ACTION:
____________________________
Clerk/Secretary
Department: City Manager Item No: D1
Prepared by: Imelda M. Huerta, Assistant City Manager Meeting Date: March 25, 2025 Approved by: John Conley, City Manager Agenda Location: Discussion S
UBJECT: OPERATION HOPE-NORTH COUNTY REQUEST FOR FUNDING RE
COMMENDATION: Discuss the request for appropriation of funds for Operation HOPE-North County.
CO
RRELATION TO CITY COUNCIL GOALS: Homelessness & Housing.
PRIOR ACTION: O
n October 2, 2012, the City adopted Resolution 2012-137 which approved a forgivable loan agreement with Operation Hope in the amount of $225,000. (Vote: 5-0) O
n January 26, 2021, the City adopted Resolution 2021-7 which approved an additional forgivable loan agreement with Operation Hope in the amount of $200,000. (Vote: 5-0) S
TATEMENT ON THE SUBJECT: Councilmember Contreras and Councilmember Fox requested the City Manager place a discussion item on an upcoming agenda to discuss a request from Operation HOPE-North County for one-time funding support in the amount of $338,459 to assist with continued services to families in need for the remainder of their current fiscal year (through June 30, 2025), as described in Exhibit 1.
Should funding be granted, Operation HOPE-North County staff will report back to City Council regarding how funding was utilized and will present on its impact to their program and community.
F
ISCAL IMPACT: If the request is granted, staff would utilize current available funds from the Fiscal Year 2023/24 Year End Fund balance appropriated for safe parking, account no.0010355.521040.YE24.
E
XHIBITS:
1. Letter from Operation HOPE-North County dated February 25, 2025
2. Operation HOPE-North County Presentation Slides
3. October 2, 2012 Agenda Report, Loan Agreement with Operation HOPE for the Purchase of Property Located at 857-859 E. Vista Way
4. January 26, 2021 Agenda Report, Operation HOPE-North County Loan Agreement AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
03/25/2025
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REVISED
February 25, 2025
Vista City Council
City of Vista
200 Civic Center Drive
Vista, CA 92084
Subject: Request for Financial Support – Strengthening Vista’s Only Family Shelter Dear Vista City Council,
On behalf of Operation HOPE-North County, I want to express our deepest appreciation for the City of Vista’s steadfast support since our inception in 2003. Your commitment to our mission has been instrumental in ensuring that families experiencing homelessness in our community receive the shelter, resources, and holistic support they need to regain stability. We are incredibly grateful for your partnership and belief in the power of hope, resilience, and the opportunity for every family to build a brighter future.
Your support is not just a contribution—it is an investment in the well-being of our community. By helping families regain stability and self-sufficiency, we reduce the long-term social and economic costs of homelessness, creating an immense return on investment for the City of Vista.
As the only family shelter in Vista, Operation HOPE-North County plays a critical role in providing emergency housing and comprehensive support services to parents and children facing homelessness.
Our FY25 budget (July 1, 2024 – June 30, 2025) projects $1,353,839 in expenses, with 66% or $894,639 raised or secured to date (12% from individual donors, 15% from government support, 24% from foundations, 10% from events, 5% from local businesses) leaving us with 34% or $460,360 funding gap.
We respectfully request the City of Vista’s financial support to help us bridge this gap. A contribution of 25% or $338,459 of our FY25 budget would be invaluable in ensuring that we can continue providing life-changing services to families needing them most. On average, we spend $93 per night for a bed count of 40 clients in our twelve rooms, which equals $113,150 per month to run our facilities.
This amount would cover our costs for the last quarter of our fiscal year (April 2025-June 2025), ensuring our doors remain open for services and our employees can continue the essential work they do.
Impact & Community Benefit
With your support, we will be able to:
● Continue to provide shelter and wraparound services to at least 150 clients annually, 60% of whom are children
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● Ensure at least 60% of our families transition into stable housing or a continuum of care. ● Maintain our weekly food pantry, which serves 150 community members in need. ● Offer after-school enrichment programs for all children Monday–Thursday, fostering academic and emotional growth.
● Equip parents with financial literacy courses, parenting workshops, and 1:1 case management to build long-term self-sufficiency.
● Serve hot meals daily and provide supplemental breakfast and lunch items to ensure no child or parent goes hungry.
Long-Term Sustainability
We want to assure the City Council that this is a one-time request as we work diligently to strengthen our long-term financial sustainability. We are actively prioritizing strategic planning efforts that include diversifying our revenue streams, building stronger relationships with local businesses and corporations, expanding fee-for-service options, and exploring opportunities for growth to enhance our impact.
Additionally, we are deepening donor engagement and broadening our grant funding sources to ensure a more resilient financial foundation. Through these efforts, we aim to safeguard against future funding shortfalls while continuing to provide vital services to families in crisis. Your support at this critical moment will help us solidify these plans and create a stronger, more self-sufficient future for Operation HOPE-North County and the families we serve.
Understanding the Funding Gap
This financial shortfall results from several factors, including staffing gaps, leadership transitions, and shifts in donor giving. We have seen many longtime donors reduce their contributions, likely due to economic uncertainty. At the same time, transitioning leadership and rebuilding our development team have impacted our fundraising capacity. Revitalizing our fundraising strategy under new leadership will take time, but we remain hopeful and optimistic. We recognize that relationship-building, strategic planning, and donor engagement are long-term efforts, and we are fully committed to strengthening these areas to ensure a more sustainable future.
We believe that every family deserves the opportunity to build a stable, self-sufficient future, and with your continued investment in our mission, we can strengthen the safety net for Vista’s most vulnerable residents.
I welcome the opportunity to meet with you and discuss how we can further collaborate to make a lasting impact. Thank you for your time, dedication, and unwavering support of Operation HOPE-North County and the families we serve.
In Service,
Tiffany “Esperanza” Zapico
Executive Director
Operation HOPE-North County
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INVESTING IN OUR
COMMUNITY’S FUTURE
SECURING FUNDING TO SUSTAIN, STRENGTHEN AND EXPAND OUR SERVICES. 03/25/2025
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OPERATION HOPE-NORTH COUNTY
PROUDLY SERVING THE VISTA COMMUNITY
SINCE 2003
One of the region's few and most
e
stablished high-barrier family shelters
OHNC has over 20 Years of Impact!
With the addition of pantry and boutique
s
ervices, the organization now supports
an additional: 650 families / 2,000
individuals annually and distributes over
100,000 pounds of food!
OHNC supports both both adults and
ch
ildren serving 1,800 individuals
served since inception (150 individuals
from 50 families annually)!
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OUR COMMITMENT TO ADDRESSING HOMELESSNESS
IN ALIGNMENT WITH VISTA’S STRATEGIC PLAN
Collaborative Action: A shared framework and clear plan unite stakeholders in preventing and reducing homelessness while enhancing community well-being. Measurable Impact: We implement fiscally responsible strategies and track outcomes to ensure meaningful progress.
Community Well-Being: Safety is a priority—for residents, businesses, and individuals experiencing homelessness.
Long-T erm Solutions: We advocate for permanent housing with supportive services tailored to individual needs.
Trust-Based Case Management: Every person’s situation is unique, requiring personalized support. We prioritize trauma-informed and person-centered approaches treating people with dignity and respect along their journey. Community Engagement: Success depends on public awareness and involvement. Regional Collaboration: Addressing homelessness requires a coordinated effort and shared resources.
Adaptability: Our plan is flexible and will evolve based on ongoing assessments and changing needs.
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EXPANDING SUPPORT FOR VISTA’S
GROWING NEEDS
The need for expanded services to better
support our community is critical, as demand
has exceeded our current capacity. Last year,
we were unable to assist 144 single women
and 167 families due to resource constraints.
Although all key service areas require
attention, Vista stands out as a region with
considerable needs, accounting for 30% of the
individuals and families served since 2023.
We are committed to serving individuals and
families experiencing homelessness across
North County, with a strong focus on
addressing the unique challenges in Vista.
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EMPOWERING INDEPENDENCE & LONG-TERM
SUCCESS
Unlike other high- barrier shelters that impose
restrictive and time-intensive requirements,
OHNC empowers individuals to regain
independence quickly.
Our approach balances hig h support with
a focus on liberation, equipping residents
with the necessary tools for long-term
stability.
OHNC’s dist inguished model tailors
services to the unique and evolving needs of
each resident.
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OUR IMPACT & KEY DATA POINTS
75%+ of participants improve their financial
and job readiness skills.
65% + achieve their housing and
income goals.
50%+ transition into stable housing
100% of children/youth will be offered
educational support services
100% of children/youth will be connected to
other supportive services to cater to their
individualized needs
60%
40%
Population Distribution of Adults and Children
Children
$78.37
Adults
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OHNC COST-EFFECTIVE NIGHTLY STAY
COMPARISON (FY24)
0 20
40 60
80 100
120
Operation HOPE-
North County $78
La Posada de
Guadalupe $85
Haven House $108
Interfaith Family
Shelter $88
Interfaith Shelter
Network $75
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BUDGET OVERVIEW ANNUAL OPERATING
BUDGET FY24-25:
$1,355,000
Churches
2%
Organizations
4% Corporate Donors
2%
Foundations
46%
Government
17%
Campaigns
3%
Individual Donors
26%
Secured Funding: $894,000 Churches
Organizations
Corporate Donors
Foundations
Government
Campaigns
Individual Donors
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ADDRESSING THE CRITICAL NEED FOR
FUNDING
Staff transitions
The Executive Director role and other key roles at OHNC were vacant for several months in FY24/25, delaying fundraising strategies and momentum with key stakeholders Economic Uncertainty & Election Impact
According to the Federal Reserve Bank of Richmond (2024) economic fluctuations, particularly during election cycles, create uncertainty in funding and donor confidence. Potential changes in policies affecting nonprofit funding, tax incentives for donors, and grant opportunities. Decrease in Major Donors
A noticeable decline in contributions from major donors has impacted financial sustainability. Possible causes: economic downturn, and shifting donor priorities. Rising Costs & Inflation
Increased costs of food, supplies, vendor contracts, and operational expenses strain the budget. Inflation impacts service delivery, making it more expensive to maintain existing programs. Restricted Funding
A significant portion of funding comes with restrictions, limiting flexibility in program allocation. Grants and donations often specify use, preventing funds from being used for urgent operational needs. 03/25/2025
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SUCCESS STORIES & WORDS OF
GRATITUDE
“Thank you for giving me and my kids another chance. This program is life-changing—a safe place with accountability. I’m grateful for the high standards that protected my family.” “Y our support makes an immeasurable impact on families like mine. If you have any doubts, come and see—your
contributions are changing lives and the futures of little ones like our daughter.”
“Y our support helps families like mine overcome so many hardships, and you help us reach our goals. Thanks to you, my children and I feel secure and our future looks hopeful.” 03/25/2025
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OUR COMMITMENT TO ACCOUNTABILITY
Strategic Planning Beginning in April: Engaging stakeholders to refine goals, assess programs, and align with sustainable growth strategies.
Expanding Pathways from Low-Barrier Services to High- Barrier Services: Exploring adding a low barrier services to provide immediate, accessible housing, and creating a pathway from crisis support to long term stability through case management, workforce development, and wraparound services
Strengthening Short-T erm Housing Support: Enhancing
emergency shelters, rental assistance, and partnerships to ensure rapid housing access while continuously improving facilities, programs, and client services for greater impact..
Ensuring Long-T erm Impact & Sustainability: Diversifying funding, leveraging data-driven decisions, and fostering partnerships for lasting community change.
Ongoing participation in the City of Vista Homeless
Committees, with regular reporting on organizational
impact through our impact and fiscal reports.
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On behalf of Operation HOPE-North County,
we want to express our heartfelt gratitude for your
incredible partnership and support.
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Department:
AGENDA
REPORT
Redevelopment & Housing
Prepared By: Kathy Valdez, Program Manager
John Meyer, Director
Approved By: Patrick Johnson, City Manager
[8J CITY COUNCIL
□ COMMUNITY DEVELOPMENT COMMISSION
□ SUCCESSOR AGENCY
□ BUENA SANITATION DISTRICT
□ JOINT POWERS FINANCING AUTHORITY
Item No: C1 ---------
Meeting Date: October 2, 2012
Agenda Location: Consent Calendar
SUBJECT: LOAN AGREEMENT WITH OPERATION HOPE FOR THE PURCHASE OF PROPERTY LOCATED AT 857-859 E. VISTA WAY
RECOMMENDATION: Adopt City Council Resolution No. 2012- , approving a loan agreement with Operation HOPE for the purchase of property located at 857-859 E. Vista Way for the operation of an emergency winter shelter for homeless families and single women.
PRIOR ACTION: On May 8, 2012, adopted City Council Resolution No. 2012-64, approving the 2012- 2013 Annual Action Plan, authorizing submittal of the Plan to the U.S. Department of Housing and Urban Development and authorizing the City Manager to approve and execute all documents related to the implementation of said Plan; and adopted City Council Resolution No. 2012-65, approving the revised 2011-2012 Community Development Block Grant Annual Action Plan (Votes: 5-0).
On March 27, 2012, conducted a public hearing regarding the proposed 2012-2013 Annual Action Plan and revised 2011-2012 Annual Action Plan and opened a 30 day public review period (Vote: 5-0).
On November 8, 2011, accepted the Fiscal Year 2012/13 Community Development Block Grant (CDBG) program funding priority recommendations (Vote: 5-0).
STATEMENT ON THE SUBJECT: The City of Vista is a Community Development Block Grant (CDBG) entitlement jurisdiction, and as such receives funding directly from the U.S. Department of Housing and Urban Development (HUD) for housing and community development activities that benefit low and moderate income individuals. Per HUD guidelines, the City developed and adopted a five year Consolidated Plan identifying the activities that will be conducted to further our housing and community development goals. In addition, an Annual Action Plan, which must be consistent with the Consolidated Plan, is developed and adopted each year.
On May 8, 2012, the City Council approved the 2012-2013 Annual Action Plan (2012 Annual Plan) and revised the 2011-2012 Annual Action Plan (2011 Annual Plan), allocating $150,000 and $75,000 respectively to Operation HOPE (Homeless Outreach Providing Encouragement) for the acquisition of property to operate an emergency winter shelter for homeless families and single women. This activity is consistent with the City's 2009-2014 CDBG Consolidated Plan.
ACTION: Approved above recommendation, adopted City Council Resolution No. 2012-137.
Vote: 5-0
Clerk/Secretary
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Department:
AGENDA
REPORT
Redevelopment & Housing
Prepared By: Kathy Valdez, Program Manager
John Meyer, Director
Approved By: Patrick Johnson, City Manager
[8J CITY COUNCIL
□ COMMUNITY DEVELOPMENT COMMISSION
□ SUCCESSOR AGENCY
□ BUENA SANITATION DISTRICT
□ JOINT POWERS FINANCING AUTHORITY
Item No: C1 ---------
Meeting Date: October 2, 2012
Agenda Location: Consent Calendar
SUBJECT: LOAN AGREEMENT WITH OPERATION HOPE FOR THE PURCHASE OF PROPERTY LOCATED AT 857-859 E. VISTA WAY
RECOMMENDATION: Adopt City Council Resolution No. 2012- , approving a loan agreement with Operation HOPE for the purchase of property located at 857-859 E. Vista Way for the operation of an emergency winter shelter for homeless families and single women.
PRIOR ACTION: On May 8, 2012, adopted City Council Resolution No. 2012-64, approving the 2012- 2013 Annual Action Plan, authorizing submittal of the Plan to the U.S. Department of Housing and Urban Development and authorizing the City Manager to approve and execute all documents related to the implementation of said Plan; and adopted City Council Resolution No. 2012-65, approving the revised 2011-2012 Community Development Block Grant Annual Action Plan (Votes: 5-0).
On March 27, 2012, conducted a public hearing regarding the proposed 2012-2013 Annual Action Plan and revised 2011-2012 Annual Action Plan and opened a 30 day public review period (Vote: 5-0).
On November 8, 2011, accepted the Fiscal Year 2012/13 Community Development Block Grant (CDBG) program funding priority recommendations (Vote: 5-0).
STATEMENT ON THE SUBJECT: The City of Vista is a Community Development Block Grant (CDBG) entitlement jurisdiction, and as such receives funding directly from the U.S. Department of Housing and Urban Development (HUD) for housing and community development activities that benefit low and moderate income individuals. Per HUD guidelines, the City developed and adopted a five year Consolidated Plan identifying the activities that will be conducted to further our housing and community development goals. In addition, an Annual Action Plan, which must be consistent with the Consolidated Plan, is developed and adopted each year.
On May 8, 2012, the City Council approved the 2012-2013 Annual Action Plan (2012 Annual Plan) and revised the 2011-2012 Annual Action Plan (2011 Annual Plan), allocating $150,000 and $75,000 respectively to Operation HOPE (Homeless Outreach Providing Encouragement) for the acquisition of property to operate an emergency winter shelter for homeless families and single women. This activity is consistent with the City's 2009-2014 CDBG Consolidated Plan.
ACTION:
Clerk/Secretary
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MEETING DATE: October 2, 2012 PAGE: 2
SUBJECT: LOAN AGREEMENT WITH OPERATION HOPE FOR THE PURCHASE OF PROPERTY LOCATED AT 857-859 E. VISTA WAY
Funding will be provided in the form of a no interest, deferred, and forgivable loan. The term of this loan shall be for a period of twenty (20) years. The loan shall be forgivable upon expiration of the term of the loan, if the property has been maintained and operated as an emergency winter shelter consistent with the conditions set forth in the Special Use Permit, or operated as another facility eligible for CDBG funds with prior approval from the City of Vista and HUD.
Operation HOPE is a nonprofit organization that has operated the City's only emergency winter shelter for the past nine years in a rented building located at 123 W. Orange Avenue. Operation HOPE has received the required funding, or a commitment of funding, to purchase the property at 857-859 E. Vista Way, allowing the organization to put the majority of future dollars towards direct services for homeless families. They have vacated the Orange Avenue location and have requested the City's approval to permanently move their emergency winter shelter to the new location.
FISCAL IMPACT: The City's Fiscal Year 2012/13 operating budget appropriated funds in the amount of $225,000 into the Facility Improvements & Acquisition expenditure account (No. 1030360.5 31500.00164) within the CDBG budget unit for the purpose of making the loan. The loan has no interest attached to it and no repayment by Operation HOPE will be needed if the facility, if operated as proposed for a minimum of 20 years.
EXHIBITS:
1. City Council Resolution No. 2012- , approving the loan agreement with Operation HOPE for the purchase of property located at 857-859 E. Vista Way for the operation of an emergency winter shelter for homeless families and single women
2. Loan Agreement with Operation HOPE
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RESOLUTION NO. 2012-
A RESOLUTION OF THE CHARTERED CITY OF VISTA, CALIFORNIA,
APPROVING A LOAN AGREEMENT WITH OPERATION HOPE FOR THE
PURCHASE OF PROPERTY LOCATED AT 857-859 E. VISTA WAY FOR
THE OPERATION OF AN EMERGENCY WINTER SHELTER FOR
HOMELESS FAMILIES AND SINGLE WOMEN
The City Council of the chartered City of Vista does resolve as follows:
1. Findings. The City Council hereby finds and declares the following:
A. The City of Vista has received funding from the U.S. Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG) Program for housing and community development activities benefiting low and moderate income individuals.
B. Pursuant to Part 91 of Title 24 of the Code of Federal Regulations, the City has submitted a consolidated housing affordability strategy and community development plan (the Consolidated Plan) for the five year period commencing with the grant year, including an annual action plan (Action Plan) for the immediate ensuing fiscal year.
C. It is the City's desire to benefit homeless families and single women.
D. The City of Vista desires to enter into a loan agreement with Operation HOPE to purchase property to operate an emergency winter shelter for homeless families and single women.
2. Action
A. The loan agreement between the City of Vista and Operation HOPE, in the amount of $225,000, is hereby approved.
B. The Mayor is authorized to execute the agreement.
[Continued on the Following Page]
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RESOLUTION NO. 2012-
CITY COUNCIL OF THE CHARTERED CITY OF VISTA
PAGE 2
PASSED AND ADOPTED by the City Council at a meeting held on the 2nd day of October, 2012, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
Darold Pieper, City Attorney
By: _________ _
APPROVED
Jonathan B. Stone
0924 092512
JUDY RITTER, Mayor
ATTEST:
Marci Kilian, City Clerk
By:-----------
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RECORDING REQUESTED BY:
City of Vista
WHEN RECORDED MAIL TO:
City of Vista
City Clerk's Office
Attn: City Clerk
200 Civic Center Drive
Vista, CA 92084
(Space above for Recorder's Use)
AGREEMENT BETWEEN THE CITY OF VISTA AND OPERATION HOPE
FOR 2012-2013 FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS THIS AGREEMENT, made and entered into as of this __ day of _______ _ 2012, ("this Agreement") by and between the CITY OF VISTA, a chartered municipal corporation, hereinafter referred to as "City", and OPERATION HOPE, a non-profit corporation, hereinafter referred to as "Subrecipient".
RECITALS
WHEREAS, the City has applied for and received funds from the United States Government under Title I of the Housing and Community Development Act of 1974, Public Law 93-383 as amended to fund eligible activities which benefit persons of low and moderate income; and,
WHEREAS, the City wishes to provide assistance to non-profit public service providers who offer services for lower income Vista residents; and, WHEREAS, the Subrecipient can provide these basic services for lower income persons with some assistance from the City through the operation of a winter homeless shelter ("Winter Shelter'') on property located at 857-859 E. Vista Way, Vista, California 92084 ("Real Property"); and
WHEREAS, the Subrecipient intends to purchase the Real Property using a loan of Community Development Block Grant funds in the amount of Two Hundred Twenty Five Thousand Dollars ($225,000), as more particularly described in Section 1 ("Loan"), on the terms described herein so it can operate the Winter Shelter in accordance with this Agreement; and WHEREAS, the Loan will be evidenced by a promissory note ("Promissory Note") to be executed by Subrecipient and the Note will be secured by a first position deed of trust to be recorded against the Real Property, listing the City as beneficiary ("Deed of Trust"); and WHEREAS, the amount of the Loan will be deposited to a certain escrow account established for the purchase of the Real Property ("Escrow Account") and will be released from the Escrow Account only when sufficient funds are available to immediately to vest in Subrecipient title in the Real Property with no encumbrances on Real Property other than the Deed of Trust; and
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WHEREAS, the City has determined that the activity proposed by Subrecipient is exempt from environmental review under 24 CFR Section 58.34(a)(12); and, WHEREAS, the U.S. Department of Housing and Urban Development ("HUD") has approved the City's Annual Consolidated Plan for Community Development Block Grant funds (hereinafter referred to as the "Annual Consolidated Plan").
NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Subrecipient agree as follows:
1. STATEMENT OF WORK
The City, upon execution of this Agreement, will allocate 2011-2012 federal Community Development Block Grant ("CDBG") funds, in the amount of one hundred fifty thousand dollars ($150,000), and 2012-2013 federal CDBG funds in the amount of seventy-five thousand ($75,000), to the Subrecipient for the acquisition of Real Property for an emergency winter shelter for homeless families and single women. Such amount, comprising the Loan, will be deposited to the Escrow Account. The Loan will be used by Subrecipient for the sole purpose of paying a portion of the purchase price for the Real Property so that Subrecipient can operate a Winter Shelter on that property. The payment of the purchase price and the acquisition of the Real Property shall occur during the period beginning July 1, 2012 and ending June 30, 2013. The Subrecipient agrees to use all federal funds provided by the City to the Subrecipient pursuant to the provisions of this Agreement, the Scope of Work, attached hereto as Exhibit "A", and in accordance with the terms of the Annual Consolidated Plan.
Every effort shall be made by the Subrecipient to expend the allocated funds in their entirety by April 1, 2013. If the Subrecipient will be unable to expend all of the funds allocated to the project by the noted date, the Subrecipient shall request an extension from the City for continued use of the funds on the approved project based on progress made by the Subrecipient towards completing the subject project. The City may agree to grant the extension or notify the Subrecipient that in its sole discretion the funds must be reallocated to another eligible activity due to slow project progress. At City option, it may direct the Escrow Agent to return all amounts it deposited into the Escrow Account if Subrecipient has not acquired sole fee title to the Real Property on or before December 15, 2012.
2. TERM OF LOAN
The term of this Loan shall be for a period of twenty (20) years, commencing on the date the Promissory Note is executed and the Deed of Trust is recorded ("Loan Origination Date"), and shall expiring on the twentieth (20th) anniversary of the Loan Origination Date ("Expiration Date"). Subrecipient acknowledges that the subject loan is given in connection with the purchase of the Real Property for the emergency winter shelter only.
The Loan is not assumable by transferees of the Real Property unless prior written approval is granted by the City Council. The Loan shall be due and payable in full upon 1) the date the Real Property is first sold, transferred or leased to a third party, , 2) upon failure of Subrecipient to operate an emergency winter shelter for homeless families and
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3. single women on the Real Property in the manner described in this Agreement and in Exhibits A and B; or 3) the failure to correct any breach of this Agreement, including its Exhibits, within ten (10) days of receiving written notice of such a breach. The non interest bearing loan shall be forgivable on the Expiration Date if the Real Property has been maintained and operated as an emergency winter shelter consistent with the conditions as set forth within this Agreement, or operated as another facility eligible for CDBG funds with prior approval from HUD and the City of Vista. The Promissory Note to be executed by Subrecipient shall be in the form of the promissory note attached hereto as Exhibit C, Form of Promissory Note, which is incorporated herein by this reference. The Promissory Note shall be secured by a Deed of Trust and Security Agreement in the form attached hereto as Exhibit D, Form of Deed of Trust, which is incorporated herein by this reference.
DISBURSEMENT OF FUNDS
Provided that the "Loan Preconditions" are first satisfied, the City shall deposit the amount of the Loan into an Escrow Account for necessary and reasonable costs related to the acquisition of Real Property for a Winter Shelter. The necessary and reasonable costs shall not exceed a total of $225,000. Deposit of funds into the escrow account shall not be made until all of the following "Loan Preconditions" are completed to the satisfaction of the City's Redevelopment and Housing Director:
a. (1) Subrecipient has first obtained a special use permit authorizing it to operate a Winter Shelter on the Property; (2) upon release of the amount comprising the Loan, fee simple title in the Real Property shall vest exclusively in Subrecipient and there shall be no financial encumbrances against the property other than that represented by the Deed of Trust securing the Loan in favor of the City as beneficiary; (3) Subrecipient shall not be in breach of any provisions of this Agreement; and (4) Subrecipient shall hold all land use entitlements, licenses, rights and other approvals needed to operate the Winter Shelter in accordance with this Agreement and all applicable laws or regulations. b. Subrecipient shall submit a Voluntary Acquisition Notice to the owner of the property proposed for acquisition with registered receipt and certification of delivery documentation. The Notice shall be provided to the City in a form in compliance with federal relocation guidelines. Subrecipient is responsible for ensuring that the property acquisition meets all federal and state relocation requirements. Any residential structure on property to be acquired shall be owner occupied or vacant. c. Subrecipient shall submit to City an appraisal of the property proposed for acquisition, with an option or agreement to purchase the property. The option or agreement to purchase the property must be equal to the appraised value of the property, or documentation must be submitted to justify why the proposed purchase price is higher or lower than the appraised value.
d. Subrecipient shall execute and deliver to the City a Deed of Trust and Security Agreement and Promissory Note, and any other documents and instruments required to be executed and delivered to secure said loan, all in form and substance satisfactory to the City Attorney for the City of Vista. The Deed of Trust to secure the loan shall be recorded against Subrecipient's fee interest in the Land described herein.
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Upon completing the above conditions to the satisfaction of the Redevelopment and Housing Director, the Subrecipient may submit a request for the deposit the amount of the Loan into an escrow account to acquire the proposed property anytime after this agreement is approved and shall include documentation to verify costs or expenditure of funds is consistent with this Agreement, the Statement of Work, the Annual Consolidated Plan, and with all applicable Federal, state, and local rules and regulations governing these funds. Buyer's Estimated Settlement Statement, construction estimates, receipts, and paid invoices including an itemized statement of all costs are samples of appropriate methods of documentation.
4. PROGRAM INCOME
5. The Subrecipient shall report, to the City, any interest, or other income, earned as a direct result of the use of federal CDBG funds for the program outlined within this agreement. All reported program income may be retained by the Subrecipient for costs related to the subject program activities. However, the program income, retained by the Subrecipient, must be expended before additional funds are requested from the City.
The requirements are set forth in 24 CFR Section 570.504 which is incorporated herein by reference.
LABOR, MATERIALS AND SUPPLIES:
The Subrecipient or its agents, contractors, subcontractors, management agent or other designees of Subrecipient shall furnish all labor, materials and services and bear all expenses necessary to provide the subject emergency winter shelter as outlined in this Agreement. Under this Agreement, the City's only financial obligation to the Subrecipient is to provide the CDBG funds of $225,000 as allocated by the City Council for program years 2011-2012 and 2012-2013.
6. RECORDS AND REPORTS
The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR Section 570.506 that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:
a. Records providing a full description of each activity undertaken; b. Records demonstrating each activity undertaken meets one of the National Objectives of the CDBG program;
c. Records required to determine the eligibility of activities; d. Records demonstrating compliance with 24 CFR Section 570.505 regarding change of use of real property acquired or improved with CDBG assistance; e. Records demonstrating compliance with the requirements in 24 CFR Section 570.606 regarding acquisition, displacement, relocation, and replacement housing; f. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program;
g. Documentation of all CDBG funds received from the City, eligible expenses incurred for administration of each activity, and other financial records as required by 24 CFR Section 570.502, and 0MB (the United States Office of Management and Budget)
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Circular A-11 0; and,
h. Any other related records as the City shall require to demonstrate compliance with applicable Federal, state, and local rules and regulations governing these funds.
The Subrecipient shall submit quarterly "Progress Reports" within fifteen (15) calendar days of the end of each quarter for the full term of this Agreement. The reports must include sufficient information to assist the City in monitoring the Subrecipient's performance. The Subrecipient must demonstrate satisfactory performance prior to reimbursement for expenditures.
At a minimum, the performance reports shall include the following information:
a. Total number of persons/households participating in the program during reported period;
b. Total number of participants from Vista;
c. Number of low/moderate income Vista persons/households participating in the program during the reporting period;
d. Age and ethnic background of participants; and,
e. Summary of program(s) provided to Vista participants.
The Subrecipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include at the minimum client name, address, ethnicity, income level or other basis for determining eligibility, and a description of the service provided. This data shall assist the Subrecipient in completing the required quarterly progress reports to be submitted to the City.
The Subrecipient shall maintain separate accounting records for the federal CDBG funds provided by the City. The City, Federal Granter Agency, Comptroller General of the United States, or any of their duly-authorized representatives shall have access to all books, documents, papers and records maintained by the Subrecipient which directly pertain to the above project for the purpose of audit, examination, excerpts and transcriptions.
Unless otherwise notified by the City, the Subrecipient shall retain all financial records, supporting documents and statistical reports related to the project identified under this Agreement for a period of five (5) years after the termination of all activities funded under this Agreement. All records subject to litigation, claims, audit findings, negotiations, or other actions must be retained for five (5) years from the date such action commenced or until completion of the action and resolution of all issues by the appropriate officials and verified by official written notice to the Subrecipient, whichever occurs later.
If the Subrecipient shall receive more than $300,000 in total federal funds in one fiscal year from the City of Vista and/or any other city or agency, the Subrecipient is required to submit a Single Audit Report. As required by the Federal Single Audit Act, the Subrecipient shall be required to submit, to the City, a comprehensive financial audit prepared by an independent, neutral third-party auditor. The audit shall cover financial operations of the Subrecipient for the term of this Agreement and is due not later than one year after expiration of the Agreement. The Subrecipient shall also be required to submit a second audit for the following period covered under the fiscal year beginning July 1, 2012 and ending June 30, 2013 for any funds received in fiscal year 2012-2013 per this Agreement.
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7. PROGRAM REQUIREMENTS
The Subrecipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the Housing and Urban Development regulations concerning Community Development Block Grants). The Subrecipient also agrees to adhere to the terms of the City's CDBG Application and Subrecipient Agreement on file at the Redevelopment and Housing Department and with assurances and agreements made, by the City to the United States Department of Housing and Urban Development of which the Subrecipient is given notice.
The Subrecipient shall comply with applicable Uniform Administrative Requirements as described in 24 CFR Section 570.502, the federal regulations for the CDBG Program; the federal requirements are set forth, by reference, as a provision of this Agreement.
The Subrecipient shall carry out all activities in compliance with all Federal laws and regulations as described in Subpart K of the CDBG Program Regulations, such as affirmatively furthering fair housing, labor standards (Davis Bacon Act), displacement, relocation and acquisition, and employment and contracting opportunities, except that:
a. The Subrecipient will not assume the City's environmental responsibilities as described in 24 CFR Section 570.604; and
b. The Subrecipient will not assume the City's responsibility for initiating the review process required under the provisions of 24 CFR Section 52.
The provisions of Subpart K, of the CDBG Program Regulations, incorporated herein by reference, are a condition of this Agreement.
The Subrecipient shall comply with and make good faith and reasonable efforts to carry out the purposes of Executive Order 12166 relating to "Improving Access to Services by Persons with Limited English Proficiency.
8. CHANGES IN USE OF FUNDS
9. Changes in the use of CDBG funds must be approved by the City Council and the U.S.
Department of HUD. If the Subrecipient desires a change in the use of the CDBG funds following approval of this Agreement, a written request must be submitted to the City for review by the City Council. No change in use of the CDBG funds will be permitted without prior approval of the City Council.
CHANGES IN USE OF PROPERTY
Subrecipient shall use the subject property for an emergency winter shelter in Vista. Any change in use for the subject property shall require approval of the City Council and the U.S. Department of HUD.
10. NONDISCRIMINATION CLAUSE
The Subrecipient shall comply with all state and federal laws regarding nondiscrimination in the provision of services and the equal opportunity employment of personnel.
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11. SUSPENSION AND TERMINATION OF AGREEMENT
In accordance with 24 CFR Sections 85.43 and 85.44, this Agreement may be suspended or terminated if the Subrecipient fails to comply with any term(s) of the award. 24 CFR Sections 85.43 and 85.44 are incorporated herein by reference, as provisions of this Agreement.
12. REVERSION OF ASSETS
Upon expiration of the Agreement, the Subrecipient shall transfer to the City any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG funds. The Subrecipient shall be required to use any real property under the Subrecipient's control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000 to either be:
a) Used to meet one of the national objectives in 24 CFR Section 570.208 of the federal regulations until five (5) years after expiration of the Agreement; or, b) Disposed of in a manner that results in the City being reimbursed in the amount of the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition, or improvement to, the property. Reimbursement is not required after the period of time specified in paragraph (a) of this section.
13. HOLD HARMLESS AGREEMENT
The City, its officers, and employees shall not be liable for any claims, liabilities, penalties, fines, or any damage to goods, or real or personal property of any person whatsoever, nor for personal injuries or death caused by, or claimed to have been caused by, or resulting from, any intentional or negligent acts, errors or omission of Subrecipient or Subrecipient's agents, employees, or representatives arising directly or indirectly out of performance of the project outlined in this Agreement.
Subrecipient agrees to defend, indemnify, and hold free and harmless the City, its officers, employees and agents against any of the foregoing liabilities or claims of any kind and any cost or expenses incurred by the City including attorneys' fees, on account of any of the foregoing liabilities, including liabilities or claims arising out of alleged defects in any plans or specifications for the project or facility.
14. ASSIGNMENT OF AGREEMENT
Subrecipient shall not assign this Agreement or any monies due thereunder without the prior written consent of the City Council.
15. SUCCESSORS OR ASSIGNS
The provisions of this Subrecipient Agreement and all terms, conditions, and provisions hereof, including Paragraph 13, "Hold Harmless Agreement", shall inure and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns.
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16. INSURANCE
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The Subrecipient shall obtain and maintain policies of Commercial General Liability insurance and a combined policy of worker's compensation and employers liability insurance in an insurable amount of not less than one million dollars ($1,000,000) each, unless a lower amount is approved by the City Attorney or the City Manager. The insurance will be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best's Key Rating of not less than "A-:VII" or have a surplus line insurer which is on the State of California's List of Eligible Surplus Line Insurers with a current Best's Key Rating of not less than "A:X".
This insurance shall be in force during the term of this Agreement and shall not be canceled or materially changed without ten (10) days prior written notice to the City sent by certified mail. The City shall be named as an additional insured on these policies.
The Subrecipient shall furnish certificates of insurance and required endorsements to the Redevelopment and Housing Services Director before commencement of work.
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Executed by Subrecipient this _____ day of _________ , 2012.
SUBRECIPIENT:
OPERATION HOPE
a California Non-Profit Corporation
By:--------------
(sign here)
(print name/title)
By.a...:----------
(sign here)
(print name/title)
CITY OF VISTA, a chartered municipal
corporation of the State of California
By: --=-,--=,=-=-=,..,...,....�,....,.,...,,=--::,....,....,...------PA TRI CK JOHNSON City Manager
ATTEST: __________ _
MARCI Kl LIAN
City Clerk
(Proper notarial acknowledgment of execution by Subrecipient must be attached.) Agreement must be signed by one corporate officer from each of the following two groups. *Group A.
Chairman,
President, or
Vice-President
**Group B.
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
DAR OLD Pl EPER, City Attorney
BY: --------------
City Attorney
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EXHIBIT "A"
CITY OF VISTA
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
Subrecipient Name:
Address:
Project Description:
SCOPE OF WORK
OPERATION HOPE
P.O. Box 3273, Vista, CA 92085
Funds are to be provided to assist with the purchase of property for an emergency winter shelter for homeless families and single women.
Project Goals & Objectives:
1. Purchase property at 857-859 E. Vista Way and begin improvements to open an emergency winter shelter to serve homeless families and single women before December 15, 2012.
2. Provide emergency winter shelter and related services to homeless families and single women for a minimum of ninety consecutive days each year, generally December through February.
3. The shelter shall make available a minimum of 30 beds during each day of the Minimum Operating Term.
4. Maintain the property as an emergency winter shelter for homeless families and single women for the duration of the 20 year loan.
5. Project reporting:
a. Provide quarterly performance reports to the City of Vista, Redevelopment and Housing Department on the CDBG Quarterly Performance Report form as provided. b. Maintain records, invoices, and relevant statistics supporting the quarterly reports. c. Provide a final performance report, including an evaluation report of the program's success in meeting established goals, to the City of Vista Redevelopment and Housing Department within 15 days of termination of the contract date on the CDBG Annual Performance Report form as provided.
d. Provide notification to the City of any audits or investigations including results, findings, and/or liens.
6. Maintain in full force all zoning and land use entitlements required to operate the Winter Shelter in accordance with this Agreement and satisfy all conditions of those land use entitlements, including without limitation, obtaining a special use permit for the Winter Shelter.
7. Maintain the Real Property and operate the Winter Shelter in a manner fully satisfying all applicable laws, ordinances, regulations, and orders.
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EXHIBIT "B"
CITY OF VISTA
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
BUDGET
Contract Term: July 1, 2012 to June 30, 2013
Subrecipient Name: OPERATION HOPE
Address: P.O. Box 3273, Vista, CA 92085
Project Description: Funds are to be provided to assist with the purchase of property for an emergency winter shelter for homeless families and single women.
The total grant amount of $225,000 will be used to assist with the cost of purchasing property at 857-859 E. Vista Way for the emergency winter shelter.
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$225,000.00
EXHIBIT "C"
FORM OF PROMISSORY NOTE
NOTE TO BORROWER:
This Note is not assumable.
PROMISSORY NOTE
Secured by a Deed of Trust
Date: _________ _
Vista, California
857-859 E. Vista Way, Vista, CA 92084 (the "property")
FOR VALUE RECEIVED, Operation HOPE, a nonprofit corporation ("Borrower"), promises to pay to the City of Vista, a chartered municipal corporation ("City"), the principal sum of Two Hundred Twenty-five Thousand Dollars ($225,000), pursuant to the Agreement Between the City of Vista and Operation HOPE for Federal Community Development Block Grant Funds.
1. Loan Agreement. This City Promissory Note is made pursuant to a Community Development Block Grant Subrecipient Agreement dated ________________ (the "Agreement") by and between the
Borrower and the City.
2. Use of Funds. Borrower is to acquire property identified as 857-859 E.
Vista Way in the City of Vista. This Note evidences the loan made by the City to assist Borrower with the acquisition of the property, which will be operated consistent with the requirements of future permits and the Agreement governing its use.
3. Security. This Note is secured through concurrent execution of a Deed of Trust and Security Agreement, herein after referred to as Deed of Trust, and recordation of said Deed of Trust in the Office of the San Diego County Recorder.
4. Transfer or Assumption of Note. Borrower acknowledges that this Note is given in connection with the acquisition of property for use as an emergency winter shelter for homeless families and single women. Consequently, this Note is not assumable by transferees of the Property and is due and payable upon the date the property is sold or transferred, or upon: (1) failure of Subrecipient to operate the facility as an emergency winter shelter consistent with the requirements of future permits governing the use of the property and the Agreement governing its use; or (2) Subrecipient's failure to correct a breach of the Agreement within ten (10) days of receiving written notice of such breach.
5. Interest. There will be no interest charged on the Loan. 12 03/25/2025
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6. Term. The term of this loan shall be for a period of twenty (20) years. The twenty year term of the loan shall commence on the date the Promissory Note is executed and expire twenty (20) years after the date of this agreement.
7. Forgivable. The loan shall be forgivable upon expiration of the twenty year term of the loan if the facility has been maintained and operated according to terms of the Subrecipient Agreement between the City and Borrower for Community Development Block Grant Funds and consistent with the requirements of future permits governing the use of the facility for the full term of the loan.
8. Acceleration. Upon the occurrence of a default under the Subrecipient Agreement between the City and Borrower for Community Development Block Grant Funds and Deed of Trust, and expiration of all applicable notice and cure periods (an "Event of Default"), the City shall have the right to accelerate the Due Date of this Note and declare all of the unpaid principal immediately due and payable. Any failure by the City to pursue its legal and equitable remedies upon an Event of Default shall not constitute a waiver of the City's right to declare an Event of Default and exercise all of its rights under this City Note, the Subrecipient Agreement, and the Deed of Trust. Nor shall acceptance by the City of any payment provided for herein constitute a waiver of the City's right to require prompt payment of any remaining principal.
9. No Offset. Borrower hereby waives any rights of offset it now has or may hereafter have against the City, its successors and assigns.
10. Waiver: Attorneys' Fees. Borrower and any endorsers or guarantors of this City Note, for themselves, their heirs, legal representatives, successors and assigns, respectively, severally waive diligence, presentment, protest, and demand, and notice of protest, dishonor and non-payment of this City Note, and expressly waive any rights to be released by reason of any extension of time or change in terms of payment, or change, alteration or release of any security given for the payments hereof, and expressly waive the right to plead any and all statutes of limitations as a defense to any demand on this City Note or agreement to pay the same, and jointly and severally agree to pay all costs of collection when incurred, including reasonable attorneys' fees. If an action is instituted on this City Note, the undersigned promises to pay, in addition to the costs and disbursements allowed by law, such sum as a court may adjudge reasonable as attorneys' fees in such action.
11. Manner and Place of Payment. All payments of principal due under this City Note shall be payable in lawful money of the United States of America at the office of the City of Vista, Redevelopment and Housing Department, 200 Civic Center Drive, Vista, California 92084, or such other address as the City may designate in writing.
12. No Waiver by the City. No waiver of any breach, default, or failure of condition under the terms of this Note shall be implied from any failure of the City to take action with respect to such breach, default or failure or from any previous waiver of any similar or unrelated breach, default or failure.
13. Giving of Notices. Except for any notice required under applicable law to be given in another manner, any notice to Borrower provided for in this Note shall be sent certified mail, return receipt requested or express delivery service with a delivery receipt, or personally delivered with a delivery receipt obtained, and shall be deemed to be 13 03/25/2025
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effective as of the date shown on the delivery receipt as the date of delivery, the date delivery was refused, or the date the notice was returned as undeliverable. Notices shall be directed as follows:
Borrower:
Operation HOPE
P.O. Box 3273
Vista, CA 92085
Attn: Executive Director
City of Vista:
Redevelopment and Housing Department
200 Civic Center Drive
Vista, CA. 92084
Attn: Director
The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this Section.
16. Joint and Several Obligations. This Note is the joint and several obligation of all makers, sureties, guarantors and endorsers, and shall be binding upon them and their successors and assigns.
17. Controlling Law. This Note shall be construed in accordance with and be governed by the laws of the State of California.
18. Assignment by the City. The City may assign its right to receive the proceeds under this Note to any person and upon notice to Borrower by the City all payments shall be made to the assignee.
19. Invalid Provisions. If any one or more of the provisions contained in this Note shall for any reason by held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Note, and this Note shall be construed as if such invalid, illegal or unenforceable provision had never been contained in this Note.
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20. Entire Agreement. This Note (along with the Subrecipient Agreement between the City and Borrower for Community Development Block Grant Funds, and the Deed of Trust) sets forth the entire understanding and agreement of the City and Borrower and any amendment, alteration or interpretation of this Note must be in writing signed by both the City and Borrower.
IN WITNESS WHEREOF the parties hereto have caused this Promissory Note to be executed as of the day and year first written above.
BORROWER:
OPERATION HOPE,
a California Non-Profit Corporation
By:---------------
Jean Cole, Executive Director
By: ---------------
Name and Title
Agreement must be signed by one corporate officer from each of the following two groups.
*Group A.
Chairman,
President, or
Vice-President
**Group B.
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.
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RECORDING REQUESTED BY:
City of Vista
WHEN RECORDED MAIL TO:
City of Vista
City Clerk's Office
Attn: City Clerk
200 Civic Center Drive
Vista, CA 92084
EXHIBIT "D"
(Space above for Recorder's Use)
NOTE TO BORROWER:
This Deed of Trust Contains Provisions Prohibiting Assumptions
DEED OF TRUST AND SECURITY AGREEMENT
THIS DEED OF TRUST AND SECURITY AGREEMENT ("Security Instrument") is made on the ___ day of ______ , 2012, among Operation HOPE, a non-profit corporation, ("Borrower") as truster, and Eager Escrow, a California corporation ("Trustee"), and the City of Vista, a chartered municipal corporation ("the City"), as beneficiary.
The Borrower, in consideration of the promises herein recited and the trust herein created, irrevocably grants, transfers, conveys and assigns to the Trustee, in trust, with power of sale, the property located in the City of Vista, State of California, which has the address of 857-859 E. Vista Way, Vista, California, and is further described in the attached Exhibit "A" (the "Property").
TOGETHER WITH all easements, appurtenances, and fixtures now or hereafter a part of the property, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the property covered by this Security Instrument; and, TO SECURE to the City the repayment of the sums evidenced by a promissory note executed by the Borrower to the City dated ____________ , 2012 the principal sum of two hundred twenty-five thousand dollars ($225,000) (the "Note").
TO SECURE to the City the payment of all other sums, with interest thereon, advanced in accordance herewith to protect this Security Instrument; and the performance of the covenants and agreements of Borrower herein contained; and,
TO SECURE the performance of any obligations of Borrower in any other agreements with respect to the financing of the Property, the failure of which would adversely affect Beneficiary, whether or not Beneficiary is a party to such agreements.
BORROWER AND THE CITY COVENANT AND AGREE AS FOLLOWS:
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1. Borrower's Estate. That Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, that other than another security instrument benefiting the City, the Property is unencumbered. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any declarations, easements or restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring the City's interest in the Property.
2. Payment of Principal and Prepayment. Borrower shall promptly pay when due the principal of the debt evidenced by the Note. The Note contains the following provisions concerning payment of the loan under certain conditions:
No Assumptions of Note. Borrower acknowledges that the Note is given in connection with the purchase of property for an emergency winter shelter for homeless families and single women. Consequently, the Note is not assumable by transferees of the Property, but is due and payable in full on the date the Property is sold or transferred.
3. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property, which may attain priority over this Security Instrument.
Borrower shall pay these obligations on time directly to the person owed payment. Borrower shall promptly furnish to the City all notices of amounts to be paid under this Section. If Borrower makes these payments directly, Borrower shall promptly furnish to the City receipts evidencing the payments.
Borrower shall promptly discharge any other lien which shall have attained priority over this Security Instrument unless Borrower: (1) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to the City; (2) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the City's opinion operate to prevent the enforcement of the lien; or (3) secures from the holder of the lien an agreement satisfactory to the City subordinating the lien to this Security Instrument. If the City determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, the City may give Borrower a notice identifying the lien. Borrower shall satisfy such lien or take one or more of the actions set forth above within 10 days of the giving of notice.
4. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which the City requires insurance. This insurance shall be maintained in an amount equal to the replacement cost of the Property and for the periods that the City requires. The insurance carrier providing the insurance shall be licensed to do business in the State of California and be chosen by Borrower subject to the City's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, the City may, at the City's option, obtain coverage to protect the City's rights in the Property in accordance with Section 6. The City shall be named as additional insured on any such policies of insurance.
All insurance policies and renewals shall be acceptable to the City and shall include a standard mortgagee clause with standard lender's endorsement in favor of the Deed of Trust and the City as their interest may appear and in a form acceptable to the City. The City shall have the right to hold, or cause its designated agent to hold, the policies and renewals thereof, and Borrower shall promptly furnish to the City, or its designated agent, the original insurance policies or certificates of insurance, all renewal notices, and receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and the City or its designated agent. The 17 03/25/2025
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City or its designated agent may make proof of loss if not made promptly by the Borrower. The City shall receive thirty days advance notice of cancellation of any insurance policies required under this Section.
Unless the City and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the City's security is not thereby impaired. If the restoration or repair is not economically feasible or the City's security of this Deed of Trust would be impaired, the insurance proceeds shall be applied to repay the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from the City or its designated agent that the insurance carrier has offered to settle a claim, then the City or its designated agent may collect the insurance proceeds. City may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given.
5. Occupancy, Preservation, Maintenance and Protection of the Property.
Borrower shall obtain all necessary permits required to occupy, establish, and use the Property as an emergency winter shelter and maintain the property consistent with the requirements of such permits. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in breach if any forfeiture action or proceeding, whether civil or criminal, is begun that in the City's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or the City's security interest. Borrower may cure such a breach and reinstate, as provided in Section 18, by causing the action or proceeding to be dismissed with a ruling that, in the City's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or the City's security interest.
6. Protection of the City's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument or if any action or proceeding is commenced which may materially affect the City's rights in the Property, including but limited to breach under any other deed of trust encumbering the property, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the City, at the City's option, upon notice to the Borrower, may make appearances, disburse such sums and take such actions at it deems necessary to protect the value of the Property and the City's rights in the Property. The City's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs.
Any amounts disbursed by the City pursuant to this Section shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and the City agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the lesser of ten percent (10%) or the highest rate permissible under applicable law and shall be payable, with interest, upon notice from the City to Borrower requesting payment. Nothing contained in this Section will require the City to incur any expense or take any action hereunder.
7. Inspection. The City or its agent may make reasonable entries upon and inspections of the Property. The City shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
8. Forbearance By the City Not a Waiver. Any forbearance by the City in exercising 18 03/25/2025
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any right or remedy will not be a waiver of the exercise of any such right or remedy.
9. Remedies Cumulative. All remedies provided in this Security Instrument are distinct and cumulative to any other right or remedy under this Security Instrument or any other document, or afforded by law or equity, and may be exercised concurrently, independently, or successfully.
10. Successors and Assigns Bound; Joint and Several Liability. The covenants and agreements of this Security Instrument shall bind and benefit the respective successors and assigns of the City and Borrower, subject to the provisions of this Security Instrument. Borrower's covenants and agreements shall be joint and several.
11. Notices. Except for any notice required under applicable law to be given in another manner, any notice to Borrower provided for in this Security Instrument shall be sent certified mail, return receipt requested or express delivery service with a delivery receipt, or personally delivered with a delivery receipt obtained, and shall be deemed to be effective as of the date shown of the delivery receipt as the date of delivery, the date delivery was refused, or the date the notice was returned as undeliverable.
Notices shall be directed as follows:
Borrower:
Operation HOPE
P.O. Box 3273
Vista, CA 92085
Attn: Executive Director
City of Vista:
Redevelopment and Housing Department
200 Civic Center Drive
Vista, CA 92084
Attn: Director
The parties may subsequently change addresses by providing written notice of the change in address to the other party in accordance with this Section.
12. Governing Law. This Security Instrument shall be construed in accordance with and be governed by the laws of the State of California. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable.
13. Severability. In the event that any provision or clause contained in this Security Instrument or the Note shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or clause shall be deemed severable from the remaining provision, and this Security Instrument and the Note shall be construed as if such invalid, illegal, be severable.
14. Captions. The captions and headings in this Security Instrument are for convenience only and are not to be used to interpret or define the provisions hereof. 19 03/25/2025
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15. Default; Remedies. Upon the Borrower's breach of any covenant or agreement of the Borrower in this Security Instrument, including, but not limited to, the covenants to pay, when due, any sums secured by this deed of Trust, the City, prior to acceleration shall give notice to Borrower specifying: (1) the breach; (2) if the breach is curable; (3) the action required to cure the breach; (4) a date, not less than 30 days from the date the notice is given to Borrower by which the breach must be cured; and (5) if the breach is curable, failure to cure the breach on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured by the Borrower on or before the date specified in the notice, then the City, at its option may: (a) require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by California law; (b) either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Property, in its own name or in the name of the Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Property shall not cure or waive any breach hereunder or invalidate any act done in response to such breach and notwithstanding the continuance in possession of the Property, the City shall be entitled to exercise every right provided for in this Security Instrument or by law upon occurrence of any uncured breach, including the right to exercise the power of sale; (c) commence an action to foreclose this Security Instrument as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (d) deliver to the Trustee a written declaration of default and demand for sale, pursuant to the provisions for notice of sale found at California Civil Code Sections 2924, et seq., as amended from time to time; or (e) exercise all other rights and remedies provided herein, in the instruments by which the Borrower acquires title to any Property, or in any other document or agreement now or hereafter evidencing, creating or securing all or any portion of the obligations secured hereby, or provided by law.
The City shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this Section, including, but not limited to, reasonable attorney's fees.
16. Acceleration. Upon the occurrence of a default under the Note, or this Security Instrument, the City shall have the right to declare the full amount of the principal under the Note immediately due and payable. Any failure by the City to pursue its legal and equitable remedies upon default shall not constitute a waiver of the City's right to declare a default and exercise all of its rights under the Note and this Security Instrument. Nor shall acceptance by the City of any payment provided for in the Note constitute a waiver of the City's right to require prompt payment of any remaining principal and shared appreciation owed.
17. Borrower's Right to Reinstate. Notwithstanding the City's acceleration of the sums secured by this Security Instrument, Borrower shall have the right to have any proceedings begun by the City to enforce this Security Instrument discontinued at any time prior to the earlier of:
(1) 5 days before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (2) entry of a judgment enforcing this Security Instrument if Borrower: (a) pays the City all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any breach of any other covenants or agreements of the Borrower contained in this Security Instrument; (c) pays all reasonable expenses incurred in enforcing the covenants and agreements of this Security Instrument, including, but not limited to, 20 03/25/2025
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reasonable attorneys' fees; and (d) takes such action as the City may reasonably require to assure that the lien of this Security Instrument, the City's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unimpaired. Upon such payment and cure by Borrower, this Security Instrument and the obligations secured hereby shall remain in full force and in effect as if no acceleration had occurred.
18. Reconveyance. Upon payment of all sums secured by this Security Instrument, or upon forgiveness of the debt pursuant to Paragraph 9 and/or other provisions of the Note, the City will surrender this Security Instrument and the Note to the Trustee. The Trustee will reconvey the Property without warranty and without charge to the person or persons legally entitled thereto.
Such person or persons will pay all costs of recordation, if any.
19. Substitute Trustee. The City, at its option, may from time to time remove Trustee and appoint a successor trustee to any Trustee appointed hereunder. The successor trustee shall succeed to all the title, power and duties conferred upon Trustee herein and by applicable law.
20. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal medical uses and to maintenance of the Property.
Borrower shall promptly give the City written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. Prior to taking any such remedial action, however, Borrower shall notify the City that such remedial action is necessary and shall obtain the City's prior written consent for such remedial action.
As used in this Section, "Hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this Section, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection.
21. Subordination to Senior Financing. This Deed of Trust and the prov1s1ons contained herein shall be subordinate to any senior financing approved by the beneficiary.
Ill
Ill
Ill
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Executed by Borrower this _____ day of _________ , 2012.
BORROWER:
Operation HOPE
(name of Borrower)
By:-------------
(sign here)
(print name/title)
By:----,---,--,-----,--------
(sign here)
(print name/title)
CITY OF VISTA, a chartered municipal
corporation of the State of California
By:-----�------
PATRICK JOHNSON
City Manager
ATTEST:
MARCI Kl LIAN
City Clerk
(Proper notarial acknowledgment of execution by Subrecipient must be attached.
Agreement must be signed by one corporate officer from each of the following two groups. *Group A.
Chairman,
President, or
Vice-President
**Group B.
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
DAR OLD Pl EPER, City Attorney
BY: ____________ _
City Attorney
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State of California
County of _________ )
On _____________ before me, __________ ,
Notary Public, personally appeared ________________ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature _________________ (Seal)
State of California
County of _________ )
On _____________ before me, __________ ,
Notary Public, personally appeared ________________ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature _________________ (Seal)
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