(e) "At Risk of Homelessness" means an individual or household that is at risk of homelessness, as defined in Part 578.3 of Title 24 of the Code of Federal Regulations. A household that is At Risk of Homelessness must qualify as a 30% AMI Household in order to be income-eligible for a Unit.
(f) “Chronically Homeless” means an individual or household that is chronically homeless as defined in accordance with Part 578.3 of Title 24 of the Code of Federal Regulations.
(g) “Effective Date” means the date this Declaration is recorded in the Official Records of Monterey County in the State of California.
(h) “Homeless” means individuals and families who are experiencing homelessness, as defined in Part 578.3 of Title 24 of the Code of Federal Regulations. (i) "HUD" means the United States Department of Housing and Urban Development. (j) "Permanent Housing" means housing, dwellings, or other living accommodations where the landlord does not limit the tenant’s length of stay or restrict the tenant’s movements and where the tenant has a lease and is subject to the rights and responsibilities of tenancy pursuant to California Civil Code section 1940. (k) “Program Requirements” means all of the following:
a. the NOFA;
b. the Homekey Program;
c. the MHP Program;
d. the MHP Guidelines;
e. the Uniform Multifamily Regulations (Cal. Code Regs., tit. 25, § 8300 et seq.), effective November 15, 2017, and as subsequently amended, except to the extent that any UMR provision would be inconsistent with the provisions of the NOFA (the “UMRs”);
f. the American Rescue Plan Act of 2021 (Pub.L. No. 117-2) and all related federal guidance (“ARPA”); and
g. all applicable local, state, and federal law.
(l) “Target Population” means individuals and families who are Homeless, Chronically Homeless, or At Risk of Homelessness.
(m) “Supportive Services” means social, health, educational, income support, employment, and housing stability services and benefits; coordination of community building and educational activities; individualized needs assessment and case management; and individualized assistance with obtaining services and benefits. (n) "Term" means the term of this Declaration, which commences on the Effective Date of this Declaration and expires fifty-five (55) years from the date of issuance of the certificate of occupancy for the Development.
(o) "Unit" means one (1) or all of forty-four (44) units in the Property. The manager unit at the Property is not considered a Unit.
3. Affordability and Occupancy Covenants.
3.1 Occupancy Requirements. During the Term, the forty-four (44) Units will be occupied by, or, if vacant, available for occupancy by the Target Population.
Owner shall use its best efforts to ensure that at least:
a. Fifteen (15) of the Units are restricted to occupancy by the Chronically Homeless;
b. Fifteen percent (15%) of the Units will be accessible for persons with mobility disabilities; and
c. Ten percent (10%) of the Units will be accessible for persons with hearing or vision disabilities.
If a Unit is available but there is no person qualifying under one of the foregoing specific groups, Owner may allow a member of one of the other Target Population groups to occupy that Unit.
3.2 Accessibility. Owner shall comply with all applicable state and federal building codes and standards, as well as with all design and accessibility laws. Without limiting the generality of the foregoing, Owner shall further ensure that the Development is in compliance with the following housing and building accessibility requirements:
(a) California Building Code Chapters 11A and 11B;
(b) the Fair Housing Act (42 U.S.C. § 3601 et seq.) and its implementing regulations at 24 Code of Federal Regulations part 100, and the ANSI A117.11986 design and construction standard incorporated by reference at 24 Code of Federal Regulations part 100.201a;
(c) the Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.) and its implementing regulations at 28 Code of Federal Regulations part 35 (Title II) and part 36 (Title III);
(d) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794) and its implementing regulations at 24 Code of Federal Regulations part 8; and (e) the Uniform Federal Accessibility Standards (UFAS) at 24 Code of Federal Regulations part 40, or, in the alternative, the 2010 ADA Standards for Accessible Design.
3.3 Tenant Selection. Referrals to Units shall be made through the local Coordinated Entry System (“CES”). All referral protocols for Units shall be developed in collaboration with the local Continuum of Care and implemented consistent with the Program Requirements.
3.4 Rent Standards. Rent limits for initial occupancy, and for each subsequent occupancy, of a Unit shall not exceed thirty percent (30%) of that Unit’s designated incomeeligibility level.
3.5 Other Restrictions. To the extent Owner and/or City obtain additional funding for the acquisition or rehabilitation of the Property from non-HCD sources, and those nonHCD sources impose independent occupancy and tenant selection criteria (“Additional Occupancy Criteria”) on the Development, City and Owner covenant and agree as follows:
(i) City and Owner shall use their reasonable best efforts to ensure that such Additional Occupancy Criteria are, to the maximum extent reasonably possible, consistent with these Covenants in both their definition and implementation.
(ii) If, during any period of time, there is any vacancy in the Development because an insufficient number of prospective tenants qualify for Units under both the Homekey Target Population criteria and the Additional Occupancy Criteria, then the vacant Unit(s) shall be leased to those individuals and families that meet the Homekey Target Population definition under this Declaration.
The terms of any and all agreements, documents, and instruments memorializing any such Additional Occupancy Criteria shall be consistent with this Section 3.5 and are otherwise subject to HCD’s prior reasonable written consent.
At all times during the term hereof, all such Additional Occupancy Criteria, and the agreements, documents, and instruments evidencing the same, shall be recorded, and shall be and remain subject and subordinate to this Declaration.
4. Management Responsibility; Maintenance and Repair; Construction.
4.1 Management Responsibility. Owner is responsible for all management functions with respect to the Property. City shall have no direct responsibility over management of the Property other than its enforcement of this Declaration. Owner shall retain a professional property management company, approved by City in its reasonable discretion, to perform its management duties hereunder. Any change of the professional property management company shall be approved by City in its reasonable discretion.
Owner shall provide the City with the contact information for the property management company. Owner shall cause the Property to be managed by an experienced management agent with an ability to operate residential facilities like the Property in a manner that will provide decent, safe, and sanitary housing. City hereby approves of Step Up on Second Street, Inc., a California nonprofit public benefit corporation, as the initial management agent for the Property. If City determines that the professional management company is not complying with the requirements of this Declaration with respect to the Property, City may demand that Owner retain a different professional management company.
4.2 Maintenance and Repair. Owner agrees at all times during the Term:
a. To keep the Property in decent, safe, sanitary, tenantable condition and repair, and to permit no material waste thereof;
b. Not to commit or suffer to be done or exist on or about the Property any condition causing the Property to become materially less valuable, except in accordance with these Covenants;
c. Not to construct any buildings or improvements on the Property, other than the buildings and improvements contemplated as part of the Property; or add to, remove, demolish or structurally alter any buildings or improvements now or hereinafter located on the Property;
d. To promptly repair, restore or rebuild any buildings or improvements on the Property that may be materially damaged or destroyed while subject to this Declaration;
e. To comply with all applicable laws affecting the Property and all other Program Requirements, and not to suffer or permit any violations thereof, nor of any material covenant, condition or restriction affecting the Property; f. To comply with the requirements of all covenants recorded against the Property provided same do not conflict with the terms of this Declaration; g. Not to initiate or acquiesce in any change in any zoning or other land use or legal classification or entitlement which affects any of the Property without City's and the Department’s prior written consent; and
h. Not to alter the use of all or any part of the Property without City’s prior written consent.
4.3 Supportive Services. Onsite Supportive Services will be provided by a services provider approved by City and Owner (“Services Provider”). i. Supportive services will include, but are not limited to: Case management – case managers will connect tenants to all available services and work with tenants to develop an individualized service plan (“ISP”). Case managers will meet with tenants at least once per month or more, as outlined in the tenant’s ISP. ii. Behavioral health services – tenants will be linked to behavioral health services through the lead service provider, Services Provider or another community behavioral health agency. Services provided will include individual therapy, group therapy, and psychiatric medicine support.
iii. Physical health services – tenants will be linked to care through their primary care physician or a community health clinic. Supportive Services staff will help tenants access off-site resources for physical health care.
iv. Assistance obtaining benefits and essential documentation – helping tenants access benefit programs including medical benefits, food assistance, financial aid, and disability income.
v. Life skills for daily living, rehabilitation, and independence – life skills training including money management, time management, positive self-care and behavior, relationship building, and social-emotional skills.
vi. Total Full-Time Equivalent (FTE) staff positions (half-time is 0.5). Case manager ratio is 15:1 for persons experiencing Chronic Homelessness and 25:1 for persons at-risk of homelessness. Supportive Services staffing will include:
* Vice President (.05 FTE, off-site)
* Director (.1 FTE, off-site)
* Program Manager (.2 FTE, on-site)
* Lead Service Coordinator (.5 FTE, on-site)
* Service Coordinator I (2 FTE, on-site)
vii. Supportive Services goal outcomes include:
1. Ninety percent (90%) of tenants retain Permanent Housing after one year.
2. Eight percent (8%) of tenants obtain and maintain eligible benefits.
Tenants increase their ability to live independently based on individualized goals in their ISP.
3. Tenants’ independence and self-sufficiency will be tracked by the percentage decrease in accessing Supportive Services after one year.
Program goal is a twenty-five percent (25%) decrease in services use after one year.
4. Tenants will be introduced to harm reduction practices. Program goal is increased use of harm reduction techniques in a tenant’s ISP.
4.4 Use of Funds. Owner shall use all funds received for constructing, rehabilitating, and operating the Development in accordance with the Program Requirements.
5. Restrictions on Sale, Encumbrance, and Other Acts.
a. Owner shall not, except with both the Department’s and City’s prior written consent, make any sale, encumbrance, hypothecation, assignment, refinancing, pledge, conveyance, or transfer (each a “Transfer”) of the Property, the Development, or of any portion thereof or interest therein, which consent may be conditioned or withheld in the Department’s and City’s sole and absolute discretion.
b. If both the Department and City determine, in their sole and absolute discretion, to grant their prior written consent for a Transfer of the Property, the Development, or of any portion thereof or interest therein, without limiting the generality of Section 5.a. above, such consent may impose terms and conditions, as necessary, to preserve or establish the fiscal integrity of the Property or the Development, or to ensure compliance with the Program Requirements.
6. Charges; Liens. Owner shall pay all real property taxes, assessments, liens and other charges, fines and impositions attributable to, levied against or encumbering the Property or the Development, by Owner making full and timely payment, when due, directly to the payee thereof. Owner shall promptly furnish to City all notices of such amounts due, and where Owner makes direct payments, Owner shall promptly furnish to City its receipts evidencing such payments. Owner shall fully and timely pay when due all encumbrances, charges, and liens on the Property or the Development, and shall make payments on notes or other obligations secured by an interest in the Property or in the Development, with interest in accordance with the terms thereof. Owner shall have the right to contest in good faith any claim or lien, or payment due thereunder, so long as Owner does so diligently and without prejudice to City.
7. Building Permits. Owner agrees not to apply for or accept any permits for the construction of improvements on the Property that are inconsistent with the lawful construction, rehabilitation, and/or operation of the Development in accordance with the Program Requirements and as approved by City.
8. Hazard and Liability Insurance and Condemnation; Indemnity.
8.1 Hazard and Liability Insurance and Condemnation.
a. Owner shall keep the Property and the Development insured against loss by fire and such other hazards, casualties, liabilities and contingencies, and in such amounts and for such periods as required by City. During any construction, insurance shall include standard policies including builder’s risk coverage. All insurance policies and renewals thereof shall be issued by a carrier and in a form acceptable to City. Owner shall provide proof of such insurance to City at all times upon request by City.
b. In the event of any fire or other casualty to the Property or the Development, or eminent domain proceedings resulting in condemnation of the Property or the Development or any part thereof, Owner shall have the right to rebuild the Property or the Development, and to use all available insurance or condemnation proceeds therefor, provided that, as determined by City in its sole and absolute discretion, (a) such proceeds are sufficient to rebuild the Property or the Development in a manner that ensures continued operation of the Development in accordance with the terms of this Declaration and Program Requirements; (b) all such proceeds will be held by City and distributed to pay for the reconstruction utilizing a disbursement control company which will require standard documentation for disbursement; and (c) no material breach or default then exists under any agreements between or among the Parties and the Department. If the casualty or condemnation affects only part of the Property or the Development and if total rebuilding is infeasible, then the insurance or condemnation proceeds may be used for partial rebuilding and/or partial repayment of the amounts funded to the Property by the Department provided that the requirements in subsections (b) and (c) shall apply in the event of rebuilding. City has the right but not the obligation to approve the plans and specifications for any major rebuilding, as well as the right but not the obligation to approve disbursements of insurance or condemnation proceeds for rebuilding under a construction escrow or similar arrangement. Any standard requirements of the City as a municipality shall apply such as approval of plans, building permits, etc.
8.2 Indemnity. Owner agrees for itself and its successors and assigns to indemnify, defend, and hold harmless City and the Department, and their respective appointees, officers, members, officials, employees, agents, volunteers, and representatives, from and against any loss, liability, claim, or
judgment relating in any manner to the Property and this Declaration excepting only any such loss, liability, claim, or judgment to the extent arising out of the intentional wrongdoing or gross negligence of City or the Department, or their respective appointees, officers, officials, employees, members, agents, volunteers, or representatives. Notwithstanding the foregoing, the City and HCD acknowledge and agree that any obligation of Owner to hold harmless, defend, or indemnify hereunder shall be payable by Owner only out of NonFederal Funds. For purposes of this Declaration, the term "Non-Federal Funds" means assets and funds that are not restricted by law or contract for use in government-sponsored programs (including without limitation any funds received or held by Owner with respect to Owner's public housing portfolio).
Without limiting the foregoing, there shall be no recourse against (i) any public housing project of Owner; (ii) any operating receipts of Owner (as the terms "public housing project" and "operating receipts" are defined in the Annual Contributions Contract between Owner and the U.S. Department of Housing and Urban Development, as amended (the "ACC"), or in any amendments thereto); or (iii) any public housing operating reserves of Owner reflected in Owner’s annual operating budget required under the ACC. Owner’s obligations hereunder are limited to eligible non-public housing assets (e.g., Section 8 administrative fee reserves or other assets not subject to any Declaration of Trust and not acquired or merged with assets acquired with public housing funds under the United States Housing Act of 1937, as amended).
9. Covenants Run with the Land. The Property is held and hereafter shall be held, conveyed, hypothecated, encumbered, leased, rented, used and occupied subject to these Covenants. The foregoing Covenants are intended to constitute both equitable servitudes and covenants running with the land. Owner expressly acknowledges and agrees that the Covenants are reasonable restraints on Owner’s right to own, use, maintain, and transfer the Property and any estate or interest therein and are not and shall not be construed to be an unreasonable restraint on alienation. Each and every contract, deed or other instrument hereafter executed covering or conveying or encumbering the Property, or any portion thereof, shall be held conclusively to have been executed, delivered, and accepted subject to such Covenants, regardless of whether such Covenants are set forth in such contract, deed, or other instrument.
10. Binding Effect. Any purchaser, encumbrancer, or lessee of the Property or of any portion thereof or interest therein, by the acceptance of the deed, lease, mortgage, deed of trust, agreement, or other instrument, whether from Owner or from any subsequent owner of the Property, or by the signing of a contract or agreement to purchase the Property, shall by the acceptance of such deed, lease, mortgage, deed of trust, agreement, or other instrument, or by the signing of such contract or declaration, be deemed to have consented to and accepted all Covenants and obligations set forth in this Declaration.
11. Default, Remedies. A default under this Declaration shall entitle City to any and all rights, remedies, or damages available at law, in equity or otherwise, including, but not limited to, those that are specified below. The Department shall be entitled to enforce the same such rights, remedies, or damages as a beneficiary under this Declaration. The Department’s or City’s failure to exercise any specific right or remedy shall not be construed as a waiver of that or any right or remedy. The Department and City may each enforce any provision of this Declaration jointly or independently. a. Specific Performance. The use, repair, and maintenance of the Property in support of the Development as contemplated by this Declaration is of a special and unique kind and character, so that a breach of any material provision of this Declaration by Owner would not have an adequate remedy at law. Therefore, this Declaration, and the Department’s and City’s rights and Owner’s obligations hereunder, may be enforced by an action for specific performance and such other equitable relief as is provided by the laws of the State of California.
b. Injunctive Relief. In pursuing specific performance of this Declaration, the Department and City shall be entitled to petition the court for injunctive relief to preserve their interests in the Property and their rights under this Declaration. Such injunctive relief may include a court order restraining actions that are inconsistent with the Covenants. c. Appointment of Receiver. In conjunction with any other remedy available at law or in equity, the Department and City may apply to a court of competent jurisdiction for the appointment of a receiver to take over and operate the Property or the Development in accordance with the Program Requirements and this Declaration. d. Right to Advance & Enter. The Department and City shall have the right to advance funds to pay any charges due to protect the Property including, but not limited to, real estate taxes or liens, and to enter the Property to perform any required maintenance and to recover the cost of same from Owner together with interest thereon as provided below.
e. Interest. Any amounts not paid when incurred (e.g., protective advances, damages, attorney fees) shall bear interest thereon at four percent (4%) above the Reference Rate as charged by Bank of America, a national banking association, as of the date such sum was advanced by or otherwise due to a party and continuing until it is repaid in full, but in no event, shall such rate of interest exceed the lesser of: (a) ten percent (10%) per annum, or (b) the maximum rate permitted by law.
All of the foregoing rights and remedies are in addition to and not in limitation of any and all other rights that City or the Department may have hereunder, at law, in equity or otherwise. All of the above rights and remedies shall be cumulative and non-exclusive to the maximum extent permitted by law.
12. Attorneys’ Fees. In the event of any litigation or other legal proceeding including, but not limited to, arbitration or mediation between the Parties arising from this Declaration, the prevailing party will be entitled to recover, in addition to any other relief awarded or granted, its reasonable costs and expenses (including reasonable attorneys’ fees) incurred in the proceeding.
13. Review and Inspection.
a. At any time during the Term of this Declaration and upon reasonable prior notice, the Department, City or either party’s designee may, but is not obligated to, enter and inspect the Property, and inspect all records pertaining to the construction, rehabilitation, operation, repair, and maintenance of the Property, subject to the rights of any tenants or occupants in the Property.
Upon request by the Department or City, Owner shall notify occupants of upcoming inspections in accordance with state law.
b. The Department or City may, but is not obligated to, request any other information that it deems necessary to confirm compliance with this Declaration. Owner shall provide such requested information to the extent reasonable under the circumstances within fourteen (14) calendar days of written request for the information.
c. The Department and City shall not, by the fact of making or not making any entries or inspections, or by taking or failing to take any action in response thereto: (i) incur or undertake, or be deemed to incur or undertake, any obligation, duty, or liability whatsoever, whether to Owner or to any other person or entity; (ii) be deemed as approving or disapproving any matter, action, incident, or condition related to the Property or the Development; or (iii) be deemed as approving or disapproving any matter related to the compliance of the Property or the Development with the Program Requirements, this Declaration, or other applicable laws. In no event or circumstance shall the Department’s or City’s exercise or non-exercise of its discretion under this paragraph constitute, or be deemed or interpreted as constituting, any termination, limitation, alteration, or waiver of any right, benefit, or remedy under or with respect to this Property or this Declaration.
14. City and Owner Representations.
As of the Effective Date:
14.1 Owner represents and warrants to the Department and City that: (a) Owner owns the Property and is able to support the operation of the Development in accordance with the Program Requirements and this Declaration; and (b) to Owner’s actual knowledge and belief, there are no agreements, contracts, covenants, conditions, or exclusions to which
Owner is a party, or by which it is bound, which would, if enforced, prohibit or restrict the use of the Property in accordance with the terms of this Declaration.
14.2 Owner and City respectively represent and warrant to each other and the Department that it has the full right and authority to enter into this Declaration.
14.3 Owner and City represent to each other and the Department that this Declaration constitutes a valid and legally binding obligation on Owner and it is enforceable in accordance with its terms.
15. Amendment, Modification. This Declaration shall not be amended, modified, waived or released without the prior and express written consent of an authorized representative of both City and the Department. Any such amendment, modification, waiver, or release must be executed by the Parties and the Department, be in recordable form, and be recorded in the Official Records of Monterey County upon full execution. The Department and City may withhold, condition, or delay their consent to any such modification, amendment, waiver or release in their sole and absolute discretion. Any amendment, modification, waiver, or release without the prior and express written consent of the Department and City shall be null and void.
16. Notice. Any notice, report, or other communication required or permitted to be given hereunder shall be made in writing and shall be given by personal delivery, certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the parties hereto. Any notice, report, or other communication required or permitted to be given hereunder shall also be given by electronic mail at the electronic mail addresses set forth below.
City: City of King
212 South Vanderhurst Ave
King City, CA 93930
Attn: City Manager
Copy to: City of King
212 South Vanderhurst Ave
King City, CA 93930
Attn: City Attorney
Department: Homekey Program
Department of Housing and
Community Development
P.O. Box 952052
Sacramento, CA 94252-2052
[email protected]
Owner/Declarant:: Housing Authority of the County of Monterey Attn: Zulieka Boykin
123 Rico Street
Salinas, CA 93907
Email: [email protected]
Fox Rothschild LLP
BNY Mellon Center
500 Grant Street, Suite 2500
Pittsburgh, PA 15219
Attn: Michael H. Syme, Esq.
Email: [email protected]
The notice shall be deemed given three (3) business days after the date of mailing, or, if personally delivered, when received.
17. Construction. This Declaration shall be construed according to its fair meaning as if prepared by all parties to this Declaration. Headings used in this Declaration are provided for convenience only and shall not be used to construe meaning or intent. When used in this Declaration, the terms “must” and “shall” denote a mandatory contractual obligation and are not permissive.
18. Qualification; Authority.
18.1 Owner. Each individual executing this Declaration on behalf of Owner represents, warrants and covenants to City and the Department that, to the best of his/her knowledge: (a) Owner is a validly formed joint powers authority organized under the laws of the State of California which has authority to execute and deliver this Declaration and to perform any obligations under its terms, (b) such person is duly authorized to execute and deliver this Declaration on behalf of Owner in accordance with authority granted under the organizational documents of such entity or by its governing body, and (c) such entity is bound under the terms of this Declaration.
18.2 City. Each individual executing this Declaration on behalf of City represents, warrants and covenants to Owner and the Department that, to the best of his/her knowledge: (a) City is a validly formed municipal corporation in the State of California which has authority to execute and deliver this Declaration and to perform its obligations under its terms; and (b) such person is duly authorized to execute and deliver this Declaration on behalf of City.
19. Severability. Every provision of this Declaration is intended to be severable. If any provision of this Declaration is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired.
20. Governing Law. This Declaration shall be governed by and interpreted under the laws of the State of California.
21. No Waiver. The failure of any party to enforce any term, covenant, or condition of this Declaration on the date it is to be performed shall not be construed as a waiver of that party’s right to enforce the same, or any other, term, covenant, or condition of this Declaration at any later date or as a waiver of any term, covenant, or condition of this Declaration. By its execution of this Declaration, City does not waive any breach or default by Owner under any other agreements to which City and Owner are parties.
22. Recordation of Declaration; Effective Date. Immediately upon execution of this Declaration, it shall be recorded in the Official Records of Monterey County. After recordation, City shall provide a conformed copy of the recorded Declaration to Owner and the Department. This Declaration shall be recorded, and shall remain, as a lien and encumbrance against the Property in first (1st) position senior to all deeds of trusts, mortgages, declarations, covenants, or liens of record on the Property.
23. HCD as Third-Party Beneficiary. Explicit references made to the Department or HCD throughout this Declaration shall not be construed or interpreted to in any way limit the rights and remedies of HCD, as a third-party beneficiary of this Declaration. HCD, as a thirdparty beneficiary of this Declaration, has the right, but not the obligation, to enforce any part of the Declaration.
24. Reporting Requirements.
a. Upon completion of the construction or rehabilitation of the Development, Owner shall submit a Homekey Program and Expenditure Report, as specified in Section 601 of the NOFA (the “Annual Report”), on January 31 of the calendar year following such completion, and on each January 31 thereafter for the next five (5) consecutive years.
The Annual Report shall be in such form and contain such information as required by the Department in its sole and absolute discretion. The report shall contain, at minimum, all of the following:
1. The amount of funds expended for the Development;
2. Operating expenditures;
3. The location of any properties for which the funds are used;
4. The number and bed size of habitable housing units produced, or planned to be produced, using the funds;
5. The number and demographics of individuals housed, or likely to be housed, using the funds;
6. The racial and ethnic composition of the tenants and participants assisted;
7. The number of units, and the location of those units, for which operating subsidies have been, or are planned to be, capitalized using the funds. Detail of Supportive Services offered to tenants and participants;
8. The number and demographics of tenants and participants who moved out of the Development and whether the move was voluntary or involuntary;
9. The data shall detail the reason for the move and include returns to homelessness and engagement with voluntary moving on strategies;
10.Any lessons learned from the use of the funds;
11.The proposed development vision that identifies the financial and regulatory mechanisms to be used to maintain the long-term affordability of the Development;
12.The progress and status in securing any required entitlements, permits, environmental clearances; and,
13.The proposed timeline for the completion of the Development. b. Upon the Department’s request and as specified, Owner shall provide supplemental progress reports in connection with the development plan and any updates to the timeline for completion of the Development. c. Owner shall submit to the Department such periodic reports, updates, and information as deemed necessary by the Department to monitor compliance and perform Program evaluation. Any requested data or information shall be submitted in electronic format on a form provided by the Department. d. City shall use reasonable efforts, documented in writing, to ensure that Owner complies with the foregoing requirements.
25. Homeless Management Information System and Homeless Data Integration System. Owner shall support continuum of care participation in the statewide Homeless Data Integration System and disclose relevant data to the local Homeless Management Information System and other comparable data collection systems. All data shall be collected and disclosed in accordance with all federal and state privacy law. City shall use reasonable efforts, documented in writing, to ensure that Owner complies with the foregoing requirements.
26. Counterparts. This Declaration may be signed by the Parties and signatories hereto in identical counterparts with the same effect as if the signatures to each counterpart were upon a single instrument. All counterparts shall be deemed an original of this Declaration.
[PAGE INTENTIONALLY LEFT BLANK]
[SIGNATURES ON FOLLOWING PAGE]
IN WITNESS WHEREOF, Owner and City have caused this Declaration to be signed by their duly authorized representatives, as of the day and year first written above.
CITY: OWNER/DECLARANT:
City of King, a municipal corporation
By: ________________________
Steven Adams, City Manager
ATTEST:
_________________________
Erica Sonne, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
By: _____________________
Roy Santos, City Attorney
Housing Authority of the County of Monterey,
a California joint powers authority
By: _________________________
Its: _________________________
ALL SIGNATURES MUST BE NOTARIZED
EXHIBIT “A”
LEGAL DESCRIPTION OF THE PROPERTY
That certain real property in City of King, County of Monterey, State of California legally described as follows:
APN/Parcel ID(s): 026-401-020
STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2025 before me, ___________________________, a 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.
_________________________________________
Notary Public
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.
STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2025 before me, ___________________________, a 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.
_________________________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2025 before me, ___________________________, a 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.
_________________________________________
Notary Public
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.
LAD022125v1
169204448.5
169204448.6
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of King
212 South Vanderhurst Avenue
King City, CA 93930
Attn: Steven Adams, City Manager
_________
APN(s) 026-401-020 SPACE ABOVE FOR RECORDER’S USE ONLY
Exempt from recording fees under Govt Code 6103 & 27383
DECLARATION OF RESTRICTIVE COVENANTS
This Declaration of Restrictive Covenants (“Declaration”), dated _________ ___, 2025 (“Declaration Date”) by the HOUSING AUTHORITY OF THE COUNTY OF MONTEREY, a California joint powers authority and its successors, assigns, and transferees (“Owner” or “Declarant”), is hereby made in favor of CITY OF KING, a municipal corporation (“City”). The Owner and City are jointly referred to herein as “Parties.” SANTA CRUZMONTEREY-MERCED-SAN BENITO-MARIPOSA MANAGED MEDICAL CARE COMMISSION, a public entity of the State of California, operating as Central California Alliance for Health (“Alliance”) is hereby made a third-party beneficiary of this Declaration with the direct right, but not the duty, to enforce this Declaration, in the exercise of its sole and absolute discretion, against the Parties in the event of the Parties’ breach, default, or other non-compliance under this Declaration.
RECITALS
A. Capitalized terms used but not defined in these recitals are as defined in Section 2 of this Declaration.
B. The Alliance established the Alliance Housing Fund to fund projects in the areas of permanent housing, recuperative care, and short-term post-hospitalization housing that address homelessness and housing insecurity as social determinants of health (“Housing Fund Purpose”).
C. Owner has acquired title to and owns that certain real property located at 1130 Broadway Street, in City of King, County of Monterey, State of California (Assessor Parcel 11(C) Exhibit 3
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Number 026-401-020-000), as legally described on Exhibit A attached hereto and incorporated herein by reference ("Real Property"). As of the date of recordation of this Declaration, the Real Property is the site of a forty-five (45) unit hotel, which facility shall be rehabilitated to provide forty-four (44) units of Permanent Housing for the Target Population and one (1) manager’s unit (collectively, the “Development”). The Real Property and the Development are referred to in this Declaration as the "Property." D. Owner will own and operate the Property as Permanent Housing in accordance with the Program Requirements, as defined herein.
E. This Declaration is being recorded pursuant to Program Requirements that City cause the recordation of a fifteen (15) year use restriction against the fee title to the Property.
NOW, THEREFORE, in consideration of the foregoing premises, the Alliance’s contribution of additional funds towards the acquisition and construction of the Property and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Declarant hereby covenants, agrees and declares that the Property shall be owned, held, leased, encumbered, used, maintained, and transferred pursuant to the following restrictive covenants, conditions, restrictions, and limitations (“Covenants”). Such Covenants shall be binding upon all of Declarant’s successors, assigns and transferees to or of the Property, and upon all lessees, tenants, lenders, contractors, agents, and persons claiming an interest in the Property, or claiming an interest by or through any of the foregoing.
COVENANTS
1. Recitals. The recitals set forth above are hereby incorporated in full into and form a part of this Declaration.
2. Definitions. When used in this Declaration, the following terms have the following meanings:
(a) “30% AMI Household" means a household whose Adjusted Income does not exceed 30% of Area Median Income.
(b) "Actual Household Size" means the actual number of persons in the applicable household.
(c) "Adjusted Income" means with respect to the household occupying a Unit, the income from all persons in the household including nonrelated individuals, calculated using the methods to calculate income in accordance with the Homekey Program.
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(d) "Area Median Income" or “AMI” means the median gross yearly income, adjusted for Actual Household Size as specified herein, in City of King, California as published from time to time by HUD. In the event that such income determinations are no longer published, or are not updated for a period of at least eighteen (18) months, City shall provide other income determinations that are reasonably similar with respect to methods of calculation to those previously published by HUD. (e) "At Risk of Homelessness" means an individual or household that is at risk of homelessness, as defined in Part 578.3 of Title 24 of the Code of Federal Regulations. A household that is At Risk of Homelessness must qualify as a 30% AMI Household in order to be income-eligible for a Unit.
(f) “Chronically Homeless” means an individual or household that is chronically homeless as defined in accordance with Part 578.3 of Title 24 of the Code of Federal Regulations.
(g) “Effective Date” means the date this Declaration is recorded in the Official Records of Monterey County.
(h) “Homeless” means individuals and families who are experiencing homelessness, as defined in Part 578.3 of Title 24 of the Code of Federal Regulations. (i) "HUD" means the United States Department of Housing and Urban Development. (j) "Permanent Housing" means housing, dwellings, or other living accommodations where the landlord does not limit the tenant’s length of stay or restrict the tenant’s movements and where the tenant has a lease and is subject to the rights and responsibilities of tenancy pursuant to California Civil Code section 1940. (k) “Program Requirements” means all of the following:
i. the NOFA;
ii. the Homekey Program;
iii. the Housing Fund Purpose;
iv. the Uniform Multifamily Regulations (Cal. Code Regs., tit. 25, § 8300 et seq.), effective November 15, 2017, and as subsequently amended, except to the extent that any UMR provision would be inconsistent with the provisions of the NOFA (the “UMRs”);
v. the American Rescue Plan Act of 2021 (Pub.L. No. 117-2) and all related
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federal guidance (“ARPA”); and
vi. all applicable local, state, and federal law.
(l) “Target Population” means individuals and families who are Homeless, Chronically Homeless, or At Risk of Homelessness and with incomes that meet then-current Medi-Cal eligibility income requirements.
(m) “Supportive Services” means social, health, educational, income support, employment, and housing stability services and benefits; coordination of community building and educational activities; individualized needs assessment and case management; and individualized assistance with obtaining services and benefits. (n) "Term" means the 15-year term of this Declaration, which commences on either (i) the Effective Date of this Declaration, or (ii) the date of issuance of the certificate of occupancy, whichever occurs later in time.
(o) "Unit" means one (1) or all of forty-four (44) units in the Property. The manager unit at the Property is not considered a Unit.
3. Affordability and Occupancy Covenants.
3.1 Occupancy Requirements. For a period of not less than fifteen (15) years from the date of completion of the Project, Owner must restrict occupancy for at least 80% of the Units to the Target Population. The Medi-Cal income limits at the time this Restrictive Covenant is recorded are determined as follows:
(a) 0% – 138% of Federal Poverty Limit (“FPL”) qualifies for Medi-Cal (ex., for a family of four in 2024, 138% FPL is $43,056.00)
(b) 138% - 213% of FPL may qualify for modified adjusted gross income (MAGI) Medi-Cal during pregnancy
(c) Children (under 19 years of age) in a family with a household income of 266% or less qualify for Medi-Cal.
If a Unit is available but there is no person qualifying and ready to occupy under one of the foregoing specific groups, Owner may allow a member of one of the other Target Population groups to occupy that Unit. If a Unit is available but there is no person qualifying and ready to occupy the Unit under one of the foregoing specific groups or one of the other Target Population groups, then beginning sixty (60) days after such unit becomes available, Owner
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may allow an individual or household whose Adjusted Income does not exceed 50% of Area Median Income to occupy the Unit, so long as such individual or household meets the definition of Homeless or Chronically Homeless.
3.2 Accessibility. Owner shall comply with all applicable state and federal building codes and standards, as well as with all design and accessibility laws. Without limiting the generality of the foregoing, Owner shall further ensure that the Development is in compliance with the following housing and building accessibility requirements:
(a) California Building Code Chapters 11A and 11B;
(b) the Fair Housing Act (42 U.S.C. § 3601 et seq.) and its implementing regulations at 24 Code of Federal Regulations part 100, and the ANSI A117.11986 design and construction standard incorporated by reference at 24 Code of Federal Regulations part 100.201a;
(c) the Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.) and its implementing regulations at 28 Code of Federal Regulations part 35 (Title II) and part 36 (Title III);
(d) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794) and its implementing regulations at 24 Code of Federal Regulations part 8; and (e) the Uniform Federal Accessibility Standards (UFAS) at 24 Code of Federal Regulations part 40, or, in the alternative, the 2010 ADA Standards for Accessible Design.
3.3. Tenant Selection. Referrals to Units shall be made through the local Coordinated Entry System (“CES”), or another comparable prioritization system based on greatest need shall be used. All referral protocols for Units shall be developed in collaboration with the local Continuum of Care and implemented consistent with the Program Requirements.
3.4 Rent Standards. Rent limits for initial occupancy, and for each subsequent occupancy, of a Unit shall not exceed thirty percent (30%) of that Unit’s designated incomeeligibility level.
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4. Management Responsibility; Maintenance and Repair; Construction.
4.1 Management Responsibility. Owner is responsible for all management functions with respect to the Property. City shall have no direct responsibility over management of the Property other than its enforcement of this Declaration. Owner shall retain a professional property management company, approved by City in its reasonable discretion, to perform its management duties hereunder. Any change of the professional property management company shall be approved by City in its reasonable discretion.
Owner shall provide the contact information for the property management company. Owner shall cause the Property to be managed by an experienced management agent with an ability to operate residential facilities like the Property in a manner that will provide decent, safe, and sanitary housing. City hereby approves of Step Up on Second Street, Inc., a California nonprofit public benefit corporation, as the initial management agent for the Property. If City determines that the professional management company is not complying with the requirements of this Declaration with respect to the Property, City may demand that Owner retain a different professional management company.
4.2 Maintenance and Repair. Owner agrees at all times during the Term:
(a) To keep the Property in decent, safe, sanitary, tenantable condition and repair, and to permit no material waste thereof;
(b) Not to commit or suffer to be done or exist on or about the Property any condition causing the Property to become materially less valuable, except in accordance with these Covenants;
(c) Not to construct any buildings or improvements on the Property, other than the buildings and improvements contemplated as part of the Property; or add to, remove, demolish or structurally alter any buildings or improvements now or hereinafter located on the Property;
(d) To promptly repair, restore or rebuild any buildings or improvements on the Property that may be materially damaged or destroyed while subject to this Declaration;
(e) To comply with all applicable laws affecting the Property and all other Program Requirements, and not to suffer or permit any violations thereof, nor of any material covenant, condition or restriction affecting the Property; (f) To comply with the requirements of all covenants recorded against the Property provided same do not conflict with the terms of this Declaration;
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(g) Not to initiate or acquiesce in any change in any zoning or other land use or legal classification or entitlement which affects any of the Property without City's and the Alliance’s prior written consent; and
(h) Not to alter the use of all or any part of the Property without City’s prior written consent.
4.3 Supportive Services. Onsite Supportive Services will be provided by a services provider approved by City and Owner (“Services Provider”). (a) Supportive services will include, but are not limited to: Case management – case managers will connect tenants to all available services and work with tenants to develop an individualized service plan (“ISP”). Case managers will meet with tenants at least once per month or more, as outlined in the tenant’s ISP. (b) Behavioral health services – tenants will be linked to behavioral health services through the lead service provider, Services Provider or another community behavioral health agency. Services provided will include individual therapy, group therapy, and psychiatric medicine support.
(c) Physical health services – tenants will be linked to care through their primary care physician or a community health clinic. Supportive Services staff will help tenants access off-site resources for physical health care. (d) Assistance obtaining benefits and essential documentation – helping tenants access benefit programs including medical benefits, food assistance, financial aid, and disability income.
(e) Life skills for daily living, rehabilitation, and independence – life skills training including money management, time management, positive self-care and behavior, relationship building, and social-emotional skills. (f) Total Full-Time Equivalent (FTE) staff positions (half-time is 0.5). Case manager ratio is 15:1 for persons experiencing Chronic Homelessness and 25:1 for persons at-risk of homelessness. Supportive Services staffing will include:
* Vice President (.05 FTE, off-site)
* Director (.1 FTE, off-site)
* Program Manager (.2 FTE, on-site)
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* Lead Service Coordinator (.5 FTE, on-site)
* Service Coordinator I (2 FTE, on-site)
(g) Supportive Services goal outcomes include:
i. Ninety percent (90%) of tenants retain Permanent Housing after one year. ii. Eight percent (8%) of tenants obtain and maintain eligible benefits. Tenants increase their ability to live independently based on individualized goals in their ISP.
iii. Tenants’ independence and self-sufficiency will be tracked by the percentage decrease in accessing Supportive Services after one year.
Program goal is a twenty-five percent (25%) decrease in services use after one year.
iv. Tenants will be introduced to harm reduction practices. Program goal is increased use of harm reduction techniques in a tenant’s ISP.
4.4 Use of Funds. Owner shall use all funds received for constructing, rehabilitating, and operating the Development in accordance with the Program Requirements.
5. Restrictions on Sale, Encumbrance, and Other Acts.
5.1 Owner shall not, except with both the Alliance’s and City’s prior written consent, make any sale, encumbrance, hypothecation, assignment, refinancing, pledge, conveyance, or transfer (each a “Transfer”) of the Property, the Development, or of any portion thereof or interest therein, which consent may be conditioned or withheld in the Alliance’s and City’s sole and absolute discretion.
5.2 If both the Alliance and City determine, in their sole and absolute discretion, to grant their prior written consent for a Transfer of the Property, the Development, or of any portion thereof or interest therein, without limiting the generality of Section 5.1 above, such consent may impose terms and conditions, as necessary, to preserve or establish the fiscal integrity of the Property or the Development, or to ensure compliance with the Program Requirements.
6. Charges; Liens. Owner shall pay all real property taxes, assessments, liens and other charges, fines and impositions attributable to, levied against or encumbering the Property or the Development, by Owner making full and timely payment, when due, directly to the payee thereof. Owner shall promptly furnish to City all notices of such amounts due,
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and where Owner makes direct payments, Owner shall promptly furnish to City its receipts evidencing such payments. Owner shall fully and timely pay when due all encumbrances, charges, and liens on the Property or the Development, and shall make payments on notes or other obligations secured by an interest in the Property or in the Development, with interest in accordance with the terms thereof. Owner shall have the right to contest in good faith any claim or lien, or payment due thereunder, so long as Owner does so diligently and without prejudice to City.
7. Building Permits. Owner agrees not to apply for or accept any permits for the construction of improvements on the Property that are inconsistent with the lawful construction, rehabilitation, and/or operation of the Development in accordance with the Program Requirements and as approved by City.
8. Hazard and Liability Insurance and Condemnation; Indemnity.
8.1 Hazard and Liability Insurance and Condemnation.
(a) Owner shall keep the Property and the Development insured against loss by fire and such other hazards, casualties, liabilities and contingencies, and in such amounts and for such periods as reasonably required by City. During any construction, insurance shall include standard policies including builder’s risk coverage. All insurance policies and renewals thereof shall be issued by a carrier and in a form reasonably acceptable to City. Owner shall provide proof of such insurance to City at all times upon request by City. (b) In the event of any fire or other casualty to the Property or the Development, or eminent domain proceedings resulting in condemnation of the Property or the Development or any part thereof, Owner shall have the right to rebuild the Property or the Development, and to use all available insurance or condemnation proceeds therefor, provided that, as determined by City in its sole and absolute discretion, (i) such proceeds are sufficient to rebuild the Property or the Development in a manner that ensures continued operation of the Development in accordance with the terms of this Declaration and Program Requirements; (ii) all such proceeds will be held by City and distributed to pay for the reconstruction utilizing a disbursement control company which will require standard documentation for disbursement; and (iii) no material breach or default then exists under any agreements between or among the Parties and the Alliance. If the casualty or condemnation affects only part of the Property or the Development and if total rebuilding is infeasible, then the insurance or condemnation proceeds may be used for partial rebuilding and/or partial repayment of the amounts funded to the Property by the Alliance provided that
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the requirements in subsections (ii) and (iii) shall apply in the event of rebuilding.
City has the right but not the obligation to approve the plans and specifications for any major rebuilding, as well as the right but not the obligation to approve disbursements of insurance or condemnation proceeds for rebuilding under a construction escrow or similar arrangement. Any standard requirements of the City as a municipality shall apply such as approval of plans, building permits, etc.
8.2 Indemnity. Owner agrees for itself and its successors and assigns to indemnify, defend, and hold harmless City and the Alliance, and their respective appointees, officers, members, officials, employees, agents, volunteers, and representatives, from and against any loss, liability, claim, or judgment relating in any manner to the Property and this Declaration excepting only any such loss, liability, claim, or judgment to the extent arising out of the intentional wrongdoing or gross negligence of City or the Alliance, or their respective appointees, officers, officials, employees, members, agents, volunteers, or representatives. Notwithstanding the foregoing, the City and the Alliance acknowledge and agree that any obligation of Owner to hold harmless, defend, or indemnify hereunder shall be payable by Owner only out of Non-Federal Funds. For purposes of this Declaration, the term "Non-Federal Funds" means assets and funds that are not restricted by law or contract for use in government-sponsored programs (including without limitation any funds received or held by Owner with respect to Owner's public housing portfolio). Without limiting the foregoing, there shall be no recourse against (i) any public housing project of Owner; (ii) any operating receipts of Owner (as the terms "public housing project" and "operating receipts" are defined in the Annual Contributions Contract between Owner and the U.S. Department of Housing and Urban Development, as amended (the "ACC"), or in any amendments thereto); or (iii) any public housing operating reserves of Owner reflected in Owner’s annual operating budget required under the ACC. Owner’s obligations hereunder are limited to eligible non-public housing assets (e.g., Section 8 administrative fee reserves or other assets not subject to any Declaration of Trust and not acquired or merged with assets acquired with public housing funds under the United States Housing Act of 1937, as amended).
9. Covenants Run with the Land. The Property is held and hereafter shall be held, conveyed, hypothecated, encumbered, leased, rented, used and occupied subject to these Covenants. The foregoing Covenants are intended to constitute both equitable servitudes and covenants running with the land. Owner expressly acknowledges and agrees that the Covenants are reasonable restraints on Owner’s right to own, use, maintain, and transfer the Property and any estate or interest therein and are not and shall not be construed to be an unreasonable restraint on alienation. Each and every contract, deed or other instrument hereafter executed covering or conveying or encumbering the Property, or any portion thereof, shall be held conclusively to have been executed, delivered, and accepted subject
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to such Covenants, regardless of whether such Covenants are set forth in such contract, deed, or other instrument.
10. Binding Effect. Any purchaser, encumbrancer, or lessee of the Property or of any portion thereof or interest therein, by the acceptance of the deed, lease, mortgage, deed of trust, agreement, or other instrument, whether from Owner or from any subsequent owner of the Property, or by the signing of a contract or agreement to purchase the Property, shall by the acceptance of such deed, lease, mortgage, deed of trust, agreement, or other instrument, or by the signing of such contract or declaration, be deemed to have consented to and accepted all Covenants and obligations set forth in this Declaration.
11. Default, Remedies. A default under this Declaration shall entitle City to any and all rights, remedies, or damages available at law, in equity or otherwise, including, but not limited to, those that are specified below. The Alliance shall be entitled to enforce the same such rights, remedies, or damages as a beneficiary under this Declaration. The Alliance’s or City’s failure to exercise any specific right or remedy shall not be construed as a waiver of that or any right or remedy. The Alliance and City may each enforce any provision of this Declaration jointly or independently.
11.1 Specific Performance. The use, repair, and maintenance of the Property in support of the Development as contemplated by this Declaration is of a special and unique kind and character, so that a breach of any material provision of this Declaration by Owner would not have an adequate remedy at law. Therefore, this Declaration, and the Alliance’s and City’s rights and Owner’s obligations hereunder, may be enforced by an action for specific performance and such other equitable relief as is provided by the laws of the State of California.
11.2 Injunctive Relief. In pursuing specific performance of this Declaration, the Alliance and City shall be entitled to petition the court for injunctive relief to preserve their interests in the Property and their rights under this Declaration. Such injunctive relief may include a court order restraining actions that are inconsistent with the Covenants.
11.3 Appointment of Receiver. In conjunction with any other remedy available at law or in equity, the Alliance and City may apply to a court of competent jurisdiction for the appointment of a receiver to take over and operate the Property or the Development in accordance with the Program Requirements and this Declaration.
11.4 Right to Advance & Enter. The Alliance and City shall have the right to advance funds to pay any charges due to protect the Property including, but not limited to, real estate taxes or liens, and to enter the Property to perform any required maintenance
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and to recover the cost of same from Owner together with interest thereon as provided below.
11.5 Interest. Any amounts not paid when due (e.g., damages, attorney fees) shall bear interest thereon at four percent (4%) above the Reference Rate as charged by Bank of America, a national banking association, as of the date such sum was advanced by or otherwise due to a party and continuing until it is repaid in full, but in no event, shall such rate of interest exceed the lesser of: (i) ten percent (10%) per annum, or (ii) the maximum rate permitted by law.
All of the foregoing rights and remedies are in addition to and not in limitation of any and all other rights that City or the Alliance may have hereunder, at law, in equity or otherwise. All of the above rights and remedies shall be cumulative and non-exclusive to the maximum extent permitted by law.
12. Attorneys’ Fees. In the event of any litigation or other legal proceeding including, but not limited to, arbitration or mediation between the parties arising from this Declaration, the prevailing party will be entitled to recover, in addition to any other relief awarded or granted, its reasonable costs and expenses (including reasonable attorneys’ fees) incurred in the proceeding.
13. Review and Inspection.
13.1 At any time during the term of this Declaration and upon reasonable prior notice, the Alliance, City or either party’s designee may, but is not obligated to, enter and inspect the Property, and inspect all records pertaining to the construction, rehabilitation, operation, repair, and maintenance of the Property, subject to the rights of any tenants or occupants in the Property. Upon request by the Alliance or City, Owner shall notify occupants of upcoming inspections in accordance with state law.
13.2 The Alliance or City may, but is not obligated to, request any other information that it deems necessary to confirm compliance with this Declaration. Owner shall provide such requested information to the extent reasonable under the circumstances within fourteen (14) calendar days of written request for the information.
13.3 The Alliance and City shall not, by the fact of making or not making any entries or inspections, or by taking or failing to take any action in response thereto: (i) incur or undertake, or be deemed to incur or undertake, any obligation, duty, or liability whatsoever, whether to Owner or to any other person or entity; (ii) be deemed as approving or disapproving any matter, action, incident, or condition related to the Property or the Development; or (iii) be deemed as approving or disapproving any matter related to
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the compliance of the Property or the Development with the Program Requirements, this Declaration, or other applicable laws. In no event or circumstance shall the Alliance’s or City’s exercise or non-exercise of its discretion under this paragraph constitute, or be deemed or interpreted as constituting, any termination, limitation, alteration, or waiver of any right, benefit, or remedy under or with respect to this Property or this Declaration.
14. City and Owner Representations. As of the Effective Date:
14.1 Owner represents and warrants to the Alliance and City that: (i) Owner owns the Property and is able to support the operation of the Development in accordance with the Program Requirements and this Declaration; and (ii) to Owner’s actual knowledge and belief, there are no agreements, contracts, covenants, conditions, or exclusions to which Owner is a party, or by which it is bound, which would, if enforced, prohibit or restrict the use of the Property in accordance with the terms of this Declaration.
14.2 Owner and City respectively represent and warrant to each other and the Alliance that it has the full right and authority to enter into this Declaration.
14.3 Owner and City represent to each other and the Alliance that this Declaration constitutes a valid and legally binding obligation on Owner and it is enforceable in accordance with its terms.
15. Amendment, Modification. This Declaration shall not be amended, modified, waived or released without the prior and express written consent of an authorized representative of both City and the Alliance. Any such amendment, modification, waiver, or release must be executed by the Parties and the Alliance, be in recordable form and recorded in the Official Records of Monterey County upon full execution. The Alliance and City may withhold, condition, or delay their consent to any such modification, amendment, waiver or release in their sole and absolute discretion. Any amendment, modification, waiver, or release without the prior and express written consent of the Alliance and City shall be null and void.
16. Notice. Any notice, report, or other communication required or permitted to be given hereunder shall be made in writing and shall be given by personal delivery, certified or registered mail, postage prepaid, return receipt requested, at the addresses specified below, or at such other addresses as may be specified in writing by the parties hereto. Any notice, report, or other communication required or permitted to be given hereunder shall also be given by electronic mail at the electronic mail addresses set forth below.
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City: City of King City
212 South Vanderhurst Ave
King City, CA 93930
Attn: City Manager
Copy to: City of King City
212 South Vanderhurst Ave
King City, CA 93930
Attn: City Attorney
Alliance: Central California Alliance for Health
1600 Green Hills Road, Suite 101
Scotts Valley, CA 95066-4691
Attn: Legal Services and Program Development
Owner/Declarant:
Copy to:
Housing Authority of the County of Monterey
Attn: Zulieka Boykin
123 Rico Street
Salinas, CA 93907
Email: [email protected]
Fox Rothschild LLP
BNY Mellon Center
500 Grant Street, Suite 2500
Pittsburgh, PA 15219
Attn: Michael H. Syme, Esq.
Email: [email protected]
The notice shall be deemed given three (3) business days after the date of mailing, or, if personally delivered, when received.
17. Construction. This Declaration shall be construed according to its fair meaning as if prepared by all parties to this Declaration. Headings used in this Declaration are provided for convenience only and shall not be used to construe meaning or intent. When used in this Declaration, the terms “must” and “shall” denote a mandatory contractual obligation and are not permissive.
18. Qualification; Authority.
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18.1 Owner. Each individual executing this Declaration on behalf of Owner represents, warrants and covenants to City and the Alliance that, to the best of his/her knowledge: (i) Owner is a validly formed joint powers authority organized under the laws of the State of California which has authority to execute and deliver this Declaration and to perform any obligations under its terms, (ii) such person is duly authorized to execute and deliver this Declaration on behalf of Owner in accordance with authority granted under the organizational documents of such entity or by its governing body, and (iii) such entity is bound under the terms of this Declaration.
18.2 City. Each individual executing this Declaration on behalf of City represents, warrants and covenants to Owner and the Alliance that, to the best of his/her knowledge: (i) City is a validly formed municipal corporation in the State of California which has authority to execute and deliver this Declaration and to perform its obligations under its terms; (ii) such person is duly authorized to execute and deliver this Declaration on behalf of City in accordance with authority granted under the City resolution which approved this Declaration; and (iii) City is bound under the terms of this Declaration.
19. Severability. Every provision of this Declaration is intended to be severable. If any provision of this Declaration is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired.
20. Governing Law. This Declaration shall be governed by and interpreted under the laws of the State of California.
21. No Waiver. The failure of any party to enforce any term, covenant, or condition of this Declaration on the date it is to be performed shall not be construed as a waiver of that party’s right to enforce the same, or any other, term, covenant, or condition of this Declaration at any later date or as a waiver of any term, covenant, or condition of this Declaration. By its execution of this Declaration, City does not waive any breach or default by Owner under any other agreements to which City and Owner are parties.
22. Recordation of Declaration; Effective Date. Immediately upon execution of this Declaration, it shall be recorded in the Official Records of Monterey County. After recordation, City shall provide a conformed copy of the recorded Declaration to Owner and the Alliance. This Declaration shall be recorded, and shall remain, as a lien and encumbrance against the Property in second (2nd) position senior to all deeds of trusts, mortgages, declarations, covenants, or liens of record on the Property except for the Declaration of Restrictive Covenants concurrently executed between Owner and City, to which the Department of Housing and Community Development is a third-party beneficiary.
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23. Alliance as Third-Party Beneficiary. Explicit references made to the Alliance throughout this Declaration shall not be construed or interpreted to in any way limit the rights and remedies of the Alliance, as a third-party beneficiary of this Declaration. The Alliance, as a third-party beneficiary of this Declaration, has the right, but not the obligation, to enforce any part of the Declaration.
24. Reporting Requirements.
24.1 Commencing with the Effective Date and annually thereafter for not less than ten (10) years following the full occupancy of the Development, Owner shall submit a signed written attestation (the “Annual Report”) to the Alliance. The Annual Report may be in any format and shall contain, at minimum, all of the following:
(a) An attestation by Owner that Owner has continued to restrict occupancy for at least 80% of the Units to the Target Population in accordance with the Affordability and Occupancy Covenants set forth in Section 3.
(b) A summary of Owner’s current prioritization system for tenant selection. If Owner has changed its prioritization process since the previous Annual Report for any reason, Owner shall additionally provide a narrative description of how such prioritization process complies with the Occupancy Requirements described in Section 3.1.
24.2 Upon the Alliance’s request and as specified, Owner shall provide supplemental progress reports in connection with the development plan and any updates to the timeline for completion of the Development.
24.3 Owner shall submit to the Alliance such periodic reports, updates, and information as deemed necessary by the Alliance to monitor compliance and perform Program evaluation. Any requested data or information shall be submitted in electronic format on a form provided by the Alliance.
24.4 City shall use reasonable efforts, documented in writing, to ensure that Owner complies with the foregoing requirements.
25. Homeless Management Information System and Homeless Data Integration System. Owner shall support continuum of care participation in the statewide Homeless Data Integration System and disclose relevant data to the local Homeless Management Information System and other comparable data collection systems. All data shall be collected and disclosed in accordance with all federal and state privacy law. City shall use
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reasonable efforts, documented in writing, to ensure that Owner complies with the foregoing requirements.
26. Counterparts. This Declaration may be signed by the Parties and signatories hereto in identical counterparts with the same effect as if the signatures to each counterpart were upon a single instrument. All counterparts shall be deemed an original of this Declaration. [SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, Owner and City have caused this Declaration to be signed by their duly authorized representatives, as of the day and year first written above.
CITY: OWNER/DECLARANT:
City of King, a municipal corporation
By: ____________________
Steven Adams, City Manager
ATTEST:
_________________________
Erica Sonne, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
By: _____________________
Roy Santos, City Attorney
Housing Authority of the County of Monterey,
a California joint powers authority
By: _________________________
Its: _______________________
ALL SIGNATURES MUST BE NOTARIZED
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EXHIBIT “A”
LEGAL DESCRIPTION OF THE PROPERTY
That certain real property in City of King, County of Monterey, State of California legally described as follows:
APN/Parcel ID(s): 026-401-020
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STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2025 before me, ___________________________, a 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.
_________________________________________
Notary Public
SEAL
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
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STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2025 before me, ___________________________, a 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.
_________________________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
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STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2025 before me, ___________________________, a 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.
_________________________________________
Notary Public
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.