2 PASSED, APPROVED AND ADOPTED this 15th day of April, 2026.
Mayor of the City of Corona, California
ATTEST:
City Clerk of the City of Corona, California
3 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 15th day of April, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 15th day of April, 2026.
City Clerk of the City of Corona, California
[SEAL]
RESOLUTION NO. 2026-018
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CORONA, CALIFORNIA, INITIATING PROCEEDINGS
TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL
YEAR 2027 FOR LIGHTING MAINTENANCE DISTRICT
NO. 2003-1 PURSUANT TO THE LANDSCAPING AND
LIGHTING ACT OF 1972, APPOINTING ENGINEER OF
RECORD, AND ORDERING PREPARATION OF AN
ENGINEER’S REPORT
WHEREAS, the City Council of the City of Corona (the “City Council”) has previously determined that the public interest, convenience, and necessity require the installation, construction, and maintenance of public street lighting, traffic signals, and appurtenant facilities within the Lighting Maintenance District No. 2003-1 (the “District”) as authorized by the Landscaping and Lighting Act of 1972, Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code (the “Act”); and
WHEREAS, the City Council has determined that the public interest, convenience, and necessity require the continued levy of assessments within the District for the purpose of installation, construction, and maintenance of public street lighting facilities and traffic signals as authorized by the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:
SECTION 1. The City Council hereby initiates proceedings pursuant to the Act to levy and collect annual assessments within the District for the maintenance, servicing, and operation of public street lighting facilities and traffic signals during Fiscal Year 2027.
SECTION 2. The maintenance to be performed consists of the furnishing of services and materials for the ongoing maintenance, operation, and servicing of public street lighting facilities and traffic signals, including:
(a) Repair, removal, or replacement of all, or any part of, the improvements thereon, including incidental pavement work, sidewalk, and curb and gutter; (b) Required electrical operation, repair, and replacement; and (c) Street lighting facility and traffic signal installation, servicing, and maintenance.
SECTION 3. The proceedings for the annual levy of assessments are to be conducted pursuant to the Act.
SECTION 4. Spicer Consulting Group, LLC, is hereby appointed as Engineer of Record for the purpose of preparing the written report provided for in Section 22567 of the Street and Highways Code, and is hereby directed to prepare and file such report with the City Clerk.
2 PASSED, APPROVED AND ADOPTED this 15th day of April, 2026.
Mayor of the City of Corona, California
ATTEST:
City Clerk of the City of Corona, California
3 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 15th day of April, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 15th day of April, 2026.
City Clerk of the City of Corona, California
[SEAL]
DATE: 04/15/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-115
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RESOLUTION INITIATING PROCEEDINGS TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL YEAR 2027 FOR LANDSCAPE MAINTENANCE DISTRICT NO. 84-2, ZONE 20, APPOINTING ENGINEER OF RECORD, AND ORDERING THE PREPARATION OF THE ENGINEER’S REPORT
EXECUTIVE SUMMARY:
This staff report asks the City Council to consider staff’s recommendation to appoint Spicer Consulting Group, LLC to prepare the Engineer's Report necessary to levy and collect special assessments for Fiscal Year (FY) 2027 for Landscape Maintenance District No. 84-2, Zone 20. Landscape Maintenance District No. 84-2 was established in 1983 in accordance with the provisions of the Landscaping and Lighting Act of 1972 to provide maintenance, servicing, and operation of public landscaping and appurtenant facilities within the district boundaries. The State of California Street and Highways Code Section 22500 require an annual review of the assessments levied by the special districts formed under the Landscape and Lighting Act of 1972.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2026-020, initiating proceedings to levy and collect assessments for Fiscal Year 2027 for Landscape Maintenance District No. 84-2, Zone 20 pursuant to the Landscaping and Lighting Act of 1972, appointing Engineer of Record, and ordering preparation of an Engineer’s Report.
BACKGROUND & HISTORY:
Landscape Maintenance District 84-2 (LMD 84-2) was established in 1983 in accordance with the provisions of the Landscape and Lighting Act of 1972 (the 1972 Act). The purpose of this district was to provide the maintenance, servicing, and operation of public landscaping and appurtenant facilities within the district boundaries.
LMD 84-2 consists of 12 benefit zones. Each zone imposes a different assessment levy based on the benefit areas associated with that zone. Exhibit 1 illustrates the area boundaries of LMD 84-2, Zone 20.
The State of California Street and Highways Code Section 22500 require an annual review of the assessments levied by the special districts formed under the 1972 Act. To levy and collect special assessments within the districts, an Engineer's Report must be prepared, which provides details on the improvements that are maintained and the estimated budgets for each district.
ANALYSIS:
Staff recommends that the City Council appoint Spicer Consulting Group, LLC to prepare the Engineer's Reports necessary to levy and collect special assessments for Fiscal Year 2027 for the above district. The consultant has extensive experience in assessment district financing and administration and was selected as the City’s special tax consulting service provider through a competitive process in January 2023.
The attached resolution initiates the proceedings pursuant to the 1972 Act to levy and collect annual assessments within the district for the maintenance, servicing, and operation of public landscaping and appurtenant facilities within the districts’ boundaries.
The resolution also appoints Spicer Consulting Group, LLC as Engineer of Record for the purpose of preparing the Engineer's Report for the district in Fiscal Year 2027.
FINANCIAL IMPACT:
The proposed annual fees of $5,898.25 for LMD 84-2, Zone 20 from Spicer Consulting Group, LLC are for the preparation of the Fiscal Year 2027 Engineer's Report, calculation of special assessments, submission of the annual levy, as well as other administrative tasks. The special assessment collected within the district will pay the cost and is included in the district's current budget.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely sets the special taxes to be levied and collected within the District for Fiscal Year 2027, and there is no possibility that adopting the resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: ERMA MONTANO, SENIOR FINANCIAL ANALYST
REVIEWED BY: BRUCE FOLTZ, FINANCE DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – LMD 84-2, Zone 20 Boundary Map
2. Exhibit 2 – Resolution No. 2026-020
ANTANA WY
FOOTHILL PY
FULLERTON AV
VALENCIA RD
UPPER DR
FOOTHILL PY
MAIN ST
Landscape Maintenance District No 84 - 2
ZONE 20 µ
RESOLUTION NO. 2026-020
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CORONA, CALIFORNIA, INITIATING PROCEEDINGS
TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL
YEAR 2027 FOR LANDSCAPE MAINTENANCE DISTRICT
NO. 84-2, ZONE 20 PURSUANT TO THE LANDSCAPING
AND LIGHTING ACT OF 1972, APPOINTING ENGINEER
OF RECORD, AND ORDERING PREPARATION OF AN
ENGINEER’S REPORT
WHEREAS, the City Council of the City of Corona (the “City Council”) has previously determined that the public interest, convenience, and necessity require the installation, construction, and maintenance of public landscaping and appurtenant facilities within the Landscape Maintenance District No. 84-2, Zone 20 (the “District”) as authorized by the Landscaping and Lighting Act of 1972, Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code (the “Act”); and
WHEREAS, the City Council has determined that the public interest, convenience, and necessity require the continued levy of assessments within the District for the purpose of installation, construction, operation, and maintenance of public landscaping and appurtenant facilities as authorized by the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:
SECTION 1. The City Council hereby initiates proceedings pursuant to the Act to levy and collect annual assessments within the District for the maintenance, servicing, and operation of public landscaping and appurtenant facilities during Fiscal Year 2027.
SECTION 2. The maintenance to be performed consists of the furnishing of services and materials for the ongoing maintenance, operation, and servicing of public landscaping and appurtenant facilities, including:
(a) Repair, removal, or replacement of all, or any part of, the improvements thereon, including incidental drainage facilities;
(b) Operation, maintenance, repair, and replacement of irrigation systems; and (c) Servicing and maintenance of plantings and landscaping.
SECTION 3. The proceedings for the annual levy of assessments are to be conducted pursuant to the Act.
2 SECTION 4. Spicer Consulting Group, LLC, is hereby appointed as Engineer of Record for the purpose of preparing the written report provided for in Section 22567 of the Street and Highways Code, and is hereby directed to prepare and file such report with the City Clerk.
PASSED, APPROVED AND ADOPTED this 15th day of April, 2026.
Mayor of the City of Corona, California
ATTEST:
City Clerk of the City of Corona, California
3 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 15th day of April, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 15th day of April, 2026.
City Clerk of the City of Corona, California
[SEAL]
DATE: 04/15/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-116
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RESOLUTION INITIATING PROCEEDINGS TO LEVY AND COLLECT
ASSSESSMENTS FOR FY 2027 FOR LANDSCAPE MAINTENANCE DISTRICT NO. 84- 2, ZONES 1, 2, 4, 6, 7, 10, 15, 17, 18, AND 19, APPOINTING ENGINEER OF RECORD, AND ORDERING THE PREPARATION OF ENGINEER’S REPORT
EXECUTIVE SUMMARY:
This staff report asks the City Council to consider staff’s recommendation to appoint Spicer Consulting Group, LLC to prepare the Engineer’s Report necessary to levy and collect special assessments for Fiscal Year (FY) 2027 for Landscape Maintenance District No. 84-2, Zones 1, 2, 4, 6, 7, 10, 15, 17, 18, and 19. Landscape Maintenance District No. 84-2 was established in 1983 in accordance with the provisions of the Landscaping and Lighting Act of 1972 to provide the maintenance, servicing, and operation of public landscaping and appurtenant facilities within the district boundaries. The State of California Street and Highways Code Section 22500 require an annual review of the assessments levied by the special districts formed under the 1972 Act.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2026-021, initiating proceedings to levy and collect assessments for FY 2027 for Landscape Maintenance District No. 84-2, Zones 1, 2, 4, 6, 7, 10, 15, 17, 18, and 19 pursuant to the Landscaping and Lighting Act of 1972, appointing Engineer of Record, and ordering preparation of an Engineer’s Report
BACKGROUND & HISTORY:
Landscape Maintenance District No. 84-2 (LMD 84-2) was established in 1983 in accordance with the provisions of the Landscaping and Lighting Act of 1972 (the 1972 Act). The district’s purpose was to provide the maintenance, servicing, and operation of public landscaping and appurtenant facilities within the district boundaries.
LMD 84-2 consists of 12 benefit zones. Each zone imposes a different assessment levy based on the benefit areas associated with that zone. Exhibit 1 illustrates the area boundaries of LMD 84-2, Zones 1, 2, 4, 6, 7, 10, 15, 17, 18, and 19.
The State of California Street and Highways Code Section 22500 require an annual review of the assessments levied by the special districts formed under the 1972 Act. An engineer’s report must be prepared to levy and collect special assessments within the districts. The Report provides details on the improvements maintained and the estimated budgets for each district.
ANALYSIS:
Staff recommend that the City Council appoint Spicer Consulting Group, LLC, to prepare the Engineer's Reports necessary to levy and collect special assessments for FY 2027 for the above district. The consultant has extensive experience in assessment district financing and administration and was selected as the City’s special tax consulting service provider through a competitive process in January 2023.
The attached resolution initiates the proceedings pursuant to the 1972 Act to levy and collect annual assessments within the district for the maintenance, servicing, and operation of public landscaping and appurtenant facilities within the district’s boundaries.
The resolution also appoints Spicer Consulting Group, LLC, as Engineer of Record to prepare the Engineer's Report for the district in FY 2027 FINANCIAL IMPACT:
The proposed annual fees of $17,789.86 for LMD 84-2, Zones 1, 2, 4, 6, 7, 10, 15, 17, 18, and 19 from Spicer Consulting Group, LLC, are for the preparation of the FY 2027 Engineer's Report, calculation of special assessments, submission of annual levy, as well as other administrative tasks. The special assessment collected within the district will pay the cost and is included in the district's current budget.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely sets the special taxes to be levied and collected within the District for Fiscal Year 2027, and there is no possibility that adopting the resolution will have a significant effect on the environment. Therefore, no environmental analysis is required
PREPARED BY: ERMA MONTANO, SENIOR FINANCIAL ANALYST
REVIEWED BY: BRUCE FOLTZ, FINANCE DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – LMD 84-2, Zones 1, 2, 4, 6, 7, 10, 15, 17, 18, and 19 Boundary Maps
2. Exhibit 2 – Resolution No. 2026-021
BROOKWOOD DR
SILVERFERN LN
MILLSTREAM LN
BAYFIELD DR
FALLBROOK DR
TRANQUIL LN
NOLAN WY
PRIMROSE LN
ACORN
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FOXTAIL DR
WILLOWCREE
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AUB
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SNAPDRAGON CT
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PALOS VERDE CI
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BLOSSOM HILL DR
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PRIMROSE LN
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N. LINCOLN AV
HOTSPRING NO
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ARSENAL WY
BLACKBURN DR
EVERTON DR
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Landscape Maintenance District No 84 - 2
ZONE 1 µ
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BROWNING CI
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CARTWHEEL CI
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TRENTON AV GREENVIEW AV
CORYDON ST
BOWDOIN ST
HEDGES DR
PANORAMIC DR
DOVERWOOD ST
HEDGES DR
GREENBRIAR DR
ROSEWOOD PL
NORFOLK ST
NEATHERLY CI
DOVER CI
BROOKDALE DR
SPRINGBROOK ST
MELROSE DR
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TUFTS CI
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AMHERST ST
CORYDON ST
STAMFORD CT
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WHITMAN WY
CASTLEROCK CI
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WESTBROOK ST
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CORYDON ST
HOMESTEAD RD
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WAGON TRAIN S
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BIG SPRING CT
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AMHERST ST
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CARRIAGE LN
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CAREFREE WY
CLOVERLEAF CI
CANDLELIGHT CI
CORYDON ST
FERRINGTON DR
KENSINGTON DR
LEXINGTON DR
OXFORD DR
CARRIAGE LN
BOWDOIN ST
KENSINGTON DR
LEXINGTON DR
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Y
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MYRTLE ST
GREENVIEW AV GREENVIEW AV
FAIRVIEW DR
ROCKCREST DR
MAJESTIC DR
MAJESTIC DR
ROCKCREST DR
PANORAMIC DR
MEADOWVIEW ST
DRIFTWOOD ST
WESTBROOK ST
COUNTRY CLUB LN
DALE CI
FAIRVIEW DR
ASHLAND CI
COUNTRY CLUB LN
DRIFTWOOD ST
ELMHURST ST
GRANADA AV
ROLLING HILLS DR
OAKDALE ST
HILLCREST AV
HOMESTEAD RD
W. RINCON ST
ELLINGTON DR
RIVER RD
RIVER RD
STAGECOACH RD
NORCREST ST
SHELLEY CI
HOMBRE RD
KINGSFORD DR
BENNINGTON CI
WHEATON DR
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ST
NOAH CI
CI CANYON
GREENPOINT DR
GREENPOINT DR
TEAKWOODPL
CATHERINE CI
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KINGSFORD DR
Landscape Maintenance District No 84 - 2
ZONE 2 µ
ORIOLE LN
MAGNOLIA AV
WREN AV
MONARCH DR
RIDGEWOOD DR
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PORTSMITH RD
WEMBLEY LN
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ELLIOT DR
VIA ALBA CT
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PORTOFINO CT
OLD TEMESCAL RD
RIDGEWOOD DR
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BAYWOOD DR
OLIA AV
KELLOGG AV
E. ONTARIO AV
BIRMINGHAM DR
YARDLEY CI
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E. ONTARIO AV
FULLERTON AV
BERKSHIRE CI
STRATFORD DR
DEVONSHIRE DR
KINGFISHER CT ROBIN CT
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KELLOGG AV
WREN AV
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NUTWOOD CI
TURNBERRY LN
LOCKWOOD LN
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STONEWOOD CI
SILVERWOOD CI JENNA CI
TALSHIRE LN
LOCKWOOD CI
MAYWOOD CI
OLD TEMESCAL RD
BIRMINGHAM DR
BARLEY LN
POPPYSEED LN
HIDDEN CREEK ST
BRIDGEWOOD ST
TABER ST
E. ONTARIO AV
GILBERT AV
AUTUMN LN
RIMPAU AV
BRIGHTON CI
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COACHMAN LN
VIA COMO CT
BEGLEY DR
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ABERDEEN DR
LOCHNESS CI
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COACHMAN CI
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BAYWOOD DR
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ZONE 4 µ
SAMPSON AV
MAGNOLIA AV
BUCHANAN ST
RIVERSIDE FREEWAY 91
PROMENADE AV
MCKINLEY ST
Landscape Maintenance District No 84 - 2
ZONE 6 µ
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ZONE 7 µ
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ZONE 10 µ
·|}þ91
Railroad St
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ZONE 15
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DICKINSON LN
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HOMESTEAD RD
CHEYENNE RD
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BIG SPRING CT
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W. RINCON ST
STAGECOACH RD
SHELLEY CI
HOMBRE RD
Landscape Maintenance District No 84 - 2
ZONE 17 µ
River Rd
N Lincoln Av
Harrington St
W Parkridge Av
W Rincon St
Forester Dr
Blossom Hill Dr
Bayfield Dr
Fallbrook Dr
N Cota St
Clover Ln Primrose Ln
Lakeview Dr
Penrose Dr
Foxtail Dr
Brookwood Dr
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Palos Verde Dr
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Acorn Ln
Kingsdale Dr
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Placid Dr
Willowcreek Dr
Serene Dr
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Pinecone Dr
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Three Bar Ln
Blossomcreek Ln
Kalus St
Havasu St
Silverfern Ln
Bramble Ln
Auburndale St
Creekside Ln
Candy Dr
Nettle Ct
Millstream Ln
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Heather Ci
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Sunflower Ct
N Vicentia Av
Nolan Wy
Piru Ct
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Bolton St
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GARRETSON AV
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ZONE 19 µ
§¨¦15
RESOLUTION NO. 2026-021
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CORONA, CALIFORNIA, INITIATING PROCEEDINGS
TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL
YEAR 2027 FOR LANDSCAPE MAINTENANCE DISTRICT
NO. 84-2, ZONES 1, 2, 4, 6, 7, 10, 15, 17, 18, and 19 PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972,
APPOINTING ENGINEER OF RECORD, AND ORDERING
PREPARATION OF AN ENGINEER’S REPORT
WHEREAS, the City Council of the City of Corona (the “City Council”) has previously determined that the public interest, convenience, and necessity require the installation, construction, and maintenance of public landscaping and appurtenant facilities within the Landscape Maintenance District No. 84-2, Zones 1, 2, 4, 6, 7, 10, 15, 17, 18, and 19 (the “District”) as authorized by the Landscaping and Lighting Act of 1972, Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code (the “Act”); and WHEREAS, the City Council has determined that the public interest, convenience, and necessity require the continued levy of assessments within the District for the purpose of installation, construction, operation, and maintenance of public landscaping and appurtenant facilities as authorized by the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:
SECTION 1. The City Council hereby initiates proceedings pursuant to the Act to levy and collect annual assessments within the District for the maintenance, servicing, and operation of public landscaping and appurtenant facilities during Fiscal Year 2027.
SECTION 2. The maintenance to be performed consists of the furnishing of services and materials for the ongoing maintenance, operation, and servicing of public landscaping and appurtenant facilities, including:
(a) Repair, removal, or replacement of all, or any part of, the improvements thereon, including incidental drainage facilities;
(b) Operation, maintenance, repair, and replacement of irrigation systems; and (c) Servicing and maintenance of plantings and landscaping.
SECTION 3. The proceedings for the annual levy of assessments are to be conducted pursuant to the Act.
2 SECTION 4. Spicer Consulting Group, LLC, is hereby appointed as Engineer of Record for the purpose of preparing the written report provided for in Section 22567 of the Street and Highways Code, and is hereby directed to prepare and file such report with the City Clerk.
PASSED, APPROVED AND ADOPTED this 15th day of April, 2026.
Mayor of the City of Corona, California
ATTEST:
City Clerk of the City of Corona, California
3 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 15th day of April, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 15th day of April, 2026.
City Clerk of the City of Corona, California
[SEAL]
DATE: 04/15/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-118
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RESOLUTION INITIATING PROCEEDINGS TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL YEAR 2027 FOR LANDSCAPE MAINTENANCE DISTRICT NO. 84-2, ZONE 14, APPOINTING ENGINEER OF RECORD, AND ORDERING THE PREPARATION OF THE ENGINEER’S REPORT
EXECUTIVE SUMMARY:
This staff report asks the City Council to consider staff’s recommendation to appoint Spicer Consulting Group, LLC to prepare the Engineer's Report necessary to levy and collect special assessments for Fiscal Year (FY) 2027 for Landscape Maintenance District No. 84-2, Zone 14. Landscape Maintenance District No. 84-2 was established in 1983 in accordance with the provisions of the Landscaping and Lighting Act of 1972 to provide maintenance, servicing, and operation of public landscaping and appurtenant facilities within the district boundaries. The State of California Street and Highways Code Section 22500 requires an annual review of the assessments levied by the special districts formed under the Landscape and Lighting Act of 1972.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2026-019, initiating proceedings to levy and collect assessments for FY 2027 for Landscape Maintenance District No. 84-2, Zone 14 pursuant to the Landscaping and Lighting Act of 1972, appointing Engineer of Record, and ordering preparation of an Engineer’s Report
BACKGROUND & HISTORY:
Landscape Maintenance District No. 84-2 (LMD 84-2) was established in 1983 in accordance with the provisions of the Landscape and Lighting Act of 1972 (the 1972 Act).
The purpose of this district was to provide the maintenance, servicing, and operation of public landscaping and appurtenant facilities within the district boundaries.
LMD 84-2 consists of 12 benefit zones. Each zone imposes a different assessment levy based on the benefit areas associated with that zone. Exhibit 1 illustrates the area boundaries of LMD 84-2, Zone 14.
The State of California Street and Highways Code Section 22500 require an annual review of the assessments levied by the special districts formed under the 1972 Act. An engineer's report must be prepared to levy and collect special assessments within the districts. The Report provides details on the improvements maintained and the estimated budgets for each district.
ANALYSIS:
Staff recommend that the City Council appoint Spicer Consulting Group, LLC to prepare the Engineer's Reports necessary to levy and collect special assessments for FY 2027 for the above district. The consultant has extensive experience in assessment district financing and administration and was selected as the City’s special tax consulting service provider through a competitive process in January 2023.
The attached resolution initiates proceedings pursuant to the 1972 Act to levy and collect annual assessments within the district for the maintenance, servicing, and operation of public landscaping and appurtenant facilities within the district’s boundaries. The resolution also appoints Spicer Consulting Group, LLC, as Engineer of Record to prepare the Engineer's Report for the district in FY 2027.
FINANCIAL IMPACT:
The proposed annual fees of $3,245.35 for LMD 84-2, Zone 14 from Spicer Consulting Group, LLC are for the preparation of the Fiscal Year 2027 Engineer's Report, calculation of special assessments, submission of the annual levy, as well as other administrative tasks. The special assessment collected within the district will pay the cost and is included in the district's current budget.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely sets the special taxes to be levied and collected within the District for Fiscal Year 2027, and there is no possibility that adopting the
resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: ERMA MONTANO, SENIOR FINANCIAL ANALYST
REVIEWED BY: BRUCE FOLTZ, FINANCE DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – LMD 84-2, Zone 14 Boundary Map
2. Exhibit 2 – Resolution No. 2026-019
BLACKPINE DR
ATWOOD DR
GILMORE DR
NEWHALL DR
GISE CI
VIA BLAIRO
VIA BLAIRO CI
MANDEVILLA WY
COLLETT AV
DEL NORTE DR
V LI LA MO NTES CI
VERDUGO DR
MAMMOTH LN
COLLET T AV
PROMENADE AV
JUNE DR
SISKIYOU LN
RANCH VISTA RD
PROMENADE AV
K ENNEDY D R
HA N C O C K CI
KEN NE D Y DR
DYLAN DR
N. PARKRIDGE AV
N. MCKINLEY ST
ALLEGRE DR
E. PARKRIDGE AV
FIRST ST
VIA BLAIRO
CORONA AV
N. PARKRIDGE AV
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MARIPOSA DR
FIRST ST
MARIPOSA DR
MONDALE ST
PROMENADE AV
COSTA BRAVA CI
NORCO HILLS RD
CI
HIDDEN VALLEY PK
HIDDEN VALLEY PK
ROCK SPRINGS AV
BIG PINE LN
VALLEYWOOD CI
N. JOY ST
HIDDEN VALLEY PK
CORONA AV
TEMESCAL AV
HILLSIDE AV
EL PASO D R
HA RNESS LN
BOD IE PL
GUN SMOKE RD
ROCK SPR NI GS AV
THOROUGHBRED L N SANTA F E
CANYON VIEW
ABILENE LP
SEDONA LN
CORONA AV
TUCSON AV
DODGE CITY
EL PASO DR
EL PASO D R
D R Y GULCH
LONGHORN WY
CARSON LN
DODGE WY
SILVER SPRINGS WY
RED ROCK WY
CAL CI O CT
CELERY LN
DILL
CORIANDER WY
PARSLEY LN
ROSEMARY WY
FENN EL D R THYM E DR
SAFFRON
AZTEC CI
PARKV EI W DR
CARAWAY GINGER CI
CURRY CI LA SALLE CI
SALDINA
CHANTEL DR
LA SALLE CI
C LEAR SPRINGS DR
STEVEN DR
MT HUMPHRIES ST
RICHEY ST
LAS MERCEDES LN
P RESIDIO LN
TUNDAR
VONITA
TERRA DR
ROCA
ROCK VISTA DR
LA VENTANA LA C U MBRE ST LA CUMBRE ST
LA C I M A RD
WILS ON
HAMILTON DR
MONDALE ST
GRIFFIN WY
LASSEN DR
SAINT HELENA DR TEHACHAPI DR
SADDLEBACK DR
RUSSELL DR
SIS KIYOU
BLAZIN G
ALPINE MIST ST
WELLESLEY
COOLIDGE ST CLINTON CI
WHEELER
AVONDALE DR
N. SHENANDOA H R D
STONEHAVEN D R
COLLETT AV
HAYES
ROOSEVELT ST
HARDING RD KNOX CI
YOSEMITE CI
YELLOWSTONE CI
ROOSEVELT ST
ARTHUR CI
COLFAX CI
PROMENADE AV
CRESTA RD
WYNOLA CT
WYATT
CRESTA R D
CABRILLO
GLACIER
VENTURA AV
WOODWAY
RIPCHAK RD
CRESTA RD
CRESTA RD
TERMINO AV
MARIPOSA DR
DEL NORTE DR
BALBOA
HERMOSA DR
WRIGHTWOO D
W O ODVALE
CASANDRA LN LA MARILLO CI
MADERA CI
NORCO HILLS RD
MAGIA CI
BRAVO
N. TEM ESCAL ST
MONTEZUMA DR MONTAGUE DR
VIA RYAN
NAVARR
V
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ILLAGE LOOP D R OCHEE CI
BONANZA
VALDOSTA
PESCADERO
LA TREMOLINA
LA CADENA LN LA DOCENA LN
T ESOR O WY
MANDEVILLA WY
TA MPICO
ROYAL
RUSHMOR
WINSLOW
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PALOMAR DR
PIKE DR
LAGUNA DR
MESA DR LAGUNA DR
SA N JACIN TO
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MEYER CI
MIR ASOLLN
PALA MESA
MIRA VALLE ST
PASEO AZUL WY
PALERMO LN
PALO CEDRO RD
GOLDENEAGLE DR
FALCONCREST ST
HAWKCREST AV TOUCAN DR
COPPERS AV
HERON DR
EAGLESNEST DR
SWAN
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FLAMINGO DR
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OSO DR
ALLEN DR
JOHN DR
LUCY LN
SAMANTHA CI
BRIANNA WY
RUTH CI
ANSELMO DR
CORONA LIFE DR
G ARLAND WY
YASEMENT ST
WYC LIFFE ST
WOLFSON ST
BAGHDADY ST
MORITA DR
R INGD AHL CIBARBR E LN
Landscape Maintenance District No 84 - 2
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RESOLUTION NO. 2026-019
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CORONA, CALIFORNIA, INITIATING PROCEEDINGS
TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL
YEAR 2027 FOR LANDSCAPE MAINTENANCE DISTRICT
NO. 84-2, ZONE 14 PURSUANT TO THE LANDSCAPING
AND LIGHTING ACT OF 1972, APPOINTING ENGINEER
OF RECORD, AND ORDERING PREPARATION OF AN
ENGINEER’S REPORT
WHEREAS, the City Council of the City of Corona (the “City Council”) has previously determined that the public interest, convenience, and necessity require the installation, construction, and maintenance of public landscaping and appurtenant facilities within the Landscape Maintenance District No. 84-2, Zone 14 (the “District”) as authorized by the Landscaping and Lighting Act of 1972, Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code (the “Act”); and
WHEREAS, the City Council has determined that the public interest, convenience, and necessity require the continued levy of assessments within the District for the purpose of installation, construction, operation, and maintenance of public landscaping and appurtenant facilities as authorized by the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:
SECTION 1. The City Council hereby initiates proceedings pursuant to the Act to levy and collect annual assessments within the District for the maintenance, servicing, and operation of public landscaping and appurtenant facilities during Fiscal Year 2027.
SECTION 2. The maintenance to be performed consists of the furnishing of services and materials for the ongoing maintenance, operation, and servicing of public landscaping and appurtenant facilities, including:
(a) Repair, removal, or replacement of all, or any part of, the improvements thereon, including incidental drainage facilities;
(b) Operation, maintenance, repair, and replacement of irrigation systems; and (c) Servicing and maintenance of plantings and landscaping.
SECTION 3. The proceedings for the annual levy of assessments are to be conducted pursuant to the Act.
2 SECTION 4. Spicer Consulting Group, LLC, is hereby appointed as Engineer of Record for the purpose of preparing the written report provided for in Section 22567 of the Street and Highways Code, and is hereby directed to prepare and file such report with the City Clerk.
PASSED, APPROVED AND ADOPTED this 15th day of April, 2026.
Vice Mayor of the City of Corona, California
ATTEST:
City Clerk of the City of Corona, California
3 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 15th day of April, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 15th day of April, 2026.
City Clerk of the City of Corona, California
[SEAL]
DATE: 04/15/2026
TO: Honorable Chair and Authority Board
Honorable Mayor and City Council Members
FROM: Housing and Homeless Solutions, City Manager’s Office 2026-104
REQUEST FOR CITY COUNCIL AND
CORONA HOUSING AUTHORITY ACTION
SUBJECT:
CORONA DEL REY AMENDED AGREEMENTS
EXECUTIVE SUMMARY:
This staff report asks the Corona Housing Authority and the City Council to approve the Amended and Restated Promissory Note, Second Amendment to Operation and Maintenance Agreement and Assignment of Agreement between National Community Renaissance of California, NCRC CDR LLC and the City of Corona Housing Authority as well as approval of a Subordination Agreement between JPMorgan Chase Bank, N.A. and the City of Corona Housing Authority for the Corona Del Rey affordable housing units.
RECOMMENDED ACTION:
That the City Council:
a. Approve the Amended and Restated Promissory Note between the City of Corona Housing Authority and National Community Renaissance of California, NCRC CDR LLC.
b. Approve the Second Amendment to Operation and Maintenance Agreement between the City of Corona Housing Authority and National Community
Renaissance of California, NCRC CDR LLC and authorize the City Manager or his designee to execute the agreement.
c. Approve the Assignment and Assumption of Agreement between the City of Corona Housing Authority and National Community Renaissance of California, NCRC CDR LLC and authorize the City Manager or his designee to execute the agreement.
d. Approve the Subordination Agreement between the City of Corona Housing Authority and JPMorgan Chase Bank, N.A. and authorize the City Manager or his designee to execute the agreement.
That the Corona Housing Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.
BACKGROUND & HISTORY:
Overview of City’s $1.2 Million Construction Loan
In 1996, the City’s former Redevelopment Agency entered into an affordable housing development agreement with Southern California Housing Development Corporation, now known as National Community Renaissance of California (NCRC), for the acquisition and rehabilitation of Corona Del Rey. The term of affordability under the affordable housing agreement is in perpetuity.
Further, on February 4, 1998, the City’s Redevelopment Agency approved a construction loan in the amount of $1.2 million to provide gap financing to complete necessary rehabilitation repairs on Corona Del Rey. Interest on the construction loan was 15% simple interest. A total of $347,936 was disbursed from the $1.2 million construction loan to NCRC. Interest accrued to date brings the current loan balance to $1.7 million. In 2011 at the dissolution of Redevelopment, the Corona Housing Authority became the Successor Agency to the City’s former Redevelopment Agency.
Catalyst for State Pass-Through Grant Agreement for Substantial Rehabilitation Corona Del Rey was built in the mid-1960s. Due to the age of these apartments, ongoing
maintenance and repair needs have impacted the cashflow of this project. For the past several years, NCRC has been assessing short-term and long-term project needs. In January 2020, NCRC met with City staff to discuss rehabilitation and financing plans for their existing two housing developments and was seeking to partner with the City on its rehabilitation effort. Discussions between the City and NCRC included renegotiating loan
terms on both Corona Del Rey and Corona De Oro to support the long-term viability of these older affordable housing projects.
Due to proactive discussions between NCRC, Senator Cervantes (then Assemblywoman
Cervantes), and the City, on October 14, 2021, State HCD issued an award letter stating
the City of Corona was allocated $8,000,000 to renovate NCRC’s two Corona Properties:
Corona Del Rey (160 units) and Corona De Oro (72 units). On December 15, 2021, City Council adopted Resolution No. 2021-130 accepting the State funding and authorizing the City Manager to execute the pass-through grant agreement.
A total of $5,500,000 of the $8,000,000 was used to substantially rehabilitate Corona Del
Rey. The remaining $2,500,000 in State funds was used to substantially rehabilitate Corona De Oro. The $5,500,000 in State funds was combined with approximately $8.6 million in other public and private funds secured by NCRC to complete the necessary repairs on Corona Del Rey. The rehabilitation project was successfully completed for both
sites and the City partnered with NCRC, the County, and the State to celebrate the Grand
Re-Opening on June 18, 2025.
STAFF ANALYSIS
Development of Long-Term Plan Financing Plan
To ensure the ongoing success and viability of Corona Del Rey, the long-term plan was for NCRC to secure tax credit financing to pay off other construction loans and bridge loans as well as to renegotiate the City’s loan terms. These discussions have been ongoing with the City since 2020. Unfortunately, due to extreme demands for tax credits and rules favoring the production of new units over rehabilitation, NCRC was unsuccessful in securing tax credits but remained vigilant in seeking alternative funding opportunities.
In keeping with this plan, NCRC has identified alternate long-term financing and is in the process of finalizing approval for a new permanent loan from JPMorgan Chase Bank, N.A. The new permanent loan of approximately $12 million is a Freddie Mac Agency Loan originated and administered by JPMorgan Chase Bank, N.A. The proceeds of the new permanent loan will be used to pay off existing NCRC construction and bridge loans
and a small County HOME funded loan, as well as cover closing legal, title and financing
costs associated with the new loan.
Freddie Mac also requires that the Corona Housing Authority loan documents, except for
the existing Regulatory Agreement, be subordinated to the new permanent loan deed of trust, which is common in the affordable housing industry. While the new loan proceeds will pay off a small County HOME funded loan of $42,483 due in 2028, the County’s existing $5 million ARPA loan will remain on the property and be junior to the City’s $1.2 million loan.
Summary of Major Deal Points for Amended Loan Agreements The successful conversion to new permanent financing is consistent with discussions with
the City over the past several years and will result in an important milestone achievement
in the 30-year partnership between the City and NCRC to preserve Corona Del Rey in perpetuity as a reliable source of quality affordable housing for low and moderate incomes families.
The following is an overview of the major deal points associated with the amendments to the City’s agreements and other related documents that need to be approved:
Amended and Restated $1,200,000 Promissory Note
Extend maturity date from January 31, 2000, to December 31, 2078, to align with the maturity date for the Riverside County ARPA loan and establish a maturity date after the maturity of the new permanent loan from JPMorgan Chase Bank, N.A. Revise the interest rate from fifteen percent (15%) to three percent (3%) simple interest per annum to align with affordable housing industry standards Second Amendment to Operation and Maintenance Agreement To comply with Freddie Mac requirements and align closer to Affordable Housing Industry Standards, amendments to the Operation and Maintenance Agreement are required. The following provides an overview of the existing reserve accounts and proposed reserve account changes:
Existing Operations & Maintenance Agreement Accounts and Balances Capital Replacement Reserve Account $ 78,992
Operating Reserve Account $652,418
Debt Service Account $178,475
Total $909,886
Proposed Amendments to Operations & Maintenance Reserve Accounts Create Supplemental Replacement Reserve Account
Deposit approximately $830,894 upon funding of Chase Loan by transferring total balance of existing operating reserve and debt service account balances
Supplemental Replacement Reserve Account replaces the Operating Reserve and Debt Service Accounts
NCRC draw approval rights to Supplemental Replacement Reserve held by City exclusively
$820,000 required reserve threshold
NCRC required to submit annual operating budget for City approval
Withdraws for unbudgeted expenses exceeding $10,000 require City approval
Capital Replacement Reserve Account
$78,992 balance to remain
Annual required deposit of $48,000 (equal to $300 per unit) NCRC draw approval rights held by Chase Bank and City NCRC required to submit annual operating budget for City approval Withdraws for unbudgeted expenses exceeding $10,000 require approval Allocation of Net Operating Income (aka Residual Receipts) Net Operating Income (NOI) defined as all income from the project remaining “after” payment of senior debt, required capital reserve account deposits, and necessary operating expenses of project such as:
Utility fees and costs not paid by tenants
Insurance
Ad Valorem taxes and assessment payments
Cost of social programs provided to residents
Compliance, monitoring, reporting
NOI Distribution
First: Up to 50% of NOI to reach account threshold shall be deposited into the Supplemental Replacement Reserve Account
Second: 50% of remaining NOI as payment to City for City Loan Third: 25% of remaining NOI to County for County Loan Fourth: 25% to NCRC to repay any owner loans for the project and/or other project related administrative expenses
Assignment of Agreement
Assign City loan documents from NCRC to NCRC CDR LLC, a newly formed Single Asset Entity (SAE) which will be a Borrower entity that does not own any real or personal property other than Corona Del Rey real and personal property related to its ownership and maintenance. This new entity will be a Single Member LLC Entity with National Community Renaissance of California as the sole member and is required by Chase Bank and Freddie Mac. SAEs are common in the affordable housing industry
Subordination Agreement with JPMorgan Chase Bank
Subordination of City loan to the new JPMorgan Chase Bank Loan which is a requirement of Chase Bank and Freddie Mac
City regulatory agreement for affordability in perpetuity will remain senior to the new JPMorgan loan
County ARPA loan will remain junior to the City loan
Planning and Housing Commission Approval
Per City policy, Corona Housing Authority projects and related loan agreements must first be presented to the Planning and Housing Commission for approval consideration. On April 6, 2026, the Planning and Housing Commission recommended that the City Council and the Corona Housing Authority approve the Corona Del Rey amended and related agreements as outlined in this agenda staff report.
FINANCIAL IMPACT:
The City’s $1.2 million loan, issued in 1998 at 15 percent simple interest, has accumulated approximately $1,383,625 in interest to date, with projections estimating a total of $1,405,371 in interest earned by the end of the fiscal year. This loan is recorded in the Corona Housing Authority Fund 291.
Extending the loan’s maturity date to December 2078 and adjusting the interest rate to 3 percent simple interest would increase total projected interest earnings to approximately $1,941,889 over the life of the loan. Under these terms, and assuming no residual receipts are applied toward principal reduction, the loan’s payoff balance in 2078 would be about $2,289,925.
If approved, the revised 3 percent interest rate would take effect on March 17, 2026, or on the date the Chase loan is funded and provided to NCRC, whichever occurs later.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action relates to amendment of loan terms and related agreements for an affordable housing project. There is no possibility approval of these agreements will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: KAREN ROPER, HOUSING & HOMELESS SOLUTIONS MANAGER REVIEWED BY: JACOB ELLIS, CITY MANAGER
ATTACHMENTS:
1. Exhibit 1 – Amended and Restated Promissory Note
2. Exhibit 2 – Redline Amended and Restated Promissory Note
3. Exhibit 3 – Second Amendment to Operation and Maintenance Agreement
4. Exhibit 4 – Redline Second Amendment to Operation and Maintenance Agreement
5. Exhibit 5 – Assignment of Agreement
6. Exhibit 6 – Subordination Agreement with JPMorgan Chase Bank
7. Exhibit 7 – Location Map
JAMIER\01200.20005\10320958.8
AMENDED AND RESTATED PROMISSORY NOTE
SECURED BY CONSTRUCTION DEED OF TRUST
$1,200,000 ___________, 2026
Corona, California
FOR VALUE RECEIVED, the undersigned, NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA a California nonprofit public benefit corporation (previously known as THE SOUTHERN CALIFORNIA HOUSING DEVELOPMENT CORPORATION), (“Maker”), jointly and severally promise to pay to the CITY OF CORONA
HOUSING AUTHORITY, AS SUCCESSOR-IN-INTEREST TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF CORONA, a public body, corporate and politic (“Holder”), or order, at 250 East Rincon, Suite 107, Corona, CA 91719, Attn: Director of Housing and Development (or at such other place as Holder may specify from time to time in writing), the principal sum of One Million Two Hundred Thousand Dollars ($1,200,000), or the aggregate unpaid principal amount of all Advances made by Holder to the undersigned from time to time and remaining outstanding on the Maturity Date, whichever is less, together with interest on any principal amounts remaining unpaid from time to time from August 1, 1999 (“Interest Date”) until payment in full, to be calculated as set forth below.
1. All capitalized terms used in this Note, unless otherwise defined, will have the respective meanings specified in the First Amendment to the Affordable Housing Agreement dated as of the same date as this Note entered into between Maker and Holder (“Loan Agreement”). In addition, as used in this Note, the following terms will have the following meanings:
“Advance” will mean a disbursement of Loan Proceeds by Holder. “Business Day” means any day other than Saturday, Sunday, or public holiday or the equivalent for banks generally under the laws of California. Whenever any payment to be made under this Note is stated to be due on a day other than a Business Day, that payment may be made on the next succeeding Business Day, and the extension of time will in that case be included in the computation of payment of interest. However, if the extension would cause the payment to be made in a new calendar month, that payment will be made on the next preceding Business Day, and interest will be payable for the shorter period.
“Maturity Date” means December 31, 2078, or any earlier date on which the indebtedness evidenced by this Note is due pursuant to the terms of any Loan Document, as defined herein. “Net Operating Income” has the meaning set forth in the Operation and Maintenance Agreement
“Operation and Maintenance Agreement” means that certain Corona West Apartments Operation and Maintenance Agreement by and between Maker and Holder, or their respective predecessors in interest, dated June 1, 1996, and recorded in the Official Records on October 13, 1996, as Instrument No. 218507, as amended by that certain unrecorded First Amendment to
JAMIER\01200.20005\10320958.8
Operation and Maintenance Agreement Corona West Apartments dated as of January 31, 2011 and that certain unrecorded Second Amendment to Operation and Maintenance Agreement Corona West Apartments dated substantially concurrently herewith. “Project” means that certain apartment complex commonly known as the “Corona West Del Rey Apartments” (formerly known as “Corona West Apartments”), located at 1148 D Street (leasing business address); 204 -340 Isabella Way (formerly 204-340 Garfield Avenue) and 204- 345 Magdalena Cricle (formerly 204-345 Grant Avenue), Corona, California 92882, which is an apartment building containing 160 affordable housing dwelling units. “Chase Loan” has the meaning set forth in Section I. of that certain unrecorded Second Amendment to Operation and Maintenance Agreement (Corona Del Rey) dated substantially concurrently herewith.
2. From the Interest Date to the later of March 17, 2026 or the date the Chase Loan is funded and provided to the Borrower (the “New Interest Date”), all Advances will bear interest on the unpaid principal amount until repaid at a rate equal to 15 percent (15%) per annum (“Interest Rate”). Commencing on the New Interest Date, all Advances will bear interest on the unpaid principal amount until repaid at a rate equal to three percent (3%) simple interest per annum. Maker will make monthly payments of interest commencing on September 1, 1999. The entire balance of principal and accrued interest will be due on the Maturity Date. All payments will be applied first to payment of any costs, fees, late charges, or other charges due under this Note or under any other Loan Document, then to accrued interest, and then to the principal balance.
Interest will be computed on the basis of a 360-day year and the actual number of days elapsed.
All payments due hereunder are payable in lawful money of the United States of America in same day funds. The parties agree that the Interest Rate represents reasonable sums considering all of the circumstances existing on the date of this Note, including, without implied limitation, that Holder is not charging interest on the Advances until August 1, 1999, and represents a fair and reasonable estimate of the costs and damages that Holder will incur by foregoing interest until August 1, 1999. The parties further agree that proof of actual costs and damages would be costly or inconvenient.
3. Commencing on the New Interest Date and continuing each year thereafter until the Maturity Date, a portion of the Net Operating Income from the Project shall be paid to Holder and applied to pay down the amounts due and owing under this Note. The payments described below shall be paid to Holder no later than July 1 each year. Maker shall make repayments of the outstanding principal and accrued interest, if any, equal to fifty percent (50%) of the Net Operating Income from the Project as repayment of amounts due and owing under this Note. Such annual payments shall be accompanied by the Maker’s report of the Net Operating Income and any other documentation reasonably requested by Holder to substantiate the Maker’s determination of the Net Operating Income. All payments made hereunder shall be credited first to any accrued but unpaid interest (if applicable), then to current interest due and owing and lastly to principal.
Interest not paid current each year shall be added to and thereafter be considered additional principal due hereunder. Notwithstanding the foregoing, the entire outstanding balance of principal and any interest owing under this Note shall be due and payable on the Maturity Date.
JAMIER\01200.20005\10320958.8
4. This Note is secured by, among other things, the Construction Deed of Trust with Assignment of Rents and Security for a Portion of Net Income of the same date as this Note, executed by Maker, as trustor, in favor of Holder, as beneficiary (“Deed of Trust”), and encumbering the real property described in the Deed of Trust (“Property”). The holder of this Note will be entitled to the benefits of the security provided by the Deed of Trust and will have the right to enforce the covenants and agreements of Maker contained in the Deed of Trust. The Note and Deed of Trust are collectively and individually referred to as “Loan Document.”
5. From and after the Maturity Date, or an earlier date on which all sums owing under this Note become due by acceleration or otherwise, all sums owing under this Note also will bear interest until paid in full at a rate equal to 15 percent (15%) per annum (“Default Rate”). All payments made above shall be applied first to accrued interest, if any, and thereafter to reduction of principal. The parties agree that the Default Rate on overdue payments represents reasonable sums considering all of the circumstances existing on the date of this Note, including, without limitation, that Holder is not charging interest on principal which is timely paid, and represents a fair and reasonable estimate of the costs and damages that Holder will incur by reason of the late payment. The parties further agree that proof of actual damages would be costly or inconvenient.
Acceptance of any charge shall not constitute a waiver of the default with respect to the overdue amount, and shall not prevent Holder from exercising any of the other rights and remedies available to Holder. The foregoing shall not be construed as obligating the Holder to accept any payment after its due date.
Maker is composed of sophisticated business people and hereby waive, to the maximum extent permitted by law, the provisions of California Civil Code Section 2954.5 regarding the notices prerequisite to the imposition of delinquent payment charges.
6. In the event ownership of the Property, or any part thereof, becomes vested in a person or persons other than Maker, without the prior written approval of Holder, Holder may, without notice to Maker, waive such default and deal with such successor or successors in interest in the Property in the same manner as with Maker, without in any way releasing, discharging or otherwise affecting the liability of Maker, the endorser, guarantors, sureties, accommodation parties hereof and all other persons liable or to become liable for all or any part of this indebtedness. No sale or other Transfer, as defined herein, of the Property, no forbearance on the part of Holder, no extension of the time for the payment of the indebtedness or any change in the terms of this Note consented to by Holder shall in any way whatsoever operate to release, discharge, modify, change or affect the original liability of Maker and all such persons liable or to become liable for all or any part of this indebtedness, either in whole or in part. Any deed conveying the Property, or any part thereof, shall provide that the grantee thereunder assumes all of the grantor’s obligations under any Loan Document.
7. Upon the occurrence of any of the following, an Event of Default shall be deemed to have occurred and the Holder may, at Holder’s option, declare the unpaid balance of this Note, including interest, if any, thereon, to be immediately due and payable, and the same shall forthwith become due and payable:
7.1 Maker shall fail to make any payment under this Note when due; or
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7.2 There shall occur an “Event of Default” under and as defined in any Loan Document; or
7.3 Maker shall (i) become insolvent or unable to pay Maker’s debts generally as they mature, (ii) suspend business, (iii) make a general assignment for the benefit of creditors, (iv) admit in writing Maker’s inability to pay Maker’s debts generally as they mature, (v) file or have filed against it a petition in bankruptcy or a petition or answer seeking a reorganization, arrangement with creditors or other similar relief under the Federal bankruptcy laws or under any other applicable law of the United States of America or any state thereof, or (vi) consent to the appointment of a trustee or receiver for it or for a substantial part of Maker’s property; or
7.4 Any order, judgement or decree shall be entered appointing, without Maker’s consent, a trustee or receiver for it or for a substantial part of Maker’s property; or
7.5 A judgment against Maker for the payment of money totaling in excess of $10,000 shall be outstanding for a period of sixty (60) days without a stay of execution thereof, or a bond or undertaking having been posted pursuant to Code of Civil Procedure §995.010, et seq.; or
7.6 The holder of any senior or junior encumbrance on the real and/or personal property collateral encumbered by the Deed of Trust shall institute foreclosure or other proceedings for the enforcement of its remedies thereunder; or
7.7 Maker shall sell, contract to sell, give an option to purchase, transfer, convey, encumber, or alienate (collectively, “Transfer”) the Property, as defined herein, or any interest in the Property, or permits or suffers Maker’s title, or any interest in the Property, to be divested, sold, transferred or otherwise conveyed, whether voluntarily or involuntarily, or if title to the Property or any interest in the Property be subject to any lien or charge, voluntary or involuntarily, contractual or statutory, without the prior written consent of Holder being first had and obtained. This provision shall apply to each and every sale, transfer or conveyance, regardless of whether or not Holder has consented to, or waived, Holder’s right hereunder, whether by action or nonaction, in connection with any previous sale, transfer, or conveyance, whether one or more.
Notwithstanding the above, in the event of an actual or deemed entry of an order for relief with respect to Maker under the Federal Bankruptcy Code, this Note and all interest and other amounts due hereon shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by Maker. The Holder may exercise Holder’s option to accelerate after any Event of Default, regardless of any prior forbearance.
8. Maker agrees to indemnify Holder and to hold Holder and Holder’s successors and assigns harmless from and against any and all claims, demands, costs, liabilities and obligations of any kind or nature arising out of any default hereunder, including, without limitation, all costs of collection, including reasonable attorneys’ fees and all costs of suit, in the event the unpaid principal sum of this Note and/or any interest thereon is not paid when due.
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9. It is the intention of Maker and Holder to conform strictly to the usury laws now or hereafter enforced in the State of California, and any interest payable under this Note or any of the other documents to be executed by Maker in connection with the loan made or to be made hereunder, shall be subject to reduction to the amount not in excess of the maximum nonusurious amount allowed under the usury laws of California as now or hereafter construed by the courts having jurisdiction over such matters. In the event the maturity of this Note is accelerated by reason of any provision of this Note or by reason of an election by Holder resulting from any default (or an event permitting acceleration), under this Note or any other instrument given to secure the payment hereof, or otherwise, then earned interest may never include more than the maximum amount permitted by law, computed from the date hereof until payment, and any interest in excess of the maximum amount permitted by law shall be canceled automatically and, if theretofore paid, shall at the option of the Holder either be rebated to Maker or be credited on the principal amount of this Note or if all principal has been repaid then the excess shall be rebated to Maker. The aggregate of all interest (whether designated as interest, service charges, points, or otherwise) contracted for, chargeable, or receivable under this Note or any other document executed in connection herewith shall under no circumstances exceed the maximum legal rate upon the unpaid principal balance of this Note remaining unpaid from time to time. In the event such interest does exceed the maximum legal rate, such excess shall be canceled automatically and if theretofore paid, rebated to the undersigned or credited on the principal amount of this Note, or if the Note has been repaid, then such excess shall be rebated to Maker.
10. Maker acknowledges and agrees that Maker shall not have any rights whatsoever to set-off against amounts due hereunder or otherwise due Holder any amount or obligation due Maker or claimed to be due Maker from Holder.
11. The unenforceability or invalidity of any provision or provisions of this Note as to any persons or circumstances shall not render that provision or those provisions unenforceable or invalid as to any other persons or circumstances, and all provisions hereof, in all other respects, shall remain valid and enforceable.
12. This Note shall bind Maker and Maker’s successors and assigns and the benefits hereof shall inure to Holder and Holder’s successors and assigns.
13. The validity, interpretation and performance of this Note shall be governed by and construed in accordance with the laws of the State of California.
14. Time is of the essence of this Note.
15. The rights or remedies of Holder, as provided in any Loan Document shall be cumulative and concurrent, and may be pursued singly, successively or together against the Property, and any other funds, property or security held by Holder for the payment hereof or otherwise, at the sole discretion of the Holder. The failure to exercise any such right or remedy shall in no event be construed as a waiver or release of such rights or remedies or of the right to exercise them at any time.
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16. Maker and all other persons liable or to become liable for all or part of this indebtedness, jointly and severally waive demand, presentment for payment, notice of nonpayment, protest and notice of protest hereon, agrees that when or at any time after this Note becomes due, the Holder may, without notice, offset or charge this Note against any bank account or other account maintained by Maker with the Holder, and agrees to pay, in the Event of Default hereunder, all costs of collection, including attorneys fees, whether or not suit is commenced.
17. This Note is being executed in connection with the financing on the Property being incurred by Maker. Maker’s liability under such financing is, with limited exceptions, nonrecourse as to Maker. Maker’s liability hereunder shall be nonrecourse to the same extent as provided in the permanent loan on the Property and the documents ancillary thereto. Notwithstanding anything to the contrary contained herein, (i) Maker shall not have, and no officer or director of Maker or of any affiliate of Maker (“Maker Affiliate”) shall have any direct, indirect or derivative personal liability for the obligations of the Maker under this Note, and (ii) Holder shall not exercise any rights or institute any action against the Maker or any Maker Affiliate directly, indirectly or derivatively for the payment of any sum of money that is or may become payable under the provisions hereof (other than the right to exercise its fights under any regulatory agreement recorded in favor of the Holder and encumbering the Property and its right to seek a decree of specific performance or otherwise in the event of default under this Note). Nothing contained herein shall be deemed to impair any security interest held by the Holder in the Property or in any account established pursuant to the provisions of this Note or preclude the Holder from realizing upon any security encumbered to Holder in connection herewith.
The Holder’s obligation to pay any monetary damages arising from the Holder’s default under this Note or any Loan Document shall be strictly limited to monies available in the Holder’s low and moderate income housing fund. Under no set of circumstances shall the City of Corona’s or Holder’s general fund or other accounts become liable for damages in the event of the breach of Holder’s obligations under this Note or any Loan Document. All of Holder’s obligations under this Note or any Loan Document shall be funded only out of the Holder’s low and moderate income housing fund.
18. IN THE EVENT OWNERSHIP OF THE PROPERTY DESCRIBED IN THE
DEED OF TRUST, OR ANY PART THEREOF, BECOMES VESTED IN A PERSON OR
PERSONS OTHER THAN MAKER, WITHOUT THE PRIOR WRITTEN APPROVAL OF
HOLDER, THIS NOTE SHALL BE DUE AND PAYABLE AND HOLDER MAY,
WITHOUT NOTICE TO MAKER, WAIVE SUCH DEFAULT AND DEAL WITH SUCH
SUCCESSOR OR SUCCESSORS IN INTEREST IN THE PROPERTY IN THE SAME
MANNER AS WITH MAKER, WITHOUT IN ANY WAY RELEASING, DISCHARGING
OR OTHERWISE AFFECTING THE LIABILITY OF MAKER, THE ENDORSER,
GUARANTORS, SURETIES, ACCOMMODATION PARTIES HEREOF AND ALL
OTHER PERSONS LIABLE OR TO BECOME LIABLE FOR ALL OR ANY PART OF THIS INDEBTEDNESS. NO SALE OF THE PROPERTY, NO FORBEARANCE ON THE
PART OF HOLDER, NO EXTENSION OF THE TIME FOR THE PAYMENT OF THE
INDEBTEDNESS OR ANY CHANGE IN THE TERMS OF THIS NOTE CONSENTED TO
BY HOLDER SHALL IN ANY WAY WHATSOEVER OPERATE TO RELEASE,
DISCHARGE, MODIFY, CHANGE OR AFFECT THE ORIGINAL LIABILITY OF
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MAKER AND ALL SUCH PERSONS LIABLE OR TO BECOME LIABLE FOR ALL OR ANY PART OF THIS INDEBTEDNESS, EITHER IN WHOLE OR IN PART. ANY DEED
CONVEYING THE PROPERTY, OR ANY PART THEREOF, SHALL PROVIDE THAT THE GRANTEE THEREUNDER ASSUMES ALL OF THE GRANTOR’S
OBLIGATIONS UNDER ANY LOAN DOCUMENT.
19. MAKER SHALL FAITHFULLY PERFORM EACH AND EVERY
COVENANT TO BE PERFORMED BY MAKER UNDER ANY LIEN OR
ENCUMBRANCE, LEASE, SUBLEASE, INSTRUMENT, DECLARATION, COVENANT,
CONDITION, RESTRICTION, LICENSE, ORDER OR OTHER AGREEMENT, WHICH
AFFECTS OR MAY AFFECT THE PROPERTY, IN LAW OR IN EQUITY, INCLUDING,
WITHOUT LIMITATION, EACH AND EVERY COVENANT TO BE PERFORMED BY
MAKER UNDER ANY MORTGAGES AND ANY AND ALL OTHER INSTRUMENTS
PERTAINING TO SUCH MORTGAGES, INCLUDING THE RESPECTIVE
OBLIGATIONS SECURED THEREBY. IN THE EVENT OF DEFAULT BY MAKER (I) IN THE PERFORMANCE OF MAKER’S OBLIGATIONS UNDER THIS NOTE, THE
DEED OF TRUST, OR THE LOAN AGREEMENT, (II) IN THE PERFORMANCE OF
ANY OTHER OBLIGATION OF MAKER TO THE HOLDER, OR (III) FAILURE TO
PERFORM ANY OF THE CONDITIONS OR COVENANTS OF THE NOTE, DEED OF
TRUST, THE LOAN AGREEMENT OR ANY SECURITY AGREEMENT GIVEN TO
SECURE SAID NOTE OR OTHER OBLIGATION OF MAKER, SUCH EVENT OF
DEFAULT MAY BE DEEMED, AT THE OPTION OF THE HOLDER, A DEFAULT IN
ALL INDEBTEDNESS DUE HOLDER AND THE WHOLE SUM OF THE PRINCIPAL
AND INTEREST OF THE DEBT EVIDENCED BY THIS NOTE AND ALL OF THE
OTHER INDEBTEDNESS DUE TO HOLDER BY MAKER SHALL, AT THE OPTION
OF THE HOLDER, BECOME DUE AND PAYABLE IMMEDIATELY, AND THE DEED
OF TRUST AND ALL OTHER SECURITY INTEREST FOR THE BENEFIT OF OR HELD BY THE HOLDER MAY BE FORECLOSED AT ONCE.
NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA,
a California nonprofit public benefit corporation
By: _________________________________
Kevin Lim, Chief Financial Officer
JAMIER\01200.20005\10320958.7 JAMIER\01200.20005\10320958.7 JAMIER\01200.20005\10320958.7 Formatted: Font: 9 pt
AMENDED AND RESTATED PROMISSORY NOTE
SECURED BY CONSTRUCTION DEED OF TRUST
$1,200,000 ___________, 20261998
Corona, California
FOR VALUE RECEIVED, the undersigned, NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA a California nonprofit public benefit corporation (previously known as THE SOUTHERN CALIFORNIA HOUSING DEVELOPMENT CORPORATION), (“Maker”), jointly and severally promise to pay to the CITY OF CORONA
HOUSING AUTHORITY, AS SUCCESSOR-IN-INTEREST TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF CORONA, a public body, corporate and politic (“Holder”), or order, at 250 East Rincon, Suite 107, Corona, CA 91719, Attn: Director of Housing and Development (or at such other place as Holder may specify from time to time in writing), the principal sum of One Million Two Hundred Thousand Dollars ($1,200,000), or the aggregate unpaid principal amount of all Advances made by Holder to the undersigned from time to time and remaining outstanding on the Maturity Date, whichever is less, together with interest on any principal amounts remaining unpaid from time to time from August 1, 1999 (“Interest Date”) until payment in full, to be calculated as set forth below.
1. All capitalized terms used in this Note, unless otherwise defined, will have the respective meanings specified in the First Amendment to the Affordable Housing Agreement dated as of the same date as this Note entered into between Maker and Holder (“Loan Agreement”). In addition, as used in this Note, the following terms will have the following meanings:
“Advance” will mean a disbursement of Loan Proceeds by Holder. “Business Day” means any day other than Saturday, Sunday, or public holiday or the equivalent for banks generally under the laws of California. Whenever any payment to be made under this Note is stated to be due on a day other than a Business Day, that payment may be made on the next succeeding Business Day, and the extension of time will in that case be included in the computation of payment of interest. However, if the extension would cause the payment to be made in a new calendar month, that payment will be made on the next preceding Business Day, and interest will be payable for the shorter period.
“Maturity Date” means January 31, 2000 December 31, 2078, or any earlier date on which the indebtedness evidenced by this Note is due pursuant to the terms of any Loan Document, as defined herein.
“Net Operating Income” has the meaning set forth in the Operation and Maintenance Agreement.
“Operation and Maintenance Agreement” means that certain Corona West Apartments Operation and Maintenance Agreement by and between Maker and Holder, or their respective predecessors in interest, dated June 1, 1996, and recorded in the Official Records on October 13, Formatted: Font: Bold
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1996, as Instrument No. 218507, as amended by that certain unrecorded First Amendment to Operation and Maintenance Agreement Corona West Apartments dated as of January 31, 2011 and that certain unrecorded Second Amendment to Operation and Maintenance Agreement Corona West Apartments dated substantially concurrently herewith. “Project” means that certain apartment complex commonly known as the “Corona West Del Rey Apartments” (formerly known as “Corona West Apartments”), located at 1148 D Street (leasing business address); 204 -340 Isabella Way (formerly 204-340 Garfield Avenue) and 204- 345 Magdalena Cricle (formerly 204-345 Grant Avenue), Corona, California 92882, which is an apartment building containing 160 affordable housing dwelling units. “Chase Loan” has the meaning set forth in Section I. of that certain unrecorded Second Amendment to Operation and Maintenance Agreement (Corona Del Rey) dated substantially concurrently herewith.
2. On From the Interest Date to the later of March 17, 2026 or the date the Chase Loan is funded and provided to the Borrower (the “New Interest Date”), all Advances will bear interest on the unpaid principal amount until repaid at a rate equal to 15 percent (15%) per annum (“Interest Rate”). Commencing on the New Interest Date, all Advances will bear interest on the unpaid principal amount until repaid at a rate equal to three percent (3%) simple interest per annum. Maker will make monthly payments of interest commencing on September 1, 1999. The entire balance of principal and accrued interest will be due on the Maturity Date. All payments will be applied first to payment of any costs, fees, late charges, or other charges due under this Note or under any other Loan Document, then to accrued interest, and then to the principal balance. Interest will be computed on the basis of a 360-day year and the actual number of days elapsed. All payments due hereunder are payable in lawful money of the United States of America in same day funds. The parties agree that the Interest Rate represents reasonable sums considering all of the circumstances existing on the date of this Note, including, without implied limitation, that Holder is not charging interest on the Advances until August 1, 1999, and represents a fair and reasonable estimate of the costs and damages that Holder will incur by foregoing interest until August 1, 1999. The parties further agree that proof of actual costs and damages would be costly or inconvenient.
2. 3. Commencing on the New Interest Date and continuing each year thereafter until the Maturity Date, a portion of the Net Operating Income from the Project shall be paid to Holder and applied to pay down the amounts due and owing under this Note. The payments described below shall be paid to Holder no later than July 1 each year. Maker shall make repayments of the outstanding principal and accrued interest, if any, equal to fifty percent (50%) of the Net Operating Income from the Project as repayment of amounts due and owing under this Note. Such annual payments shall be accompanied by the Maker’s report of the Net Operating Income and any other documentation reasonably requested by Holder to substantiate the Maker’s determination of the Net Operating Income. All payments made hereunder shall be credited first to any accrued but Formatted: Strikethrough
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unpaid interest (if applicable), then to current interest due and owing and lastly to principal.
Interest not paid current each year shall be added to and thereafter be considered additional principal due hereunder. Notwithstanding the foregoing, the entire outstanding balance of principal and any interest owing under this Note shall be due and payable on the Maturity Date.
3. Maker will pay to Holder an amount equal to the entire outstanding principal balance of this Note, together with all accrued and unpaid interest, on the Maturity Date.
4. This Note is secured by, among other things, the Construction Deed of Trust with Assignment of Rents and Security for a Portion of Net Income of the same date as this Note, executed by Maker, as trustor, in favor of Holder, as beneficiary (“Deed of Trust”), and encumbering the real property described in the Deed of Trust (“Property”). The holder of this Note will be entitled to the benefits of the security provided by the Deed of Trust and will have the right to enforce the covenants and agreements of Maker contained in the Deed of Trust. The Note and Deed of Trust are collectively and individually referred to as “Loan Document.”
5. From and after the Maturity Date, or an earlier date on which all sums owing under this Note become due by acceleration or otherwise, all sums owing under this Note also will bear interest until paid in full at a rate equal to 15 percent (15%) per annum (“Default Rate”). All payments made above shall be applied first to accrued interest, if any, and thereafter to reduction of principal. The parties agree that the Default Rate on overdue payments represents reasonable sums considering all of the circumstances existing on the date of this Note, including, without limitation, that Holder is not charging interest on principal which is timely paid, and represents a fair and reasonable estimate of the costs and damages that Holder will incur by reason of the late payment. The parties further agree that proof of actual damages would be costly or inconvenient.
Acceptance of any charge shall not constitute a waiver of the default with respect to the overdue amount, and shall not prevent Holder from exercising any of the other rights and remedies available to Holder. The foregoing shall not be construed as obligating the Holder to accept any payment after its due date.
Maker is composed of sophisticated business people and hereby waive, to the maximum extent permitted by law, the provisions of California Civil Code Section 2954.5 regarding the notices prerequisite to the imposition of delinquent payment charges.
6. In the event ownership of the Property, or any part thereof, becomes vested in a person or persons other than Maker, without the prior written approval of Holder, Holder may, without notice to Maker, waive such default and deal with such successor or successors in interest in the Property in the same manner as with Maker, without in any way releasing, discharging or otherwise affecting the liability of Maker, the endorser, guarantors, sureties, accommodation parties hereof and all other persons liable or to become liable for all or any part of this indebtedness. No sale or other Transfer, as defined herein, of the Property, no forbearance on the part of Holder, no extension of the time for the payment of the indebtedness or any change in the terms of this Note consented to by Holder shall in any way whatsoever operate to release, discharge, modify, change or affect the original liability of Maker and all such persons liable or to Formatted: Attachment 3, Indent: First line: 0.5", Space After: 12 pt, Tab stops: 0.5", List tab
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become liable for all or any part of this indebtedness, either in whole or in part. Any deed conveying the Property, or any part thereof, shall provide that the grantee thereunder assumes all of the grantor’s obligations under any Loan Document.
7. Upon the occurrence of any of the following, an Event of Default shall be deemed to have occurred and the Holder may, at Holder’s option, declare the unpaid balance of this Note, including interest, if any, thereon, to be immediately due and payable, and the same shall forthwith become due and payable:
7.1 Maker shall fail to make any payment under this Note when due; or
7.2 There shall occur an “Event of Default” under and as defined in any Loan Document; or
7.3 Maker shall (i) become insolvent or unable to pay Maker’s debts generally as they mature, (ii) suspend business, (iii) make a general assignment for the benefit of creditors, (iv) admit in writing Maker’s inability to pay Maker’s debts generally as they mature, (v) file or have filed against it a petition in bankruptcy or a petition or answer seeking a reorganization, arrangement with creditors or other similar relief under the Federal bankruptcy laws or under any other applicable law of the United States of America or any state thereof, or (vi) consent to the appointment of a trustee or receiver for it or for a substantial part of Maker’s property; or
7.4 Any order, judgement or decree shall be entered appointing, without Maker’s consent, a trustee or receiver for it or for a substantial part of Maker’s property; or
7.5 A judgment against Maker for the payment of money totaling in excess of $10,000 shall be outstanding for a period of sixty (60) days without a stay of execution thereof, or a bond or undertaking having been posted pursuant to Code of Civil Procedure §995.010, et seq.; or
7.6 The holder of any senior or junior encumbrance on the real and/or personal property collateral encumbered by the Deed of Trust shall institute foreclosure or other proceedings for the enforcement of its remedies thereunder; or
7.7 Maker shall sell, contract to sell, give an option to purchase, transfer, convey, encumber, or alienate (collectively, “Transfer”) the Property, as defined herein, or any interest in the Property, or permits or suffers Maker’s title, or any interest in the Property, to be divested, sold, transferred or otherwise conveyed, whether voluntarily or involuntarily, or if title to the Property or any interest in the Property be subject to any lien or charge, voluntary or involuntarily, contractual or statutory, without the prior written consent of Holder being first had and obtained.
This provision shall apply to each and every sale, transfer or conveyance, regardless of whether or not Holder has consented to, or waived, Holder’s right hereunder, whether by action or nonaction, in connection with any previous sale, transfer, or conveyance, whether one or more.
Notwithstanding the above, in the event of an actual or deemed entry of an order for relief with respect to Maker under the Federal Bankruptcy Code, this Note and all interest and other
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amounts due hereon shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by Maker.
The Holder may exercise Holder’s option to accelerate after any Event of Default, regardless of any prior forbearance.
8. Maker agrees to indemnify Holder and to hold Holder and Holder’s successors and assigns harmless from and against any and all claims, demands, costs, liabilities and obligations of any kind or nature arising out of any default hereunder, including, without limitation, all costs of collection, including reasonable attorneys’ fees and all costs of suit, in the event the unpaid principal sum of this Note and/or any interest thereon is not paid when due.
9. It is the intention of Maker and Holder to conform strictly to the usury laws now or hereafter enforced in the State of California, and any interest payable under this Note or any of the other documents to be executed by Maker in connection with the loan made or to be made hereunder, shall be subject to reduction to the amount not in excess of the maximum nonusurious amount allowed under the usury laws of California as now or hereafter construed by the courts having jurisdiction over such matters. In the event the maturity of this Note is accelerated by reason of any provision of this Note or by reason of an election by Holder resulting from any default (or an event permitting acceleration), under this Note or any other instrument given to secure the payment hereof, or otherwise, then earned interest may never include more than the maximum amount permitted by law, computed from the date hereof until payment, and any interest in excess of the maximum amount permitted by law shall be canceled automatically and, if theretofore paid, shall at the option of the Holder either be rebated to Maker or be credited on the principal amount of this Note or if all principal has been repaid then the excess shall be rebated to Maker. The aggregate of all interest (whether designated as interest, service charges, points, or otherwise) contracted for, chargeable, or receivable under this Note or any other document executed in connection herewith shall under no circumstances exceed the maximum legal rate upon the unpaid principal balance of this Note remaining unpaid from time to time. In the event such interest does exceed the maximum legal rate, such excess shall be canceled automatically and if theretofore paid, rebated to the undersigned or credited on the principal amount of this Note, or if the Note has been repaid, then such excess shall be rebated to Maker.
10. Maker acknowledges and agrees that Maker shall not have any rights whatsoever to set-off against amounts due hereunder or otherwise due Holder any amount or obligation due Maker or claimed to be due Maker from Holder.
11. The unenforceability or invalidity of any provision or provisions of this Note as to any persons or circumstances shall not render that provision or those provisions unenforceable or invalid as to any other persons or circumstances, and all provisions hereof, in all other respects, shall remain valid and enforceable.
12. This Note shall bind Maker and Maker’s successors and assigns and the benefits hereof shall inure to Holder and Holder’s successors and assigns.
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13. The validity, interpretation and performance of this Note shall be governed by and construed in accordance with the laws of the State of California.
14. Time is of the essence of this Note.
15. The rights or remedies of Holder, as provided in any Loan Document shall be cumulative and concurrent, and may be pursued singly, successively or together against the Property, and any other funds, property or security held by Holder for the payment hereof or otherwise, at the sole discretion of the Holder. The failure to exercise any such right or remedy shall in no event be construed as a waiver or release of such rights or remedies or of the right to exercise them at any time.
16. Maker and all other persons liable or to become liable for all or part of this indebtedness, jointly and severally waive demand, presentment for payment, notice of nonpayment, protest and notice of protest hereon, agrees that when or at any time after this Note becomes due, the Holder may, without notice, offset or charge this Note against any bank account or other account maintained by Maker with the Holder, and agrees to pay, in the Event of Default hereunder, all costs of collection, including attorneys fees, whether or not suit is commenced.
17. This Note is being executed in connection with the financing on the Property being incurred by Maker. Maker’s liability under such financing is, with limited exceptions, nonrecourse as to Maker. Maker’s liability hereunder shall be nonrecourse to the same extent as provided in the permanent loan on the Property and the documents ancillary thereto. Notwithstanding anything to the contrary contained herein, (i) Maker shall not have, and no officer or director of Maker or of any affiliate of Maker (“Maker Affiliate”) shall have any direct, indirect or derivative personal liability for the obligations of the Maker under this Note, and (ii) Holder shall not exercise any rights or institute any action against the Maker or any Maker Affiliate directly, indirectly or derivatively for the payment of any sum of money that is or may become payable under the provisions hereof (other than the right to exercise its fights under any regulatory agreement recorded in favor of the Holder and encumbering the Property and its right to seek a decree of specific performance or otherwise in the event of default under this Note). Nothing contained herein shall be deemed to impair any security interest held by the Holder in the Property or in any account established pursuant to the provisions of this Note or preclude the Holder from realizing upon any security encumbered to Holder in connection herewith.
The Holder’s obligation to pay any monetary damages arising from the Holder’s default under this Note or any Loan Document shall be strictly limited to monies available in the Holder’s low and moderate income housing fund. Under no set of circumstances shall the City of Corona’s or Holder’s general fund or other accounts become liable for damages in the event of the breach of Holder’s obligations under this Note or any Loan Document. All of Holder’s obligations under this Note or any Loan Document shall be funded only out of the Holder’s low and moderate income housing fund.
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18. IN THE EVENT OWNERSHIP OF THE PROPERTY DESCRIBED IN THE
DEED OF TRUST, OR ANY PART THEREOF, BECOMES VESTED IN A PERSON OR
PERSONS OTHER THAN MAKER, WITHOUT THE PRIOR WRITTEN APPROVAL OF
HOLDER, THIS NOTE SHALL BE DUE AND PAYABLE AND HOLDER MAY,
WITHOUT NOTICE TO MAKER, WAIVE SUCH DEFAULT AND DEAL WITH SUCH
SUCCESSOR OR SUCCESSORS IN INTEREST IN THE PROPERTY IN THE SAME
MANNER AS WITH MAKER, WITHOUT IN ANY WAY RELEASING, DISCHARGING
OR OTHERWISE AFFECTING THE LIABILITY OF MAKER, THE ENDORSER,
GUARANTORS, SURETIES, ACCOMMODATION PARTIES HEREOF AND ALL
OTHER PERSONS LIABLE OR TO BECOME LIABLE FOR ALL OR ANY PART OF THIS INDEBTEDNESS. NO SALE OF THE PROPERTY, NO FORBEARANCE ON THE
PART OF HOLDER, NO EXTENSION OF THE TIME FOR THE PAYMENT OF THE
INDEBTEDNESS OR ANY CHANGE IN THE TERMS OF THIS NOTE CONSENTED TO
BY HOLDER SHALL IN ANY WAY WHATSOEVER OPERATE TO RELEASE,
DISCHARGE, MODIFY, CHANGE OR AFFECT THE ORIGINAL LIABILITY OF
MAKER AND ALL SUCH PERSONS LIABLE OR TO BECOME LIABLE FOR ALL OR ANY PART OF THIS INDEBTEDNESS, EITHER IN WHOLE OR IN PART. ANY DEED
CONVEYING THE PROPERTY, OR ANY PART THEREOF, SHALL PROVIDE THAT THE GRANTEE THEREUNDER ASSUMES ALL OF THE GRANTOR’S
OBLIGATIONS UNDER ANY LOAN DOCUMENT.
19. MAKER SHALL FAITHFULLY PERFORM EACH AND EVERY
COVENANT TO BE PERFORMED BY MAKER UNDER ANY LIEN OR
ENCUMBRANCE, LEASE, SUBLEASE, INSTRUMENT, DECLARATION, COVENANT,
CONDITION, RESTRICTION, LICENSE, ORDER OR OTHER AGREEMENT, WHICH
AFFECTS OR MAY AFFECT THE PROPERTY, IN LAW OR IN EQUITY, INCLUDING,
WITHOUT LIMITATION, EACH AND EVERY COVENANT TO BE PERFORMED BY
MAKER UNDER ANY MORTGAGES AND ANY AND ALL OTHER INSTRUMENTS
PERTAINING TO SUCH MORTGAGES, INCLUDING THE RESPECTIVE
OBLIGATIONS SECURED THEREBY. IN THE EVENT OF DEFAULT BY MAKER (I) IN THE PERFORMANCE OF MAKER’S OBLIGATIONS UNDER THIS NOTE, THE
DEED OF TRUST, OR THE LOAN AGREEMENT, (II) IN THE PERFORMANCE OF
ANY OTHER OBLIGATION OF MAKER TO THE HOLDER, OR (III) FAILURE TO
PERFORM ANY OF THE CONDITIONS OR COVENANTS OF THE NOTE, DEED OF
TRUST, THE LOAN AGREEMENT OR ANY SECURITY AGREEMENT GIVEN TO
SECURE SAID NOTE OR OTHER OBLIGATION OF MAKER, SUCH EVENT OF
DEFAULT MAY BE DEEMED, AT THE OPTION OF THE HOLDER, A DEFAULT IN
ALL INDEBTEDNESS DUE HOLDER AND THE WHOLE SUM OF THE PRINCIPAL
AND INTEREST OF THE DEBT EVIDENCED BY THIS NOTE AND ALL OF THE
OTHER INDEBTEDNESS DUE TO HOLDER BY MAKER SHALL, AT THE OPTION
OF THE HOLDER, BECOME DUE AND PAYABLE IMMEDIATELY, AND THE DEED
OF TRUST AND ALL OTHER SECURITY INTEREST FOR THE BENEFIT OF OR HELD BY THE HOLDER MAY BE FORECLOSED AT ONCE.
-8-
JAMIER\01200.20005\10320958.7 JAMIER\01200.20005\10320958.7 JAMIER\01200.20005\10320958.7 Formatted: Font: 9 pt
NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA,
a California nonprofit public benefit corporation
By: _________________________________
Kevin Lim, Chief Financial Officer
THE SOUTHERN CALIFORNIA
HOUSING DEVELOPMENT
CORPORATION
By:
Jeffrey S. Burum
Executive Director
By:
Its:
-9-
JAMIER\01200.20005\10320958.7 JAMIER\01200.20005\10320958.7 JAMIER\01200.20005\10320958.7 Formatted: Font: 9 pt
JAMIER\01200.20005\10320958.7 JAMIER\01200.20005\10320958.7 JAMIER\01200.20005\10320958.7 Formatted: Font: 9 pt
April 4, 2002
James Bigler, Director of Accounting
Southern California Housing Development Corporation
8265 Aspen Street, Suite 100
Rancho Cucamonga, CA 91730
SUBJECT: CORONA DEL REY PROMISSORY NOTE
Dear Mr. Bigler:
This letter is a follow-up to your conversations with Scott Whyte, of my staff, concerning Southern California Housing Development Corporation’s obligation to repay its Promissory Note, dated August 25, 1998, for the aggregate unpaid principal amount of all advances made pursuant to the “Additional Loan,” including accrued interest. We have engaged our attorney to review the documents governing this matter, as well as research any working files to find evidence as to whether there is clear intent for this loan not to be repaid to the Redevelopment Agency of the City of Corona. Based on their conclusions, as well as conversations with George Guayante, our position remains that the monetary obligation, as evidenced by the Promissory Note and Affordable Housing Agreement, is due and payable.
We would like to arrange a meeting to further discuss this matter. Please contact Scott Whyte, CDBG/Housing Coordinator, at (909) 736-2466 to schedule a meeting so that we can reach closure on this subject.
Sincerely,
JIM BRADLEY, Director
Redevelopment and Economic Development Department
cc: Rebecca Clark, Executive Director
1 JAMIER\01200.20005\10320953.8
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Corona
400 S. Vicentia Avenue
Corona, CA 92882
Attn: ________________
Space above this line for Recorder’s use.
SECOND AMENDMENT TO OPERATION AND MAINTENANCE AGREEMENT (CORONA DEL REY APARTMENTS)
THIS SECOND AMENDMENT TO OPERATION AND MAINTENANCE
AGREEMENT (the “Amendment”) is to be dated for reference purposes as ________________ 2026, and is between the City of Corona Housing Authority as successor-in-interest to the former Redevelopment Agency of the City of Corona, a public body, corporate and politic (the “Housing Authority”), and National Community Renaissance of California, a California nonprofit public benefit corporation formerly known as and doing business as The Southern California Housing Development Corporation (“Owner”). Owner and Housing Authority may be referred to herein individually as “Party” or collectively as “Parties.”
RECITALS
A. On or about June 1, 1996, The Southern California Housing Development Corporation, a California nonprofit public benefit corporation (“SCHDC”) and the Redevelopment Agency of the City of Corona (the “Redevelopment Agency”) entered into an Affordable Housing Agreement (“AHA”). Among other things, the AHA provided for certain financial assistance to SCHDC to assist SDHDC in acquisition, rehabilitation and management of an affordable multifamily apartment rental community formerly known as the “Corona West Apartments” and currently known as “Corona del Rey” located at 204-340 Garfield Avenue and 204-345 Grant Avenue in the City of Corona, California (the “Project”). The AHA was amended through that certain First Amendment to the Affordable Housing Agreement, dated May 23, 1998 for reference purposes, to provide for additional financial assistance and time to construct the Project, which financial assistance was evidenced by that certain Promissory Note Secured by a Deed of Trust dated August 25, 1998 in the original principal amount of $1,200,000 (of which only $347,936.05 was actually disbursed) (the “Note”) secured by the Construction Deed of Trust, Security, Agreement and Fixture Filing with Assignment of Rents and Agreements (“Rehabilitation Deed of Trust”). In connection with and as a condition precedent to receipt of the financial assistance, SCHDC and the Redevelopment Agency entered into that certain Regulatory Agreement and Declaration of Restrictive Covenants dated June 1, 1996 (“Regulatory Agreement”) which requires that the Project be operated as an affordable housing rental project. SDHDC and the
2 JAMIER\01200.20005\10320953.8
Redevelopment Agency also entered into that certain Deed of Trust, Security Agreement and Fixture Filing (with Assignment of Rents) (“Trust Deed”) dated June 1, 1996. The Regulatory Agreement, the AHA, the Note, the Rehabilitation Deed of Trust and the Trust Deed are collectively referred to as the “Related Agreements.”
B. On or about June 1, 1996, SCHDC and the Redevelopment Agency entered into that certain Corona West Apartments Operation and Maintenance Agreement, which was recorded in the Official Records of Riverside County (the “Official Records”) on June 13, 1996 as document number 218507 and was subsequently amended by that certain unrecorded First Amendment to Operation and Maintenance Agreement Corona West Apartments dated January 31, 2011, which amendment, among other matters, allowed for the construction of a preschool and the use of funds from the reserve accounts to pay for the construction costs of the preschool (as amended, “Agreement”).
C. The Redevelopment Agency was dissolved in 2012, and all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the Redevelopment Agency were transferred to the Housing Authority pursuant to Health and Safety Code section 34176, as provided in Resolution No. 2012-005 of the City Council of the City of Corona, dated January 18, 2012, and Resolution No. 2012-006 of the Oversight Board to the Successor Agency to the Redevelopment Agency of the City of Corona, dated April 5, 2012. As such, the Housing Authority has assumed all Redevelopment Agency’s rights and obligations in the Agreement and the Related Agreements. Effective January 18, 2012, all references to the “Agency” in any of the Related Agreements shall mean the Housing Authority.
D. SCHDC formally changed its name to National Community Renaissance of California, a California nonprofit public benefit corporation, on February 15, 2007.
E. Under applicable provisions of the AHA and the Agreement, Owner is obligated to maintain certain reserve accounts in connection with operation of the Property including: (i) a Capital Replacement Reserve Account, (ii) an Operating Reserve Account, and (iii) Debt Service Reserve Account (collectively, the “Accounts”). Owner is obligated to make ongoing deposits into the Capital Replacement Reserve Account.
F. Under the current terms of the Agreement, the threshold balance in the Operating Reserve Account was set at $640,000 based on initial capitalization estimates and has increased based on annual deposits from net operating income produced from operation of the Project. The threshold balance in the Debt Service Reserve Account was set at $173,500 based on an estimate of six (6) months debt service payments on the permanent loan and was initially capitalized with $160,000. As of December 31, 2025, with deposits and interest accruals, the balances in the Accounts are as follows:
Capital Replacement Reserve Account $78,992.46
Operating Reserve Account $652,418.60
Debt Service Reserve Account $178,475.74
Total $909,886.80
3 JAMIER\01200.20005\10320953.8
G. In December of 2024, a substantial rehabilitation of the Project (the “Rehabilitation Work”) was completed using $7.45 million in proceeds provided under the Loan Agreement between Southern California Housing Development Corporation of the Inland Empire and National Community Renaissance of California, dated March 24, 2023 (the “SCHDC-IE Loan”) and additional construction loans of approximately $3.8 million (collectively, the “National Core Loan”).
H. The Rehabilitation Work funded by the SCHDC-IE Loan and National Core Loan will be refinanced with a new loan from J.P. Morgan Chase Bank in the anticipated approximate amount of $11,500,000, which loan will have hard debt payments (the “Chase Loan”).
I. The Chase Loan will be used to pay off, among other things, the National Core Loan and an existing loan from the County of Riverside HOME funds (the “County Loan”). As of January 3, 2026, the balance of the County Loan is $37,677.25 J. The Note has a maturity date of January 31, 2000. It is the Parties understanding that such maturity date was extended but they are unable to locate any amendment reflecting such extension and now desire to extend the maturity date to December 31, 2078, which extension will be effectuated through an amended and restated promissory note being executed concurrently herewith. Through such amendment, the parties will additionally reduce the interest rate to 3% simple and adjust the repayment terms as more particularly set forth therein.
K. Lastly, both the Owner and Housing Authority desire to delete the requirement for Owner to maintain the Operating Reserve Account and the Debt Service Reserve Account and transfer their respective account balances into the “Supplemental Replacement Reserve Account” which term is hereinafter defined.
L. Unless expressly provided otherwise, all capitalized terms and phrases used in this Amendment shall have the same meanings set forth in this Amendment, the Agreement or the Related Agreements.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and in consideration of the foregoing recitals and the mutual covenants and promises set forth herein, the Parties hereto agree as follows:
1. Definitions. For purposes of this Amendment, the Related Agreements and the Agreement, the following terms shall have the following meanings:
“Capital Replacement Reserve Deposit” shall mean an annual amount of $300 per rental unit per year ($48,000) that Owner shall be required to deposit in monthly installments of $4,000 pursuant to Section 2.11(b) into the Capital Replacement Reserve Account for repair and replacement of the Project.
“Chase” shall mean JPMorgan Chase Bank, N.A., a national banking association. “Chase Loan” shall mean that certain loan from Chase to NCRC CDR LLC, a California limited liability company, in the anticipated original principal amount of $11,500,000.
4 JAMIER\01200.20005\10320953.8
“City Loan” shall mean that certain loan from the Agency to the Owner in the original principal amount of $1,200,000.
“County Loan” shall mean that certain loan from the County of Riverside to the Owner in the original principal amount of $5,000,000.
“Net Operating Income” shall mean all money and income from the Project remaining annually after the payment of Senior Debt, the Capital Replacement Reserve Account Deposit, and all normal and necessary expenses of operation of the Project, including but not limited to the following:
(1) utility fees and costs not paid by tenants;
(2) insurance on the Project;
(3) ad valorem taxes and assessment payments; expenses and costs, as well as the cost of social programs at the Project and compliance monitoring/reporting, and management fees in the initial amount of $75 per Unit per month, which management fee shall be adjusted annually by a percentage equal to the annual increase in rents permitted by HUD and may be deferred and accrued;
(4) all other fees and expenses which may be permitted by the annual budget approved by the Agency; and
(5) Operating expenses will be considered "normal and necessary" if incurred generally for similarly structured, financed, and restricted rental properties operated by similar entities.
“Senior Debt” shall mean payments of principal and interest and other mandatory payments on amortized loans and indebtedness senior to the City Loan, which have been approved in writing by the Agency.”
2. Amendments to Section 2.11. Section 2.11(b) and (c) of the Agreement are hereby amended and restated in their entirety as follows:
“(b) Capital Replacement Reserve Account. An account funded from interim financing for the Project in the annual amount of $48,000 and through regular monthly deposits in the initial amount of $4,000 per month from the General Operating Account (“Capital Replacement Reserve Account Deposit”), which has a balance of $78,992.46 as of December 31, 2025, for the payment of repair and replacement of capital items, as provided more specifically in Section 3.2 below. Notwithstanding the foregoing, the Agency agrees that so long as the Chase Loan remains outstanding, the Agency will recognize the replacement reserve funded by Borrower to be held by Chase in accordance with the loan documents of the Chase Loan as satisfying the monthly deposits into the Capital Replacement Reserve Account under this Section 2.11(b), provided such amounts equals or exceeds the amounts required to be held by the Agency hereunder;
5 JAMIER\01200.20005\10320953.8
(c) Supplemental Replacement Reserve Account. An account to be funded from Available Reserve Net Income as provided in Section 3.6 below; and”
3. Amendments to Section 3.6. Section 3.6 of the Agreement is hereby amended and restated in its entirety as follows:
“3.6 Creation of Supplemental Replacement Reserve Account and Allocation of Project Cash Flows.
(a) Project Cash Flow. Owner agrees that all Net Operating Income shall be paid annually as set forth below:
(1) First, up to fifty percent (50%) of the Net Operating Income or an amount necessary to reach the Supplemental Replacement Reserve Account Threshold defined in Section
3.6(b), whichever is less, shall be deposited into the Supplemental Replacement Reserve Account which deposited amount shall be referred herein as the “Available Reserve Net Income”. Agency acknowledges that upon Owner’s satisfaction of its obligations under Section 3.6(b) (to deposit the current balances in the Operating Reserve Account and the Debt Service Reserve Accounts into the Supplemental Replacement Reserve Account), the Supplemental Replacement Reserve Account will have reached the Supplemental Replacement Reserve Account Threshold as a result of the transfer of funds from the Operating Reserve Account and the Debt Service Reserve Account to the Supplemental Replacement Reserve Account.
(2) Second, fifty percent (50%) of that portion of the Net Operating Income remaining after the deposit of the Available Reserve Net Income shall be paid to the Agency as repayment on that certain Amended and Restated Promissory Note dated substantially concurrently herewith as secured by Construction Deed of Trust, which was recorded in the Official Records of Riverside County (the “Official Records”) on October 14, 1998 as document number 444260 executed by Owner, or Owner’s predecessor in interest in favor of the Agency or Agency’s predecessor in interest (“Agency Note”) until paid in full; twenty-five percent (25%) of that portion of the Net Operating Income remaining after the deposit of the Available Reserve Net Income shall be used to repay the County Loan until paid in full; and, twenty-five percent (25%) of that portion of the Net Operating Income remaining after the deposit of the Available Reserve Net Income shall be paid to the Owner to repay any Owner loans for the Property, the Project and/or administrative expenses. (b) Creation of Supplemental Replacement Reserve Accounts. Owner will cause to be established a Supplemental Replacement Reserve Account (which shall be referred to as the “Supplemental Replacement Reserve Account”) which shall be funded and maintained as provided herein.
On the later to occur of March 18, 2026 or the date the Chase Loan is funded and provided to Owner, Owner shall deposit the current balances in the Operating Reserve Account and the Debt Service Reserve Accounts ($830,894.34 as of December 31, 2025), into the
6 JAMIER\01200.20005\10320953.8
Supplemental Replacement Reserve Account and thereafter the Operating Reserve Account and the Debt Service Reserve Account shall be closed and any reference in this Agreement, or the Related Agreements, to the Operating Reserve Account and Debt Service Reserve Account shall no longer be applicable.
After creation of the Supplemental Replacement Reserve Account, to the extent that Net Operating Income from the Project is available, Owner shall, on an annual basis, allocate to and deposit up to fifty percent 50% of the Net Operating Income into Supplemental Replacement Reserve Account until the balance in the Supplemental Replacement Reserve Account has reached the total amount of $820,000.00 (the “Supplemental Replacement Reserve Account Threshold”).
(c) Withdrawals from Reserve Accounts. On the Annual Operating Budget submitted to and approved by the Agency, Owner shall reflect anticipated cash requirements which will need to be withdrawn from either the Capital Replacement Reserve Account or the Supplemental Replacement Reserve Account (collectively, the “Reserve Accounts”).
Amounts so budgeted and approved by the Agency may be withdrawn by Owner from the indicated Reserve Account without further Agency approval. Other withdrawals for unbudgeted, unanticipated or emergency Project expenditures in an amount, singly or cumulatively for a calendar year, of less than Ten Thousand Dollars ($10,000) may be withdrawn by Owner without prior Agency approval, but Owner shall notify Agency in writing within ten (10) days after withdrawal. All amounts so withdrawn by Owner shall be expended on the Project and in accordance with Sections 3.2, 3.7 and 3.8 of this Agreement. Withdrawals for unbudgeted, unanticipated or emergency Project expenses in excess of Ten Thousand Dollars ($10,000) shall be subject to the Agency’s reasonable approval.
In the event that Owner is required to and is authorized to make withdrawal from the Supplemental Replacement Reserve Account, Owner shall deposit into the Supplemental Replacement Reserve Account up to fifty percent (50%) of the Net Operating Income to restore the balances thereof to the thresholds described herein. The funding levels of the Supplemental Replacement Reserve Account shall be analyzed ten (10) years from the date hereof, and at five (5) year intervals thereafter, by Agency and Owner to determine if the amounts deposited into such Reserve Accounts should be increased or decreased. The funding levels shall also be reviewed more frequently if requested by either the Agency or the Owner to determine if such amounts may be increased or decreased. (d) Financial Model. A financial model reflecting the cash flow requirements set forth herein, and the projected levels and build-up of the Reserve Accounts, is attached to this Agreement as Exhibit E and incorporated herein by reference. This financial model is anticipated to represent the financial condition of the Project in the future and is intended to be illustrative of events which are anticipated at the Project, but is not intended to be a binding commitment of either minimal or maximum Project operation, condition or cash flows.
7 JAMIER\01200.20005\10320953.8
(e) Intentionally Deleted.
(f) Intentionally Deleted.
(g) Annual Financial Statements. Not later than one-hundred twenty (120) days after the end of the first calendar year (or partial year) covering the operation of the Project, and annually thereafter on the same day and month, Owner shall submit to the City the annual financial statement for the Project for the preceding calendar year. Based on the annual financial statement, Owner shall make the payments and deposits described in Section
3.6(a) from the Net Operating Income for such prior year on July 1 of each year. The amount will be determined by the Owner and subject to the Agency’s review and approval.”
4. Amendments to Sections 3.7 and 3.8. Sections 3.7 and 3.8 of the Agreement are hereby deleted in their entirety.
5. Severability. If any term or provision of the Agreement and/or this Amendment shall be held invalid, the remainder thereof shall not be affected.
6. Continuing Effect of Agreement. Except as set forth in this Amendment, the Agreement remains in full force and effect according to their terms. From and after the Amendment effective date, wherever the term “Agreement” appears in the Agreement, or Related Agreements, it shall be read and understood to mean the Agreement as amended by this Amendment.
7. Effectiveness. Owner acknowledges that this Agreement will not be effective until it is executed by the Housing Authority.
[SIGNATURES TO FOLLOW ON NEXT PAGE]
8 JAMIER\01200.20005\10320953.8
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.
National Community Renaissance of
California, a California nonprofit public
benefit corporation
By: ______________________________
Name: ___________________________
Its: ______________________________
CITY OF CORONA HOUSING
AUTHORITY
By: _______________________________
Jacob Ellis
Executive Director
Attest:
By: _______________________________
Sylvia Edwards
Authority Secretary
1 JAMIER\01200.20005\10320953.7
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Corona
400 S. Vicentia Avenue
Corona, CA 92882
Attn: ________________
Space above this line for Recorder’s use.
SECOND AMENDMENT TO OPERATION AND MAINTENANCE AGREEMENT (CORONA DEL REY APARTMENTS)
THIS SECOND AMENDMENT TO OPERATION AND MAINTENANCE
AGREEMENT (the “Amendment”) is to be dated for reference purposes as ________________ 2026, and is between the City of Corona Housing Authority as successor-in-interest to the former Redevelopment Agency of the City of Corona, a public body, corporate and politic (the “Housing Authority”), and National Community Renaissance of California, a California nonprofit public benefit corporation formerly known as and doing business as The Southern California Housing Development Corporation (“Owner”). Owner and Housing Authority may be referred to herein individually as “Party” or collectively as “Parties.”
RECITALS
A. On or about June 1, 1996, The Southern California Housing Development Corporation, a California nonprofit public benefit corporation (“SCHDC”) and the Redevelopment Agency of the City of Corona (the “Redevelopment Agency”) entered into an Affordable Housing Agreement (“AHA”). Among other things, the AHA provided for certain financial assistance to SCHDC to assist SDHDC in acquisition, rehabilitation and management of an affordable multifamily apartment rental community formerly known as the “Corona West Apartments” and currently known as “Corona del Rey” located at 204-340 Garfield Avenue and 204-345 Grant Avenue in the City of Corona, California (the “Project”). The AHA was amended through that certain First Amendment to the Affordable Housing Agreement, dated May 23, 1998 for reference purposes, to provide for additional financial assistance and time to construct the Project, which financial assistance was evidenced by that certain Promissory Note Secured by a Deed of Trust dated August 25, 1998 in the original principal amount of $1,200,000 (of which only $347,936.05 was actually disbursed) (the “Note”) secured by the Construction Deed of Trust, Security, Agreement and Fixture Filing with Assignment of Rents and Agreements (“Rehabilitation Deed of Trust”). In connection with and as a condition precedent to receipt of the financial assistance, SCHDC and the Redevelopment Agency entered into that certain Regulatory Agreement and Declaration of Restrictive Covenants dated June 1, 1996 (“Regulatory Agreement”) which requires that the Project be operated as an affordable housing rental project. SDHDC and the
2 JAMIER\01200.20005\10320953.7
Redevelopment Agency also entered into that certain Deed of Trust, Security Agreement and Fixture Filing (with Assignment of Rents) (“Trust Deed”) dated June 1, 1996. The Regulatory Agreement, the AHA, the Note, the Rehabilitation Deed of Trust and the Trust Deed are collectively referred to as the “Related Agreements.”
B. On or about June 1, 1996, SCHDC and the Redevelopment Agency entered into that certain Corona West Apartments Operation and Maintenance Agreement, which was recorded in the Official Records of Riverside County (the “Official Records”) on June 13, 1996 as document number 218507 and was subsequently amended by that certain unrecorded First Amendment to Operation and Maintenance Agreement Corona West Apartments dated January 31, 2011, which amendment, among other matters, allowed for the construction of a preschool and the use of funds from the reserve accounts to pay for the construction costs of the preschool (as amended, “Agreement”).
C. The Redevelopment Agency was dissolved in 2012, and all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the Redevelopment Agency were transferred to the Housing Authority pursuant to Health and Safety Code section 34176, as provided in Resolution No. 2012-005 of the City Council of the City of Corona, dated January 18, 2012, and Resolution No. 2012-006 of the Oversight Board to the Successor Agency to the Redevelopment Agency of the City of Corona, dated April 5, 2012. As such, the Housing Authority has assumed all Redevelopment Agency’s rights and obligations in the Agreement and the Related Agreements. Effective January 18, 2012, all references to the “Agency” in any of the Related Agreements shall mean the Housing Authority.
D. SCHDC formally changed its name to National Community Renaissance of California, a California nonprofit public benefit corporation, on February 15, 2007.
E. Under applicable provisions of the AHA and the Agreement, Owner is obligated to maintain certain reserve accounts in connection with operation of the Property including: (i) a Capital Replacement Reserve Account, (ii) an Operating Reserve Account, and (iii) Debt Service Reserve Account (collectively, the “Accounts”). Owner is obligated to make ongoing deposits into the Capital Replacement Reserve Account.
F. Under the current terms of the Agreement, the threshold balance in the Operating Reserve Account was set at $640,000 based on initial capitalization estimates and has increased based on annual deposits from net operating income produced from operation of the Project. The threshold balance in the Debt Service Reserve Account was set at $173,500 based on an estimate of six (6) months debt service payments on the permanent loan and was initially capitalized with $160,000. As of December 31, 2025, with deposits and interest accruals, the balances in the Accounts are as follows:
Capital Replacement Reserve Account $78,992.46
Operating Reserve Account $652,418.60
Debt Service Reserve Account $178,475.74
Total $909,886.80
3 JAMIER\01200.20005\10320953.7
G. In December of 2024, a substantial rehabilitation of the Project (the “Rehabilitation Work”) was completed using $7.45 million in proceeds provided under the Loan Agreement between Southern California Housing Development Corporation of the Inland Empire and National Community Renaissance of California, dated March 24, 2023 (the “SCHDC-IE Loan”) and additional construction loans of approximately $3.8 million (collectively, the “National Core Loan”).
H. The Rehabilitation Work funded by the SCHDC-IE Loan and National Core Loan will be refinanced with a new loan from J.P. Morgan Chase Bank in the anticipated approximate amount of $11,500,000, which loan will have hard debt payments (the “Chase Loan”).
I. The Chase Loan will be used to pay off, among other things, the National Core Loan and an existing loan from the County of Riverside HOME funds (the “County Loan”). As of January 3, 2026, the balance of the County Loan is $37,677.25 J. The Note has a maturity date of January 31, 2000. It is the Parties understanding that such maturity date was extended but they are unable to locate any amendment reflecting such extension and now desire to extend the maturity date to December 31, 2078, which extension will be effectuated through an amended and restated promissory note being executed concurrently herewith. Through such amendment, the parties will additionally reduce the interest rate to 3% simple and adjust the repayment terms as more particularly set forth therein.
K. Lastly, both the Owner and Housing Authority desire to delete the requirement for Owner to maintain the Operating Reserve Account and the Debt Service Reserve Account and transfer their respective account balances into the “Supplemental Replacement Reserve Account” which term is hereinafter defined.
L. Unless expressly provided otherwise, all capitalized terms and phrases used in this Amendment shall have the same meanings set forth in this Amendment, the Agreement or the Related Agreements.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and in consideration of the foregoing recitals and the mutual covenants and promises set forth herein, the Parties hereto agree as follows:
1. Definitions. For purposes of this Amendment, the Related Agreements and the Agreement, the following terms shall have the following meanings:
“Capital Replacement Reserve Deposit” shall mean an annual amount of $300 per rental unit per year ($48,000) that Owner shall be required to deposit in monthly installments of $4,000 pursuant to Section 2.11(b) into the Capital Replacement Reserve Account for repair and replacement of the Project.
“Chase” shall mean JPMorgan Chase Bank, N.A., a national banking association. “Chase Loan” shall mean that certain loan from Chase to NCRC CDR LLC, a California limited liability company, in the anticipated original principal amount of $11,500,000.
4 JAMIER\01200.20005\10320953.7
“City Loan” shall mean that certain loan from the Agency to the Owner in the original principal amount of $1,200,000.
“County Loan” shall mean that certain loan from the County of Riverside to the Owner in the original principal amount of $5,000,000.
“Net Operating Income” shall mean all money and income from the Project remaining annually after the payment of Senior Debt, the Capital Replacement Reserve Account Deposit, and all normal and necessary expenses of operation of the Project, including but not limited to the following:
(1) utility fees and costs not paid by tenants;
(2) insurance on the Project;
(3) ad valorem taxes and assessment payments; expenses and costs, as well as the cost of social programs at the Project and compliance monitoring/reporting, and management fees in the initial amount of $75 per Unit per month, which management fee shall be adjusted annually by a percentage equal to the annual increase in rents permitted by HUD and may be deferred and accrued;
(4) all other fees and expenses which may be permitted by the annual budget approved by the Agency; and
(5) Operating expenses will be considered "normal and necessary" if incurred generally for similarly structured, financed, and restricted rental properties operated by similar entities.
“Senior Debt” shall mean payments of principal and interest and other mandatory payments on amortized loans and indebtedness senior to the City Loan, which have been approved in writing by the Agency.”
2. Amendments to Section 2.11. Section 2.11(b) and (c) of the Agreement are hereby amended and restated in their entirety as follows:
“(b) Capital Replacement Reserve Account. An account to be funded from interim financing for the Project in the annual amount of $48,000 and through regular monthly deposits in the initial amount of $4,000 per month from the General Operating Account (“Capital Replacement Reserve Account Deposit”), which has a balance of $78,992.46 as of December 31, 2025, for the payment of repair and replacement of capital items, as provided more specifically in Section 3.2 below 3.2 below. Notwithstanding the foregoing, the Agency agrees that so long as the Chase Loan remains outstanding, the Agency will recognize the replacement reserve funded by Borrower to be held by Chase in accordance with the loan documents of the Chase Loan as satisfying the monthly deposits into the Capital Replacement Reserve Account under this Section 2.11(b), provided such amounts equals or exceeds the amounts required to be held by the Agency hereunder; Formatted: Indent: Left: 0.5"
Formatted: No underline
Formatted: No underline
5 JAMIER\01200.20005\10320953.7
(c) OperatingSupplemental Replacement Reserve Account. An account to be funded from Available Reserve Net Income as provided in Section 3.6 below; and
3. Amendments to Section 3.6. Section 3.6 of the Agreement is hereby amended and restated in its entirety as follows:
“ 3.6 Creation of Supplemental Replacement Operating Reserve Account, Debt Service Reserve Account , Future Project Reserves Account and Allocation of Project Cash Flows.
(a) Project Cash Flow. Owner agrees that all Project “Net Operating Income,” meaning (i) all Project revenues (ii) minus actually expended operating expenses for the Project and (iii) minus payment of any monthly debt service payment on permanent taxexempt financing (as described in Section 3.2(a) above, shall be paid monthly onehalfannually as set forth below:
(a)(1) First, up to fifty percent (50%) to Agency, after deduction for the Owner’s administrative expenses pursuant to subsection (e) below, and one-half (50%) of such of the Net Operating Income or an amount necessary to reach the Supplemental Replacement Reserve Account Threshold defined in Section 3.6(b), whichever is less, shall be deposited monthly by Owner into reserve accounts to be established for the Project as provided in subparagraph (b) below. The funds Supplemental Replacement Reserve Account which make up this 50% of Net Operating Income to be deposited into the reserve accountsamount shall be referred to herein as the “Available Reserve Net Income.””.
Agency acknowledges that upon Owner’s satisfaction of its obligations under Section
3.6(b) (to deposit the current balances in the Operating Reserve Account and the Debt Service Reserve Accounts into the Supplemental Replacement Reserve Account), the Supplemental Replacement Reserve Account will have reached the Supplemental Replacement Reserve Account Threshold as a result of the transfer of funds from the Operating Reserve Account and the Debt Service Reserve Account to the Supplemental Replacement Reserve Account.
(2) Second, fifty percent (50%) of that portion of the Net Operating Income remaining after the deposit of the Available Reserve Net Income shall be paid to the Agency as repayment on that certain Amended and Restated Promissory Note dated substantially concurrently herewith as secured by Construction Deed of Trust, which was recorded in the Official Records of Riverside County (the “Official Records”) on October 14, 1998 as document number 444260 executed by Owner, or Owner’s predecessor in interest in favor of the Agency or Agency’s predecessor in interest (“Agency Note”) until paid in full; twenty-five percent (25%) of that portion of the Net Operating Income remaining after the deposit of the Available Reserve Net Income shall be used to repay the County Loan until paid in full; and, twenty-five percent (25%) of that portion of the Net Operating Income remaining after the deposit of the Available Reserve Net Income shall be paid to Formatted: Indent: Left: 0"
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the Owner to repay any Owner loans for the Property, the Project and/or administrative expenses.
(b) (b) Creation of Additional ProjectSupplemental Replacement Reserve Accounts. Owner will cause to be established from funds made available to Owner, as described specifically in Article 2 of the Affordable Housing Agreement, an Operating Reserve Account and a Debt Service Reserve a Supplemental Replacement Reserve Account (which shall be referred to collectively as the “Supplemental Replacement Reserve AccountsAccount”) which shall be funded and maintained as provided herein. .
With the approval of the Agency, Owner shall increase the initial deposits into said Reserve Accounts up to, but not to exceed, the thresholds established under this Section 3.6(b).
On the later to occur of March 18, 2026 or the date the Chase Loan is funded and provided to Owner, Owner shall deposit the current balances in the Operating Reserve Account and the Debt Service Reserve Accounts ($830,894.34 as of December 31, 2025), into the Supplemental Replacement Reserve Account and thereafter the Operating Reserve Account and the Debt Service Reserve Account shall be closed and any reference in this Agreement, or the Related Agreements, to the Operating Reserve Account and Debt Service Reserve Account shall no longer be applicable.
After creation of suchthe Supplemental Replacement Reserve AccountsAccount, to the extent that Available Reserve Net Operating Income from the Project is available, Owner shall, on an annual basis, allocate to and deposit up to fifty percent 50% of such Available Reservethe Net Operating Income into the Operating Reserve Account and 50% of such Available Reserve Net Income into the Debt ServiceSupplemental Replacement Reserve Account until the balance in the Operating Reserve Account has reached a total of $640,000 (“Operating Reserve Account Threshold”) and the balance in the Debt Service Reserve Supplemental Replacement Reserve Account has reached athe total amount of $173,500 (“Debt Service Reserve Account Threshold”).
The Operating820,000.00 (the “Supplemental Replacement Reserve Account Threshold has been initially established based on an estimated average replacement/reconstruction cost of $40,000 per apartment unit for the units in the Project, and is calculated at 10% % of the cost of replacing/rebuilding the Project based thereon. The Operating Reserve Account Threshold may be adjusted from time to time with the agreement of the Agency to reflect the estimated replacement cost of the Project as the same may increase from time to time.”).
The Debt Service Reserve Account Threshold has been set based on an estimate of six (6) months debt service payments on the permanent loan encumbering the Project as described in Article 2 of the Affordable Housing Agreement. Owner and Agency shall adjust the Project Debt Service Reserve Account Threshold from time to time to meet the six (6) month debt service goal.
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(c) (c) Withdrawals from Reserve Accounts. On the Annual Operating Budget submitted to and approved by the Agency, Owner shall reflect anticipated cash requirements which will need to be withdrawn from either the OperatingCapital Replacement Reserve Account or the Debt ServiceSupplemental Replacement Reserve Account. (collectively, the “Reserve Accounts”). Amounts so budgeted and approved by the Agency may be withdrawn by Owner from the indicated Reserve Account without further Agency approval. Other withdrawals for unbudgeted, unanticipated or emergency Project expenditures in an amount, singly or cumulatively for a calendar year, of less than Ten Thousand Dollars ($10,000) may be withdrawn by Owner without prior Agency approval, but Owner shall notify Agency in writing within ten (10) days after withdrawal.
All amounts so withdrawn by Owner shall be expended on the Project and in accordance with Sections 3.2, 3.7 and 3.8 of this Agreement. Withdrawals for unbudgeted, unanticipated or emergency Project expenses in excess of Ten Thousand Dollars ($10,000) shall be subject to the Agency’s, reasonable approval.
In the event that Owner is required to and is authorized to make withdrawal from either the Operating Supplemental Replacement Reserve Account or , Owner shall deposit into the Debt ServiceSupplemental Replacement Reserve Account, future Available Reserve Net up to fifty percent (50%) of the Net Operating Income of the Project shall be deposited by Owner into such Reserve Accounts to restore the balances thereof to the thresholds described herein. The funding levels of the Supplemental Replacement Reserve AccountsAccount shall be analyzed ten (10) years from the date hereof, and at five (5) year intervals thereafter, by Agency and Owner to determine if the amounts deposited into such Reserve Accounts should be increased or decreased. The funding levels shall also be reviewed more frequently if requested by either the Agency or the Owner to determine if such amounts may be increased or decreased.
(d) (d) Financial Model. A financial model reflecting the cash flow requirements set forth herein, and the projected levels and build-up of the Reserve Accounts, is attached to this Agreement as Exhibit E and incorporated herein by reference. This financial model is anticipated to represent the financial condition of the Project in the future and is intended to be illustrative of events which are anticipated at the Project, but is not intended to be a binding commitment of either minimal or maximum Project operation, condition or cash flows.
(e) Payment for Owner’s Overhead and Administrative Expenses. The Owner may withdraw the sum of Four Thousand Dollars ($4,000.00) per month from that fifty percent (50%) of Net Operating Income not used to fund the Reserve Accounts to reimburse itself for its general administrative overhead related to the Project. The remainder of that fifty percent (50%) portion of Net Operating Income shall be paid to the Agency, as more specifically set forth in subsection (a) of this Section 3.6.
The amount that Owner is permitted to withdraw pursuant to this subsection (e) may be adjusted no more often than once every five (5) years during the term of this Agreement to reflect the Formatted: Normal, Indent: Left: 0.5", First line: 0"
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8 JAMIER\01200.20005\10320953.7
cumulative change in the Consumer Price Index, All Items Indexes, All Urban Consumers for the Los Angeles - Anaheim - Riverside area (1982 - 84 = 100), occurring from and after the date of this Agreement until the date of said adjustment.
(f) Allocation of Net Operating Income After Reserve Account Thresholds Satisfied. Once the Operating Reserve Account Threshold and Debt Service Reserve Account Thresholds have been met, then all Net Operating Income shall be paid monthly to the Agency, after deduction of the amount set forth in subsection (e) above. If such thresholds are increased in accordance with the provisions of this Section 3.6, then fifty percent (50%) of Net Operating Income shall once again become Available Reserve Net Income and shall be used to fund the applicable Reserve Accounts until the modified thresholds have been reached. At that time, all Net Operating Income shall once again be paid monthly to Agency, after deduction of the amount set forth in subsection (e) above.
(e) Intentionally Deleted.
(f) Intentionally Deleted.
(g) Annual Financial Statements. Not later than one-hundred twenty (120) days after the end of the first calendar year (or partial year) covering the operation of the Project, and annually thereafter on the same day and month, Owner shall submit to the City the annual financial statement for the Project for the preceding calendar year. Based on the annual financial statement, Owner shall make the payments and deposits described in Section
3.6(a) from the Net Operating Income for such prior year on July 1 of each year. The amount will be determined by the Owner and subject to the Agency’s review and approval.”
4. Amendments to Sections 3.7 and 3.8. Sections 3.7 and 3.8 of the Agreement are hereby deleted in their entirety.
3.7. Disbursements From Operating Reserve Account. As described in Section 3.2(b) of this Agreement, unforeseen capital repair replacement expenses may be paid from the Operating Reserve Account to the extent that funds are unavailable in the Capital Replacement Reserve Account, subject to the limitations set forth in Section 3.6(c) hereof. Other unanticipated and unforeseen project expenses may also be paid from the Operating Reserve Account, subject to Section 3.6(c) hereof.
3.8 Disbursements From Debt Service Reserve Account. Withdrawal of any amount not budgeted in the approved Annual Operating Budget may be made from the Debt Service Reserve Account only in accordance with Section 3.6(c) hereof. Monies withdrawn from the Debt Service Reserve Account may be used only for payment of principal and interest on loans encumbering the Project, unless the Agency otherwise consents in writing.
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5. Severability. If any term or provision of the Agreement and/or this Amendment shall be held invalid, the remainder thereof shall not be affected.
6. Continuing Effect of Agreement. Except as set forth in this Amendment, the Agreement remains in full force and effect according to their terms. From and after the Amendment effective date, wherever the term “Agreement” appears in the Agreement, or Related Agreements, it shall be read and understood to mean the Agreement as amended by this Amendment.
7. Effectiveness. Owner acknowledges that this Agreement will not be effective until it is executed by the Housing Authority.
[SIGNATURES TO FOLLOW ON NEXT PAGE]
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written.
National Community Renaissance of
California, a California nonprofit public
benefit corporation
By: ______________________________
Name: ___________________________
Its: ______________________________
CITY OF CORONA HOUSING
AUTHORITY
By: _______________________________
Jacob Ellis
Executive Director
Attest:
By: _______________________________
Sylvia Edwards
Authority Secretary
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When recorded mail to:
NCRC CDR LLC
c/o National Community Renaissance of California
9692 Haven Avenue, Suite 100
Rancho Cucamonga, California 91730
Attn: Kevin Lim
APN: 118-183-034 THROUGH 118-183-043, INCLUSIVE; 118-183-049; 118-183-051; 118-183- 053; 118-171-019 THROUGH 118-171-024, INCLUSIVE, 118-171-027 THROUGH 118-171-038, INCLUSIVE AND 118-171-040 THROUGH 118-171-046, INCLUSIVE, AND 118-171-054 THROUGH 118-171-056, INCLUSIVE.
ASSIGNMENT AND ASSUMPTION AGREEMENT
This Assignment and Assumption Agreement (the “Agreement”) is entered into as of ____________ 2026, by and among National Community Renaissance of California, a California nonprofit public benefit corporation (f/k/a The Southern California Housing Development Corporation) (the “Assignor”) and NCRC CDR LLC, a California limited liability company (the “Assignee”), and the Housing Authority of the City of Corona, as successor-in-interest to the former Redevelopment Agency of the City of Corona, a public body, corporate and politic (the “Authority”). Assignor, Assignee and Authority shall collectively be referred to as the "Parties". The “Effective Date” of this Agreement shall be the date of recordation of this Agreement in the Official Records of the County of Riverside (“Official Records”).
RECITALS
A. The Authority made a loan (the “Loan”) to The Southern California Housing Development Corporation (who changed its name to National Community Renaissance of California via corporate amendment on February 15, 2007) in the original principal amount of One Million Two Hundred Thousand and 00/100 Dollars ($1,200,000.00) for the purpose of financing, in part, the rehabilitation expenses related to a one hundred sixty (160) unit affordable housing project (the “Project”) located in the City of Corona, State of California, described on Exhibit A attached hereto (the “Property”).
B. The Loan is evidenced by that certain Corona West Apartments Operation and Maintenance Agreement dated as of June 1, 1996, and recorded in the Official Records on October 13, 1996, as Instrument No. 218507, as amended by that certain unrecorded First Amendment to Operation and Maintenance Agreement Corona West Apartments dated as of January 31, 2011 and that certain Second Amendment to Operation and Maintenance Agreement, dated substantially concurrently herewith (together, the “Loan Agreement”), that certain Affordable Housing Agreement dated as of June 1, 1996, as amended by that certain First Amendment to the Affordable Housing Agreement Corona West Apartments, dated May 23, 1998 (together, the “AHA”), and that certain Amended and Restated Promissory Note Secured by Construction Deed of Trust dated substantially concurrently herewith (the “Note”). The Loan is secured by that certain Deed of Trust, Security Agreement and Fixture Filing
2 JAMIER\01200.20005\10320960.7
(With Assignment of Rents) dated as of June 1, 1996 and recorded in the Official Records on June 13, 1996 as Instrument No. 218508 (the “First Deed of Trust”), that certain Construction Deed of Trust, Security Agreement and Fixture Filing with Assignment of Rents and Agreements dated as of August 25, 1998 and recorded in the Official Records on October 14, 1998, as Instrument No. 444260 (the “Second Deed of Trust” and together with the First Deed of Trust, the “Deed of Trust”) and that Regulatory Agreement and Declaration of Restrictive Covenants dated June 1, 1996, and recorded in the Official Records on June 13, 1996, as Instrument No. 218506 (the “Regulatory Agreement”). ”). The Loan Agreement, the AHA, the Note, the Deed of Trust and the Regulatory Agreement are defined collectively as the “Loan Documents.”
C. Assignor is the sole member of the Assignee and has formed the Assignee for the purpose of further rehabilitating the Project. In connection therewith, Assignor and Assignee have applied for a new loan from JPMorgan Chase Bank, N.A., a national banking association, in the anticipated amount of up to Twelve Million Five Hundred Thousand and 00/100 Dollars ($12,500,000) (the “Chase Loan”).
D. Substantially concurrently herewith, Assignor shall transfer the Property and the Project to the Assignee.
E. In connection with the transfer of the Property, Assignor desires to assign to the Assignee all of Assignor’s right, title, interest and obligations under the Loan Documents, and the Assignee desires to accept such assignment.
NOW, THEREFORE, for good and valuable consideration, the Parties agree as follows:
1. Assignment. Assignor hereby assigns to the Assignee all of Assignor’s right, title and interest in and obligations under the Loan Documents.
2. Acceptance. The Assignee hereby accepts such assignment, and hereby assumes all of the obligations of Assignor under the Loan Documents. Any reference to Assignor in the Loan Documents shall be deemed a reference to the Assignee. The Assignee agrees that all amounts due from Assignor pursuant to the Loan Documents from and after the Effective Date shall be paid directly by the Assignee.
3. Release of Assignor. The Assignee hereby releases Assignor from all obligations imposed under the Loan Documents.
4. Consent of Authority. Authority hereby consents to the assignment of the Loan Documents from Assignor to Assignee and hereby agrees to release Assignor from all obligations imposed under the Loan Documents.
5. Representations. Assignor hereby represents and warrants that it has not previously assigned, pledged, hypothecated or otherwise transferred any of its rights under the Loan Documents.
6. Notices to Assignee. The Assignee’s address for notices under the Loan Documents shall be:
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NCRC CDR LLC
c/o National Community Renaissance of California
9692 Haven Avenue, Suite 100
Rancho Cucamonga, California 91730
Attn: Kevin Lim
7. Conflicts. In the event of any conflict between this Agreement and the Loan Documents, this Agreement shall control.
8. Authority. Each of the Parties represents and warrants that it has the full power and authority to execute this Agreement and perform its respective obligations hereunder.
9. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one document.
Signatures on Following Page
S-1
Assignment Agreement Seller Loan (Mar)
432\62\2815306.3
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IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date set forth above.
ASSIGNOR:
NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA,
a California nonprofit public benefit corporation
By: _________________________________
Kevin Lim, Chief Financial Officer
ASSIGNEE:
NCRC CDR LLC,
a California limited liability company
By: National Community Renaissance of California,
a California nonprofit public benefit corporation
its sole member
By: _______________________________
Kevin Lim, Chief Financial Officer
AUTHORITY:
CITY OF CORONA HOUSING AUTHORITY
a public body corporate and politic
By: ___________________________
Jacob Ellis
Executive Director
Attest:
_____________________________
Sylvia Edwards
Authority Secretary
432\62\2815306.3
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF
On ______________ before me, _______________________ (here insert name and title of the officer), personally appeared _________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature _______________________________ (Seal)
432\62\2815306.3
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF
On ______________ before me, _______________________ (here insert name and title of the officer), personally appeared _________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature _______________________________ (Seal)
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EXHIBIT A
Legal Description
Subordination Agreement – Governmental Entity Page 0
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Prepared by, and after recording
return to:
Lanre A. Popoola, Esquire
Troutman Pepper Locke LLP
Post Office Box 1122
Richmond, Virginia 23218
SUBORDINATION AGREEMENT
GOVERNMENTAL ENTITY
(Revised 2-25-2025)
Subordination Agreement – Governmental Entity Page 1
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Freddie Mac Loan Number: 511879059
Property Name: Corona del Rey Apartments
SUBORDINATION AGREEMENT
GOVERNMENTAL ENTITY
(Revised 2-25-2025)
THIS SUBORDINATION AGREEMENT (“Agreement”) is entered into this ___ day of April, 2026, by and between (i) JPMORGAN CHASE BANK, N.A., a national banking association organized and existing under the laws of the State of California (“Senior Lender”) and (ii) CITY OF CORONA HOUSING AUTHORITY, as successor-in-interest to the former Redevelopment Agency of the City of Corona, a public body, corporate and politic (“Subordinate Lender”).
RECITALS
A. NCRC CDR LLC, a limited liability company organized under the laws of the State of California (“Borrower”) is the owner of certain land located in Riverside County, California, described in Exhibit A (“Land”). The Land is improved with a multifamily rental housing project (“Improvements”).
B. Senior Lender has made or is making a loan to Borrower in the original principal amount of $[12,187,000].00 (“Senior Loan”) upon the terms and conditions of a Multifamily Loan and Security Agreement dated as of April ___, 2026 between Senior Lender and Borrower (“Senior Loan Agreement”) in connection with the Mortgaged Property. The Senior Loan is secured by a Multifamily Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing dated as of the date of the Senior Loan Agreement (“Senior Mortgage”) encumbering the Land, the Improvements and related personal and other property described and defined in the Senior Mortgage as the “Mortgaged Property.”
C. Pursuant to an Operation and Maintenance Agreement dated as of June 1, 1996 between The Southern California Housing Development Corporation (“SCHDC”), predessor-ininterest to Borrower, and Redevelopment Agency of the City of Corona (“Redevelopment Agency”), predessor-in-interest to Subordinate Lender, as amended by that certain First Amendment to Operation and Maintenance Agreement dated as of January 31, 2011, and as futher amended by that certain Second Amendment to Operation and Maintenance Agreement to be dated prior to or as of the date hereof (collectivley, the “Operation and Maintenance Agreement”), SCHDC committed to operate the Property as affordable housing as consideration for the Redevelopment Agency’s commitment to provide financial assistane for the construction of the Property (“SCHDC’s Obligations”). The SCHDC’s Obligations was secured by a Deed of Trust,
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Security Agreement and Fixture Filing (with Assignment of Rents) dated as of June 1, 1996 (“SCHDC Security Instrument”) and recorded in the land records of Riverside County, California (“Recording Office”) as Document No. 218508.
D. Pursuant to an Affordable Housing Agreement dated as of June 1, 1996 between Redevelopment Agency and SCHDC, as amended by that certain First Amendment to the Affordable Housing Agreement dated as of May 23, 1998 (collectively, the “Subordinate Loan Agreement”), Redevelopment Agency has made or is making a loan to Borrower in the original principal amount of $1,200,000.00 (“Subordinate Loan”).
The Subordinate Loan is or will be secured by a Construction Deed of Trust, Security Agreement, and Fixture Filing with Assignment of Rents and Agreements dated as of August 25, 1998 (“Subordinate Loan Mortgage” and together with the SCHDC Security Instrument, collectively, the “Subordinate Mortgage”) recorded in the Recording Office as Document No. 444260, encumbering all or a portion of the Mortgaged Property.
E. Pursuant to an Assignment and Assumption Agreement dated prior to or as of the date hereof (“Assignment and Assumption Agreement”) by and among, National Community Renaissance of California, a California nonprofit public benefit corporation (f/k/a SCHDC), Subordinate Lender and Borrower, Borrower will assume the Subordinate Loan Documents.
F. The Senior Mortgage will be recorded in the land records the Recording Office.
G. The execution and delivery of this Agreement is a condition of Senior Lender’s making of the Senior Loan.
AGREEMENT
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:
1. Definitions. The following terms, when used in this Agreement (including, as appropriate, when used in the above recitals), will have the following meanings:
The terms “Condemnation,” “Imposition Reserve Deposits,” “Impositions,” “Leases,” “Rents” and “Restoration,” as well as any term used in this Agreement and not otherwise defined in this Agreement, will have the meanings given to those terms in the Senior Loan Agreement.
“Bankruptcy Proceeding” means any bankruptcy, reorganization, insolvency, composition, restructuring, dissolution, liquidation, receivership, assignment for the benefit of creditors, or custodianship action or proceeding under any federal or state law with respect to Borrower, any guarantor of any of the Senior Indebtedness, any of their respective properties, or any of their respective partners, members, officers, directors, or shareholders.
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“Borrower” means all persons or entities identified as “Borrower” in the first Recital of this Agreement, together with their successors and assigns, and any other person or entity who acquires title to the Mortgaged Property after the date of this Agreement; provided that the term “Borrower” will not include Senior Lender if Senior Lender acquires title to the Mortgaged Property.
“Casualty” means the occurrence of damage to or loss of all or any portion of the Mortgaged Property by fire or other casualty.
“Enforcement Action” means any of the following actions taken by or at the direction of Subordinate Lender: the acceleration of all or any part of the Subordinate Indebtedness, the advertising of or commencement of any foreclosure or trustee’s sale proceedings, the exercise of any power of sale, the acceptance of a deed or assignment in lieu of foreclosure or sale, the collecting of Rents, the obtaining of or seeking of the appointment of a receiver, the seeking of default interest, the taking of possession or control of any of the Mortgaged Property, the commencement of any suit or other legal, administrative, or arbitration proceeding based upon the Subordinate Note or any other of the Subordinate Loan Documents, the exercising of any banker’s lien or rights of set-off or recoupment, or the exercise of any other remedial action against Borrower, any other party liable for any of the Subordinate Indebtedness or obligated under any of the Subordinate Loan Documents, or the Mortgaged Property.
“Enforcement Action Notice” means a Notice given from Subordinate Lender to Senior Lender following one or more Subordinate Mortgage Default(s) and the expiration of any applicable notice or cure periods, setting forth in reasonable detail the Subordinate Mortgage Default(s) and the Enforcement Actions proposed to be taken by Subordinate Lender.
“Lien” means any lien, encumbrance, estate or other interest, recorded against or secured by the Mortgaged Property.
“Loss Proceeds” means all monies received or to be received under any insurance policy, from any condemning authority, or from any other source, as a result of any Condemnation or Casualty.
“Notice” means all notices, requests, demands, consents, approvals or other communication pursuant to this Agreement provided in accordance with the provisions of Section 10.
“Regulatory Agreement” means collectively, (i) Operation and Maintenance Agreement and (ii) the Regualtory Agreement and Declaration of Restrictive Covenants between Borrower and Subordinate Lender dated as of June 1, 1996 and recorded in the Recording Office as Document No. 218506.
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“Senior Indebtedness” means the “Indebtedness” as defined in the Senior Loan Agreement.
“Senior Lender” means the “Lender” as defined in the Senior Mortgage. When any other person or entity becomes the legal holder of the Senior Note, such other person or entity will automatically become Senior Lender.
“Senior Loan Documents” means the “Loan Documents” as defined in the Senior Loan Agreement, as such documents may be amended.
“Senior Mortgage Default” means any act, failure to act, event, condition, or occurrence which constitutes, or which with the giving of Notice or the passage of time, or both, would constitute, an “Event of Default” as defined in the Senior Loan Agreement. “Senior Note” means the promissory note or other evidence of the Senior Indebtedness and any replacement of the Senior Note.
“Subordinate Indebtedness” means all sums evidenced or secured or guaranteed by, or otherwise due and payable to Subordinate Lender pursuant to, the Subordinate Loan Documents.
“Subordinate Lender” means the person or entity named as such in the first paragraph of this Agreement and any other person or entity who becomes the legal holder of the Subordinate Note after the date of this Agreement.
“Subordinate Loan Documents” means the Subordinate Mortgage, the Subordinate Note, the Subordinate Loan Agreement, the Regulatory Agreement, the Assignment and Assumption Agreement, and all other documents at any time evidencing, securing, guaranteeing, or otherwise delivered in connection with the Subordinate Indebtedness, as such documents may be amended.
“Subordinate Mortgage Default” means any act, failure to act, event, condition, or occurrence which allows (but for any contrary provision of this Agreement), Subordinate Lender to take an Enforcement Action.
“Subordinate Note” means the promissory note or other evidence of the Subordinate Indebtedness and any replacement of the Subordinate Note. “Surplus Cash” means, with respect to any period, any revenues of Borrower remaining after paying, or setting aside funds for paying, all the following:
(a) All sums due or currently required to be paid under the Senior Loan Documents, including any reserves and Imposition Reserve Deposits. (b) All reasonable operating expenses of the Mortgaged Property, including real estate taxes, insurance premiums, utilities, building maintenance, painting and
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repairs, management fees, payroll, administrative expenses, legal expenses and audit expenses (excluding any developer fees payable with respect to the Mortgaged Property).
2. Subordinate Lender’s Representations and Warranties. (a) Subordinate Lender represents and warrants that each of the following is true as of the date of this Agreement:
(i) Subordinate Lender is now the owner and holder of the Subordinate Loan Documents.
(ii) No Subordinate Mortgage Default has occurred and is continuing. (iii) The current unpaid principal balance of the Subordinate Indebtedness is $1,200,000.00.
(iv) No scheduled payments under the Subordinate Note have been prepaid. (b) Without the prior written consent of Senior Lender, Subordinate Lender will not do any of the following:
(i) Pledge, assign, transfer, convey, or sell any interest in the Subordinate Indebtedness or any of the Subordinate Loan Documents.
(ii) Take any action which has the effect of increasing the Subordinate Indebtedness, except to cure a Senior Mortgage Default as contemplated under Section 5(a) of this Agreement.
(iii) Accept any prepayment of the Subordinate Indebtedness.
3. Terms of Subordination.
(a) Agreement to Subordinate. The Subordinate Indebtedness is and will at all times continue to be subject and subordinate in right of payment to the prior payment in full of the Senior Indebtedness. Each of the Subordinate Loan Documents is, and will at all times remain, subject and subordinate in all respects to the liens, terms, covenants, conditions, operations, and effects of each of the Senior Loan Documents.
(b) Subordination of Subrogation Rights. If Subordinate Lender, by indemnification, subrogation or otherwise, acquires any Lien on any of the Mortgaged Property, then that Lien will be fully subject and subordinate to the receipt by Senior Lender of payment in full of the Senior Indebtedness, and to the Senior Loan Documents, to the same extent as the Subordinate Indebtedness and the Subordinate Loan Documents are subordinate pursuant to this Agreement.
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(c) Payments Before Senior Mortgage Default; Soft Subordinate Debt. Until the occurrence of a Senior Mortgage Default, Subordinate Lender will be entitled to retain for its own account all payments of the principal of and interest on the Subordinate Indebtedness pursuant to the Subordinate Loan Documents; provided that Subordinate Lender expressly agrees that it will not accept any such payment that is made more than 10 days in advance of its due date and provided further that Subordinate Lender will not accept any payment in an amount that exceeds 75% of then available Surplus Cash.
(d) Payments After Senior Mortgage Default or Bankruptcy. (i) Immediately upon Subordinate Lender’s receipt of Notice or actual knowledge of a Senior Mortgage Default, Subordinate Lender will not accept any payments of the Subordinate Indebtedness, and the provisions of this Section 3(d) will apply.
(ii) If Subordinate Lender receives any of the following, whether voluntarily or by action of law, after a Senior Mortgage Default of which Subordinate Lender has actual knowledge (or is deemed to have actual knowledge as provided in Section 4(c)) or has been given Notice, such will be received and held in trust for Senior Lender:
(A) Any payment, property, or asset of any kind or in any form in connection with the Subordinate Indebtedness.
(B) Any proceeds from any Enforcement Action.
(C) Any payment, property, or asset in or in connection with any Bankruptcy Proceeding.
(iii) Subordinate Lender will promptly remit, in kind and properly endorsed as necessary, all such payments, properties, and assets described in Section 3(d)(ii) to Senior Lender. Senior Lender will apply any payment, asset, or property so received from Subordinate Lender to the Senior Indebtedness in such order, amount (with respect to any asset or property other than immediately available funds), and manner as Senior Lender determines in its sole and absolute discretion.
(e) Bankruptcy. Without the prior written consent of Senior Lender, Subordinate Lender will not commence, or join with any other creditor in commencing, any Bankruptcy Proceeding. In the event of a Bankruptcy Proceeding, Subordinate Lender will not vote affirmatively in favor of any plan of reorganization or liquidation unless Senior Lender has also voted affirmatively in favor of such plan.
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4. Default Under Subordinate Loan Documents.
(a) Notice of Subordinate Mortgage Default and Cure Rights. (i) Subordinate Lender will deliver to Senior Lender a copy of each Notice delivered by Subordinate Lender pursuant to the Subordinate Loan Documents within 5 Business Days of sending such Notice to Borrower.
Neither giving nor failing to give a Notice to Senior Lender pursuant to this Section 4(a) will affect the validity of any Notice given by Subordinate Lender to Borrower.
(ii) For a period of 90 days following delivery to Senior Lender of an Enforcement Action Notice, Senior Lender will have the right, but not the obligation, to cure any Subordinate Mortgage Default. However, if such Subordinate Mortgage Default is a non-monetary default and is not capable of being cured within such 90-day period and Senior Lender has commenced and is diligently pursuing such cure to completion, Senior Lender will have such additional period of time as may be required to cure such Subordinate Mortgage Default or until such time, if ever, as Senior Lender takes either of the following actions:
(A) Discontinues its pursuit of any cure.
(B) Delivers to Subordinate Lender Senior Lender’s written consent to the Enforcement Action described in the Enforcement Action Notice.
(iii) Senior Lender will not be subrogated to the rights of Subordinate Lender under the Subordinate Loan Documents as a result of Senior Lender having cured any Subordinate Mortgage Default.
(iv) Subordinate Lender acknowledges that all amounts advanced or expended by Senior Lender in accordance with the Senior Loan Documents or to cure a Subordinate Mortgage Default will be added to and become a part of the Senior Indebtedness and will be secured by the lien of the Senior Mortgage. (b) Subordinate Lender’s Exercise of Remedies After Notice to Senior Lender. (i) In the event of a Subordinate Mortgage Default, Subordinate Lender will not commence any Enforcement Action until 90 days after Subordinate Lender has delivered to Senior Lender an Enforcement Action Notice.
During such 90-day period or such longer period as provided in Section 4(a), Subordinate Lender will be entitled to seek specific performance to enforce covenants and agreements of Borrower relating to income, rent, or affordability restrictions contained in the Regulatory Agreement, subject
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to Senior Lender’s right to cure a Subordinate Mortgage Default set forth in Section 4(a).
(ii) Subordinate Lender may not commence any other Enforcement Action, including any foreclosure action under the Subordinate Loan Documents, until the earlier of:
(A) The expiration of such 90-day period or such longer period as provided in Section 4(a).
(B) The delivery by Senior Lender to Subordinate Lender of Senior Lender’s written consent to such Enforcement Action by
Subordinate Lender.
(iii) Subordinate Lender acknowledges that Senior Lender may grant or refuse consent to Subordinate Lender’s Enforcement Action in Senior Lender’s sole and absolute discretion. At the expiration of such 90-day period or such longer period as provided in Section 4(a) and, subject to Senior Lender’s right to cure set forth in Section 4(a), Subordinate Lender may commence any Enforcement Action.
(iv) Senior Lender may pursue all rights and remedies available to it under the Senior Loan Documents, at law, or in equity, regardless of any Enforcement Action Notice or Enforcement Action by Subordinate Lender. No action or failure to act on the part of Senior Lender in the event of a Subordinate Mortgage Default or commencement of an Enforcement Action will constitute a waiver on the part of Senior Lender of any provision of the Senior Loan Documents or this Agreement. (c) Cross Default. Subordinate Lender acknowledges that a Subordinate Mortgage Default constitutes a Senior Mortgage Default. Accordingly, upon the occurrence of a Subordinate Mortgage Default, Subordinate Lender will be deemed to have actual knowledge of a Senior Mortgage Default. If Subordinate Lender notifies Senior Lender in writing that any Subordinate Mortgage Default of which Senior Lender has received Notice has been cured or waived, as determined by Subordinate Lender in its sole discretion, then provided that Senior Lender has not conducted a sale of the Mortgaged Property pursuant to its rights under the Senior Loan Documents, any Senior Mortgage Default under the Senior Loan Documents arising solely from such Subordinate Mortgage Default will be deemed cured, and the Senior Loan will be reinstated.
5. Default Under Senior Loan Documents.
(a) Notice of Senior Mortgage Default and Cure Rights.
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(i) Senior Lender will deliver to Subordinate Lender a copy of any Notice sent by Senior Lender to Borrower of a Senior Mortgage Default within 5 Business Days of sending such Notice to Borrower. Failure of Senior Lender to send Notice to Subordinate Lender will not prevent the exercise of Senior Lender’s rights and remedies under the Senior Loan Documents. (ii) Subordinate Lender will have the right, but not the obligation, to cure any monetary Senior Mortgage Default within 30 days following the date of such Notice. During such 30-day period Senior Lender will be entitled to continue to pursue its remedies under the Senior Loan Documents. (iii) Subordinate Lender may, within 90 days after the date of the Notice, cure a non-monetary Senior Mortgage Default if during such 90-day period, Subordinate Lender keeps current all payments required under the Senior Loan Documents. If such a non-monetary Senior Mortgage Default creates an unacceptable level of risk relative to the Mortgaged Property, or Senior Lender’s secured position relative to the Mortgaged Property, as determined by Senior Lender in its sole discretion, then during such 90-day period Senior Lender may exercise all available rights and remedies to protect and preserve the Mortgaged Property and the Rents, revenues and other proceeds from the Mortgaged Property.
(iv) All amounts paid by Subordinate Lender to Senior Lender to cure a Senior Mortgage Default will be deemed to have been advanced by Subordinate Lender pursuant to, and will be secured by the lien of, the Subordinate Mortgage. Notwithstanding anything in this Section 5(a) to the contrary, Subordinate Lender’s right to cure any Senior Mortgage Default will terminate immediately upon the occurrence of any Bankruptcy Proceeding. (b) Release of Mortgaged Property.
(i) Subordinate Lender consents to and authorizes any future release by Senior Lender of all or any portion of the Mortgaged Property from the lien, operation, and effect of the Senior Loan Documents. Subordinate Lender waives to the fullest extent permitted by law, all equitable or other rights it may have in connection with the release of all or any portion of the Mortgaged Property, including any right to require Senior Lender to do any of the following:
(A) To conduct a separate sale of any portion of the Mortgaged Property.
(B) To exhaust its remedies against all or any portion of the Mortgaged Property or any combination of portions of the Mortgaged Property or any other collateral for the Senior Indebtedness.
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(C) To proceed against Borrower, any other party that may be liable for any of the Senior Indebtedness (including any general partner of Borrower if Borrower is a partnership), all or any portion of the Mortgaged Property or combination of portions of the Mortgaged Property or any other collateral, before proceeding against all or such portions or combination of portions of the Mortgaged Property as Senior Lender determines. Subordinate Lender waives to the fullest extent permitted by law any and all benefits under California Civil Code Sections 2845, 2849 and 2850.
(ii) Subordinate Lender consents to and authorizes, at the option of Senior Lender, the sale, either separately or together, of all or any portion of the Mortgaged Property. Subordinate Lender acknowledges that without Notice to Subordinate Lender and without affecting any of the provisions of this Agreement, Senior Lender may do any of the following:
(A) Extend the time for or waive any payment or performance under the Senior Loan Documents.
(B) Modify or amend in any respect any provision of the Senior Loan Documents.
(C) Modify, exchange, surrender, release, and otherwise deal with any additional collateral for the Senior Indebtedness.
(c) Termination Upon Foreclosure. The lien of the Subordinate Loan Documents will automatically terminate upon the acquisition by Senior Lender or by a third-party purchaser of title to the Mortgaged Property pursuant to a foreclosure of, deed in lieu of foreclosure, or trustee’s sale or other exercise of a power of sale or similar disposition under the Senior Mortgage.
6. Conflicts. If there is any conflict or inconsistency between the terms of the Subordinate Loan Documents and the terms of this Agreement, then the terms of this Agreement will control. Borrower acknowledges that the terms and provisions of this Agreement will not, and will not be deemed to do any of the following:
(a) Extend Borrower’s time to cure any Senior Mortgage Default or Subordinate Mortgage Default.
(b) Give Borrower the right to receive notice of any Senior Mortgage Default or Subordinate Mortgage Default, other than that, if any, provided, respectively under the Senior Loan Documents or the Subordinate Loan Documents. (c) Create any other right or benefit for Borrower as against Senior Lender or Subordinate Lender.
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7. Rights and Obligations of Subordinate Lender Under the Subordinate Loan Documents and of Senior Lender under the Senior Loan Documents. (a) Insurance.
(i) All requirements pertaining to insurance under the Subordinate Loan Documents (including requirements relating to amounts and types of coverages, deductibles and special endorsements) will be deemed satisfied if Borrower complies with the insurance requirements under the Senior Loan Documents and of Senior Lender.
(ii) All original policies of insurance required pursuant to the Senior Loan Documents will be held by Senior Lender.
(iii) Nothing in this Section 7(a) will preclude Subordinate Lender from requiring that it be named as a mortgagee and loss payee, as its interest may appear, under all policies of property damage insurance maintained by Borrower with respect to the Mortgaged Property, provided such action does not affect the priority of payment of Loss Proceeds, or that Subordinate Lender be named as an additional insured under all policies of liability insurance maintained by Borrower with respect to the Mortgaged Property.
(b) Condemnation or Casualty.
In the event of a Condemnation or a Casualty, the following provisions will apply:
(i) The rights of Subordinate Lender (under the Subordinate Loan Documents or otherwise) to participate in any proceeding or action relating to a Condemnation or a Casualty, or to participate or join in any settlement of, or to adjust, any claims resulting from a Condemnation or a Casualty, will be and remain subordinate in all respects to Senior Lender’s rights under the Senior Loan Documents, and Subordinate Lender will be bound by any settlement or adjustment of a claim resulting from a Condemnation or a Casualty made by Senior Lender.
(ii) All Loss Proceeds will be applied either to payment of the costs and expenses of Restoration or to payment on account of the Senior Indebtedness, as and in the manner determined by Senior Lender in its sole discretion; provided however, Senior Lender agrees to consult with Subordinate Lender in determining the application of Casualty proceeds.
In the event of any disagreement between Senior Lender and Subordinate Lender over the application of Casualty proceeds, the decision of Senior Lender, in its sole discretion, will prevail.
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(iii) If Senior Lender holds Loss Proceeds, or monitors the disbursement of Loss Proceeds, Subordinate Lender will not do so. Nothing contained in this Agreement will be deemed to require Senior Lender to act for or on behalf of Subordinate Lender in connection with any Restoration or to hold or monitor any Loss Proceeds in trust for or otherwise on behalf of Subordinate Lender, and all or any Loss Proceeds may be commingled with any funds of Senior Lender.
(iv) If Senior Lender elects to apply Loss Proceeds to payment on account of the Senior Indebtedness, and if the application of such Loss Proceeds results in the payment in full of the entire Senior Indebtedness, any remaining Loss Proceeds held by Senior Lender will be paid to Subordinate Lender unless another party has asserted a claim to the remaining Loss Proceeds.
(c) Modification of Subordinate Loan Documents. Subordinate Lender agrees that, until the principal of, interest on and all other amounts payable under the Senior Loan Documents have been paid in full, it will not, without the prior written consent of Senior Lender, increase the amount of the Subordinate Loan, increase the required payments due under the Subordinate Loan, decrease the term of the Subordinate Loan, increase the interest rate on the Subordinate Loan, or otherwise amend the Subordinate Loan terms in a manner that creates an adverse effect upon Senior Lender under the Senior Loan Documents. If Subordinate Lender either (i) amends the Subordinate Loan Documents in the manner set forth above or (ii) assigns the Subordinate Loan without Senior Lender’s consent, then such amendment or assignment will be void ab initio and of no effect whatsoever. (d) Modification of Senior Loan Documents. Senior Lender may amend, waive, postpone, extend, renew, replace, reduce or otherwise modify any provisions of the Senior Loan Documents without the necessity of obtaining the consent of or providing Notice to Subordinate Lender, and without affecting any of the provisions of this Agreement. Notwithstanding the foregoing, Senior Lender may not modify any provision of the Senior Loan Documents that increases the Senior Indebtedness, except for increases in the Senior Indebtedness that result from advances made by Senior Lender to protect the security or lien priority of Senior Lender under the Senior Loan Documents or to cure defaults under the Subordinate Loan Documents.
(e) Commercial or Retail Leases. If requested, Subordinate Lender will enter into attornment and non-disturbance agreements with all tenants under commercial or retail Leases, if any, to whom Senior Lender has granted attornment and nondisturbance, on the same terms and conditions given by Senior Lender. (f) Consent Rights. Whenever the Subordinate Loan Documents give Subordinate Lender approval or consent rights with respect to any matter, and a right of approval or consent for the same or substantially the same matter is also granted
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to Senior Lender pursuant to the Senior Loan Documents or otherwise, Senior Lender’s approval or consent or failure to approve or consent will be binding on Subordinate Lender. None of the other provisions of Section 7 are intended to be in any way in limitation of the provisions of this Section 7(f). (g) Escrows. Except as provided in this Section 7(g), and regardless of any contrary provision in the Subordinate Loan Documents, Subordinate Lender will not collect any escrows for any cost or expense related to the Mortgaged Property or for any portion of the Subordinate Indebtedness. However, if Senior Lender is not collecting escrow payments for one or more Impositions, Subordinate Lender may collect escrow payments for such Impositions; provided that all payments so collected by Subordinate Lender will be held in trust by Subordinate Lender to be applied only to the payment of such Impositions.
(h) Certification. Within 10 days after request by Senior Lender, Subordinate Lender will furnish Senior Lender with a statement, duly acknowledged and certified setting forth the then-current amount and terms of the Subordinate Indebtedness, confirming that there exists no default under the Subordinate Loan Documents (or describing any default that does exist), and certifying to such other information with respect to the Subordinate Indebtedness as Senior Lender may request.
8. Refinancing. Subordinate Lender agrees that its agreement to subordinate under this Agreement will extend to any new mortgage debt which is for the purpose of refinancing all or any part of the Senior Indebtedness (including reasonable and necessary costs associated with the closing and/or the refinancing, and any reasonable increase in proceeds for rehabilitation in the context of a preservation transaction). All terms and covenants of this Agreement will inure to the benefit of any holder of any such refinanced debt, and all references to the Senior Loan Documents and Senior Lender will mean, respectively, the refinance loan documents and the holder of such refinanced debt.
9. Governmental Powers. Nothing in this Agreement is intended, nor will it be construed, to in any way limit the exercise by Subordinate Lender of its governmental powers (including police, regulatory and taxing powers) with respect to Borrower or the Mortgaged Property to the same extent as if it were not a party to this Agreement or the transactions contemplated by this Agreement.
10. Notices.
(a) Any Notice required or permitted to be given pursuant to this Agreement will be in writing and will be deemed to have been duly and sufficiently given if (i) personally delivered with proof of delivery (any Notice so delivered will be deemed to have been received at the time so delivered), or (ii) sent by a national overnight courier service (such as FedEx) designating earliest available delivery (any Notice so delivered will be deemed to have been received on the next Business Day following receipt by the courier), or (iii) sent by United States registered or certified mail, return receipt requested, postage prepaid, at a post
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office regularly maintained by the United States Postal Service (any Notice so sent will be deemed to have been received on the date of delivery as confirmed by the return receipt), addressed to the respective parties as follows:
Notices intended for Senior Lender will be addressed to:
JPMORGAN CHASE BANK, N.A.
P.O. Box 9176
Coppell, Texas 75019-9011
Attention: Post-Closing
Notices intended for Subordinate Lender will be addressed to:
HOUSING AUTHORITY OF THE CITY OF CORONA
400 S Vicentia Ave
Corona, CA 92882
Attention:
(b) Any party, by Notice given pursuant to this Section 10, may change the person or persons and/or address or addresses, or designate an additional person or persons or an additional address or addresses, for its Notices, but Notice of a change of address will only be effective upon receipt. Neither party will refuse or reject delivery of any Notice given in accordance with this Section 10.
11. Reserved.
12. Miscellaneous Provisions.
(a) Assignments/Successors. This Agreement will be binding upon and will inure to the benefit of the respective legal successors and permitted assigns of the parties to this Agreement. Without prior notice to or the consent of the Subordinate Lender or the Borrower, the Senior Lender may freely transfer or assign the Senior Loan and the Senior Loan Documents, including this Agreement, in whole or in part, and the Subordinate Lender acknowledges and agrees that any future legal holder of the Senior Note will automatically be a legal successor and permitted assignee of Senior Lender hereunder, without the necessity of any further action or instrument. No other party will be entitled to any benefits under this Agreement, whether as a third-party beneficiary or otherwise. (b) No Partnership or Joint Venture. Nothing in this Agreement or in any of the Senior Loan Documents or Subordinate Loan Documents will be deemed to constitute Senior Lender as a joint venturer or partner of Subordinate Lender. (c) Further Assurances. Upon Notice from Senior Lender, Subordinate Lender will execute and deliver such additional instruments and documents, and will take
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such actions, as are required by Senior Lender to further evidence or implement the provisions and intent of this Agreement.
(d) Amendment. This Agreement may be amended, changed, modified, altered or terminated only by a written instrument signed by the parties to this Agreement or their successors or assigns.
(e) Governing Law. This Agreement will be governed by the laws of the State in which the Land is located.
(f) Severable Provisions. If any one or more of the provisions contained in this Agreement, or any application of any such provisions, is invalid, illegal, or unenforceable in any respect, the validity, legality, enforceability, and application of the remaining provisions contained in this Agreement will not in any way be affected or impaired.
(g) Term. The term of this Agreement will commence on the date of this Agreement and will continue until the earliest to occur of the following events:
(i) The payment of all the Senior Indebtedness; provided that this Agreement will be reinstated in the event any payment on account of the Senior Indebtedness is avoided, set aside, rescinded or repaid by Senior Lender. (ii) The payment of all the Subordinate Indebtedness other than by reason of payments which Subordinate Lender is obligated to remit to Senior Lender pursuant to this Agreement.
(iii) The acquisition by Senior Lender or by a third-party purchaser of title to the Mortgaged Property pursuant to a foreclosure of, deed in lieu of foreclosure, or trustee’s sale or other exercise of a power of sale or similar disposition under the Senior Mortgage.
(iv) With the prior written consent of Senior Lender, without limiting the provisions of Section 4(b)(iv), the acquisition by Subordinate Lender of title to the Mortgaged Property subject to the Senior Mortgage pursuant to a foreclosure, or a deed in lieu of foreclosure, of (or the exercise of a power of sale under) the Subordinate Mortgage.
(h) Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument.
(i) Entire Agreement. This Agreement represents the entire understanding and agreement between the parties regarding the matters addressed in this Agreement, and will supersede and cancel any prior agreements regarding such matters.
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(j) Authority. Each person executing this Agreement on behalf of a party to this Agreement represents and warrants that such person is duly and validly authorized to do so on behalf of such party with full right and authority to execute this Agreement and to bind such party with respect to all of its obligations under this Agreement.
(k) No Waiver. No failure or delay on the part of any party to this Agreement in exercising any right, power, or remedy under this Agreement will operate as a waiver of such right, power, or remedy, nor will any single or partial exercise of any such right, power or remedy preclude any other or further exercise of such right, power, or remedy or the exercise of any other right, power or remedy under this Agreement.
(l) Remedies. Each party to this Agreement acknowledges that if any party fails to comply with its obligations under this Agreement, the other parties will have all rights available at law and in equity, including the right to obtain specific performance of the obligations of such defaulting party and injunctive relief.
13. Attached Riders. The following Riders are attached to this Agreement: Regualtory Agreement Primes Mortgage
14. Attached Exhibits. The following Exhibits, if marked with an “X” in the space provided, are attached to this Agreement:
|X| Exhibit A Description of the Land (required)
| | Exhibit B Ground Lease Description (if applicable)
[SIGNATURE AND ACKNOWLEDGMENT PAGES FOLLOW]
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IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first above written.
SENIOR LENDER:
JPMORGAN CHASE BANK, N.A., a national
banking association
By: ______________________________________ Name:
Authorized Signatory
ACKNOWLEDGMENT
State of
County of
On ________________________ before me, _________________________________________, (Insert Name and Title of the Officer)
personally appeared ___________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of _______________ that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature____________________________________(Seal)
A notary public or other officer
completing this certificate verifies
only the identity of the individual who
signed the document to which this
certificate is attached, and not the
truthfulness, accuracy, or validity of
that document.
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SUBORDINATE LENDER:
CITY OF CORONA HOUSING AUTHORITY,
a public body corporate and politic
By: _______________________________
Jacob Ellis
Executive Director
Attest:
By: _______________________________
Sylvia Edwards
Authority Secretary
ACKNOWLEDGMENT
State of
County of
On ________________________ before me, _________________________________________, (Insert Name and Title of the Officer)
personally appeared ___________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature____________________________________(Seal)
A notary public or other officer
completing this certificate verifies
only the identity of the individual who
signed the document to which this
certificate is attached, and not the
truthfulness, accuracy, or validity of
that document.
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CONSENT OF BORROWER
Borrower acknowledges receipt of a copy of this Subordination Agreement, dated April ___, 2026, by and between , JPMORGAN CHASE BANK, N.A. and HOUSING AUTHORITY OF THE CITY OF CORONA and consents to the agreement of the parties set forth in this Agreement.
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NCRC CDR LLC, a California limited liability
company
By: NATIONAL COMMUNITY
RENAISSANCE OF CALIFORNIA, a
California nonprofit public benefit
corporation, its sole member
By:_________________________________ Name: Kevin Lim
Title: Chief Financial Officer
ACKNOWLEDGMENT
State of
County of
On ________________________ before me, _________________________________________, (Insert Name and Title of the Officer)
personally appeared Kevin Lim, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature____________________________________(Seal)
A notary public or other officer
completing this certificate verifies
only the identity of the individual who
signed the document to which this
certificate is attached, and not the
truthfulness, accuracy, or validity of
that document.
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RIDER TO SUBORDINATION AGREEMENT – GOVERNMENTAL ENTITY
REGULATORY AGREEMENT PRIMES MORTGAGE
(Revised 7-23-2025)
The following changes are made to the Agreement which precedes this Rider:
A. Section 1 is modified as follows:
(A) The definition of Subordinate Loan Documents is deleted in its entirety and restated as follows:
“Subordinate Loan Documents” means the Subordinate Mortgage, the Subordinate Note, the Subordinate Loan Agreement and all other documents at any time evidencing, securing, guaranteeing, or otherwise delivered in connection with the Subordinate Indebtedness, as such documents may be amended; provided, however, that the Regulatory Agreement is specifically excluded from the definition of Subordinate Loan Documents.
(B) The following definitions are added:
“First Transfer” has the meaning set forth in Section 11 of this Agreement. “Foreclosure Action” has the meaning set forth in Section 11 of this Agreement. “Regulatory Agreement Default” means any act, failure to act, event, condition, or occurrence which (but for any contrary provision of this Agreement) is a default under the Regulatory Agreement, which continues beyond the giving of notice and expiration of any applicable cure period as provided in the Regulatory Agreement.
“Regulatory Agreement Enforcement Action” means the exercise of any rights or remedies under the Regulatory Agreement following a Regulatory Agreement Default.
“Regulatory Agreement Enforcement Action Notice” means a Notice given from Subordinate Lender to Senior Lender following one or more Regulatory Agreement Default(s), setting forth in reasonable detail the Regulatory Agreement Default(s) and the Regulatory Agreement Enforcement Actions proposed to be taken by Subordinate Lender.
B. Section 11 is deleted and replaced with the following:
11. Regulatory Agreement.
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(a) Representations and Warranties.
(i) Subordinate Lender represents and warrants that each of the following is true with respect to the Regulatory Agreement as of the date of this Agreement:
(A) Subordinate Lender is the owner and holder of the
Regulatory Agreement.
(B) No Regulatory Agreement Default has occurred and is continuing.
(ii) Without the prior written consent of Senior Lender, Subordinate Lender will not do any of the following:
(A) Pledge, assign, transfer, convey, or sell any interest in the Regulatory Agreement.
(B) Amend the Regulatory Agreement in any manner.
(b) Agreement to Subordinate.
(i) The Senior Indebtedness is and will at all times continue to be subject and subordinate in priority to the Regulatory Agreement.
Each of the Senior Loan Documents is, and will at all times remain, subject and subordinate in all respects to the lien of the Regulatory Agreement. Therefore, following a foreclosure under the Senior Mortgage, or the acceptance by Senior Lender of a deed to the Mortgaged Property in lieu of such a foreclosure (each, a “Foreclosure Action”), the Regulatory Agreement will survive and the successor owner of the Mortgaged Property will acquire the Mortgaged Property subject to the Regulatory Agreement, except that, notwithstanding anything to the contrary set forth in the Regulatory Agreement:
(A) Senior Lender (or its nominee) will have the right, without further consent of Subordinate Lender, to commence a
Foreclosure Action and transfer (or cause the transfer of) the Mortgaged Property pursuant to a Foreclosure Action and, following such Foreclosure Action, in the event Senior Lender (or its nominee) acquires title to the Mortgaged Property, transfer the Mortgaged Property to any thirdparty (the "First Transfer").
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(B) No limitation on creation of indebtedness or creation of any lien securing indebtedness will apply to any third-party acquiring title to the Mortgaged Property in connection with a Foreclosure Action or the First Transfer.
(C) Any remedies in the Regulatory Agreement, other than specific performance or injunctive relief, will terminate after the Foreclosure Action.
(ii) Subordinate Lender agrees that:
(A) Subordinate Lender will look to Senior Lender (or its nominee) and any third-party acquiring title to the
Mortgaged Property in connection with a Foreclosure
Action or the First Transfer to perform the obligations of owner of the Mortgaged Property accruing only from and
after the date of foreclosure or possession. Subordinate Lender will not hold Senior Lender (or its nominee) or any third-party acquiring title to the Mortgaged Property in connection with a Foreclosure Action or the First Transfer responsible for the past actions or inactions of Borrower or any prior owner of the Mortgaged Property.
(B) Neither Senior Lender nor any third-party acquiring title to the Mortgaged Property in connection with a Foreclosure Action or the First Transfer will be obligated to pay, or otherwise have any liability for or in connection with, (1) any rents or other payments received by Borrower prior to foreclosure in excess of what Borrower is permitted to
charge and receive under the Regulatory Agreement or (2) any claim by Subordinate Lender for liquidated damages, for indemnification or for damages in connection with any breach of any term or provision of the Regulatory
Agreement first occurring prior to the date upon which
Senior Lender or such third-party acquired title to the Mortgaged Property.
JAMIER\01200.20005\10320998.2
(c) Notice of Regulatory Agreement Default and Cure Rights. (i) Subordinate Lender will deliver to Senior Lender a copy of each Notice of a Regulatory Agreement Default delivered by
Subordinate Lender pursuant to the Regulatory Agreement within 5 Business Days of sending such Notice to Borrower. Neither giving nor failing to give a Notice to Senior Lender pursuant to this Section 11(c) will affect the validity of any Notice given by Subordinate Lender to Borrower.
(ii) Senior Lender will have the right, but not the obligation, to cure any Regulatory Agreement Default, until such time, if ever, as Senior Lender delivers to Subordinate Lender written consent to proceed with the Regulatory Agreement Enforcement Action described in the Regulatory Agreement Enforcement Action Notice.
(iii) Subordinate Lender acknowledges that all amounts advanced or expended by Senior Lender in accordance with the Senior Loan Documents or to cure a Regulatory Agreement Default will be added to and become a part of the Senior Indebtedness and will be secured by the lien of the Senior Mortgage.
(d) Exercise of Remedies following Notice of Regulatory Agreement Enforcement Action.
(i) In the event of a default under the Regulatory Agreement, Subordinate Lender will not commence any Regulatory Agreement Enforcement Action until 90 days after Subordinate Lender has delivered to Senior Lender a Regulatory Agreement Enforcement Action Notice. Notwithstanding the forgoing, at all times following delivery to Senior Lender of a Regulatory Agreement Enforcement Action Notice, Subordinate Lender may exercise only the remedies of specific performance, injunctive relief, or the replacement of the property manager, subject to Senior Lender’s right to cure a Regulatory Agreement Default set forth in Section 11(c).
(ii) Subject to Senior Lender’s right to cure a Regulatory Agreement Default set forth in Section 11(c), Subordinate Lender may not commence any other Regulatory Agreement Enforcement Action, until the earlier of:
JAMIER\01200.20005\10320998.2
(A) The expiration of the 90-day period in Section 11(d)(i) above.
(B) The delivery by Senior Lender to Subordinate Lender of Senior Lender’s written consent to such Regulatory
Agreement Enforcement Action by Subordinate Lender.
(iii) Subordinate Lender acknowledges that Senior Lender may grant or refuse consent to Subordinate Lender’s Regulatory Agreement Enforcement Action in Senior Lender’s sole and absolute discretion.
(iv) Senior Lender may pursue all rights and remedies available to it under the Senior Loan Documents, at law, or in equity, regardless of any Regulatory Agreement Enforcement Action Notice or Regulatory Agreement Enforcement Action by Subordinate
Lender. No action or failure to act on the part of Senior Lender in the event of a Regulatory Agreement Default or commencement of any enforcement action with respect to such a default will constitute a waiver on the part of Senior Lender of any provision of the Senior Loan Documents or this Agreement.
(e) Operating Covenants. With respect to the operating covenants under the Regulatory Agreement, if any, Subordinate Lender acknowledges and agrees as follows:
(i) reserve requirements imposed by the Regulatory Agreement, if any, will be deferred so long as adequate deposits to the same or similar reserves required by the Senior Loan Documents are made by Borrower;
(ii) insurance requirements imposed by the Regulatory Agreement, if any, will be deemed satisfied if Borrower complies with the insurance requirements under the Senior Loan Documents and of Senior Lender and all Loss Proceeds will be paid to Senior Lender and applied in accordance with Section 7(b) of this Agreement; and
(iii) Subordinate Lender will have no claim to or security interest in reserve funds or accounts as required under the Senior Loan Documents, which will be owned and controlled as set forth in the Senior Loan Documents; provided however that this section will not be construed to allow Borrower or its partners or members, as applicable, to distribute any amount remaining in such reserve funds or accounts as part of a sale or refinancing transaction prior to the expiration of the Regulatory Agreement.
JAMIER\01200.20005\10320998.2
(f) Written Statement. Within 30 days after a written request by Senior Lender, Subordinate Lender will furnish Senior Lender with a statement confirming that no Regulatory Agreement Default exists (or describing any default that does exist).
(g) Cross Default. Borrower and Subordinate Lender acknowledge that a Regulatory Agreement Default constitutes a Senior Mortgage Default.
Accordingly, upon the occurrence of a Regulatory Agreement Default, Subordinate Lender will be deemed to have actual knowledge of a Senior Mortgage Default. If Subordinate Lender notifies Senior Lender in writing that a Regulatory Agreement Default of which Senior Lender has received Notice has been cured or waived, then provided that Senior Lender has not conducted a sale of the Mortgaged Property pursuant to its rights under the Senior Loan Documents, any Senior Mortgage Default under the Senior Loan Documents arising solely from such Subordinate Mortgage Default will be deemed cured, and the Senior Loan will be reinstated.
Subordination Agreement – Governmental Entity Page A-1
JAMIER\01200.20005\10320998.2
EXHIBIT A
LEGAL DESCRIPTION
Corona Del Rey Location Map
Agenda Item 9.1
Corona Del Rey Amended Agreements
Ask
That the City Council approve
1. Amended and Restated Promissory Note between National Community Renaissance of California and the City of Corona Housing Authority
2. Second Amendment to Operation and Maintenance Agreement between National Community Renaissance of California and the City of Corona Housing Authority
3. Assignment of Agreement between National Community Renaissance of California, NCRC CDR LLC, and the City of Corona Housing Authority
4. Subordination Agreement between JPMorgan Chase Bank and the City of Corona Housing Authority That the Corona Housing Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions
The Site
The Site
Corona Del Rey is comprised of 160
two-bedroom affordable housing
units
This project serves low to moderate
income families with incomes at or
below the Area Median Income
(AMI) limits below:
96 units at 80% AMI
32 units at 60% AMI
32 units at 50% AMI
Background
In 1996, the City entered into an affordable housing development agreement with the Southern California Housing Development Corporation, now known as National Community Renaissance of California (NCRC) for the acquisition and rehabilitation of Corona Del Rey The term of affordability under the affordable housing agreement is in perpetuity On February 4, 1998, the City approved a construction loan in the amount of $1.2 million to provide gap financing to complete necessary rehabilitation repairs on Corona Del Rey Interest on the construction loan was 15% simple interest. A total of $347,936 was disbursed from the $1.2 million construction loan to NCRC. Interest accrued to date brings the current loan balance to $1.7 million
Corona Del Rey was built in the mid-1960s. Due to the age of these apartments, ongoing maintenance and repair needs have impacted the cashflow of this project
For the past several years, NCRC has been assessing short-term and long-term property needs In January 2020, NCRC met with City staff to discuss rehabilitation and financing plans for their existing two housing developments and was seeking to partner with the City on its rehabilitation effort Discussions between the City and NCRC included renegotiating the City’s loan terms and applying for State grant funds
On October 14, 2021, State HCD issued a grant award allocating $8 million to renovate NCRC’s two Corona Properties: Corona Del Rey (160 units) and Corona De Oro (72 units) State Rehab Grant
Grand Re-Opening
• A total of $5.5 million of the $8 million State Grant was used to rehabilitate Corona Del Rey and $2.5 million
was used to rehabilitate Corona De Oro
• The $5.5 million in State funds was combined with
approximately $8.6 million in other public and private
funds secured by NCRC to complete the substantial
rehabilitation work at Corona Del Rey
• The City partnered with NCRC, the County, and the
State to celebrate the Grand Re-Opening on June 18,
2025
Amended Agreements
The long-term plan for NCRC has been to secure tax credit financing to pay off other construction loans and bridge loans as well as to renegotiate the City’s loan terms
These discussions have been ongoing with the City since 2020. Due to demands for tax credits and rules favoring the production of new units, NCRC was unsuccessful in securing tax credits but remained vigilant in seeking alternative funding opportunities
NCRC has identified long-term financing and is in the process of finalizing approval for a Freddie Mac permanent loan from JPMorgan Chase Bank of approximately $12 million, depending upon final approval The proceeds of the new permanent loan will be used to pay off existing construction and bridge loans, a small County HOME funded loan, as well as cover closing legal, title and financing costs associated with the new loan The permanent financing is consistent with discussions with the City over the past several years and is a milestone achievement between the City and NCRC to preserve Corona Del Rey in perpetuity as a reliable source of quality affordable housing
Amended Agreements
Amended and Restated $1,200,000 Promissory Note
Extend maturity date from January 31, 2000, to December 31, 2078 to align with the maturity date for the County ARPA loan and establish a maturity date after the maturity of permanent loan from JPMorgan Chase Bank Revise interest rate from fifteen percent (15%) to three percent (3%) simple interest per annum to align with affordable housing industry standards
Assignment of Agreement
Assign City loan documents from NCRC to NCRC CDR LLC, a newly formed Single Asset Entity (SAE). SAE model is required by permanent lender and is common in the affordable housing industry Subordination Agreement with JPMorgan Chase Bank
Subordination of City loan to the new JPMorgan Chase Bank Loan is a requirement of Freddie Mac City regulatory agreement for affordability in perpetuity will remain senior to the new JPMorgan loan and County ARPA loan will remain junior to the City loan
Amended Agreements
Second Amendment to Operation and Maintenance Agreement • Revised Net Operating Income Distribution:
• 50% to the City; 25% to the County; and 25% to the NCRC to repay any project loans or administrative expenses
• These changes comply with Freddie Mac and align closer to Affordable Housing Industry Standards • Eliminate the $4,000 per month administration fee paid to NCRC and maintain existing capitalized reserves in the Capital Replacement Reserve Account with total annual deposits of $48,000 as required by Chase Bank and Freddie Mac. NCRC draw approval rights held by Chase Bank and City • Establish a new Supplemental Replacement Reserve Account. Upon funding of Chase Loan, NCRC to deposit approximately $830,894 into new Supplemental Replacement Reserve Account. NCRC draw approval rights held by City exclusively
Reserve Accounts
Existing Operations & Maintenance Agreement Accounts
Capital Replacement Reserve Account $ 78,992.46
Operating Reserve Account $652,418.60
Debt Service Account $178,475.74
Total $909,886.80
Amended Operations & Maintenance Reserve Accounts
New Supplemental Replacement Reserve Account
Deposit of approximately $830,894 upon funding of Chase Loan (combines Operating Reserve and Debt Service Account) $820,000 Required Reserve Threshold
Capital Replacement Reserve Account
$78,992 balance to remain
Annual required deposit of $48,000 ($300 per unit)
Allocation of Net Operating Income (aka Residual Receipts) Net Operating Income defined as all income from the project remaining “after” payment of senior debt, required capital reserve account deposits, and necessary operating expenses of project Distribution: 50% to City for City Loan, 25% to County for County Loan and 25% to NCRC to repay any owner loans or other project expenses Page 452 of 707
Ask
That the City Council approve
1. Amended and Restated Promissory Note between National Community Renaissance of California and the City of Corona Housing Authority
2. Second Amendment to Operation and Maintenance Agreement between National Community Renaissance of California and the City of Corona Housing Authority
3. Assignment of Agreement between National Community Renaissance of California, NCRC CDR LLC, and the City of Corona Housing Authority
4. Subordination Agreement between JPMorgan Chase Bank and the City of Corona Housing Authority That the Corona Housing Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions
DATE: 04/15/2026
TO: Honorable Mayor and City Council Members
FROM: Economic Development Department
2026-123
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE
EXECUTIVE SUMMARY:
This staff report provides an update on progress made implementing the City’s Economic Development Strategic Plan.
RECOMMENDED ACTION:
That the City Council receive an update and provide feedback on the progress and implementation of the Economic Development Strategic Plan.
BACKGROUND & HISTORY:
From April 2021 to August 2022, the City of Corona underwent a planning process to develop a five-year Economic Development Strategic Plan (the Plan) to guide the City’s economic development efforts. Following extensive community outreach and a thorough market analysis, the Plan was presented to the Council for adoption in August 2022. The Plan is framed around six strategic goals:
1. Elevate Entrepreneurs and Small Businesses
2. Facilitate Business Expansion and Retention
3. Prepare and Support Our Residents for Jobs of the Future
4. Facilitate Planning and Development
5. Encourage Placemaking and Community
6. Enhance Communication and Connection
ANALYSIS:
This update will provide an overview of Economic Development Department activities for 2025 and an overview of the local economy. The update will also provide a preview of new initiatives that the Economic Development Department will be implementing over the next year.
FINANCIAL IMPACT:
There is no financial impact associated with approval of the recommended action.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common-sense exemption that CEQA applies only to projects that have the potential for causing significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action is to receive and file the staff’s presentation. Therefore, no environmental analysis is required.
PREPARED BY: JOEL BELDING, ECONOMIC DEVELOPMENT DIRECTOR REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:
1. Exhibit 1 – Economic Development Update Presentation
April 15, 2026 Page 456 of 707
Director Manager Analyst Assistant
OFFICE OF ECONOMIC DEVELOPMENT
Administrator Administrator
ECONOMIC DEVELOPMENT UPDATE
Adopted September 2022
ECONOMIC DEVELOPMENT UPDATE
ECONOMIC DEVELOPMENT UPDATE
We invested directly in the people who power Corona’s economy through:
ECONOMIC DEVELOPMENT UPDATE
Economic Development
Strategic Plan actions
are complete or in
progress.
100%
Properties were
successfully acquired
in Downtown.
23 3
30+
Companies
supported through
site selection
and expansion.
200+
Businesses assisted
through visitations,
outreach, and
technical support.
Three new tenants
signed at the Hub.
Additional tenants
coming soon.
ECONOMIC DEVELOPMENT UPDATE
New retailers opened, signed or
approved, including AR Mart,
Claro’s, Handels Ice Cream, Ike’s
Love and Sandwiches, KeKe’s Café,
Northgate, and many more.
ECONOMIC DEVELOPMENT UPDATE
Promoted businesses through video campaigns with 581,000+ views Expanded Shop Dine Corona and audience engagement by 90% 300% rise in social media followers
ECONOMIC DEVELOPMENT UPDATE
Meet Chef Jeff: "To
see the city showing
love, the community
pulling up, and people
sharing our story... it's
a blessing we don't
take lightly... From
me and my wife –
thank you for
believing in us and
supporting our
dream"
ECONOMIC DEVELOPMENT UPDATE
Testimonial
"Thank you for reaching out. I truly appreciate the City of Corona and the Business Spotlight.
After the video, Messi Street Original Fast Food has seen an increase in customer traffic and many new faces from the community. It really boosted our visibility and brought new energy to our business.
Our location was originally on Front Street, and after the bridge was built, access became more limited, making it harder for customers to reach us. The spotlight helped bring attention back and drive customers our way despite that.“ — Messi Street Food
• Restaurant Guide
• Experience Corona App
• Dining
• Community Calendar
• Lodging
• And more…
ECONOMIC DEVELOPMENT UPDATE
ECONOMIC DEVELOPMENT UPDATE
• Find these on our
website or the App
Store
ECONOMIC DEVELOPMENT UPDATE
Opened Circle City Tavern and
the Wine Down
Signed three new tenants,
with more on the way
Completed Food Hall design
for construction this summer
Assembling experienced
Operator and Management team
ECONOMIC DEVELOPMENT UPDATE
CORONA RETAIL TRADE AREA
18
ECONOMIC DEVELOPMENT UPDATE
Population: 161,540
35th largest among all cities in CA
Households: 51,567
Average Household Income: $128,065
Median Home Price: $746,500
Overview
ECONOMIC DEVELOPMENT UPDATE
2025: 85,200 jobs
State Unemployment: 5.6%
Riverside County Unemployment: 6.3%
Corona Unemployment: 4.0%
Employment
ECONOMIC DEVELOPMENT UPDATE
5.9% Industrial, 1.4% decrease
6.3% Office, 2.4% decrease
7.5% Retail, 1.7% increase
Vacancies
ECONOMIC DEVELOPMENT UPDATE
$103,304,139 sales tax in 2025
$102,789,183 sales tax revenue in 2024
+1%
Sales Tax Generation
ECONOMIC DEVELOPMENT UPDATE
5,113 permits issued in 2025
3,984 permits issued in 2024
+28.3%
Development Permit Activity
ECONOMIC DEVELOPMENT UPDATE
#3 Largest city in the County
#2 in Assessed Property Values in
Riverside County
Locally Assessed Value: $30,746,708,000
Assessed Value
Source: California State Board of Equalization
ECONOMIC DEVELOPMENT UPDATE
Innovation Center Programs
Business to Business tools
Enhancing 'Experience Corona'
Citywide Business Incubator
Economic Development Strategic Plan 2.0
For economic growth, community, and
fiscal sustainability.
ECONOMIC DEVELOPMENT UPDATE
Lifelong learning center
Skill development for residents
Opening Summer/Fall 2026
ECONOMIC DEVELOPMENT UPDATE
Provide the services of an incubtor,
but to all businesses, for free, and
personalized to business needs.
ECONOMIC DEVELOPMENT UPDATE
• Find local suppliers and services to
keep Corona money in Corona.
• Streamline operations to improve
business performance.
ECONOMIC DEVELOPMENT UPDATE
29 SWOT Analysis
Council,
Business, &
Community
Input
Maximize
resources for
businesses
Focused on High
Return on
Investment
Economic
Development
Strategic Plan
2.0
DATE: 04/15/2026
TO: Honorable Mayor and City Council Members
FROM: Police Department
2026-139
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
AMEND CORONA MUNICIPAL CODE CHAPTER 10.48 TO INCLUDE ELECTRIC
BICYCLES
EXECUTIVE SUMMARY:
This staff report asks the City Council to provide direction to staff to amend Corona Municipal Code (CMC) Chapter 10.48 to define and regulate electric bicycles (e-bikes), update prohibited riding behavior language and add sidewalk riding restrictions to improve public safety.
RECOMMENDED ACTION:
That the City Council provide direction to staff regarding the preferred language and approach for amending CMC Chapter 10.48.
BACKGROUND & HISTORY:
CMC Chapter 10.48 regulates bicycles but does not mention electric bicycles, which are now defined by California Vehicle Code Section 312.5(a) in three classes based on speed and operation. E-bike collisions in Corona have risen from zero in 2020 to 25 in 2025, with juvenile involvement increasing, while traditional bike collisions remain steady. The CMC's language on prohibited behavior is vague and lacks clear examples of unsafe riding on the roadway and sidewalks.
ANALYSIS:
After reviewing collision data, identifying primary causes of collisions and assessing the community driven complaints regarding e-bikes, staff has identified three amendments to CMC 10.48 to improve e-bike safety in the community. First, the general operational procedures language should be updated to integrate e-bikes, as the current code addresses only traditional bicycles. Second, Section 10.48.130(P) should be amended to enumerate specific prohibited behaviors, replacing vague language with clear prohibitions against intentionally swerving around stopped or slowed traffic, lifting one or more wheels into the air while riding, and riding without a properly fitted helmet when under 18 years of age. Third, Section 10.48.130(I) should be amended to include additional safety requirements when riding on sidewalks where the CMC currently allows it.
The proposed changes will require e-bike operators to:
1. Yield to pedestrians and exercise due caution when riding on sidewalks.
2. Provide an audible signal before overtaking and passing pedestrians on sidewalks.
3. Operate at a maximum speed of 10 MPH on sidewalks, and
4. Where sidewalk riding is allowed, bicycle/e-bike riders must travel in the same direction as vehicular traffic when riding on sidewalks.
FINANCIAL IMPACT:
There is no financial impact associated with the recommended actions.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action is to provide direction to amend Corona Municipal Code and there is no possibility that approving the recommended action will have a significant effect on the environment.
PREPARED BY: JASON PEREZ, POLICE CAPTAIN
REVIEWED BY: ROBERT NEWMAN, CHIEF OF POLICE
ATTACHMENTS:
1. Exhibit 1 – Electric Bicycles CMC 10.48 Presentation
Eric Fox
Police Sergeant
April 15, 2026 Page 491 of 707
That the City Council direct staff to amend the
Corona Municipal Code (CMC) Section 10.48 as
follows:
1. Update bicycle definition & all bicycle
requirements to include E-Bikes
2. Update prohibited behavior language
3. Add additional sidewalk riding safety requirements
1. The Problem:
Safety
Collision data
2. The Solution: CMC updates
3. Pending California legislation
4. What we are doing
5. Benefits of the solution
Pedestrian Safety Vehicle Safety
Rider Safety Passenger Safety
0 0
2 5
18 25
18 22 21
19 22
18 0
5 10
15 20
25 30
2020 2021 2022 2023 2024 2025
E-Bike Traditional
E-Bikes vs. Traditional Bicycles
CVC 312.5(a) Definition: An “electric bicycle” is a bicycle equipped with fully operable pedals and an electric motor that does not exceed 750 watts of power. • Pedal-assist only
• Motor assists to 20mph
• Minimum Age – Any
• Throttle-powered, can
move w/out pedaling
• Motor assists to 20 mph
• Minimum Age – Any
• Pedal-assist only;
• Motor assists to 28 mph,
speedometer required
• Minimum Age – 16 years
Off-Highway Electric Motorcycle
Closer to a 250cc dirtbike rather than an electric bicycle. Designed for offhighway use. Capable of speeds 65+ mph. Currently unlawful to operate on city streets, sidewalks, or bike paths under California Vehicle Code (CVC 436.1) Illegal on all roads and sidewalks
Topic Current Proposed
Apply
CMC to EBikes
Section 10.48.010 - A bicycle is a
device..propelled exclusively by
human power...
Update language to include E-Bikes, where the
current language only addresses traditional
bicycles. Mirror definition in CVC 312.5.
Prohibited
Behaviors
Section 10.48.130 (P) –
Prohibited Behavior
The rider or operator shall not
perform or attempt to perform any
trick riding that is dangerous to
the rider or operator or any other
person.
Prohibited behaviors include, but are not limited to,
the following actions:
(1) Intentionally swerving or riding around
stopped or slowed traffic
(2) Intentionally lifting one or more wheels into
the air while riding
(3) Riding without a properly fitted and
fastened helmet when under the age of 18
Topic Current Proposed
Additional
Sidewalk
Safety
Requirements
Section 10.48.130 (I) - The
rider or operator shall not
operate the bicycle faster than
is reasonably safe and proper.
Add additional safety requirements on sidewalks
1. Yield to pedestrians and exercise due care
2. Provide an audible signal before
overtaking and passing pedestrians
3. Operate at a maximum speed of 10 mph
while on any sidewalk
4. Where sidewalk riding is allowed, bicycle
riders on the sidewalk must travel in the
same direction as vehicular traffic
California
Bill Contents Status
AB 1569 (Davies) Requires E-Bike safety class to park
E-Bike on school campus
• Currently with education and
transportation committees
AB 1614 (Dixon) Prohibits “piggybacking” on bikes
and E-Bikes on a Class 1 bikeway.
• Passed transportation committee
• Currently with the appropriations
committee
AB 1942 (Bauer-Kahan) DMV registration requirement for
class 2 and 3 E-Bikes
• Currently with transportation
committee
AB 2346 (Wilson) 1. Prohibits a person under 16 from
riding faster than 15mph
2. Sets a speed limit of 10mph on
sidewalks statewide
• Passed transportation committee
• Currently with the judiciary committee
1. Sent flyer in all water bills to Corona residents
on E-Bike and E-Motorcycle laws
2. Zero-tolerance on illegal E-Motorcycles and
reckless E-Bike riding
3. Advisement to parents of minors caught riding
illegally
4. E-Bike safety class for parents and children
oFirst class to be held at the PD on May 9th
oSign-up at coronaca.gov/trafficsafetyclass
That the City Council direct staff to amend the
Corona Municipal Code (CMC) Section 10.48 as
follows:
1. Update bicycle definition & all bicycle
requirements to include E-Bikes
2. Update prohibited behavior language
3. Add additional sidewalk riding safety requirements
DATE: 04/15/2026
TO: Honorable Mayor and City Council Members
FROM: Community Services Department
2026-131
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
FISCAL YEAR 2027 PHASE I COMMUNITY EVENTS CO-SPONSORSHIP PROGRAM REQUESTS AND PROPOSED REVISIONS TO THE COMMUNITY EVENTS COSPONSORSHIP PROGRAM POLICY EXECUTIVE SUMMARY:
This staff report asks City Council to review and approve the Fiscal Year 2027 (FY 2027) Phase I Co-Sponsorship Program for events occurring July through December 2026 and authorize revisions to the Community Events Co-Sponsorship Program Policy.
RECOMMENDED ACTION:
That the City Council:
a. Approve Fiscal Year 2027 Phase I of the Co-Sponsorship Program for events occurring July through December 2026.
b. Approve and authorize the execution of cleanup revisions to the Community Events Co-Sponsorship Program Policy.
c. Authorize the City Manager, or his designee, to review, approve, and execute any future non-substantial changes to the Community Events Co-Sponsorship Program Policy.
BACKGROUND & HISTORY:
The Community Events Co-Sponsorship Program is intended to facilitate the implementation of community events hosted by Corona-based non-profits through a fee waiver or in-kind assistance for City staff and/or resources. Applications are accepted during two intake periods twice a year, which are advertised via social media, newsletters, and on the city website.
Co-sponsorship requests are intended to be one-time only, and these organizations must meet the following criteria:
1. Only Community groups, non-profit 501(c)(3) tax exempt organizations, or other government agencies are eligible.
2. The organization must be based within the City of Corona or must have a local branch within the city.
3. The event must be designed to accomplish one or more of the following objectives:
a. Promote the City of Corona as a desirable place to live, visit or do business. b. Promote the City of Corona as a visitor destination and/or bring tourism associated revenue to the City.
c. Enhance quality of life and well-being of the residents of Corona. d. Advance the City’s commitment to, and pride in, being a multicultural community.
e. Encourage the development of neighborhood identity and pride. f. Promote cultural and artistic awareness in the community.
All co-sponsorship requests are reviewed and approved by the City Council, and the City reserves the right to decline any co-sponsorship requests if it is determined not to be in the best interests of the City or if it would otherwise create a conflict of interest for the City.
The City Council has approved the following annual amounts for the Community Events Co-Sponsorship Program over the past three fiscal years:
Fiscal Year 2026 - $27,923
Fiscal Year 2025 - $34,681
Fiscal Year 2024 - $22,960
ANALYSIS:
Applications for the FY 2027 Phase I (July – December 2026) Co-Sponsorship Program were accepted from February to March 2026. A total of 17 applications were received, and 10 are recommended for approval. The remaining applications are not recommended for approval due to the applicant not meeting program guidelines, such as being located outside the City limits, requesting fee waivers to join existing City events rather than creating their own event, and submissions that did not fall within the specified timeframe.
Among the 10 applications recommended for approval, three are for new events and seven are returning requests. A description of the recommended events is provided in Exhibit 2.
Date Event & Organizer New/
Returning
Criteria
Met
Service /
Location
Support
Requested
(Fee Waiver)
8/1
Mural Art Show of Classic Car
Shows – Corona Art Association New Yes VAC Lot/South Lawn $1,227 8/2 Barbers and Backpacks – The Leela
Project Returning Yes CCC $1,871
8/21-
8/22
Annual Broadway Concert – Circle
City Chorale Returning Yes HCC Theater $1,581
8/29 Pakistan Day Mela – For the People
Taskforce New Yes Butterfield Park $1,247
9/11 Patriot Day Remembering 9/11 –
Corona Chamber Foundation Returning Yes HCC Front Lawn $2,983 9/19 Rockstars & Superheroes – Crystal
Roses Inc. New Yes HCC South Lawn $1,081
10/8 Corona Historic Preservation –
Corona Historic Preservation Society Returning Yes HCC Community Room $837 10/17 Inland Empire Light the Night – Blood
Cancer United Returning Yes Santana Park $2,076
11/12
Kristallnacht Commemoration
Program – Temple Beth Sholom of
Corona
Returning Yes Library Community
Room $816
11/15 World Day of Remembrance –
Streets are for Everyone Returning Yes HCC Front Lawn & Community Room $1,000 TOTAL $14,719
Policy Revisions
Staff is proposing cleanup revisions to the Community Events Co-Sponsorship Program Policy to clarify application timing, program structure, and the sequencing of Phase I and Phase II requests to better define the annual program cycle. In addition, minor edits are proposed to ensure the program continues to serve non‑ profit organizations consistent with the purpose of the Co‑Sponsorship Policy. A redline version outlining the proposed policy revisions is provided in Exhibit 3.
Staff also recommends capping the annual funding allocation for the Community Events Co-Sponsorship Program at $30,000. This amount is consistent with the allocations provided during previous annual funding cycles and allows the Community Services Department to continue meeting the community’s needs while being fiscally responsible.
FINANCIAL IMPACT:
Funding for the recommended actions is available in the Community Events – CoSponsored Operating and Maintenance Project No. 63800 and is provided in the form of fee waivers. The total for Phase I of the Community Event Co-Sponsorship Program is $14,719.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action strictly pertains to the Co-Sponsorship Program and standard City operations and there is no possibility that approving this project will have a significant effect on the environment.
Therefore, no environmental analysis is required.
PREPARED BY: MONIQUE LEON, RECREATION SERVICES MANAGER
REVIEWED BY: DONNA FINCH, COMMUNITY SERVICES DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Presentation
2. Exhibit 2 – Event Descriptions
3. Exhibit 3- Community Events Co-Sponsorship Policy (Redline)
4. Exhibit 4- Community Events Co-Sponsorship Policy (Clean)
Monique Leon
Recreation Manager
That the City Council approve
the Fiscal Year 2027 Phase I
Co-Sponsorship Program for
events occurring July through
December 2026.
16 2
• Intended to facilitate community events
open to the general public
• Provides city co-sponsorship for events
through in-kind contributions of fee
waivers, city services, and staff time
• Does not provide funding for third-party
vendors, outside services, or other cost
or services not provided by the City
• Does not assist in the form of cash
towards an event
3
Corona
-based non-profit or government agency
Event must be open to the public and
accomplish one or more of the following: Promote Corona as a safe, vibrant, and family -
friendly community
Promote Corona as a desirable place to live, visit,
or do business
Promote Corona as a destination and/or
encourage tourism
Enhance qualify of life and well-being
Advance pride in multicultural community Encourage neighborhood identity and pride Promote cultural and artistic wellness 16 4
Same Program, Twice The Opportunity!
STEPS PHASE ONE
July - December 2026
PHASE TWO
January - June 2027
Applications Available February July
Applications Due March August
Application Review March/April September
Present Recommendations to Council April October
Adoption of FY Budget, Award Letters June November
5
Event
Date
Event & Organizer New / Returning Service /
Amenity
Fee Waiver
Request
8/1 Mural Art Show of Classic Cars Show
Corona Art Association New Event
VAC Lot/
South Lawn $1,227.00
8/1 Barbers and Backpacks
The Leela Project Returning CCC $1,871.00
8/21–
8/22
Annual Broadway Concert
Circle City Chorale Returning HCC Theater $1,581.00
8/29 Pakistan Day Mela
For the People Taskforce New Event Butterfield Park $1,247.00 9/11 Patriot Day
Corona Chamber Foundation Returning HCC Lawn $2,983.00
Event
Date
Event & Organizer New /
Returning
Service / Amenity Fee Waiver
Request
9/19 Rockstars & Superheroes
Crystal Roses Inc New HCC Lawn $1,081.00
10/8 Corona Historic Preservation
Corona Historic Preservation Society Returning HCC Community Room $837.00
10/17 Inland Empire Light the Night
Blood Cancer United Returning Santana Park $2,076.00
11/12 Kristallnacht Commemoration
Temple Beth Sholom of Corona Returning Library Community Room
$816.00
11/15 World Day of Remembrance
Streets Are For Everyone Returning HCC Front Lawn/
Community Room $1,000.00
Phase I Requests $14,719.00
Phase II Requests TBD
FY27 TOTAL $14,719.00
8
Community Events Co-Sponsorship Program Funding Policy 6400.009 • Adopted in January 2015 and revised in December 2024
• Add clarifying language for Non-profit requirements:
Organizations must be in good standing with the California Tax Board Non-profits must have a physical branch in Corona
• Cap the annual funding allocation at $30,000 per fiscal year
16 10
That the City Council approve
the Fiscal Year 2027 Phase I
Co-Sponsorship Program for
events occurring July through
December 2026.
City of Corona
Questions?
[email protected]
Recreation Manager
Proposed
Date Organization Proposed Community Sponsored Events Description 8/1/2026 Corona Art
Association
Mural Art Show of Classic Cars
Show
(New Event)
The car show will highlight artistic design, with entries judged on their artwork. Winners will receive ribbons and trophies in recognition of their participation. The Corona Art Association will display and sell artwork and crafts, and will also offer free children’s art activities to promote and inspire creativity.
8/1/2026 The Leela Project Barbers and Backpacks
The Barbers and Backpacks Block Party provides free haircuts and school supplies to local youth, along with resources and essential support for families in underserved communities.
8/21-22/2026 Circle City Chorale Annual Broadway Concert The Annual Broadway Review features community members performing solo, small-group, and choral pieces, and is considered one of the year’s most popular concerts. The program includes music from Broadway productions, television, and film. 8/29/2026 FOR THE PEOPLE
TASKFORCE PAKISTAN DAY MELA
Independence Day Celebration for Pakistan, featuring cultural activities and community engagement to honor and celebrate Pakistan’s Independence Day. 9/11/2026 Corona Chamber
Foundation Patriot Day remembering 9/11
A ceremony honoring the fallen of September 11, 2001, featuring a formal reading of the names and a tribute in remembrance of those who lost their lives. 9/19/2026 Crystal Roses Inc Rockstars & Superheroes
A free community event in honor of Childhood Cancer Awareness, featuring music, resources, raffles, and family-friendly activities.
10/8/2026 Corona Historic
Preservation Society Corona Historic Preservation Presentation of Corona History at their October meeting 10/17/2026
Blood Cancer
United, formerly
known as The
Leukemia &
Lymphoma Society
Inland Empire Light the Night
A fundraiser supporting patient services, advocacy for life-saving treatments, and innovative cancer research. Blood Cancer United’s Light the Night brings the community together to celebrate, honor, and remember those affected by blood cancers, with friends, families, schools, and local businesses joining to “bring light to the darkness of cancer.”
11/12/2026 Temple Beth Sholom
of Corona DBA
Kristallnacht Commemoration
Program
Guest speaking event featuring family members who survived the Holocaust.
Congregation Beth
Shalom of Corona
11/15/2026 Streets Are For
Everyone World Day of Remembrance
World Day of Remembrance is a global event held on the third Sunday of November to honor victims of road-traffic violence, support impacted families, advocate for road safety, and recognize the contributions of first responders.
JAMIER\13000.15000\10005052.15
Administrative Policy
Title: COMMUNITIY EVENTS CO-SPONSORSHIP PROGRAM
FUNDING POLICY
Administered By: Community Services Department (Recreation) Policy No. Issue Date Revision
Date
Dept. Head
Approved
City Manager
Approved
Mayor Approved
06400.009 12-18-24 N/A4-15-
26 ARTICLE I - PURPOSE
Section 1.1 General Purpose
The purpose of this policy is to facilitate community events open to the general public and provide police security for dignitary protection services. The Community Events CoSponsorship Program provides for City co-sponsorship of community events through in-kind contributions of City fee-waivers, City services, and staff time. The Community Events CoSponsorship Program does not provide funding for third-party vendors, outside services, or any other costs or services that are not normally provided by the City for community events.
The Community Events Co-Sponsorship Program receives a "one-time"a one- time allocation each fiscal year into the community co-sponsored events project (No. 6380), depending on available funds.
Section 1.2 Superseded Policies
This policy supersedes and replaces the following policies, which are hereby eliminated in their entirety and are of no further force and effect:
Policy 07400.003 Community Events Co-Sponsorship Program Funding Policy
ARTICLE II - DEFINITIONS AND SCOPE
Section 2.1 Definitions
None.
Administrative Policy 06400.009 (12-04-244-15-26)
Community Events Co-Sponsorship Program Funding Policy
Administered by Community Services (Recreation)
JAMIER\13000.15000\10005052.15
Section 2.2 General Scope
Unless otherwise stipulated herein, this policy applies to all City employees. All such employees shall comply with the provisions outlined in this policy. It is the responsibility of all supervision to ensure that the provisions outlined in this policy are enforced for those City employees under their authority.
Section 2.3 Exemptions from Scope
None.
ARTICLE III – COMMUNITY EVENTS CO-SPONSORSHIP PROGRAM
Section 3.1 Eligibility Criteria
To qualify for City co-sponsorship consideration under the Community Events Co-Sponsorship Program, a community organization and the event must meet all the following criteria:
A The Community event must be open to the public and inclusive of all residents.
B. Community groups, non-profit 501(c)(3) tax exempt organizations or other government agencies are eligible for City co-sponsorship. Non-profit status will be verified via the Internal Revenue Service (IRS) and the California Franchise Tax Board. Requesting agencies must have evidence of current nonprofit status, financial good standing, regulatory compliance and no outstanding debt owed to the City, State, or Federal government at time of application. New and emerging non-profit groups who have not yet been incorporated may apply under the banner of an existing Corona based non-profit so long as the registered non-profit takes full responsibility for the request and applies in their name.
C. Corona-Norco Unified School District (CNUSD) events may be considered for City cosponsorship if they are nationally televised or affiliated with a nationally televised program.
CNUSD events may also qualify under separate Joint Use Agreements.
D. Groups requesting City co-sponsorship must be based within the City of Corona or must have a local branch within the City limits. or non-profit affiliation within the City.
Organizations with a non-profit affiliation must submit a written letter from the non-profit verifying the affiliation.
E. The organization's event must be designed to accomplish one or more of the following objectives:
Administrative Policy 06400.009 (12-04-244-15-26)
Community Events Co-Sponsorship Program Funding Policy
Administered by Community Services (Recreation)
JAMIER\13000.15000\10005052.15
1. Promote the City of Corona as a safe, vibrant, and family-friendly community.
2. Promote the City of Corona as a desirable place to live, visit or do business.
3. Promote the City of Corona as a visitor destination and/or bring tourism- associated revenue to the City.
4. Enhance the quality of life and well-being of the residents of the City of Corona.
5. Advance the City's commitment to, and pride in, being a multicultural community.
6. Encourage the development of neighborhood identity and pride.
7. Promote cultural and artistic awareness within the community.
The City discourages co-sponsorship requests if: (1) the co-sponsorship request conflicts with other approved co-sponsorship events; and/or (2) the request conflicts with a City event.
Section 3.2 Co-Sponsorship Requests Funding and Awards
A. Funding for the co-sponsorship program shall not exceed $30,000 per fiscal year.
A.B. All groups requesting City co-sponsorship must submit a written request for City funding or co-sponsorship of community events.
C. All written requests must be received by the deadline(s) established each year, with funding to occur in the next fiscal year beginning July 1 and ending June 30. Notification of the deadline(s) for written requests will be communicated through a combination of press releases, letters and other City communication sources. Letters outlining this policy and procedural changes will be mailed to local community service groups.
B.D. From written requests received, the City Council will determine which community events will be approved for co-sponsorship in the next fiscal year, which will be allocated as part of the City's budget process. A list of the approved co-sponsorships will be available from the City upon request.
C.E. Accepted awards are non-transferable and cannot be used for any other purpose than what was originally proposed to the City in the requesting organization’s written request.
Should the organizer reschedule the event, request additional services, or change the event venue, the City’s standard fees will apply for any services beyond the original cosponsorship award. If the award will not be used, the request must be withdrawn by the requesting organizers. Requests for any other use, apart from what was originally
Administrative Policy 06400.009 (12-04-244-15-26)
Community Events Co-Sponsorship Program Funding Policy
Administered by Community Services (Recreation)
JAMIER\13000.15000\10005052.15
proposed in the requesting organization’s written request, must go through the standard application process set forth above.
D.F. The City Council has the authority to consider co-sponsoring additional community events at any time during the budget year, depending on funding availability. Any such requests for co-sponsorship must comply with the provisions of this policy.
Section 3.2 Use of City Logo
This policy entitles a requesting organization that has been approved for co-sponsorship by the City Council to utilize the City logo in conjunction with its marketing efforts for the cosponsored event.
Section 3.3 Ineligible Events
The City reserves the right to decline any co-sponsorship request if it is determined not to be in the best interests of the City or if it would otherwise create a conflict of interest for the City.
The City will decline co-sponsorship requests for the following:
A. Organizations whose revenue is substantially derived from the sale of alcohol, illegal drugs or illegal drug paraphernalia, firearms or weapons, tobacco products, gambling or sexually-explicit materials.
B. Political organizations or organizations whose primary purpose is to act on behalf of, in support of, or in opposition to any political candidate, ballot measure or political position.
C. Events with the primary purpose of supporting or opposing any political candidate, ballot measure or political position.
D. Adult-oriented businesses or organizations.
E. Requests for similar, like, or recurrent activities that take place more than once per fiscal year.
F. Organizations that do not have a current non-profit status or evidence of financial good standing or regulatory compliance. Organizations that have previously been awarded cosponsorship support must be in good standing with the City with respect to the organization’s prior events in terms of the event planning process, completing organizer requirements, safety requirements, quality of experience, and the successful delivery of the event as proposed to the City during the application period.
Administrative Policy 06400.009 (12-04-244-15-26)
Community Events Co-Sponsorship Program Funding Policy
Administered by Community Services (Recreation)
JAMIER\13000.15000\10005052.15
Section 3.4 Religious Organizations
Religious or sectarian organizations are not excluded from co-sponsorship consideration; however, the City's co-sponsorship of the religious or sectarian organization's event must satisfy all three of the following criteria:
A. The City's co-sponsorship must serve a clearly secular legislative purpose (i.e. secular public purpose);
B. The City's co-sponsorship must have a primary effect that neither advances nor inhibits religion; and
C. The City's co-sponsorship must not create an excessive entanglement with religion.
PRIOR VERSIONS
ISSUED: 01-21-15
REVISED: 12-04-24
REVISED: 4-15-26
JAMIER\13000.15000\10005052.15
Administrative Policy
Title: COMMUNITIY EVENTS CO-SPONSORSHIP PROGRAM
FUNDING POLICY
Administered By: Community Services Department (Recreation) Policy No. Issue Date Revision
Date
Dept. Head
Approved
City Manager
Approved
Mayor Approved
06400.009 12-18-24 4-15-26
ARTICLE I - PURPOSE
Section 1.1 General Purpose
The purpose of this policy is to facilitate community events open to the general public. The Community Events Co-Sponsorship Program provides for City co-sponsorship of community events through in-kind contributions of City fees, City services and staff time. The Community Events Co-Sponsorship Program does not provide funding for third-party vendors, outside services, or any other costs or services that are not normally provided by the City for community events.
The Community Events Co-Sponsorship Program receives a one-time allocation each fiscal year into the community co-sponsored events project (No. 6380), depending on available funds.
Section 1.2 Superseded Policies
This policy supersedes and replaces the following policies, which are hereby eliminated in their entirety and are of no further force and effect:
Policy 07400.003 Community Events Co-Sponsorship Program Funding Policy
ARTICLE II - DEFINITIONS AND SCOPE
Section 2.1 Definitions
Administrative Policy 06400.009 (4-15-25)
Community Events Co-Sponsorship Program Funding Policy
Administered by Community Services (Recreation)
JAMIER\13000.15000\10005052.15
None.
Section 2.2 General Scope
Unless otherwise stipulated herein, this policy applies to all City employees. All such employees shall comply with the provisions outlined in this policy. It is the responsibility of all supervision to ensure that the provisions outlined in this policy are enforced for those City employees under their authority.
Section 2.3 Exemptions from Scope
None.
ARTICLE III – COMMUNITY EVENTS CO-SPONSORSHIP PROGRAM
Section 3.1 Eligibility Criteria
To qualify for City co-sponsorship consideration under the Community Events Co-Sponsorship Program, a community organization and the event must meet all the following criteria:
A The Community event must be open to the public and inclusive of all residents.
B. Community groups, non-profit 501(c)(3) tax exempt organizations or other government agencies are eligible for City co-sponsorship. Non-profit status will be verified via the Internal Revenue Service (IRS) and the California Franchise Tax Board. Requesting agencies must have evidence of current nonprofit status, financial good standing, regulatory compliance and no outstanding debt owed to the City, State, or Federal government at time of application. New and emerging non-profit groups who have not yet been incorporated may apply under the banner of an existing Corona based non-profit so long as the registered non-profit takes full responsibility for the request and applies in their name.
C. Corona-Norco Unified School District (CNUSD) events may be considered for City cosponsorship if they are nationally televised or affiliated with a nationally televised program.
CNUSD events may also qualify under separate Joint Use Agreements.
D. Groups requesting City co-sponsorship must be based within the City of Corona or must have a local branch within the City limits.
E. The organization's event must be designed to accomplish one or more of the following objectives:
Administrative Policy 06400.009 (4-15-25)
Community Events Co-Sponsorship Program Funding Policy
Administered by Community Services (Recreation)
JAMIER\13000.15000\10005052.15
1. Promote the City of Corona as a safe, vibrant, and family-friendly community.
2. Promote the City of Corona as a desirable place to live, visit or do business.
3. Promote the City of Corona as a visitor destination and/or bring tourism- associated revenue to the City.
4. Enhance the quality of life and well-being of the residents of the City of Corona.
5. Advance the City's commitment to, and pride in, being a multicultural community.
6. Encourage the development of neighborhood identity and pride.
7. Promote cultural and artistic awareness within the community.
The City discourages co-sponsorship requests if: (1) the co-sponsorship request conflicts with other approved co-sponsorship events; and/or (2) the request conflicts with a City event.
Section 3.1 Co-Sponsorship Requests and Awards
A. All groups requesting City co-sponsorship must submit a written request for City funding or co-sponsorship of community events.
B. All written requests must be received by the deadline(s) established each year, with funding to occur in the next fiscal year beginning July 1 and ending June 30. Notification of the deadline(s) for written requests will be communicated through a combination of press releases, letters and other City communication sources. Letters outlining this policy and procedural changes will be mailed to local community service groups. a. Phase 1 of the Co-Sponsorship allocations will be for events held July 1 st –
December 31st.
b. Phase 2 of the Co-Sponsorship allocations will be for events held January 1st – June 30th.
C. From written requests received, the City Council will determine which community events will be approved for co-sponsorship in the next fiscal year, which will be allocated as part of the City's budget process. A list of the approved co-sponsorships will be available from the City upon request.
D. Accepted awards are non-transferable and cannot be used for any other purpose than what was originally proposed to the City in the requesting organization’s written request.
Should the organizer reschedule the event, request additional services, or change the
Administrative Policy 06400.009 (4-15-25)
Community Events Co-Sponsorship Program Funding Policy
Administered by Community Services (Recreation)
JAMIER\13000.15000\10005052.15
event venue, the City’s standard fees will apply for any services beyond the original cosponsorship award. If the award will not be used, the request must be withdrawn by the requesting organizers. Requests for any other use, apart from what was originally proposed in the requesting organization’s written request, must go through the standard application process set forth above.
E. The City Council has the authority to consider co-sponsoring additional community events at any time during the budget year, depending on funding availability. Any such requests for co-sponsorship must comply with the provisions of this policy.
Section 3.2 Use of City Logo
This policy entitles a requesting organization that has been approved for co-sponsorship by the City Council to utilize the City logo in conjunction with its marketing efforts for the cosponsored event.
Section 3.3 Ineligible Events
The City reserves the right to decline any co-sponsorship request if it is determined not to be in the best interests of the City or if it would otherwise create a conflict of interest for the City.
The City will decline co-sponsorship requests for the following:
A. Organizations whose revenue is substantially derived from the sale of alcohol, illegal drugs or illegal drug paraphernalia, firearms or weapons, tobacco products, gambling or sexually-explicit materials.
B. Political organizations or organizations whose primary purpose is to act on behalf of, in support of, or in opposition to any political candidate, ballot measure or political position.
C. Events with the primary purpose of supporting or opposing any political candidate, ballot measure or political position.
D. Adult-oriented businesses or organizations.
E. Requests for similar, like, or recurrent activities that take place more than once per fiscal year.
F. Organizations that do not have a current non-profit status or evidence of financial good standing or regulatory compliance. Organizations that have previously been awarded cosponsorship support must be in good standing with the City with respect to the organization’s prior events in terms of the event planning process, completing organizer requirements, safety requirements, quality of experience, and the successful delivery of the event as proposed to the City during the application period.
Administrative Policy 06400.009 (4-15-25)
Community Events Co-Sponsorship Program Funding Policy
Administered by Community Services (Recreation)
JAMIER\13000.15000\10005052.15
Section 3.4 Religious Organizations
Religious or sectarian organizations are not excluded from co-sponsorship consideration; however, the City's co-sponsorship of the religious or sectarian organization's event must satisfy all three of the following criteria:
A. The City's co-sponsorship must serve a clearly secular legislative purpose (i.e. secular public purpose);
B. The City's co-sponsorship must have a primary effect that neither advances nor inhibits religion; and
C. The City's co-sponsorship must not create an excessive entanglement with religion.
Section 3.5 Program Policy Adjustments
A. Any non-substantive adjustments to administrative policy 06400.009 Community Events Co-Sponsorship Policy may be approved administratively by the City Manager or designee.
B. Any substantive adjustments that alter the scope of the policy will return for council approval.
PRIOR VERSIONS
ISSUED: 01-21-15
REVISED: 12-04-24
REVISED: 4-15-26
DATE: 04/15/2026
TO: Honorable Mayor and City Council Members
FROM: Planning & Development Department
2026-92
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RESOLUTION APPROVING APPOINTMENT OF A RETIRED ANNUITANT TO A
VACANT INTERIM POSITION AS DIRECTOR OF PLANNING AND DEVELOPMENT EXECUTIVE SUMMARY:
This staff report seeks City Council approval of Resolution No. 2026-014, authorizing the appointment of a retired annuitant as the Interim Planning & Development Director. This temporary position will support the Planning & Housing Commission and the Historical Preservation Board, and oversee all Department divisions, specifically Development Services, Building, Permitting, Plan Check, Public Works Construction Inspection, and Code Compliance.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2026-014, approving the appointment of retired annuitant Delfin “Danny” Castro as Interim Planning & Development Director.
BACKGROUND & HISTORY:
The Planning and Development Department is responsible for critical municipal functions, including long-range planning, land use entitlement, engineering, building permit issuance, public works construction inspection, and code compliance. These services are foundational to the City’s economic vitality, housing production, and infrastructure development. The complexity of these operations requires continuous, high-level
administrative oversight to ensure adherence to state-mandated regulations, maintain public safety standards, and advance the City Council’s strategic goals.
To ensure uninterrupted service delivery and maintain the continuity of ongoing complex development projects, the City must secure experienced leadership during the recruitment process for a permanent Director. A vacancy in this leadership role creates operational risk, potentially leading to delays in service, stalled progress on the General Plan and Housing Element, and a lack of departmental guidance for staff, the Planning and Housing Commission, and the Historic Preservation Board.
ANALYSIS:
The appointment of a retired annuitant as the Interim Director of Planning and Development provides the City with immediate access to a seasoned expert with extensive experience in municipal planning and administrative management. This individual possesses the requisite knowledge of urban planning, regulatory environments, and intergovernmental coordination necessary to oversee the department effectively. By utilizing a retired annuitant, the City ensures operational stability and high-level guidance without the extended learning curve typically required for new or external hires.
The retired annuitant will be compensated at an hourly rate commensurate with the position, excluding benefits or leave accruals, and shall not exceed 960 hours per fiscal year, in strict compliance with California Government Code sections 7522.56 and 21221(h). This arrangement provides the City with essential specialized expertise while maintaining strict fiscal control and adherence to CalPERS requirements. This appointment is considered critically necessary to prevent service gaps and ensure that the City’s development and planning objectives continue to advance without interruption.
FINANCIAL IMPACT:
Delfin “Danny” Castro will be paid an hourly rate of $125.76, which is no less than the minimum nor more than the maximum hourly rate paid to a person serving in the Planning and Development Director classification, as required by CalPERS regulations. He will not be entitled to additional compensation, overtime, benefits, paid leave, or paid holidays.
The Department has significant salary savings to cover the salary expenditure; therefore, no additional appropriation is necessary.
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 1506(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA and is therefore exempt from CEQA. This action approves Resolution No. 2026-014, appointing a retired annuitant to an Interim Director position, and there is no possibility that this project will affect the environment. Therefore, no environmental analysis is required.
PREPARED BY: CINDY WARD, EXECUTIVE ASSISTANT
REVIEWED BY: LORI SASSOON, CHIEF TALENT OFFICER
ATTACHMENTS:
1. Exhibit 1 – Resolution No. 2026-014
2. Exhibit 2 – Employment Agreement – D. Castro
DEAND\02000.51001\10321808.2
April 15, 2026
Mr. Delfin (Danny) Castro
Address On File
Re: City of Corona – CalPERS Annuitant Conditional Interim Vacancy Appointment Agreement for the Planning & Development Department (GC 21221(h) - Interim Vacancy)
Dear Mr. Castro:
Introduction
If accepted by you, this letter represents an agreement (“Agreement”) as a CalPERS retiree for a limited-term appointment to the position of Interim Planning & Development Director (“Position”) with the City of Corona Planning & Development Department, by which you will be filling an interim vacancy under the provisions of Government Code Section 21221(h).
This Agreement is made in light of the city’s current vacancy in this position. We have determined that your employment during this time is necessary in order to prevent the stoppage of public business.
Terms
The terms of this Agreement include:
Term. This Agreement shall become effective on April 16, 2026, unless a later date is agreed on by the Parties. This Agreement shall expire upon the first to occur of the following events: (i) the employment commencement date of the permanent appointment to the Position; or (ii) upon termination of this Agreement by either you or the City.
Conditional Interim Vacancy Appointment Agreement (CalPERS Retiree) GC 21221(h) – Interim Vacancy
Delfin (Danny) Castro
DEAND\02000.51001\10321808.2
Maximum 960 Hours. Your employment shall not exceed 960 hours in a fiscal year (inclusive of all hours worked for any CalPERS employer). Compensation. Rate of pay for this temporary assignment shall equal the maximum monthly base salary paid to other employees performing comparable duties, as listed on the City's publicly available pay schedule, reflected as an hourly rate by dividing the monthly base pay by 173.333. The current maximum is $125.76 per hour.
No Other Benefits. No further payments or benefits other than the hourly rate will be provided, unless required by state or federal law.
CalPERS Requirements
The City and you make this Agreement with the mutual understanding that the appointment complies with the requirements for the employment of CalPERS retirees, as codified in Government Code Sections 7522.56 and 21221(h). Specifically, an appointment under Sections 7522.56 and 21221(h) is permissible if all of the following eight (8) requirements are met:
(1) City Council Appointment. The appointment must be made by the City Council.
(2) Active Recruitment During Vacancy. The appointment must be to a vacant position during an active recruitment for a permanent appointment.
(3) Emergency or Specialized Skills. The appointment is either during an emergency to prevent stoppage of public business or because the retiree has specialized skills needed in performing the work. (4) One-Time Appointment. An appointment is made only once to the vacant position.
Conditional Interim Vacancy Appointment Agreement (CalPERS Retiree) GC 21221(h) – Interim Vacancy
Delfin (Danny) Castro
DEAND\02000.51001\10321808.2
(5) Maximum 960 Hours. The total hours worked by a retiree in a fiscal year, for all CalPERS employers under all appointment authorities, cannot exceed 960 hours.
(6) Compensation Limitation. The compensation received by a retiree is not more than the maximum, nor less than the minimum, monthly base salary paid to other employees performing comparable duties, as listed on the City's publicly available pay schedule. The compensation shall be reflected as an hourly rate by dividing the monthly base pay by 173.333. (7) No Other Benefits. The compensation paid to the retiree is limited to the hourly rate and no other benefits may be provided.
(8) Unemployment Payment Certification. The retiree provides a written certification upon acceptance of the appointment that he or she has not received unemployment insurance payments in the prior 12-month period arising from work performed as a retiree for any public employer that is subject to Government Code section 7522.56.
Satisfaction of CalPERS Requirements
The City, in good faith, has determined that your appointment meets the foregoing eight (8) requirements as follows:
(1) City Council Appointment. The appointment has been made by the City Council.
(2) Active Recruitment During Vacancy. The appointment is to a vacant position during an active recruitment for a permanent appointment. (3) Emergency or Specialized Skills. This appointment is made in light of the emergency described in the first paragraph of this Agreement and your services are necessary to prevent stoppage of public business.
Conditional Interim Vacancy Appointment Agreement (CalPERS Retiree) GC 21221(h) – Interim Vacancy
Delfin (Danny) Castro
DEAND\02000.51001\10321808.2
(4) One-Time Appointment. This is the only appointment that has been made to this vacant position.
(5) Maximum 960 Hours. The appointment will not exceed 960 hours in a fiscal year.
(6) Compensation Limitation. The compensation you will receive is no more than the maximum, nor less than the minimum, monthly base salary paid to other employees performing comparable duties, as listed on the City's publicly available pay schedule. The compensation is reflected as an hourly rate by dividing the monthly base pay by 173.333. (7) No Other Benefits. Your compensation consists of the hourly rate only; no further benefits will be provided.
(8) Unemployment Payment Certification. During the 12-month period prior to the effective date of the appointment made pursuant to this Agreement, you did not receive any unemployment insurance compensation arising out of prior employment with a CalPERS employer subject to Government Code section 7522.56.
By executing this Agreement, you are also, in good faith, determining that your appointment meets each of the foregoing eight (8) requirements noted above, including the unemployment insurance requirement (as reflected in the written certification below).
Monitoring Hours
Notwithstanding (5) above, the City has no way of monitoring the hours that you work for another CalPERS employer. As such, it is your responsibility to ensure that the total hours worked for the City and any other CalPERS employer do not exceed 960 hours in the aggregate. However, please note that consistent with the requirements of Section 21220(d) and (e), the City will enroll you in CalPERS solely for administrative recordkeeping purposes (you will remain in retired status) and will report both your hours and pay pursuant to this Agreement.
Conditional Interim Vacancy Appointment Agreement (CalPERS Retiree) GC 21221(h) – Interim Vacancy
Delfin (Danny) Castro
DEAND\02000.51001\10321808.2
CalPERS Determination Final
While the City and you make this Agreement because we believe that it is authorized under Sections 7522.56 and 21221(h), CalPERS could disagree. If CalPERS disagrees, there is a risk that you will be required to do the following: (1) return any retirement allowance you received during the period of the appointment; (2) pay an amount of money equal to the employee contributions that should have been made, plus interest, during the appointment; and (3) pay CalPERS’ administrative expenses incurred as a result of its audit of the appointment. You will also be subject to reinstatement from retirement.
Waiver & Indemnity
By executing this Agreement, you are taking the risk that CalPERS may disagree that this appointment is authorized under Sections 7522.56 and 21221(h), and you waive any claims related thereto. Please contact CalPERS if you have any questions regarding the requirements of Sections 7522.56 and 21221(h) or this appointment. By executing this Agreement, you therefore agree to waive any claim against the City arising out of an alleged violation of the rules applicable to the employment of CalPERS retirees without reinstatement. Further, you agree to indemnify and hold the City, its officers, officials, employees and agents free and harmless from and against any and all alleged claims, damages, liabilities, costs and expenses, including, but not limited to, the reinstatement risks noted in the preceding paragraph, as well as reasonable attorneys’ fees and other legal or other costs and expenses, which may be suffered or incurred by you and arising by reason of an alleged violation of the rules applicable to the employment of CalPERS retirees without reinstatement.
At-Will
There is no right to public employment expressed by this Agreement. All limitedterm appointments are subject to the business necessity of the City and are at-will; therefore, the appointment may end with or without cause or advance notice.
Conditional Interim Vacancy Appointment Agreement (CalPERS Retiree) GC 21221(h) – Interim Vacancy
Delfin (Danny) Castro
DEAND\02000.51001\10321808.2
Conclusion
We welcome you to your limited-term appointment with the City of Corona and extend our best wishes for your success in the temporary position.
If you have additional questions or comments feel free to contact me directly.
Sincerely,
Jacob Ellis
City Manager
===================================================================== ACKNOWLEDGMENT:
I, ________________________ _ __, agree to this City of Corona – CalPERS Annuitant Conditional Limited-Term Appointment Agreement for the Planning & Development Department (GC 21221(h) - Interim Vacancy), and hereby warrant that I understand and agree with all of the terms and conditions of employment as set forth in this Agreement, including, but not limited to, the risk, waiver, indemnity and hold harmless conditions related to any alleged violation of the rules applicable to the employment of CalPERS retirees without reinstatement.
In addition, I certify that during the 12-month period prior to the effective date of the appointment made pursuant to this Agreement, that I did not receive any unemployment insurance compensation arising out of prior employment with a CalPERS employer subject to Government Code section 7522.56. ___________________________________________ __________________ Signature Date
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this session, please contact the ADA coordinator at (951) 736-2266.
Corona Public Library
650 S. Main St.
951-736-2384
www.CoronaCA.gov/Library
Bring a book* and learn
how to gild book edges
step by step in this
in-depth workshop.
Apr. 23
6-9:00pm
Edges ilded Book G
Workshop
Ages 18+ Register Online:
Registration opens
online starting:
April 16, 2026
*Books must be paperback - under
400 pages is recommended
Frances Aldama Martinez
Community Room
V
Created just for our pint-sized wigglers (ages 0–3) and their grown-up dance partners! To create a safe space for the littles, no children over the age of 5 will be permitted.
MONDAY
APRIL 20TH
10–11 AM
COMMUNITY
ROOM
Wear your brightest outfit and dance to
your favorite baby beats with a techno
twist!
Expect a short storytime, dimmed light,
music played at a baby-friendly volume,
glow sticks, sensory toys, bubbles, and
dancing!
BABY
Corona Public Library
650 S. Main St.
951-736-2384
www.CoronaCA.gov/Library
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this session, please
contact the ADA coordinator at (951) 736-2266.
DATE: 04/15/2026
TO: Honorable Mayor and City Council Members
FROM: Planning and Development Department
2026-101
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
PARKING VARIANCE FROM § 17.86.020(C) OF THE CORONA MUNICIPAL CODE AT 428 W. GRAND BOULEVARD
EXECUTIVE SUMMARY:
This staff report asks the City Council to affirm the decision by the Planning and Housing Commission in granting Variance 2024-0001 (V2024-0001), which would allow parking to be placed between the Grand Boulevard right-of-way line and a new 3,560-square-foot medical office building proposed at 428 W. Grand Boulevard, instead of behind or to the side of the building.
RECOMMENDED ACTION:
That the City Council:
a. Take no action, thereby affirming the Planning and Housing Commission’s action granting V2024-0001, based on the findings contained in the staff report and conditions of approval.
OR
b. Set the item for review at a subsequent meeting.
BACKGROUND & HISTORY: