SPECIAL JOINT CITY COUNCIL/HOUSING AUTHORITY
SPECIAL JOINT MEETING AGENDA
Tuesday, May 12, 2026 at
5:00 p.m.
AMENDED
SOUTH GATE COUNCIL CHAMBERS
8650 CALIFORNIA AVE
SOUTH GATE, CA 90280
VIEW MEETING LIVE ONLINE AT:
HTTPS://WWW.YOUTUBE.COM/@SOUTHGATECA90280
Call to Order/Roll Call
CALL TO ORDER:
Joshua Barron, Mayor/Chairperson
ROLL CALL:
Yodit Glaze, City Clerk/Recording Secretary
Council Members/Agency Members
MAYOR/CHAIRPERSON CITY CLERK/RECORDING SECRETARY Joshua Barron Yodit Glaze
VICE MAYOR/CHAIRPERSON CITY ATTORNEY/AUTHORITY COUNSEL Al Rios Raul F. Salinas
COUNCIL MEMBERS/AGENCY MEMBERS CITY/MANAGER/EXECUTIVE DIRECTOR Gil Hurtado Robert Houston Maria Davila
Maria Del Pilar Avalos
DIRECTOR OF COMMUNITY DEVELOPMENT/
SECRETARY
Gabriel Perez
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Meeting Schedule
The regular meetings of the Authority Members are held on the second and fourth Tuesday of each month, closed session business will usually commence at 5:30 p.m., when scheduled, and general business session will commence at 6:30 p.m.
Brown Act
Agendas are drafted to accurately state what the legislative body is being asked to consider. The legislative body can take action on "all items" listed on the agenda and be in compliance with the open meeting laws. Under the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The governing body may direct staff to investigate and/or schedule certain matters for consideration at a future meeting.
City's Vision Statement
We envision a thriving, safe and inclusive community where everyone has the opportunity to access exceptional services, education and support to be resilient and live full, vibrant lives.
Public Communications
Public Comments on agenda items are limited to three (3) minutes. All comments are to be addressed directly to the Authority Members not to the members of the public.
Emails for public comment received prior to 4:00 pm on the day of the Council Meeting will be summarized by the City Clerk, not read in its entirety. A copy of the email will be provided to the City Council and will also be available at the City Clerk's Office for public review. A copy of each email will be recorded for public record and noted on the official minutes of tonight's meeting.
Open Session Agenda
1. MOU – Habitat LA DOA & AHA
It is recommended that the City Council and Housing Authority Board: (CD) a. Approve the Memorandum of Understanding (MOU) among the City of South Gate, the South Gate Housing Authority, and Habitat for Humanity of Greater Los Angeles or Partnership Housing, Inc. (Developer) to establish initial terms for negotiating a Disposition, Development and Loan Agreement (DDA) and an Affordable Housing and 2 Loan Agreement (AHA); and
b. Authorize the Chairperson of the South Gate Housing Authority and Mayor or authorized designee to execute the MOU in a form approved by the City Attorney.
Documents:
Item 1 Report 05122026 - Joint.pdf
Comments From The Audience - Non-Agenda Items
Reports And Comments From City Officials
Adjournment
I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on May 7, 2026, at 6:00 p.m., as required by law.
Yodit Glaze
City Clerk
GENERAL NOTICE TO THE PUBLIC
The City Council adopted new rules relating to the conduct of the public meetings, proceedings, and business in the City of South Gate on July 12, 2022, (Resolution 2022-38-CC) and go into effect on August 1, 2022. Resolution #2022-38-CC is available at the City Clerk’s Office.
MEETING SCHEDULE
Regular meetings of the Housing Authority are held on the second and fourth Tuesday of each month, closed session meetings will commence at 5:30 p.m. unless posted otherwise on its agenda. The regular City Council meetings will commence at 6:30 p.m. Agendas are available at the following locations:
City
Clerk's Office,
Public Notice Boards at City Hall, and on the
City’s web page at
https://www.cityofsouthgate.org
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PUBLIC COMMENT/PARTICIPATION
Any person may request to address a legislative body during a public meeting. The Presiding Officer will call upon those present in the Council Chambers first. After all speakers in the Chambers have spoken, the Presiding Officer will call upon those participating via zoom or teleconference. 3 Speakers are limited to three (3) minutes on any item listed on the agenda, including public hearings.
Under Comments from the Audience portion, speakers are also limited to a single three (3) minutes time limit. Comments from the Audience is initially limited to 45 minutes at each meeting. Any speaker still wishing to speak, that did not speak, will have an addition Comments from the Audience opportunity after the last business item is finished. The Presiding Officer may extend the time limit as long as there is no objection from the Housing Authority as a body.
To ensure that the public is able to participate, the City provides the opportunity to submit their comments in person, virtually, email, phone call, mail and any other method which may become available. Methods of participation may be subject to change during other such times when a State of Emergency, Health Order or State Executive Order limits in-person participation.
CURFEW
In absence of a motion duly adopted by majority vote of the Housing Authority, the Presiding Officer may adjourn the Housing Authority meetings at 10:30 p.m. The Presiding Officer may ask the Housing Authority if any agenda items listed should be continued or dealt with during the meeting. For those items to be continued, the Housing Authority can direct the item be placed on the next Housing Authority agenda or the current meeting may be adjourned to a time certain at which time the meeting shall be reconvened as an Adjourned Regular Meeting of the Housing Authority and action upon the published agenda continued.
STAFF REPORTS
As a general rule, staff reports. or other written documentation are prepared/organized with respect to each item of business listed on the agenda. Meeting agendas and staff reports are available at least 72- hours prior to the scheduled regular Housing Authority meeting and a minimum of 24-hours prior to a Housing Authority meeting. There are times when the housing Authority receives written material, revised material after the posting of agendas, these materials are become a public record and will be available for public view within 72-hours after the meeting in which they were received. Those materials and any other public document can be inspected in the City Clerk's Office located at 8650 California Avenue, South Gate.
SERVICES TO FACILITATE ACCESS TO PUBLIC MEETINGS
In compliance with the American with Disabilities Act, if you need special assistance to participate in the Housing Authority Meetings, please contact the Office of the City Clerk. Notification 48 hours prior to the Housing Authority Meeting will enable the City to make reasonable arrangements to assure accessibility.
For further information, please contact the Office of the City Clerk at (323) 563-9510 or via email at [email protected]
.
4 SoutPa::o(3i'thyeClerk Item No. l
MAYO7 2026
FILED Cid of South Gate
11=L/sd7m SOUTH GATE HOUSING AUTHORITY
CITY COUNCIL
AGENDA BULL
Departmem Director:
For the Regular Meeting of: May 12, 2026
Originating Department: Comm a Develo ment
City Manager:
Rob Houston
SUBJECT: APPROV AL OF A MEMORANDUM OF UNDERSTANDING WITH HABIT AT
FOR HUMANITY OF GREATER LOS ANGELES TO GUIDE NEGOTIATIONS TOWARD
A DISPOSITION, DEVELOPMENT, LOAN AGREEMENT FOR AN AFFORDABLE OWNERSHIP PROJECT OF 9001-9019 LONG BEACH BOULEVARD PURPOSE: To consider approval of a Memorandum of Understanding (MOU) with Habitat for Humanity of Greater Los Angeles for the disposition, development, and operation of the property located at 9001-9019 Long Beach Boulevard, including provisions for affordable homeownership and an associated loan agreement.
RECOMMENDED ACTIONS: It is recommended that the City Council and Housing Authority Board:
a. Approve the Memorandum of Understanding (MOU) among the City of South Gate, the South Gate Housing Authority, and Habitat for Humanity of Greater Los Angeles or Partnership Housing, Inc. (Developer) to establish initial terms for negotiating a Disposition, Development and Loan Agreement (DDA) and an Affordable Housing and Loan Agreement (AHA); and b. Authorize the Chairperson of the South Gate Housing Authority and Mayor or authorized designee to execute the MOU in a form approved by the City Attorney.
FISCAL IMPACT: There is no direct fiscal impact associated with approval ofthe MOU. Any future DDA or AHA involving City or Housing Authority funds will be presented to the City Council and Housing Authority Board.
ANALYSIS: The proposed Memorandum of Understanding (MOU) provides a structured, nonbinding framework for the City and Housing Authority to negotiate with Habitat for Humanity of Greater Los Angeles or Partnership Housing, Inc. (Developer) regarding the potential development of an affordable housing project on Housing Authority-controlled property. Entering into an MOU at this stage is a standard practice that enables the Parties to formalize expectations, establish timelines, and clarify roles while preserving the discretion of the City Council and Housing Authority Board.
The MOU outlines the Parties' intent to negotiate two future agreements:
1 5
a a Disposition, Development and Loan Agreement (DDA), which would govern the conveyance of the property and the terms of development; and s an Affordable Housing and Loan Agreement (AHA), which would define financing terms for any City or Housing Authority loan, with funding sources to be identified during negotiations.
The MOU does not obligate the City or Housing Authority to approve or enter into any future agreement. Instead, it provides a clear procedural path for due diligence, underwriting, project design refinement, entitlement considerations, and community outreach. This structure ensures both transparency and accountability as the Project concept is developed.
Importantly, the MOU includes provisions allowing any Party to terminate negotiations upon ten days' written notice, ensuring flexibility should project conditions, feasibility, or policy priorities change. It also includes standard waivers regarding remedies, confirming that the MOU is not enforceable as a development contract. This protects the City and Housing Authority from any premature legal or financial commitments.
The Project's potential to expand affordable homeownership opportunities in South Gate through proposed development of 14 affordable townhome units aligns with City housing goals, the Housing Element, and regional priorities for increasing supply and stability for low- and moderate-income households. Furthermore, the site is currently designated on the City's Housing Element Sites Inventory and is zoned Urban Neighborhood that permits residential development (40 du/acre).
Habitat for Humanity and its CHDO affiliate, Partnership Housing, Inc., have extensive experience delivering affordable ownership housing throughout Los Angeles County, adding confidence in the Developer's capacity to deliver a high-quality project should negotiations proceed success'[ully Approval of the MOU enables the Parties to advance negotiations in an orderly, good-faith manner while maintaining fiill discretion over any final agreements that may later come before the City Council and Housing Authority Board.
BACKGROTJND: The City and Housing Authority are working to facilitate the development of an affordable housing project ("Project"). Habitat for Humanity of Greater Los Angeles and its affiliated Comtnunity Housing Development Organization (CHDO), Partnership Housing, Inc., have expressed interest in serving as the developer. Should the Project utilize federal funds requiring a CHDO, Partnership Housing, Inc. would be the Developer entity. For all purposes of the MOU, both organizations may be referenced collectively as the "Developer." The proposed MOU establishes key initial terms and sets the framework for future negotiations toward two binding agreements:
* A Disposition, Development and Loan Agreement (DDA); and * An Affordable Housing and Loan Agreement (AHA), for the potential loan of City and/or Housing Authority funds, with the specific funding source to be determined.
ATT ACHMENTS:
A. Proposed Memorandum of Understanding
2 6
Attachment A
Agenda Bill OS/12/26
MEMORANDUM AND INITIAL TERMS
FOR DISPOSITION, DEVELOPMENT AND OPERATION OF
9001-9019 LONG BEACH BOULEVARD
AFFORDAJ3LE OWNERSHIP
AND THE LOAN OF SOUTH GATE FUNDS IN CONNECTION
THEREWITH
December 17, 2025
This memorandutn of understanding ("MOU") presents the initial terms ("Initial Teims") for, and serves as the basis to engage in good faith negotiations toward a Disposition, Development and Loan Agreement ("DDA") and Affordable Housing and Loan Agreement for the loan of City and/or Horising Authority fiands, the source of which is to be deteimined ("AJ-IA"), each to be entered into among the South Gate Housing Authority ("Housing Authority"), the City of South Gate ("City"), and either Habitat for Humanity of Greater Los Angeles or Paitnership Horising, Inc. ("Developer"). In the event the Project receives federal funds requiring that the developer be a Community Housing Development Organization (CHDO), the Developer entity will be Partnersliip Housing, Inc., as it qualifies as a CHDO. Tliese entities may be referred to together as the "Parties" and each as a "Party"; and tlie City and Housing Authority may be referred to as "Sorith Gate". The Parties sliall exercise commercially reasonable efforts to (a) negotiate and enter into a DDA within six months from the date hereof, and (b) negotiate and enter into an AHA prior to tlie closing of the transfer of the Property pursuant to the DDA.
This MOU is not intended to constitute a binding agreement by any Party, nor is it intended to constitute a binding agreement to enter into a DDA, AHA, or any other contract. No Party shall be legally borind to consummate the transactions as outlined herein unless and until a DDA, AHA or other contract has been approved, executed, and delivered by the Parties. The matters contained herein shall not be construed as final commitments by any Party nor as a disposition of a real property interest by South Gate but, instead, to state generally the basis upon which the Parties intend to negotiate binding contracts for the conveyance of the Propeity, the development of the Project (as defined in section 7 below) and the loan of City and/or Housing Authority funds for the Project.
Entry into any binding agreement regarding the subject matter hereof is expressly subject to the City Council and Housing Authority's independent review, judgment, and exercise of their sole discretion to approve (or disapprove) the DDA and AHA for the proposed Project. Further, Developer reserves the right to exercise its sole discretion in approving (or disapproving) and entering into any final DDA and/or AHA. The final AHA and DDA may include terms that differ from, or are in addition to, the Initial Terms set forth herein.
Each party reserves tlie riglit to terminate negotiations prirsuant to this MOU, with or withorit cause, upon ten (10) days prior written notice to the other Parties, thereby witlidrawing from such negotiations withorit any liability to tlie other Parties, except that each Party shall be obligated to promptly return to the other Parties all information and materials which such Party has received from the other party pursuant to this MOU. The Parties, by their respective execution hereof, knowingly agree, notwithstanding anything herein to the contrary, that neither of them shall have any right to specific performance of this MOU, nor any other equitable or damage remedies under the law. Each party makes such release and waiver with full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release and waiver, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows:
MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 7 Draft Ten'n Slieet - 9001-9019 LBB
December 17, 2025
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE
CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS OR HER FAVOR AT THE TIA/IE OF EXECUTING THE
RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY."
The Initial Terms contemplated by the Parties to be set forth in the DDA and AHA, as applicable, are as follows:
1. HOUSING
AUTHORITY:
Sorith Gate Housing Authority, a public body corporate and politic, and serving as a housing authority pursuant to Health and Safety Code ("HSC") Section 34200, et seq. ("HAL") and concurrently serving as the "Housing
Successor" to tlie fottner Community Development
Commission of the City of South Gate under Division 24, Part 1.85, HSC 34170, et seq., in particular HSC 34176 and 34176.1 ("Dissolution Law") ("Housing Authority")
2. CITY City of South Gate, a California municipal corporation (11 (2 la t y) ) ).
3. GENERAL
CONTRACTOR:
Habitat for Humanity of Greater Los Angeles, a California nonprofit public benefit corporation, or a licensed third- paity general contractor reasonably acceptable to the parties.
4. PROPERTY: Three (3) contiguoris parcels totaling approximately O.66 acres and comprised of two (2) Sites, A and B, with the following Assessor's Parcel Numbers (APNs) as listed in Figure 1 below ("Property"):
Site APNs Situs Address
A 6204-025-900
6204-025-901
9001 Long Beach Bl
9015 Long Beach Bl
B 6204-025-902 9019 Long Beach Bl
Site A was transferred to the Housing Authority, in its capacity as Housing Successor, following approval of the Horisii'ig Asset Transfer schedule by the State of California, Depaitment of Finance ("DOF") on April 1, 2013, and presently is listed as an asset in the Low and Moderate Income Housing Asset Fund ("LMIHA_F" or Fund 322).
MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 8 Draft Teim Sl'ieet - 9001-9019 LBB
December 17 2025
Site B was prirchased on March 3, 2020, by the Housing Authority with acqriisition funds sourced solely from the LMIHAF, and Site B presently is listed as a housing asset in the LMIHAF.
5.A. CONVEY ANCE
PRICE; AUTHORITY
NOTE AND
AUTHORITY DEED
OF TRUST:
The Conveyance Price for the property will be the fair market value of the Propeity as mtitually agreed upon by the City and Developer. Promptly following execution of this MOU, the City will obtain a third-party appraisal of the Property. The appraisal may be used by tlie parties as a guide for negotiations, but shall not be controlling. The parties shall agree upon the Conveyance Price prior to execution of the DDA, and shall specify that agreed-upon Conveyance Price in the DDA.
The DDA will provide that the Housing Authority will provide cai'iyback financing for Developer's acquisition and payment of the Conveyance Price, which shall be evidenced by an Authority Note and secured by a subordinate
Authority Deed of Trust lien recorded against the Property at the close of Escrow and closing of Financing (together, "Closing").
5.B. DEPOSIT Upon executing the DDA, Developer will provide the City a good faith deposit equal to $20,000 ("Deposit"). City shall rise a portion of the Deposit to reimburse itself for NEPA compliance expenses incurred by City in connection with the Project in the approxitnate amount of Twelve Thousand Dollars($12,018.7500),previouslybilledtoDeveloper. If
Developer fails to fulfill the conditions or meet the obligations set forth in the DDA, tlie City may retain the Deposit as liquidated damages. Prior to close of escrow, tlie City's sole remedy sliall be to terminate the DDA and retain the good faith Deposit. Upon close of escrow, the Deposit will be applied to any outstanding balance due to the City for permits and fees.
6. DDA EFFECTIVE
DATE; TERM:
The "Effective Date" of the DDA is the date of full execution by the Housing Authority and Developer, subject to South Gate's action on the DDA in the City Corincil's and Housing Authority board's respective and sole discretion.
The oritside date for the Closing of Conveyance of the Property and Closing of Financing for the Project will be such date as is forty-five (45) days after a No Further Action letter ("NFA") is received from the DTSC for the MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 5 9
Draft Term Slieet - 9001-9019 LBB
December 17 2025
clean-up of the Property, which is anticipated to be approximately twenty-four (24) months from the MOU Effective Date.
7. PROJECT
DESCRIPTION:
Tlie proposed "Project" will inchide a 30,700 sqriare foot, three-story, fourteen (14) unit affordable home ownership townhome development, inclusive of forirteen (14) attached single-family townhomes, each unit with a two-car garage, front porch, and outdoor balcony, along with a 1,000 sqriare foot community room, nine (9) guest surface parking areas, programmed common area, outdoor benches, and
community green space.
Tlie townhomes will have two floor plans:
* Plan l = 3-bedroom, 3.5 bathroom (1,589 sf)
@ Plan 2 = 2-bedroom, 2.5 bathroom (1,344 sf)
See Exhibit A for Conceptual Site Plan.
The Project will be built in one phase, as follows:
Site A: eight (8) units
Site B: six (6) units
The fourteen (14) townhomes to be sold to income-qualified Homebuyers are referred to as "Ownership Units".
8. AFFORDABILITY: The DDA and AHA will require that all units are to be sold at a price approximating fair market value, with financing resulting in an Affordable Housing Cost (calculated in accordance with HSC §50052.5(b)), to Low Income
Households (as determined in compliance with
HSC §50079.5) with the following income/unit mix:
Plan 1 (3bd) Plan 2 (2bd) Total
Total 7 7 14
Ownership Units. The Ownership Units are to be sold by Developer to income-eligible homebuyers at a price
approximating fair market value ("Homebuyer Purchase Price"), with first mortgage financing that results in an Affordable Housing Cost as defined in HSC §50052.5(b), which shall be calculated based on the first mortgage principal and interest payment, HOA fees, taxes, inswance, and related fees that comprise Affordable Housing Cost.
The Homebuyer Purchase Price shall be paid by a
MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 10 Draft Teim Sl'ieet - 9001-9019 LBB
December 17, 2025
combination of a conventional thirty (30) year, fixed rate, first mortgage from a bank lender, one or more Homebuyer Loans as defined below, and, if needed, a subordinate, "silent" mortgage Developer loan reqriiring no payments of principal and interest.
Upon the initial sale of each Ownership Unit, a declaration of conditions, covenants and restrictions
("Authority CCRs") shall be recorded against the
Ownership Unit, along with a subordinate silent/soft moitgage issued by and in favor of the Housing Authority evidenced by a promissory note and secured by a
perforinance and monetary deed of trust in an amount equal to one-fourteenth (1/14Ih) of the Conveyance Price (each, a "Homebuyer Loan"). Each Homebuyer Loan is 'Jully
deferred, assumable at resale by income-eligible subsequent homebuyers, but due on defarilt or sale in violation of the covenants and deemed repaid at the end of a 45-year Affordability Period.
Upon the initial sale of each Ownership Unit to an income- qualified Homebuyer and entering into each Homebuyer Loan, 1/14fh of the South Gate Loan (as defined below) will be deemed repaid and tlie Deed of Trust securing the South Gate Loan as to such Ownership Unit will be reconveyed and released of record.
9. FINANCIAI_,
SUBSIDIES TO BE
PAID BY HOUSING
AUTHORITY:
To facilitate the Project, the Housing Authority will provide a carryback loan in tl'ie amorint of the Conveyance Price to Developer, which will be documented by the DDA.
10. SOUTH GATE LOAN South Gate will provide additional financial assistance to the Project prirsuant to the AHA (:the "Sorith Gate Loan"), which loan proceeds will be used to fund certain
construction and other development costs of the Project.
The amorint and source of funds for the South Gate Loan shall be determined prior to the Conveyance of the Property to Developer pursuant to the DDA. The South Gate Loan shall be contingent upon the execution of an AHA in such form as is acceptable to tlie Parties.
The South Gate Loan will be a deferred payment loan secured by a South Gate Note and Deed of Tnist recorded against the Property. Upon the initial sale of each of the forirteen (14) for-sale Ownersl'iip Units to an income- MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 11 Dra:it Teim Slieet - 9001-9019 LBB
December 17, 2025
qualified homebuyer, the corresponding unit parcel will be released and reconveyed from tlie South Gate Deed of Trust. The South Gate Loan shall be deemed fully repaid ripon sale of all rinits. The South Gate Loan shall become due and payable if tl'ie borrower defaults under the South Gate Loan teims or the Authority's Regulatory Agreement prior to the sale of the Ownership Units to the homeowners.
11. SECURITY AND
COVENANTS:
In connection witli the disposition of the Property by the Horising Arithority to tlie Developer, upon Closing, the DDA will require Developer to execute and deliver certain Project Documents, including A'iithority Loan Note, Authority Loan Deed of Trust, South Gate Loan Note and Sorith Gate Loan Deed of Ttust, CCRs, Authority
Regulatory Agreement, and related instruments (see list of attachments). Though the Sorith Gate Loan Note, CC&Rs and South Gate Deed of Trust will be required by the DDA to be executed and delivered by Developer at Closing, the South Gate Loan shall be documented by and made
pursuant to the AHA.
The DDA, AHA, Homebuyer Loan Agreement, Authority CC&Rs and related instruments for the Ownership Units will include marketing and homebuyer selection covenants, occupancy standards, owner/occupancy covenants, aru'iual certification of same, monitoring fee due on resale, etc. The DDA will describe (i) "sweat equity" requirements by Developer of its prospective liomebuyers, (ii) marketing and homebuyer selection requirements, (iii) calculation and steps for calculating the Affordable Horising Cost of each Ownership Unit, including downpayment, first mortgage principal and interest payment, HOA, taxes, insurance, and related fees that comprise Affordable Housing Cost for the initial Homebuyer and terms and conditions ripon resale and assumption of Homebuyer Loan.
Developer resale covenants will inctude a "prit" back to Developer to cause the Homebuyer to offer the unit to Developer piior to eacli resale during the 45-year covenant term. Upon repurchase by Developer, Developer shall be reqriired to resell the unit to another qrialifying Low Income Horisehold. If necessary to provide that the total consideration given by the homebuyer equals the
Homebuyer Purchase Price of the Ownersliip Unit,
Developer shall be peimitted to provide one or more MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 12 Draft Teim Slieet - 9001-9019 LBB
December 17 2025
subordinate loans to the Homebuyer, which shall not require periodic payment of principal and interest and which, unless prohibited by the source of funds providing the loan, shall be evidenced by promissory notes and secured by deeds of tiust subordinate to those evidencing and securing the Homebuyer Loan.
12. R_ELOCATION OF
EXISTING TENANT
& SITE
CLEARANCE:
South Gate has relocated the former tenant, inctuding the advisory assistance and monetary benefits, which
displacement was completed as a condition to the transfer of ownership of the Propeity. The relocation included clearance of personal property from tlie Property and demolition of the improvements in order to effectuate remediation of soil contamination described below.
The tenants at 9019 Long Beach Boulevard have been relocated and compensated in accordance with applicable relocation law.
13. ENVIRONMENTAI_,
REMEDIATION:
Prior to transfening ownership of the Property, tlie Horising Authority is responsible to cause site preparation, including an environmental cleanup plan, and completing the cleamip of 9019 Long Beach Blvd through a no further action letter or similar closrire letter issued by DTSC. Tl'iougli the costs for this work are to be the responsibility of the Housing Authority, Developer has received a grant from the DTSC for clean-up of the parcel, the proceeds of whicli will be used to remediate the parcel. Developer shall be responsible for the administration and use of the grant funds for remediation. Notwithstanding the foregoing, in the event the DTSC grant funds are insufficient to complete the
remediation of the parcel, Developer and South Gate agree to use commercially reasonable efforts to secure additional, third party funds to complete the remediation. Developer shall liave no obligation to expend its own funds for remediation activities.
The DDA will include provisions that from and after conveyance of tlie Propeity, South Gate will not assume any liability or risk related to tlie physical and environmental condition of the Property. While the Housing Autliority and Developer will perform a certain scope of environmental assessment and cleanup, upon conveyance, and provided that a "no further action" letter from DTSC is obtained for the parcel, tlie Propeity will be conveyed, and Developer shall accept, in an "as-is" and "where-is" condition with no MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 13 Draft Teri'n Slieet - 9001-9019 LBB
December 17, 2025
fuitlier obligation or liability as to sucli condition, with environmental inden'u'iity by Developer of Sorith Gate for Developer's activities post-conveyance of title.
According to a January 28, 2020, Pl'iase II Environmental Site Assessment prepared by Rincon Consultants, Inc. ("Rincon"), the Property has soil contamination, including elevated levels of lead concentrated in the top one foot of the soil, as well as elevated levels of thallium. Rincon has advised removal of approximately 250 cubic yards of lead- impacted soil and additional testing of thallium
concentrations during remediation, as well as pursuing a voluntary cleanup program overseen by the Depaitment of Toxic Substances Control, who shall be asked by South Gate and the Developer to issue a "no further action" letter upon completion of remediation activities, to be provided to Sorith Gate, allowing the Property to be redeveloped without enviroiunental conditions.
The cost of a portion of the environmental remediation will be paid by a grant from DTSC and completed prior to transfer of the Property to the Developer.
The DDA shall provide that the completion of
environmental remediation of the Property and delivery of a "no fiuther action" letter shall be a condition precedent to Developer's obligation to purchase the Property.
14. HOA: Developer will form a homeowners' association ("HOA") for prirposes of maintaining common areas and adequately funding a replacement reserve fund. Developer will provide the form of Homeowners' Association Agreement and
Covenants Conditions and Restrictions (CCRs) for review and approval by the Housing Authority prior to the sale of the Ownership Units to the Homebuyers. Ownership Units shall be subject to both the HOA CCRs and the Authority CCRs in accordance with their respective terms.
Prior to the sale of eacli Ownership Unit to eligible homebuyers, Developer will be responsible for payment of monthly HOA dues. Following closing of each sale of an Ownership Unit, the homebuyer will be responsible for HOA dues.
MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 it)
14 Draft Tei'i'n Slieet - 9001-9019 LBB
December 17, 2025
15. DEVELOPER FEE: Developer shall earn a Developer Fee of ten percent (10%) of Project development costs, wl'iich shall include, withorit limitation, general constiuction costs such as hard and soft construction costs, the payment of wliich sl'iall be deferred and collected on a pro rata basis upon the sale of each of the forirteen (14) Ownership Units. The Developer Fee sliall not accrue interest during the peiiod from closing until paid from net proceeds from the sale of the Ownership Units.
Developer shall be entitled to pay the General Contractor a General Contractor Fee in an amorint customary for similar projects in the area, which such General Contractor Fee shall be a Pro5ect cost in addition to the Developer Fee.
Developer may engage an affiliate entity as the General Contractor.
16. PRE-CONVEY ANCE
REQ{JIREMENTS/
CONDITIONS
PRECEDENT FOR
CLOSE OF ESCROW
FOR CONVEY ANCE
OF THE PROPERTY
BY THE HOUSING
AUTHORITY TO
DEVELOPER:
As Conditions Precedent to the conveyance of the fee interest in Propeity to the Developer, all of tlie following tnust first be met by the date indicated for each condition in the schedule of performance ("Schedule"), attached hereto as Exhibit B. The DDA may contain provisions to extend certain dates by muhial agreement of Developer and the Executive Director/City Manager; provided, however, that the Executive Director/City Manager may only extend the Outside Closing Date by rip to 180 days and only South Gate, in its sole and absolute discretion, may extend tlie Outside Closing Date and the Completion of Construction date by more than 180 days.
16.1 Financial Plan No later than the date set forth in the Schedule, the Developer shall have submitted to the Housing Authority for its review and obtained the City's approval of the following, which together will be referred to as the "Financial Plan":
* A detailed cost breakdown of construction of the Project ("Project Development Budget') containing
an itemized construction budget for the Project,
showing all construction related and non-
construction related costs, materials with brand or equivalent, including reasonable contingencies, and the funding sources of payment for each item.
* A sources and uses statement for the Project. * A copy of letters of commitment for construction financing and permanent financing from reputable
institutional lenders, grant funding, equity
contributions, and other financing from exteinal
MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 ll 15
Draft Term Slieet - 9001-9019 LBB
December 17, 2025
sources as necessary to finance development of the entire Project.
o Commitment letters must acknowledge the
reqriirements of the Initial Terms, including
priority, and nonsubordination of the
.%ithority CCRs for the Ownership Units.
o Housing Authority will subordinate the
Authority Loan Deed of Trust to consttuction
financing for the Ownership Units.
* A certified financial statement or other financial statement in such form reasonably satisfactory to
Sorith Gate, evidencing other sorirces of capital, sufficient to demonstrate that the Developer has
adequate fiinds available and is committing such
funds to cover the difference, if any, between the Developer's costs of development and construction
and the amount available to Developer from exteriial financing sources.
* Any other evidence reasonably requested by South Gate demonstrating the economic and financial
feasibility of the Project.
* The DDA shall provide tliat a condition precedent to Developer's obligatioi'i to purchase the Property
shall be that Developer shall be satisfied that, based on its available financing, including, without
limitation, the funding provided pursuant to the
AHA, estimated sales price of the Ownership Units, and such other matters as Developer may reasonably consider, the Project is financially feasible.
16.2 Financing and
Financing Documents
. Developer shall be permitted to grant a security
interest in its tights and beneficial interests to the Property pursuant to the DDA and AHA in favor of a single lender or a group of public and private, institutional lenders solely in connection with financing of construction of the Project, provided however, the Sorith Gate CCRs and Authority Regulatory Agreement shall be and remain senior,
nonsubordinate encumbrances after completion of
construction and the full Property during construction.
Tlie Schedule of Perfoimance included in the DDA shall allow time for Developer to use its best efforts to obtain competitive or other affordable housing financing
(including, withorit limitation, state housing subsidy programs, local subsidies), but no longer than, eighteen (18) months from the Effective Date of the DDA, subject to MOU for sale and development of 9001-9019 Long Eeach Blvd FmAL v2 tl
16 Draft Term Slieet - 9001-9019 LBB
December 17, 2025
Force Majeure, whicli sliall in no event exceed in the aggregate twelve (12) months. Force Majeure shall mean delays or defaults that are due to war, instu-rection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; and pandemics.
Financing Documents. Not later than the date set forth on the Schedule, Developer shall have submitted to South Gate for review and obtained the Sorith Gate's approval of a draft of the form of all documents to be used for financing construction of the Project prirsuant to the approved Financial Plan ("Financing Documents"). In advance of and in preparation for the Closing of Financing, Developer shall cause drafts of all financing documents to be provided to South Gate and its corinsel for review, comment and approval (or disapproval and modification toward
approval). Tl'ie full execution of the Financing Documents and the closing of all construction financing for the Project shall be a Condition Precedent to conveyance of the Property to Developer.
16.3 Scliematic
Designs
By no later than the date set forth on the Schedule, Developer shall have submitted to the City Community Development Department for its review and obtained South Gate's approval, in its discretion, of the Schematic Design Plans for the Project. The term "Schematic Design Plans" will be defined in the DDA and will include schematic drawings, exterior elevations, site plans, floor plans and a garage layout, unit plans (including square footage), a landscaping plan, scliematic plans for street and sidewalk improvements, and a sample materials board with brand and eqriivalent for tlie entire Project.
16.4 Design
Development Plans
By no later than the deadline set forth in the Schedule, Developer shall have submitted to the City Community Development Department for its review and obtained the City's approval, in its proprietary capacity, of the Design Development Plans for constniction of the Project. The tetatn "Design Development Plans" means drawings, outline specifications and otlier documents based on the Schematic Design Plans that fix and describe the size and character of the Project as to arcl'iitectural and basic stnictural systems, materials, and other elements as appropriate.
16.5 Final Construction
Plans
By no later than the date set forth on the Schedule, Developer shall have submitted to the City Community MOU for sale and development of 9001-9019 Long E.each Blvd FINAL v2 t3
17 Draft Teri'n Slieet - 9001-9019 LBB
December 17 2025
Development Department for its review and obtained the City's approval of the Final Construction Plans for construction of the Project. The term "Final Construction Plans" means all construction documentation upon whicli a Developer and General Contractor will rely on constructing the Project, and shall include, but not necessarily be limited to, final architectural drawings, landscaping plans and specifications, final elevations, building plans, final specifications, plans for street and sidewalk repairs or improvements, a detailed breakdown of the costs of construction for the Project. The Final Construction Plans shall be substantially consistent with the Schematic Design Plans and Design Development Plans approved by the City Community Development Depaitment, subject to applicable review by Planning Commission or City Council as
appropriate.
16.6 Construction
Contract
Developer shall enter into a contract or contracts for the construction of the Project with a licensed, bonded, and reputable general building contractor or General Contractor, either of which shall meet the employment and contracting obligations contained herein, including the General Contractor's experience in compliance with Prevailing Wage Laws, Section 3, and other applicable federal, state, and local laws applicable to construction through
completion of the Project ("Construction Contract"). In no evem shall a Developer contract with any party which has been debarred or suspended by HUD rmder 24 CFR Part 24.
The Construction Contract shall provide for the Project to be constnicted for a fixed and specified guaranteed maximum amount pursuant to the approved Final
Construction Plans.
No later than the date set forth on the Schedule, Developer shall have submitted to South Gate for review and obtained approval of a draft of the form Construction Contract. Not later than the date set fortli for this action in the Scliedule, the Developer shall have submitted a draft of the final Construction Contract for the Project to South Gate for review and obtained approval prior to execution to determine that the cost of the development of the Project has been clearly fixed and determined, that no material changes to the Project will be made without the prior written consent of Sorith Gate to the extent reqriired under the DDA, and that all of the terms and conditions required to be included in the construction contract by fiinding MOU for sale and development of 9001-9019 Long Eieach Blvd FINAL v2 18 Draft Teri'n Sl'ieet - 9001-9019 LBB
December 17, 2025
sources for the Project (such as payment of prevailing wages, if applicable) have been included. Developer shall also submit, prior to or together witl'i the final Constiuction Contract, a detailed cost breakdown budget for Project consti'uction and development, Section 3 compliance, and a construction schedule, and a constiuction casli flow (draw- down) projection to Soutli Gate for review and approval.
16.7 Perfoimance and
Payment Bonds
Prior to the close of Escrow, Developer shall obtain a labor and materials payment bond in tlie amoruit not less than 100% of the cost of construction of the Project prirsuant to the Construction Contract to be executed by Developer.
Deyeloper shall obtain a performance bond in an amount not less than 100% of the cost of construction of the Project pursuant to the Construction Contract to be executed by Developer.
The performance bond and labor and materials payment bonds shall be issued by a licensed surety, shall name both the City and Housing Authority as co-obligees or assignees, and shall be in a form reasonably satisfactoiy to Sorith Gate and its legal counsel.
16.8 Government
Approvals
To tl'ie extent not already obtained, Developer shall, not later than tlie date specified in the Schedule, apply for all federal, state and local permits, land use entitlements, subdivision map approvals, plan and otlier required governmental regulatory approvals allowing any
subdivision of the Property, if so proposed, and construction and development of the Project to completion (together, the "Governmental Approvals"). Developer shall also complete environmental review pursuant to CEQA and NEPA and incorporate any mitigation measures identified in the environmental review process and reqriired to be included in the plans for Project development and operations. The Developer shall give South Gate ten (10) days' prior notice of any hearings regarding matters described in the DDA, or if the Developer shall provide less notice, a reasonable amount of advance notice to enable the South Gate representatives to elect to attend such hearings.
Developer acknowledges and agrees that evidence of all Governmental Approvals necessaiy to commence
construction of the Project, subject only to payment of permit fees, is a precondition to disposition of the Property to the Developer.
MOU for sale and developmem of 9001-9019 Long Beach Blvd FmAL v2 1'7 19
Draft Teim Sheet - 9001-9019 LBB
December 17 2025
South Gate shall satisfy all applicable provisions of the Surplus Lands Act prior to Closing in accordance with tlie DDA and shall commence any review required by HCD at least 30 days prior to the date scheduled for approval of the DDA. Satisfaction of the Housing Authority's obligations ru'ider the Surptus Lands Act and the approval of HCD shall be a condition precedent to Developer's obligation to prirchase the Property rinder the DDA.
16.9 Review and
Approval of Developer
Submissions
If any Developer submission that is timely submitted and in its entirety is reasonably satisfactory to South Gate, then within ten (10) South Gate Business Days of receipt by South Gate's project manager ("South Gate Response Date"), South Gate shall, in its reasonable discretion, approve in writing that Developer submission, and no fiuther filings by the Developer or approval by South Gate thereof shall be required for that Developer Submission, except for any subsequent Material Change in the contents of the Developer Submission. Notwithstanding the
foregoing. South Gate may approve those poitions of a Developer submission that are reasonably satisfactory and reject those portions that are not. Sorith Gate may also approve all or a portion of a Developer submission subject to conditions reqriiring Auther submissions for Sorith Gate review and reasonable approval. South Gate shall provide written notice of its approval or disapproval of any Developer submission (each, a "South Gate Notice") on or prior to the South Gate Response Date, and in the event of disapproval or conditional approval shall iiiclude in any South Gate Notice the specific basis and reasons for the Sorith Gate's disapproval or conditional approval and changes that would make the Developer Submission or applicable portion tliereof acceptable to Sorith Gate (in each case, "South Gate Conditions"). Failure bv South Gate to meet the Sorith Gate Response Date shall not constitute a default by South Gate under this Agreement, and in such event, the subject Developer submission shall be
automatically deemed approved.
17. CONSTRUCTION OF
THE PROJECT:
17.1 Commencement
of Consti'uction
Developer shall commence construction work on the Project no later tlian t}ie date set foith in the Schedule.
MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 l(/ 20
Draft Teim Sl'ieet - 9001-9019 LBB
December 17, 2025
17.2 Construction
Obligations
Conshuction of the Project shall be substantially in accordance with the Final Construction Plans approved by South Gate, witliout substantial deviation therefrom unless approved by Sorith Gate in writing.
17.3 0ff-Site
Improvements
Developer shall be responsible for the cost of any and all off-site improvements and any relocation of existing utilities and easements to the extent required under plaiuffng and building approvals for the Project.
17.4 Prevailing Wages: Developer shall carry out the construction tmough completion of the Project and the overall development in conformity with all applicable federal, state and local labor laws and regulations, including without limitation, the requirements to pay prevailing wages under federal law (Davis-Bacon Act, 40 U.S.C. Section 3141, et seq., and the regulations promulgated thereunder set forth at 29 CFR Part 1 (together, "Davis-Bacon")) and Califotnia law (Labor Code Section 1720, et seq.) and standards of the State Department of Industrial Relations (together, "Prevailing Wage Laws"), to the extent applicable, and shall indemnify South Gate as to same.
This shall be clearly specified in the construction contract submitted to Housing Authority for review and approval.
17.5 Disabled Access Developer shall develop the Project in compliance with all applicable federal, state, and local requirements for access for disabled persons, including, without limitation and as applicable, Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. section 794).
17.6 Lead-based Paint Developer and its General Contractor and subcontractors shall not use lead-based paint in the constiuction of the Project or maintenance of Project units. Developer shall insert this provision in all contracts and subcontracts for work performed on the Project which involves the application of paint.
l 7.7 Quality of Work Developer shall construct the Project in conformance with general industry standards and shall employ building materials of a quality suitable for the requirements of the Project. Developer shall develop the Project in full conformance with applicable local, state, and federal statutes, regulations, and building and zoning codes.
MOU for sale and development of 9001-9019 Long Beach Blvd Fn4AL v2 t"'l 21
Draft Tenn Sl'ieet - 9001-9019 LBB
December 17, 2025
18. RIGHT OF ENTRY: Developer shall have the right to enter the Property prior to conveyance to conduct investigations and testing at Developer's cost and pursuant to the DDA and required as pait of its due diligence, subject to the terms and conditions of tlie Right of Entry Agreement entered into by the Paities.
19. DEVELOPER
MAINTENANCE/
ST ANDARD OF
PROPERTY:
Following (a) conveyance of the Propeity, continuing through construction and completion of the Project, and (b) after completion and prior to sale of the Ownership Units, Developer shall maintain the Property and tlie Project in compliance with applicable law and in good condition and repair to the reasonable satisfaction of South Gate.
20. PERA/nTTED
TRANSFERS:
Prior to Project completion, the Developer shall not have the right to assign or transfer all or any portion of its rights and obligations under the DDA, other tlian an assignment to, and assumption of, the DDA by a limited partnership ("Partnership") or limited liability company ("LLC") which is affiliated with and controlled by the Developer and for which Developer is tlie managing general partner or member.
21. INDEMNIFICATION
AND INSURANCE:
The DDA will require Developer to indemnify, defend, and hold the Horising Authority and City and their elected and appointed officials, employees, officers, commissioners, directors, corinsel, partners and agents (together, "Indeinnitees") harmless from and against any liability, including, withorit limitation, liability arising as a result of properly damage, personal injury, or violation of state, federal, or local laws, arising or resulting from Developer's development, operation, and/or management of the Project,.
22. DEF AULT: The DDA will include standard remedies including, without limitation, South Gate's right to terminate the transaction ripon Developer's defarilt, subject to standard notice and cure provisions, and permitting cure rights for Developer and the Project lenders and investor.
23. TERMINATION: The DDA will include provisions providing for teimination witliout cause prior to Conveyance of the Property upon 30 days' written notice by either Paity.
[SIGNAT?JRE PAGE FOLLOWS]
MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 tpa 22
IN WITNESS WHEREOF, the parties hereto have executed this Memorandum and Initial Tei'i'ns for Disposition, Development and Operation of 9001-9019 Long Beach Boulevard Affordable Ownership and the loan of Sorith Gate fiu'ids in connection therewith as of the date first written above.
HABIT AT FOR HUMANITY OF GREATER
LOS ANGELES, a California nonprofit public
benefit cotporation
Date: By:
Erin G. Rank, President & CEO
"Authority"
SOUTH GATE HOUSING AUTHORITY,
a public body, corporate and politic
Date: By:
Joshua Barron, Chairperson
ATTEST:
SOUTH GATE HOUSING AUTHORITY
By:
Yodit Glaze, Secretary
APPROVED AS TO FORM:
By:
,,,,4Vi (-
Craig Hardwick, Assistant City Attorney
[SIGNATtJRE PAGE 1 0F 2 TO MOU]
MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 23 GG(jl,55
CITY OF SOUTH GATE, a Califoinia municipal
corporation
Date: By:
Mayor or Authorized Designee
ATTEST:
Yodit Glaze, City Clerk
APPROVED AS TO FORM:
B-y:
Craig Hardwick, Assistant City Attorney
[SIGNATURE PAGE 2 0F 2 TO MOU]
MOU for sale and development of 9001-9019 Long Beach Blvd FINAL v2 l0 24
EXHIBIT A - CONCEPTUAL SITE PLAN
MOU for sale and development of 9001-9019 Long Beacli Blvd FINAL v2
EXHIBIT A
'2,\ 25
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ROBERT DWELjE, PE
[email protected]
3'l0-821-7631
PRalECT
HABITAT FOR HLIMANITY
AFFORDABLE HOUSING
9001 LONG BEACH BLV[)
SOUTH GATE, CA 9028o
DATE
OCT 1, 2025
SCALE
1"=20'
SHEET TITLE
SITE PLAN
SHEET NUMBER
A-100
26 EXHIBIT B - SCHEDULE OF PERFORMANCE
9001-19 Long Beach Boulevard - Habitat for Humanity Pre-Conveyance Items:
Item to be Responsible TimeforPerformance Agreement
Performed Party Reference
I MOU Effective Sorith Gate and Upon fully execrited 6 Date Developer MOU
2 Submission of Developer 30 days after MOU
TentativeTract EffectiveDate
Map
3 DemolitionatSite Housing 180daysafterMOU 13
B Authority EffectiveDate
4 Developer Soil Developer To be completed 12-18
Samplingwitli months afterMOU
DTSC Grant Funds Effective Date
Performance of Developer To be completed
Remediation 12-18monthsafter
Activities required completion ofsoil
byDTSC samplinganddirection
from DTSC as to
remediation activities
required
5 Request"No Housing Notlaterthan60days 13
Further Action" Authority after completion of all letter from DTSC soil sampling and other
remediation activity
required by DTSC
6 0btain appraisal of South Gate Not later than 30 days Property afterRequestforNo
Further Action Letter
7 Finalize and All Parties 6 months after MOU
ExecuteDDA EffectiveDate
MOU for sale and development of 9001-9019 Long Bcacli Blvd FINAL v2
EXHIBIT B
l';i 27
8 Escrow Opening South Gate, 5 days from Receipt of Date Developer, and No Furtlier Action
Escrow Holder letter
9 Provide Housing As soon as practicable
Preliminaiy Title Authority following DDA
Report EffectiveDate
10 Title Notice Developer 60 days following
receipt of Preliminary
Title Report
11 Title Notice Housing 30 days following
Response Authority receipt ofTitle Notice
12 Removal of Title Housing 30 days following
Matter Authority HousingAuthority's
Title Notice Response
agreeing to remove
objectionable matter
13 Meet and Confer Housing Within 3 days
on Title Matters Authority and following receipt of Developer notice to terminate
agreement if unable or
unwilling to remove
objection to Title;
Parties to meet and
confer for up to 30 days
14 South Gate Loan City and South Gate to provide 10 Developer draft AJ-IA within 60
days of DDA Effective
Date. Entry into the
AHA Will be a
condition precedent to
Closing conveyance of
the Property under
DDA.
15 Conditions City and Within 10 days prior to 10 Precedent to Initial Developer Closing
Disbursement
MOU for sale and devclopment of 9001-9019 Long Beach Blvd FINAL v2
EXHIBIT B
28 16 Initial City Closing 10
Disbursement of
Soritli Gate Loan
proceeds
17 Subsequent City 30 days after receipt of 10
Disbursementof DrawReqriests.
Soutl'i Gate Loan
proceeds
18 DueDiligence Developer upto9monthsafterthe 18
Investigations DDAEffectiveDate
Period
19 Schematic Designs Developer 9 montlis after the DDA 15.3 Effective Date
20 Design Developer 9 months after the DDA 15.4
Development EffectiveDate
Plans
21 FinancialPlan Developer 12monthsafterthe 15.1
DDA Effective Date
22 AutliorityLoan Developer 12monthsafterthe 15.2
andDeveloper DDA Effective Date
Primary Financing;
Financing
Documents
23 Final Constniction Developer 13 months after the 15.5 Plans DDAEffectiveDate
24 Construction Developer 13 months after the 15.6 Contract DDAEffectiveDate
25 Performanceand Developer 14monthsafterthe 15.7
Payment Bonds DDA Effective Date
26 Recording of Final Developer As a Condition
Tract Map Precedent to Closing of
Escrow
MOU for sale and developmcnt of 9001-9019 Long Beacli Blvd FINAL v2
EXHIBIT B
29 27 Indemnification Developer As Condition Precedent 19 and Insurance to Closing of Escrow
28 Fortn of Developer 14 months after the 14
Homeowners DDAClosing
Association
Agreement and
CCRS
29 Government Cityand 16monthsafterthe 15.8
Approvals/Project Developer DDA Effective Date
Entitlements 15.10
30 0therFunding Developer 16monthsafterthe 16.1
Commitments DDAEffectiveDate
31 Title Company Housing Prior to Escrow Closing
Committed to Authority and Date
Issue Title Policies Developer
32 Developer Developer PriortoEscrowClosing 16
Documents Date
Submitted to
Horising Authority
(Organizational
Documents,
Constntction Contract,
Construction
Financing Documents)
33 Escrow Fee Housing 4 business days prior to
Payment Arithority and Escrow Closing Date
Developer
34 Escrow Deposits Housing 1 business day prior to Authority and Escrow Closing Date
Developer
35 Payment of Developer l business day prior to 5 Purchase Price Escrow Closing Date
MOU for safe and development of 9001-9019 Long Beacli Blvd FINAL v2
EXHIBIT B
':LU 30
Escrow Closing
Date
Housing
Authority,
Developer, and
Escrow Holder
5th day following
Escrow Holder's
receipt of written
satisfaction or waiver
of all conditions
precedent, and no
later than the later of
(i) eighteen (18)
months after the DDA
Effective Date, or (ii)
forty five (45) days
after receipt of a No
Further Action Letter.
Post-Conveyance Items
37 Escrow Holder Escrow Holder Following Close of Repoit to IRS Escrow and prior to last
date required by IRS
38 Cancellation Horising 3 business days of
Instnictions Authority and Escrow Holder's written Developer request
39 Return of Funds Developer 10 days of receipt by andDocuments Parties ofEscrow
settlement statement
40 Project Developer 180 days from Close of 17
Commencement Escrow
41 Project Developer 18monthsafter 17
Completion Project
Commencement
Per Section XX ofAgreeinent.' Any modification of a time or date for performance of a particular taslc or satisfaction of a particular condition tliat does not result in a change of inore than 180 days rnay be approved on behalf of the Housirig Authority by the City Manager, in his or her reasonable discretion. A modification of a time or date for performance of a task or satisfaction of a condition (or a series of such modifications) that results ii;i an aggregate change of more than 180 days shall be subject to the approval of the City Council, in its sole and absolute discretion. if performance of a task or satisfaction of a condition in the Schedule Performance is preverrted or delayed by Unavoidable Delays, the deadline for coinpletion of such task or satisfaction of such condition shall be extended by the period of such Unavoidable Delays.
MOU for safe and development of 9001-9019 Long Beacli Blvd FINAL v2
EXHIBIT B
'1'7 31