HomeMy WebLinkAbout2000 CON CDC South Bay Community Services - Housing Cooperation Agreement5090 HOC° .. L000-0202122
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PLEASE COMPLETE THIS INFORMATION
RECORDING REQUESTED BY:
Community Development Commission
of the City of National City
AND WHEN RECORDED MAIL TO:
140 E. 12`h Street, Suite B
National City, CA 91950
Attention: Angelica Macias
APR 1 ✓ , 2000 <__ v _,L 5 PM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
GREGORY J. SMITH, COUNTY RECORDER
FEES: 0.00
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(THIS SPACE FOR RECORDER'S USE ONLY)
HOUSING COOPERATION AGREEMENT
BETWEEN
THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
AND
SOUTH BAY COMMUNITY SERVICES, INC.
FOR ACQUISITION AND REHABILITATION OF 8 UNITS
AT 1125-1137 B AVENUE.
Assessor Parcel No. 556-551-17-00
THIS HOUSING COOPERATION AGREEMENT (the "Agreement") is entered into this
21 st Day of March, 2000 (the "Effective Date"), by and between the Community Development
Commission of the City of National City, a public body, corporate and politic ("CDC") and South
Bay Community Services, Inc. a California non-profit public benefit corporation ("Developer").
RECITALS
A. Developer desires (1) to acquire certain improved real property (the "Property") located
within the City of National City ("City") at 1125-1137 B Avenue, and more particularly described
in Exhibit "A" attached hereto and incorporated herein by this reference, (2) to rehabilitate the
Property by making certain improvements and repairs thereto, (3) to relocate existing tenants at the
Property, and (4) to operate an 8-unit long-term transitional housing project (the "Project") for
Homeless or Formerly Homeless Families (defined below), and/or for Very Low Income Families
(defined below) subject to the terms and conditions set forth herein.
B. The total Property acquisition, rehabilitation and tenant relocation cost for the Project is
expected to be approximately $637,890. Developer expects to marshall the following resources in
order to finance the acquisition, rehabilitation and relocation aspects of the Project: a loan from the
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County of San Diego in the amount of $157,890, a grant from the CDC in the amount of $166,500
and a grant from the U.S. Department of Housing and Urban Development in the amount of
$545,000 for development and supportive services.
C. Through the development and operation of the Project, CDC and Developer desire to
provide Homeless and Formerly Homeless Families with an alternative affordable housing
opportunity within the City, in accordance with the Housing Element of the City's General Plan. In
order to promote this goal, the Commission desires to make a grant to Developer for the acquisition
and related development aspects of the Project in the amount of $166,500, subject to certain
conditions designed to assure the implementation of the Project in accordance with the General
Plan, Federal law, HOME program regulations, and as otherwise provided herein.
WHEREFORE, in consideration of their mutual and respective promises, and subject to the
terms and conditions hereinafter set forth, the parties do hereby agree as follows:
1.1
ARTICLE 1
ACQUISITION AND DEVELOPMENT OF THE PROPERTY
Work to be Performed. Developer agrees to (a) acquire the Property, (b) relocate the
existing Tenants (c) rehabilitate the 8 units (each, a "Unit") of residential housing located at
the Property and otherwise prepare them for occupancy by, Homeless Families, and (d)
operate the Project for occupation by 1-lomeless, Formerly Homeless and/or Very Low
Income Families, subject to the terms of Article 3 hereof, and all other terms of this
Agreement. To the extent required by the CDC, all such work shall be completed in
accordance with acquisition, rehabilitation, relocation and management plans submitted to
and approved by the CDC prior to and as a condition precedent to CDC's funding of the
Grant.
1.2 Cost of Acquisition, Rehabilitation, and Relocation. The costs of acquisition,
rehabilitation, relocation and operations of the Project shall be borne entirely by Developer,
including any and all costs and expenses incidental thereto, subject only to CDC's obligation
to make the CDC Grant (defined below). Developer shall indemnify, protect, defend and
hold harmless CDC, and any and all CDC's representatives, officers, agents, employees, and
their respective successors from and against any relocation claims and any and all other
claims, damages, actions, costs, demands, expenses, or liability including, without
limitation, attorney's fees and court costs, and claims arising out of Developer's acquisition,
rehabilitation or tenant relocation efforts for the Project. Notwithstanding the foregoing,
CDC agrees to exercise reasonable efforts in order to provide the County of San Diego
and/or any appropriate agency thereof, with written evidence supporting the argument that
families currently residing at the Property are, in effect, being displaced by "government
action" taken by the CDC as a result of this Agreement.
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549,E
1.3 Timing of Project. Developer shall have completed acquisition of the Property within four
(4) months of the Effective Date, commenced rehabilitation within seven (7) months of the
Effective Date, and shall thereafter diligently pursue the same to completion such that all the
Units are occupied by Homeless Families and the resident manager within twelve (12)
months after the Effective Date. Developer's failure to complete such actions within the
time periods provided shall constitute a material default under the terms of this Agreement.
1.4 City and Other Government Permits; Laws.
(a) Before commencement of improvement or rehabilitation upon the Property, Developer
shall, at its own expense, obtain any and all permits and approvals which may be required
by the City or other public agencies affected by such work.
(b) Developer shall carry out the rehabilitation and operation of the Project in conformity
with all applicable laws, including, without limitation, all applicable federal labor standards,
procurement regulations, Americans with Disabilities Act requirements, and CDC policies
adopted pursuant to said federal standards, regulations, and requirements.
(c) Developer, at its expense, shall relocate all currently eligible inhabitants of the Property
in accordance with the Uniform Relocation Act and other applicable Federal regulations.
1.5 Hold Harmless; Insurance.
(a) Developer agrees to indemnify, protect, defend and hold harmless the City of National
City, the CDC, its officers, agents, employees, representatives and their respective
successors, from and against any and all claims, damages, actions, costs, demands, expenses
or liability, including, without limitation, attorney's fees and court costs, which may arise
from the direct or indirect actions or inactions of the Developer or those of its contractors,
subcontractors, agents, employees or other persons acting on Developer's behalf which
relate to the Property or Project. This hold harmless agreement applies, without limitation,
to all damages and claims for damages suffered or alleged to have been suffered by reason
of the operations referred to in this paragraph, regardless of whether or not CDC prepared,
supplied or approved plans or specifications, or both, for the Property or Project. This
indemnity by Developer, and all other indemnities set forth herein shall survive any
foreclosure of the Property by the CDC pursuant to the terms of the Trust Deed (defined
below).
(b) Within ten (10) days after the Developer's acquisition of the Property, Developer shall
furnish to the CDC duplicate originals or appropriate certificates of insurance coverage
evidencing that Developer has obtained, or caused to be obtained, insurance coverage with
respect to the Project in type, amount and from insurers as are reasonably acceptable to
CDC, naming the CDC and its officers, agents, employees, representatives, and their
respective successors, as named or additional insureds at CDC's option. Such policies shall
include, without limitation "all risk" property casualty insurance and comprehensive general
liability insurance. Without limiting the generality of the foregoing, such policies shall also
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5093
include coverage to insure Developer's indemnity obligations provided herein. Such
insurance policies shall be maintained and kept in force during all periods that Developer
holds title to the Property.
1.6 Anti -Discrimination During Rehabilitation Construction. Developer, for itself and its
successors and assigns, agrees that in the construction of improvements to rehabilitate the
Property provided for in this Agreement, Developer will not discriminate against any
contractor, employee or applicant for employment because of race, color, religion, sex,
national origin, or disability.
1.7 Further Indemnification of CDC. It is understood and agreed that the parties hereto have
entered this Agreement as a method of providing necessary CDC assistance to Developer in
connection with the elimination of blight and redevelopment of the Property pursuant to all
applicable laws and that by contributing public funds to assist in the accomplishment of such
redevelopment, or by otherwise contributing or assisting with the accomplishment of such
redevelopment, the CDC assumes no responsibility for insuring that Developer's
redevelopment of the Property is adequately undertaken (including, without limitation, the
remediation of any hazardous or toxic substances on the Property) and as a material
consideration to CDC for entering into this Agreement, (and not by way of limiting the
generality of Section 1.5(a), above), Developer agrees to indemnify, protect, defend and
hold harmless CDC and any and all CDC's representatives, officers, employees, and their
respective successors, from and against any and all claims, damages, actions, costs,
demands, liabilities, obligations, expenses, damages, losses or costs, including without
limitation, attorney's fees and court costs, which may arise or are in any manner connected
with the redevelopment of the Property pursuant to this Agreement.
ARTICLE 2
CDC GRANT
2.1 CDC Grant Commitment. The CDC hereby commits to make a grant to the Developer
("CDC Grant"), in the total amount of ONE HUNDRED SIXTY-SIX THOUSAND, FIVE
HUNDRED DOLLARS ($166,500) to assist in financing the acquisition of the Property,
subject to conditions herein contained and on the terms and conditions hereinafter set forth.
The following conditions must be fully satisfied, as reasonably determined by the CDC, in
order for the CDC's obligation to make the CDC Grant arises:
(i) that Developer obtains final approval of a $157,890 loan from the County of San Diego
and secures the other funding necessary to acquire and rehabilitate the Property, relocate
existing tenants, and otherwise prepare the Project for occupancy by Homeless or Formerly
Homeless Families;
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March 21, 2000
(ii) that the CDC secures the full proceeds with which to make the CDC Grant from the
United States Department of Housing and Urban Development through the HOME
Investment Partnerships program;
(iii) that Developer provides the CDC with adequate assurances that the Developer will
have access to sufficient operational funds to finance Project operations for a period of one
(1) year from the Date of Occupancy (defined below);
(iv) that the Developer meets and performs all other obligations under this Agreement
required to be performed prior to the making of the CDC Grant;
(v) that all other conditions contained in the purchase agreement governing Developer's
acquisition of the Property (other than the deposit of other monies necessary to complete
the purchase) have been fully satisfied or waived in accordance with the provisions thereof.
2.2 Funding of CDC Grant; Sources of CDC Grant.
(a) The CDC shall deposit $166,500 of the CDC Grant (the "Acquisition Funds") into
an existing escrow account #990144 ERA Davies Realty Escrow, which has been
established for the acquisition of the Property, upon receipt of written proof
satisfactory to the Executive Director of the CDC that: (a) Developer has obtained
the requisite public and private donations to acquire the Property and to develop the
Project; and,
(b) all other conditions to the CDC's obligation to make the CDC Grant hereunder have
been fully satisfied. Such funds shall remain uncashed until such time as all other
conditions to close of escrow including the deposit of other funds necessary to
complete the purchase, has been satisfied. In the event that Developer fails to
acquire title to the Property within sixty (60) days after CDC's deposit of the
Acquisition Funds into escrow, CDC, at its sole option, with unilateral written
instructions to escrow, may require that all such proceeds be immediately returned to
CDC. Concurrent with the closing of Developer's purchase of the Property, the
Acquisition Funds shall be released to the seller of the Property , and a copy of the
Agreement or abstract shall be recorded as required by Section 3.6(e). Developer
shall be responsible for any and all of CDC's escrow, title and recording costs arising
in connection with the CDC Grant, such costs to be paid by the Developer through
escrow.
(c) It is understood that the source of the proceeds for the CDC Grant are derived from
the federal HOME Investments Partnerships Program or as otherwise determined by
the CDC in its sole discretion. Any amounts of the CDC Grant not distributed to
Developer in accordance with the provisions hereof shall be retained by the CDC.
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March 21, 2000
ARTICLE 3
COVENANTS RUNNING WITH THE LAND
3.1 Use and Maintenance Covenants. Developer covenants and agrees, for itself, its
successors and assigns, and every person acquiring an interest in the Property or any part
thereof, that the Developer will:
(a) Use at least 7 units of the Property solely for (i) residential housing for Homeless
Families at a rental rate not to exceed 30% of the families' actual gross income, or (ii)
subject to the restrictions set forth below, for residential housing for Very Low Income
Families at a rental rate not to exceed 30% of the then current qualifying income for such
families, described below. For purposes of this Agreement, the term "Homeless Families"
shall mean two or more persons related by blood or marriage, at least one of which shall be
a minor (a person under the age of 18 years) who, because of their economic circumstances,
are sleeping on a regular basis in a place not designed or constructed for habitation by
members of an individual family unit ("Non -Habitable Sleeping Location") including, but
not limited to, a park, street, sidewalk, vehicle, open space area or shelter, or who, because
of their economic circumstances, are in the process of being evicted from a dwelling with
the reasonable prospect that they will have to sleep on a regular basis in a Non -Habitable
Sleeping Location, or who, because of their economic circumstances, are disabled persons
being discharged from institutions with the reasonable prospect that they will have to sleep
on a regular basis in a Non -Habitable Sleeping Location. Such definition shall be amended
to the extent required pursuant to the HOME Investment Partnerships Program (24 CFR 82).
For purposes of this Agreement, the term "Very Low Income Families" shall mean family
households (consisting of at least two persons related by blood or marriage, at least one of
which is a minor) having an annual income no greater than 50% of the San Diego County
median income, as established by the United States Department of Housing and Urban
Development (HUD), as such parameter has been established and may be amended by
applicable Federal or California law;
(b) Maintain and repair the Property in a decent, safe and sanitary condition, and according
to all applicable building codes, at its sole expense.
(c) Operate the Property and Project in conformance with the HOME Investment
Partnerships Program regulations (24 CFR 82).
3.2 Conversion to Very Low Income Housing Tenants. Developer covenants and agrees,
for itself, its successors and assigns, and every person acquiring an interest in the Property or
any part thereof that Developer shall use its best efforts to obtain adequate operational
funding for the continuous provisions of at least seven (7) units of residential housing for
Homeless Families. In the event that (a) adequate operational funding is not available for
the operation of one or more Units for a period of six months or greater, (b) Developer has
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509L
reasonably exhausted (i) all available appeals of decisions to deny such funding and (ii)
alternative sources of funding, and (c) Developer provides CDC with reasonable proof of
the occurrence of (a) and (b), then Developer may elect to convert such Unit(s) to use for
providing residential housing to Very Low -Income Families. In the event that any such
conversion is so elected by Developer, Developer agrees to exercise its best efforts to
attempt to obtain sufficient funds to reconvert the converted Units back to use for
occupation by Homeless or Formerly Homeless Families. From time to time, the CDC may
require the Developer to submit to the CDC written proof reasonably satisfactory to the
CDC of Developer's "best efforts" to reconvert such Units.
3.3 Obligation to Refrain from Discrimination. Developer herein covenants and agrees for
itself, its successors and assigns, and every person acquiring an interest in the Property, or
any part thereof, that there shall be no discrimination against or segregation of any person or
groups of persons on account of race, color, religion, sex, national origin, disability, or
familial status in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of
the Property, or any part thereof, nor shall Developer himself or any person claiming under
or through him, establish or permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number, use, or occupancy of tenants,
lessees, subtenants, subleases, or vendees in the Property.
3.4 Form of Nondiscrimination and Nonsegregation Clause. Developer shall not restrict the
rental, sale or lease of the Property on the basis of race, color, religion, sex, national origin,
disability, or familial status of any person. All stioh deeds, leases or contracts shall contain
or be subject to substantially the following nondiscrimination or nonsegregation clauses:
(i) In deeds: "The grantee herein covenants by and for himself, his heirs, executors,
administrators and assigns, and all persons claiming under or through them that there shall
be no discrimination against or segregation of any person or group of persons on account of
race, color, religion, sex, national origin, disability, or familial status in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor
shall the grantee himself, or any person claiming under or through him, establish or permit
any such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or
vendees in the land herein conveyed. The foregoing covenants shall run with the land."
(ii) In leases: "The lessee herein covenants by and for himself, his heirs, executors,
administrators and assigns, and all persons claiming under or through him, and this lease is
made and accepted upon and subject to the following conditions:
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"That there shall be no discrimination against or segregation of any person or group of
persons on account of race, color, religion, sex, national origin, disability, or familial status
in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land
herein leased, nor shall the lessee himself, or any person claiming under or through him,
establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees,
sublessees, subtenants or vendees in the land herein leased."
(iii) In contracts: "There shall be no discrimination against or segregation of any person or
group of persons on account of race, color, religion, sex, national origin, disability, or
familial status in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of
the land, nor shall the transferee himself, or any person claiming under or through him,
establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees,
subtenants, sublessees or vendees of the land."
3.5 Covenants Against Permitting Occupancy by Persons Using Drugs or Alcohol and
Violent Offenders.
(a) Developer covenants and agrees, for itself, its successors and assigns, and every person
acquiring an interest in the Property or any part thereof, that no Unit shall be knowingly
rented to, or permitted to be occupied by: (i) any person who is currently using, or recently
has used illicit drugs or routinely consumes an excessive amount of an alcoholic beverage
(but not including a "recovering" drug or alcohol abuser who is enrolled in a on -going
treatment program and has not recently used illicit drugs or alcohol): or, (ii) any person
who has, within the period of time extending back two (2) years prior to any period of
occupancy, or proposed occupancy, been convicted of any offense which had as one or
more of its elements either (i) the possession, sale or use of any illicit drug or (ii) the use of
violence or force against another provided, however, that Units may be rented to or
permitted to be occupied by past users of violence or force in domestic violence cases if
such perpetrator provides proof of current and proficient participation or completion of a
certified program for controlling rage and physical violence. In determining eligibility for
occupancy under this section, developer shall be entitled to rely upon the documentation
provided by any prospective occupant and shall not be required to conduct any independent
investigation; provided however, that any false documentation shall be grounds for the
immediate termination of occupancy by the person propounding the documents.
(b) Each agreement pursuant to which any person occupies, or obtains the right to occupy,
any Unit shall contain (and is hereby deemed to contain) provisions describing the
restrictions set forth above, and making the violation thereof (whether a violation at the
commencement of occupancy, by subsequent conviction or by permitting a convicted
person to subsequently occupy) grounds for immediate termination of any right of continued
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occupancy under such agreement by such convicted person or any other person, which
termination right Developer covenants and agrees (as described above) that it will
vigorously enforce.
(c) It is understood and agreed that the purpose of this Section 3.5 is to provide for decent,
safe living environments, and to the extent any provision of this Section 3.6 is determined
by a court of competent jurisdiction to be overly broad, such provision shall be narrowed as
may be required by such court to permit enforcement thereof to achieve the purposes
described above.
3.6 Duration of Covenants; Enforcement; Recordation.
(a) The covenants contained herein shall run with the land and remain in effect commencing
with the Developer's acquisition of the Property, and thereafter, for an initial period of thirty
(30) years commencing with the Date of Occupancy, which is defined as the date upon
which the first qualified tenant takes occupancy of a Unit on the Property. The CDC, in its
sole discretion, may elect to extend the effectiveness of the restrictive covenants provided
herein for five successive five (5) year periods by notifying Developer, or the then current
owner of the Property, in writing, of such election prior to the expiration of the restricted
operations period then in effect, andrecording an amendment to this Agreement, signed by
the CDC, reflecting such election. This initial 30-year restriction period, as extended by the
CDC from time to time pursuant to the terms hereof, shall be referred to as the "Restricted
Operations Period". The covenants established herein shall, without regard to technical
classification and designation, be binding on the part of the Developer and any successors
and assigns to the Property or any part thereof, and the tenants, lessees, sublessees and
occupants of the Property, for the benefit of and in favor of the Property and the CDC, its
successors and assigns, and any successor in interest thereto. CDC is deemed the
beneficiary of such covenants for and in its own right and for the purposes of protecting the
interests of the community and other parties, public or private, in whose favor and for whose
benefit of such covenants running with the land have been provided, without regard to
whether CDC has been, remain, or are owners of any particular land or interest therein.
CDC shall have the right to unilaterally terminate the covenants at any time or, if such
covenants are breached (subject to any cure rights provided herein), to exercise all rights and
remedies and to maintain any actions or suits at law or in equity or other proper proceedings
to enforce the curing of such breaches to which it or any other beneficiaries of this
Agreement and the covenants may be entitled, including specific performance (it being
recognized that the breach of such covenants cannot be adequately compensated by
monetary damages).
(b) Without limiting the generality of the foregoing, in the event that there is a breach of the
terms of this Agreement or any covenants provided herein, the CDC shall have the right, but
not the obligation, to take any and all actions the CDC deems necessary, to cure such
breach, including, without limitation, taking possession of the Property for management
and/or repair purposes, and to obtain reimbursement from the Developer for any reasonable
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costs incurred by the CDC in the exercise of such remedy. Furthermore, Developer hereby
covenants by and for itself, its successors and assigns and every person acquiring an interest
in the Property, or any part thereof, that the CDC and other public agencies at their sole risk
and expense, shall have the right to enter the Property or any part thereof at all reasonable
times and with as little interference as possible for the purposes of construction,
reconstruction, maintenance, repair or service of any public improvements or public
facilities located on the Property and to ensure compliance with the Restrictions. Any such
entry shall be made only after reasonable notice to the Developer (provided, however, that
entry to ensure compliance with the Restrictions may be made without notice to Developer)
and, any damage or injury to the Property resulting from such entry shall be promptly
repaired at the sole expense of the public agency responsible for the entry except to the
extent any such damage or injury arises as a result of the negligence or willful misconduct of
the Developer or its officers, employees, agents, invitees or contractors.
(c) Any successor of Developer to the Property shall be bound by the covenants, conditions,
restrictions, limitations and provisions hereof, whether such successor's title was acquired by
foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. Failure to comply with
the covenants, conditions, restrictions, provisions or limitations contained in the Agreement
shall constitute a material default hereunder permitting the CDC to exercise any of its rights
or obligations provided hereunder.
(d) This Agreement, or an abstract referring to this Agreement shall be recorded in the real
property records of the County of San Diego to bind the Property according to the terms and
conditions of the covenants expressed in this Agreement, until such terms are released by a
duly recorded corresponding release or relinquishment.
ARTICLE 4
PROPERTY MANAGEMENT AND MONITORING PROVISIONS
4.1 Property Management Plan. Developer shall adhere to a Property Management Plan
(Plan) described in Exhibit "B" that shall include policies and procedures by which the
property will be managed. As part of the Plan, the Developer shall provide at its sole
expense a full-time resident property manager who will occupy one of the units of the
Project.
4.2 Reporting. Developer shall, on a semi-annual basis, provide a written report ("Report") to
the CDC for the previous six months which includes demographic information on all the
tenants which have occupied the units. In addition, the Report shall include a financial
statement of the income and operating expenses. The Report shall be submitted to the
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Community Development Commission within 30 days of the end of the applicable six
month period.
4.3 Monitoring. Developer shall fully cooperate with CDC staff in connection with the CDC's
structuring and administration of a program to monitor affordable housing within the CDC.
Without limiting the generality of the foregoing, such monitoring program shall provide a
mechanism whereby, on an annual basis, the definitions provided in Section 3.1 are adjusted
for the annual change in median income promulgated by HUD.
ARTICLE 5
GENERAL PROVISIONS
5.1 Binding Effect of Agreement. The burdens of this Agreement bind and the benefits of this
Agreement inure to the parties' successors and assigns; provided, however, that in no event
shall Developer be entitled to assign any of its rights hereunder without the prior written
consent of CDC, which may be withheld in CDC's sole and absolute discretion, except that
such consent shall not be unreasonably withheld with respect to an assignment thereof to
another non-profit corporation with the demonstrated capability as determined solely and
exclusively by CDC' s discretion, to implement the Project.
5.2 Relationship of Parties. It is understood that the contractual relationship between CDC
and Developer is such that Developer is an independent entity and not an agent of CDC.
5.3 Notices. All notices, demands and correspondence required or provided for under this
Agreement shall be in writing and delivered in person or dispatched by certified mail,
postage prepaid. Notice required to be given to CDC shall be addressed as follows:
Community Development Commission
of the City of National City
140 E. 12`" Street, Suite B
National City, CA 91950
Attn: Executive Director
Notice required to be given to Developer shall be addressed as follows:
Executive Director
South Bay Community Services, Inc.
315 Fourth Ave., Ste. E
Chula Vista, CA 91910
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A party may change its address by giving notice in writing to the other party. Thereafter,
notices, demands and other pertinent correspondence shall be addressed and transmitted to
the new address.
5.4. Attorneys' Fees. In the event of any conflict or dispute concerning the interpretation or
enforcement of any of the terms or provisions of this Agreement or otherwise arising out of
this Agreement, the prevailing party shall be entitled to recover from the other party any and
all reasonable costs and expenses incurred in connection therewith, including, without
limitation, attorneys' fees and court costs, whether or not a legal action is commenced.
5.5. Costs of Implementing Agreement. Any and all title fees, recording fees, escrow fees or
other costs related to the implementation of the terms of this Agreement shall be borne
100% by Developer.
5.6. Rules of Construction. This Agreement, together with all agreements referred to herein,
constitutes the entire understanding and agreement of the parties. This Agreement integrates
all of the terms and conditions mentioned herein or incidental hereto, and supersedes all
negotiation or previous agreements between the parties, either written or oral with respect to
all or any part of the subject matter hereof. All waivers of the provisions of this Agreement
must be in writing and signed by the appropriate authorities of the CDC or by Developer.
All amendments hereto must be in writing signed by the appropriate authorities of the CDC
and by Developer.
5.7. Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed an original, and which shall be deemed a single agreement.
5.8. Severability. If any part of this Agreement is held invalid, the remaining terms and
conditions shall not be effected unless their enforcement under the circumstances would be
unreasonable, inequitable or otherwise frustrate the purposes of this Agreement.
5.9. Time. Time is of the essence of this Agreement and of each and every term and condition
hereof.
5.10. Survival; Defaults.
(a) It is understood that any and all indemnities provided herein by Developer to the CDC
shall survive any termination of this Agreement or foreclosure, release or reconveyance of
the Trust Deed or Security Agreement. All other obligations of Developer hereunder shall
likewise survive any release or reconveyance of the Trust Deed or Security Agreement. It
is understood that except for those obligations under the Note which derive from this
Agreement, none of Developer's obligations hereunder shall be secured by the Trust Deed
or Security Agreement; provided, however, that it is understood that any default hereunder
shall constitute an "Event of Default" under the Trust Deed.
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51 02
(b) Developer shall be in default hereunder if it shall fail to observe or perform any
covenant, condition, restriction or provision contained herein on its part to be observed or
performed which continues after written notice to Developer and failure to cure within ten
(10) business days of receipt of such notice except where by the nature of such default ten
days is insufficient, in which case until such time as it is reasonably possible in which to
cure such default in CDC's discretion.
(c) No reference in this Agreement to any particular right or remedy CDC may have in the
event of any particular default shall be construed as limiting any other rights or remedies
CDC may have at law or in equity as a result of said default or any other default by
Developer hereunder.
5.11 Third Party Beneficiary. In addition to those rights to which CDC is entitled, as
specifically provided elsewhere in this Agreement, CDC shall be deemed to be a third party
beneficiary to each and every other provision of this Agreement which runs in favor of
CDC. Other than the foregoing, there shall be no third -party beneficiaries under the terms
of this Agreement.
5.12 Authority. Developer represents and warrants that: (a) it has the full legal right, power and
authority to enter into and to fully perform its obligations under the terms of this
Agreement and, upon execution of this Agreement, (b) the persons executing this
Agreement, and all other agreements contemplated hereby, on behalf of the Developer are
the duly designated agents of the Developer and are authorized to do so, and (c) that the
execution of this Agreement has been authorized by a duly adopted resolution of its Board
of Directors. Prior to closing on the CDC Grant, upon CDC's request, Developer shall
provide CDC with a Resolution of its Board of Directors authorizing Developer to enter
into this Agreement and all other agreements referred to herein, the form of such resolution
to be subject to the CDC's prior written approval.
Signature Page to Follow
Housing Cooperation Agreement Page 13
March 21, 2000
5103
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first
above written.
THE COMMUNITY DEVELOPMENT
COMMISSION
OF THE CITY OF NATIONAL CITY, CA,
a public body, corporate and politic
By:
George H."Waters, Chairman
TH BAY COMMUNITY SERVICES, INC.
ornia non-profit public benefit corporation
embo, Executive Director
By: i i _
Charles Moore, Board Chairman
APPROVED AS TO FORM:
By: r4/gP4A:
George Eiser, City/CDC Attorney
By
ATTEST:
i44
Paul Desrochers, Secretary
Housing Cooperation Agreement Page 14
March 21, 2000
5104
Order• No. 99091637
Lots 6, 7 and 8 in.Block 3 of 10 Acre Lot 4 of Quarter Section 154 of Rancho De La
Necion, in the. City of National City, County of San Diego, State of California, according to
Map thereof of the San Diego Land and Tvwn Company Subdivision No. 13, filed in the
Office of the County Recorder of San Diego County, November 1, 1686.
Assessor's Parcel No: 556-551-17
EXHIBIT "A"
5105
SOUTH BAY COMMUNITY SERVICES
CASA NUEVA VIDA — NATIONAL CITY
MANAGEMENT PLAN
INTRODUCTION
This plan is designed to define the duties and responsibilities of South Bay Community Services (Owner),
and to outline a management program that will assure the physical, financial and social well-being of the
project.
The term Owner refers to South Bay Community Services, the owner and manager. The term "Project"
refers to Casa Nueva Vida -National City, a long-term transitional living program in National City.
I. MANAGEMENT
A. Role and responsibility of the Owner.
1. Scope of duties
It is the Owner's responsibility to establish the broad, general policies under which the project will
operate.
The Owner's staff is responsible for the day-to-day operation of the project. The contact person
for the Owner is the Director of Family Wellness and Self Sufficiency for South Bay Community
Services.
B. Personnel Policy and Staffing Arrangements
1. Responsible Personnel
The personnel to be hired for the operations of the Project will be determined by the owner
2. Hiring and Personnel Policies
All hiring of employees shall conform to equal opportunity and affirmative action requirements.
The Owner shall not discriminate against any applicant for employment because of race, color,
religion, ancestry, national origin, age, sex, pregnancy, marital status, disability, sexual
orientation, or AIDS/HIV status. It is the goal of South Bay Community Services to have the
on -site staff reflect, to the extent possible, the composition of the residents of the project.
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EXHIBIT "B"
5106
Projected Staffing
SBCS plans to have a Resident Manager residing at the project site who will manage the day to
day operations of the project. A Family Development Associate will work with each family to
develop short and long-term goals for each family and coordinate the delivery of needed services.
They will work under the Family Wellness and Self Sufficiency Department and will utilize
SBCS' model for case management currently in use in its other Transitional Living Programs.
Currently, 62% of SBCS' TLP residents have found permanent housing within one year of
entering transitional housing with supportive services, and 66% moved into permanent housing
upon exit from the program. 90% increased their skills or income during their time in the
program.
4. Staff Orientation and Training
SBCS has a Training & Orientation Committee that puts together monthly trainings for all SBCS
staff. The Training & Orientation Committee gives surveys to all staff requesting input on types of
training they need and want. In addition, all direct service staff working with families receive weekly
Clinical Supervision, weekly case management supervision, and meet once a month with the Program
Director. Staff are provided with training on various topics both in-house and in the community, and
are given the opportunity to attend conferences and lectures to enhance their knowledge.
A standard orientation has been developed and is performed for each new staff by the Human
Resources Director.
Performance evaluations are conducted for each staff on a 6-month and annual basis. The Executive
Director evaluates administration staff (Department Directors) and the Board of Directors evaluates
the Executive Director.
5. Program Compliance and Quality Assurance
A Quality Assurance process in place at SBCS assures quality of programs. Direct service staff are
supervised by Team Leaders and Clinical Directors. Case files are reviewed by peers and by contract
compliance staff Feedback from clients is solicited on their satisfaction with services through
customer surveys and pre- and post -service delivery tests. Statistical reports on the process and
impact of services are gathered, as are outcome data upon case completion.
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C. Plan for Maintaining Adequate Accounting Records and Handling Necessary Forms
and Vouchers
1. Accounting Basis
The organization's Fiscal Department manages all funds. The Fiscal staff includes the Fiscal Director
and a bookkeeper. The following provides an overview of the fiscal procedures in practice at South
Bay Community Services.
Project accounts are maintained on the modified accrual basis, in accordance with generally accepted
accounting practices. All project financial records for the Project will be audited annually by an
independent certified public accounting firm.
SBCS will maintain an accounting system that controls and accounts for all funds, property and other
assets provided as a result of the contractual relationship with the City of National City and other
funders. Financial records and statistical data will be kept to segregate expenses, revenues, and assets
for each contract from other financial activity, and to support claims for reimbursement submitted to
the City.
For routine or emergency repairs beyond the capability of staff, Owner will establish accounts with
designated contractors (e.g., plumbers, and electricians). In addition, a list of approved vendors for
office supplies and repair materials will be prepared. Owner will pay invoices out of the operating
account.
A system of financial controls will protect SBCS from non-compliance with contract provisions and
assist in maintaining the public trust, which accompanies the receipt and expenditure of public funds.
The Owner will comply with all reporting requirements for the project.
2. Financial Management Activities:
Cash Disbursements: cash disbursements are prepared twice a month by our computerized
accounts payable program. Payment is done for all authorized check requests. Where warranted, due
to the significant amount of the purchase, approval from the Board of Directors is needed. Original
supporting documents must be attached to all check request forms. After payment, all supporting
invoices are stamped "paid" to avoid duplication of payment. All checks over $500.00 require two
signatures, the Executive Director and a member of the Board of Directors. Prenumbered checks are
used on all disbursements. Numerical and physical control is maintained over blank checks as well as
issued checks. Void checks are adequately mutilated and filed in numerical order with canceled
checks.
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Cash Receipts: the receptionist handles cash receiving. Reception is in charge of opening all
mail and logging in all checks received. The receptionist is not involved in any fiscal duties. incoming
cash receipts, primarily in the form of checks, are locked in a file cabinet until accumulation merits a
deposit. The collection of cash is maintained by a separate cash receipt log. The Deposit is prepared
by the bookkeeper and posted to the general ledger by the fiscal director. Periodic reconciliation of
detailed cash receipt records to duplicate deposit slips, accounts receivables, and personnel
independent of cash functions prepare cash control accounts.
Payroll and Personnel: New employees are fingerprinted and references checked before
being hired. Wage and personnel policies are current and in writing. Current and complete personnel
files are maintained. An adequate system is used to insure proper recording of hours and time. All
salary and wage payments are made by check. An outside payroll company is responsible for
processing payroll and printing appropriate payroll checks. All payroll checks are delivered to our
office for review, and distribution to employees. The payroll account is reconciled by someone other
than the person preparing the payroll and signing checks.
Revenue, Billing, and Receivables: The Fiscal Director prepares all grant billings. Billings
are done under reimbursement basis once a month and journalized as a receivable until the proper
payment is made. The billings are done either on a preprinted form provided by the grantor or in-
house prepared form. Fiscal Director is in charge of monitoring the year-to-date expenses and
comparing them to the annual budget. Under no circumstances will billings for a particular expense
exceed the annual authorized budget. The fiscal department does a periodic analysis of receivables.
Petty Cash and Cash On Hand: Petty cash funds are maintained on an imprest basis, with
one individual responsible for the fund. They are not combined with other receipts. Responsibility for
petty cash is separate from cash disbursements, receipts, and receivables functions. Limits exist on the
amount for reimbursements out of petty cash. Supporting documents are checked and canceled at the
time the fund is replenished. The fiscal department makes periodic and surprise counts of funds.
D. Provisions for Update of Management Plan
On at least an annual basis, the Associate Director, the Department Director, and project staff will
review this Management Plan and the Program Policies and Procedures and make appropriate and
necessary changes.
E. Insurance
The Owner will arrange for the project to be insured for fire and other hazards, general liability, and
contingencies, workers' compensation and fidelity bond in such amounts and for such periods as are
required and necessary.
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09
II. OCCUPANCY
A. Plans and Procedures for publicizing and Achieving Early and Continued Occupancy
1. Outreach:
The Owner will actively promote Casa Nueva Vida -National City to the National City community,
collaborating agencies, and the National City Family Resource Center, who will pre-screen and
refer prospective residents to the Owner. Many residents will come from SBCS' short-term
transitional living program in National City, which serves families who have been victims of family
violence and have had to leave their homes. Others will come from referrals from the National
City Family Resource Center and National City Police Department. SBCS will maintain a waiting
list of pre -qualified applicants who have been referred to the Project.
2. Resident Selection
Each referred family will complete an assessment for entry into the Project. The assessment
includes personal information, family information, education, work history, brief health history,
current finances, other possible resources and questions regarding the circumstances leading to
the family being at -risk of being homeless. The Family Development Associate meets with all
family members for the initial screening interview. This interview expands on issues raised by the
written application and also covers mental health, drug and/or alcohol use, criminal history, family
violence and any plans for obtaining permanent housing. The interview is used to clarify
application information and to resolve questions related to the following:
• Events leading to housing instability,
• Prior participation in a residential program,
• History of violence including behavior dangerous to other people or property;
• Criminal activity or record,
• History of mental illness,
• Current illegal use of or addiction to controlled substances,
• Experience with Child Protective Services.
Families struggling with any of the following will not be considered appropriate for the Program.
• Active suicidal ideation,
• History as a sexual perpetrator
• History of violent assault and/or homicidal tendencies
• History of arson
• Any circumstance that would be excessively disruptive to the program or the well being
of other families or individuals, and
• Any condition that precludes successful program completion.
5
Intake and Assessment
The assessment process is initiated with the provision of face-to-face strengths -based assessments
with program staff based on the families' risk and protective factors through a Regional Risk and
Resiliency Checkup. The project will use the San Diego County Risk and Resiliency Checkup and the
Family Well Being Assessment to document an initial assessment of both protective factors and risk
factors of the families, to determine their eligibility for the program.
The Family Well Being Assessment (FWBA) is a tool that has been used by SBCS for several years
and is now being used throughout San Diego County for a more extensive assessment of families and
their family systems. The utilitarian value of both tools has been demonstrated through countywide
use.
SBCS has used the FWBA successfully in the past several years in its other Family Transition Living
Programs, the Assisted Independent Living Program (for youth 16-21), the Runaway & Homeless
Youth Program, and all other SBCS programs. The data from the Family Well Being Assessment and
San Diego County Risk and Resiliency Checkup will be used by the Family Development Associate
and the family to develop a life plan. This data will also be used to evaluate program efficacy in
reducing risk factors, increasing protective factors, and tracking the informational and skill gains of
program participants.
The life plan will clearly state the family's goals, objectives, and action plans that focus on the family
"linking up" and achieving self-sufficiency. The life plan must be voluntarily designed and signed by
the family, thus creating a preliminary level of investment.
Creating the "life plan": In order to quickly engage participating families and to understand their
unique circumstances, each family will co -create with staff an in-depth assessment and "life plan",
and will be assisted in implementing and following through on the life plan with the Family
Development Associate. by a Peer Mentor. The highly creative assessment process includes home,
school, and neighborhood visits, risk analysis and identification of protective factors, as well a
cataloging the family's hopes, dreams, and unique talents and skills. An assessment of school will
include literacy and learning disability issues. The life plan sets a long-term road map of hopes and
dreams and it also sets a short-term plan of what the family needs to accomplish in the near future
(such as independent living skills, education, obtaining concrete job skills, abstaining from drugs, etc.)
to achieve the life plan. Incorporated into this process of creating one's life vision is clarifying the
type of person they want to be. Families are challenged to explore and develop the values and
attitudes that shape their character. They learn that behavioral choices can be easier to decide if they
are clear about how they envision themselves and their character. People and other resources to
assist them are also identified.
• Resident orientation will also include:
• Thorough review of occupancy agreement and house rules and requirements. Residents will be
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5111
asked to initial key sections of the occupancy agreement.
• Explanation of management's right of access.
• Grievance procedures
• Energy conservation information
• Rules regarding use of community space
• Move -out procedures
• How to request maintenance work
• Safety concerns and disaster procedures
B. Rent Collection, Security Deposit and Savings Plan
1. Rent Payment
Residents will pay 30% of their income for rent. This money will cover a portion of operating
expenses. In order to prepare families for independent living, rent will be collected as in a traditional
apartment situation, and late fees of $10.00 per week will be assessed. The rules on payment of rent
will apply equally to all residents and require full payment of rent on the first of each month or within
a five-day grace period. On the rare occasion that it may be necessary, on or after the fifth day of the
month, a three-day notice may be served and eviction procedures may be initiated. Prompt follow-up
on past due rent will be a priority responsibility of the on -site manager and the Owner.
Families will be required to place an additional 20% of their income in an interest bearing savings
account for use when transitioning to independent living. These funds will pay for security
deposits, first and last months rent, moving costs, and other transitional expenses.
The property will recertify resident incomes on an annual basis which will coincide with the
property's fiscal year.
C. Procedures for Grievance and/or Eviction
If a resident feels that he/she has been treated unfairly or improperly, he/she should talk to the
Resident Manager. if the issue is still not resolved, he/she may talk to the Director of Family
Wellness and Self Sufficiency. If the issue is still not resolved, he/she may bring their grievance to
the Executive Director.
Each resident will be given a copy of the Grievance and Appeal Procedure. The procedure will be
explained to each resident household during the initial orientation
Any notice of termination or eviction shall contain a statement of the facts constituting the cause
for the termination or eviction.
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Eviction action for non-payment of rent will begin with a 3-day notice to pay
or quit on the fifth day of the month. All other eviction actions will be proceeded by a 30-day
notice with cause, as required by state law. The time frames for evictions are unpredictable, but
generally 60 days is an average time frame.
The Project will also adhere to the requirements of the Transitional Housing Misconduct Act.
D. Plans for Enhancing Resident Management Relations
1. A copy of the house rules will be given to the resident(s) prior to move -in.
2. The formation of a resident's association will be assisted by management and owner.
Communication between residents and management is expected to occur in the following manner:
• A suggestion box will be set up and publicity given to those suggestions which save the
property money or enhance residents' lives.
• Volunteer committees will be encouraged, such as the following:
• Security committee;
• Community relations committee to address resident needs and concerns;
• Activities committee to initiate and implement social, cultural and educational activities;
• Newsletter committee
3. Safety and emergency preparedness are given high priority at all of the Owner's properties.
During their initial orientation, residents will be shown the use of fire equipment, smoke detectors,
emergency staircases and other features of the property. They will be given information pages on
emergency preparedness in the telephone book. Other materials may be distributed when received
from various agencies.
III. MAINTENANCE AND SECURITY
A. Maintenance Program
1. Maintenance Duties
The Owner's Facilities Manager will do most maintenance work. The Facilities Manager is
expected to comply with local, state, and federal laws and regulations pertaining to the health and
safety of residents.
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2. Maintenance Supervision and Performance
The on -site manager is responsible for supervising and scheduling contracted maintenance
personnel after consultation with the Owner.
3. Tools
Tools shall be furnished to the Facilities Manager. Additional special use and expensive power
tools are provided by the project as needed through purchase, inter -project loan, or rental.
4. Corrective Maintenance
Corrective maintenance is performed in response to requests from residents or management.
Requests must originate or be approved by the Owner and/or on -site manager through the
issuance of work orders.
5. Maintenance Requests
Residents will be encouraged to notify the on -site manager of any maintenance problems
occurring in their apartment or on the property. The manager will have the maintenance request
form which will contain an approval for the maintenance technician and/or vendor to enter their
apartment when they are not home.
6. Resident Neglect and Abuse
Upon move -in residents will be given a list of repair charges that they will be responsible for if
work is required or items have to be replaced. Maintenance services requested by residents due to
their neglect or abuse may be approved after the resident has signed an agreement stating that
they agree to pay for any repairs, replacements, or labor charges required. If resident does not
pay for the damages then they will be served a three-day notice to perform.
7. Reconditioning for New Tenants
Upon vacancy, each apartment unit shall be reconditioned for a new resident in accordance with
the issued checklist.
8. Preventive Maintenance
Maintenance employees will perform most preventive maintenance tasks.
9. Emergency Maintenance
A member of Owner's personnel will be available 24 hours a day in case of an emergency, at
which time the necessary contractor will be contacted to respond.
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10. Gardening and Landscape
A landscaping firm or in-house Project Grow will provide landscape maintenance service. Minor
grounds maintenance may be handled by on -site personnel and the residents association.
11. Contract Maintenance
The Owner is responsible for determining whether it is cost-effective to contract for specialist
services rather than doing them in-house. Contracts will be signed with qualified specialists,
particularly when dealing with potentially hazardous materials, such as pest control, or skilled
tasks, such as roof repairs.
12. Maintenance Stock Control
The on -site manager will implement a well -organized system of stock control, involving regular
inventories to ensure that maintenance parts and supplies are always on hand.
B. Project Safety and Security
Safety and emergency preparedness are given high priority at the project site. During the
residents initial orientation, they will be shown the use of fire equipment, smoke detectors,
emergency staircases, and other features of the property. They will be given information relating
to the 911 services and referred to the emergency information pages in the telephone book.
The Owner, and on -site manager will develop and coordinate a security program by bringing
together his/her resources with those of the police, the residents and the community as a whole.
10