HomeMy WebLinkAbout _ 4.2(b)--Approve Loan to GNRM for Income-eligible Rental Unitt GI �" Y C� F
� � �- ' � ° � � i � CITY OF REDDING
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REPORT TO THE CITY COUNCIL
MEETING DATE: August 19, 2025 FROM: Steve Bade, Assistant City
ITEM NO. 4.2(b) Manager
***APPROVED BY***
sbade@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.2(b)--Approve Loan to the Good News Rescue Mission for Income-Eligible
Rental Unit
Recommendation
Authorize the following actions:
(1) Approve a residual receipts loan in an amount not to exceed $250,000, financed with
Permanent Local Housing Allocation funds, to the Good News Rescue Mission for the
purchase and construction of an income-eligible rental unit located at 3100 S. Market
Street;
(2) A�uthorize the City Manager, or designee, to execute the loan documents with the Good
News Rescue Mission, and complete any other documents necessary to conclude the
project transaction; and
(3) Find that entering into a loan agreement is not considered a project under the California
Environmental Quality Act (CEQA). The act�ual construction of the project will be
reviewed for CEQA compliance.
Fiscal Impact
The City of Redding (City) is an entitlement jurisdiction for Permanent Local Housing
Allocation (PLHA) funds. Since 2020, the City has been awarded $1,946,500 of PLHA funds.
Of this amount, $250,000 will be utilized for this project. The funds will be structured as a 55-
year loan to the Good News Rescue Mission (GNRM), with a zero-percent annual interest rate
and repayment based on residual receipts. This action wi11 have no impact to the General Fund.
AZteNnative Action
The City Council (Council) could choose not to authorize the award and not authorize the City
Manager to execute the PLHA loan documents. This action could negatively impact the project
and GNRM would have to find other funding to complete the rental unit.
Background/Analysis
In February of 2024, City staff was approached by the GNRM with a proposal for the
development of an affordable rental unit on an unused portion of one of their properties. The
630 square foot, US Offsite premanufactured unit, and associated site improvements, will be
loeated adjaeent to the House of Hope, an emergeney shelter for women operated by GNRM.
The income eligible tenant wi11 be either a GNRM employe� or a trained volunteer who wi11
Report to Redding City Council August 8,2025
Re: 4.2(b)--Approve Loan to GNRM for Income-eligible Rental Unitt Page 2
reside in the unit and provide daily support services to the shelter facility. Core responsibilities
include light maintenance, grounds monitoring, emergency coordination, and serving as a liaison
between facility staff and emergency service providers as needed.
As proposed in the PLHA Loan Agreement, the City wi11 provide a Residual Receipts Loan in
the amount of $250,000 from City of Redding Housing Division grant funds to support pre-
development and construction costs, including the purchase of the unit, underground utility
installation, landscaping, hardscape, and offsite improvements.
The vision for this project is to enhance the safety, stewardship, and operational oversight of the
House of Hope campus through on-site presence.
This project supports the Mission's broader goal of ensuring stable, supportive environments for
vulnerable populations by maintaining clean, safe, and well-managed facilities.
EnviNonmental Review
Approving and awarding funds, and executing the PLHA Loan Documents is not considered a
project under California Environmental Quality Act (CEQA). The actual construction of the
project will be reviewed for CEQA compliance.
Council Priority/City Manage� Goals
• Public Safety — "Work to improve all aspects of public safety to help people feel secure
and safe where they live, work, and play in the City of Redding."
� Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
Attachments
^GNRM CTU Loan Agreement- Exhibits
, Form PLHA Loan Agreement
1 RECORDING REQVESTED BY:
City of Redding
2
3 CiTY BUSINESS -NO FEE
Sectlon 6103 of the Ge�vernment C�de
4 of the State c�f California.
5 AND WHEN RECORDED MAIL TQ:
� City of Redding—Housing Division
P;O, Box 496071
7 77'7 Cypress Avenue
$ Redding, CA 96t�49-6071
9
SPACE ABOUE THIS LINE F�R REGQRDER'S USE
10
�1 LQAN AGREEMENT FOR THE USE t?F PLHA PRtJGRA.M FUNDS
12
13 ' This LOAN AGREEMENT �OR THE USE OF F'L�IA PRC?GRAM FUNI�S
14 �f�Agreement") is made and entered inta this day r�f May, 2025 by and between the CITY
15 OF REI�DING, a municipal corporation and general law city (``CITY94 ar "City"); and THE
16 Gt�OD NEWS RESCUE MISSIC?N, a California non-profit corpor�tion {"BORRt}WER"}.The
1,� CITY and B�RROWER may be individually referred to herein as a"Party>'and collectively as
l� �11� "P`�1�5.'�
19 ` WITNESSETH;
�� WHEREAS, Chapter 364, Statutes af 2017 (Senate Bill (SB) 2; Atkins}, as
21 authorized by Health and Safety Code (HSC) Section 504?�, established the Building Homes
�,� and Jobs Trust Fund (Fund) and the Perrnanent Lacal Housing Allocation ("PLH�4'"} Program
�,� which was des�gned to pr4vide a permanent source of funding to all local governments in
�4 California to help c�ties and counties implernent plans to increase affordable housing stoek;
�5 WHEREAS, the State of Califarnia (the "State"), I7epartment c�f I3ousing and
�� Community Development {"HCD99) issued a Notice of Fund�ng Availability ("NQFA"}, dated
27 February 2b, 2Q2Q, tc� provide apprc�ximatel� $195,�00,40fl under the PLHA Program through
�$ its Entitlement and Non-entitlem�nt Local Government Ft�rmula Compc�nent fram the Fund for
Page 1 c�f 5$
Form PLNA Loara Agreement
1 assistance ta local governments pursuar�t ta HSC sectic�n 50470 et seq. and SB 2 (Chapter 3b4,
2 Statutes of 2017) (the "�LHA 5tatutes");
3 WHEREAS;ta implement the PLHA Prc�gram, HCD adopted and issued the HCD
4 2019 PLHA Final Guidelines ("Guidelines" or"PLHA Guidelines>');
S WHEFfEAS,the City is an eligible local gr�vernm.ent for the prc�gram ta administer
6 one or more eligible activities, including on behalf of other local governments that have
°7 dele�ated City to submit an applicatlan and administer their PI.,HA formula allocations;
S WHEREAS,HSC Section 504"70 authorizes the HCD tc�allocate moneys callected
9 and deposited in the Fund for the FLHA Prt�gram, with 9� percent of PLHA funds to local
10 ' governinents, and to adopt Guidelines to implement the PLHA Pragram;
11 WHEREAS, pursuant to the PLHA Prograrn; the City and HCD entered into that
12 certain Standard Agreement dated June 16, 2�21, including Exhibits jA, B, C, I) and E� '
13 (collectively, the "PLHA Standard Agreement"), which aliocates PLHA funding tc�the Cityy
14 ' WHEREAS>the pI;HA Statutes,Guid�lines;Nt7FA,PLHA Standard Agreement,
1 S and all applicable rules and xegulations imposed by HGD on FLHA funding recipients shall
16 callectively be referred to herein as the "FLHA Program",
17 WHEREAS,BO�.RQWER is an experienced develaper of affordable housing that
18 has among its purposes the provision of decent housing that is affardable to 1ow incom�persr�ns;
19 WHEREAS, BQRROWER desires t� perfr�rm the follawing in the City,
20 collectively referred to herein as the "Project": (i) construct and c�perate thereon an
21 appraxlrnately 602 square foat single famiiy rental unzt and related amenities consisting of ane;
2L o114`tJ4�LdLQVd11 ti611119 t6Alt�. G4�11A19�)7
23 WHEREAS, the purpose of this Agreement is, among other things, for CITY ta
24 provide a loan of FLHA funds to BORRC►WER in the maximurn amc�unt af Twc� Hundred Fifty
25 Thousand and �0/100 Dollars ($250,000.00) to pay fc�r the construction costs related to the
26 Prc�ject, as more fully described herein;
27 WHERE�S, in consideration af the loan of PLHA funds; BQR.RQWER has
28 agreed to restrict the Unit in the Project, c�ne (1) Unit (the "Affordable Unit") to r�ntal to and
Page � c�f S'8
Form PLHA Loan Agreement
1 occupancy by qualxfied Low and Very Low Income Hauseholds consistent with the PLHA
2 Program requir�ments and as defined more specifiGally herein;
3 WHEREAS, the development of the Project as descrxbed hereln increases the
4 available affordabl�housing stack within the City and cr�mplies with the ob�ectives set farth in
5 the PLHA Prograrn:
6 NOW, THEREFORE, based upc�n the foregoing Recitals and for good and
7 valuable consideratic�n, the receipt and sufficiency of which is acknowledged by all Parties�the
8 CITY and BORROVdER hereby agree as fc�llows:
9 1. PURF4SE. The aforementioned Recitals are incarporated herein by this
10 reference. CITY has agreed to lend up to Two Hundred Fifty Thausand and 00/100 Dollars
11 ($250;000.4Q) in PI;HA funds ("PLHA Loan'') to BORP OWER upon the satisfacti�n of the
12 conditians precedent to distribution of PLHA Loan funds set farth in Section 12 below. Subject
13 tc� Sections 4'7 and 48 below; BORR4WER shall undertake and c�mplete the Project in
14 accardance with all entitlements and the Seope af Work and Prc�ject Description set forth in
1 S E�hibit S, and shall utilize the PLHA Loan funds as requxred herein and in strict campliance
16 with the PLHA Prc�gram. Once fihe Praject is completedy during the Affordability Period (as
1? defined in Sectian 15 below),the Unit constructed on the Property shail be restricted to rental to
1$ and c�ccupanc��y Ver�Low IncQme H�useholds (tlie "Affordahle Unit"} at an Affc�rdable Rent
19 (as hereinafter defined): The Affordable Units shall consist of one 1-bedroam unit(630 square
20 ' feet).
21 ' For purpnses hereof:
22 a. a"Hc�usehald"is one or:more persons �ccupying an Affordable Unit.
23 b. "Low Income" has the meaning set forth in HSC Secti�n 50�79,5;
24 which is a Ho�.isehold whose inccrme does not exceed $0% of the area
25 ` median income, adjusted for actual family si�e.
26 c. "Very Low Incame"has the mear�ing set forth in HSC Section 50105;
27 which is a Household whose �ncome dc�es not exeeed SO%o c�f the area
28 median income; adjusted for actual family size.
Page 3 of 58
Form PLHA Loan Agreement
1 d. "Area Median Income" shali refer to the mast recent area median
2 family incame published by HCD for Sha�ta County, available at the
3 followin� link. https;//www.hcd.ca.�ovl�rants-funding/income-
4 limits/state-and-federal-income-limits.shtml.
5 e, "Qualified H�usehold"means a Very Low Income Hausehc�ld.
b The Affordable Units shall be rented to and occupied by Very Low Ir�come
7 Households at an "Affordable Rent" in cc�mpliance with the Multifamily Housing Program
8 guidelines Sectic�n 7312 and fihe Sectian 73(�l definition of 46Affordable R�nt." CITY shall review
9 and apprc�ve prapc�sed rents pric�r to entry into leases for occupancy af the Affardable Units by
10 BQRI�:4WER. BORROWER.shall ensure the Affordable Un.its are rented to qualified applicants
11 at the rent levels required herein during the Affordability Period. The maxirnum monthly
12 allowances for utilities and services (excluding telephone) shall not exceed the utility allowance
13 permitted by a Covenant Agreement entered into by CITY ar�d�ORRQWER substantiaily in the
14 �'orm attached as Exhilbit H hereto upon Ciosing(as c�efined in S�ction 12).
15 ' Incorne�nd Affordable Rent limitations for Very Low Income Households
16 and Low I�come Households must be calculated in accordance wit�i the Multifamily Housing
17 Program(MHP),as required by the PLHA Program. BORRQV�ER shall'utilize the mast recently
18 available"MHP Incozne and Rent Calculator"published by HCI�,availabl�an the follawing web
19 page: htt�s://www.hcd.ca.gov/�rants-fundinglincame-limits/state-and-federal-i��come-
20 limits,shtml.
21 This PLHA Loan Agreement, a Prc�missor� Note for the benefit of CITY
22 and given by BQRR_C?�h7ER upon Clasing, substantially in the form attached as Exhibit F hereta
23 (the ``PLHA Note"), a Deed of Trust for the ben�fit of CITY and �iven by BORR�WER upon
24 Clasing; substantially in the form attached as Exhibit E hereto {the "PLHA Deed of Trust"), a '
25 Govenant Agreement fflr the benefit of CITY and given by BORROWER upon Closing,
26 substantially in the form attached as ExhYbit H hereto {the "Covenant Agreement99}, an
27 Environmental Indemnity ft�r t11e benefit af CITY and given by BORROWER upon Clasing,
28 substantially in the farm attached as Exhibit J herefo (the "Environrnenial Indemnity") and any
Page 4 of 58
Form PLHA Loan Agreement
1 other agreement entered into by CITY and BQRROWER in connection with the PLHA L�an ft�r
2 the Prc�ject shall collectively be referred to hereirt as the "PLHA Loan Documernts."
3 B'ORRQWER shall comply with the terms and conditions of the PLHA Loan Dacuments, any
4 c�ther agreements entered into in connection with the development and/or financing for the
5 Project, and any insttument secur�d against the Property. Bt�R�ZC}WER shall strictly cornply
6 with a11 requirements af the 1'LHA�'rogram.
7 2. B(JRROWER'S OBLIGATIUNS. Upon the c�mmencement of the
8 Effective I7ate (de�ined in Section 53 below), B4RROWER sha11 undertake and c�mplete the
9 follc�wing actiVities within the time peri�ads set forth herein and in Exhibxt D:
10 a, Satisfy t�e conditions precedent to distribution of FLHA Loan funds
11 set fortih in Section 12 below.
12 b. Acquire fee title to the Property and assemble any necessarypermanent
13 and constructi�n financing no later than the date set forth in E�rhibit D; ;
14 including any+CITY appraved extens�c�ns theret�.
15 c: Develop the Project in accardance�vith the timelir�e set fc�rth in Exhibit
16 D.
17 d. Qperate the Praject in such a manner sQ that it will remain affordable
18 to Qualified Hausehc�lds far the Affordability Period as defined in
19 ' Section 15 �ierein without regard to (i) the term of the PLHA Note, or
2Q {ii) transfer c�f awnership.
21 e. Maintain the Pro�ect in compliance with;applicable local, state, federal
22 laws, codes and regulations as further described in Section 18 bel�w
23 until the expiration of the Term of this Agreement set forth xn Section
24 '7 below; and the Affordability Period set fc�rth in Section 15 below.
25 3. CITY'S OBLIGATIONS. CITY hereby agrees to undertake and cornplete
26 the fc�llowing activities, subject to its receipt af PLHA funds from HCD and B�RRaWER's
27 satisfactory cc�mpletion of the conditions precedent to disbursernent of PLHA funds set fc�rth in
28 this Agreement:
Page 5 of 58
Form PLHR LoanAgreement
1 a. Provide the PLHA Loan to BORR4WER in the amount identified an
2 Section 1, to be u�ed to pay a portion af the acquisition and eligible
3 rehabilitatian/construction costs far the Project in accordance with the
4 PLHA Program; and
S b. Comply with all af its obligatiQns under the PLHA Standard
6 Agreement and alI other ap�licable requireznents af the PLHA
7 Program.
8 4. PLHA Loan. Sub;ject to the satisfaction of the canditians precedent to
9 disbursement of the PLHA Loan set forth in Section 12 below, CITY shall provide financing ta
10 Borrower in the fo�•m of a loan in the amount of the 1'LHA Lcaan,pursuant to the following terrns
11 and conditic�ns:
12 a. Terrn of PLHA Loan. . The rnaturity date of the PLHA Loan shall be
13 the Iater to occur af(i)May�, 2080 or (ii) fifty-fiVe (55} years from
14 the recordation of the Notice of Completir�n in the Official Records for
15 ' the building for which rehabilitation is carnp�eted far the I'roject(the
1,6 "PLHA Loan Term"). The terrn, "Official Recards" used herein shall
17 ' mean the Official Re�ords c�f the Recorder's O�fice tyf Sh�sta County,
18 b. Plincipal_ The tatal a�nQunt af th� P'L�IA Loan shall a�at ex�e�tl Two
19 Hundred Fifty Thousand and 00/100 Dollars ($250,fl40.00), and;shall
20 b� evidenced by the PLHA Note, which nc�te shail he secured by the '
21 PLHA l�eed of Trust.
22 c. Interest. The interest rate shall be zero percent(0%) simple interest per
23 ' annurn.
24 d. Repa�. The terms of the PLHA Note shall be as fallaws:
25 ' (l) That the PLHA Loan will accrue simple interest at a rate of zera
26 percent (0%0) per annum, except in the case of an event of default
27 as hereinafter pravided vaherezn a higher default interest rate shall
28 ' apply as mc�re specifically set forth in the PLHA Note, and shall be '
Page 6 of 58
Form PLHA Loan Agreement
1 repaid on an annual basis from the Project's Residual Receipts
2 (defined in Section 4 belc�w), Interest will begin to accrue 30 aays
3 from the recordation of the Notice of Campletion in the C?fficial
4 Records.
S (2) The PLHA Note shall be repaid by BQRROWER to CITY as
6 follows:
7 i) Fifty percent (S�%o} af the Project's Residual
8 Receipts sha11 be paid anrrually towards outstanding
9 amaunts under the PLHA Loan. Such payment of
10 Fifty percent (50%0) of the Prc�ject's Residual
11 ' Receipts tc� CITY sh�ll continue annuall� until the
12 PLHA Note �s repaid in full,and
13 ii) Fifiy percent {50%) of the Project's Residual '
14 Receipts will be paid to B(�RROWER.
1S (3) The Project's Residual Receipts sha11 be determined based on an
16 aru�uai review af certified financial statements for the Project.
17 Annual audited financial statements shall be 5ub�nitted ioy
18 BQRRC}WER to CITY within ninety{94) days fi�ilawir�g the close
19 af the Project fiscal year cornrnencing on April 1St of the first full
Z{� calendar year following the recordation of the Natice af
21 Completion. All outstanding principal along with accrued intexest
22 shall be due upon the maturity date of the PLHA Note and the
23 expiration of the FLHA Loan Term as set forth in Section 4.a. The
24 first payment frorn B4RROWER to CITY shall be due c�n 3uly 1St '
25 in the first fu11 calendar year following the date of the recordation
26 of the Notice af Completion� tc� the extent of available Residual
27 Receip�s, calculated in accordance with the PLHA Nate.
28 Subsequent payments shall be made on each Ju1y ls� thereaftex to
Page 7 of 58
Form PLHA Loan Agreement
1 the extent Qf available Residual Receipts until the earlier of full
2 repayment of the FLHA Loan or the PLHA Loan maturity date as
3 set f�rth above.
4 (4} The term "Project Residual Receipts" used herezn shall mean the
5 gross rental and �ther income from all residential and non-
6 residential companents of the Prc�ject, including, withaut
7 limitatian; proceeds from loss of rent insurance; and any other
$ ineome to the BORROWER derived from the ownership�operation
9 and management of the Pro�ect and the Property, but excluding
1 Q interest on required reserv� accounts� less the fc�llowing operaCing
l l expenses:
12 i) 4perating Expenses means all
13 reasc�nable and proper expenses; as
14 approved by the City,of the operation of
1S the Project including, but not limited to;
l b loan payments payable before the
17 calculation of allowable Distributions as
1� approved by the City, the annu�l
19 servicing fee, if applicable; insuranee,
20 real estate taxes; ardinary maintenance
21 and repair� c�asts of marketing, project
22 management, supportive serv�ces, fuel,
23 utilities, garbag� disposal, sewer
24 charges, aud�t expenses, the required
2S impounds, reserve and escrow d�posits,
26 reasonable attorney fees incurred in
27 operating the Project, and such other
28 payments as tl�e City may require or
Page 8 of 58
Form PLHA Loan Agreement
1 specifically approve ir� writing as
2 Operating Expenses. In no event shall
3 attarney fees ar l�tigatic�n costs afher
4 than as stated, or expenditures normally
� required to be paid aut af the
b ' replacernent reserve; be treated as
7 ' Operating Expenses unless specifically ',
8 apprQveti in writing by the �zty.
9 ii) ii)Non-Standard Operating Expenses
10 means expenses as�:pproved in writing
11 by the City payable after all Operating
12 Expenses and betore Distributians.Non-
13 Standard C}perating Exp�nses ��all be
14 paid in the following priarity and may
15 ' include {if applicable)the follc�wing: (i)
1 b ' cash flow c�perating res�rves; (iij non-
17 City required operating reserves funded
l� from Proj�ct cash flow� (iii) deferred
19 (�wner/Qperator fee ( only if the P�oject
20 was funded vvith the proceeds from the
21 sale of tax credits ar�d the Projecthas a
22 limited partner inv�stor) pa�able as
23 determined by QwnerlQperator,not to
24 ' exceed the tot�l approved deferred
25 ' Qwner/4perator fea; and(iv)partnership
26 ' asset management fees. The
27 calculation af annual c�perating expenses
28 shall be subject ta the reasonable
Page 9 of 58
Form PLNA Laan Agreement
1 approval af the City Manager or
2 designee,
3 e. Securitv. The PLHA Note shall be secured by the PLHA Deed of Trust,
4 The PLHA Deed of Trust and this Agreement shail be �ecorded in a lien
S positian junior tc� the Covenant Agreem�nt and any deed of trust securing
6 a third party, comrnercial bank construction c�r permanent loan ar another
7 mutually acceptable senior lender as agreed ta by the Parties in writing(the
8 "Senior Loan").
9 f. Prepayme�t. Prepayment of principal and/c�r intere5t under the PLHA I�tc�te
10 ` rnay occur at any tim� withauf penalty; pxovided, however (i) the
11 requirements of Se�tion 18, Compliance with Laws and Regulations, shall
12 remain in full force and effect for the term af this Agreement specified in
1� Section ? below, �nd (ii) the affordability requirements set forth in th�
14 C�venant Agreernent shall remain in effect until the expiration of the
15 Affardability Periad.
16 5. PRIOR CITY AI'PRt�VAL. Except as otherwise expressly provided in '
17 this Agreement, approvals required�f the CITY sha111�e deemed granted by the written approval
18 of the City Ivlanager or designee: Nc�twithstanding the foregoing,the City Manager,or design�e;
19 may, in his or her sale discretian, refer to the governing bady af the CITY any item requiring
20 CITY approval; otherwise, "CITY appraval"means and refers to approval by the City Manager
21 or designee.
2� 6. MOI�IFICATIQNS. The City Manager or designee shall have the right to
Z3 ' make non-substantive ehanges to th� attachm�nts to this Agreem�nt in order to ensure that all
24 such attachments are consistent with the terms and provisic�ns c�f this Agreem�nt.
25 7: TERM OF AGREEMENT. This Agreement shall becorne effective upon
26 the Effect�ve Date, as defined in Section �3 belaw;and unless terminated earliex pursuant to the
27 terms hereaf; shall continue in full force and �ffect until the later to occur c�f{i) May_, 2080
28 or {ii) fifty-five (55j years from the recordatic�n of the Notice of Cc�mpletian in the 4ffzcial
Page 10 of 5$
Farm PLHA Loan Agreement
1 Recards for the Iast building for which rehabilitation is completed for the Project ("Term of
2 Agreement").
3 8. B4RROWER'S REFRESENTATIONS. BORRt�WER represents and
4 warrants tc� CIT� a�fallows:
5 a. Authority. BQRRt�WER is a duly arganized nonprofit public
6 benefit eorporatic�n,validly existing and in good standing under the
7 laws of fhe State of California. The copies of the documents
8 evidencing the organization of B�RROWER, which have been
9 deli�ered to CITY, are true and c�mplete copies ofthe originals;as
1Q amended to the date of this Agreement: BORROWER, and the
11 persons executing and delivering the PLHA Loan Documents on '
12 its behalf; have fuli right, pawer and lawful authority to enter into
13 this Agreement and aecept the pLHA Loan funds and undertake
14 development c,f the Project and all ol�llgations as provided in the
15 PLHA Loan Documents. The execution,perft�rmance and delivery
16 ' af this Agreement by BOI�RQWER has been fu�ly authorized by
17 all requisite actions an the�art t�f BORRO'VJER.
18 b. No Conflict, Tc� the best of BOFtRt�WEIt's kno�vvledge,
19 ' BQRRCIWER's execution; delivery and performance of its
20 obligations under this Agreement will nat constitute a default or a
21 breach under contract, �gre�ment c�r c�rder tc� which B�RROWER
22 is a party or by which it is bound.
23 c. No Bankruptc�. BQRI�(�WER is not th� subject of a bankruptcy
24 proceeding.
2� d. General. B()RROWER has access to professi�nal advice and
26 suppart to the extent necessary to enable BtJItRQWER tc� fully
27 cornply with the terms of this Agxeement; and to otherwise carry
28 ' out the Froject. Neither BQRRC)WER nor any of its pr�ncipals is
Page l 1 of 58
Form PLHA Loan Agreement
1 presently debarred, suspended, proposed for debarment, declared
2 ineligible, or voluntariiy excluded fram participation in connection
3 with the transaction cc�nternplated by th�s Agreement.
4 e. Use of PLHA Funds. Borrawer repiesents and warrants that it wi11
5 use all PLHA funds in a manner consistent;and in cc�rnpliance with
6 ' all applicable state and f�deral statutes,rules,regulati�ans,and laws,
7 including withaut liinitatit�n,all rules and laws regarding the FLHA
$ Frogram, as weil as any contract� for the PLHA funds entered into
9 between City and HCD.
10 f. Prior to Closin�. BORRQWER shall, upon learning of any fact or '
11 conditian which would cause any of the warranties and
12 representatians in this Section 8 not to be true as of Clasing,
13 imm�diately give written notice caf such fact or condition to CITY,
14 Such exception(s)to a representati�n shall not be deemed a breach
15 by BORROVVER hereunder, but shall constitute an exception
16 which CITY shall have the right to approve or disapprove if such
17 exception would have an effec�c�n the value and/�r operation ofthe
18 Praject Site.
19 g. A�plicable Requirernents. BORROWER represents and warrants
20 that after Closing, the Frc�perty and all irnprc�vements located
21 therec�n, including any partion thereof, shall cornply with all
22 applicable Gc�vernmental Requirements (as defined in Section
23 18.b) �nd all covenants c�r restricti�ns of record (tagether, the
24 "APPlicable Reqnirernent�"). If the Property and all
25 ' improvements Iocated thereon do not comply with said Applicable
26 ' Requirements, B(JRRflWER shall promptly rect�fy the same at
27 BQRRt�VJER's expense.
28
Page 12 af 58
Form PLHA Loan Agreemenfi
1 h. CEQA. BORR4WER represents and warrants that the Project will
2 be developed in full eornpliance with all applicable requirements
3 of the California Environmental Quality Act (``CEQA"�.
4 concerning this Agreement, including without limitation any
5 challenge to CEQA compliance,
6 i. Prevailing_Wag;e and Labor Laws. BORROWER represent and
7 warrants that it shall cc�mply with any applicable labor regulations
8 and a11 other State laws, including, without Iimitatiori, California
9' prevailing wage law, a� set forth in Labor Cade Section 1720 et
1 Q seq. and s�ali pay prevailing wages in accordan�e with Calif�rnia
11 law in connection with the construction of the impro�vements which
12 compromise the Praject, however exemptions may apply.
13 ' 9. COMPLETIQN SCHEDL.TLE. Fram and after the Effective Date,
14 B4RRQWER shall proceed consistent with the Schedule of Ferformance ("Schedule of
15 Perfi�rrn�nce") set forth in Exhibit D, (as such schedule may be amended pursuant to Section
16 11), subject ta Force Majeure Delays, as defined in��ctiar� 10.
17 ' 10. FORCE MAJEURE DELAYS. "Force Majeure" means e�vent(s} beyond
1$ the reasonable cantrol of BORR:OWER, and which cauld nat have been reasonably anticipat�d,
19 which prevent(s} BQRR�WER fram camplying with any of its non-payment abligations under
2� this Agreement,including,but not Iimited to:acts of God,acts of war;acts or threats c�f terrc�rism,
21 civil disorders, strikes, labar disputes, flaod, fire, explQsi�n, earthquake or other similar acts.
22 "Force Majeure I�elay" is delay due ta Force Majeure ever�t that, in each case, {i) materially '
23 adversely affects the perfarmance by B4RFtOWER of its obligatit�ns hereuncler, (iij is not
24 reasonabiy foreseeable and is b�yond BORROWER's reasonable contral, (iii) despite the
25 e�ercise af reasonable dili;gence, cannot be prevented,avoided ar removed by BDRROWER�nd
26 is not attributable to the negligence,willful misconduct c�r bad faith of BORP�OWER,and{iv}is
23 not the result of the failure r�f BORROWER to timely perforrn any c�f its obligations under this '
28 Agreement. Notwithstanding the fc�regoing,a Force Maj�ure Delay sha11 not be deemed to have
Page 13 of 58
Form P�HA Loan Agreement
1 occurred unless BORROWER has notified CITY in wrlting of such occurrence of a Force
2 Majeure event within fifteen (15} days after such occurrence and has provided CITIr with the '
3 details of such event and the length of the anticipated delay within an addxtional fifteen{15)days
4 thereafter. BORRflWER shall diligently attem�t to remove;resolve,ox atherwise eliminate such
5 event, keep CITY advi�ed with respect thereto; and shall commence performance c�f its
6 at�ligations hereunder immediafely upon such removal, resolution or elimination. Durzng the
7 occ�rrence and cc�ntinuance of a Force M�jeure Delay, BORR�WER shall be �xcused from
8 perfc�rmance of its obligatic�ns und�r this Agreement to the extent the �orce Majeure event
9 prevents BC)RRUWER frarn perfQrming such obligations. A Force Majeure Delay shall not
10 excuse BORR:OWER from the timely perforrnance �f its payment dbligations under the PLHA '
11 Loan D�cuments.
12 ' 11. EXTENSI4N OF TIME. CITY may grant an extension to the Schedule of
13 Perforrnance set forth in Exhibit D for the purp�se of c�m:pleting B�RR�WER's activities
14 which eanncrt be completed as outlined in�xhibit D despite cornrnercially reasonable efforts to
15 do so. F3ORR4WER shall request said extensic�n in writing, stating the reasc�ns therefc�re, which
16 extension must be first approved in writing by the CIT'Y in its reasonable discretion. The City
17 Manager or designee, nn behalf of the CITY and with�ut referring such rnatter to the City
18 Council may extend all pending d�adlines an the Schedule af Performance on twc� (2) or fewer
19 occasions, sa long as the aggregate duratian af such administratiVe time extensions i�no �reater
20 than ninety(90)days. Every term,conditi�n,covenant;and requirement of this A�reement shall
21 continue in full force and effect during the period of any such exter�sian.
22 12. CQNDITIONS PRECEDENT TC� �ISBURSEMENT OF PLHA LC?�1N
23 FLTNDS. The date upc�n which the PLHA I�eed Qf Trust is recc�rded in the afficial records of
24 Shasta County shall be referred ta herein as the "Clasing." CITY shall disburse PLHA Laan
25 funds in accordance with this A�reernentta BORROWER subject to the Closing having c�ccurred
26 and Borrc�wer's satisfaction of the conditions precedent set forth below. CITY shall not be
27 obligated to effect�he Closing until the fallowing conditions precedent have been satisfied:
28
Page 14 of S8
Form PLHA Loan Agreemen#
I a. BC}RR.�WER executes this Agreement and delivers tc� CITY for
2 recardati�n in the Official Records;
3 b. Borrc�wer sut�mits written evidence to CITY that Borrower has
4 abtained sufficient financing comrnitments necessary to undertake the
5 construction and operation af the Project as required herein;
6 c, BORROWER provides CITY with evidence af insurance as required
7 herein,
8 d. BORROWER: executes the PLHA Deed of Trust, in recordable form,
9 and delivers such document ta CITY far recordation in the Official
10 Records;
11 e: BC)RROWER exeeutes the PLHA Note, and delivers it to CITY;
12 f< B�RROWER executes the Covenant Agreement, zn recordable form,
13 and delivers t�the CITY far recordation in the 4fficiai Recards;
14 g. CITY executes and record� a Request for Notice of Default for any
15 Senic�r Loan canforming in form and substanee to Exhibit I3 attaehed
16 hereta;
17 h. BORR�WER executes the Environmental Indemnity, and delivers it
18 to CITY,
19 i. BQ12R(7WER has caus�d the Praperty to be divided or reconfigured at
20 BORRUWER_'s ccrst in such a manner that the Project may be financed
21 and obtain title insurance.
22 j. BORR4WER causes a title cornpany,reasonably acceptable to CITY,
23 at BORROWER'S expense, ta issue or be irrevocably eommitted ta
24 issue an ALTA lender's policy in favor of CITY, insuring the �LHA
25 I�eed of Trust as a subordinate priority manetary lien against the
26 Property junior tc� the deed of trust securing the Senic�r Loan and such
27 ather financing as has been approved as senior by the CITY f�r the
28 develc�pment of the Prc�ject;
Page 15 of 58
Fc�rm PLHA Loan Agreement
1 k. BORROWER provides satisfactary evidence that Senior Loan and any
2 other financing obtained for the Prc�ject will close concurrently with
3 the Closing;
4 1. BORI�UWER provides a financial pro forma or similar satisfactory
5 evidenee that the Senior lLoan, perrnanent financing and any other
6 financing obtained for the Praject, when ct�mbined with the PLHA '
7 Loan, will result in the development and aperatian af the Project 6eing
8 financially feasible;
9 m: BORR4WER is not in default under the terms of this Agreement or
10 any other a�reement related to the financing of the Proa ect;
I1 n. BORRQ�1EIt provides satisfaGtory evidence that �t has seeured any
12 and all necessary land use entitlements, permits, and appr�vals which
13 may be required far construction of the Project pursuant ta the
14 applicable rules and regulatians c�f CITY and any other governmental
15 agency with jurisdiction over such construction work. Bt�RRQWER
16 shall have secured,without lirnitation,the following in connection with
17 the Pr�ject: all entitlements, changes af zoning, lat line adjustments,
18 any ancl a11 necessary studi�s requir�d irzcludin� biat z�at limited tc�
19 archaeological, cultural, and environmental, and traffic studie� and
20 ' lead-based paint surveys, BORRC7WER shall ha�e paid all eosts,
21 ' charges and fees assc�ciated therewith;
22 0, Bt�RROWER provides duly executed documents and instruments
23 evidencing that�t�RROWER o�vns fee title to the Property,
24 ' p> B4RRQWER provides satisfactory evidence that it has satisfied all
25 ' conditians preeedent to the issuance of ail permits necessary for the
26 developm�nt of the Property and all such perrnits are available for
27 issuance,other than payment Of fees; and
28
Page 16 of 5$
Farm FLNA Loan Agr�ement
1 q. BClRR�WER provides satisfactory evidence to CITY that it has h�red
2 a qualified prc�fessianal firm to review and manitor preva�ling wage
3 ct�mpliance for a�1 submissians of contractat°s certified payrolls to
4 CITY if applicable.
S 13. OUTSTDE CL;USIN� DATE. If the Closing fails to Qccur by July 1, 2�25
6 (the "Outside Clc�sing Date"); then t11is Agreement shall automatically terminate and be of no
7 further force and effect and Borrower shall be released and discharged from any obli�;atic�ns
8 under this Agreement,e�cept as to those obligations which by their terms survive termination of
9 this Agreernent. The PLHA Loan funds allocat�d, reserved, or placed in a PLHA account
10 pursuant ta this Agreement rnay be reallocated by CITI�.
11 Notwithstanding the fc�regoing,the Parties hereto acknowladge that many af the '
12 patential sources crf financing for the Prc�ject are subject to cornpetitive awards, and that zt is
13 difficult tr�ic�entify with certainty the period of�ime needed to obtain financin�and entitlements
14 necessary far construction of a Phase. In Iight of the foregaing, the Outside Closing Date (i) i�
15 applicable, may be automatically extended to such closing date as required by the Tax Credit
16 Allc�catic�n Comrnittee pursuant to an award of Low Ineome Housing Tax Credits for the Froject
17 made prior to t�e �utside Cl�sing I)ate; or (ii) shall be subject ta written extension with the
18 cansent of the Director or h1s or her designee through 2025. The City Manager shall reasanably
19 consider any request for extensions to the autside Closing Date based on BORROWER's
20 upda:tes on pro,gress toward obtaining financing and entitlements. Any extension of the Qutside
21 ' Closing Date past July 1, 2025 shall require the consent of the Redding Housing Divisiori.
22 ' 14. I7ISBURSEMENT 4�F FUNDS° RETENTIQN. LTpan and after the Clasing;
23 CITY slhall disburse the PLHA Loan F'unds in accordance herewith. I�isbursement of PLHA
24 Laan fiinds sha11 accur upon t�e receipt of capies of invoices and conditional (upon receipt of
25 payment) lien releases far eonstructic�n costs fia be paid with the prc�ceeds of the PLHA Loan.
26 Any disbitrsement of f'unds is expressly conditianed upon the satisfaction of conditions set forth
27 abc�ve. CITY shall disburse to BOI�:RaWER the PLHA Loan fu�ids ab�ve on a °'cost-as-
28 '
Page 17 of 58
Form PLHA Loan Agreement
l incurred" basis for all eligible approved casts under itemized schedule shown in Exhibit C as
2 fallow�:
3 a. All disbursernents shall be based on a percentage of completion and
4 all disbursements shall reflect a 10%o retention.
5 b. CITY shall release final dra�v down of ten percent (10%) of the<
6 PLHA Loan fallowing receipt of all af the iterns listed below, in
'7 such form as is satisfactory tc� CITY.
8 1) Conditional lie�release from general contractor,
� 2) recorded Natice of Cornpletion,
10 3) Permanent Certificate c�f Occupancy;
11 4) architect certificatinn identifying units thaY are accessible ta
12 individuals with mobility irnpairrnents and units that are
13 accessible to zndividuals with sensory impairments in
14 ' campliance with Appl�cable Caiifornia law;
15 5} subrnission ofdocumentation that shows compliance with the
16 Uniforrn Relocation Assistance and Real Froperty
I7 Acquisitian Policies 1�ct af 1970 and 24 CFR Part 42;
18 6) submission af a Project completion report including Tenant
19 Checklist which is attached hereto and by this reference
20 incorporated herein;
2 i 7) Tenant Selection I'olicy;
22 8} Ivfanagement Plan;
23 9) Certified statement of fnal develaprnent costsg and
24 10) Certified statement of final sources and uses of funds for the
25 Project.
26 11) Expiration of applicable mechanics lien deadline.
27 15, TEI�MS OF AFFORDABILITY. The Affordable Units in the Project shall
28 remain occupied and rented by Qualified Households for an Affordable Rent as set forth herein
Page 1$ ofSB
Farm PLHA Laan Agre�rnent
1 and in the Covenant Agreement untii the later of(i) fifty-five (55)years from the recordation af
2 the Notice of Completion in the Official Recard� for the last building for wh�ch construction is
3 ct�mpleted for the Project, or on or ar�und (iz) May ,208f� (the "Affordability Period93):
4 16. INSU CE. Without limiting or diminishing the BORROWER'S
5 obligation to indemnify or hold the CITY harmless, B(�RROWER shall procure and maintain or
6 cause to be maintained, at its sole cost and expense9 the following insurance coverage's during
7 the term of this Agreernent. As respects to the insurance sectzc�n c�nly, the CITY herein refers to
8 the City of Redding, its Agencies, Districts, Special Districts, and Departments, their respective
9 directors, af�cers, Council members, ernployees, elected or appc��nted officials, agents c�r
10 representatives as Additional Insur�ds.
11 a. Builder's All Risk (Caurse c�f Gonstruction� Insurance,
12 ' BORRUWER shall provide a policy of Builder's A11 Risk(Course
13 af Con�truction) insurance coverage including {if the work is
14 Iocated 1n an earthqualce c�r flood zone or if required on financed or
15 ' bc�nd financing arrangements) cc�verage for earthquake and flQod,
16 covering the CITY, BORRQWER and every subcontractar, of
17 ' every tier, for the entire Praject, including property ta be ased in
18 the constru�ction of the work while such property is at off-sit�
19 storage lacations or while in trans�t or temparary off-site
20 ' storage. Such policy shall include, but nc�t be limited t�, car�erage
21 for fire, ct�llapse, faulty warl�manship, debris removal, expediting
22 ' expense, fire department service charges, valuable papers and
23 records, trees, grass; shrubbery and plants. If scaffolding, false
24 work and temporary buildings are insured separately by the
25 BaRROWER or others, evzdence of such separate coverage shall
26 be provided to CITY prior to the start of the work. Such poli�y
27 shall be written c�n an all risk basis and � cornpleted value
28 form. Such policy shall cover the full insurable value. Such policy
Page l9 of 58
Form PLHA Loan Agreement
1 shall also pravide coverage far temporary structures (an-site
2 aff�ces, etc.), fixtures,rrrachinery and equipment being in�talled as
3 part of the wc�rk, Bt7RROWER shall�e responsible for ai3y and all
4 deductibles under such policy. Upon rec�uest by CITY,
S BQRR()WER shall declare a11 terms, conditions, coverages and '
6 limits of such policy. Such p�licy shail name the CITY as a lass
7 payee as their interest may appear.
8 b. Worlc�r's �amt�ensation.
9 If the BORROWER has emplc�yees as defined by the State of
10 ' California, the BQRRC}�VER sha11 maintain statutory Warkers'
11 Campensation Insurance (�overage A) as prescribed by the laws
12 of the State of California. Policy shall include Employers' Liability
13 (CQverage B) including Occupatic�nal Dis�ase with limits nat less
14 than $1,040,U00 per person per accident. The palicy shall be
i 5 endorsed to waive subrogation in fa�or of The City of Redding,
16 Paliey shall nam�the CITY as Additional Insureds.
17 c. Comr�ercial General Liability Insurance.
18 Cammerciai General Liability insi�rance coverage, includi�g but
19 not limited tc�, premises liability, unmodified contractual liability,
2Q products and eompleted operations liabil�ty, personai and
21 advertising injury, and cross liability coverage; covering claims
22 which may arise fram or out of BORRt�WER'S performance pf its
23 obligations hereunder. Policy shall name fhe CITY as Additicrnal
24 Insured. Policy's limit of liability shall not be less than$2,(}00,000
25 per occurrezzce cornbined single limit. if such insurance contains a
2b general aggregate limit, it shall apply separately ta this agreement
27 ' or be no less than twQ (2) times the occurrence limzt. Policy shall
28 name the CITY as Additional Insureds.
Page 20 of 58
Form PLHA Loan Agreement
1 d. Vehiele Liability Insurance (if G�neral Contractor does nc�t).
2 " If vehicles or mobile equipment are used in the p�rformance of the '
3 obligatxons under this Agreement, then BORR(�WER shall '
4 maintain liability insurance far all c�wned, non-owned c,r hired
5 vehicles st� used in an amount not less than $I,OOO;OQO per
6 occurrence combined single lirnit. If such insaran�e contains a
7 general aggregate limit, it sha11 apply separateiy to this agreernent
8 c�r be no less than two (2) tirnes the o�currence limit. Policy shall
R name the CITY as Additional Insureds;
10 e. General insur�nce Pravisions—Ali Lines.
1 l l) Any insurance carrier providing insilrance coverage
12 hereunder shall be admitted to the Stat� of Califarnia and have an
13 A M BEST xating of not less than A: VIII (A:8) unless such
14 requirements are waived, in writing, by the City Risk Manag�r. If
15 the City's Risk Manager waives a requirement far a particular
16 insurer such waiver is only valid f�r that specific insurer and only
17 for ane policy term.
18 2} Th� B�URR(JWER �n�ast declare its insurance self-
19 insured retentic�n for each cover�ge required herein: If any such
20 self-insured retention exceed $5{�0?C100'per occurren:ce each such
21 retention shail have th� prior written consent of the City Risk
22 Manager before the commencement of operatic�ns nnder this
23 Agreement. Upon notification of self-insured retention
24 unacceptable to the CITY, and at the election of the City's Risk
25 Manager, BORRQWER'S carriers shall eitheri 1) reduce or
26 eliminate such self-insured retention as respects this Agreement
27 with the CITY, or 2)procure a bond wh%ch guarantees payment of
28
Page 21 c�f S8
F€�rm P'LHA Loan Agreemenk
1 ' losses and related investigations, claims administratian, and
2 defense costs and expenses.
3 ' 3) BORRt7WER shall cause BORRQWER'S
4 insurance carrier(s) to furnish the City of Redding with either 1) a '
5 ' properly executed c�riginal Certificate(s) of Insurance and certified
6 original copi�s of Endorsernents effecting coverage as required
7 herein, and 2) if requested to do sa orally or in writing by the City
8 ' Risk Manager, pravide original Certified copies t�f policies
9 including all Endorsements and all attacl�ments theretQ, sl�owing
1 Q such insurance i�in full force and effect.Fu�-ther, said Certificate(s)
11 and polic�es of insurance shall contain the covenant of the
12 insurance carrier(s) #hat a minimurn of thirty (30) days written
13 notice shall be given to the City af Redding prior to any material
14 modification, cancellatiQn, expiratzon Qr reductic�n in coverage c�f
15 such insurance. If BORR()WER insurance carrier(s}policies does
1 b not meet the rninirnum notice xequirerrnent fi�und herein,
17 BORR(�WER shall cause St)RR(?WER'S insurance carrier(s) tc�
1$ furnish a 3Q day 1Votice of Cancellatic�n Endorsement.
19 4} In the event of a material modification,cancellation,
2Q expiration,or reductzon in caverage,this Agreement sha11 term�nate
21 forthwith; unless the City of Redding receives, prior to such
22 effective date, another praperly executed or�ginal Certificate of
23 Insurance and original copies of endorsements or certified ariginal
24 palicles, including all endorsements and attachments thereto
25 evidencing caverage's set forth herein and the insurance requiretl
26 herein is in fu11 force and effect, BQRROWER shall not commence
27 operations until the �ITY has been furnished original Certificate
28 (s) c�f Insurance and certifi�d original copies �f endorsem�nts and
Page 22 of 58
Fc�rm PLNA Loan Agreement
1 if requested, certified originai policies of insurance including all
2 endorsements and any and all oth�r attachments as required in this
3 Sectian. An individ�al autharized by the insurance carrier to da so
4 on its behalf shall sign the original endarsements fc�r each policy
5 an� the Certificate�f Insurance.
6 ' S) It is understood and agreed to by the parties hereto
7 that the Bt�RROWER'S insurance shali be construed as primary
8 insurance,andthe CITY'S insurance and/or deductibles and/c�r self-
9 insured retention's or self-insured programs shall not be construed
10 as contributary.
11 6) If, during the terrn c�f this Agreement ar any
12 extension thereaf; there is a material change i�n the scope of
13' services, or, there is a material change in the equipment to be used
14 in th� performance of the scope af work; or; the term �f this
1S Agreement, including any extensions thereaf, exceeds five (5)
16 years, the CITY reserves the right to adjust the types of insurance
17 and the monetary limits of liability required under th'rs Agreement, '
18 ' ifin the City Risk Management's reasonable judgment, the amount
19 ' ar type of insuranc� carried by the BORROWER has becc7rne
20 inadequate.
21 7) BC?RRQWER shall pass dawn the insurance
22 obligations cc�ntained hereln ta all tiers of subcontractors working
23 under this Agreement.
24 $} The insurance requirements ct�ntained in this
25 Agreement may be met with a program(s) of self insurance
26 aeceptable to the CITY.
27
28
Page 23 of 5�
Form PLHA Loan Agreement
1 9) BQRRf)WER agrees to notify CITY c��an�y claim
2 by a third party or any incident or event that may give rise tc�a claim
3 arising froim the performance of this Agreement
4 17. FINANCIAL AND PRC�JECT RECORDS. BC?RR4WBR sha11 maintain
5 financial, prograrnmatic, statistical, and ather supporting recards of its operations and financial '
6 activities in accordance with the requirements of any frnancing secured by the Project �nd any
7 a�plicable Governmental R:equirements, which record� shall be c�pen to inspection and�udit by
8 aathorized representatives of CYTY and HCD during regular warking hours. CITY and HCD,c�r
9 any of their representatives, have the right caf access with at least forty-eight (48) hours prior
10 natice� to any pertinent baoks, dc�cuments,papers, or other records of BORR{�WER, in order to
11 make audits,exarninations;excerpts,and transcripts. Said rect�rds shall be retained for such time
12 as may be rec�uired by the regulatic�ns �f the PL,HA Program, but in nc� event no le�s than five '
13 (5) years �fter the Praject c�mpletion date as evidenced by recordatian of the Notice of
14 Completiony except that records c�f individnal tenant incorne verifications, project rents; and
15 pro�ect xnspections must b�retained for the most recent five (5) year period, until five (5) years
16 after the Affordability Period terminates. If any litigation; claim, negotiation, audit, or other
1� action has been st�rted before the expiration af the regular period specified,the records must be
1$ retained until completian of the action and resolution of all issues which ari�e �rom it, or until
19 the end af the regular period, whichever is later.
2a 18. COMPLIANCE WITH LAWS AND REGULATIONS•
21 INDEMNIFICATION. By executing this Agreement,�ORRQWER hereby cerfiifies that it will
22 adhere to and eomply with all applicable federal,state and lacal laws,regulations and ardinances. '
23 B(JRRO'WER agrees to indemnify, defend, and hold the Indemnified Parties (as defzned in
24 Section 38} harmless from and against an.y and all liabilities, costs or fees (including, but not
25 litnited tc�, attorneys' ccasts and fees) arising out of, in connectian �vith or related to
26 B4RROWER's failure ta comply with any and all applicable federal, state and local Iaws,
27 r�gulations and ordinances in cc�nnectian with the development of the Project.. Without
28 limitati�n, BORR�WER shall camply with the fallowing as they may be applicable to
Page 24 af 58
Form PLHA Loan Agreement
1 BORRUWER in cannectic�n with the use of PLHA Loan funds and/or development ofthe 1'roject
2 on the Prt�perty:
3 a. PLHA Pro�ram. BORRQWER shall comply with all reguirements
4 set forth in a Notice of Funding AVailability (``Nt�FA"), dated
5 February 26, 2020, issued by HCD to provide approximately '
6 $195,000,000 under the Permanent Local Housing Allocation
7 ("PLHAy') Pragrarn thraugh its Entitlernent and Non-entitlement
8 Local Gavernment Formula C�mponent from the Building Hc�mes
9 and Jobs Trust Fund for assistatzc�e to Loeal Governments pursuant
10 to Health and Safety Code section 50470 et sec�. and Senate Bill
11 (SB)2(Chapter 3b4,Statutes of 201�),the HGD 2019 PLHA Finai
12 �uidelines ("Guidelines" c�r "PLHA Guidellnes"} adopted and
13 issued to implement tl�e PLHA Pragram, any Standard Agreement
14 fc�r the PLHA funds applicable to CITY, and all applicable rules
15 ' and regulations imposed by HCD on PLHA funding recipients.
16 b. Governmental Re�c uirements. BORRt?WER shali carry out
17 development, construction and operation of the Project in
1$ confarrnity with; all applicable Gavernmental Requirements. For
19 purposes of this Agreement, "Ga�ernmental Requirements"means
20 all laws,ordinances, statutes,codes;rules, resolutions, regulations;
21 policy statements, orders; and decrees (including, without
22 lirnitation, thc�se relating ta land use, subdivision, zoning,
2� ' environmentai, labQr relafions, prevailing wage, and building and
24 fire codes} of the United States,the State of California, the City or
25 any ather political subdivision in which the Property is located or
26 which e�ercises jurisdiction Qver BORROWER o� the
27 constructi�ni maintenance, ma�.agernent, use, or operation of the
28 Project
Page 25 of 58
Farm PLHA1oan Agreement
1 c. CE A. Prior to Closing, B(?RROWER shall have performed all
2 necessary final actions and obtained the final approvals required by
3 CEQA fc�r the development and constructic�n af the Prc�ject within
4 the time frames set forth herein. 5uch final actians and appxovals
5 may include, but are not limited to the following� {i} campleting
6 requisite activities ta comply with CEQA, {iij all final action and
7 approvals for enviranmental and land use permits by any
8 ' governmental author�ties having jurisdiction aver the Praperty,and
9 ' (iii) resolution or final adjudication of any legal challenges,
10 including such challenges based on CEQA. This Agreement daes
11 not restrict the lead agency from considering any feasible
12 mitigation measures and alternatives, including the "no project"
13 altemative and does not bind the lead agency to any definite course
14 of action prior to CEQA compliance.
IS The cornmencement trf any development and construction
16 identified herein is contingent upon BORROWER c�btaining all
17 required environmental and land use perm�ts; including CEQA
18 carnpliance with any applicable public agencies. In the event any
19 actian is brought challenging the legality of compliance with
2(? CEQA or any �ther law applicable tQ the Pro�ect, including any
21 actions related to any of th� prQposed uses of the Property ar this
22 Agreernent, BORRt�WER shall indernnify, defend (with counsel
23 reasc,nably acceptable to CITY}; and hold harmiess the
24 Indemnified Part�es (as defined in Sect�on 35}, at its sole cost and
25 expense for, from and against any and a11 claims, actions,
2b proceedin�s, demands, liabilities, costs„ expenses, including
27 reasonable attorney's fees and costs, darnages and lc�sses, cause ar
28 causes or action and suit or suits (callectively, "Clairns") arising
Page 26 of 58
Form PLHA Loan Agreem�nt
1 from or in connectian with the failure tQ cam�ly with such
2 applicable law, or any action to attack, set aside,void,or annul any
3 ' approvals of the City, County, any other Governmental Authority
4 with jurisdiction over the Prt�ject or the Property, or �ITY, its
5 a�visary agencies, c�r legislati�re bt�dy.
6 d. Dispiacement, relocation, and ac uisition. The relocation
7 requirements af the California Relocation Assistance Aet,
8 California Government Code § 7260 et seq. and the implementing
9 regulations thereto in 25 California Code af Regulations § 60Q0 et
10 seq., the Uniform RelocatiQn Assistance and Real Property
11 t�.cc�uisitian Polic�es Act of 1970 (42 U.S.C. 42�1-4655) and
12 impl�menting reguiations at 49 CFR Part 24, and any ot�er local,
13 ' state, or federal laws or regulations gaverning the Prc�ject and the
14 pxovision and administration af Reloeation Payments and advisory
1S assistance. B�RROWER must ensure that it has taken all
16 reasanable steps to camply with the foregoing and minimize fihe
17 displacement of persons as a result af this project assisted with
18 PLHA Funds.
19 e. Prevailing Wa�e, BQRRQWER shall caxry out develc�pment and
20 ' construction (as defined by applicable law) or cause the
21 develt�pment and constructian(as defined by applic�ble law)af the
22 Froject, including; without lirnitation, any and all public works �as
23 defined by applicable law),if any,in confarmity with ali applicable
24 {�overnmental Requiremen:ts. The PLHA Program requires that
25 prevalling wages be paid in connection with the construction of the
26 Project, however exemptions may apply. Prevailing wages are
27 required fo� wark done that falls within the definition af"public
28 works" under Califarnia Labor Code �17�0. ``�ublic works" are
Page 27 of 58
Form PLHA Loan Agreernent
1 defined as "canstruction, aiteratic�n, demolitian, installation, or
2 ' repair work done under contract and paid for in whole or in part out
3 of public funds..." Fr7r thcrse projects which are "public works"
4 pursuant to Labor Code � 172�,2,the follawing applies.
S BORROWER shall require that any contraetor perfc�rming w�rk on
6 ' the Praject, shall comply with prevailing wage requirements and be
7 ' s�bject to restrictions and penaltfes in accordance with§1770 et seq.
$ ' of the Labor Code, as may be amended frarn time to time, which
9 requires prevailing wages be paid to appropriate work classifications
1 Q in all bid specificatiQns and subcontracts, BORRQWEI2 shall
11 require that the general contractor shall furnisl� all subcontractors
12 ' and employees a copy of the Department af Indusiriai Reiations
13 ` prevailing wage rates which BORRQWER will post at the job
14 site. All prevailing wage rates shall be obtained from:
15 '
16 Department of Industrial Relatians,
l'7 ' Divisions of Labor Statistics and Research
18 455 Golden Gate Avenue, 8th Floor
1� San Francisca, CA 941 Q2
24
21 BORRO WER shall require that any contractor perforrning work on
22 the Improvements shall comply with the payroll record keeping and
23 availability requirement of §17�6 c�f the Labor
24 Code. Bt7RR4WER shall require that each contractor shall make '
25 ' tra�el and subsistence payments to workers needed far
26 performance of work in accordance with §1'7'13.8 c�f the Labor
2? Code. Pr�c�r to cnmrnencernent af wark, BaRROWER shall
2$ require that each contractor shall contact the L)ivisian c�f
Page 28 Qf S8
Form PLHA Loan Agreement
1 Apprenticeship Standards and comply with §1777.5, §1777.6 and
2 §1'777.7 of the La1�ar Code and applicable
3 regulations. BQRROWER shall indemnify, hold harml�ss, and
4 defend the Indemnified Parties against,and shall be respansible for,
5 any fine,penalty ar fee levied against the�roject arising out of any
6 vioiatians by BCIRR.C?WER of th�s Section. B4RR�WER shall '
7 ' comply and stay current with all appiicable lacal, state and federal '
8 building codes and laws as from time to time amended, including,
9 buY not lirnited ta, the Americans with Disabilities A�t
10 requirem�nts. BORROWER shall cause all improvements to be
i l cornpleted at B�RRt�WER's cast in a warkmanlike manner and in
12 compliance with a11 applicable law.
13 BORRt�WER agrees and acknowledg�s that it shall be solely
14 respansible to pay its contractars and subcontractars the required
15 prevailing wage rates: BOI:R()WER agrees to indemnify, d�fend,
16 and hold CITY harmless from and against any and ali liability
17 arising out of and related tc�B'QRRUWER's faili�re to comply with
18 any and all applicable Davis Bacon and/or prevailing wage
19 requirements.
20 d. Perrnits and Entitlements. BOR120WER shall be responsible for
21 obtaining all permits, entitlernents and land use approvals required
22 t�y the County and City fo� the develapment, construction and
23 operation af the Project, ensuring that the u5e of the Property for
24 the puzpc�ses described in th'rs Agreement complies with the zr�ning
25 and Qther City and Gounty land use regulatians (including any
26 applicable exemptions and/or exceptions) applicable to the
27 Project. Before commencement of demcalition, construction or
28 development of any building�, structures or other work of
Page 29 of 58
Form PLHA Loan Agreement
1 zmprovement upon any portifln af the Property, Bt�RRC7WER
2 shail, at its own expense, secure ar cause to be secured, any and a11
3 permits which may be required by the �ity, C�unty or any ather
4 Governrnental Authority affected by such cc��7struction,
5 develapment ar work.
6 e. Hazardous Materials. BORROWER shall deveiop, cc�nstruct and
7 use the Project and the Property (i) in compliance with all
$ applicable environmental laws,and(i1)will nat permit the presence
9 ' flf any Hazardous Substance on the Property.
1 fl "Hazardous Materials" or "Hazardous Substances" shall include;
11 but not be limited to, oil, flammable expiasives, asbestas, urea
12 forrnaldehyde insulation; radioactive materials� hazardaus wastes,
13 tc�xic c�r contaminated substances or �imilar materials, including,
14 witho�xt lirnitation,any substances defined as"extremely hazard�us
�:..7 ��. ��V.�I.tild6+4��97� i�4���C61�V4dS S�V�lid11WV�599 4�4�LL��lUV4iJ 1ddN.lcs.dl[.B.d�J�3i
16 "liazardous wa5te" or "toxic substances" in the Comprehensive
17 Environmental Response,C�mpensation and Liability Act of 1980,
18 as amended, °rncluding the Superfund Amendments and
19 Reauthorization Act af 1986, 42 U.S,C. §§ 9b01 et seq.
20 ("CERCLA"), the Hazar�.ous Materials Transportation Act, 49
21 U.S;C. �§ 1801, et seq;, the Resource Conservation and Recovery
22 ' Act af 1976, as amended, 42 U.S.C, §§ 6901, et sec�:, the Toxic
23 Substances Contral Act,as amended, 15 U.5.C. §§ 2�01 et seq.,the
24 Clean Air Act; as amended, 42 U.S.C. §§ 7401 et seq.; the�'ederal
25 Water Pallutian Control Act, as amended, 33 U:S.C. §§ 1251 et
2b sec�.; the 4ccupational 5afety and Health Act, as arnended, 29 '
27 U.S.C. §� 651;the Emergency Planning and Comrnunity Right-to-
28 ' Knc�w Act of 198b, 42 U.S.C. §� 11�01 et seq., the Mine Safety
Page 30 af 58
Form PLHA Loan Agreement
1 and Health Act of 1977,as amended, 3�U.S.C. §§ 801 et seq.; the
2 Safe Drinking Water Act,as amended, 42 U,S.C. §� 3OOf et seq.;
3 and those substances defined as 64hazardous waste" in § 25117 c�f
4 the Califarnia Health and Safety Code, �s ``infectious waste" in �
5 25117.5 af the Califoxnia Health and Safety Code,or as"hazardous
6 substances" in § 2531 b c�f the California Health and Safety Code,
7 ar "hazardous materials" as defined in § 353 af the California
8 Vehicle Cc�de; waste that exhibits the charac�teristics set forth in �
9 25141 {b} of the California Health and Sa�ety Code; and in the
10 regulations adc�pted and �arders and publicati€�ns promulgated
11 ' pursuant to sa�d laws. Hazardaus Materiais shall expressly exclude
12 substances typically used in the canstruction, developn�ent,
13 operation and maintenance of an apartment c€�mplex prc�vided such
14 substances are used in accorc�ance with aIl applicable laws.
15 �9. INCC)ME TARGETING REGUIREMENTS. BORRC�WER hereby agrees
16 to restrict the Unit constructed an the Property to rental to and occupancy by qualified Very Low
17 Income Househalds (the "Affardabie Unit" ar"Restricted Unit")in accorclance herewith.
18 20. RENT LIMITATIQNS. The Affordable Units shall be rented �o and
19 occupied by Very Low Income Households at an Affordable Rent in compliance with the
20 Multifamily H�using Program("MHP")guidelines Sectic�n�312 and the Section 7�41 definition
21 of"Affordable Rent." Maxirnum incorne and Affordable Rent shall be determined in accordance
22 with subsection d) below. CITY shall r�view and a�prove proposed rents prior tc� entry into
23 leases for occupancy c�f the Affordable Units by BORROWER, BORRQWER shall ensure#he
24 Affordable Units are rented to qualified applicants at the described rent l�vels herein during the
ZS Affordability Period. The maximum monthly allowances for utilities and services (excludin�
�6 telephone) shall not exceed the util'zty allowance as deseribed in c. below:
2? a. Initial Occupancv of Vacant Units; All Affordable Units sha11 be
28 occupied by and rented tQ Qualified Households for an Affordable Rent within the time period
Page 31 of�$
Form PLHA Le�an Agreement
1 set��rth in the Schedule of Perforrnanee attached to this Agreement{"Lease Deadline") for the
2 newly constructed building t�f the Project. If an Affordable Unit rernains unoccupied or nt�t
3 leased to an eligible tenant, BORR�WER must provide to CITY inforrnation about current
4 marketin� efforts and an enhanced plan far marketing the unit so that it is leased promptly.
5 BQRROWER rnay request from CITY an extension of the Lease Deadline if
6 BORROWER can provide ta CITY written evidernce showing efforts of aggressive marketing
7 efforts and proof thafi the circumstances that 1ed to the failure to lease the Affordable Unit(s) by
$ the Lease Deadline were beyond the BORR4WER's control. The extensian and duratic�n of
9 such extension 1s subject to CITY's approval in its discretion and not guaranteed. The Housing
10 ' Manager, or designee; has the authority, at his or her discretion,to consent to an extension of the
11 Lease Deadline.
12 b. Rent Limitatians: In arder ta calculate net rent to be charged, an
13 app��cable utility allowance must be subtracted from the gross rents permitted lay the PLHA
14 Fr�gram.
15 �, Utilitv Allawances: For Prajects not receiving financing from tax
16 eredits; BOR.ROWER shall use the Iltility Allc�wances published by the Housing ,�uthority of
17 the City of Redding to establish maximum rnonthly allowances for utiliti�s and s�rvices to be
18 used by the B'QIZRDWER,in calculating Affordable Rents. Pro�ects assisted with tax credits
19 shall use the California Utility Allowance Calculator (CUAC) published annually by the
2U Treasurer of the State of Califomia. The CUAC and use instructions can be fc�und at:
21 https:0lwww.treasurer.ca.gav/ctcac/cuac/index.asp.
22 d. Appro�ral: The BORRCIWER shall submit to the CITY for reuiew
23 and written approval,proposed rent for the Affordable Unit prior ta lease-up:
24 21. TENANT PRtJTECTIONS. During the Affardability Period,
25 B012RC�WER shall adhere to a11 applicable tenant protections and selection standa.rds set forth
2b in applicable Gc�vernment�l Rec�uirements, as may be amended from time to tirne, and the
27 follawing requirements:
28
Page 32 of 5$
Farm PLHA Loan Agreement
1 a. Lease Agreement. Provide a written lease agreement fox not less than
2 one year, unless by mutual agreement between the tenant and
3 B�RR(7WER. CITY shall review the initial forrn of the lease
4 agreement prlor to B(�RROWER executing any leases and, prQvided
5 that B(�RROWER uses the apprc�ved lease form, �t7RR(JWER shall
6 be permitted to enter into residential lea�es without CITY's priar
7 written consent.
8 b. Prohibited Lease Terms. The rental agreement/lease may not contain
9 any of the following provisions:
1 Q (1} A re� ement to be sued.Agreement by the tenant tc�be sued;
11 to admit guilt or to a judginent�n favor of BORR(�WER in
12 a lawsuit brought in connectit�n with the lease:
13 (2) Treatment of property. Agreements by tenant that
14 B�RRQWER may talce, hold, or sell personal property af
15 household members without notice to the tenant and a cnurt
16 decision an t�7e rights c�f the parties: This prohibition,
17 however, does not �pply to an agreement by the tenant
18 concerning dispositi�n of persanal property remaining in
19 the housing unit after the tenant has moved out af the unit. '
20 B�RRUWER may dispose c�f this persr�nal property in
21 ac�cordance with State 1aw.
2� ` (3} Excusin�BC}RI�:OWER from rest�ansibility. Agreement by
23 the tenant not to hold BQRR�WER ar BORROWER's
24 agents legally respc�nsible ft�r any action or failure to act,
25 ` whether intentional ar negli�ent.
26 (4) Waiver of notice. Agreement af the tenant th�t
2� BORROWER may institute a Iawsuit without notice to the
28 tenant.
Page 33 of 5$
Form PLHA Loan Agreement
1 ' (5) Waiver of le�al t�roceeding. Agr�ement by the tenant that
2 ` the BC7I�ROWER may evict the tenant or househald
3 members withaut instituting a civil court proceeding in
4 whzch the tenant has the opportunity to present a defense,
5 ' ar before a court decision on the rights of the parties.
6 (6) Waiver of a jury triai. Agreement by the tenant to waive any
7 right to a triai by jury.
8 (7) Waiver of ri�ht to at��eal court decision, Agreement by the
9 tenant tQ waive the tenant's right to appeal, or tc�c�therwise
10 challenge in court, a ct�urt decision in connection with fhe
11 lease.
12 (8) Tenant char�eable with cost of Ie�;al actions re�ardless of
13 outcome. Agreement by the tenant ta pay attc�rneys'fees or
14 ather legal cc�sts eve� if the tenant wins in a court
15 proceeding by BORROWER againstthe tenant. The tenant;
16 however; may be obligated to pay cc�sts ifthe tenant loses.
1� c. Violence A�ainst Women 12eauthorization Act c�f 20�3. (Pub.L. 113—
18 4, i27 Stat. 54) ("VAV�A 2�13"). VAWA 2413 reauthorizes and
1� amends the Violence Against Wornen Act of 1994, as previ�usly
20 amended, (title IV; sec, 4OOQ1-40703 of Pub. L. 103-322, 42 U:S.C:
21 13925 et seq) VA�JA 2Q13, among other things, bars evictio� and '
22 terrnination due tc� a tenant's status as a victirn of donnestic violence,
23 dating violence, or stalking, and requires landlords to maintain
24 survivor-tenant confidentiality. VAWA 2013 prahibits a tenanfi who
25 is a surviv�r ofdc�mestic violence,dating violence,sexual assault,and
26 stalking frorn being denied assistance; tenancy, or accupancy riglats
27 based solely on criminal activity r�lated tc� an act of violence
28 committed against them. It extenc�s housing pratections to sur�vivors
Page 34 of 58
Form PLHA Loan Agreement
1 of sexual assault, and adds "intimate partner" to the list of eligible
2 relatianships in the dornestic violence definition.Protections also now
3 cover an "affiliated individual," which includes any Iawful occupant
4 living in the survi-vc�r's ha�sehc�ld, or related to the sur�vivor by blaod
5 or marri�ge including the surviv�r's spause, parent, brother, sister,
6 child, or any person to whom the survivor stands in loco parentis.
7 VAWA 2Q 13 allows a lease bifurcatian so a tenant or lawful crccupant
8 who enga�es in criminal activity directly relating tr� domestic
9 violence, dating vi�lence; sexual assault, or staiJking against an
IO affiliated individual or other individual, or athers may be evicted or
11 removed w�thout evicting or removing or otherwise penalizing a
12 victim who is a tenant or law�`ui occupant. If victim cannot establrsh
I3 eiigibility, BORROWER must give a reasonable amaunt of txrne to
14 find new housing or establish eligrbility under another covered
15 housing program. A Notice of Rights under VAWA 2013 for tenants
16 must be pro�vided afi the tirne a person applies for hausing, when a
17 persan is admitted as a tenant of a housing unit, and when a tenant is
18 ' thxeatened with eviction or termination of housing benefits. Tenants
19 must request an emer�ency transfer and reasonably believe that they
20 are threatened with imminent harm from further vic�lence if the tenant
21 remains in the same un�t. The provisions of VAWA 2013 that are
22 applicable tc� HCD prc�grams are found in title VI of VAWA 2013,
23 ' which is entitled "Safe Homes �flr Victims of J�omestic Violence,
24 Datin� Violence, Sexual Assault, and Stalking." Section 601 of
25 VAWA 2013 arnends subtitle N of VAWA{42 U.S.C. 14043e et seq.)
26 tQ add a new chapter entitled"Housing Rights."
27 22. FEDERAL REQLTIREMENTS. B{7RROWER shall comply with all
28 ap�licable federal regulations and guidelines.
Page 35 of 58
Form PLHA Laan Agreement
1 23. REPAYMENT INCQME. CITI'' must record the receipt and expenditure
2 of PLHA repaym�nt income in accc�rdance with the standards specified in the PLHA Program.
3 ' 24. SALE ASSIGNMENT QR OTHER TR.ANSFER (�F THE PRU3�CT.
4 BORR(�?WER hereby covenants and agrees not to sell, assign,transfer ar otherwise dispose c�f
5 the Proj ect or any portiQn thereof,without obtaining the prior written consent�f the CITY,which
& consent shall be canditioned upon (a) a C3TY deterrnination that transferee is a c�ualified and
7 experienced operatt�r �f Iaw income housing and (b} solely upon receipt by the CITY c�f
8 teasonable evidence satisfactory to the CITY in �ts s�le discretion, that transfere�has assumed
9 in writing all of BORROWER'S duties and obligatic�ns under this Agreement, and is reas�nably
1(l capable of performing and complying with the BURROWER's duties and obligations under this
11 Agreement,provided,however BorrQwer shall not be released of all obligations hereunder which
12 accrue from and after the date c�f suah sale. Notwithstanding anything to the contrary contained
13 herein, upon written notice to CITY, BORR.(JWER rnay (i) lease far oceupancy of a11 or any af
14 the Aff�rdable Units in accordance with this Agreem�nt; and {ii) grant easements ox permits to
15 facilitate the developrnent of the Property in accardance with this Agreement {collectively a
1� "p�TTl11�t�t� TT121S��T'"�.
17 2S. INDEPENDENT C4NTRACTOR. BCIRRQWER and its agents, servants
18 �.nd ernplayees shall act ati all tirnes in an independent capacity dur�r�g the term of this Agr�ernexatg
19 and shali not act as, shall not be,nor shall they in any manner be construed to be ag�nts, officers;
20 c�r empic�yees of CITY.
21 26. NONDI�CRIMINATIC�N. BORRf�WER sha11 not discriminate on the
22 basis of race, gender, religic�n, nationa� origzn, ethnicity, sexual orientation, age or disability in
23 the solicitatinn, selectic�n, hiring or treatment of any contractors or cnnsultants, tic�par#icipate in
24 subcantracting/s�bconsulting oppartunities.BORROWER understands and agrees that violation
2S of this clause shaii be considered a material breach af this Agreement and may result in
26 terrninatic�n, debarment or�ther sanctions. This language shall be incozpoxated into ai1 contracts
27 b�twe�n BC}RROWER and any contractor, consultant, subcontractar, subcansultants, vendors
2$ and suppliers, BORIZ(7WER sha11 comply with the prQvisions af the California Fair Employment
Page 36 af 5$
Form P�HA-Loan Agreement
l and Housing Act (Government Code Sect�ons 1290(� et seq.), the Federal Civil Rights Act of
2 1964 (P.L. 88-352), as amended, and alI applicable �c�cal, state and federal laws with re�pect tc�
3 its use of the Property.
4 ' BORROWER herein c4venants b�and far itself, its successors and assigns,and all persons
5 claiming under or thrau�h them; fihat the PLHA Lc�an funds are rnade and accepted upon and
6 subject tc�the fQllowing conditions: There shall be no discrimination against or segregation c�f any
7 person ar group of persons;on account of any basis listed in subdivision�a)ar{d)of Section 12955
8 af the Government Code, as those bases are defined in Secti�ns 12926; 12926.1, subdivision(m)
9 and paragraph (1) of�ubdivision {p} of Section 1295�, and Sectit�n 12955.2 of the Government
1Q Cade, in the sale, lease, sublease, transfer, use, occupancy; tenure, c�r enjoyment of tl�e Property,
ll nor shall the transferee itself ar any per�on claiming under ar thr�ugh him or her; establish or
12 perrnit any such practice or praetices o� discrimination ar segregation with reference to the
13 selection, location, number, use, or occupancy, af tenants, lessees, sublessees, subtenants, or
14 vendees of the Property.
15 �CIRROWER, its successors antl assigns, shall refrain from restricting the rental, sa1�, or
16 lease of the Property or any portion thereof, on the basis of race, coior,creed,religion,sex, sexual
17 orientation, marital status; national ori�in, or ances#ry of any p�rson. Every deed, lease, and
18 contract entered into with respect to the Property, or any portion theg•eof, after the dat� af this
19 Agreement shall cantain or be subject to substantially the fallawir�g nondiscrimination or
2Q nonsegregatian clauses:
21 a} In deeds: "The grante� herein eovenants by and for himself or herself, his �r her heirs,
22 ' executors,administrators;and assigns,and all pers�ns ciaiming under or through thern,that
2� there shall be no discrimination against ar segregation af, any person or group af persons
24 an account of any basis listed in subd'zvzsion(a)or(d)af Section 1295 5 of the Government
25 Cade, as those bases are defined in S�cti�r�s 12926, 129�6.1, subdivision (m) and
26 paragraph(1)of subdivision(p)of Section 12955, and�ectian 12955.2 of the Government
2'7 Code; in the sale, lease, sublease, transfer, use, occupancy, tenure; c�r enjoyment of the
2$ premises herein conueyed, nor shall the grantee c�r any person claimi�g under �r through '
Fage 37 af 58
Farm PLHA Loan Agreement
1 h�m or her, establish ar permit any praetice ar pract�ces of discrimxnation ar segregation
2 with reference to the selection, lacation, number, use or occupancy of tenants, lessees,
3 subtenants; sublessees, or vendees in the premises herein conveyed. The foregoing
4 ' covenants shall run:with the land."
5 b) In leases: "The lessee herezn covenants by and far hirnself or herself; his or her heirs,
6 executors, adrninistrators, and assigns, and all persons claiming under ar through him ar
7 her, and this lease is made and accepted upon and subject to the following conditions:`That
8 there shall be no discrimination against or segregation of any persan or grcrup af persons;
9 an account af any basis listed in su�division(aj or(d)af Section 12955 of the Government
10 Code, as those bases are defined in Sections 12926, 12926:1, subdivzsion (rn) and
11 paragraph{1)of subdivisi�n(p)of Section 12955, and Section 12955.2 ofthe Government
12 Code; in the leasing, subieasing,transferring, use, occupancy; tenure, or enjoyment af th�
13 premises herein leased nor shall the lessee himself or herself,or any person clairning under
14 ar thrt7ugh hirn or her, establish or permifi any such practice or practices o�discrimination
I5 ' or segregatzon with reference to the selectian, lacation, numb�r, use, ar o�cupancy, of
16 tenants,lessees,sublessees; subtenants, or vendees in the premises herein leased."
17 c) In contr�cts: "There sha11 be no discriminatian against or segregation of any p�rson or
18 ' group of persons, on account of any basis listed in subdivisian(a) c�r (d) of S�ctic�n 12955
19 of the Government Code, as those bases are defined in Sections 12926, 12926.1,
20 subdivision{m)and paragraph{1)of subdivision(p)of Section 1�955;and Section 12955.2
21 of the Gc�vernrnent Code, 1n the sale, Iease, sublease, transfer, use, occupancy, tenure, or
22 enjoyment of the land, nor shall fhe transferee itself or any person claimiiag under or
23 through him ar her, establish dr permit any such practice or practices of discrimination or
24 segregation with reference to the selecti�n,lt�cation,number,use;c�r occupancy,of tenants,
25 iessees, subiessees, su�atenants, or vendees of the land."
26 Iri addition ta the obl�gations and duties c�f BORROWER set forth herein, BCIRROWER
2'7 shall, upo�n notice from�ity,promptly pay to City all fees and costs, including admin�strative and
28 attorneys' fees,incurred by City in connectian with responding to or defending any discrimination i
Page 3$ of 58
Form P�HA Loan Agreement
1 claim brought by any third party and/or local, state or federal government entity, arising c�ut of or
2 in�anneetion with this Agreement or the Cc�venant Agreeinent.
3 27. PRQHIBITION AGAINST CONFLICTS +OF INTEREST:
4 a, Na member, official or employee af CITY shall have any personal
5 interest, direct or indirect; in this Agreement nor sha11 any such
6 member; afficial ar employee participate in any decision relating to the
7 this Agreement which affects his or her personal interests or the
8 interests of any corporati�n, partnership or association in whzch he or
9 she is, directly or indirectly, interested.
10 b. BQRR(�WER warrants that it has nat paid or given, and will not pay
11 or give, any third party any money or other consideration fnr obtaining
12 the PLHA Loan.
13 28. INTENTIt�NALLY OMITTEL?.
14 29. PRQJECT MQNITORING AND EVALUATION.
15 ' a. Tenant Checklist.BQRR4WER shall submit a Tenant Checkiist Forrn
16 to CITY, as shawn in Exhibft G which is attached hereto and bq this reference is zncorpc�rated
17 herein and may be reuised by CITY, summarizing the raciallethnic cc�mpc�sitic�n, number and
18 percentiage c�f�ery Lc�w Income Households who are tenants of the CTTY Affardable Units.The
19 Tenant Checklist Form sha11 be subrnitted upon campletion of the construction and thereafter,
2t� on a semi-arrulual basi� c�n or befare March 31st and September 30th. BQRROWER shall '
2_1 maintain financial, prc�grarnmatic; statistical and c�ther supporting records of its operations and
22 ' financial activities in accordance with the requiremez�ts Qf the PLHP� Prograrn, inclnding the
23 submission of Tenant +Checklist Form. Except a� otherwise pravic�ed for in this Agreement,
24 BORROWER shall ma�ntain and submit records to CITY within ten business d�ys af CITY's
25 request which cleariy documents B�RROWER's perforrnance under each requirement of fhe
26 PLHA Program. A list of document submissions and timeline are shown in Exhib�t D and such
27 list may be atnended frc�m time to time sub�ect ta HCD and CITY reporting requirements:
28
Page 39 of 58
Form PLHA Lc�an Agreement
1 ' b. Inspections. During the Affordability Period, CITY may perform on-
2 site inspections of CITYPLHA-assisted rentai hausing to determine compliance with the
3 property standards of the PLHA Program and to verify the informatic�n submitted l�y the owners
4 in accordance with the requirements af the PLHA Progra�n. If there are observed deficieneies
S for any of the inspectable items in the property standards established 6y CITY, a follow-up on-
6 site inspection ta verify that deficiencies are carrected must occur within 12 months, CITY may
"7 establish a list of non-hazardaus deficiencies for which co�rection can be verif ed by third party
8 dacumentation (e.g., paid invc�ice for wark order) rather than re-inspection. Health ar�d safety
9 deficiencies must be corrected im�r�ediately. CITY may adopt a more frec�uent inspection
10 schedule for properties that have been found to h�.ve health and safety defici�ncies: The property
1l owner must �nnually certify to the CITY that each 1�uilding and all Units in the Project are
12 suitable fc�r occupancy, taking into account State and local health, safety, and other applicable
13 cc�des;ordinances,and requirements, and the angoing property standaxds. For prajects with c�ne-
14 tc�-fc�ur +CITY Affordable Units, CIT� may inspect 100 percent of the CITY Affc�rt�able LTnits
15 and the inspectable items {site, building exterior,building systems, and common areas) for each
16 building housing CITY Affordable Un1ts.
1? c. Income Certificatzon: The incc�me of a t�nant must be determin�d
I$ initiaily in accordance with California Code of Regulatians,,Titie 25, Section 6924. In additic�n,
19 annually thereafter BORRt7WEl2 must re-examine each tenants annual income to determine that
2Q they remain a Qual�fied Tenant.
21 30. ACGESS TO PR4JECT SITE. GITY and HCD shall have the right to
22 access the Project slte and the Property at all reasonable times, and upc�n completion of the
23 Prc�ject upon reasanable written notice ta BQRRC}WER, to review the operatian of the Froject
24 in accardance with this Agreement.
25 31. EVENTS C}F DEFAULT. The occurrence of any of the following events
�6 shall constitute an '"Event of Default" under this Agreement.
27 a. Monetarv Default. {1)BORROWER.'s failure to pay when due any
28 sums payable under this Agreement, the Covenant Agreement, the
Page 4Q of 58
Form PLHA Loan Agreement
l PLHA Note or any advanees made by CITY under this Agreement;
2 (2) B�R.ROWER's Qr any agent of BOR.I�t7WER's use of PLHA
3 funds for cc�sts ather than thosc costs permitted under this
4 Agreement or for uses inconsistent with terms and restrictions s�et
5 farth in this Agreement; {3) BQRROWER's c�r any agent of
6 BORROWER's failure tc� make any ather payment of any
7 assessment or tax due under this Agreernent, anc� /or (4) default
8 ' under the terms of any Senic�r Lc�an documents or any other
9 instrument or dc�cument secured against the Property;,
10 b. Nan-Monetarv Default. (1) I)iscriznination by BORR{)WER or
11 BQRR{�WER's agent(s) on the basis of characteristics prahib�ted
12 by this Agreement ar applicable law; (2) tk�e lmposition af any
13 encurnbrances or liens on the Project without CITY's prior written
14 approval that are prohibited under this Agreement or that have the
15 effect of reducing the pric�rity c�r invalidat°rng the lien of the PLHA
16 De�d of Trust; (3} �ORROWER's failure to obtain and maintain
17 the insurance eover�ge required under this Agreement; (4) any
1;8 material default under this Agreement, t�e PLHA I)eed of Tr�.ist,
19 Covenant Agreernent, PLHA Nate c�r any ducument executed by
20 BQRI�.C?WER in connectic�n with this Agreement, ancl/ar (S} a
21 default under the terms o�'any Senior Loan dc�cuments or any other
22 ' instrument c�r document secured against the Froperty or the Project;
23 c. General Performance of Laan Clbligations. Any substantial or
24 cantinuous or repeated breach by BORRUWER or B4RROWER's
25 agents of any material abligations of BORROWER under this
26 ' Agreement;
2'7 d. General Perfoxmance of (�ther Obli ations. Any substantiai or
28 cantinuous ar repeated breaeh by B4RROWER or BORR.OWER's
I�age 41 of 58
Form PLHA Loan Agreement
1 agents of any material obligations of BORROWER related to the
2 � Froject imposed by any other agreement with respeet ta the
3 financing, devel�prnent,or operation of the Project; whether or not
4 CITY is a party to such agreeznent; but only following any
5 applicable notice and cure periods with respect to any such
6 abligation;
7 e. Re�resentations and Warranties. A determination by CITY that
8 any of BQRROUIER's representations or warranties made in this
9 Agreement,any statements made to CITY b�BQRRC}WER,or any
10 certificates, doeuments; ar schedules supplied to CITY` by
11 BC7RROWER were false in any rnaterial respect when rnade,or that
12 BORRC7WER canceaied or failed ta disclose a rnaterial fact to
13 CITY.
14 £ I�amage to Project. �n the event that tl�e Praject is materially
15 damaged or destroyed by fire c�r other casualty, and BCIRROWER
16 receives an award t�r insurance proceeds sufficient far the repair or
17 reconstruction ofthe Project,and BORROWER daes not use such
18 award ar proceeds to repair or reconstruct the Project.
19 g; Bankru t�cY, Dissolution and Insolvency. BORROWER's or
2U general partner and co-general partner of BURROWER's (1) £'iling
21 for bankruptcy, d�sstrlution, or reorganization, or failure to obtain a
22 full dismissal af any such involuntary filing brought by another
23 party before the earlier of final relief or ninety (9�) days after such
24 filing; (2)making a general assignment for the benefit of creditQrs;
2S (3) applying fc�r the appointment of a receiver, trustee, custodian,
26 or liquidator, or failure tc� obtain a full dismissal of any such
27 invaluntary application brought by another party before the earlier
28 of final relief or nlnety (90) days after su�h filing; (4) insolvency;
Fage 42 of 58
Form PLHA Loan Agreernent
1 or(S)failure;inability or adrnission in writing of�ts inability to pay
2 its debts as they become due.
3 32. NOTICE (JF DEFAULT AND (JPP{.�RTLINITY T{7 CUR.E. Formal
4 notices, demands and co�nmunications between the CITY and the BC)RR�WER shall t�e
S su�ciently given if dispatched by regis�ered or certified mail, postage prepaid, return receipt
6 requested, or as set forth below, tfl the principal offices of the CITY and the BORROWER, as
3 designated belc�w. Such written notices, demands and comrnunications may be sent in the same
8 manner to such ather addresses as either party may from time to time designate by mail a�
9 provided in this Sectio�32. Any notice that is transmitted by electranic facsimile transmission
10 followed by delivery of a "hard" capy, sha11 6e deerned delivered upon its transmissiQn, any
1 l nc�tice that is personally delivez`ed (including by means of professional rnessenger service,
12 courier service such as United Parcel Service or Federal Express, or by U.S. Postal Serviee)„
13 shall be deemed received on the documented date of receipt by the recipienty and azxy natice that
14 is sent by registered or certified mail,postage prepaid, return receipt required sha11 be deemed
1 S received c�n the date of deliuery thereaf.
16 a. Subject to the Fc,rce Majeure Delay, failure or delay by BORROWER ta
1? perform any terrn or provisic�n of this Agreernent constitutes a default under thxs Agreement.
18 BtJRROWER must i;mmediately cammence tc�cure,correct or remedy such failure�r delay and
19 shall complete such cure, correction or remedy with reasonable diligence.
20 b. CITY shail give written nc�tice of default to B4RROWER, specifying the
�1 default complained of by CITY. �'ailure or delay in givi�g such notice shall not constitute a
22 waivei of any default, nor shall it change th� tirne �f default. Except as otherwise expressly
�3 provided in this Agreement, any failures or delays by CITY in asserting any of it� rights and
24 remedies as to any default shall nc�t aperate as a waiver of any default or af any such rights or
2S remedies. Delays by CITY in asserting any of its rights and remedies shali not depriv� CITY '
2b of its right to �nstitute and rnaintain any actions or proceedings which it may dee�n necessary to
27 pratect, assert or enforce any such rights or remedies.
2�
Page 43 of 58
Form PLHA Loan Agreement
1 c. If a monetary event of default occurs, prior ta exercising any remedies
2 hereunder, CITY shall give BORROWER written notice of such defal�lt. BQRR(7WER shall
3 have a period af ten (10) days after such notice is given within which ta cure the default prior
4 t� exercise of remedies by CITY.
5 d. If a non-monetary event of d�fault occurs,prior tQ exerc�sing any remedies
6 hereunder, CITY shall give BC}RROWER written natice c�f such d�fault. If the default is
7 reasonably capable of being cured within thirty{30)days,B(�RRQWER shall have such period
8 to effect a cure prior to exercise c�f remedies by CITY. If the default is such that it is not
9 reasonably capable of I�eing cured within thirty {30) days, and BORIZOWER (i) ir�itiates
10 corrective aetion within said peri�d, and(ii} diligently, continually, and in gr�od faith warks to '
11 effect a cure as soon as possible, then B�RROWER shall h�ve s�ch additional time as is
12 reasonably necessary to cur�the default priar ta exercise of any remedies by the injured party,
13 but in no event no more than sixty (60) days fram the date of the notice of default. In no event
14 shali CITY be precluded fron�exercising remedies if its security becomes or is about to become
1 S materially jeapardized by any �ailure to cure a default or the default is nut cured within si�:ty
l b {6{�) days after the first notice of default is given.
17 33. CITY REMEDIES. Upern the accurrence of an Event of I�efault, after
1$ natice and c�ppartun�ty to cure, CiTY's abligation to disburse PLHA fund� shall terminate, and
19 CITY shall also have the right,but nat the obiigation to, in addition to other rights and remedies
20 permitted by this Agreement or applicable law, proceed with any or all of the following
21 remedies in any order or combination CITY may choose �n its sole discretion:
22 a. Terminate this Agreement, in which event th� entire FLHA Loan
23 amc�unt as well as any other manies advanced tc� BORROWER by '
24 C7TY under this Agreement including adrninistrative costs, shall
25 immediately become due and payable to CITY at the option of
26 CITY
2� b. Bring an action in equitable relief {l) seeking the specific
2$ perf�rmance by BORROWER of the te�ms and conditions of this
Page 44 of 58
F�rm PLHA Loan Agreement
1 Agreement, and/or (2j enjoining, abating, or preventing any
2 violation of said terms and canditians, and/or (3) seeking
3 declaratory relief.
4 ' c: Accelerate the FLHA Loan,and demand irnmediate full payment flf
5 the prirncipal payment outstanding and all accrued interest under the
6 PL�--IA Note,as well as any other mc�nies advanced to B�RRfJWETZ
7 by CITY under this Agreement.
8 d. Enter the 1'rc�ject and talke any remedial actions necessary �n its
9 judgment with respect ta hazardous materials that CITY deems
10 ' necessary to comply with ha�ardous materials laws ar to render the '
11 ' Project suitable for accupancy,which casts shall be due and payable
12 by BC?RROWER to CITY.
13 e. Enter upon, take possession of, and manage the Project, either in
14 person, by agent, or by a receiver appointed by a court; and collect
1 S rents and c�ther amounts specified in the assignment af rents in the
16 ' Deed of Trust and apply them to operate the Project c�r to pay aff the
17 PLHA Loan or any advances made under this Agreement, as
l$ provided far by the PLHA Deed o�Trust.
19 f. Fursue any other rernedies allowed at law c�r in equity.
20 34: LIMITATI�N QN LIABILITY. Notwithstanding anything ta the cantrary
21 contained herein, neither BORRtJWER nor CITY shall in any event be entitled to, and each
22 her�by waives, any right to seek loss of prafits, or any special, incidentai or consequential
23 ' damages of any kind or nature; however caused, from the other Party arising out of or in
24 connection with the PLHA Loan I�acuments, even'if the ather Farty has been advised of the
25 possibiiity of the damages, and in connectian wifih such waiver each Party is�amiliar with and
26 hereby waives the pravision of y� 1542 af the Califarnia Civil Code which provides as follovtrs.
27 "A GENERAL RELEASE DOES NOT EXTEND TU CLAIMS THAT
28 THE CREDIT�R t�R RELEASII1�1dG PARTY D{�ES NOT KN�W OR
Page 45 Qf 58
Form PLHA Loan Agreement
1 SUSPEeT TO EXIST IN HIS OR HER FAVOR AT THE TIME (�F
2 EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM �R
3 HER, WC7ULD HAVE MATEI2IALLY AFFECTED HIS OR HER
4 SLiTTLEMENT WITH Tnr,J.IL�1 Ll� 4J�LOLsLL.'ef$��u r����,99
5 35. I-IOLD HARMLESS AND INDEMNIFICATIflN. Bt7RROWER sha11
6 indemnify and hold harmless the City of Redding, its Agencies, Boards, Districts, Special
7 Districts and Departments, and their respective directars, c�fficers, members; elected and
$ appointed officials; emplayees, agents and repres�ntatives (individually and collectively, the
9 "Indemnified Parties") frc�m any claim or liability, costs t�r fees (inctuding, but not limited to,
10 attorneys' casts and fees), resulting frorn any act ar failure ta act of BORR:UWER, its officers,
11 employees, subcontractors; agents or representatives,in cannection with, axising out c�f, or in any
12 way relating tc�this Agree�nnent,the PLHA Laan Docutnents,the Property or the Project,including
13 but not limited ta praperty damage, bodily injury, or death or any ather element of any kind or
14 nature whatsoever. BORR4'WER shall defend the Indemnified Parties, at its sole expense, in any
15 clairn or �ction based upon s�ach all�ged acts ar omissio�:s. The indemnificatian obligatic�ns of
16 BORR�WER set forkh in this Agreement shall survive the repayment of the PLHA Loan and fhe
17 expiration or earlier terminatic�n of this Agreernent.
18 With respect tt� any acti€�n or claim subject to indemnification herein by B4RROWER;
19 BORRQWER shall, at its sole cost, have the right to use counsel of its own chaice and shall have
20 the right to adjust, settle, or compromise any such action or claim without the pr�ar cansent of
21 CITY, pravided, however, that any such adj'ustrnent, settlernenfi or comprc�mise in no manner
22 whatsaever lim�ts ar circurnscribes BflRRQWER'S indemnificatian obligatioals to CITY as set
23 fc�rth herein.
24 BORI�OWER's obligation hereunder shall be satisfied when BORRCIWER has provided'
25 to CITY the appropriate forrn af dismissal relieving CITY from any liability far the action or claim
26 involved-
z�
�s
Page 46 af 58
Form PLHA Loan Agreement
1 The specified insurance limits required in this Agreement shall in no way limit or
2 circumscribe Bt�RROWER's obligations to indemnify and hold harmless CYTY herein frc�m third '
3 party claims.
4 In the event there is conflict between this clause and Calif�rnia Civil Code Sectit�n 2782, '
5 this clause sha11 be int�rpreted ta comply with Ci�il Code 2782. 5uch interpretation shall �ot
6 relieve B�RR(JWER from indemnzfying CIT�to the fullest extent aliowed by law.
7 BURROWER's obligations set farth in this Sectian 35 shall survive the expiration or
8 earlier tei-mination of this Agreement.
9 36, "TERMINATION.
10 a. BORR�?WER. �C)RROWER may terrninate this Agreement upon wr�tten
11 notice of such termination prior to disbursement af any PLHA Loan funds by CITY.
12 b. CITY;Not�vithstanding the provisians af Section�6(a),CITY may suspend
13 ar terminat� this Agreement upon written notic� to BORROWER of the action being taken and
14 tlle reasan for such action in the eVent one af the following events occur:
15 (1) In th� event B(�RR(�WER fails t� perform the cavenants
16 herein contained at such tirnes and in such manner as
17 provided in this Agreement after the applicable notice and
18 ' cure provasion herec�f;ar
19 (2) In tlhe event there is a cc�nflict with any fed�ral, �tate ar 1oca1
20 law; ordinance; regulation or rule rendering any material
21 provisi�n, in the judgment af CITY of this Agreement
22 ' invalid or untenable; ar
23 (3) In the event th� PLHA funding from HCD identified in
24 Sectian 1 above i� terminated or otherwise becomes
25 unavailable.
26 c. Upon expiration or earlier termination of this Agreement, BCIRRt�WER
2� shall tran�fer to CITY any Ltnexpended PLHA funds in its possess�an at the time of expiration af
28
Page 47 of 5$
Form PLHA Loan Agreement
1 the Agreement as well as any accounts receivable heid by BQRRQWER which are attributahle to
2 the use of PLHA funds awa�ded pu�°suant to this Agreement.
3 37. AFFORDABILITY RESTRICTIONS. CITY and BORROWER, an behalf of
4 its successors and assigns, hereby declare their express intent that the restrictions
5 set farth in this Agreement shall continue in full farce and effect for the duration
6 ' of the Affordability F'eriod (as defined in Section 15 above). Each and every
7 ct�ntract, deed or ather instrument hereafter executed c�vering ai�d conveying the
8 P'roperty ar any portion thereof shall be held conclusively to have been executed,
9 delivered and accepted subject to such restrictions, regardless of whether such
10 restrictions are set forth in;such contract, deed or other instrument. Borrower shall
11 execute and record as a lien against the Property, the Cc�venant Agreement setting
12 forth the affordab�lity use and income restriction required in this Agreement. The
13 Cavenant Agreement shall be �n a lien position sen�c�r to this PLHA Loan
14 Agreernent.
15 3$. MECHANIC5 LIENS ANI�STQP NC}TICES. If any claim of inechanics lien
16 is filed against the Project ar a stop natiice affecting the Project is served on CITY;
17 BC�RR4WER must, within twenty �20) calendar days of such filing or s�rviee;
I$ either pay and fully discharge the lien or stop natice, obtain a release of the lien or
19 stop notice by delivering ta CITY a surety band in sufficient form and amount, or
20 provide CITY with other assurance reasonably satisfactory to CITY that the lien
21 or stop natice will be paid or discharged.
22 39. ENTIRE ACrREEMENT. It is expressly agreed that this Agreement emb�dies
23 the entir� agreement afthe parties i�relation to the subject matter hereof, and that
24 no other agreement or uriderstanding, verbal or ntherw�se, relative to this subject
25 matter, exists laetween the parties at the time of executic�n.
26 40. ALTTH4RITY TO EXECUTE: The persans execut�ng this Agreement ar
27 exhibits attached hereto on behalf c�f tihe parties to this Agreement hexeby warrant
28 and represent that they ha�e the authc�rity to execute this Agreement and warrant
Page 48 of 58
Form RLHA Lvan Agreement
1 and represent that they have the authority to bind the respective parties t� this
2 Agreement to the performance of 1ts obligations hereunder.
3 41. VJAIVER. Failure by a party to insist upon the strict perf4rmarzee of any of
4 the provisions of this Agreement by the other party, or the failure by a party to
5 exercise its rights upon the default of the ather party, shall not constitute a waiver
6 of such party's rights tc� insist and demand strict cc�mpliance by the �ther party
7 with the texms of this Agreement thereaftel.
8 42. INTERFRETATION AND GOVERN1NCa LAW. This Agre�ment and any
9 dispute arising hereunder shall be governed by and interpreted�n accordance with
10 the laws of the State of California. This Agreernent shall be construed as a whole
11 accc�rding to its fair language and common meaning to achieve the objectives and
12 purposes of the parties hereto; and the rule of constructiQn to the effect that
13 ambiguities are tt� be resol�ved against the drafting party shall not be employed �n
14 interpreting this Agreernent, all parties having been represented by counsel in the
15 negotiatxon and preparatic�n hereaf.
16 43. 3URISDI�TI(JN AND VENUE. Any action at law or in ec�uity arising under
17 this Agreement or brought by a party hereto for the purpase �f er�forcing,
1$ cQnstruing or determ�ning the valldity of any proviszon af this Agreement shail be
�9 filed in the Super�or Court� of Shasta County, State of Califc�rnia, and the parties
20 hereta waive all provisions of law praviding for the filing, removal or change of
21 venue to any other caurt or jurisdiction.
22 44. SEVERABILITY. Each paragraph and provision of this Agreement is
23 severable fr�m each other provisian,and if an�provision or part therec�f is declared
24 invalid by a competent court of law, the remaining provisions shall nevertheless
ZS rernain in full farc� and effect.
26 45. MINISTERIAL ACTS. CITY's Housing Manager or designee(s) are
27 authorized to take such ministerial actians as may be necessary or appropriate to
28
Page 49 af 58
Form PLHA Loan Agreement
1 irnplement the terms, provisians, and conditians of this Agreement as it may be
2 amended fram time to time by both parties.
3 46, MQDIFICATION OF AGREEMENT. CITY ar BQRROWER may cansider
4 ' zt in its best interest to change, mQdify t�r extend a term or condition c�f this '
S Agre�ment, pravided such �hange, modification or extension is agreed ta in
6 writing by the other party. Any such change, extensic�n or modification, which is
7 mutually agreed upon by GITY and BORROWER shall be inc�rporated in written
8 amendments to t�s Agreement, Such amendm�nts sha11 not invalidate this
9 Agreement, nor relieve or release CITY or Bt�RR4WER from any obligati�ns
10 under this Agreement, except for tho�e parts thereby annended.No amendment to
11 this Agreernent shall be effective and binding upon fhe parties,unless it expressly
12 makes reference to this Agreement, is in writing, is signed and acknawledged by
13 duly authorized representatives af all parties;and approVed by the CITY.
I4 47. SCI-�EDULE OF PERFCJRMANCE. BORROWER sha11 use commercially
1,5 reasonable effc�rts to satisfy the c�bligations set forth herein and in the Schedule o£
16 Performance in a timely manner and by the dates set farth hereil�and thereirt,The
17 Project shall be completed and a Notice of Completion shall hav� been recorded
18 ' in the Official Recc�rds nc� later than the date set forth in the Schedule of
19 Performance (the "Completion Deadline"). Pravided that all constructzon and
20 permanent financing remains committed to t�e Proj�ct,B4RROWER may request
21 an extension of the Com�letion L}eadline from CITY ("Extension"), which nnay
22 be granted if the BORROWER can provide proof that all construction and
23 permanent financing rernains committed tfl the Prc�ject and that the circumstances
24 that led to the failure to complete the �'raject by the Completior� I?eadline were
25 beyc�nd the SC�RROWER's cantroL Extension is subject to C1TY's reasonable
26 ' appraval, and not guaranteed. The Housing Manager, or designee, has the
27 autharity, at his ar her discretion, t� cansent to sucl� Extension.
2$
Page 50 of 58
Form PLHA Loan Agreement
1 ' 4$. PRC)JECT �TNANCING CQNTINGENCY. This Agreement is expressly
2 conditioned upanB4�ROWER°s delivery to CITY,on or prior to the dafe set farth
3 in the Schedule of Performance of written documentati�n of such binding loan
4 cammitments required ta fuliy finance the develapment, cc�nstruction and
5 operation ofthe Project(less the PLHA Loan); on terms and conditlons acceptable
6 ' to Bt�RR4WER and CITY, includin�, but not lirnited any conventional
7 construction and/or permanent financing. Either CITY or BQRRt�WER may elect
$ to terminate this Agreernent with ten (lOj days pzi�r written notice to the other
9 party if BORRQ�ER fails to aequire the project �nancing as required by this
10 Sect�on 4�: LJpon such terrnination, this Agreement shall be null and void,and:
11 a. If BflRRC?WER elects to terminate this �:greement;
12 BC>RROWER shall be released and discharged by CITY from its
13 obligatians under this Agreernent; or
14 b: If CITY elects ta terminat� this Agreement, CITY shall be
15 released and discharged by BORROWER from its obligations
16 under this Agreement.
17 At that time all costs incurred by each party on the Project will be borne by the
18 Party incurring such costs, and each party shall b� r�leased frorr� all liability uncier this
19 Agreement, e�cept thase obligatians which by their terms survive t�rmination.
20 49. EXHIBITS AND ATTACHMENTS, Each of the attachments and exhibits
21 attached h�reta is incorporated herein by this reference. To the extent
22 BQRROWER is required to execute and deliver ta CITY an agreement
23 substantially in the form attached hereta,execution and delivery of such agreement
24 constitutes consideration given to CITY for the PLHA Laan funds and ofher
25 obligations of CITI'hereunder.
2b ' S�. MEDIA RELEASES. BQRROWER agrees to allow CITY to pravide input
27 regarding all media releases xegarding the Project. A�y publicity generated by
28 BC>RRt�WER for the Project must rnake reference to the ct�ntrlbutiQn of CITY in
Page 51 c�f S8
Form PLHA Loan,Agreement
l rnaking the Project passible. CITY's name shall be prominently dispiayed in ali
2 pieces of publicity generated by B(?RRC�WER, includinb fl�ers, press releases,
3 pasters; signs,brochures,and public service announcements.BORR.t��ER agrees
4 to caoperate with CITY in any CTTY-generated publicity or pramotianal activities
5 with respect to the Project.
6 51. NOTICES. All notices,requests, demands and other communicatian requ�red
7 or desired to be served by either party upan the ather shall be addressed to the
8 respective parties as set forth below or the such other addresses as from time to
9 time sha11 be designated by the respective parties and shall be sufficient if sent by
10 United States first class,certified mai1,pastage prepaid5 or express delivery service
l l with a recei�t showing the date of del�very.
12
13
14
CITY BC?R.RC7WER
15 City of Redding The Goad News Rescue Mission
�� Hc�usil7g Manager Executive Director
777 Cypress Avenue 2842 S Market Street
17 Re�ding, CA 96Q01 Redding; CA 96001
18
52. COIJNTERPARTS. This Agreement may be signed by the different parties
19
hereta in counterparts, each af which shall be an ariginal but all of which together
za
shall constitute on� and the same agreement:
21
53. EFFECTIVE DATE. The effective date of this Agreement is the date the
22
parties execute the Agreement ("Effective Date"}. If the parties execute the
23
Agreement on more than one date,then the last datethe Agreement is executed by
24
a party shall be the Effective Date.
25
54. FLTRTHER ASSURANCES. BORR.CIWER shall execute any further '
26
dacurnents consistent with the terms af this Agreement, including dacuments in
27
recordable fi�rm, as the CITY may from time ta time find necessary c�r appropriate
28
to effectuafe its purposes in entering into this Agreement,
Page 52 �f 58
Fcarm PLHA Laan Agreement
1 55. I'�1QNLIABILITY OF CITY OFFICIALS AND EMPLOYEES. No member,
2 official, ernplayee or consuitant of the CITY sha11 be- personally liable tc� the
3 BC}RROWER, ar any successar in iilterest, in the event af any tiefault or breach
4 by the CITY or fflr any arnount which may become due to the BORRC?WER or to
S it� suceessar,ar on any obligations under the terms of this Agreement.
6 ' S6. CC}NSTRUCTIC7N ANL? INTERPRETATION C)�' AGREEMENT. The
7 ' language in all parts of this Agreement shall in all cases be construed simply, as a
8 whole and in accordanc� with its fair meaning and nc�t strictly for or against any '
9 party. The parties hereto acknowledge and agree that this Agreement has been
10 prepared jointly by the parties and has been the subject of arm's length and careful
11 negotiation aver a cansiderable periad af time, that each party has been given the
12 opportunity to independently review this Agreement with legal caunsel, and that
13 each party has the raquisite experience and sophistication to understand,interpret,
14 and agree ta the particular language c�f the provisions hereaf. Accordingly; in the
15 event of an ambiguity in ar dispute regarding the interpretation ofthis Agreement,
16 this Agreement shall not be interpreted or construed against the party preparing it,
1� and instead c�ther rules of interpretatian and canstructic�n shall be utilized.
18 a. If any term or pravision of this Agreement, the deletion of which
19 would nc�t adversely affect the receipt of any material benefit by any party hereunder, shali be
20 hel� by a court of competent jurisdiction to be invalld or unenforceable; the �emainder of this
21 Agr�ement shall nc�t be affected thereby and each ather term and provision of this Agreement
22 shall be valid and enforceable to the fullest extent permitted by law. It is the intention of the
23 parties hereto that in lieu af each clause or pravision af this Agreement that is illegal; invalid, or
24 unenfarceable, there be added as a part of this Agreement an enforceable clause ar provision as
25 similar in terms to such illegal, invalid, �r unenforce�ble clause c�r prc�vision as rnay be pc�ssible:
26 b, The captions of the articles, sectiQns, and subsectic�ns herein are
27 inserted solely for convenience and und�r nc� circnmstances are they or any af them ta be treated
28 or construed as part of this instrument.
Page �3 of 58
Form PLHA Laan Agreement
1 ' c. References in this instrument tc� �his Agreement mean, refer to and '
2 znclude this instrument as well as any rid�rs,exhil�its,addenda and attachments hereto{which are
3 hereby incoipar�ted herein by this reference) or rather documents expressly incorporated by
4 reference in this instrument. Any references to any covenant, candition, c�blig�tion, andlor
GG ' �75 G6 >9 GS 95 '
5 undertaking hereln, hereunder, ar pursuant hereto {or language of like import)means,refer
6 to;and include the covenanfs, obligat�ons, and undertakings existing pursuant to this instrument
7 and any riders, exhibits, addenda, and attachments or other documents affixed to or expressly
8 incorporated by reference in this instrument.
9 d: As used in this Agreement, and as the cont��t may require, the
10 singular includes the plural and v�ce versa, and the masculine gender include� the feminine and
11 vice versa.
12 57. TIME C7F ESSENCE, Time is of the essence with respect to the perfarmance
13 of each of the covenants and agreernents cc�ntained in this Agreerment.
14 58. BINDING EFFECT, This Agreement; and the terrns, p�ovisions, prc�mises,
15 cavenants and conditions hereof, shall be binding upon and shall inure to the
16 benefit af t]he parties hereto and their respective heirs; legal representatives;
17 successc�rs and assigns.
18 �9. NU THIRD PARTY BENEFICIARIES. The parties to this Agreement
19 acknawledge and agree that the provisions of this Agreement are for the sc�le
20 benefiY of CITY and BORR4WER, and not for the benefit, directly or indirectly,
21 of any othe�person or entity, ex�ept as otherwise expressly pr�vided herein.
22 ' 60. ENTIRE AGREEMENT WAIVERS AND AMENDMENTS.
23 ' e. This Agreetnent shall be executed in two duplicate ariginals ea�h
24 r�f which is deemed to be an ariginal, This Agreement, including ail attachrnents hereto and
25 exhibits appended t� such attachrnents shall canstitute the en:tire understanding and agreement of
26 the parties.
27
28
Page 54 of 5$
Form PLHA Loan Agreement
1 f. This Agreement integrates ali of the terms and eonditic�ns
2 mentzaned herein or incidental hereto; and supersedes a11 negotiations or previous agreements
3 between the parties with respect to all ar any part of the Prap�rty.
4 ' g. All waivers of the provisions of this Agreement must be in writing
5 and signed by the appropriate autharities of the CITY c�r the BQRRC?WER, and a11 amendments
6 hereto must �ie in writing and signed by the appropriate authorities of the CITY and th�
7 BORRCaWER; This Agreement and any provisions hereof may be amended by mutual written
8 agreement bythe B012IZOWER and the CITY
9 ' /ll
10 ' ///
11 //l
12 (SIGNATL.TRES ON THE NEXT I'AGE)
13
14
15
16
17
18
19
20
21 '
22
23
24
zs
��
27
28
Page 55 of 5$
Fcsrm PLHA_�oan Agreement
IN WITNESS WHERE(?F, CITY and BORROWER have executed this Agreement as of the
dates v�ritten below.
City af Redding, a municipal corpc�ration
Date;
By: Barry Tippin, City Manager
ATTEST; APPRO'�1ED AS TC)FORM:
By: Sharlene Tipton, Gity Clerk By. Christian M: Curtis, City Attorney
B4RR� ER
The Gaod News Rescue Missian,
a California nanprofit public corporation
�
By: f 1,✓� �/ _
.-.
Jo athan An on,
E ecu `ve rector
(Signatures need to lbe notari�ed)
S-1
L T
A notary public or other afficer completing this
certificat� verifies anly the identity of the individuai
who �igned th� document tc�which this certificate is
att�ched, and not the truthfulness, accuracy, or
vaiidit af fihat document.
St�te of C�Iifc�rnia
County c�f Shasta )
on May 19, 2025 be�are me, Kristen K, McGe�, (��tary Public
(insert name and titile of the c�fficer)
pers�nally appearad Jonathart Artderst�rt
,
wha proved ta me on the basis c�f s�tisfactc�ry eviden�e to be the person(s) whase name(s) is/are
subscribed tc� the within instrurnent and ackn�wledged tc� me that he/shelthey executed the same in
histherftheir autharized capacity(ies), �nd that by his/h�r/their sig�ature(s) on the instrum�nt the
persan(s), or the enti#y upon behaif of which th� person(s) acted, executed the instrument:
I certify under PENALTY t"�F PERJURY under the laws af the State c�f Califarnia th�t the faregoing
par�graph is true and c�rrect.
�� o r�- Notary�ublic�.Ca�fo�n
WITNESS my hand �nd official seal.
,
' ia
� � �� �
� - _ 5hasta County �
� § Cammission�240433&
`' _ �, : r'�,Fap"�� My Gomm,Expires Jun 2�,2025
Signature � t�:��� ��. "�
.��.� � (5�a1)
Farm PL.HA Loan Agreement
E I�IT A
Propertv Le�al Descriptian
Real pxoperty in the City of Redding, County af Shasta, State of Caiifc�rnia, described as follows:
THAT REAL PR(�PERTY 1N SECTIONS 14 AND 15 tJF THE P. B. READING GRANT,IN
THE CITY t�F REDDING, SHASTA CUtTNTY, CALIFORNIA,DESCR.IBED AS
FOLLOWS:
3100 South Market Stre�t and 1411 Grange Street (APN: 104-620-056-00U)
PARCEL 1:
BEGINNING AT THE 1NTERSECTIOIV t�F THE SOUTHERLY LINE (7F WILLARD
STREET AND THE WESTERLY LINE flF STATE IDGHW AY C.TS 99; FROM WHENCE A
6"X 6" CONCRETE MONUMENT MARKING THE NORTHEAST CC?RNER C►F LOT 4 OF
TH�LAS�EN VIEW SUE3DI�I�SIt�I�1 AS PEIZ P'LA�' �N FILE iN THE C�JUNTg'
RECt7RI�ERl S OFFICE, SHASTA CQLTNTY, BE�RS S. 88 L?ECREE" 24' E., 20.00 �EET
AND N.Q DEGREES 55'02" E., A DISTANCE �F 19?9.54 FEET; THENCE FROM SAID
P�INT OF BEGINNING; S, 2 DEGREES 43'30"E., 115 FEET TO A F�?INT C?N THE
NQR.TH LINE OF THE PRQPERTY CCINVEYED T(J BL7RTt�N`D. BAI�E12 ET UX BY
DEED DATED MAY 6, 1958, RECORI7ED MAY 12, 1958 I1�1 BQOK Sb5 QFFICIAL
RE�OR.I)S, AT PAGE 489; SHASTA COUNTY RECC7RDS; THENCE N. 8� DEGREES 241
W, 94 FEET; THENCE NORTHEASTERLY 115 ]FEET MURE OR LESS TO A P{�INT ON
THE SOUTH LINE OF SAID WILLARD STR:EET WI1�CH BEARS N. 8$ DEGREES 24' W.,
90 FEET FROM THE TRUE POINTaF BEGINNING, THENCE S. 88 DEGREES 24' E., 90
FEET TC7 THE TRUE PUINT+QF BEGINNING.
PARCEL �,:
BEGINNII�T�"i A�"A 11/2" IRON F'IPE I�it�NU1VIElVT SE�'�N�'lE-IE �WWESTEt�I.,Y�GEI'I"C)F
WAY LINE OF MARKET STREET, CITY CtF REDDING, CCIUNTY 4F SHASTA, FRC?M
WHENCE A 6''X 6" CONCRETE MC7NUMENT MARKING THE NORTHEAST CQRNER
OF LOT 4 C7F THE LASSEN VIEW SUBDIVISItJN AS PER PLAT t�N FILE ZN THE
COUI�TTY RECURDERI S C7FFICE, SHASTA COUNTY, BEARS NORTH O DEGREES
55'02"EAST A DISTANCE OF 1979.54 FEET; THENCE RLJNNING NQRTH 88 DEGREES
24' WEST A]DISTAlVCE OF 280:00 FEET T4 A 1 1/Z" IRON PIPE M(JNUMENT MA I�
RE 4603; THENCE St�UTH 2 I�EGREES 4313011 EAST'A DISTANCE l7F 125.00 FEET TO
A 11l2"IRt��eT PIPE MOI�UMEN1° MARKED RE 4603; THENCE SOUTH 88 DEGREES 24'
EAST 166.0�FEET, THENCE N4RTH 2 DEGREES 43' 30" WEST 1 Q. 00 FEET,'THENCE
S�UTH 88 DEGREES 24' EAST 114.00 FEET; THENCE NC?RTH 2 DEGREES 43'3099 WEST
A DISTANCE QF i 15.t�a FEET TO THE POINT OF BEGINNING. EXCEPTING
THEREFRQM THE EAST�RLY 2t?FEET, ALSO EXCEPTING THERE FROM THE
PARCEL �F LAND DESCRIF3EI) IN THE I)EED FROM R.A. Ct�CKERTLL AND
DOROTHY CQCKERILL, WIFB TO DELL MII�.E STEPP AND GEORGIA STE�'P, IDW
VVIFE, RECORDED JANt7ARY 9, 1964 IN Bt?QK 771 OF C7FFICIAL RECC}1�S AT PAGE
300, SHASTA C(JUNTY RECC?RDS.
PARCEL 2A: C(�MMENCINCr AT THE 11J2-" IR(�N PIPE MARI�.ING THE SQUTHWEST
1 of 5
Form PL:NA Loan Agreement
CORNER QF BLC}CK 15, AS SH(aWN {)N THE MAP OF PARK SUBDIVISI(JN;
RECORDED 1N THE fJFFICE C}F THE COLINTY 1ZE,CCIRDER MAY 25, 1936 IN BO(�K 5
Q� ���� ,t"1:��L'�V�Li l�? ��L`��.d.� LiV.VAtl$�ddLt✓V.�:�� 9.��1VL.J� �oS11� � �...1�L1.���� ��.9.
WEST SU.00 FEET TQ THE PQINT 4F' BEGINNTNG�F THIS PARCEL,THENCE S4UTH
1 DEGREES 3b' WEST 124.98 FEET; THENCE SOUTH$$ DEtsREES 24°EAST 25.00 FEET;
MC�RE OR LESS, TQ THE WEST L1NE t7F THE SECC?ND PARCEL I}ESCRIBEI7 IN THE
DEED Ttt7 R. A:. COCKERILL,RECORII�ED 1N THE C?FFICE C}F THE COUNTY
RECClRI7ER MAY 14, 193� IN BOOK 126 OF OFFICIAL REC(7RDS AT PAGE 31,
SHASTA CQUNTY RECORDS; THENCE NC}RTH 2 DEGREES 43'3011 WEST 125.00 FEET
TO THE SQUT�TERLY LINE C}F WII�LARD STR.EET AS SH(JWN {JN SAID MAP;
THENCE ALONC�SAID S4UTHERLY LINE NOIZTH 88 DEGREES 24' WEST T() THE
POINT C}F BEGINNING.
Fnrm PLHA Loan Agreement
E IBIT "B"
Scone of Wark,and Proiect Ue�cri�►tian
Borrower: The Good News Rescue Mission
.Acldress. 2842 S Market Street
Reddin�, CA 96001
Froject Title: �aretakers Unit
Location: 3 l d0 S Market St., Redding, CA 96001
Identified as Assessar's Parcel Number— 113-270-006-�OQ
Project Description.
The Go�d News Rescue Mission (GNRM), a Cal�fornia_nonprofit co�°paratic�n wi11 utilize
$250,�00.�0 in PLHA funds for the develt�pment of a newly cc�nstructed caretaker/ADU and
related arnenities located on 310i�S Market Street,Reding,CA 96(?01,alsa identified as A.ssessox's
Parcel Nuznber 104-620-056-0Q0. When complete,the Project will consist c�f a one 1-bedra�m/1-
bathroom unit(630 square feet).
The Scope of Work shall comply with all entitlernents for the Prc�ject and include fhe purchase
and construction of one {1) 1-bedroomll bathrt�om pre manufactured ADLT to be utilized as a care
takers rental�,init. The 4wner/Qperator will develop the pr�pertylocated at 31Q0 S Market Street,
Redding, Shasta Caunty, Califarnia, Assessor's Parcel Nurnbers 104-62Q-056-000, It is
cantemplated by the parties that the Owner/Qperator wi�1 design and develop, inc�uding all
required infrastructure and permit fees,on the aforementioned prop�rty.GNRM;in its capacity as;
will complete and maintain the development for the extent of the affc�rdability period.
T'he Owner00perator shall improve or cause to be irr�prov�d, on the I'raje�t Sitey purslz�nt to the
Agreement, an agreed upon a �inal Project Budget (whieh may be different from the original
Preliminary Project Budget), this Exhibit, the Final Project Plans and Specifications, and all
conditicrns set forth in any City permit issued for the Project, The canstructed unit will be
completed to the satisfaction af the City of Redding Housing Division and the Project Manager
and will be "'move-in" ready. The t)wner/(Jperatar sha11 camrnence and complete the Pro�ect by
the respective times established theref�re in the Sched�le of Performance; The Project will be
subject to long-term affordability covenants as summarized in this Agreement.
Form PLHA Loan Agreement
Exhibit G
St�urc�s and Uses of Funds
Constructian and Permanent Saur�es and Uses.
Sources
CITY PLHA Loan $ 250,OQ0.00
Total�ources $ 250,000.00
Uses.
ACC1UiS1$1011 �
Construction costs $ 250,0�0,00
Soft�osts (Permits,Architectural Fees, etc.)and Reserves $
Contingency $
Develaper's JFee $
Total Uses $ 250,000:00
Form PLHA Loan Agreem�nt
E IBIT D
SCHEDULE taF PERF(J►RMANCE
1. Financin�. Borrower shall timely submit Following CITY apprtrval and execution
applications for financing for the Project. of the Agreement, but in nc� event later
than Jul 1, 2025.
2. Additional Financin�. If necessary, Borrawer Fallawing CIT"� appraval and execution
shall re-apply for �'inancing for the l'rt�ject or of the Agreement, but in no event later
a 1 for additional financin . than Jul �, 2Q25.
3. Project Bud�et and Plans. Borrower shall A drafk Project Budget and Plans sha11 be
submit to CITY the Project Budget and Plarns. submitted not later than 120 days priQr to
the date praposed for Closing, with a final
Project Budget delivered prior to final
Closin .
4. Finanein�, Cr,mmitments and Documents. As sflon as reasonably practical, but in no
Borzower shall subrnit to CITY financing event later than 90 days prior to the
cc�mmitments and draft legal agreements f4r all Closing Date.
constructian and permanent financing for the
Pro�ect.
5. Eserc�w — Purchase of the Propert�. If At least 90 days prior to the date prop�sed
apPlicable,BORROWER shall open Escrow for for Closing but in no event later than 90
the ur�hase of the �ro ert . da s r�ar to the Outside Closin Date.
6. Ccanditions F'recedent tu the Closin�. Not later than the later ta accur of{i)the
BQRROWER shall satisfy all cmnditions C}utside'Clasing Date, or(ii) such date as
precedent to Closing, if applicable. required by TCAC pursuant tQ an award
of LIHTCs made prior to the Qutside
Closin Date.
7. Clc�sin�te. The Deed of Trust and a11 liens Not later than the later to occur of(i) the
required for constructian financing for the Outside Closing Date, or (ii) such dafe as
Project shall be recorded in the C?fficial Recards required by TCAC pursuant to an �ward
of Shasta County prouided all conditians o�LIHTCs for the First Phase rnade prior
precedent in Sectic�n 12 of Agreement remain to the Outside Clt�sing I�ate.
satisfied, f f a licable.
8. Construction Cc�mmencement. Borrower shall Within 30 days c�f the Clc�sing Date.
commence construct�on ofthe Pro�ect. ,
9. Canstruction �orntaletion. �orrower shall Within twelv� (12) rnonths of the Closing
complete constructic�n of the Imprc�vements for I7ate.
the Prc�`ect as �hov�rn on the Fina1 Constructi�n
Farm PLHA Loan Agreement
Drawings upon which Borrower's building
erm�t is based .
10. Leasin�. Barrower shall have entered into Within ft�ur(2)mc�nths fram Natice of
leases with Qualified Tenants far the Completion.
Affordable Units.
11. Submission �f Final actual project costs and Within Three (2)months from Notice of
Sources and Uses of Funds Com letian,
12. Submission of income & ethnic characteristics Within Three �2} months from Notice of
re ort C�m letion.
Form PLHA LQan Agreement
DCICUMENT SUBMISSION SCHEDULE
Documents Due Date
1. Cr�nstruction Activities Rep�rting Monthly,dtie by the 5th of each month
2. Liability and Certificate of Workers' B(�3RROWER—At Clasing. GC—At
Cornpensation Insurance for Closing;but in no event later than the
Borrower and General Cvntractar{GC) start of construction. Cop�es c�f
Gertificates must be filed and ttp-ta-date
throughout the caurse of th�Pra�ect vvith
CITY additionall insur�d.
3. Pro'ect Site Plzatos Bimonthl ,due b the S"`of each mantl�
4. The filin of the Natice of Com letian End of Consti•uction
5. Certificate of Occupaney End of Gonsti•uction
6. TenantChecklist Reporting C1ose of Project; and
Serni-Annuall --Se t 30th&March 31st
7. Conditic�nal/Unconditional Release for Final Close of Project
frc�rn GC; and if a licable, Sub-contcactc�rs
8. Pro`ect Com letian Re ort C1ase af Pro`ect
9. Final Develo ment Cost- SQurces and Uses C1ose af Pro�ect
10. Final Cost Certification b CPA Glose of Pro'ect arid Atrdits Coin leted
1 l. Final 15/3Q Year Cash Flaw Pro'ection Close ofPro'ect
12. Affirmative Fair Housing Ma1•keting Ptan, Marketing Stage
HCD form 935.ZA
13. IVlana em�nt Plan Marketin Sta e
14. Tenant Selection Palic Marketin Sta e
15. Co of Lease A reement Marketin Sta e
16. Flyers, Community Contacts, Qutreac��, Press Marketing Stage
Releases, Grand O enirt inf�
17. Pro'ect Q eratin Bud et Annual submission
1$: Audited Yearly Income Expense Repar�t for Annual submissian
the Pro'ec;t
Exhibit E
PLHA DEED (�F "TRiTST
[attached]
REC�RDING REQUESTED BY:
City of Redding
CITY BUSINESS -NO FEE
Section 6103 af the Governm�nt Code
of the St�te of Califomia>
AND WHEN RE��RDED MAIL TCJ:
City af Redding Housin.g I)ivision
P.Q. Box 496071
777 Cypress Avenue
Redding, CA 96049-6Q71
SPA�E ABOVE'I'HIS LINE FOR RECORDER'S USE
EE OF TRUST, SECU TY AG E ENT AND FIXTU FILII�IG
{'WITH ASSIGNMENT +C�F RENTS)
PLHA L�an Funds
This DEELI flF TRLIST; SECLJRITIT AGREEMENT AND FIXTURE FILING WITH
ASSIGNMENT C)F RENTS ("I)eed of Trust99) is made this day of May, 2(?24 by TI�E
GO�tD NEWS SC'UE TSSIClN, a California non-pr�fit corporation, (hereinafter referred t�
as 64Trustor"), whose address is 2842 S. Market Street, Redding, CA 96t101. The trustee is
FLACEI2 TITLE CO PANY {"Trustee") whose address is 2001 Market St., Suite 100,
Redding, CA 9600 i. The beneficiary is the CITI' C?F DI�Il"�G, a rr�unicipal carporatian and
general law city, whose address 777 Cypress Avenue, Redding; Carifornia 96049-6071, herein
called"Beneficiary"andlor the "Lender".
WITNESSETH. That Trustor IRREV+(�CABLY GRANTS, TRANSFERS AND ASSIGNS td
Trustee, its successors and assigns,in Trust,with POWER C7�' SALE T4GETHER WITH RIGHT
OF ENTRY AND POSSESSION th�fallowing prop�rty (the "Trust Estate"):
(A) That certain fee interest in the real praperty located at 310Q S ark�t Street in the
City of Reddin�; County of Shasta, State of�a�ifornia more particularly described in Exhibit A
attached hereto and incorporated herein by this reference{such interest in real property is hereafter
referred to as the "Subject Property99��
�B) All buildings, structures and other improvements now or in the future located or to
be cQnstructed on the Subject Property (the "Impravements");
{C} All tenements,hereditaments,appurtenances,privileges,franchis�s and other rights
and interests now or in the fizture benefiting or c�therwise relating to the Subject Property or the
Improvements; inclutiing easements, rights-of way and development rights (the
44Appurtei�ances"). (The Appurtenances,.to�ether with the Subject Property and.the Improvements;
are hereafter referred to as the "Real Praperty"),
PLHA Fonn of Z?eed of Trust-GNRM AI}U 1 Of��L
(D) All rents, issues, income, revenues, rayalties and profits now or in the future
payable with respect to c�r otherwise derived from the Trust Estate or the Trustors,, use,
management, operation leasing or occupancy of the Trust Estate, including those past due and
U.n�.}a1Ll {�1�� ��Al�..�6.�?�}5
(E) All present and future right, titl� and interest of Trustar in and to aIl inventory,
equipment, fixtures and other goods (as those terms are defined in Divisian 9 af the Califarnia
Uniform Comrnercial Code(the"UCC"), and whether existing naw or in the future)now or�n the
future located at,upon or about,or affixed or attached to or installed in,the Real Property, or used
or tQ be used in connection with c�r otherwise relating ta the Real Property �r the ownership, use,
develc�pment, canstruction, maintenance, management, operati�an, �z�arketing, leasing or
c�ccupaney af th� Real Prc�perty; including �urniture; fizrnishings, theater equipment, seating�
machinerY, appliances,building materials and supplies, generators,boilers, furnaces;water tanks;
heating ventilating and air conditioning equipment and al1 other types of tat�gibie personal property
of any kind or nature,and all accessories,additians,attachments,parts,proceeds,products,repairs,
replacements and substitutic�ns of or tt� any af such property, but not including personal property
that is donated to Tr•ustor{the"Goods," and tt�gether with the Rea1 Property, the "Praperty''); and
{F) A.il present and future right, title and int�rest of Trustor in and to alI acccxunts,
generai intangibles, chattel paper; deposat acco�nts, money; instruments and d�euments (as those
terms are defined in the LTCC) and all other agreement�, obligations, rights and written rnaterial
(in each case whether existing nc�tiv ar in the future} now ar in the future relating to or otherwise
arising in connection with or derived from the Real Property or any other part of the Tru�t Estate
or the (�wner�hip, use, development, canstructian, rnaintenance, management, operatic-�n,
marketing, leas�ng, occupancy, sale or financing of the Rea1 Property or any other part�f tl�e Trust
Estate, including (to the extent applicable to the Reai Property or any c�ther portion of the Trust
Estate) (i) permits; approvals and other governm�ntal authorizatic�ns, (iij improvement plails and
specifications and architectural drawings, (ii1) agree�ents with contractors, subcQntractors,
suppliers, praject managers; supervisors, designers; architects, engineers, sales agents, leasing
agents, consultants and praperty managers, (iv) takeout, refinancing and permanent Ioan
commitments, (v) warranties, guaranties, indemnities and insurance palicies, tc>gether vvith
insurance payments and unearned insuranee pretniurns,(vi�claims,demands, awards, settlements;
and other payments arising or resulting from or atherw�se relating to any insurance oz any loss ar
destruction c�f,injury ar darnage ta, trespass on or taking, condemnatic�n(or canveyance in lieu of
candemnation) or public use af any of the Rea1 Property, (vii} license agreements, service and
maintenanc� agreements, purchase and sale agreements and purchase options, together with
advance payments, security deposits and c�t�er amounts paid to ar deposited with Trustor under
any such agreements, (viii) reserves, deposits, bands, deferred payments; refunds, rebates,
disccrunts, cost savings, escrow proc�eds,sale proceeds and other rights to the payment c�f money,
trade names, trademarlcs, goodwill and all other types of intangible personal property of any kind
ar �ature, and (ix} alI supplements, rnt�difications; amendments, renewals, extensions, proceeds,
replacements and substitutiQns of�r t� any of such property (the "Intangibles"},
Trustor further grants to Trustee and Benefi�iary, pursuant ta the UCC, a security interest
in all pres�nt and future right, title arld interest of Trustor in and ta all Goods ar�d Intangibles and
all of the Trust Estates described abc�ve in which a security interest may be created under the UCG
{colZectively, the "Personal Praperty"). This Deed of Trust constitutes a security agreement under
PLHA Forrn af I7eed afTrust-GNRM ADU �O�l�
the UCC,conveying a security interest in the Personal Prc�perty to Trustee and Beneficiary.Trustee
and Beneficiary shall have,in addition tc�a11 rights and remedies provided herein, all the rights and
rernedies of a "secured party'' under the UCC and other applicable California law. Trustor
covenants and agre�s that this Deed af Trust constitutes a fixtuz:e filing under Section 9334 and
9502(b) of the I7CC.
F�R THE PURPC?SE OlF SECURING, in such arder of priority as Beneficiary may elect, the
following:
(i) due; prornpt and complete abservanee; performance and discharge af each and every
condition, obligation, covenant and agreement contained herein or cc�ntained in the following:
(a) that certain Fromissory Nate Secured by Deed of Trust(PLHA Loan Funds}in favor of the
Beneficiary ("'CITY" therern) executed by Trustor ("BflRR:OWER" therein) of even date
herewith (the``Note")in the principal amc�unt of$�50,00�.{�0;
(b) that certain Loan Agreement for the Use of PLHA 1'rogram Funds dated May�, 20�5
and recarded in the Official Records of the County of Shasta �"Official Records")
cc�ncurrently herewith, between Trustor (``BQRR:OWER" therein) and Beneficiary
("CITY"th�rein) {the"PLHA Loan Agr�ement"); and
(c) that certain Covenant Agreement (PLHA Loan Funds) d�ted on or about the date hereof
and recorded concurrently herewith in the �fficial Records; between Trustpr
("BORROWER"therein}and Beneficiary("CIT�"fiherein} {"Covenant Agreement"}.
(ii) payxnent of indebtedness c�f the Trustor to the Beneficiary in the c�riginal principal amc�unt
af Two I�undred Fifty T"h+�usand and UOl100 ollars (�250�000.00} (the "PLHA Loan"),
together with any interest or other amount�due ac�ording to the terms afthe Not�ar�d/or the 1'LHA
Laan A.greement.
Said Note, PLHA Loan Agreernent and C�venant Agreement (collectively, referred to as
the "Secured (7bligations") and atl r�f their terms are incarporat�d herein by reference and this
Deed af Trust shall secure any and all extensions, atnendments,rnodifications or renewals thereof
however evidenced, and additiQnal advances evidenced by any nate reciting that it is secured
hereby, fihe Note, PLHA Lc�an Agxeement and Cc�venant Agreernent �s used herein shall rnean,
refer to and include the Note, PLHA Loan Agreement and Cavenant Agr�errient, as well as any
riders,exhibits; addenda,implementation agreements,amendments,or attiachments thereto(which
are hereby incorporated herein by this reference). Any capitalized term nQt otherwise defined
herein shall hav�the meanin�ascr�bed to such terrn in fhe PLHA I,oan Agreement,
TRUSTOR COVENANTS that the Trustor is lawfuliy seized af the estate hereby canveyed
and has the r�ght to grant and convey the fee interest of the l'roperty. Trustor warrants and wpll
defend generally the titie to the Property against all claims and demands, subject to such
encumbrances of record.
PLHA Eonn of Deed of Tcust-GNRM ADU � bf��
AN TO PR�TECT THE SECU TY �F T IS EED QF TRUST, TRUSTQR
CCI►VENANTS AND AG ES:
1. That Trustor shall pay the Note at the time and in the manner provided therein, and
perform the obligatio:ns c�f the Trustor as set forth in the I'LHA Loan Agreement and Covenant
Agreement at the time and in the manner respectively pravided therein.
2. That Trustor shall nat permit or suffeY the use Qf any c�f the Property for any pulpose
other than the use set forkh in the PLHA Loan Agreement and Covenant Agreernent. '
3. That the Secured Obligatians are incar�aarated in and made a part c�f this Deed of
Trust. Upon default of any obligation u�der a Secured Obrigation, and after the giving af nnt�ce
and the expiration r�f any applicable cure period, the Beneficiary, at its option, may declare the
whole of the indebtedness seeured hereby to be due and pa�able:
4. That a1I rents, prc�fits and income from the prQpertiy cc�vered by this Deed of Ti�ust
are hereby assigned tc� the Beneficiary for the purpose of discharging the debt hereby secured.
Permissian �s hereby given to Trustar sc� long as no default exists hereunder after the gauing of
notice and the expiration of any applicable cure periad, to callect such rents, profits and income
for use in accordan�e with the prc�visions of the FLHA Lc��n Agre�ment and Covenant Agreement.
4a. That upon default �ereunder or under any of the Secured Obligations and after
giving natice and oppc�rtunity ta cure, Benefic�ary shall be entitled to the appointment of receiver
by any court having jurisdiction, without notice, to take pc�ssession and protect the Trust Estate
described herein and operate the Real Property and collect the rents,profits and incame therefrom,
5. I'aymemt of Principal and Interestg Prepayrnent and L�te Charges. Tr�stor
shall promptly pay when due the principal of and interest on the debt evidenced by the Note and
any l�t� charges d�e under th�Note.
6. Taxes and Insuranee. Trustor shall pay befare delinquen�y all taxes and
assessments affecting said Rea1 Prcaperty, including assessments on appurtenant water stock;when
due, a11 encumbranees,charges and liens,with interest, on said property or any part thereof,which
appear to be prior or superic�r hereto; a11 costs, fees and e�cpenses c�f tl�s Deed of Trust.
a. Should Trustor fail to mak� any payment or to do any act herein provided, then
Beneficiary or Trustee,but withaut obligation so te��a and upon written notice to or demand upon
Trustor and without releasing Trustor frc�m any obligation hereof, may make c�r dc� the same in
such manner and to such e�tent as either may deem necess�ry to protect the securit� hereof,
Seneficiary or Trustee being authorized tc� enter upon said property for such purposes, appear in
and defend any acti�n or proceeding purpor�ing to affect the security here�f or the rights or powers
ofBeneficiary or Trustee;pay,purchase; contest or compromise any encumbrance, charge,or lien
which in the judgment of either appears to be prior ar superior hereto; and, in exerci�ing any such
powers, pay necessary expenses,employ counsel and pay his or h�r reasonable fees.
PLHA Form of Deed of Trust-GNRM t1DU � Of��
7: ApPlicat�on a�Payments. LTnless applicabie law provides otherwise,all payments
received by Beneficzary under Section S shall be applied: first,to interest due;secand,to principal
due; and last,f� any late charges due under the Note.
$. Friar I�eeds of Trust; Charge; Liens. Trustor shall pay all taxes, assessments,
charges,fines and impositions attributable to the Property which may attain priarity over this Deed
of Trust;and leasehold payments or ground ren�s,if any, subject t�applicable cure periods directly
to the person owed payment. Trustar shall pay these obligatians in the manner pravided in�ec#i�n
6. Trustor shall pramptly furnish to Beneficiary all nc�tices of arnounts to be paid under this
Section. If Trustor makes these payments directly, Trustor shall promptly furnish to Benefici�ry
receipts evidencing the payments.
Except for the liens perrnitted in writing by the Beneficiary, Trustor shall promptly
discharge any other lien which shall have attained priority over this Deed of Trust unless Trustor:
(1) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable
to Beneficiary, (2,) contests in goad faith the lzen by, or defends against enforcement of the lien in,
l�gal proceedings which in the Beneficiary's opinicsn operate ta prevent the enf�rcement af the
li�n; or(3) bonds around the lien (4) secures frt�m the holder of th� lien an agreement satisfactory
to Beneficiary subordinating the lien to this Deed of Trust.Except for the liens approved herein,
if�eneficiary determines that any part ofthe Property is subject to a lie�which ma�attain priority
over this Deed of"Trust, Beneficiary may give Trustor a notice identifying the lien. Trustor shall
satisfy such lien or take csne ar more of the acti�ns set forth above withirt 30 days of the giving af
notice.
9: Subordinat�Primrity�osition. If applicable,this Deed c�f Trust shall be recorded
in a subordinate priarity pasition junior in priority ta the Co�venant Agreement and the I��ed of
Trust executed by Borrower for the benefit of a Senior Lender �r Seniar Lien Holder securing a
cc�nstructic�n lc�an and sueh other financing as has been approved as senior by the CITY fox the
d�velapznent ofth�proj�ct.
10. Hazard or Fraperty Insurance. Trustor sha11 keep the impravements now
e�isting or her�after erected an the Praperty insured against loss �f fire, ha�ards included within
the tei�n "extended coverage" and any other hazards, including floads or floading, for which
Beneficiary requir�s insurance. This insurance shall be maintaXned in the arnounts and for the
periods as required in the PLHA Loan Agreement. The insurance carrier providing the insurance
shall be chosen by Trustor subject to Beneficiary's approval which shall nat be unreasonably
withheld. If Trustar fails to maintain coverage described above,Beneficiary may, at Beneficiary's
option, obtain coverage tcr protect Beneficiary°s rights in tlhe I'raperty in acc�rdance with �ection
12.
a: Ali insurance palicies and renewals shall be acceptable ta B,eneficiary and shall
include a standard mortgagee clause. All requirements hereof pertaining to insurance shall be
deerned satisfied if the Trustor complies with the insurance requirements under this Deed of Trust
and the PLHA Loan Agreement. Tru�tor shall promptly give to Benefi�iary certificates of
insurance showing the eoverage is in full force and effect �nd that Beneficiary is named as
additional insured. In the event af 1oss, Trustor sha1l give prompt notice to the insurance carrier,
PLIIA Eorm of Deed of Trust-GNRM ADU � O���
the Senior Lien Halder, if any, and Beneficiary. Beneficiary may make proof of loss if nc�t made
promptly by the Seniar Lien Holder, if any, or the Trustar.
b. LJnless Beneficiary and Trustor otherwise agree in writing and sub�ect to the rights of
senior lenders,insurance proceed�shall be applied to restaration ar repair of the Property damaged,
provided Trustor determines that such restoration t�r repair is economically feasible and there is no
default continuing beyond the expiratian of all applicable cure periad�. If Trustor determines that
such restoration or repair is nat �canomically feasibl� or if a default exists after expiration of a11
applicable cure periods, the insurance prtaceeds shall be applied to the sums secured by thls Deed
of Trust, with the excess, if any, paid to Trustor. If the Prc�perty is abandoned by Trustor, or if
Trustor fails to respand to Beneficiary within 3(l days from the datenotice is mailed by Beneficiary
ta Trustor that the insurance carrier offers to settle a claim for insurance benefits, Beneficiary is
authorized to collecfi and apply the insurance proceeds at Beneficiary's aption either to restoration
or repair of the Property or to the sums secured by this Deed of Trust.
c. Unless Benefi�iary and Txustor otherwise agree in writing, any application of pxoceeds
ta princi;�al sha11 not extend or postpane the due date af Note. If under Section 2�`the Property is
acquxred by Beneficiary, Trustc�r's right ta any insurance palicies and proceeds resulting from
damage to the Froperty prior tc� the acquisition shall pass tc�Beneficiary tt� the extent c�f the sums
secured by fihis I7eed of Trust irnmedrately pricrr to the acqulsition.
d. Notwithstanding the above, the Beneficiary's rights to collect and apply the insurance
proceeds hereunder shall be subject and subordinate to the rights of a Senior Lien Holder, if any,
tQ c�llect and apply such praceeds in accardance with a Senior Lien Holder Deed of Trust.
1l. Preservation, Maintenance and Fratecti�n of the Property; Trustor`s La�n
App,lication; Leaseholds. Trustor shall not destroy, damage 4r impair the Real Property,allow
the Real Property to deteriorate, ar commit waste c�n the Real Property; normal wear and tear
ex��pted, Trustar shall b� in cl�fault if any forfeiture action ar proc�eding, whether cxvil or
criminai, is begun th�t in Beneficiary's good faith judgment could result in forfeiture of the Real
Properly ar otherwise mat�rially lmpair the lien created by this I�eed of Trust or Beneficiary's
security interest. Trustor may cure such a default and reinstate, as pravided in Section 2�; by
causing the action or proceeding to be dismissed with a ruling that, rn Beneficiary's good faith
determinatir�n,precludes forfeiture of the Trustor's znterest in the Real Praperty or c�ther materzal
impairment af the lien created by this Deed�f Trust or Beneficiary's secur�ty interest.Trustor shall
alsa be in default�f Tiustor,during the l�an application process, gave materially false ar ina�curate
" inforination or statements to Beneficrary (or failed ta provide Bene�iciary with any rnaterial
informatic�n) in connection with the loan evidenced by the Nate, includzng, but nat limited to
representations concerning Trust�r's use af the Rea1 Property far�ffordable housing. If this I�eed
of Trust is on a leasehold, T'rustor shall comply with all provisions of the lease. If Trustc�r aequires
fee title to the Prc�perty,the leasehold and the fee title shall not merge unless Beneficiary agrees tc�
the merger in writing.
The Trust�r ackn�wledges that the Real Property is subject to certa�n use and accupancy
restrictions (which may be further evidenced by a separate agreement recorded in the land records
where the Pr�perty is located), limiting the Property's use to activities that comply with the PLHA
Program(as defined zn the PLHALoan Agreement): The use and occup�ncy restrictions may Iimit
PLHA Form of Deed of Trust-GNRM ADU � O���
the Trustc�r's ability to xent the Property. The violation of any use and occupancy restrictions may,
if not prohibited by applicable law, entitle the Beneficiary to the remed°res provided in Sectaon 27
hereof.
l�. Pra�tectian of Bene�ciary's Rights in the Property. If Trustor fails to perform
the cc�venants and agreements contained in this Deed of Trust, or there is a legal proceeding that
may significantly affeet Beneficiary"s rights in the Property (such as a proceeding in bankruptcy,
probate, for condemnation or forfeiture or to enforce laws or regulatians), then, subject to any
applicable grace periods or cure�eriods, Beneficiary may do and pay for whatever is necessary to
pratect th�value csf the Prtiperty and Beneficiary`s rights in the Pro��rty:Beneficiary's actians may
include paying any sums secured by a lien which has priority over this Deed of Trust, appearing
in court,paying reasc�nable attorneys'fees,and entering on the Property tc�make re�airs. Alth�ugh
Bene#iciary may take actian under this Section 12, Beneficiary does not have to do so.
Any amt�unts disbursed by Beneficiary under this Se�tion 12 shai�become additional debt
of Trustar secured by this Deed of Trust. Unless Trustor and Beneficiary agree tr� other terms of
payment,these amounts shall bear znterest from the date of disbursement at the Note rate and shall ,
be payable, with interest, upon notice from Beneficiary to Trustor rec�uesting paym�nt.
13. l�es�rved.
14, Insp�ection. Seneficiary or its agent may rnake reasonable entries upon and
inspectians afthe Prc�perty.Beneficiary sha�l give Trustor at least forty-eighk{48)hours advanced
notice in connectic�n with an inspectian specifying reasanable cause for the inspection.
15; Condemnation. The proceeds nf a�y award or claim for darnages; direct or
consequential, in conn�ction with any condemnation or other taking of any part c�f the Real
Property, ar fc�r canveyance in lieu af condetnnatic�n, are hereby assigned and shall be pa�d to
Ben�fici�ry, s�,�bj�ct ta the t�rms of a Se��or L��n Hold�r De�d of Trnst, if any.
a. In the event af a tc�tal taking c,f the Real Froperty; the proceeds shall b� applied to the
sums sect�red by this Deed of Trust, whether or not then due,with any excess paid to Trustor. In
the event af a partiai taking af the Real Property in which the fair market value of the Real Prcrperty
immediately before the taking is equal to or greater than the arnaunt af the sums secured by this
Deed of Trust immediately bef€�re the taking, unless Trustor and Beneficiary other�vise agree in
writing, the sums secured by this Deed of Trust shall be reduced by the amount of the proceeds
muiti�lied l�y the fallowing fraction: (a)the total amount of the sums secured immediately before
th�taking; divided by(b)the fair market value af the Real Property immediately before the taking.
Any b�lance sha11 be paid to Tru�tor. In the event of a partial taking of the Real Property in which
the fair rnarket value af the Real Fr�perty immediately before the taking is less than the arnount of
the suzns sec�ured immediately befare the tak�ng, unless Trustor and Beneficiary otherwise agree
in writing crr unless applicabl� law otherwise provides, the proceeds shall be applied to the sums
secured by this Deed of Trust whether or not the sums are then�ue,Natwithstanding the�oregoing;
so long as the value of Beneficiary's lien is not impaired, any condemnation prc�ceeds may be us�d
by Trustar fiar repa�r and/c�r restQratic�n c>fthe prc�ject.
FLI-IA Form of Deed af Trust-GNRM ADU � Of��
b. If the Real Property is abandaned by Trustor, t�r if,after nQtice by Beneficiary to Trustor
tha�the condemner offer5 to make an award or settle a claim far damage�,Trustor fails ta respond
to Beneficiary within 30 da�s after the date the notice is given, Beneficiary is authorized to collect
and apply the praceeds, at its c�ption, either tia restaration or rep�rr Qf the Real Property or to the
surns secured by this I)�ed of Trust, whether ar not then due.
c. Unless �eneficiary and Trustar otherwise agree in writing, any application of proceeds
fio principal shall not extend or postpone the due date of the payments referred to in Sectians 5
and 6 oz�change the amount of such payments.
16. Trustor Nat eleased; Forbearance By �eneficiary Not a Waiver. Except rn
connecti€�n with any successor in interest ap�roved by Beneficiary�n writing,extension of the tirne
fi�r payment or modification of amortization of the suins secured by this I)eed of Trust granted by
Beneficiary to any successor in i�terest of Trustor shall not operate ta release the liability of the
origina�Trustt�r c�r Trustc�r's successors in interest. Beneficiar� shall not be required to cammenc�
proceedings against any successar in interest or refuse to extend time fc,r payment or atherwise
modify amortization of the sums secured by this Deed of Trust by reason of any dem�nd made by
the original Trustor or Trustor's successors in interest. Any forbearance by Benefciary in
exercising any right or remedy shall not be a waiver of or preclude the exercise c�f any right or
rernedy:
17. Su�cessors and Assigns Bound, Jc�int and Several i.iability� Co-signers. The
cczvenants and agreements of this Deed c�f Trust shall bind and benefit the successors and assigns
of Beneficiary and Trustar, subject to the provisions of Section 22. Trust�r's covenants and
agreements shall be joint and several.
18. Loan Ch�rg�s. If the loan secured by this De�d of Trust is subject to a law which
sets maximum loan charges, and that Iaw is finally interpreted so that the interesfi ar other loan
char�es collected or to b�coll�cted in connection with the loan�xc�ed th�perdnitted limits, then:
(a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the
permitted lirrrit;and{b) any sums already collected from Trustor which exceeded permitted limits
will be promptly xefunded to Trustar. Beneficiary may chcrose to make this refund by reducing the
principal owed under the Nate or by makxng a direct payment to Trustor. If a refund reduces
princi�al, the reduction will be treated as a partial prepayment without any prepayment charge
under the Nc�te.
19. Not�ces. Any nc�tice to Trustor provided for in this Deed Qf Trust shall be given by
delivering it or by mailing it by first class mail unl�ss applicabl� law requires use of another
methc�d. The notice shall be directed to the Trustor's mailing address stated here�n c�r any other
address Trustor designates by notice to Beneficiary. A11 such natices tt� Trustar shall alst� be
provided to any party requested by Trustor in writing,including any the investment limited partner
at the address set f�rth in the PLHA Loan�greement. Any natice to Beneficiary shall be given by
first class mail to Be�eficiary's address stated herein or an� other address Beneficiary desi�nates
by no�kice to Trustc�r: Any notice required to be given to a Senior Lien Holder shall be given by
first class mail ta such c�ther address the Senior Lien Holder designates by notice to the Trustur.
Any natice provided for in this Deed of Trust shall be deemed to have been given to Trustor or
Beneficiary when given as provided in this Section.
�LI-IA Form of Deec3 of Trdast-GNRM ADU � C��l�
20. Governin� Law, Severability. This I)eed of Trust and any dispute arising
hereunder shall be governed by and int�rpreted in accordance with the laws af the State of
Califoz-nia. Each paragraph and prc�vision of this Deed of Trust is severable from each other
prouisic�n, and if any provision or part thereo�is declared invalid, the remaining provisions shall
nevertheiess remain in full f�rce and effect. To this �nd the pravisic�ns c�f this Deed of Txust and
the Note are declared to be severable. Any action at law or in equity arising under this Deed of
Trust or brc�ught by a party hereta for the purpose of enforcing, construing or determining the
validity of any provision of this Agreement shall be filed in the Superior Courts of Shasta County,
State o�California, and the parties heretc� waive all prc�visi€�ns af law providing for the filing,
ren�oval or change of venue ta any ather court or jurisdiction.
21. Treastor's Cop�y. Trustor shall be given one conf�rmed capy of the Note and of
this Deed of Trus#.
22. Transfer af the Property or a�eueficial Interest-in T�ustor.Except as otherwise
allowed under the PLHA Loan Agreement, if all or any part of the Real Property or any interest in
it is solci or transferred{c�r if a beneficial�nterest in Trustor is sald or transferred and Trustor is not
a natural person) without Beneficiary's priar written consent(including a transfer of all or any part
of the Property to any person who, at initial occup�ncy of the I'roperty; does nc�t use �he Real
Praperty for activities that comply with the PLHA Loan Agreement)�eneficiary may,at its aption,
require irnmediate payment in full of all sums secured by this Deec��f Trust. However,this opti�n
shall n.ot be exercised by Beneficiary if exercise i�prohibited by applicable law as c�f the date af
this Deed of Trust.Nothing°rn this I)eed of Trust shall be deemed to require Beneficiary's approval
of a conveyance of an easement interest in the Froperty for utility purposes:
a. If Beneficiary exercises the af�rementioned c�ption,Beneficiary shall give Trustor and the
Senior Lien Holder, prior written notiee af acceleration. The notice shall proVide a period of not
less than 30 days from the date the nca�ice is delivered or mailed withit�which Trustor must pay all
surns secured by this Deed of Trust. If Trustor fails to pa� these sums prior to the expiration �f
this peric�d, Beneficiary may invoke an�remedies perrnitted by this Deed of Trust without further
notice or demanc�c�n Trustor. .
b. Reserved.
23, Trustor's R�gh� to Reinstate. If Trustor meets certain canditions, Trustor shall
have the right to have enfc�rcement of this Deed of Trust discontinued at �ny time prior to the
earlier of: (a) 5 days(ar such other period as applicable law may specify for reinstatement) before
sale af the Property pursuant to any powei af sale contained in this Deed of Trust� or(b) entry of
a judgment enforcing this Deed of firust. Those conditions are that Trustor: (a) pays Beneficiary
all sums which then wouid be due under this Deed of Trust and the Note as if no acceleration had
occurred;{b)cures any default of any other covenants or agreernents;(c)pays all expenses incurred
in e��forein� this Deed of Trust, �ncluc�in�, but not lin�ited ta, reasonable attorn�ys` fees; and (dj
takes such actian as Beneficiary may reasonably require to assure that the lien of this Deed of
Trust, Beneficiary's rights in the IZeal Property and Trustor`s obligation to pay the sums secured
by this I7eed c�f Trust shall c�ntinue unchanged, Upon reinstatement by Trustor;#his Deed of Trust
PLHA Form of Decd of Trust-GNRM ADU � Of 1�
and the obligations secured hereby shall remain fully effective as if no acceleration had occurred.
However, this right to reinstate shall not apply in the case of acceleration under Sectian 22.
24. Sale af Note; Change nf Loan�ervicer. The Note �r a partial interest in the Note
(tagether with this I�eed of Trust) may be sold one or more times without prior notice to Trustor.
A sale may result in a change in the entity (knawn as th� "Loan 5ervicer") that collects monthly
payrnents due under the Nate and this Deed of Trust, Th�r� alsc�rnay be one or more changes of
the Loarrz Servicer unrelated to a sale of the Note. If there is a change of the Loan`Servicer,Trustor
will be given written natice of the ch�ange in accordance with Section 19 above and applicable
law. The notice will state the name and address ofthe new Loan Servicer and the address to which
payrnents should be made. The notice will also contazn any other information required by
applicabl�law,
2S. l�io Assignment. The ATote and this Deed of Trust shall not be assigned by Trustor
witholit the Beneficiary's prior written consent.
26: azardons Substances: Trustor shal] not cause or pertnit the presence, use,
disposal,storage, or release of any Hazardous Substances an or in the Real Property, Trustor sha11
not do,nor allow anyane else to do, anything affecting the Real Praperty that is in violation of any
Environmental Law, The preceding two sentences shall not apply to the presence, use, or storage
on ihe P'roperty of small quantities of Hazardc�us Substances that are generaliy recognized to be
apprt�priate to nc�rma�residential uses, construction, and to maintenance of the Real Property.
a. Trustor shall promptly give Beneficiary writter�notice of any investigation, claim,
demand, lawsuit or other action by any gavernrnental or regulatoxy agency or private party
involving the Property and any Hazardous Substance or Environmental Law of which Trustor has
actual knowledge. If Trustor learns, ar is notified in writing by any governm�ntal or regulatory
authority, that any removal or other remediation of any Hazardaus Substance affecting the Real
Praperty is necessary, Trustor shall promptly tal{e ali necessary remedlal actions in aceordance
with Environrnental Law.
b. As user�in this Section 26; "Hazardous Substances'° are those substances definec3 as toxic
or hazardous substances by Environmental Law and the following substances: gasc�line;keros�ne,
other flammable or toxic petraleum praducts; toxic pesticides and herbicides, volatile solvents,
materials containing asbestt�s or formaldehyde; and radioactive materials, excSuding household
products in normal t�uantities. As used in this Section 26; '°Environmental Law°" means federal
laws and laws af the jurisdiction where the Property is Iocated that relate to health, safety or
environmental protectic�n.
27. Accel�ration; Remedies. Beneficiary shall give notice to Trustor prit�r to
acceleration follawing Trustor's breach t�f any covenant c�r agreement in this Deed of Trust. The
nfltice shall specify: {a) the default; (b)the action requir�d to cure the default; (c) a dat�, which
shall not be more than ten (10) calendar days from the date of the rnailing of the iiatice for a
monetary default,c�r a date;which shall not be more than sixty(60)calendar days from the mailing
of the notice for a non-monetary default, by which the default must be cured� and (d) that failure
to cure the default on t�r before the date specifi�d in fhe nt�ti�e may r�sult in acceleratic�n of the
sums secured by thi� Deed of Trust and sale of the Praperty. Th� notice shall further infc�rm
PLHA Form of Deed af Trust-GNRM ADU 1� Of 1�;
Trustor af the right to reinstate after acceleratron and the right to bring a court actian tc� assert the
non-existence of a�efault or any other defense of Trustor to acceleration and 5ale. If the default is
not cured by the Trustor on or before the date specified in the natice, and the Senior Lien Holder
has not cured the default within that same peri�d, subject to any non-recourse prc�visians then in
eff�ct, Benefic�ary at its option may require immediate payment in full of all sums secured l�y this
Deed of Trust without further demand and may invoke t�ie power af sale and any other remedies
perrnitted by applicable law. Bene.ficiary shall be entitled to collect a11 expenses incurred in
pursuing the remedies provided in this Se�ti�n 2'7, including, but not limited to, reasonable
attorneys' fees and costs of title evidenc�.
a. If�eneficiary invokes the power of sale, Beneficiary or Trustee shall mail eopies af a
not�ce of sale in the manner prescribed by applicable 1aw to Trustor, the investor limited partner;
the Senior Lien Holder and t� the other persons prescribed by applicable law, Trustee shall give
notice of sale by publrc advertisement for the time and in the rnanner prescribed by applicable law.
Trustee, without demand an Trusfior, sha11 sell the Properky at public auction to the highest bidder
�or cash at the time and place and under the terms designated in the notice of sale in one or more
parcels and in any order Trustee determines. Trustee may postpone sale�f all c�r any parcel of the
Property to any later time on the sax�ne date by public announcement at the time and place of any
pre�iously sch�duled sale; Beneficiary or its designee may purchase the Property at any sale.
b. Trustee sha11 deliver to the purchaser Trustee°s d�ed canveying the Praperty without any
covenant or warranty,expressed c�r implied. The recitals in the Trustee°s deed shall be prim�facie
evidence of the truth of the statements made therein. Trustee shall apply the prQceeds af the sale
in the follcrwing order; (a) to �11 exp�nses af the sale, including, but not limited to, reasonable
Trustee's and attorneys' fees; (b) to all surns secured �y this Deed of Trust; and {c) any excess to
the persc�n ar persons legally entitled to it:
2$. Release. Upon payment af all sums secured by this Deed of Trust, Beneficiary
shall rel�ase this De�d of T'rust witho�t charg�to Tr�star, TrustQr shall pay any recc�rdation costs.
The lien c,f the Covenant Agreement shall not be r�leased or reconveyed until the expiration of the
term set forth therein n:otwithstanding the payment of all sums secured by this De�d of Trust.
29. Substitute Trustee. Beneficiary, at its option, may from tirne to time remove
Trustee and appc�int a suecessor trustee tc� any Trustee app�inted hereunder by an instrument
recorded in the county in which this Deed of Trust is recorded. Without canveyance of the
Property; the sLiccessor trustee sha11 sueceed to all the titie, pawer and duties conferred upon
Trustee herein and by applicable law.
30, l�iodificatian of S�nior Laan Ikocuments. Any agreement or arrangern�nt, in
which a Senior Lender waives, postpones, extends, reduces, or tn�difies any provision� of the
Senior Lien Holcler Deed �f Trust or any other Senior Lenders loan documents, including any
provisions requiring the payment of money, shali require the prior written appioval af Beneficiary.
31. 12emoval,Demolition or Alteratian of Personal Prop�rty and Fixtures. Except
to the extent perrnitted by the follo�ving sentence, nc� personal property �r fixtures shall be
remc�ved, demolished car materially altered withaut the prior written consent af the Beneficiary.
Trustor may remave and dispose of;free from the lien�fthis Deed Qf Trust, such personal property
FLHA Form of Deed of Trust-GNRM ADU 1 1 Of 1�
and fixtures as fiQm time to tim�become worn aut or absolete,provzding that, (a)the same is done
in the ordinary course c�f busine5s, and (2) either (i) at the time of, c�r prior to, such removal, arzy
such persanal property or fixtures are replaced with c�ther personal praperty c�r �"ixtures which are
free from liens other than encumbrances perrnitted hereunder•and which haVe a value at least equal
to that af the replaced personal property and fixtures (and by such remaval replacement Trustor
shall be deemed to have subjected such replacernent personal property and fixtures to the lien of
this Deed of TruSt), or (iij such p�rsonal property and fixtures rnay not require replacement if
functic�nally, econornically or operationally obsc�lete and so long as the fair market value of and
operationai efficiency of'the P�o�ect is nc�t reduced or advers�ly effected thereby.
32. �everability. Each paragraph and provision of this Deed ofTrust is severable fr�m
each ather provision, and if any provision or part therec�f is declared invalid by a competent court
of law,the remaining provisions shall nevertheless remain in full force and effect.
[Re aind�r of Page Blank]
[Srgnatures on Fo�lowing Page]
FLHA Form of Deed of Teust-GNRM AI?U 12 flf��
BY SI�NING BELQ�,T USTOR aecepts and ag�ees to the te�-ans and covenants�ontained
in t�is eed af"Trust.
TRUSTC�R:
The Gaad News Rescue Missian,
a California n�n-profit carporation
By: Jonathan Andersan
Its: E�ecutive L)irector
Date:
(TRUSTOR s�gnature needs to be notarized)
PLHA Form of Deed af Trust-GNRM ADU
A notary public ar other vfficer completing this certificate verifies only the
identity of the individual who si�ned the document ta which this certificate is
attached, and not the truthfulness,aceuracy,or validity of that document.
STATE OF CALIFORNIA )
) §
County of )
4n , before rne, a
Natary Public,personally appeared who proved to rne on
the basis crf satisfactory evid�nce to be the pers�n(s)whose name(s)is/are subscribed to the within
instrument and acknowledged to me that helshe/they executed the same in his/her/their autharized
capacity(ies}, and that by his/heritheir signature(s) on the instrument the person(s), or the entity
upon behalf of which the persr�n(s) acted; executed the instrument.
I certif� under PENALTY t�F PERJURY under the Iaws t�f the State of Callfomia that the
foregoing paragraph is true and correct
WITNESS my hand and afficial seal:
Signature of Notazy (Affix seal here)
PLHA Form of Deed of Trust-GNRM ADU
iG 7'
LEGAL DESCRIP"TION OF PROPERTY
Real property in the City of Redding, Caunty of Shasta, State of California, described as follows:
THAT REAL PRC)PER.TY 1N SECTIONS 14 AND 15 OF THE P. B. READING GRANT, IN
THE CITY QF REDDING, SHASTA CQUNTY, CALIF(JRNIA, DESCRI�,ED AS
FCILLOWS:
31Q0 South Market Street and 1411 Grange Street{APN: 104-62D-056-000)
PARCEL 1:
BEGINNING AT THE INTERSECTION UF THE SOUTHERLY LINE QF WILLARI�
STREET AND THE�IESTERLY ILINE C7F STATE II�GHW A�US 99, FRt3M WHENCE A
�.�9 h �9�7� '�`rOl1V4,�hI,.�1L 1Y1llJ.V.l..11V11i1V 1 1V1t1L\A111�VL,..1 �9.1,G 1V\./$\.$1dLi1'1�71 4_i6.f1�.1V1i:Cl.lll' Lll.l. `t��4./1�
THE LASSEN VI�W SU�I�IVISION AS PER PLAT ON FII,E IN THE COUNTY
L\1.�C\.1���.1 i7 LfA'�1'li✓L'iy l?:Alti��l�l'1 O:r�VV1V 1 1...� 13Lsti1\� IJ. 90 �L��SJI\.I_iL'.��� G`t�9�Li.9 L.lB�.VV ��E�.1
..Yll1VL�1V.. o �L'�...9.i1.L.L'�9 JJhVL'.s L"..y.e`i 1J1J�.lAlVi�L' lJ.l" 1�717.J�`-t F'EEA i T.C1:L'iVi.L'�.1"rill1YA .7filiJ�
POINT QF BEGINNING, S. 2 DEGREES 43'30"E., 115 FEET TO A POINT ON THE
NC7RTH LINE OF THE PROPERTY CONVEYED TO BURTQN D.BAKER ET UX BY
DEED I)ATED MAY 6, 195$, ItECQRDED MAY 12, 1958 II�T BtJOK 56S t}FFICIAL
REC4RD�, AT PAGE 489, SHASTA COLTNTY RECOR.DS, THENCE N. 88 DEGREES 241
W., 94 FEET;THENCE NORTHEASTER.LY 11 S FEET Mt�RE GR LESS TO A PQINT ON
THE S�JUTH LINE �� SArD �UILLARD STREET WIDCH BEARS N. 8� DEGREES 24' W.,
90 FEET FROM THE TRUE POlNT�F BEGI�TNING, THENCE S. 88 DEGREES 24' E„ 9Q
FEET TC� THE TRUE POINT OF BEGINNING.
PARCEL 2:
BEGINNING AT A 11l2"IRt�N FIPE MONUMENT SET IN THE WESTERLY I�I�HT OF
WAY LINE OF MARKE'T STREET, CITY OF REUDING,CC�UNTY OF SHASTA, FROM
V�.C1I.'.1V1.�� d"�.�7�h �9� 1.��1�1::.�TG 1V1LJ1V lJd��1V 1 1V1AL\11A1V1J LL1�.C, 1Vi:f1\1d1�Ak7:1 6.+�I\LV�.Ct..
OF LC�T 4 C7F THE LASSEN VIEW SUBI7IVISION AS PER PLAT (�N FILE IN THE
COUNTY RECORDERI S OFFICE, SHASTA C4LJNTY, BEARS Nt)RTH O DEGREES
55'02"'EA�T A DISTANCE QF 1979.54 FEET; THENCE RLTNNING N+ORTH 88 DEGREES
24' WEST A DISTANCE OF 2�O.t�O FEET TO A 1 1/�"IRQN PTPE MQNUMENT MARKED
RE 4603,THEI`�iCE SOUTH 2 DEGREES 4313011 EAST A I)ISTANCE CJF 125.fl0 FEET TO
A 1 ll2"IRON PIPE M{�NUMENI' MARKED RE 4b03; THENCE SOUTH 88 DEGREES 24'
LL'1�A lU�V.VV�i'.��Ay. A��1���1VUl\li3� 1JEV,iOL'.L�? `FJ9 .3U�� VY;L'�Sl ltt.. L.1V L�.3=rL'�iy. 1L1L'lYL�.�l�
SOUTH 88 DEGREES 24' EAST 114.Q0 FEET; THENCENt?RTH 2 DEtsREES 43'30" WEST
A DISTANCE OF 115,00 �EET TQ THE POlNT OF BEGINNING. EXCEPTINU
THEREFROM THE EASTERLY 20 FEET. ALSO EXCEPTING THERE FROM THE
PARCEL OF LANI? DESCRIBED IN THE DEED FROM R.A. Ct7CKERILL ANI�
DOROTHY CC7CKERILL, WIFE TO DELL MIKE STEPP AND GEORGIA STEPPs I�W
WIFE, RECORDED JANUARY 9; 1964 IN�OOK:771 OF t��FICIAL RECaRDS AT PAGE
300, SHASTA COUNTY REC�}RT�S.
PLHt1 Form of I7eed of Trust-GN32M ADU
PARCEL 2A: COMMEN�TNG AT THE 11/2"IRQN PIPE MARKING THE SOUTHWEST
CORNER dF BLOCK 1S; AS SHQWN ON THE MAP C1F PARK SUBDIVISI4N,
REC�RDED IN THE (�FFICE OF THE COLINTY RECQRI)ER MAY 25, 1936 IN BOOK S
QF MAPS AT PAGE 12; SHASTA CC�LJNTY RECORDS; THENCE S4UTH 1 DEGREES 36'
WEST SQ.00 FEET TO THE P4INT (JF BEGINNING OF THIS PARCEL; THENCE SC,IUTH
l DEGF�EES 3b' WEST 12�.98 FEET; THENCE SOUTH 88 DEGR.EES 24° EAST 25,00 FEET;
MORE OR LESS, T(J TH]E WEST LINE OF THE SECt�ND PARCEL DESCRTSELt IN THE
Dj.iLt� 1 V �. �... 0:4J0..i�1�.��.1�5._r9 ��✓V�.�.f�� 1�.� �rl� V���4.i� V�1' ��L'r�1✓0���
R.ECQRDER MAY 14, 1937 IN B+dOK 126 +OF OFFICIAL REC(?RDS AT PAGE 31,
SHASTA COUNTY RECC?RDS; THEhTCE NORTH 2 DEGREES 43'3011 WEST 125.00 FEET
T{� THE S{7UTHERL� LINE C}F WILLARD STREET AS SH(?WN (�N SAID MAP;
THENGE ALONG SAIL? SOUTHERLY LINE N4RTH $8 DEGREES 24` UJEST TO THE
POINT �F BEGINNING.
PLHA Form of Dead of Trust-GNRM AI7U
Exhibit F
PL A l�T T�
[attached]
PRO ISS�RY N(}TE S�CU D SY I?EEI� �F Tl�UST
PLHA LQAN FTINDS
$250,000.00 (66Laan �maunt'') May,�2025 ("NQte Il�ate")
�OR VALUE CEIVED, THE GOC1I� NEWS SCUE NTISSIfJ►N
("B4RROWER")? a California non-profit corporation prannises to pay the CITY t�F
DDING; a rnunicipal corporatic�n and general law czty {"CITY"), whase addresses i� P.t�.
Bax 496471, '777 Cypress Avenue, Redding, CA 96049-60�1, or order, the sum of Two
Hunc�red Fifty Thousand and 001100 ]Dollars {�25p,000.OQ USD) (the ``PLHA Loan" or"Note
Amount") which at the time c�f payment i� due in funds lawful for the payment of public and
private debts.
This I'romissory Note Secured by Deed of Trust — PLHA Lr�an Fund� {this "Note") is
given in accardance with that certain Loan Agreement for the Use of PLHA Program Funds
executed by CITY and B�RRt�WER, dated as of May , 2C325 and recorded in tl�e Clfficial
Records of the County of Shasta (`<Official Itecords") on or about the date hereof (the "PLHA
Loan Agreement"}. Except to the extent otherwise expressly defined in this Note, all capitalized
terms sh�ll have the meanings ascxibed to such terrns �n the PLHA Loan Agreement. The Note is
secured by a Deed of Trust, Security Agreement and Fixture Filing w�th Assignment of Rents
executed by SORROWER for the bene�'it of the CITY dated lY1ay , 2025 and recorded c►n or
about the date hereof in the Official Records {the "FLHA I}eed of Trust" or "Deed of Trust").
This Note, the PLHA Loan Agreetnent, the Deed of Trust, the Covenant {as hereinafter defaned)
and all agreements entered into in connecti�n with the foregaing, and any amendments or
m�difications thereta,shall cc�ilectively be referred to herein as the"PLHA Loan I)c�cuments."
The rights and obligations of the B4I�R{�WEFL and +�I'TY under this No�e shall be governed by
the PLHA Loan Documents and the following terms;
1. The PLHA Loan evidenced by this Note and secured by the Deed c�f Trust are being
made pursuant to tihe Perrnanent Local Housing Allocatic�n ("PLHA") Frogram 5tatutes,
Final Guidelines, Notice af Fund�ng Availability, a Standard Agreernent ancl applicable
rules and regulativns imposed by the Department of Housing and Community
Development {"HCD") on PLHA funding recipients(collectively;the "PLHA Program"),
Bt7RROWER agrees for itseif, its successors and assigns; that the use of the Property
shall be subject to the restr�ctions an rent and accupancy set forth in the PLHA Pro�ram
reguiations, the PLHA Lc�an Docurnents and that certain Covenant Agreement dated on
or ab�ut the date hereof and recarded on or about the date hereQf in the Official Records
between Bt�RRQWER and CITY ("C�venant").
2. That#he PLHA Loan will accrue simple interest at a rate of zero percent(t?%) per annum,
except in the case of default, as hereinafker provided, and shall l�e repaid on an annual
basis from the Project's Residual Receipts as defined herein. Interest will accrue from
the date of recordation of the Nt�tice of Completion ir�the Qfficial Records.
PLI-IA Eorni of Pramissory Note-GNRM t1D'U �
3. This Note shall be repaid according ta the following: fifty percent (50%0) of the Pro�ect's
Residual Receipts shall be paid to CITY annually in accordance with the terms set farth
herein: 'Such payment of fifty percent (50%) of the I'roject's Residual Receipts to CITY
sha11 continue until the PLHA Nate is repaid in full.
4. The Project's Rusidual Aec�ipts sha11 be determined based on an annual review of
audited financial statements far the Project. Annual audited financial statements shail be
submitted by BtJRRQ�JER withrn ane hundred twenty (120) days following the close of
the pro�ect fiscal year ct�mmencrng on Apri1 1 af the first full calendar year following the
recordatian of the Not�ce of Completion far the Project. The term of this Note ("Term")
shall commence with fihe date of this Note and sha11 expire fifty five {55) years from said
date, at which time the remaining balance of principal and interest shall be due and
payable.{the "Maturity II�afe"). The first payment shall be due on Suly 1St in the first full
calendar yeaz fc,llowing the date of the recordation of the Notice c�f Completion for the
F'roj�et, to the extent af available Residual Receipts, a� set forth herein. Subsequent
paymen.ts shall be made on July l�t thereafter to the extenfi of available Residual Receipts
until the sooner of full repayment of`the PLHA Loan or the Maturity Date as set forth
above,
5. The 1'raject"s Residual Receipts shail be determined based c�n an annual review of audited
financial statements for the Pro�ect. Annual audited financial staternernts shall be
submitted by BORROWER tc� CITY within one hundr�d twenty (120) days following the
clase �f the projec.t fiscal year commencing an April lst of the first fu11 calendar year
fallowing the reeordation of the Notice c�f Completion. The term "l�roject Residual
Receipts" as used herein shall mean the grass rental income from all residential and non-
residential compt�nents of the Project, prc�ceads fram�oss ofxent insurance, and any other
income to the BORROWER derived from the ownership, operation and management of
the Project, not including interest on required reserve acct�unts, less the following:
i} Operating Expenses means all reasonable and proper expenses, as
apprc�ved by the City, of the operatic�n of the Project including, but not
limited to, loan payments payable before the calculation of allc�wable
Distributions as approved by the City, the annual servicing fee, if
applicable, °rnsurance, real estate taxes, ordinary maintenance and repair,
costs c�f marketing> pro�ecf m�nnagement, supportive services; fuel,
utilities, garbage dispasal, sewer charges; audit expenses, the required
impounds, reserve and es�row depQsits, reasonable attt�rney fees incurred
in operating the Praject, and such other payments as the City may requzre
or specifically apprave in writing as Uperating Expenses. In no event shall
attorney fees or litigat�on ct�sts othex than as stated, or expenditures
normally required to be paid out of the replacement reserve, be treated as
t�perating Expenses unless spe�ifically approved in writing by the City.
ii) Non-Standard Operating Expenses means expenses as approved xn writing
by the City payable after a11 t7perating Expenses and before Distributions.
Non-Standard �perating Expenses shall be paid in the follawing pric�rity
and may include (if applicable) the following. (ij cash flow operating
PLHA Farm of Promissory Note-GNRM ADU 2 O�7
reserves; (ii) non-City required Qperating reserves fi�nded from Proj�ct
cash flow; (iii} deferred Owner/Operatar fee (only if the Project was
funded with the proceeds from the saie of tax credits and the Pro�ect has a
lirnited partner investar)payable as determined by OwnerlUperator, not to
exceed the total approved deferred Qwner/(�peratar fee, and (iv)
partnership asset management fees.
6. The PLHA Loan evidenced by this Note is secured by that certain PLHA Deed of Trust
executecl by BQRRtJWER for the benefit of CITY, dated on or about the date h�reof and
recorded in the Official Records,
7. This Note may be prepaid in whcrle or in part by th� undersigned at any time without
prepayment penalty �r premium, pravided however nc�twithstanding such prepayment,
�ORRO�ER shall be required to adhere to the affordability restrictians contained in the
Covenants until the expiration af the Term contained therein.
�, Subject to the prc�visions and lirnitations of this Paragraph 8, the Qbligat�on ta repay the
Note Amount is a nonrecourse obligatian of BORR�V�TER. Neither B4RR.aWER nor its
shareholders, members c�r partners shall have any personal liability for repayment of the
Note Amount, except as prc�vided in this Paragraph 8, The sole recourse of the CITY
shall be the exercise of its rig�ts against the Property (or any portion thereof} and any
related security for the PLHA Loan; provided, hawever, tihat the foregc�ing shall not (i)
cc�nstitute a waiver af any �ther abligation evidenced by this Note or the I�eed of Trust;
(ii) limit the right af the CITY to narne B�RROWEIZ as a party defendant in any actian
or suit ft�r judieial foreclosure and sale under this Note and the Deed of Trust or any
action or proceeding hereunder sa lang as no judbinent in th� nature of a deficiency
judgment shall be asked for or talfen against B(�RR(�WER; (iii} release or impair either
this Note or the Deed of Trust; {iv} prevent or in any way hinder the CITY from
exercising, or constitute a defense, an affirmati�e defense, a counterclaim Qr other basis
for relief in respect af the exerclse af; any other remec�y against the mortgaged l�xoperty
or any other instrument securing this Nate c�r as prescribed by law or in equity in case of
default� (v) prevent c�r in any way hinder the CITY frorn exercising; ar cc�nstitute a
defense, an affirmative defense, a ctrunterclaim or other basis for relief in r�spect of the
exercise of, its remedies in respect of any depc�sits, insurance proceeds, condemnatiQn
awards or other monies �r c�ther collateral or letters of cre�it securing this Note; �ar (vi)
affect in any way the validity of any guarantee or indemnity frc�m any person of all or any
of the obligations evidenced and secured by this Note and the I�eed of Trust,
Nc�twithstanding the first sentence af this Section 8; the CrTY�nay recovex directly frogn
Bt7RRC)WER or, unless oth�rwise prohibited by any applicable law, fram any other
party: (a) any damages, costs and �xpenses incurred by th.e CITY as a result of fraud,
rnisrepresentation or any criminal act or acts Qf L�t?RROWER ar any general partner,
member, shareholder, officer, director or employee of BORROWER, ar of any general
partner of such member c�r general partner; (b} any damages, costs and expenses incurred
by the CITY as a result of any misappropriation of funds prouided to pay costs as
described �n the PLHA Loan Agreement, rents and revenues from the t�p�ration of the
Project; or proceeds of insuz:ance policies or candemnation p�oceeds; (c) anY
misapprapriation of rental proceeds resultang in the failure to pay taxes, assessments, or
PLHA Form of Promissory Nate-GNRM ADU � Of 7
other charges that could create statutory liens on the PrQject and that are payable or
a�plicable prior to any fareclasure under the Deed r�f Trust; (d) the fair market value of
any persor�al properky or fixtures removed c�r dxsposed of by the BC}RRflWER other than
in accordance with the I?eed of Trust, (e) any and all amaunts owing by BORROWER
pursuant to any indemnity set forth in the PLHA Loan Agreernent and/or Deed af Trust
Qr the indernnification regardin:g Hazardc�us Substances pursuant ta the PLHA Loan
Agre�ment and/or Deed of Trust, and (#� all court costs and attorneys' fees reasc�nably �
incurred in enforcing;or collecting upon any of the faxegaing exceptions.
9. The occunence of any af the follawing events shall constitute an "'Event of Default"
under this Note after n�atice and opportunity to cure pursuant tc� the terms set farth in the
PLHA Loan Agreem�nt:
a. Monetarv Default. {1) BORROWER's failure to pay when due
any sums payable under this Note or any advances made by CITY'under the PLHA Loan
Agreement, (2)BORROWER'S or any agent of B�RROWER'S use of PLHA fund5 f�r
costs �ther than ti�ose costs perrnitted undex the PLHA Loan Agreement c�r for uses
inconsistent with terms and restrictlons set farth therein, (3) BORROWER'S or �ny
agent �f B4RROWER'S failure to make any ather payment of any assesstnent or tax
due under the PLHA Loan Agreement;and Ic�r (4) default past any applieable notice and
cure period under the terms of (i) any Deed c�f Trust executed by $C}RR()WER in
connection with any Seni�ar I?ebt, and (ii) any ather instrument or document secured
against the Propert�;
b. Non-Monetary Default - Operatic�n, {1} Discrirnination by
BQRI�OWER or BORRUWER'S agent on the basis of characteristics prohibited by the
PLHA Loan IaQcuments or applicable law, (2} the imposition af any encumbrances or
liens on the Project without CITY's prior written appraval that are pr�hibited under this
agreement tir that have the effect of reducing the priority ar invalidating the lien of#he
PLHA Deed �f Trust, (3) B�?RRC��ER's failur� t� obtain and maintain th� irisur�nGe
coverage required under fhe PLHA Loan Agreement, (4} any material default undei the
PLHA Laan Documents; or any d�rcument executed by the CITY in connection with the
PLHA Program, and/or (5) default past any applicable notice and cure period under the
terms of any I)eed af Trust executed by BORROWER in connectian with an� Senior
Debt and any other instrument ar dacument secured against the Property,
c. General Ferformance of Loan t�bli at�; ic�ns. Any substantial or
continuous or repeated breach by Bt�'R.ROWER or BORR(7WER'S agenfs of any
material obligations on B{}RRQWER impos�d by the PLI-][A Loan Dt�cuments; and
d. General Performance of Other Obligations. Any substantial or
continuous or repeated breach by BC}RRt�WER ar BQRRO�VER'S agents of any
material c�bli�ations imposed on the Prt�ject by any other agreement with respect to the
financing, deveiopment, c�r operation of the PrQject; whether or not CITY is a party to
such agreement,
PLHA Form of Promissory Note-GNRM ADU 4 Qf 7
10, CITY shall give wri�ten notice of default to BORR�WER, specifying the default
complained of by the CITY. BORROWER sha11 have ten (10j calendar days from tlle
mailing af the notice for a monetary default, by which such action to cure must be taken.
Delay in giving such natice sl�all not constitute a waiver of any default nor shall it change
the time of default.
1l, Any failures ar delays by CITY in asserting any of �ts rights and remedies as to any
default shall nc�t operate as a waiver of any default or of any such rights or remedies.
Deiays by CI'I'Y in asserting any of its rights and remedie� shall not deprive CITY of its
right to institute and imaintain any actions or pr�ceedings which it may deem n�cessary to
prc�tect, assert, �r enf�rce any s�xch rights or remedies.
12. If th� rights created by this Note shall be �i�ld by a cc�urt of cc�mpetent�urisdiction to be
invalid c�r unenforcea�le as to any part t�f the obligations described herein, the remaining
obligations shall be completely performed and paid. In the event that any provis�on or
clause of this Note �onflicts with applicable law, such conflict will nat affect other
provisians of this Nc�te which can be given effect without the conflicting provision, and
to this end the provisions of this Note are declared to be severable.
13. BORROWER hereby waives diligence, presentment, protest and demand, notice of
protest, dishonor and nonpayment of this Note, and expressiy agrees tl�at, withaut in any
way affecting the liability of BQRROWER hereunder, the CIT�' may extend any
maturity date or th�time far payment of any installment due hereunder, accept additional
security, release any party liable hereunder and release any security now car hereafter
securing this Note. BC)RRQWER further waives, to the full extent perrnitted by law; the
right tc� plead any and all statutes of limrtations as a defense to any demand an this Note,
Qr an any deed �f trust, security agreement, guaranty t�r other agreement now or hereafter
securing this Note.
14. Shauld default be made in payment of principal and interest when due and such defauit
shali cantinue l�eyond the applicable natice and cure period provided in the l'LHA Loan
Agreement, the whole sum of principal and int�rest shall become irnmediately due at the
option of the holder af this Nate. Principal and interest are payable in lawfu� money �f
the United States. If action be instituted c�n this Nc�te, the undersigned promises to pay
such sums as the Cc�urt may fix as attorney's fees.
1S.This Not� has been n�gotiated and entered in the State t�f Cal�fornia, and sh�ll be
governed by, cc�nstrued and enforced in accordance with the internal laws of the State of
Califc�rnia, applied tQ contracts rnade in California by California domiciliary t� be wholly
performed in California: Any action at law or in equity arising under this Nate or
braught by a party hereto for the purpose of enforcing, eonstruing or determining the
validity of any pravisian c�f this Note shall be filecl in the 5uperiar Caurts of Shasta
County, State of Califoxnia, and the parties hereto waive all provisions �rf law praviding
for the filing; rernoval or change of venue to any other c�urt or jurisdiction.
PLHA Form of Promissory Note-GNRM ADU � {?f 7
16:Nc� modification, rescissian, waiver, release or am�ndment of any provision of this Note
shall be ina�e except by a written agreement executed by BORRO�VER and the duly
authorized representative ofthe CITY,
1'7, The CITY may, in its sole and absolut� discretion, assign its rights under this Note and its
right ta receive repayment of the Note Amount without obtaining the consent of
BORR4WER.
18. In no event shall B(7RROWER assign or transfer any portion of this Nc�te or any rights
hexein withc�ut the prior expre�s written consent of the CITY, which consent the CITY
may give or withht�ld in its sole and absolute discretion. In the absence of specific
written agreement by the CITY, nca unauthori�ed assignment or transfer, or approval
thereof by the CITY, shall be deerned to relieve BORRQWER or any other party from
any obligations under the PLHA Lc�an Agreement or this NQte. This provision shall nr�t
affect ar diminish th� CITY's assignment rights under this Note.
19. Exce�t as to the permitted deeds of trust id�ntified herein, BORRt�WER shall not
encumber the ]Property f�r the purpose of securing financing either senior or junic�r in
priority or subordinated tt� the Deed of Trust without the prit�r written approval of the
CITY in its sole and absalute discretion.
20: The relatic�nship of SORROWER and the CITY pursuant to this Note is that of debtar
and creditor and shall not be, or be construed to be, a joint venture, equity venture,
partnership or other relationship.
21, (a) Formal notiees, d�mands and communications between the CITY and
BORROWER sha11 be deemed sufficiently given if made in writing and dispatched by
any of the follo�ving methc�ds to the address�s of the CITY and BORROWER as set fQrth
below: (i) registered or certified mail,postage prepaid, return receipt requested {in which
event, the notice shall be deemed delivered c�n the date of receipt thereof); (ii} electronic
facsimile transmission, followecl on the sarne day by delivery of a "hard'° copy via first-
class mail, postage prepaid (in which event, the notice shall be deemed delivered on the
date of its suceessful facsimile transrnissiQn as evidenced by � f�csimile confirmation or
"kick-out" sheet}; or (iii) personal delivery, including by means �f professional
messenger service, cc�urier service such as United 1'arcel Service or Federal Express, c�r
by U.S. Postal Service (in which event, the nc�tice shali be deemed delivered on the
documented date of receipt). Such written notices, demands �nd communications may be
se�t in the same manner to such other addresses as either party may from time to time
designate by tnail.
(b) The address of the CIT� for purposes of receiving notices pursuant to this Note
shall be P.O. Box 496071, 777 �ypress Avenue, Redding; CA 96049-b071, Attention:
Housing Manager. The facsimile number for the CIT�'s receipt of notices is (530} 225=
4126.
{c) Th� address of BURR{�WER for purpc�ses of receiving notices pursuant to this
Nc�te is 28�2 Market Street, Redding, CA 960'O1, Attention: Jonathan Anderson.
PLHA Form of Promissorp Note-('.rNRM ADU � t�f�
22. The captions and headings in this Nate are for convenience only and are not to be used to
interpret or define the provisions herec�f.
23. The undersigned, if camprising more than one person ar entity, shall be jointly and
sev�rally liable hereunder:
24. This Note shall be binding upon B{�RROWER and its heirs, successors and assigns; and
shall benefit the CITY and its successors and assigns.
[REMAINDER OF PAGE INTENTIQNALLY BLANK]
[SIGNATURES QN FC)LLOWING FAGE]
PLHA Form of Promissory Note-GNRM ADU � Of�
IN WITNESS WHEREQF, BORROWER ha� executed this Note as of the day and year first set
forth aboue,
BORROjNER;
The Gc�od News Rescue mission
a Califi�rnia Non-profit corporation
By:
Name: Jonathan Anderson
Its; Executive Director
Date:
PLHA Eorm of Proinissory Note-GNRM ADU
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Form PLHA Loan Agreement
EX�11�111�
(� �ENL�NT A�r �� E��
���t�:Cn�a�
Form PLHA GovenantAgreement
1 RECORDING REQUESTED BY:
City af Redding
2
CITY�USINESS -Nt�FEE
� Section 6103 of the Crovernment Code
of the State crf California:
4
AND WHEN R.ECORDED MAIL TQ:
5 City of Redding—Housing Division
� P.Q. �ox 496Q71
777 Cypress Aver�ue
7 Reddin;,CA 9604}-6Q71
g SPACE ABOVE THIS LINEFOR RECC)RDERS USE
9
FL A PRQG M
10
CQVENANT A+GREEMENT
11 (3100 S Market Street)
l� This PLHA Pragram Cavenant Agreement (3100 S Market Street) (this "Covenant" or
13 ``Agreement") is made and entered into as of the day af M�y , 2025 by and between the
14 ��TY ((�►F DDING, a municipal carporation and general law city ("CITY"}, and THE
15 Gt�OD NEWS SCUE ISSI+QN, a California non-profit corporation("BURROWER"}.
1� CITALS
WHEREAS, B4IfRQWER owns that certain real property including any improvements
17
located thereon, located at 3140 S Market Street, Redding, CA 96Q01, Assessor's Parcel Number
18
1�4-620-056-00�, described in the Iegal description attached hereto as Exhibit A and
19 incorporated herein by this reference (the "Property");
�� WHEREAS, on May , 2025; CITY and Bt�RI2:OWER entered into that certain Loan
21 Abreement for the Use of PLHA Pragrarn Funds (310'0 S Market Street)dated May , 24�5, ;
22 and recorded in the afficial Records of the County of Shasta ("Official Records"} concurrently
�� her�with {the "FLHA Loan Agreement" or "Agreement") which provides fc�r, arnong other
things,new ccanstruction on the Property of 604 square foot rental unit and related amenities (the
24
"Unit"). The construction on the Property af the Un°rt and such other lmprovements as specified
25
26
Page 1 of 27
27
Form PLHA Gavenant Agreemen#
l in the PLHA Loan Agreement shall be referred to herein as the "Project." Capitalized terms not
� defined herein shall have the meaning ascribed ta them in the PLHA Laan Agreement;
3 WHEREAS, the State of California (the "State"}, Department c�f Housing and
q. Carnmunity Development ("HCD"} issued a Nofice of Funding Availability ("NtJFA"), d�ted
� F'ebruary 26, 2020,to provide approxirnately $195,Of��,000 under the Permanent Local Housing
� Allocation ("PLHA"} Program through its Entitlement and Non-entitlement Local Government
Fcrrmula Component fram the Building Hames and Jobs Trust Fund for assistance to Local
7
Gavernments pursuant ta Health and Safety Cade section 5�47Q et seq. and Senate Bill {SBj 2
$ (Chapter 364, Statutes of 2017);
� WHEREAS, to implement the PLHA Program, HCD adopted and issued the HCD 2019
1 Q PLHA Final Cxuidelines ("Guidelines" c�r"PLHA Guidelines");
11 WHEREAS, the PLHA Program (as hereinafter defined) pravides a permanent source of
l� funding to all local gavernments in the State of California to help implement plans to increase
13 the affardable housing stock;
WHEREAS, the CITY is an eligible local government far the pragrarn ta adzninister c�ne '
14 '
Qr more eligible activities, including on behalf of other local governments that have deiegated ta
15
the CITY submission of an application and administraticrn of their respective PLHA formula
16 allocatir�ns;
l� WHEREAS, HCD approved a funding allocation to t�e CITY for the PLHA Prograrn,
18 subject to the terrns and conditians of the PLHA Statutes, Guidelines, NOFA, a Standard
l g Agreement and applicable rules and regulations imposed b� HCD c�n FLHA funding recipients
20 (collectively, the "PLHA Pragram");
WHEREAS, pursuant to the PLHA Program,the CITY and HCD entered intc�that cert�in
21
Standard Agreement dated 7une 16, 2021, amended September 14, 2022, and June 13, 2023;
22
including Exhibits A, B, C, D and E (coliectively, the "PLHA Standard Agreements"), which
�� allacates PLHA funding to the CITY for use in the City liinits of Reddii�g where the Property is
24 l�cated;
25
26
Page 2 of 27
27
Form PLHA Ccavenant Agreement
1 WHEREAS, BORRQWER is an experienced developer of affordable housing that has
2 among its purpases the provision of decent housing that is affordable to l�wv income persons; and
3 WHEREAS, in cc�nsideration af a loan of PI,HA funds, BORROWER has agreed to
4 restrict the Unit to be rented and occupied by qualified very law-incorne households cons�stent
5 with the PLHA Program requirements and as set forth more specifically below.
� ' NQVV, THEREFORE, in consideration of the PLHA Loan funds and the mutual
c�venants and agreements set farth herein and in the �LHA Loan Agreernent, and for other good
7
and valuable consideratian, the receipt and sufficiency of which are hereby acknowledged,
8
BURRflWER, on behalf crf itself and its successors, assigns, and each successt�r in inter�st t� the
� Property or any pai-t thereof, hereby declares as follows:
lQ 1) RESTRICTIC7NS. The recitals set forkh abave are true and correct and
�1 incorporated herein. This Covenant shall cantinue in fu�l force and effect for the later of(i)
1� fifty-five (55) years frorn the recordation of the Notice of Completion for the last building far
l� which constructian is eampieted far the Project on the Propert�, or (ii) May , 2(780
("Term" or "Affordability Period"}. For the duration�f the Term, th:e Praperty shall be held,
14
sold and conveyed, subject to the following covenants, cond'ztions, and restrictions:
lS
a) BORRUWER hereby covenants and agrees to restrict the Unit ec�nstructed on the
l� Property to be r�nted and occupied by qualifi�d Very Law Income Hc�useholds
17 {eollectively; "Affordable Unit" or "Restricted LJnit") in accc�rdance herewith.
18 For purpases hereof:
1� (i) "Household'' is one or more persans occupying an Affordable Unite
�� (ii) "Very Low Incom�" has the meaning set forth in HSC Section SQ105,
which is a household whose incames does not ��ceed 50% of the area
21
median income, adjusted for aGtual family size.
22
(iii) "area median income"' shall refer to the mast recent area median family
2� inc�me published by HGD for Shasta County, available at the fallowing
�`� link� https://www.hcd.ca.;�bv/�rants-funding/incorne-lirnits/state-and-
25 federal-incame-lirnits.shtml.
26
Page 3 of 27
27
Form P�HA Govenant Agreement
1 b) The Affordable Unit shall be rented to and occupied by Very Low Income
� Households at an Affc�rdable Rent in compliance with the Multifamily HouSing
3 Program ("MHP") guidelines Section 7312 and the Section 7301 definition of
q. "Affordable Rent," Maximum income �nd Affardable Rent shall be determined
� in accordance with subsection d) bel�w, CITY shall review and approve pro�osea
� rents prior to entry into leas�s for c�ccupancy of the Affordable Units by
BORRC}WER. Bt�RROWER shall ensure the Affordable Units �re rented tc�
7
�ualified applicants at the described rent levels herein during the Affordability
8
Peri�d. The maximum monthly allc�wances for utiiities and services (excluding
� t�lep�ione) shall nQt exceed the utility allowance as de5cribed in c) b�low.
1� c) Utility Allowanca: Far Projects not receiving financing from tax credits;
�1 BORR�WER shall use the mc�st cnrrently available Util�ty A1lowances published
�� by the Housxng Authority of the City of`Redding to establish maximum monthly
�� allc�wances for utilities and services in calculating Affordable Rents.
Projects assisted with tax credits shall use the California Utility Allawance
14
Calculator{CLTAC)published annually by the Treasurer af the State of California. '
15
The CUAC and use �nstructions can be found at:
l� ht��s:/1 ,tr�as�r��° ��a�c�vl�t��c/��a��l�r�d��.ast�.
1� d) Incame and Affardable Rent limitations for Very Low Income Hc�useholds must
18 be calculated in accordance with the Multifarnily Housing PrQgram {MHP) as
�c� reqtzired 6y the PLHA Program. �C)R120WER shall utilize the most recently
2a available"MHP Inct�me and Rent Calculator"published by HCD; available c�n the
following web page� h�t:�s.I/ ,l�cd:��,�avl r����fundiv�a,�l°�n�s� ��li �t�lst����
21
a�d-��c�e��l-i�c�meslirn��s.shtrnl
22
e) PLHA Loan Document�. This Covenant Agreement; the PLHA Loan Agreement,
�� PLHA Note; PLHA Deed af Trust, the Environrnental Indemnity and any other
�`� agreement entered into by CITY and B�RROWER�n connection with the Project
25 shall collectively be referred ta herein as the "PLHA Loan Dacuments:'>
26
Page 4 af 27
27
Form PLWA Govenant Agreement
l BQRROWER shall comply with the terms and conditians af the PLHA Loan
� Documents; any ather agreement� ev�deneing fiilancing for the Project, and any
3 instrument secured against the Property. BORR.OWER shall strictly cornply with
4 all requirements of the PLHA Program.
5 2) SENIOR PRIORITY. Notwithstandzng anything to the cantrary ct�ntained in
� the PLHA Loan Agreement, including any of its attachments, if required by financing for the
Praject, this Cdvenant rnay be recorded in a second priority li�n position junior to the deed of'
7
trust securing any bank loan and senior to the PLHA Loan Agreement.
8 3) COMPLIAI�ICE WITH I.AWS AND REGULATIt7NS. During the Term of
� this Covenant, BCJRRQWER, for itself and on behalf of its successors and assigns, shall
1a insure that the Project is constructed in accardance with and aperated in compliance with the
11 PLHA Program and all applicable federal, state and lacal laws, regulations ant� ordinances,
1� ineluding, but not limited to the fallowing; ail la�vs, c�rdinances, statutes, cades, rules,
1� resolutions, regulations; pol�cy statements, orders, and decre�s (including, withc�ut lirnitation,
thase relating to land use, subdivisian, zaning, enviranmental; labor relatians, prevailing
14
wage, and building and fire eodes) of the United States, the State of Calzf�rnia, the County,
15
the City or any other palitical subdivision in which the Property is located or which exercises
�� jurisdiction over the BURROWER or the eonstr�ction, maint�nance, management, use, or
17 operation ofthe Praject.
18 4) TENANT PROTECTItJNS, �C)RROWER shall pravide protect�on to the
l� tenants of the Affordable Units as fc�ilc�ws:
20 a) Provide written lease agreement for nat less than an� year, unless
by mutual agreernent between the tenant and BC>RRC3WER, CITY sha11 review the
21
initial farrn af the lease agreement priar to BORROWER executing any leases and,
22
provided that BOI�.RC?WER uses the approved lease form, BORRtJWER shall be
2� permitted to enter imto residential leases withc�ut CITY's prior written consent.
24 b) Prc�hibited Lease Terms. The rental agre�ment/Iease may not
25 contain any af the following pravisions:
26
Page 5 of 27
27
Form PLHA C�venant Agreement
1 (1) Agreement to be sued. Agreement by the tenant to be sued, tc�
2 admit guilt or to a judgment in favor of BORROWER in a lawsuit
3 brc�ught in connectian with the lease:
4 (2) Treatment of pr°operty. Agreements by tenant that BURROWER '
5 may t�ke, hold, or sell personal prc�perty af household members
� without nt�tice to the tenant and a court decision an the rights of the
parties, This prahibition, however, does not apply to an agreement by
7
the tenant concerning dispositzon af p�rsonal properky remaining in
8
the housing unit after the tenant has m�ved out of the unit.
� �ORROWER may dispose of this personal property in accordance
10 with�tate law.
11 (3) Excusin�- BORRQWER from respansil�ility. Agreement by the
1� tenant not tt� hold BORRQWER c�r BORROWER's agents legally
1� responsible for any action or failure to �ct, whether intentional ar
negligent.
14
(A�) Wcriver of notice. Agreement of the tenant that BURRQWER may
15
institute a lawsuit without notice to the tenant.
�� (5) Waiver of le,gal procee�ling: Agreement by the tenant that the
17 BORROWER may evict the tenant or household members without
18 ' institut�ng a civil courti praceeding in r�vhich the tenant has the
19 opportunity to present a defense; ar before a court decisian on the
2� rights of the parties.
(6) T�aiver of a ju�°y tYzal. Agreement by the t�nant to waive any right
21
ta a t�ial by jury.
22
{7) Waiver o.f�ight to appeal cc�urt decision. Agreement by the tenant
�� to waive the tenant's right to appeal, or to otherwise challenge in
24' court, a court decisi�n in connection with the lease.
2S
26
Page 6 Qf 27
27
Form PLHA CovenantAgreement
1 (8) Tenant cha�geable with cost of legal actions �egardless af
2 o�teome. Agreement by the tenant to pay attorneys' fees or other
3 legal costs even if t�e tenant wins in a court proceeding by
4 BORRCl'WER against the tenant. The tenant, however, may be
� abligated to pay costs if the tenant 1Qses.
� c) Viol�nce A�ainst WQmen Reauthorizatir�n Act of 2013. (F'ub. L,
113-4, 127 Stat. 54) ('°VAWA 2013°'). VAWA 2013 reauthorizes and amends the
?
Violence Against Wamen Act c�f 1994, as previously amended, (title TV, sec. 40001-
� 4U?03 of Pub. L. 103-322, 42 U.S.C. 13925 et seq.) VAWA 2013, arnong other '
� things, bars eviction and t�rmination due tc� a tenant's status as a victirn of domestic
1 a vi�lence, dating violence, or stalking, and requires landlords to maintain sur�vivar-
1 l tenant ct7nfidentiality. VAWA 2013 prol�ibits a tenant who is a survivor of domestic
12 violence; dating vic�lence, sexual assault, and stalking frarn being denied assistance;
13 tenancy, or occupaney rights based solely on criminal activity related ta an act of
vialence committed against th�m. It extends housing protectians tc� survivor� of
14
sexual assault, and adds "intimate partner" to the list of eligible relationships in the
15
damestic Vit�ience definition. Pr�atectic�ns alsc� now cover an °'affiliated indi�idual,'�
l� whi�h includes any lawful occupant living in the surviv�r's househ�ld, or reiated to
1� the survivor by blood or marriage including the survivor's spause, parent, brother,
18 sister, child, or any person to whom the surv'rvor stands in loco parentis. VAWA
�g 2013 allows a lease bifurcation so a tenant or lawfizl occupant who engages in
ZQ , criminal activity directly relating to domestic violence, dating violence, sexual
assault, ar staiking against an affiliated individual or other individual, c�r athers may
21
be evicted ar remaved without evicting or remc�ving or otherwise penalizing a victim
22
who is a tenant ox lawfial occupant. If victim cannc�t establish eligibility,
�3 Bt�RIZC}WER must give a reasonable amount of time to find new housing or
�� establish ellgibility under anc�ther covered hausing prc�gt�am. A Notie� of Rights
25 under VAWA 2013 for tenants must be provided at the tirne a person applies for
26
Page 7 of 2'7
27
Form PLHA Cavenant Agreement
1 holtsing, when a person is admitted as a tenant of a housing unit, and when a tenant '
� is threatened with eviction crr term�nation c�f housing benefits. Tenants rnust request
3 an eznergency transfer and reasonably believe that they are threat�ned with imrninent
� harm from further violence if the tenant rernains in the same unit, The prQvisions of
$ VAWA 2013 that are applicable to HCT� programs are found in title VI r�f VAWA
� 2013, which is entitled "°5afe Homes far Victims of Domestic Violence, Dating
Vioience, Sexual Assault, and Stalking" Sectian 601 of VAWA 2Q13 amends
7
subtitle N of VAWA (42 U.S.C. 14043e et seq.j to add a new chapter entitled
8
'"Housing Rights."
g S) USE OF PROPERTY• CCINSTRUCTIQN OF IMPROVEMENTS, During the
l� Affordability Peric�d, BORROWER covenants and agrees tQ use the Property solely for the
l l ' cc�nstruction and operation c�f the Prc�ject in accordance with the PLHA Loan Documents, and
12 ta eonstruct the Project in a timeiy manner and in accc�rdance with the Schedule of
l� Ferformance attached to the PLHA Loan Agreement. The proceeds of the PLHA Loan shall
be used solely fc�r constructian of the Units, and not in corr�ection with any non-residential
14
facilities, services c�r activities.
15
b) MATNTENANCE UF THE IMPROVEMENTS. B4RRQWER, an behalf c�f
l�' itself and its successors, assigns, and each successc�r in interest to the Property and Prc�ject or
1� any part thereof hereby covenants to and shall protect, maintain, and preserve the Property�n
18 campliance with all applicable federal and state Iaw and regulations and lacal ardinances. In
lg additian, BORRQWER, its successa�s and assigns, shall maintain the improvements on the
�Q Property ir�the same aesthetic and sc�und c�ndition(ar better) as the condition of the Property
at the time c�f the recordation af the I'�atice of Campletion for the Project, reasonabl� wear
21
and tear excepted. This standard for the quality af maintenance af the Property �hall be met
22
whether ar not a specific item of maintenance is listed belc�w. However, representative items
2� af maintenance shall include frequent and regular inspection for graffiti or damage or
��' deterioration t�r failure, and immediate repainting ar repair or replacement of all surfaces;
25 fencing, walls, �quipment, etc,, as necessary; emptying c�f trash receptacles and r�moval af
26
Page 8 of 27
27
Farm PLHA Covenant Agreemant
1 titter; sweeping of public sidewalks adjacent to the Property, on-site v�alks and paved azeas
2 and washing-down as necessary to maintain clean surfaces; rnaintenance c�f all landscaping in
3 a healthy and attractive eondition, ineluding trimming, fertilizing and replacing vegetation as
4 necessary; cleaning windaws on a regular basis,painting the buildings on a regular prograrn
� and prior to the deterioration of the painted surfaces; conducting a rc�of inspection on a
6 ' regular basis and maintaining the raof in a ieak-free and weather-tight condition; maintaining
security deviGes in gc�ad working order. In the event BOR.ROWER; its successors or assigns
7
fails ta maintain the Property in accardance with the standard for the quality of maintenance,
$ the CITY or its design�e sh�ll have the right but not the�bligation tc� enter the Property upon
� reason�.ble notice to BORROWER, correct any violati�n, and hold BORROWER, or such
10 successQrs or assigns respcansible far the cost there�f, and such cost; until paid, shall
11 constitute a lien on the Property.
l� �) STRUCTUR.AL MODIFICATIC3NS. In order to pratect and mainta�n the
l� architectural and structural integrity of the Project, no structural modifcation will be made to
the Prr�ject without a validly issued building permit in accordance with the rec�uirements of
14
the City of Redding Ordinances. Any applicatian for a building permit pursuant to this
15
sectic�n and in connection with a prc�posed exterior madificatic�n ta the Project shall be
1� accc�mpanied by elevations and plans depicting the propased rnodifications.
17 S) NONDISCRIMII�ATIQN. BOR.R4WER shall not discriminate on the basis of
18 race, gender, religic�n, natic�nal c�rigin, ethnicity, s�xual orientation, a�e or disability in the
l� Solicitation, selectian, hirinb or treatment c�f any cc�ntractors or consultants, to participate in
�� subcontractinglsubconsulting opportunities. BORR(�WER undexstands and agrees that
violation of this clause shall be cc�nsidered a rnaterial breach. c�f this Agreernent and may
21
result in termination, debarment ar other san�tions. This language shall be incc�rporated into
22
all contracts between �QRRt�WEIZ and �ny cantractor, consultant, subcantractar,
�'3 subcc�nsultants, vendc�rs and suppliers. BURROWER sha11 cc�mply with the provisions c�f the
�� California Fair Empl�yment and H�using Act (Government Cc�de Sectians 12900 et 5eq.);
25 the Federal Civil Rights Act of 1964{P,L. 88-35'2), as amended, and all Administrative Rules
26
Page 9 of 27
27
Farm PLHA Covenant Agreement
1 and Regulations issued pursuant to said Acts and Orders with respect to its use of the
� Froperty.
3 BORROWER herein covenants by and far itself; its successors and assigns, and all
4 persons claiming under or through them, that this CoVenant is rnade and accepted upc�n and
$ subject to the following conditions. There shall be no dlscrimination against c�r segregation of
6 any person or group of persons, on account c�f any basis listed in subdivision(a) or (d) of Section
12955 of the Government C�de, as those bases are defined in Sections 12926, 12926,1;
7
subdivision (m) and paragraph {1) of subdivisic�n (p) of Sectian 12955, and Sectian 12955.2 of
8
the Government Cc�de, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment
g of the Prc�perty; nor shall the transferee itself or any persc�n c�aiming under or through him or her, '
ld establish ar permit any such pract�ce c�r practices of discrimination or segre�ation with referenc�
l l to the selection, location, nurnber; use, c�r occupancy; of tenants, lessees, sublessees, subtenants,
12 ar vendees of the Property.
�� BORRC7WER., its successors and assigns, shall refrain from restricting th� rental, sale, c�r
lease of the P'roperty or any portion thereof, on the basis of race, color, creed, religion, sex,
14
sexual orientatian, marital status, national origin, c�r ancestry of any persc�n.. Every deed, lease,
15
and contract entered into with respect to the Property, or any pc�rtion ther�of, after the date of this
l`� Agreement �hall cc�ntarn c�r be subject to substantially the following nondiscriminati�n or
�� nonsegregatian clauses:
l$ a) In deeds: "The grantee herein cc�venants by and fi�r himself or herself; his
1� c�r her heirs, executQrs, administratars, and assigns, and �11 persons clairning under or
20 thrQugh them, that there shall be no discrimination against or segregation af, any person
or group c�f persans on account of any basis listed in subdivision (a) or (d) of Section
21
1295� of the Government Codeg as tha�e bases are defined in Sections 129�6, 12926.1,
22
subdivis�on (m) and paragraph (1) of subdivisic�n (p)' �f Section 12955„ and Section
2� 12955.2 of the Governrnent Code, in the sale; lease, sublea5e, transfer, use, occupancy,
24 tenure,or enjayment afthe premises herein c�nveyed, nor shall the grantee c�r any persan
25 clarming under ar through h�m or her, establish or permit any practice or practices of
26'
Page 1'0 c�f 27
2'7
Form PLHR Govenant Agreement
� discrimination or segregatic�n with reference to the selection, location, number, use �r
� occupancy af tenants, lessees; subtenants, sublessees, or vendees in the premises herein
3 conveyed. The foregoing covenants shall run with the land."
q, b) In leases: ``The lessee herein covenants by and for himself or herself, h1s
� ar her heirs, executors, administrators9 and assigns, and a11 persons claiming under or
� '' thraugh him or her, and this Iease is rnade and accepted upon and subject to the following
conditic�ns: That there shall be no discrimination against or segregatian o�'any person or
�
group of persons, fln account of any basis listed in subdivision(a} or{d) of Sectit�n 12955
8
c�f the Government Code; as tkose bases are defined in Sections 12926, 12926.1,
� subdivision (m) and paragraph (1) of subdivision {p) af Section 12955, and Sectic�n '
1� 12955.2 ofthe Government Code; in the leasing, subleasing, transferring, use, occupancy,
l l tenure, or enjoyment af the premises herein leased nor shali the lessee himself or herself;
12 ar any person claiming under or through him or her, establish or permit any sueh practice
1� or practices af discrimination or segregation with reference to the select�an, locati�n,
number, use, t�r occupancy, of tenants, lessees, sublessees, subtenants, �r vendees in the
14
premises herein leased."
15
c) In contracts; "There shall be no discrimination against or 5egregatian of
��' any persan or° group of persons, on account of any basis listed in subdivision (a) or (d} of
17 Section 12955 of the t�overnment Code, as tha�e bases are defined in Sectic�ns 12926,
1$ 12926.1, subdivision {m) and paragraph (1) af subdivision (p} of Section 12955, and
19' Section 12955:2 of the Government Code; in the sales lease, sublease, transfer; use,
20 occupancy; tenure, t�r enjo�ment of the land, nor shall the transferee itself ar any person
claiming under or thraugh him c�r her;establish or permit any such practice or practices of
21
discrimination or segregatian with reference to the selection, location, number, use, or
22
accupancy, of tenants, lessees, sublessees, subtenants; or vende�s of the land,"
�"�' In additian ta tlxe c�bligations and dutles af BORRC�WER set farth herein, B(?RIZ.(7WER
��'' shall, upon notice from CITY, �romptly pay to CITY all fees and costs, including administrative
ZS and attorneys' fees, incurred by GITY in connection with responding to or defending any
26
Page l 1 af 27
27 '
Form F'LHA Covenant Agreement
1 discriminatian claim brought by any third party and/or 1Qca1, state or federal g�vernment entity,
� arising out of ar in connection with the A�reement or this Covenant.
� �) INStJRANCE. Without limiting ar diminishing the BQRR4WER'S obligation
4 to indemnify or hold the CITY harrnless, BORRQWER shall procure and maintain or cause
� to be maintained, at its sole cost and expense, the fallowing insurance caverage's during the
� term of this Agreement. As respects to the insurance sectian only, the CITY herein refers to
the City of Redding, its Agencies; Distriets, Special I)istricts, and Departments, their
7
respective directors, officers, employees, elected or appointed officials, agents ar
8
representatives as Addit�onal Insureds.
� a) Builder's All R.isk {Course af Construction� Insurance> BC►RROWER
I� shall provide a policy of Builder's All Risk (Course of Construction) instirance caverage
11 including (if the work�s located in an earthquake or flood zone or if r�quired on financed
1� or bond financing arrangements) coverage for earthquake and flood, co vering the CITY,
13 ' B�RROWER and every subcontractor, aF every tier, for the entire Project, including '
�roperty to b� used in the canstruction of the work while such property is at off-site
14
storage locations or while in transit ar temporary off-site storage. Such policy sha11
15
inelude, but nat be lirnited tc�, coverage for fire, collapse, faulty workmanship, debris
l� rernaval, exp�diting expense, fire department service charges, valuable papers and
1� records, trees; grass, shrubbery and plants. If scaffolding, false wark and ternporary
18 buildings are insured separately by the B�RROWER or others, evidence of such separate
�g coverage shall be provided to CITY prior to the start c�f the wc�rk. Such pc�licy shatl be
2� written on an all risk basis and a completed value form. Such policy shall cover the fuIl
insurable value. Such policy shall also pravide coverage for temporary structures (an-site
21
affices, ete.), fixtures, machinery and equipment being installed as part of the work.
22
BQRRC)WER shall be responsible far any and all deductibles under such palicy. Upon
�� rec�uest by CITY; BURROWER shall declare all terms, canditions, coverages and limits
��` �f such policy. Such policy shall narne the CIfiY as a lass payee as their interest may
25 appear.
;?b
Page 12 of 27
z�
Form PLHA CavenantAgreement
1 b) Worker's Carnpensation Insurance. If the BORROWER has employees as
� defined by the State of California, the BORI2UWER shall maintain statutc�ry Workers'
3 ' Compensation Insurance (Coverag� A) as prescribed by the laws of the State of
4 California. Palicy shall include Employer�' I,iability (Coverage B) including
5 Qccupational Disease with limits nr,t less than $1,000,000 per person per accident. The
� palicy shall be endar5ec3 to wa��e subrogatian in favor of The City of Redding: Policy
shall name the CITY as Additianal Insureds,
7
c) Commereial General Liability Insurance (if General Contraetar does not
$
carr . Comrner�ial General Liabiiity insurance coverage; including but z�at limited to,
� premises liability, unmodified contractual liability, products and cc�mpleted c�perat�ons
la liability, persanal and advertising injury, and cro�s liability coverage, co�ering claims
1� which may aris� from ar aut of BORROWER'S performance of its obligatians
l� hereunder. Policy shall narne the CITY as AdditiQnal Insured. Policy's limit af liability
l� shall not be less than �2,Q0{1,000 per occurrence cornbined single;limit.If such insurance
contains a general aggregate limi€, it shail apply separately to this agreement or be no less
14
than two (2) times the occurrence limit. Policy shall name the CITY as Additi�nal
15
Insureds.
�� General Insurance Pravisions—A11 Lines.
17 1) Any insurance carrier providing insurance coverage hereunder shall
18 be admitted tc� the State of Califc�rnia and have arn A M BEST rating of not less than A:
l� VIII (A:$) unless such requirements ate waived, in writing, by the City Risk Manager. If
�� the City's FZisk Manager waives a requirement for a particular insurer such waivel�is anly
valid for that specific insurer and only far one policy term.
21
2) The B{�RR�WER must declare its insurance self-insured retention
22
for each coverage required herein. Tf any such self-insured ret�ntit�n exceeds $50�,0(}�l
23 per occurrence each such retentzcrn shall have the prior written �onsent af the City Risk
24 Manager before the cammencement of aperations under this Agreement, Upon
25 notification af self-insured retent�on unacceptable to the CITY, and at the electiol7 of the
2b
Pa�e 13 of 27
27
Form PLHA Cavenant Agreement
1 City's Risk Manager, Bt7RRQWER'S carriers shali either; 1) reduce or eliminate such
2 self-insured retention as respects this Agreement with the CITY, or 2) procur� a band
3 which guarantees payment nf losses and reiated investigatiQns, claims adrninistration, and
q, defense costs and expenses.
� 3) BORRQWER shall cause BORROWER'S insurance carrier{s) to
� furnish the CITY with either 1) a properly exe�uted original Certificate(s) of Insurance
and certified original capies of Endorsements effecting coverage as xequired herein, and
7
2) if requested to da so orally or in writing by the City Risk Manager, provide original
8
Certified capies of palicies inciuding all Endorsements and all attachments thereto;
� showing such insurance is in full force and effect. Further,said Certificate{s) and polzcies
�0 of insuranc� shall contain the covenant c�f the insurance carrier(s} that a minirnum af
11 thirty (30) days written notice sha11 be given ta the CITY prior to any material
l� modification, cancellation, expiratian or reduction in coverage of such insurance. If
1� Bt7RROWER insurance carrier(s) policies does not meet the minimurn natice
requirernent faun:d herein, Bt�RRt`�WER shall cause B{�RROWER'S insurance carrier(s)
14
to furnish a 30 day Notice of Cancellation Endorsement.
15
4) Zn the event of a material modification, can�ellativn, expiration, or
1� reduc�ion in caverage, this �lgreement shall terminate fc�rkhwith, unless the CITY'
l� �eceives, prior to such effective date; another properly executed original Certificate of
18 Insurance and original ct�pies of endorsements or certified t�riginal policies, including all
19 endorsements and attachrnents thereto evidencing coverage's set farth herein and tlxe
20 insurance requirec� herein is in fu11 force and effect. BQRRt�WER shall nat commence '
operation� until the CITY has been furnished original Certificate (s) t�f Insurance and'
21
certified ariginal capies of endarsements and if requested, �certified original policies of
22
insurance including all endarsements and any and all other attachrnents as required in this
�� Section. An individual authorized by the insurance c�rrier to do s� on its behalf shall sign
�4 the original endorsements for each policy and the Certificate of Insurance.
25
26
Page 14 of 27
27
F�rm PLHA GovenantAgreement
1 5} It is understoad and agreed to by the parties hereto that th�
� BORROWER'S insurance shall be construed as primary insurance, and the CITY'S
3 insurance and/or deductibles andlor self-insured retentzon's or self-insured prc�grams shall
4 nc�t be construed as contributory.
� 6) If, during the term of this Agreement or any extension thereof; there
� is a material change in the sc�pe of services; ar, there is a rnaterial change in the
ec�uipment to be used in the performance of �he scc�pe of wark; or, the term of tl�is
7
Agreement, including any extensions thereof, exceeds five (5) years; the CITY reserves
8
the right to adjust the types of insurance and the manetary limits of liability required
� under this Agreement, if in the City Risk Management's reasonable judgment, the arnour�t
10 or type of insurance carried by the BORROWER has became inadequate.
ll 7) B(7RRl�WER shail pass down the insurance obligations contained
1� herein to all tiers af`subcontractors working under this Agreement.
l� 8) The insurance requirements contaxned in this Agreement may be met
with a program(s) of self- insurance acceptable to fhe CITY.
14
9) BORROWER agre�s to nc�tify CITY of any clairn by a third party �r
15
any incident or event that may �ive rise to a claim arising from the perfarmance of this
l�' Agreement.
17 10) HOLI� HARMLESS/INDEMNI]FICATI�N. BC?RRC)WER shall indemn�fy and
18 hold harmless the City of Redding, its Agencies, Districts, Boards; Special Districts and
l g Departrnents, t�leir respective directr�rs, offieers, elected and appointed officials, emplcryees,
�� agents and r�presentatives (individually and callectively hereinafter referred to as
"Indemnitees") from any claim, liability, costs or fees (including, but nat limited to,
21
attorneys' fees and casts,costs of inVestigatian, defense and settlements or awards), resulting
22
from any act or failure to act ofBORROWER, its officers, employees, subcontractors; agents
2� or representatives, in cannection with, arising c�ut of ar in any way relating to this
�`� Agreement, the PLHA Loan Docum�nts ar tl�e Pioject, including, but not limited ta, property
ZS damage, bodily injury, death or any other claim or liability af any kind or nature whatsoever.
26
Page l5 of 27
27
Form PLHA Covenant Agreement
l ��RROWER shall defend the Indemnitees; at B(�RROWER's sole expense, in any claim ar
2 actian based upon such alleged acts or c�mis�ions. With respect to any action ar claim subjeGt
3 to indernnification herein, BORR(JWER shall, at its sole cost, have the right to use cout�sel
4 of its own choice and shall have the right to adjust, seitle, or campromise any such actian or
� clazm without the prior consent of CITY; pro�ided, hawever, that any such adjustment,
� settlement or compromise in no manner whatsoever limits or circumscribes B�RROWER's
indemnificatia�l obligatlon to Indemnitee5 as set forth herein. BORRQWBR's abligatir�n
?
hereunder shall be satisfied when BQRROWER has provided to CIT�' the appropriate farm
8
af dismissal relieving the Indemnitees fram any liability for the action or claim invoived. The
9 speeified insurance limits required in tivis Agreement shall in no way limit or circums�ribe '
10 BORRt7WER's obligafians to indemnify and hald harmless the Indernnitees herein from
11 third party claims. In the event there is cc�nflict between this clause and California Civil Code
l� Section 2782, this clause shall be interpreted to comply with Civil Code 2782. Such
1� ' interpretation shall not relieve BC7RRta�VER frorn indemnifying the Indernnitees to the '
fullest extent allowed by law. The indemnification set forth in this paragraph shall sur�vive
14
the expiration ar earlier termination c�f this Cavenant.
15
1 l) NOTICES, All Notices provided far in this Covenant sha11 be de�med received
l�' when personally delivered, or two (2) days following mailing by certified mail, return receipt
1� requested. All mailing shall be addressed to the respective parties at their addres�es set forth
18 belaw, or at such other address as each party may designate in writing and give to the other
�g pat•ty:
20
GITY BORROWER
2� City of Redding The Gaod News Rescue Missian
�2 Hausing Managei 2842 S. Market Street;
7�� Cypress Avenue Redding, CA R6001
23 Redding, CA 96�01
24
25
26
Page 16 of 27
27
Form PLHA GavenantAgreement
1 12) REMEDIES. CITY shall have the right, in the event of any breach af any of the '
� terms and conditions of the Covenant, to exercise all available rights and remedies, and to
3 maintain any actians at 1aw or suit in equity or ather proper proceedings tc�enforce the curing
q. of such breach of agreement or covenant.
� ' 13) TERM. The non-discrimination covenants, ec�nditions and restrictions contained
� in this Covenant shall remain in effect in perpetuity. Every other covenant, cc�ndition and
restrictian contained in this Covenant sha11 continue in full force and effect far the Term, as
7
defined in Section l of this Covenant.
g 14} NOTICE AND CURE. Prior to exercising any remedies hereunder; the CITY
� shall give BQRRC}WER nc�tice af such deFault pursuant to the Nc�ti�e section above. Any
l� monetary default shail be cured within ten (10) days of delivexy of written notice. Except �s
11 otherwise set forth herein, if a nc�n-monetary default is reasonably capable c�f being cured
l� within thirty (34} days of deliVery of such notice of clefault; BQRRflWER shall have such
�� period tc� effect a cure pric�r to exercise of remedies by CITY. If the non-monetary default is
such that it xs not reasanably cap�ble of being cured within thirty (30) days of delivery of
14
such notice of default, and B(JRROWER. {a} initiates corirective action vvithin said period,
15
and (b} diligently, contlnually, and in go�d faith wc�rks to effect a cure as soon as possible,
l� then BORROWER shall have such additional time as is reasonably necessary to cure the
17 default prior to exercise of any remedies by the CITY; but in no event no later than sixty (biJ)
18 days frorn delivery of such notice of defauit, CITY, upon providing B(}RROWER with any
19 ��tice of default under this �ovenant, shail, within a r�asonable time, prc�vide a copy of such
�� default notice to a Perrnitted Lender (as defined in Section 19 below} c�r limited partner, if
any, who has given written notice to �IT� r�f its interest in the Property and Prtrject. Fram
21
and after such natice has been delivered to a Perrnitted Lender and the C)wner's limited
22 _
partner, if any, such Permitted Lender ox limited partner shall have the same period for
�3 remedping the default cornplained of as the cure period prc�vided ta B(7RR(7WER pursuant
�`� to this Section 14. CITY shall accept perforrnance by a Permitted Lender or limi�ed partner
25 as if the same had been done by�(�RRC?WER.
26
I'age 17 of 2'7
27
Form RLHA Covenant,Agreement
1 If a violation of any of the covenants or provisions of this Cc�venant remains uneured
� after the respective time periad set forth in this Section 14; CITY and its success�rs and
3 assigns, withaut regard to tivhether CTTY or its success�ars and assigns is an owner c�f any
4 land or interest there�n ta which these covenants relate, may institute and prosecute any
� proceedings at law ar in equity to abate, prevent or enjoin any such violation or attempted
6 vic�lation or to compel specific performance by BORR:OWER of its obligations hereunder.
Nc� delay in enforcing the pxovisions hereof as to any breaeh or vic�lation shall impair,
7
darnage or waive the right of any party entitled to enforce the pravisions hereof or to obtain
8
relief against or recover for the continuation or repetitian of such breach or vi�lations ar any
g similar breach or violatian hereof at any later time.
l� 15) SALE ASSIGNMENT {JR TRANSFER OF THE PR.QJECT OR PROPERTY.
11 ��RR4WER hereby covenants and agrees not to seli, transfer, assign or otherwise dispose
12 of the I'raject, the Pro�erty c�r any po��tion theret�f, without obtaiz�ing the pri�r writtien consent
13 of CITY, which such consent may be granted or withheld in its discretian. Upan applicatiQn
for and suc11, sale transfer t�r assignment, BORRC>WER shall demonstrate that th� propc�sed
14
transferee is reasonably ca�able of performing and complying with B(�RROV�ER's duties
15
and obligations under the PLHA Laan I)c�cLunents, including this Covenant. Any sale,
1�' assignment, c�r transfer of the Projeet or Praperty shall be memorialized�n an assignment and
l� assumption agreernrent, the form and substance af which shail have been first appraved in
l$ writing by the CITY, in its discretlon: Such assignment and assumption agreement shall,
1� among other things, piovide that the transferee has assumed in writing and in full,
2� BORRO�ER's duties and obligatic�ns under the PLHA Laan Doctunents, including this
Covenant, provided, however BORRUWER. shall nc�t be released of its obligations under the '
2I
PLHA Loan Docurnents, including this Covenant.
22
16) AMEI'�DMEl`�TS OR M{�DIFICA:TIONS. This Covenant �nay be changed �r
Z� modified anly by a written amendrnent signed by authorized representatives af both parties.
24 17) CrOVERNING LAW• VENLTE° SEVERABILITY. This Cc�venant shall be
25 governed by the laws of the State of California. Any legal action related tc� the performance
26
Fage l$ of 2'1
2'l
Form PLMA Cov�nant Agreement
1 or interpretation of this Cavenant shall be filed anly in the Superior Court of the State c�f
� Califarnia located in Shasta, Caiifarnia, and the parties waive ariy provision of law providang
3 for a change of venue to anc�ther location. In the event any provision ir�this C�venant is held
4 by a cour-t of com�etent jurisdiction tc� be invalid, void, ar unenforceable, the remaining
� proVisions will nevertheless ccrntinue in fizll force without being impaired or invalidated in
� any way
18) BINI)ING EF�'ECT. The rights and obligations of this Covenant shall bind and
7
inure tc�the benefit of the resp�ctive heirs, successQrs anci assigns af the parties.
� 19) PERMITTEL? IvIORTGAGES, No violation or br�ach of the cr�venants;
9 conditians, restrictions, provisions or limitations contained in this Covenant shall defeat or
14 render invalid or in any way impair the Iien €�r charge of any deed of trust or mortgage
11 permitted by the PI,HA Loan Agreement or the lien or charge c�f a deed of trust made by
l� BORROWER for the benefit of any lender first approved in c�riting by the CITY ( each, a
13 `LP��itted Lender") and nothing h�rein ar in the F'LHA Loan Agreernent shall prc�hibit ar
otherwise limit the exercise of a Perrnitted Lender's rights and remedies thereunder,
14
including a foreclosure or deed-in-lieu af foreclosure and subsequent transfer thereafter.
1�
20) CCIVENANT RLTNS WITH PROPERTY. In accordance wit� California Civil
1� Code Section 1461 et seq., all conditions, cavenants and restrictions contained in this
�� Covenant shall be covenants running with the land. The CITY shall be deemed the
18 benefici�ries of the covenants, conditi�ns and restrictions of this Covenant both far and �n
1� their awn rights and for the purposes of protecting the interests of the community. The
�� cov�nants, conditions, and restrictions shall run in favar of the CITY, without regard tc�
whether the CITY has been, remains, or is an owner of any land or interest therein in the
21
Property.
22
21) SEVERABILITY. In any event that any provisi�n, whether constituting a
�� separate paragraph or whether contained in a paragraph with other provisions, is hereafter '
24 ' determined to �e void and unenfarceable, it shall be deemed separated ancl deleted fram the
25
2b
I'age 19 of 27
27
Form PLHA Covenant Agreement
1 agreement and the remaining pravisions of this Agreement shall remain in fi�ll force and
� effect.
3 ' 22) MANAGEMENT. B�RROWER shall be responsible for the operation of the `
4 Project either by direct management or by contracting its managerial functions to a third
� party property m�nager rea�onably acceptable tc� CITY ("Property Manager"). The Praperty
� Manager wi11 be charged with managing the Project on behalf of'the BCIR.RO�VER. CITY
shall hav� the right to review and approve, which appraval shall not be unreasonably
7
withheld, conditianed or delayed, any such entity and agreement therefor prior ta its selection
g by the BCIRRQWER. BORRt�WER shall include in any such prc�perty management
9 agreement a provision providing for the t�rmination of the agreement in the event that the
1� Property Manager violates any federal, state c�r local health and safety laws and xegulations
1 l which are not cured within thirty (30) days foilov�ing the giving of notice of such violations
12 �Y �ITY or any ofher governmental entity, provided, however, that irn the case of a violation
13 that cannot be cured within such thirt�y {3�} day �eri�d, that such ctizre shall be commenced
within thirty (30) days of notification and ,sha11 be diligently prosecuted �o completion not
14
later than sixty (60) days after notification, BC?RROWER, its successars and assigns, u�Qn
lS
n�tice fr�rn CITY, shall indemnify, hold harmless and pay any costs and fees {including
l� administrative and attorneys' fees) incurred by CITY or the Indemnite�s in connection w'rth
17 responding tt� or defending any discrimination clairm brc�ught by any third party and/or local,
18 state ar federal government entity, arising out of'or in cQnnection with the Project andJc�r this
19 Agreement.
z� 23) CC?MPLIANCE WITH APPLICABLE LAWS, BQRRQWER shall carr� �ut
the desigri, construction and operation of the Project in confarmity with ali applicable
zz
federal, state and lc,cal laws, ardinances, statutes, cades,rules; resolutians, regulatians,poli�y
22
sfiatements, orders, and decrees including without limitatic�n, a11 applicable labor and
23 eznployment laws and standards, laws regarding hazardous substances, laws reg�rding the
��' acceptance or rejection of tenants andlor the terminatic�n of any tenanc�, zoning and
25 development standards, buiiding, plumbing, mechanical ��d electrical c�des, and all other
z�
Page 20 of 27
27'
Form PLHA Covenant Agreement
l pravisicans of the Code of(�rdinances of the City af Redding, and all applicable disabled and
� handicapped access requirements, including without Iim�tatian the Americans With
3 Disabilities Act, 42 U.S.C. § 12101, et seq., as currently exists or as may be amended from
q. tim� to time, Government Code § 4450; et seq., as currently exists or as may be amei�ded
� from time to tirne} Gc�vernrnent Code § 11135, et seq., as currently exists or as may be
� amended from time to time, and the Califarnia Building Standards Code� Health and Safety
Coc1e § 18900, et seq. as currently exists or as may be amended frc�m time to time.
7
24) PR(?JECT MQNIT{�R1NG ANI� EVALCJATIQN,
8 a) Tenant Checklist. BORROWER shall submit a "Tenant Checklist Forrn"
� ta CITY, in such form as rnay be required by CITY, and may from time to time be
10 revised by CITY, summarizing the raciaUethnic compositian,number and percentage of
}1 Very Low Incorne Households who are tenants of the Affordable Units. The Tenant '
12 Checklist Form shall be submitted upon cornpletion of the construction and thereafter;
13 on a semi-annual basis on c�r before March 31 and Septeamber 3�1. B�RROWER shall
maintain financial, pro;rammatic, statistical and other supporting records of its
14
c�perations and financial activities in accardance with the requirements of the CITY and
15
the PLHA Prograrn, and shall pravide such records to CITY at least annually; Except as
l� otherwise provided fc�x in this Covenant and in the PLHA Loan Agreement,
17 BQRROWER shall maintain and submit records to CITY within ten (10) business days
1;8 of CITY's rec�uest which clearly documents B(�RROWER's performance under each
19' requirement of the PLHA Program.
�a b) Inspections. During the period of affordability, CITY may perform on-
site inspections of the rental housing inciuded in the Project to determine compliance
21
with applicable State and local health, safety, and other applicable codes, ardinances,
22
and requirements, and the ongoing property standards established by the participating
�� jurisdictit�n and to verify the informatian submitted by the BOZZROWER.
24 c) Written Selection Policies. Bt�RROVVER shall adopt written selection
25 policies and criteria that are approved in writing by CITY prior ta entering intc� any lease
26 '
Fage 21 af 27
27
Form PLHA Covenant Agreement
1 for an Affordable Unit in the Project, which seleetion policies shall be subject to all
� applicable laws, including, if applicable, Sectian 42 of the Internal Revenue Code;
3 1) Are consistent with the purpose �f prov�ding housing for Very
4 Low Income Hauseholds and Lc�w Income Households,
� 2) Are reasonabl� related ta pragram eligibility and the applicants'
� ability to perform the obligations of the lease.
3) Provide for:
7
(A) The selection of tenants frc�m a written waiting list in the
8
chronological order of their satisfactian of all eligibility requirements,
� insofar as is practicable, and
�'o (B) The prr�mp� written notification to any rejected applicant
l� of the grounds f�r any rejection;
l� 4) To the exfent permitted by law, provide first priority in the
13 selection of otherwise eiigible tenants ta persons displaced by CITY (if any); and
5) Carr� out the affirmative rnarketing pxocedures of CITY, to
14
provide infQrmati�n and otherwise attract eligible persc�ns fxom all racial, ethnic and
15
gender groups in the housing market area. BORRC}WER and CITY shall cooperate
1b to effectuate this provision during the B�RR4WER's initial lease-up of the
17 Affardable Units and as vacancies occur.
1$ d) Income Requirements and Certificatian. Prior to leasing an Affordable
1 g Unit and annually thereafter, BORROWER, at it5 sQle expense, shall or shall cause the
�� Propez-ty Nlanager, if any,engaged to manage the Prc�ject tc� eertify the eligibility af each
tenant applicant as a Very Low Inct�me Household in accordance with th� PLHA
21
Pragram. The BORROWER shall cc�mplete such certification on forms as may be
�z
reasonably required by CIT� {which may include provision to CITY of any reporting
23 forms required by California Tax Credit Aliacation Cornmittee �CTCAC)). Gross
�4 income calculations for prospective (and continuing) tenants shall be determined in
25 accordance with the PLHA Program anc3 applicable Califomia law. BOR.RQWER sha11
26
Page 22 of 2?
27
Farm PI.HA Gauenant Agreement
l cause the Property Manager to submit such income certification, verification: and such
� additional informatian as may rea�onably be required by CITY, HGD or, if appl�cable,
3 CTGAC. Such suppc�rtir�g dQcumentatian shall include, far each meml�er of the
4 household ezghteen {18} years old or older, capies of dc�cumentatioi� and verification
� procedures as rec�uireci by California law or Section IV of CTCAC's Campliance Online
6 Reference Manual, as may be amended from time to time by CTCAC and currently
Iocated at - https:/Iwww.treasurer.ca.gav/ctcacicompliancelmanual/manual.pdf.
7
BORht�WER and GITY agree and acknawledge that CITY may require such addztional
8
information, if any, required to comply with the PLHA Program and/or applicable
9 California law regarding affordable housing.
1� e) Submission of Audited Financial Statements. BC7RROWER shall
11 prepare, and �btain an audited annual financial statement for the Project for each
l� calendar year (the "Annual Audited Financial 5tatements") ending after completian of
l� the development of the Project. By no later than the April l st following the year in
which final certifieate of occupancy for the Praject is issued, BQRR(?WER shall submit
14
such Annual Audit�d Financial Statements to �ITY for the immediately preceding
1S
calendar year. Thereafter; by no later than each April 1st, BQRROWER shall subrnit
l� Annual Audited Financzal Statements to CITY for the imm�diately preceding year.
17 25) ACCESS T{� PR(J3ECT SITE. Representatives af the CITY shali have the
18 right of access tc�the Praperty, upon 24 hours' written notice to BCIRROWER (except in the
1 g case of an emergency, in which case CITY shall pravide such notice as may be practical
�� under the circumstances), without charges or fees, during normal business hours to review
the operation of the Praject in accordance with this Covenant and the PLHA Loan '
21
Agreement.
22
26) COUNTER:PARTS, This �ovenant may be signed by the different parties
�3 heretQ in counterpa��ts, each of which shall be an original, b�zt ail of which together shall
�`� canstitute ane and the same agreement,
25 '
26
Page 23 of 27
27
Form PLHA Gc�venant Agreement
� 2?j RECITALS. The hecitals set forth above are true and correct and incarporated
� herein by this reference.
3 28) ENTIRE tTNDERSTANDING. This Covenant and the PLHA Loan Documents
q. contain the entire understanding and agreement of the parties hereto. There are no oral t�r
5 written representations, understandings, or ancillary covenants, u�dertakings or agreennents;
� which are nat contained or expressly referred to within this Covenant, and the PLHA Loan
Documents, including all amendments and modifications thereto.
7
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g 11I
1 Q [rernainder af page intentianally blank]
11
1� (SIGNATUR.ES ON THE NEXT PAGE)
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14
15
16
17
18
19
2Q
21
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23
24
zs
z�
Fage 24 of 27
27
Form PLHA Covenant Agreement
IN WITNESS WHEI�EOF, CITY and BQRRQWER have executed this Covenant as of the
dates written below.
City of Redding, a municipal corporatian
Date:
By; Barry Tippin,C�ty Manager
ATTEST: APPROVED AS TQ FORM:
By: Sharlene Tipton, City Clerk By; Christian M. Curtis, City Attorney
B+CI QWER
The
Good News Rescue Mission,
a Callfornia nonprofit public benefit corporation
By:
Janathan Anderson,
Executive Directox
(Sig�a#ures need to be notarized}
S=1
<CALIFO IA ALL-PU a►SE AC QWLEDGEMENT E >
i6 37
Pro�ertv Le�al Description
Real property in the City af Redding, County of Shasta, State of California, described as fo:lows:
THAT REAL P'R(JPERTY IN SECTIONS 14 AND 15 OF THE P. B.READING GRANT, IN
THE CITY C?F REDDING, SHASTA CC�UNTY, CALIFORNIA, DESCRIBED AS
FOLLOWS:
31(}0 South Market Street and 1411 Grange Street(APN: 104-620-0�6-000)
PARCEL 1:
BEGINNING AT THE rNTERSECTION t�F THE 50UTHERL�L1NE C}F WILLARD
STREET AND THE WESTERLY LINE OF STATE IDGHW AY US 99, FROM WHENCE A
6"X 6" C(�NCRETE MONLJMENT MARKING-THE NORTHEAST C�RNER OF L�T 4 t�F
THE LASSEN VIEW SUBDIVISION AS PER PLAT ON FILE 1N THE COUNTY
RECORDERl S t7FFICE, SHASTA COUNTY, SEARS S. 88 DEGREES 24' E., 2�:0�FEET
ANI�N. �DEGREES 55'02"E,,A DISTANCE OF 1979.54 FEET, THENCE FROM SAID
PQINT {�F BEGTNNNING, S. 2 DEGREES 43'30" E., 115 FEET TO A P4INT tJN THE
NORTH LINE �F THE PR()PEIZTY CONVEYET� Tt� BUI2TON D. BAKER ET UX BY
DEEI�I�ATED MAY 6, 195$, RECC7RDEl�MAY 12, 1958 IN BO(�K 5�5 OFFICIAL
RECORDS, AT PAGE 489, SHASTA CQUNTY'RECC7RDS; THENCE N. 88 DEGR.EES 241
W., 94 FEET; THENCE N�RTHEASTERLY 115 FEET MORE(3R LESS Ti�A POINT ON
THE S4UTH LINE OF SAID WILLARD STREET WIDCH BEARS N. 88 DEGREES 24' W.,
90 FEET FROM THE TRUE �'OINTOF BEUINNING, THENCE S. 88 DEGREES 24' E., 90
�'EET TQ THE TRUE POINT t7F BEGIIVNII�IG.
PARCEL 2:
BEGINNING AT A 11/2" IRC)N PIPE MC7NUMENT SET IN THE WESTERLY RIGHT C�F
WAY LINE OF MARKET STREET, +CITY t�F R.EDDING;CC7tJNTY OF SHASTA, FR(�M
�.C1I.:�lY��l':�.tl9J A V9���tJl�l.:�.n I,,.1�E 1V1V1V��1J1�L'elV 1 lYlt'i1�3�.�1J l.i1E 1VlJ111$-J.L:�ti�7����VLS.1.V.li11
OF LOT 4 (7F THE'LASSEN�TEW SUBDIVISIQIV AS PER PLAT t)N FILE 1N THE
CC)UNTY RECQRDERl S OI�F'ICE, SHASTA CQUNTY, BEARS N£�RTH O DEGREES
��'��.//r49.Li�IJ.�1'$��1.���1 V O.,rL t..7� �.���.��`$���J i�.� $����..+L�V 1 V 1 V�4J �E..11\1� V tF ��i�lYJr�.�'r�
24' WEST A DISTANCE OF 280:00 FEET TO A 1 1/�"I1�ON PIPE MQ�NUMENT MAR.I�ED
RE 4603g THENCE SC�UTH 2 DECxREES 4313011 EAST A DISTANCE C?F 125.00 FEET T(J
A l 1/2" IRON PIPE MO�tLTMENI' MARK�D RE 4603;,T�IENCE SQUTII 88 DE{�rREES�4'
EAST 166.00 FEET; THENCE N(�RTH 2 I�EGREES 43' 30" WEST 10. 0� �EET; THENCE
SOUTH 8$ DEGREES 24' EAST 114.O1� FEET; THENCE N4RTH 2 DEGREES 43'30"WEST
A DISTANCE QF 115.00 FEET TO THE P4INT OF BEGINNTNG. EXCEPTING
THEREFR(�M THE EASTERLY 20 FEET.ALSO EXCEPTING'THERE FR{�M THE`
PARCEL �F LAND DESCRIBEL}IN THE DEED FROM R,A. CGCK:ERILL AND
D�Rt�THY CUCKERILL; WIFE TO DELL MIKE STEPP ANL7 t�E4RGIA STEPI'; IDW
WIFE, RECC?RDEI� JANUARY�; I964 IN BC}OI�.771 C?F OFFICIAL RECC?RDS AT PAGE
300, SHASTA CflL1NTY RECC)RDS.
PARGEL 2P�; C(?MMENCING AT THE 11/2" IR�N PIFE MARKING THE SQUTHWEST
CORNER OF BLOCK. 15, AS SHOWN OI�T THE MAP OF PARK SUBDIVISIt�N,
RECURDED 1N THE OFFICE t�F THE COUNTY RECt)IZDER MAY 25, 1936 IN BOtaK 5
oF Maps �T pA�� r�, sxAST� cou�vT��cou�s, TxENCE sQUTx 1 �����s �c�
WEST SQ.00 FEET TO THE POINT (JF BEGINNING OF THIS PARCEL; THENCE SOUTH
1 DEGREES 36' WEST 124.98 FEET�THENCE SOUTH 88 DEGREES 24'EAST 25,00 FEET;
MORE OIZ LESS, TO THE WEST LTNE QF THE SECOND PARCEL DESCRIBED 1N THE
DEED TO R. A. CQCKERILL, RE��RDED IN THE OFFICE C�F THE CQUNT�
REC�RDER MAY 14, 1937 IN BUCCIK 126 OF OFFlCIAL RECORDS AT PAGE 31,
SHASTA COUNTY RECORDS;THENCE NQRTH 2 DEGREES 43'3011 WEST 125.00 FEET
TQ THE S{�UTHERLY LINE OF �UILLARD STREET AS SH{�WN t)N SAID MAP;
THENCE ALONG SAII7 SOUTHER�Y LINE NQRTH 88 DEGREES 24" WEST TO THE
POINT C?F BEGINNING.
Farm PLHA Loan Ag�eement
�X�llblt I
UEST F N TI+CE F EFAULT
RECORDiNG REQUESTED BY:
City of Redding
GITY BUSINESS -NO FEE
Section 6143 of the Government Code
of the State of Califc�rnia:
ANI�W I IEN RECORDED MAIL TO;
City of Reddiilg—Housing Division
P:O.Box 496071
777 Cypress Avenue
Redding, CA 96049-6071
SPACE ABOVE THIS LINE FQR RECORDERS USE
E UT ST far N TICE UN E SECT�' N 292�b CI'VI� C E
In accordance With Civil Code; Section 2924b, request is hereby made that a capy of any Notice af Default and
a copy of any Notice of Sale under tlae Deed af T��ust dated 20 and reco�ded concurrently
her�rvitll in the Ufficial Re�ords of the County of Shasta; California, executed by The Good News Rescue
Mission, a California nor�profit oi•ganization,as Trustor in whieh The City od Redding is named as Beneficiary;
' and placer Title Company is named as Trustee;a��d deseribing land therein as a1!that certain real propes�ty situated
in the County c�f Shasta, State of California, described as follt�wsc
C�rsERT LE�a1..��scr�lp�r�o�v�
Assessor's Parcel No,:
� ,CA
All natices to be mailed to;
City of Redding—Housing IliVision
P.O.Box;496�71
777 Cypress Avenue
Redding,CA 96(149-6071
Request is hereby made that a copy of any notice of default and a copy of any natice of sale under tlie deed af
trust.
NC}TTCE: A copy of any notice of default and of any notice of s�le wil[ be sent only ta the address
contained in this recorded request. If your address changes,a new request must be recardecl.
CITY t�F REDDING
By:
Chad Neilsan1 Assistant�'roject Coardinator
1of1
Form PLHA LQan Agreement
�INSERT CALIFO IA ALL-PURP'QSE AC QWLED+�EMENT HE >
2of1
Form PLHA Loan Agreement
�X�lil�}lt.l
EN�I N ENTAL IN E NITY
[attached]
3of1
EN�I12tJl�TMENTAL INDEM1�tITY
THIS ENVIRONMENTAL INDEMNITY (this "Indemnity"); dated as of May ,
2025 is made The Ci-ood News Rescue Mis�ion, a California non-profit corporation (refei-red to
as "Indemnitor"), whose address for purposes of �iving notices is 2842 S Market Street,
Redding; CA 96001,;in favor of the CITY OF REDDING, a municipal corporation and general
law city ("CITY" or "City") whose address far purposes of giving nc�tices is ?77 Cypres�
Avenue�Redding, CA 960A�9-60'l1.
WITNESSETI�
WHEREAS� Indemnitor is the owner of the real property in the City of Redding, County
of Shasta, California, as more particularly descr�bed on Exhibit A attached hereto and rnade a
part hereof, and the real property improvements thereon or to be constructed thereon
(collectively referred tc� as the"Property");
WHEREAS; Indemnitar and CITY have entered inta that certain Laan Agreernent for the
Use of PLHA Program Funds (31�0 S Market Street,Redding, CA), dated as of May , 2425
{the "Laan Agreement"), pursuant to which CITY agreed ta loan to Indemnitor, or its assignee;
Two Hundred Fifty Thousand and OO1100 Dollars ($250,OQOAQ) in PLHA Program funds (the
"pLHA Loan"} for the purpose of developing a one (1) unit rental affordable housing
devel�pment and related irnprovements and amenities on the Frc�perty� and
WHEREAS, Indemnitar has agreed to execute and deliver to CITY th�s Indemnity to
induce CITY'ta enter into the Loan Agreement and pravide the PLHA Loan to Indemnitor.
NtJW, THEREFORE, in considerati�n c�f the faregoing and in consideration of the
mutual agreements hereinafter set forth, Indernnitor hereby agrees with CITY as follc�ws;
Sectian 1. I�EFINITIQNS
For the purpose af this Indemnity, "Hazardous Materials" 4r "Hazardous Substances"
shall include, but not be limited to; any substance or material (whether a raw material, building
compc�nent or waste, a product or by�product t�f manufacturing or other activities, c�r any other
substance or material} which is or becames designaied, classified c�r reguiated as being
"hazardaus" c�r "toxic", or is or becames otherwise similariy designated, classified or regulated,
under any Federal, state or lc�cal law, regulatian�r ardinance; includin��tivithout limitation(i) any
substance defined as a "hazardaus stibstance" or a "haza�daus waste" for purposes of the
Comprehens��e Envir�nmental Response, Compensatian and Liability Act, 42 U.S:C.
Secti�n 9`bt�1 et se�., c�r the Resource Cansei-vation and Recc�very Act, 42 U.S.C. Section 6901
et s�., respectively, (ii) any substance defined as a "l�azardous waste" ar a "hazardous
substance" for purposes of applicable state or local law and (iii�petroleuzn, flammable
explosives, urea formaldehyde insulatian, asbestos and radioactive materials, substanc�s d�fincd
c`iS "�XtT�111G1� �laZc'3IC�OUS SUbSt2T1C�S'" c`Ili1Zc`iTCIOUS S11�5t3.11GE,'S9" "�1�2c'3T(�C}US TT1a�4r1ii�S,>'
"hazardous waste" or "tc�xic substances" the Hazardous Materials Transportation Act, 49 U.S.C.
PLHA Fornl of Env'sronmental-[ndemnity-GNRM AD[J
pa�� 1 0��
Sections 1801, et seq.; and those substances defined as "hazardous waste" in Section 25117 of
the Cal�fornia Health and Safety Code, as "infecti�us waste" in Section 25117.5 c�f the California
Health and Safety Code, or as "hazardous substances" in Se�tion 25316 of the California Health
and Safety Code ar "hazardous materials" as defined in Section 3S3 of the California V�hicle
Cad�; and in the regulatlons adopted and publicatic�ns prt�rnulgated pursuant to said laws.
"Hazardous Material�"and "Hazardous Substances" shall expressly exclude substances typically
used in the construetion, development, operation and rnaintenance af an apartment complex
prc�vided such substances are used in accordance with a11 applicable laws.
For the purpose of this Indemnity, "PLHA Loan Docurnents" shall refer to the Loan
Agreement, any agreement entered into in the form of an Attachment thereto ar in connection
therewith, and any extensians, modifications or amendments thereto.
Section 2. COVENANTS ANI} INDEMIQITY
The following covenants and indemnities are hereby given and made by Indemnitor:
2.1 Covenants.
(a) Indemnitar covenants that it shall comply with any and all laws; regulations,
and/cax c�rders which may be promulgated, from time to time, with respect to the discharge andlor
remoVal of Hazardt�us Materials, to pay immediately when due the costs of the removal af; or
any other action required by 1aw with respect to, any such Hazardous Materials, and to keep the
Praperty free of any lien imposed pursuant to any such laws,regulatit�ns, or arders.
(b} Indemnitor covenants that the Property will not, while Indemnitor is the
owner therec�f, be used for any activities involving, directly or indirectly, the use; generation,
treatment, storage; release, c�r disposal of any Hazardous Materials, except fflr de minimis
quantities used at the Property in compliance wzth all applicable environmental laws and
required in connectic�n with the develc�pment of the Property in conformance with the PLHA
Lt�an Dt�cuments.
(c) Indemnitor further agrees that Ind�mnitor shall not release or dispose of any
Hazard�us Materials at the Property without the express written approval of CTTY and that any
such release or dispo�al shall be effected in strict compliance with a11 applicable laws and all
cc�nditions, if any, establis�ied by CITY.
(d) CITY sha11 have the right, at any time, to conduct an environmental audit Qf
the Prc�perty at CITY's expense; unless Hazardous Materials are found in violation of this
Indemnity, then at Indemnitor's sale cost and expense, and Indemni�kar shall cooperate in the
conduet of any such environmental audit but in no event shall such audit be canducted unless
CITY believes that such audit is warranted: Clth�r than in an emergency, such audit shall be
conducted c�nly after prior notice has been given to Indemnitor and �nly in the presence of a
representative of Indemnitor. Indemnitor shall give CITY and its agents and employees access to
the Property to remove, or otherwise to mitigate against the effects of;Hazardous Materials.
PLHA Form-of Environmental indemnity-GNRM t�DU
Pc1�� �,O�}
(e) Indemnitor shall not install, or permit to be installed, on the Pr�perty friable
aSbestas or any substanGe cantaining asbestas and deemed hazardc�us by federal c�r state
regulations respecting such material, and; with respect to any such mat�riai currently present in
the Prc�perty, Indemnitar shall promptly either (i) remuve or cause tt� be remaved �ny material
that such regulatiflns deem hazardou5 and require to be removed, or {ii) otherwise comply with
such federal and state regulations, �.t Indemnitor's� sole cost and expense. If Indemrutor shall fail
tc� so da within t�e cure periad permitted under applicable law, regulation, �ar order, CITY may
d€� wl�atever is ne�essary to eliminate said substances from the premises or t� otherwise comply
with the applicable law, reguiatic�n, �r ord�r, and the c�sts thereof shall be added to the
Obligations (as hereinafter defined) of Indemnitor under this Section 2.
(f} Indemnitor shall immediately advise CITY in writing of any c�f the following�
(i) any pending ar threatened environmental claim against Indemnitor or the Property, (ii) any
candition or occurrence an the Praperty that (A} results in nancornplianc� by Indemnitor with
any applicable environmental law, (B) could reasanably be anticipated to cause the Property to
be subject to any restrictions on the ownership, accupancy, use or transferability of the Property
under any environmental 1aw, or (Cj caul� reasc�nably be anticipated to ft�rm the basis �f an
environrnental claim against the Property c�r Indemnitar.
2.2 Indemnitv. Indemnitor shall indemnify, protect; and hold CITY and its directars,,
afficers, employees, and agents (the "Indemnified Parti�s") harrnless from and against any and
a11 damages; lasses, liabilities, obligations, penalties, claims, litigation, dernands; defenses;
judgments, suits, prc�ceedings, casts, disbursements, c�� expenses (including, without limitatit�n,
attc�rneys' and experts' fees and disbursements) of any kind or of any nature whatsoever
(collectively, the "Obligations") which rnay at any tirne be irnpQsed upc�n; incurred by or asserted
ar awarded against CTTY and arising in cc�nnection with, from or out of:
(a} The presenc� of any Hazardaus Materiais on, in, under, ar affecting all or
any portion of the Praperty, which were stored, discharged; released ar
emitted on the Property,
{b) The breach c�f any covenant mad� by Indemnitor in Sectian 2.1 hereofg or
(c) The enfc�rcement by CITY of any af the provisic�ns of this Sectic�n 2:2 or
the asse�-tion by Inclernnitor c�f any defense to its abligations hereunder.
Notwithstanding the faregoing, Indemnitor's liability under this Sectian 2.2 shall not extend to
any Hazardc�us Substance present or released in, on, or around any part of the Property, or in the
soil, groundwater, or soil vapor ar under the Property that �'irst arise, cammence or occur after
the actual dispossession of the Praperty from Indemnitor and all entities which cc�ntrol, are
cr�ntrolled by, c�r are under commc�n control wlth Indemnitor, following foreclosure ar
acquisitian of the Property by a deed in lieu of foreclosure.
PLHA Form of Enuiro�finental Indemnity-GNRM ADLf
Page 3 of 9
Section 3. INDEMNIT4R'S UNGONDITIONAL C}BLIGATIC)NS
3.l Unconditional Obli at�ans. Indemnitor hereby agrees that the Obligatic�ns will be
paid and performed strictly in accordance with the terms of this Indemnity; regardless of any
law, regulatian, or c�rder now or hereafter in effect in any jurisdictian affecting the PLHA Loan
Do�uments c�r affectit�g any c�f the rights c�f CITY �vith respect thereto. The obligat�Qns of
Indemnitar hereunder sha11 be absolute and unconditional irrespective c�f:
(a) The validity; regularity; or enfarceability of the Laan Agreement or any
ather instrument or document executed c�r delivered in coxu�ection therewith;
(b) Any alteratic�n, amendrnent,, rnoc3ification, release, termination, or
cancellation of the PLHA I,c�an Dc�cuments, or any chan�e in the time,manner,ar
place of payment or performance of, or in any other term in respect af, all or any
af the obligations aflndernnitor contained in any ofthe PLHA Loan I)acuments;
(c) Any exculpatory provision in any of the PLHA LQan Documents or any
document delivered in connectian therewith lirniting CITY's recourse ta property
encumbered by the d�ed of trust securing Indernnitor's obligatic�ns under the
PLHA Loan Docurnents, or to any cather security, Qr limiting CITY's rights to a
deficiency judgment against Ind�mnitor,
(d) The insolvency or bankruptcy of Indemnitor; c�r
(e) Any other cir�umstance that mibht otherwise constitute a defense
available to, or a discharge of; Indemnitar �vith respect to any or all of the
C7bligatit�ns.
3.2 Continuation. The Indemnity provided under � 2,2 (a)is a continuing indemnity
and shall remain in full farce and effect until the satisfaction in full af all of the Ubligations
(notwithstanding the release ar otiher extinguishrnen:t of the deed of trust securing Indemnitc►r's
obligations under the PLHA Loan Dacurnents); and (b) shall continue to be effective or shall be
reinstated; as the case may be, if at any time any payment af any of the Obligations i� rescinded
ar must atherwise be returned by the CITY upon the insolvency, bankruptcy, or reorganization of
Indemnitor, all as though such payment had not been m�de,
3.3 Terrnination.N�twithstanding the payment (and perforrnancej in full of all of the
Qbligati�ns and the payrnent {or perforrnance) in fu11 of all af Indemnitar's obligations under the
PLHA Laan B�cuments, this Indemn�ty shall not terminate if any of tl�e follcawing shall have
Qccurred:
(a) CITY has at any tirne ar in any manner participated in the management ar
control of, taken possession of{whether personally, by agent or by appointment of
a receiver), or taken title to the Pr�perty c�r any portion thereof, whether by
foreclosure, deed in lieu of foreclosure; sale under power of sale or otlaerwise; or
PLHA Form of Eituironmenta!Indemniry-GNRM ADU
pil�E: � Of�
(bj There has been a change, between the date hereof and the date on which
a11 of the +Dbiigations are paid and performed in full, zn any Hazardaus Materials
laws; the effect of which may be to make a l�nder or mortgagee liable in respect
af any of the tJbligatgons, notwithstanding the fact that na event, circumstance,or
condition of the nature described in paragraph(a) above ever occurred.
Section 4_ �VAIVER
Indemnitor hereby waives the following;
(a) Prc�mptness and diligence;
(b) Notice of acceptanc� and notice of the incurrence Qf any obligation by
Indemnitor;
(c) Notice of any actian taken by CITY, or any other interested party under
the Lc�an Agreement or under any other agreement or instrument relating thereto;
(d) All other nc�tices, demands; and pratests, and all other formalities of every
kind, in connectian with the enfQrceznent of the t�bligations; the omission of or delay in which,
but ft�r the provisions t�f this Sectic�n 4, might c�onstitute grounds for relieving Indemnitor of its
Obligations hereunder;
(e) Any requirement that CI`Y"Y protect, secure, perfect, or insure any security
interest or lien in or on any property s�bject thereto;
(fl Any requiremer�t that CITY exhaust any right �r take any actian against
Borrower or a,ny other person r�r c�llateral;
(g) Any defense that mag��ri�e by reasan�f;
(1} The incapacity, lack c�f authc�rity, death c�r disability of, or
revocati�n hereof by, any person or persons;
{Z) The failure of CITY to file or enfarce any claim against the estate
(in probate, banlcr�.�ptcy, or any c�ther proceedings) of any person or persQns; or
{3) A�y defense 6ased upan an election �f remedies by CITY,
including, without limitation, an election to proceed by non-judicial fareclosure ar which
destroys ar �therwise impairs the subrogatian rights of CITY or any other right of CITY to
praceed against Indem�nitor.
Section 5. NOTICES
Any notice; demand, statement, request, c�r consent made hereunder shall be in writing
and shall be personally served, mailed by first-class registered mail, reti:�rn receipt requested, to
PLHA Form of Environmesttal Indemnity-GNRM AUU
Page S of 9
the address set forth in the first paragraph of this Indemnity, above; or given by telecapier to th�
telecopier numl�ers ,stated belaw, with confirmatians mailed by first class registered mail, return
receipt requested to the address set fc�rth above� of the party tc� whom such notice is to be given
(or ta such other address as the Parties hereto, shall designate in writing):
In the case of CZTY:
Housing Manager
City of Redding
77'7 Cypress Avenue
Redding, CA 96001
In the ca5e of Indernnitor:
The Good News Rescue Missic�n
2842 S Market Street
��aa1��, c���ool
p,ttn: E�ecutive Director
Any natice that is transmitted by electroni� facsimile transrnission follc�wed by delivery af a
"hard7g cc�py, shall 6e deerned delivered up�n its transmission; a.ny notice #hat is �ersanally
delivered (inciuding by means of prc�fessional messenger service; cc�urier service such as United
Parcel Service or Federal Express, or by U.S_ Postal Service), shall be d�emed received on the
dc�cumented date of receipt, and any notice that is sent by registered or certified rnail, postage
prepaid, return receipt required shall be deemed received on the date of receipt thereof.
Section 6. MISCELLANEOtJS
6.I Indemnitc�r shall make any payment required to be made hereunder in lawful
maney of�he United States of America; and in same day �nds, tc� CITY at its addre�s specified
in the first par�gr�ph hereof�
6.2 No amendment of any provision of this Indeznnity shall be eff�ctive unless it is in
writrng and signed by Indemnitor and CITY, and no waiver of any provisi�n of this Indemnity,
and no consent to any departure by Indemnitor fram any provision af this Indemnity, shall be
effective unless it is in writing and signed by CITY, and then such waiver esr consent shall be
effective only in the specific instance and for the specific purpose for which given.
6.3 No failure on the part of CITY to exercise, and nc+ delay in �xercising, any right
hereunder or under the PLHA Loan Documents shail operate as a waiver thereof, nor shall any
single or pa�ial exercise of any right preclude any other or further exercise thereof c�r the
exercise af any ather right. The rights and remedies of CITY pravided herein and in the other
loan documents are cu�nulative �nd are in addition to; and not exclusive of, any rights or
reznedies prc�vided by law.
PLHA Porrn of Environmental Indemriity-GNItM ADU
p����3 O��
6.4 Any provision of this Indemnity that is prohibited ar unenforceable in any
jurisdiction sllall, as to such jurisdiction, be ineffective to the extent of such prohxbit�on or
unenforeeability withaut invalidati�g the remaining portic�ns hereof and without affecting the
validity or enforceability af such pravisian in any�ther jurisdiction.
6.5 This Indemnity shall (a) be binding upon Indemnitor, and Indemnitor's suc�essc�rs
and assigns; and (b) inure, together with all rights and remedies of CITY hereunder, ta the
benefit of CITY, its respective directars, officers, employees, and agents, any successors to
CITY's interest in the Property, any other persc�n who acquires any pc�rt�on of th� Property at a
foreclosure sale or otherwise through the exercise af CITY's rzghts and remedies under the
PLHA Loan I�ocuments, any successors tc� any such person; and all directors; afficers,
emplayees, and agents of all af the aforementianed parties. WithQut limiting the generality of
clause (b) c�f the immediately preceding sentence, �ITY may, subject to, and in accardance witl�;
the provisions of the FLHA Loan I3acuments, assign or crtherwise transfer al1 or �ny portion of
its rights and c�bligatirans under the FLHA Loan Dacuments, to any other person, and such other
person sha11 thereupon become vested with all of the rights anc�c�bligatic�ns in respect thereof that
were granted to CITY herein ar otherwise. None c�f the rights or obligations of Inc�emnitar
hereunder may be assigned ar otherwise transferred withaut the prior written cc�nsent of CITY,
except as provided in the PLHA Loan I7ocuments.
6.6 Indemnitor hereby (a) irrev�cably submits ta the jurisd'rction of the Superior
Court of Shasta County in any action or proceeding arising aut of or relat�ng tc� this Indemnity,
(b) waives any defense based on doctrines of venue or forurn non convenient or similar rules or
d�ctrines, and (c) irrevocably agrees that all claims in respect of any such action or pxoceeding
may be heard and determined in such California or federal cc�urt. Indemnitor irrevocably
consents to the service t�f any ar�d all process which may be required ar permitted in any such
action or proceeding ta the address specified in the first paragraph of this indemnity, above.
Indemnit�r agrees that a final jucigment in any such action a�r pre�ceeding shall be inclusive a�ad
may be enforced in any other jurisdiction by suit on the judgment or in any other manner
provided by law.
6.7 The title of this docurnent and the captions used herein are inserted only as a
matter r�f canvenience and for reference and shall in no way define, limit, or describe the scope
or the intent of this Indemnity or any of the pravisians hereof.
6.8 This Indemnity shall be governed by, and construed and interpreted in accordance
with, the laws af the State of Califomia applicable to contracts made and fo be performed
therein, except to the extent that the laws of the Unrfed States preempt the law5 af the State af
Califorr�ia.
6.9 This Indemnity may be executed in any number af counterparts, each of which
shall constitute an original and all af which together sha11 cc�nstitute c�ne agreem:ent.
PLIIA Form of Environmental Indemnity-GNRM:4L�tJ
Page 7 C7f 9
[S�gnatures on the Fo1lQwing Page]
PLHA Form of Enviconmental Indemnity-GNRM ADU
Page 8 af 9
IN WITNESS WHEREOF, Indemnitor has duly executed this Indernnity as af the
date first set forth abave.
INDEMNITOR:
The Good News Rescue Mission,
a California nan-profit corparation
By:
Name: Jonathan Anderson
Titile: Executive Director
PLHA Form of Environmental Indemnity-GNRM ADU
Exhibit A
LEGAL DESC PT'IQN
E IT A
Real property in the City af Redding, County of Shasta, State csf California, described as follows:
THAT REAL PROPERTY IN SECTIQNS 14 AND 15 OF THE P, B. READING GRANT, IN
THE CITY OF REDDING, SHASTA COUNTY, CALIFORNIA, DESCRIBED AS
�QLLUWS;
31 QU S�uth Market Street and 1411 Grange Street{APN. 104-b2U-056-OOp)
PARCEL 1:
BEGINNING AT THE INTERSECTION (JF THE SOUTHERLY LINE OF WILLARD
STREET AND THE WESTERLY LINE OF STATE IDGHW AY US 99, FROM WHENCE A
6"�6'' CONCRETE M�NUMENT 1VIARKING THE N�RTHEAST CCIRNER OF Lt�T 4 OF
THE LASSEN VIE�N SUBI�IVTSI(�N AS PER PLAT QN FILE 1N THE COtJNTY
REC�RDERI S OFFICE, SHASTA CQUNTY, SEARS S. 88 DEGREES Z4' E., 20.OQ FEET
AND N. Q DECrR.EES 55'02" E.,A �ISTANCE OF 1979.54 FEET; THEl'�CE FROM SAID
ril.l.��� O� �$_i�11�1V11.V�� �:. � ���.,1.$.O.d.iJi:� "'r����9l.�.�. �1����.�i'1 ���.���$ ����d.i
' 1�VA\�il L11VL�1 1��L 1�L./i�il�l�4✓.ti:/�lY Y.Li��AJ 14J j.7����1.� L". �7�.L�.l��i1\�.�i� klL.i.�1
DEED DATED MAY 6, 1958, RECC}RI�ED MAY 12, 1958 IN B�C1K 56S ��FICIAL
RECORDS, AT P1-�GE 489, �HASTA COUNTY RECt`�RL�S; THENCE N. 88 DEGREES 241
W., 94 FEET;THENCE NI�RTHEASTERLY 115 FEET MORE QR LESS TC► A PC}INT C7N
THE SC)UTH LINE (�F SAID WILLARD STREET WIDCH BEARS N. 88 DEGREES 245 W:,
90 FEET FROM THE TRUE PC?INTC3F BEGINNING,THENCE S. 88 DEGI�EES 24' E., �0
FEET T� THE T12UE PC)INT OF BE�£N�iII�T�.
PARCEL 2;
BEGINNING AT A 11/2" IRON FIPE MC?NUMENT SET IN THE WESTERLY RIGHT QF
WAY LINE OF MARKET �TREET, CITY C?F REI7DING, �OUNTY OF SI-�A.STA, FR{�M
WHENCE A 6" X 6'' CONCRETE MC►NUMENT MARK7NG THE NC�RTHEAST CORNEIL
C}F LOT 4 C}F THE LASSEN VIEW SU�DIVISI(�N AS 1'ER PLAT ON FILE 1N THE
C��V1Y�1 I 1�..L'4�VLllJL�d�A. �,7 oFP�4..L:y L7�l:1A�71A.L:tJ4J1V 1 i.9.lll'.AAiJ �Vh�li7.Q�1J�l3�A,.���
55'02" EAST A DISTANCE C�F 1979:54 FEET; THENCE RUNNING NORTH 88 DEGREES
24' WEST A DISTANCE QF 280.00 FEET TO A 1 11�"IRC}N PIPE MQNUMENT MARKED
RE 46Q3; THENCE S4UTH 2 DEGREES 4313011 EAST A DISTANCE OF 125:00 FEET TU
A l l/2" IRtal'�PIPE MONUMENl°MARKEI)RE 4603; THENCE SOUTH $8 DEGREES 24'
EAST 166.00 FEET;THENCE NCIRTH 2 DEGREES 43' 3Q" WEST I�. 00 FEET; THENCE
SCfLTTH 88 DEGREES 24' EAST 114.Q0 FEET, THENCE NORTH 2 DEGREES 43'30"WEST
A�ISTANCE (?F 115.0(l FEET TO THE POINT 4F BEGINNING. EXCEPTIN�
THEREFRC��M THE EASTERL'Y 20 FEET. ALS4 E�CEPTING THERE FROM THE
PARCEL C1F LAND DESCRIBED TN THE DEED FRC?M R.A. COCI�:ERILL AND
DORt�THX CO+CKERILL,�NIFE TO DELL MIKE STEPP ANI) GEORGIA STEFF, II�W
PLHA Foem af Environmental Tndzmnity-GNRM ADU
WIFE, RECORDED JANUARY 9, 19&4 IN BOOK 771 4F OFFICIAL RECtJRDS AT PAGE
30Q, SHASTA CQLTNTY RECOR.l7S.
FARCEL 2A; CC?MMENCING AT THE 11/2"IRC?N PIPE MARKING THE�C7UTHWEST
CORNER OF BLtaCK 15,AS SHC}WN t�N THE MAP C?F PARI� SI7BDIVISION,
RECURDED IN THE OFFICE OF THE CQUNTY RECORDER MAY 25, 193b IN BOOK 5
CtF MAPS AT PAGE 12, SHASTA COUNTY RECC?RDS; THENCE SOLTTH 1 DEC%REES 36'
WEST 50.00 FEET TC? THE PO1NT(�F BEGINNING Q� THIS FARCEL; THENCE SQUTH
1 DEGREES 36° WEST 124:98 FEET; THENCE SOUTH 88 DEGREES 24'EA�T'25.00 FEET;
MORE OR LESS, TO THE WEST LINE QF THE SECC?ND PARCEL DESCRIBED IN THE
I7EED TO R.A. COCKERILL, R:ECC}RI7ED 1N THE 4FFICE C1F THE C4UNT4''
RECORDER MAY 14, 1937 IN B04I� 12b OF OFFICIAL RECt7RDS AT PAGE 31,
SHASTA C{�ITNTY R.ECORDS; 'THENCE N4RTH 2 DEGREES 43'3fl11 WEST 125.fl� FEET
TO THE SOUTHERL�LINE OF WILLARD STREET AS SH�WN ON SAID MAP;
THENCE ALQNG SAID SOUT]HERLY LINE NORTH 88 DEGREES 24° WEST TC?THE
P41NT tt�F BEGINNING:
PLHA Form of Envi�onmentai Indemnity-GNRM ADU