Agreement .pdf — Bakersfield City Council, January 8, 2025

A - 1
EXHIBIT “A”
Legal Description
Real
property in the City of Bakersfield, County of Kern, State of California, described as follows:

L
ot 10 Block 391 of the Stark Tract, in the City of Bakersfield, County of Kern, State of California, as per map recorded June 17, 1910 in Book 2, Page 3 of Parcel Maps, in the Office of the County Recorder of said County.

K
ern County APN: 006-440-10-00-9
B - 1
EXHIBIT “B”
S
cope of Project
D
escription:

Th
e M Street Housing project will be an infill development located at 1209 M Street, 93301 (Kern County APN: 006 -440-10-00-9). The project consists of land aquisition and construction costs related to the development of four (4) new affordable housing units in central Bakersfield. One (1) of these new unit s will serve low-income households at 80% of AMI or below , and t hree (3) of these new units will serve qualifying households experiencing homelessness or at risk of homelessness with income at 30% AMI or below (including one unit that is ADA-compliant) as defined in CPD-21-10, Section IV, Subsection A and 24 CFR 91.5.

Ea
ch of the four (4) one -bedroom units will be approximately 500 square feet, and the structure will be wood frame construction with a combination of wood trim around windows and hard board siding on concrete slab foundations. Unit amenities will include central heating and cooling, refrigerator, stove/oven, dishwasher, garbage disposal, and microwave oven. Golden Empire Affordable Housing, Inc. has site control of the property and will be the ultimate owner.

W
ith this Agreement funding, DEVELOPER intends to construct a total of four (4) new one- bedroom affordable housing units which will be reserved for qualifying households at the M Street Housing development located at 1209 M Street, Bakersfield, CA 93304. The City’s contribution of SEVEN HUNDRED THIRTY -EIGHT THOUSAND THREE HUNDRED SIXTY -THREE DOLLARS ($738,363.00) in HOME-ARP funding will be a loan to DEVELOPER at 3% simple interest, calculated from Residual Receipts, with a term of fifty-five (55) years and secured by a Deed of Trust on the property.

P
urpose:

T
he primary goal for this development is to maximize the availability of permanent affordable housing in Bakersfield using vacant infill properties to provide permanent housing for persons experiencing homelessness or at risk of homelessness and low-income households. Onsite and offsite services for the three homeless designated units will be coordinated with the Bakersfield-Kern Regional Homeless Collaborative and the Housing Authority’s CalAIM Housing Navigation and Housing Sustaining services, including ongoing case management services to ensure the tenants remain stable in the housing and access the services they need.

B - 2
Unit D istribution:
1 one-bedroom unit for low-income households at or below 80% AMI 3 one-bedroom units for qualifying households at or below 30% AMI C
onstruction Costs:

T
he HOME-ARP funds will be used for eligible soft and hard construction costs. Under this Agreement, costs which were incurred within prior to the date of this Agreement will be eligible for payment under this Agreement. The following table shows the total sources for the project.

SO
URCES OF FUNDS:

CITY HOME-ARP Loan $ 738,363.00
TOTAL: $ 738,363.00
USES OF FUNDS:

Land $ 75,000.00
Construction $ 500,803.00
Contingency $ 37,560.00
Architect/Survey/Engineering: $ 35,000.00
Impact and Building Permit fees: $ 45,000.00
Finance/Title Costs: $ 5,000.00
Miscellaneous Costs (Legal, Utility Connections, etc.) $ 10,000.00 Construction/Program Management $ 30,000.00
TOTAL: $ 738,363.00
R
eporting:

DE
VELOPER will be responsible for ensuring that all units funded by HOME-ARP will have a required Period of Affordability of fifty-five (55) years beginning at Project Completion on the date that the certificate of occupancy is issued for the project site.

T
o ensure compliance, the C ity will monitor DEVELOPER’s program on a yearly basis.

DEVELOPER will submit yearly reports each April 1 st, beginning after Project Completion, to the C ity to ensure that each housing unit is being utilized, and occupied, for an affordable housing recipient. These annual reports will also include financial statements showing the availability and/or payment of loan principal and interest out of Residual Receipts. Additionally, financial statements shall be submitted annually to s how the financial condition and continued financial viability of the project. The information required by the City in these reports will be given to DEVELOPER within 60 days of Council approval of this Agreement.

B - 3
Schedule of Performance:

A
ssuming construction starts by January 2025, loan funds in the amount of SEVEN HUNDRED THIRTY-EIGHT THOUSAND THREE HUNDRED SIXTY -THREE DOLLARS ($738,363.00) will be available to DEVELOPER for no more than twenty- four months from the date of City Council approval. The following schedule initiates from the date of City Council approval.

A
ctivity Status Completion Date
Property Acquisition Achieved August 2024
All Financing Secured Achieved November 2024
Construction Start Pending January 2025
Construction Completion Pending September 2025
Certificate of Occupancy Pending September 2025
100% Occupancy and Stabilization Pending October 2025
C - 1
EXHIBIT “C”
Ini
tial Rent Schedule and Rent Increases Procedure
A
s of the date hereof, the project rents are at the following levels:

HOME-ARP Initial Rent Schedule
# of
Bedrooms
Unit
Designation
Unit
Count
Square
Feet
Gross
Rent
Utility
Allowance
Net
Rent
1 Qualifying Populations
30% AMI 3 500 $464 $74 $390
1 Low Income
80% AMI 1 500 $869 $74 $795
* Qualifying Populations as defined in U S Department of Housing and Urban Development (HUD) in Community Development and Planning Notice 21-10 (CPD-21-10), Section IV, Subsection A and 24 CFR 91.5.

I
n the event that minor modifications to the gross rent, net rent, or utility allowance are required due to program modifications for compliance, the City is authorized to modify said rent schedule prior to initial occupancy.

S
ubsequent Rent Increases: If, at any point after initial occupancy, the property owner desires to increase the rent level for project units, the project owner shall submit, in writing, the proposed increase. This documentation shall identify the current gross rent, utility allowance, and net rent for the unit while identifying the proposed increased rate.

Additionally, the owners shall submit the project units (including street address and unit number) for the units in which the rent increase is being proposed.

Th
e City of Bakersfield shall review the proposed increase in lieu of the projects current utility allowance and applicable rent levels. If the rents are within the allowable rents, the City shall approve the rent increases. However, if the rent increases are not within the allowable rent levels, the increase shall be denied. When rent increases are proposed and approved/disapproved, both parties shall maintain documentation of the process.

D - 1
EXHIBIT “D”
Promissory Note (With Interest)
P
roperty located at 1209 M Street, Bakersfield, CA 93301 (Legal Description attached hereto as Exhibit “A”)
1 209 M Street, Bakersfield, CA 93301 Date: ______________ (“the Property”)

1. P
ARTIES
"D
EVELOPER” means Golden Empire Affordable Housing, Inc. "LENDER" means the City of Bakersfield, and its successors and assigns.

2. BO

RROWER'S PROMISE TO PAY
In
return for a loan received from LENDER, DEVELOPER promises to pay the sum of SEVEN HUNDRED THIRTY-EIGHT THOUSAND THREE HUNDRED SIXTY -THREE DOLLARS ($738,363.00) (this amount is called "principal"), with interest, to the order of the LENDER. Payment shall come out of the Residual Receipts from the Project. The Note is evidence of the loan made pursuant to City of Bakersfield Agreement No. _______ ( “Loan Agreement”).

3. I

NTEREST
T
he Loan shall be due and payable as of the Maturity Date unless repaid sooner as set forth in this Agreement or the Note. In the event DEVELOPER prepays the Loan before the Maturity Date, DEVELOPER shall pay accrued interest up to that point. DEVELOPER shall pay simple interest at a rate of three percent (3%) per year. DEVELOPER shall begin making annual payments of principal and interest from Residual Receipts in the year following Project Completion, as defined herein. Payments shall be made from 50% of available Residual Receipts. The City shall apply such payments first to pay current annual interest due, then the cumulative interest owed, and then to reduce the principal amount of the Loan.

4. P

ROMISE TO PAY SECURED
D
EVELOPER's promise to pay is secured by a deed of trust that is dated the same date as this Note and called the "Security Instrument." That Security Instrument protects the LENDER from losses which might result if DEVELOPER defaults under this Note. This Note is a uniform instrument with limited variations in some jurisdictions. The Security Instrument describes how and under what conditions DEVELOPER may be required to make immediate payment in full of all amounts owed under this Note. Some of those conditions D - 2
are described as follows:
(
a) DEVELOPER’s compliance; Protection of LENDER's Rights in the Property.

If DEVELOPER fails to perform the covenants and agreements contained in the Security Instrument, or there is a legal proceeding that may significantly affect LENDER's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then LENDER may do and pay for whatever is necessary to protect the value of the Property and LENDER's rights in the Property. LENDER's actions may include paying any sums secured by a lien which has priority over the Se curity instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although LENDER may take action under this paragraph, LENDER does not have to do so. Any amounts disbursed by LENDER under this paragraph shall become additional debt of DEVELOPER secured by the Security Instrument. Unless DEVELOPER and LENDER agree to other terms of payment, these amounts shall be payable upon notice from LENDER t o
D
EVELOPER requesting payment.
(
b) Default.

L
ENDER may require immediate payment in full of all sums due under this Note if an Event of Default has occurred under the Loan Agreement that remains uncured pursuant to the provisions of Section 6 of the Loan Agreement:
(
c) Transfer of the Property or a Beneficial Interest in DEVELOPER.

E
xcept as permitted in the Loan Agreement, if all or any part of the Property or any interest in it is sold or transferred to an entity of which DEVELOPER is not a p
artner, LENDER may, at its option, require immediate payment of this Note.

However, this option shall not be exercised by LENDER if exercise is prohibited by federal law as of the date of the Security Instrument. If the LENDER has required DEVELOPER to pay immediately in full as described above, the LENDER will have the right to be paid back by DEVELOPER for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law.

T
hose expenses include, for example, reasonable attorneys' fees.

5. M

ANNER OF PAYMENT
Th
e DEVELOPER agrees to pay the entire unpaid principal amount advanced under the Loan Documents and this Note, together with all accrued but unpaid interest thereon, on the earlier of fifty -five (55) years from the date first set forth above (the “Maturity Date”), or upon sale or transfer of the Property without the consent of LENDER unless demanded earlier pursuant hereto. Payments shall be made in accordance with the terms of the Loan Agreement.

D - 3

6. DEVELOPER'S RIGHT TO PREPAY
D
EVELOPER has the right to make payments of principal at any time before the Maturity Date. Provided, however, that DEVELOPER acknowledges that prepayment of this Note does not affect DEVELOPER’s obligation under the Regulatory Agreement for all units funded by HOME-ARP that have a required Period of Affordability of fifty-five (55) years beginning at Project Completion on the date that the certificate of occupancy is issued for the project site. DEVELOPER may make a full prepayment or partial prepayments without paying any prepayment charge. LENDER will use all prepayments to reduce the amount of principal that is owed under this Note. If DEVELOPER makes a partial prepayment, there will be no changes in the Maturity Date unless the LENDER agrees in writing to those changes.

7. GI

VING OF NOTICES
U
nless applicable law requires a different method, any notice that must be given to DEVELOPER under this Note will be given by delivering it or by mailing it by first class mail to DEVELOPER at the following address: 601 24th Street Ste. B, Bakersfield, CA 93301. Any notice that must be given to the LENDER under this Note will be given by mailing it by first class mail to 1600 Truxtun Avenue , Bakersfield, CA 93301 or a different address if DEVELOPER is given a notice of that different address.

8. OB

LIGATIONS OF DEVELOPER UNDER THIS NOTE
Th
e DEVELOPER is fully obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a GUARANTOR , surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a GUARANTOR, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note (see Completion Garunty Exhibit “G”).

9. N

ONRECOURSE
T
he obligations set forth herein are nonrecourse obligations of DEVELOPER , its officers, employees, partners or agents. Neither DEVELOPER nor any other party shall have any personal liability for repayment of the loan. The sole recourse of LENDER for repayment of the principal and interest shall be the exercise of LENDER’s rights against the Project Property as that term is defined in the Loan Agreement.

D - 4

BY SIGNING BELOW, DEVELOPER ACCEPTS AND AGREES TO THE TERMS AND COVENANTS CONTAINED IN THIS NOTE.
“
DEVELOPER”
GOLDEN EMPIRE AFFORDABLE HOUSING, INC.

B
y: ____________________________
STEPHEN M. PELZ
Executive Director
D - 5
EXHIBIT “A”
Legal Description
Real
property in the City of Bakersfield, County of Kern, State of California, described as follows:

K
ern County APN: 006-440-10-00-9
EXHIBIT “E”
Deed of Trust

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Bakersfield
1600 Truxtun Avenue
Bakersfield, California 93301
Attention: Economic & Community
Development Director
This document is exempt from the payment
of a recording fee pursuant to Government
Code Section 27383

DEED OF TRUST
This Deed of Trust, made this day of , 2024 between GOLDEN EMPIRE AFFORDABLE HOUSING, INC. , herein called TRUSTOR, whose address is 601 24th Street Ste. B, Bakersfield, California 93301 , PLACER TITLE COMPANY, a California corporation, herein called TRUSTEE, and CITY OF BAKERSFIELD, a Municipal Corporation, herein called BENEFICIARY.

Witnessed: That TRUSTOR irrevocably GRANTS, TRANSFERS AND ASSIGNS to TRUSTEE IN TRUST WITH POWER OF SALE, that real property in the City of Bakersfield, County of Kern, State of California, described as:

SEE ATTACHED LEGAL DESCRIPTION, EXHIBIT “A”
TOGETHER WITH the rents, issues and profits thereof, SUBJECT, HOWEVER, to the right, power and authority given to and conferred upon BENEFICIARY by Paragraph 5 of Part B of the provisions of the Corporation Deed of Trust incorporated herein by reference to collect and apply such rents, issues and profits, FOR THE PURPOSE OF SECURING the sum

SEVEN HUNDRED THIRTY -EIGHT THOUSAND THREE HUNDRED SIXTY -THREE DOLLARS ($738,363.00), to TRUSTOR , as provided in City of Bakersfield Agreement No. (“Loan Agreement”), in sub-paragraph 3.1.2, executed by TRUSTOR on or about , 202 4, any additional sums which may hereafter be granted to the TRUSTOR or his successors or assigns by the BENEFICIARY, and securing the performance of each obligation contained in the Loan Agreement and herein contained, including the obligations set forth in the regulatory agreement recorded concurrently herewith.

Additional grants hereafter made shall be secured by this Deed of Trust only if made to
E - 1
E - 2
the TRUSTOR while he is the owner of record of his present interest in said property, or to his successors or assigns while they are the owners of record thereof, and shall be evidenced by an amendment to the Loan Agreementin writing reciting that it is secured by this Deed of Trust.

B
Y THE EXECUTION AND DELIVERY OF THIS DEED OF TRUST the parties hereto agree as follows:

A. T
o protect the Security of this Deed of Trust, TRUSTOR agrees:

1. T
o keep said property in good condition and repair; not to remove or demolish any buildings thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character o r use of said property may be reasonably necessary, the specific enumerations herein not excluding the general.

2. T
o provide, maintain and deliver to BENEFICIARY fire insurance satisfactory to and with loss payable to BENEFICIARY. The amount collected under any fire or other insurance policy may be applied by BENEFICIARY upon any obligation secured hereby and in such order as BENEFICIARY may determine, or at option of BENEFICIARY the entire amount so collected or any part thereof may be released to TRUSTOR. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice.

3. T
o appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of BENEFICIARY, or TRUSTEE; and to pa y al
l costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which BENEFICIARY or TRUSTEE may appear, and in any suit brought by BENEFICIARY to foreclose this Deed.

4. T
o pay, at least ten days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees E - 3
and expenses of this Trust.

5. To
pay immediately and without demand all sums expended by BENEFICIARY or TRUSTEE pursuant to the provisions hereof.

6. Sh
ould TRUSTOR fail to make payment or to do any act as herein provided, then BENEFICIARY or TRUSTEE, but without obligation so to do and without notice to or demand upon TRUSTOR and without releasing TRUSTOR from any obligation hereof, may make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, BENEFICIARY or TRUSTEE being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of BENEFICIARY or TRUSTEE; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees.

B. It
is mutually agreed that:

1. An
y award of damages in connection with any such taking or condemnation, or for injury to the property by reason of public use, or for damages for private trespass or injury thereto, is assigned and shall be paid to BENEFICIARY as further security for all obligations secured hereby (reserving unto the TRUSTOR , however, the right to sue therefor and the ownership thereof subject to this deed of trust), and upon receipt of such moneys BENEFICIARY may hold the same as such further security, or apply or release the same in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance.

2. By
accepting payment of any sum secured hereby after its due date, BENEFICIARY does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay.

3. At
any time or from time to time, and without notice, upon written request of BENEFICIARY and presentation of this Deed of Trust, and without liability therefor, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, and without affecting the security hereof for the full amount secured hereby on all property remaining subject hereto, and without the necessity that any sum representing the value or any portion thereof of the property affected by the TRUSTEE 's action be credited on the indebtedness, the TRUSTEE may: (i) reconvey all or any part of said property; (ii) E - 4
consent to the making and recording, or either, of any map or plat of the property or any part thereof; (iii) join in granting any easement thereon; (iv) join in or consent to any extension agreement or any agreement subordinating the lien, encumbrance or charge hereof.

4. U
pon written request of the BENEFICIARY , and upon surrender of this Deed of Trust to the TRUSTEE for reconveyance, and upon payment of its fees and charges, the TRUSTEE shall reconvey, without warranty, the property then subject hereto. Any reconveyance, whether full or partial may be made in terms to "the person or persons legally entitled thereto."

5. A
s additional security, TRUSTOR hereby gives to and confers upon BENEFICIARY the right, power and authority during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto TRUSTOR the right, prior to any default by TRUSTOR in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, BENEFICIARY may at any time without not ice, either in person, by agent or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his own name sue for or otherwise collect such rents, issues and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such ord er as BENEFICIARY may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act don e
p
ursuant to such notice.

6. Up
on an Event of Default under the contained the Loan Agreement after expieration of all applicable notice and cure periods without a cure, the BENEFICIARY may declare all sums to immediately become due and payable at the option of BENEFICIARY after notice to the TRUSTOR as provided in the Agreement. In such event and upon written request of BENEFICIARY, th e T
RUSTEE shall sell, for lawful money of the United States, the property then subject to this deed of trust, as a whole or in separate parcels, at BENEFICIARY's option, in accordance with the provisions of the laws of the State of California in force at the time of such sale, and if in separate parcels, in such order as BENEFICIARY may direct, at public auction to the highest bidder for cash in lawful money of the United States, payable at the time of sale. TRUSTEE ma y
po
stpone the sale of all or any portion of said property by public oral E - 5
announcement at the time and place of sale, and from time to time thereafter may postpone such sale by public oral announcement at the time fixed by the preceding postponement. After deducting all costs, fees and expenses of TRUSTEE and of this trust, including cost of evidence of title and reasonable counsel fees in connection with sale, TRUSTEE shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at seven per cent per annum; the Amount then secured hereby, and the remainder, if any, to the person or persons legally entitled hereto.

7. T
his Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term BENEFICIARY shall name the City of Bakersfield, a Municipal Corporation ,
a
party to the Loan Agreement or its assignee secured hereby, whether or not named as a BENEFICIARY herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neutral, and th e s
ingular number includes the plural.

8. T
RUSTEE accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. TRUSTEE is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which TRUSTOR, BENEFICIARY or TRUSTEE shall be a party unle ss
b
rought by TRUSTEE.

9. BE
NEFICIARY may from time to time, by a writing signed and acknowledged by BENEFICIARY and recorded in the office of the County Recorder of the County or respective Counties in which the property subject hereto is, or the respective parcels thereof are, situated, appoint another TRUSTEE in place and stead of TRUSTEE herein named, and thereupon the TRUSTEE herein named shall be discharged and the TRUSTEE so appointed shall be substituted as TRUSTEE hereunder with the same force and effect as if originally na med TRUSTEE herein.
1 0. No power or remedy herein conferred is exclusive of, or shall prejudice any other power or remedy of the TRUSTEE or BENEFICIARY given by law. Each such power or remedy may be exercised from time to time as often as deemed necessary.
1 1. The recitals contained in any reconveyance, TRUSTEE 's deed, or any other instrument executed by the TRUSTEE from time to time under the authority hereof or in the exercise of its powers or the performance of its duties under this deed of trust, shall be conclusive evidence of their truth, and binding and E - 6
conclusive upon the TRUSTOR, his heirs, executors, administrators, successors and assigns, and all other persons; whether stated as specific and particular facts, or in general statements or conclusions.
1 2. If any action be brought for the foreclosure of this deed of trust, TRUSTOR agrees to pay to BENEFICIARY or TRUSTEE (whichever may be the plaintiff in the foreclosure action), such reasonable sum as counsel fees as the Court may fix and award in such action, together with a reasonable fee to the TRUSTEE, to be fixed by the Court, and all sums paid or incurred for procuring a search or searches of title to any property covered hereby subsequent to the execution hereof; and all such sums shall be secured hereby.
1 3. If two or more persons be designated as TRUSTEE herein, any, or all, power granted herein to TRUSTEE may be exercised by any of such persons, if the other person or persons are unable, for any reason, to act and any recital of such inability in any instrument executed by any of such persons shall be conclusive against TRUSTOR, his heirs and assigns.
1 4. The BENEFICIARY hereunder shall be entitled to a fee for any statement, regarding the obligation, requested by the TRUSTOR or requested at TRUSTOR's direction which fee shall not exceed the amount provided for in Civil Code Section 2954 at the date of such request.

HE UNDERSIGNED TRUSTOR REQUESTS THAT A COPY OF ANY NOTICE OF DEFAULT AND OF

ANY NOTICE OF SALE HEREUNDER BE MAILED TO HIM AT THIS ADDRESS HEREINBEFORE SET FORTH.
“TR
USTOR”
GOLDEN EMPIRE AFFORDABLE HOUSING, INC.

B
y: ____________________________
STEPHEN M. PELZ
Executive Director
E - 7

REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE

UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST
TR
USTOR requests the holder of any mortgage, deed of trust or other encumbrance with a lien which has priority over this Deed of Trust to give Notice to BENEFICIARY , at 1600 Truxtun Avenue, Bakersfield, CA 93301 of any default under the superior encumbrance and of any sale or other foreclosure action.
“TR
USTOR”
GOLDEN EMPIRE AFFORDABLE HOUSING, INC.

B
y: ____________________________
STEPHEN M. PELZ
Executive Director
E - 8
EXHIBIT “A”
Legal Description
Real
property in the City of Bakersfield, County of Kern, State of California, described as follows:

K
ern County APN: 006-440-10-00-9
EXHIBIT “F”
Regulatory Agreement

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

REGULATORY AGREEMENT
This REGULATORY AGREEMENT (the “Agreement”) is entered into as of ______________________, 2024, by and between the CITY OF BAKERSFIELD, a charter CITY and municipal corporation (the “ CITY”), and GOLDEN EMPIRE AFFORDABLE HOUSING, INC., a California Limited Partnership (the “DEVELOPER”).

R E C I T A L S
WHEREAS, DEVELOPER has acquired certain real property located within the City of Bakersfield, as particularly described in the Legal Description attached hereto as Exhibit “A”, which is incorporated herein by reference (the “Site”); and WHEREAS, DEVELOPER desires to construct four (4) new affordable housing units on the Site (the “Project Property”), and to make available and rent the apartment units within the Project Property (the “Housing Units’) for qualifying households at an affordable rent; and
WHEREAS, DEVELOPER and CITY have entered into a Home American Rescue Plan Program (HOME -ARP) Agreement (the “HOME-ARP Agreement ”) dated as of and any amendments thereafter. Subject to the terms and conditions therein, the DEVELOPER has agreed to acquire the Site and construct and operate the Project Property, the CITY has agreed to provide financial assistance to DEVELOPER, and the DEVELOPER has agreed to make available and lease the following: and four (4) one- bedroom units will be designated as HOME-A RP units with one (1) one-b edroom unit F - 1
F - 2
restricted to low-income households earning less than or equal to eighty percent (80%) AMI, and three (3) one -bedroom units restricted to qualifying households earning less than or equal to thirty percent (30%) AMI, all at an “Affordable Rent” as defined in CPD- 21-10, Section VI, Subsection B, Part 13 and 24 CFR 92.252(f). The execution and recording of this Agreement is a requirement of the HOME-ARP Agreement.

NOW, THEREFORE, the parties hereto agree as follows:

1. Number of Affordable Units. DEVELOPER agrees to make available and restrict o
ccupancy to the following units, all of which shall be floating units in accordance w
ith 24 CFR 92.253(d):

HOME-ARP Initial Rent Schedule
# of
Bedrooms
Unit
Designation
Unit
Count
Square
Feet
Gross
Rent
Utility
Allowance
Net
Rent
1 Qualifying Populations
30% AMI 3 500 $464 $74 $390
1 Low Income
80% AMI 1 500 $869 $74 $795
* Q ualifying Populations as defined in US Department of Housing and Urban Development (HUD) in Community Development and Planning Notice 21-10 (CPD-21-10), Section IV, Subsection A and 24 CFR 91.5.

2. Duration of Affordability Requirements. The HOME-ARP assisted units shall be subject to the requirements of this Agreement for fifty-five (55) years from the date of
Project Completion when the certificate of occupancy is issued for the project site.

3. S
election of Tenants. DEVELOPER shall be responsible for the selection of tenants for the Housing Units in compliance with lawful and reasonable criteria, as defined in CPD-21-10, Section VI, Subsection C, Part 1 and in accordance with 24 CFR

92.253(h), as set forth in the Management Plan which is required to be submitted and approved by the CITY pursuant to Section 9 hereof.

4. H
ousehold Income Requirements . Following the initial lease -up of the Housing Units, and annually thereafter, the DEVELOPER shall submit to CITY, at DEVELOPER's expense, a summary of the income, household size and rent payable by each of the tenants of the Housing Units. At the request of CITY, the DEVELOPER shall also provide to the CITY completed income computation and certification forms, in a form reasonably acceptable to the CITY, for any such tenant or tenants.

F - 3
DEVELOPER shall obtain, or shall cause to be obtained by the Property Manager, a certification from each household leasing an Affordable Unit demonstrating that such household meets the income eligibility requirements established for the Housing Unit. DEVELOPER shall verify, or shall cause to be verified by the Property Manager, the income certification of the household.

F
or purposes of this Agreement, the “Kern County Median Income” shall be determined pursuant to the regulations published by the California Department of Housing and Community Development, or its successor.

F
or the purposes of this Agreement, “H ousehold Income” means the calculated annual income of the household as defined in CPD -21-10, Section VI, Subsection B, Part 12 and in accordance with 24 CFR 92.203(b)(1).

5. A
ffordable Rent. For the purposes of this agreement “Affordable Rent” equals a maximum “Monthly Rent” not to exceed 30% of the adjusted income of a famil y w
hose annual income equals 65% of the area median income (AMI), as determined by HUD, with adjustments for number of bedrooms in the unit as defined in CPD-21-10, Section VI, Subsection B, Part 13 and in accordance with the requirements of 24 CFR 92.252(a).

F
or purposes of this Agreement, “Monthly Rent” means the total of monthly payments for (a) use and occupancy of each Affordable Unit and land and facilities associated therewith, (b) any separately charged fees or service charges assessed by the DEVELOPER which are required of all tenants, other than security deposits, (c) a reasonable allowance for an adequate level of service of utilities not included in (a) or (b) above, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone service, and (d) possessory interest, taxe s or other fees or charges assessed for use of the land and facilities associated therewith by a public or private entity other than DEVELOPER. In the event that all utility charges are paid by the landlord rather than the tenant, no utility allowance shall be deducte d
f
rom the rent.

For purposes of this Agreement, the “Kern County Median Income” shall be determined pursuant to the regulations published by the California Department of Housing and Community Development, or its successor.

6. Compliance with Other Programs . Where rent or occupancy restrictions of other financing sources, including Federal or State Tax Credits and sources from the Department of Housing and Community Development overlap American Rescue Plan Act, Local Housing Trust Fund, and Public Safety & Vital Services-assisted units, the stricter of the two programs requirements shall apply.

F - 4

7. Marketing Program. Each Affordable Unit shall be leased to tenants selected by th
e DEVELOPER who meet all of the requirements provided herein in accordance with the tenant selection policies of 24 CFR 92.253(h) . DEVELOPER shall prepare and obtain CITY’s approval, which approval shall not be unreasonably withheld , o
f a marketing program for the leasing of the Affordable Units at the Housing Project (the “Marketing Program”). The leasing of the Affordable Units shall thereafter be marketed in accordance with the Marketing Program as the same may be amended from time to time with CITY’s prior written approval, which approval shall not unreasonably be withheld. The CITY agrees to exercise reasonable efforts to assist DEVELOPER in connection with the implementation of the Marketing Program; provided, however, CITY shall not be under any obligation to incur any out-of-pocket expenses in connection therewith.

8. M
aintenance. DEVELOPER, for itself and its successors and assigns, hereby covenants and agrees to maintain and repair or cause to be maintained and repaired the Site and all related on-site improvements and landscaping thereon, including, without limitation, buildings, parking areas, lighting, signs and walls in a first class condition and repair, free of rubbish, debris and other hazards to persons using the same, and in accordance with all applicable laws, rules, ordinances and regulations of all federal, state, and local bodies and agencies having jurisdiction, at DEVELOPER sole cost and expense. Such maintenance and repair shall include, but not be limited to, the following: (i) sweeping and trash removal; (ii) the care and replacement of all shrubbery, plantings, and other landscaping in a healthy condition; and (iii) the repair, replacement and restriping of asphalt or concrete paving using the same type of material originally installed, to the end that such savings at all times be kept in a level and smooth condition. In addition, DEVELOPER shall be required to maintain the Property in such a manner as to avoid the reasonable determination of a duly authorized official of the CITY that a public nuisance has been created by the absence of adequate maintenance such as to be detrimental to the public health, safety or general welfare or that such a condition of deterioration or disrepair causes appreciable harm or is materially detrimental to property or improvements within one thousand (1,000) feet of such portion of the Site.
(
a) Maintenance of Improvements. DEVELOPER covenants and agrees for itself, its successors and assigns, and every successor in interest to the Site, or any part thereof, that DEVELOPER shall be responsible for maintaining all improvements that may exist on the Site or that may be constructed on the Site and any off -site improvements in accordance with the terms and conditions of the Regulatory Agreement. The foregoing maintenance shall run with the land in accordance with and for the term of the Regulatory Agreement. DEVELOPER’s further obligations to maintain the Site, and F - 5
Agency’s remedies in the event of DEVELOPER’s default in performing such obligations, are set forth in the Regulatory Agreement. DEVELOPER hereby waives any notice, public hearing, and other requirements of the public nuisance laws and ordinances of the CITY that would otherwise apply, except as specified in said Regulatory Agreement. Upon the sale of any portion of the Site, DEVELOPER (but not DEVELOPER’s successor) shall be released from the requirements imposed by this Section 6.5 , and the financial liability therefor, as to the portion of the Site conveyed.

9. M
anagement Plan; Property Management. The DEVELOPER shall submit for the reasonable approval of the CITY a “Management Plan” which sets forth in detail the DEVELOPER’s property management duties, a tenant selection process in ac
cordance with 24 CFR 92.253(h) and Section 6 hereof, a security system and crime prevention program, the procedures for the collection of rent, the procedures for eviction of tenants, the rules and regulations of the Housing Project and manner of enforcement, a standard lease form, an operating budg et, the identity of the manager of the Housing Project (the “Property Manager”), and other matters relevant to the management of the Housing Project. The management of the Housing Project shall be in compliance with the Management Plan, which is approved by the CITY.

If
the CITY determines that the performance of the Property Manager is deficient based upon the standards set forth in the Management Plan and in this Agreement, it shall provide notice to the DEVELOPER of such deficiencies, and the DEVELOPER shall use its best efforts to correct such deficiencies. In the event that such deficiencies have not been cured within the time set forth in the Agreement ,
th
e CITY shall have the right to require the DEVELOPER to immediately remove and replace the Property Manager with another property manager or property management company which is reasonably acceptable to the CITY, which is not related to or affiliated with the DEVELOPER, and which has not less than five (5) years experience in property management, including significant experience managing housing facilities of the size, quality and scope of the Housing Project. 1 0. Capital Reserve Requirements. The DEVELOPER shall also, or cause the Property Manager to, annually set aside such amount as may be required by the Housing Project LENDERs into a separate interest-bearing trust account in the name of the DEVELOPER (the “Capital Replacement Reserve”). Satisfaction of the Capital Replacement Reserve requirements of the Housing Project LENDERs shall satisfy the CITY’s requirement to maintain a Capital Replacement Reserve. Funds in the Capital Replacement Reserve shall be used for capital replacements to the Housing Project fixtures and equipment, which are normally capitalized under generally accepted accounting principles. The non -availability of funds in the F - 6
Capital Replacement Reserve does not in any manner relieve the DEVELOPER of the obligation to undertake necessary capital repairs and improvements and to continue to maintain the Housing Project in the manner prescribed herein. Capital repairs to and replacement of the Housing Project shall include only those items with a long useful life, including without limitation the following: carpet and drape replacement; appliance replacement; exterior painting, including exterior trim; hot water heater replacement; plumbing fixtures replacement, including tubs and showers, toilets, lavatories, sinks, faucets; air conditioning and heating replacement; asphalt repair and replacement, and seal coating; roofing repair and replacement; landscape tree replacement; irrig ation pipe and controls replacement; gas line pipe replacement; lighting fixture replacement; elevator replacement and upgrade work; miscellaneous motors and blowers; common area furniture replacement; common area repainting, and uninsured losses due to casualties such as earthquakes.

11. No
n-Discrimination Covenants. DEVELOPER herein covenants by and for itself, its successors and assigns, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Cod e, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenan ts, lessees, subtenants, sublessees, or vendees in the Site and the Housing Project. The foregoing covenants shall run with the land.

No
twithstanding the immediately preceding paragraph, with respect to familial status, the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code.

With respect to f amilial status, nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph.

All deeds, leases or contracts entered into by DEVELOPER relating to the Site and the Housing Project shall contain or be subject to substantially the following nondiscrimination or non-segregation clauses:
(a
) In deeds: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under F - 7
or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land. “No
twithstanding the immediately preceding paragraph, with respect to familial status, the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4,

51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens.

Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph.”
(b
) In leases: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:

Th
at there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself , or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.
“N
otwithstanding the immediately preceding paragraph, with respect to familial status, the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the F - 8
Government Code. With respect to familial status, nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4,

51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens.

Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph.”
(
c) In contracts: “There shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d)
o
f Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises which are the subject of this Agreement, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” “
Notwithstanding the immediately preceding paragraph, with respect to familial status, the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2, 51.3, 51.4,

51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens.

Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph.”
T
he covenants established in this Section 11 shall, without regard to technical classification and designation, be binding for the benefit and in favor of the CITY and its successors and assigns, and shall remain in effect in perpetuity. 1 2. Monitoring and Recordkeeping. Throughout the Period of Affordability , DEVELOPER shall comply with all applicable recordkeeping and monitoring requirements and shall annually complete and submit to CITY a report, prior to April 15 of each year, which includes the name, address, income, age, race and ethnicity of each occupant of an Affordable Unit, identifying the bedroom count and Monthly Rent for such Affordable Unit. Representatives of the CITY shall be en
titled to enter the Housing Project, upon at least seventy -two (72) hours prior written notice, to monitor compliance with this Agreement, to inspect the records of the Housing Project, and to conduct an independent audit or inspection of such F - 9
records. The DEVELOPER agrees to cooperate with the CITY in making the Housing Project available for such inspection or audit. DEVELOPER agrees to maintain records in businesslike manner, and to maintain such records for the term of this Agreement.

13. Co
mpliance With Laws and Agreement. The DEVELOPER shall carry out the design, development and operation of the Housing Project in conformity with the Agreement and all applicable laws, including all applicable state labor standards, CITY zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the CITY Municipal Code, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq ., Government Code Section 4450, et seq ., Government Code Section 11135, et seq., the Unruh Civil Rights Act, Civil Code Section 51, et seq ., Civil Rights Act of 1986, Title VII of the 1968 Civil Rights Act, California Rumford Fair Housing Act of 1968 and the Fair Housing Amendments Act of 1988, The California Fair Employment and Housing Act, The Unruh Act (California Government Code Section 51), The Ralph Civil Rights Act (California Civil Code Section 51.7), The Bane Civil Rights Act (California Civil Code Section 52.1), California Government Code Sections 111135, 65008 and 65589.5.

14. D
uty to Prevent Hazardous Material Contamination. During the development and operation of the Housing Project, the DEVELOPER shall take all necessary precautions to prevent the release of any Hazardous Materials into the environment on or under the Site. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. The DEVELOPER shall notify the CITY, and provide to the CITY a copy or copies, of any notices of violation, notices to comply, citations, inquiries, clean-up or abatement orders, cease and desist orders, reports filed pursuant to self -reporting requirements and reports filed or applications made pursuant to any Governmental Requirement relating to Hazardous Materials and underground tanks, and the DEVELOPER shall report to the CITY, as soon as possible after each incident, any unusual, potentially important incidents in the event of a release of any Hazardous Materials into the environment.

Fo
r purposes of this Section 14, “Governmental Requirements” shall mean all laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the state, the county, the CITY, or any other political subdivision in which the Housing Project is located, and of any other political subdivision, CITY or instrumentality exercising jurisdiction over the CITY, the DEVELOPER or the Housing Project.

F - 10
For purposes of this Section 14 , “Hazardous Materials” means any substance, material, or waste which is or becomes, regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a “hazardous waste,” “extremely hazardous waste,” or “restricted hazardous waste” under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law)), (ii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter -Presley-Tanner Hazardous Substance Account Act), (iii) defined as a “hazardous material,” “hazardous substance,” or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter

6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated byphenyls, (viii) methyl tertiary butyl ether, (ix) listed under Article 9 or defined as “hazardous” or “extremely hazardous” pursuant to Article 11 of Title 22 of the California Code of Regulations, Division 4, Chapter 20, (x) designated as “hazardous substances” pursuant to Section 311 of the Clean Water Act (33 U.S.C. § 1317), (xi) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §§6901, et seq. (42 U.S.C. §6903) or (xii) defined as “hazardous substances” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§9601, et seq. Notwithstanding the foregoing, "Hazardous Materials" shall not include such products in quantities as are customarily used in the construction, maintenance, Rehabilitation or management of residential developments or associated buildings and grounds, or typically used in residential activities in a manner typical of other comparable residential developments, or substances commonly ingested by a significant population living within th e Housing Project, including without limitation alcohol, aspirin, tobacco and saccharine.

15. Su
ccessors and Assigns. This Agreement shall run with the land, and all of the terms, covenants and conditions of this Agreement shall be binding upon the DEVELOPER and the CITY and the permitted successors and assigns of the DEVELOPER and the CITY. Whenever the term “ DEVELOPER” or “ CITY” is used in this Agreement, such term shall include any other successors and assigns as herein provided.

16. No T
hird Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the CITY and their successors and assigns, and DEVELOPER and its successors and assigns, and no other person or persons shall F - 11
have any right of action hereon.

17. Par
tial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

18. Go
verning Law. This Agreement and the documents and other instruments given pursuant hereto shall be construed in accordance with and be governed by the laws of the State of California. Any references herein to particular statutes or regulations shall be deemed to refer to successor statutes or regulations, or amendments thereto.

19. Am
endment. This Agreement may not be changed orally, but only by agreement in writing signed by DEVELOPER and the CITY.

IN WI
TNESS WHEREOF, the parties hereto have executed this Regulatory Agreement effective as of the date and year set forth above.
“CITY” “DEVELOPER”
CITY OF BAKERSFIELD GOLDEN EMPIRE AFFORDABLE HOUSING, INC.

By:
____________________________ By: ____________________________ KAREN GOH STEPHEN M. PELZ
Mayor Executive Director
[Add
itional Signatures on Following Page]
F - 12
APPROVED AS TO CONTENT:

ECONOMIC AND COMMUNITY

DEVELOPMENT DEPARTMENT
By: ______
________________________
JENNIFER M. BYERS
Economic and Community
Development Director
APPRO
VED AS TO FORM:

VIRGINIA GENNARO
City Attorney
By:
_______________________________
JOSHUA H. RUDNICK
Deputy City Attorney II
Ins
urance: ___________
COUN
TERSIGNED:

By:
____________________________

RANDY MCKEEGAN
Finance Director
F - 13
EXHIBIT “A”
Legal Description
Real
property in the City of Bakersfield, County of Kern, State of California, described as follows:

Lo
t 10 Block 391 of the Stark Tract, in the City of Bakersfield, County of Kern, State of California, as per map recorded June 17, 1910 in Book 2, Page 3 of Parcel Maps, in the Office of the County Recorder of said County.

Ke
rn County APN: 006-440-10-00-9
G - 1
EXHIBIT “G”
C
ompletion Guaranty Agreement
T
his COMPLETION GUARANTY AGREEMENT (the “ Guaranty”) is made and entered into as of __________, 2024 by the GOLDEN EMPIRE AFFORDABLE HOUSING, INC. (referred to herein as “GUARANTOR”) in favor of the CITY OF BAKERSFIELD (referred to herein as “CITY”).

WH
EREAS, the CITY and GUARANTOR have entered into that certain AGREEMENT dated as of ____________, 202 4 (“Agreement”) under which Golden Empire Affordable Housing, Inc. (referred to herein as “DEVELOPER”) has agreed to construct four (4) new affordable housing units within Bakersfield, CA as defined in the Scope of Work (Exhibit “B”) and the CITY has agreed to provide a Loan (as defined in the Agreement) to DEVELOPER for acquisition and development of the Project.

N
OW, THEREFORE, for other good and valuable consideration, receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, GUARANTOR hereby covenants and agrees as follows:

1. G
UARANTOR hereby unconditionally guarantees that DEVELOPER shall construct and complete the Project in accordance with the Agreement on or before th e d
ate specified in the Schedule of Performance attached to the Agreement (subject to applicable notice, cure and force majeure extensions as contained in the Agreemen t) and shall pay all costs and expenses with respect to the construction and completion of the Project.

2. I
f DEVELOPER does not perform as specified in Section 1 hereof, GUARANTOR unconditionally and irrevocably covenants and agrees that GUARANTOR shall c
onstruct and complete the Project on or before the times required by, and otherwise in accordance with, the Agreement and pay all costs and expenses and discharge all liabilities, with respect to such construction and completion .

S
ubject to all Agreement terms, limitations and conditions with respect thereto, CITY shall make available to GUARANTOR such monetary and non -monetary assistance as CITY is obligated to provide DEVELOPER under the terms of th e Ag
reement.

3. T
his Guaranty shall remain in full force and effect until such time as a Certificate of Occupancy has been issued for the entirety of the Project , at which time this Guaranty shall automatically terminate.

4. I
n the event DEVELOPER does not perform its obligations set forth in Section 1 of th
e Guaranty on or prior to the time such performance (or any portion thereof) is required, CITY may, at its option, proceed to enforce this Guaranty against G - 2
GUARANTOR i n the first instance without first proceeding against DEVELOPER or any other person and without first resorting to any security held by or on behalf of CITY as security or to any other remedies, and the liability of GUARANTOR hereunder shall be in no manner affected or impaired by any failure, delay, neglect, omission or election by CITY not to realize upon or pursue any persons or security liable for obligations of DEVELOPER under the Agreement.

No
twithstanding anything to the contrary contained herein, as a condition precedent to the obligations of GUARANTOR to perform DEVELOPER’S obligations set forth in Section 1 of the Guaranty , the CITY shall approve advances to GUARANTOR of undisbursed portions of the Loan subject to the terms and conditions of the Agreement, provided that GUARANTOR shall have satisfied the conditions for the advance of such funds under the Agreement (other than the conditions relating to the financial condition or corporate status of DEVELOPER), and with respect to any default related to the construction and/or completion of the Work, GUARANTOR shall have diligently commenced to cure such default and, after such cure or commencement of cure, as the case may be, GUARANTOR shall diligently continue to perform all obligations assumed by GUARANTOR under this Guaranty up to the time of completion of the Project.

5. CIT
Y, from time to time and before or after any events of default by DEVELOPER under the Agreement and with or without further notice to or assent from GUARANTOR and without in any manner affecting the liability of GUARANTOR and u
pon such terms and conditions as it may deem advisable, may: (a) extend in whole or in part (by renewal or otherwise), modify, accelerate, change or release (
or consent to any of the foregoing) any other agreements, documents or instruments in any w ay related to the obligations hereby guaranteed and any other indebtedness, liability or obligation of DEVELOPER or of any other person secondarily or otherwise liable for any such indebtedness, liability or obligation of DEVELOPER, or waive any default with respect thereto; (b) sell, release, surrender, modify, impair, exchange, substitute or extend any and all security at any time held by CITY as security for the payment or performance of the obligations of DEVELOPER under the Agreement and any other indebtedness, liability or obligation of DEVELOPER to Agreement; and (c) settle, adjust or compromise any claim of CITY against DEVELOPER or any other person secondarily or otherwise liable (including, but not limited to, GUARANTOR) for the obligations of DEVELOPER under the Agreement or any other indebtedness, liability or obligation of DEVELOPER. GUARANTOR hereby ratifies and confirms any such extension, renewal, change, release, waiver, surrender, exchange, modification, impairment, substitution, settlement, adjustment, compromise or consent and agrees that the same shall be binding upon GUARANTOR , and GUARANTOR hereby expressly waives any and all defenses, counterclaims or offsets which G - 3
GUARANTOR m ight or could have by reason thereof, it being understood that GUARANTOR shall at all times be bound by this Guaranty and remain liable to CITY hereunder until all of the obligations hereunder shall have been performed in full.

GUARANTOR agrees that its obligations hereunder shall not be discharged, limited, or otherwise affected by any circumstances which otherwise would constitute a legal or equitable discharge of GUARANTOR as surety or GUARANTOR.

6. CIT
Y may without the consent of or notice to GUARANTOR at any time and from time to time: (a) amend any provisions of the Agreement, and any other agreements, instruments or documents relating in any way to the obligations hereby guaranteed and any change in the obligations to be performed thereunder; (b) make any agreement with DEVELOPER for the extension, renewal, modification, payment, compounding, compromise, discharge, exchange, settlement, waiver or release of any provision of the Agreement, and any other agreements, documents or instruments relating in any way to the obligations hereby guaranteed, or of any person liable for or any security for the performance of any of the obligations hereby guaranteed, without notice to or the consent of GUARANTOR; and (c) without limiting the generality of the foregoing, surrender to DEVELOPER, or to deal with or modify the form of, any security which CITY may at any time hold or which is held on its behalf to secure the performance of any obligation hereby guaranteed, and the obligations herein undertaken by GUARANTOR shall not be impaired or affected by any of the foregoing but shall include any other obligations thereby undertaken by the DEVELOPER. (
a.) GUARANTOR hereby waives all requirements that CITY shall institute any action or proceedings at law or in equity against DEVELOPER or anyone else or with respect to any security held by CITY as a condition precedent to bringing an action against GUARANTOR upon this Guaranty, and GUARANTOR further agrees to make and perform its obligations hereunder whether or not any one or more of the following events have occurred: (i) CITY has made any demand on DEVELOPER; ( ii) CITY has taken any action of any nature against or has pursued any rights which CITY has against any other person, partnership, corporation, association, company or entity who may be liable for performance of the obligations with respect to the completion of the Project; (iii) CITY holds or has resorted to any security for the obligations of DEVELOPER under the Agreement or any other liabilities or obligations hereby guaranteed; or (d) Agency has invoked any other remedies or rights CITY has available with respect to the obligations of DEVELOPER under the Agreement or the liabilities or obligations hereby guaranteed.
(
b.) GUARANTOR shall not be released by any act or thing which might, but for this provision of this Guaranty , be deemed a legal or equitable discharge of a G - 4
surety or GUARANTOR , or by reason of any waiver, extension, modification, forbearance or delay of CITY or its failure to proceed promptly or otherwise in the enforcement of the Agreement or any other agreement, document or instrument relating in any way to the obligations hereby guaranteed, and GUARANTOR hereby expressly waives and surrenders any defense to its liability under this Guaranty based upon any of the foregoing acts, things, agreements or waivers, including without limitation, any benefits it may have under California Civil Code § 2815 (or any similar law in any jurisdiction).

7. G
UARANTOR hereby waives presentment for payment, demand, protest, notice of protest and of dishonor, notice of acceptance hereof, notices of default and all other notices now or hereafter provided by law.

8. G
UARANTOR hereby agrees that this instrument contains the entire agreement between the parties and there is and can be no other oral or written agreement or understanding whereby the provisions of this instrument have been or can be affected, varied, waived or modified in any manner unless the same be set forth in writing and signed by CITY, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

9. T
his Guaranty is and shall be deemed to be a contract entered into and to be fully performed in the City of Bakersfield, California, under and pursuant to the procedural and substantive laws of the State of California without regard to the choice of law principles thereof
.
1 0. GUARANTOR shall not, by reason of the performance of the terms and provisions of this Guaranty, succeed to or be subrogated to the rights and privileges of CITY against DEVELOPER or any other party or be deemed to be the successor or assign of either CITY , unless and until each and every indebtedness, liability , and obligation of any kind of DEVELOPER to CITY shall have been performed and discharged. In addition and without the foregoing or any other waiver herein, GUARANTOR hereby waives, in accordance with California Civil Code § 2856(a)(1), if applicable, all rights, benefits and defenses including, without limitation, all rights of subrogation, reimbursement, indemnification and contribution, under California Civil Code §§ 2787 to 2855, inclusive, 2899 and 3433, and under, or based upon, directly or indirectly, California Code of Civil Procedure §§ 580a, 580b, 580d and 726, if applicable (or any similar law in any other jurisdiction) and no other provision of this Guaranty shall be constructed as the limiting the generality of any covenants and waivers set forth in this Section 11. 1 1. No delay on the part of CITY in exercising any rights hereunder or failure to exercise the same shall operate as a waiver of such rights. All of the rights, powers and remedies hereunder and under any other agreement entered into between G - 5
GUARANTOR an d CITY, shall be cumulative and not alternative, and such rights, powers and remedies shall be in addition to all of such CITY’s rights, powers and remedies provided by law.
1 2. GUARANTOR agrees to pay all costs and expenses which may be incurred by CITY, t
heir successors and assigns, in the enforcement of this Guaranty or otherwise relating to this Guaranty, including, but not limited to, reasonable attorneys’ fees. 1 3. This Guaranty shall not be deemed to affect, limit, modify or otherwise have any impact or effect upon, or be affected, limited , or modified b y any other agreement of Guaranty or suretyship given by GUARANTOR with respect to the Agreement. Notwithstanding anything to the contrary herein contained, this Guaranty shall be deemed supplemental to, and not in derogation of, any such agreement of Guaranty or suretyship or any other instrument now or hereafter executed by GUARANTOR in favor of CITY.
1 4. In case any one or more of the provisions of this Guaranty shall be invalid, illegal or unenforceable in any respect, the validity of the remaining provisions shall be in no way affected, prejudiced or disturbed thereby.
1 5. In the event any party is added to become an additional GUARANTOR under this Guaranty, all obligations of GUARANTOR hereunder shall be joint and several with any such other party or parties, and, under such circumstances, all references to GUARANTOR herein shall thereafter be deemed to refer to each of such parties comprising GUARANTOR both individually and collectively with the other such party or parties.

I
N WITNESS WHEREOF, GUARANTOR has duly executed this Guaranty as of the day and year first above written.
“GU
ARANTOR”
GOLDEN EMPIRE AFFORDABLE HOUSING, INC.

B
y: ____________________________
STEPHEN M. PELZ
Executive Director
H - 1
E
XHIBIT "H"
CER

TIFICATION REGARDING LOBBYING
Th
e undersigned certifies, to the best of his or her knowledge and belief, that:
(1
) No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2
) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a M ember of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
(3
) The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontractors, sub- grants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.

Th
is certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

GOLD
EN EMPIRE AFFORDABLE HOUSING, INC.

By
: ____________________________
STEPHEN M. PELZ
Executive Director
I - 1
EXHIBIT “I”
Equal Opportunity (48 CFR 52.222-26)
(
A) If, during any 12-month period (including the 12 months preceding the award of this contract), the Contractor has been or is awarded nonexempt Federal contracts and/or subcontracts that have an aggregate value in excess of $10,000, the Contractor shall comply with subparagraphs (b)(1) through (11) of this clause. Upon request, the Contractor shall provide information necessary to determine the applicability of this clause.
(
B) During performing this contract, the Contractor agrees as follows:

1. T
he Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, sexual orientation, o
r gender identity. However, it shall not be a violation of this clause for the Contractor to extend a publicly announced preference in employment to Indians living on or near an Indian reservation, in connection with employment opportunities on or near an Indian reservation, as permitted by 41 CFR 60-1.5.

2. T
he Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. This shall include, but not be limited to, (i) employment, (ii) upgrading, (iii) demotion, (iv) transfer, (v) recruitment or recruitment advertising, (vi) layoff or termination, (vii) rates of pay or other forms of compensation, and (viii) selection for training, including apprenticeship.

3. T
he Contractor shall post in conspicuous places available to employees and applicants for employment the notices to be provided by the Contracting Officer that explain this clause.

4. T
he Contractor shall, in all solicitations or advertisement for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin.

5. T
he Contractor shall send, to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, the notice to be provided by the Contracting Officer advising the labor union or workers' representative of the Contractor's commitments under this clause, and post copies of the notice in conspicuous places available to employees and applicants for employment
.

6. T
he Contractor shall comply with Executive Order 11246, as amended, and the rules, I - 2
regulations, and orders of the Secretary of Labor.

7. T
he Contractor shall furnish to the contracting agency all information required by Executive Order 11246, as amended, and by the rules, regulations, and orders of the Secretary of Labor. The Contractor shall also file Standard Form 100 (EE0 -1), or any s
uccessor form, as prescribed in 41 CFR part 70 -1. Unless the Contractor has filed within the 12 months preceding the date of contract award, the Contractor shall, within 30 days after contract award, apply to either the regional Office of Federal Contract C ompliance Programs (OFCCP) or the local office of the Equal Employment Opportunity Commission for the necessary forms.

8. T
he Contractor shall permit access to its premises, during normal business hours, by the contracting agency or the OFCCP for the purpose of conducing on -site c
ompliance evaluations and complaint investigations. The Contractor shall permit the Government t o inspect and copy any books, accounts, records (including computerized records), and other material that may be relevant to the matter under investigation and pertinent to compliance with Executive Order 11246, as amended, and rules and regulations that implement the Executive Order.

9. If
the OFCCP determines that the Contractor is not in compliance with this clause or any rule, regulation, or order of the Secretary of Labor, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared in eligible for further Government contracts, under the procedures authorized in Executive Order 11246, as amended. In addition, sanctions may be imposed and remedies invoked against the Contractor as provided in Executive Order 11246, as amended; in the rul es, regulations, and orders of the Secretary of Labor; or as otherwise provided by law.
1 0. The Contractor shall include the terms and conditions of subparagraph (b)(1) through (1 2) of this clause in every subcontract or purchase order that is not exempted by the rules, regulations, or orders of the Secretary of Labor issued under Executive Order 11246, as amended, so that these terms and conditions will be binding upon each subcontractor or vendor.
1 1. The Contractor shall take such action with respect to any subcontract or purchase order as the contracting officer may direct as a means of enforcing these terms and conditions, including sanctions for noncompliance; provided, that if the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of any direction, the Contractor may request the United States to enter into the litigation to protect the interests of the United States. 1 2. Notwithstanding any other clause in this contract, disputes relative to this clause will be governed by the procedures in 41 CFR 60-1.1.

J - 1
EXHIBIT “J”
Nondiscrimination in Federally Assisted Programs of the Department of Housing and Urban Development (FR, Subtitle A, Part 1, Section 1.5 Assurances Required) (
A) General.

1. E
very contract for Federal financial assistance to carry out a program or activity to which this Part 1 applies, executed on or after January 3, 1965, and every application for such Federal financial assistance submitted on or after January 3, 1965, shall, as a condition to this approval and the extension of any Federal financial assistance pursuant to such contract or application, contain or be accompanied by an assurance that the program or activity will be conducted and the housing, accommodations, facilities, services, financial aid, or other benefits to be provided will be operated and administered in compliance with al l
r
equirements imposed by or pursuant to this Part 1. In the case of a contract or application where the Federal financial assistance is to provide or is in the form of personal property or real property or interest therein or structures t hereon, the assurance shall obligate the recipient or, in the case of a subsequent transfer, the transferee, for the period during which the property is used for a purpose for which the Federal financial assistance is extended or for another purpose involv ing the provision of similar services or benefits, or for as long as the recipient retains ownership or possession of the property, whichever is longer. In all other cases, the assurance shall obligate the recipient for the period during which Federal financial assistance is extended pursuant to the contract or application. The responsible Department official shall specify the form of the foregoing assurance for such program or activity, and the extent to which like assurances will be required of subgrantees, contractors and subcontractors, transferees, successors in interest, and other participants in the program or activity. Any such assurance shall include provisions which give the United States a right to seek its judicial enforcement.

2. In
the case of real property, structures or improvements thereon, or interests therein, acquired through a program of Federal financial assistance, the instrument effecting any disposition by the recipient of such real property, structures or improvements thereon, or interests therein, shall contain a covenant running with the land assuring nondiscrimination for the period during which the real property is used for a purpose for which the Federal financial assistance is extended or for another purpose invol ving the provision of similar services or benefits. In the case where Federal financial assistance is provided in the form of a transfer of real property or interests therein from the Federal Government, the instrument effecting or recording the transfer shall contain such a covenant.

3. I
n program receiving Federal financial assistance in the form, or for the acquisition, J - 2
of real property or an interest in real property, to the extent that rights to space on, over, or under any such property are included as part of the program receiving such assistance, the nondiscrimination requirements of this Part 1 shall extend to any facility located wholly or in part.
(
B) Preexisting contracts - funds not disbursed. In any case where a contract for Federal financial assistance, to carry out a program or activity to which this Part 1 applies, has been executed prior to January 3, 1965, and the funds have not been fully disbursed by the Department, the responsible Department official shall, where necessary to effectuate the purposes of this Part 1, require an assurance similar to that provided in paragraph (a) of this section as a condition to the disbursement of further funds. (
C) Preexisting contract - periodic payments. In any case where a contract for Federal financial assistance, to carry out a program or activity to which this Part 1 applies, has been executed prior to January 3, 1965, and provides for periodic payments for the continuation of the program or activity, the recipient shall, in connection with the first application for such periodic payments on or after January 3, 1965: (1) Submit a statement that the program or activity is being conducted in compliance with all requirements imposed by or pursuant to t his Part 1; and (2) Provide such methods of administration for the program or activity as are found by the responsible Department official to give reasonable assurance that the recipient will comply with all requirements imposed by or pursuant to this Part 1.
(
D) Assurances from institutions.

1. In
the case of any application for Federal financial assistance to an institution of higher education, the assurance required by this section shall extend to admission practices and to all other practices relating to the treatment of students.

2. T
he assurance required with respect to an institution of higher education, hospital, o
r any other institution, insofar as the assurance relates to the institution's practices with respect to admission or other treatment of persons as students, patients, or clients of the institution or to the opportunity to participate in the provision of services or other benefits to such persons, shall be applicable to the entire institution unless the applicant establishes, to the satisfaction of the responsible Department official, that the institution's practices in designated parts or programs of the institution will in no way affect its practices in the program of the institution for which Federal financial assistance is sought, or the beneficiaries of or participants in such program. If in any such case the assistance sought is for the construction of a facility or part of a facility, the assurance shall in any event extend to the entire facility and to facilities operated in connection therewith.

J - 3
(E) Elementary and secondary schools. The requirements of this section with respect to any elementary or secondary school or school system shall be deemed to be satisfied if such school or school system:

1. Is s
ubject to a final order of a court of the United States for the desegregation of such school or school system, and provides an assurance that it will comply with such order, including any future modification of such order, or

2. Su
bmits a plan for the desegregation of such school or school system which the responsible official of the Department of Health and Human Services determines is adequate to accomplish the purposes of the Act and this Part 1 within the earliest practicable time, and provides reasonable assurance that it will carry out such plan.
[
38 FR 17949, July 5, 1973, as amended at 50 FR 9269, March 7, 1985] K - 1
EXHIBIT “K”
Section 3 Clause
Training Employment and Business Opportunity
A
ll Section 3 covered contracts shall include the following clause (referred to as the Section 3 Clause):
(A) The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low - and very low - income persons, particularly persons who are recipients of HUD assistance for housing. (
B) The parties to this contract agree to comply with HUD’s regulations in 24 CFR part 75, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 75 regulations. (
C) The contractor agrees to send to each labor organization or representative or workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of the contractor’s commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe th e Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.
(
D) The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 75, and agrees to take appropriate action, a
s provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 75. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 75.
(
E) The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 C FR part 75 require employment opportunities to be directed, were not filled to K - 2
circumvent the contractor’s obligations under 24 CFR part 75. (
F) Noncompliance with HUD’s regulations in 24 CFR part 75 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.

L - 1
EXHIBIT “L”
Utilization of Women and Minority Owned Business Enterprises (
A) It is the policy of the City of Bakersfield that women and minority owned business enterprises shall have the maximum practicable opportunity to participate in the performance of City of Bakersfield Economic and Community Development Department contracts.
(
B) The Contractor agrees to use his best efforts to carry out this policy in the award of his subcontractors to the fullest extent consistent with the efficient performance of this contract. As used in this contract, the term "Minority or Women's Business Enterprise" means a business, at least 51% of which is owned by minority group members or women; in the case of publicly-owned businesses, at least 51% of the stock is owned by minority group members or women. For the purpose of this definition, minority group members are Hispanic/Latino, Black/African American, Asian, American Indian or Alaska Native, and Native Hawaiian or Other Pacific Islander. Contractors may rely on written representations by subcontractors regarding their status as minority business enterprises in lieu of an independent investigation.

M - 1
EXHIBIT “M”
Affirmitive Action for Disabled Veterans and Veterans of the Vietnam Era (48 CFR 52.222-35 - April 1998)
(A
) Definitions.

As
used in this clause -- All employment openings includes all positions except executive and top management, those positions that will be filled from within the contractor's organization, and positions lasting 3 days or less. This term includes full-time employment, temporary employment of more than 3 days' duration, and part -time employment.

Appropriate office of the State employment service system means the local office of the Federal-State national system of public employment offices with assigned res ponsibility to serve the area where the employment opening is to be filled, including the District of Columbia, Guam, the Commonwealth of Puerto Rico, and the Virgin Islands. Positions that will be filled from within the Contractor's organization means employment openings for which no consideration will be given to persons outside the Contractor's organization (including any affiliates, subsidiaries, and parent companies) and includes any openings that the Contractor proposes to fill from regularly established Arecall'' lists. The exception does not apply to a particular opening once an employer decides to consider applicants outside of its organization.

Vet
eran of the Vietnam era means a person who --

1. Se
rved on active duty for a period of more than 180 days, any part of which occurred between August 5, 1964, and May 7, 1975, and was discharged or released therefrom with other than a dishonorable discharge; or

2. Was
discharged or released from active duty for a service- connected disability if any part of such active duty was performed between August 5, 1964, and May 7, 1975.
(B
) General .

1. Re
garding any position for which the employee or applicant for employment is qualified, the Contractor shall not discriminate against the individual because the individual is a disabled veteran or a veteran of the Vietnam era. The Contractor agrees to take affirmative action to employ, advance in employment, and otherwise treat qualified disabled veterans and veterans of the Vietnam era without discrimination based upon their disability or veterans' status in all employment practices such as -- (i) Employment; (ii) Upgrading; (iii) Demotion or transfer; (iv) Recruitment; (v) Advertising; (vi) Layoff or termination; (vii) Rates of pay or other forms of compensation; and (viii) Selection for training, including M - 2
apprenticeship.

2. T
he Contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor (Secretary) issued under the Vietnam Era Veterans' Readjustment Assistance Act of 1972 (the Act), as amended. (
C) Listing openings.

1. The Contractor agrees to list all employment openings existing at contract award or occurring during contract performance, at an appropriate office of the State employment service system in the locality where the opening occurs. These openings include t hose occurring at any Contractor facility, including one not connected with performing this contract. An independent corporate affiliate is exempt from this requirement.

2. St
ate and local government agencies holding Federal contracts of $10,000 or more shall also list all employment openings with the appropriate office of the State employment service.

3. T
he listing of employment openings with the State employment service system is [[Page 138]] required at least concurrently with using any other recruitment source or effort and involves the obligations of placing a bona fide job order, including accepting referrals of veterans and nonveterans. This listing does not require hiring any particular job applicant or hiring from any particular group of job applicants and is not intended to relieve the Contractor from any requirements of Executive orders or regulations concerning nondiscrimination in employment.

4. W
henever the Contractor becomes contractually bound to the listing terms of this clause, it shall advise the State employment service system, in each State where it has establishments, of the name and location of each hiring location in the State.

As long as the Contractor is contractually bound to these terms and has so advised the State system, it need not advise the State system of subsequent contracts. The Contractor may advise the State system when it is no longer bound by this contract clause.
(
D) Applicability.

T
his clause does not apply to the listing of employment openings that occur and are filled outside the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, and the Virgin Islands.
(
E) Postings.

M - 3

1. The Contractor agrees to post employment notices stating (i) the Contractor's obligation under the law to take affirmative action to employ and advance in employment qualified disabled veterans and veterans of the Vietnam era, and (ii) the rights of applicants and employees.

2. T
hese notices shall be posted in conspicuous places that are available to employees and applicants for employment. They shall be in a form prescribed by the Deputy Assistant Secretary for Federal Contract Compliance Programs, Department of Labor (Deputy Assistant Secretary), and provided by or through the Contracting Officer.

3. T
he Contractor shall notify each labor union or representative of workers with which it has a collective bargaining agreement or other contract understanding, that the Contractor is bound by the terms of the Act, and is committed to take affirmative action to employ, and advance in employment, qualified disabled veterans and veterans of the Vietnam Era.
(
F) Noncompliance.

I
f the Contractor does not comply with the requirements of this clause, appropriate actions may be taken under the rules, regulations, and relevant orders of the Secretary issued pursuant to the Act.
(
G) Subcontracts .

T
he Contractor shall include the terms of this clause in every subcontract or purchase order of $10,000 or more unless exempted by rules, regulations, or orders of the Secretary.

The Contractor shall act as specified by the Deputy Assistant Secretary to en force the terms, including action for noncompliance.

A
lternate I (APR 1984). As prescribed in 22.1308(a)(2), add the following as a preamble to the clause: Notice: The following term(s) of this clause are waived for this contract: [List term(s)]. [48 FR 42478, Sept. 19, 1983, as amended at 55 FR 38518, Sept. 18, 1990; 63 FR 9059, Feb. 23, 1998]

Bakersfield City CouncilJanuary 8, 2025

Bakersfield City Council
January 8, 2025