Desert Hot Springs City Council
March 18, 2025

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City of Desert Hot Springs

AMENDED AGENDA

REGULAR MEETING OF THE CITY COUNCIL
and the City Council Serving as the Successor Agency to the Former Redevelopment Agency Board
Tuesday, March 18, 2025
5:00 PM - Closed Session
5:30 PM - Presentations
6:00 PM - Regular Session
Council Chambers/City Hall
11-999 Palm Drive
Desert Hot Springs, California, 92240

Page
CLOSED SESSION - 5:00 P.M.

CALL TO ORDER

ROLL CALL

PUBLIC COMMENTS
At this time, item(s) on the Closed Session agenda may be discussed during Public Comments. PLEASE STATE YOUR NAME FOR THE RECORD.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Joseph Miner v. City of Desert Hot Springs et al., Case Number: 8:24-cv-02793-MCS (E)

2. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: City of Desert Hot Springs v. Cay, LLC; Riverside County Case Number CVPS2300272
RECESS
PRESENTATIONS - 5:30 P.M.

Service Recognition of Former Commission Members
Swearing-In of Interim Police Chief, Steven Shaw
REGULAR SESSION - 6:00 P.M.

CALL TO ORDER

ROLL CALL

INVOCATION

PLEDGE OF ALLEGIANCE

CITY ATTORNEY REPORT ON CLOSED SESSION

APPROVAL OF AGENDA
At this time the City Council may amend the order of the agenda, approve the Consent Calendar, remove items from the Consent Calendar for separate discussion and action, and add Urgency Items.

Urgency Items ("Added Starters"): The Brown Act, which governs public meetings, permits the City Council to take action on any item that does not appear on the agenda only if 2/3 of the City Council (if all are present) or all members of the City Council (if fewer than all members are present) determine there is a need to take immediate action on the item, and the need to take immediate action came to the City Council's attention after the agenda was posted.

PUBLIC COMMENTS
At this time, pursuant to the Brown Act, any person may comment on matters of general interest within the subject matter jurisdiction of the City Council, NOT listed on the agenda. Under the Brown Act, the City Council should not take action on or discuss matters raised during Public Comment portion of the agenda that are not listed on the agenda.

Comments are limited to the first ten (10) speakers at three (3) minutes per speaker. Speakers may not yield their time to others without consent of the Mayor. All comments are to be directed to the City Council and shall be devoid of any personal attacks. Members of the public are expected to maintain a professional, courteous decorum during public comments.

Please complete and submit a "speaker card" to the City Clerk. You will be asked to STATE YOUR NAME AND CITY OF RESIDENCE FOR THE RECORD.

CITY MANAGER REPORT

MAYOR AND COUNCIL MEMBER REPORTS
ADMINISTRATIVE CALENDAR:

3. Funding Request from Health Assessment and Research for Communities (HARC)
Jerryl Soriano, City Clerk
Recommendation: Consider a funding request from HARC in the amount of $5,000.

Staff Report - SR-25-060 - Pdf
7 - 9

4. Animal Hospital - Transfer of Ownership
Doria Wilms, Interim City Manager
Recommendation:
11 - 72

1) Authorize the City Manager to negotiate, execute and make substantive changes to the Purchase and Sale Agreement and further negotiate and execute any and all documents to effectuate the sale of the real property located at 13700 Palm Drive, Desert Hot Springs, CA 92240 to Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies;
2) Authorize the City Manager to negotiate and execute any and all documents as required by any state and local agency including but not limited to the AG and/or DOJ to effectuate the sale of real property located at 13700 Palm Drive, Desert Hot Springs, CA 92240 to Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies; AND
3) Authorize the City Manager to negotiate and execute any and all documents to effectuate a lease with Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies ending at close of escrow.

Staff Report - SR-25-062 - Pdf

5. Camping Restrictions Ordinance
Christina Newsom, Acting Deputy City Manager
Recommendation:
1) Adopt (by 4/5 vote of the City Council) and read by title only: "An URGENCY Ordinance of the City Council of the City of Desert Hot Springs, California, amending Chapter 12.04 "Camping Restrictions" of the Desert Hot Springs Municipal Code ("DHSMC");" AND 2) Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, California, amending Chapter 12.04 "Camping Restrictions" of the Desert Hot Springs Municipal Code ("DHSMC").

Staff Report - SR-24-232 - Pdf
73 - 96

6. Interim City Manager Employment Agreement
Jennifer Mizrahi, City Attorney
Recommendation:

Approve the Employment Agreement with Doria Wilms as Interim City Manager.

Staff Report - SR-25-061 - Pdf
97 - 109
CONSENT CALENDAR:

Matters on the "Consent Calendar" are considered routine and may be acted upon by one motion under "Approval of the Agenda." Individual items may also be removed by the City Council for separate discussion under "Approval of the Agenda." The title is deemed to be read and further reading waived on any ordinance listed on the Consent Calendar for second reading and adoption.

7. OneFuture Coachella Valley Funding Request
Jerryl Soriano, City Clerk
145 - 150

Recommendation:

Consider a $25,000 sponsorship proposal from OneFuture to provide educational services to the City of Desert Hot Springs residents.

Staff Report - SR-25-059 - Pdf

8. 2024 Housing Element Annual Progress Report
Travis Clark, Community Development Director
Recommendation:
1) Adopt a Resolution of the City Council adopting the Housing Element Annual Progress Report, which is attached hereto as Exhibit “A”, incorporated herein; AND
2) Authorize staff to submit the APR to the California Office of Planning and Research and to Housing and Community Development.

Staff Report - SR-25-058 - Pdf
111 - 143

9. Resolution of Intention to Create a Special Tax Area Zone for Property Rancho Descanso to the Desert Hot Springs Public Safety Tax Area
Geoffrey Buchheim, Administrative Services Director
Recommendation:

Adopt a Resolution of Intention which establishes the time and place of the Public Hearing to establish Zone 55 within the Special Public Safety Tax Area for Police and Fire Protection Services and authorizing an election.

Staff Report - SR-25-063 - Pdf
151 - 172

10. Amendment to the Professional Services Agreement with The Mural Supply Co.

Doria Wilms, Interim City Manager
Recommendation:

Approve the Amendment to the Professional Services Agreement with The Mural Supply Co. to modify Section 4 - Compensation as follows; The City agrees to pay consultant for and in consideration of the faithful performance of the services and duties set forth in this agreement, and consultant agrees to accept from the city, as compensation for the faithful performance of said services and duties, Two Hundred Forty Thousand Dollars, and Zero Cents ($240,000.00) for the successful completion of twelve murals in the downtown and 8 days’ worth of events highlighting murals, which eight days shall be scheduled and approved by the City Manager. Payment for each mural and event will be remitted to consultant within 15 days of invoice and upon successful completion as determined by the City Manager or their designee in their sole discretion.

Staff Report - SR-25-065 - Pdf
173 - 177

11. Inspection Services Hacienda Avenue Street Improvement Project 3003
179 - 210

Doria Wilms, Interim City Manager
Recommendation:

Authorize the City Manager to draft and execute the Professional Services Agreement for Inspection Services for the Hacienda Avenue Street Improvement Project, City Project No. 3003, to Omnis Incorporated, in an amount not to exceed $110,800.00 with a 10% contingency of $11,080.00 bringing the total amount to $121,880.00.

Staff Report - SR-25-064 - Pdf

PUBLIC COMMENTS
Opportunity is given to those members of the public who have NOT addressed the City Council on an item which is NOT on the agenda. Comments are limited to three (3) minutes per speaker. PLEASE STATE YOUR NAME AND CITY OF RESIDENCE FOR THE RECORD.

ADJOURN

UPCOMING MEETING DATES
*Please refer to the City website calendar at www.cityofdhs.org for meeting locations and the most up to date information.

April 1 City Council Regular Meeting 6:00 p.m.

April 8 Planning Commission 6:00 p.m.

April 10 Public Safety Commission 6:00 p.m.

April 15 City Council Regular Meeting 6:00 p.m.
________________________________________________________________________________________

NOTICES
In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the Office of the City Clerk at City Hall during normal business hours at 11999 Palm Drive, Desert Hot Springs, CA 92240.

If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda at 11999 Palm Drive, Desert Hot Springs, CA 92240.

Americans with Disabilities Act
In an effort to comply with the requirements of Title 2 of the Americans with Disabilities Act of 1990, the City of Desert Hot Springs requires that any person in need of any type of special equipment, assistance, or accommodation(s) in order to communicate at a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting to enable the City to make reasonable arrangements.

SR-25-060
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 18, 2025
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Funding Request from Health Assessment and Research for Communities (HARC)
RECOMMENDATION:

Consider a funding request from HARC in the amount of $5,000.

DISCUSSION:

Dr. Jenna LeComte-Hinley, Chief Executive Officer for Health Assessment and Research for Communities (HARC), has submitted a letter (Exhibit 1) requesting a funding contribution in the amount of $5,000 to support their endeavors towards the 2025 survey.

HARC conducts a survey of the entire Coachella Valley every three (3) years which covers demographics, social and economic needs, health behaviors, healthcare access, preventative care, mental health and more. Organizations in Desert Hot Springs such as "Shelter from the Storm," "Desert Hot Springs Family Resource Center," and "Literacy, Language & Cultural Centers (LiLaC)" have relied on HARC's data to help prioritize health needs, create programs and services to address those needs, and obtain funding to implement those programs.

The City Council approved previous funding requests from HARC as follows:
 2016 - $5,000
 2019 - $5,000
 2022 - $5,000
FISCAL IMPACT:

City Council approval of this funding request will increase budgeted expenditures in the Consolidated General Fund for FY 2024-25 by an amount of $5,000 in account 100-4320-41-11-0000.

ATTACHMENTS:
1) HARC Funding Request Letter
Item Number: 3.

HEALTH
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CHIEFEXECUTIVEOFFICER
Jenna LeComle-Hineiy,PhD
December 5, 2024
Mayor Scott Matas
11999 Palm Drive
Desert Hot Springs, CA
92240
Dear Mayor Matas,
HARC is proud to announce that we will be conducting our seventh triennial Coachella Valley Community Health Survey in 2025. We are excited to continue using this survey as a vital tool for tracking health trends over time and understanding the evolving needs of our community.

This new survey data will be especially useful for Desert Hot Springs, given your commitment to mental health, healthy lin'ng, enxdronmentaljustice, and safe and plentiful places to engage in outdoor recreation, among other priorities in your General Plan.

We are immensely grateful for Desert Hot Springs’ steadfast support in previous survey cycles. Your contributions to the HARC CoachellaValley Community Health Survey have not only ensured that this valuable data remains freely accessible but have also empowered local leaders to prioritize community needs, design impactful programs, and secure essential funding.

We respectfully request Desert Hot Springs’ support for the 2025 survey with a contribution of $5,000. Your ongoing partnership is vital to our mission and plays a crucial role in ensuring that this essential resource remains available to everyone to promote health equity.

As in the pre?ous cycles, we will be recognizing all our donors on our website, on survey promotional materials, and in the report, including “local spotlights” to highlight your efforts to improve quality of life for your members. We believe that hundreds of local leaders who rely on our report will be eager to learn more about the wonderful activities you have been doing in Desert Hot Springs to improve the lives of local residents.

Thank you in advance for considering this ask. Your contribution will be a catalyst for ensuring we all have local health data to make data-driven decisions and policies, and in turn, improve the health of the entire region.

Sincerely,
%7RO‘éWWnM/d) J na LeComte—Hinely,PhD
Chief Executive Of?cer
CC: City Manager Frank Luckino, Deputy City Manager Doria Wilms HARC.lnc IS a 501(c)(3)nonprofitorganization. ElN206719074 Item Number: 3.

Item Number: 3.

SR-25-062
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 18, 2025
Department: City Manager
Prepared by: Doria Wilms, Interim City Manager
Subject: Animal Hospital - Transfer of Ownership
RECOMMENDATION:
1) Authorize the City Manager to negotiate, execute and make substantive changes to the Purchase and Sale Agreement and further negotiate and execute any and all documents to effectuate the sale of the real property located at 13700 Palm Drive, Desert Hot Springs, CA 92240 to Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies; 2) Authorize the City Manager to negotiate and execute any and all documents as required by any state and local agency including but not limited to the AG and/or DOJ to effectuate the sale of real property located at 13700 Palm Drive, Desert Hot Springs, CA 92240 to Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies; AND 3) Authorize the City Manager to negotiate and execute any and all documents to effectuate a lease with Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies ending at close of escrow.

BACKGROUND:

On November 7, 2023 the City of Desert Hot Springs acquired the Animal Hospital, located at 13700 Palm Drive, Desert Hot Springs, CA 92240 and an Animal Sanctuary, located at 17825 North Indian Canyon Ave., North Palm Springs, California 92258, from the Humane Society of the Desert.

On November 30, 2023 the City of Desert Hot Springs released a Request for Interest (RFI) for Veterinary Services to identify a suitable partner to provide high-quality and affordable veterinary services for the community and city's Animal Care and Control Division.

On March 19, 2024 the City Council authorized the City Manager to negotiate and execute all agreements, consistent with the conditions set forth in the staff report, with Animal Samaritans for the transfer of ownership and operations of the Animal Hospital.

In August of 2024 the City Manager notified the City Council that the city had been unsuccessful in reaching agreeable terms with the prospective operator and would need to release another RFI for Veterinary Services for operations of the Animal Hospital.

In September of 2024 the City released another RFI for Veterinary Services to identify a suitable partner to provide high-quality and affordable veterinary services for the community and City's Animal Care and Control Division.

Item Number: 4.

SR-25-062
Following the release of the RFI the City engaged with Friends of the Palm Springs Animal Shelter to discuss the City's goals and needs for the successful operations of the Animal Hospital. They expressed a strong desire to proceed with negotiations to provide full-service, affordable Veterinary Services which would included but not be limited to pet wellness exams, dental cleanings and care, spay/neuter services, vaccines and micro-chipping. They also plan to provide community trap, neuter, return services of stray unsocialized cats. These services will include financial aid availability to reduce the cost of veterinary care for qualifying low-income residents of Desert Hot Springs and surrounding communities.

On October 15, 2024, the City Council authorized the City Manager to negotiate an Agreement with the Friends of the Palm Springs Animal Shelter for these purposes.

DISCUSSION:

The negotiations have produced the following for consideration by the City Council;

1. Transfer of Ownership of the Animal Hospital property located at 13700 Palm Drive from the City of Desert Hot Springs to the Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies.

2. As part of the initial acquisition of the property, the City incurred costs totaling $100,361.31 to cover delinquent property taxes owed by the previous owner. The proposed Purchase and Sale Agreement stipulates the purchase price at $100,361.31, plus discounted veterinary services for animals in the care of Animal Care and Control in an amount of $300,000, totaling $400,361.31. to be paid via discounted veterinary services for animals in the care of Animal Care and Control as specified in the Promissory Note.

3. Should the Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies wish at any point in the future to dispose of the property the City of Desert Hot Springs would have First Right of Offer to acquire the property, at its original purchase price.

4. The City will receive discounted veterinary services at 25% of advertised pricing during the term of this agreement and discounted veterinary services following the successful satisfaction of the note as specified in the Purchase and Sale Agreement.

5. As the Animal Hospital is a charitable asset, the California AG/DOJ will need time to review and approve the Charitable Asset transfer. During this time the City intends to lease the building to Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies to allow for immediate access to the facility to prepare for operations.

If these terms are satisfactory to the City Council staff will proceed immediately to effectuate the Purchase and Sale of the property to Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies.

ATTACHMENTS:
1) Desert Hot Springs Animal Clinic DRAFT PSA
2) Friends of the Palm Springs Animal Promissory Note
3) Friends of the Palm Springs Animal Shelter - Deed of Trust 4) Friends of the Palm Springs Animal Shelter - Memorandum Item Number: 4.

SR-25-062
Item Number: 4.

1 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240

ANIMAL CLINIC PURCHASE AND SALE AGREEMENT
This Animal Clinic Purchase and Sale Agreement (the “Agreement”) is dated as of March , 2025 between the City of Desert Hot Springs Financing Corporation, a nonprofit public benefit corporation, with an address of 11999 Palm Drive, Desert Hot Springs, California 92240 (the “Seller” or the “City”); and Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies , a California nonprofit public benefit corporation, with an address of 4575 E. Mesquite Avenue, Palm Springs, CA 92264 (the “Purchaser”).

This Agreement shall become effective on the date of the full execution by both parties (the “Effective Date”).

WITNESSETH
In consideration of the covenants and agreements of the respective parties as hereinafter set forth, Seller shall sell and Purchaser shall purchase a certain tract of land identified as the Property as legally described on Exhibit A, attached hereto and made a part hereof, located in the City of Desert Hot Springs, Riverside County, California, together with any and all easements and rights appurtenant thereto, and all of Seller’s right, title, and interest in any public rights-of-way adjoining the property, and any improvements located thereupon the Property (the “Property”).

The following terms, provisions, and conditions are agreed to:

1. Purchase Price. The purchase price for the Property shall be equivalent to the amount of taxes previously paid by the Seller to acquire the property, which is equal to ONE HUNDRED AND ONE THOUSAND THREE HUNDRED SIXTY-ONE AND 31/100 DOLLARS ($101,361.31 ), plus the amount of discounted veterinarian services to be provided by Purchaser as described herein, valued at THREE HUNDRED THOUSAND DOLLARS AND ZERO CENTS (“$300,000.00), for a total purchase price of FOUR HUNDRED AND ONE THOUSAND THREE HUNDRED SIXTY-ONE AND 31/100 DOLLARS ($401,361.31) (“Purchase Price”) and payable as follows:
(a) Escrow Deposit. ONE AND NO/100 DOLLARS ($1.00) (“Escrow Deposit”) paid by Purchaser contemporaneously with the execution of this Agreement, and to be deposited in a non-interest-bearing escrow account with ____________ Title Company (“Title Company”), represented by ________________, Tel: ___-___-____, Email: _______________.

Purchaser’s Federal I. D. Number is: 33-0731853 ; and
(b) Promissory Note. The balance of the Purchase Price shall be paid by way of a promissory note (“Promissory Note”) secured by a first-priority Deed of Trust With Assignment of Rents encumbering the Property (“Trust Deed”). The Promissory Note shall be payable by way of discounts made available by Purchaser to the City’s Animal Services Department at a twenty-five percent (25%) discount from the price of services as indicated on the then current pricing schedule. The pricing schedule for 2025 is attached hereto and is subject Item Number: 4.

2 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
to adjustment from time to time. The amount of each discount per veterinary service applied against the outstanding principal balance of the Promissory Note until such time as the aggregate amount of such discounts plus the Escrow Deposit equals the Purchase Price. The Promissory Note and the Trust Deed are attached hereto as Exhibit B and Exhibit C, respectively, and made a part hereof.
(c) Recordkeeping and Reports. Purchaser shall keep, for no less than four years, full and accurate records, and books of account of all particulars necessary for calculating the aggregate amounts of services discounts given by Purchaser to Seller for services for animals in the care of the City of Desert Hot Springs Animal Services Department and which are to be applied against the outstanding principal balance of the Promissory Note as set forth above. (d) Audit Right. Upon not less than thirty (30) days prior written notice to Purchaser, Seller shall have the right to appoint a qualified, licensed auditor, reasonably acceptable to Purchaser, to examine the business records of Purchaser, no more than once per year, for the sole purpose of verifying the accuracy of the total aggregate amount of services discounts given by Purchaser to residents of the City as set forth above in this Agreement (which amount is applied against the outstanding principal balance of the Promissory Note. Such auditor shall enter into a confidentiality agreement with Purchaser and such examination shall be conducted during Purchaser's regular business hours. All expenses of such examination shall be borne by Seller; provided, however, that, if any such examination determines that amounts to be applied against the outstanding principal balance of the Promissory Note are overstated by ten percent (10%) or more, then Purchaser shall pay the full cost of the auditor’s examination. The parties will meet within ten (10) days after completion of the examination to discuss the results. .

2. NOTICES. All notices and other communications required or permitted to be given hereunder shall be in writing and shall be mailed by certified or registered mail, postage prepaid, or nationally recognized overnight courier, and shall be considered given upon receipt or rejection of receipt, addressed as follows (other information in italics is for informational purposes only, and shall not be considered for notice purposes) (except that title objection letters and response letters pursuant to Section 11 shall be allowed to be delivered via e-mail to the email address(es) listed herein, and shall be considered delivered the same day if sent prior to 5:00 pm CT, or if sent after 5:00 pm CT, delivery shall be considered to be the following business day):

If to Seller: If to Purchaser:

Desert Hot Springs
Financing Corporation Greater Palm Springs Animal Allies 11999 Palm Drive 4575 E. Mesquite Avenue
Desert Hot Springs, CA 92240 Palm Springs, CA 92264
Attn: City Manager Attn: Dan Rossi, Executive Director
Tel: (760) 329-6411 Tel: 760.416.5718 x106
Email: [email protected] E-Mail:[email protected] Item Number: 4.

3 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
with a copy to:

Cole Huber LLP
2855 E. Guasti Road, Ste. 402
Ontario, CA 91761
Either party may at any time change its address for notification purposes by written notice to the other party setting forth the new address, and such new address shall be effective ten (10) days after such notice is given.

3. BROKERS. Seller and Purchaser represent one to the other that no real estate agent or broker have negotiated this Agreement and each party agrees to indemnify the other party against any claims by any real estate agent or broker that might arise from any brokerage commission agreements entered into by the indemnifying party.

4. DUE DILIGENCE PERIOD, INSPECTIONS.
(a) Purchaser shall have FORTY-FIVE (45) days following the Effective Date (the “Due Diligence Period”) to conduct any and all studies and inspections that Purchaser deems necessary, subject to the terms of this Agreement. In the event Purchaser discovers that the physical condition of the Property will prevent Purchaser from reasonably operating the Animal Clinic (defined in Section 7(b) below) from the Property, Purchaser may rescind this Agreement and the Escrow Deposit will be refunded to Purchaser, provided, however, that Purchaser has exercised such rescission right by giving Seller and Title Company written notice with evidence of such condition no later than the expiration of the Due Diligence Period. (b) Purchaser acknowledges that the City has provided Purchaser with a copy of its most recent building inspection report(s). Purchaser and the City shall meet and confer in good faith to mutually agree on the remedial actions the City will take to resolve any problems/issues discovered in such inspection reports. In the event the Purchaser and City are unable to agree on such remedial actions, Purchaser may rescind this Agreement and the Escrow Deposit will be refunded to Purchaser, provided, however, that Purchaser has exercised such rescission right by giving Seller and Title Company written notice with evidence of such condition no later than the expiration of the Due Diligence Period. (c) Purchaser, at Purchaser’s sole cost and responsibility, shall use commercially reasonable efforts, following the Closing, to obtain the approval of all public and governmental authorities necessary to pull a Certificate of Occupancy for, and open for business, the Animal Clinic , and its signage in accordance with all local municipality standards.

Purchaser covenants to try to obtain such approvals and permits in a diligent and expeditious manner.
(d) Following the Closing, the City will take commercially reasonable steps to assist Purchaser in promoting the opening of the Animal Clinic .

Item Number: 4.

4 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240

5. CLOSING. The Closing shall take place at the office of the Title Company no later than the earlier to occur of the following (“Closing”): (a) THIRTY (30) days following the end of the Due Diligence Period . Prior to Closing, Title Company shall prepare closing statements. Seller reserves the sole right to extend the Closing by a period of up to sixty (60) days. In the event Purchaser fails to close at the time required herein, except for default of Seller, Title Company is hereby directed by Purchaser and Seller to transfer the Escrow Deposit to Seller.

6. CLOSING COSTS. Purchaser shall pay all closing costs not specifically set forth herein to be the responsibility of Seller. Purchaser and Seller shall pay their own attorney’s fees.

7. COVENANTS, CONDITIONS, AND RESTRICTIONS.
(a) Purchaser covenants that the Property shall only be used as an Animal Clinic and will not be used for or in support of any of the following:
(i) adult book store, adult video store (an adult video store is a video store that sells or rents videos that are rated NC-17, X, XX, XXX, or of a rating assigned to works containing material more sexually explicit than XXX, by the film rating board of the Classification and Rating Administration), “adult” business activities, including without limitation any massage parlor, escort service, facility with nude (or partially nude, bathing suitclad or lingerie-clad) models or dancers or any establishment selling or exhibiting sexually explicit materials;
(ii) pawn shop, bar, night club, gaming activities (including but not limited to gambling, electronic gaming machines, slot machines and other devices similar to the aforementioned), billiard parlor, any place of recreation/amusement, or any business whose principal revenues are from the sale of alcoholic beverages for on or off premises consumption; (iii) any business that cashes checks or makes short-term or “payday advance” type loans (but not excluding the regular business of any bank or financial institution insured by F.D.IC. or mortgage brokerage firm or other similar business providing long-term, mortgage type loans);
(iv) any business or facility used in growing, delivering, transferring, supplying, dispensing, dispersing, distributing or selling marijuana or any synthetic substance containing tetrahydrocannabinol, any psychoactive metabolite thereof, or any substance chemically similar to any of the foregoing, whether by prescription, medical recommendation or otherwise, and whether consisting of live plants, seeds, seedlings or processed or harvested portions of the marijuana plant; or (v) involuntary human detention or incarceration (collectively, the “Noxious Use Restrictions”).
(b) The Property shall be used for a full-time Animal Clinic (the “Animal Clinic ”), including the following services (and for no other use whatsoever): (i) general Item Number: 4.

5 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
practice including, but not limited to, health exams (eyes, ears, nose, mouth, skin), blood work, fecal and urine analysis, tissue samples, x-rays, ultrasound, pet dental assessment, diet assessment, health diagnosis and treatment plans, prescription of medications, vaccines, microchipping, medical groom, hygiene services (anal gland express, ear clean, and nail trim; (ii) urgent care including, but not limited to, same day or next day exams, diagnosis and treat, triage care for serious injury and/or injury; (iii) surgical care (non-spay/neuter) including, but not limited to, mass removals, laceration repair, oral/dental surgery; (iv) spay/neuter services including, but not limited to, public pet spay/neuter, City animal shelter spay/neuter, grantfunded spay/neuter clinics; and (v) grant-funded financial aid opportunities for local, incomequalifying City residents. (c) The Animal Clinic shall be sufficiently staffed to provide the agreed upon veterinary services but with a minimum of: (i) one (1) general practice doctor of veterinary medicine (“DVM”), and one (1) veterinary technician ;
(d) The hours of operation, the services offered, and staffing of the Animal Clinic, as described in Sections 7(b) and 7(c) above are in the sole discretion of the Purchaser and may vary depending on Purchaser’s ability to attract and retain additional DVMs and support staff.
(e) Purchaser shall provide animal welfare and veterinary services for animals in the care of the City of Desert Hot Springs in an amount equal to seventy-five percent of Purchaser’s otherwise stated or advertised prices until the Promissory Note is paid in full.

Thereafter, Purchaser shall continue to provide said services in an amount equal to ninety percent ( 90%) of Purchaser’s otherwise stated or advertised prices. (f) All such covenants, conditions, restrictions, and the Deed Restrictions (defined in Section 18 below), shall remain in effect for a period of fifty (50) years from the recording of this Deed. The Noxious Use Restrictions shall remain in effect for the maximum amount of time allowed by law but in no event fewer than one hundred (100) years from the recording of this Deed. The aforesaid covenants, conditions, and restrictions, as well as the Deed Restrictions, shall run with and bind the Property, and shall bind Purchaser or an affiliated entity, or its successors or assigns, and shall inure to the benefit of and be enforceable by Seller, or an affiliated entity, and its successors and assigns, by any appropriate proceedings at law or in equity to prevent violations of such covenants, conditions, restrictions, as well as the Deed Restrictions, and/or to recover damages for such violations, including without limitation damages incurred by Seller, or an affiliated entity.

8. DEFAULT.
(a) If Purchaser fails or refuses to comply fully with the terms of this Agreement for any reason, Seller may, at its option, either (i) rescind this Agreement and retain the Escrow Deposit as liquidated damages, or (ii) pursue any other legal or equitable remedy to address the alleged failure to comply with the terms of this Agreement.

Item Number: 4.

6 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
(b) If Seller fails or refuses to comply fully with the terms of this Agreement for any reason, Purchaser may, rescind this Agreement and obtain a refund of the Escrow Deposit plus the cost of any completed repairs or improvements.

9. SURVEY. Purchaser, at Purchaser’s sole responsibility and expense, may obtain a current survey of the Property made in accordance with the “Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys” (adopted 2023) (the “Survey”), certified to Purchaser, Seller and Title Company, no later than forty-five (45) days prior to Closing. Within five (5) days after Purchaser receives the Survey, Purchaser shall furnish a copy of the Survey to Seller and Title Company.

10. TITLE INSURANCE. Provided that the Title Company has received the Deposit, Seller shall on behalf of Purchaser, yet at Purchaser’s sole cost and expenses and no later than fifteen (15) days after the Effective Date, obtain from the Title Company a standard form ALTA Owner’s Title Commitment (“Commitment”) covering the Property and issued by the Title Company. Title Company shall issue a title insurance policy for the Property at Closing. The expense of said title insurance shall be the responsibility of Purchaser. Additional/extended coverage or the deletion of standard exceptions or cancellation fees, if any, shall be the responsibility of the Purchaser. If this Agreement terminates as a result of Purchaser’s default or by Purchaser’s election as otherwise set forth herein, then Purchaser shall be responsible for any cancellation fees charged by the Title Company.

11. OBJECTIONS TO TITLE AND SURVEY. Within fifteen (15) days after Purchaser receives the Commitment and Survey, Purchaser shall furnish Seller a written statement of objections to title or survey matters affecting the Property, it being understood that title exceptions pertaining to liens or encumbrances of a definite or ascertainable amount that may be removed by the payment of money at the time of Closing shall not be deemed to make the Commitment unacceptable, provided Seller satisfies such liens at Closing if then due, whether through the payment of money or the execution of a seller’s affidavit with the Title Company. If no written objection is raised by Purchaser within the aforesaid period, then no objection to title or survey matters shall be raised on or before Closing hereunder, provided always that the state and condition of such title or survey matters has not suffered any materially adverse change between the date of said Commitment and Survey and the date of Closing. (a) If written objection shall be raised by Purchaser within said fifteen (15) days, Seller shall within thirty (30) days of receipt of Purchaser’s written objection:
(i) notify Purchaser in writing that Seller is unable or unwilling to remove or satisfy the matters raised in Purchaser’s written objection, in which case Purchaser shall elect by written notice to Seller within fifteen (15) days thereafter to terminate this Agreement and receive an immediate refund of the Escrow Deposit, or be deemed to have waived such objections; or
(ii) notify Purchaser of Seller’s intent to remove or satisfy the objections within such additional time as may reasonably be required by Seller to affect such removal or Item Number: 4.

7 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
satisfaction, in which case Seller shall be entitled to an appropriate extension of the Closing.

Within fifteen (15) days of receipt of Seller’s election to cure objections, Purchaser shall notify Seller in writing of its election to terminate this Agreement, or otherwise be deemed to have consented to such extension of time to cure in favor of Seller. All exceptions not objected to or otherwise deemed accepted by Purchaser shall be called the permitted exceptions (the “Permitted Exceptions”).
(iii) Seller’s failure to provide notice within thirty (30) days of receipt of Purchaser’s written objection shall be deemed Seller’s election pursuant to subsection (i) above, not to commit to cure such disapproved matters.
(b) Upon a materially adverse change between the Survey provided as referenced in Section 9 and a subsequent update, and/or upon a materially adverse change between the Commitment provided as referenced in Section 10 and a subsequent update (“New Matters”), Purchaser’s written objections as to the New Matters shall be furnished to Seller within five (5) days of Purchaser’s receipt of such updated materials and the objection process of this Section 11 shall duly apply.

12. CONDITION OF PROPERTY. No representations or warranties of any kind have been made by Seller or anyone on its behalf to the Purchaser as to the condition of the Property described herein or any improvements thereon erected, if any, and it is understood and agreed by the parties that the Property is sold “AS IS” AND “WHERE IS” AS OF THE TIME

OF CLOSING, AND WITH ALL FAULTS AND DEFECTS, LATENT OR OTHERWISE,

AND THAT SELLER IS MAKING NO REPRESENTATIONS OR WARRANTIES,

EITHER EXPRESSED OR IMPLIED, BY OPERATION OF LAW OR OTHERWISE,

WITH RESPECT TO THE QUALITY, PHYSICAL CONDITIONS OR VALUE OF THE PROPERTY, THE PROPERTY’S HABITABILITY, SUITABILITY,

MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, THE

PRESENCE OR ABSENCE OF CONDITIONS ON THE PROPERTY THAT COULD

GIVE RISE TO A CLAIM FOR PERSONAL INJURY, PROPERTY OR NATURAL RESOURCE DAMAGES; THE PRESENCE OF HAZARDOUS OR TOXIC

SUBSTANCES, MATERIALS OR WASTE, SUBSTANCES, CONTAMINANTS, OR POLLUTANTS ON, UNDER OR ABOUT THE PROPERTY; OR THE INCOME OR EXPENSES FROM OR OF THE PROPERTY. Before Closing, Seller shall have the right to remove the trash compactor, baler, satellite receiver, burglar alarm monitoring equipment, fire alarm monitoring equipment, energy management system, and marketing signage. If these items have not been removed prior to Closing, Purchaser agrees to cooperate with Seller to allow Seller to remove said systems within fifteen (15) business days following Closing. Seller agrees to repair any damage resulting from said removal. Seller may, within five (5) business days of Closing, disconnect all utilities servicing the Property. Purchaser has relied and will rely exclusively on its own advisors, agents, consultants, counsel, employees, and/or studies investigation and/or inspections with respect to the Property, its condition, value and potential.

Purchaser agrees that, notwithstanding the fact that it has received certain information concerning the Property from the Seller or its agents or consultants, Purchaser has relied solely Item Number: 4.

8 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
upon and will continue to rely solely upon its own analysis of the Property. This Section shall survive the Closing or earlier termination of the Agreement.

13. ENVIRONMENTAL MATTERS. Seller makes no warranty or representation regarding the condition of the Property with respect to environmental matters, including, without limitation, environmental or ecological condition, it being understood that the Purchaser is taking the Property on an “AS IS, WHERE IS – WITH ALL FAULTS AND WITHOUT ANY REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED” basis with regard to all environmental matters.

14. RIGHT OF ENTRY. At any time prior to the Closing, and at Purchaser’s sole expense, Purchaser or its authorized agents shall have the right to enter upon the Property for the purpose of conducting due diligence investigations, including, without limitation, making surveys and site analyses, test borings, and engineering studies. Purchaser shall maintain commercial general liability insurance for all contractors and agents entering the Property with liability limits of at least $1,000,000 per occurrence for bodily injury, personal injury, and property damage liability. Purchaser shall give prior notice to Seller of its intent to enter the Property and such entry shall be at a time and in such a manner as not to interfere with the business operations of Seller or Seller’s tenants on the Property. Purchaser agrees to defend, indemnify and hold harmless Seller from any damages or liability to persons or property that might arise therefrom, and Purchaser agrees to repair, or pay to Seller the cost of, any damages caused to the Property by such entry. Purchaser shall not allow any mechanic’s lien or other lien, charge or order for the payment of money to be filed against the Property and shall defend, indemnify and save harmless Seller against and from all claims, damages, liabilities, penalties, costs, interest charges and expenses (including reasonable attorney’s fees, discovery and investigative costs, and court costs), resulting therefrom. In exercising any rights and privileges herein set forth in this Section, Purchaser shall (i) comply in all respects with all immigration laws, statutes, rules, codes and regulations, (ii) properly maintain all records required by the United States Citizenship and Immigration Services (the “USCIS”), including, without limitation, the completion and maintenance of the Form I-9 for each of Purchaser’s employees, and (iii) respond in a timely fashion to any inspection requests related to such I-9 Forms.

Purchaser shall fully cooperate in all respects with any audit, inquiry, inspection or investigation that may be conducted by the USCIS of Purchaser or any of its employees associated with the early entry upon the Property. Seller may, in its sole discretion, terminate this Agreement immediately if, at any time during this Agreement, (x) that Seller obtains actual knowledge of Purchaser’s violation or breach of any provision of this Section or (y) the USCIS determines that Purchaser has not complied with any of the immigration laws, statutes, rules, codes and regulations of the United States with regard to Purchaser’s early entry upon the Property.

Purchaser shall require all subcontractors performing any work on the Property, prior to closing for Purchaser to comply with the covenants set forth in this Section. The indemnities provided under this Section shall survive the Closing or earlier termination of this Agreement.

15. PURCHASER’S REPORTS. In the event Purchaser fails to close on the Property, then Purchaser hereby agrees to furnish a copy of any survey, soils tests, engineering studies, environmental studies, marketing surveys, when they are obtained, and/or any other nonItem Number: 4.

9 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
confidential data that they may obtain during the time frames within this Agreement to Seller to be included in the project file.

16. TAXES, UTILITIES AND ASSESSMENTS. Real property taxes, water rates, and sewer charges and rents for the then current calendar year, if any, shall be prorated and adjusted on the basis of the actual days to each month. Purchaser is responsible for taxes due on and after the date of Closing. If the Closing shall occur before the tax rate is fixed on the thencurrent year, the apportionment of taxes shall be upon the basis of the tax rate for the preceding year applied to the latest assessed valuation. All prorations shall be adjusted between the parties based on actual taxes for the year in which the Closing occurs at the time that such actual taxes are determined. Seller shall pay assessments for improvements, either general or special, which have been assessed and billed prior to the date of Closing. Purchaser shall pay all other assessments. The provisions of this Section shall survive the Closing. Seller is responsible for taxes due prior to the date of Closing and, by proration, for taxes which are due after Closing but relate to periods prior to Closing.

17. TRANSFER, SALES TAXES, AND FEES. The expense and cost of all Federal, state, and local documentary or revenue stamps, transfer, sales and other taxes (except income taxes), if any, relating to the sale of the Property shall be paid by Purchaser on the date of Closing. Both parties agree to execute any tax returns required to be filed in connection with any such taxes. Any impact, user, standby, connection, or other fee related to the Property or its development shall be the responsibility of Purchaser.

18. DEED. Prior to Closing, Seller shall deliver to Title Company a special warranty deed (“Deed”) which shall warrant title to the Property and defend the same against the lawful claims of all persons claiming by, through and under Seller, but none other, subject to all matters of record and reciting and incorporating the covenants, conditions, and restrictions set forth in Section 7 of this Agreement (“Deed Restrictions”). Said Deed shall be in substantially the same form as attached as Exhibit D. Upon receipt of the entire Purchase Price, Title Company shall record the Deed and other recordable documents as may be delivered in connection with the Closing. It is further understood and agreed that the Deed Restrictions shall be inserted by the Purchaser under this Agreement in every deed or ground lease to be delivered by it conveying lots or plots or other portions of the Property or any interest therein and that such insertions of such Deed Restrictions in such deed or ground lease shall be deemed a part of the consideration of this Agreement. The provisions of this Section shall survive closing.

19. ASSIGNMENT. Purchaser shall not assign this Agreement or any right granted herein without the prior written consent of Seller, which consent may be withheld, conditioned or delayed in Seller’s sole and absolute discretion.

20. CONDEMNATION. If, prior to the Closing, all or any part of the Property shall be condemned by governmental or other lawful authority, Purchaser shall have the option of either (i) completing the purchase, in which event all condemnation proceeds or claims thereof shall be assigned to Purchaser, or (ii) canceling this Agreement, in which event the Escrow Deposit shall be returned to Purchaser and this Agreement shall be terminated with neither party Item Number: 4.

10 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
having any rights against the other, and Seller shall be entitled to any and all condemnation proceeds.

21. DAMAGE OR DESTRUCTION. In the event that the retail building or other improvements on the Property should be damaged or destroyed prior to Closing, and the cost of repairing such damage as estimated by an architect or contractor retained pursuant to the mutual agreement of Seller and Purchaser is:
(a) Less than TWO HUNDRED THOUSAND AND NO/100 DOLLARS
($200,000.00), then Seller, at Seller’s sole expense, shall either: (i) repair such damage as promptly as is reasonably possible, restoring the damaged property at least to its condition immediately prior to such damage, or (ii) reduce the Purchase Price by the cost of repairing such damage; or if said cost is:
(b) Equal to or greater than TWO HUNDRED THOUSAND AND NO/100 DOLLARS ($200,000.00) then Seller or Purchaser, at its sole discretion, may elect to terminate this Agreement in which case the Escrow Deposit will be immediately refunded by Title Company to Purchaser. If neither party elects to terminate, then Seller, at Seller’s sole option shall either: (i) repair such damage as promptly as is reasonably possible, restoring the damaged property at least to its condition immediately prior to such damage; and, in the event such repairs have not been completed prior to Closing, then the Closing shall nevertheless proceed as scheduled and Seller shall complete the repairs thereafter as promptly as is reasonably possible (Purchaser granting Seller entry upon the Property for the purpose); or (ii) Seller shall have the right to reduce the Purchase Price by the cost of repairing such damage.

22. TIME OF ESSENCE; ACCEPTANCE. Time is expressly declared to be the essence of this Agreement.

23. ENTIRE AGREEMENT. This Agreement contains the entire agreement between Purchaser and Seller, and there are no other terms, conditions, promises, undertakings, statements or representations, express or implied, concerning the sale contemplated by this Agreement.

24. HEADINGS. The headings to the Sections hereof have been inserted for convenience of reference only and shall in no way modify or restrict any provisions hereof or be used to construe any such provisions.

25. MODIFICATIONS. The terms of this Agreement may not be amended, waived, or terminated orally, but only by an instrument in writing signed by both Purchaser and Seller.

26. ATTORNEY’S FEES. Seller and Purchaser agree that if either party brings an action against the other party to enforce the terms hereof or to declare rights hereunder each party shall pay their own attorney’s fees and costs incurred therein.

Item Number: 4.

11 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240

27. WAIVER OF JURY TRIAL. Seller and Purchaser do hereby covenant and agree that, except as prohibited by law, and to the full extent permitted by applicable law, in any action, lawsuit, proceeding or counterclaim (collectively, “litigation”) brought or asserted by any party against another party on any matter or matters directly or indirectly based upon, arising out of, under, by virtue of, or related to this Agreement, Seller and Purchaser shall and do hereby knowingly, with full understanding and upon the advice of legal counsel, voluntarily, intentionally, absolutely, irrevocably and expressly waive any right to any trial by jury, unless the subject matter of any such litigation is one in which the waiver of a jury trial is prohibited.

28. SUCCESSORS. This Agreement shall inure to the benefit of and bind the parties hereto and their respective successors/heirs and assigns.

29. GOVERNING LAW. This Agreement shall be governed by and interpreted under the laws of the state of California .

30. NO PRESUMPTION AGAINST DRAFTER. Both parties have freely negotiated this Agreement. In any controversy, dispute, or contest over the meaning, interpretation, validity, or enforceability of this Agreement or any of its terms or conditions, there shall be no inference, presumption, or conclusion drawn whatsoever against either party by virtue of that party having drafted this Agreement or any portion thereof.

31. COUNTERPARTS DEEMED ORIGINAL. This Agreement or any modifications hereof may be executed in one or more counterparts (including by electronic signature), all parties need not be signatories to the same documents, and all counterpart-signed documents shall be deemed to be an original and one instrument.

32. ACTUAL AUTHORITY. Each party warrants and represents that it has the authority and right to enter into this Agreement, and each person executing this Agreement warrants and represents that he/she is fully authorized to do so.

33. LEGAL COUNSEL. By signing this Agreement, Purchaser and Seller acknowledge they have read this Agreement and understand the terms contained herein or have sought the advice of their respective legal counsel.

34. REPRESENTATION OF CONFIDENTIALITY. Purchaser agrees that it, and all of its employees and agents, shall keep confidential the terms of this Agreement. Purchaser specifically recognizes that it is important to Seller that any future negotiations it may have with other purchasers not be impacted by the terms of this arm’s length agreement, and therefore Purchaser shall not disclose any of the economics nor any other terms of this Agreement.

Notwithstanding the above mentioned, Seller, at Seller’s sole and absolute discretion, shall be permitted to release information to the public or any other third party that Seller has entered into this Agreement with Purchaser contemplating the sale of the Property. Notwithstanding the above mentioned, Purchaser may disclose information to its employees, consultants, contractors, attorney(s), lender(s), banker(s), accountant(s), prospective brokers, future tenant(s) and/or investors. This Section shall survive the Closing.

Item Number: 4.

12 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240

35. RADON DISCLOSURE. (IF APPLICABLE) Radon is a naturally occurring radioactive gas that when accumulated in a building in sufficient quantities may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding Radon or Radon testing may be obtained from your County Public Health unit.

36. COMPLIANCE WITH ANTI-TERRORISM ORDERS. Purchaser and each manager, member, officer, director and shareholder in Purchaser, and all beneficial owners of Purchaser and any such manager, member, officer, director and shareholder (collectively, the “Purchaser’s Associates”), are in compliance and will remain in compliance with the requirements of Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the “Order”) and other similar requirements contained in the rules and regulations of the Office of Foreign Asset Control, U.S. Department of the Treasury (OFAC) and in any enabling legislation or other Executive Orders in respect thereof (the Order and such other rules, regulations, legislation or orders are collectively called the “Orders”). Further, Purchaser and Purchaser’s Associates are not listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order, at OFAC’s official website,
http://www.treas.gov/offices/enforcement/ofac/, or at any replacement website or other replacement official publication of such list, and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders.

37. FINAL DATES; DAYS. If the final date of any deadline falls upon a Saturday, Sunday, or holiday recognized by the U.S. Postal Service, then in such event the time of such deadline shall be extended to the next day which is not a Saturday, Sunday, or holiday recognized by the U.S. Postal Service. Wherever in this Agreement the word “days” is used, it shall be considered “calendar days” and not “business days” unless specifically stated otherwise.

38. COMPLIANCE. Purchaser hereby warrants and represents to Seller that in exercising its rights under this Agreement, Purchaser shall comply fully with any federal, state, or local laws, regulations, ordinances, permits or other authorizations.

39. SELLER’S RIGHT OF FIRST REFUSAL TO ACQUIRE PROPERTY.

Concurrent with the Closing, Purchaser hereby grants to the Seller a right of first refusal (the “RFR”) to purchase the Property upon the terms and conditions set forth below:
(a) Term of the RFR. The term of the RFR (the “RFR Term”) shall commence on the Effective Date and shall expire on the date that is Fifty (50) years thereafter (unless sooner terminated pursuant to the provisions set forth below). (b) Consideration of the RFR. The RFR is granted in consideration of the obligations and agreements undertaken by the Seller herein.

Item Number: 4.

13 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
(c) Exercise of the RFR. The RFR may be exercised by the Seller as follows:
(a) In the event Purchaser intends to accept an offer, or otherwise enter into an agreement, to sell the Property to an unrelated third party, Purchaser shall deliver to the Seller written notice of the terms of such potential sales transaction (the “Sale Notice”) and the Seller shall have fifteen (15) days from the date of the Sale Notice to deliver to Purchaser written notice of the Seller’s election to purchase the Property on the terms and conditions of the Sale Notice (the “RFR Notice”) (in the event the Seller does not give timely Purchaser the RFR Notice, the RFR shall immediately terminate without further action by the Seller or Purchaser); or (b) In the event Purchaser does not give the Seller any Sale Notice during the RFR Term, the RFR still may be exercised by the Seller at any time during the RFR Term by the Seller’s delivery to Purchaser of written notice (also considered an “RFR Notice”) of the Seller’s desire to acquire the Property at its fair market value as of the date of the RFR Notice. (d) Purchase and Sale. Provided the RFR has been timely exercised as described above, Purchaser agrees to sell the Property to the Seller, and the Seller agrees to purchase the Property from Purchaser, for a purchase price as indicated above (the “Property Purchase Price”), payable as set forth below, and otherwise on terms and conditions mutually acceptable to the Seller and the Purchaser.
(e) Property Purchase Price and Payment Thereof. The Property Purchase Price shall mean: (a) the price indicated in the Sale Notice, if any; or (b) the cash price that a willing buyer would pay to a willing seller for the Property when neither is acting under compulsion and when both have reasonable knowledge of the relevant facts on the date of the RFR Notice (the “Property FMV”) in the event the Seller gives the RFR Notice to Purchaser and no Sale Notice has been given first by Purchaser. The Property Purchase Price shall be payable in cash.

(f) Property FMV. In the event the Property Purchase Price is the Property FMV, the Seller and the Purchaser shall use their best efforts to mutually agree upon the Property FMV. If the parties are unable to so agree within thirty (30) days of the date of the RFR Notice, the Purchaser shall appoint, within forty (40) days of the date of the RFR Notice, one (1) appraiser, and the Seller shall appoint within forty (40) days of the date of the RFR Notice, one (1) appraiser. The two (2) appraisers shall, within a period of five (5) additional days, agree upon and appoint an additional appraiser. The three (3) appraisers shall, within sixty (60) days after the appointment of the third appraiser, determine the Property FMV in writing and submit their report to all the parties. The Property FMV shall be determined by disregarding the appraiser's valuation that diverges the greatest from each of the other two (2) appraisers' valuations, and the arithmetic mean of the remaining two appraisers' valuations shall be the Property FMV. Each party shall pay for the services of the appraiser selected by it, plus one half of the fee charged by the third appraiser, and one half of all other costs relating to the determination of the Property FMV.
(g) Memorandum of RFR. Seller shall have the right to record against the Property a Memorandum of the RFR in Official Records of Riverside County, California.

Item Number: 4.

14 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
(Signature pages follow)
Item Number: 4.

15 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
IN WITNESS WHEREOF, the Purchaser hereto has executed this Agreement as of the day and year written below.

Friends of the Palm Springs Animal Shelter,
DBA Greater Palm Springs Animal Allies, a
California nonprofit public benefit corporation
By: _________________________
Name:

Its: _________________________
Date: _________________________
IN WITNESS WHEREOF, the Seller hereto has executed this Agreement as of the day and year written below.

CITY OF DESERT HOT SPRINGS
FINANCING CORPORATION, a
nonprofit public benefit corporation
By: _________________________
Name:

Its:

Date: _________________________
Item Number: 4.

16 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
Exhibit A
to Animal Clinic Purchase and Sale Agreement
[The legal description below, if any, is provided for informational purposes only. An updated legal description of the Property shall be inserted herein upon completion of the Survey and Title Commitment] The following described real property in the City of Desert Hot Springs, County of Riverside, State of California:

Lot 307 and 308 of Hot Springs Oasis Unit No. 3 as per map recorded in Book 38, pages 20 and 21, of Maps in the office of the County Recorder of said County.

Item Number: 4.

17 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
Exhibit B
to Animal Clinic Purchase and Sale Agreement
(Promissory Note)
Item Number: 4.

18 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
Exhibit C
to Animal Clinic Purchase and Sale Agreement
(Trust Deed)
Item Number: 4.

19 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
Exhibit D
to Agreement of Sale
(Special Warranty Deed)
Return recorded document to:

SPECIAL WARRANTY DEED
This SPECIAL WARRANTY DEED is made effective _____________, 2024, between City of Desert Hot Springs Financing Corporation, a nonprofit public benefit corporation, with an address of 11999 Palm Drive, Desert Hot Springs, California 92240 (“Grantor”); and Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies, a California nonprofit public benefit corporation, with an address of 72120 Pet Land Place, Thousand Palms, California 92276 (“Grantee”).

W I T N E S S E T H:

THAT GRANTOR, for and in consideration of the sum of One and No/100 Dollars ($1 .00) and other good and valuable consideration, to it in hand paid by Grantee, the receipt whereof is hereby acknowledged, does hereby forever grant, bargain, sell, convey and confirm to Grantee, and its successors and assigns, a certain tract of land, together with all improvements and fixtures of any kind thereon, including, but not limited to, a retail building, situated, lying, and being in the City of Desert Hot Springs , Riverside County, California, as more particularly described to wit:

See Exhibit “A” attached hereto and made a part hereof (“Property”); TO HAVE AND TO HOLD said Property unto Grantee, and its successors and assigns, forever, with all tenements, appurtenances and hereditaments thereunto belonging, subject to easements, conditions, restrictions and other matters of record.

This conveyance is expressly subject to the following conditions and restrictions:
(a) Purchaser covenants that the Property shall only be used as an animal clinic and will not be used for or in support of any of the following:
(i) adult book store, adult video store (an adult video store is a video store that sells or rents videos that are rated NC-17, X, XX, XXX, or of a rating assigned to works containing material more sexually explicit than XXX, by the film rating board of the Classification and Rating Administration), “adult” business activities, including without limitation any massage parlor, escort service, facility with nude (or partially nude, bathing suitclad or lingerie-clad) models or dancers or any establishment selling or exhibiting sexually explicit materials;
Item Number: 4.

20 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
(ii) pawn shop, bar, night club, gaming activities (including but not limited to gambling, electronic gaming machines, slot machines and other devices similar to the aforementioned), billiard parlor, any place of recreation/amusement, or any business whose principal revenues are from the sale of alcoholic beverages for on or off premises consumption; (iii) any business that cashes checks or makes short-term or “payday advance” type loans (but not excluding the regular business of any bank or financial institution insured by F.D.IC. or mortgage brokerage firm or other similar business providing long-term, mortgage type loans);
(iv) any business or facility used in growing, delivering, transferring, supplying, dispensing, dispersing, distributing or selling marijuana or any synthetic substance containing tetrahydrocannabinol, any psychoactive metabolite thereof, or any substance chemically similar to any of the foregoing, whether by prescription, medical recommendation or otherwise, and whether consisting of live plants, seeds, seedlings or processed or harvested portions of the marijuana plant; or (v) involuntary human detention or incarceration (collectively, the “Noxious Use Restrictions”).
(b) The Property shall be used for a full-time Animal Clinic /Veterinary Practice (“Animal Hospital”) including the following services (and for no other use whatsoever): (i) general practice including, but not limited to, health exams (eyes, ears, nose, mouth, skin), blood work, fecal and urine analysis, tissue samples, x-rays, ultrasound, pet dental assessment, diet assessment, health diagnosis and treatment plans, prescription of medications, vaccines, microchipping, medical groom, hygiene services (anal gland express, ear clean, and nail trim; (ii) urgent care including, but not limited to, same day or next day exams, diagnosis and treat, triage care for serious injury and/or injury; (iii) surgical care (non-spay/neuter) including, but not limited to, mass removals, laceration repair, oral/dental surgery; (iv) spay/neuter services including, but not limited to, public pet spay/neuter, City animal shelter spay/neuter, grantfunded spay/neuter clinics; and (v) grant-funded financial aid opportunities for local, incomequalifying City residents. (c) The Animal Clinic shall be staffed generally as follows: (i) one (1) general practice doctor of veterinary medicine (“DVM”), and other qualified staff as deemed necessary by Purchaser.
(d) The hours of operation, the services offered, and staffing of the Animal Clinic as described in Sections 7(b) and 7(c) above are in the sole discretion of the Purchaser and may vary depending on Purchaser’s ability to attract and retain additional DVMs and support staff. (e) Purchaser shall provide animal welfare and veterinary services for animals in the care of the City of Desert Hot Springs in an amount equal to seventy-five percent of Purchaser’s otherwise stated or advertised prices until the Promissory Note is paid in full. Thereafter, Purchaser shall continue to provide said services in an amount equal to ninety percent (90%) of Purchaser’s otherwise stated or advertised prices.

Item Number: 4.

21 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
(f) All such covenants, conditions, restrictions shall remain in effect for a period of fifty (50) years from the recording of this Deed. The Noxious Use Restrictions shall remain in effect for the maximum amount of time allowed by law but in no event fewer than one hundred (100) years from the recording of this Deed. The aforesaid covenants, conditions, and restrictions, as well as the Deed Restrictions, shall run with and bind the Property, and shall bind Purchaser or an affiliated entity, or its successors or assigns, and shall inure to the benefit of and be enforceable by Seller, or an affiliated entity, and its successors and assigns, by any appropriate proceedings at law or in equity to prevent violations of such covenants, conditions, restrictions, as well as the Deed Restrictions, and/or to recover damages for such violations, including without limitation damages incurred by Seller, or an affiliated entity.

No representations or warranties of any kind have been made by Grantor or anyone on its behalf to the Grantee as to the condition of the Property described herein, including, without limitation, environmental or ecological conditions, or any improvements thereon erected, if any, and it is understood and agreed by the parties that the Property is sold “AS IS, WHERE IS –

WITH ALL FAULTS AND WITHOUT ANY REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED.”
Without limiting the foregoing, Grantee hereby covenants and agrees that Grantee accepts the property “AS IS” and “WHERE IS”, and with all faults and defects, latent or otherwise, and that Grantor is making no representations or warranties, either expressed or implied, by operation of law or otherwise, with respect to the quality, physical conditions or value of the Property, the Property’s habitability, suitability, merchantability or fitness for a particular purpose, the presence or absence of conditions on the Property that could give rise to a claim for personal injury, property or natural resource damages; the presence of hazardous or toxic substances, materials or wastes, substances, contaminants or pollutants on, under or about the Property, or the income or expenses from or of the Property.

AND SAID GRANTOR does hereby warrant the title to said Property, and will defend the same against the lawful claims of all persons claiming by, through and under Grantor, but none other, subject to the easements, encumbrances, restrictions, and other matters of record, the conditions and restrictions as stated herein, and subject to real property taxes for the year of 2024, and thereafter.
[Signature page follows]
Item Number: 4.

22 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
IN WITNESS WHEREOF, Grantor has caused this instrument to be executed in its name by its Director the ___ day of ____________, 2025.

CITY OF DESERT HOT SPRINGS

FINANCING CORPORATION,
a nonprofit public benefit corporation
By:

Name:

Its:

ACKNOWLEDGEMENT
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 )
) ss.

COUNTY OF )
On before me, , Notary Public, personally
appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name is 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 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)
Item Number: 4.

23 Animal Clinic Purchase and Sale Agreement
13700 Palm Drive, Desert Hot Springs, CA 92240
Exhibit A
to Special Warranty Deed
[Legal Description]
The following described real property in the City of Desert Hot Springs, County of Riverside, State of California:

Lot 307 and 308 of Hot Springs Oasis Unit No. 3 as per map recorded in Book 38, pages 20 and 21, of Maps in the office of the County Recorder of said County.

Item Number: 4.

Secured Purchase Money Promissory Note Page 1
_____ _____

SECURED PURCHASE MONEY PROMISSORY NOTE
$____,000.00 Desert Hot Springs, California
______________, 2025
FOR VALUE RECEIVED, the undersigned, Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies, a California nonprofit public benefit corporation (collectively, the “Borrower”), promise to pay to the order of the City of Deseret Hot Springs Financing Corporation, a nonprofit public benefit corporation (the “Lender”), the principal sum of ____________________ and No/100 Dollars ($___,000.00) (the “Principal Sum”) with interest on the unpaid balance of such amount from the date hereof, at the rate of interest specified herein. This Secured Purchase Money Promissory Note (this "Note"), (i) evidences the obligation to repay with interest (and certain other charges and fees) the principal amount hereof (the "Loan", all collateral for which loan, the "Collateral"); and (ii) is or shall prior to funding hereunder be secured by that certain First Priority Deed of Trust, with Assignment of Leases and Rents, Security Agreement and Fixture Filing dated as of even date herewith executed by Borrower in favor of Lender ("Deed of Trust" with all of the foregoing documents, including this Note, being collectively called the "Loan Documents").

1. Repayment. Borrower shall pay to Lender the Principal Sum, with interest from the Effective Date, as follows:

A. For each veterinary service performed by Borrower for the animals in the care of the city, the amount of such discount shall be credited against the Principal Sum until such time as the aggregate amount of such discounts equals the Principal Sum; and
B. a final balloon payment of the remaining and outstanding amount of the Principal Sum on __________ (the “Maturity Date”).

2. Interest Rate and Charges; Prepayment.

2.1. Interest Rate. Interest shall accrue upon all sums evidenced hereby (including, without limitation, any delinquency charge or interest or other charge not paid when due) and all other sums required to be paid by Borrower under any Loan Document at a rate per annum of ___ percent (__.000%). Interest shall be calculated on a 360-day year end, actual days elapsed amortized over a thirty-year period.

2.2. Prepayment. Borrower shall be permitted to prepay any and all amounts due hereunder without penalty. The prepayment may consist of cash or cash-equivalent.

3. Title Insurance. Lender shall have the right to acquire a standard lender’s policy of title insurance insuring the amount of the Principal Sum. Borrower shall pay the premium of any such title policy.

4. Payments by Borrower. All payments on this Note (except for any prepayment of this Note or the payment of the outstanding principal balance of this Note as of the Maturity Date) shall be made by way of credits applied against the Principal Sum in the amount of each discount per spay/neuter veterinary service until the earlier to occur of full payment of the Principal Sum or Item Number: 4.

Secured Purchase Money Promissory Note Page 2
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the Maturity Date. All payments received by Lender on this Note shall be applied by Lender as follows:

4.1. first, to the payment of delinquency or late charges and other expenses payable to Lender on this Note; and

4.2. second, to accrued and unpaid interest then due and owing (including, without limitation any interest set forth in Section 5 below); and then, to reduction of principal; provided, however, that Lender shall at anytime and from time to time have the right, in its sole discretion, to apply payments by Borrower in any other manner Lender may designate, including, without limitation, to the foregoing obligations in any other order, to any other obligations of Borrower hereunder, to any other obligations under any other of the Loan Documents, or to any other obligations of Borrower to Lender.

4.3. Borrower shall keep, for no less than four years, full and accurate records, and books of account of all particulars necessary for calculating the aggregate amounts of spay/neuter veterinary discounts given by Borrower and which are to be applied against the outstanding principal balance of this Note as set forth above.

4.4 Upon not less than ten (10) days prior written notice to Borrower, Lender shall have the right to appoint a qualified, licensed auditor, reasonably acceptable to Borrower, to examine the business records of Borrower, no more than once per year, for the sole purpose of verifying the accuracy of the total aggregate amount of spay/neuter veterinary discounts given by Borrower to residents of the City as set forth above in this Note (which amount is applied against the outstanding principal balance of this Note. Such auditor shall enter into a confidentiality agreement with Borrower and such examination shall be conducted during Borrower's regular business hours. All expenses of such examination shall be borne by Lender; provided, however, that, if any such examination determines that amounts to be applied against the outstanding principal balance of the Promissory Note are overstated by ten percent (10%) or more, then Borrower shall pay the full cost of the examination. The parties will meet within ten (10) days after completion of the examination to discuss how best to respond to any areas of concern identified by the examination.

5. Delinquency Charge. In the Event that Borrower fails to pay any amount of principal, including any balloon payment and/or interest on this Note or any other amount required to be paid under any of the other Loan Documents within ten (10) days after such payment becomes due, whether by acceleration or otherwise, Lender may, at its option, whether immediately or at the time of final payment of the amounts evidenced by this Note (or secured by the Loan Documents), impose a delinquency or late charge equal to six percent (6%) of the amount of each and every such past due payment, notwithstanding the date on which such payment is actually paid to Lender; provided, however, that if any such delinquency or late charge is in excess of the amount permitted to be charged to Borrower under applicable federal or state law, Lender shall be entitled to collect a delinquency or late charge at the highest rate permitted by such law.

Borrower agrees that any such delinquency or late charge shall not be deemed to be additional interest or a penalty but shall be deemed to be liquidated damages because of the difficulty in computing the actual amount of damages in advance and that such charges are the reasonable estimate of Lender and Borrower of the fair average compensation for the loss that may be Item Number: 4.

Secured Purchase Money Promissory Note Page 3
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sustained in such event by Lender. Until any and all such delinquency charges are paid in full, the amount thereof shall be added to the indebtedness secured by the Deed of Trust.

6. Default Rate of Interest. Should default be made in payment of any of the indebtedness evidenced by the Note or any other amount required to be paid under any of the other Loan Documents, whether before or after the entire principal amount hereof or thereof shall become due and payable (whether by acceleration, at maturity, or otherwise), the entire unpaid balance of principal, accrued interest, and previously unpaid delinquency or late charges shall bear interest at the rate of fourteen percent (14%) per annum.

7. Acceleration. In the event Borrower fails to pay any installment of principal and/or interest on this Note when due or upon the happening of any other default hereunder or under any of the other Loan Documents (any such failure to pay or other default hereunder or under any of the other Loan Documents, an "Event of Default" hereunder), then and in any such event, Lender may at its option (after any applicable statutory cure period has expired), declare the entire unpaid balance of this Note, together with interest accrued thereon, and all other charges due hereunder and under the other Loan Documents, to be immediately due and payable, and Lender may proceed to exercise any rights or remedies that it may have under this Note, the Deed of Trust, or any of the other Loan Documents, or any such other rights and remedies which Lender may have at law, inequity, or otherwise. In the event of such acceleration, Borrower may discharge its obligations hereunder to Lender by paying the entire balance hereof as of the date of such payment, plus accrued but unpaid interest and delinquency or the late charges computed in the manner set forth above.

8. Costs of collection. After default, in addition to principal, interest, and delinquency or late charges, Lender shall be entitled to collect all costs of collection, including, without limitation, reasonable attorney fees, whether or not suit on this Note or any foreclosure proceeding is filed, and all such costs and expenses shall be payable on demand and until paid shall also be secured by the Collateral held by Lender as security for Borrower's obligations to Lender under the Deed of Trust and the other Loan Documents and shall accrue interest at the rate so specified in Section 6 above.

9. Enforcement of Remedies by Lender; No Waiver for Failure to Enforce.

9.1. Remedies. In addition to the rights, powers, and remedies given under this Note, the Deed of Trust, or the other Loan Documents, Lender may, in its sole and absolute discretion, at any time and from time to time, exercise any and all rights and powers and pursue any and all remedies now or hereafter given by law or in equity including, without limitation, any rights and remedies granted it by the Loan Documents, or by California law.

9.2. No Waiver.

A. Failure to Exercise Remedy. The failure to exercise any right or remedy given Lender in this Note or the Loan Documents or by law or equity, shall not be deemed a waiver of that right or remedy unless Lender has so agreed, expressly and in writing, and the failure to so exercise any right or remedy, if any Event of Default shall occur, shall not preclude Lender from exercising any right or Item Number: 4.

Secured Purchase Money Promissory Note Page 4
_____ _____
remedy given this Note, or the other Loan Documents or by law or equity in case of one or more subsequent Events of Default.

B. Continuing Waiver. The written waiver by Lender of any Event of Default by Borrower hereunder, or of any default or Event of Default under any of the Loan Documents, shall not constitute a continuing waiver or a waiver of any other defaults or Events of Default or of the same default or Event of Default on any future occasion.

C. Course of Dealing. No course of dealing between Borrower and Lender and no delay on the part of Lender in exercising its rights under this Note or any of the other Loan Documents, shall operate as a waiver of the rights of Lender.

D. Failure to Accelerate Debt. Unless Lender has agreed in writing, no failure to accelerate the debt evidenced hereby by reason of the occurrence of any default or Event of Default hereunder, or acceptance of a past due installment to principal or interest, or any indulgence granted from time to time, shall be construed to be a waiver of the right to insist upon prompt payment thereafter or the right to impose delinquency or other charges retroactively or prospectively as a novation of the Note, as a reinstatement of the debt evidenced hereby (except as expressly provided by law), or as a waiver of any right of acceleration or any other right which the Lender may have, whether by the laws of the state governing this Note, by agreement, or otherwise; and Borrower and each endorser or guarantor hereby expressly waives the benefit of any result contrary to or in conflict with the foregoing.

E. Sums Paid After Due Date. By accepting payment of any sums secured hereby after their due date, Lender does not waive any late payment charge thereon not then paid, or its rights either to require prompt payment when due of all other sums so secured or evidenced hereby, or to declare a default for failure to timely pay such sums.

F. General. No covenant or other provision of this Note or of any of the other Loan Documents, nor any default or Event of Default in connection therewith, may be waived otherwise than by a written instrument signed by the parties so waiving such covenant or other provisions of default or Event of Default; provided, however, that no such waiver shall extend to or impair any obligation not expressly waived nor impair any right otherwise consequent on such covenant, provision, or default or Event of Default. Any waiver, which may be given by the Lender, shall be subject to satisfaction of conditions stated therein. Nothing herein shall be deemed to be a waiver of any right which Lender may have under Sections 506(a), 506(b), 1111(b), or any other provision of Title 11 of the United States Code, as amended from time to time (the "Bankruptcy Code"), to file a claim for the full amount of debt owing to Lender by Borrower or to require that all Collateral shall continue to secure all of the indebtedness owing to Lender in accordance with the Deed of Trust and other Loan Documents.

Item Number: 4.

Secured Purchase Money Promissory Note Page 5
_____ _____

10. Waivers by Borrower. Except as otherwise prohibited by law, Borrower, and each endorser or guarantor of this Note hereby:

10.1. waives presentment for payment, protest, demand, any and all lack of diligence or delays in the collection of or the enforcement of the indebtedness or interest or any charges in connection therewith, notice of protest and notice of dishonor or nonperformance and of nonpayment;

10.2. waives and renounces all rights to the benefits of any statute of limitations and any moratorium, appraisement, exemption, and homestead now provided or which may hereafter be provided by any federal or state statute, including, without limitation, exemptions provided by or allowed under the Bankruptcy Code against the enforcement and collection of the obligations evidenced by this Note and any and all extensions, renewals, and modifications hereof;

10.3. waives and renounces any and all redemption rights and the benefits of valuation and appraisal privileges as against this indebtedness or any renewal or extension thereof;

10.4. consents to any extension of time, release of any collateral, and any other indulgence or forbearance whatsoever; and

10.5. waives, except as may be provided elsewhere herein or in the Deed of Trust, any defense to the enforcement of this Note based on the election of remedies by Lender including, without limitation, any election of remedies which destroys or otherwise impairs and subrogation rights Borrower may have for reimbursement.

11. Anti-Usury Provisions; "Savings" Clause. Borrower acknowledges that this Loan is a purchase money loan and that this Note and the Loan are therefore exempt from the maximum interest rate limitations set forth in Article XV of California Constitution. It is the intention of the parties to conform strictly to the usury laws, whether state or federal, applicable to this Note. All agreements between Borrower and Lender, whether now existing or hereafter arising and whether oral or written, are hereby expressly limited so that in no contingency or event whatsoever, whether by acceleration of maturity hereof or otherwise, shall the amount paid or agree to be paid to Lender or to the holder hereof, or collected by Lender or such holder, for the use, forbearance, or detonation of the money to be loaned hereunder or otherwise, or for the payment or performance of any covenant or obligation contained herein or in the Deed of Trust or any other Loan Document given to secure indebtedness of Borrower to Lender, or in any other document evidencing, securing, or pertaining to the indebtedness evidenced hereby, exceed the maximum amount permissible under applicable federal or state usury laws. If under any circumstances whatsoever fulfillment of any provision of this Note, Deed of Trust, or any other Loan Document, at the time performance of such provision shall be due, shall involve exceeding the limit of validity prescribed by law, then the obligation to be fulfilled shall be reduced to the limit of such validity; and if under any circumstances Lender or any other holder hereof shall ever receive an amount deemed interest by applicable law, which would exceed the highest lawful rate, such amount that would be excessive interest under applicable usury laws shall be applied to the reduction of the principal amount owing hereunder or to other indebtedness required to be paid under or secured by the Loan Documents and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal and other such indebtedness, Item Number: 4.

Secured Purchase Money Promissory Note Page 6
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the excess shall be deemed to have been a payment made by mistake and shall be refunded to Borrower (at Borrower's account set forth above) or to any person making such payment on Borrower's behalf. All sums paid or agreed to be paid to the holder hereof for the use, forbearance, or detention of the indebtedness of the Borrower evidenced hereby, outstanding from time to time shall, to the extent permitted by applicable law, and to the extent necessary to preclude exceeding the limit of validity prescribed by law, be amortized, prorated, allocated, and spread from the date of disbursement of the proceeds of this Note until payment in full of the obligation evidenced hereby so that the actual rate of interest on account of such indebtedness does not exceed that which is prescribed by law. The terms and provisions of this paragraph shall control and supersede every other provision of all agreements between Borrower, any endorser or guarantor, and Lender.

12. Governing Law; Venue. This Note shall be governed by and construed under the laws of the State of California, without regard to its principles or conflicts of laws. Borrower hereby submits to exclusive personal jurisdiction in said State for the enforcement of Borrower's obligations hereunder and under Deed of Trust and other Loan Documents, and waives any and all rights under the law of any other state to object to jurisdiction within such state for the purposes of litigation to enforce such obligations of Borrower. The venue where any dispute shall be maintained is the City of Desert Hot Springs, County of Riverside, State of California.

13. Due on Transfer. If Borrower transfers or further encumbers the Collateral, or any portion thereof or interest therein (which shall include, without limitation, any "transfer" as that term is defined in the Deed of Trust), without Borrower first obtaining the written consent of Lender or reconveyance of the Collateral from the lien of the Deed of Trust or other Loan Documents, including the unpaid principal due on this Note, irrespective of the Maturity Date of said indebtedness shall, at the option of Lender, and without notice or demand, become immediately due and payable.

14. Recording Fees. Borrower shall pay any and all recording fees in connection with the recording and reconveyance of the Deed of Trust.

15. Miscellaneous.

15.1. Relationship. The relationship of Borrower and Lender under this Note and the other Loan Documents is, and shall at all times remain, solely that of Borrower and Lender; and Lender neither undertakes nor assumes any responsibility or duty to Borrower or to any third party with respect to the Property. Notwithstanding any other provisions of this Note and the other Loan Documents:

A. Lender is not, and shall not be construed to be, a partner, joint venturer, member, alter ego, manager, controlling person or other business associate or participant of any kind of Borrower, and Lender does not intend to ever assume such status; B. Lender's activities in connection with this Note and the other Loan Documents shall not be "outside the scope of activities of a Lender of money" within the meaning of Section 3434 of the California Civil Code, as amended or recodified from time to time, and Lender does not intend to ever assume any responsibility to any person for the quality, suitability, safety or condition of the Property; and Item Number: 4.

Secured Purchase Money Promissory Note Page 7
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C. Lender shall not be deemed responsible for or a participant in any acts, omissions or decisions of Borrower.

15.2. Amendments. No change, amendment, modification, cancellation, or discharge of this Note, or of any part hereof, or any of the Loan Documents, shall be valid unless the party to be charged therewith shall have consented thereto in writing.

15.3. Assignment. This Note may be assigned or endorsed in whole or in part by Lender.

15.4. Partial Invalidity. Except for the invalidity of the rate of interest as set forth in this Note, which shall be governed by Section 11 above, if any provision of this Note is held by a court of law to be in violation of any applicable local, state, or federal law, judicial decision, or public policy, and if such court should declare such provision of this Note to be illegal, invalid, unlawful, void, voidable, or unenforceable as written, then such provision shall be given full force and effect to the fullest possible extent that it was legal, valid, and enforceable, that the remainder of this Note shall be construed as if such illegal, invalid, unlawful, void, voidable, or unenforceable provision was not contained therein, and that the rights, obligations, and interest of Borrower and Lender hereof under the remainder of this Note shall continue in full force and effect.

15.5. Successors and Assigns. All covenants and agreements herein shall be deemed material, and shall bind Borrower's successors and assigns, whether so expressed or not, and all such covenants shall inure to the benefit of Lender hereof and its nominees, successors, and assigns, whether so expressed or not.

15.6. Waiver of Setoff. Borrower hereby waives any and all rights of setoff, recoupment, and counterclaim with respect to principal and interest due on this Note and any other payments due Lender under the Loan Documents, including rights of setoff, recoupment, and counterclaim with respect to this Note and the other Loan Documents which may arise from claims, transactions, or occurrences heretofore unknown to Borrower.

15.7. Pay in Currency of United States of America. Principal and interest shall be payable in lawful money of the United States of America.

15.8. Time of Essence. Time is of the essence with regard to Borrower's performance under the terms and provisions of this Note, and any amendment, modification, or revision hereof.

15.9. Extensions of Time for Payment. No extension of time for the payment of this Note or any installment thereof made by agreement with any person now or hereafter liable for payment of this Note shall operate to release, discharge, modify, change, or affect the original liability of Borrower under this Note, either in whole or in part.

15.10. Remedies Cumulative. No right, power, or remedy herein conferred is exclusive of or shall prejudice any other right, power, or remedy of Lender given by law or by the terms of any of the Loan Documents; all such rights, powers, and remedies of Lender being cumulative. Each such right, power, or remedy may be exercised by Lender from time to time as often as it deems necessary.

Item Number: 4.

Secured Purchase Money Promissory Note Page 8
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15.11. Cross-Default. Any default by Borrower in the performance or observance of any covenant, promise, condition, or agreement hereof shall be deemed an Event of Default under each of the Loan Documents entitling Lender to exercise any and all remedies available to Lender under the terms of any or all Loan Documents.

15.12. Check Return Fee. Should any check paid to Lender be returned by the financial institution drawn against for any reason, Borrower shall immediately pay to Lender a check return fee of $45.00 per each such returned check.

15.13. Captions. The captions or headings at the beginning of each Paragraph hereof are for the convenience of the parties and are not part of this Note. [SIGNATURES FOLLOW ON NEXT PAGE]
Item Number: 4.

Secured Purchase Money Promissory Note Page 9
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IN WITNESS WHEREOF, Borrower has executed this Note on the date first written above.

Friends of the Palm Springs Animal Shelter,
a California nonprofit public benefit
corporation
By: _________________________
Name:

Its: _________________________
Date: _________________________
Item Number: 4.

1 FIRST PRIORITY DEED OF TRUST,

ASSIGNMENT OF LEASES AND RENTS,

SECURITY AGREEMENT AND FIXTURE FILING
This FIRST PRIORITY DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (as amended, restated, replaced, supplemented, or otherwise modified from time to time, the “Security Instrument”) dated as of _____________, 2025, is executed by Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies, a California nonprofit public benefit corporation, as grantor (“Borrower”), to Chicago Title Company, a California corporation, as trustee (“Trustee”), for the benefit of the City of Desert Hot Springs Financing Corporation, a nonprofit public benefit corporation, as beneficiary (“Lender”).

Borrower, in consideration of (i) the loan in the original principal amount of ____________________ and 00/100 Dollars ($______000.00) (the “Mortgage Loan”) evidenced by that certain Promissory Note dated as of the date of this Security Instrument, executed by Borrower and made payable to the order of Lender (as amended, restated, replaced, supplemented, or otherwise modified from time to time, the “Note”), and (ii) the trust created by this Security Instrument (collectively, the “Loan Documents”), and to secure to Lender the repayment of the Indebtedness (as defined in this Security Instrument), and all renewals, extensions and modifications thereof, and the performance of the covenants and agreements of Borrower contained in the Loan Documents, irrevocably and unconditionally mortgages, grants, warrants, conveys, bargains, sells, and assigns to Trustee, in trust, for benefit of Lender, with power of sale and right of entry and possession, the Mortgaged Property (as defined in this Security Instrument), including the real property located in Riverside County, State of California, and described in Exhibit A attached to this Security Instrument and incorporated by reference (the “Land”), to have and to hold such Mortgaged Property unto Trustee and Trustee’s successors and assigns, forever; Borrower hereby releasing, relinquishing, and waiving, to the fullest extent allowed by law, all rights and benefits, if any, under and by virtue of the homestead exemption laws of the Property Jurisdiction (as defined in this Security Instrument), if applicable.

Borrower represents and warrants that Borrower is lawfully seized of the Mortgaged Property and has the right, power and authority to mortgage, grant, warrant, convey, bargain, sell, and assign the Mortgaged Property, and that the Mortgaged Property is not encumbered by any Lien (as defined in this Security Instrument) other than Permitted Encumbrances (as defined in this Security Instrument). Borrower covenants that Borrower will warrant and defend the title to the Mortgaged Property against all claims and demands other than Permitted Encumbrances.

Borrower, and by their acceptance hereof, each of Trustee and Lender covenants and agrees as follows:

Item Number: 4.

2 1. Defined Terms.

All terms used and not specifically defined herein, but which are otherwise defined by the UCC, shall have the meanings assigned to them by the UCC. The following terms, when used in this Security Instrument, shall have the following meanings:
“Condemnation Action” means any action or proceeding, however characterized or named, relating to any condemnation or other taking, or conveyance in lieu thereof, of all or any part of the Mortgaged Property, whether direct or indirect.
“Enforcement Costs” means all expenses and costs, including reasonable attorneys’ fees and expenses, fees and out-of-pocket expenses of expert witnesses and costs of investigation, incurred by Lender as a result of any Event of Default, or in connection with efforts to collect any amount due, under the Loan Documents, or to enforce the provisions of the Loan Documents, including those incurred in post-judgment collection efforts and in any bankruptcy or insolvency proceeding (including any action for relief from the automatic stay of any bankruptcy proceeding or Foreclosure Event) or judicial or non-judicial foreclosure proceeding, to the extent permitted by law.
“Event of Default” has the meaning set forth in the Loan Documents. “Fixtures” means all Goods that are so attached or affixed to the Land or the Improvements as to constitute a fixture under the laws of the Property Jurisdiction. “Goods” means all of Borrower’s present and hereafter acquired right, title and interest in all goods which are used now or in the future in connection with the ownership, management, or operation of the Land or the Improvements or are located on the Land or in the Improvements, including inventory; furniture; furnishings; machinery, equipment, engines, boilers, incinerators, and installed building materials; systems and equipment for the purpose of supplying or distributing heating, cooling, electricity, gas, water, air, or light; antennas, cable, wiring, and conduits used in connection with radio, television, security, fire prevention, or fire detection, or otherwise used to carry electronic signals; telephone systems and equipment; elevators and related machinery and equipment; fire detection, prevention and extinguishing systems and apparatus; security and access control systems and apparatus; plumbing systems; water heaters, ranges, stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers, and other appliances; light fixtures, awnings, storm windows, and storm doors; pictures, screens, blinds, shades, curtains, and curtain rods; mirrors, cabinets, paneling, rugs, and floor and wall coverings; fences, trees, and plants; swimming pools; exercise equipment; supplies; tools; books and records (whether in written or electronic form); websites, URLs, blogs, and social network pages; computer equipment (hardware and software); and other tangible personal property which is used now or in the future in connection with the ownership, management, or operation of the Land or the Improvements or are located on the Land or in the Improvements. “Imposition Deposits” means deposits in an amount sufficient to accumulate with Lender the entire sum required to pay the Impositions when due.

Item Number: 4.

3 “Impositions” means
(a) any water and sewer charges which, if not paid, may result in a lien on all or any part of the Mortgaged Property;
(b) the premiums for fire and other casualty insurance, liability insurance, rent loss insurance and such other insurance as Lender may require under the Loan Agreement; (c) Taxes; and
(d) amounts for other charges and expenses assessed against the Mortgaged Property which Lender at any time reasonably deems necessary to protect the Mortgaged Property, to prevent the imposition of liens on the Mortgaged Property, or otherwise to protect Lender’s interests, all as reasonably determined from time to time by Lender. “Improvements” means the buildings, structures, improvements, and alterations now constructed or at any time in the future constructed or placed upon the Land, including any future replacements, facilities, and additions and other construction on the Land. “Indebtedness” means the principal of, interest on, and all other amounts due at any time under any of the Loan Documents, including Prepayment Premiums, late charges, interest charged at the Default Rate, and accrued interest as provided in the Loan Documents and this Security Instrument, advances, costs and expenses to perform the obligations of Borrower or to protect the Mortgaged Property or the security of this Security Instrument, all other monetary obligations of Borrower under the Loan Documents, including amounts due as a result of any indemnification obligations, and any Enforcement Costs.
“Land” means the real property described in Exhibit A.
“Leases” means all present and future leases, subleases, licenses, concessions or grants or other possessory interests now or hereafter in force, whether oral or written, covering or affecting the Mortgaged Property, or any portion of the Mortgaged Property (including proprietary leases or occupancy agreements if Borrower is a cooperative housing corporation), and all modifications, extensions or renewals thereof.
“Lien” means any claim or charge against property for payment of a debt or an amount owed for services rendered, including any mortgage, deed of trust, deed to secure debt, security interest, tax lien, any materialman’s or mechanic’s lien, or any lien of a Governmental Authority, including any lien in connection with the payment of utilities, or any other encumbrance. “Mortgaged Property” means all of Borrower’s present and hereafter acquired right, title and interest, if any, in and to all of the following:
(a) the Land;
(b) the Improvements;
Item Number: 4.

4 (c) the Personalty;
(d) current and future rights, including air rights, development rights, zoning rights and other similar rights or interests, easements, tenements, rights-of-way, strips and gores of land, streets, alleys, roads, sewer rights, waters, watercourses, and appurtenances related to or benefitting the Land or the Improvements, or both, and all rights-of-way, streets, alleys and roads which may have been or may in the future be vacated;
(e) insurance policies relating to the Mortgaged Property (and any unearned premiums) and all proceeds paid or to be paid by any insurer of the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property, whether or not Borrower obtained the insurance pursuant to Lender’s requirements;
(f) awards, payments and other compensation made or to be made by any municipal, state or federal authority with respect to the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property, including any awards or settlements resulting from (1) Condemnation Actions, (2) any damage to the Mortgaged Property caused by governmental action that does not result in a Condemnation Action, or (3) the total or partial taking of the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property under the power of eminent domain or otherwise and including any conveyance in lieu thereof; (g) contracts, options and other agreements for the sale of the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property entered into by Borrower now or in the future, including cash or securities deposited to secure performance by parties of their obligations;
(h) Leases and Lease guaranties, letters of credit and any other supporting obligation for any of the Leases given in connection with any of the Leases, and all Rents; (i) earnings, royalties, accounts receivable, issues and profits from the Land, the Improvements or any other part of the Mortgaged Property, and all undisbursed proceeds of the Mortgage Loan and, if Borrower is a cooperative housing corporation, maintenance charges or assessments payable by shareholders or residents;
(j) Imposition Deposits;
(k) refunds or rebates of Impositions by any municipal, state or federal authority or insurance company (other than refunds applicable to periods before the real property tax year in which this Security Instrument is dated);
(l) tenant security deposits;
(m) names under or by which any of the above Mortgaged Property may be operated or known, and all trademarks, trade names, and goodwill relating to any of the Mortgaged Property;
Item Number: 4.

5 (n) Collateral Accounts and all Collateral Account Funds; (o) products, and all cash and non-cash proceeds from the conversion, voluntary or involuntary, of any of the above into cash or liquidated claims, and the right to collect such proceeds; and
(p) all of Borrower’s right, title and interest in the oil, gas, minerals, mineral interests, royalties, overriding royalties, production payments, net profit interests and other interests and estates in, under and on the Mortgaged Property and other oil, gas and mineral interests with which any of the foregoing interests or estates are pooled or unitized. “Permitted Encumbrance” means only the easements, restrictions and other matters listed in a schedule of exceptions to coverage in the Title Policy and Taxes for the current tax year that are not yet due and payable.
“Personalty” means all of Borrower’s present and hereafter acquired right, title and interest in all Goods, accounts, choses of action, chattel paper, documents, general intangibles (including Software), payment intangibles, instruments, investment property, letter of credit rights, supporting obligations, computer information, source codes, object codes, records and data, all telephone numbers or listings, claims (including claims for indemnity or breach of warranty), deposit accounts and other property or assets of any kind or nature related to the Land or the Improvements now or in the future, including operating agreements, surveys, plans and specifications and contracts for architectural, engineering and construction services relating to the Land or the Improvements, and all other intangible property and rights relating to the operation of, or used in connection with, the Land or the Improvements, including all governmental permits relating to any activities on the Land. “Prepayment Premium” has the meaning set forth in the Loan Documents. “Property Jurisdiction” means the jurisdiction in which the Land is located. “Rents” means all rents, revenues and other income from the Land or the Improvements, including parking fees, and tenant security deposits.
“Software” means a computer program and any supporting information provided in connection with a transaction relating to the program. The term does not include any computer program that is included in the definition of Goods.
“Taxes” means all taxes, assessments, vault rentals and other charges, if any, general, special or otherwise, including assessments for schools, public betterments and general or local improvements, which are levied, assessed or imposed by any public authority or quasi-public authority, and which, if not paid, may become a lien, on the Land or the Improvements or any taxes upon any Loan Document.
“Title Policy” has the meaning set forth in the Loan Documents.

Item Number: 4.

6 “UCC” means the Uniform Commercial Code in effect in the Property Jurisdiction, as amended from time to time.
“UCC Collateral” means any or all of that portion of the Mortgaged Property in which a security interest may be granted under the UCC and in which Borrower has any present or hereafter acquired right, title or interest.

2. Security Agreement; Fixture Filing.
(a) To secure to Lender, the repayment of the Indebtedness, and all renewals, extensions and modifications thereof, and the performance of the covenants and agreements of Borrower contained in the Loan Documents, Borrower hereby pledges, assigns, and grants to Lender a continuing security interest in the UCC Collateral. This Security Instrument constitutes a security agreement and a financing statement under the UCC. This Security Instrument also constitutes a financing statement pursuant to the terms of the UCC with respect to any part of the Mortgaged Property that is or may become a Fixture under applicable law, and will be recorded as a “fixture filing” in accordance with the UCC. Borrower hereby authorizes Lender to file financing statements, continuation statements and financing statement amendments in such form as Lender may require to perfect or continue the perfection of this security interest without the signature of Borrower. If an Event of Default has occurred and is continuing, Lender shall have the remedies of a secured party under the UCC or otherwise provided at law or in equity, in addition to all remedies provided by this Security Instrument and in any Loan Document.

Lender may exercise any or all of its remedies against the UCC Collateral separately or together, and in any order, without in any way affecting the availability or validity of Lender’s other remedies. For purposes of the UCC, the debtor is Borrower and the secured party is Lender.

The name and address of the debtor and secured party are set forth after Borrower’s signature below which are the addresses from which information on the security interest may be obtained. (b) Borrower represents and warrants that: (1) Borrower maintains its chief executive office at the location set forth after Borrower’s signature below, and Borrower will notify Lender in writing of any change in its chief executive office within five (5) days of such change; (2) Borrower is the record owner of the Mortgaged Property; (3) Borrower’s state of incorporation, organization, or formation, if applicable, is as set forth on Page 1 of this Security Instrument; (4) Borrower’s exact legal name is as set forth on Page 1 of this Security Instrument; (5) Borrower’s organizational identification number, if applicable, is as set forth after Borrower’s signature below; (6) Borrower is the owner of the UCC Collateral subject to no liens, charges or encumbrances other than the lien hereof; (7) except as expressly provided in the Loan Agreement, the UCC Collateral will not be removed from the Mortgaged Property without the consent of Lender; and (8) no financing statement covering any of the UCC Collateral or any proceeds thereof is on file in any public office except pursuant hereto. (c) All property of every kind acquired by Borrower after the date of this Security Instrument which by the terms of this Security Instrument shall be subject to the lien and the security interest created hereby, shall immediately upon the acquisition thereof by Borrower and without further conveyance or assignment become subject to the lien and security interest created Item Number: 4.

7 by this Security Instrument. Nevertheless, Borrower shall execute, acknowledge, deliver and record or file, as appropriate, all and every such further deeds of trust, mortgages, deeds to secure debt, security agreements, financing statements, assignments and assurances as Lender shall require for accomplishing the purposes of this Security Instrument and to comply with the rerecording requirements of the UCC.
(d) Borrower shall keep, for no less than four (4) years, full and accurate records, and books of account of all particulars necessary for calculating the aggregate amounts of spay/neuter veterinary discounts given by Borrower and which are to be applied against the outstanding principal balance of the Note.
(e) Upon not less than ten (10) days prior written notice to Borrower, Lender shall have the right to appoint a qualified, licensed auditor, reasonably acceptable to Borrower, to examine the business records of Borrower, no more than once per year, for the sole purpose of verifying the accuracy of the total aggregate amount of spay/neuter veterinary discounts given by Borrower to residents of the City as set forth in the Note (which amount is applied against the outstanding principal balance of the Note). Such auditor shall enter into a confidentiality agreement with Borrower and such examination shall be conducted during Borrower's regular business hours. All expenses of such examination shall be borne by Lender; provided, however, that, if any such examination determines that amounts to be applied against the outstanding principal balance of the Promissory Note are overstated by ten percent (10%) or more, then Borrower shall pay the full cost of the examination. The parties will meet within ten (10) days after completion of the examination to discuss how best to respond to any areas of concern identified by the examination.

3. Assignment of Leases and Rents; Appointment of Receiver; Lender in Possession. (a) As part of the consideration for the Indebtedness, Borrower absolutely and unconditionally assigns and transfers to Lender all Leases and Rents. It is the intention of Borrower to establish present, absolute and irrevocable transfers and assignments to Lender of all Leases and Rents and to authorize and empower Lender to collect and receive all Rents without the necessity of further action on the part of Borrower. Borrower and Lender intend the assignments of Leases and Rents to be effective immediately and to constitute absolute present assignments, and not assignments for additional security only. Only for purposes of giving effect to these absolute assignments of Leases and Rents, and for no other purpose, the Leases and Rents shall not be deemed to be a part of the Mortgaged Property. However, if these present, absolute and unconditional assignments of Leases and Rents are not enforceable by their terms under the laws of the Property Jurisdiction, then each of the Leases and Rents shall be included as part of the Mortgaged Property, and it is the intention of Borrower, in such circumstance, that this Security Instrument create and perfect a lien on each of the Leases and Rents in favor of Lender, which liens shall be effective as of the date of this Security Instrument. (b) Until an Event of Default has occurred and is continuing, but subject to the limitations set forth in the Loan Documents, Borrower shall have a revocable license to exercise all rights, power and authority granted to Borrower under the Leases (including the right, power and authority to modify the terms of any Lease, extend or terminate any Lease, or enter into new Leases, subject to the limitations set forth in the Loan Documents), and to collect and receive all Item Number: 4.

8 Rents, to hold all Rents in trust for the benefit of Lender, and to apply all Rents to pay the Monthly Debt Service Payments and the other amounts then due and payable under the other Loan Documents, including Imposition Deposits, and to pay the current costs and expenses of managing, operating and maintaining the Mortgaged Property, including utilities and Impositions (to the extent not included in Imposition Deposits), tenant improvements and other capital expenditures. So long as no Event of Default has occurred and is continuing (and no event which, with the giving of notice or the passage of time, or both, would constitute an Event of Default has occurred and is continuing), the Rents remaining after application pursuant to the preceding sentence may be retained and distributed by Borrower free and clear of, and released from, Lender’s rights with respect to Rents under this Security Instrument. (c) If an Event of Default has occurred and is continuing, without the necessity of Lender entering upon and taking and maintaining control of the Mortgaged Property directly, by a receiver, or by any other manner or proceeding permitted by the laws of the Property Jurisdiction, the revocable license granted to Borrower pursuant to Section 3(b) shall automatically terminate, and Lender shall immediately have all rights, powers and authority granted to Borrower under any Lease (including the right, power and authority to modify the terms of any such Lease, or extend or terminate any such Lease) and, without notice, Lender shall be entitled to all Rents as they become due and payable, including Rents then due and unpaid. During the continuance of an Event of Default, Borrower authorizes Lender to collect, sue for and compromise Rents and directs each tenant of the Mortgaged Property to pay all Rents to, or as directed by, Lender, and Borrower shall, upon Borrower’s receipt of any Rents from any sources, pay the total amount of such receipts to Lender. Although the foregoing rights of Lender are self-effecting, at any time during the continuance of an Event of Default, Lender may make demand for all Rents, and Lender may give, and Borrower hereby irrevocably authorizes Lender to give, notice to all tenants of the Mortgaged Property instructing them to pay all Rents to Lender. No tenant shall be obligated to inquire further as to the occurrence or continuance of an Event of Default, and no tenant shall be obligated to pay to Borrower any amounts that are actually paid to Lender in response to such a notice. Any such notice by Lender shall be delivered to each tenant personally, by mail or by delivering such demand to each rental unit. (d) If an Event of Default has occurred and is continuing, Lender may, regardless of the adequacy of Lender’s security or the solvency of Borrower, and even in the absence of waste, enter upon, take and maintain full control of the Mortgaged Property, and may exclude Borrower and its agents and employees therefrom, in order to perform all acts that Lender, in its discretion, determines to be necessary or desirable for the operation and maintenance of the Mortgaged Property, including the execution, cancellation or modification of Leases, the collection of all Rents (including through use of a lockbox, at Lender’s election), the making of repairs to the Mortgaged Property and the execution or termination of contracts providing for the management, operation or maintenance of the Mortgaged Property, for the purposes of enforcing this assignment of Rents, protecting the Mortgaged Property or the security of this Security Instrument and the Mortgage Loan, or for such other purposes as Lender in its discretion may deem necessary or desirable.

Item Number: 4.

9 (e) Notwithstanding any other right provided Lender under this Security Instrument or any other Loan Document, if an Event of Default has occurred and is continuing, and regardless of the adequacy of Lender’s security or Borrower’s solvency, and without the necessity of giving prior notice (oral or written) to Borrower, Lender may apply to any court having jurisdiction for the appointment of a receiver for the Mortgaged Property to take any or all of the actions set forth in Section 3. If Lender elects to seek the appointment of a receiver for the Mortgaged Property at any time after an Event of Default has occurred and is continuing, Borrower, by its execution of this Security Instrument, expressly consents to the appointment of such receiver, including the appointment of a receiver ex parte, if permitted by applicable law.

Borrower consents to shortened time consideration of a motion to appoint a receiver. Lender or the receiver, as applicable, shall be entitled to receive a reasonable fee for managing the Mortgaged Property and such fee shall become an additional part of the Indebtedness.

Immediately upon appointment of a receiver or Lender’s entry upon and taking possession and control of the Mortgaged Property, possession of the Mortgaged Property and all documents, records (including records on electronic or magnetic media), accounts, surveys, plans, and specifications relating to the Mortgaged Property, and all security deposits and prepaid Rents, shall be surrendered to Lender or the receiver, as applicable. If Lender or receiver takes possession and control of the Mortgaged Property, Lender or receiver may exclude Borrower and its representatives from the Mortgaged Property.
(f) The acceptance by Lender of the assignments of the Leases and Rents pursuant to this Section 3 shall not at any time or in any event obligate Lender to take any action under any Loan Document or to expend any money or to incur any expense. Lender shall not be liable in any way for any injury or damage to person or property sustained by any Person in, on or about the Mortgaged Property. Prior to Lender’s actual entry upon and taking possession and control of the Land and Improvements, Lender shall not be:
(1) obligated to perform any of the terms, covenants and conditions contained in any Lease (or otherwise have any obligation with respect to any Lease); (2) obligated to appear in or defend any action or proceeding relating to any Lease or the Mortgaged Property; or
(3) responsible for the operation, control, care, management or repair of the Mortgaged Property or any portion of the Mortgaged Property.

The execution of this Security Instrument shall constitute conclusive evidence that all responsibility for the operation, control, care, management and repair of the Mortgaged Property is and shall be that of Borrower, prior to such actual entry and taking possession and control by Lender of the Land and Improvements.
(g) Lender shall be liable to account only to Borrower and only for Rents actually received by Lender. Lender shall not be liable to Borrower, anyone claiming under or through Borrower or anyone having an interest in the Mortgaged Property by reason of any act or omission of Lender under this Section 3, and Borrower hereby releases and discharges Lender Item Number: 4.

10 from any such liability to the fullest extent permitted by law, provided that Lender shall not be released from liability that occurs as a result of Lender’s gross negligence or willful misconduct as determined by a court of competent jurisdiction pursuant to a final, non-appealable court order. If the Rents are not sufficient to meet the costs of taking control of and managing the Mortgaged Property and collecting the Rents, any funds expended by Lender for such purposes shall be added to, and become a part of, the principal balance of the Indebtedness, be immediately due and payable, and bear interest at the Default Rate from the date of disbursement until fully paid. Any entering upon and taking control of the Mortgaged Property by Lender or the receiver, and any application of Rents as provided in this Security Instrument, shall not cure or waive any Event of Default or invalidate any other right or remedy of Lender under applicable law or provided for in this Security Instrument or any Loan Document.

4. Protection of Lender’s Security.

If Borrower fails to perform any of its obligations under this Security Instrument or any other Loan Document, or any action or proceeding is commenced that purports to affect the Mortgaged Property, Lender’s security, rights or interests under this Security Instrument or any Loan Document (including eminent domain, insolvency, code enforcement, civil or criminal forfeiture, enforcement of environmental laws, fraudulent conveyance or reorganizations or proceedings involving a debtor or decedent), Lender may, at its option, make such appearances, disburse or pay such sums and take such actions, whether before or after an Event of Default or whether directly or to any receiver for the Mortgaged Property, as Lender reasonably deems necessary to perform such obligations of Borrower and to protect the Mortgaged Property or Lender’s security, rights or interests in the Mortgaged Property or the Mortgage Loan, including:
(a) paying fees and out-of-pocket expenses of attorneys, accountants, inspectors and consultants;
(b) entering upon the Mortgaged Property to make repairs or secure the Mortgaged Property;
(c) obtaining (or force-placing) the insurance required by the Loan Documents; and (d) paying any amounts required under any of the Loan Documents that Borrower has failed to pay.

Any amounts so disbursed or paid by Lender shall be added to, and become part of, the principal balance of the Indebtedness, be immediately due and payable and bear interest at the Default Rate from the date of disbursement until fully paid. The provisions of this Section 4 shall not be deemed to obligate or require Lender to incur any expense or take any action.

5. Default; Acceleration; Remedies.
(a) If an Event of Default has occurred and is continuing, Lender, at its option, may declare the Indebtedness to be immediately due and payable without further demand, and may either with or without entry or taking possession as herein provided or otherwise, proceed by suit Item Number: 4.

11 or suits at law or in equity or any other appropriate proceeding or remedy (1) to enforce payment of the Mortgage Loan; (2) to foreclose this Security Instrument judicially or non-judicially by the power of sale granted herein; (3) to enforce or exercise any right under any Loan Document; and (4) to pursue any one (1) or more other remedies provided in this Security Instrument or in any other Loan Document or otherwise afforded by applicable law. Each right and remedy provided in this Security Instrument or any other Loan Document is distinct from all other rights or remedies under this Security Instrument or any other Loan Document or otherwise afforded by applicable law, and each shall be cumulative and may be exercised concurrently, independently, or successively, in any order.
(b) Borrower acknowledges that the power of sale granted in this Security Instrument may be exercised or directed by Lender without prior judicial hearing. In the event Lender invokes the power of sale:
(1) Lender shall send to Borrower, and any other Persons required to receive such notice, written notice of Lender’s election to cause the Mortgaged Property to be sold. In connection therewith, Borrower hereby authorizes and empowers Trustee to take possession of the Mortgaged Property, or any part thereof, and hereby grants to Trustee a power of sale and authorizes and empowers Trustee to sell (or, in the case of the default of any purchaser, to resell) the Mortgaged Property or any part thereof, in compliance with applicable law, including compliance with any and all notice and timing requirements for such sale;
(2) Trustee shall have the authority to determine the terms of the sale, subject to applicable law. In connection with any such sale, the whole of the Mortgaged Property may be sold in one (1) parcel as an entirety or in separate lots or parcels at the same or different times. Lender shall have the right to become the purchaser at any such sale.

Trustee shall be entitled to receive fees and expenses from such sale not to exceed the amount permitted by applicable law;
(3) Trustee shall deliver to the purchaser of the Mortgaged Property a deed or such other appropriate conveyance document conveying the Mortgaged Property so sold without any express or implied covenant or warranty. The recitals in such deed or document shall be prima facie evidence of the truth of the statements made in those recitals; and
(4) the outstanding principal amount of the Mortgage Loan and the other Indebtedness, if not previously due, shall be and become immediately due and payable without demand or notice of any kind. If the Mortgaged Property is sold for an amount less than the amount outstanding under the Indebtedness, the deficiency shall be determined by the purchase price at the sale or sales.
(c) Borrower acknowledges and agrees that the proceeds of any sale shall be applied as determined by Lender unless otherwise required by applicable law.

Item Number: 4.

12 (d) In connection with the exercise of Lender’s rights and remedies under this Security Instrument and any other Loan Document, there shall be allowed and included as Indebtedness: (1) all expenditures and expenses authorized by applicable law and all other expenditures and expenses which may be paid or incurred by or on behalf of Lender for reasonable legal fees, appraisal fees, outlays for documentary and expert evidence, stenographic charges and publication costs; (2) all expenses of any environmental site assessments, environmental audits, environmental remediation costs, appraisals, surveys, engineering studies, wetlands delineations, flood plain studies, and any other similar testing or investigation deemed necessary or advisable by Lender incurred in preparation for, contemplation of or in connection with the exercise of Lender’s rights and remedies under the Loan Documents; and (3) costs (which may be reasonably estimated as to items to be expended in connection with the exercise of Lender’s rights and remedies under the Loan Documents) of procuring all abstracts of title, title searches and examinations, title insurance policies, and similar data and assurance with respect to title as Lender may deem reasonably necessary either to prosecute any suit or to evidence the true conditions of the title to or the value of the Mortgaged Property to bidders at any sale which may be held in connection with the exercise of Lender’s rights and remedies under the Loan Documents. All expenditures and expenses of the nature mentioned in this Section 5, and such other expenses and fees as may be incurred in the protection of the Mortgaged Property and rents and income therefrom and the maintenance of the lien of this Security Instrument, including the fees of any attorney employed by Lender in any litigation or proceedings affecting this Security Instrument, the Note, the other Loan Documents, or the Mortgaged Property, including bankruptcy proceedings, any Foreclosure Event, or in preparation of the commencement or defense of any proceedings or threatened suit or proceeding, or otherwise in dealing specifically therewith, shall be so much additional Indebtedness and shall be immediately due and payable by Borrower, with interest thereon at the Default Rate until paid. (e) Any action taken by Trustee or Lender pursuant to the provisions of this Section 5 shall comply with the laws of the Property Jurisdiction. Such applicable laws shall take precedence over the provisions of this Section 5, but shall not invalidate or render unenforceable any other provision of any Loan Document that can be construed in a manner consistent with any applicable law. If any provision of this Security Instrument shall grant to Lender (including Lender acting as a mortgagee-in-possession), Trustee or a receiver appointed pursuant to the provisions of this Security Instrument any powers, rights or remedies prior to, upon, during the continuance of or following an Event of Default that are more limited than the powers, rights, or remedies that would otherwise be vested in such party under any applicable law in the absence of said provision, such party shall be vested with the powers, rights, and remedies granted in such applicable law to the full extent permitted by law.

6. Waiver of Statute of Limitations and Marshaling.

To the extent permitted by law, Borrower waives (a) the benefit of all present or future laws providing for any appraisement before sale of any portion of the Mortgaged Property, (b) all rights of redemption, valuation, appraisement, stay of execution, notice of election to mature or declare due the whole of the Indebtedness and marshaling in the event of foreclosure of the lien created by this Security Instrument, (c) all rights and remedies which Borrower may have or be Item Number: 4.

13 able to assert by reason of the laws of the State of California pertaining to the rights and remedies of sureties, (d) the right to assert any statute of limitations as a bar to the enforcement of the lien of this Security Instrument or to any action brought to enforce the Note or any other obligation secured by this Security Instrument, and (e) any rights, legal or equitable, to require marshaling of assets or to require foreclosure sales in a particular order, including any rights under California Civil Code Sections 2899 and 3433. Lender shall have the right to determine the order in which any or all of the Mortgaged Property shall be subjected to the remedies provided by this Security Instrument. Lender shall have the right to determine the order in which any or all portions of the Indebtedness are satisfied from the proceeds realized upon the exercise of the remedies provided by this Security Instrument.

7. Waiver of Redemption; Rights of Tenants.
(a) Borrower hereby covenants and agrees that it will not at any time apply for, insist upon, plead, avail itself, or in any manner claim or take any advantage of, any appraisement, stay, exemption or extension law or any so-called “Moratorium Law” now or at any time hereafter enacted or in force in order to prevent or hinder the enforcement or foreclosure of this Security Instrument. Without limiting the foregoing:
(1) Borrower for itself and all Persons who may claim by, through, or under Borrower, hereby expressly waives any so-called “Moratorium Law” and any and all rights of reinstatement and redemption, if any, under any order or decree of foreclosure of this Security Instrument, it being the intent hereof that any and all such “Moratorium Laws,” and all rights of reinstatement and redemption of Borrower and of all other Persons claiming by, through, or under Borrower are and shall be deemed to be hereby waived to the fullest extent permitted by applicable law; (2) Borrower shall not invoke or utilize any such law or laws or otherwise hinder, delay or impede the execution of any right, power remedy herein or otherwise granted or delegated to Lender but will suffer and permit the execution of every such right, power and remedy as though no such law or laws had been made or enacted; and (3) if Borrower is a trust, Borrower represents that the provisions of this Section 7 (including the waiver of reinstatement and redemption rights) were made at the express direction of Borrower’s beneficiaries and the persons having the power of direction over Borrower, and are made on behalf of the trust estate of Borrower and all beneficiaries of Borrower, as well as all other persons mentioned above. (b) Lender shall have the right to foreclose subject to the rights of any tenant or tenants of the Mortgaged Property having an interest in the Mortgaged Property prior to that of Lender. The failure to join any such tenant or tenants of the Mortgaged Property as party defendant or defendants in any such civil action or the failure of any decree of foreclosure and sale to foreclose their rights shall not be asserted by Borrower as a defense in any civil action instituted to collect the Indebtedness, or any part thereof or any deficiency remaining unpaid Item Number: 4.

14 after foreclosure and sale of the Mortgaged Property, any statute or rule of law at any time existing to the contrary notwithstanding.

8. Notice.
(a) All notices under this Security Instrument shall be:
(1) in writing, and shall be (A) delivered, in person, (B) mailed, postage prepaid, either by registered or certified delivery, return receipt requested, or (C) sent by overnight express courier;
(2) addressed to the intended recipient at its respective address set forth at the end of this Security Instrument; and
(3) deemed given on the earlier to occur of:
(A) the date when the notice is received by the addressee; or (B) if the recipient refuses or rejects delivery, the date on which the notice is so refused or rejected, as conclusively established by the records of the United States Postal Service or such express courier service. (b) Any party to this Security Instrument may change the address to which notices intended for it are to be directed by means of notice given to the other party in accordance with this Section 8.
(c) Any required notice under this Security Instrument which does not specify how notices are to be given shall be given in accordance with this Section 8.

9. Mortgagee-in-Possession.

Borrower acknowledges and agrees that the exercise by Lender of any of the rights conferred in this Security Instrument shall not be construed to make Lender a mortgagee-inpossession of the Mortgaged Property so long as Lender has not itself entered into actual possession of the Land and Improvements.

10. Release.

Upon payment in full of the Indebtedness, Lender shall cause the release of this Security Instrument and Borrower shall pay Lender’s costs incurred in connection with such release.

11. Substitute Trustee.

Lender, at Lender’s option, may from time to time, by a written instrument, appoint a successor trustee, which instrument, when executed and acknowledged by Lender and recorded in the office of the Recorder of the county or counties where the Mortgaged Property is situated, Item Number: 4.

15 shall be conclusive proof of proper substitution of the successor trustee. The successor trustee shall, without conveyance of the Mortgaged Property, succeed to all the title, power and duties conferred upon the Trustee in this Security Instrument and by California law.

12. California State Specific Provisions.
(a) In addition to the provisions of the Loan Agreement, Borrower further agrees that, if Lender accepts a guaranty of only a portion of the Indebtedness, Borrower waives its right under California Civil Code Section 2822(a) to designate the portion of the Indebtedness which shall be satisfied by a guarantor’s partial payment.
(b) Borrower shall not cause or permit any lien (whether or not such lien has priority over the lien created by this Security Instrument) upon the Mortgaged Property imposed pursuant to any environmental laws.
(c) Borrower represents and warrants to Lender that, except as previously disclosed by Borrower to Lender in writing:
(1) at the time of acquiring the Mortgaged Property, Borrower undertook all appropriate inquiry into the previous ownership and uses of the Mortgaged Property consistent with good commercial or customary practice and no evidence or indication came to light which would suggest that the Mortgaged Property has been or is now being used for any prohibited activities or conditions under environmental laws; and (2) the Mortgaged Property has not been designated as “hazardous waste property” or “border zone property” pursuant to Section 25220, et seq., of the California Health and Safety Code.

The representations and warranties in this Section 12 shall be continuing representations and warranties that shall be deemed to be made by Borrower throughout the term of Mortgage Loan, until the Indebtedness has been paid in full.
(d) Without limiting any of the remedies provided in this Security Instrument, Borrower acknowledges and agrees that each of the provisions in this Section 12 is an environmental provision (as defined in Section 736(f)(2) of the California Code of Civil Procedure) made by Borrower relating to the real property security (the “Environmental Provisions”), and that to the extent applicable, Borrower’s failure to comply with any of the Environmental Provisions will be a breach of contract that will entitle Lender to pursue the remedies provided by Section 736 of the California Code of Civil Procedure for the recovery of damages and for the enforcement of the Environmental Provisions.

13. Governing Law; Consent to Jurisdiction and Venue.

This Security Instrument shall be governed by the laws of the Property Jurisdiction without giving effect to any choice of law provisions thereof that would result in the application of the laws of another jurisdiction. Borrower agrees that any controversy arising under or in Item Number: 4.

16 relation to this Security Instrument shall be litigated exclusively in the Property Jurisdiction.

The state and federal courts and authorities with jurisdiction in the Property Jurisdiction shall have exclusive jurisdiction over all controversies that arise under or in relation to any security for the Indebtedness. Borrower irrevocably consents to service, jurisdiction, and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise.

14. Miscellaneous Provisions.
(a) This Security Instrument shall bind, and the rights granted by this Security Instrument shall benefit, the successors and assigns of Lender. This Security Instrument shall bind, and the obligations granted by this Security Instrument shall inure to, any permitted successors and assigns of Borrower under the Loan Agreement. If more than one (1) person or entity signs this Security Instrument as Borrower, the obligations of such persons and entities shall be joint and several. The relationship between Lender and Borrower shall be solely that of creditor and debtor, respectively, and nothing contained in this Security Instrument shall create any other relationship between Lender and Borrower. No creditor of any party to this Security Instrument and no other person shall be a third party beneficiary of this Security Instrument or any other Loan Document.
(b) The invalidity or unenforceability of any provision of this Security Instrument or any other Loan Document shall not affect the validity or enforceability of any other provision of this Security Instrument or of any other Loan Document, all of which shall remain in full force and effect. This Security Instrument contains the complete and entire agreement among the parties as to the matters covered, rights granted and the obligations assumed in this Security Instrument. This Security Instrument may not be amended or modified except by written agreement signed by the parties hereto.
(c) The following rules of construction shall apply to this Security Instrument:
(1) The captions and headings of the sections of this Security Instrument are for convenience only and shall be disregarded in construing this Security Instrument. (2) Any reference in this Security Instrument to an “Exhibit” or “Schedule” or a “Section” or an “Article” shall, unless otherwise explicitly provided, be construed as referring, respectively, to an exhibit or schedule attached to this Security Instrument or to a Section or Article of this Security Instrument.
(3) Any reference in this Security Instrument to a statute or regulation shall be construed as referring to that statute or regulation as amended from time to time. (4) Use of the singular in this Security Instrument includes the plural and use of the plural includes the singular.

Item Number: 4.

17 (5) As used in this Security Instrument, the term “including” means “including, but not limited to” or “including, without limitation,” and is for example only, and not a limitation.
(6) Whenever Borrower’s knowledge is implicated in this Security Instrument or the phrase “to Borrower’s knowledge” or a similar phrase is used in this Security Instrument, Borrower’s knowledge or such phrase(s) shall be interpreted to mean to the best of Borrower’s knowledge after reasonable and diligent inquiry and investigation. (7) Unless otherwise provided in this Security Instrument, if Lender’s approval, designation, determination, selection, estimate, action or decision is required, permitted or contemplated hereunder, such approval, designation, determination, selection, estimate, action or decision shall be made in Lender’s sole and absolute discretion.
(8) All references in this Security Instrument to a separate instrument or agreement shall include such instrument or agreement as the same may be amended or supplemented from time to time pursuant to the applicable provisions thereof. (9) “Lender may” shall mean at Lender’s discretion, but shall not be an obligation.

15. Time is of the Essence.

Borrower agrees that, with respect to each and every obligation and covenant contained in this Security Instrument and the other Loan Documents, time is of the essence.

16. WAIVER OF TRIAL BY JURY.

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH

OF BORROWER AND LENDER (BY ITS ACCEPTANCE HEREOF) (A) COVENANTS

AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE

ARISING OUT OF THIS SECURITY INSTRUMENT OR THE RELATIONSHIP

BETWEEN THE PARTIES AS BORROWER AND LENDER THAT IS TRIABLE OF

RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH

RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS

SEPARATELY GIVEN BY EACH OF BORROWER AND LENDER, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.

ATTACHED EXHIBITS. The following Exhibits are attached to this Security Instrument and incorporated fully herein by reference:
|X| Exhibit A Description of the Land (required)
| | Exhibit B Modifications to Security Instrument
Item Number: 4.

18 [Remainder of Page Intentionally Blank]
Item Number: 4.

IN WITNESS WHEREOF, Borrower has signed and delivered this Security Instrument under seal (where applicable) or has caused this Security Instrument to be signed and delivered by its duly authorized representative under seal (where applicable). Where applicable law so provides, Borrower intends that this Security Instrument shall be deemed to be signed and delivered as a sealed instrument.

BORROWER:

Friends of the Palm Springs Animal Shelter, a California nonprofit public benefit corporation
By: _________________________
Name:

Its: _________________________
Date: _________________________
Item Number: 4.

ACKNOWLEDGEMENT

STATE OF CALIFORNIA )
) ss:

COUNTY OF )
On ______________, 2025, before me, _____________________________________________ Notary Public (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.

Item Number: 4.

EXHIBIT “A”

LEGAL DESCRIPTION
The following described real property in the City of Desert Hot Springs, County of Riverside, State of California:

Lot 307 and 308 of Hot Springs Oasis Unit No. 3 as per map recorded in Book 38, pages 20 and 21, of Maps in the office of the County Recorder of said County.

Item Number: 4.

Memorandum of RFR – Page 1 of 5
When recorded, return to:

City of Desert Hot Springs
111999 Palm Drive
Desert Hot Springs, CA 92240

MEMORANDUM OF RIGHT OF FIRST OFFER
THIS MEMORANDUM OF RIGHT OF FIRST OFFER (the “Memorandum”) is made and entered into as of the ____ day of ___________, 2025, by and between the City of Desert Hot Springs Financing Corporation, a nonprofit public benefit corporation (the “City”) and Friends of the Palm Springs Animal Shelter, DBA Greater Palm Springs Animal Allies, a non-profit 501c3 (“GPSAA”).

WITNESSETH:

WHEREAS, pursuant to that certain Animal Clinic Purchase and Sale Agreement dated ______________, 2025 (the “Purchase Agreement”) by and between the GPSAA, as Buyer, and the City, as Purchaser, GPSAA has purchased from the City, the property described therein, including, without limitation, the real property described more particularly in the legal description attached hereto as Exhibit A and incorporated herein by the reference (the “Property”), together with all rights, privileges, easements, servitudes, rights-of-way and appurtenances belonging or appurtenant to the Property (the foregoing are herein referred to as the “Property”); and WHEREAS, as part of the Purchase Agreement, GPSAA granted to the City a right of first offer to repurchase the Property at its original purchase price and the total amount of the value of payments toward the promissory note on the terms and conditions set forth in the Purchase Agreement (the “RFO”), and the City and GPSAA wish to publish notice of the RFO with respect to the Property; NOW, THEREFORE, the parties hereto agree as follows:

1. In consideration of the terms, covenants and conditions on the City’s part to be kept and performed pursuant to the Purchase Agreement, GPSAA grants to the City the RFO to repurchase the Property from GPSAA and on the terms and conditions set forth in the Purchase Agreement.

2. The respective addresses of the parties hereto are:
“City” “Friends of the Palm Springs Animal Shelter DBA
Desert Hot Springs Greater Palm Springs Animal Allies”
Financing Corporation
11999 Palm Drive 4575 E. Mesquite Ave.

Desert Hot Springs, CA 92240 Palm Springs, CA 92264
Attn: ___________________ Attn: Dan Rossi, Executive Director Item Number: 4.

Memorandum of RFR – Page 2 of 5

3. Right of First Offer.

A. Subject to the terms and conditions specified in this Memorandum, in the event the GPSAA proposes to offer or sell the Property, GPSAA shall first offer to sell the Property to the City at the original purchase price and in accordance with the terms and conditions set forth in the Purchase Agreement. The original purchase price means the price GPSAA paid the City to purchase the Property as reflected in the Purchase Agreement.

B. GPSAA shall deliver written notice of the offer to the City (“Offer Notice”), along with the original purchase price and with the terms and conditions set forth in the Purchase Agreement.

C. City shall have 90 days thereafter to give written notice of its election to purchase the Property on the terms and conditions specified in the Offer Notice.

D. If the City does not elect to purchase the Property within 90 days, then GPSAA may thereafter proceed to offer to sell the Property to any person or persons at a price not less than, and on terms and conditions not materially more favorable to GPSAA than, those specified in the Offer Notice.

If GPSAA does not complete the sale of the Property within 180 days, the right of first offer provided hereunder shall be deemed to be revived and the Property shall not be offered for sale or sold unless first reoffered to the City in accordance with this Memorandum.

E. The Right of First Offer shall apply to any and all attempts to sell the Property.

4. The terms and provisions of the Purchase Agreement and this Memorandum shall run with the land as long as the RFR remains in effect and shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.

5. This Memorandum is intended for recording purposes only, and does not modify, supersede, diminish, add to or change any of the terms and conditions of the Purchase Agreement in any respect.

The terms and conditions of the Purchase Agreement shall control notwithstanding that the terms and conditions of the Purchase Agreement may be inconsistent or vary from those set forth in this Memorandum.

6. This Memorandum may be executed in multiple counterparts or copies, each of which shall be deemed an original hereof for all purposes. One or more counterparts or copies of this Memorandum may be executed by one of the parties hereto, and some different counterparts or copies executed by another party hereto. Each counterpart or copy hereof executed by a party hereto shall be binding upon the party executing the same even though another party may execute one or more different counterparts or copies and all counterparts or copies hereof so executed shall constitute but one and the same instrument. Each party hereto (a “Signing Party”), by execution of a counterpart or copy hereof, expressly authorizes and directs the other parties hereto to detach the signature pages and/or acknowledgment, attestation, witness, jurat or similar pages thereto from the counterpart or copy hereof executed by such Signing Party and affix the same to another identical counterpart or copy hereof such that upon execution of multiple counterparts or copies hereof by all parties hereto, there shall be one counterpart or copy hereof to which are attached signature pages containing signatures of all parties Item Number: 4.

Memorandum of RFR – Page 3 of 5
hereto, together with any such acknowledgment, attestation, witness, jurat or similar pages relating thereto.
[Signatures on following page]
Item Number: 4.

Memorandum of RFR – Page 4 of 5
IN WITNESS WHEREOF, the parties have caused this Memorandum to be executed by their duly authorized representatives as of the day and date first above written.

Friends of the Palm Springs Animal Shelter
DBA Greater Palm Springs Animal Allies
, a California nonprofit public benefit
corporation
By: _________________________
Name:

Its: _________________________
Date: _________________________

CITY OF DESERT HOT SPRINGS
FINANCING CORPORATION, a
nonprofit public benefit corporation
By: _________________________
Name:

Its:

Date: _________________________
Item Number: 4.

Memorandum of RFR – Page 5 of 5
State of California )
County of ________________________ )
On _________________________, before me, _ ______________________ Notary Public, personally appeared, _____________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose 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)
State of California )
County of )
On _________________________, before me, _ ______________________ Notary Public, personally appeared, _____________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose 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)
My Commission Expires: [AFFIX 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.

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.

Item Number: 4.

Memorandum of RFR – Page 6 of 5
Exhibit “A”

LEGAL DESCRIPTION OF THE PROPERTY
The following described real property in the City of Desert Hot Springs, County of Riverside, State of California:

Lot 307 and 308 of Hot Springs Oasis Unit No. 3 as per map recorded in Book 38, pages 20 and 21, of Maps in the office of the County Recorder of said County.

Item Number: 4.

SR-24-232
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 18, 2025
Department: City Manager
Prepared by: Christina Newsom, Acting Deputy City Manager Subject: Camping Restrictions Ordinance
RECOMMENDATION:
1) Adopt (by 4/5 vote of the City Council) and read by title only: "An URGENCY Ordinance of the City Council of the City of Desert Hot Springs, California, amending Chapter 12.04 "Camping Restrictions" of the Desert Hot Springs Municipal Code ("DHSMC");" AND 2) Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, California, amending Chapter 12.04 "Camping Restrictions" of the Desert Hot Springs Municipal Code ("DHSMC").

BACKGROUND:

The United States Supreme Court issued a landmark judgment in Grants Pass v. Johnson on June 28, 2024. This ruling, among other things, established that the Eighth Amendment does not prevent cities from enforcing laws regulating camping on public property, a decision of significant importance to our community.

In response to the Grants Pass decision, Governor Newsom issued an executive order that directed state agencies and departments to establish explicit policies that urgently addressed encampments.

The order also encouraged local agencies to take proactive measures to remove the encampments.

The City expects more encampments to form due to the Governor's Executive Order, which requires state authorities to eradicate unsafe encampments quickly. Closures are forcing encampments to move from nearby cities and places. For instance, Caltrans has begun cleaning encampments on the freeway's on/off approaches, expanding City encampments. The State has encouraged local agencies to remove unsafe encampments and pledged to hold them accountable. The State's tightening and enforcement of local jurisdictions' fair share of housing planning obligations and conditional state financing on rigorous reporting and verifiable performance indicators indicate this commitment.

In encampments, unhoused individuals are subjected to unsanitary conditions, inclement weather, predatory and criminal behavior, and widespread substance use. The cleanliness and usability of parks and other public resources and the safety and viability of local enterprises and neighborhoods are also at risk. These encampments have harmed the environment and city facilities. These encampments and other accommodations are unsanitary for residents and visitors due to public feces, urination, and other unclean conditions.

Item Number: 5.

SR-24-232
In 2023, the City established an Unhoused Access Center known as "The HUB" to accommodate individuals living in hazardous encampments. However, the process of relocating individuals from the public right of ways and public spaces to the HUB has remained challenging. The City has observed increased criminality associated with encampments, and the number of individuals residing in encampments and public spaces remains high. Additionally, the risk of vacant structure fires and public safety concerns increase if individuals live in encampments rather than accept services at The HUB.

PROCEDURE:

This item has two similar ordinances: 1) an Urgency Ordinance Amending Chapter 12.04 "Camping Restrictions" of the Desert Hot Springs Municipal Code, and 2) a Non-Urgency Ordinance Amending Chapter 12.04 "Camping Restrictions" of the Desert Hot Springs Municipal Code. This Urgency Ordinance needs a 4/5 vote of the Council, needs to be supported by findings(which are included in the Urgency Ordinance), and takes effect immediately. That said, the non-urgency ordinance is like any other ordinance, which requires a majority vote and takes effect 30 days after its second reading.

This two-pronged approach is commonly practiced as a belts and suspenders approach.

DISCUSSION:

Implementing measures to establish procedures that regulate these encampments is essential to guarantee the public's safety, health, welfare, and harmony.

If adopted, the ordinance would establish the following regulations:
 Defining specific terms related to homelessness, camping, and encampments.  Instituting regulations for:
o Unauthorized encampments and sleeping on public property. o The abatement of encampments.
o The protection of waterways
o Enforcement and penalties for violations
FISCAL IMPACT:

No fiscal impact.

ENVIRONMENTAL ANALYSIS:

In accordance with the provisions of the California Environmental Quality Act (“CEQA”), this project is Categorically Exempt from environmental review pursuant to Section No. 15061(b)(3) of the California Environmental Quality Act because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment.

ATTACHMENTS:
1) URGENCY Anti-Camping Ordinance
2) NON-URGENCY Anti-Camping Ordinance
Item Number: 5.

ORDINANCE NO. ___

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS, CALIFORNIA AMENDING CHAPTER 12.04 “CAMPING RESTRICTIONS” OF THE DESERT HOT SPRINGS MUNICIPAL CODE (“DHSMC”)
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and
WHEREAS, pursuant to the authority granted the City by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare and safety; and
WHEREAS, on June 28, 2024, the United States Supreme Court issued its ruling in Grants Pass v. Johnson, which, among other things, held that the Eighth Amendment does not prohibit cities from enforcing laws regulating camping on public property; and WHEREAS, following the Grants Pass decision, Governor Newsom issued an executive order directing state agencies and departments to adopt clear policies that urgently address encampments, and encouraging local agencies to take proactive steps to remove the same; and
WHEREAS, The City expects an increase in the number of encampments that will be established in the City as a result of the Governor's Executive Order, which mandates that state agencies promptly begin the process of clearing dangerous encampments. This is due to the fact that encampments are being relocated from neighboring cities and areas as a result of closures. For instance, Caltrans has initiated the process of clearing encampments on the on/off approaches of the freeway, which has already resulted in the expansion and/or expansion of encampments within the City. The State has not only urged local agencies to take proactive steps to remove such dangerous encampments but has also confirmed its commitment to holding local jurisdictions accountable for reducing encampments. This commitment is demonstrated by the State's strengthening and enforcement of requirements that local jurisdictions plan for their fair share of housing and by conditioning state funding on rigorous reporting and measurable performance metrics.

WHEREAS, In accordance with the provisions of California Government Code section 36937, subdivision (b), the City Council has determined that the provisions provided herein are essential for the immediate preservation of the public health, safety, or peace within the City. The health, safety, and well-being of unhoused individuals residing in encampments are adversely affected by unsanitary conditions, extreme weather, predatory and criminal activity, and widespread substance use, among other things. Additionally, the safety and viability of nearby businesses and neighborhoods are jeopardized, and the cleanliness and usability of parks and other public resources are undermined. The City of Desert Hot Springs has been particularly affected by flooding as a result of the presence of encampments in flood zones and other flood-sensitive areas. These encampments have Item Number: 5.

already caused damage to the environment and city facilities. Additionally, the presence of public defecation and public urination, as well as other unhygienic conditions at these encampments and other facilities, results in unsanitary conditions for both the occupants and visitors.

WHEREAS, in 2023, the City established an emergency overnight shelter, “the HUB” to offer accommodations to individuals residing in hazardous encampments. Nevertheless, the process of relocating individuals from public right of ways and public spaces to the HUB has continued to be difficult. The City has observed a rise in the number of individuals residing in encampments and public spaces, which has resulted in a rise in crime associated with encampments. Furthermore, the risk of vacant structure fires and public safety increases as the winter months approach, if individuals continue to reside in encampments rather than the HUB.

WHEREAS, It is imperative to take immediate action in order to establish procedures that regulate these encampments and to ensure the public's safety, health, welfare, and harmony.

WHEREAS, the City Council has determined that it is essential to act with urgency to address dangerous encampments. These encampments subject individuals living in them to unsanitary conditions, extreme weather, predatory and criminal activity, and widespread substance use, among other things, thereby harming their health, safety, and well-being.

Additionally, these encampments threaten the safety and viability of nearby businesses and neighborhoods and undermine the cleanliness and usability of parks and other public resources; and
WHEREAS, the City Council finds that this Ordinance should be adopted on an urgency basis pursuant to the authority in Government Code section 36937(b) which provides that an ordinance passed by the City Council takes effect "immediately" if it is passed by a four-fifths vote of the City Council "for the immediate preservation of the public peace, health or safety" and contains "a declaration of facts constituting the urgency."; and NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Desert Hot Springs as follows:

Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.

Section 2. AMENDING CHAPTER 12.04 “CAMPING RESTRICTIONS” OF THE DESERT

HOT SPRINGS MUNICIPAL CODE
Chapter 12.04 Issuance and Purpose
Item Number: 5.

The public streets, private property, and areas within the City should be readily accessible and available to residents, the public at large, property owners, or lawful tenants, as may be applicable, and maintained in a clean, safe and attractive condition that promotes the quality of life of the citizens. The use of these areas for camping purposes or storage of personal property interferes with such purposes and the rights of owners, lawful tenants, or others, as may be applicable, to use the areas for which they were intended. The provisions of this chapter shall not be implemented in any way to infringe upon the constitutional rights of any person. The purpose of this chapter is to maintain public streets, private property, and areas within the City in a clean and accessible condition.

12.04.020 Definitions.

Unless the particular provisions or the context otherwise requires, the definitions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter.
“Camp” means to pitch or occupy camp facilities; to use camp paraphernalia or both; to sleep outdoors, or in, on or under any structure not intended for human occupancy. for the purpose of, or in a way that facilitates outdoor sheltering for living accommodation purposes or for remaining outdoors overnight.
“Camp facilities” means and includes, but is not limited to, tents, huts, or temporary shelters. “Camp paraphernalia” means and includes, but is not limited to, tarpaulins, cots, beds, sleeping bags, hammocks or non-city-designated cooking facilities and similar equipment.
“Camp paraphernalia” means personal property used to facilitate occupancy of an area and includes personal property typically associated with camping such as tarps, cots, beds, sleeping bags, hammocks, bedding, camp stoves, cooking equipment, buckets, and similar equipment, mattresses, couches, dressers, or other furniture. “Encampment” means one or more temporary, makeshift, or hand-built structures not intended for long-term continuous occupancy, including tents, that are used to shelter one or more persons or their belongings and that are not authorized by the property owner. Encampment includes any camp paraphernalia and personal property associated with or located in or around the structures or tents.
“Habitable” shall refer to a dwelling that has not been declared unfit for habitation by the City or other agency with jurisdiction thereover.
“Nonresidential” is intended to refer to property, or any portion thereof, that is not improved with a habitable dwelling unit.
“Open space” means any undeveloped public property either primarily in its natural state, including canyons, bluffs, and unimproved waterways, or that is held out by the City or used by the public for passive recreational purposes, conservation, habitat preservation, or that maintains or enhances the conservation of natural or scenic resources.

Item Number: 5.

“Park” means any public park or recreation or playground area or building or facility thereon within the City, owned and maintained by the City as a public park or recreation or playground area, whether or not such areas have been formally dedicated to such purpose. “Publicly accessible area” means that portion of any privately owned, nonresidential property that is not enclosed by a City-approved structure, including, but not limited to, vacant land or the exterior of commercial or business establishments.
“Public property” means any property owned or managed by any government entity. “Store” means to put aside or accumulate for use when needed; to put for safekeeping; to place or leave in a location.
“Street” means and includes all highways, avenues, lanes, alleys, courts, places, squares, sidewalks, parkways, curbs, or other public ways in this City that have been or may hereafter be dedicated and open to public use, or such other public property so designated in any law of this state.
“Waste” means any rubbish, solid waste, liquid waste, infectious waste, or medical waste. Waste does not include compost piles, composting or recyclable material properly contained and disposed of in a timely fashion. “Waterway” means all the portions of the Mission Creek, Big Morongo Wash, or any flood control channel located within the boundaries of the City of Desert Hot Springs.

12.04.030 Unlawful camping.

It is unlawful for any person to camp, occupy camp facilities, or use camp paraphernalia in the following areas, except as otherwise provided:

A. Any street;
B. Any public parking lot, publicly accessible area visible from any off-site location, or public property, improved or unimproved.

C. Any Private Property.

1. Overnight camping on private property by persons other than the property owner(s) or lawful tenants is prohibited, except when the overnight camping meets all of the following: (a) is limited to no more than one night; (b) overnight camping is in the rear yard, or in an area of a side yard or front yard that is separated from view from the street by a fence, hedge, or other lawful obstruction; and (c) the property owner or person in lawful possession consents to such overnight camping.

2. Nothing in this chapter is intended to prohibit or make unlawful, activities of an owner of private property or other lawful user of private property that are normally associated with and incidental to the lawful and authorized use of private property for residential or other purposes; and provided further, nothing is intended to prohibit or make unlawful activities of a property owner or other lawful user if such activities are expressly authorized by any State, Federal and local laws, rules, regulation, or policies.

Item Number: 5.

3. Camping shall not be permitted. Where it is conducted in such a manner as to create a public nuisance, including any noise disturbance, as provided in Chapter 8.12 of this Code, inadequate sanitation, or other matters offensive to reasonable persons, nor where the camping activity is of such frequency, intensity or duration as to constitute a use of land prohibited by any provisions of Title 17 of this Code or where the camping and or activities incidental to it constitute a public nuisance.

12.04.030 Unauthorized Encampments or Sleeping on Public Property A. It is unlawful for any person to camp or to maintain an encampment in or upon any public property, including in any street, sidewalk, park, open space, waterway, and banks of a waterway, unless specifically authorized by the City Manager.

B. No person may sleep on public sidewalk, street, alleyway, median, parkway or right of way, or in any pedestrian or vehicular entrance to public or private property abutting a public sidewalk, at any time as a matter of individual and public safety.

C. At all times, it is unlawful for any person to camp, maintain an encampment, or sleep, where such activity poses:

1. An immediate threat or an unreasonable risk of harm to any natural person,

2. An immediate threat or an unreasonable risk of harm to public health or safety, or

3. Disruption to any business, store, religious institution, educational facility, or government services.

D. At all times it is unlawful for any person to camp or maintain an encampment upon any private property.

E. Exceptions
The provisions of this section shall not apply to the following:

1. In the event of a declared state of emergency.

2. Nor to events sponsored and conducted by and under the direction and control of the City.

3. Any persons participating in an event subject to a permit issued in conformity with this Code.

4. Camping in public accommodations that are properly zoned, legally established, and designated for camping purposes.

5. Camping which is normally associated with and incidental to the lawful and authorized use of private property for residential or other purposes. Nothing is intended to prohibit or make unlawful activities of a property owner or other lawful user if such activities are expressly authorized by any State, Federal and local laws, rules, regulation, or policies.

Item Number: 5.

12.04.035 Abatement of Encampments
The City Manager or designee may remove personal property, camping paraphernalia, and all other property, contraband, litter, and waste found at an encampment or at a location where a person is engaged in unlawful camping in compliance with the following procedures:

A. Written Notice Required Prior to Abatement. The City shall provide not less than 48 hours notice prior to clean up.

B. The City Manager shall develop additional procedures to conduct the abatement.

The procedures shall include, but are not limited to, steps to take when persons are present at an encampment during abatement, guidance on determining whether personal property is hazardous or can be stored, and to develop a process to retrieve stored personal property.

C. Expedited Abatement
Notwithstanding any other provision in this Chapter, the City Manager or designee may give a minimum of three (3) hours for all persons to remove their personal property under the following circumstances:

1. The City receives direction from the County of Riverside or other governmental authority that abatement of the encampment is necessary to preserve public health or safety, including to address known or suspected outbreaks of diseases; or

2. The City Manager observes or reasonably suspects the encampment creates a condition that presents a significant risk of property damage, bodily injury or death.

12.04.040 Storage of personal property.

A. It is unlawful for any person to store personal property, including camp facilities and camp paraphernalia, in the following areas, except as otherwise provided:

1. Any park;

2. Any street;

3. Any public property, improved or unimproved; or

4. Any private property without the written consent of the owner or lawful tenant.

B. The impoundment and retrieval of such property shall be in accordance with procedures established by the City Manager, or designee, or according to the procedures of the law enforcement agency whose peace officers impounded the property.

12.04.040 Protection of Waterways.

Item Number: 5.

A. It is unlawful for any person to do any of the following:

1. Build or erect a structure of any type along the banks of any waterway, or drive a nail or other object into any tree or other natural area vegetation for the purpose of building an encampment or any other structure, or to affix an object to any tree or other natural vegetation,

2. Move boulders or large rocks, destroy vegetation, paved roads or paths created by the City, or otherwise reconfigure the natural landscape in the waters of or along the banks of a waterway,

3. Drive, park, or bring any vehicle along the banks of a waterway, except in places specifically provided and designated for vehicular use,

4. Dig on the banks of a waterway, or

5. Discharge or store waste, including garbage, refuse, or human or animal waste, along the banks or into the waters of a waterway.

B. Nothing in this section is intended to prohibit the activities of an owner of private property or other lawful user of private property that are normally associated with and incidental to the lawful and authorized use of private property; and nothing is intended to prohibit the activities of a lawful user if such activities are expressly authorized by the City Manager or by any law, regulation, permit, order or other directive from a regulatory authority.

12.04.060 Enforcement authority.

Departments or personnel designated by the City Manager shall have the power and authority to enforce any and all provisions of this chapter.

12.04.080 Violation—Nuisance.

A. Any violation of the provisions of this chapter shall constitute a public nuisance and may be enforced pursuant to any applicable provision of Title 4 of this Code. If a violation of this chapter is of a continuing nature, each day during which it occurs shall constitute an additional, separate, and distinct offense. All remedies set forth in this chapter shall be cumulative and in addition to any and all other remedies, civil and equitable, afforded to the City under the law.

B. Notwithstanding any other provision of this Code, no violation of the provisions of this chapter shall constitute an infraction or misdemeanor.

12.04.045 Enforcement and penalty for violation.

A. It is unlawful and a public nuisance for any person or entity to violate, fail to comply with, or cause, permit, aid, abet, suffer, or conceal a violation of any provisions or requirements of this chapter, or any condition or regulation adopted pursuant to it.

Item Number: 5.

B. A separate offense occurs for each day any violation of, or failure to comply with, any provision of this chapter is committed, continued, maintained, or allowed to be continued.

C. The costs incurred by the City in the abatement of a violation or nuisance may be placed against any privately owned and affected property as either a special assessment using the procedures in Section 4.24.410 of this Code and California Government Code Section 38771 et seq., as amended from time to time, or a lien using the procedures in Section 4.24.420 of this Code and California Government Code Section 54988, as amended from time to time.

D. Cumulative Remedies. The remedies provided herein are not exclusive, and in the event of any violation of this chapter, the City may pursue any and all administrative, civil, and criminal remedies, as provided by law or equity, including all remedies under Title 4 of this Code.

Section 3. SEVERABILITY
That should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 4. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.

Section 5. AMENDING OF BAIL SCHEDULE

That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 6. EFFECTIVE DATE
That this ordinance is an urgency ordinance for the immediate preservation of the public health and safety and it shall be passed and become effective immediately upon its introduction pursuant to California Government Code Section 36937.

Item Number: 5.

Section 7. CERTIFICATION
The City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 5.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2025 by the following vote:

Ayes:

Noes:

Abstain:

Absent:
_______________________________
Scott Matas, Mayor
ATTEST:
____________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
____________________________________
Jennifer Mizrahi, City Attorney
Item Number: 5.

Item Number: 5.

ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS, CALIFORNIA AMENDING CHAPTER 12.04 “CAMPING RESTRICTIONS” OF THE DESERT HOT SPRINGS MUNICIPAL CODE (“DHSMC”)
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and
WHEREAS, pursuant to the authority granted the City by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare and safety; and
WHEREAS, on June 28, 2024, the United States Supreme Court issued its ruling in Grants Pass v. Johnson, which, among other things, held that the Eighth Amendment does not prohibit cities from enforcing laws regulating camping on public property; and WHEREAS, following the Grants Pass decision, Governor Newsom issued an executive order directing state agencies and departments to adopt clear policies that urgently address encampments, and encouraging local agencies to take proactive steps to remove the same; and
WHEREAS, The City expects an increase in the number of encampments that will be established in the City as a result of the Governor's Executive Order, which mandates that state agencies promptly begin the process of clearing dangerous encampments. This is due to the fact that encampments are being relocated from neighboring cities and areas as a result of closures. For instance, Caltrans has initiated the process of clearing encampments on the on/off approaches of the freeway, which has already resulted in the expansion and/or expansion of encampments within the City. The State has not only urged local agencies to take proactive steps to remove such dangerous encampments but has also confirmed its commitment to holding local jurisdictions accountable for reducing encampments. This commitment is demonstrated by the State's strengthening and enforcement of requirements that local jurisdictions plan for their fair share of housing and by conditioning state funding on rigorous reporting and measurable performance metrics.

WHEREAS, In accordance with the provisions of California Government Code section 36937, subdivision (b), the City Council has determined that the provisions provided herein are essential for the immediate preservation of the public health, safety, or peace within the City. The health, safety, and well-being of unhoused individuals residing in encampments are adversely affected by unsanitary conditions, extreme weather, predatory and criminal activity, and widespread substance use, among other things. Additionally, the safety and viability of nearby businesses and neighborhoods are jeopardized, and the cleanliness and usability of parks and other public resources are undermined. The City of Desert Hot Springs has been particularly affected by flooding as a result of the presence of encampments in flood zones and other flood-sensitive areas. These encampments have Item Number: 5.

already caused damage to the environment and city facilities. Additionally, the presence of public defecation and public urination, as well as other unhygienic conditions at these encampments and other facilities, results in unsanitary conditions for both the occupants and visitors.

WHEREAS, in 2023, the City established an emergency overnight shelter, “the HUB” to offer accommodations to individuals residing in hazardous encampments. Nevertheless, the process of relocating individuals from public right of ways and public spaces to the HUB has continued to be difficult. The City has observed a rise in the number of individuals residing in encampments and public spaces, which has resulted in a rise in crime associated with encampments. Furthermore, the risk of vacant structure fires and public safety increases as the winter months approach, if individuals continue to reside in encampments rather than the HUB.

WHEREAS, It is imperative to take immediate action in order to establish procedures that regulate these encampments and to ensure the public's safety, health, welfare, and harmony.

WHEREAS, the City Council has determined that it is essential to act with urgency to address dangerous encampments. These encampments subject individuals living in them to unsanitary conditions, extreme weather, predatory and criminal activity, and widespread substance use, among other things, thereby harming their health, safety, and well-being.

Additionally, these encampments threaten the safety and viability of nearby businesses and neighborhoods and undermine the cleanliness and usability of parks and other public resources; and
WHEREAS, the City Council finds that this Ordinance should be adopted on an urgency basis pursuant to the authority in Government Code section 36937(b) which provides that an ordinance passed by the City Council takes effect "immediately" if it is passed by a four-fifths vote of the City Council "for the immediate preservation of the public peace, health or safety" and contains "a declaration of facts constituting the urgency."; and NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Desert Hot Springs as follows:

Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.

Section 2. AMENDING CHAPTER 12.04 “CAMPING RESTRICTIONS” OF THE DESERT

HOT SPRINGS MUNICIPAL CODE
Chapter 12.04 Issuance and Purpose
Item Number: 5.

The public streets, private property, and areas within the City should be readily accessible and available to residents, the public at large, property owners, or lawful tenants, as may be applicable, and maintained in a clean, safe and attractive condition that promotes the quality of life of the citizens. The use of these areas for camping purposes or storage of personal property interferes with such purposes and the rights of owners, lawful tenants, or others, as may be applicable, to use the areas for which they were intended. The provisions of this chapter shall not be implemented in any way to infringe upon the constitutional rights of any person. The purpose of this chapter is to maintain public streets, private property, and areas within the City in a clean and accessible condition.

12.04.020 Definitions.

Unless the particular provisions or the context otherwise requires, the definitions contained in this section shall govern the construction, meaning, and application of words and phrases used in this chapter.
“Camp” means to pitch or occupy camp facilities; to use camp paraphernalia or both; to sleep outdoors, or in, on or under any structure not intended for human occupancy. for the purpose of, or in a way that facilitates outdoor sheltering for living accommodation purposes or for remaining outdoors overnight.
“Camp facilities” means and includes, but is not limited to, tents, huts, or temporary shelters. “Camp paraphernalia” means and includes, but is not limited to, tarpaulins, cots, beds, sleeping bags, hammocks or non-city-designated cooking facilities and similar equipment.
“Camp paraphernalia” means personal property used to facilitate occupancy of an area and includes personal property typically associated with camping such as tarps, cots, beds, sleeping bags, hammocks, bedding, camp stoves, cooking equipment, buckets, and similar equipment, mattresses, couches, dressers, or other furniture. “Encampment” means one or more temporary, makeshift, or hand-built structures not intended for long-term continuous occupancy, including tents, that are used to shelter one or more persons or their belongings and that are not authorized by the property owner. Encampment includes any camp paraphernalia and personal property associated with or located in or around the structures or tents.
“Habitable” shall refer to a dwelling that has not been declared unfit for habitation by the City or other agency with jurisdiction thereover.
“Nonresidential” is intended to refer to property, or any portion thereof, that is not improved with a habitable dwelling unit.
“Open space” means any undeveloped public property either primarily in its natural state, including canyons, bluffs, and unimproved waterways, or that is held out by the City or used by the public for passive recreational purposes, conservation, habitat preservation, or that maintains or enhances the conservation of natural or scenic resources.

Item Number: 5.

“Park” means any public park or recreation or playground area or building or facility thereon within the City, owned and maintained by the City as a public park or recreation or playground area, whether or not such areas have been formally dedicated to such purpose. “Publicly accessible area” means that portion of any privately owned, nonresidential property that is not enclosed by a City-approved structure, including, but not limited to, vacant land or the exterior of commercial or business establishments.
“Public property” means any property owned or managed by any government entity. “Store” means to put aside or accumulate for use when needed; to put for safekeeping; to place or leave in a location.
“Street” means and includes all highways, avenues, lanes, alleys, courts, places, squares, sidewalks, parkways, curbs, or other public ways in this City that have been or may hereafter be dedicated and open to public use, or such other public property so designated in any law of this state.
“Waste” means any rubbish, solid waste, liquid waste, infectious waste, or medical waste. Waste does not include compost piles, composting or recyclable material properly contained and disposed of in a timely fashion. “Waterway” means all the portions of the Mission Creek, Big Morongo Wash, or any flood control channel located within the boundaries of the City of Desert Hot Springs.

12.04.030 Unlawful camping.

It is unlawful for any person to camp, occupy camp facilities, or use camp paraphernalia in the following areas, except as otherwise provided:

A. Any street;
B. Any public parking lot, publicly accessible area visible from any off-site location, or public property, improved or unimproved.

C. Any Private Property.

1. Overnight camping on private property by persons other than the property owner(s) or lawful tenants is prohibited, except when the overnight camping meets all of the following: (a) is limited to no more than one night; (b) overnight camping is in the rear yard, or in an area of a side yard or front yard that is separated from view from the street by a fence, hedge, or other lawful obstruction; and (c) the property owner or person in lawful possession consents to such overnight camping.

2. Nothing in this chapter is intended to prohibit or make unlawful, activities of an owner of private property or other lawful user of private property that are normally associated with and incidental to the lawful and authorized use of private property for residential or other purposes; and provided further, nothing is intended to prohibit or make unlawful activities of a property owner or other lawful user if such activities are expressly authorized by any State, Federal and local laws, rules, regulation, or policies.

Item Number: 5.

3. Camping shall not be permitted. Where it is conducted in such a manner as to create a public nuisance, including any noise disturbance, as provided in Chapter 8.12 of this Code, inadequate sanitation, or other matters offensive to reasonable persons, nor where the camping activity is of such frequency, intensity or duration as to constitute a use of land prohibited by any provisions of Title 17 of this Code or where the camping and or activities incidental to it constitute a public nuisance.

12.04.030 Unauthorized Encampments or Sleeping on Public Property A. It is unlawful for any person to camp or to maintain an encampment in or upon any public property, including in any street, sidewalk, park, open space, waterway, and banks of a waterway, unless specifically authorized by the City Manager.

B. No person may sleep on public sidewalk, street, alleyway, median, parkway or right of way, or in any pedestrian or vehicular entrance to public or private property abutting a public sidewalk, at any time as a matter of individual and public safety.

C. At all times, it is unlawful for any person to camp, maintain an encampment, or sleep, where such activity poses:

1. An immediate threat or an unreasonable risk of harm to any natural person,

2. An immediate threat or an unreasonable risk of harm to public health or safety, or

3. Disruption to any business, store, religious institution, educational facility, or government services.

D. At all times it is unlawful for any person to camp or maintain an encampment upon any private property.

E. Exceptions
The provisions of this section shall not apply to the following:

1. In the event of a declared state of emergency.

2. Nor to events sponsored and conducted by and under the direction and control of the City.

3. Any persons participating in an event subject to a permit issued in conformity with this Code.

4. Camping in public accommodations that are properly zoned, legally established, and designated for camping purposes.

5. Camping which is normally associated with and incidental to the lawful and authorized use of private property for residential or other purposes. Nothing is intended to prohibit or make unlawful activities of a property owner or other lawful user if such activities are expressly authorized by any State, Federal and local laws, rules, regulation, or policies.

Item Number: 5.

12.04.035 Abatement of Encampments
The City Manager or designee may remove personal property, camping paraphernalia, and all other property, contraband, litter, and waste found at an encampment or at a location where a person is engaged in unlawful camping in compliance with the following procedures:

A. Written Notice Required Prior to Abatement. The City shall provide not less than 48 hours notice prior to clean up.

B. The City Manager shall develop additional procedures to conduct the abatement.

The procedures shall include, but are not limited to, steps to take when persons are present at an encampment during abatement, guidance on determining whether personal property is hazardous or can be stored, and to develop a process to retrieve stored personal property.

C. Expedited Abatement
Notwithstanding any other provision in this Chapter, the City Manager or designee may give a minimum of three (3) hours for all persons to remove their personal property under the following circumstances:

1. The City receives direction from the County of Riverside or other governmental authority that abatement of the encampment is necessary to preserve public health or safety, including to address known or suspected outbreaks of diseases; or

2. The City Manager observes or reasonably suspects the encampment creates a condition that presents a significant risk of property damage, bodily injury or death.

12.04.040 Storage of personal property.

A. It is unlawful for any person to store personal property, including camp facilities and camp paraphernalia, in the following areas, except as otherwise provided:

1. Any park;

2. Any street;

3. Any public property, improved or unimproved; or

4. Any private property without the written consent of the owner or lawful tenant.

B. The impoundment and retrieval of such property shall be in accordance with procedures established by the City Manager, or designee, or according to the procedures of the law enforcement agency whose peace officers impounded the property.

12.04.040 Protection of Waterways.

Item Number: 5.

A. It is unlawful for any person to do any of the following:

1. Build or erect a structure of any type along the banks of any waterway, or drive a nail or other object into any tree or other natural area vegetation for the purpose of building an encampment or any other structure, or to affix an object to any tree or other natural vegetation,

2. Move boulders or large rocks, destroy vegetation, paved roads or paths created by the City, or otherwise reconfigure the natural landscape in the waters of or along the banks of a waterway,

3. Drive, park, or bring any vehicle along the banks of a waterway, except in places specifically provided and designated for vehicular use,

4. Dig on the banks of a waterway, or

5. Discharge or store waste, including garbage, refuse, or human or animal waste, along the banks or into the waters of a waterway.

B. Nothing in this section is intended to prohibit the activities of an owner of private property or other lawful user of private property that are normally associated with and incidental to the lawful and authorized use of private property; and nothing is intended to prohibit the activities of a lawful user if such activities are expressly authorized by the City Manager or by any law, regulation, permit, order or other directive from a regulatory authority.

12.04.060 Enforcement authority.

Departments or personnel designated by the City Manager shall have the power and authority to enforce any and all provisions of this chapter.

12.04.080 Violation—Nuisance.

A. Any violation of the provisions of this chapter shall constitute a public nuisance and may be enforced pursuant to any applicable provision of Title 4 of this Code. If a violation of this chapter is of a continuing nature, each day during which it occurs shall constitute an additional, separate, and distinct offense. All remedies set forth in this chapter shall be cumulative and in addition to any and all other remedies, civil and equitable, afforded to the City under the law.

B. Notwithstanding any other provision of this Code, no violation of the provisions of this chapter shall constitute an infraction or misdemeanor.

12.04.045 Enforcement and penalty for violation.

A. It is unlawful and a public nuisance for any person or entity to violate, fail to comply with, or cause, permit, aid, abet, suffer, or conceal a violation of any provisions or requirements of this chapter, or any condition or regulation adopted pursuant to it.

Item Number: 5.

B. A separate offense occurs for each day any violation of, or failure to comply with, any provision of this chapter is committed, continued, maintained, or allowed to be continued.

C. The costs incurred by the City in the abatement of a violation or nuisance may be placed against any privately owned and affected property as either a special assessment using the procedures in Section 4.24.410 of this Code and California Government Code Section 38771 et seq., as amended from time to time, or a lien using the procedures in Section 4.24.420 of this Code and California Government Code Section 54988, as amended from time to time.

D. Cumulative Remedies. The remedies provided herein are not exclusive, and in the event of any violation of this chapter, the City may pursue any and all administrative, civil, and criminal remedies, as provided by law or equity, including all remedies under Title 4 of this Code.

Section 3. SEVERABILITY
That should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 4. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.

Section 5. AMENDING OF BAIL SCHEDULE

That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 6. EFFECTIVE DATE
That this ordinance shall take effect thirty (30) days after its second reading by the City Council.

Item Number: 5.

Section 7. CERTIFICATION
The City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 5.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2025 by the following vote:

Ayes:

Noes:

Abstain:

Absent:
_______________________________
Scott Matas, Mayor
ATTEST:
____________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
____________________________________
Jennifer Mizrahi, City Attorney
Item Number: 5.

Item Number: 5.

SR-25-061
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 18, 2025
Department: City Attorney
Prepared by: Jennifer Mizrahi, City Attorney
Subject: Interim City Manager Employment Agreement
RECOMMENDATION:

Approve the Employment Agreement with Doria Wilms as Interim City Manager.

BACKGROUND:

On March 4, 2025, the City Council voted 5-0 in closed session to appoint Doria Wilms as Interim City Manager. Such action was reported out of closed session, pursuant to Government Code Section 54957(b) and also 54957(a)(5).

The attached is the employment agreement with Doria Wilms, which must be approved in open session pursuant to Government Code Section 53262. Ms. Wilms has agreed to provide her services as Interim City Manager for the same salary amount, and incidentals, she is receiving in her current capacity of Deputy City Manager and therefore is not receiving an increase to her compensation.

She will be receiving an additional eighty (80) hours of Management Leave. The agreement shall commence effective as of March 4, 2025, and continue until terminated pursuant to the terms of this Agreement.

ATTACHMENTS:
1) Interim City Manager Employment Agreement - Doria Wilms Item Number: 6.

EMPLOYMENT AGREEMENT

BY AND BETWEEN

THE CITY OF DESERT HOT SPRINGS
AND

DORIA WILMS
THIS EMPLOYMENT AGREEMENT (“Agreement”) shall take effect as of March 4, 2025, by and between the City of Desert Hot Springs, a municipal corporation, including its City- associated agencies wherein the City Council sits ex-officio as the governing board or body, such as the successor Agency of the Former Redevelopment Agency, City-Associated Agencies (the “City-Associated Agencies”) (collectively the “City”), and Doria Wilms (“Employee”) (with the City and Employee collectively referred to herein as the “Parties”).

RECITALS
WHEREAS, Employee has been appointed to serve as and hold the position of Interim City Manager and Interim Executive Director of the City’s City-Associated Agencies at the will and sole pleasure of the City Council; and WHEREAS, the City operates under the Interim City Manager form of government pursuant to Government Code section 34851 et seq.; and WHEREAS, the City Council desires that Employee serve as the administrative head of all departments of the City and City-Associated Agencies; and WHEREAS, it is agreed that the City Council will deal with administrative services of the City through the Employee; and
WHEREAS, Employee desires to accept employment as Interim City Manager and Executive Director under the terms and conditions offered by the City Council; and WHEREAS, the Parties desire to set forth in writing their agreement as to the terms and conditions of Employee’s employment by the City.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Parties agree as follows:

Item Number: 6.

AGREEMENT
Section 1. INCORPORATION OF RECITALS.

The foregoing recitals are hereby expressly made a part of this Agreement.

Section 2. EMPLOYMENT.

The City Council does hereby agree to employ Employee, and Employee hereby accepts employment as Interim City Manager of the City and Interim Executive Director of the City’s City-Associated Agencies, subject to the terms and conditions set forth in this Agreement.

Section 3. OBLIGATIONS OF CITY.

The City shall provide Employee with the compensation, benefits and business expense reimbursements specified hereinafter.

Section 4. COMPENSATION.
a. Salary. The City agrees to pay Employee an annual base salary of TWO

HUNDRED THIRTY THOUSAND, TWO HUNDRED FIFTY NINE DOLLARS AND 12/100 ($230,259.12) for her services as Interim City Manager and Interim Executive Director, which is what she is currently receiving in her capacity of Deputy City Manager and therefore not an increase to her compensation. Employee’s salary will be paid in installments in accordance with City’s normal procedures. The City Council, by a simple majority, shall have the sole discretion to increase the base salary in its sole and absolute discretion. The preceding is based upon the assumption of Employee’s continued employment.

Section 5. TERM.

This Agreement shall commence effective as of March 4, 2025, and continue until terminated pursuant to the terms of this Agreement.

Section 6. LEAVE BENEFITS AND HOLIDAYS.

Employee shall be entitled to the paid holidays and leave benefits, including sick leave, vacation leave, bereavement leave, jury duty leave, and unpaid leaves of absence, as set forth in the City’s “Compensation and Benefits Profile for Department Head Employees” (“Compensation and Benefits Profile”), as may be amended from time to time. Employee shall be entitled to Management Leave as set forth in this Agreement. At the time of this Agreement, Employee has accrued sick leave, vacation, and management leave, which is all on file with the City. Employee shall further be entitled to an additional eighty (80) hours of Management Leave, to be immediately Item Number: 6.

added to her leave bank and to be cashed out or used by Employee at anytime at her sole discretion.

Section 7. INSURANCE BENEFITS.

Employee shall be entitled to the insurance benefits, including health, dental, vision, disability, and life insurance, as set forth in the Compensation and Benefits Profile, as may be amended from time to time. Employee shall be eligible to participate in the City’s deferred compensation plan, tuition reimbursement program, and Employee Assistance Program, as set forth in the Compensation and Benefits Profile.

Section 8. TECHNOLOGICAL TOOLS.

The City shall provide the Employee with the same technological tools as provided to all Management Staff, including technical devices. Employee shall return all technological tools upon termination of her employment.

Section 9. BONDING.

The City shall bear the full cost of any fidelity or other bonds required of Employee under any law, ordinance, regulation, or as may be otherwise required by the City for performance of Employee’s duties.

Section 10. CAR ALLOWANCE.

The City shall provide to Employee a total cumulative car allowance of Six Hundred Dollars ($600) per month to be used to purchase, lease, or own and to operate and maintain a vehicle, which is what she is currently receiving in her capacity of Deputy City Manager and therefore not an increase to her compensation. The Employee shall be solely responsible for obtaining and paying for adequate insurance coverage of such vehicle and shall further be responsible for all expenses attendant to the purchase, operation, maintenance, repair and regular replacement of said vehicle.

Upon request, the Employee will provide the City with proof of insurance.

Section 11. PROFESSIONAL DEVELOPMENT, MEMBERSHIP FEES
AND CONFERENCE COSTS; COMMUNITY
ORGANIZATIONS.
a. Employee is expected to continue the development of her expertise in all areas of her profession, including by attending continuing education programs, necessary meetings, institutes or seminars. All professional development activities attended by Employee should be related to her employment as Interim City Manager or Executive Director. Employee may also be required to attend official functions on behalf of the City. Employee shall be entitled to travel and subsistence expenses, as authorized in the City’s annual budget, which may include but not be limited to Employee’s registration costs and other incidental costs associated with Employee’s attendance at conferences or meetings. “Incidental costs” as used in this section shall Item Number: 6.

include all hotel and travel expenses associated with Employee’s attendance at the subject conference or meeting. For those instances where Employee has combined travel to a conference or meeting with personal vacation, personal business or other personal occasion, the City shall reimburse Employee for only that portion of the incurred expenses directly related to Employee’s participation in or attendance at the conference or meeting. The City shall pay the professional dues for Employee, as authorized in the City’s annual budget(s), which are required for her continued participation in national, California State, and local associations and organizations that are necessary and desirable for her continued professional development. b. Employee shall make her independent decision regarding involvement with community organizations and attendance at social activities. If it is Employee’s decision to become an active member and participate in local service organizations of her choice, any reimbursement for expenses incurred for her membership and attendance, such as but not limited to, costs for dues, fees, meals, and related organizational charges must be authorized by the City Council and as part of the applicable approved annual budgets.

Section 12. REIMBURSEMENT OF BUSINESS & TRAVEL
EXPENSES.

Pursuant to California Labor Code section 2802, Employee is entitled to reimbursement of necessary expenditures or losses incurred by Employee in direct consequence of the discharge of her duties or pursuant to direction of the City Council.

Additionally, the City Council may authorize Employee to travel, and to thereby incur reasonable travel expenses, for purposes of work or professional development as set forth in this Agreement. When Employee incurs such expenses, she shall be reimbursed upon the submission of claims for such expenses and approval thereof by the City Council.

Section 13. RETIREMENT.

Employee shall be entitled to appropriate retirement benefits in an amount as determined by California Public Employment Retirement System, Employee shall be responsible for paying the entire amount of Employee’s mandatory PERS employee contribution rate as may be amended from time to time.

Section 14. DUTIES OF EMPLOYEE.
a. During the Term of this Agreement, Employee agrees to perform the functions and duties of Interim City Manager and Interim Executive Director as may be specified in the Desert Hot Springs Municipal Code, as affected by job guidelines and directives adopted from time to time by the City Council and City-Associated Agencies, and to perform such other duties and functions as the City Council and City-Associated Agencies may from time to time assign.
b. Employee agrees to be governed by and to comply with the Desert Hot Springs Municipal Code and all applicable City policies, laws, rules and regulations. The Item Number: 6.

City’s and City-Associated Agencies’ policies, rules, regulations and resolutions not in conflict with specific provisions of this Agreement shall not be construed to be superseded by this Agreement and shall continue in full force and effect. c. Employee shall serve as the administrative head of all departments of the City and City-Associated Agencies.
d. Employee shall strive to provide an open-door policy and working relationship with all staff members of the City. Employee shall be responsible for the fair and efficient administration of those above-described departments and the execution of policies established by the City Council and City-Associated Agencies. e. Employee shall at all times be covered by this Agreement, act in the best interests of the City (including its City-Associated Agencies), and shall perform all of her duties hereunder in a competent and professional manner. f. Employee acknowledges that the position of Interim City Manager and Interim Executive Director is a full-time position and agrees to devote all the necessary time and attention to the City’s business during the Term of this Agreement.

Accordingly, Employee shall not engage in any other business pursuits whatsoever, directly or indirectly, or render any services of a business, commercial or professional nature to any other person or organization, whether for compensation or otherwise, that may be in conflict or incompatible with her duties as Interim City Manager or Interim Executive Director.

Section 15. RESIGNATION OR DEATH.

Employee may voluntarily resign, and thereby terminate this Agreement, at any time upon providing sixty (60) days advance written notice to the City Council, unless the Parties agree otherwise. Upon such termination, Employee shall not be entitled to any severance pay or other compensation, other than compensation for earned salary and any accumulated leave or accrued benefits to which she is entitled under the City’s Compensation and Benefits Profile. In the event that Employee dies while employed by the City pursuant to this Agreement, Employee’s beneficiaries or those entitled to her estate shall be entitled to any earned salary and any accumulated leave or accrued benefits to which Employee is entitled under the City’s Compensation and Benefits Profile, as of the date of her death. With resignation or death, the City shall have no obligation to pay any severance designated herein.

Section 16. SUSPENSION.

Employee may be suspended with full pay and benefits at any time and for any reason during the Term of this Agreement at the direction of the City Council.

Section 17. TERMINATION.

Item Number: 6.

a. At Will Employee. Employee shall serve under this Agreement at the will and pleasure of the City Council. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Council to terminate the employment of the Interim City Manager at any time, with or without cause, at the sole discretion of the City Council.
b. Termination by Council Vote. The City Council may only terminate this Agreement upon an affirmative vote of the majority of the full City Council with no advance notice to Employee.
c. Severance. In the event that Employee is terminated without “cause” as set forth in this section, and while willing and able to perform her duties under this Agreement, the City agrees to pay Employee severance payments consisting of six (6) months’ salary, and continued insurance benefits. In calculating “salary” for purposes of this paragraph, the value of the following benefits shall not include: sick leave, vacation time, management leave, car allowance, and telephone allowance (if applicable). In consideration of this covenant, Employee hereby agrees that she shall not be entitled to any other compensation or payment of any kind from the City or City-Associated Agencies in connection with the termination of her employment without cause. d. Cause for Termination. If Employee is terminated for “cause,” this Agreement shall automatically terminate and the City shall not be obligated to make any severance payment to Employee or to provide Employee with any other form of compensation other than earned salary and any accumulated leave or accrued benefits to which Employee is entitled under the City’s Compensation and Benefits Profile as of the date of her termination. “Cause” shall include, but not be limited to, the following:
(1) Employee’s material breach of any term or condition of this Agreement.
(2) Admission by Employee of an illegal act involving moral turpitude or an illegal act relating to her employment. For purposes of this section, acts involving moral turpitude shall include, but not be limited to, bribery, perjury, embezzlement, and fraud.
(3) Evidence of any act by Employee that would constitute an illegal act involving moral turpitude or relating to her employment. (4) Conviction of employee of a crime involving moral turpitude or relating to her employment. For purposes of this section, a plea of nolo contendere shall also be considered a conviction.
(5) Evidence that Employee has engaged in common law bias, malfeasance, misfeasance, has violated the Political Reform Act of 1974, or has violated California Government Code Section 1090.

Item Number: 6.

(6) Repeated abuse of alcohol or drugs that materially affects Employee’s performance of her duties.
(7) Repeated and protracted unexcused absences from Employee’s office and duties.
(8) Failure to follow a lawful directive of the City Council after written notice of said failure, approved by an affirmative majority vote of the full City Council, is provided to Employee.
e. In the event Employee is terminated with cause, said written notice by City to Employee shall include a written explanation of the reason(s) for her termination before such termination take effect.
f. Employee hereby acknowledges that she shall have no right to a hearing to review or contest the reasons for her termination with or without cause, and Employee hereby expressly waives any and all such rights to which she may otherwise be entitled by law or which may be applicable to other employees of the City. g. Notwithstanding the terms in this Section 17, upon termination of this Agreement, Employee shall have the right to resume her position as the Deputy City Manager, and be entitled to the same compensation and benefits as she had as of March 4, 2025 (“Right to Prior Employment”). The Employee shall only have rights to her Right to Prior Employment so long as all of the following conditions are in existence at the time of termination of this Agreement: 1) Employee has not been paid or accepted severance pursuant to this Agreement, and 2) Employee has not committed any terms of “for cause” termination. Such conditions shall be determined by the City Council in its absolute and sole discretion.

Section 18. HOURS OF WORK; MANAGEMENT LEAVE.

The Employee shall receive no overtime pay for any time or work beyond the regular or customary City Hall business office hours or work days. In consideration of this obligation, Employee shall be entitled to time off, with pay, as “Management Leave” equivalent to a cumulative total eighty (80) hours per year, to be used at her discretion.

In accordance with the Compensation and Benefits Profile, Management Leave hours not used during the fiscal year shall be converted to salary compensation at the end of the fiscal year. Further, provided her duties are met in a timely manner, as mutually determined between the City Council and Applicable Boards and the Employee, the Employee’s work schedule may be flexible, other than the usual City Hall business office hours or work days.

Section 19. OTHER TERMS OF EMPLOYMENT; PERFORMANCE
EVALUATION.
a. The City Council may, from time to time, impose such other terms and conditions of employment as they may determine which relate to the job functions of or Item Number: 6.

performance by Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement, the Desert Hot Springs Municipal Code or any other applicable policy, law, rule or regulation. b. The City Council is responsible for reviewing and evaluating the job performance of Employee and for setting employment goals for Employee. The City Council should strive to do so, in consultation with Employee, at least once annually, in advance of the adoption of the City’s annual operating budget. However, failure to do so does not violate any provision of this Agreement and shall not cause a breach of any provision of this Agreement. The City Council is entitled to schedule and conduct a review or performance evaluation session at any time. All reviews and evaluations shall be in accordance with any specific criteria developed by the City Council. All evaluations and reviews of Employee’s performance shall be considered and discussed with Employee in accordance with this Agreement, the Ralph M. Brown Act, and any other state law applicable to the positions described in this Agreement.

Section 20. NOTICES.

Notices pursuant to this Agreement shall be given by personal service or by deposit in the United States mail, postage pre-paid, addressed as follows:
a. If to City or City Council and City-Associated Agencies City-Associated City of Desert Hot Springs
Agencies: 11999 Palm Drive
Desert Hot Springs, CA 92240
b. If to Employee: Doria Wilms
As on file in Human Resources
Notice shall be deemed given as of the date of personal service, one (1) day if the Notice is served by an overnight delivery or courier service such as Federal Express or UPS, or five (5) days after the date of deposit in the United States mail.

Section 21. CONFLICTS OF INTEREST.

In order to prevent claims or appearances of favoritism or conflicts of interest, Employee covenants that she nor any relative by blood or marriage have any employment or financial interest, nor shall she or any relative by blood or marriage acquire an employment or financial interest, directly or indirectly, which would conflict in any manner with the unbiased performance of Employee’s services under this Agreement. Further, Employee shall not appoint, employ, promote, or advance, or advocate for appointment, employment, promotion, or advancement, in or to a position in which she is serving or over which she exercises jurisdiction or control any individual who is a relative by blood or marriage of the Employee. "Relative" is defined to include spouse, child, stepchild, grandchild, parent, grandparent, brother, sister, half-brother, half-sister, uncle, aunt, niece, nephew or the spouse of any of them. These relationships shall include those arising from adoption. Persons who are common law married or who Item Number: 6.

are living together without the benefit of matrimony are also considered as “relatives” under the intent of this section. This section shall be applied in accordance with applicable federal and state law. Violation of this section shall be grounds for the termination of the Employee “with cause” as set forth in this Agreement.

Section 22. COMPLIANCE WITH LAWS.

Employee shall comply with all local, state and federal laws and regulations applicable to her Employment pursuant to this Agreement.

Section 23. NONDISCRIMINATION.

Employee acknowledges and agrees to comply with the City's nondiscrimination policies, the California Fair Employment and Housing Act, Title VII of the Civil Rights Act of 1964, and all other laws, rules and regulations prohibiting discrimination and harassment of any form which apply to Employee’s employment with the City, as may be amended from time to time.

Section 24. OWNERSHIP OF DOCUMENTS.

Upon completion of any document or report required to be provided by Employee in the course of her employment pursuant to this Agreement, or upon earlier termination of this Agreement, all completed original documents and/or reports and any designs, drawings, calculations, diskettes, computer files, notes, and other related materials prepared or produced in connection with such documents or reports shall become the sole property of the City and may be used and/or reused on any other project by the City without the permission of Employee.

Section 25. CONFIDENTIALITY.
a. Any and all documents and information obtained from the City by Employee in the course of her employment pursuant to this Agreement shall be kept strictly confidential by Employee unless public disclosure of same is required by law. b. The reports, records, documents and other materials prepared by Employee in the performance of services under this Agreement shall not be publicly disclosed by Employee unless such disclosure is required by law. c. Employee shall not disclose to any other entity or person any information regarding the activities of the City, except as required by law, as authorized by the City Council or City-Associated Agencies law.

Section 26. INDEMNIFICATION.

The City shall defend and indemnify Employee against any claim(s) on the same terms and conditions, and in the same manner prescribed by the Government Claims Act, Government Code section 810 et seq. The City shall provide at its expense Item Number: 6.

separate legal counsel to Employee if the City’s legal counsel has a legal conflict of interest between the representation of the City’s interest and the Employee’s interest.

This provision, including legal defense, shall extend indefinitely beyond Employee’s employment with the City on any matters, including litigation matters, that arise during said employment or as a result of said employment. If the Employee is required to testify or be a witness in any legal proceeding on behalf of the City or by subpoena by any plaintiff against the City, the City shall reimburse Employee for all reasonable expenses for travel to participate in the legal matter.

Section 27. GENERAL PROVISIONS.

The following general provisions shall apply to this Agreement:
a. Governing Law and Severability. This Agreement shall be governed by the laws of the State of California. If any clause, sentence, section or other provision of this Agreement is, for whatever reason, deemed void, unlawful or otherwise unenforceable, then such shall be severed and the balance of this Agreement construed as if the severed language was not a part hereof.
b. Modification, Amendment, Waiver. No modification or amendment of any provision of this Agreement shall be effective unless approved in writing and signed by the Parties. The failure of a Party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of any Party thereafter to enforce each and every provision hereof in accordance with its terms.
c. Assignment. Neither the Agreement nor any of the rights or obligations created herein shall be assignable by Employee without the written approval of the Interim City Manager.
d. Counterparts. This Agreement may be executed in any one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. The transmission of an executed signature page by any Party may also be accomplished via facsimile or via electronic transmission, and such copies of such documents may be treated as if they were originals.
e. Section Headings. The section headings used herein are not a substantive part of this Agreement and are included solely for convenience and have no bearing upon and do not in any way limit the application of the terms and conditions of this Agreement.
f. Venue. All judicial proceedings involving disputes over the terms of this Agreement shall be initiated and conducted in the applicable court in Riverside County, California.
g. Entire Agreement. This Agreement represents the entire and integrated Item Number: 6.

contract between the City and Employee and supersedes all prior understandings, negotiations, representations, or agreements.
h. Effect of Waiver. The failure of any Party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other Party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times. i. Voluntary Agreement. Employee represents and warrants that she has read carefully and fully understands all the provisions of this Agreement, that she is free to enter into this Agreement and to render the services described in it, that entering into and performance of this Agreement will not breach or violate or conflict with any other agreement (written or oral) to which she is a party, and that she has had an opportunity to consult with her legal counsel prior to entering into this Agreement and has either done so or voluntarily chosen not to do so. Employee is voluntarily entering into this Agreement. The City represents and warrants that it has the right and power to enter into this Agreement.
j. Non-Liability of City Officers and Employees. No officer or employee of the City or member of the City Council shall be personally liable to Employee in the event of any default or breach by the City for any amount which may become due to Employee or for any breach of any obligation of the terms of this Agreement. k. Interpretation. This Agreement shall not be interpreted against either Party on the grounds that one of the Parties was solely responsible for preparing it or causing it to be prepared as both Parties participated, or had adequate opportunity to participate, in drafting it.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Item Number: 6.

IN WITNESS WHEREOF, the City Council of the City of Desert Hot Springs and the respective Boards of the City’s City-Associated Agencies have authorized the Mayor and chair of the above-mentioned Boards to execute this Agreement.

CITY OF DESERT HOT SPRINGS EMPLOYEE
_________________________________ _________________________________ Scott Matas, Mayor of the City Council Doria Wilms
and Chair of the City-Associated Agencies
ATTEST:
_________________________________
Jerryl Soriano, City Clerk/Secretary
APPROVED AS TO FORM:
_________________________________
Jennifer Mizrahi, City Attorney/General
Counsel
Item Number: 6.

SR-25-058
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 18, 2025
Department: City Council
Prepared by: Travis Clark, Community Development Director Subject: 2024 Housing Element Annual Progress Report
RECOMMENDATION:
1) Adopt a Resolution of the City Council adopting the Housing Element Annual Progress Report, which is attached hereto as Exhibit “A”, incorporated herein; AND 2) Authorize staff to submit the APR to the California Office of Planning and Research and to Housing and Community Development.

BACKGROUND:

State law requires cities to update their General Plan Housing Element on an eight (8) year cycle.

City Council adopted the Housing Element in November, 2022. It was then sent to the Department of Housing and Community Development (HCD) for their review and certification. On January 12th, 2023, the City received approval from HCD for the adopted Housing Element, finding it in full compliance with State Housing Element Law (Article 10.6 of the Gov. Code). The current planning cycle (6th Cycle) for the Housing Element runs from 2021 through 2029.

Per Government Code Section 65400(b), the City is required to provide an annual report to HCD and to the Governor’s Office of Planning and Research (OPR) regarding the implementation of the General Plan’s Housing Element and how the City is meeting the housing needs for the community.

The Housing Element Annual Progress Report (HE APR) is a tool used by HCD and OPR to track and monitor the City’s progress in addressing the Regional Housing Needs Allocation (RHNA). This report includes the number of housing units permitted by type and income level, the status of the permits, the status of programs in the Housing Element, and efforts to remove governmental constraints and barriers to provide more housing. Attached is the 2024 Housing Element Annual Progress Report covering the 2024 calendar year.

DISCUSSION:

In the APR, the City is required to report on all housing unit development activity in calendar year 2024 using the spreadsheet provided by HCD (attached). Data is reported on how many applications were made (entitled), permits issued after plan review, and units completed i.e. passed final inspection by the Building Division.

Comparison of Housing Unit status in 2022, 2023, and 2024 Status 2022 2023 2024
Item Number: 7.

SR-25-058
Entitled 107 476 206
Permitted 175 133 136
Completed 122 158 91
The City entitled fewer housing units in 2024 than 2023, permitted about the same number, and completed fewer. In addition to infill housing, construction continued on these four (4) Planning Commission approved projects:

Rancho Descanso - 76 homes
Aventura Palms I - 34 homes
Skyborne, Village 3 - 286 homes
Eagle Point - 10 homes
62 units of the 136 permitted units are identified as infill housing in 2024. This is a good percentage of the total housing units permitted and represents strength in the market for infill housing. Infill housing helps to improve the City's older neighborhoods by eliminating vacant lots which can attract blight..

Infill Housing Development
and Infill Units Permitted # of Projects Units
Indicated as Infill 54 62
Not Indicated as Infill 74 74
Housing units are separated by type into single-family (attached and detached), duplexes- triplexesquadplexes, and multi-family structures of 5 or more units, Accessory Dwelling Units (ADUs), and manufactured/mobile homes. Summary data from the report is provided below. Of the 44 entitled ADUs, eight are using the City's pre-approved ADU plans.

Building Activity in 2024 for Housing Units
Units by Structure Type Entitled Permitted Completed
Single-family Attached 0 0 0
Single-family Detached 151 104 58
2 to 4 units per structure 9 14 22
5+ units per structure 0 0 0
Accessory Dwelling Unit 44 17 11
Mobile/Manufactured Home 2 1 0
Total 206 136 91
The City is also required to report on building permits issued by affordability. 6th Cycle RHNA Allocation and Remaining Units - Permits Issued Status Number
Allocated
Percent
Of Total
Total Remaining
Extremely low 284 7.3% 284
Very Low 285 7.3% 285
Low 535 13.8% 533
Moderate 688 17.8% 312
Item Number: 7.

SR-25-058
Above Moderate 2,081 53.8% 1,947
TOTAL* 3,873 100.0% 3,360
The State defines affordable housing as a housing unit with a restriction in place to ensure the housing unit is occupied by a lower-income household. The city received two (2) applications for affordable housing developments in 2024. The Crossings at Camino Campanero with 64 units and the Park Lane Homes with 167 units. These projects are going through planning review and are expected to be presented to the Planning Commission in the spring of 2025 for entitlement approval.

Once approved, they would count towards the RHNA goals in the 2025 APR and improve the City's number of affordable housing units entitled in the current cycle.

The City teamed with Riverside County Housing and Workforce Solutions on the First Time Homebuyer Program, the Down Payment Assistance Program, and the Home Enhancement Program. City staff also participated in the selection of the developer for the Riverside County affordable housing site behind the library.

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

The state has determined that CEQA does not apply to the approval of ministerial projects. CEQA does not apply to the subject matter of the proposed Housing Element APR since it is not considered a project.

ATTACHMENTS:
1) CC Reolution - HE APR 2024
2) 2024 Housing Element Annual Report
Item Number: 7.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL TO ADOPT THE HOUSING

ELEMENT ANNUAL PROGRESS REPORT AND FIND IT EXEMPT UNDER

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, after a duly noticed public hearing, on May 26, 2020, the City Council adopted and approved a General Plan Update and an amendment to the General Plan Land Use Map to update the General Plan and re-designate several properties in the City, GPA 20-1 (the “General Plan Amendment”); and WHEREAS, pursuant to the California Environmental Quality Act (“CEQA”), Public Resources Code Sections 21000, et seq., and its implementing regulations, California Code of Regulations Section 15000, et seq., (“CEQA Guidelines”), the City, acting as Lead Agency, reviewed and certified a draft Environmental Impact Report (State Clearinghouse number 2019080101) prepared for the proposed General Plan Amendment and determined that, following the implementation of certain mitigated measures; and
WHEREAS, the City adopted the Housing Element for the 6th Cycle; and WHEREAS, state law requires that all general plans contain a housing element, which provides a plan for accommodating future housing production needs; and WHEREAS, state law further requires that all cities create an Annual Progress Report (“APR”) that describes the community’s progress toward implementing their housing element; and
WHEREAS, the Housing Element APR must be delivered to the Office of Planning and Research (“OPR”) and the California Department of Housing and Community Development (“HCD”); and
WHEREAS, the Housing Element APR fulfills statutory requirements to report certain housing information, including: the local agency’s progress in meeting its share of regional housing needs (i.e., applications, entitlements, permits and certificates of occupancy), certain rezoning activities, actions taken towards completion of housing element programs, and local efforts to remove governmental constraints to the development of housing; and
WHEREAS, California’s housing element law acknowledges that in order for the private market to adequately address the state’s housing needs, local governments must adopt plans and regulatory systems that provide opportunities for housing development; and
Item Number: 7.

WHEREAS, the City is making a diligent effort to engage the public and reach planning goals by having this public meeting before the Planning Commission; and WHEREAS, subsequent to the Planning Commission, the APR will be presented to the City Council; and
WHEREAS, the proposed Housing Element Annual Progress Report has been prepared in accordance with the Government Code, and is attached hereto as Exhibit A, and incorporated herein; and
WHEREAS, the proposed Housing Element Annual Progress Report is categorically exempt from California Environmental Quality Act (“CEQA”), as amended (Section 15306, Information Collection); and
WHEREAS, on March 11, 2025, the Planning Commission of the City conducted a duly noticed public meeting to review the proposed Housing Element Annual Progress Report; and
WHEREAS, the Planning Commission recommended that the City Council adopt this Resolution; and
WHEREAS, the City Council finds that this Resolution would promote the public interest, health, safety, convenience, or welfare of the City.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Desert Hot Springs as follows:

Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.

Section 2. CEQA FINDINGS
The City Council finds as follows:

1. The City Council has reviewed and considered the information contained in the record for the APR.

2. Based upon the facts and information contained in the record, including all written and oral evidence presented to the City Council, the City Council finds as follows:
a. The record has been completed in compliance with CEQA, the State CEQA Guidelines; and
Item Number: 7.

b. The Project is categorically exempt from environmental review pursuant to Section 15306, (Class 6 – Information Collection) of the CEQA Guidelines; and
c. The application of the categorical exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and d. The determination of CEQA exemption reflects the independent judgement of the City Council.

Section 3. ADOPTION BY CITY COUNCIL
The City Councils adopt the Housing Element Annual Progress Report, which is attached hereto as Exhibit “A”, incorporated herein; AND to authorize staff to submit the APR to the Office of Planning and Research and to HCD.

Section 4. SEVERABILITY
That, should any provision, section, paragraph, sentence or word of this resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.

Section 5. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this Resolution are hereby repealed.

Section 6. CERTIFICATION
That the City Clerk shall certify to the passage of this Resolution and shall cause the same to be published according to law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the 18th day of March, 2024 by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Item Number: 7.

Scott Matas, Mayor
ATTEST:

Jerryl Soriano, City Clerk
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
Item Number: 7.

EXHIBIT A
Item Number: 7.

Jurisidiction Name
Reporting Calendar Year
First Name
Last Name
Title Click here to download APR Instructions
Email
Phone
Street Address
City
Zipcode
v_01_23_25
Please Start Here
General Information
2024
Desert Hot Springs
Contact Information
Optional: Click here to import last year's data. This is best used when the workbook is new and empty. You
will be prompted to pick an old workbook to import
from. Project and program data will be copied exactly
how it was entered in last year's form and must be
updated. If a project is no longer has any reportable
activity, you may delete the project by selecting a cell in the row and typing ctrl + d.

Click here to add rows to a table. If you add too many
rows, you may select a cell in the row you wish to
remove and type ctrl + d.
11999 Palm Drive
Desert Hot Springs
92240
Travis
Clark
Community Development Director
[email protected]
7603296411
Mailing Address
Annual Progress Report January 2020

Item Number: 7.

Optional: This runs a macro which checks to ensure all required fields are filled out. The macro will create two files saved in the same directory this APR file is saved in. One file will be a copy of the APR with highlighted cells which require information. The other file will be list of the problematic cells, along with a description of the nature of the error.

Optional: Save before running. This copies data on Table A2, and creates another workbook with the table split across 4 tabs, each of which can fit onto a single page for easier printing.

Running this macro will remove the comments on the column headers, which contain the instructions. Do not save the APR file after running in order to preserve comments once it is Optional: This macro identifies dates entered that occurred outside of the reporting year.

RHNA credit is only given for building permits issued during the reporting year.

Link to the online system: https://hcd.my.site.com/hcdconnect Toggles formatting that turns cells green/yellow/red based on data validation rules.

Submittal Instructions
Please save your file as Jurisdictionname2024 (no spaces). Example: the city of San Luis Obispo would save their file as SanLuisObispo2024 Housing Element Annual Progress Reports (APRs) forms and tables must be submitted to HCD and the Governor's Office of Planning and Research (OPR) on or before April 1 of each year for the prior calendar year; submit separate reports directly to both HCD and OPR pursuant to Government Code section 65400. There are two options for submitting APRs:

1. Online Annual Progress Reporting System - Please see the link to the online system to the left. This allows you to upload the completed APR form into directly into HCD’s database limiting the risk of errors. If you would like to use the online system, email [email protected] and HCD will send you the login information for your jurisdiction. Please note: Using the online system only provides the information to HCD. The APR must still be submitted to OPR. Their email address is [email protected].

2. Email - If you prefer to submit via email, you can complete the excel Annual Progress Report forms and submit to HCD at [email protected] and to OPR at [email protected]. Please send the Excel workbook, not a scanned or PDF copy of the tables.

Item Number: 7.

Jurisdiction Desert Hot Springs
Reporting Year 2024
Housing Element Planning Period 6th Cycle
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 61
75 136
Units by Structure Type Entitled Permitted Completed
Single-family Attached 0 0 0
Single-family Detached 151 104 58
2 to 4 units per structure 9 14 22
5+ units per structure 0 0 0
Accessory Dwelling Unit 44 17 11
Mobile/Manufactured Home 2 1 0
Total 206 136 91
Infill Housing Developments and Infill Units Permitted # of Projects Units 54 62
74 74
200
206
203
3 0
0 Income Rental Ownership Total
Very Low 0 0 0
Low 0 0 0
Moderate 0 0 0
Above Moderate 0 0 0
Total 0 0 0
Streamlining Provisions Used - Permitted Units # of Projects Units SB 9 (2021) - Duplex in SF Zone 2 4
SB 9 (2021) - Residential Lot Split 0 0
AB 2011 (2022) 0 0
SB 6 (2022) 0 0
SB 423 (2023) 0 0
Ministerial and Discretionary Applications # of Applications Units Ministerial 200 206
Discretionary 0 0
Density Bonus Applications and Units Permitted
Number of Applications Submitted Requesting a Density Bonus 0 Number of Units in Applications Submitted Requesting a Density Bonus 0 Number of Projects Permitted with a Density Bonus 0
Number of Units in Projects Permitted with a Density Bonus 0 Housing Element Programs Implemented and Sites Rezoned Count 24 0
Cells in grey contain auto-calculation formulas
Data is auto-populated based on data entered in Tables A, A2, C, and D Total Housing Applications Submitted:

Number of Proposed Units in All Applications Received:

Total Housing Units Approved:

Total Housing Units Disapproved:

Total Units
Housing Applications Summary
Use of SB 423 Streamlining Provisions - Applications
Note: Units serving extremely low-income households are included in the very low-income permitted Number of SB 423 Streamlining Applications
Above Moderate
Indicated as Infill
Not Indicated as Infill
Building Permits Issued by Affordability Summary
Income Level
Programs Implemented
Sites Rezoned to Accommodate the RHNA
(Jan. 1 - Dec. 31)
10/15/2021 - 10/15/2029
Units Constructed - SB 423 Streamlining Permits
Number of SB 423 Streamlining Applications Approved
Very Low
Low
Moderate
Item Number: 7.

Jurisdiction
Desert Hot
Springs ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Year 2024 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 10/15/2021 - 10/15/2029
Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining Application
Status Project Type Notes
2 3 4 6 7 8 9 11 12 13
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Date
Application
Submitted
(see
instructions)
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
Low-Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome
Non Deed
Restricted
Above
ModerateIncome
Total

PROPOSED
Units by
Project
Total

APPROVED
Units by
project
Total

DISAPPROVE
D Units by
Project
Please select
state
streamlining
provision/s the
application was
submitted
pursuant to.

Did the
housing
development
application
seek
incentives or
concessions
pursuant to
Were
incentives or
concessions
requested
pursuant to
Government
Code section
65915
Please
indicate the
status of the
application.

Is the project
considered a
ministerial
project or
discretionary
project?
Notes+
Summary Row: Start Data Entry Below 0 0 0 1 0 104 101 206 203 3 639274006 0 NO STREET BLDR-24-31 SFD O 1/18/2024 1 1 1 NONE No N/A Pending Ministerial 641131021 66984 CAHUILLA AVENUE BLDR-24-23 ADU O 1/16/2024 1 1 1 NONE No N/A Pending Ministerial 641031032 66162 CAHUILLA AVENUE BLDR-24-25 ADU O 1/16/2024 1 1 1 NONE No N/A Approved Ministerial 639274007 0 NO STREET BLDR-24-32 SFD O 1/18/2024 1 1 1 NONE No N/A Pending Ministerial 642093023 12761 CASA LOMA ROAD BLDR-24-33 SFD O 1/21/2024 1 1 1 NONE No N/A Pending Ministerial 642093023 12761 CASA LOMA ROAD BLDR-24-33 ADU O 1/21/2024 1 1 1 NONE No N/A Pending Ministerial 641292021 13875 SUSAN WAY BLDR-24-35 SFD O 1/22/2024 1 1 1 NONE No N/A Approved Ministerial 641321011 13707 VERBENA DRIVE BLDR-24-41 ADU O 1/24/2024 1 1 1 NONE No N/A Approved Ministerial 642132013 12605 CUANDO WAY BLDR-24-47 ADU O 1/29/2024 1 1 1 1 NONE No N/A Disapproved Ministerial 639274006 0 NO STREET BLDR-24-53 ADU O 1/31/2024 1 1 1 NONE No N/A Pending Ministerial 656400003 66631 THUNDERBIRD LANE Aventura Palms 1 BLDR-24-92 SFD O 2/21/2024 1 1 1 NONE No N/A Approved Ministerial 656400004 66641 THUNDERBIRD LANE Aventura Palms 1 BLDR-24-93 SFD O 2/21/2024 1 1 1 NONE No N/A Approved Ministerial 656400005 66651 THUNDERBIRD LANE Aventura Palms 1 BLDR-24-94 SFD O 2/21/2024 1 1 1 NONE No N/A Approved Ministerial 656400006 66661 THUNDERBIRD LANE Aventura Palms 1 BLDR-24-95 SFD O 2/21/2024 1 1 1 NONE No N/A Approved Ministerial 656400007 66671 THUNDERBIRD LANE Aventura Palms 1 BLDR-24-96 SFD O 2/21/2024 1 1 1 NONE No N/A Approved Ministerial 656400008 66681 THUNDERBIRD LANE Aventura Palms 1 BLDR-24-97 SFD O 2/21/2024 1 1 1 NONE No N/A Approved Ministerial 656400009 66691 THUNDERBIRD LANE Aventura Palms 1 BLDR-24-98 SFD O 2/21/2024 1 1 1 NONE No N/A Approved Ministerial 639274007 0 NO STREET BLDR-24-107 ADU O 2/25/2024 1 1 1 NONE No N/A Pending Ministerial 639274005 0 NO STREET BLDR-24-108 ADU O 2/25/2024 1 1 1 NONE No N/A Pending Ministerial 663341013 13053 EL RIO LANE BLDR-24-115 SFD O 2/28/2024 1 1 1 NONE No N/A Pending Ministerial 656400024 66544 THUNDERBIRD LANE Aventura Palms 1 BLDR-24-120 SFD O 2/28/2024 1 1 1 NONE No N/A Approved Ministerial 639172022 66820 8TH STREET BLDR-24-121 SFD O 2/28/2024 1 1 1 NONE No N/A Pending Ministerial 639191031 66066 5TH STREET BLDR-24-122 ADU O 2/29/2024 1 1 1 NONE No N/A Pending Ministerial 641032041 66050 DESERT VIEW AVENUE BLDR-24-124 SFD O 2/29/2024 1 1 1 NONE No N/A Pending Ministerial 639221039 66146 3RD STREET BLDR-24-145 ADU O 3/6/2024 1 1 1 NONE No N/A Approved Ministerial 641042001 12340 CACTUS DRIVE BLDR-24-157 SFD O 3/11/2024 1 1 1 NONE No N/A Pending Ministerial 641194009 13427 RAMONA DRIVE BLDR-24-161 ADU O 3/12/2024 1 1 1 NONE No N/A Pending Ministerial 641194008 13490 JULIAN DRIVE BLDR-24-162 ADU O 3/12/2024 1 1 1 NONE No N/A Pending Ministerial 641304011 66740 TWO BUNCH PALMS TRAIL BLDR-24-183 ADU O 3/25/2024 1 1 1 NONE No N/A Approved Ministerial 639122003 66751 SAN FELIPE ROAD BLDR-24-243 SFD O 4/25/2024 1 1 1 NONE No N/A Approved Ministerial 639081011 10655 SAN PABLO ROAD BLDR-24-244 ADU O 4/25/2024 1 1 1 NONE No N/A Approved Ministerial 663342002 13236 EL RIO LANE BLDR-24-245
2 to 4 R
4/25/2024
2 2 1 SB 9 (2021) -
Duplex in SF
Zone
No N/A Approved Ministerial
639231042 66238 1ST STREET BLDR-24-251 ADU O 4/30/2024 1 1 0 1 NONE No N/A Disapproved Ministerial 638185007 66778 CASA GRANDE DIVE BLDR-24-268 SFD O 5/6/2024 1 1 1 NONE No N/A Approved Ministerial 639192039 66154 4TH STREET BLDR-24-271 SFD O 5/8/2024 1 1 1 NONE No N/A Approved Ministerial 641232017 13779 CUYAMACA DRIVE BLDR-24-272 SFD O 5/8/2024 1 1 1 NONE No N/A Approved Ministerial 665152016 16534 ELAINE DRIVE BLDR-24-285 SFD O 5/21/2024 1 1 1 NONE No N/A Pending Ministerial 641292019 13881 SUSAN WAY BLDR-24-289 SFD O 5/22/2024 1 1 1 NONE No N/A Pending Ministerial 641292019 13881 SUSAN WAY BLDR-24-290 ADU O 5/22/2024 1 1 1 NONE No N/A Pending Ministerial 642201007 67810 ALAMEDA DRIVE BLDR-24-292 ADU O 5/22/2024 1 1 1 NONE No N/A Approved Ministerial 638203028 9840 MESQUITE AVENUE BLDR-24-295 SFD O 5/23/2024 1 1 1 NONE No N/A Pending Ministerial 638203029 9850 MESQUITE AVENUE BLDR-24-296 SFD O 5/23/2024 1 1 1 NONE No N/A Pending Ministerial 642125020 12849 CUANDO WAY BLDR-24-302 SFD O 5/30/2024 1 1 1 NONE No N/A Pending Ministerial 641184017 13225 RAMONA DRIVE BLDR-24-303 ADU O 5/31/2024 1 1 1 NONE No N/A Approved Ministerial 661491025 65429 SALIDA DEL SOL PLACE BLDR-24-311 ADU O 6/5/2024 1 1 1 NONE No N/A Pending Ministerial 638163028 9633 PALM DRIVE BLDR-24-327 SFD O 6/12/2024 1 1 1 NONE No N/A Pending Ministerial 644134003 12785 DEODAR AVENUE BLDR-24-328 SFD O 6/12/2024 1 1 1 NONE No N/A Pending Ministerial 639054005 0 NO STREET BLDR-24-350 SFD O 6/20/2024 1 1 1 NONE No N/A Pending Ministerial 639101005 0 NO STREET BLDR-24-351 SFD O 6/20/2024 1 1 1 NONE No N/A Pending Ministerial 641042014 66385 ACOMA AVENUE BLDR-24-768 ADU O 11/20/2024 1 1 1 NONE No N/A Pending Ministerial 639212034 66376 4TH STREET BLDR-24-362 SFD O 6/24/2024 1 1 1 NONE No N/A Pending Ministerial 663342001 13254 EL RIO LANE BLDR-24-369
2 to 4 R
6/25/2024
2 2 2 SB 9 (2021) -
Duplex in SF
Zone
No N/A Approved Ministerial
641041029 66404 ACOMA AVENUE BLDR-24-374 ADU O 6/27/2024 1 1 1 NONE No N/A Pending Ministerial 639251005 66317 2ND STREET BLDR-24-376 ADU O 6/27/2024 1 1 1 NONE No N/A Pending Ministerial 639222016 66183 3RD STREET BLDR-24-377 ADU O 6/27/2024 1 1 1 NONE No N/A Pending Ministerial 639171015 66941 SAN ARDO ROAD BLDR-24-380 ADU O 6/27/2024 1 1 1 NONE No N/A Pending Ministerial 639222009 66099 3RD STREET BLDR-24-386 SFD O 7/1/2024 1 1 1 NONE No N/A Approved Ministerial 639202003 66285 7TH STREET BLDR-24-387 SFD O 7/1/2024 1 1 1 NONE No N/A Approved Ministerial 641074009 66241 FLORA AVENUE BLDR-24-396 ADU O 7/2/2024 1 1 1 NONE No N/A Pending Ministerial 663411013 65913 ESTRELLA AVENUE BLDR-24-408 ADU O 7/8/2024 1 1 1 NONE No N/A Pending Ministerial 642222005 13655 MONTEREY ROAD BLDR-24-414 SFD O 7/11/2024 1 1 1 NONE No N/A Pending Ministerial 641212002 13292 EL CAJON DRIVE BLDR-24-420 SFD O 7/11/2024 1 1 1 NONE No N/A Approved Ministerial 667330072 62667 RAINBOW LANE Skyborne Village 3 BLDR-24-431 SFD O 7/16/2024 1 1 1 NONE No N/A Approved Ministerial 667330009 62663 RAINBOW LANE Skyborne Village 3 BLDR-24-432 SFD O 7/16/2024 1 1 1 NONE No N/A Approved Ministerial 667330010 62659 RAINBOW LANE Skyborne Village 3 BLDR-24-433 SFD O 7/16/2024 1 1 1 NONE No N/A Approved Ministerial 667330012 62651 RAINBOW LANE Skyborne Village 3 BLDR-24-434 SFD O 7/16/2024 1 1 1 NONE No N/A Approved Ministerial 667330013 62647 RAINBOW LANE Skyborne Village 3 BLDR-24-435 SFD O 7/16/2024 1 1 1 NONE No N/A Approved Ministerial 641181007 13070 WEST DIVE BLDR-24-443 SFD O 7/17/2024 1 1 1 NONE No N/A Pending Ministerial 639201046 66375 8TH STREET BLDR-24-458 2 to 4 R 7/23/2024 3 3 3 NONE No N/A Pending Ministerial 639022011 66125 SANTA ROSA ROAD BLDR-24-473 ADU O 8/1/2024 1 1 1 NONE No N/A Pending Ministerial 638105015 9453 CALLE FUNDADOR BLDR-24-475 SFD O 8/1/2024 1 1 1 NONE No N/A Approved Ministerial 638173025 9473 PALM DRIVE BLDR-24-476 SFD O 8/1/2024 1 1 1 NONE No N/A Pending Ministerial 656254002 67635 SAN ANDREAS STREET BLDR-24-484 SFD O 8/6/2024 1 1 1 NONE No N/A Pending Ministerial 638173022 9571 PALM DRIVE BLDR-24-485 ADU O 8/7/2024 1 1 1 NONE No N/A Approved Ministerial 665153016 16510 ATLANTIC AVENUE BLDR-24-491 SFD O 8/8/2024 1 1 1 NONE No N/A Pending Ministerial 639201046 66375 8TH STREET BLDR-24-458 ADU O 7/23/2024 2 2 1 1 NONE No N/A Pending Ministerial 639123012 10113 MESQUITE AVENUE BLDR-24-536 SFD O 8/28/2024 1 1 1 NONE No N/A Pending Ministerial 641092050 66324 HACIENDA AVENUE BLDR-24-550 ADU O 9/4/2024 1 1 1 NONE No N/A Approved Ministerial 639201046 66375 8TH STREET BLDR-24-458 SFD O 7/23/2024 1 1 1 NONE No N/A Pending Ministerial 639124011 0 NO STREET BLDR-24-563 SFD O 9/9/2024 1 1 1 NONE No N/A Pending Ministerial 639124012 0 NO STREET BLDR-24-564 SFD O 9/9/2024 1 1 1 NONE No N/A Pending Ministerial 665142007 16313 MAUNA LOA ROAD BLDR-24-568 SFD O 9/11/2024 1 1 1 NONE No N/A Pending Ministerial Table A
Cells in grey contain auto-calculation formulas
1 5
Project Identifier Unit Types Proposed Units - Affordability by Household Incomes Density Bonus Law Applications
10 Housing Development Applications Submitted

Item Number: 7.
656500001 65376 RANCHO DESCANSO Rancho Descanso BLDR-24-569 SFD O 9/13/2024111 NONE No N/A Approved Ministerial
656500002 65364 RANCHO DESCANSO Rancho Descanso BLDR-24-570 SFDO 9/13/20241 11 NONE No N/A Approved Ministerial
656500003 65352 RANCHO DESCANSO Rancho Descanso BLDR-24-571 SFDO 9/13/20241 11 NONE No N/A Approved Ministerial
664110012 11751 DESERT TERRACE WAY BLDR-24-577 MHO 9/16/20241 11 NONE No N/A Pending Ministerial
667320020 62424 HIGHWING STREET Skyborne Village 3 BLDR-24-579 SFDO 9/17/20241 11 NONE No N/A Approved Ministerial
667320021 62428 HIGHWING STREET Skyborne Village 3 BLDR-24-580 SFDO 9/17/20241 11 NONE No N/A Approved Ministerial
667320022 62432 HIGHWING STREET Skyborne Village 3 BLDR-24-581 SFDO 9/17/20241 11 NONE No N/A Approved Ministerial
667320023 62436 HIGHWING STREET Skyborne Village 3 BLDR-24-582 SFDO 9/17/20241 11 NONE No N/A Approved Ministerial
667320024 62440 HIGHWING STREET Skyborne Village 3 BLDR-24-583 SFDO 9/17/202411 1 NONE No N/A Approved Ministerial
667320025 62444 HIGHWING STREET Skyborne Village 3 BLDR-24-585 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320008 62435 HIGHWING STREET Skyborne Village 3 BLDR-24-586 SFD O 9/17/2024
111 NONE No N/A Approved Ministerial
667320009 62439 HIGHWING STREET Skyborne Village 3 BLDR-24-587 SFD O 9/17/2024
111 NONE No N/A Approved Ministerial
667320010 62443 HIGHWING STREET Skyborne Village 3 BLDR-24-588 SFDO 9/17/2024 111 NONE No N/A Approved Ministerial
667320011 62447 HIGHWING STREET Skyborne Village 3 BLDR-24-589 SFDO 9/17/2024 111 NONE No N/A Approved Ministerial
667320030 62451 HIGHWING STREET Skyborne Village 3 BLDR-24-590 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320031 62455 HIGHWING STREET Skyborne Village 3 BLDR-24-591 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320032 62459 HIGHWING STREET Skyborne Village 3 BLDR-24-592 SFDO 9/17/20241 11 NONE No N/A Approved Ministerial
667320026 62448 HIGHWING STREET Skyborne Village 3 BLDR-24-593 SFDO 9/17/2024 11 1 NONE No N/A Approved Ministerial
667320058 62452 HIGHWING STREET Skyborne Village 3 BLDR-24-594 SFDO 9/17/2024 111 NONE No N/A Approved Ministerial
667320059 62456 HIGHWING STREET Skyborne Village 3 BLDR-24-595 SFDO 9/17/2024 111 NONE No N/A Approved Ministerial
667320060 62460 HIGHWING STREET Skyborne Village 3 BLDR-24-596 SFDO 9/17/2024 111 NONE No N/A Approved Ministerial
667330003 11252 E PARKWALK LANE Skyborne Village 3 BLDR-24-597 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667330002 11250 E PARKWALK LANE Skyborne Village 3 BLDR-24-598 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667330001 11248 E PARKWALK LANE Skyborne Village 3 BLDR-24-599 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320001 11249 E PARKWALK LANE Skyborne Village 3 BLDR-24-600 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320017 11244 E PARKWALK LANE Skyborne Village 3 BLDR-24-601 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320016 11242 E PARKWALK LANE Skyborne Village 3 BLDR-24-602 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320002 11245 E PARKWALK LANE Skyborne Village 3 BLDR-24-603 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320003 11241 E PARKWALK LANE Skyborne Village 3 BLDR-24-604 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320004 11237 E PARKWALK LANE Skyborne Village 3 BLDR-24-605 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320005 11233 E PARKWALK LANE Skyborne Village 3 BLDR-24-606 SFDO 9/17/2024 111 NONE No N/A Approved Ministerial
667320006 11229 E PARKWALK LANE Skyborne Village 3 BLDR-24-607 SFDO 9/17/2024 111 NONE No N/A Approved Ministerial
667320007 11225 E PARKWALK LANE Skyborne Village 3 BLDR-24-608 SFDO 9/17/2024 111 NONE No N/A Approved Ministerial
667320015 62528 MOONCREST DRIVE Skyborne Village 3 BLDR-24-609 SFDO 9/17/2024 111 NONE No N/A Approved Ministerial
667320014 62532 MOONCREST DRIVE Skyborne Village 3 BLDR-24-610 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 667320013 62536 MOONCREST DRIVE Skyborne Village 3 BLDR-24-611 SFDO 9/17/2024111 NONE No N/A Approved Ministerial 638105015 9453 CALLE FUNDADOR BLDR-24-617 ADUO 9/23/2024111 NONE No N/A Approved Ministerial 641032005 66049 CAHUILLA AVENUE BLDR-24-626 ADUO 9/24/2024111 NONE No N/A Pending Ministerial 639181057 66201 8TH STREET BLDR-24-631 SFDO 9/25/2024111 NONE No N/A Pending Ministerial 639181056 66191 8TH STREET BLDR-24-632 SFDO 9/25/2024111 NONE No N/A Pending Ministerial 641092014 66405 GRANADA AVENUE BLDR-24-649 SFDO 10/2/2024111 NONE No N/A Pending Ministerial 641092015 66419 GRANADA AVENUE BLDR-24-650 SFDO 10/2/2024111 NONE No N/A Pending Ministerial 665133011 0 NO STREET BLDR-24-665 SFDO 10/9/2024
11 1 NONE No N/A Pending Ministerial
638213027 0 NO STREET BLDR-24-678 SFDO 10/14/2024
11 1 NONE No N/A Pending Ministerial
641161054 66934 ESTRELLA AVENUE BLDR-24-695 ADUO 10/23/2024 111 NONE No N/A Pending Ministerial
639222009 66099 3RD STREET BLDR-24-700 ADUO 10/28/2024
111 NONE No N/A Approved Ministerial
639202003 66285 7TH STREET BLDR-24-701 ADUO 10/28/2024
111 NONE No N/A Approved Ministerial
639143007 66677 12TH STREET BLDR-24-708 SFDO 10/30/20241 11 NONE No N/A Pending Ministerial
644203012 13485 AVENIDA LA VISTA BLDR-24-709 SFDO 10/30/2024111 NONE No N/A Pending Ministerial 639111003 66704 YUCCA DRIVE BLDR-24-710 SFDO 10/30/2024111 NONE No N/A Pending Ministerial 656500024 65355 RANCHO DESCANSO Rancho Descanso BLDR-24-712 SFDO 10/30/2024111 NONE No N/A Approved Ministerial 656500025 65367 RANCHO DESCANSO Rancho Descanso BLDR-24-716 SFDO 11/4/2024111 NONE No N/A Approved Ministerial 656500026 65379 RANCHO DESCANSO Rancho Descanso BLDR-24-717 SFDO 11/4/2024111 NONE No N/A Approved Ministerial 656500027 65391 RANCHO DESCANSO Rancho Descanso BLDR-24-718 SFDO 11/4/2024111 NONE No N/A Approved Ministerial 656500033 65460 RANCHO DESCANSO Rancho Descanso BLDR-24-719 SFDO 11/4/2024111 NONE No N/A Approved Ministerial 656500034 65448 RANCHO DESCANSO Rancho Descanso BLDR-24-720 SFDO 11/4/2024 111 NONE No N/A Approved Ministerial
656500035 65436 RANCHO DESCANSO Rancho Descanso BLDR-24-721 SFDO 11/4/2024 111 NONE No N/A Approved Ministerial
656500036 65424 RANCHO DESCANSO Rancho Descanso BLDR-24-722 SFDO 11/4/2024 111 NONE No N/A Approved Ministerial
656500037 65412 RANCHO DESCANSO Rancho Descanso BLDR-24-723 SFDO 11/4/2024 111 NONE No N/A Approved Ministerial
656500038 65400 RANCHO DESCANSO Rancho Descanso BLDR-24-724 SFDO 11/4/2024 111 NONE No N/A Approved Ministerial
656500039 65388 RANCHO DESCANSO Rancho Descanso BLDR-24-725 SFDO 11/4/2024111 NONE No N/A Approved Ministerial 642143008 67856 HACIENDA AVENUE BLDR-24-726 MHO 11/4/2024111 NONE No N/A Pending Ministerial 638292015 10900 TELIMO WAY BLDR-24-729 ADUO 11/5/2024111 NONE No N/A Approved Ministerial 656500032 15402 AVENIDA DE CIELO Rancho Descanso BLDR-24-740 SFDO 11/11/2024111 NONE No N/A Approved Ministerial 656500031 15414 AVENIDA DE CIELO Rancho Descanso BLDR-24-741 SFDO 11/11/2024111 NONE No N/A Approved Ministerial 656500030 15426 AVENIDA DE CIELO Rancho Descanso BLDR-24-742 SFDO 11/11/2024111 NONE No N/A Approved Ministerial 656500029 15438 AVENIDA DE CIELO Rancho Descanso BLDR-24-743 SFDO 11/11/2024111 NONE No N/A Approved Ministerial 656500028 15450 AVENIDA DE CIELO Rancho Descanso BLDR-24-744 SFDO 11/11/2024111 NONE No N/A Approved Ministerial 656510037 15462 AVENIDA DE CIELO Rancho Descanso BLDR-24-745 SFDO 11/11/2024111 NONE No N/A Approved Ministerial 656510036 15474 AVENIDA DE CIELO Rancho Descanso BLDR-24-746 SFDO 11/11/2024111 NONE No N/A Approved Ministerial 656510035 15486 AVENIDA DE CIELO Rancho Descanso BLDR-24-747 SFDO 11/11/2024 111 NONE No N/A Approved Ministerial
656510034 15498 AVENIDA DE CIELO Rancho Descanso BLDR-24-748 SFDO 11/11/2024111 NONE No N/A Approved Ministerial 661490024 65359 AVENIDA DORADO BLDR-24-763 SFDO 11/18/2024111 NONE No N/A Pending Ministerial 641042014 66395 ACOMA AVENUE BLDR-24-767 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 641042014 66385 ACOMA AVENUE BLDR-24-768 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510010 65139 AVENIDA DE NUVES Rancho Descanso BLDR-24-769 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510011 65151 AVENIDA DE NUVES Rancho Descanso BLDR-24-770 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510012 65163 AVENIDA DE NUVES Rancho Descanso BLDR-24-771 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510013 65175 AVENIDA DE NUVES Rancho Descanso BLDR-24-772 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510014 65187 AVENIDA DE NUVES Rancho Descanso BLDR-24-773 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510015 65199 AVENIDA DE NUVES Rancho Descanso BLDR-24-774 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510016 65196 AVENIDA DE NUVES, Rancho Descanso BLDR-24-775 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510017 65184 AVENIDA DE NUVES Rancho Descanso BLDR-24-776 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510018 65172 AVENIDA DE NUVES Rancho Descanso BLDR-24-777 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510019 65160 AVENIDA DE NUVES Rancho Descanso BLDR-24-778 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510020 65148 AVENIDA DE NUVES Rancho Descanso BLDR-24-779 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510021 65136 AVENIDA DE NUVES Rancho Descanso BLDR-24-780 SFDO 11/20/2024111 NONE No N/A Pending Ministerial 656510003 15485 AVENIDA DE SOLEDAD Rancho Descanso BLDR-24-782 SFDO 11/25/2024111 NONE No N/A Pending Ministerial 656510004 15497 AVENIDA DE SOLEDAD Rancho Descanso BLDR-24-783 SFDO 11/25/2024111 NONE No N/A Pending Ministerial 656510005 15509 AVENIDA DE SOLEDAD Rancho Descanso BLDR-24-784 SFDO 11/25/2024111 NONE No N/A Pending Ministerial 656510006 15521 AVENIDA DE SOLEDAD Rancho Descanso BLDR-24-785 SFDO 11/25/2024111 NONE No N/A Pending Ministerial 656510007 65103 AVENIDA DE NUVES Rancho Descanso BLDR-24-786 SFDO 11/25/2024111 NONE No N/A Pending Ministerial 656510008 65115 AVENIDA DE NUVES Rancho Descanso BLDR-24-787 SFDO 11/25/2024111 NONE No N/A Pending Ministerial 656510009 65127 AVENIDA DE NUVES Rancho Descanso BLDR-24-788 SFDO 11/25/2024111 NONE No N/A Pending Ministerial 656510022 65124 AVENIDA DE NUVES Rancho Descanso BLDR-24-789 SFDO 11/25/2024111 NONE No N/A Pending Ministerial 656510023 65112 AVENIDA DE NUVES Rancho Descanso BLDR-24-790 SFDO 11/25/2024111 NONE No N/A Pending Ministerial 656510024 65100 AVENIDA DE NUVES Rancho Descanso BLDR-24-791 SFDO 11/25/2024111 NONE No N/A Pending Ministerial 667320012 62540 MOONCREST DRIVE Skyborne Village 3 BLDR-24-805 SFDO 12/3/2024111 NONE No N/A Approved Ministerial 667320039 62544 MOONCREST DRIVE Skyborne Village 3 BLDR-24-806 SFDO 12/3/2024111 NONE No N/A Approved Ministerial 667320038 62548 MOONCREST DRIVE Skyborne Village 3 BLDR-24-807 SFDO 12/3/2024111 NONE No N/A Approved Ministerial 667320037 62552 MOONCREST DRIVE Skyborne Village 3 BLDR-24-808 SFDO 12/3/2024111 NONE No N/A Approved Ministerial 667320036 62556 MOONCREST DRIVE Skyborne Village 3 BLDR-24-809 SFDO 12/3/2024111 NONE No N/A Approved Ministerial 667320035 62560 MOONCREST DRIVE Skyborne Village 3 BLDR-24-810 SFDO 12/3/2024111 NONE No N/A Approved Ministerial 667320034 62467 HIGHWING STREET Skyborne Village 3 BLDR-24-813 SFDO 12/4/2024111 NONE No N/A Pending Ministerial 667320033 62463 HIGHWING STREET Skyborne Village 3 BLDR-24-814 SFDO 12/4/2024111 NONE No N/A Pending Ministerial 667320061 62464 HIGHWING STREET Skyborne Village 3 BLDR-24-815 SFDO 12/4/2024111 NONE No N/A Pending Ministerial 667320062 62468 HIGHWING STREET Skyborne Village 3 BLDR-24-816 SFDO 12/4/2024111 NONE No N/A Pending Ministerial 667320063 62472 HIGHWING STREET Skyborne Village 3 BLDR-24-817 SFDO 12/4/2024111 NONE No N/A Pending Ministerial 641042001 12340 CACTUS DRIVE BLDR-24-822 ADUO 12/10/2024111 NONE No N/A Pending Ministerial 641091009 66339 FLORA AVENUE BLDR-24-828 SFDO 12/12/2024111 NONE No N/A Pending Ministerial

Item Number: 7.
641143006 66689 DESERT VIEW AVENUE BLDR-24-830 ADU O 12/12/2024 1 1 1 NONE No N/A Pending Ministerial 639231015 66191 2ND STREET BLDR-24-850 SFD O 12/18/2024 1 1 1 NONE No N/A Pending Ministerial 663372001 13758 EL RIO LANE BLDR-24-862
2 to 4 R
12/27/2024
2 2 2 SB 9 (2021) -
Duplex in SF
Zone
No N/A Pending Ministerial
644134003 12785 DEODAR AVENUE BLDR-24-328 ADU O 6/15/2024 1 1 1 NONE No N/A Pending Ministerial 639212034 66376 4TH STREET BLDR-24-362 ADU O 6/24/2024 1 1 1 NONE No N/A Pending Ministerial 641092014 66405 GRANADA AVENUE BLDR-24-649 ADU O 9/25/2024 1 1 1 NONE No N/A Pending Ministerial 641092015 66419 GRANADA AVENUE BLDR-24-650 ADU O 9/25/2024 1 1 1 NONE No N/A Pending Ministerial 641042014 66395 ACOMA AVENUE BLDR-24-767 ADU O 11/20/2024 1 1 1 NONE No N/A Pending Ministerial

Item Number: 7.

Jurisdiction
Desert Hot
Springs ANNUAL ELEMENT PROGRESS REPORT Reporting
Year 2024 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 10/15/2021 - 10/15/2029
Table A2
Streamlining Infill
Housing without
Financial Assistance or
Deed Restrictions
Term of
Affordability or
Deed Restriction
Notes
2 3 5 6 8 9 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit
Category
(SFA,SFD,2
to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Entitlement
Date
Approved
# of Units
issued
Entitlements
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Building
Permits Date
Issued
# of Units Issued
Building Permits
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Certificates of
Occupancy or
other forms of
readiness
(see instructions)
Date Issued
# of Units
issued
Certificates
of
Occupancy
or other
forms of
readiness
How many of
the units
were
Extremely
Low
Income?
Please select
the state
streamlining
provision the
project was

APPROVED
pursuant to.
(may select
multiple)
Infill Units?
Y/N+
Assistance
Programs for Each
Development
(may select
multiple - see
instructions)
Deed
Restriction
Type
(may select
multiple - see
instructions)
For units affordable
without financial
assistance or deed
restrictions, explain how
the locality determined
the units were affordable
(see instructions)
Term of
Affordability or
Deed Restriction
(years) (if affordable
in perpetuity enter
1000)+
Number of
Demolished/Destr
oyed Units
Demolished
or Destroyed
Units
Demolished
/Destroyed
Units
Owner or
Renter
Total Density Bonus
Applied to the Project
(Percentage Increase in
Total Allowable Units or
Total Maximum
Allowable Residential
Gross Floor Area)
Number of Other
Incentives,
Concessions,
Waivers, or Other
Modifications
Given to the
Project (Excluding
Parking Waivers
or Parking
Reductions)
List the
incentives,
concessions,
waivers, and
modifications
(Excluding
Parking
Waivers or
Parking
Modifications)
Did the project
receive a reduction
or waiver of parking
standards? (Y/N)
Notes+
Summary Row: Start Data Entry Below 0 0 0 1 0 104 101 206 0 0 0 0 0 61 75 136 0 0 0 0 0 69 23 91 0 0 639274006 0 NO STREET
Infill
BLDR-24-31
SFD O 1
1/18/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641131021 66984 CAHUILLA AVENUE
Infill
BLDR-24-23
ADU O 1
1/16/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641031032 66162 CAHUILLA AVENUE
Infill
BLDR-24-25
ADU O 1
1/16/2024 1
1 6/6/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639274007 0 NO STREET
Infill
BLDR-24-32
SFD O 1
1/18/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
642093023 12761 CASA LOMA ROAD
Infill
BLDR-24-33
SFD O 1
1/21/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
642093023 12761 CASA LOMA ROAD
Infill
BLDR-24-33
ADU O 1
1/21/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641292021 13875 SUSAN WAY
Infill
BLDR-24-35
SFD O 1
1/22/2024 1
1 12/2/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641321011 13707 VERBENA DRIVE
Infill
BLDR-24-41
ADU O 1
1/24/2024 1
1 6/12/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
642132013 12605 CUANDO WAY
Infill
BLDR-24-47
ADU O 1
1/29/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639274006 0 NO STREET
Infill
BLDR-24-53
ADU O 1
1/31/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
656400003 66631 THUNDERBIRD LANE
Aventura Palms 1
BLDR-24-92
SFD O
1 2/21/2024 1
1 5/9/2024 1 0 NONE N
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
656400004 66641 THUNDERBIRD LANE
Aventura Palms 1
BLDR-24-93
SFD O
1 2/21/2024 1
1 5/9/2024 1 0 NONE N
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
656400005 66651 THUNDERBIRD LANE
Aventura Palms 1
BLDR-24-94
SFD O
1 2/21/2024 1
1 5/9/2024 1 0 NONE N
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
656400006 66661 THUNDERBIRD LANE
Aventura Palms 1
BLDR-24-95
SFD O
1 2/21/2024 1
1 5/9/2024 1 0 NONE N
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
656400007 66671 THUNDERBIRD LANE
Aventura Palms 1
BLDR-24-96
SFD O
1 2/21/2024 1
1 5/9/2024 1 0 NONE N
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
656400008 66681 THUNDERBIRD LANE
Aventura Palms 1
BLDR-24-97
SFD O
1 2/21/2024 1
1 5/9/2024 1 0 NONE N
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
656400009 66691 THUNDERBIRD LANE
Aventura Palms 1
BLDR-24-98
SFD O
1 2/21/2024 1
1 5/9/2024 1 0 NONE N
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639274007 0 NO STREET
Infill
BLDR-24-107
ADU O 1
2/25/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639274005 0 NO STREET
Infill
BLDR-24-108
ADU O 1
2/25/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
663341013 13053 EL RIO LANE
Infill
BLDR-24-115
SFD O 1
2/28/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
656400024 66544 THUNDERBIRD LANE
Aventura Palms 1
BLDR-24-120
SFD O
1 2/28/2024 1
1 5/9/2024 1 0 NONE N
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639172022 66820 8TH STREET
Infill
BLDR-24-121
SFD O 1
2/28/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639191031 66066 5TH STREET
Infill
BLDR-24-122
ADU O 1
2/29/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641032041 66050 DESERT VIEW AVENUE
Infill
BLDR-24-124
SFD O 1
2/29/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639221039 66146 3RD STREET
Infill
BLDR-24-145
ADU O 1
3/6/2024 1
1 11/4/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641042001 12340 CACTUS DRIVE
Infill
BLDR-24-157
SFD O 1
3/11/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641194009 13427 RAMONA DRIVE
Infill
BLDR-24-161
ADU O 1
3/12/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641194008 13490 JULIAN DRIVE
Infill
BLDR-24-162
ADU O 1
3/12/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641304011 66740 TWO BUNCH PALMS TRAIL
Infill
BLDR-24-183
ADU O 1
3/25/2024 1
1 12/3/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639122003 66751 SAN FELIPE ROAD
Infill
BLDR-24-243
SFD O 1
4/25/2024 1
1 12/3/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639081011 10655 SAN PABLO ROAD
Infill
BLDR-24-244
ADU O 1
4/25/2024 1
1 4/25/2024 1 1 10/22/2024 1 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
663342002 13236 EL RIO LANE
Infill
BLDR-24-245
2 to 4 R 2
4/25/2024 2
2 7/11/2024 2 0 SB 9 (2021) -
Duplex in SF Zone Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639231042 66238 1ST STREET
Infill
BLDR-24-251
ADU O 1
4/30/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
638185007 66778 CASA GRANDE DIVE
Infill
BLDR-24-268
SFD O 1
5/6/2024 1
1 12/3/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639192039 66154 4TH STREET
Infill
BLDR-24-271
SFD O 1
5/8/2024 1
1 10/8/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641232017 13779 CUYAMACA DRIVE
Infill
BLDR-24-272
SFD O 1
5/8/2024 1
1 9/11/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
665152016 16534 ELAINE DRIVE
Infill
BLDR-24-285
SFD O 1
5/21/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641292019 13881 SUSAN WAY
Infill
BLDR-24-289
SFD O 1
5/22/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641292019 13881 SUSAN WAY
Infill
BLDR-24-290
ADU O 1
5/22/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
642201007 67810 ALAMEDA DRIVE
Infill
BLDR-24-292
ADU O 1
5/22/2024 1
1 7/16/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
638203028 9840 MESQUITE AVENUE
Infill
BLDR-24-295
SFD O 1
5/23/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
638203029 9850 MESQUITE AVENUE
Infill
BLDR-24-296
SFD O 1
5/23/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
642125020 12849 CUANDO WAY
Infill
BLDR-24-302
SFD O 1
5/30/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641184017 13225 RAMONA DRIVE
Infill
BLDR-24-303
ADU O 1
5/31/2024 1
1 8/7/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
661491025 65429 SALIDA DEL SOL PLACE
Infill
BLDR-24-311
ADU O 1
6/5/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
638163028 9633 PALM DRIVE
Infill
BLDR-24-327
SFD O 1
6/12/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
644134003 12785 DEODAR AVENUE Infill BLDR-24-328
SFD O 1
6/12/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639054005 0 NO STREET Infill BLDR-24-350
SFD O 1
6/20/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639101005 0 NO STREET Infill BLDR-24-351
SFD O 1
6/20/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641234011 13945 RAMONA DRIVE
Infill
BLDR-22-164
SFD O
0 0 1 5/8/2024 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639212034 66376 4TH STREET Infill BLDR-24-362
SFD O 1
6/24/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
663342001 13254 EL RIO LANE Infill BLDR-24-369
2 to 4 R 2
6/25/2024 2
2 9/11/2024 2 0 SB 9 (2021) -
Duplex in SF Zone Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641041029 66404 ACOMA AVENUE Infill BLDR-24-374
ADU O 1
6/27/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639251005 66317 2ND STREET Infill BLDR-24-376
ADU O 1
6/27/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639222016 66183 3RD STREET Infill BLDR-24-377
ADU O 1
6/27/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639171015 66941 SAN ARDO ROAD Infill BLDR-24-380
ADU O 1
6/27/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639222009 66099 3RD STREET Infill BLDR-24-386
SFD O 1
7/1/2024 1
1 11/4/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
639202003 66285 7TH STREET Infill BLDR-24-387
SFD O 1
7/1/2024 1
1 11/4/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641074009 66241 FLORA AVENUE Infill BLDR-24-396
ADU O 1
7/2/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
663411013 65913 ESTRELLA AVENUE Infill BLDR-24-408
ADU O 1
7/8/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
642222005 13655 MONTEREY ROAD Infill BLDR-24-414
SFD O 1
7/11/2024 1
0 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
641212002 13292 EL CAJON DRIVE Infill BLDR-24-420
SFD O 1
7/11/2024 1
1 8/29/2024 1 0 NONE Y
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
667330072 62667 RAINBOW LANE Skyborne Village 3 BLDR-24-431 SFD O
1 7/16/2024 1
1 8/28/2024 1 0 NONE N
Estimated value of home meets
standards for moderate income
using HCD affordability
calculator
Note: "+" indicates an optional field
Housing with Financial Assistance
and/or Deed Restrictions Project Identifier Demolished/Destroyed Units Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units Density Bonus
1 Unit Types Affordability by Household Incomes - Completed Entitlement Affordability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 4 7 10