighting
d. Electrical Fixtures
e. Electric utility meter(s)
f. Gutters / Downspouts
g, Other:
h. Umity Room(s) I shed(s)
i. Carports I Garages
j Balconies
k, Steps / Stairs / Railings
2. Check condition for each area:
a. Building(s) Space Heating System
b. Building(s) Water Heating System
c. Building(s) Cooling System
d. Building(s) Plumbing
e Building(s) Electrical
3. Check condition for each area:
a. Trash Collection Area
b. Laundry Room(s)
c. Community Room / Lobby
d. Manager's Office
e. Pool I Fence/ Gate
f, Play Areas / Equipment
g. Elevator(s)
4. Check condition for each area:
a. Grounds I Landscaping
b. Fencing J Gates I
c. Walkways
d. Driveways/ Parking Lot(s)
e. Security Gates
f Fire extinguishers
g. Site Drainage
h. Project Sign(s)
i. Other:
Phvslcal Condition:
5. Explain any answer indicating "Some" or "Much" deferred maintenance:
6. What, if anything, may impact the physical condition of the property in the coming year?
7. Describe any notices or citations for housing code violations. If none, type "None":
8. Describe any major repair, replacement or maintenance work needed. 134